ANNUAL REPORT 2018 FALLS CREEK ALPINE RESORT MANAGEMENT BOARD Contents
REPORT OF OPERATIONS FINANCIAL STATEMENTS Letter to the Minister 2 How the 2018 Financial Statements are Structured 32
Chair’s Report 4 Declaration and Auditor’s Report Declaration by the Board Chair and Accountable Officers 33 CEO's Report 6 Independent Auditor’s Report 34
Resort Profile 8 Financial Statements Comprehensive Operating Statement 36 Vision, Mission and Principles 9 Balance Sheet 37 Cash Flow Statement 38 Year at a glance 10 Statement of Changes in Equity 39
Notes to the Financial Statements Enhancing the Visitor Experience and Building Partnerships 12 1. About this Report 40 The basis on which the financial statements have been prepared and compliance with Developing the Resort and reporting regulations Broadening Access Opportunities 14 2. Funding Delivery of Our Services 41 Delivering Resort Services and Infrastructure 16 Revenue recognised from taxes, grants, sales of goods and services and other sources
Respecting the Alpine Environment 19 3. The Cost of Delivering Services 43 Operating expenses of FCRM
Sustainability and Climate Adaptation 20 4. Key Assets Available to Support Service Delivery 45 Organisational Structure 22 Infrastructure and other assets utilised in fulfilling objectives
Board Profile 23 5. Other Assets and Liabilities 48 Working capital balances, and other key assets and liabilities Board Committees 25 6. How We Financed Our Operations 51 OH&S and Human Resources 26 Borrowings, cash flow information, leases and assets pledged as security
Compliance Items 28 7. Risks, Contingencies and Valuation Judgements 55 Attestation 31 Financial risk management, contingent assets and liabilities as well as fair value determination
Disclosure Index 70 8. Other Disclosures 63
2 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 3 Chair’s Report
contributors to the development of the next support during the year and to the guidance Alpine Resorts Strategic Plan; a project that and direction received from the Department will represent our plan to adapt to a changing of Environment, Land, Water and Planning. climate. This project will continue into 2019. I also wish to thank the ARCC under the Climate change adaptation and the Chairmanship of firstly Mr Bill Jaboor and governance of Victorian alpine resorts have from 30 March, Ms Arianne Rose, and the continued to be priorities for the Victorian ARCC team. Government in 2018. To this end, in March I would like to recognise the contribution 2018 the Minister released a Ministerial and passion of our Falls Creek community, Direction to the Alpine Resorts Co-ordinating who contribute to making Falls Creek a great Council (ARCC) and the alpine resort Boards place to live, work and play. This community to improve long term sustainability of our includes our local residents, skiers, business alpine areas. In addition to our climate change operators, employees, walkers, mountain adaptation work above, we have continued bike riders, Falls Creek Ski Lifts, Falls Creek to implement our strategies to grow visitation Alpine Association, ski clubs, property in both the snow and green seasons. These owners, the Alpine Shire, Tourism North East, strategies are put into effect through a range our Traditional Owners, and those with a of initiatives such as conducting events in connection to Falls Creek. periods of low visitation, increasing the Congratulations to the whole Falls Creek green season product offer, improving the Welcome to the Falls Creek community for our resort’s success at the visitor experience, expanding our arts and 2018 RACV Victorian Tourism Awards, Alpine Resort Management culture assets, promoting our resort all year winning Gold in the Major Tourist Attractions round and releasing land to meet our resort's Board Annual Report category. Awards such as this recognise changing needs. for 2018. the outstanding commitment of all who Throughout the year, the Board has also contribute to an amazing alpine experience This has been a year of change and refresh. focused on working more closely with the for everyone, in both the snow season and Falls Creek community and in listening the green season. The Minister for Environment announced to a range of views. With this refreshed On behalf of the Board, I thank you for making new Boards and a new structure for Victorian approach we have introduced a new key everything you do for Falls Creek, making it a alpine resorts effective from 30 March 2018. stakeholder session in our Board meetings, community that we can all connect with. The new structure provides for three unique to enable all Board members to hear directly members along with four common members; from key representatives and consider the common members being common to the their contributions on strategic matters. We JO SHANNON boards of Falls Creek, Mt Buller & Mt Stirling have also trialled some new methods of Board Chair and Mt Hotham. This model was designed to engaging with community members affected deliver improved coordination and provide by the decisions we make. We have invited better strategic planning and oversight affected parties to attend our meetings to across the northern alpine resort boards. express their views directly. We have sought I was fortunate to be invited to be the Chair community input prior to adopting applicable of the Falls Creek Alpine Resort Management policies. We have hosted engagement Board, along with Lindy Allen as my Deputy sessions to provide opportunity for input and Jason Alexandra as the third unique into a major re-development at the entrance Board member. We are joined by our four to our village. We will continue to refine our common board members, Michelle Croughan, approaches to improve our understanding Sue Lebish, Helen Moran and Peter Valerio. of our community’s needs. We appreciate the considerable work We have continued to address our long-term undertaken in the first quarter of 2018, with financial sustainability challenges. Through a Board that comprised Sue (as Chair), Lindy, active management by our staff, with oversight Jason and Anne-Marie Tenni. by the Board’s Finance, Risk and Audit I thank all Board members, retiring, continuing Committee, improved financial reporting and and new, for their service over the twelve fiscal management has assisted in improving month period. our financial performance. Our Board is very Our Board manages the Falls Creek Alpine pleased to report a positive underlying surplus Resort on behalf of the State of Victoria, for all for the year, a significant improvement on Victorians. This responsibility forms the basis previous years. We will continue to advance of our decision making. We want to ensure our long-term financial planning to ensure we that future generations have the opportunity are appropriately positioned to respond to to share our unique alpine environment. variable financial conditions. During the year, the Board and our community I would like to thank and acknowledge the have responded to the challenges presented contribution of our employees, Stuart Smythe, by climate change. We continue to implement our CEO, and the entire Falls Creek Resort programs to enhance infrastructure resilience, Management team, who have worked very assess the application of alternative hard over the year to deliver on the targets energy solutions and reduce landfill that is and initiatives set out in our Corporate Plan. relocated from the resort. We are also active I thank the Victorian Government for its
4 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 5 CEO’s Report
the Gold in the Major Tourist Attraction partners, local shires, agencies, state and strategic intent, investment priorities and Historical Society, Tourism North East, all the focus and assured the resort continues category, the highest accolade of the evening. federal departments on key strategic industry collaboration. Victorian Alpine resorts, the Alpine Shire, the to deliver for all its users, community and The award is an honour for the entire initiatives to future proof the resort and plan Divisional summaries and activities undertaken Alpine Resorts Co-ordinating Council, Parks stakeholders. for future development that will assist the Victoria, Regional Development Victoria and resort, all its stakeholders, its community throughout the year can be found on pages The resort management staff have settled resort amid an increasingly dynamic outlook the key Emergency Service agencies. The and our guests and users. The hard work 12 to 19. Priority focus for the management into a cohesive and engaged team after for the industry. collaboration and assistance throughout the and resilience of stakeholders, too many team has been across asset management, year has been essential in ensuring Falls several years of rebuilding. The calibre of to mention here, is summed up in this The executive leadership team at resort environmental management, enhancing individuals, their dedication, enthusiasm management participated across numerous Creek is the best it can be. achievement and the recognition given by the visitor experience and the continued and professionalism will ensure the resort regional programs including a range of In closing, I would like to thank the Board for industry peers and an expert panel of judges. expansion of summer activation and events. continues be a destination of choice to Boards, steering committees, agencies, and their contribution. Their commitment to the In early 2018, following new Board pursue adventure, create life long memories working groups ensuring participation across Management are particularly grateful for workload and willing engagement, together appointments and Ministerial Directions, the region and incorporation of the region’s the support of our mountain stakeholders; with a true passion for the resort and industry and experience the amazing Australian alpine considerable work was applied to planning for objectives in decision making at the resort. the Falls Creek Chamber of Commerce, is a major asset. With four new members, environment for generations to come. the future and ensuring the resort continues to the Falls Creek Alpine Association, various the intensity of both striving to deliver on exceed the expectations of our stakeholders, Resort management are members of the Tourism North East Board, the North East Strategic Stakeholder Forums, the Falls Ministerial Directions and setting the priorities STUART SMYTHE whilst similarly aligning with broader industry Creek Ski Lift Company, the Falls Creek for the resort have consumed much of their CEO goals in tackling the challenges of climate Cycling Optimisation and Ride High Country Falls Creek Alpine Resort change, striving for operational efficiencies steering committees, Hume Regional Growth and decision making transparency. and Change forum, North East Aboriginal is the sum of its parts. Cross Agency Network, the Bogong Outdoor To assist the Board in meeting their Education Board, the North East Waste Where the collective efforts commitment to the Ministerial Directions, and Recovery Resources group, numerous of many contribute to the there has been extensive consultation with emergency services agencies as well as active users, our community and stakeholders. members within the community and region fullness and richness of Forums have been undertaken in relation to across a variety different interest groups. alpine sustainability and adaptation to climate The four new Board members appointed in its character and delivers change, business services and stakeholder March 2018, have worked hard to understand engagement reviews. In addition, there has the unique experience our and comprehend the priority issues for the been continued participation by interested industry and particularly the resort, working parties in the strategic stakeholder groups for guests and users value. with management via committee structures green season activation, and assistance from to ensure quality governance in relation to Resort Management, in its role as land the community in setting the expectations decision making, stakeholder engagement manager has a diverse role to play in and desirable outcomes from the potential and a current focus on both the Alpine shaping how this character evolves and redevelopment of the accommodation transfer industry strategic plan, and the resort how that manifests into the experiences service building and surrounding land parcel. specific Strategic Management Plan. Both that our growing community shares with Resort management have worked with the these documents will be priorities through resort guests and users. Victorian based alpine resorts, regional 2019, as they form the basis of the resort’s Central to this is the Board. It is tasked with the functions to plan for the development, promotion, management and use of the resort, whilst delivering an array of services and doing this in a manner which is environmentally sound and responsible. The overall custodianship of the resort sits across many interests, where the successful management of its constituent parts requires the Board and management to meaningfully engage and collaborate. In doing so, this assists in ensuring that the collective vision of the resort encompasses its unique history, its authentic present and its aspirational future. Underwritten by these collective efforts, the Board and management can then execute its functions and build a destination that will be vibrant and sustainable well into the decades ahead. In November 2018, the resort was recognised for its seamless and unified approach to delivering a world class all seasons alpine resort by winning a prestigious tourism award. The resort was nominated in the Major Tourism Category at the RACV Tourism Awards. The awards are the penultimate recognition of tourism operators across the state. After being awarded Bronze in 2017, Falls Creek Alpine Resort this year received
6 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 7 Resort Profile Vision, Mission and Principles
Strategic Vision Guiding Principles custodians for our environment and planning for its sustainability, we are then able to Within the context of the Alpine Resorts To achieve this mission, our guiding principles, facilitate and build prosperity for Strategic Plan 2012, the Board has defined formulated through collaboration across the the local and regional community. the vision for Falls Creek as: A vibrant and workforce, and embedded into • Dedicated and Passionate: We live, distinctive village offering Australia’s most all facets of the organisation, are: breathe, use and thoroughly appreciate memorable alpine experiences. • Exceed Expectations: By using integrity, the responsibility entrusted to us in managing the unique assets of the applying commitment and engaging with resort and surrounding high plains. Mission our users, the community and our staff, we will endeavour to excel. • Strive for Value: Through ensuring The mission for all resort management staff operational efficiencies are optimised, • Create Fun, Adventure and Lifelong is to see Falls Creek recognised as being infrastructure and services can be Memories: By inspiring people to embrace “an unparalleled, unique and world class all delivered that will enhance any activity, seasons alpine resort, renowned for being an active outdoor lifestyle. ultimately offering exceptional value Australia’s premier leisure, lifestyle and • Enacting Stewardship: Is about being and an outstanding mountain resort adventure destination.” accountable to our stakeholders, acting as experience to all users.
