TRUST for NATURE annual report 2010-11 Published by Trust for Nature (Victoria), Melbourne, September 2011. This report is printed on paper manufactured using pulp sourced from 100% sustainable plantations using vegetable-based inks. Trust for Nature (Victoria) 5/379 Collins Street An electronic copy of this document is available on-line at Melbourne, VIC 3000 Australia www.trustfornature.org.au
Phone: (03) 8631 5888 Acknowledgements Fax: (03) 9614 6999 Trust for Nature gratefully acknowledges all the photographers who have provided Freecall: 1800 99 99 33 (Australia only) images for this document including Debbie Reynolds for the image of a Mallee fowl on the front cover, and Darroch Donald for the image on the inside front cover. Email: [email protected] www.trustfornature.org.au
© State of Victoria, Trust for Nature 2011.
This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.
ISSN: 1838-9732 TRUST for NATURE 2010-11
Major achievements
112 conservation covenants registered
1000th conservation covenant registered
5,383ha of Victoria protected through conservation covenants
166ha of native grassland purchased on the Avoca Plains adding to a protected network of nearly 4,000ha
730ha covenanted on the Gippsland Plains, including 158ha of endangered Plains Grassland
150ML of environmental water pumped into a wetlands at Neds Corner Station as part of The Living Murray’s environmental water allocation for the Chowilla Floodplain and Lindsay-Wallpolla Islands icon site
First offset conservation covenant registered through the Native Vegetation Credit Register
Table of Contents
Message from the Chairman and Chief Executive Officer...... 4 About us...... 5 2010 - 2011 Key approaches to conserving Victoria...... 6 Key conservation achievements...... 11 Conservation support...... 15 Victorian Conservation Trust Act Objectives...... 16 Partners...... 20 Major donors...... 22 Finance and business...... 23 Our people...... 24 Our organisation...... 26 Organisational chart...... 27 Community engagement achievements...... 28 Statutory compliance...... 29 Disclosure index...... 31 Appendix 1...... 81 TRUST for NATURE 2010-11
Message from the Chairman and Chief Executive Officer
Private land conservation is our area of expertise. We have made The conservation covenant has proved to be an instrument of choice for tremendous progress in the preservation of private land across Victoria some developers and landowners to secure offset protection. We strive for the protection of important habitat during 2010 - 11. Trust for Nature to support landowners to optimise conservation. is a well-established organisation and next year, 2012, will see our At a national level, the Trust co-formed the Conservation Land Trust’s 40th anniversary. But this year we are also celebrating an important Alliance this year – a national conservation body that will work across the achievement. country to help improve the effectiveness of all private land conservation Across Victoria, more than 1000 landowners have protected their bodies. Six states are now partners to the Alliance. To support the properties, forever. We are proud to mark this important milestone and Alliance and our work in Victoria, Trust for Nature will continue to work our 1000th covenant celebrations to thank our covenantors have been with both state governments and the Australian Government to influence a huge success. In partnership with private landowners, Trust for Nature policies that impact on private land conservation. now protects over 45,000ha of significant native habitat in Victoria. Who we work with and how we work is important for the Trust. Our We acknowledge that it is no small undertaking to protect a property partnerships are at the core of what we do. This year we have for conservation and strongly commend these landowners for their established projects with partners such as Birds Australia, mecu commitment to the environment. and the Victorian and Australian Governments. Working with these For many years the Trust has aimed to build its financial resources and organisations means the Trust is able to reach a wider audience reserves. This year the Board took the decision to invest resources in and deliver a more effective private land conservation program. This strengthening the delivery of its operations and its services. As a result, is highlighted in our work to build private and philanthropic sector this year the Trust recorded the highest number of new conservation investment and commitment to conservation. Our donors and covenants in its entire history. We registered 112 new conservation supporters are integral to what we do. We’d sincerely like to thank all of covenants, up from 38 last year, and protected 5,838ha, up from those who have contributed to the Trust over the last 12 months. 926ha last year. This is testament to the dedication and hard work Trust for Nature has continued to grow and improve its delivery of of our staff in the regions, and our committed new covenanting team services to landowners and our partners. This financial year we have based in Melbourne. improved our human resources, finance and administration processes. This financial year also saw the review and development of a number The Trust negotiated and moved into a larger office space in 2011, of organisational policies and procedures. Our broad and highly skilled which has enabled us to take stock of where we have come from, Board has helped us with this task and we thank them for their ongoing where we are now and what we want to achieve over the next five years. contribution. In addition, the Trust undertook an organisation-wide Our future is expanding and so is our work. We want to reach new process of considering its future strategic direction and developed a audiences and one of our key areas of focus over the next five years five-year strategic plan. It will provide the basis for the Trust’s protection is to reconnect more Victorians with nature. We will work to engage programs to deliver effective services whilst responding to the changing with youth and Indigenous groups and share our knowledge. We ways in which landowners work to manage their land for conservation. will strengthen our connections with farmers and large agricultural It will start guiding our work from the next financial year. landowners in Victoria. Trust for Nature has made major advancements in the protection of Our covenantors are a key part of this process. We hope their three key threatened habitats in Victoria – grasslands, woodlands inspiration to protect their properties forever will ignite the vision of other and wetlands, this financial year. Our landscape-scale approach has private landowners to protect the natural assets on their land and benefit increasingly focused on the conservation and management of land from the services Trust for Nature has to offer. that reconnects these habitats and our land purchase has contributed to Australia’s National Reserve System. The Trust continues to work In accordance with the Financial Management Act 1994, we are collaboratively with other organisations and in alignment with national, pleased to present the Trust for Nature Annual Report for the year State and regional conservation priorities to achieve better long-term ending 30 June 2011. outcomes for native plants and wildlife.
This year we continued to build innovation into private land conservation practice. Our stewardship program provides ongoing support to landowners, and in addition to assisting landowners to access tax and rate concessions, we are participating in the new and emerging eco-markets and incentive-based programs. This financial year we established 22 offset covenants which were registered through Victoria Marles Camilla Graves Victoria’s Native Vegetation Credit Register, and we continue to develop Chief Executive Officer Chairman and understand the requirements of this service. Date: 1 September 2011
4 www.trustfornature.org.au TRUST for NATURE 2010-11
About us
Vision and purpose GOALS To address its vision and purpose, Trust for Nature has had five goals for Trust for Nature’s Board of Trustees and staff are working toward driving private nature conservation and operational excellence: the vision of conserving all significant natural areas on private land forever. To achieve this vision, the purpose of Trust for Nature is to • maximise the biodiversity outcomes of nature conservation actions create solutions that protect, manage and conserve the biological • protect and manage land for biodiversity diversity (biodiversity) of native plants and wildlife through private land • achieve growth and excellence in its business conservation. • encourage investment in nature conservation VALUES • capture new opportunities for achieving biodiversity gains. Trust for Nature’s Board and staff have high expectations of themselves SERVICES and those they work with in fulfilling the organisation’s vision and Trust for Nature engages with private landowners protecting native purpose. The culture of Trust for Nature is one of inspiration, leadership, vegetation through a range of services and initiatives. Its core business collaboration and respect. centres on the following: Inspiration Trust for Nature staff, supporters, volunteers and covenantors are Conservation covenants. The Trust provides the legal and technical inspired by their commitment to protect and improve our environment. resources necessary for the registration of conservation covenants on Trust for Nature seeks to inspire and motivate people to take action to private land. safeguard Victoria’s natural heritage. Land stewardship. The Trust provides habitat assessment, Leadership management advice, support and monitoring of conservation-value land Trust for Nature staff continue to build on their knowledge, experience to private landowners. and skills. With its drive for innovative solutions, Trust for Nature will Environmental markets. The Trust engages in emerging markets for strive to maintain its national leadership in private land conservation native vegetation offsets and carbon offsets to protect and enhance policy, programs and projects. land of high conservation value. Collaboration Revolving Fund. Trust for Nature’s Revolving Fund enables us to Trust for Nature depends on you. Individuals, groups, corporate purchase, protect and on-sell private land, with the aim of increasing businesses and governments must work together for positive conservation outcomes. environmental management and conservation. Respect Trust properties. The Trust owns and manages land for conservation Everyone matters and deserves to be treated fairly. Trust for Nature purposes. is objective, responsive and inclusive – applying equity, diversity and Projects, activities and fundraising. The Trust advances private confidentiality to all its dealings. nature conservation through its capacity to receive gifts or bequests, and through fundraising activities. STRATEGIC DIRECTION 2010 - 11 Trust for Nature will accelerate private land conservation through strategic actions that have a conservation impact at a landscape-scale. This will be achieved through smart application of our covenanting and revolving fund tools and by building our capacity to help others to take action on conservation. The ecosystems in urgent need of conservation in Victoria are grasslands, grassy woodlands and wetlands.
Annual Report 2010-11 5 TRUST for NATURE 2010-11
2010 - 2011 Key approaches to conserving Victoria
Manner of establishment and the relevant Trust for Nature services Ministers Covenant program Trust for Nature (Victoria) was established as a body corporate under the The objective of Trust for Nature's voluntary conservation covenant Victorian Conservation Trust Act 1972. According to the Act, the objects program is to protect significant areas of native vegetation in private of the Trust are that it shall: ownership across Victoria. • For public scientific and public educational purposes encourage and assist in: Trust for Nature negotiates covenants with landowners through a network of regional offices, based in each of the 10 Catchment Management • The preservation of areas which are: Authority (CMA) regions of Victoria. Our 10 regional managers are assisted • ecologically significant; by stewardship officers, who manage Trust for Nature's stewardship • of natural interest or beauty; or program at the regional level. Our covenanting program is supported • of historical interest. either directly or indirectly through service-level agreements with individual • The conservation of wildlife and native plants; and CMAs, and through the Victorian Government's Natural Resource • The conservation and creation of areas for scientific study Investment Program (NRIP) and the Commonwealth Government’s Caring relating to the above. for our Country Initiative (CfoC). • Encourage and assist in the conservation and creation of areas of As at 30 June 2011, there were 1088 conservation covenants in place, natural beauty or interest for use by the public for the purposes of protecting 45,848ha of Victoria. We registered 112 new covenants during enjoyment, recreation and education. the year (the most in Trust for Nature’s history), which protect 5,838ha of The responsible Ministers during the 2010-11 reporting period were the State. Gavin Jennings, MLC, Minister for Environment and Climate Change The 112 conservation covenants registered this year comprise: for the period from 1 July 2010 to 1 December 2010, and Ryan Smith, MP, Minister for Environment and Climate Change for the period from 2 • 2 Revolving Fund covenants December 2010 to 30 June 2011. • 22 Offset covenants (Native Vegetation Offset or Environmental Offset) In 1979 Trust for Nature was given the statutory power to enter into • 1 Other commercial covenants (associated with planning permit legally-binding voluntary covenants with landowners. Covenants application or desire for marketing opportunity) enshrine conservation values on property titles in perpetuity, limiting and/ or prohibiting property rights that may otherwise compromise the values • 11 Incentive covenants (Bush Tender, Eco Tender, Catchment Tender, Habitat Tender) being protected. • 76 Voluntary covenants (voluntary request from a landowner). Trust for Nature facilitates and negotiates conservation covenants with landowners through the work of regional staff. These staff, through the Regional staff visited 143 properties and assessed them for covenanting Trust's stewardship program, also help landowners develop plans to (compared with 114 in 2009 - 10). There is a variability from year to year better manage and monitor habitat on their covenanted properties. In in covenanting activity and outcomes (number and area). In addition to addition, Trust for Nature's Revolving Fund allows the organisation to the factor of staff resources, this variability is due to the changing priorities purchase properties of high conservation value and then sell them with of our funders and the availability of incentives to support landowners to a covenant attached to buyers with a commitment to conservation. covenant their properties. The Trust also has a portfolio of properties which it manages directly for Trust for Nature targets its covenant program towards the conservation conservation. of threatened ecosystems - particularly where there are opportunities for Through its activities the Trust provides secure protection for many landscape-scale conservation - working in alignment with conservation rapidly disappearing native plants and wildlife. With the majority of Trust priorities established by the CMAs, the State Government and the for Nature's staff based in regional Victoria, the organisation will continue Australian Government. In the reporting period we worked across many a strong tradition of finding on-the-ground solutions to conserve and landscapes in partnership with farmers, private landowners, volunteers, improve private land that supports significant habitat. government and many others to help protect highly threatened woodlands, grasslands, wetlands and waterways, thus helping to build habitat resilience and connectivity.
6 www.trustfornature.org.au Stewardship program Governor visits the Trust’s largest covenant The objective of Trust for Nature's stewardship program is to work cooperatively with landowners to ensure that all areas of significant In November 2010, the then Governor, Professor David de Kretser, habitat covenanted by the Trust are managed to maintain and requested a visit to Dockers Plains landscape-scale covenant, as enhance their conservation value and reduce threats. The stewardship a part of a tour of north-east Victoria. Dockers Plains is the largest covenanted property in Victoria and has been in the same family program represents a key contribution by the Trust towards the State for over 170 years. It is a 3,435ha working farm with a conservation Government’s biodiversity priorities of maintaining and enhancing native covenant over 1,000ha of the farm. The owners have put in place vegetation and threatened species populations, and monitoring and a range of environmental works to protect and enhance the River building on-ground capability and capacity. Red Gum Woodland and Riverine Grassy Woodland and have Meeting the objective involves working directly with landowners turned Dockers Plains into a model of a sustainable farm with environmental protection. to provide advice on management issues, address threats to the conservation values, and monitor the condition and trend of habitat and species populations of covenanted properties. This is achieved through Both the Trust’s covenant program and the stewardship program a program of property visits and contact with landowners of covenanted (see below) have adapted and developed over the last 12 months properties. Trust for Nature currently has a goal to visit each covenanted in response to changes in the external environment. Covenanting is property at least once every three years. During each visit, the condition becoming an increasingly complex exercise. For example, landowners of the property is assessed, along with any threats. A management plan are able to select from a variety of ways to contribute to environmental is then developed, or reviewed, in conjunction with the landowner. outcomes including the use of covenants for ecological tender In 2010 – 11, Trust for Nature staff carried out 211 property visits programs and biodiversity offsets. During the year we completed a and prepared 144 property management plans, in partnership and review of the policies relating to our covenanting and stewardship collaboratively with landowners (see Table 2). programs to ensure their currency. This will help to streamline the administration of our state-wide programs. In addition to property visits and management plans, the Trust provides practical information and resources through fact sheets, website Table 1: Conservation covenants registered and area protected updates and advice on where to find further information. *Registered Registered *Registered covenants in covenants in covenant total Stewardship communication 2010 - 11 2009 - 10 (1986-2011) This year the Trust initiated a stewardship communication project Total 112 38 1,088 to produce additional information resources for landowners, which Area protected in Area protected in Total area will support our stewardship program. The resources will provide 2010 - 11 (ha) 2009 - 10 (ha) protected (ha) specific information about the stewardship program, meeting the (1986-2011) requirements of a conservation covenant and general assistance Total 5,838 926 45,848 with ecological management techniques. The Trust’s website was upgraded this year and we have created a section on landowner * Covenant statistics may fluctuate due to land title changes, approved management and advice. We now use the website to provide covenant amendments and work areas. regular news and updates to covenantors and others interested in Historically, the Trust has on average completed 60 new covenants private land conservation. Through our website we aim to increase each financial year. Over the past four years the annual total of new our ability to help landowners to manage their properties for conservation. covenants has reduced from 96 in 2006 - 07 to 38 in 2009 - 10. A number of factors have contributed to this reduction, such as: the increasing complexity in the covenant negotiation process; changes in funding priorities; and internal organisational resource changes. In 2010 -11 the Trust registered 112 covenants. This was a significant increase on previous years, the key factor being staff resources.
Annual Report 2010-11 7 TRUST for NATURE 2010-11
2010 - 2011 Key Approaches to conserving Victoria Continued
Throughout the year, our staff participated in a number of field days, During the year the Trust initiated a review of its stewardship approach workshops and courses, both in Melbourne and in the regions. to identify ways in which support can be provided effectively to the increasing number of covenantors. A draft strategy has been developed Our community engagement work highlights have included: and will be completed in the next financial year. The stewardship team • participation in over 30 field days also began a review of the management plan template and monitoring • an Environmental Expo in Castlemaine to celebrate World and recording processes. These changes will be implemented in 2011 Environment Day - 12. • 12 Spring into Nature events Table 2: Stewardship outcomes • contribution to and involvement in the Lake Bolac Eel Festival (see below) 2010 - 11 2009 - 10 • support of and participation in the Mount Elephant Management Stewardship visits 211 200 Committee 10-year celebrations. Management plans prepared 144 118
Community around the Lake Environmental markets An environment and music festival is held each year at Lake The objective of Trust for Nature's engagement in environmental markets Bolac in the Glenelg Hopkins region.. The Lake Bolac Eel Festival is to ensure conservation benefits flow from permitted vegetation started in 2005 and attracts around 1000 visitors and this year and habitat loss to secure strategic outcomes in native vegetation Trust for Nature was a major sponsor. Our Grassy Eco-systems management. Coordinator spoke at the grassland forum about the biodiversity of indigenous grasslands. In addition the Trust had a stall to share Trust for Nature is engaged in the native vegetation offset market as information about grassland conservation on private land. Lake one of the three mechanisms for securing the permanent protection Bolac and its surrounding waterways and wetlands was once a of an offset site in Victoria. The Trust has developed a program for flourishing ecosystem, home to a plethora of native plants and matching a proponent's requirement to offset loss of native vegetation wildlife, including the short-finned eels that were a food source or habitat with landowners willing to protect and enhance land of high for the land’s Traditional Owners. The Trust is a part of this local conservation value. The aim of the program is to generate conservation community and recognises the success of the Lake Bolac Eel benefits beyond the documented regulatory requirements-for example, Festival in raising awareness and inspiring people to act. by protecting strategically important habitat, focusing on landowners committed to the long term enhancement of native vegetation quality, The stewardship program also focuses on identifying opportunities to and extending protection through covenant to productive landscapes support landowners to undertake conservation works on covenanted not yet adequately reserved. The offset program operates in both State properties. The support might be in the form of direct cash payments, and Federal jurisdictions, identifying high-quality native vegetation and rate concessions, tax concessions or ecological tender schemes. habitat for threatened species and communities. These can be used to improve or enhance habitat values through In 2010 - 11, Trust for Nature registered 22 native vegetation offset revegetation, control of threats such as feral animals or implementing covenants with a further nine offsets agreed (see Table 3). more long-term strategies to improve or protect threatened species. Trust for Nature continues to assess its role in the emerging carbon The Trust provides support to covenantors during natural events such as offset market. We aim to increase our expertise and resources to locust outbreaks, floods and fire. In 2010 - 11, large parts of the State facilitate offset trades over the next twelve months. New and developing were affected by locust plague and floods. Advice and guidance was legislation in this area is likely to provide opportunities to further provided to covenantors in affected areas on how to best deal with the conservation on private land. impacts to the conservation values of their properties, including where they could access appropriate technical, legal and financial assistance.
8 www.trustfornature.org.au Trust for Nature has been developing its role in environment markets, The concept of the Revolving Fund is to provide a cost-efficient way in particular in the Native Vegetation Offset market. This has involved to achieve conservation outcomes. By focusing on properties with building our capacity to provide services as well as establishing our role strong conservation and market values, the Fund aims to replenish the within the regulatory framework. In 2009 - 10, the Trust successfully initial investment through the sale of land. In this way it continues to engaged with market participants to facilitate agreements for native achieve biodiversity outcomes while maintaining and even increasing its vegetation protection. capital. It can target the protection of native vegetation in areas where other methods are less effective, and introduce new participants to Table 3: Offset covenants registered conservation through land protection.
2010 - 11 2009 - 10 Trust for Nature has operated the Revolving Fund since 2000. In 2010 Offset covenants registered 22 0 - 11, our Revolving Fund purchased one property totalling 3.34ha and Protection: sold one property totalling 687ha. Since its inception, the Fund has Native vegetation (habitat hectares)2 117 0 purchased 55 properties, protecting 5,735ha of conservation land. As of the 30 June 2011, the Revolving Fund comprised $2,573,795 in Large old trees2 101 0 cash and eight properties valued at a total of $1,726,491 (table 4). Habitat (hectares)3 25 0 Table 4: Revolving Fund statistics Offset agreements completed4 9 18 Protection: 2010 - 11 2009 - 10 Native vegetation (habitat hectares)2 28 97 Properties sold 1 property, 2 properties, Large old trees2 90 139 total 687ha, total 80ha, value $150,000 value $424,000 Habitat (hectares) 3 9 27 Properties bought 1 property, 3 properties, 1 In addition, two properties were purchased and transferred to the Crown total 3.34ha total 336ha for offset purposes. Donations/ $850,000 $160,000 2 Approved through State legislation. 3 Approved through federal legislation. transfers in 4 Refers to agreements reached preceding covenant registration. Properties retained 8 properties, 7 properties, value $1,726,491 value $1,191,828 Revolving Fund Cash $2,573,795 $2,219,567 The objective of Trust for Nature's Revolving Fund is to use the real Total value of $4,300,286 $3,351,438 estate market to achieve conservation outcomes. Revolving Fund
As such the Fund is a market- based instrument. It matches the supply provided by the owners of private properties of high nature-conservation Trust properties value with demand from that section of the community that wishes to Trust for Nature has a long history of protecting land with significant purchase and protect these values. environmental values through land purchase and ownership of properties (excluding the Revolving Fund). Property purchase and The Revolving Fund operates in a manner where Trust for Nature: ownership is typically supported by external funding for both the capital • identifies and purchases properties of high nature-conservation and operational needs of the land. The Trust may subsequently transfer value land to the Crown. The property program provides opportunities for • undertakes conservation or restoration works on the property when people and organisations to financially support conservation directly necessary through land purchase. It also provides opportunities for individuals • sells the property to conservation-minded buyers with a condition to to support the maintenance and improvement of native vegetation by enter into a conservation covenant on the land volunteering on Trust properties through friends groups and committees • registers a conservation covenant on the title of the property of management. We thank these volunteers for their ongoing support.
