ANNUAL REPORT 2006-2007

www.ppwcma.vic.gov.au Table of Contents

Chairman’s Report 3

Chief Executive Officer’s Report 4

The Port Phillip and Western Port Region 6

Our Board 8

Our Staff 10

Functions of the PPWCMA 11

Regional Catchment Strategy Implementation 13

Leadership and Advocacy for Integrated Catchment Management 15

Priority Setting and Investment 24

Monitoring, Evaluation and Reporting 33

PPWCMA Culture and Business Management 36

Financial Statements 42

Disclosure Index 60

Port Phillip and Westernport CMA Annual Report 2006/07 1 Port Phillip and Westernport Catchment Management Authority 2006/07 Annual Report

October 2007

ISBN 978-0-9804232-1-1

This publication may be of assistance to you but the Port Phillip and Westernport Catchment Management Authority, its Board and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes. The PPWCMA therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

Acknowledgements The PPWCMA acknowledges the traditional landowners within the Port Phillip and Western Port region.

Designed and Printed by Docklands Group Plans and Strategy documents referred to throughout this Annual Report can be obtained by contacting the Port Phillip and Westernport Catchment Management Authority, Ph: 03 8781 7900. Some documents are also available for electronic download from the PPWCMA website – www.ppwcma.vic.gov.au

2 Port Phillip and Westernport CMA Annual Report 2006/07 Chairman’s Report

The 2006-2007 year has been the I believe the PPWCMA is well regarded because it adds first of a three-year term of this value to projects that encompass multiple organisations Board. and cross municipal boundaries. It is also seen as welcoming innovative thinking and doing the hard work to Despite being new, this Board has stimulate change both within Victoria and nationally. We quickly hit its stride thanks to the now want to build on this reputation and turn it into groundwork laid by the previous Board tangible and long-lasting improvements in the condition of including Chairman Dr Mick Lumb and this region’s environment. an efficient handover and induction by the CEO and staff. Governance, financial management and compliance have I would like to acknowledge the hard work, been assessed and carefully monitored. It is clear that this professionalism, enthusiasm and achievements of the PPWCMA is an efficient and professional organisation. PPWCMA Team. The year ahead is rich in challenges and we look forward to improving catchment condition and This has enabled the Board to quickly focus onto strategic health. matters:

● Strengthening the relationship between funding, catchment condition and effectiveness through the development of a simplified yet powerful Catchment Andrew Grant Condition Report; Chairman ● Driving the Flagship Projects through the development and implementation of high quality business plans and unified action amongst the contributing organisations; and

● Enhancing the funding base by securing additional private and public sector funding to accelerate the implementation of enhanced catchment management programs.

Port Phillip and Westernport CMA Annual Report 2006/07 3 Chief Executive Officer’s Report

Everyone knows which Council area they live in and ● Guiding some of their staff to have a holistic view of which organisation supplies their home with water. environmental problems and programs, helping them Most people know of the Environment Protection to think regionally and act locally; and Authority, the Department of Sustainability and ● Maintaining a database of relevant activities occurring Environment, Melbourne Water and Parks Victoria. in our area and sharing this knowledge. Some even know of their local Landcare group.

We may be a small organisation in some respects, but we However, only a small proportion of the broad public are an important part of the system to help our have heard of the Port Phillip and Westernport environment. Catchment Management Authority. Let me explain why this might be the case and why it is not an issue. We liken our role to that of an orchestra conductor. We are influencing and guiding the players, helping them to The PPWCMA is a Victorian Government organisation. work as a team, to harmonise and achieve outcomes. We have about 20 staff and have operated for four years. Our job is to get many organisations to plan together In 2006/07, we have played our part well. We have and work together to achieve a healthy environment. proudly helped the environmental orchestra in a number of ways including: Our area covers Port Phillip Bay and Western Port plus ● Negotiating and advancing the implementation of the the areas of land that flow into them (their catchments). 97 actions of the Regional Catchment Strategy with This includes Melbourne and much of the surrounding numerous organisations and documenting this work in landscapes, from the You Yangs to the Macedon Ranges a customised database that is rapidly becoming an to the Yarra Valley to Phillip Island. This area is almost a important information bank for many people; tenth of Victoria, is home to 3.5 million people and covers all or part of 38 council areas. ● Funnelling Victorian and Australian Government funds to local projects including over $4 million in 2006/07 Rather than dealing day-to-day with the broader public, from the Natural Heritage Trust, the National Landcare our main clients are the councils, the water authorities, Program and the Victorian Second Generation the government departments and the Landcare and Landcare Program; community groups in our area. We provide services to those organisations because they each play a part in protecting and enhancing the environment.

The services we provide to those organisations include:

● Generating a roadmap to a healthy environment (called the “Regional Catchment Strategy”) and gaining wide spread agreement to work together on its implementation;

● Directing Victorian and Australian Government funds to important projects;

● Generating funding from the private sector for important projects;

● Generating cooperation amongst organisations to improve the effectiveness and efficiency of their individual programs;

● Stimulating discussion and generating community input to important and sensitive environmental issues;

4 Port Phillip and Westernport CMA Annual Report 2006/07 ● Gathering data from various sources and publicly reporting a simple summary of the environmental condition of the region;

● Providing meaningful support to the region’s 470 environmental community groups, including Landcare groups, in the form of data provision, planning assistance, grants and facilitation services;

● Organising the Regional Landcare Awards to showcase and celebrate the valuable work being undertaken year after year by environmental community groups and individuals;

● Leading the development of four major projects that each involve numerous organisations, enhance cooperation and attract major funding for on-ground works, namely: ● Organising and hosting bus tours for councillors and ❖ Grow West - A landscape restoration project council staff, agency staff and community groups to centred around Bacchus Marsh that aims to highlight a wide range of local environmental plans revegetate 10,000 hectares of degraded land; and projects and facilitate an understanding of how everyone fits into the catchment-scale picture. ❖ Living Links - A long-term project in Melbourne’s south east that aims to create a network of recreational and environmental corridors as a This Annual Report outlines more of our work in greater world-class urban ecosystem; detail. It is a record of the PPWCMA’s achievements in 2006/07, our vision and our drive for a better ❖ Yarra 4 Life - A project in the southern part of the environment. Yarra Valley that aims to improve the Yarra River, bring residents and visitors in touch with their environment via a Great Yarra Walk, improve the For what has been achieved, I congratulate all of the livelihoods of local farmers and improve the PPWCMA staff. It is a pleasure to work with the habitat for threatened native fauna including the knowledgeable, professional, purposeful and committed Helmeted Honeyeater; and staff of the PPWCMA. ❖ Bring Back the Bunyip - A long-term project east of Melbourne in the catchments of the Bunyip River I also thank the PPWCMA Board appointed at the start of and Cardinia Creek that seeks to create continuous 2006/07. The Board has been decisive regarding the corridors of native vegetation from the hills to the future directions of the PPWCMA and has provided bay and halve the amount of sediment that flows valuable guidance and support for the staff in our work into Western Port. to get there.

● Developing, and sharing with various organisations, a broad-ranging ideas paper to spur discussion and debate regarding the future health of land and biodiversity in Victoria;

● Organising and hosting public seminars on water quality in the Yarra River, the environmental condition of the Dandenong Creek catchment and the future of David Buntine Melbourne’s green wedges, all of which disseminated Chief Executive Officer useful information to the community, raised the profile of the work of relevant organisations and generated ideas for improvement; and

Port Phillip and Westernport CMA Annual Report 2006/07 5 The Port Phillip and Western Port Region

Port Phillip and Western Port is a dynamic region, home to 3.5 million people. Even with such a large population, the region boasts some of Victoria’s most productive farming lands, spectacular parks, exciting landscapes and diverse natural ecosystems.

Demography The population of the region and the State is centred in and around metropolitan Melbourne, and it continues to grow. As Victoria’s capital city and economic heart, Melbourne is a hub of social interaction and activity, and a centre of learning and technology with around 1.4 million dwellings and more than 180,000 business locations. The activities and lifestyles of the region’s urban and rural residents and the region’s thriving tourism industry rely on cent of this vegetation is protected in parks or reserves the diversity and health of its stunning natural assets. and managed for conservation while a further 31 per Notable features in the region include the rural landscapes cent is found on other public land. The remaining 28 per around Melbourne, the high value of production from the cent of this highly significant indigenous vegetation is various agricultural industries, the major rivers (Yarra, retained on private land. Maribyrnong and Werribee) and the two bays – Port Phillip and Western Port. Parks and Reserves The region is home to many parks and reserves that Agriculture support rare and diverse flora and fauna species, and provide highly valued recreation and tourism areas. Of the 1.3 million hectares in the region, around There are eight National Parks, six State parks and eight 50 per cent is rural farmland with approximately 4,500 marine protected areas, as well as numerous regional, enterprises. The annual gross value of agricultural metropolitan and local parks and conservation reserves. production exceeds $1 billion, from industries including horticulture, dairying, poultry farming, beef farming and Water Resources viticulture. This figure approaches $9 billion if the value of down line value-adding is included. The region The region’s water storage and waterway system produces the second highest value agricultural yield provides potable supply for 75 per cent of Victoria’s among Victoria’s ten catchment management regions. population and many other economic, social and environmental benefits. There are over 8,000 kilometres Native Flora and Fauna of waterways, attracting around 100 million recreational visits annually. More than 900 wetlands are dotted The extensive range of vegetation communities and across the region, three of which are listed as Wetlands natural ecosystems found in the region are home to of International Importance under the Ramsar more than 1,860 species of native flora and more than Convention on Wetlands. 600 species of native vertebrate fauna, making this region one of the most biologically diverse in the State. The Bays and Coast Of these, more than 300 flora species and 150 fauna species are considered under threat of local or total Where the catchments meet the sea are Port Phillip Bay extinction from a range of processes. Victoria’s faunal and Western Port, each with unique and wondrous emblem, the helmeted honeyeater, is one of these ecological, economic and community values. The bays threatened species and is endemic to the region. support commercial fishing, a growing aquaculture industry, three major ports and provide the most popular Despite the level of development and alteration of the recreational fishing areas in Victoria. Not surprisingly, region’s landscape, approximately 32 per cent of the some 70 million recreational visits are made each year to region retains its locally indigenous vegetation, including the bays and beaches of the region’s 600-kilometre several areas of significant grasslands. Around 41 per coastline.

6 Port Phillip and Westernport CMA Annual Report 2006/07 Cultural Heritage The region is home to many sites of cultural significance including important Indigenous sites such as stone quarries, coastal shell middens and hundreds of scar trees scattered across the region, geological formations such as the Organ Pipes and Werribee Gorge, significant landscapes and vegetation of local and introduced species.

Managing the Region’s Natural Resources The region’s environment, as measured by indicators such as air and water quality, is generally good by world agricultural and industry bodies and over 470 volunteer standards and living conditions in the region are of a Landcare and community groups. Perhaps the greatest very high standard. These factors are fundamental to impact on the region is made by the substantial resident Melbourne’s reputation as one of the world’s most population whose daily activities either help enhance or livable cities. deplete our natural resources.