About Falls Creek Alpine Resorts Delivery of Government Strategic Plan 2012 Strategic Objectives Falls Creek is a major tourist destination in North East Victoria. The resort is set at In December 2012, the Victorian Government FCRM’s Strategic Management Plan altitude ranging from 1,210 to 1,850 metres released its new framework for the (“A Pathway to the Future”), outlines the and is surrounded by the Alpine National Park. development, promotion, management and Falls Creek uniquely benefits from strategic vision for Falls Creek supported use of Victorian alpine resorts. The vision for its hydroelectric heritage. In particular, the by the overarching Alpine Resorts Strategic Rocky Valley Lake and 65km of aqueduct the alpine resorts is: Plan 2012. It also details initiatives to be trails supports the resort’s water supply, “Victoria’s alpine resorts will be vibrant, implemented to deliver on the Government’s snow making capabilities and activity base. growing and sustainable places, delivering vision and strategic objectives. Falls Creek contributes significantly to the alpine recreational and tourism experiences Development of a new FCRM Strategic economy of the region. The resort generates that are available to all”. Management Plan has begun with a facilitated significant seasonal employment, particularly The plan outlines six strategic objectives: strategy session late in 2018, and will be in the nearby towns, and provides recreational informed by the new ARSP. The plan also provides specific actions opportunities and environmental values to to be undertaken to deliver on the The Board’s annual Corporate Plan details both the local and wider community. At the strategic objectives. three years of key initiatives and actions same time, the resort proudly maintains flowing from both the Alpine Resorts a vibrant but small permanent community Following an independent review of the Strategic Plan 2012 and the Strategic that uniquely maintains a year round primary current Alpine Resorts Strategic Plan (ARSP), Management Plan, and the resources school and a fully accredited child care centre. a new ARSP is being developed by the required to deliver thereon. The Falls Creek Alpine Resort Management Alpine Resorts Co-ordinating Council (ARCC) Board was established under the Alpine in collaboration with all the Victorian alpine The Falls Creek Master Plan is supported by Resorts (Management) Act 1997. The Board resort management boards and a broad this Strategic Management Plan. It includes operates under its registered business range of stakeholders. The new ARSP is a ten year vision and associated asset trading name of Falls Creek Resort scheduled for release in 2019. management/renewal plan. Management (FCRM). The responsible Minister during the 2018 reporting year was Strategic Objective 1: the Hon Lily D'Ambrosio MP, Minister for Enhancing the visitor experience and Energy, Environment and Climate Change. developing resorts Alpine Resorts While responsibilities include elements Strategic Plan similar to a local government authority such Strategic Objective 2: 2012 as planning and the provision of infrastructure Delivering resort services and services, FCRM also has a responsibility infrastructure efficiently and accountably for Crown Land management, destination marketing of the resort, and resort promotion. Strategic Objective 3: Falls Creek It is expected to commercially manage the Building partnerships Strategic Management Plan leases of public land in the best interests 2013 of the people of Victoria. Strategic Objective 4: FCRM is an organisation with assets Respecting the alpine environment comprising Crown Land, public utilities, and infrastructure assets. Annual recurrent revenues are approximately $12 million. Strategic Objective 5: Broadening access opportunities Corporate Plan Master Plan Expenditure is primarily directed to visitor (three year (ten year services, infrastructure services including roads, delivery plan) development blueprint) water, sewerage, waste management, winter Strategic Objective 6: operations (ski patrol, cross country skiing Regulatory reform and snow clearing), and resort promotion.
8 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 9 Year at a glance
co-operative marketing revenue and loan is paid down. A small gain of less than Financial Position Five year financial summary insurance recoveries being partially offset $1k was made on the disposal of obsolete The 2018 financial year recorded a by lower property and leasing fee income and surplus assets. 2018 2017 2016 ^ 2015 2014 comprehensive surplus of $176,435 which and sponsorship revenue. FCRM’s financial position and net assets was an improvement of more than $1m on the Operating expenditure rose to $10m, a remain healthy and provide a sound and Visitor fee income 4,506,227 3,950,613 3,638,581 3,031,377 3,182,019 previous year. The strong result was built on a solid platform for future operations: $0.33m (3.4%) increase on 2017. The main Site rental 1,607,920 1,666,650 1,860,978 1,680,338 1,676,083 healthy operating surplus of $2.3m and strong variances were due to: • 2018 continued the cash consolidation cash inflows of $2.1m from operating activities • increased operational costs in managing the following the extensive capital works program Service charges 4,718,573 4,124,507 4,473,546 3,683,205 3,497,363 following continued excellent resort visitation very large 2018 snow season which directly over the 2013-2016 period, with a $1m and cost containment. The operating surplus Government contributions 245,513 349,041 1,142,244 1,208,050 314,215 impacted expenditure on transport, road increase in year-end cash balances to $1.7m; was $14k above the 2018 budget, while the clearing and grooming services; comprehensive surplus was $0.1m below • capital works projects included upgrades Other income 1,239,609 1,186,718 1,187,767 934,267 2,253,692 • additional events held and the higher to waste water treatment plant systems, budget due to depreciation and amortisation Total revenue 12,317,842 11,277,529 12,303,116 10,537,237 10,923,372 charges being $0.1m higher than expected. promotional, set-up and operational expenses Eagle Chair power supply, Village Bowl utility services, building fixtures, lighting, in the formative years of these new events; Operating expenditure * 9,999,552 9,669,774 10,910,232 9,075,034 7,791,254 Operating revenue grew strongly to $12.3m, stormwater and water supply infrastructure; which was $0.8m higher than budget and • additional recycling compliance costs; signage; oversnow vehicles and equipment; Operating surplus/(deficit) 2,318,290 1,607,755 1,392,884 1,462,203 3,132,118 $1m more than total 2017 revenue: • higher utility tariffs, particularly electricity, public sculpture installations; ICT and OH&S • visitor fee income (mainly resort entry fees) prior to tenders for new electricity contracts equipment; and other minor capital items; Non-operating transactions 2,141,855 2,457,581 5,867,192 2,375,801 2,273,129 rose by $0.56m to $4.51m due to continued to commence in 2019; • a focus on revenue protection and tight cost Total expenditure and other economic flows 12,141,407 12,127,355 16,777,424 11,450,835 10,064,383 strong visitation; • increased maintenance costs from more control resulted in robust net cash inflows • site rental revenue fell by $59k (3.5%) to intensive infrastructure, plant and equipment from operating activities of $2.1m; Comprehensive result 176,435 (849,826) (4,474,308) (913,598) 858,989 utilisation during the extensive 2018 snow $1.61m from some lower site valuations • total assets increased marginally by $53k season; Cash inflows from operating activities 2,091,631 1,171,964 1,825,827 479,937 2,895,186 within the valuation cycle; to $91.3m, which is a sound asset base for • service charge income rose by $0.59m to • expanded bike patrol and coverage of the organisation’s continuing operations and Total assets 91,316,488 91,263,346 92,463,394 96,118,074 97,316,705 $4.72m, due to increased capital ingoings long-term WorkCover absence; and activities; and from site redevelopments; • additional pass through costs and on-charges. • total liabilities decreased by $123k to Liabilities 2,639,078 2,762,371 3,212,593 2,807,965 3,222,998 • government contributions fell by $0.1m $2.6m, primarily from a $173k drop in total Depreciation and amortisation charges Net assets 88,677,410 88,500,975 89,250,801 93,310,109 94,093,707 to $0.25m and comprised mostly of child of $2.1m comprised the bulk of the non- borrowings. Liabilities are a low 2.9% of the care centre subsidies, grants, rebates and operating items and increased by $44k over total asset base of $91.3m. benefits ($0.2m); and 2017 due to additional assets capitalised The table on the adjacent page 11 illustrates ^ 2016 figures are for 14 months due to the change of financial year end to 31 December, whereas the comparative years are 12 months. • other income grew marginally by $53k to during 2018. Interest expense on the 10 year the resort’s financial performance and * Operating expenditure excludes financing charges and depreciation/amortisation, and therefore differs from total expenses from transactions on page 36 of the $1.24m, with the main higher variances in TCV loan decreased by $7k to $35k as the position for the past five years. financial statements.
