Annual Report 2008-2009 2 Contents

Gascoyne Development Commission Annual Report 2008-2009 2 Contents

1. OVERVIEW 1.1 Chair's report 1.2 Economic and social profi le 4 1.3 Operational structure 6 1.3.1 Minister responsible 9 1.3.2 Enabling legislation 9 1.3.3 Board 9 1.3.4 Board profi les 11 1.3.5 Organisational fl ow chart 12 1.4 Outcome based management 13 1.4.1 Operational purpose 13 1.4.2 Priority areas 13 1.4.3 Our projects 13 1.4.4 Advisory committees 14

2. AGENCY PERFORMANCE 2.1 Report on activities 15 2.2 Actual performance compared to targets 28 2.3 Certiﬁ cation of key performance indicators 30

3. SIGNIFICANT ISSUES 31

4. DISCLOSURE AND COMPLIANCE 4.1 Certifi cation of fi nancial statements 32 4.2 Income statement 33 4.3 Balance sheet 34 4.4 Changes in equity 35 4.5 Cashfl ow statement 36 4.6 Notes to fi nancial statements 37 4.7 Compliance with relevant written law 65 4.8 Publications produced 67

3 1. OVERVIEW

1.1 Chair's report

I am pleased to report that the Gascoyne Region Aboriginal Art past year has been a very exciting Exhibition will be launched at the time to become the new Chair Centre in October providing an of the GDC. My thanks go to exciting opportunity to showcase the outgoing chair, Kevin Leahy, and promote the talent of for his strong leadership and Aboriginal artists of the Region. direction. Former Centre manager and GDC project ofﬁ cer, Lorraine The introduction of ‘Royalties Fitzpatrick and Inggarda elder for Regions’ funding through Maureen Dodd showcased our Minister for Regional the GAHCC at a Museums Development, the Hon Brendon Australia National Conference in Grylls, has opened up the Newcastle which was attended opportunity to see some excellent by approx 400 delegates. outcomes for the Gascoyne region. Local Governments The Gascoyne Food Trail initiative have worked closely with the continues to gather momentum. Development Commission A logo has been developed and and other key stakeholders website and brochure being to prioritise initiatives for the produced. Currently there are Region. The ﬁ rst round of the 20 participants on the Food Trail Royalties for Regions Gascoyne involving businesses from Shark Regional Grant Scheme has been Bay through to Exmouth. determined with $3.8 million shared across 25 projects. The Gascoyne Foodbowl Initiative has been launched with a The Gascoyne Aboriginal Consultative Committee meeting Heritage and Cultural Centre in April and chaired by the Hon opened its doors on the 20 April Wendy Duncan MLA. and enjoys continued growth in visitors with many organizations The Ningaloo Research Centre utilizing the facility for various (NRC) continues to maintain conferences and events. The support from Government

4 “The introduction of ‘Royalties for Regions’ has opened up the opportunity to see some excellent outcomes for the Gascoyne region.”

and it is hoped will ramp up with I would like to extend my sincere the possibility of funding through thanks to my fellow Board members, Royalties for Regions. The NRC CEO Stephen Yule, Deputy welcomed new Chairman, Barry Tami Maitre and Staff for their Sullivan and commended the professionalism and assistance to outgoing Chairman the Hon Ian myself and the Board over the past Laurance for the tireless work he year. contributed to the project. The importance of the Centre was highlighted when the 3rd Ningaloo Research Symposium was held in Exmouth in May showcasing over $30 million in research funding Veronica (Ronnie) Fleay which is being spent on the Ningaloo Chair Reef. Gascoyne Development Commission

The GDC is actively developing business and industry s kills in the region with the recent delivery of the Diploma of Management – Frontline Management Program in Carnarvon, through the Australian Institute of Management, to 19 participants.

A very successful year of Minor Grants, RDS Grants and Community Foundation Grants have allowed worthy projects to be realized in the Region.

The Commission has welcomed new members John Oxenham, Tom Day and Brian Reading to the Board this year.