Managing the natural resources in this region is a complex task. Many people and organisations play a part in the ongoing management of these resources, including numerous Government agencies, 38 municipalities, various non-government organisations,

Port Phillip and Westernport CMA Annual Report 2006/07 7 Our Board

The PPWCMA was established under the provisions of Marcos Anastassiou the Catchment and Land Protection Act 1994. Marcos trained in social sciences and has The Board of the PPWCMA for the 2006/07 reporting worked in higher education as a planner and period was appointed on 21 July 2006 by the Minister for academic. He currently holds a senior Water, Environment and Climate Change (formerly the position in planning at RMIT University. Marcos has lived Minister for Environment), the Hon. John Thwaites MP. in the Macedon Ranges since 1992, and has been active in the community and was a Councillor for the Shire of Board members were appointed for their collective Macedon Ranges 1997-2000, and a Board member of skills and knowledge on a wide range of land and water the Djerriwarh Health Service 2000-2003. issues that provide the basis for effective planning and assessment of regional natural resource management. Kay Spierings Kay Spierings is a primary producer with a For most of 2006/07, PPWCMA had nine Board keen interest in rural and environmental issues. members. She has extensive business management and corporate administration experience with specific focus The 2006/07 Board membership comprised: on strategic planning, national competition policy, organisational governance, policy formulation and Andrew Grant - Chair business and financial management and administration. Andrew Grant is the Chief Executive Officer of Kay holds a business degree majoring in accounting the CO2 Group Limited and Managing Director and is a member of CPA Australia. of CO2 Australia Limited, a leading Australian company that creates carbon credits from environmental Arron Wood eucalypt plantings. He has extensive business and Arron Wood was named the 2001 Young natural resource management experience. He is a Board Australian of the Year (National Environment) member of the Banksia Environmental Foundation and a and has received many other awards for his Fellow of Leadership Victoria. Andrew holds a 1st Class services to the environment including awards from the Honours Degree in Science (Botany) and a Graduate United Nations. Arron has extensive experience working in Diploma in Business Administration (Executive). the field of water and catchment management and was Deputy Chair of the Victorian Waterway Managers Group Victoria Mack - Deputy Chair in 1999. Arron is now the Director of Firestarter Pty Ltd, an Victoria Mack is an adult education and environmental communication and education consultancy environment consultant. She runs the business. registered training organisation Land Connect Australia Pty Ltd from home on the sheep and cattle Duncan McDonell property 'Fairfield', at Darraweit Guim. She has been Duncan McDonell operates a beef, sheep and involved in Landcare, natural resource management and cereal farming system at Darraweit Guim. conservation agriculture since 1986. Victoria is a Director Duncan has extensive agricultural marketing of the Secretariat for International Landcare (SILC) Inc., and quality control expertise across both domestic and which promotes Landcare in other countries. international markets and has skills in pasture, forestry, cropping, pest and erosion management issues. He also Andrew Jessop has significant financial management experience. Andrew Jessop has over 30 years experience in the Melbourne metropolitan water industry. Bronwyn South He is currently the Manager for Corporate Bronwyn South is a computer scientist and Governance at City West Water. Andrew has long resided an associate of a large family-owned in the northern suburbs of Melbourne. He is a serving horticultural business. Bronwyn operates a Councillor with Hume City Council, first elected in 1997 consultancy specialising in business information and was elected as Mayor in 2002. Andrew is Council’s systems and taxation software for accounting Environment Portfolio spokesperson, Deputy Chair of its professionals and is a graduate of the Australian Institute Environmental Sustainability Taskforce, and is in his 10th of Company Directors. She is active in community year on the Merri Creek Management Committee. environmental issues and the local Landcare group.

8 Port Phillip and Westernport CMA Annual Report 2006/07 Phil Westwood Phil Westwood is a primary producer in Grantville with a property that includes a Conservation Covenant abutting the Bass River. He is President of the local Landcare group and active in local strategic planning groups. He is also a Board member of Westernport Water and a member of the Mornington Peninsula and Western Port Biosphere Reserve Foundation.

For three months of the year, the Board had 11 Members including a representative from each of DSE and DPI. Rodney Warren (DSE) was appointed by the Minister as a Board Member in July 2006 but resigned in August 2006. He was replaced by Peter Watkinson (DSE) who was a Member from September to 21 October 2006 when his term expired. Michael Ransom (DPI) was appointed by the Minister as a Member in July 2006 and his appointment expired on 20 October 2006. The departmental representatives were appointed for short terms because the Catchment and Land Protection Act 1994 was in the process of being amended to remove the requirement for the Minister to appoint departmental representatives. The amendments commenced on 31 October 2006.

Attendance at Board Meetings

The PPWCMA Board met on six occasions during Board Member B Board meetings attended 2006/07. The attendance of the members at PPWCMA Board meetings is illustrated right. Andrew Grant (Chair) 6 Victoria Mack (Deputy Chair) 6 Andrew Jessop 6 Marcos Anatassiou 5 Kay Spierings 6 Arron Wood 6 Duncan McDonell 6 Bronwyn South 5 Phil Westwood 6 Rodney Warren 0 Michael Ransom 1 Peter Watkinson 1 Table 1: Board member attendance at Board meetings in 2006/07

Port Phillip and Westernport CMA Annual Report 2006/07 9 PPWCMA Staff Structure as at end 2006/07

Yarra Landcare Coordinator Grow West Sam Bayley Figure 1: PPWCMA staff structure. Coordinator John Forrester

Maribyrnong / Werribee Landcare Coordinator John Robinson CATCHMENT Catchment PROGRAMS Programs Manager TEAM Doug Evans Yarra 4 Life Coordinator Greg Milne Living Links Coordinator Westernport / Wade Bland Dandenong Landcare Coordinator Sarah Canham

PPWCMA RCS Biodiversity Coordinator RCS MER Shelley Kyriazis Board Coordinator Janty Taylor

RCS Biodiversity Coordinator Mark Smith RCS Chief Executive IMPLEMENTATION RCS Manager Officer TEAM Ian Morgans David Buntine RCS Water Coordinator Marlos De Souza Local Government Coordinator Shane Scanlon GIS/IT Coordinator Chris Lewis

Investment INVESTMENT AND and Grants Manager GRANTS TEAM David Thomas NRM Coordinator Darren Bos

BUSINESS Bookkeeper Karen Marston MANAGEMENT Business Manager TEAM Carolyn Nicholson

Office Administration Ashleen McCarthy*

*trainee

10 Port Phillip and Westernport CMA Annual Report 2006/07 Our Staff Functions of the PPWCMA

At the end of 2006/07, the PPWCMA employed a total of The PPWCMA is a Victorian Government statutory 19 staff members, led by Chief Executive Officer, authority. It is responsible under the Catchment and Mr David Buntine. Land Protection Act 1994 for:

● Preparing a Regional Catchment Strategy for the Staff category Year region and coordinating and monitoring its 2005/06 2006/07 implementation Executive Officers 1 1 ● Promoting cooperation of people and organisations involved in land and water resource management in Team Managers 5 4 the region Administration Staff 2 1 Project Staff 10 13 ● Advising on regional priorities and resource Total 18 19 allocation to bodies involved in land and water resource management in the region Table 2: Staff positions at the end of 2006/07. ● Promoting community awareness and understanding of the importance of land and water Staff numbers have increased gradually each year since resources, their sustainable use, conservation and the PPWCMA was constituted in October 2002. Staff rehabilitation turnover has been at consistently low levels as shown in Figure 2, reflecting a strong team culture and staff ● Providing high quality and timely advice to commitment to the organisation. Government on matters relating to catchment management and land protection

● Reporting on the condition of the land and water resources in the region.

Number of staff that stayed with the PPWCMA Number of staff that left the PPWCMA The PPWCMA seeks improved coordination of the activities of the many people and organisations in the 20 region and to find effective and innovative ways to manage the existing and future pressures on our natural 15 15 resources. 15 17 10 14

5 These pressures include changing land-use, urban development, water consumption, energy use,

Number of staff positions 3 0 2 2 2 inappropriate land management practices, habitat and 2003/04 2004/05 2005/06 2006/07 species decline, pest plants and animals, threats to river and marine health, climate change, salinity and water Year pollution. Figure 2: PPWCMA staff turnover.

Port Phillip and Westernport CMA Annual Report 2006/07 11 Key Result Areas of the PPWCMA

The PPWCMA Corporate Plan for 2006/07 outlined five 3. Priority Setting and Investment Key Result Areas, through which the PPWCMA aims to Providing a high level of value for Victorian and be at the forefront of regional catchment management Australian Government investment in catchment in Australia. management with targeted projects in line with the Regional Catchment Strategy, value-for-money 1. Regional Catchment Strategy Implementation projects achieving multiple outcomes, coordination Developing a comprehensive Regional Catchment between partners, opportunities for marketing and Strategy for a complex environment with an sound project management delivering within time- exceptional level of stakeholder engagement, and lines and on budget. coordinating implementation of the Regional 4. Monitoring, Evaluation and Reporting Catchment Strategy by having many organisations Monitoring, evaluating and reporting on strategy cooperating to achieve a very high level of action in implementation and catchment condition – providing line with the Strategy’s priorities. science-based assessment of the actions being 2. Leadership and Advocacy for Integrated Catchment undertaken, the current condition of assets and Management trends for the future, with clear and understandable Being a leader and advocate for integrated reports being used by organisations in making catchment management in this region. This adaptive management decisions and for raising includes community engagement, generating major awareness of the broader community. integrated projects for catchment management 5. PPWCMA Culture and Business Management that attract private sector investment, improving Achieving and maintaining high standards of catchment condition and generating cooperation business management and corporate governance. between multiple stakeholders. The remainder of this Annual Report describes the PPWCMA's performance within these five Key Result Areas.

12 Port Phillip and Westernport CMA Annual Report 2006/07 Regional Catchment Strategy Implementation

Environmental conservation and repair is a complicated job involving many people and organisations. The KEY PERFORMANCE INDICATOR PPWCMA makes the job easier by creating a common From the 2006/07 Corporate Plan plan, the Regional Catchment Strategy (RCS) for land, ● Partnership Agreements with Melbourne Water water and native habitat in our region. and DPI generating tangible implementation of the RCS. We use the plan to help organisations and governments work together effectively and track progress towards common goals. The PPWCMA also reports on how these Partnership agreements have been established in contributions are making a difference to our environment. previous years by the PPWCMA with both Melbourne Water and the Department of Primary Industries. KEY PERFORMANCE INDICATOR From the 2006/07 Corporate Plan These agreements have formalised strong working relationships between the organisations. Tangible benefits ● Action Implementation Briefs established have included: and reported on by (a) the CMA for CMA-led ● Collaboration in planning for important issues including actions and (b) other organisations for the RCS river health and salinity management across the region; actions for which they have the lead role ● Commitment to lead the implementation of relevant RCS actions; One of the PPWCMA’s most important roles is to forge ● agreements with the region’s land, water and biodiversity Collaboration in community engagement activities; and agencies for them to implement the Regional Catchment ● Commitment and financial support for the development Strategy (RCS) actions. of the Grow West, Living Links, Yarra 4 Life and Bring Back the Bunyip projects. Each agreement is recorded in a database and contains project milestones which are used to assess progress in implementation. As at June 30 2007, the database indicated that the RCS KEY PERFORMANCE INDICATORS is about 25-30% complete. From the 2006/07 Corporate Plan

● RCS schedules developed with targeted rural and interface local governments in the region ● Alignment and complementarity with RCS of MSS’s, Green Wedge Plans, Growth Area Plans and issue-specific actions plans for issues such as salinity, biodiversity, water quality and river health ● Partnership agreements or similar established with other key stakeholder organisations

Various types of agreements have been established between the PPWCMA and numerous organisations in this region. Agreements are tailored to suit the needs of different organisations.

In particular, the PPWCMA seeks to work closely with councils because they invest an enormous amount of time and resources in activities which contribute to the health of catchments.

Port Phillip and Westernport CMA Annual Report 2006/07 13 Regional Catchment Strategy Implementation

The PPWCMA previously sought support for the RCS KEY PERFORMANCE INDICATOR targets and actions by establishing new agreements with From the 2006/07 Corporate Plan individual councils specifically for this purpose. However, this approach has been modified as we found ● Increasing number of Landcare groups with a it more useful to help councils adopt RCS targets into Strategic/Action Plan aligned with RCS their existing planning processes. This has led to a Memorandum of Understanding being established with the Hobson's Bay City Council. The PPWCMA is also Clarity of strategic direction and action, typically in the working with numerous councils seeking RCS targets be form of a strategic plan, is a key element of a healthy used in the development of Green Wedge Management and effective Landcare group. Plans. From a regional catchment management perspective, the The PPWCMA has also found that meaningful more clearly these plans are aligned with the RCS, the partnerships can be established with councils when more effective Landcare groups will be at contributing to there is a specific project that can be cooperatively achievement of regional targets and priorities. worked upon. This often leads to collaboration with other organisations as well. The PPWCMA worked with five Landcare groups in 2006/07 (Loch/Nyora, Poowong and District, Mt Lyall For example, an agreement is established for Grow West and Triholm Landcare Groups as part of the Slow the that includes; Shire of Moorabool, the Department of Flow Cluster, and the Macedon and Mount Macedon Primary Industries, Melbourne Water and Southern Landcare Group) to help them develop strategic plans Rural Water. for their groups. In all cases, the RCS and other regional plans were used to inform development, and ensure A partnership agreement is established for Living Links alignment, of the group plans. This brings to 40 the that includes; Melbourne Water, South East Water, City number of Landcare groups across the region reporting of Kingston, Shire of Yarra Ranges, City of Whitehorse, that they are working to a strategic and/or action plan City of Maroondah, City of Monash, City of Casey, City of for their group. Knox, Bushwalking Victoria and Parks Victoria. Bicycle Victoria and the City of Greater Dandenong are actively working towards a formal commitment.

A partnership agreement is established for Yarra 4 Life that includes; Melbourne Water, Yarra Valley Water, Shire of Yarra Ranges and Greening Australia Victoria.

A partnership agreement is established for Bring Back The Bunyip that includes; Melbourne Water, City of Casey, South East Water, Shire of Baw Baw and the Department of Primary Industries.