10 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 11 Enhancing the Visitor Experience and Building Partnerships
• Falls Creek Chamber of Commerce Emerging Markets resort as his training base. The development & Stakeholders of the Nordic Bowl, which is shovel ready, Mountain biking – The resorts unique offer will further support this market. • Falls Creek Alpine Association is supported by trails built by world leader Car / motorbike touring – This continues to • Falls Cycle Club World Trail; shuttles by industry leader Blue see organic anecdotal growth year on year. • Falls Creek Historical Society Dirt; Bike Patrol; and ride in / ride out access Snowplay – With the increase in new suitable for all riders’ abilities. A stand out is ‘Melburnian’ visitors, Resort Management is • Melbourne Track Club a green trail from the top of the mountain to collaborating with FCSL to ensure a holistic • Mountain Bike Australia the lake foreshore. snowplay offer is available for non-skiers/ The resort is working collaboratively with boarders to create ‘snow visitors’ for life. • North East Victoria Cycling Disabled Wintersport Australia (DWA) on trails Water sports – Building on the success Optimisation Project (NEVCO) suitable for adaptive mountain biking along from the 2017-18 summer, Rocky Valley Lake • Park Victoria with other nature-based activities. activities were activated during the key • NEW – Protect our Winters Altitude training – The resort continues summer holiday period. to be an attractive option for athletes, Hiking – Falls to Hotham Crossing. The • NEW – BMW Australia Falls Creek continues to • Introduction of roaming Guest Services August particularly in the lead up to the 2018 Gold finalisation of the Master Plan will see the volunteers at key visitor arrival nodes. • Kangaroo Hoppet • Ski & Snowboard Australia Coast Commonwealth Games, with English enhancement of this offering from a facility increase visitation on an athletes Charlie Grice and Kyle Langford and branding perspective. With the trail • Sled Dogs • Specialized Bikes all season basis. Events attending a camp. UFC middleweight world head proposed at Rocky Valley Lake, new September • Tourism North East champion Robert Whittaker also chose the activation opportunities will become available. Summer 2017-18 visitors increased 3.5% to The resort continues to expand its annual • Light the Night the previous year with 97,493 visitors and calendar in collaboration with experienced 175,487 visitor days. event organisers. A further $5.5 million worth October of potential events are currently in the pipeline. • McKayos 2018 Significant Achievements November to April is the key green season visitation periods and June to September, November • GOLD WINNER – RACV Tourism the winter season. May and October are the • Ignition - Mountain Bike Park Opening Awards 2018 in the Major Tourism lowest periods. The annual event calendar 50% year on year increase Destination category; currently consists of: • Falls Creek Alpine Challenge • A 13% increase on the 10-year winter visitor average and 22% on visitor days; January • MTBA GE Gravity Enduro • Events hosting with an estimated economic • Kids Club – daily • Altitude Training camps impact of $5 million and 450 jobs; • Dash for Cash December • Astra Lodge – 3rd year – Australia's Best • Falls to Hotham crossing shuttle • Carols by candlelight Ski Boutique Hotel 2018; • Dragon Boats Regatta • NEW – New Year’s Eve celebrations. • Raised over $17,000 for the Leukaemia • MTB de femme, 60% year on year increase Foundation since 2014, $10,000 for Motor Neurone Disease since 2016 and $20,000 • Curated Bushwalks Destination Marketing for the Farmers Drought relief fund ‘Parma • NEW - Lake Activation for a farmer’; Resort Management continue to drive destinational marketing for the resort on • Continue to host the largest southern February an all season basis in line with the Marketing hemisphere cross country ski event, • NEW - XCO Strategy 2017-2019. The objective is to the Kangaroo Hoppet, with over 1,000 support tourism and economic development participants, including 24% from 23 March and improve the visitor experience. An update international nations; • Peaks Challenge of the Falls Creek Marketing Strategy will be • Positioning of Falls Creek Mountain Bike • Junior Peaks informed by the Alpine Resorts Co-ordinating (MTB) Park as the most appealing element of • Regional Longest Lunch – year on Council’s next 5-year strategic plan scheduled the current High Country mountain bike offer; year growth for release during 2019. • Hosted the International MTB event Crankworx for a site inspection for a future April Partnerships event location; • Easter • Year on year increase in business operators • MTBA Gravity Enduro Round Key partnerships and collaborations are open all year round; a key element of the resort’s continued • Hosted 2 rounds of the Mountain May development, success and visitation increase: Bike Australia (MTBA) Gravity Enduro • High Country Harvest Bonfire • AGL National Series; • Albury City Council June • Largest McKayos participation, a year • Alpine Shire on year increase of over 200%; • Ice Plunge • Blue Dirt • 22% year on year increase on MTB shuttles. • Opening weekend • NEW - Dirt Diva’s • Falls Creek Resort has a Certificate of Excellence and 4.5-star rating on July • Disabled Winter Sports (DWA) TripAdvisor; and • FCSL hosted snow related events • Falls Creek Ski Lifts (FCSL)
12 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 13 Developing the Resort and Broadening Access Opportunities
FCARMB has continued New Leases and Through public workshops and information An analysis of property sales in the resort Australia requirements at Falls Creek Alpine health efforts were focussed on an educational over the last 18 years indicates a strong Resort. Annual scheduled inspections are approach to inspections, ensuring new staff Property Transactions sessions, FCARMB has been engaged with all to work proactively to lessees with less than 10 years to run on their market recovery following two key macro- conducted throughout all buildings in the were aware of statutory responsibilities. All drivers: Global Financial Crisis (2008) and village to ensure compliance with all relevant sites complied with all statutory requirements. A strong leasing framework remains a lease to ensure that the process for lease develop and refurbish the the Helmsman Sale (2011) that drove down standards. FCARMB worked closely with keystone for the progressive development renewal runs smoothly. industry real estate values. resort operators to comply with new pool and resort to ensure it remains of the village. Appropriate lease negotiation Developments have continued on various Commercial Vibrancy spa fencing regulations. Resort Management and subsequent development provides In 2018, the assessment of fair value by the sites throughout the village as lessees also worked with the Victorian Building a contemporary premier the foundation for the village to remain a Office of the Victorian Surveyor General Short-term authorities and street trading undertake refurbishment and upgrade Authority Cladding Taskforce on identifying contemporary guest experience at all times valued the village leasehold sites at permits were issued in 2018 to provide tourist destination. requirements for leases or lease obligations and assessing exterior cladding on public of the year. A continued strong emphasis $27,690,369 with the balance of the resort commercial vibrancy and diversity in guest that have been issued over the previous five buildings for unsafe materials. Through the progression of new leases, lease on environmental performance and the valued at $10,397,000. The improved value of offerings throughout the resort. Street trading years. Refurbishments and upgrades totalling renewals and strategic resort developments, Falls Creek Design and Siting Guidelines the resort, excluding publically owned assets, All environmental health requirements for the augmented lease-based trading in key more than $10m were undertaken by several nodes during the winter and non-winter FCARMB has implemented the Alpine Resorts ensures all lease renewals are completed was valued at $ 246,140,000 in 2018. Land resort encompassed in the Food Act 1984 key sites in the village in 2018. valuations were undertaken on 26 leased sites periods. Pop-up stalls and mobile vendors Leasing Policy in accordance with the goals to contemporary standards. and the Health Act 1958 are met by FCARMB as per lease requirements. The combined land provided commercial food and beverage and objectives in the: Falls Creek has over half (52) of the current FCARMB has worked with lessees to ensure through a services contract with the Indigo value of these sites represented a $34,988 for remote events. leases with more than 30 years until expiry. that all scheduled obligations are met in Shire. Inspections of 45 food premises, • Alpine Resorts Strategic Plan 2012; reduction in overall land values in the resort. Of the remaining 43 leases, 15 have over 20 accordance with leases, the Building Code 49 accommodation facilities, 1 premise Summer trading continued to be a strong • Falls Creek Strategic Plan 2013 – years to run, 7 have between 10 – 20 years, of Australia and planning permits issued selling tobacco and 4 health premises were point of industry difference for Falls Creek A Pathway to the Future; and, 8 have between 5 – 10 years., 6 have less under the Alpine Resorts Planning Scheme. Statutory Compliance conducted during the season. Educational with a genuinely viable summer season that components were included in these visits offers commercial opportunities for resort • Falls Creek Master Plan 2016. than 5 years to run and a further 7 leases are There has continued to be steady property undertaking scheduled works to meet the In accordance with Section 192 (1) of the where needed in the areas of tobacco reform stakeholders. FCARMB will pursue further movement throughout the previous year conditions of Agreement to Leases that, Building Act 1993, FCARMB ensures and aquatic facility maintenance. Due to the growth in the summer market to create Strengthening Our in Falls Creek. Property sale transactions once complete, will secure new long-term compliance with all Building Code of seasonal changes in staff, environmental greater commercial vibrancy. Summer Market leases for the site. All new leases granted at were strong in 2018 with 37 commercial Falls Creek in 2018 have been in accordance transactions consented by the Board Falls Creek strengthened the non-winter with the Alpine Resorts Leasing Policy, representing over $12m of invested capital. market through further investment in summer statutory planning provisions and Board The 37 property transactions comprised infrastructure and promotional partnerships policies and strategies. 2 head leases and 35 subleases. that provide broader exposure to Victoria’s Falls Creek Property Sales alpine landscape. $25,000,000 $500,000 On-going activation of mountain bike and Table 1: Remaining Crown Lease Terms walking trails provided key non-winter infrastructure assets that drove significant $450,000 tourism at Falls Creek during the steadily Lease Term Remaining (Years) increasing summer market. Year-on-year 7 market growth of the Falls Creek Bike Hub $20,000,000 $400,000 6 continued to provide a social and programme 30+ centre for all cycling activities in Falls Creek. 20 - 30 Combined with an events driven promotional 8 $350,000 strategy, the Falls Creek mountain bike 10 - 20 market share has steadily increased. 52 5 - 10 7 Commercial activation of the Rocky Valley < 5 $15,000,000 $300,000 Foreshore provided the first genuine sail Agreement to Lease boat and equipment hire in alpine areas in Australia. Greater facilitation of water-based $250,000 activities will remain a key point of difference 15 for Falls Creek in the summertime alpine tourism market. $10,000,000 $200,000 The Falls Creek Primary School, the only year-round alpine resort school in Australia, had 21 students enrolled year-round for 2018. $150,000 This is a strong indicator that families are choosing Falls Creek as a viable professional and lifestyle community. A limit capacity of $5,000,000 $100,000 40 students in winter highlighted a significant overflow of families seeking seasonal public education in the resort. Work will continue $50,000 in 2019 with the Department of Education and Training to look at long-term solutions to ensuring that public education needs are $0 $0 met for all families in the resort. Falls Creek 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009201020112012201320142015201620172018 is the only alpine resort that can offer year- round education. Sales Turnover $/Sale 6 Yr Moving Ave. Sales Price Poly. ($/Sale) 1 Yr Trend ($.Sale)
14 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 15 Delivering Resort Services and Infrastructure
The Infrastructure and Falls Creek Ski Lifts. Key highlights of this start to the season ensured the average Throughout 2018 there was a renewed Transport and the ski patrol consisted of 45 patrollers: 35 program included: focus on the delivery of safe and consistent paid staff and 10 volunteers. In addition, Falls depth was the 4th highest on record. Car Parking Services Mountain Response • upgrade and relocation of Village Bowl Interestingly, the pattern of snowfall in recent village roads with additional machinery time Creek welcomed two exchange patrollers from allocated to enhance the visitor experience Keystone and Squaw Valley USA, continuing water and sewer mains; times at Falls Creek has moved towards The resort once again offered a range of Group has the primary at the resort. our ongoing relationship with these resorts. • installation of new electrical substation at large storm-based accumulation, away from transport services in 2018, including the role within Falls Creek Eagle Chair and upgrade of power supply historical patterns which have been based This winter season, the village roads were Accommodation Transfer Service (ATS), village The patrol team undertake annual training Alpine Resort for the to Ski Patrol base; on more frequent smaller snow events. This closed to wheeled vehicle access for a total internal oversnow shuttle, Bogong High Plains to ensure their skills are maintained to a high has implications for machinery and resourcing of 106 days, the highest number of days ever standard. The Australia Ski Patrol Association • upgrade of stormwater systems; road shuttle, car parking service and freight provision of essential given the scale of these storms. recorded at Falls Creek. delivery service. All freight services were once (ASPA) refresher course was once again • upgrade of key waste water treatment conducted at Falls Creek during May 2018. Falls Creek’s renowned snowpack As experienced in 2017, chains were required again delivered free of charge to all business services, infrastructure and components; The course included patrol staff from Mount reliability ensured the exceptional winter on 4WD vehicles on the Bogong High and commercial lodges, removing many Hotham and was regarded as very successful. emergency management • replacement of degraded winter was maintained through to the end of the Plains Road during the snow season on one vehicles from the village roads and contributing equipment; and season on 7th October. occasion during the 2018 season, highlighting to an improved village amenity. The ATS The work of the ski patrol typically starts functions enabling the the impact of large snowfalls on this primary operates under a user-pays model with other well before the lifts open with a thorough • water supply security feasibility Resort Management again worked access road. services provided on a complimentary basis safety assessment of the ski area. This work Falls Creek village and investigations. collaboratively with Parks Victoria to provide as part of the resort entry fee. includes marking hazards and assessing the high quality groomed cross-country trails The Bogong High Plains Road between Falls broader resort to operate safety of ski runs. When the slopes open Winter Operations for a significant portion of the snow season. Creek and the Omeo Valley is not cleared of Further improvements were made to ATS snow throughout the season, enabling its use and transport operations including ticketing to the public, the patrol focus on mountain in a safe, reliable and The consistent snowfall provided excellent as a key cross-country ski trail. In 2018, the processes, car parking strategies, baggage awareness activities to educate guests The past winter was characterised by generally grooming opportunities with trail conditions contemporary capacity. road was closed to vehicles from 11th June transfer infrastructure and key arrival signage. on safe and social behaviour to ensure cold conditions and consistent snowfall. This amongst the best in recent times. For most until 2nd November due to substantial snow the ski area remains a safe and enjoyable resulted in an excellent snowpack from very of the season, 50km+ of groomed trails were Throughout the year these services include drifts and repair works being undertaken on experience for all guests. the provision and management of potable early in the declared snow season, right provided throughout the resort and adjacent Ski Patrol the road post season. Large snow seasons, such as 2018, are water, waste water treatment, waste through until closing weekend. Alpine National Park, at one point including During the season, Resort Management Falls Creek’s ski patrol is responsible for particularly challenging for ski patrol. Storm collection, roads and car parks, stormwater Natural snow accumulation began on 13th grooming all the way out to Cope Hut. cleared numerous tree and rockfall events safety on the ski slopes and in 2018 they again events created additional work to reset ropes, systems, public buildings, public spaces, June, 4 days after season opening, with an Participation in cross-country skiing at the and actively managed the road to support provided an exceptional public safety service. markers and signage, and avalanche control emergency management and geotechnical 83cm storm over the following 4 days. Other resort remained strong again in 2018 peaking chain fitting operations and critical gas tanker Patrollers are visible throughout the snow work was required to be undertaken in the risk mitigation. During the declared snow significant snowfall then occurred as follows: around Kangaroo Hoppet event weekend transit during storm events. season providing a range of services. In 2018, Ruined Castle area of resort. season, key services extend to include village • 31cm (22nd July) toward the end of August. transport, accommodation transfer services, • 32cm (1st August) freight services, car parking, snow clearing, Road Access village roads snow management, ski patrol • 70cm (9th August) and cross-country trail grooming. • 31cm (13th August) Maintaining a safe and user-friendly Many responsibilities of the resort are similar • 52cm (22nd August) village road network to ensure reliable to those of a municipality with the primary These snow events resulted in natural snow commercial operation of the resort and critical focus of work in the non-winter period depths peaking on 22nd August at 217cm, emergency services access is one of Resort being the maintenance of assets and key equal to the 2017 peak and the 6th highest Management’s primary responsibilities. infrastructure. In addition, capital works efforts total since records began in the early 1980s. As a ski-in/ski-out village, Falls Creek offers are concentrated during this period and are Additionally, the cold conditions and excellent a unique experience for snow enthusiasts. of critical importance to ensure priority asset renewal, replacement and re-investment programs are delivered for the resort. Falls Creek Snow Depths 2018
Asset Management 2018 30 Year Average
This year saw Resort Management invest 250 substantial energy into the improvement of the asset management program, including enhancement of the existing asset information 200 database, development of detailed asset management plans and comprehensive roll out of preventative maintenance programs for the existing asset base. 150 This work will place Falls Creek in a strong position for future investment planning and the modernisation of management 100
techniques will greatly assist the work Snow Depth (cm) effort effectiveness.