5 1.2 Economic and social proﬁ le

Introduction the main challenges facing the region. The Gascoyne Region, in the North West of Western Australia, captures more Population than 600 km of Indian Ocean coastline The population of the Gascoyne is ad- and stretches about 500km inland. The ministered by four local governments; region has a mid subtropical climate and Carnarvon, Exmouth, Shark Bay and Up- enjoys the reputation of the ‘sun’s winter per Gascoyne. home’ with around 320 days of sunshine each year. The 2008 ABS estimated resident population of the Gascoyne was 9,668. The coastal area incorporates interna- The majority of the population, 6,091 tionally recognized features such as the residents, is concentrated in the re- Ningaloo Reef, the Shark Bay World Her- gional administrative centre of Carnarvon. itage Area, Monkey Mia, and Coral Bay The horticulture and ﬁ shing industries while the hinterland includes the out- (prawns and scallops) form the basis of standing features of the Kennedy Range the town’s economy. and Mt Augustus. The Shire of Exmouth has an estimated The region boasts a diverse, balanced resident population of 2,330. This economy which is supported by a strong number can swell to nearly 6,000 during network of retail, administrative and trade the tourist season from May to Septem- services. The major industries are tour- ber. Tourism based around the Ningaloo ism, retail, horticulture, mining, ﬁ shing, Reef is the main industry of the shire. and pastoralism. The Shire of Shark Bay has a resident While many opportunities exist, attracting population of 941 mostly based in the capital investment for infrastructure and town of Denham. Tourism, focused on business development remains one of

Figure 1 Gascoyne population by local government

Upper Gascoyne Shark Bay 306 941 Carnarvon 3% 10% 6,091 63%

Exmouth 2,330 24%

Regional area 135,277 km2 Regional Population 9668 6 namese growersafurtherthreepercent. making upsome16-20percentandViet- populations withIndigenousresidents The Gascoynehassignifi cant minority munity intheMtAugustusarea. resides atBurringurrahAboriginalcom- the Shire,majorityofitspopulation Junction istheadministrativecentreof While Gascoyne dent populationof306. The ShireofUpperGascoynehasaresi- the mainindustry. the MonkeyMiadolphinexperience,is Worldthe SharkBay Areaand Heritage tinue toexistinthisindustry. visitors. Investmentopportunitiescon- international mestic visitorsand52,900 do- to havebeenexpendedby188,600 2007/2008. This incomewasestimated millionin spend intheregiontobe$204 Tourism WA hasestimatedthetourism seen tourismbecomethemainindustry. environment oftheGascoynehave The uniquelandscapesandcoastal Economic activity 1995/961994/95 Q Q 0 QI;'I- 0 Q1_fl -2008 Gascoyne majorindustrytrends inproduction value($m)1995 Figure 2 1998/991997/981996/97 2001/022000/011999/00 2003/042002/03 from SouthEastAsia,andskillshortages. tition fromaquacultureproducts,mainly including increaseddieselcosts,compe- signifi cant pressuresduringtheseyears lion since2001.The industryhasfaced mil- mouth Gulfhashoveredaround$50 Gascoyne, basedinCarnarvonandEx- Production fromthefi shing industryinthe million. industrysitsataround$50 salt Currently theannualproductionfrom operationawaitingfiSalt nal approvals. pand operationsandtheextensiveStraits indicatinganintentiontoex- Dampier Salt possible inthisindustrywithRioTinto industries inAsia.Signifi cant growth is boundforthechemical coyne issalt, The maincommodityminedintheGas- Agriculture andFood WA) (Figures sourcedfromtheDepartmentof due toacombinationofseasonalfactors. adropinthisincometo$73saw million to $87 millionin2007. season The 2008 millionin2003/2004 has risenfrom$50 acted intheirrigationdistrict.Production since theCOAG waterreformswereen- seen asignifi cant riseinproductivity Horticulture, basedinCarnarvon,has 2007/082006/072005/062004/05 CrP 7 Pastoral activities contributed $18.7 million to the Gascoyne economy in 2006/2007. The disposal of sheep and cattle for meat at $11.4 million has become more important to the local economy than wool production at $7.4 million, once the mainstay.

Social Communities of the Gascoyne are cha- raterised by their isolation with all being considered either remote or very remote on the Accessibility Remoteness Index of Australia.