The PPWCMA has also found that cutting region-wide data to match council boundaries has been welcomed by councils. For example, the PPWCMA has begun cutting the data and targets from the Regional Native Vegetation Plan, launched in December 2006, to match council boundaries. The data and targets relate to the extent and quality of native vegetation. This initiative has supported the council policy-making, planning and decision-making regarding native vegetation.

14 Port Phillip and Westernport CMA Annual Report 2006/07 Leadership and Advocacy for Integrated Catchment Management

In 2006/07, the Port Phillip and Westernport FLAGSHIP PROJECTS Catchment Management Authority has worked with a Grow West range of stakeholders to develop specific programs that improve catchment management. Grow West is one of Australia’s most ambitious programs of landscape improvement and focuses on The PPWCMA has led the further development of four 50,000 hectares of land centred around Bacchus Marsh, flagship projects; Grow West, Yarra 4 Life, Living Links just 50 kilometres from Melbourne. It aims to revegetate and Bring Back the Bunyip. 10,000 hectares of badly degraded and weed infested land over 30 years, representing 20% of the local In addition, the PPWCMA has: landscape.

● Promoted catchment issues and examples of local In doing so, Grow West will: management through the media; ● Improve the health and sustainable production of ● Conducted bus tours and public seminars to bring farmland; people together around catchments and key issues; ● Create habitat links between the Wombat State Forest, ● Targeted engagement of local government in Werribee Gorge State Park and Brisbane National Park; recognition of their importance as partners; and ● Fight erosion and reduce sediment discharge into local ● Provided support to the region’s community landcare waterways and reservoirs; and movement to build upon its capacity to be effective ● Generate funds for local landowners to assist them catchment management partners. with on-ground works.

Grow West brings together the PPWCMA, Moorabool Shire Council, Department of Primary Industries, Melbourne Water, Southern Rural Water, Central KEY PERFORMANCE INDICATORS Victorian Farm Plantations, Landcare Australia Limited, From the 2006/07 Corporate Plan and representatives of local Landcare groups and landholders. ● Initiatives introduced that reflect leading-edge integrated catchment management ● Attracting major, long-term sponsors for the Grow West project ● Development of a coordination structure involving other organisations and the local community, and development of a Business Plan for the Yarra project ● Development of a coordination structure involving other organisations and the local community, and development of a Business Plan for the Dandenong Living Links project ● Development of a Business Plan for a flagship project in the Bunyip/Lang Lang area of the Westernport catchment 2006/07 Achievements ● Flagship projects progressed in each of the In 2006/07 revegetation was limited to a total of 60 region’s five catchments as a mechanism for hectares due to continuing dry conditions. Over the last engaging local organisations, businesses, four years however, Grow West has successfully rural industries and communities established 1100 hectares of indigenous revegetation and 440 hectares of farm forestry.

Port Phillip and Westernport CMA Annual Report 2006/07 15 Leadership and Advocacy for Integrated Catchment Management

Many planned revegetation projects were put on hold in For existing sponsors, Grow West has demonstrated its 2006/07 awaiting rain. However research was carried out efficiency at managing large-scale revegetation, and its in the field on both forestry and conservation plantings, experience with providing sponsors with promotional to study how best to prepare, plant and maintain the opportunities and green credibility. plantings in dry conditions.

The future Melbourne Water was welcomed to the Grow West Implementation Committee (GWIC) as both a financial Grow West seeks to maintain momentum, aiming for an and strategic stakeholder. The current committee average revegetation rate of 300 hectares per year. completed two years of operation, and has focused on strategic directions and emerging opportunities such as Renewal of the Grow West Business Plan is a high carbon sequestration. priority for 2007/08.

With assistance from Landcare Australia Limited, potential sponsors have been identified.

16 Port Phillip and Westernport CMA Annual Report 2006/07 Yarra 4 Life ● Give the Helmeted Honeyeater and other species a boost by creating a biolink connecting the Dandenong Yarra 4 Life is centred on 40,000 hectares of picturesque Ranges National Park with Yellingbo Nature Yarra Valley countryside between Lilydale, Gembrook Conservation Reserve and Kurth Kiln Park; and Woori Yallock. ● Bring the public in touch with the Yarra by initiating a Great Yarra Walk; and Yarra 4 Life has four main targets: ● Support local farmers by establishing a brand for ● Improve the health of the Yarra River by saving water locally grown produce for growers using sustainable to restore environmental flows, stopping pollutants production methods. getting into waterways and revegetating river banks;

Yarra 4 Life's funding supporters include Melbourne Water, Yarra Valley Water, Yarra Ranges Shire Council and Greening Australia Victoria. In addition, Yarra 4 Life brings together the Centre for Agriculture & Business – Yarra Valley, Yarra Valley and the Dandenongs Marketing, Yarra Ranges Landcare Network, Friends of the Helmeted Honeyeater, Landcare Australia Limited, Parks Victoria, Swinburne University, the Department of Sustainability and Environment and the Department of Primary Industries.

Figure 3: PPWCMA Flagship projects.

Port Phillip and Westernport CMA Annual Report 2006/07 17 Leadership and Advocacy for Integrated Catchment Management

2006/07 Achievements The future A full time Yarra 4 Life Coordinator was appointed in 2007/08 will see a completed Yarra 4 Life Business Plan. October 2006 that has led to the establishment of the This plan will be the basis for raising the profile of Yarra Yarra 4 Life Coordinating Committee and, subsequently, for Life to secure greater levels of government and four working groups. corporate investment, and establishing effective delivery mechanisms for on-ground works. The four main Yarra 4 Life targets have been researched and a Yarra 4 Life Business Plan is being prepared. Living Links Living Links is located in the Dandenong Creek $100,000 of Australian Government investment has been Catchment in Melbourne's south east. It covers an area sought for the first stage of on-ground works to occur, of 855 square kilometres from St Kilda to Kilsyth in the commencing in 2007/08. With support from Landcare north, to Cranbourne and Frankston in the south. Australia Limited, Yarra 4 Life has also been approached by a substantial corporate sponsor. Living Links will establish a web of parks, wetlands, pathways and open spaces. It will provide a serene In June 2007 more than 40 representatives from partner haven where the community can enjoy environmental, organisations toured the program area to meet some of social, cultural or educational experiences. the stakeholders and learn more of the program’s targets and challenges A master plan will be developed to ensure coordination within this project.

To date, various councils, agencies and organisations, have committed to turn the Living Links vision into reality. These include; Melbourne Water, South East Water, City of Kingston, Shire of Yarra, Ranges, City of Whitehorse, City of Maroondah, City of Monash , City of Casey, Knox City Council, Bushwalking Victoria, Landcare Australia Limited and Parks Victoria. Bicycle Victoria and the City of Greater Dandenong are actively working towards formal commitment.

Also involved in Living Links are the Wurundjeri Tribe Land Council, the Victorian Boonerwrung Elders Land Council, the Gould Group and the First Friends of Dandenong Creek.

18 Port Phillip and Westernport CMA Annual Report 2006/07 2006/07 Achievements Over 40 representatives of local and state government, During 2006/07, Living Links secured financial backing community members, local media and community totalling $126,500 from the Australian Government, organisations shared a bus on a tour of the Living Links Melbourne Water, South East Water, City of Kingston, program area in March 2007. Participants met City of Whitehorse, City of Maroondah, City of Casey, stakeholders in the area and visited several of the Knox City Council and Parks Victoria. short-term works program sites.

The Living Links Coordination Committee was Living Links was officially launched to an audience of established in December 2006 and met twice during over 120 people in April 2007. 2006/07 to establish and oversee the future directions of the project. The future The immediate focus is the production of a Living Links Three working groups were established to progress Business Plan and a long term Master Plan of works Living Links in the areas of marketing, monitoring and plus the implementation of some on-ground projects. the development of a long term Master Plan.

A short-term works program was also established consisting of 11 on-ground projects that will be implemented starting in 2007/08.

Port Phillip and Westernport CMA Annual Report 2006/07 19 Leadership and Advocacy for Integrated Catchment Management

Bring Back the Bunyip Bring Back the Bunyip focuses on the Bunyip River and Cardinia Creek catchments covering 136,000 hectares of land with a mix of urban blocks, lifestyle properties, intensive horticulture, broad acre farming and public reserves. The upper parts of the Bunyip Catchment are largely protected by the Bunyip State Park. However, the lower parts of the catchment are experiencing rapid urban development and significant land use change that will impact on the areas natural resources.

Bring Back the Bunyip will create continuous habitat links from the head of the Bunyip River to its mouth, and halve the amount of the sediment flowing into Western Port.

2006/07 Achievements Commitment to the project and financial investment was secured from Melbourne Water, Department of Sustainability and Environment, City of Casey, South East Water and Baw Baw Shire Council. Combined with investment through the PPWCMA, this now enables the employment of a fulltime coordinator.

The first Bring Back the Bunyip Coordinating Committee meeting was held in June 2007. Three Working Groups were established to progess

● Business Planning;

● Engagement, Communications and Marketing; and

● Biolinks Planning.

The future Early in 2007/08 a dedicated Bring Back the Bunyip Coordinator will be recruited. An immediate priority will be the preparation of a Bring Back the Bunyip Business Plan.

20 Port Phillip and Westernport CMA Annual Report 2006/07 KEY PERFORMANCE INDICATOR From the 2006/07 Corporate Plan

● Increase in public profile of the CMA and catchment matters, as indicated through a level of media exposure and targeted surveys of stakeholder awareness/understanding

During 2006/07, PPWCMA undertook a range of forums, bus tours and activities which delivered an outstanding media result for the organisation and raised awareness of relevant issues.

The PPWCMA prepared 49 separate media releases on a variety of catchment matters resulting in 94 articles reported in the press. Topics included: landcare groups, Landcare awards, flagship programs and developments, focus on specific areas such as waterways and broader issues such as the report on the region’s environmental KEY PERFORMANCE INDICATOR health and the complexities around managing From the 2006/07 Corporate Plan Melbourne’s green wedges. ● Standing committee structures established for Of note, 27 of these articles promoted the 2006 engagement of senior levels of local PPWCMA Landcare Awards and the achievements of government individuals and groups who won awards. Various stories from our Landcare groups were also included in the Landcare in Australia book which was distributed at the The strategy to establish standing committee structures International Landcare Conference in October 2006. with senior levels of local government was reviewed and reassessed during 2006/07. Through its work with the 38 councils in this region, the PPWCMA has recognised As part of the ongoing assessment and improvement of that ‘one size does not fit all’, and that the scope and PPWCMA communications, a survey was undertaken to format of its negotiations with councils should account assess the use and accessibility of our website and its for each council’s individual capacity and needs. content. The results will be used to make improvements to the website. Subsequently, the PPWCMA did not pursue the establishment of ‘standing committees’ of senior council managers at a regional or sub-regional scale in 2006/07. It did, however, continue to engage CEOs and senior directors from local governments through a wide range of activities and projects based on their councils’ specific interests and issues. Examples include council CEOs presenting at the CMA’s Green Wedge Forums; consultation with CEOs of the Interface Councils Group regarding peri-urban policy issues; participation by senior council managers in catchment bus tours; negotiation of flagship program agreements with councillors and senior managers; and engagement of senior planners in evolving native vegetation management approaches.

Port Phillip and Westernport CMA Annual Report 2006/07 21 Leadership and Advocacy for Integrated Catchment Management

Catchment Seminars KEY PERFORMANCE INDICATORS From the 2006/07 Corporate Plan The PPWCMA conducted four catchment seminars during the year that attracted a total of 570 people. ● Waterway and catchment advisory committee structure established in partnership with State of the Dandenong Catchment seminar Melbourne Water for engagement of catchment communities and local government This seminar was held in Moorabbin and attracted 120 ● Local government-hosted community forums people from 56 different organisations including 11 and leading edge community information councils and 22 community groups. Presentations were seminars held across the region, attracting in made by Melbourne Water, Australian Research Centre the order of 500 participants for Urban Ecology, Southern and Eastern Integrated Transport Authority, Parks Victoria and the PPWCMA.

In conjunction with partner organisations, the PPWCMA Green Wedges - Perspectives and Possibilities seminars is exploring new and innovative ways, beyond the advisory committee model, for engaging with our Two seminars were held – one in South Morang and one communities around management of waterways and in Pakenham. The South Morang seminar attracted 110 their catchments. To date, this has included a range of people from 47 different organisations including nine bus tours, community seminars, and local government councils and 26 community groups. forums, as well as support for our partners’ community engagement efforts. The Pakenham seminar attracted 220 people from 69 different organisations including 13 councils and 36 In 2006/07 the PPWCMA conducted a series of community groups. Presentations were made by RMIT seminars and bus tours to continue its active role in University, Nillumbik and Cardinia Shire Councils, Green helping councils, community groups and agencies in the Wedge Protection Group, Victorian Farmers Federation, region identify, discuss and resolve priority catchment Department of Sustainability and Environment and issues. the PPWCMA.