50 Capital Works Program
The capital investment program for 2018 focussed on addressing high priority asset 0 renewal and enabling works for the Eagle 6/6 13/6 20/6 27/6 4/7 11/7 18/7 25/7 1/88/8 15/822/8 29/85/9 12/9 19/926/93/10 Chair replacement project executed by
16 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 17 Delivering Resort Services Respecting the and Infrastructure Alpine Environment
The patrol is responsible for attending Water Supply and analysis of groundwater data and early FCARMB continued to Landscapes Program totalling $1.05m, spread target of 45%. The quantity of waste to landfill incidents, minor treatment/assessment in the identification of emerging hazards. over 5 years across 4 land tenure managers. per visitor day remained steady at 0.62kg/ field and transporting guests to the medical Falls Creek enjoys a unique high quality In addition to recurrent works monitoring risk prioritise the protection and Protection of our native ecosystems through visitor day during the winter period. centre. In 2018, the patrol responded to water supply that is compliant with the water via a network of ground water drains, a range enhancement of the alpine integrated cross-tenure boundaries remains Two hard waste collections were co-ordinated a total of 1,628 incidents which is a 25% quality standards prescribed by the Safe of capital works is undertaken each year. a core focus for environmental management by FCARMB over the year and changes in increase on the long-term average. This Drinking Water Act 2003 and Safe Drinking In 2018, these works included the upgrade environment throughout at Falls Creek. collection and sorting processes began to increase can be largely attributed to the Water Regulations 2015. During the year, the of degraded stormwater infrastructure, the 2018 financial year. be implemented in an effort to increase the increased patronage to the resort over winter, resort used a combination of groundwater replacement of failed retaining walls, improved Waste Reduction Initiatives recovery of hard waste materials. a shift towards beginner and intermediate from the new bore supply and surface water access to existing groundwater monitoring level skiers and the length of the season due from Rocky Valley Reservoir. The treatment bores and the installation of new groundwater Environmental The management of solid waste and the Research and Education process includes pH buffering and final monitoring bores. to excellent snow conditions. The Falls Creek Management Plan provision of waste services are largely carried ski-field injury rate remains steady at 1.7/1000 stage UV disinfection. The quality of supply In 2019, a full village risk analysis will be out under contract by 4Site Australia. Waste FCARMB collaborated with peak tertiary was maintained at exceptional standards was collected daily during the snow season skier days which compares very favourably undertaken to update the geotechnical risk In December 2017, the Board endorsed the institutions to undertake relevant alpine throughout the year. and twice weekly outside these periods. to international rates and is well below the ratings assigned to each area. Falls Creek Environmental Management research to enhance understanding of the accepted standard of 3.0/1000 skier days. Testing for water quality compliance is Plan (EMP). 2018 was the initial role out FCARMB continued to work collaboratively unique alpine biodiversity. Falls Creek Ski Patrol continued its focus conducted weekly at a range of locations Summer Operations of the EMP through embedding work with the North East Waste & Resource Key research undertaken has included: within the system. In 2018, results were fully Recovery Group (NEWRRG) partners to deliver on backcountry safety and improving the practices and administrative procedures • willow seed dispersal across the resort compliant with all legislative requirements. Visitation to Falls Creek in summer continues best practice waste recovery and recycling backcountry response of patrollers. The in best environmental practice. The EMP and Bogong High Plains. backcountry program included regular The Falls Creek Water Supply Risk to be strong and 2018 was no exception. As is one component of a new Environmental through various partnerships and programs. • nutrient surveys on endemic alpine shrubs assessment of conditions on Mt McKay Management Plan was audited 14th March a result there has been additional focus to Management System for FCARMB which Following on from previous years, FCARMB ensure service levels are adequate to meet and grasses. and provided public access data via the 2018 with a compliant result. provides the broader framework for actively supports and promotes the Living guest expectations. Increased utilisation of daily snow report. The annual consumptive water usage in environmental management and is modelled Bin organic waste recycling program. This • morphology of alpine plants adaption key infrastructure has also restricted access 2018 was 174 ML compared to 177 ML the on international standards (ISO 14001:2016). year the program successfully diverted 49.5 to climate change. Despite the snow conditions, Ski Patrol did to plant and roads during the summer works previous year. The plan covers aspects relating to tonnes of waste from landfill, up from 41.3 FCARMB again conducted the tertiary and not have to respond to any extended lost program. Careful planning is undertaken to biodiversity, water and catchments, waste tonnes in 2017. More broadly, the resort VCE environmental education presentation person incidents during the season. ensure the works program can be completed and resource use, land management, energy worked to increase resource recovery rates series for university and secondary students Waste Water Management with minimal disruption. Falls Creek and Mt Hotham Ski Patrols again and climate change. and the 46% diversion from landfill rate for throughout Victoria to promote and foster worked collaboratively with Parks Victoria, Management of village and resort parking Another key role for Resort Management is Key partnerships with adjacent land managers 2018, which was up from 40% in 2017, has greater understanding of the complexities Victoria Police, the State Emergency Service during peak periods was again required in the safe, efficient and compliant treatment underpinned landscape scale projects to already surpassed the 2020 resort-wide of our unique alpine landscape. 2018 to ensure the amenity and safety of the and Ambulance Victoria to activate the and discharge of waste water. The waste protect and enhance key biodiversity value village was maintained. “advisory alert” system for backcountry skiing water treatment plant operates year-round on the Bogong High Plains. enthusiasts. The heightened avalanche risk under a biological nutrient removal aerobic Falls Creek has a mountain bike trail network experienced in the Australian alps this season process with treated effluent discharged designed and built to international standards. Environmental Programs was evident on numerous occasions. into the Rocky Valley Creek catchment and This receives extensive use over summer and The Victorian Police Search & Rescue Squad activated sludge removed from resort during requires employment of dedicated resources FCARMB maintained collaborative work rope rescue training was also conducted at the summer months. The plant achieves to maintain these standards. with Parks Victoria to implement a fox baiting Mt Buller this year with attendance by Falls high standards of nitrogen and phosphorus Additionally, over the summer months a control program focussed on reducing Creek ski patrol representatives. removal. Final deactivation treatment is select group of ski patrollers are tasked with predation risk to the Mountain Pygmy Possum achieved using high intensity UV light. providing Bike Patrol for the mountain bike and other threatened native species. Feral cats were controlled through multiple targeted Effluent from the plant is subject to an EPA park. This greatly enhances user safety and Emergency Management shooting sessions over the year, also aiming to waste discharge licence that specifies limits assists in first response to incidents in the park. 46% reduce the threat of predation. The Mountain for a number of parameters, tested monthly. Resort Management is responsible for Pygmy Possum populations on Mt McKay and Testing in 2018 indicated the effluent from the OF TOTAL developing and maintaining a Municipal surrounding habitat areas continued to be plant was fully compliant with the parameters Emergency Management Plan (MEMP) surveyed as part of a long term monitoring WASTE RECYCLED specified in the discharge licence. that is compliant with the recently revised program. FCARMB also worked with Parks Emergency Management Act 2013. The Falls Resort Management has now completed an Victoria to implement camera monitoring for Creek MEMP Committee met twice during the upgrade to the operational risk management pest animals to help inform and improve the 2018 period, pre and post winter/fire season: plan for the plant and is continuing to improve effectiveness of pest control programs. 10th May and 18th October 2018. the reliability of the treatment processes. FCARMB continued to deliver a weed control Additionally, the Falls Creek MEMP was In 2018, the total annual discharge was 146 program across the resort, with a particular audited by SES on 4th April 2018 with a ML compared with 135 ML the previous year. focus on protecting high value environmental compliant result. areas such as alpine peatlands. Strategically the program targeted high risk weeds and Falls Creek prioritises a practical exercise Geotechnical Risk Mitigation dispersal vectors such as roads, bike trails to test the MEMP where activation has not Resort Management’s geotechnical and waterways, with the intention of limiting occurred. This year, several exercises were program is an essential component of the risk of weed spread into the surrounding undertaken over winter relating to mass National Park. 50 TONNES managing geotechnical risk in the resort. evacuation of village accommodation Most geotechnical works undertaken in 2018 Biodiversity Response Planning funding and a live field exercise to test ski lift AMOUNT OF FOOD WASTE used funds provided through the Department from the state totalling $87k over the next evacuation processes. of Environment, Land, Water & Planning 3 years was allocated for projects to protect DIVERTED FROM LANDFILL Resort Management remains committed (DELWP) Alpine Risk Mitigation Program. This threatened species, focussing on the critically to responsible and compliant emergency program has enabled Resort Management endangered Mountain Pygmy Possum management and works closely with all to design and deliver an ongoing recurrent Burramys parvis. This will be complemented agencies to ensure this can be achieved. works program that includes the collection by Federal funding from the National
18 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 19 Sustainability and Climate Adaptation
The Board recognises seasonal variability. Continued investment alpine climate trends to the end of the century; The 2018 white season days and Falls Creek again experiencing emissions targets. With the growth in summer in snow capturing and management • State-wide climate change and record visitor days patronage. All resorts visitation - supported by new activations in that climate change will infrastructure on the cross-country trails adaption policy frameworks from the generated the fourth experienced above average snowfall for the the aquatic and nature based segments - the continues to provide enhanced snow Victorian government, including ambitious season, contributing to excellent visitation resort will continue to experience strong continue to play a key role experiences for guests seeking alternatives deepest average snow and experiences for snowsports enthusiasts. green season guest volumes necessitating energy targets that apply to all public land to lifted activities. the need to track year round metrics for the in resort strategies and entities; and depth since 1998, with Closing out the green seasons for 2017/18 has Expanding the summer market has been seen the resort benefit from a robust schedule resort’s long term sustainability. • Climate Vulnerability Assessment operations in the future. a long-term strategy for the Board through respect to both snow depth of events, some starting even before the snow The summary table below provides for the resort. The resort is well positioned to meet the the development of key infrastructure and accumulative falls. had melted in November! Managing visitation key metrics being monitored by resort This information, combined with increased effects of a changing climate and realise new and events that will continue to provide a peaks is less challenging in the summer, but management with the intent to establish a baseline data collection will see the Board’s commercial and tourism opportunities with draw for year-round visitation. The 2017/18 With accumulating snowfall starting relatively nonetheless requires measures to ensure a suite of sustainability initiatives that will assist continued focus on adapting to climate a continued expansion into a year-round summer continued to see growth in visitation, early and supported by regular snow storms, unique experience