• assists new owners with accessing expert advice and support Trust for Nature continues to manage a significant portfolio of land. The • returns sale proceeds to replenish the Revolving Fund. Trust has 47 properties covering 34,506ha of the State of Victoria. Two properties totalling 595ha were added to the Trust’s portfolio in 2010 - 11 (Budgerum and Gobur), thanks to the support of a private donation and the Australian Government.
Annual Report 2010-11 9 TRUST for NATURE 2010-11
2010 - 2011 Key Approaches to conserving Victoria Continued
Our property partnership A wombat noses its way into Victoria Trust for Nature has worked over time with the Australian In May 2011, Neds Corner Station Manager, Peter Barnes, made the Government through its National Reserve System program first sighting of a Southern Hairy-nosed Wombat (Lasiorhinus latifrons) (NRS). The NRS has supported the Trust in the purchase of eight in Victoria. The Victorian Department of Sustainability and Environment properties over a number of years, to establish a network of (DSE) confirmed that there are no records of the species ever being protected areas in critically threatened landscapes, including the found in Victoria. While it is not known how the wombat arrived at grassland and woodland communities of the Victorian Riverina and Neds Corner Station, there is plenty of native vegetation and food for the grassy woodlands around Perry River in Gippsland. the wombat as the property is in such good condition thanks to the ongoing conservation management works and the recent rains.
In 2010 - 11, funding from the NRS and a private donor enabled Trust for Nature to secure two contiguous properties in the fragmented As a responsible land manager, the Trust must focus on personal safety landscape of the Northern Plains. These properties are of exceptional and asset protection on its properties. This extends to the safety of staff size, quality and location. They are a core part of a network of and wider members of the public such as visitors, volunteer workers and covenanted and public land that maintains habitat for a wide range of contractors. In 2010 - 11, the Trust appointed an Occupational Health threatened species, including the Plains-wanderer (see ‘An addition to and Safety specialist to review our Occupational Health and Safety our native grasslands’, page 11). policies, procedures and practices (for more about our Occupational Health and Safety activities, see ‘Statutory compliance’ on page 29). In addition to protecting and managing land, another objective of our property purchases includes transfer of land to the State of Victoria. This year, the Trust, as a landowner and manager, was required to deal These properties will form part of the protected areas network such as with two significant natural events-floods and Australian Plague Locust National Parks and Nature Conservation Reserves. Seven properties outbreaks. In both these cases, the Trust ensured that issues of staff totalling 1,682ha were transferred to the Crown in 2010 - 11, bringing safety, hygiene and protection of the environment were fully addressed. the total transfers (since the Trust’s inception) to 68 properties comprising For information on our management of the Australian Plague Locust 6,243ha of Victoria. outbreak see ‘Ecological management and trials’ on page 13.
At 29,816ha, the iconic property Neds Corner Station, owned by the A wildfire risk and mitigation strategy was prepared in 2010 allowing the Trust, is the largest freehold conservation property in Victoria. It is located Trust to continue to identify steps to be taken on properties identified as in the north-west corner of Victoria, adjacent to Murray Sunset National having a high wildfire risk. Our fire planning, and the implementation of risk Park, and has 35km of Murray River Crown frontage. The land provides mitigation works, will continue to be an important part of our future reserve the Trust with a unique opportunity to restore the significant biodiversity management responsibilities. values of the area through public and private partnerships. A small team of rangers and support staff have carried out a range of improvement works on the property. They have now achieved rabbit-free status over most of the land and revegetated the threatened semi-arid Woodland ecological community. The Trust has established a range of successful philanthropic and organisational partnerships at Neds Corner Station including the Mallee Catchment Management Authority.
10 www.trustfornature.org.au TRUST for NATURE 2010-11
Key conservation achievements
The past year has seen an increase in Trust for Nature’s activities. While Grassland. This covenant also helps to secure a significant population the covenanting and stewardship programs continue to represent the of the nationally endangered Yawning Leek-orchid. core work of Trust for Nature, there are a number of other activities through which the Trust advances the conservation of significant Woodlands protection habitats, ecosystems and threatened species populations on private Trust for Nature’s woodlands conservation program was delivered in land. Listed below are some of the highlights of the year’s work, much 2010 - 11 through a range of regional and state-wide projects. The of which we owe to continuing partnerships with all levels of government, Woodland Birds for Biodiversity project (CfoC funded) was completed a number of non-government organisations, and philanthropic in partnership with Birds Australia, the NSW Nature Conservation Trust foundations and donors. and the Tasmanian Land Conservancy. As part of this project, Trust for Nature secured two large conservation covenants in the Wimmera and Protection North Central regions that protect 340ha of priority woodland habitat Grasslands protection and help to conserve populations of the threatened Grey-crowned Babbler, Diamond Firetail and Barking Owl. The Trust also worked Trust for Nature’s grassland conservation program continued in 2010 with the community group, Friends of the Grey-crowned Babbler, to - 11, culminating in the purchase of a new 166ha native grassland revegetate private land sites for this endangered bird. property on the Avoca Plains. This was made possible with funding support from the Australian Government’s National Reserve System In north-eastern Victoria, Trust for Nature completed the Threatened program and the Barbara Salter Bequest (see ‘The Barbara Salter Box-Gum Grassy Woodland project (CfoC funded), which included Bequest’ on page 15). This new reserve provides known habitat for the permanent protection of five sites under covenant and 205ha of four nationally threatened species of plants and animals, including the land. Through the donation of a property by the Shaw family, the Trust Plains-wanderer a small native bird, and a further 10 species of plants also secured an important new Box-Gum Grassy Woodland reserve threatened in Victoria. near Gobur to help protect this threatened community as well as the nationally threatened Striped Legless-Lizard.
In the Wimmera, Trust for Nature with mecu, Kowree Farm Tree Group An addition to our native grasslands and Grampians to Little Desert Biolink began the implementation Trust for Nature recently purchased a new property that adjoins of a three-year Buloke Woodlands protection and connectivity the southern boundary of the Trust’s existing grassland reserve- project (CfoC funded). This has included mapping of priority sites Wanderers Plain. This purchase effectively joins Budgerum to target for protection or restoration across more than 80,000ha of grassland (a Revolving Fund property) with Wanderers Plain. It contains the largest stand of Buloke Woodland included in the land; organisation of four cross-property workshops between local Victorian Riverine Plain National Reserve System. The property has landowners; and the negotiation of permanent protection over more particular significance in a Victorian context, as properties of this than 500ha of woodland habitat. size and high conservation value are extremely rare in the Riverina On the Gippsland Plains, the ‘Protecting Woodlands and Derived bioregion. The property will significantly increase the security of the Native Grasslands in the Macalister Landscape Zone – Stage 2’ project remaining extent of native grassland in the Victorian Riverina, as well (CfoC funded) was delivered by the Trust’s West and East Gippsland as more than double the protected area of the nationally threatened Buloke Woodlands of the Murray Darling Depression. Together regions. This was done in partnership with the West Gippsland CMA, with Wanderers Plain, the property will help to protect a connected Greening Australia (Victoria) and Wellington Shire Council. Significant network of nearly 4,000ha of grasslands, woodlands and wetlands achievements include the successful negotiation of covenants across on the Avoca Plains in conjunction with the nearby Bael Bael Nature 658ha of native vegetation, including areas of endangered Plains Conservation Reserve acquired by the Victorian Department of Grassy Woodland and associated grassland and wetland habitats. The Sustainability and Environment (DSE). Trust’s East and West Gippsland officers often work in partnership as they help to negotiate covenants across the region.
The Australian Government’s Caring for our Country Initiative (CfoC), in 2010 – 11, contributed additional support to the grasslands program Back from the Brink to help the Trust prepare a conservation strategy and management In East Gippsland, Trust for Nature staff have worked with numerous guidelines for grasslands and other ecosystems in the Riverina partner organisations and landowners to carry out works in the bioregion. This project will be completed in 2011 - 12. nationally endangered White Box Woodlands. On more than 300ha On the Victorian Volcanic Plains, Trust for Nature negotiated two of covenanted land, partners carried out direct seeding, weed control, planting, blackberry control and conducted a horehound new conservation covenants which will protect more than 130ha of control trial. This is all part of the Back from the Brink project funded native grassland habitat. On the Gippsland Plains, Trust for Nature, in by CfoC. partnership with the Australian Landscape Trust, secured a conservation covenant over 730ha that included 158ha of endangered Plains
Annual Report 2010-11 11 TRUST for NATURE 2010-11
Key conservation achievements Continued
Elsewhere in the State, the Trust contributed to woodlands conservation as part of a range of other woodland projects, including Connecting Victorian Volcanic Plains CMN – a wealth of information Country in north-central Victoria; the Stony Rises Woodland Recovery project in the Corangamite CMA region, and various Conservation The Victorian Volcanic Plains Conservation Management Network website www.vvpcmn.org provides a wealth of information for Management Network (CMN) projects (see below). covenantors and other interested landowners looking to protect grasslands on Victoria’s Volcanic Plain. Trust for Nature provided Wetlands protection ongoing support to the management of this website during the year. A past donation by the Victorian Wetlands Trust enabled Trust for Nature to implement a targeted wetlands conservation program in western Victoria in 2010 - 11, with a particular focus on the threatened Brolgas. The Trust has also continued to be involved in the development and Outcomes from the project included field days, newsletters, a landowner management of the Biodiversity Link (BLINK) website to encourage recording diary, media events, site meetings with landowners, wetlands communication in the Gippsland Plains and East Gippsland Rainforest protection from stock-grazing at four sites and restoration of natural Conservation Management Networks. hydrological regimes by in-filling an outlet drain at one Brolga wetland. Threatened species In partnership with the North East CMA and Department of Primary The significant conservation work undertaken by Trust for Nature and its Industries (DPI), the Trust continued its conservation program along the landowners through covenants and other properties contributed to the Lower Ovens River floodplain, protecting 59ha of Riverine Red Gum conservation management of more than 76 species of threatened flora wetland under covenant at three different sites. Also in north-eastern and 67 species of threatened fauna in 2010 - 11. Victoria, the Trust continued to participate in the protection of perched bogs and spring soaks in the Goulburn Broken catchment and helped For fauna, our achievements included: to develop and implement a wetlands tender program to protect and • targeted wetland protection and restoration for the Brolga manage these boggy ecosystems, as well as establish a Strathbogies • preparation of the book ‘The Bush Stone-curlew in Northern Victoria CMN. - Conversations and Conservation’, in partnership with DPI and In southern Victoria, Trust for Nature secured acovenant over a 30ha Goulburn Broken CMA wetland complex on the Mornington Peninsula which provides known • protection of key sites for threatened woodland birds habitat for the nationally threatened Australasian Bittern and the Victorian • targeted conservation of the Southern Brown Bandicoot in the Port Flora and Fauna Guarantee Act 1988 (FFG) listed Swamp Skink. Philip & Westernport region
At Neds Corner Station, with support from the Mallee CMA and DSE, • participation in DSE surveys for the nationally threatened Hooded Scalyfoot 150ML of environmental water was pumped into nationally important wetlands in late 2010 to help improve their ecological health. • participation in surveys for the nationally threatened Plains-wanderer • use of offset markets to extend habitats for the Golden Sun-moth. In Gippsland, a covenant has been secured over 220ha of Woodland, Riparian and Sedge wetland communities along the Perry River. For flora, our achievements included: • permanent protection of additional sites for the nationally threatened Conservation Management Networks (CMNs) Dwarf Kerrawang on the Gippsland Plains Conservation Management Networks are community-based networks • active management of a newly-discovered population of the of land managers working across different land tenures to achieve nationally endangered Gorae Leek-orchid on a covenanted site conservation outcomes at a landscape scale. As part of the Trust’s through burning and weed control commitment to landscape-scale conservation, it has been a long-term • fencing of a population of the nationally endangered Winged advocate and supporter of CMNs. In 2010 - 11, the Trust actively Peppercress to increase recruitment participated in CMNs in a range of ways. The Trust’s Chief Executive • reintroduction of threatened species to protected sites on the Officer chaired the state-wide CMN Advisory Group (SWAG) in 2011. Northern Plains The Trust also participated in a state-wide capacity in the Box-ironbark • development of projects to support the conservation of Pimelea CMNs’ Project Control Board and DSE project steering committee for spinescens through the Pimelea Conservation Trust Fund the ‘systematic gathering of evidence to assess the contributions of four • use of offset markets to extend habitats for the Matted Flax-lily. Box-Ironbark Conservation Management Networks’.
At the local level, the Trust continued to support the Gippsland Plains CMN, the East Gippsland Rainforest CMN, the Victorian Volcanic Plains CMN and the Longwood Plains Biodiversity Project. Trust staff also actively participated in the Broken Boosey, Whroo Goldfields, Northern Plains, Mid-Loddon and Wedderburn CMNs.
12 www.trustfornature.org.au In 2010 - 11 our database (Naturebase) was improved with the input of Research an additional 2021 fauna records and 6527 flora records, while spatial In 2010 - 11, Trust for Nature became an industry partner in a new data on covenanted properties and Trust owned properties continued Australian Research Council Linkage project with the University of to be entered and updated in a systematic method compatible with the Melbourne, and a partner in a Cooperative Research Centre application National Reserve System database. ‘Securing and Rebuilding Biodiversity’.
Ecological management and trials Along with the Victorian National Parks Association (VNPA) and Monash A significant issue for Trust for Nature in 2010 - 11 was the Australian University, the Trust is involved in a project that will identify case Plague Locust irruption and the appropriate management of Trust studies to illustrate the benefits of riparian restoration. The Trust is also for Nature properties and covenants to ensure that the Trust met its involved in a project with Charles Sturt University that will investigate legal obligations in relation to locust control while, at the same time, the conservation value of regeneration. Within the organisation, Trust for ensuring that it minimised the impacts on native wildlife. The Victorian Nature is developing guidelines for ecological thinning. Departments of Sustainability and Environment and Primary Industries Trusts for Nature’s properties are often used for research and monitoring provided key advice and support during this period. projects conducted by other institutions. In 2010 - 11, some of the A notable achievement by the Trust was the preparation of a works plan projects included: that outlined a range of control measures according to conservation • effects of management on biodiversity in threatened Box-Gum assets and environmental sensitivity. A key to the plan was the Grassy Woodlands (Australian National University) development of non-chemical locust-control techniques for ecologically • Brolga ecology PhD (University of Ballarat) sensitive areas, such as along the Murray River. These included the • Plains-wanderer research and monitoring (DSE, Parks Victoria) use of weed-burners and a road-roller. Both techniques were applied • Hooded Scalyfoot research and monitoring (DSE) at Neds Corner Station and Trust for Nature’s north-central grassland • Grassland-condition monitoring on the Northern Plains (DSE) properties. • woodland bird monitoring (Trust for Nature, Birds Australia and BOCA) Trust for Nature in the news • Archaeological Field School at Neds Corner Station (La Trobe University). The Trust’s unconventional approach to locust management at Neds Corner Station attracted considerable media attention in 2010. To Trust for Nature staff also provided input into the development or provide the media with a firsthand view and to have the opportunity implementation of the following research projects as industry partners or to explain our approach, we provided a media briefing at Neds members of reference committees: Corner Station. Reporters and media technicians from The Age, the • PhD study investigating riparian restoration in the Broken Boosey ABC and the Sunraysia Daily attended the briefing. The media output CMN (University of Melbourne) was significant and resulted in a page 3 article in The Age, news on the ABC on-line and an article in the Sunraysia Daily. • PhD study investigating patterns of habitat use by birds in box- ironbark forests and regrowth habitats (Charles Sturt University) • PhD study investigating the ecology of the Brolga in south-western Other ecological management activities and trials undertaken in 2010 - Victoria (University of Ballarat) 11 were: • MSc study investigating responses of woodland birds to changes in habitat condition in northern Victoria (University of Melbourne) • development of a draft guide to ecological thinning on private land for conservation objectives • Honours project investigating the response of woodland birds to habitat enhancement and Noisy Miners (La Trobe University). • input into the draft listings prepared under the Flora and Fauna Guarantee Act 1988 and Environment Protection and Biodiversity In early 2011, Trust for Nature was invited to participate in a national Act 1999 to list impacts of Noisy Miners as a threatening process workshop on Biodiversity Monitoring organised by the Australian • presentation of Trust for Nature research at a workshop held on National University and the David Thomas Foundation, and prepared an Noisy Miner management options associated book chapter and scientific paper. • the use of motion-activated field cameras to survey fauna La Trobe University provided invaluable support to the Trust’s research • re-establishment of understorey species on the Gippsland Plains. capacity in 2010 - 11 by supporting the Trust’s Conservation Science Coordinator as honorary research fellow in the School of Life Sciences.
Annual Report 2010-11 13 TRUST for NATURE 2010-11
Key conservation achievements Continued
Public policy Partnerships In September 2010 Trust for Nature created a Policy and Research A key achievement by the Trust in 2010 - 11, in partnership with more Advisor role to ensure the organisation keeps abreast of the increasing than thirty other organisations, was the development of governance pace of environment-related public policy developments. We have arrangements for the Habitat141 Alliance. This initiative aims to connect participated in a number of public consultation processes and we have 20 million hectares of land between the ocean and the outback in endeavoured to influence public policy development to strengthen western Victoria, south-eastern South Australia and western New South private land conservation efforts. We have done this in a number of Wales. ways, including making submissions in relation to: The Trust is a part of the Victoria Naturally Alliance. The Alliance is made • Victorian Environmental Assessment Council's Remnant Native up of nine environment groups that work together to better understand Vegetation Investigation and Melbourne Metropolitan Investigation the causes of biodiversity loss and to find solutions to reverse this loss. • Draft Flora and Fauna Guarantee Action Statements At a national level, the Trust was integral to the formation of the • Guide to the Murray-Darling Basin Plan Conservation Land Trust’s Alliance – a national conservation body that • Review of Caring for our Country will work across the country to help improve the effectiveness of all • Australian Government’s Carbon Farming Initiative proposal and private land conservation bodies. Six states are now partners in the approach to methodologies. Alliance. Trust for Nature has an increasing need for strategic policy and research to bring our on-ground experience and private land conservation insights into the mainstream of public policy.
Interns with the Trust With the appointment of a Research and Policy Advisor, Trust for Nature approached the University of Melbourne to develop an internship program. In 2011 we were privileged to have two University of Melbourne students carry out a six-week summer program at the Trust. Their work focused on environmental law issues of relevance to private land conservation. The internship program is mutually beneficial to both the students and Trust for Nature and expanded our insights into legal policy developments such as carbon farming and alternative models of private land conservation from overseas, including their taxation regimes.
14 www.trustfornature.org.au TRUST for NATURE 2010-11
Conservation support
Trust for Nature has actively increased its development and Trust for Nature has been supported by corporations during the year to communication support to its conservation programs this year. We have achieve our conservation goals. engaged with partners, donors and supporters in a variety of different ways to deliver the private land conservation message to a wider audience. Outlined below are a number of highlights from the year that Corporate covenanting show the diversity and breadth of our work. mecu has taken steps to protect biodiversity through our covenanting and stewardship programs. The Trust has placed a Development activities conservation covenant on 657ha of the west Wimmera’s Buloke In 2010 - 11 we carried out three appeals: the Christmas appeal in woodland and Desert Stringybark habitat that is owned by mecu. December 2010, an End of Financial Year appeal (associated with the This has protected habitat suitable for the south-eastern Red-tailed 1000th covenant celebrations), and the End of Financial Year appeal in Black-Cockatoo (Calyptorhynchus banksii graptogyne), a threatened June 2011. The Trust thanks all who have supported our appeals. iconic species.