This affects the delivery of services and the opportunities to access, of particular consequence, health and education services. 1.3 Operational structure

1.3.1 Minister responsible The Hon. Brendon John Grylls, MLA, Minister for Regional Development.

1.3.2 Enabling legislation Proclamation of the Regional Develop- • Seek to ensure that the general ment Commissions Act 1993 on 7 April standard of government services 1994 established the GDC as a statu- and access to those services in the tory authority. The Commission had region is comparable to that which previously operated as a government applies in the metropolitan area. department, in accordance with Section • Generally take steps to encourage, 21 of the Public Service Act 1978, from promote, facilitate and monitor the its inception in January 1993. economic development in the region.

The Regional Development Commis- By identifying and coordinating the sions Act 1993, which created nine responsibilities of a wide range of commissions including the GDC, states government agencies with regional that the objects and functions of each development charters, the Commission commission are to: performs an important role in address- ing needs and ensuring appropriate • Maximise job creation and improve application of Government resources in career opportunities. its region. • Develop and broaden the economic base. The GDC performs its functions in • Identify infrastructure services to respect of the Region comprising the promote business development. Shires of Carnarvon, Exmouth, Shark • Provide information and advice to Bay and Upper Gascoyne. promote business development.

9 1.3.3 Gascoyne Development Commission Board

The Commission has a Board local councils in the region. of Management comprising One third may be appointed at nine members, who are ap- the Minister’s discretion. pointed by the Minister, and the Chief Executive Offi cer The Board is the governing body by virtue of offi ce. The Minister with authority to perform the func- appoints the Chairman and the tions of the Commission and has Deputy Chairman. delegated to the Chief Executive Offi cer the day-to-day manage- The Act prescribes that appointment. The Board meets regularly ed members are to be selected, to consider matters of economic as far as possible, on the follow- and social importance to the ing basis: Region, to formulate advice to the Minister on appropriate matters, One third is to be persons who to set policy directions for the are resident in the region. Commission and to formulate One third will be nominated by budget priorities.

The Gascoyne Development Commission Board; from left Tom Day, Don Hammarquist, John Oxenham, Brian Reading, Heather Condo, Karl Brandenburg, Stephen Yule, Veronica Fleay, Bob Eddington and Doug Hunt.

10 1.3.4 Board proﬁ les

Chair Carnarvon Chamber of Commerce and Industry and a former secretary of Cr Veronica Fleay the Gascoyne Table Grape Growers Deputy Chairman Association. Cr Karl Brandenburg Donald Hammarquist [Community, Members Upper Gascoyne] Veronica Fleay [Chair, Local Don Hammarquist is a pastoralist on Government Exmouth] Mt Augustus Station and a councillor on the Upper Gascoyne Shire Ronnie Fleay is the proprietor of Ningaloo Marine Agencies. Mrs Fleay Council. is president of the Exmouth Shire Bob Eddington [Local Government, Council. Shark Bay] Karl Brandenburg Mr Eddington was elected to the [Deputy Chairman, Local Shark Bay Shire Council six years ago Government, Carnarvon] and has served as shire representative Karl Brandenburg is the owner on many steering committees. operator of U2 Bobcat Hire. Mr Brandenburg is deputy president of John Oxenham [Ministerial the Carnarvon Shire Council. Appointment] Mr Oxenham is a retired plantation Stephen Yule [Ex-Ofﬁ cio] owner. He currently serves on the Stephen Yule is the Chief Executive Board of the Gascoyne Aboriginal Ofﬁ cer of the GDC and has more than Heritage and Culture Centre. 20 years experience working in the area of regional development. Tom Day [Ministerial Appointment] Doug Hunt [Community, Coral Bay] Tom Day is a retired banana grower and former shire president. He is Doug Hunt is proprietor of Coral Bay currently a representative on the Adventures and a member of the Australian Banana Grower’s Council. Coral Bay Tourist Association and Coral Bay Progress Association. Brian Reading [Community, Heather Condo [Ministerial Exmouth] Appointment] Brian Reading is an Exmouth Heather Condo and her family have businessman. Mr Reading is also a a large grape growing plantation. member of the Exmouth Volunteer Mrs Condo is a past president of the Marine Rescue service.