can be had in the alps. in establishing frameworks for applying and tourism destination. supported by a pipeline of events. Average change through: it was the best start to the season since Having invested materially into infrastructure monitoring resource use within the resort. growth in summer visitation continues to 2000. This meant less reliance on snow and with upgrades to monitoring systems, Strengthening winter resilience through • Establishing carbon footprint metrics to exceed 15% per annum on a four year making and reduced water consumption by water consumption and processing volume increased investment in snow making measure and reduce the impact to the rolling basis. The development of 40km of Falls Creek Ski Lifts. More broadly, visitation through waste treatment facilities enables a technology has provided greater commercial global environment; mountain bike trails, funded through the was strong for the Victorian industry, with cross match to be applied to visitation metrics security for investors and operators during • Investigation into renewable energy sources Victorian Government Regional Infrastructure resorts recording a record 1.722m visitor and assists in managing waste reduction and the strong winter period. Upgrading to Development Fund, has provided a and green energy partnerships to meet the TechnoAlpin TF10 Snow Fans and expansion landscape-based activation of the resort to Victorian state-wide targets for renewable of the automated snow making system reduce the long-held commercial reliance energy consumption; continues to increase snow making efficiency Winter metrics Unit 2018 2017 on the winter season. Combined with 18 • Increased capacity to deal with year-round through more snow with less energy non-winter activity and cultural events, Falls significant storm events including continued Declared snow season days 121 127 consumption. Access to the 28,000ML Rocky Creek has continued to grow as an alpine review of the Emergency Management Plan Lifted skiing operations days 121 127 Valley Dam for snow making provides Falls destination of choice throughout the year. and resort risk profile; and Creek with the greatest snow making capacity Maximum natural snow depth cm 217 217 in Australia with over 100ha of man-made The Board has incorporated a number • Establishing baseline KPI’s for biodiversity Total natural accumulated snowfall cm 391 473 of contemporary modelling and policy snow to augment the natural falls. Combined condition. Village ski in / ski out days 106 82 statements into medium and long-term with the protected southern aspect of the Sun Total visitor days days 468,490 451,961 Valley ski area, the protection of the winter strategic planning, including the: snow product for lifted activities will provide • Potential Impact of Climate Change on Summer metrics resilience to changing snow conditions and Victorian Alpine Resorts study which predicts Total visitor days days 175,487 169,684 Summer events number 18 17 Water usage Annual potable water consumption ML 174 177 Annual potable water usage per visitor kL 0.629 0.636 Annual potable water usage per visitor day kL 0.270 0.285 644,000 469,000 Annual discharge of treated water to catchment ML 146 134 VISITOR DAYS Compliance with statutory and licence conditions: WINTER Safe Drinking Water Act % 100% 100% EPA licence conditions % 100% 100% ANNUALLY Energy usage Greenhouse gas emissions resulting from: 175,000 Electricity usage CO2e 1,172 1,205 LPG usage CO2e 223 217 Diesel and unleaded petrol usage CO2e 326 356 SUMMER Renewable energy consumed* % > 5% > 5% Greenhouse gas emissions *Electricity contracts include 5% renewable energy, but actual renewable proportion may be higher due to close proximity to hydro scheme. FCRM's electricity provider is unable to provide the exact renewable percentage. Waste data Total waste tonne 748.4 683.7 Waste disposed to landfill tonne 400.6 413.4 Waste recovered tonne 347.8 270.3 Waste diverted from landfill % 46% 40% Waste disposed to landfill / visitor day kg 0.62kg 0.67kg Paper usage A4 equivalent copy paper used ream 164 185 A4 equivalent copy paper used per FTE reams/FTE 4.7 5.8 Percentage of recycled content % 30% 20%
20 • SECTION 1: YEAR IN REVIEW FALLS CREEK ANNUAL REPORT 2018 • 21 Organisational Structure Board Profile
FCRM's functional Following the resignation of the Building Jo Shannon Lindy Allen She is currently a consultant providing advice Surveyor in September 2018, this function 30 March to 31 December 2018 1 January to 31 December 2018 and advocacy about planning policy and has been outsourced and a longer-term strategy. Michelle is a Graduate Member of the structure includes the Chair Jo Shannon brings to the Board Lindy is a highly-experienced senior executive contractual arrangement with a new Australian Institute of Company Directors, has over 20 years’ experience in financial currently operating Living-Proof Media, an following defined areas: Building Surveyor with extensive alpine an Honours Degree in Planning and Design management and corporate governance in independent consultancy to the arts offering resort experience was recently finalised. at Melbourne University and a Diploma in • Economic Development and local government, alpine resorts, hospitality services including documentation, evaluation, FCRM's organisational structure at Business Management at RMIT. Michelle is also Land Management; and the health sector. She is currently writing and editing for publication. Recent 31 December 2018 is outlined in the a member of the Victorian Coastal Council. • Marketing and Communications; the Director Community and Corporate professional roles include Chief Executive following chart. Officer of Regional Arts Australia (2013-2014) • Corporate Services; and Services with Towong Shire Council and Helen Moran and Chief Executive Officer of Regional Arts leads the Secretariat team for Rural Councils 30 March to 31 December 2018 • Infrastructure and Mountain Response. Victoria (2004-2012). During 2012-2013, Lindy Victoria Inc. Prior to local government, Jo’s was Executive Producer for the Centenary Helen Moran is an accomplished Executive management experience was gained in of Canberra's largest national community Leader, possessing extensive business and Melbourne media and technology companies engagement program, One River, spanning commercial knowledge and expertise within and the alpine sector where she was four states and a territory. Current board roles the ski resort and tourism industries. Helen employed by the Falls Creek Alpine Resort include the Cultural Development Network has a demonstrated track record of providing Management Board as the CFO and senior and Winton Wetlands. Former board roles tangible results that positively impact executive, leaving in 2013 to pursue other include Narrandera-based arts organisation, on organisational performance. Helen is professional opportunities. More recently The Cad Factory, Lakes Entrance-based experienced at initiating strategic change that Falls Creek Jo has served as a Member of the Mount positively impacts on efficiency and bottom Finance, Risk Arts and Culture Planning and Land Aboriginal cultural organisation Wurrinbeena, Alpine Resort Remuneration line profitability, without compromising quality and Audit Development Management Hotham Alpine Resort Management Board Regional Arts Australia and the Australian Management Board Committee of service or standards. Adept at providing Committee Committee Committee and as Chair of its Audit Committee. As a Children's Theatre Foundation. Other roles keen skier and bushwalker, Jo has spent include judge and mentor for the Victorian leadership throughout an organisation, and extensive time in the Victorian and NSW Tourism Industry Commission RACV Tourism recognised as a strategic thinker and leader Alps and has travelled to many overseas ski Awards. Professional qualifications include within the industry, Helen’s past experience on various committees and boards in the Chief Executive resorts in North America, Europe and Japan. Bachelor of Arts (University of Melbourne), Alpine Resort area and generally in tourism O cer She is a full member of Albury Ski Club and Graduate Diploma Arts Management allows her to contribute towards the future an associate of Myrtleford Ski Club and (University of South Australia), photojournalism direction of Victoria’s Alpine Resorts. has been part of the broader Falls Creek major, Bachelor of Creative Arts, Latrobe University, Bendigo and Graduate, Australian community for over 20 years. Now living in Peter Valerio Executive Assistant Institute of Company Directors (GAICD). and O ce/HR Albury, Jo considers herself very fortunate 30 March to 31 December 2018 Administrator to have lived for 15 years in Mount Beauty, Jason Alexandra Peter has over 30 years’ experience in raising a young family and serving on a 1 January to 31 December 2018 commercial, public sector and business range of community boards, including the roles within the tourism sector and is widely Alpine Health Board of Management, Alpine Jason Alexandra has over 30 years’ Director Economic Director Director respected for his destination marketing Director Corporate experience working on sustainability and Development and Marketing and Infrastructure and Shire Council Audit Committee and the local expertise. In his early career he was General Services natural resources management (NRM) Land Management Communications Mountain Response Bendigo Community Bank. Jo is committed to operating consulting, revegetation and farming Manager for one of Australia’s largest ski tour engaging communities to deliver a range of businesses and working in senior roles in operators and accommodation providers. He Chief Financial sustainable strategic outcomes as Falls Creek O cer national and international organisations. is a former senior executive of the Australian positions itself for the future. Senior Economic Online and Events and Asset Capital Tourist Commission where he was responsible Winter Services Ski Patrol and Supply and Risk Development Marketing Visitor Experience and Services and Utilities Jason has been a Director of Land & Water Coordinator Risk Manager Coordinator for evaluating the Commission’s global Co-ordinator O cer Coordinators Manager Manager Australia and the Port Phillip CMA. As the Sue Lebish marketing program, strategic analysis and Executive Director of the Earthwatch Institute, 1 January to 31 December 2018 resource allocation. He was part of the ATC Accountant Jason initiated the successful citizen science Sue has over twenty years professional and team that developed ‘destination branding’ Resort Entry/ program ClimateWatch. Between 2008 Environment Visitor Info/ Snow Services Treatment Plant senior management experience in Local – an approach to destination marketing has Visitor Info Mechanics Ski Patrollers ICT Manager and 2013, Jason was a senior executive O cer Admin O cer O cers Operators been adopted around the world. For the past Centre Government, University and the Banking at the Murray Darling Basin Authority with 23 years he has provided consulting services sectors providing finance, governance, project responsibilities for NRM, water reform, climate Corporate to a wide range of destinations in the form of Services O cer and risk management roles in Queensland, science and ecosystem management. Canberra and Victoria. She is on the Winton tourism strategies, plans and related market Resort Services Child Care As the managing director of Alexandra and Wetlands Committee of Management, Chair of analysis. He led the rebranding of Far North O cers Manager Associates Pty Ltd, Jason has completed Queensland, guided the Hong Kong Tourism the Audit Committee for the Alpine Shire and over 100 consulting projects on sustainability, Board’s strategy in the post-handover period has held various other Board appointments in natural resources management, environment and assisted in the development of three Government Owned and University Research and water policy. consecutive Tourism Master Plans for NSW. Corporations. Sue's formal qualifications Child Care He has also advised a wide range of private Workers include a graduate of the Australian Institute Michelle Croughan sector tourism industry clients in most sectors of Company Directors, a Master of Business 30 March to 31 December 2018 of the tourism industry. More recently, he has Administration, a Bachelor of Commerce, a Michelle has worked in local and State assisted NSW National Parks & Wildlife Service Certified Practicing Accountant and she is government as a planner, with a particular focus in areas of asset management, consumer also a member of the Australian Risk Policy on the management of the planning system, experience and product development. He is a Institute. She is a keen skier who has visited for over 20 years. Michelle was the Manager former faculty member of Hawaii’s Executive Falls Creek since the 1980’s and has a strong of Alpine Planning for the State Government for Development Institute for Tourism where he belief in the commercial, ecological and social a number of years and over the last 15 years delivered executive training modules in tourism value of the Alpine regions to the local and has spent considerable periods of time in ski marketing and market research. He is married regional communities. resorts in Australia and Japan with her family. with four children and lives in NE Victoria.