Lights, camera, action! During the year, one of our long-term volunteers, Catherine King, completed a history project on ‘The Kidman Years’ at Neds Corner Our Christmas appeal in December 2010 raised funds to purchase Station. This was launched on 29 August, 2010 at Neds Corner Station. motion-activated cameras to use on Trust-owned properties and covenantors properties. The aim of this appeal was to facilitate The Trust is extremely fortunate to be the beneficiary of this significant the study of native plants and wildlife that occurs on private land. piece of work. The cameras are being used to create short films of native wildlife. This year we increased our Spring into Nature series. We delivered 12 Highlights include images of Southern Brown Bandicoots and field-based activities across the State that were attended by more than what may be the first footage of a wild Sugar Glider using its semi- 350 visitors. To provide opportunities for our supporters who live and prehensile tail. Three short films have been produced in the last financial year and can be seen on our website. work around Melbourne, Trust for Nature established a Bush Business Breakfast series. Two breakfasts were held in 2010 - 11. The breakfasts have facilitated regular discussions between our Melbourne-based The End of Financial Year appeal focused on securing support for our supporters and the Trust. hardworking volunteers and committees of management for Trust- To provide the opportunity for former Trustees to remain informed about owned properties. In June, to coincide with the 1000th covenant the strategic direction and activities of the Trust, we held two Board celebrations, Trust for Nature ran an appeal to support our existing Associates Lunches. This period also saw the successful opening of covenantors and to advance towards securing the next 1,000 Wanderers Plain, the Wimmera Biodiversity Seminar, and four visits to conservation covenants. Neds Corner Station by some of our major supporters. During June Trust for Nature remains grateful for the ongoing support of its Bush 2011, with support of The Trust Company, we held the first of the Protection Program members. 1000th covenant celebrations at Cranlana. The 2011 Australian of the Year, Simon McKeon was the keynote speaker. This event marked a Recently, we reviewed our use of funds from past bequests. This will major achievement in private land conservation. ensure that bequests assist us to achieve the strategic goals of the organisation as well as honour the vision of the donor. We thank all who Communications activities have made a bequest and those who are considering Trust for Nature The Trust has made a number of advances in its communications work in their wills. in 2010 - 11. We have redesigned our website, which now provides regular updates on upcoming events, activities, news and links to helpful information; and we are increasingly active in social media. Barbara Salter Bequest We produced four Conservation Bulletins and sent 20 Barbara Salter’s generous bequest to the Trust allows us to e-newsletters to our supporters. The Bulletin is our key publication continue her lifelong passion for nature and its appreciation and protection. Barbara and her husband Arthur, a noted bird and one of the main ways we keep in contact with covenantors. We photographer, were known for their pioneering creation, from the increased our media presence with articles in 34 newspaper and on- mid 1950s, of a beautiful suburban bird-attracting native garden. line media outlets. The Trust also produced three feature articles in 2010 Barbara inspired others as a writer and speaker on native gardens - 11 in other publications. We contributed to a Churchill Fellowship oral and birds. ‘Barbara Salter’s interest in nature wasn’t just clinical, history project, which looked at why people covenant their properties. she loved it, loved it with a passion.’ The bequest funds were used This report will be prepared in 2011 - 12. We also developed a series to purchase an important native grassland property on the Avoca of fact sheets about our work on Neds Corner Station, to do with the Plains (see ‘An addition to our native grasslands’ on page 11). plants and wildlife and the history of the property.
Annual Report 2010-11 15 TRUST for NATURE 2010-11
victorian conservation trust act objectives
Victorian Conservation Trust Act 1972 Objectives: The Trust shall for public scientific and public educational purposes encourage and assist in:
The preservation of areas which are The conservation of wildlife and The conservation and creation of ecologically significant native plants areas for scientific study, public enjoyment, recreation and education Strategic goal: Covenant program Stewardship program Ecological management and trials To protect and • 112 new covenants registered • 211 property visits to covenanted • Development of non-chemical locust- manage land for • 1000th covenant registered properties control techniques for ecologically biodiversity • 143 properties assessed for potential • 144 property management plans sensitive areas applied to Neds Corner covenanting developed Station and Trust for Nature’s north- • 7,973ha negotiated for conservation • Review of stewardship policies and central grassland properties covenants¹ procedures completed • State-wide guide to ecological thinning • 5,838ha of land registered under • Review of stewardship program initiated on private land in development covenant (1087ha of negotiated • Stewardship advice regarding locust • Trial of motion-activated cameras to covenants were registered and not control and floods and fire management survey fauna included in the 5,838ha)¹. 1,680ha of on land with covenants • Trial re-establishment of understory land under MOU for eventual covenanting • Participation in over 30 field days. species on the Gippsland Plains. • 1,088 covenants registered in total, Threatened species protecting 45,848ha of Victoria Research • Protected land supporting 76 species • Completion of consolidated policies and • Engagement in an Australian Research of threatened flora procedures for the conservation program. Council Linkage Project • Protected land supporting 67 species • 1 project to identify riparian restoration Revolving Fund of threatened fauna. case studies in partnership with The • 1 property purchased totalling 3.34ha University of Melbourne, Monash Trust properties – management ($525,000) University, La Trobe University, Charles • 47 properties currently managed • 1 property sold totalling 687ha Sturt University • 9 Committees of Management ($150,000) • Trust for Nature properties used in 6 • The first sighting of a Southern Hairy- • $2,573,795 currently in cash external research projects nosed Wombat (Lasiorhinus latifrons) • 8 properties valued at a total of • 4 research projects to which Trust for in Victoria at Neds Corner Station $1,726,491 Nature contributed registered. • 55 properties purchased by the Revolving • Participation in a national workshop on Fund since its inception, protecting Engagement with Indigenous biodiversity monitoring and preparation 5,735ha. communities of associated book chapter and scientific paper Trust properties - acquisitions • Involvement of Indigenous Elders in • Archaeological Field School with La • 2 properties purchased totalling 595ha projects on Neds Corner Station and Trobe University. • 47 properties currently owned totalling surrounding areas 34,506ha • Established a Keeping Place on Neds Communications activities • 7 properties transferred to the Crown Corner Station for the Living Murray • Trust for Nature website upgraded totalling 1,682ha environmental works carried out on the • Use of social media (Facebook) • 68 properties transferred to the Crown in nearby Mulcra and Lindsay Islands introduced total comprising 6,243ha of Victoria. • ongoing work between Trust for • 20 e-newsletters sent to supporters Nature volunteer groups (Committees • 4 Conservation Bulletins and 4 fact of Management) and Indigenous sheets produced communities at Mount Elgin Swamp • 34 newspaper and on-line media and Snape Reserve articles • Current development of an Indigenous • Stewardship communication project Engagement Strategy for the Australian commenced. Government Caring for our Country Buloke Woodlands Project.
1. Registered means a deed of covenant was registered on the certificate of title to a property. Negotiated means a request for a covenant was recorded following a successful inspection of the property to ensure its suitability. 16 www.trustfornature.org.au Victorian Conservation Trust Act 1972 Objectives: The Trust shall for public scientific and public educational purposes encourage and assist in:
The preservation of areas which are The conservation of wildlife and The conservation and creation of ecologically significant native plants areas for scientific study, public enjoyment, recreation and education Strategic goal: Priority Protection Public policy Conservation Management To maximise Grasslands protection • Submissions made to: Networks (CMNs) biodiversity • 166ha of native grassland on the Avoca o Victorian Environmental Assessment • Strathbogies Conservation outcomes Plains adding to a protected network of Council’s Remnant Native Vegetation Management Network established of nature nearly 4,000ha Investigation and Melbourne • Trust for Nature CEO chaired the conservation • 130ha of native grasslands on the Metropolitan Investigation Conservation Management Network actions Victorian Volcanic Plains negotiated for o Draft Flora and Fauna Guarantee state-wide Advisory Group in 2011 protection under covenant Action Statements • Participation in the Box-ironbark CMNs • 730ha covenanted of the Gippsland o Guide to Murray-Darling Basin Plan project control board Plains, including 155ha of endangered o Review of Caring for our Country • Participation in the Department of Plains Grassland • 2 summer internships. Sustainability and Environment’s project • Successful application made for funding steering committee for the ‘Systematic to develop a conservation strategy gathering of evidence to assess the and management guidelines for the contributions of four Box-ironbark grasslands of the Riverina bioregion. Conservation Management Networks’ • Ongoing support of three CMNs Woodlands protection • Active participation in five CMNs • 205ha of Box-Gum Grassy Woodland • BLINK website developed and covenanted in north-eastern Victoria managed for the Gippsland Plains • 500ha of Buloke Woodland covenanted and East Gippsland Rainforest in western Victoria Conservation Management Networks • 658ha of native vegetation covenanted, • Victorian Volcanic Plains Conservation including areas of endangered Plains Management Network website Grassy Woodland and associated managed. grassland and wetland habitats in south- eastern Victoria Partnerships • 300ha of White Box Woodlands • Habitat141 governance framework managed by volunteers and land owners established with 30 other organisations in south-eastern Victoria. • Ongoing involvement in the Victoria Naturally Alliance Wetlands protection • Conservation Land Trust’s Alliance • Brolga habitat managed in western established in partnership with six Victoria states • 59ha of Riverine Red Gum wetland • 1 property protected by mecu covenanted in north-eastern Victoria Conservation Landbank partnership. • Ongoing protection of perched bogs and spring soaks in central Victoria • 30ha wetland complex covenanted on the Mornington Peninsula • 150ML of environmental water pumped into a wetlands at Neds Corner Station • 220ha of Woodland, Riparian and Sedge Wetland covenanted in south-eastern Victoria. Strategic goal: Environmental markets To capture new • First offset conservation covenant opportunities registered through the Native for achieving Vegetation Credit Register biodiversity gains • 22 offset agreements registered • 9 offset agreements underway. Public policy • Submissions made to Australian Government’s Carbon Farming Initiative proposal and approach to methodologies.
Annual Report 2010-11 17 TRUST for NATURE 2010-11
victorian conservation trust act objectives Continued
Victorian Conservation Trust Act 1972 Objectives: The Trust shall for public scientific and public educational purposes encourage and assist in:
The preservation of areas which are The conservation of wildlife and The conservation and creation of ecologically significant native plants areas for scientific study, public enjoyment, recreation and education Strategic goal: Fundraising partnerships Fundraising for protection Fundraising for study benefits To achieve • Funds secured to establish the • $50,297 secured from the End of • $22,734 secured from the Christmas excellence Conservation Land Trust’s Alliance Financial Year appeal (associated with appeal for motion-activated cameras and growth in • 2 Bush Business Breakfasts held. the 1000th covenant celebrations) • Sponsorship of 12 Spring Into Nature business, and • $25,292 secured from the End of events held, with over 350 visitors to encourage Financial Year appeal for support of • 4 visits to Neds Corner Station with investment Committees of Management major donors. in nature • $63,407 secured through the Bush conservation Protection Program • 60% increase in the average donation compared with the previous financial year.
Table 5: Conservation covenants registered by region Table 6: Area protected by registered conservation covenants
*Registered Registered *Registered Area Area Total Area Covenant in Covenant in Covenant Protected in Protected in Protected Region 2010 - 11 2009 - 10 Total Region 2010 - 11 (ha) 2009 - 10 (ha) (ha) Corangamite 6 4 80 Corangamite 121 192 1,876 East Gippsland 6 3 102 East Gippsland 445 102 5,180 Glenelg Hopkins 14 3 75 Glenelg Hopkins 822 70 3,179 Goulburn Broken 11 4 128 Goulburn Broken 382 94 4,669 Mallee 1 1 31 Mallee 61 13 2,193 North Central 28 5 180 North Central 1,124 52 7,4 9 0 North East 4 4 51 North East 723 108 2,649 Port Phillip & 19 6 201 Port Phillip & 334 42 3,104 Westernport Westernport West Gippsland 12 1 110 West Gippsland 1,216 40 3,901 Wimmera 11 7 130 Wimmera 609 214 11,6 07 Total 112 38 Total 5,838 926 State-wide Total 1,088 State-wide Total 45,848 * Covenant statistics may fluctuate due to land title changes, approved covenant amendments and work areas.
18 www.trustfornature.org.au 2010 - 11 TRUST FOR NATURE SERVICES: OPERATIONAL OBJECTIVES FOR KEY SERVICES In its annual reports, Trust for Nature provides a performance report of its activities against the objectives of the Victorian Conservation Trust Act 1972 (see page 16 – 18). In line with statutory disclosure requirements, we also report on the targets and outcomes of our operational objectives in Table 7.
Table 7: Operational objective outcomes
Target Services (qualitative & quantitative) Outcomes 2010 - 11 Conservation To negotiate 4,606ha for protection 5,838ha registered under conservation covenant (of which 4,641ha are voluntary covenants through voluntary covenants. covenants). 1,680ha under Memoranda of Understanding with landowners (working towards covenanting). Land To prepare 86 management plans for 144 management plans prepared for covenanted properties. stewardship covenanted properties (in line with CMA agreements). To visit 329 covenanted properties. 211 covenanted properties visited. Environmental To increase the number and efficiency After significant development of the offset program of Trust for Nature, 2010 - 11 saw markets of agreements developed through the registration of the first Offset Covenants. This has required the development of a the native vegetation offset brokering new framework for documenting, registering and allocating gain credits with the Native system. Vegetation Credit Regiter of DSE. The new system will allow benchmarking of offset agreements for future measurement of number and efficiency. 22 offset covenants were registered. 12 offset agreements were established for delivery through registration of offset covenants. Revolving Fund To maintain the value of Revolving Fund The value of Revolving Fund contributions has grown in 2010 - 11. One property was contributions over time. sold at a small loss of $5,542. Interest on funds held grew by $171,407. One property totalling 687ha sold at $150,000 after purchase in 2009 - 10 for $155,542. Purchased one property totalling 3.34ha at a cost of $525,000. Retained $2,573,795 in cash for use by Revolving Fund. Holding 8 properties comprising 630ha with a value of $1,726,491. To grow the value of private investment The value of private investment in nature conservation has grown through additional in nature conservation through contributions to the Revolving Fund. Through the sale of donated land, a further contributions to the Revolving Fund. $700,000 has been added to the Revolving Fund (in a sub-fund called the Robert James Revolving Fund) to pursue conservation in the Emerald area. This additional investment has secured the extension of habitat for the nationally endangered Emerald White Star-bush. Development To grow the value of private investment Development income from donations (excluding bequests) increased from an income of in nature conservation through $441,946 in 2009 - 10 to $509,120 to 2010 - 11. development activities and prudent Bequest income totalled $100,000 down from $950,010. funds management. Dividend income increased from $103,392 to $187,558. Interest income increased from $849,838 to $856,430. To carry out two fundraising appeals. Christmas appeal in December 2010 Motion-activated camera library. End of financial year appeal in June 2011 Support for Committees of Management. End of Financial Year appeal (associated with the 1000th covenant celebrations).
Annual Report 2010-11 19 TRUST for NATURE 2010-11
Partners
Trust for Nature is grateful to all our partners and donors for support Nillumbik Shire, for the management of the Eltham Copper Butterfly of our work to protect native plants and wildlife on private land. We Reserve acknowledge the many individuals, community groups, covenantors, The Fraser Family and Friends of Harbury associations, foundations and companies who continue to lend their support, both financial and otherwise, to Trust for Nature. Margaret and David Harper and Family
Our thanks also go to Norton Rose for ongoing probono legal services. Mick and Liz Dexter
Trust for Nature wishes to express sincere gratitude to the following Graeme Lorimer and Friends of Bungalook Conservation Reserve individuals and organisations that have made contributions to Trust for John Clarke Nature in the 2010–11 financial year: Ed and Susie McNabb Australian Government Department of Sustainability, Environment, Water, Population and Communities – in particular the Caring for Our Country Dr Mark Schapper Initiative and the National Reserve System Program Dr Janet Schapper Victorian Department of Sustainability and Environment Michael Butcher Victorian Department of Primary Industries John Bate Parks Victoria Malcolm Just VicRoads Catherine King Corangamite Catchment Management Authority Frank Wallace East Gippsland Catchment Management Authority The Nature Conservancy Glenelg Hopkins Catchment Management Authority The Nature Conservation Trust of NSW Goulburn Broken Catchment Management Authority Tasmanian Land Conservancy Mallee Catchment Management Authority The National Trust of Australia (WA) North Central Catchment Management Authority Queensland Department of Environment and Resource Management North East Catchment Management Authority Nature Foundation SA Port Phillip & Westernport Catchment Management Authority mecu Limited West Gippsland Catchment Management Authority Perpetual Trustees Wimmera Catchment Management Authority Birds Australia Victorian Catchment Management Council Bird Observation & Conservation Australia (BOCA) Local Governments of Victoria The Norman Wettenhall Foundation Geoff Durham and Wanderslore Sanctuary Committee of Management Stefano de Pieri and Mildura Brewery Mt Elephant Committee of Management Norton Rose Mt Elgin Committee of Management DLA Phillips Fox Snape Reserve Committee of Management Callista Pallister's Reserve Committee of Management The Myer Family (Cranlana) Ralph Illidge Sanctuary Committee of Management Greenhouse Balanced Ocean Grove Park Committee of Management The University of Melbourne Law School Uralla Nature Reserve Committee of Management La Trobe University Dog Rocks Committee of Management Deakin University
The University of Melbourne
20 www.trustfornature.org.au Charles Sturt University
Murray-Darling Freshwater Research Centre
Bendigo Regional Institute of TAFE
Earthwatch
Kowree Farm Tree Group
Grampians to Little Desert Biolink
Bush Heritage Australia
Greening Australia (Victoria)
The Victoria Naturally Alliance
Landcare Groups
Fairley, Bael Bael and Sandhill Lake Landcare Groups
EsLink Services
Nargundy Pty Ltd
Werrimull Landcare group
Clive Crouch
Green Corps
Friends of the Grey-crowned Babbler
Heathmont Bushlink
Mount Elephant celebrates The Trust property, Mount Elephant, reached a significant milestone in 2011 as did the dedicated community group who works in partnership with the Trust to manage the historic site. Mount Elephant, an extinct volcano, was purchased by Trust for Nature in 2002 (although negotiations began in 2001). The community of Derrinallum then took over joint management of the property with the Trust and formed the Mount Elephant Management Committee. To celebrate 10 years of working together, the groups held a lunch and walk at the property in March. Mount Elephant is an excellent and ongoing example of how the Trust works with a variety of different partners to achieve positive outcomes for Victoria’s native plants and wildlife on private land.
Annual Report 2010-11 21 TRUST for NATURE 2010-11
Major donors
Trust for Nature continues to rely on its major donors to support its Geoff and Geraldine Harris program on private land across Victoria. Dr Geoff Wescott The Trust would like to express condolences to the family and friends of Geoff and Judy Durham those supporters who passed away this year. We would especially like to acknowledge the generosity of John and Jenny Barnett, from whom Geoffrey J Giles we received a gift through their will during 2010 - 11, and the families Graeme and Margaret Henshaw and friends of Graeme Peter Kidd and Peter Hartland Garnham, who Hancock Natural Resource Group made donations in their memory. Their extraordinary contributions will help protect threatened Victorian habitat for future generations. Dr Howard and Jill Plowright
We are grateful to the following individuals and organisations for their Ian Hopkins generous support and investment in 2010 - 11: Jillian Wilson $100,000 and over: Jennifer Rolland and Euan Moore
The Estate of the Late John and Jenny Barnett June Danks
$10,000 and over: June Stringer Kirsty Bennett Dr Bill and Carol Holsworth Lisa Gay and Ric West Brian and Diana Snape Lesley Griffin The David Thomas Foundation The Loftus Hill Fund (Lord Mayor’s Charitable Foundation) Geoff and Helen Handbury Foundation Dr Margaret Lush and Justice David Harper Megan Davis and Tony Isaacson Margaret Ross, AM, and Ian Ross Reece Pty Ltd Margaret Reid Souter-Foale Family Trust Mark and Hyeon-joo Newman The Nature Conservancy Australia Program Mr and Mrs Marshall Baillieu The Trust Company Michael and Sally-Anne Hains Trawalla Foundation Nancy P Marriott Trust for Nature Foundation Dr Peter and Helen Curtis $5,000 and over: Peter Furneaux John Marsden Peter and Terryl Read Libby Woodward and Steve Syer Rikki Andrews Limb Family Foundation Roslyn Semler Tom Tootell and Michelle Vickery Ruth McKenzie $1,000 and over: Tim Walker
Alan Henry Vanessa Craigie Alison and Jim Leslie Volunteers Charity Store Inc. Belinda Findlay Anonymous (6)
David McLatchie Trust for Nature is indebted to all of our supporters for their contribution Donald and Mrs Joyce Gillespie toward conservation of Victoria’s native plants and wildlife on private land. Don Saunders PSM Dr Elizabeth Xipell Estelle Hewston
22 www.trustfornature.org.au TRUST for NATURE 2010-11
Finance and business
Current year financial review The net assets of the Trust decreased by $7,931,347 primarily due For 2010-11 the Trust had a net result deficit of $116,659 (2009- to a devaluation in the value of the Trust’s land and building portfolio 2010: surplus $2,604,831). This excludes the effects of revaluations of $6,842,745 that resulted from a physical valuation carried out on arising from changes in market prices of land and buildings and all properties. This was the first complete revaluation since 2004. In equities, and other changes shown under ‘other economic flows’ on the addition, seven properties with a market value of $2.1 million were comprehensive operating statement, which are outside the control of transferred to the Crown, in addition to the two properties ($0.9 million) Trust for Nature. provisioned for in 2009 - 10.
Government grant income was down on last year due to lower grants A new three-year internal audit program was approved by the Board received for the purpose of land acquisition, although we were still able during the year, which resulted in the development of a risk assessment to acquire a 166 hectare property at Budgerum for $205,067 with the framework which is monitored quarterly. Reviews were also undertaken assistance of the Government and a generous private donation. by the Trust’s internal auditors covering compliance with legislation and other requirements, and our financial management reporting. The Trust Despite difficult financial conditions donation income increased on the also participated in internal audits by two Catchment Management previous year while bequest income decreased significantly. Authorities. Employment expenses increased as a result of a full year of higher There are no events subsequent to the balance date that will affect regional staff levels and investment in support staff to support the materially the future performance of the organisation. growth in regional activity over recent years. Direct spending on the Trust’s covenant program also increased.
In addition, the Trust incurred $74,358 of expenditure responding to the locust threat on Trust properties.