1.3.5 Organisational ﬂ ow chart

MINISTER

GASCOYNE DEVELOPMENT COMMISSION BOARD (10 members)

GASCOYNE DEVELOPMENT COMMISSION Chief Executive Ofﬁ cer GAHCC Board

CONSULTANTS ROYALTIES FOR REGIONS REGIONAL GASCOYNE ABORIGINAL AS REQUIRED CORPORATE SERVICES PROJECTS HERITAGE AND Manager L7 A/Senior Projects CULTURAL CENTRE Manager L6 A/Centre Manager L6

Manager Corporate Services L6 Project Project Project Project Offi cer Offi cer Offi cer Offi cer L5 L5 L5 L5 (Exmouth)

Senior Project Project Executive Administration Project Offi cer Offi cer Assistant L3 Assistant L2 Offi cer L5 L5 L6

12 1.4 Outcome based management

1.4.1 Operational purpose 1.4.2 Priority areas

This annual report is presented in terms • Business and community of the Commission’s targeted service of development and support Regional Development. • Tourism development and support • Infrastructure development Resources and project effort are di- • Communication improvement rected to the Government’s goal of a • Promotion of region stronger focus on the regions. • Aboriginal economic and cultural development Government goal: A stronger focus • Population retention on the regions: Greater focus on service delivery, in- 1.4.3 Our projects frastructure investment and economic development to improve the overall qual- The Commission’s projects are aligned ity of life in remote and regional areas. to the following areas of regional development. Desired outcome: An environment conducive to the bal- The main project areas covered are: anced economic and social develop- • Continuous improvement of policies, ment of the Gascoyne region. plans, strategies and position statements on key issues. Our vision • Facilitation of their implementation The Gascoyne provides a great lifestyle, to generate a methodical and visitor experience and substantial em- coordinated approach to regional ployment and investment opportunities development of the Gascoyne. in a unique natural environment and • Facilitation of greater unity and climate. cohesion within the business community and encouragement of Our mission new business investment that is The GDC is a major contributor to the environmentally sustainable. continuing growth of the Gascoyne • Identiﬁ cation of key economic, social Region. and cultural infrastructure that will generate business growth as well as Our values and principles improve residents' quality of life. • Sustainability • Effective promotion of the • Respect and diversity Gascoyne’s many opportunities, • Partnerships great lifestyle and unique natural • Community involvement environment and climate. • Fair and transparent processes • Fiscal accountability • Innovation

1.4.4 Advisory committees The Board may from time to time estab- The Group consists of eleven members, lish committees for the purpose of con- bringing in a blend of expertise and sidering particular matters speciﬁ ed by interests covering a broad spectrum the Board. encompassing information technology, telecommunication, radio communication, The Gascoyne Telecommunications pastoral interests, education, corporate Working Group and small business sectors as well as Lo- This group is a community-based advi- cal and State Government. sory committee to the GDC to address all aspects of telecommunications is- The GDC provides executive support for sues and the needs of the Gascoyne the Group Region in order to facilitate the region's full potential and progress in line with the Education Precinct Strategy Group global community. Progressing from the Gascoyne Edu- cation Working Group, the Education The areas for activities include mobile Precinct Strategy Group was established phone networks, broadband access and in May 2007 to forward the recommen- affordability, satellite technology, broad- dations set out in the report 'An Educa- casting, video-conferencing and E-com- tion Precinct in Carnarvon; a community merce.The main functions are: approach to the future.' • Advise Government, lobby service providers and other organisations The Group consists of all major stake- to provide effective communications holders including the Department of Edu- options for the Region. cation and Training, Carnarvon Senior • Monitor changes in communications High School, TAFE, Shire of Carnarvon, and their impact on Gascoyne St Mary Star of the Sea Catholic School communities. Provide information and and the GDC. advice on communications issues to the wider Gascoyne community. The GDC provides executive support for • Assess, prioritise and implement the group. communications requirements.

14 2. AGENCY PERFORMANCE

2.1 Report on activities

The activities of the Commission are focused on achieving an environment conducive to the balanced economic and social development of the Gascoyne region. The Commission regularly reviews its corporate strategy and planned activities to ensure outcomes based on the Commission’s objects and functions are achieved. Projects and the achievements undertaken during the ﬁ nancial year are described on the following pages. These projects contribute to the State Government’s strategic framework with a stronger focus on the regions.