22 • SECTION 2: GOVERNANCE FALLS CREEK ANNUAL REPORT 2018 • 23 Board Committees
Anne-Marie Tenni work together to achieve the best possible a practical approach to decision making The Board meets regularly and operates conducted both by the organisation’s Arts and Cultural Development Committee 1 January to 29 March 2018 environmental outcomes. Anne-Marie has derived from her experience in public land with a Committee structure as detailed internal and external auditors; This committee was formed to 2016 to hands-on experience living, working and management, running a small rural property below to meet accepted principles of good Anne-Marie Tenni brought 30 years’ b) maintaining open lines of communication develop an arts and culture strategy to managing the alpine environment at Falls and spending a large amount of time at Falls governance and compliance requirements with the Board, the internal auditors and experience to the Board in environmental connect key points identified in the Falls Creek. She has worked extensively with Creek over all seasons. Formal Qualifications: and to assist with the work of management the external auditors; Creek Master Plan. The committee oversees management encompassing natural resource and the Board. government and private sector agencies, Degree in Agricultural Science (MU) and c) reviewing the financial information to the implementation of this strategy which management, pollution control, environmental Landcare and Friends groups as well as post-graduate degrees in Environmental be presented by management to the provides a clear framework for development management systems, auditing and Finance, Risk and Audit Committee contributing to community groups including Engineering (MU) and, Agriculture and Rural Department of Environment, Land, of arts and culture in the resort. governance. She has worked in both public Race Club, school boards and her local Development (UWS). Anne-Marie left the The primary objective of the Finance, Risk Water and Planning (DELWP); Membership during 2018 included: and private sectors encouraging people to revegetation groups. Anne-Marie brings Board at the end of March 2018. and Audit Committee (FRAC) is to assist the d) reviewing the adequacy of internal controls; Board to fulfil its corporate governance and - Lindy Allen (Chair) oversight responsibilities relating to financial e) oversight of compliance and - Sue Lebish (to March 2018) recommendations to the Board as to accounting practices, risk management, - Peter Valerio (from April 2018) internal control systems, external reporting appropriate policies and governance; and - Stuart Smythe and the internal and external audit functions. f) reviewing the Risk Management Framework All the Committee are independent, and critical risks from the Risk Register. - Debbie Howie (Falls Creek Chamber non-executive members. The FRAC has Substantial work and effort was directed to of Commerce representative) appropriate financial and industry expertise, improve and streamline processes; monitor - Lisa Logan (Falls Creek community and members are financially literate and risk management; ensure security of systems; representative) have an appropriate understanding of the enhance governance and compliance; ensure - Karen Smythe (Falls Creek Historical operation of the Resort Management Board. procurement probity; implement standardised Society representative) Membership for the 2018 year included: reporting and bring policies operating within the organisation up to date. Further refinement Remuneration Committee - Lindy Allen (Chair to March 2018) will continue in 2019. This Committee’s responsibilities relate to the - Anne-Marie Tenni (to March 2018) Planning and Land appointment and performance of the Chief - Jason Alexandra (to March 2018) Executive Officer and executive remuneration Management Committee - Sue Lebish (all year; Chair from April 2018) policies, reporting and performance. This committee assists the Board in fulfilling Membership during 2018 included: - Jo Shannon (from April 2018) its responsibilities relating to planning and - Michelle Croughan (from April 2018) land management within the resort. - Helen Moran (from April 2018: Chair) - Helen Moran (from April 2018) Membership during 2018 included: - Jason Alexandra - Anne-Marie Tenni (Chair to March 2018) - Sue Lebish FRAC Duties and Responsibilities: - Jason Alexandra (Chair from April 2018) - Lindy Allen (to March 2018) The FRAC has a range of duties and responsibilities to fulfil as a Committee of the - Sue Lebish - Jo Shannon (from April 2018) Board. In summary, these duties include: - Michelle Croughan (from April 2018) a) reviewing the program and the audits - Peter Valerio (from April 2018)
Board and Committee Attendance
Planning and Land Finance, Risk and Arts and Cultural Remuneration Name Board Management Committee Audit Committee Development Committee Committee Jo Shannon 7/7 6/6 1/1 Lindy Allen 8/9 2/2 5/5 1/1 Jason Alexandra 6/9 7/7 2/2 2/2 Sue Lebish 9/9 7/7 8/8 1/1 2/2 Michelle Croughan 6/7 4/5 5/6 Helen Moran 6/7 5/6 1/1 Peter Valerio 7/7 5/5 4/5 Anne-Marie Tenni 2/2 2/2 2/2 Stuart Smythe 5/5 Debbie Howie 3/5 Karen Smythe 4/5 Lisa Logan 1/5
Note: Excludes sub-committee meetings attended by Board members in an observational or invited capacity, when they’re not members of that sub-committee. Also excludes management who attend by standing invitation but are not official Committee members.
24 • SECTION 2: GOVERNANCE FALLS CREEK ANNUAL REPORT 2018 • 25 OH&S and Human Resources
Occupational Health • development of Safe Work Method • workplace safety discussions – daily Industrial Relations Statements (SWMS) covering high risk and Safety (OH&S) “toolbox/morning briefing” meetings for work activities within the Infrastructure all ski patrol and other outdoor crew; The ratification of the four year Enterprise Agreement (EA) in October 2016 provided for annual wage increases in exchange for identified savings and Mountain Response directorate; and aligned indoor and outdoor employee pay-bands and classifications. A small number of EA queries have been subsequently clarified and some Falls Creek Resort Management is committed • flu vaccination and employee employees have entered into individual flexibility arrangements. There was no lost time during the year from industrial disputes. As the current EA to providing a healthy and safe workplace. • continued refinement of the online Work assistance program; Health & Safety (WHS) system which provides expires on 30 June 2020, initial planning and consultation meetings for the new EA will commence during 2019. The OH&S strategy is to ensure that • ongoing staff training to meet requirements in access to online inductions, incident/hazard employees, contractors and visitors remain safety compliance, emergency management safe and healthy at work and while enjoying reporting, policies, forms, contractor licences, and personal development; and the alpine activities that Falls Creek has certificates and insurances and a broad Workforce Data on offer. Some of the OH&S initiatives and range of other OH&S information, data, • workplace inspection program, evacuation drills and other regular OH&S tasks to actions in 2018 included: registers and documents; December 2018 December 2017 ensure resort safety and compliance. • upgrades to safety / personal • addressing items in the Health and Safety Fixed Term/ Fixed Term/ All Employees Ongoing All Employees Ongoing protective equipment; Action/Improvement Plans; Casual Casual Full- Part- Full- Part- H/C FTE time time FTE H/C FTE H/C FTE time time FTE H/C FTE 2018 OH&S performance H/C H/C H/C H/C Demographic Data Measure KPI 2018 2017 2016 Gender Incidents Number of incidents 83 69 49 Rate per 100 FTE 237.1 215.6 148.5 Male 27 22 13 3 15 11 7 26 21 14 1 14 11 7 No. of incidents requiring first aid and/or further medical treatment 24 19 11 Female 17 13 9 2 10 6 3 15 11 7 3 9 5 2 Claims Number of standard claims 5 3 3 Self-described n n n n n n n Rate per 100 FTE 14.3 9.4 9.1 Age Number of lost time claims 5 3 2 15-24 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Rate per 100 FTE 14.3 9.4 6.1 25-34 9 7 5 1 6 3 1 7 5 3 1 4 3 1 Number of claims exceeding 13 weeks 0 1 0 35-44 16 13 10 2 11 4 2 17 14 9 2 10 6 4 Rate per 100 FTE 0.0 3.1 0.0 45-54 14 12 6 1 7 7 5 12 10 8 0 8 4 2 Fatalities Fatality claims 0 0 0 55-64 4 2 1 1 1 2 1 4 2 1 1 1 2 1 Claim costs Average cost per claim $3,854 $14,457 $24,519 Return to Work (RTW) Percentage of claims with RTW plan < 30 days 100% 67% 100% 65+ 1 1 0 0 0 1 1 1 0 0 0 0 1 0 Management commitment OH&S policy statement, OH&S objectives, regular reporting completed completed completed Classification to Board and senior management of OH&S, and OH&S plans Data Evidence of OH&S criteria(s) in purchasing guidelines completed completed completed Band 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (including goods, services and personnel) Band 3 4 2 0 1 1 3 1 3 2 0 0 0 3 2 Consultation and participation Evidence of agreed structure of designated work groups (DWGs), completed completed completed Band 4 10 7 5 0 5 5 2 8 5 3 0 3 5 2 health & safety representatives (HSRs) and issue resolution Band 5 14 10 8 2 9 4 1 14 10 8 3 9 3 1 procedures (IRPs). Compliance with agreed structure on DWGs, HSRs and IRPs completed completed completed Band 6 6 6 5 1 6 0 0 6 6 5 1 6 0 0 Risk management Percentage of internal audits/inspections conducted as planned: 100% 75% 70% Band 7 5 5 4 1 5 0 0 6 5 5 0 5 1 0 No. of improvement notices issued by WorkSafe inspector 0 0 0 Executives 5 5 0 0 0 5 5 4 4 0 0 0 4 4 Percentage of issues identified actioned arising from: Total 44 35 22 5 25 17 10 41 32 21 4 23 16 9 - Internal audits/inspections 100% 100% 100% Employees - HSR provisional improvement notices 0% 0% 0% Abbreviations: H/C = Headcount; FTE = Full-time Equivalent; n = no-one has identified in the category - WorkSafe notices 0% 0% 0% Note: FTE figures in above table are rounded to the nearest whole number, so there may be rounding errors for some totals. Training Percentage of managers and staff that have received OH&S training: - Induction (including contractors and temps) 100% 100% 100% - Management training 73% 80% 75% Percentage of HSRs trained: - Acceptance of role 100% 100% 100% - Re-training (refresher) 100% 100% 100% - Reporting of incidents and injuries 100% 100% 100%
The number of incidents increased in 2018 primarily due to injuries from increased green season activity, greater staff familiarity with the WHS online reporting system and heightened awareness of the importance of reporting all incidents, in addition to the flow-on effect of the rise in resort visitation across all seasons. The number of lost time injury claims increased to 5, which was a rate of 14.3 per 100 FTE (Full-Time Equivalents). The lost time injuries were all musculoskeletal injuries, none of which have required surgical intervention to date.