Table 8: Five-year financial summary
2011 2010 2009 2008 2007 Administration grant 5 97,9 24 596,700 585,000 570,925 557,000 Government grants 3,712,516 2,228,976 2,326,728 1,803,986 1,175,641 Government grants used for property acquisitions 155,067 2,584,373 0 0 0 Donations & appeals 509,120 441,946 309,431 713,430 449,257 Bequests 100,000 950,010 234,714 0 0 Interest and dividends 1,043,988 953,230 992,760 704,046 637,865 Other income 367,735 475,099 423,614 332,238 182,676 Total income 6,486,350 8,230,334 4,872,247 4,124,625 3,002,439 Salary and associated expenses 3,239,292 2,571,782 1,944,873 1,586,652 1,599,335 Covenant program expenditure 1,500,012 678,381 476,917 749,958 565,459 Cost of land surrendered to crown 184,330 915,218 0 0 0 Other expenses 1,679,375 1,46 0,122 978,155 711,430 680,670 Total expenditure 6,603,009 5,625,503 3,399,945 3,048,040 2,845,464 Net result from transactions (116,659) 2,604,831 1,472,302 1,076,585 156,975 Total assets 51,837,670 53,158,378 48,058,284 40,792,205 38,970,093 Net assets 34,512,938 42,444,285 3 9,5 87,0 3 0 38,221,781 37,266,954
Annual Report 2010-11 23 TRUST for NATURE 2010-11
Our people
Trust for Nature is overseen by a Board of Trustees, appointed by Sylvia Geddes the Governor-in-Council on the recommendation of the Minister BA (Hons) administering the Act. Sylvia’s close association with Trust for Nature arose from her work in Patron philanthropy, particularly as the CEO of The RE Ross Trust from which she The Honourable Professor David de Kretser, retired in 2008 after eight years. Prior to this she was Manager, Charitable Governor of Victoria (1 July 2010 to 8 April 2011) Services, ANZ Trustees. Sylvia’s career also encompassed working at senior Australian and Victorian public service levels in various areas of policy The Honourable Alex Chernov, and program management and managing her own consultancy business. AO, QC, Governor of Victoria (9 April 2011 to 30 June 2011) She has served on state and Australian Government advisory committees Board for vulnerable children, young people, families and those who are homeless Camilla Graves, Chairman and was a council member of the Australian Red Cross Victoria, including a BA, DipEd, Grad Dip AppSc (Horticulture), Grad Dip App Finance, MAICD period as Vice-Chair. Camilla joined Trust for Nature’s Board in 2004 and became the Dr Gregory Moore Chairman in 2010. She has worked in education, financial markets BSc (Ed), BSc (Hons), MBA, PhD (UK), catering, tourism and as a consultant horticulturalist. She Greg has a strong interest in horticultural plant science and ecology. From has had a lifelong involvement in the family business in primary 1988 to 2007 he was the principal of Burnley College in the Faculty of production. Camilla is a strong advocate for sustainable land Land and Food Resources at the University of Melbourne. Prior to this management and the conservation and protection of significant natural he was senior lecturer in Plant Science and Arboriculture from 1979. He assets and ecology on private land, for the benefit of future generations. was Head of the School of Resource Management at the university from Anthea Hancocks, Deputy Chairman 2002 to 2007. Greg was inaugural president of the Society of Arboriculture, BSc, MA, MBA Australian Chapter and contributed to Australian Standards in pruning and Anthea has an extensive background in business development, amenity tree evaluation. He has published more than 100 papers and communications, education, strategy and relationship and services articles,; written a book on tree biology and management,; and was the marketing. She is currently the Chief Marketing Officer for law firm inaugural president of Arboriculture Australia. Herbert Geer where she is responsible for the firm’s brand, positioning, Lisa Gay marketing and business development. Prior to this role, she managed BA, LLB the office of the Chief Operating Officer of the National Australia Bank. Until 2010, Lisa was General Counsel and Managing Director of the She has worked as General Manager, Corporate, for the Melbourne Goldman Sachs JBWere Group. Lisa is currently Chairman of the ASIC Business School, responsible for leadership, strategy and management Markets Disciplinary Panel, which is the main forum for hearing disciplinary programs with over 100 top Australian and international companies, matters against stock market participants for breaches of the Market and before that was the National Business Development Director for Integrity Rules. Lisa is also a Director of Flora & Fauna International (Australia) Deloitte. For 10 years she lived in the USA where she was an Associate and a member of ASIC Market Supervision Advisory Panel. Lisa, her Professor for Museum Studies at the University of Arizona. husband Ric and two children, Winnie and Sam, own a 101ha property Rikki Andrews in the Victorian high country where they share a passionate interest in BSc (Botany), Grad Cert Env Mgt, MSocSc (Philanthropy and Social Investment) revegetation and erosion prevention and have planted over 5,000 trees. Rikki has a background in sales, business development and grant- Dr Rik Thwaites making within trustee companies. In particular, she has experience BSc, PhD in assisting high net-worth individuals and their advisors on choosing Rik is a senior lecturer in ecotourism, a social scientist and a member of the the best philanthropic option to suit their giving requirements. She is Institute for Land, Water and Society at Charles Sturt University. Trained as a currently working with a private family foundation. In 2010, Rikki was geologist, Rik worked as a glaciologist with the Australian Antarctic Division invited to be a sessional lecturer for the Asia-Pacific Centre for Social before turning his hand to photography and photo-journalism. Rik has been Investment and Philanthropy’s new Master of Commerce program. She an active environmental advocate for many years. Following a consultancy is also employed as a seminar developer and presenter at Philanthropy to develop a strategy for Sustainable Development for Albury Wodonga, Australia, the peak body for philanthropic organisations in Australia. In Rik embarked on a PhD to study land degradation and sustainable land her spare time Rikki endeavours to ensure her CBD-living daughter, management on the steppe grasslands of Inner Mongolia, China. He Annabel, encounters as much of the natural world as possible. has been part of several projects and consultancies on ecotourism, protected area and natural resource management in local and Indigenous communities. Rik is currently the Sub Dean (International) of the Faculty of Science at Charles Sturt University.
24 www.trustfornature.org.au Rod Gowans Dr Mick Lumb BSc, Dip App Sc BAgSc, PhD
Rod Gowans joined the Board in late 2007. He has extensive Mick has had an extensive career in government and natural resource experience in the management of natural resources on public and management and in 2006 was awarded the Order of Australia Medal. private land. In 2007 he was awarded the Public Service Medal for Mick is the principal of an environmental services consulting firm outstanding public service to the conservation of biodiversity and to that specialises in land use policy and strategy development with a the management of national parks. He has worked in various executive strong focus on climate change. During his years in government he leadership roles responsible for the management of parks and reserves was the Director of the Land Conservation Council, various planning, and the conservation of marine and terrestrial biodiversity. He has conservation and natural resources divisions, and finally, the Office of both national and international experience in programs for nature the Environment. Mick is a former Chair of the Port Phillip & Westernport conservation and natural resource management. Rod has served on a Catchment Management Authority and a former member of the Central number of management boards in Victoria relating to natural resource Coastal Board. He has had a long interest in propagating and growing management. Australian plants and regularly travels through the deserts of Australia.
Board and Committee Meetings Trust for Nature’s Board of Trustees met four times in the 2010 - 11 financial year, as did the four committees. Attendance details below refer to the number of meetings (of a Committee of which they are a member) a person attended, alongside the number of meetings the person was eligible to attend as a member of that Committee.
*Includes attendance by each person at Committee meetings of which they are not a member.
Table 9: Board and Committee Meeting attendance
Fundraising Conservation Finance & Audit & Risk committee committee Investment Board meetings committee meetings meetings meetings committee meetings Camilla Graves 4/4 4/4 4/4 4/4 3/4 Anthea Hancocks 4/4 4/4 4/4 Rod Gowans 2/4 3/4 3/4 Sylvia Geddes 3/4 4* 4* 4/4 Dr Greg Moore 4/4 4/4 4/4 Rikki Andrews 4/4 3* 3/4 3/4 Lisa Gay 3/4 2/4 2/4 4/4 Dr Mick Lumb 4/4 4/4 4/4 Dr Rik Thwaites 4/4 4/4 4/4 Tom Tootell 1/1 1/1 Binda Gokhale 1/1
Annual Report 2010-11 25 TRUST for NATURE 2010-11
Our organisation
Trust for Nature values its employees. In the regions, our staff manage and deliver private land conservation initiatives throughout the State. And in Melbourne, our staff work strategically to support, promote and assist in the services and systems critical to our conservation programs.
In 2010 - 11 Trust for Nature employed 58 staff members including 28 full-time, 21 part-time and 10 casual staff; 26 women and 32 men.
Throughout 2010 - 11 Trust for Nature sought to uphold its commitments to the principles of the Public Administration Act 2004. Trust for Nature staff abide by the organisation’s four values and the Code of Conduct for Victorian Public Sector Employees. Chief Executive Officer Victoria Marles, BA, Dip Ed, Dip Arts (Dramatic Arts), LLB (Hons), LLM Senior Officers Regional Operations Manager, Peter Moulton, BSc
Chief Finance Officer, Greg Bowers, BBus, CPA
Major Projects Manager, Chris Cook, BEng, MA (Env Management)
Development Manager, Justin Glass, BSc (Hons), Grad Dip (Env Planning), MA (Env Studies)
Table 10: Trust for Nature staffing statistics by Full time equivalent
30 June 2011 30 June 2010 Regional staff 34.9 34.4 Commercial services 2.3 1.8 Fundraising 3.2 3.5 Executive and support, policy 7.7 5.5 Other 0.7 0.5 Total 48.8 45.7
Table 11: Trust for Nature staffing statistics by gender
30 June 2011 30 June 2010 Females 26 29 Males 32 30 Total 58 59
26 www.trustfornature.org.au TRUST for NATURE 2010-11
organisational chart
Board of Trustees
Executive Assistant
Chief Executive Officer
Regional Business Policy and Manager Human Revolving Fund Major Projects Chief Financial Operations Development Research Avisor Resources Manager Manager Officer Manager Manager
OH&S Conservation Supporter Compliance Finance Officer Officer Services Officer Coordinator
Grassy Regional Conservation IT Systems Communications Ecosystems Managers x10 Projects Officer Manager Coordinator Coordinator
Conservation Pimelea Receptionist / Conservation Regional Support Science Conservation Administration Communications Staff x23 Coordinator Officer Officer Officer
ROM Admin Neds Corner Assistant Station Manager
Conservation GIS Officer Program Ranger Coordinator
Information Covenant Officer Administrative Manager x2 Assistant
Annual Report 2010-11 27 TRUST for NATURE 2010-11
Community engagement achievements
Trust for Nature works with people. We are committed to assisting all Indigenous communities people, regardless of age, gender, sex, impairment, race and religious Trust for Nature encourages active partnerships with Indigenous beliefs, to protect biodiversity on their land. We strive to reconnect groups recognised as Traditional Owners. The Trust works actively people with nature and work proactively within Victorian communities to with Indigenous communities across Victoria. The Trust is committed share information and to learn more about how we can contribute to the to strengthening its engagement with Indigenous communities into the conservation of native plants and wildlife on private land. future.
Culturally and linguistically diverse (CALD) communities In 2010 - 11 activities included: Trust for Nature will continue to develop and provide services which • involvement of Indigenous Elders in projects on Neds Corner respond to cultural diversity. Trust for Nature staff come from a Station and surrounding areas diverse range of backgrounds and we continue to work with Victorian landowners from many different cultural backgrounds. • establishment of a Keeping Place on Neds Corner Station for the Living Murray environmental works carried out on the nearby Mulcra Women Trust for Nature prides itself on providing a fair and equitable workplace. and Lindsay Islands We are committed to an even gender balance and in 2010 - 11 Trust for • ongoing work between Trust for Nature volunteer groups Nature employed 26 women out of 58 staff. During the reporting period (Committees of Management) and Indigenous communities at the Trust for Nature Board of Trustees had five women out of a total of Mount Elgin Swamp and Snape Reserve nine members. • current development of an Indigenous Engagement Strategy for Young people the Australian Government’s Caring for our Country funded project, Trust for Nature has continued to involve youth across Victoria. In 2010 Buloke Woodlands. - 11 the Trust worked hard to identify opportunities to engage and work with young people. In the classroom and on property visits, Trust for Nature has presented to students from a number of schools and higher education institutions. The Trust has also provided tours of its properties, including: a tour of Uambi, a Trust-owned property, with students from Fintona Girls School; and a tour of Pallister’s Reserve wetlands with 10 Aquatic Science students from Deakin University. The Trust hosted school and university students and trainees at Neds Corner Station to participate in conservation and Indigenous assessment activities and also recruited two Melbourne University Law School interns for six weeks over summer. Trust for Nature staff have also provided a formal role in terms of industry partners or project supervision for three post- graduate projects at La Trobe University and the University of Melbourne.
Tomorrow’s Leaders for Sustainability In the Wimmera, Trust for Nature’s ongoing partnership with mecu provides opportunities for young people, including school students. mecu continues to develop their Landbank in the Wimmera area. School groups in this region regularly visit properties with Trust for Nature conservation covenants in place to participate in conservation activities. This participation in hands-on education activities led a group of schools to develop a sustainability leadership program called ‘Tomorrow’s Leaders for Sustainability’. The program began as a pilot but has now been integrated into the curriculum of at least two secondary schools.
28 www.trustfornature.org.au TRUST for NATURE 2010-11
Statutory compliance
Occupational Health and Safety Details of consultancies over $100,000 Trust for Nature is committed to providing a safe and healthy workplace During 2010-11 there were no consultancies over $100,000. for its employees, trustees, contractors, volunteers and visitors. To Details of consultancies under $100,000 meet this objective, Trust for Nature commissioned a review of its The Trust engaged the services of 10 consultants. The total value of Health and Safety processes in 2010 - 11 with a view to aligning those consultancies in 2010 – 11 was $58,889. processes to the provisions of the Australian Standard AS 4801 – Health and Safety Management Systems. The work included assessing Major contracts and updating the organisation’s OHS procedures and policies, and No major contracts were entered into during 2010 – 11. developing and implementing an effective management system. This Freedom of Information (FOI) development and implementation process affords Trust for Nature Trust for Nature is considered to be a ‘Government Agency’ under the an opportunity to achieve improvements in overall health and safety Freedom of Information Act 1982 and is required to comply with the performance, in line with the Trust’s Health and Safety Policy. The procedures that have been prescribed under which members of the organisation will continue to undertake training of staff that focuses on public may gain access to information held by agencies. A decision responsibilities and actions to ensure work environments are safe and to release information is made by an Authorised Officer. Trust for staff can perform their work activities competently without risk of illness Nature has determined that its authorised officer is the Department of or injury. Sustainability and Environment’s Freedom of Information Manager, Mr Luke Brown, phone: (03) 9637 8585. The Trust has continued to procure first aid and personal safety equipment for new and existing staff members who may work in areas An application fee of $24.40 applies at the time of this report’s of inherent risk (e.g. bushfire, venomous wildlife, steep terrain). publication.
The Trust’s Health and Safety Committee met during 2010 - 11 and In the 2010 – 11 reporting period there were no requests for information members of the Trust’s staff have completed first aid training or refresher under the Freedom of Information Act 1982. courses, and training on OHS legislation. Compliance with the Building Act 1993 Trust for Nature’s occupational health and safety performance against Trust for Nature meets the compliance conditions of the Building Act key indicators for the financial year is illustrated in Table 12. 1993 with respect to the building and maintenance activities of buildings owned by Trust for Nature. Table 12: Occupational Health and Safety statistics Employment and conduct principles Number of OHS Committee meetings 6 During 2010 - 11 Trust for Nature advertised 16 positions in which Number of reported injuries received 3 selection was made on applying merit and equity principles in line with Number of recorded injury reports progressing to 0 the standards of the State Services Authority. Management skills training workcover claims was provided to managers, and included a requirement on the public sector Code of Conduct. Performance and Development Plan reviews Number of Comprehensive Risk Assessments 3 for staff also covered the public sector Code of Conduct. During the undertaken financial year, all staff attended presentations on the prevention of Number of policies/procedures developed 23 unacceptable workplace behaviour, which incorporated issues relating A more comprehensive set of performance objectives is being to discrimination, bullying, and harassment. These sessions also developed as part of the improved OHS Management System in provided staff with information on the Charter of Human Rights. development. Compliance with the Whistleblowers Protection Act 2001 Office-based environmental data The Whistleblowers Protection Act 2001 came into effect on 1 January Trust for Nature continues to implement its Resource Smart 2002. The Act is designed to protect people who disclose information Environmental Policy and Action Plan. In 2011 the Trust moved offices about serious wrongdoing within the Victorian Public Sector and and actions were taken to ensure the greenest possible solutions were to provide a framework for the investigation of these matters. No used when we purchased new office products and selected the office. disclosures have been made to, or referred by, Trust for Nature during For example, a building was chosen that has an existing organic waste the reporting period. management system in place. We are re-evaluating the Resource Smart Plan to fit our new office. A new data baseline will be set for the next financial year that will provide us with a comparison measure for future years. There are now five staff members on the Trust’s Resource Smart Committee and we have continued to provide recycling stations and place messages frequently throughout the Melbourne office to help to encourage staff to reduce, reuse and recycle.
Annual Report 2010-11 29 TRUST for NATURE 2010-11
Statutory compliance Continued
Disclosures may be made to the following parties: Statutory compliance – availability of other information Other information to be made available upon request (subject to the Peter Moulton Freedom of Information Act 1982) is as follows: Regional Operations Manager • A statement that declarations of pecuniary interests were duly Trust for Nature completed by all relevant officers. 5/379 Collins Street • Details of shares held in subsidiaries. Melbourne, Victoria 3000 Australia Phone: (03) 8631 5888 • Details of publications produced by Trust for Nature and how these can be obtained. Fax: (03) 9614 6999 Email: [email protected] • Details of changes in prices, fees, charges, rates and levies charged. The Ombudsman Victoria • Details of any major external reviews. Level 9, 459 Collins Street (North Tower) • Details of major research and development activities. Melbourne Victoria 3000 • Details of official overseas visits. National competition policy Trust for Nature complies with the Competitive Neutrality Policy • Details of major promotional, public relations and marketing activities. Statement issued in June 1996. • Details of assessments and measures undertaken to improve occupational health and safety. Victorian Industry Participation Policy (VIPP) • A general statement on industrial relations, and details of time lost Departments and public bodies are required to apply VIPP in all tenders through industrial accidents and disputes. over $3 million in metropolitan Melbourne and $1 million in regional • A list of major committees. Victoria. Trust for Nature has not commenced or completed any contracts during 2010 - 11 to which VIPP applied. Risk management attestation I, Camilla Graves, certify that Trust for Nature (Victoria) has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and that an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures.
The audit committee verifies this assurance and confirms that the risk profile of Trust for Nature has been critically reviewed within the last 12 months.
Camilla Graves Chairman
1 September 2011
30 www.trustfornature.org.au TRUST for NATURE 2010-11
Disclosure Index
The Annual Report of Trust for Nature is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of our compliance with these statutory disclosure requirements.
Clause Disclosure Page
Report of operations
22B Manner of establishment and all responsible Ministers 6
22B Objectives, functions, powers and duties 16-18
22B Nature and range of services provided 7-13
Management and structure
22B Organisational structure, names and functional areas of responsibility of senior officers 26-27
22B Names of board members and committee members 24-25
Financial and other information
22B Workforce data – two-year comparison 26
22B Employment and conduct principles 29
22B 5-year summary of financial results 23
22B Significant changes in financial position 23
22B Objectives and performance against objectives 19
22B Major changes or factors affecting performance 23
22B Statement of subsequent of events 23
24C Office based environmental data 29
22B Details of consultancies > $100,000 29
22B Details of consultancies under $100,000 29
12A Major contracts 29
22B Application and operation of Freedom of Information Act 1982 29
22B Application and operation of the Whistleblowers Protection Act 2001 29
22B Compliance with the building and maintenance provisions of Building Act 1993 29
22B Employment and Conduct Principles 29
22B Statement on National Competition Policy 30
22B Statement on occupational health and safety matters 29
10 Disclosure index 31
22B Statement of availability of other information 30
Annual Report 2010-11 31 TRUST for NATURE 2010-11
32 www.trustfornature.org.au TRUST for NATURE 2010-11
Annual Report 2010-11 33 TRUST for NATURE victoria 2010-11
Trust for Nature (Victoria) Financial Statements
Comprehensive operating statement for the financial year ended 30 June 2011
Notes 2011 2010
$ $ Continuing operations Income from transactions Grant income 2(a) 4,633,573 5,744,043 Interest on investments 2(b) 856,430 849,838 Dividends 2(c) 187,558 103,392 Donations 2(d) 609,120 1,391,956 Fair value of services received free of charge or for nominal consideration 2(e) 73,023 57,139 Other income 2(f) 126,646 83,966 Total income from transactions 6,486,350 8,230,334
Expenses from transactions Employee Benefits 3(a) (3,239,292) (2,571,782) Depreciation 3(b) (159,783) (118,930) Covenant program 3(c) (1,684,342) (1,593,599) Payment of appeals & other funds 3(d) (70,982) (43,441) Other operating expenses 3(e) (1,448,610) (1,297,751) Total expenses from transactions (6,603,009) (5,625,503)
Net result from transactions (net operating balance) (116,659) 2,604,831
Other economic flows included in net result Net gain/(loss) on non-financial assets 4(a) (63,374) 661,059 Net gain/(loss) on financial instruments 4(b) 154,101 150,046 Total other economic flows included in net result 90,727 811,105 Net result (25,932) 3,415,936
Other economic flows - other non-owner changes in equity Changes in physical asset revaluation surplus 19 (8,005,415) 0 Changes to non-financial assets available-for-sale surplus 19 0 (558,681) Total other economic flows - Other non-owner changes in equity (8,005,415) (558,681) Comprehensive result (8,031,347) 2,857,255
The comprehensive operating statement should be read in conjunction with the accompanying notes.