2.1.1 Maximise regional job creation and improve career opportunities

This program area is based on the recognition that boosting job creation and improving career opportunities will have a variety of economic and social beneﬁ ts for the Gascoyne region. The program seeks to encourage strong, correctly tailored education and training infrastructure, which will ensure that Gascoyne residents have the skills needed to meet the increased and diversiﬁ ed employment demand.

Regional Indigenous Development Program This program provides funds to assist Aboriginal community groups and individuals to develop their capacity to manage sustainable community and business activities. The Gascoyne Aboriginal Heritage and Cultural Centre, with the café established as a training outlet for hospitality and tourism and the business incu- bation pods in situ, will become a major focus for future GDC supported development opportunities for Aboriginal people of the Gascoyne.

Achievements With the Gascoyne Aboriginal Heritage and Cultural Centre operational the focus turned to planning for the ﬁ rst regional Indigenous art exhibition. The GDC has provided the assistance of a project ofﬁ cer to work with the Centre Manager and Indigenous trainees to plan and coordinate the event scheduled for October 2009.

Inland Gascoyne Business Development This project assists inland Aboriginal communities, including Burringurrah Aborigi- nal Community (BAC), establish viable enterprises that meet regional economic planning requirements and provide additional services to the community.

15 Achievements The BAC has representation on the Mt Augustus and Gascoyne Out- back Development Taskforce which will produce an overall development plan for the remote inland area. Initial developments include the strengthening of the link between Mt Augustus and Karajini National Parks and improvements to the road to encourage and support travel- lers to this remote part of the region.

Gascoyne Aboriginal Heritage and Cultural Centre (Stage 2) The GDC continues to provide a Centre Manager and administrative support to the Gascoyne Aboriginal Heritage and Cultural Centre in Carnarvon.

Achievements With the completion of the internal fi t out and employment of Indig- enous trainees, the Gascoyne Aboriginal Heritage and Cultural Centre has become operational during 2008/2009. The Centre also provides the venue for a signifi cant training program with the café leased to Emu Services for the delivery of TAFE hospitality and tourism training. In addition, the Jillinbirri Weavers are the fi rst artists-in-residence, producing works for exhibition and sale through the retail shop.

A major development has been the completion of research and concept plans for the future interpretive component of the Centre. The Indigenous Reference Group has provided signiﬁ cant input to this particular aspect of the project.

Education Precinct Strategy Group Following the release of the report An Education Precinct in Carnar- von; A community approach to the future, the Education Precinct Strategy Group was formed.

Achievements The 2009 Welcome to Carnarvon event for new teachers was strongly received and supported by the education service providers with at- tendance at the event including School of the Air staff and teachers from the remote inland school at Burringurrah.

The Group continues to provide education and training information to the broader community through regular features in the regional newspaper. It has commenced an initiative to better understand the training needs of local industries through regular brieﬁ ngs by key industry representatives.

16 2.1.2 Develop and broaden the Region's economic base

This program area seeks to develop a broad, well balanced and integrated economic base that will improve employment opportunities and a wide range of services.

Mt Augustus and Gascoyne Outback Development This project, endorsed by State Cabinet, will build on the options for economic development within Mt Augustus and the Gascoyne outback as identiﬁ ed in the Curtin Business School ‘Comprehensive Analysis of Options for Economic Devel- opment in the Shire of Upper Gascoyne.’ This report identiﬁ ed a range of options to promote business development within the region including tourism accommodation and services, horticulture and strategic links to Karajini National Park.

Achievements The Taskforce has commenced the mapping of the signage requirements for the route linking Mt Augustus and Karajini National Park. The GDC will provide funding assistance for the costs associated with improving the signage. In addition, a dialogue has commenced with key stakeholders on a proposal to re-align the route which would reduce the distance between the two iconic tourist destinations.

In partnership with Tourism WA and the Department of Conservation and Environment(DEC), the GDC has undertaken a site assessment of current and potential sites within the DEC estates of the Upper Gascoyne region.

Food Industry Program The Gascoyne region produces a varied and high quality array of food products. This program seeks to generate discussion across the community to identify the degree of interest in the development of food initiatives.

Achievements The GDC continues to support the food promotion event ‘A Taste of the Gas- coyne’ which achieves state-wide promotion. In addition the GDC has provided funding and project ofﬁ cer support for the development of a food trail to promote local produce and to enhance the visitor experience. The GDC considers the development of the food industry as a priority and continues to explore opportunities with industry stakeholders to progress this area.