26 • SECTION 3: OH&S AND HUMAN RESOURCES FALLS CREEK ANNUAL REPORT 2018 • 27 Compliance Items
Statutory Undertakings • To act as a committee of management of • Fixing contributions for specified services • Granting of licences in accordance improper conduct by public officers and public Road Safety Act 1986 any Crown land deemed to be permanently in accordance with Section 13; with Section 7. bodies. The Act aims to ensure openness and Falls Creek exercised its role as a public reserved under the Crown Land (Reserves) • Notifying the Minister of significant affecting accountability by encouraging people to make authority for the purposes of this Act. The statutory undertakings of the Board are: Emergency Management Act 1986 Act 1978 in the resort; events in accordance with Section 55; disclosures and protecting them when they do. • As a Board of Management under the Alpine • To contribute, together with Tourism Falls Creek Resort Management Board is Safe Drinking Water Act 2003 Resorts (Management) Act 1997 to manage • The keeping of a General Account in What is a protected disclosure? Victoria, established under the Tourism deemed to be a municipal council for the The resort met its testing and monitoring the land at Falls Creek declared to be an accordance with Section 56; Victoria Act 1992, and the Council, to the purposes of this Act and has: A protected disclosure is a complaint of obligations prescribed by this Act. alpine resort and to deliver the functions • Delivery of the functions prescribed in overall promotion of alpine resorts • Prepared and maintained a Municipal corrupt or improper conduct by a public and services specified in the Act; Section 38; officer or a public body. FCARMB is a Falls Creek’s annual report on its water supply • To develop a tourism and marketing Emergency Management Plan in responsibilities and testing was submitted to • To act as a Committee of Management under • Exercise of powers in accordance with public body for the purposes of the Act. strategy for and to promote the resort and to accordance with Section 20; and the Department of Health. the Crown Land (Reserves) Act 1978, and to Section 39; collect and expend voluntary contributions • Complied with Section 2 in relation to exercise the powers conferred under that Act; What is improper or corrupt conduct? from commercial undertakings in the resort • Employment of staff in accordance with coordination and planning and audit Victorian Industry Participation Improper or corrupt conduct involves • To provide the services of a municipal for this purpose; Section 41; of the plan. Policy Act 2003 council for the purposes of the Emergency substantial: • To provide services in the nature of: • Conduct of proceedings and disclosure of This Act requires public bodies and Management Act 1986 and Division 2A of Part Environment Protection Act 1970 • mismanagement of public resources – Garbage Disposal interest in accordance with Sections 51 and 52; Departments to report on the implementation of 9 of the Environmental Protection Act 1970; Participation in the regional waste • risk to public health or safety or the the Victorian Industry Participation Policy (VIPP) – Water Supply • Granting of leases in accordance with • To administer and enforce Parts 3, 4, 5, Part 2; and management group (NevRwaste) and the environment for all tenders over $3 million in metropolitan 7 and 8 of the Building Act 1993 and the – Gas development of a regional waste management Melbourne and $1 million in regional Victoria. In • Preparation of a Strategic Management Plan • corruption. building regulations in the resort; plan were central to meeting the obligations 2018, there were no tenders above $1 million. – Drainage in accordance with Section 56. The conduct must be criminal in nature or a • To regulate traffic and parking within the under this Act. Sewerage treatment operation – Sewerage matter for which an officer could be dismissed. Competitive Neutrality Policy resort as a prescribed Public Authority under Alpine Resorts (Management) was compliant with our EPA licence and an – Electricity annual report was presented to the EPA by the Road Safety Act 1986; Regulations 2009 How do I make a Protected Disclosure? Competitive neutrality is a guiding principle of the – Roads year end in accordance with the licence. Competitive Neutrality Policy and requires that • To provide public health services within the Regulatory obligations have been met by: You can make a protected disclosure the Board should compete with private sector resort under the provisions of the Health Act – Fire Protection about FCARMB or its board members, • Declaration of the Snow Season; Financial Management Act 1994 businesses on the same footing. The Board 1958 and Food Act 1984; and – Transport for the Resort officers or employees by contacting IBAC • Setting aside areas where activities Refer to Financial Statements. complies with the Victorian Government policies • To consider applications for planning • To collect fees prescribed by the regulations on the contact details provided below. are prohibited or restricted; in regard to Competitive Neutrality Policy. permits in accordance with Sections 52 for the resort; Freedom of Information Act 1982 Please note that FCARMB is not able to • Setting aside areas where entry is receive protected disclosures. and 55 of the Planning and Environment • To attract investment for the improvement This Act allows the public a right of access Women, Aged, Youth prohibited or restricted; Act 1987. The Minister with administrative of the resort in respect of which the Board to documents held by the Board. How can I access FCARMB's procedures and Indigenous Affairs responsibility for Alpine Resorts and • Setting aside areas to be used for is established; and Freedom of Information requests are made in for the protection of persons from The Board is committed to policies, programs responsible for the Crown Land (Reserves) certain purposes; • To carry out any other function conferred writing describing the documents requested and detrimental action? and strategies aimed at delivering culturally Act 1978 is the Minister for Energy, on the Board. • Granting of Authorities for certain including payment of the $28.90 application fee. appropriate services to all Victorians. In Environment and Climate Change. FCARMB has established procedures for the purposes; and Further charges may be payable. FOI fees protection of persons from detrimental action in carrying out its business the Board ensures Legislative and • Managing entry and permits for other and charges are not subject to GST. reprisal for making a protected disclosure about that there is female representation and equity Nature and Scope of Activities and involves women in consultation, decision- uses in accordance with Parts 2 and 3. Requests should be sent to Freedom of the organisation or its employees. You can Regulatory Compliance making, leadership and equality of opportunity. Information Officer, Craig Thompson. The access FCAMRB’s procedures on its website. The Board provides a range of services to Building Act 1993 telephone contact number is (03) 5758-1200. The Board abides by Aboriginal Affairs the community and resort visitors determined There is a wide range of legislative and Falls Creek Resort Management is responsible Contacts Victoria’s reporting requirements. by clearly defined functions under the Alpine regulatory requirements and deadlines that Enquiries can be emailed to for the application of this Act in much the same Independent Broad-Based Anti-Corruption Resorts (Management) Act 1997. These are: govern the Board’s activities and behaviour. [email protected] way as a municipal council and the interim Commission (IBAC) Victoria Capital Projects Those with a major influence on performance • To plan for the development, promotion, nominated Municipal Building Surveyor for the Requests for access to documents should and success, together with brief details of our Address: Level 1, North Tower, FCRM manages a number of capital projects, management and use of the resort in resort is Bruce Howie. Each building within the be in writing and directed to: compliance outcomes are: 459 Collins Street, Melbourne Victoria 3000. none of which exceeded the $10m disclosure accordance with the object of the Act; resort area has been scheduled for inspection Falls Creek Resort Management threshold. For information on recent capital Mail: IBAC, GPO Box 24234, • To: to ensure that the regular maintenance of PO Box 50, Falls Creek, Victoria 3699 projects managed by FCRM and the broader Alpine Resorts (Management) Act 1997 Melbourne Victoria 3001 essential services installed has occurred to Victorian public sector, please refer to the – Develop and promote; or The object of this Act is to make provision In the reporting period there was 1 request, the required operational level at the required for which the full documents requested Internet: www.ibac.vic.gov.au most recent Budget Paper No. 4 State Capital – Facilitate the development or promotion in respect of alpine resorts: frequency. These inspections occur over a were provided. Phone: 1300 735 135 Program (BP4) available on the Department by others of the use of the resort in • For the development, promotion, management 3 year inspection cycle. of Treasury and Finance’s website at this link: Email: See the website above for the secure accordance with the object of the Act; and use of the resorts on a sustainable basis Health and Food Act https://www.budget.vic.gov.au/budget-papers and in a manner that is compatible with Catchment and Land Protection Act 1994 email disclosure process, which also provides • To manage the resort in accordance with Obligations and responsibilities under this the alpine environment, having regard to for anonymous disclosures. Contracts the object of the Act; Falls Creek continued programs in Act are met under Ministerial delegation to environmental and ecological considerations Public Administration Act 2004 accordance with the requirements of this Act. Indigo Shire. The management of Board contracts is • To contribute to the development of the Alpine (in particular, climate change), economic Resorts Strategic Plan and other strategic Works included: The purpose of this Act is to provide a governed by its expenditure and contract considerations, and cultural heritage Occupational Health & Safety Act 2004 framework for good governance in the approval policy and delegations register. planning for alpine resorts as a whole; considerations (in particular, indigenous • Control of noxious weeds; Refer to OH&S on page 26. Victorian public sector and to establish the The Board did not enter into any contracts • To undertake research into alpine cultural heritage considerations); and • Control of pest animals; Victorian Public Sector Commission (VPSC). greater than $10 million in value during the resort issues; • For the use of the resorts primarily for alpine • Control of State Prohibited Weeds; and Planning & Environment Act 1987 A number of divisions of the Act have applied to reporting period. • To contribute to and support the operation recreation and tourism, in all seasons of the • Ensured the health of land and waterways Falls Creek fulfilled its role as a referral FCRM since the Act commenced. These include of the Alpine Resorts Co-ordinating Council; year and by persons from varied cultural and within the resort and their impacts within authority and as a land management Board responsibilities to uphold and promote Public Administration Values economic groups. • To prepare and implement a Strategic the catchment. agency under this Act. public sector values and employment principles. and Employment Principles Management Plan for the resort; Compliance obligations under this Act were FCRM continued its commitment to the • To expend or apply revenue of the Board in met through: Crown Land (Reserves) Act 1978 Protected Disclosure Act 2012 Road Management Act 2004 principles of merit and equity in human accordance with a direction of the Minister • Preparation of a Corporate Plan in • Exercise of the powers of a committee The Protected Disclosure Act 2012 (PD Act) Falls Creek maintains a roads register resource management. All appointments and under section 36(A) of the Act; accordance with Section 53; of management; and enables people to make disclosures about as required by this Act. promotions conducted during the reporting
28 • SECTION 4: COMPLIANCE AND ATTESTATION FALLS CREEK ANNUAL REPORT 2018 • 29 Compliance Items Attestation
period were based on competitive selection Overseas Travel • details of publications produced by the entity processes. These selection processes ensure During 2018, there were two overseas visits about itself, and how these can be obtained; Financial Management Compliance Attestation that applicants are assessed and evaluated made by FCRM employees for the purpose • details of changes in prices, fees, charges, fairly and equitably on the basis of the key of ski patroller exchange placements at rates and levies charged by the entity; I, Jo Shannon, on behalf of the Responsible Body, certify that the Falls Creek Alpine Resort Management Board has complied with the applicable selection criteria and other accountabilities Squaw Valley, California and Keystone resort • details of any major external reviews carried Standing Directions made under the Financial Management Act 1994 and Instructions. without discrimination. in Colorado. FCRM expenditure on these out on the entity; The organisation continues to implement visits was restricted to visa applications only. • details of major research and development the directions of the Victorian Public Sector Government Advertising Expenditure activities undertaken by the entity; Commission with respect to upholding public sector conduct, managing and valuing No Government Advertising Expenditure was • details of overseas visits undertaken diversity, managing underperformance, incurred by FCRM during the reporting period. including a summary of the objectives and reviewing personal grievances and selecting outcomes of each visit; Compliance with DataVic Access Policy Jo Shannon on merit. Employees have been correctly • details of major promotional, public relations Board Chair classified in workforce data collections. Consistent with the DataVic Access Policy and marketing activities undertaken by the 27 February 2019 issued by the Victorian Government in 2012, entity to develop community awareness of Factors Influencing Board’s Performance any data tables produced by the Falls Creek the entity and its services; Alpine Resort Management Board will be There were no major changes or factors • details of assessments and measures available at www.data.vic.gov.au in machine affecting the Board’s performance during undertaken to improve the occupational readable format. the year. health and safety of employees;
Events Subsequent to Reporting Date Other Available Information • a general statement on industrial relations within the entity and details of time lost The following information is available on request, Subsequent events are detailed in note through industrial accidents and disputes; and 8.8 of the financial statements. Subsequent subject to the Freedom of Information Act 1982: • a list of major committees sponsored by to the balance sheet date, no other item, • a statement that declarations of pecuniary the entity, the purposes of each committee transaction or event of a material or unusual interests have been duly completed by all and the extent to which the purposes have nature is likely, in the opinion of the Board, to relevant officers; been achieved. significantly affect the operations of the Board, • details of shares held by a senior officer as the results of those operations, or the state of nominee or held beneficially in a statutory affairs of the Board, in future financial years. authority or subsidiary;
Consultancy Expenditure The selection and engagement of consultants is based on obtaining competitive public or restricted offers through open and effective competition, observing accountability requirements and achieving value for money. Details of individual consultancies valued at greater than $10,000 In 2018, there were three consultancies where the total fees payable to the consultants was $10,000 or greater. The total expenditure incurred during 2018 in relation to these consultancies was $154,914 (excluding GST). Details of these individual consultancies are outlined below.