34 www.trustfornature.org.au TRUST for NATURE victoria 2010-11
Trust for Nature (Victoria)
Balance sheet as at 30 June 2011
Notes 2011 2010
$ $ Assets Financial assets Cash and cash equivalents 18 9,102,378 2,090,627 Receivables 5 931,021 1,219,268 Investments and other financial assets 6 20,015,319 19,830,865 Other assets 7 123,843 31,647 Total financial assets 30,172,561 23,172,407 Non-financial assets Non-financial physical assets classified as held for sale 8 2,090,903 1,813,672 Property, plant and equipment 9 19,574,206 28,172,299 Total non-financial assets 21,665,109 29,985,971 Total assets 51,837,670 53,158,378 Liabilities Payables 10 686,521 629,164 Borrowings 11 36,894 19,578 Provisions 12 469,978 1,265,526 Other 13 16,131,339 8,799,825 Total liabilities 17,324,732 10,714,093 Net assets 34,512,938 42,444,285 Equity Accumulated surplus 20 11,050,058 11,967,557 Reserves 19 23,362,880 30,476,728 Contributed capital 100,000 0 Net Worth 34,512,938 42,444,285 Commitments for expenditure 15 121,438 0 Contingent liabilities and contingent assets 16 00
The balance sheet should be read in conjunction with the accompanying notes.
Annual Report 2010-11 35 The statement of changes in equity should be read i read be should equity in changes of statement The reserves to Transfer Balance at 30 June2011 30 at Balance between reserves Transfers year the for income comprehensive Other Net result for the year reserves to Transfer year the for income comprehensive Other Net result for the year July2009 1 at Balance Contributed capital Contributed June2010 30 at Balance Statement of changes in equityStatement of changes for ye the financial Trust for Nature (Victoria) Nature for Trust Notes n conjunction with the accompanying notes. withaccompanying the conjunction n Physical asset asset Physical revaluation revaluation (8,005,415) 466611290351191, 3,591,169 192,920 3,146,253 14,616,621 358,375 1,032,516 2,973,980 768,228 22,605,409 265492957295111, 2,935,161 209,547 22,605,409 ar ended 30 June 2011 surplus 667(16,627) 16,627 (558,681) 0 financial assets assets financial Available-for- revaluation revaluation TRUST fo r NATURE v ic to ria 2010-11 sale non- sale surplus 0 Donations Donations (38,819) 5,0 134,567 656,008 reserve stewardship Covenant Covenant 2,2 5,7 ,7,6 10008100034,512,938 100,000 11,050,058 3,377,669 358,375 226,126 9,5 5,7 ,7,7 11,967,557 3,276,677 358,375 091,559 reserve 59,043 Properties Properties eev Bequestreserve reserve 0,9 (891,567) 100,992 0 3,2 (150,648) 130,424 0 Accumulated 3,415,936 8,702,269 (25,932) surplus Contributions Contributions by owner by 100,000 42,444,285 0 39,587,030 0 (8,005,415) 3,415,936 (558,681) (25,932) 100,000 Total 0 0 0
36 www.trustfornature.org.au TRUST for NATURE victoria 2010-11
Trust for Nature (Victoria)
Cash flow statement for the financial year ended 30 June 2011
Notes 2011 2010
$ $ Cash flows from operating activities Receipts Receipts from Government - recurrent grant 597,924 596,700 GST recovered from the ATO 265,289 274,559 Interest received 904,836 824,940 Donations, grants and other receipts 4,866,781 8,068,029 Total receipts 6,634,830 9,764,228 Payments Payments to employees (3,123,375) (2,494,162) Payments to suppliers (3,130,003) (2,870,542) GST paid to the ATO (373,995) (600,246) Total payments (6,627,373) (5,964,950) Net cash flows from/(used in) operating activities 18(b) 7,457 3,799,278
Cash flows from investing activities
Proceeds from sale of non-financial assets 85,634 1,209,961 Proceeds from sale of shares 0 5,865 Proceeds from funds held awaiting remittance 833,812 1,000,000 Proceeds from bonds held in trust 8,500,000 0 Payments for non-financial assets land and buildings (743,561) (3,285,889) Payments to landowners (1,389,195) 0 Payments for plant and equipment (352,043) (226,439) Payments for financial assets (30,353) (1,214,450) Net cash flows from/(used in) investing activities 6,904,294 (2,510,951) Cash flows from financing activities Owner contributions from State Government 100,000 0 Net cash flows from/(used in) financing activities 100,000 0 Net increase/(decrease) in cash and cash equivalents 7,011,751 1,288,327
Cash and cash equivalents at the beginning of the financial year 2,090,627 802,300 Cash and cash equivalents at the end of the financial year 18(a) 9,102,378 2,090,627
The above cash flow statement should be read in conjunction with the accompanying notes.
Annual Report 2010-11 37 TRUST for NATURE victoria 2010-11
Notes to the financial statements Table of Contents Note 1 Summary of significant accounting policies...... 39 Note 2 Income from transactions...... 55 Note 3 Expenses from transactions...... 56 Note 4 Other economic flows...... 56 Note 5 Receivables...... 57 Note 6 Investments and other financial assets...... 58 Note 7 Other assets...... 58 Note 8 Non-financial assets classified as held for sale...... 58 Note 9 Property, plant and equipment...... 59 Note 10 Payables...... 61 Note 11 Borrowings...... 61 Note 12 Provisions...... 62 Note 13 Other liabilities disclosures...... 63 Note 14 Leases...... 64 Note 15 Commitments for expenditure...... 64 Note 16 Contingent assets and contingent liabilities...... 64 Note 17 Financial instruments...... 65 Note 18 Cash flow information...... 73 Note 19 Reserves...... 74 Note 20 Accumulated surplus...... 75 Note 21 Responsible persons...... 75 Note 22 Remuneration of auditors...... 76 Note 23 Subsequent events...... 76 Note 24 Glossary of terms...... 77 Accountable officer’s, chief finance officer’s and chairman’s declaration...... 80
38 www.trustfornature.org.au TRUST for NATURE victoria 2010-11
Notes to the financial statements for the financial year ended 30 June 2011
Note 1 Summary of significant accounting policies The annual financial statements represent the audited general purpose financial statements for Trust for Nature. To gain a better understanding of the terminology used in this report, a glossary of terms can be found in Note 25.
A. Statement of compliance These financial statements have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards, including interpretations (AASs). AASs include Australian equivalents to International Financial Reporting Standards. In complying with AASs, the entity has, where relevant, applied those paragraphs applicable to not-for-profit entities. The annual financial statements were authorised for issue by the Board of Trustees for Trust for Nature (Victoria) on the 2nd of September 2011.
B. Basis of preparation and measurement The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. These financial statements are presented in Australian dollars, the functional and presentation currency of the Trust. In the application of AASs, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period, are disclosed throughout the notes to the financial statements. The report has been prepared in accordance with the historical cost convention except for: • non-current physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value • the fair value of an asset other than land is generally based on its depreciated replacement value • available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised.
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Note 1 Summary of significant accounting policies (continued)
Historical cost is based on the fair values of the consideration given in exchange for assets. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2011 and the comparative information presented for the year ended 30 June 2010.
C. Reporting entity The financial statements cover the Trust for Nature (Victoria) as an individual reporting entity. The Trust is a body corporate established under the Victorian Conservation Trust Act 1972. Its principal address is: Level 5, 379 Collins Street Melbourne VIC 3000
The financial statements include all the controlled activities of the Trust for Nature. Objectives and funding The Trust operates under the Victorian Conservation Trust Act 1972 and the Trust’s objectives are to: • conserve areas which are ecologically significant, of natural interest or beauty, or of historical interest • conserve wildlife and native plants • conserve and create areas for scientific study • encourage and assist in the conservation and creation of areas of natural beauty or interest for recreation and/or educational use by the public.
The objectives under the Act form the basis of the goals and operations of the Trust.
Trust for Nature has five goals for driving nature conservation and operational excellence: • maximise the biodiversity outcomes of nature conservation actions • protect and manage land for biodiversity • achieve growth and excellence in its business • encourage investment in nature conservation • capture new opportunities for achieving biodiversity gains. The Trust obtains its funding from a number of sources including State and Federal Governments, donations and bequests, investment income and the sale of goods and services.
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Note 1 Summary of significant accounting policies (continued)
D. Scope and presentation of financial statements
Comprehensive operating statement Income and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of financial statements. ‘Transactions’ and ‘other economic flows’ are defined by the Australian system of government finance statistics: concepts, sources and methods 2005, Cat. No. 5514.0 published by the Australian Bureau of Statistics (see Note 25). ‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. ‘Other economic flows’ are changes arising from market re-measurements. They include gains and losses from disposals, revaluations and impairments of non-current physical and intangible assets; actuarial gains and losses arising from defined benefit superannuation plans; fair value changes of financial instruments and agricultural assets; and depletion of natural assets (non-produced) from their use or removal. The net result is equivalent to profit or loss derived in accordance with AASBs.
Balance sheet Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the notes, where relevant.
Statement of changes in equity The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income related to other non-owner changes in equity.
Cash flow statement Cash flows are classified according to whether or not they arise from operating activities, investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows.
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Note 1 Summary of significant accounting policies (continued)
E. Income from transactions
Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent it is earned. Unearned income at reporting date is reported as income received in advance. Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes.
Interest income Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. Interest income includes interest received on bank term deposits and other investments. Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are reported as part of income from other economic flows in the net result or as unrealised gains and losses taken directly to equity, forming part of the total change in net worth in the comprehensive result.
Sales of goods and services Income from the provision of services Income from the provision of services is recognised by reference to the stage of completion of the contract. The income is recognised when the amount of the income, stage of completion and transaction costs incurred can be reliably measured, and it is probable that the economic benefits associated with the transaction will flow to the entity. The stage of completion is measured by reference to completion of milestones. Income from sale of goods Income from the sale of goods is recognised by the Trust when: • the significant risks and rewards of ownership of the goods have transferred to the buyer • the Trust retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold • the amount of income can be reliably measured; • it is probable that the economic benefits associated with the transaction will flow to the Trust • costs incurred or to be incurred in respect of the transaction can be measured reliably.
Grant income Grants are recognised as income when the Trust gains control of the underlying assets in accordance with AASB 1004 Contributions. For reciprocal grants, the Trust is deemed to have assumed control when the performance has occurred under the grant. For non-reciprocal grants, the Trust is deemed to have assumed control when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.
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Note 1 Summary of significant accounting policies (continued)
Fair value of assets and services received free of charge or for nominal consideration If applicable, material contributions of resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another government department or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such a transfer will be recognised at carrying value. Contributions in the form of services are only recognised when fair value can be reliably determined and the services would have been purchased if not donated.
Other income Dividend income Dividend revenue is recognised when the right to receive payment is established.
Donation income Donation revenue is recognised when the cash is received. Donations and bequests of shares and properties are brought to account at their values on the date of transfer.
F. Expenses from transactions Employee expenses Expenses for employee benefits are recognised when incurred.
Superannuation – State superannuation defined benefit plans There are no defined benefit superannuation contribution plans.
Depreciation and amortisation All infrastructure assets, buildings, plant and equipment and other non-current physical assets (excluding items under operating leases, assets held-for-sale and investment properties) that have a limited useful life are depreciated. Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period. Note 9 provides details on the estimated useful lives that are used in the calculation of depreciation on property, plant and equipment. Land which is considered to have an indefinite life, is not depreciated. Depreciation is not recognised in respect of such assets as their service potential has not, in any material sense, been consumed during the reporting period.
Interest expense Interest expenses are recognised as expenses in the period in which they are incurred. Other operating expenses Other operating expenses generally represent the day to day running costs incurred in normal operations. Supplies and services Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred.
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Note 1 Summary of significant accounting policies (continued)
G. Other economic flows included in net result
Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. These include:
Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets.
Disposal of non-financial assets Any gain or loss on the sale of non-financial assets is recognised at the date that control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time.
Impairment of non-financial assets All assets are assessed annually for indications of impairment except for: • financial assets (refer Note 1(H)) • non-financial physical assets held for sale (refer Note 1(I)). If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off as an other economic flow, except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset. 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. 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.
Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost, and disposals of financial assets.
Revaluations of financial instruments at fair value The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is reported as part of income from transactions.
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Note 1 Summary of significant accounting policies (continued)
Other gains/(losses) from other economic flows Other gains/(losses) from other economic flows include the gains or losses from: • transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition or reclassification; and • the revaluation of the present value of the long service leave liability due to changes in the bond interest rates.
H. Financial assets
Cash and deposits Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as borrowings on the balance sheet.
Receivables Receivables consist predominantly of debtors in relation to goods and services, accrued investment income and GST input tax credits recoverable. Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any accumulated impairment. A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified.
Investments and other financial assets Investments are recognised and de-recognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. The Trust classifies its other investments into the following categories: financial assets at fair value through profit or loss; loans and receivables; held-to-maturity investments; and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition.
The Trust assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.
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Note 1 Summary of significant accounting policies (continued)
Financial assets at fair value through profit or loss Investments held for trading purposes are stated at fair value, with any resultant gain or loss recognised in profit or loss as other economic flows. Any dividend or interest earned on the financial asset is recognised in profit or loss as transactions.
Loans and receivables Term deposits with maturity greater than three months, trade receivables, loans and other receivables are recorded at amortised cost, using the effective interest method, less impairment. The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.
Available-for-sale financial assets Other investments held by the Trust are classified as being available-for-sale and are stated at fair value. Gains and losses arising from changes in fair value are recognised directly in equity until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in profit or loss for the period. Fair value is determined in the manner described in Note 17.
Held-to-maturity investments Where the Trust has the positive intent and ability to hold investments to maturity, they are stated at amortised cost less impairment losses.
Impairment of financial assets The Trust assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. All financial assets, except those measured at fair value through profit or loss, are subject to annual review for impairment. Bad and doubtful debts are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. The allowance for doubtful receivables and bad debts not written off by mutual consent are adjusted as ‘other economic flows’.
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Note 1 Summary of significant accounting policies (continued)
I. Non-financial assets
Non-financial physical assets classified as held for sale, including disposal group assets Non-financial physical assets (and disposal group assets) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation. Non-financial assets, disposal groups, and related liabilities are treated as current and classified as held-for-sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset’s sale (or disposal group sale) is expected to be completed within 12 months from the date of classification.
Property, plant and equipment All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment.
Revaluations of non-current physical assets Non-current physical assets are measured at fair value in accordance with FRD 103D issued by the Minister for Finance. A full revaluation normally occurs every five years, based on the asset’s government purpose classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value. Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are recognised in other comprehensive income and accumulated in equity under the revaluation surplus, except that the net revaluation increase shall be recognised in the net result to the extent that it reverses a net revaluation decrease in respect of the same class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result. Net revaluation decreases are recognised immediately as expenses (other economic flows) in the net result, except that the net revaluation decrease shall be recognised in other comprehensive income to the extent that a credit balance exists in the revaluation surplus in respect of the same class of property, plant and equipment. The net revaluation decrease recognised in other comprehensive income reduces the amount accumulated in equity under revaluation surplus. Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment, are offset against one another within that class but are not offset in respect of assets in different classes. Any revaluation surplus is not normally transferred to accumulated funds on de-recognition of the relevant asset.
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Note 1 Summary of significant accounting policies (continued)
J. Liabilities
Payables
Payables consist predominantly of accounts payable and other sundry liabilities. Accounts payable represent liabilities for goods and services provided to the Trust prior to the end of the financial year that are unpaid, and arise when the Trust becomes obliged to make future payments in respect of the purchase of those goods and services. Other liabilities included in payables mainly consist of unearned/prepaid income, goods and services tax and fringe benefits tax payables. Payables are initially recognised at fair value, being the cost of the goods and services, and subsequently measured at amortised cost. Borrowings
Borrowings are initially measured at fair value, being the cost of the borrowings, net of transaction costs (refer to Note 1(K) Leases).
Subsequent to initial recognition, borrowings are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in net result over the period of the borrowing using the effective interest method. Provisions Provisions are recognised when the Trust has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows. Employee benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.
(i) Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values. Those liabilities that are not expected to be settled within 12 months are recognised in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.
(ii) Long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefits. Current liability – unconditional LSL is disclosed in the notes to the financial statements as a current liability even where the Trust does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.
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Note 1 Summary of significant accounting policies (continued)
The components of this current LSL liability are measured at: • present value - component that the Trust does not expect to settle within 12 months • nominal value - component that the Trust expects to settle within 12 months. Non-current liability – conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value. Gain or loss following revaluation of the present value of non-current LSL liability due to changes in bond interest rates is recognised as an other economic flow (refer to Note 1(G)).
(iii) Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Trust recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.
Employee benefits on-costs Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and LSL accrued while on LSL taken in service) are recognised separately from provision for employee benefits.
K. Leases
A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases.
Finance leases
Trust as lessee At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum finance lease payments are apportioned between reduction of the outstanding lease liability, and periodic finance expense which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement. Contingent rentals associated with finance leases are recognised as an expense in the period in which they are incurred.
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Note 1 Summary of significant accounting policies (continued)
Operating leases
Trust as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet. All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments. In the event that lease incentives are received to enter into operating leases, the aggregate cost of incentives are recognised as a reduction of rental expense over the lease term on a straight-line basis, unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
L. Commitments Commitments are disclosed at their nominal value and inclusive of the GST payable.
M. Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.
N. Rounding of amounts Amounts in the financial statements have been rounded to the nearest dollar.
O. Tax status The Trust is exempt from income tax.
P. Allocation between current and non-current In the determination of whether an asset other than cash and cash equivalents is current, consideration is given as to whether the Trust expects to realise or consume the asset within the twelve months after the reporting date. All cash, cash equivalents and property held for re-sale are deemed current. All other assets are recognised as non-current. Current liabilities are recognised when the liability is due to be settled within the twelve months after reporting date or the Trust does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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Note 1 Summary of significant accounting policies (continued)
Q. Goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow. Commitments and contingent assets or liabilities are presented on a gross basis.
R. Events after reporting date Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Trust and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed in the reporting period. Note that disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent reporting periods.
S. New accounting standards and interpretations Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2011 reporting period. As at 30 June 2011, the following standards and interpretations which apply to the Trust had been issued but were not mandatory for the financial year ending 30 June 2011. The Trust has not, and does not intend to, adopt these standards early.
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Note 1 Summary of significant accounting policies (continued)
Standard / Interpretation Summary Applicable for annual Impact on financial reporting periods statements beginning or ending on AASB 9 Financial This standard simplifies Beginning Detail of impact is instruments requirements for the 1 Jan 2013 still being assessed. classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).
AASB 124 Related Party Government related entities Beginning Preliminary Disclosures (Dec 2009) have been granted partial 1 Jan 2011 assessment exemption with certain suggests the impact disclosure requirements. is insignificant. However, the Trust is still assessing the detailed impact and whether to early adopt. AASB 1053 Application This Standard establishes a Beginning 1 July The Victorian of Tiers of Australian differential financial reporting 2013 Government is Accounting Standards framework consisting of two currently considering tiers of reporting requirements the impacts of for preparing general purpose Reduced Disclosure financial statements. Requirements (RDRs) for certain public sector entities and has not decided if RDRs will be implemented to the Victorian Public Sector.
AASB 2009-11 This Standard gives effect to Beginning Detail of impact is Amendments to consequential changes arising 1 Jan 2013 still being assessed. Australian Accounting from the issuance of AASB 9. Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12]
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Note 1 Summary of significant accounting policies (continued)
Standard / Interpretation Summary Applicable for annual Impact on financial reporting periods statements beginning or ending on AASB 2010-2 This Standard makes Beginning 1 July Does not affect Amendments to amendments to many 2013 financial Australian Accounting Australian Accounting measurement or Standards arising from Standards, including recognition, so is Reduced Disclosure Interpretations, to introduce not expected to Requirements reduced disclosure have any impact on requirements to the financial result or pronouncements for position. May application by certain types reduce some note of entities. disclosures in financial statements. AASB 2010-4 Further This Standard makes Beginning No significant Amendments to numerous improvements 1 Jan 2011 impact on the Australian Accounting designed to enhance the financial Standards arising from clarity of standards. statements. the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13] AASB 2010-5 This amendment contains Beginning No significant Amendments to editorial corrections to a 1 Jan 2011 impact on the Australian Accounting range of Australian financial Standards [AASB 1, 3, Accounting Standards and statements. 4, 5, 101, 107, 112, Interpretations, which 118, 119, 121, 132, includes amendments to 133, 134, 137, 139, reflect changes made to the 140, 1023 & 1038 and text of IFRSs by the IASB. Interpretations 112, 115, 127, 132 & 1042] AASB 2010-7 These amendments are in Beginning This amendment Amendments to relation to the introduction of 1 Jan 2013 may have an Australian Accounting AASB 9. impact on Standards arising from departments and AASB 9 (December public sector bodies 2010) [AASB 1, 3, 4, 5, as AASB 9 is a new 7, 101, 102, 108, 112, standard and it 118, 120, 121, 127, changes the 128, 131, 132, 136, requirements of 137, 139, 1023 & 1038 numerous and Interpretations 2, 5, standards. 10, 12, 19 & 127] Detail of impact is still being assessed.