Bus tours Water Quality in the Yarra River seminar Eight catchment bus tours were conducted that attracted This seminar was held in Doncaster and attracted 120 over 300 people and included site presentations by over people from 41 different organisations including 6 60 people from the PPWCMA and various partner councils and 27 community groups. Presentations were organisations. made by Yarra Riverkeeper Association, Melbourne Water, Department of Human Services, Environment Protection Authority, Monash University, and the Yarra Coordinating Committee.

"Making Connections" events PPWCMA provided support for Melbourne Water’s delivery of a series of catchment-based engagement events modeled on the ‘Future Search’ process. Titled “Making Connections”, three events were held in 2006/07, one for each of the Maribyrnong (Romsey), Werribee (Rockbank) and Westernport (Beaconsfield) catchments that attracted a total of 220 people.

22 Port Phillip and Westernport CMA Annual Report 2006/07 ● Holding the 2006 Regional Landcare Awards, KEY PERFORMANCE INDICATOR attended by 200 people representing over 70 From the 2006/07 Corporate Plan community groups. Winners were recognised with ● Strategic support provided for the Landcare framed certificates and a grant and each was and community group networks across the supported with a nomination for the 2007 Victorian region Landcare Awards. The audience also heard Dr Jim Cavaye present on ‘Fostering Vibrant Landcare Groups’;

At the end of 2006/07 there were 86 Landcare groups ● Comprehensively updating the popular Calendar of known to be operating in the region, with an additional Grants and Incentives; 382 community groups on our contact database. ● Drafting of a comprehensive set of Landcare Notes focused on group development; The support provided by the PPWCMA for these groups ● Facilitating strategic and action planning with five is guided largely by the “Strategy for the Support and groups; Coordination of Landcare and Community Groups” and is delivered through the PPWCMA staff including three ● Partnering with Parks Victoria to run a Grants Catchment Landcare Coordinators. Workshop, with support from Melbourne Water and Our Community, to provide information and advice to The achievements for 2006/07 include: assist groups access resources. Positive feedback from the 60 people who attended has resulted in ● Supporting the formation of eight new Landcare similar workshops being planned for 2007/08; and groups and one new Landcare network; ● Supporting the Victorian Environmental Friends ● Producing group ‘atlases’ for 39 Landcare groups, Network to run a seminar titled “How to Win Friends making a total of 74 groups now with their own and Satisfy People”, attended by around 80 people. atlases. These atlases are sets of A3 colour maps depicting a range of land and natural resource data Melbourne Water and the PPWCMA are exploring scaled to the group’s boundaries; options for increasing the level of support for Landcare ● Compiling bi-monthly email bulletins of funding and and other community groups across the region. training opportunities, upcoming events and relevant resources, for all groups, as well as local government councillors and politicians;

Port Phillip and Westernport CMA Annual Report 2006/07 23 Priority Setting and Investment

Each year the PPWCMA develops a Regional Government funding for priority projects Catchment Investment Plan (RCIP) to direct Victorian A total of $7,036,635 in Victorian and Australian and Australian Government investment towards high Government funding was directed to priority activities by priority activities. This process involves identifying the PPWCMA in 2006/07. This funding was from: priorities, engaging numerous people in project development and then administering the funding to ● The Victorian Government ($3,151,000); achieve the desired outcomes. ● The Australian Government’s Natural Heritage Trust ($3,445,000); and KEY PERFORMANCE INDICATORS ● The Australian Government’s National Landcare From the 2006/07 Corporate Plan Program ($440,635).

● Asset-risk and investment methodologies The Victorian Government funding of $3,151,000 came developed and tested through the Department of Sustainability and ● Regional Catchment Investment Plan Environment for various initiatives including pest developed and submitted on time to State and management, salinity management, threatened species Commonwealth investor agencies and biodiversity protection and land use planning. ● High level of stakeholder satisfaction regarding the investment process The Australian Government’s Natural Heritage Trust ● High proportion of available Commonwealth (NHT) aims to help restore and conserve Australia's funding secured by this region as compared to environment and natural resources. It is a significant other regions investment program for the Port Phillip and Western ● Increasing level of RCS implementation Port region. The PPWCMA’s regional allocation for NHT was higher than the average Victoria CMA regional allocation. In 2006/07, 30 projects in the Port Phillip and Western Port region received NHT funding that totalled $3,445,000. Prioritising Investment The PPWCMA uses environmental assessment The Australian Government’s National Landcare techniques to identify priorities across the region. For Program (NLP) is aimed at increasing the sustainability, example, asset-risk analysis is one tool being used to profitability and competitiveness of Australian primary help prioritise investment. industries. These funds provide an opportunity for the PPWCMA to work with Landcare and other organisations The PPWCMA also uses an expert 'prioritisation panel' to achieve the RCS goal of “healthy land used to identify priorities. The panel includes people from appropriately and productively”. With the help of the various organisations with an appropriate mix of skills PPWCMA, five organisations were successful in and expertise. attracting 2006/07 NLP funding of $440,635 (13% of the funding awarded to Victorian CMAs) for five projects. Regional Catchment Investment Plan Projects funded by the Victorian Government, Natural The Victorian and Australian Governments approved the Heritage Trust and National Landcare Program for 2006/07 RCIP in August 2006. 2006/07 are listed in Table 3.

As part of the PPWCMA’s continuous improvement practice, a questionnaire was sent to all stakeholders involved in the development of the 2006/07 RCIP. The responses indicated a high level of satisfaction with the process used, with all respondents considering the process to be effective in targeting investment and 80% believing that it encouraged co-investment with other partners.

The 2007/08 RCIP was submitted in April 2007 and funding announcements are expected early in 2007/08.

24 Port Phillip and Westernport CMA Annual Report 2006/07 Table 3: Catchment management projects funded by the Victorian Government and Australian Government (NHT and NLP) in 2006/07

Project Title Lead Proponent $’000s Invested

Living Links PPWCMA 55 Adaptive management for Coastal Moonah Woodland DSE 31 Native Vegetation Incentive Schemes in the Shire of Melton Melton Shire Council 44 TfN Conservation Covenants and On-going Stewardship Trust For Nature 92 Implementation of Threatened Orchid National Recovery Plans DSE 71 Implementing Recovery Plan Actions for Four Threatened Flora Species DSE 27 Grow West PPWCMA 197 Smarter use of irrigation water in the Port Phillip and Westernport Region DPI 115 Waterwatch Melbourne Melbourne Water 82 Use of Recycled Water DPI 126 Improving Water Use Efficiency & Water Quality from the Werribee Catchment DPI 151 Yarra 4 Life PPWCMA 44 Implementing Biodiversity Actions of the Regional Catchment Strategy PPWCMA 103 Helmeted Honeyeater Recovery Program DSE 120 Native Vegetation Management in the Port Phillip DSE Region DSE 194 Eastern Barred Bandicoot Recovery Actions at Woodlands Historic Park DSE 22 Northern Nature - Creek Connections Merri Creek Management Committee 76 Swamp Scrub Swamp Skink Protection Mornington Peninsula Shire 49 Biodiversity Stewardship Tender in the City of Hume City of Hume 76 Managing the Health of Reef-fish Communities Melbourne University 66 Reducing the Spread of Marine Pests Boating Industry Association Victoria 116 Protecting & Enhancing Coastal Vegetation Mornington Peninsula Shire 87 Reef Watch - Building Community Stewardship for Marine Ecosystems Museum Victoria 55 Implementing the CoastCare/CoastAction Programs DSE 109 The Conservation Status of Reef Fish Communities in Victorian Waters Melbourne University 130 Rabbit Management DPI 48 Weed Alert DPI 414

Port Phillip and Westernport CMA Annual Report 2006/07 25 Priority Setting and Investment

Table 3: Catchment management projects funded by the Victorian Government and Australian Government (NHT and NLP) in 2006/07

Project Title Lead Proponent $’000s Invested

Victorian Community Weeds - Serrated Tussock DPI 204 Victorian Community Weeds - Ragwort DPI 149 Catchment Priority Weeds DPI 98 Good Neighbour Program DPI 119 1080 bait management DPI 37 Sustainable Landscape Management - Implementing the Salinity Management Plan DPI 293 Western Port Ecosystem Services Bass Coast Landcare Network/Cardinia Environment Coalition/South Gippsland Landcare Network 262 Rural Land Use and Sustainable Green Wedges DPI 120 Grow West - Pest Plant & Animal Program DPI 255 Engaging Local Government in the delivery of the RCS PPWCMA 102 Regional Scale Community Landcare Support PPWCMA 100 Catchment Scale Support of Community Landcare PPWCMA 327 Engaging the Indigenous community in delivery of the RCS Greening Australia 98 PPWCMA Community Grants PPWCMA 401 Northern Yarra Landcare WACMAC 59 Salinity Alert! Pakenham/Bunyip Hotspot Integrated Action Project Cardinia Environment Coalition 70 Solutions at the Source. Western Port Victoria Bass Coast Landcare Network 186* Tarago Catchment Sustainable Production Program Neerim & District Landcare Group 61* Community Landcare Coordinator Yarra Ranges Shire Council 65 Regional NRM Coordinator PPWCMA 75 CMA Corporate Allocation PPWCMA 950 Asset Risk, Action Tracking and Monitoring & Reporting PPWCMA 306

TOTAL $7,037 *Figures have been rounded slightly for ease of reference.

PPWCMA Community Grants The PPWCMA Community Grants program provides funds to regional organisations, Landcare and community environment groups to improve the quality and management of the region’s natural resources.

In 2006/07, a total of $368,700 was secured by the PPWCMA for the Community Grants program. $240,000 was sourced from the Victorian Government’s Second Generation Landcare Program and a further $120,000 came from the Australian Government’s Natural Heritage Trust. A one-off contribution of $8,800 was made by Melbourne Water towards the Balbirooroo Community Wetlands project.

26 Port Phillip and Westernport CMA Annual Report 2006/07 From this pool of funds, ($29,100) was provided to groups in the form of Support Grants ($300 each) to 47 groups, and Promotional Grants (of $500) to 30 groups.

A further 35 projects received a total of $339,600 to undertake larger, on-ground projects and capacity building activities. The successful projects in the 2006/07 PPWCMA Community Grants program are listed in Table 4.

Table 4: Projects funded through the PPWCMA Community Grants program in 2006/07

Project Title Lead Proponent $’s Invested

Removal of Weeds for Preparation of Revegetation Project Yarramie Reserve Friends Group 1,774 Hawthorn Hedge Removal/Replacement, Toomuc Valley Toomuc Landcare 2,000 Toomuc Landcare Infill of Previous Projects Toomuc Landcare 2,200 Truganina Cemetery Endangered Species Protection Wyndham City Council 2,500 Follow-up Treatment of Pest Plants, Controlling Erosion with Revegetation Somers Foreshore Committee of Management 3,914 Mornington Peninsula Shire Landcare Network Interim Facilitation Project Mornington Peninsula Shire 4,500 Point Leo Road Restoration Project East Creek Organisation for Landcare (ECOCare) 4,950 Cape Tulip Eradication on French Island French Island Landcare 5,250 Grasslands Restoration Project Braeside Park (4) Friends of Braeside Park 5,695 Stop Degradation to Tomahawk Creek & Kurth Kiln Environment Friends of Kurth Kiln 5,730 Maryknoll Reserve Weed Control & Community Project Cardinia Shire Council 6,000 Protecting & Enhancing the Brahma Kumaris Native Vegetation Brahma Kumaris Retreat Centre 6,500 Frankston Foreshore - Mile Bridge Dune Erosion & Revegetation Program Frankston Beach Association Inc 6,768 Reversal of Native Vegetation Decline of Private Land Thompsons Road Area Community Fireguard & Landcare Group 7,050 Facilitator for Bush Restoration & Community Engagement in Southern Dandenong Ranges Johns Hill Landcare Group 8,000 Cardinia Aqueduct Trail Pittosporum Control Toomuc Landcare Group 8,500 Balbirooroo Community Wetlands, woodlands Balbirooroo Community Wetlands/Balnarring & creekline continuing revegetation Primary School 8,800

Port Phillip and Westernport CMA Annual Report 2006/07 27 Priority Setting and Investment