Gascoyne Food Bowl Initiative In December 2008, the State Government announced the Gascoyne Food Bowl Initiative and the establishment of a Ministerial committee comprising the Minister

17 for Agriculture, the Minister for Water and the Minister for Regional Development to progress major agricultural initiatives in the Gas- coyne. A local consultative committee, chaired Wendy Duncan MLC Parliamentary Secretary to the Minister for Regional Development, will provide advice to progress identiﬁ ed projects.

Achievements The GDC provides the executive support for the local consultative committee. The ﬁ rst meeting was held in April 2009.

Shark Bay World Heritage Discovery Centre In 2007/08 a working group was established to identify and work through strategies for the Shark Bay World Heritage Discovery Centre to become more ﬁ nancially viable. Membership included the former Parliamentary Secretary to the Minister for the Environment, the Shire of Shark Bay, GDC, Tourism WA and DEC. The GDC provided $10,000 towards the cost of employing a consultant to prepare a plan tor the Centre’s future.

Achievements The business and marketing plan has been produced which includes recommendations for the Shire of Shark Bay to implement to assist the future development and promotion of the Centre.

2.1.3 Identify infrastructure services to promote business development.

Infrastructure services are essential for regional growth. This requires the regular upgrading and maintenance of transport routes, communications, power, and water services. The Commission recognises the challenge of ensuring the isolation of the communities across the region does not result in an unsatisfactory infrastructure standards.

Ningaloo Research Centre The Ningaloo Research Centre project proposed to be a multidiscipli- nary research centre to be located at the Exmouth Marina.

Achievements The Ningaloo Research Centre project continues to be supported at a local and State level. Royalties for Regions Regional Grant Scheme funding of $145,000 was granted for detailed architectural concept plans, a revised business plan and a schedule of operational and maintenance costs.

Independent Chairman Ian Laurance resigned his position and has been replaced by local Exmouth business man and President of the 18 Chamber of Commerce and Industry, Mr Barry Sullivan.

The Ningaloo Research Centre management committee are exploring a partnership with a university to create a Centre of Excellence for which State Government funding will be sought.

2.1.4 Provide information and advice to promote business development

This program area is designed to ensure that the Gascoyne business community is not disadvantaged due to the isolation and distance from Perth or other main regional centers. The program aims to facilitate the same business development opportunities that are afforded to larger business centres.

Austrade Tradestart Services The Tradestart ofﬁ ces provide Austrade services to clients in locations where Aus- trade does not have a presence. This project provides funds for the employment of an export advisory ofﬁ cer through Austrade, based in Carnarvon, to provide initial counselling services to clients wanting to get into export.

Achievements During 2008/09 there was a strong focus on industry development with the introduction of an e-newsletter to promote opportunities and information plus the delivery of an e-commerce workshop in Carnarvon.

Skilled Migration Program This project is to fulﬁ ll the requirements of operating as a Regional Certifying Body (RCB) for migration, attract skilled migrants and promote skilled migration options to Gascoyne businesses.

Achievements A number of requests for visas have been processed through the GDC as per State and Commonwealth policies.

Business Training and Development This program is to provide businesses across the Gascoyne with opportunities to learn about current business thinking, practice, innovation and advancement within industry and small business enterprise.

Achievements In 2008/09 the GDC introduced a regional training calendar, distributed by email, to promote training across industry sectors to a wider audience. The GDC partners with the Small Business Centre and Desert Knowledge Australia to facilitate the provision of training and workshops to the Gascoyne business community.

19 Website program The GDC website plays a vital role in promoting both the region and the GDC to a worldwide audience.

Achievements The redevelopment of the GDC website in 2008-09 has resulted in a much improved and valuable tool for providing regional information and communicating the activities of the GDC. The new GDC website is attracting more visitors and holding them there for longer. The previous site in 2008 attracted an average of 1297 unique visitors per month. In the month of May 2009, the new site logged 1891 unique visitors representing a 46 per cent increase. The number of pages viewed per visit increased by 385 per cent.

2.1.5 Seek to ensure government services are comparable to the metroplitan area

The GDC is a crucial link in the consultation process between State Government and local communities. The GDC advocates for fair and accessible services across the business and social sectors.