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Note 1 Summary of significant accounting policies (continued)
Standard / Interpretation Summary Applicable for annual Impact on financial reporting periods statements beginning or ending on AASB 2011-1 This amendment affects Beginning This amendment Amendments to multiple Australian 1 July 2011 will have no Australian Accounting Accounting Standards and significant impact Standards arising from AASB Interpretations for the on public sector the Trans-Tasman objective of increased bodies. Convergence Project alignment with IFRSs and [AASB 1, AASB 5, achieving harmonisation AASB 101, AASB 107, between both Australian and AASB 108, AASB 121, New Zealand Standards. It AASB 128, AASB 132 achieves this by removing & AASB 134 and guidance and definitions Interpretations 2, 112 & from some Australian 113] Accounting Standards, without changing their requirements. AASB 2011-2 The objective of this Beginning The Victorian Amendments to amendment is to include 1 July 2013 Government is Australian Accounting some additional disclosure currently Standards arising from from the Trans-Tasman considering the the Trans-Tasman Convergence Project and to impacts of Reduced Convergence Project – reduce disclosure Disclosure Reduced Disclosure requirements for entities Requirements Requirements preparing general purpose (RDRs) and has not [AASB 101 & AASB financial statements under decided if RDRs 1054] Australian Accounting will be implemented Standards – Reduced to Victorian Public Disclosure Requirements. Sector.
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Trust for Nature (Victoria)
Note 2 Income from transactions
2011 2010 $ $ (a) Grant income Treasurer of Victoria - Operating Grant 597,924 596,700 Government grants 3,712,516 2,228,976 Government grants used to acquire properties (a) 155,067 2,584,373 Project grants and property grants, consulting - other parties 168,066 333,994 Total grants and other transfers 4,633,573 5,744,043 Notes: (a) From time to time Trust for Nature receives grant revenue or donation revenue which is used to acquire properties. Such transactions result in an accounting profit equal to the acquisition cost which resides in the accumulated surplus (Note 20) until such time as the property is surrendered or sold. One property was acquired during 2010-11 to the value of $155,067 (2009-10: four properties to the value of $2,584,373). Refer also to Note 3(c).
(b) Interest on Investments Interest on bank deposits 856,430 849,838 Total interest on investments 856,430 849,838
(c) Dividends Other entities 187,558 103,392 Total dividends 187,558 103,392
(d) Donations General donations 411,094 361,308 Donations for appeals and properties 98,026 80,638 General bequests 100,000 925,273 Bequest of equities 0 24,737 Total donations 609,120 1,391,956
(e) Fair value of services received free of charge or for nominal consideration(a) Legal services 73,023 57,139 Total fair value of services received free of charge or for nominal consideration 73,023 57,139 Notes: (a) In previous year financial statements this amount has been included in Note 3(c) Covenant program expenditure
(f) Other revenue Rental income 17,334 13,771 Sale of goods 7,062 7,513 Other 102,250 62,682 Total other revenue 126,646 83,966
Annual Report 2010-11 55 TRUST for NATURE victoria 2010-11 Trust for Nature (Victoria)
TrustNote 3 for ExpensesNature (Victoria) from transactions
Note 3 Expenses from transactions 2011 2010 $ $ 2011 2010 (a) Employee expenses $ $ Salaries, wages and long service leave (2,943,706) (2,331,642) (a) Employee expenses Fringe benefits tax (17,914) (18,256) Salaries, wages and long service leave (2,943,706) (2,331,642) Defined contribution superannuation expense (261,542) (203,233) Fringe benefits tax (17,914) (18,256) Other employee expenses (16,130) (18,651) Defined contribution superannuation expense (261,542) (203,233) Total employee expenses (3,239,292) (2,571,782) Other employee expenses (16,130) (18,651) Total employee expenses (3,239,292) (2,571,782) (b) Depreciation and amortisation Buildings (69,058) (69,058) (b) Depreciation and amortisation Plant & equipment (51,783) (29,531) Buildings (69,058) (69,058) Motor vehicles (27,069) (20,341) Plant & equipment (51,783) (29,531) Leasehold improvements (11,873) 0 Motor vehicles (27,069) (20,341) Total depreciation and amortisation (159,783) (118,930) Leasehold improvements (11,873) 0 (c)Total Covenant depreciation program and amortisation (159,783) (118,930) Legal services received free of charge or for nominal consideration (73,023) (57,139) (c) Covenant program Covenant program expenditure (1,426,989) (621,242) Legal services received free of charge or for nominal consideration (73,023) (57,139) Cost of land surrendered to the Crown for nil value (a) (184,330) (915,218) Covenant program expenditure (1,426,989) (621,242) Total covenant programs (1,684,342) (1,593,599) Cost of land surrendered to the Crown for nil value (a) (184,330) (915,218) TotalNotes: covenant programs (1,684,342) (1,593,599) (a) Agreement was reached to surrender seven properties (2009-10: two properties) to the Crown.Notes: (a) Agreement was reached to surrender seven properties (2009-10: two properties) to the Crown.(d) Payments of appeals and other funds Payments of appeals and other funds (70,982) (43,441) (d) Payments of appeals and other funds Total payments of appeals and other funds (70,982) (43,441) Payments of appeals and other funds (70,982) (43,441) Total payments of appeals and other funds (70,982) (43,441) (e) Other operating expenses Occupancy (279,852) (226,516) (e) Other operating expenses Supplies and services (1,168,758) (1,071,235) Occupancy (279,852) (226,516) Total other operating expenses (1,448,610) (1,297,751) Supplies and services (1,168,758) (1,071,235) Total other operating expenses (1,448,610) (1,297,751)
Note 4 Other economic flows included in net result
Note 4 Other economic flows included in net result 2011 2010 $ $ 2011 2010 (a) Net gain/(loss) on non-financial assets $ $ Net gain/(loss) on disposal of physical assets - land (69,909) 665,893 (a) Net gain/(loss) on non-financial assets Net gain/(loss) on disposal of physical assets - plant & equipment 6,535 (4,834) Net gain/(loss) on disposal of physical assets - land (69,909) 665,893 Total net gain/(loss) on non-financial assets (63,374) 661,059 Net gain/(loss) on disposal of physical assets - plant & equipment 6,535 (4,834) Total net gain/(loss) on non-financial assets (63,374) 661,059 (b) Net gain/(loss) on financial instruments Net gain/(loss) on disposal of financial investments 0 (1,785) (b) Net gain/(loss) on financial instruments Net gain/(loss) arising from revaluation of financial assets at fair value 154,101 151,831 Net gain/(loss) on disposal of financial investments 0 (1,785) Total net gain/(loss) on financial instruments 154,101 150,046 Net gain/(loss) arising from revaluation of financial assets at fair value 154,101 151,831 Total net gain/(loss) on financial instruments 154,101 150,046 56 www.trustfornature.org.au TRUST for NATURE victoria 2010-11
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Note 5 Receivables
2011 2010 $ $ Current receivables
Contractual Interest receivable 414,090 571,772 Other receivables (a) 353,396 593,237 Total current receivables 767,486 1,165,009
Non-current receivables
Contractual Interest receivable 163,535 54,259 Total non-current receivables 163,535 54,259
Total receivables 931,021 1,219,268 Notes: (a) The average credit period on sales of services is 30 days. No interest is charged on other receivables.
(a) Ageing analysis of contractual receivables Please refer to Table 17.4 in Note 17 for the ageing analysis of contractual receivables. (b) Nature and extent of risk arising from contractual receivables Please refer to Note 17(b) for the nature and extent of credit risk arising from contractual receivables.
Annual Report 2010-11 57 Trust for Nature (Victoria) TRUST for NATURE victoria 2010-11 Trust for Nature (Victoria) Note 6 Investments and other financial assets Trust for Nature (Victoria) Note 6 Investments and other financial assets 2011 2010 Note 6 Investments and other financial assets 2011$ 2010$ Current investments and other financial assets $ $ (a)(e) 2011 2010 CurrentAustralian investments dollar term and deposits other financial > 3 months assets 13,038,541 15,462,536 $ $ Total current investments and other financial(a)(e) assets 13,038,541 15,462,536 CurrentAustralian investments dollar term and deposits other financial > 3 months assets 13,038,541 15,462,536 Total current investments and other financial(a)(e) assets 13,038,541 15,462,536 Non-currentAustralian investments dollar term deposits and other > 3 financialmonths assets 13,038,541 15,462,536 Total current investments and other financial(a) assets 13,038,541 15,462,536 Non-currentAustralian investments dollar term deposits and other > 12 financial months assets 4,318,290 1,964,128 (b)(c) Non-currentManagedAustralian investmentsinvestment dollar term schemesdeposits and other > 12 financial months(a) assets 4,318,2902,641,401 1,964,1282,387,114 (b)(d) ManagedListedAustralian securities investment dollar term schemesdeposits (b)(c)> 12 months(a) 4,318,2902,641,40117,087 1,964,1282,387,114 17,087 Total non-current investments(b)(d) and(b)(c) other financial assets 6,976,778 4,368,329 ManagedListed securities investment schemes 2,641,40117,087 2,387,114 17,087 TotalListed non-currentinvestments securities investmentsand(b)(d) other financial and other assets financial assets 20,015,3196,976,77817,087 19,830,865 4,368,329 17,087 Notes: Total non-currentinvestments investmentsand other financial and other assets financial assets 20,015,3196,976,778 19,830,865 4,368,329 (a) Term deposits under 'investments and other financial assets' class include only term deposits with maturity greater than 90 Notes: Totaldays. investmentsTerm deposits and have other an interest financial rate assets between 5.3% and 6.75%. 20,015,319 19,830,865 (a) Term deposits under 'investments and other financial assets' class include only term deposits with maturity greater than 90 Notes: (b)days. The Term Trust deposits designated have all an its interest equities rate and between manag ed5.3% investment and 6.75%. schemes at fair value through the profit or loss. Therefore, unless(a) Term they deposits are part under of a 'investmentsdisposal group and held other for finasale,ncial all equitiesassets' classand managed include only investment term deposits schemes with ar maturitye classified greater as non- than 90 current.days.(b) The Term TrustThis deposits isdesignated consistent have all withan its interest theequities Trust's rate and purposbetween manage ofed5.3% holding investment and the6.75%. investmentschemes at for fair long-term value through managemen the protfit of or risk, loss. not Therefore, for short- unless they are part of a disposal group held for sale, all equities and managed investment schemes are classified as non- term(b) The profit Trust gain. designated all its equities and managed investment schemes at fair value through the profit or loss. Therefore, current. This is consistent with the Trust's purpose of holding the investment for long-term management of risk, not for short- unless they are part of a disposal group held for sale, all equities and managed investment schemes are classified as non- (c)term The profit managed gain. investment schemes are managed by the Myer Family Company. current. This is consistent with the Trust's purpose of holding the investment for long-term management of risk, not for short- (d) Shares in Teys Income Builder were received in a bequest in 2009-10. Its responsible entity, TPFL, was placed in term(c) The profit managed gain. investment schemes are managed by the Myer Family Company. administration on 5 March 2010 and into liquidation on 20 April 2010. The shares have been valued at the most recent estimated(c)(d) TheShares managed value in Teys per investment Income unit provided Builder schemes in were April are received 2010 managed by inthe a by bequestliquidator the Myer in of 2009-10. Familythe responsible Company. Its responsible entity. entity, TPFL, was placed in administration on 5 March 2010 and into liquidation on 20 April 2010. The shares have been valued at the most recent (d) Shares in Teys Income Builder were received in a bequest in 2009-10. Its responsible entity, TPFL, was placed in estimated(e) This balance value perincludes unit provided a term deposit in April in 2010 the amoby theunt liquidator of $89,561 of theheld responsible as security entity. against bank guarantees issued for rental administrationsites. The bank on guarantees 5 March 2010 outstanding and into at liquidation balance sonheet 20 dateApril amounted 2010. The to shares $89,561 have (2010: been $nil). valued at the most recent estimated(e) This balance value perincludes unit provided a term deposit in April in 2010 the amoby theunt liquidator of $89,561 of theheld responsible as security entity. against bank guarantees issued for rental sites. The bank guarantees outstanding at balance sheet date amounted to $89,561 (2010: $nil). (e)(a) This Ageing balance analysis includes of investments a term deposit and in otherthe amo finanunt cialof $89,561 assets held as security against bank guarantees issued for rental sites.Please The bank refer guaranteesto Table 17.4 outstanding in Note 17 at for balance the agein sheetg analysis date amounted of investments to $89,561 and other(2010: financial $nil). assets. (b)(a) AgeingNature andanalysis extent of of investments risk arising and from other investm finanentscial andassets other financial assets Please refer to Table 17.4 in Note 17 for the ageing analysis of investments and other financial assets. (a) PleaseAgeing refer analysis to Note of 17investments for the nature and and other extent finan ofcial risks assets arising from investments and other financial assets. (b) Nature and extent of risk arising from investments and other financial assets Please refer to Table 17.4 in Note 17 for the ageing analysis of investments and other financial assets. Please refer to Note 17 for the nature and extent of risks arising from investments and other financial assets. (b) Nature and extent of risk arising from investments and other financial assets NotePlease 7 referOther to Noteassets 17 for the nature and extent of risks arising from investments and other financial assets. Note 7 Other assets 2011 2010 Note 7 Other assets 2011$ 2010$ Current other assets 2011$ 2010$ CurrentPrepayments other assets 14,518 8,421 $ $ Consulting services provided but not yet invoiced 92,925 0 CurrentPrepayments other assets 14,518 8,421 Deposits 16,400 23,226 ConsultingPrepayments services provided but not yet invoiced 14,51892,925 8,4210 TotalConsultingDeposits other assets services provided but not yet invoiced 123,84392,92516,400 23,22631,6470 TotalDeposits other assets 123,84316,400 23,22631,647 Total other assets 123,843 31,647 Note 8 Non-financial assets classified as held for sale Note 8 Non-financial assets classified as held for sale 2011 2010 Note 8 Non-financial assets classified as held for sale 2011$ 2010$ Current 2011$ 2010$ CurrentFreehold land held for sale 1,969,903$ 1,738,072$ CurrentBuildingsFreehold landheld heldfor sale for sale 1,969,903121,000 1,738,072 75,600 TotalBuildingsFreehold non-financial landheld heldfor assets sale for sale classified as held for sale 1,969,9032,090,903121,000 1,738,0721,813,672 75,600 TotalBuildings non-financial held for assets sale classified as held for sale 2,090,903121,000 1,813,672 75,600 The Trust intends to dispose of certain freehold land within the next twelve months. This includes Revolving Fund land that was acquiredTotal non-financial for purposes assets of conservation classified with as held the inte forntion sale of reselling it with covenants established to ensure2,090,903 particular natural 1,813,672 Theaspects Trust of intendsthe properties to dispose are ofconserved. certain freehold A search land is withinunderway the nextfor buyers. twelve Nomonths. impairment This includes loss was Rev recogolvingnised Fund on land that was acquired for purposes of conservation with the intention of reselling it with covenants established to ensure particular natural reclassificationThe Trust intends of theto dispose freehold of land certain as held freehold for s aleland or within at reporting the next date. twelve months. This includes Revolving Fund land that was aspects of the properties are conserved. A search is underway for buyers. No impairment loss was recognised on acquired for purposes of conservation with the intention of reselling it with covenants established to ensure particular natural reclassificationLand and buildings of the held freehold for sale land are as valued held forat thesale lower or at of reporting their carrying date. amount and fair value less costs to sell. aspects of the properties are conserved. A search is underway for buyers. No impairment loss was recognised on reclassificationLand and buildings of the held freehold for sale land are as valued held forat thesale lower 58or at ofreporting theirwww.trustfornature.org.au carrying date. amount and fair value less costs to sell. Land and buildings held for sale are valued at the lower of their carrying amount and fair value less costs to sell. TRUST for NATURE victoria 2010-11
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Note 9 Property, plant and equipment
2011 2010 $ $
Land at fair value 16,656,098 26,040,568 16,656,098 26,040,568
Buildings at cost 0 394,318 Less accumulated depreciation 0 (41,491) 0 352,827
Buildings at fair value 2,333,000 1,827,630 Less accumulated depreciation 0 (355,200) 2,333,000 1,472,430
Leasehold improvements at fair value 224,637 0 Less accumulated depreciation (11,873) 0 212,764 0
Plant and equipment at cost 506,261 377,376 Less accumulated depreciation (293,139) (241,170) 213,122 136,206
Motor vehicles at cost 227,751 238,631 Less accumulated depreciation (68,529) (68,363) 159,222 170,268
Total property, plant and equipment 19,574,206 28,172,299
Properties owned by the Trust are acquired either by purchase or by donation. An independent valuation of the Trust's land and buildings was performed by Patel Dore Valuers Pty Ltd under contract to the Valuer-General Victoria. The effective date of the valuation is 30 June 2011. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction.
The following useful lives were used in the calculation of depreciation:
2011 2010 Buildings 40 years 40 years Leasehold improvements Lease term Plant and equipment 3 to 10 years 3 to 10 years Vehicles 7 years 7 years
Table 9.1: Aggregate depreciation recognised as an expense during the year
2011 2010 $ $ Buildings 69,058 69,058 Plant & equipment 51,783 29,531 Motor vehicles 27,069 20,341 Leasehold improvements 11,873 0 Total property, plant and equipment 159,783 118,930
Annual Report 2010-11 59 Depreciation expense Depreciation (7,479,318) increments/decrements revaluation Net Closing balance Closing Reclassify asset type asset Reclassify Opening balance Opening Transfer to assets held for sale for held assets to Transfer Disposals Additions Table 9.2: Movements in carrying amounts in carrying Movements 9.2: Table Note 9 Property, plant and equipment Trust for Nature (Victoria) Nature for Trust (2,110,219) 6660826,040,568 16,656,098 600582,1,3 5,2 6,8 1, 362,685 352,827 23,611,737 26,040,568 Land at fair value Buildings at cost Buildings at fai at Buildings cost at Buildings value fair at Land 0,6 2,428,831 205,067 (continued) 2010 201 1 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 (342,969) 988 988 5,0)(920 (11,873) (59,200) (59,200) (9,858) (9,858) ,7,3 212,764 1,472,430 0 2,333,00 352,827 0 TRUST fo r NATURE v ic to ria 2010-11 (76,399) 653,200 342,969 7,3 1,504,926 472,430 674224,637 26,704 0 r value r Leasehold improvements Leasehold 0 5,8)(29, (51,783) 0 ,0 28,172,299 4,206 19,57 170,268 159,222 136,206 213,122 0 3,0 01610286,4 28,172, 66,143 170,268 80,156 136,206 0 01,552 2,7 590,437 155,665 32,034 90,352 128,699 0 Plant and equipment at at equipment and Plant cost (2,412) 0 239 1,1)(361 22269 (35,970) (2,202,629) (33,611) (16,011) (2,359) 0 3)(709 2,4)(5,8)(118,930) (159,783) (20,341) (27,069) 531) Motor vehicles at cost at vehicles Motor 2,412 0 (6,826,118) 9 25,625,647 299 Total 0 00 0 0
60 www.trustfornature.org.au TRUST for NATURE victoria 2010-11
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Note 10 Payables
2011 2010 $ $ Current payables Contractual Supplies and services(a) 609,167 339,990 609,167 339,990
Statutory Net GST payable 18,035 244,642 Group taxes payables 59,319 44,532 77,354 289,174 Total current payables 686,521 629,164
Total payables 686,521 629,164 Notes: (a) The average credit period on sales of services is 30 days. No interest is charged on other payables.
(a) Maturity analysis of borrowings Please refer to Table 17.5 in Note 17 for the maturity analysis of borrowings. (b) Nature and extent of risk arising from contractual payables Please refer to Note 17 for the nature and extent of credit risk arising from contractual payables.
Note 11 Borrowings
2011 2010 $ $ Current borrowings Lease liabilities (a) 29,325 19,578 Other borrowings (b) 7,569 0 Total borrowings 36,894 19,578 Notes: (a) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the event of default. (b) Other borrowings include unsecured purchasing card transactions which are repaid within the interest-free period.
(a) Maturity analysis of borrowings Please refer to Table 17.5 in Note 17 for the maturity analysis of borrowings. (b) Nature and extent of risk arising from contractual payables Please refer to Note 17 for the nature and extent of credit risk arising from contractual payables. (c) Defaults and breaches During the current and prior year, there were no defaults or breaches of any of the loans.
Annual Report 2010-11 61 TRUST for NATURE victoria 2010-11
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Note 12 Provisions
2011 2010 $ $ Current provisions Employee benefits (a) Unconditional annual leave entitlements and expected to be settled < 12 months (b) 259,268 186,564 Unconditional long service leave entitlements and expected to be settled < 12 months (b) 3,770 2,211 Unconditional long service leave entitlements and expected to be settled > 12 months (c) 93,737 89,238 356,775 278,013 Provisions related to employee benefit on-costs - Unconditional and expected to be settled within 12 months (b) 26,304 18,878 - Unconditional and expected to be settled after 12 months (c) 9,374 8,924 35,678 27,802 Other provisions Provision for surrender of properties to Crown (d) (see also note 12(a)) 0 915,218 0 915,218 Total current provisions 392,453 1,221,033 Non-current provisions Employee benefits (c) (note 12(a)) 67,065 40,448 Provisions related to employee benefit on-costs (c) 6,707 4,045 Make-good provision (e) (see also note 12(a)) 3,753 0 Total non-current provisions 77,525 44,493 Total provisions 469,978 1,265,526 Notes: (a) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (b) The amounts disclosed are nominal amounts. (c) The amounts disclosed are discounted to present values. (d) Agreement has been reached with the Department of Sustainability and Environment dated 30 April 2010 to surrender two properties to the Crown. These properties were acquired during 2009-10 using grant revenue (see also note 2(a) and 3(c)). (e) In accordance with the lease agreement over the principal office, the Trust must remove any leasehold improvements from the leased premises and restore the premises to its original condition at the end of the lease term.