Table 4: Projects funded through the PPWCMA Community Grants program in 2006/07

Project Title Lead Proponent $’s Invested

Intensive Mangrove Planting on the Lang Lang Cliffs Western Port Seagrass Partnership 9,000 Boeing Reserve Grassland Restoration and Weed Control Moonee Ponds Creek Coordination Committee 9,011 Biolinks Strategy Plan - Phase 2 Cardinia Environment Coalition 9,500 Removal of Cypress Pines & Woody Weed From Capel Sound Foreshores Committee Remnant Vegetation of Management inc 10,000 Cardinia Shire Community Ragwort Control Program Cardinia Shire Council 10,000 Yaloak Rowsley Gorge Restoration Project Rowsley Landcare Group 10,935 Puffing Billy Environmental Management Emerald Tourist Railway Board (Johns Hill Landcare) 11,298 Upwey Link Biodiversity Project Friends of Ferny Creek 11,310 Salinity Identification Protocols: Groundwater Monitoring Westernport Catchment Landcare Network 14,000 Mornington Peninsula Shire Land Protection Incentive Scheme 06-07 Mornington Peninsula Shire 15,000 Manningham Pest Plant & Animal Control Manningham Environmental Action Groups 15,000 Macedon Ranges Shire Council Roadside Vegetation Mapping Project Macedon Ranges Shire Council 15,000 Community Rabbit Action Facilitation 2007/08 Nillumbik Shire Council 16,000 Greening the Goon 2007 Bessie Creek/Ararat Creek Landcare Group 16,925 Bass Coast Integrated Pest Plant & Animal Control Bass Coast Landcare Network 17,500 Macclesfield Community Education Project/Biodiversity LAP Implementation Macclesfield Landcare Group 19,000 Slow the Flow - Protecting our Assets South Gippsland Landcare Network 19,990 Extending the Boundaries, Consolidation of Jukes Road Grassland Remnant Habitats Merri Creek Management Committee 20,000

TOTAL $339,600

28 Port Phillip and Westernport CMA Annual Report 2006/07 Other Funding for the Region Private Sector Investment In addition to the funds already outlined, the PPWCMA In 2006/07 alone, and with significant support from supported groups and organisations to secure funds Landcare Australia Limited, the PPWCMA has from other sources for natural resource management successfully attracted $505,500 from private sector programs. organisations, primarily through the four Flagship Projects. This type of contribution is growing and the PPWCMA is negotiating much greater levels of private Australian Government Envirofund investment into the region for 2007/08. Forty-four community groups in the Port Phillip and Western Port region were successful in obtaining Australian Government Envirofund grants in 2006/07. Drought Employment Program A total of $758,621 was awarded to these projects in The Drought Employment Program funded by the round eight of the Envirofund program. This was Victorian Government included $150,000 for the PPWC- approximately 26.5% of the total funds allocated to MA to employ farmers, farm workers and/or individuals Victoria. directly affected by the drought to undertake a range of projects to protect and sustain important environmental assets. The funds were allocated to landholders to pay for resources and labour that utilised the skills of these individuals.

Port Phillip and Westernport CMA Annual Report 2006/07 29 30 Port Phillip and Westernport CMA Annual Report 2006/07 Port Phillip and Westernport CMA Annual Report 2006/07 31 32 Port Phillip and Westernport CMA Annual Report 2006/07 Monitoring, Evaluation and Reporting

One of the most important tools and services the Reporting acknowledges good progress and strengthens PPWCMA provides to its stakeholders is the business cases for change where progress may not be monitoring of our catchment’s health, the evaluation of optimal. projects and the creation of reports and reporting tools to track this development. This includes the Over time the database will become a history book of monitoring of the progress of the RCS and reports on the combined efforts of many organisations to environmental conditions and change. implement the RCS.

KEY PERFORMANCE INDICATORS Work is continuing at the PPWCMA to meaningfully From the 2006/07 Corporate Plan link the RCS implementation with evaluations of catchment condition. in the future, this will enhance ● RCS Action Tracking Database populated with the understanding of which RCS actions and targets are up-to-date, relevant information and publicly most effective. accessible ● Establishment of an independent scientific Catchment Condition panel to advise on catchment condition assessment A report on catchment condition was completed and ● Tabling in Parliament by the Minister of the published in late 2006. Since then, work has centred on CMA Annual Report containing assessment of improving the scientific basis and the format of future RCS implementation and catchment condition reports. It was decided in 2006/07 that the PPWCMA will produce an Annual Report that broadly outlines catchment condition (see following pages), but will also Monitoring, evaluation and reporting activities of the strive to publish a separate easy-to-read report card on PPWCMA aim to provide answers to the questions: some elements of the environment. ● Are the region’s land, water and biodiversity in good condition and likely to be healthy in the future? The report card is designed to more effectively reach the ● What is being done to solve problems and where do broader public of the region. we need to invest or work differently?

Reporting on the implementation of the Regional It will present results as simple letter grade scores Catchment Strategy making it easy to understand and present ratings for the ten areas in the region that are clusters of council areas. The responsibility for implementation of RCS actions is shared across many agencies, groups and boundaries. A central database to record and measure progress was A scientific reference panel will be used to scrutinise the established in 2006/07. report card's ratings and evaluation methods.

The database records a description of each of the RCS’s The PPWCMA acknowledges the significant support of 97 actions and the milestones being used to measure the region’s land, water and fauna and flora managers progress. for their assistance with data collection and evaluation.

The database is updated frequently to include new developments and ‘in-flight’ changes to the action or its implementation.

The database now provides data to be used in twice-yearly progress reports on the implementation of the RCS. The PPWCMA believes this will become an important service to many organisations.

Port Phillip and Westernport CMA Annual Report 2006/07 33 Monitoring, Evaluation and Reporting

Following is a brief report on the environmental From November 2006 to March 2007, as part of the condition of the Port Phillip and Western Port region Better Bays and Waterways water quality improvement using five representative indicators. These five plan, the Environment Protection Authority Victoria indicators provide a useful snapshot of the condition conducted weekly water quality evaluations for 36 of important natural assets in this region, namely the beaches in Port Phillip Bay and 10 beaches in Western rivers, water quality, the bays, groundwater, Port. The overall rating for water quality at the beaches biodiversity and the environmental values of public was ‘good’. However, one advisory against swimming land. was issued in March 2007 when samples revealed high bacterial levels at several beaches and two stormwater alerts were issued to advise of potential poor water River health quality when heavy rainfall was predicted. The results There are around 8,000 kilometres of rivers and streams from this monitoring indicate that sound progress is in this region. The economic, environmental and social being made towards meeting Regional Catchment benefits delivered by our rivers and streams depend on Strategy Target WT20 of reducing the number of days their continued health. The Regional Catchment where beaches are unsuitable for swimming to zero by Strategy Target WT6 aims to have at least 50% of all the 2010. natural waterways in good or excellent condition by 2015. Indicator of PPWCMA PPWCMA catchment assessment of assessment of The condition of rivers is assessed using the Index of condition condition trend Stream Condition which measures flow regimes, water quality, the condition of the river bed and banks, the Moderate- Stable- health of native vegetation in the riparian (riverbank) River health Poor Improving zones and the type and diversity of native invertebrate fauna in the waterway. The most recent assessment shows that 12% of the region’s waterways are in excellent condition, 11% are in good condition, 30% are Water in moderate condition, 36% are in poor condition and quality at Healthy Stable 11% are in very poor condition. Of the river reaches in beaches good or excellent condition, many are located in the closed water supply catchments or forested areas. There is a pattern of decline in waterway condition from a stream’s headwaters to its lowland reaches that is due to the influence of intensive land use and urban Groundwater Moderate Stable development.

Water quality at beaches Extent of High standards of water quality at beaches is important native Poor Declining to the region’s community and is a good indicator of vegetation how well the catchment and bays are being managed. The Environment Protection Authority Victoria is the principal monitoring authority of beach water quality at Port Phillip Bay and Western Port beaches. Weekly Parks Moderate Stable assessments of beach water quality are made during summer by measuring levels of Enterococci bacteria contamination plus E coli at some beaches. Where bacteria levels reach a trigger point, a warning is issued against swimming and a more intense monitoring program is initiated until water quality returns to safe levels.

34 Port Phillip and Westernport CMA Annual Report 2006/07 Groundwater There is anecdotal evidence that the trend for native Groundwater is used throughout the region for a variety vegetation extent is continuing downward, particularly of domestic purposes; for stock watering, crop irrigation for grasslands. The result is that the Regional and limited industrial applications. Extractions from Catchment Strategy target BT1 will be very difficult to groundwater reserves are managed within a framework achieve. of scientifically-based estimates of the average volume of groundwater that can be extracted from an aquifer on a Parks yearly basis without exhausting the groundwater A feature of the Port Phillip and Western Port region is resource. Once licensed extractions reach the its extensive array of parks, open space and scenic permissible consumptive volume, no further allocations landscapes. The Regional Catchment Strategy Target for extractions are allowed. The Regional Catchment LT10 provides two quantifiable measures of the values Strategy Target WT11 highlights the importance of we place on our parks; their contribution to the region’s keeping extractions within defined limits to ensure the environmental quality and their contribution to the sustainability of the aquifers. region’s social amenity via measures of visitor satisfaction. Within the Port Phillip and Western Port region, there are 11 Groundwater Management Areas. Southern Rural Parks Victoria’s most recent records of visitor numbers Water manages the licensing of bores and extraction of show an estimated 118 million visits were made to groundwater in most of these areas. Southern Rural parks and gardens in the Melbourne metropolitan area in Water advises that extractions from the aquifers within 2006/07, an increase of two million from the previous the region are being managed at or below the year. Parks Victoria also monitors and reports on the permissible consumptive volumes in these areas. “State of the Parks”, surveying visitor satisfaction and providing an assessment of risks to parks throughout Extent of native vegetation Victoria. The most recent visitor survey, conducted in Due to extensive agricultural and urban development, 2006, indicated that Melbourne’s park users were only around 30 per cent of original native vegetation generally satisfied with the services and facilities of cover remains across the region. Regional Catchment Melbourne metropolitan parks. Strategy Target BT1 seeks an overall increase in native vegetation in the region from its existing 30 per cent to 35 per cent by 2030.

Attainment of this target will require determined protection and management of existing native vegetation, plus a further 40,000 hectares of revegetation above any losses. Protection of existing native vegetation is a top priority as retaining existing mature habitat is the most efficient and cost effective way to support biodiversity.

Of the native vegetation that remains, much occurs in the mountainous upper catchment areas and is composed of vegetation types considered to be relatively abundant and in reasonable condition. The extent of native vegetation in the lower, flatter areas, however, is of particular concern. These areas account for half of the region and the vegetation cover has been reduced to less than 10 per cent, with much of this composed of endangered vegetation types such as grasslands.

Port Phillip and Westernport CMA Annual Report 2006/07 35 PPWCMA Culture and Business Management

This Key Result Area encompasses effective and The members of the Business & Remuneration efficient management of the PPWCMA business, while Committee at the end of 2006/07 were four Board mem- making the PPWCMA a professional, rewarding, bers, namely: challenging and enjoyable place to work. ● Andrew Grant (Chair); ● Marcos Anastassiou; Committees ● Vicky Mack; and Two committees of the PPWCMA Board play an ● Duncan McDonell. important role in this Key Result Area; the Audit Committee and the Business & Remuneration Committee. The key items addressed by the Committee through the Audit Committee year included: The PPWCMA Audit Committee was established by the ● Oversight in the development of the PPWCMA Board to oversee and advise on: Corporate Plan and an associated Board Work Plan; ● Oversight on the process for the annual PPWCMA ● Financial performance and the financial reporting Board Performance Assessment; and process; ● Development and assessment of the CEO Work ● The performance of internal and external audits; Program and performance. ● The operation and implementation of the risk management framework and systems of internal control; and Governance practices ● Monitoring of compliance with laws and regulations, In addition to the activities of the Audit and Business & Code of Conduct and Financial Code of Practice. Remuneration Committees, the Authority managed its finances, business and culture with numerous activities The members of the Audit Committee at the end of in 2006/07 as outlined against the following Key 2006/07 were four Board members, namely: Performance Indicators.

● Bronwyn South (Chair); ● Andrew Grant; KEY PERFORMANCE INDICATOR ● Kay Spierings; and From the 2006/07 Corporate Plan ● Andrew Jessop. ● Compliance with Financial Management The Audit Committee met on three occasions in 2006/07. Compliance Framework at all times The key items addressed included:

● Planning and oversight of the internal audit projects; In September 2006 the PPWCMA assessed that it was ● Oversight of implementation of recommendations from audits; compliant with 10 of the 11 Direction Requirements of the Financial Management Compliance Framework with ● Oversight of the completion of the Authority's 2006/07 Annual Financial Statements; and one Direction being not applicable. In February 2007, ● Review of compliance with Financial Management Price Waterhouse Coopers (PWC) undertook an audit of Compliance Framework and Tax Compliance the PPWCMA’s compliance with the Financial Framework. Management Compliance Framework and reported that seven of the 11 Directions were compliant. The remaining four Directions, while not being reported as Business & Remuneration Committee non-compliant, did have recommendations to how The PPWCMA Business & Remuneration Committee was compliance could be improved. All recommendations established by the Board to advise on: from PWC to improve compliance have since been ● Strategic planning for the PPWCMA; adopted by the PPWCMA and implementation has ● The development of PPWCMA policies and procedures; commenced. and ● Management reporting, financial reporting and compliance reporting.