Consultant Purpose of consultancy Total approved project Expenditure 2018 Future Expenditure fee ($ excl. GST) ($ excl. GST) ($ excl. GST) Biosis Pty Ltd Vegetation offset strategy and water consulting 20,000 18,933 120,000 GHD Pty Ltd Geotechnical risk mitigation 50,000 47,551 60,000 On Tap Consulting Pty Ltd Technical and compliance advice 90,000 88,430 80,000
Details of consultancies under $10,000 In 2018, Falls Creek Resort Management engaged eight consultancies where the total fees payable to the consultants were less than $10,000, with a total expenditure in relation to these consultancies of $17,764 (excluding GST).
Information and Communication Technology (ICT) expenditure
($ whole)
ICT expenditure type 2018 2017
ICT Business As Usual (BAU) expenditure 424,647 363,121 ICT Non-Business As Usual (non-BAU) expenditure: Operational expenditure - - Capital expenditure 53,509 32,142 Total ICT expenditure 478,156 395,263
30 • SECTION 4: COMPLIANCE AND ATTESTATION FALLS CREEK ANNUAL REPORT 2018 • 31 How the 2018 Financial Statements are Structured Declaration
Falls Creek Alpine Resort Management Board (FCARMB) has presented its audited general-purpose financial statements for the financial year ended 31 December 2018 in the following structure to provide users with the information about FCARMB’s stewardship of resources entrusted to it.
FINANCIAL STATEMENTS 5. Other Assets and Liabilities 48 Declaration and Auditor’s Report Working capital balances, and other key assets and liabilities Declaration by the Board Chair and Accountable Officers 33 5.1 Receivables Independent Auditor’s Report 34 5.2 Payables 5.3 Inventories Financial Statements 5.4 Prepayments Comprehensive Operating Statement 36 5.5 Unearned Revenue Balance Sheet 37 6. How We Financed Our Operations Cash Flow Statement 38 51 Borrowings, cash flow information, leases Statement of Changes in Equity 39 and assets pledged as security
NOTES TO THE FINANCIAL STATEMENTS 6.1 Borrowings 1. About this Report 40 6.2 Revenue Commitments The basis on which the financial statements have been 6.3 Cash Flow Information and Balances prepared and compliance with reporting regulations 6.4 Commitments for Expenditure
2. Funding Delivery of Our Services 41 7. Risks, Contingencies and Revenue recognised from taxes, grants, Valuation Judgements 55 sales of goods and services and other sources Financial risk management, contingent assets 2.1 Site Rent and Service Charges and liabilities as well as fair value determination 2.2 Visitor Fees 7.1 Financial Instruments: Specific Disclosures
2.3 Other Income 7.2 Contingent Assets and Contingent Liabilities 2.4 Government Contributions 7.3 Fair Value Determination
3. The Cost of Delivering Services 43 8. Other Disclosures 63 Operating expenses of FCRM 8.1 Ex-gratia Expenses 8.2 Other Economic Flows included in Net Result 3.1 Employee Benefits 8.3 Non-financial Assets Held for Sale 3.2 Expenses from Transactions Other than Employee Benefits 8.4 Responsible Persons
4. Key Assets Available to 8.5 Remuneration of Executives Support Service Delivery 45 8.6 Related Parties Infrastructure and other assets utilised in fulfilling objectives 8.7 Remuneration of Auditors 4.1 Total Infrastructure, Property, Plant and Equipment 8.8 Subsequent Events 4.2 Depreciation and Amortisation 8.9 Australian Accounting Standards issued that are not yet effective 4.3 Reconciliation of Movements in Carrying Amounts of Property, Plant and Equipment 8.10 Glossary of Technical Terms 4.4 Intangible Assets 8.11 Style Conventions
32 • SECTION 5: FINANCIAL STATEMENTS FALLS CREEK ANNUAL REPORT 2018 • 33
Auditor’s As re ired by the Audit Act 1994, y res onsibility is to e ress an o inion on the financial Independent Auditor’s Report r s o si i iti s re ort based on the a dit y ob ecti es for the a dit are to obtain reasonable ass rance or t udit abo t hether the financial re ort as a hole is free fro aterial isstate ent hether To the Members of the Falls Creek Alpine Resort Management Board o t i i due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable r ort ass rance is a hi h le el of ass rance b t is not a arantee that an a dit cond cted in pinion I have audited the financial report of Falls Creek Alpine Resort Management Board (the accordance ith the A stralian A ditin Standards ill al ays detect a aterial entity) which comprises the: isstate ent hen it e ists isstate ents can arise fro fra d or error and are • balance sheet as at 31 December 2018 considered aterial if indi id ally or in the a re ate they co ld reasonably be e ected • comprehensive operating statement for the year then ended to infl ence the econo ic decisions of sers ta en on the basis of this financial re ort • statement of changes in equity for the year then ended As art of an a dit in accordance ith the A stralian A ditin Standards e ercise • cash flow statement for the year then ended rofessional d e ent and aintain rofessional sce ticis thro ho t the a dit also • notes to the financial statements, including significant accounting policies • declaration by the board chair, accountable officer and chief financial officer. • identify and assess the ris s of aterial isstate ent of the financial re ort hether d e to fra d or error desi n and erfor a dit roced res res onsi e to those ris s In my opinion the financial report presents fairly, in all material respects, the financial and obtain a dit e idence that is s fficient and a ro riate to ro ide a basis for y position of the entity as at 31 December 2018 and their financial performance and cash o inion he ris of not detectin a aterial isstate ent res ltin fro fra d is flows for the year then ended in accordance with the financial reporting requirements of hi her than for one res ltin fro error as fra d ay in ol e coll sion for ery Financial Management Act 1994 Part 7 of the and applicable Australian Accounting intentional o issions isre resentations or the o erride of internal control Standards. • obtain an nderstandin of internal control rele ant to the a dit in order to desi n sis or I have conducted my audit in accordance with the Audit Act 1994 which incorporates the a dit roced res that are a ro riate in the circ stances b t not for the r ose pinion Australian Auditing Standards. I further describe my responsibilities under that Act and of e ressin an o inion on the effecti eness of the entity’s internal control those standards in the Auditor’s Responsibilities for the Audit of the Financial Report section • e al ate the a ro riateness of acco ntin olicies sed and the reasonableness of of my report. acco ntin esti ates and related disclos res ade by the Board • concl de on the a ro riateness of the Board’s use of the going concern basis of My independence is established by the Constitution Act 1975. My staff and I are acco ntin and based on the a dit e idence obtained hether a aterial independent of the entity in accordance with the ethical requirements of the Accounting ncertainty e ists related to e ents or conditions that ay cast si nificant do bt on Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional the entity’s ability to continue as a going concern. If I concl de that a aterial Accountants (the Code) that are relevant to my audit of the financial report in Victoria. My uncertainty exists, I am required to draw attention in my auditor’s report to the staff and I have also fulfilled our other ethical responsibilities in accordance with the Code. related disclos res in the financial re ort or if s ch disclos res are inade ate to I believe that the audit evidence I have obtained is sufficient and appropriate to provide a odify y o inion y concl sions are based on the a dit e idence obtained to basis for my opinion. the date of my auditor’s report. However, future events or conditions may cause the entity to cease to contin e as a oin concern o rd’s The Board of the entity is responsible for the preparation and fair presentation of the • e al ate the o erall resentation str ct re and content of the financial re ort responsi i ities financial report in accordance with Australian Accounting Standards and the Financial incl din the disclos res and hether the financial re ort re resents the nderlyin or t e Management Act 1994, and for such internal control as the Board determines is necessary transactions and e ents in a anner that achie es fair resentation in n i to enable the preparation and fair presentation of a financial report that is free from report material misstatement, whether due to fraud or error. co nicate ith the Board re ardin a on other atters the lanned sco e and ti in of the a dit and si nificant a dit findin s incl din any si nificant deficiencies in In preparing the financial report, the Board is responsible for assessing the entity’s ability to internal control that identify d rin y a dit continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is inappropriate to do so.