(a) Movement in provisions Provision for Make-good Total surrender of properties to Crown 2011 2011 2011 $ Opening balance 915,218 0 915,218 Additional provisions recognised 0 3,753 3,753 Amounts used (915,218) 0 (915,218) Unused amounts reversed during the period 00 0 Closing balance 0 3,753 3,753
Current 00 0 Non-current 0 3,753 3,753 Closing balance 0 3,753 3,753
62 www.trustfornature.org.au TRUST for NATURE victoria 2010-11
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Note 13 Other liability disclosures 2011 2010 $ $ Current other liability disclosures Funds held awaiting remittance(a): Land Conservation Strategy 13,284 12,886 Marcus Knapple 2,206 2,140 Potter Farmland 44,669 43,331 Dowell Creek 57,604 55,879 AGL - Growling Grass Frog 132,475 148,750 Hume - Native Grasslands 208,630 199,976 Pimelea Fund 870,763 868,996 AV Jennings offset trust 0 1,015,801 Landowner payments held in trust(b) 3,457,747 3,862,716 Bonds held in trust - Barwon Water(c) 7,210,939 0 Bonds held in trust - Hydrox Nominees(c) 1,523,117 0 Deferred stewardship revenue 590,204 77,538 Other project funds committed 855,021 972,405 Other revenue received in advance 1,164,680 1,539,407 Total current other liability disclosures 16,131,339 8,799,825 Total other liability disclosures 16,131,339 8,799,825 Notes: (a) Funds held awaiting remittance are funds the Trust holds on behalf of third parties for specific projects. The funds are spent in accordance with the agreement the Trust has with the third party. (b) Landowner payments held in trust are funds the Trust holds on behalf of third party land owners under offset arrangements payable over 10 years from the date of covenant registration. (c) Bonds held in trust are funds held on behalf of proponents as security to meet the approval conditions specified through the Environmental Protection and Biodiversity Conservation Act pending the achievement of offset arrangements and covenant registration.
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Note 14 Leases
Finance leases Finance leases relate to a motor vehicle lease held with Vicfleet Lease Management with a lease term of three years. The Trust has an option to purchase the leased assets at expiry of the lease. Interest incurred on assets held under finance leases was $1,359 (2010: $979). The written down value of assets held under finance leases is $29,080 (2010: $19,275). Minimum future lease Present value of minimum payments(1) future lease payments
2011 2010 2011 2010 $ $ $ $ Finance lease liabilities payable - Not longer than one year 12,469 20,036 12,469 20,036 - Longer than one year and not longer than five years 20,781 0 20,781 0 Total finance leases 33,250 20,036 33,250 20,036 Note: (1) Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual.
Operating leases Operating leases relate to office facilities with lease terms of between one year and seven years and motor vehicle leases with lease terms of three years. The Trust does not have an option to purchase the leased assets at the expiry of the lease period. Operating lease expenses recognised in the accounts was $236,088 (2010: $129,653).
2011 2010 $ $ Non-cancellable operating lease payables Not longer than one year 262,311 31,339 Longer than one year and not longer than five years 863,098 34,646 Longer than five years 304,664 0 Total non-cancellable operating leases payable 1,430,073 65,985 Total leases 1,430,073 65,985
Note 15 Commitments for expenditure
The following commitments have not been recognised as liabilities in the financial statements: 2011 2010 $ $ (a) Capital expenditure commitments Project and capital commitments 121,438 0
Total capital expenditure commitments 121,438 0 (b) Lease commitments Finance lease liabilities and non-cancellable operating lease commitments are disclosed in Note 11 and Note 14 to the financial statements.
Total commitments for expenditure 121,438 0 All amounts shown in the commitments note are nominal amounts inclusive of GST.
Note 16 Contingent assets and contingent liabilities There are no known contingent assets or contingent liabilities.
64 www.trustfornature.org.au TRUST for NATURE victoria 2010-11
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Note 17 Financial instruments
(a) Financial risk management objectives and policies
The Trust's principal financial instruments comprise of: - cash assets - term deposits - receivables (excluding statutory receivables) - investments in equities and managed investment schemes - payables (excluding statutory payables).
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset and financial liability above are disclosed in Note 1 to the financial statements.
The Trust's main financial risks include credit risk, liquidity risk, interest rate risk and equity price risk. The Trust manages these financial risks in accordance with its financial risk assessment reviews.
The carrying amounts of the Trust's financial assets and financial liabilities by category are disclosed in Table 17.1.
Table 17.1: Categorisation of financial instruments
Contractual Contractual Contractual Total financial financial financial 2011 assets - loans assets liabilities at and available-for- amortised receivables sale cost $ $ $ $ Contractual financial assets Cash and deposits 9,102,378 9,102,378 Receivables: Sale of goods and services 353,396 353,396 Accrued investment income 577,625 577,625 Investments and other contractual financial assets: Term deposits 17,356,831 17,356,831 Equities and managed investment schemes 2,658,488 2,658,488 Total contractual financial assets 27,390,230 2,658,488 0 30,048,718 Contractual financial liabilities Payables - supplies and services 609,167 609,167 Borrowings 36,894 36,894 Other financial liabilities 16,131,339 16,131,339 Total contractual financial liabilities 0 0 16,777,400 16,777,400
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Note 17 Financial instruments (continued)
Table 17.1: Categorisation of financial instruments (continued)
Contractual Contractual Contractual Total financial financial financial 2010 assets - loans assets liabilities at and available-for- amortised receivables sale cost
$ $ $ $ Contractual financial assets Cash and deposits 2,090,627 2,090,627 Receivables(i): Sale of goods and services 593,237 593,237 Accrued investment income 626,031 626,031 Investments and other contractual financial assets: Term deposits 17,426,664 17,426,664 Equities and managed investment schemes 2,404,201 2,404,201 Total contractual financial assets 20,736,559 2,404,201 0 23,140,760 Contractual financial liabilities Payables - supplies and services(ii) 339,990 339,990 Borrowings 19,578 19,578 Other financial liabilities 8,799,825 8,799,825 Total contractual financial liabilities 0 0 9,159,393 9,159,393 Notes: (i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable).
(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. taxes payable).
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Note 17 Financial instruments (continued)
Table 17.2: Net holding gain/(loss) on financial instruments by category
Net holding Total dividend Total interest Impairment Total gain/(loss) income income/ loss 2011 (expense)
$ $ $ $ $ Contractual financial assets Financial assets - loans and receivables 856,430 856,430 Financial assets available-for-sale 187,558 187,558 recognised in net result Financial assets available-for-sale 154,101 154,101 recognised in other comprehensive result Total contractual financial assets 154,101 187,558 856,430 0 1,198,089 Contractual financial liabilities Financial liabilities at amortised cost (1,359) (1,359) Total contractual financial liabilities 0 0 (1,359) 0 (1,359)
Net holding Total dividend Total interest Impairment Total gain/(loss) income income/ loss 2010 (expense)
$ $ $ $ $ Contractual financial assets Financial assets - loans and receivables 849,838 849,838
Financial assets available-for-sale 103,392 103,392 recognised in net result Financial assets available-for-sale 150,046 150,046 recognised in other comprehensive result
Total contractual financial assets 150,046 103,392 849,838 0 1,103,276 Contractual financial liabilities Financial liabilities at amortised cost (979) (979) Total contractual financial liabilities 0 0 (979) 0 (979)
The net holding gains or losses disclosed above are determined as follows:
- For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the interest revenue, plus dividend revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result
- For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from revaluation of the financial liabilities measured at amortised cost.
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Note 17 Financial instruments (continued)
(b) Credit risk
Credit risk arises from the financial assets of the Trust, which comprise cash and deposits, trade and other receivables, held to maturity investments and financial assets available-for-sale. The Trust's exposure to credit risk arises from the potential default of counter parties on their contractual obligations resulting in financial loss to the Trust.
Credit risk associated with the Trust's financial assets is minimal. Most loans and receivables are with government-funded organisations, and cash and deposits and held-to-maturity investments are held at a range of financial institutions with high credit ratings of a minimum BBB rating. Financial assets available-for-sale includes managed investments which are managed by the Myer Family Company and listed securities.
In addition, the Trust does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest.
Provision for impairment for financial assets is recognised when there is objective evidence that the Trust will not be able to collect a receivable. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Trust's maximum exposure to credit risk.
Table 17.3: Credit quality of contractual financial assets that are neither past due nor impaired
Government Financial Other financial Other Managed Total agencies institutions institutions funds (AA credit (min BBB rating) credit rating)
$ $ $ $ $ $ 2011 Cash and cash equivalents 8,745,182 339,250 17,946 9,102,378 Sale of goods and services(i) 134,390 4,671 139,061 Accrued investment income 291,012 286,613 577,625 Term deposits 9,893,926 7,462,905 17,356,831 Equities and managed investment schemes 2,641,401 2,641,401 8,879,572 10,524,188 7,749,518 22,617 2,641,401 29,817,296 2010 Cash and cash equivalents 370,954 1,702,227 16,346 1,100 2,090,627 Sale of goods and services(i) 378,417 13,649 392,066 Accrued investment income 2,060 203,536 420,435 626,031 Term deposits 700,000 9,114,415 7,612,249 17,426,664 Equities and managed investment schemes 2,387,114 2,387,114
Total contractual financial liabilities 1,451,431 11,020,178 8,049,030 14,749 2,387,114 22,922,502
Notes: (i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable).
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Note 17 Financial instruments (continued)
Table 17.4: Ageing analysis of contractual financial assets
Not past due Past due, not impaired Impaired Carrying and not Less than 1 3 months - 1 financial amount 1-3 months (ii) impaired month year assets $ $ $ $ $ $ 2011 Receivables(i): Interest receivable 577,625 577,625 Other receivables 353,396 139,061 214,335 Investments and other contractual financial assets: Term deposits 17,356,831 17,356,831 Equities and managed investment schemes 2,658,488 2,641,401 17,087 Total 20,946,340 20,714,918 0 0 214,335 17,087 2010 Receivables(i): Interest receivable 626,031 626,031 Other receivables 593,237 392,066 168,228 32,943 Investments and other contractual financial assets: Term deposits 17,426,664 17,426,664 Equities and managed investment schemes 2,404,201 2,387,114 17,087 Total 21,050,133 20,831,875 168,228 32,943 0 17,087 Notes: (i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). (ii) Shares in Teys Income Builder valued at $17,087 (2010: $17,087) were received in a bequest in 2009-10. Its responsible entity, TPFL, was placed in administration on 5 March 2010 and into liquidation on 20 April 2010. The shares have been valued at the most recently available estimated value per unit provided in April 2010 by the liquidator of the responsible entity.
Contractual financial assets that are either past due or impaired
There are no material financial assets which are individually determined to be impaired other than those detailed above in Table 17.4. Currently the Trust does not hold any collateral as security nor credit enhancements relating to any of its financial assets. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. Table 17.4 discloses the ageing only of financial assets that are past due but not impaired.
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Note 17 Financial instruments (continued)
(c) Liquidity risk
Liquidity risk arises when the Trust is unable to meet its financial obligations as they fall due. The Trust operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets.
The Trust's exposure to liquidity risk is deemed insignificant. Cash for unexpected events is generally sourced from funds held at call. Maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the Balance Sheet.
The following tables discloses the contractual maturity analysis for the Trust's contractual financial liabilities. Table 17.5: Maturity analysis of contractual financial liabilities(ii)
Maturity dates Carrying Nominal Less than 1 1 month to 1 amount amount 1 year or more month year $ $ $ $ $ 2011 Payables(i): Contractual payables at amortised cost 609,167 609,167 571,627 37,541 Other financial liabilities at amortised cost 16,131,339 16,131,339 167,053 11,360,607 4,603,679 Borrowings: Lease liabilities 36,894 36,894 945 10,395 25,554 Total 16,777,400 16,777,400 739,625 11,408,543 4,629,233
2010 Payables(i): Contractual payables at amortised cost 339,990 339,990 277,990 62,000 Other financial liabilities at amortised cost 8,799,825 8,799,825 251,181 3,505,268 5,043,376 Borrowings: Lease liabilities 19,578 19,578 1,139 18,439 Total 9,159,393 9,159,393 530,310 3,585,707 5,043,376 Note: (i) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. taxes payable). (ii) Maturity analysis is presented using the undiscounted cash flows.
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Note 17 Financial instruments (continued)
(d) Market risk The Trust's exposures to market risk are primarily through interest rate risk and equity price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below. Interest rate risk The Trust manages interest rate risk by undertaking fixed rate financial instruments with maturity profiles mostly spread over 3 to 24 months. The Trust does not enter into interest rate swaps. The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in Table 17.6. In addition, the Trust's sensitivity to interest rate risk is set out in Table 17.7. Equity price risk The Trust is exposed to equity price risk through investments in managed investment schemes which are invested in domestic equities and direct equity investments. The value of dividend income and imputation credits will also vary. The managed funds are administered by the Myer Family Company. The fund manager on behalf of the Trust closely monitors performance and manages the equity price risk through diversification of its investment portfolio. The Trust's exposure to equity price risk is set out in Table 17.7. Table 17.6: Interest rate exposure of financial instruments Weighted Interest rate exposure average Carrying Fixed interest Variable Non-interest effective amount rate interest rate bearing interest rate 2011 % $ $ $ $ Financial assets Cash and deposits 4.61% 9,102,378 9,024,653 77,725 Receivables(i): Sale of goods and services 353,396 353,396 Accrued investment income 577,625 577,625 Investments and other contractual financial assets: Term deposits 6.04% 17,356,831 17,356,831 Equities and managed investment schemes 4.63% 2,658,488 42,408 2,616,080 Total financial assets 30,048,718 17,356,831 9,067,061 3,624,826 Financial liabilities Payables(i): Payables - supplies and services 609,167 609,167 Borrowings - lease liabilities 6.62% 36,894 36,894 Other financial liabilities 16,131,339 16,131,339 Total financial liabilities 16,777,400 36,894 0 16,740,506 2010
Financial assets Cash and cash equivalents 3.63% 2,090,627 1,538,853 551,774 Receivables(i): Sale of goods and services 593,237 593,237 Accrued investment income 626,031 626,031 Investments and other contractual financial assets: Term deposits 5.50% 17,426,664 17,426,664 Equities and managed investment schemes 3.75% 2,404,201 41,473 2,362,728 Total financial assets 23,140,760 17,426,664 1,580,326 4,133,770 Financial liabilities Payables(i): Payables - supplies and services 339,990 339,990 Borrowings - lease liabilities 7.50% 19,578 19,578 Other financial liabilities 8,799,825 8,799,825 Total financial liabilities 9,159,393 19,578 0 9,139,815 Note: (i) The total amounts disclosed here exclude statutory receivables (i.e. amounts owing from Victorian Government, GST input tax credit recoverable, and GST payables).
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Note 17 Financial instruments (continued)
Sensitivity disclosure analysis and assumptions
The Trust's sensitivity to market risk is determined based on the observed range of actual historical data for the preceding five- year period, with all variables other than the primary risk variable held constant. The Trust's fund managers cannot be expected to predict movements in market rates and prices, sensitivity analyses shown are for illustrative purposes only. The following movements are ‘reasonably possible’ over the next 12 months:
• a movement of 200 basis points up and down (2010: 200 up and down) in market interest rates (AUD) • a movement of 10 per cent up and down (2010: 10 up and down) for the top ASX 200 index.
Table 17.7 discloses the impact on net result and equity for each category of financial instrument held by the Trust at year-end if the above movements were to occur.
Table 17.7: Market risk exposure
Carrying Interest rate risk Other price risk amount -2 per cent +2 per cent -10 per cent +10 per cent
Net result Net result Net result Net result
2011 $ $ $ $ $ Contractual financial assets
Cash and cash equivalents 9,102,378 (180,493) 180,493
Receivables:
Sale of goods and services 353,396
Accrued investment income 577,625
Investments and other contractual financial assets:
Term deposits 17,356,831 (347,137) 347,137 Equities and managed investment 2,658,488 (848) 848 (261,608) 261,608 schemes(a) Total impact 30,048,718 (528,478) 528,478 (261,608) 261,608
Carrying Interest rate risk Other price risk amount -2 per cent +2 per cent -10 per cent +10 per cent
Net result Net result Net result Net result 2010 $ $ $ $ $ Contractual financial assets
Cash and cash equivalents 2,090,627 (41,813) 41,813
Receivables:
Sale of goods and services 593,237
Accrued investment income 626,031
Investments and other contractual financial assets:
Term deposits 17,426,664 (348,533) 348,533 Equities and managed investment 2,404,201 (829) 829 (236,273) 236,273 schemes(a) Total impact 23,140,760 (391,175) 391,175 (236,273) 236,273 Notes: (a) Managed funds include $2,616,080 of equities (2010: $2,362,727).
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Note 17 Financial instruments (continued)
(e) Fair value
The fair values of financial assets and liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices.
The financial assets include holdings in unlisted unit trusts which are recognised in the financial statements at fair value.
The Trust considers that the carrying amount of other financial assets and financial liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.
Note 18 Cash flow information
(a) Reconciliation of cash and cash equivalents
2011 2010 $ $ Cash on hand 1,100 1,100 Cash at bank 76,625 550,674 Cash on deposit at call 290,597 1,538,853 Cash on deposit at call held in trust for Barwon Water 7,210,939 0 Cash on deposit at call held in trust for Hydrox Nominees 1,523,117 0 Balance as per cash flow statement 9,102,378 2,090,627
(b) Reconciliation of net result for the period to net cash flows from operating activities
2011 2010 $ $ Net result for the period (25,932) 3,415,936
Non-cash movements: (Gain)/loss on sale of non-current assets 63,374 (661,059) (Gain)/loss on other financial assets held at fair value (154,101) (150,046) Depreciation and amortisation of non-current assets 159,783 118,930 Gifted assets 0 (24,737)
Movements in assets and liabilities: (Increase)/decrease in interest receivable 48,406 (95,790) (Increase)/decrease in other receivables 239,841 (26,143) (Increase)/decrease in other assets 105,627 0 Increase/(decrease) in payables 57,357 282,744 Increase (decrease) in provisions 119,670 992,838 Increase/(decrease) in other liabilities (606,568) (53,395)
Net cash flows from/(used in) operating activities 7,457 3,799,278
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Note 19 Reserves
2011 2010 $ $ Physical asset revaluation surplus (a) Balance at the beginning of the financial year 22,605,409 22,605,409 Revaluation increments/(decrements) (6,842,745) 0 Transfered to non-financial assets available for sale revaluation surplus 16,627 0 Disposal or transferred out (1,162,670) 0 Balance at the end of the financial year 14,616,621 22,605,409 Non-financial assets available-for-sale revaluation surplus (b) Balance at the beginning of the financial year 209,547 768,228 Transferred from physical asset revaluation surplus (16,627) 0 Transferred to profit and loss for the period 0 (558,681) Balance at the end of the financial year 192,920 209,547 Donations surplus (c) Balance at the beginning of the financial year 2,935,161 2,973,980 Transfers to/(from) accumulated surplus: Interest on funds held less administration fee 113,303 80,338 Donations for reserve and sale of properties 1,198,406 160,480 Funds appropriated and properties acquired (655,701) (279,637) Balance at the end of the financial year 3,591,169 2,935,161 Covenant stewardship surplus (d) Balance at the beginning of the financial year 1,091,559 1,032,516 Transfers to/(from) accumulated surplus: Interest, dividends, gain on managed funds on funds held less administration fee 67,367 36,243 Covenant monitoring 67,200 22,800 Balance at the end of the financial year 1,226,126 1,091,559 Properties surplus (e) Balance at the beginning of the financial year 358,375 358,375 Balance at the end of the financial year 358,375 358,375 Bequest surplus (f) Balance at the beginning of the financial year 3,276,677 3,146,253 Transfers to/(from) accumulated surplus: Interest, dividends, gain on shares on funds held less administration fee 150,784 130,424 Funds appropriated (49,792) 0 Balance at the end of the financial year 3,377,669 3,276,677 Total reserves 23,362,880 30,476,728 (a) The physical asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets. (b) The non-financial assets available-for-sale surplus represents any cumulative income or expense recognised directly in equity relating to a non-financial asset classified as held for sale. (c) Donations surplus funds are derived from Government grants and donations from other organisations or individuals. These donations are directed towards property purchases or are held in trust for specified purposes.
(d) The covenant stewardship surplus is for monitoring of covenanted properties and approved management expenditure. The Trust has adopted the policy of transferring $600 for each new covenant to the covenant stewardship reserve.
(e) The properties surplus is for property purchases and for management, educational and legal costs pertaining to Trust properties. (f) Bequest surplus funds are held on trust for specified purposes.
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Note 20 Accumulated surplus
2011 2010 $ $ Accumulated surplus at the beginning of the financial year 11,967,557 8,702,269 Transfers (to)/from reserves: Donations reserve (656,008) 38,819 Covenant stewardship reserve (134,567) (59,043) Properties reserve 00 Bequest reserve (100,992) (130,424) Net result for the reporting period (25,932) 3,415,936
Accumulated surplus at the end of the financial year 11,050,058 11,967,557
Note 21 Responsible persons
In accordance with the Ministerial Directions issued by the Minister of Finance under the Financial Management Act 1994 , the following disclosures are made regarding responsible persons for the reporting period.