36 Port Phillip and Westernport CMA Annual Report 2006/07 KEY PERFORMANCE INDICATORS KEY PERFORMANCE INDICATOR From the 2006/07 Corporate Plan From the 2006/07 Corporate Plan

● Scope and content of PPWCMA policies ● Board performance assessed validated by internal auditors as sufficient to achieve compliance with statutory obligations and a high standard of governance An assessment of the performance of the Board and its ● PPWCMA risk assessment and risk members was undertaken in late 2006/07 and, at the management process validated by internal request of the then Acting Minister, a summary of auditors findings was provided to the Executive Director, Natural Resources, Department of Sustainability and Environment. The Authority contracted the services of internal auditing firm, PKF, for the following internal audits:

● Financial Management; ● Project Management; ● Risk Assessment Review; ● Axapta Business Case; and ● Fraud Minimisation (completed in July 2007).

These audits, along with audits from previous years, indicated that the PPWCMA maintained a high level of governance and appropriate risk management in 2006/07.

KEY PERFORMANCE INDICATORS From the 2006/07 Corporate Plan

● Tabling in Parliament by the Minister of the PPWCMA Annual Report ● Approval by the Minister of the PPWCMA Corporate Plan

KEY PERFORMANCE INDICATORS The PPWCMA Annual Report for 2005/06 was tabled by From the 2006/07 Corporate Plan the Minister for Environment. ● Demonstrated improvements in staff culture, The PPWCMA Corporate Plan for 2007/08 was approved by effectiveness and efficiency ● the Minister for Water, Environment and Climate Change Appropriate levels of staff retention (formerly the Minister for Environment) in June 2007.

Recruitment processes have been extensive and detailed to ensure that the level of skills resident within the PPWCMA is high and that the mix of skills is broad and adequate. Recommendations received from our internal auditors regarding this process have been adopted.

Various activities were undertaken in 2006/07 to build a culture within the organisation of professionalism, collaboration, leadership and commitment. Staff meetings for all staff were regularly held. Two staff development workshops were held. All staff participated in these events.

Port Phillip and Westernport CMA Annual Report 2006/07 37 PPWCMA Culture and Business Management

The PPWCMA has a formalised work performance Merit and Equity planning process which involves the annual The PPWCMA is an equal opportunity employer and development of a work performance plan (WPP) and a applies the Victorian Government’s merit and equity half yearly and year end assessment of performance principles, as described in the Public Administration Act against the plan. There is a focus on staff development 2004, to all employment selection procedures. Selection within individual WPPs. In 2006/07 two staff undertook processes ensure that applicants are assessed and tertiary education, 10 staff undertook specialised evaluated fairly and equitably on the basis of the development courses and all staff were required to position’s Key Selection Criteria and other undertake specialised driver safety as well as privacy accountabilities without discrimination. training. The gender balance in the PPWCMA Board and staff as During the year the PPWCMA relocated its head office at June 30, 2007 is shown in Table 5 and established an independent and professional office which provided staff with improved facilities and systems. Gender Balance

This year was the first year all staff of the PPWCMA Gender split 2005/06 2006/07 participated in the annual “People Matters” survey Male Board members 7 6 undertaken across various government sector organisations. Staff satisfaction will be measured Female Board members 5 3 through this survey each year. Total 12 9

The outcome of these actions is that the PPWCMA staff Male staff members 12 14 team is highly collaborative, efficient and satisfied with the PPWCMA working environment and that there is a Female staff members 6 5 high level of loyalty to the PPWCMA and a high staff Total 18 19 retention rate. Table 5: Gender breakdown of Board and staff members

Industrial Relations Compliance with other statutory obligations No time was lost in 2006/07 to industrial accidents or disputes. Compliance with Building Act 1993 The PPWCMA does not manage any buildings. Whistleblowers Protection The Whistleblowers Protection Act 2001 is designed to Information Privacy protect people who disclose information about serious The PPWCMA has a privacy policy that complies with wrongdoing within the Victorian Public Sector and to the Victorian Information Privacy Act 2000. All personal provide a framework for the investigation of these information collected by the PPWCMA is held securely matters. During 2006/07 there were no disclosures and any disclosures are handled in accordance with the made under Whistleblowers Protection Act 2001. ten Information Privacy Principles.

Occupational Health and Safety The protected disclosure coordinator for DSE acts as an agent for the PPWMCA to receive disclosures under The PPWCMA adheres to the requirements of the the Act, and applies DSE procedures in managing Occupational Health and Safety Act 2004. During the disclosures under the Whistleblowers Protection Act reporting period, PPWCMA staff and management were served by a duly elected Health and Safety 2001. Disclosures may also be made directly to the Representative who provided all employees of the Ombudsman. The contact details for the Protected Authority with health and safety information to maintain Disclosure Coordinator and Ombudsman are: a safe working environment at PPWCMA worksites, and to promote safe work practices and safety awareness Deidre Egan, Protected Disclosure Coordinator amongst all staff. Department of Sustainability and Environment PO Box 500, East Melbourne Vic 3002. During 2006/07 no incidents were reported to the Telephone: 9637 8575 Facsimile: 9637 8129 Victorian WorkCover Authority. Email: [email protected]

38 Port Phillip and Westernport CMA Annual Report 2006/07 The Ombudsman Victoria During 2006/07 the PPWCMA received no Freedom of Level 9, 459 Collins Street, Melbourne Vic 3000. Information requests for access to documents under the Telephone: 9613 6222 Toll free: 1800 806 314. FOI Act 1982.

Freedom of Information National Competition Policy Compliance The public has the right to apply for access to In accordance with National Competition Policy, documents held by PPWCMA and covered by the competitively neutral price adjustments to outputs were Freedom of Information Act 1982 (FOI Act). This applies made where appropriate. to documents created by PPWCMA as well as those supplied to the PPWCMA. The public may apply for the Consultancies and Major Contracts original or for a copy. A fee of $22 is applied to all During 2006/07 the PPWCMA undertook 16 requests. Further charges may be payable. FOI fees and consultancies for projects relating to asset risk analysis, charges are not subject to GST. grassland mapping, workshop facilitation and business development. The total value of these consultancies was Documents which are maintained in the possession of $237,564. There were no consultancies in excess of the PPWCMA include: $100,000 in 2006/07. ● Internal working papers; ● Correspondence from Ministers and Members of International Travel Parliament, Government Departments and agencies, The PPWCMA contributed to travel and accommodation members of the public and the private sector; costs when Monitoring, Evaluation and Reporting ● Reports prepared by consultants commissioned by Coordinator, Janty Taylor, visited Canada in May 2007, the PPWCMA; enabling her to study the work of the Fraser Basin ● Accounts records; Council, Vancouver. ● Personnel and salary records; and ● Organisation and accommodation records. Valuable observations were made on how the Council Freedom of Information (FOI) requests must be made in exercised its role in facilitating environmental action writing and should be as specific as possible to enable between governments and regional organisations. An the FOI Authorised Officer to identify relevant example was the Council’s recent project to undertake documents as quickly and efficiently as possible. Once a letter requesting access is received, the Authority must regional-scale infrastructure and environmental respond as soon as possible, but not later than 45 days, mapping. This project provided information and tools to outlining its decision on the request. If the PPWMCA support decision-making by other provincial agencies refuses access to the documents sought, the applicant and organisations and emphasised the need to act can appeal to the Authorised Officer for an internal across institutional boundaries. review, but must do so within 28 days of the letter being sent to the applicant. The PPWCMA must then reconsider the request and respond to the applicant Of particular interest was the Council’s role in evaluation, within 14 days. reporting and community education. The council has harnessed the high profile of the region’s salmon fishing If the applicant wishes to appeal further to the Victorian industry and “Think Salmon” - a profile program to raise Civil and Administrative Tribunal, they must do so within awareness of the link between environmental health, 60 days of the date they were notified of the internal people’s behaviour and economic decisions. This has review. attracted considerable corporate and philanthropic investment. The PPWCMA has determined that the Authorised Officer for receiving FOI requests is: Carolyn Nicholson, Business Manager PPWCMA Level 1, 454-472 Nepean Hwy Frankston VIC 3199 [email protected] (03) 8781 7900

Port Phillip and Westernport CMA Annual Report 2006/07 39 PPWCMA Culture and Business Management

the establishment of the PPWCMA, as shown in Table 6, KEY PERFORMANCE INDICATORS Figure 3 and Figure 4. The bulk of the revenue is made From the 2006/07 Corporate Plan up of funds from the Australian Government and the ● Annual set of financial statements certified by Victorian Government. However, the PPWCMA is Victorian Auditor General’s Office increasingly focussing on securing additional revenue ● Ongoing core funding secured that enables the from other sources, including the private sector, to PPWCMA to meet its responsibilities under the accelerate implementation of the Regional Catchment Statement of Obligations Strategy and achieve on-ground outcomes. ● Forecast to actual ratio (forecast surplus The core funding secured by the PPWCMA was adequate (deficit)/actual surplus(deficit) within the range to meet the responsibilities outlined in a draft Statement 0.9 – 1.1 of Obligations.

Financial Management The Financial Statements also show that the PPWCMA’s The PPWCMA manages its finances in line with the total expenses were slightly greater than the total Financial Management Compliance Framework of the revenue in 2006/07. In other words, numerous projects Victorian Government. The Financial Statements that had carried through from previous years were included in this Annual Report have been audited by the completed in 2006/07, and many of the projects that Victorian Auditor General’s Office and accepted without were begun in this year were also completed. This is an qualification. indication that the PPWCMA has efficient project management and timely project completion. The PPWCMA remains intent on achieving efficient project The Financial Statements for 2006/07 reveal that total management and expects the ratio of expenditure to revenue has been steady over the past four years since revenue to consistently be at a high level in future years.

2006/07 2005/06 2004/05 2003/04 2002/03* $ $ $ $ $ Revenue from Operating Activities State Government Contributions 1,542,615 1,986,099 1,484,000 1,720,475 1,313,710 Commonwealth Government Contributions 3,959,065 4,391,198 5,015,885 3,623,511 264,756 Other Revenue 660,416 494,251 299,116 308,564 35,759 Total Revenue from Operating Activities 6,162,096 6,871,548 6,799,001 5,652,550 1,614,225

Expenses from Operating Activities 6,510,974 6,240,845 5,409,737 4,579,388 1,234,450

Net Result for the Reporting Period (348,848) 630,703 1,389,264 1,073,162 379,775

Net Cash Flow from Operating Activities (282,689) 759,900 1,297,793 1,259,099 398,941

Total Assets 3,658,733 3,837,764 3,159,996 1,684,147 506,262

Total Liabilities 534,708 364,861 317,796 231,210 126,487

Table 6: Five-year summary of PPWCMA finances from operating activities.

* PPWCMA commenced operation in October 2002.

40 Port Phillip and Westernport CMA Annual Report 2006/07 Figure 3: PPWCMA 4-year financial summary In comparison, the pattern of expenditure of the PPWCMA throughout financial years is generally $ millions 8 steady, as illustrated in Figure 6. In the past 2 years in particular, there has been a consistent level of 6 expenditure spread throughout each year.

Figure 6: Pattern of PPWCMA cumulative expenditure 4 5.65 6.80 5.41 $8,000,000 4.58 6.87 2 6.24 6.16 6.51 0.63 -0.35 1.39 0 1.07 $6,000,000 2003/04 2004/05 2005/06 2006/07 Year -2 $4,000,000 Revenue Expenses Net Results $2,000,000

Figure 4: Sources of PPWCMA revenue $0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN $ millions 8 5.65 6.80 6.87 6.16 2003/04 2004/05 2005/06 2006/07

6

4 The PPWCMA revenue and expenditure in 2006/07 are compared in Figure 7. It illustrates that the revenue was 2 generally received ahead of expenditure which ensured there were no financial management issues. Late in the 0 year, the expenditure was greater than the total revenue 2003/04 2004/05 2005/06 2006/07 but this was anticipated and welcomed as it was due to Year -2 the completion of some projects that had carried Other revenue Australian Government contributions through from previous years. Victorian Government contributions

Figure 7: PPWCMA revenue and expenditure in 2006/07 While the total PPWCMA revenue for the last 4 years has remained relatively steady, the timing of receipt of these $8,000,000 funds has varied from year to year and within each year. This is illustrated in Figure 5 and is due to variations in $6,000,000 the payment cycles of both the Victorian and Australian Governments for these monies. Fluctuations in the timing of payments, particularly any delays in the receipt $4,000,000 of expected funds, creates difficulties both for the PPWCMA and for the proponents of various projects to $2,000,000 which the funds are to be directed. $0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Figure 5: Pattern of PPWCMA cumulative revenue Revenue Expenditure $8,000,000

$6,000,000 Following is the Financial Report of the Port Phillip and $4,000,000 Westernport Catchment Management Authority for the year ended 30 June 2007. $2,000,000

$0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

2003/04 2004/05 2005/06 2006/07

Port Phillip and Westernport CMA Annual Report 2006/07 41 Financial Statements

The following is the Financial Report of the Port Phillip and Westernport Catchment Management Authority for the Year Ended 30 June 2007

42 Port Phillip and Westernport CMA Annual Report 2006/07 Certification of Accounts

We certify that the attached financial statements for the Port Phillip and Westernport Catchment Management Authority have been prepared in accordance with the Financial Management Act 1994.

