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Falls Creek Alpine Resort Management Board 2018 Annual

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Falls Creek Alpine Resort Management Board 2018 Annual 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
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