Names The names of the persons who were responsible persons at any time during the financial year are:
Responsible Minister: The Hon. Gavin Jennings, MLC, Minister for Environment and Climate Change 1 July 2010 to 1 December 2010 The Hon. Ryan Smith, MLC, Minister for Environment and Climate Change 2 December 2010 to 30 June 2011
Governing Board of Trustees: Camilla Graves (Chairman) 1 July 2010 to 30 June 2011 Anthea Hancocks (Deputy Chairman) 1 July 2010 to 30 June 2011 Thomas Tootell 1 July 2010 to 10 August 2010 Rod Gowans, PSM 1 July 2010 to 30 June 2011 Rikki Andrews 1 July 2010 to 30 June 2011 Sylvia Geddes 1 July 2010 to 30 June 2011 Dr Gregory Moore 1 July 2010 to 30 June 2011 Lisa Gay 1 July 2010 to 30 June 2011 Dr Mick Lumb 1 July 2010 to 30 June 2011 Dr Rik Thwaites 1 July 2010 to 30 June 2011
Executive Director Victoria Marles 1 July 2010 to 30 June 2011
Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.
Remuneration received or receivable by the Trustees is in the range $357-$432 per sitting. Total sitting fees paid in 2010-11 were $16,268 (2009-10: nil). There were no related party transactions between the Trustees and the Trust.
Remuneration received or receivable by the Executive Director during the reporting period was in the range: $140,000 - $149,999 ($90,000 - $99,999 in 2009-10)
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Note 22 Remuneration of auditors
2011 2010 $ $ Victorian Auditor-General's Office:
Audit or review of the financial statements 14,400 21,500
Total amount 14,400 21,500
Note 23 Subsequent events
There are no events or transactions subsequent to the reporting date which would render any particulars included in the financial statements to be misleading or inaccurate.
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Note 24 Glossary of terms
Commitments Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources.
Comprehensive result Total comprehensive result is the change in equity for the period other than changes arising from transactions with owners. It is the aggregate of net result and other non-owner changes in equity.
Employee benefits expenses Employee benefits expenses include all costs related to employment including wages and salaries, leave entitlements, redundancy payments, defined benefits superannuation plans, and defined contribution superannuation plans.
Financial asset A financial asset is any asset that is: (a) cash; (b) an equity instrument of another entity; (c) a contractual or statutory right: (i) to receive cash or another financial asset from another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will or may be settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or (ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.
Financial instrument A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a result of statutory requirements imposed by governments) are not financial instruments.
Financial liability A financial liability is any liability that is: (a) A contractual or statutory obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) A contract that will or may be settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or
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Note 24 Glossary of Terms (continued)
(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.
For this purpose the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.
Financial statements Depending on the context of the sentence where the term ‘financial statements’ is used, it may include only the main financial statements (i.e. comprehensive operating statement, balance sheet, cash flow statements, and statement of changes in equity); or it may also be used to replace the old term ‘financial report’ under the revised AASB 101 (September 2007), which means it may include the main financial statements and the notes.
Grants and other transfers Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can either be operating or capital in nature. While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non-reciprocal transfers. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes. Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use.
Intangible assets Intangible assets represent identifiable non-monetary assets without physical substance.
Interest expense Costs incurred in connection with the borrowing of funds. Interest expenses include interest on bank overdrafts and short-term and long-term borrowings, amortisation of discounts or premiums relating to borrowings, the interest component of finance leases repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time.
Interest income Interest income includes unwinding over time of discounts on financial assets and interest received on bank term deposits and other investments.
Investment properties Investment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the State of Victoria.
Net acquisition of non-financial assets (from transactions) Purchases (and other acquisitions) of non-financial assets less sales (or disposals) of non-financial assets less depreciation plus changes in inventories and other movements in non-financial assets. It includes only those increases or decreases in non-financial assets resulting from transactions and therefore excludes write-offs, impairment write-downs and revaluations.
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Note 24 Glossary of Terms (continued)
Net result Net result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains and expenses (including losses) recognised for the period, excluding those that are classified as other non-owner changes in equity. Net result from transactions/net operating balance Net result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies. Non-financial assets Non-financial assets are all assets that are not ‘financial assets’. Other economic flows Other economic flows are changes in the volume or value of an asset or liability that do not result from transactions. It includes gains and losses from disposals, revaluations and impairments of non-current physical and intangible assets; actuarial gains and losses arising from defined benefit superannuation plans; fair value changes of financial instruments and agricultural assets; and depletion of natural assets (non-produced) from their use or removal. In simple terms, other economic flows are changes arising from market re-measurements. Payables Includes short and long term trade debt and accounts payable, grants, taxes and interest payable. Receivables Includes amounts owing from government through appropriation receivable, short and long term trade credit and accounts receivable, accrued investment income, grants, taxes and interest receivable.
Sales of goods and services Refers to income from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services and work done as an agent for private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use of non-produced assets such as land. User charges includes sale of goods and services income. Supplies and services Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the Trust. Transactions Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the government.
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Accountable officer’s, chief finance officer’s and chairman’s declaration
We certify that the attached financial statements for Trust for Nature have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards, including interpretations, and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2011 and financial position of the Trust at 30 June 2011. We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 2 September 2011.
Greg Bowers Victoria Marles Chief Finance Officer Chief Executive Officer Trust for Nature Trust for Nature Melbourne Melbourne 2 September 2011 2 September 2011
Camilla Graves Chairman Trust for Nature Melbourne 2 September 2011
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Appendix 1
Trust for Nature Whistleblowers Protection Act Policy Scope and Purpose The Board of Trustees is the governing body of Trust for Nature. The Board is committed to best practice in corporate governance, compliance and ethical behaviour generally. One of the principal responsibilities of the Board includes monitoring compliance with regulatory and ethical requirements.
A key test of the corporate governance health in Trust for Nature is whether there are both formal and informal structures in place to enable good news and bad news to travel rapidly to the appropriate destination. This procedure is an important mechanism in being able to satisfy that key test.
This procedure covers the organisation’s procedures for dealing with reports made by Trust for Nature staff of suspected improper conduct within the organisation. It also addresses the protection of individuals making reports regarding actual or suspected contravention of our ethical and legal standards without fear of reprisal or feeling threatened by doing so.
These Procedures aim to:
• encourage people to report an issue if they genuinely believe someone has contravened any code of conduct, policies or the law
• outline how Trust for Nature will properly deal with all reported improper conduct or unethical behaviour, and
• assist in ensuring that serious misconduct or unethical behaviour is identified and dealt with appropriately. Objects of the Act The Whistleblowers Protection Act 2001 commenced operation on 1 January 2002. The purpose of the Act is to encourage and facilitate the making of disclosures of improper conduct by public officers and public bodies. The Act provides protection to a person who makes a disclosure in accordance with the Act, and establishes a system for the matters disclosed, to be investigated and rectifying action to be taken. Who do these Procedures apply to? These procedures apply to all employees, Executive Officers and the Board of Trust for Nature, whether full time, part time or casual at any level of seniority wherever employed. Definitions Improper Conduct
A disclosure may be made about improper conduct by a public body or public official. Improper conduct means conduct that is corrupt, a substantial mismanagement of public resources, or conduct involving substantial risk to public health or safety or to the environment. The conduct must be serious enough that if proven would constitute a criminal offence or reasonable grounds for dismissal.
For the purpose of these procedures, corrupt is defined as: • conduct of any person (whether or not a public official) that adversely affects the honest performance of a public officer’s or public body’s functions; • the performance of a public officer’s functions dishonestly or with inappropriate partiality; • conduct of a public officer, former public officer or a public body that amounts to a breach of public trust; • conduct by a public officer, former public officer or a public body that amounts to the misuse of information or material acquired in the course of the performance of their official functions; or • a conspiracy or attempt to engage in any of the above conduct . The definition of “corrupt conduct” contemplates dishonesty, or at the least the forgoing of public interest for a private benefit. Detrimental Action The Act makes it an offence for a person to take detrimental action against a person in reprisal for a protected disclosure. Detrimental action includes; • Action causing injury, loss or damage • Intimidation or harassment, and • Discrimination, disadvantage or adverse treatment in relation to a person’s employment, career, profession, trade or business, including the taking of disciplinary action
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Whistleblowing For the purpose of these procedures, ‘whistleblowing’ is defined as: “the deliberate, voluntary disclosure of individual or organisational malpractice by a person who has or had privileged access to data, events or information about an actual, suspected or anticipated wrongdoing within or by an organisation that is within its ability to control.” Whistleblower For the purpose of these procedures, a whistleblower is defined as: “any person, or any employee, director or contractor of the Trust for Nature, who whether anonymously or not makes or attempts to make a disclosure as defined in s2.1 of the Act.” Protected Disclosure For the purpose of these procedures, protected disclosure is defined as: “any good faith communication based on reasonable grounds that discloses or demonstrates an intention to disclose information that may evidence an improper conduct.”. The Reporting System Direct Contact Person Disclosures of improper conduct or detrimental action may be made to the following officer:
The Protected Disclosure Coordinator:
Peter Moulton Regional Operations Manager
All correspondence, phone calls and emails from internal or external whistleblowers will be referred to the Protected Disclosure Coordinator.
Where a person is contemplating making a disclosure and is concerned about approaching the protected disclosure coordinator in the workplace, he or she can call the protected disclosure coordinator and request a meeting in a discreet location away from the workplace. Alternative contact persons A disclosure about improper conduct or detrimental action may also be made directly to the Ombudsman:
Ombudsman Victoria Level 3 459 Collins Street Melbourne Victoria 3000 (DX 210174) www.ombudsman.vic.gov.au Tel: (03) 9613 6222 Toll Free: 1800 806 314
Ombudsman: Mr George Brouwer Tel: (03) 9613 6222
Roles and Responsibilities Employees
Employees are encouraged to report known or suspected incidences of improper conduct or detrimental action in accordance with these procedures.
All employees of Trust for nature have an important role to play in supporting those who have made a legitimate disclosure. They must refrain from any activity that is, or could be perceived to be, victimisation or harassment of a person who makes a disclosure.
Furthermore, they should protect and maintain the confidentiality of a person they know or suspect to have made a disclosure.
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Appendix 1 Continued
Protected Disclosure Coordinator The protected disclosure coordinator has the central role in the internal reporting system. He/She will; • Make arrangements for a disclosure to be made privately and discreetly and, if necessary, away from the workplace • Receive any disclosure made orally or in writing (from internal and external whistleblowers) • Commit to writing any disclosure made orally • Take all necessary steps to ensure the identity of the whistleblower and the identity of the person who is the subject of the disclosure are kept confidential • Impartially assess each disclosure to determine whether it is a public interest disclosure • Be responsible for carrying out, or appointing an investigator to carry out, an investigation • Be responsible for overseeing and coordinating an investigation where an investigator has been appointed • Where necessary appoint a welfare manager to support the whistleblower • Advise the whistleblower of the progress of an investigation into the disclosed matter • Co-ordinate the reporting system used by the organisation • Be a contact point for general advice about the operation of the Act • Be responsible for ensuring that the organisation carries out its responsibilities under the Act and the guidelines • Liaise with the Ombudsman in regard to the Act • Establish and manage a confidential filing system • Collate and publish statistics on disclosures made, and • Liaise with the Chief Executive Officer. Investigator The protected disclosure coordinator will appoint an investigator as soon as practicable if an investigation is required by the Ombudsman.
An investigator may be a person from within an organisation or a consultant engaged for that purpose.
The protected disclosure coordinator must ensure that any investigator is aware of the provisions of the Act, including the criminal penalties that apply for breaches of the Act. Welfare Manager The protected disclosure coordinator will appoint a welfare manager when a protected disclosure is made.
The welfare manager is responsible for looking after the general welfare of the whistleblower. The welfare manager will: • examine the immediate welfare and protection needs of a whistleblower who has made a disclosure and seek to foster a supportive work environment • advise the whistleblower of the legislative and administrative protections available to him or her • listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making a disclosure • keep a contemporaneous record of all aspects of the case management of the whistleblower including all contact and follow-up action, and • endeavour to ensure the expectations of the whistleblower are realistic Receiving and Assessing Disclosures When Trust for Nature receives a complaint, report or allegation of improper conduct or detrimental action, the first step is to determine whether the disclosure has been made to the right person or body and then whether the matter falls under the Act.
There will be situations where an allegation of improper conduct or detrimental action may occur, but the person making the allegation has not referred to the Act. If an allegation raises issues that may fall within the provisions of the Act, the protected disclosure coordinator should assess the allegations in terms of the Act. The protections of the Act may apply to a disclosure regardless of whether or not the individual making the disclosure specifically requests so.
For the protections of Part 2 to apply, a disclosure must be made in accordance with Part 2 of the Act. Disclosures made under Part 2 of the Act are called protected disclosures. The following questions can be used to assess whether the complaint, report or accusation is a protected disclosure.
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Has the disclosure been made in accordance with Part 2 of the Act?
Where a disclosure has been received by the protected disclosure coordinator, he/she will assess whether the disclosure has been made in accordance with Part 2 of the Act and is, therefore, a protected disclosure.
How can a protected disclosure be made? Part 2 of the Act provides that a person may make a disclosure • Orally • In writing • Electronically • Anonymously This means disclosures may be received from anonymous sources, including unverified email addresses, phone calls, by facsimile, in a conversation or meeting. If the disclosure is made orally, the protected disclosure coordinator should ensure that contemporaneous notes are made of the disclosure.
If the disclosure comes from an email address from which the identity of the person making the disclosure cannot be determined, the disclosure should be treated as an anonymous disclosure.
Any person can submit an allegation or complaint. The Act does not require the individual to be an employee of Trust for Nature. However, the complaint must be made by an individual and not by a company, organisation or group of people.
Has the disclosure been made to the appropriate person? For the disclosure to be responded to by Trust for Nature, it must concern the CEO, the Board or an employee. If the disclosure concerns an employee, officer or member of another public body, the person who has made the disclosure must be advised of the correct person or body to whom the disclosure should be directed. If the disclosure has been made anonymously, it should be referred to the Ombudsman.
Does the disclosure contain the essential elements of a protected disclosure? To be a protected disclosure, a disclosure must satisfy the following criteria; • did a natural person (that is, an individual person rather than a corporation) make the disclosure? • does the disclosure relate to conduct of a public body or public officer acting in their official capacity? • is the alleged conduct either improper conduct or detrimental action taken against a person in reprisal for making a protected disclosure? • does the person making a disclosure have “reasonable grounds” for believing the alleged conduct has occurred? The phrase “reasonable grounds for belief” requires more than a suspicion and the belief must have supporting facts and circumstances. For reasonable grounds of belief, the usual test applied is whether a reasonable person would have formed that belief, having regard to all the circumstances.
Where a disclosure is assessed to be a protected disclosure, the protected disclosure coordinator will determine whether the disclosure is a public interest disclosure. Section 28 of the Act requires a public agency to reach its decision about the disclosure within 45 days of receiving it (see Section 7.5).
Where a disclosure is assessed not to be a protected disclosure, the matter does not need to be dealt with under the Act. The protected disclosure coordinator will then decide how the matter should be responded to, and will advise the person of her assessment. The protected disclosure coordinator will also indicate on what grounds he/she has made his/her assessment, and should advise the person of his or her right to appeal to the Ombudsman.
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Appendix 1 Continued
Is the disclosure a public interest disclosure? Where the protected disclosure coordinator has received a disclosure that has been assessed to be a protected disclosure, the protected disclosure coordinator will determine whether the disclosure amounts to a public interest disclosure. This assessment will be made within 45 days of the receipt of the disclosure.
In reaching a conclusion as to whether a protected disclosure is a public interest disclosure, the protected disclosure coordinator will consider whether the disclosure shows, or tends to show, that the public officer to whom the disclosure relates: • Has engaged, is engaging or proposes to engage in improper conduct in his or her capacity as a public officer or • Has taken, is taking or proposes to take detrimental action in contravention of section 18 Legal interpretation of the phrase “shows or tends to show” generally indicates that the disclosure must reveal or make known the conduct.
Where the protected disclosure coordinator concludes that the disclosure amounts to a public interest disclosure, he or she will within 14 days: • Notify the person who made the disclosure of that conclusion, and • Refer the disclosure to the Ombudsman for a determination as to whether the Ombudsman is satisfied that it is a public interest disclosure Where the protected disclosure coordinator concludes that the disclosure is not a public interest disclosure, he or she will within 14 days: • Notify the person who made the disclosure of that conclusion, and • Advise that person that he or she may request the public body to refer the disclosure to the Ombudsman for a formal determination as to whether the disclosure is a public interest disclosure, and that this request must be made within 28 days of the notification. Notification to the whistleblower is not necessary where the disclosure has been made anonymously.
If a determination is made that the disclosure is not a public interest disclosure, it does not alter the decision that it is a protected disclosure.
What happens after a report is made? The Protected Disclosure Coordinator will investigate all reported concerns appropriately and will, where applicable, provide feedback regarding the investigation’s outcome. He/She will take the necessary course of action in response to a report and if no action is taken he/she will give you an explanation.
Confidentiality Trust for Nature will take all reasonable steps to protect the identity of the whistleblower. Maintaining confidentiality is crucial in ensuring reprisals are not made against a whistleblower.
The identity and the contents of any report will be kept confidential and no details of the staff member’s participation in this process will be included in the relevant personnel file or be referred to in any work performance review. The report will not be disclosed to anyone except those that are actively involved in investigating the matters raised in the report.
Trust for Nature management will ensure all files, whether paper or electronic, are kept in a secure room and can only be accessed by the protected disclosure coordinator, the investigator or welfare manager (in relation to welfare matters). All printed material will be kept in files that are clearly marked as a Whistleblower Protection Act matter, and warn of the criminal penalties that apply to any unauthorised divulging of information concerning a protected disclosure. All electronic files will be produced and stored on a stand-alone computer and be given password protection. Backup files will be kept on floppy disc, where documents will be password protected. All materials relevant to an investigation, such as tapes from interviews, will also be stored securely with the whistleblower files.
Trust for Nature employees will not email or fax to a machine to which staff have general access documents relevant to a whistleblower matter and will ensure all phone calls and meetings are conducted in private.
Protection of the Whistleblower Trust for Nature is committed to the protection of genuine whistleblowers against detrimental action taken in reprisal for the making of protected disclosures. The protected disclosure coordinator is responsible for ensuring whistleblowers are protected from direct and indirect detrimental action, and that the culture of the workplace is supportive of protected disclosures being made.
The protected disclosure coordinator will advise the whistleblower that it is in their own interests to keep disclosures confidential by only discussing related matters with authorised persons within Trust for Nature or offices of the Ombudsman or other persons as authorised by law.
The protected disclosure coordinator will appoint a welfare manager to all whistleblowers who have made a protected disclosure. The welfare manager’s role is defined in 6.4.
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All employees will be advised that it is an offence for a person to take detrimental action in reprisal for a protected disclosure. The maximum penalty is a fine of 240 penalty units ($25,155) or two years imprisonment or both. The taking of detrimental action in breach of this provision can also be grounds for making a disclosure under the Act and can result in an investigation.
Whistleblowers implicated in improper conduct Trust for Nature acknowledges that the act of whistleblowing should not shield whistleblowers from the reasonable consequences flowing from any involvement in improper conduct. A person’s liability for his or her own conduct is not affected by the person’s disclosure of that conduct. However, in some circumstances, an admission may be a mitigating factor when considering disciplinary or other action.
Management of the person against whom a disclosure has been made Trust for Nature management recognises that employees against whom disclosures are made must also be supported during the handling and investigation of disclosures. Trust for Nature management will take all reasonable steps to ensure the confidentiality of the person who is the subject of the disclosure during the assessment and investigation process. Where investigations do not substantiate disclosures, the fact that the investigation has been carried out, the results of the investigation, and the identity of the person who is the subject of the disclosure will remain confidential.
The protected disclosure coordinator will ensure the person who is the subject of any disclosure investigated by or on behalf of Trust for Nature is: • informed as to the substance of the allegations • given the opportunity to answer the allegations before a final decision is made • informed as to the substance of any adverse comment that may be included in any report arising from the investigation, and • has his or her defence set out fairly in any report. Where the allegations in a disclosure have been investigated, and the person who is the subject of the disclosure is aware of the allegations or the fact of the investigation, the protected disclosure coordinator will formally advise the person who is the subject of the disclosure of the outcome of the investigation.
Trust for Nature management will give full support to a person who is the subject of a disclosure where the allegations contained in a disclosure are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, Trust for Nature management will consider any request by that person to issue a statement of support setting out that the allegations were clearly wrong or unsubstantiated.
Criminal Offence Trust for Nature will ensure officers appointed to handle protected disclosures and all other employees are aware of the following offences created by the Act:
It is an offence for a person to take or threaten action in reprisal when: • a protected disclosure has been made • a person believes a protected disclosure has been made • a person believes that another person intends to make a protected disclosure. The Act provides a maximum penalty of a fine of 240 penalty units ($25,155) or two years imprisonment or both.
It is an offence for a person to divulge information obtained as a result of the handling or investigation of a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty units ($6,289) or six months imprisonment or both.
It is an offence for a person to obstruct the Ombudsman in performing his responsibilities under the Act. The Act provides a maximum penalty of 240 penalty units ($25,155) or two years imprisonment or both.
It is an offence for a person to knowingly provide false information under the Act with the intention that it be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units ($25,155) or two years imprisonment or both.
Access to the Procedures These Procedures will be available for viewing by any employee of Trust for Nature on the group server. It will also be viewable on Trust for Nature’s website.
Review of the Procedures These procedures will be reviewed annually to ensure it complies with relevant laws and remains relevant and effective. This policy and procedure document may be changed at the discretion of Trust for Nature management.
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