We further state that, in our opinion, the accompanying financial report comprising Operating Statement, Balance Sheet, Statement of Recognised Income & Expense, Cash Flow Statement, and Notes to the Financial Statements, present fairly the financial transactions during the year ended 30 June 2007 and financial position of the Authority at that date..

We are not aware of any circumstances, which would render any particulars included in the financial statements to be misleading or inaccurate.

Mr Andrew Grant Mr David Buntine Board Chair (from 21 July 2006) Chief Executive Officer Port Phillip and Westernport Port Phillip and Westernport Catchment Management Authority Catchment Management Authority (Chairman) (Accountable Officer)

Ms Carolyn Nicholson Business Manager Port Phillip and Westernport Catchment Management Authority (Chief Finance & Accounting Officer)

Dated 13 September 2007

Port Phillip and Westernport CMA Annual Report 2006/07 43 44 Port Phillip and Westernport CMA Annual Report 2006/07 Port Phillip and Westernport CMA Annual Report 2006/07 45 Financial Statements

OPERATING STATEMENT For the Year Ended 30 June 2007

Note 2006/07 2005/06 $$ Revenue from Continuing Operations

Revenue from Operating Activities 2 State Government Contributions 1,542,615 1,986,099 Commonwealth Government Contributions 3,959,065 4,391,198 Other Contributions 379,451 337,231 5,881,131 6,714,528

Revenue from Non-Operating Activities Interest Revenue 278,410 155,425 Other Revenue 2,555 1,595 280,965 157,020

Total Revenue 6,162,096 6,871,548

Expenses Employee Expenses 1,666,149 1,441,892 Consultants 237,564 36,647 Grant Payments 3,795,676 4,182,742 Supplies and Services 803,885 574,713 Depreciation 7,700 4,851 Total Expenses 6,510,974 6,240,845

NET RESULT FOR THE PERIOD (348,848) 630,703

The accompanying notes form part of these financial statements

46 Port Phillip and Westernport CMA Annual Report 2006/07 BALANCE SHEET As at 30 June 2007

Note 2006/07 2005/06 $$ ASSETS Current Assets Cash and Cash Equivalents 3 3,382,115 3,682,268 Receivables 4 229,691 109,493 Prepayments 4,086 12,925 Total Current Assets 3,615,892 3,804,686

Non-Current Assets Plant and Equipment 5 42,841 33,078 Total Non-Current Assets 42,841 33,078

TOTAL ASSETS 3,658,733 3,837,764

LIABILITIES Current Liabilities Payables 6 300,564 170,739 Employee Benefits 7 190,224 167,012 Total Current Liabilities 490,788 337,751

Non-Current Liabilties Employee Benefits 7 43,920 27,110 Total Non-Current Liabilties 43,920 27,110

TOTAL LIABILITIES 534,708 364,861

NET ASSETS 3,124,025 3,472,903

EQUITY Accumulated Surplus/(Deficit) 8 (a) (9,401) 86,049 Reserves 8 (b) 3,133,426 3,386,854 TOTAL EQUITY 3,124,025 3,472,903

The accompanying notes form part of these financial statements

Port Phillip and Westernport CMA Annual Report 2006/07 47 Financial Statements

STATEMENT OF RECOGNISED INCOME AND EXPENSE For the Year Ended 30 June 2007

2006/07 2005/06 $$

Total equity at the beginning of the year 3,472,903 2,842,200 Net result for the year (348,878) 630,703 Total equity at the end of the year 3,124,025 3,472,903

The accompanying notes form part of these financial statements

48 Port Phillip and Westernport CMA Annual Report 2006/07 CASH FLOW STATEMENT For the Year Ended 30 June 2007

Note 2006/07 2005/06 $$ Cash Flow from Operating Activities

Receipts Government Contributions 5,421,358 6,636,131 Interest Received 280,535 163,145 Other Receipts 431,345 334,659 Total Receipts 6,133,238 7,133,935

Payments Employees (1,609,600) (1,302,609) Suppliers and Other Payments (4,806,328) (5,071,426) Total Payments (6,415,928) (6,374,035)

NET CASH PROVIDED BY OPERATING ACTIVITIES 10 (282,690) 759,900

Cash Flow from Investing Activities

Payments for Plant and Equipment (17,463) (18,205)

NET CASH USED IN INVESTING ACTIVITIES (17,463) (18,205)

Net Increase/(Decrease) in Cash Held (300,153) 741,696

Cash and cash equivalents at the beginning of the Financial Year 3,682,268 2,940,572

CASH AT END OF FINANCIAL YEAR 3 3,382,115 3,682,268

The accompanying notes form part of these financial statements

Port Phillip and Westernport CMA Annual Report 2006/07 49 Financial Statements

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2007

Formation of the Authority

The Port Phillip and Westernport Catchment Management Authority (“the Authority”) was established under the Catchment and Land Protection Act 1994 on 29 October 2002. On that date the Authority acquired all the designated property, rights, liabilities, obligations, powers and functions of the Catchment and Land Protection Board, which was abolished on the constitution of the Authority.

Principal Activities

The principal activities of the Authority are the preparation of a Regional Catchment Strategy, coordinating and monitoring the implementation of the Regional Catchment Strategy, promoting community awareness of natural resource management and the provision of advice to the State Government on matters relating to catchment and land management and protection.

Note 1 - Significant Accounting Policies

(a) Basis of Accounting

General This financial report of the Authority is a general purpose financial report that consists of an Operating Statement, Balance Sheet, Statement of Recognised Income and Expense, Cash Flow Statement and notes accompanying these statements. The general purpose financial report complies with Australian equivalents to International Financial Reporting Standards (A-IFRS), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the requirements of the Financial Management Act 1994 and applicable Ministerial Directions.

This financial report has been prepared on an accrual and going concern basis.

The financial report has also been prepared under the historical cost convention, except where specifically stated in note 1(c).

Accounting policies Unless otherwise stated, all accounting policies applied are consistent with those of the prior year. Where appropriate, comparative figures have been amended to accord with current presentation and disclosure made of material changes to comparatives.

Classification between current and non-current In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be realised or paid. The asset or liability is classified as current if it is expected to be turned over within the next twelve months, being the Authority's operational cycle. Apart from employee benefits provision in note 1(h)(i).

(b) Revenue Recognition Revenue Revenue is brought to account when services have been provided.

Government Contributions Government contributions are recognised as revenue when received.

Interest Interest revenue is recognised as earned on a proportional basis taking into account the interest rates applicable to the financial assets.

50 Port Phillip and Westernport CMA Annual Report 2006/07 Note 1 - Significant Accounting Policies - Continued

(c) Recognition and Measurement of Assets Acquisition The purchase method of accounting is used for all acquisitions of assets regardless of whether equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given, shares issued or liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition.

Assets acquired at no cost or for nominal consideration by the Authority are recognised at fair value at the date of acquisition.

Plant & Equipment Plant and equipment represent non-current assets comprising furniture, equipment, computers and peripherals, used by the Authority in its operations. Items with a cost or value in excess of $1000 and a useful life of more than one year are recognised as an asset.

Repairs and maintenance Routine maintenance, repair costs and minor renewal costs are expensed as incurred. Where the repair relates to the replacement of a component of an asset and the cost exceeds the capitalisation threshold, the cost is capitalised and depreciated.

Impairment of Assets The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

An impairment loss on a revalued asset is recognised directly against any revaluation reserve in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation reserve for that same class of asset.

A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading revaluation reserve. However, to the extent that an impairment loss on the same class of asset was previously recognised in profit or loss, a reversal of that impairment loss is also recognised in profit or loss.

(d) Depreciation and Amortisation of Non-current Assets Plant & equipment are brought to account at cost, less where applicable, any accumulated depreciation or amortisation.

The carrying amount of plant and equipment is reviewed annually to ensure that it is not in excess of the recoverable amount of those assets. The recoverable amount is assessed on the basis of the value of expected benefits, which will be received from the assets' employment and the proceeds from its subsequent disposal. The expected benefits have not been discounted to their present value in determining the recoverable amounts.

The depreciable amount of all plant and equipment is depreciated on a straight line basis over the useful lives of the assets to the Authority commencing from the time the asset is held ready for use. Depreciation rates are reviewed on an annual basis.

The depreciation rates used for each class of depreciable assets are:

Class of Property, Plant & Equipment Depreciation Rate

Furniture and Equipment 10% Straight Line Computers and Peripherals 20% Straight Line

Port Phillip and Westernport CMA Annual Report 2006/07 51 Financial Statements

Note 1 - Significant Accounting Policies - Continued

(e) Cash and Cash Equivalent Assets For the purposes of the Cash Flow Statement, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.

(f) Receivables Trade debtors are carried at amounts due. The collectibility of debts is assessed at balance date and specific provision is made for doubtful debts. A provision is made for doubtful debts based on a review of all outstanding receivables at balance date. Bad debts are written off in the period in which they are recognised.

(g) Payables Liabilities are recognised for amounts payable in the future for goods and services received, whether or not billed to the Authority.

(h) Employee Benefits (i) Employee Benefits Provision is made for the Authority's liability for employee entitlements arising from services rendered by employees to reporting date. Employee entitlements expected to be settled within one year, together with entitlements arising from wages and salaries and annual leave, which will be settled after one year, have been measured at their nominal amount. All long service leave after 7 years and annual leave has been recognised as current.

(ii) Superannuation Contributions are made by the Authority to an employee superannuation fund and are charged as an expense when incurred. The purpose of the contributions are to accumulate assets to meet members' benefits as they arise, the contribution amounts are in accordance with superannuation guarantee contribution guidelines, or at higher rates based upon employment packages negotiated with individual employees.

The amount charged to the Operating Statement in respect of superannuation represents the contributions made by the entity to the superannuation plan in respect to the current services of current Authority staff. Superannuation contributions are made to the plans based on the relevant rules of each plan.

Employee Benefit On-Costs Employee benefit on-costs are recognised and included in employee benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities.

(i) Changes in Accounting Policy The accounting policies are consistent with those of the previous year, unless stated otherwise.

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

Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Balance Sheet.

Cash flows arising from operating activities are disclosed in the Cash Flow Statement on a gross basis i.e. inclusive of GST. The GST component of cashflows arising from investing and financing activities which is recoverable or payable to the taxation authority is classified as operating cash flows.

52 Port Phillip and Westernport CMA Annual Report 2006/07 Note 1 - Significant Accounting Policies - Continued

(k) Comparative amounts Where the presentation or classification of items in the financial report has been amended, comparative amounts were reclassified unless reclassification was impracticable.

(l) Leases Lease payments under operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. The Authority does not have any finance lease arrangements.

(m) Rounding The amounts shown in the financial statements are rounded to the nearest dollar.

Note 2 - Revenue From Operating Activities 2006/07 2005/06 $$ State Government Contributions Department of Sustainability and Environment 1,542,615 1,986,099 1,542,615 1,986,099

Commonwealth Government Contributions Natural Heritage Trust 3,478,665 3,577,628 National Landcare Program 480,400 781,743 Other - 31,827 3,959,065 4,391,198

Other Contributions Local Government and Agency 143,057 151,537 Corporate Sponsorship 123,582 79,890 Program Contributions 112,812 105,804 379,451 337,231

Note 3 – Cash and Cash Equivalent Assets 2006/07 2005/06 $$ Cash at Bank (217,830) 926,953 Petty Cash 200 200 Short Term Deposits* 3,599,745 2,755,115 Total Cash Assets and Cash Equivalent Assets 3,382,115 3,682,268

* The Deposits are bearing floating interest rates between 5.92% & 6.26% (2005/06: 5.48% and 5.59%)

Note 4 - Receivables 2006/07 2005/06 $$ Trade Debtors 195,754 104,366 GST Receivable 25,935 - Security Deposit Paid 5,000 - Accrued Interest 3,002 5,127 Total Receivables 229,691 109,493

Port Phillip and Westernport CMA Annual Report 2006/07 53 Financial Statements

Note 5 - Plant and Equipment 2006/07 2005/06 $$ Plant and Equipment Cost 60,755 43,292 Less accumulated depreciation (17,914) (10,214) Total Plant and Equipment 42,841 33,078 Reconciliation of Plant and Equipment Computers & Furniture & Peripherals Equipment Total $$ $ Opening Balance 1 July 2006 24,712 8,366 33,078 Additions - 17,463 17,463 Disposals - - - Depreciation/Amortisation expense (5,990) (1,710) (7,700) Closing Balance 30 June 2007 18,722 24,119 42,841

Computers & Furniture & Peripherals Equipment Total $$ $ Opening Balance 1 July 2005 12,201 7,523 19,724 Additions 16,205 2,000 18,205 Disposals - - - Depreciation/Amortisation expense (3,694) (1,157) (4,851) Closing Balance 30 June 2006 24,712 8,366 33,078

Note 6 - Payables 2006/07 2005/06 $$ Trade Creditors 155,343 39,221 Funding in Advance 82,500 - Accrued Expenses 21,358 35,980 PAYG Withheld 41,363 24,838 GST payable to the ATO - 70,700 Total Payables 300,564 170,739

Note 7 – Employee Benefits 2006/07 2005/06 Current $$ Annual Leave 132,992 104,119 Long Service Leave 46,637 54,725 Time in Lieu 10,595 8,168 Total Current Employee Benefits 190,224 167,012

Non-Current Long Service Leave 43,920 27,110 Total Non-Current Employee Benefits 43,920 27,110

Total Employee Benefits at Year End 234,144 194,121

Total Employees at Year End 19 18

54 Port Phillip and Westernport CMA Annual Report 2006/07 Note 8 - Equity and Reserves

2006/07 2005/06 8 (a) Accumulated Funds $$ Accumulated Surplus at the Start of the Year 86,049 2,497 Accumulated Surplus transferred (to)/from reserves 253,428 (547,151) Net Result for the Year (348,879) 630,703 Accumulated Surplus at End of Year (9,401) 86,049

2006/07 2005/06 8 (b) Committed Funds Reserve* $$ Committed Funds at the Start of the Year 3,386,854 2,839,704 Net transfers (to)/from accumulated surplus (253,428) 547,150 Committed Funds Reserve at End of Year 3,133,426 3,386,854 * Refer to Note 9 for nature of Committed Funds Reserve

2006/07 2005/06 8 (c) Equity $$ Total Equity at the Start of the Year 3,472,903 2,842,200 Total changes in equity recognised in operating statement (348,878) 630,703 Total Equity at End of Year 3,124,025 3,472,903

Note 9 - Commitments

Capital Commitments

As at 30 June 2007, the Authority had no outstanding capital commitments.

Commitments Against Current Cash Balances

(a) As at 30 June 2007 the Authority had contracted to fund specific catchment management projects (by way of community grants) which were not completed by year end. The unspent funds of $2,025,949 are committed to be expended in the 2007/08 financial year (2005/06: $2,663,850).

((b) In addition to the contracted grants noted above government funds have been received by the Authority on the basis that the Authority will spend these funds on specific project areas. The value of committed specific funds at year end is $402,065 (2005/06: $403,650).

(c) As at 30 June 2007 the Authority also held $234,144 as committed staff benefits (2005/06: $172,511)

Lease Commitments 2006/07 2005/06 As at 30 June 2006 the Authority had $ $ the following operating lease commitments Within one year 199,459 37,838 Later than one year but not later than five years 271,808 - Total Lease Commitments 471,267 37,838

Changes to lease commitments as at 30 June 2007 are due to the leasing of new independent offices for the PPWCMA. Additional lease commitments include leases for IT and office equipment and commercial property. In prior years there were no lease agreements in place other than for motor vehicles.

Port Phillip and Westernport CMA Annual Report 2006/07 55 Financial Statements

Note 10 - Reconciliation of Net Result for the Reporting Period to Net Cash Inflow from Operating Activities

2006/07 2005/06 $$ Net result for the Reporting Period (266,379) 630,703 Depreciation 7,700 4,851

Changes in Assets and Liabilities Decrease/ (Increase) in Receivables (94,263) 81,449 Decrease /(Increase) in Prepayments 8,839 (4,167) Increase /(Decrease) in Creditors and Accruals 21,390 29,457 Increase /(Decrease) in Employee Entitlements 40,024 17,607 Net Cash Inflow from Operating Activities (282,689) 759,900

Note 11 – Financing Arrangements

The authority has no overdraft or other financing facilities. (2005/06 Nil)

Note 12 - Superannuation

The Authority contributes in respect of its employees to the following superannuation schemes:

Scheme Type Rate 2006/07 2005/06 % $ $ A & L Grant Superannuation Fund Accumulation 9 932 - Asgard Superannuation Fund Accumulation 9 420 Australian Retirement Fund Accumulation 9 9,770 Australian Skandia Accumulation 9 5,903 5,564 Australian Super Accumulation 9 11,938 - BT Lifetime Super Accumulation 9 3,969 2,569 Colonial First State Accumulation 9 755 - Equip Super Accumulation 9 400 - Government Superannuation Office Defined Benefits 7.5 - 10.5 6,594 13,370 HESTA Super Fund Accumulation 9 11,809 4,936 SA & V mack Super Fund Accumulation 9 755 - STA Super Accumulation 9 560 UniSuper Ltd Accumulation 9 4,125 720 VicSuper Accumulation 9 49,140 69,573 Vision Super Accumulation 9 10,522 6,860 TOTAL 106,842 114,342

There were no loans from the Superannuation Funds to the Authority during the year. There were no outstanding superannuation contributions as at 30 June 2007.

Note 13 – Responsible Persons Related Disclosure

Responsible Minister The Minister responsible for the Authority during the financial year was the Honourable John Thwaites, Minister for Water, Environment and Climate Change (formerly the Minister for Environment) . The remuneration for the Minister is separately disclosed in the accounts of the Department of Premier and Cabinet.

56 Port Phillip and Westernport CMA Annual Report 2006/07 Note 13 – Responsible Persons Related Disclosure - continued

Accountable Officer The person who held the position of Accountable Officer in the Authority during the financial year was Mr David Buntine (Chief Executive Officer).

Remuneration of Accountable Officer Remuneration received or receivable by the Accountable Officer in connection with the management of the Authority during the financial year was in the range:

$130,000 - $139,999 (2005/06: $140,000 - $149,999)

Board Members The persons who were Board Members at any time during the financial year were:

● Andrew Grant (Chair) ● Duncan McDonell ● Arron Wood ● Victoria Mack (Deputy Chair) ● Andrew Jessop ● Rodney Warren (21 July 2006 to 3 August 2006) ● Kay Spierings ● Bronwyn South ● Michael Ransom (21 July 2006 to 20 October 2006) ● Marcos Anastassiou ● Philip Westwood ● Peter Watkinson (22 September 2006 to 21 October 2006)

All Board Members, unless otherwise noted, were appointed on July 21, 2006 and remain Board Members as at June 30, 2007. There were no Board Members during the period July 1, 2006 and July 20, 2006.

Remuneration of Board Members The number of Board Members whose remuneration from the Authority was within the specified bands is as follows:

$ 2006/07 2005/06 0 – 9,999 8 10 10,000 – 19,999 1 1

Total remuneration received or due and receivable by Board Members from the reporting entity amounted to:

Base $ 79,888 $ 96,000 Superannuation $ 7,190 $ 7,652 Total $ 87,078 $103,652

Loans There were no loans in existence by the Authority to Responsible Persons or related parties at the date of this report.

Port Phillip and Westernport CMA Annual Report 2006/07 57 Financial Statements

Note 14 – Financial Instruments

14 (a) Terms, Conditions and Accounting Policies The Authority’s accounting policies including the terms and conditions of each class of financial asset, financial liability and equity instruments, both recognised and unrecognised at balance date are as follows:

Recognised Financial Instruments Notes Accounting Policies Terms & Conditions (i) Financial Assets Receivables 4 Debtors are carried at the nominal Receivables include sundry debtors and amounts due less any provision for are expected to be recovered within 90 doubtful debts. A doubtful debt provision days. The amounts do not earn interest. is made for any amounts that are considered unlikely to be collectable. Investments 3 Short term deposits are carried at Short term deposits have an average their principal amounts. Interest maturity of 30 days from the end of the revenue is recognised in the Operating financial year and effective interest Statement when it is earned. rates from 5.92% to 6.26%. Cash 3 Cash is stated at its nominal amount. The Authority does not have an overdraft Surplus Authority funds are held in facility. Interest being earned on cash short term deposits. deposits was between 4.5% & 5.25%. (ii) Financial Liabilities Accounts Payable 6 Creditors and accruals are recognised Settlement of creditors is normally for future amounts to be paid in respect effected within a 30 day period. of goods and services received, whether or not billed to the Authority.

14 (b) Interest Rate Risk

The Authority’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at the balance date, are as follows:

Financial Floating Interest Fixed Interest Non-Interest Total Instruments Rate Risk Rate Risk Bearing Risk

2006/07 2005/06 2006/07 2005/06 2006/07 2005/06 2006/07 2005/06 $$$$ $$$$ (i) Financial Assets Cash Assets (217,830) 926,953 3,599,745 2,755,115 200 200 3,382,115 3,682,268 Receivables 229,691 109,493 229,691 109,493 (ii) Financial Liabilities Payables 300,564 170,739 300,564 170,739 Weighted average 4.88% 4.35% 6.15% 5.52% interest rate

The Authority's exposure to interest rate risk would mainly arise from any financial assets and financial liabilities which are held to maturity and bear variable interest rates as their values will fluctuate according to changes in market rates.

58 Port Phillip and Westernport CMA Annual Report 2006/07 Note 14 – Financial Instruments - Continued

14 (c) Net Fair Values

Cash, Receivables, Investments and Accounts Payable. These financial instruments have a short-term maturity. Accordingly, it is considered that carrying amounts reflect fair values.

14 (d) Credit Risk Exposure

The Authority's maximum exposure to credit risk at balance date for each class of recognised financial assets, other than cash and receivables, is the carrying amount of those assets as disclosed in the Balance Sheet.

The majority of debtors comprises of corporate sponsors which were invoiced in June and as such carry a very low exposure to risk.

Note 15 - Remuneration of Auditors 2006/07 2005/06 Amounts paid or payable to the Victorian $ $ Auditor General's Office for the audit of the Authority's financial statements. 4,400 4,200

Note 16 - Contingent Liabilities and Assets

As at 30 June 2007 the Authority had no contingent liabilities and contingent assets. (2005/06: Nil)

Note 17 - Subsequent Events

The Authority is not aware of any events that have occurred since balance date, which would impact on the financial statements. (2005/06: Nil)

Port Phillip and Westernport CMA Annual Report 2006/07 59 Disclosure Index

The Annual Report of the Port Phillip and Westernport Catchment Management Authority is prepared in accordance with the Victorian Financial Reporting Directions (FRD), statutory disclosure requirements and all relevant Victorian legislation.

This index has been prepared to facilitate identification of the PPWCMA’s compliance with these requirements.

FRD Requirements Page

22B Manner of establishment and the relevant Ministers 8 22B Objectives, functions, powers and duties 11 22B Nature and range of services provided 12 22B Organisational structure, names and functional areas of responsibility of senior officers 10 22B Names of board members and major committees 9, 36 22B Statement of workforce data for current and previous financial year 11, 38 22B Statement of merit and equity 38 15B Executive Officer disclosures 57 22B 5 year summary of the financial results 40 22B Significant changes in financial position during the year Nil 22B Objectives and performance against objectives 13-41 22B Major changes or factors affecting performance Nil 22B Subsequent events which will affect operations in future years 59 22B Details of consultancies > $100,000 39 22B Details of consultancies - total No. and cost < $100,000 39 12A Disclosure of major contracts 39 22B Application and operation of FOI Act 1982 39 22B Application and operation of the Whistleblowers Protection Act 2001 38 22B Compliance with building and maintenance provisions of Building Act 1993 38 22B Statement on National Competition Policy 39 22B Occupational Health and Safety 38 10 Disclosure index 60 22B Statement of availability of other information 2, 39

60 Port Phillip and Westernport CMA Annual Report 2006/07 PORT PHILLIP AND WESTERNPORT CATCHMENT MANAGEMENT AUTHORITY Level 1, Landmark Corporate Centre 454-472 Nepean Highway FRANKSTON VIC 3199 Phone: (03) 8781 7900 Fax: (03) 9781 0199 Website: www.ppwcma.vic.gov.au