It seeks to ensure equity of access to State Government services and that these services are of a standard equivalent to those delivered in the metropolitan area. This program area is focussed on consultation, public communications and policy development.

Telecommunications Working Group The aim of the Group is to improve the awareness and efﬁ ciency of communications delivery in the Gascoyne region and to act as an advisory committee to the Commission.

Achievements In 2008/09 the Group initiated a web cam project with the Shire of Carnarvon to stream footage of the Fascine waterfront via the Shire of Carnarvon website. In addition, the Group provided input to the telecommunications review undertaken by a Broadband Project Ofﬁ cer for the Pilbara and Gascoyne.

Infrastructure and services program This program monitors infrastructure and services provided in the Gascoyne and seeks to ensure that services compare with those provided in the metropolitan area with respect to equity of access to services and service delivery.

20 Achievements The GDC executive has maintained representation on a number of planning committees including: Exmouth Boat Harbour Development, Workforce Development Strategy and Small Business Centre Board of Management. In addition, the GDC maintains close communications with the service providers of health, education, roads, power and water.

Leadership program and governance Issues This program aims to promote, and where applicable, implement leadership opportunities for residents of the Gascoyne.

Achievements Following through on the Gascoyne Leadership Strategy, the GDC facilitated the delivery of the ﬁ rst Australian Institute of Management (AIM) course in Carnarvon with 18 people enrolling in the Frontline Management course. In addition, the GDC is supported the Carnarvon Chamber of Commerce and Industry in the planning of a new business awards program.

Strategic Waste Initiative Scheme The GDC has facilitated a regional approach to undertake a study on the potential for viable, improved waste management practice in the Gascoyne.

Achievements The feasibility study to assess the potential for viable improved waste management practices in the Gascoyne Region was completed and presented to local governments for endorsement. Further to the study, an investigation into options for re- use of the plastic mulch used in the horticulture industry was commenced.

2.1.6 Encourage, promote, facilitate and monitor the economic developments in the Gascoyne region.

This program covers the tasks and activities that GDC ofﬁ cers undertake to encourage, promote, facilitate and monitor economic development in the Gascoyne.

Regional Development Scheme (RDS) The ﬁ nal round of the Regional Development Scheme, a grant assistance program available to the Gascoyne on an annual basis since 2001, was administered by the GDC in 2008/09.

Achievements A list of projects funded by the RDS program in 2008/09 is presented at the conclusion of this section of the Annual Report.

21 Regional Development Council program The Council comprises the nine Board Chairs of the Development Commissions, WA Local Government Area representatives, and the Director General of the Department of Local Government and Region- al Development.

Achievements The GDC Chair attends the Council meetings and provides advice and input on matters relating to regional issues in the Gascoyne. Dur- ing 2008/09 the GDC contributed on a number of regional issues including the new Royalties for Regions program, changes to Common- wealth funded regional development programs and regional services.

Shark Bay, Exmouth, Upper Gascoyne and Carnarvon Liaison The GDC appoints project ofﬁ cers to liaison roles to assist the local governments, small business and the communities with economic, social, environmental and cultural development.

Achievements Liaison ofﬁ cers have continued to be a point of contact for the local governments of the Gascoyne region and provide support on a range of issues, projects and activities including the planning for the Royal- ties for Regions grant scheme and local development matters.

Ningaloo Coastal Strategy The GDC has provided input to the Ningaloo Sustainable Develop- ment Committee and the Ningaloo Coast Advisory Committee to support the implementation of the strategy and develop opportunities for sustainable development along the coast.

Achievements The GDC has been an active participant in the consultation and delib- erations over planning and development proposals along the Ningaloo Coast. With the closure of the Ningaloo Sustainable Development Ofﬁ ce in May 2009, the GDC has provided advice to government on future planning options for regional planning matters.

Gascoyne Regional Grants Scheme The ﬁ rst round of the Royalties for Regions Gascoyne Regional Grants Scheme opened on 12 February 2009 and closed on 25 March 2009.

$3.5 million was available through a contestable grant process for projects that will improve economic and community infrastructure and services in the Region, assist in attracting investment and increasing jobs, or help to improve the quality of life in the region.

22 Achievements The GDC successfully managed the ﬁ rst round of the Gascoyne Regional Grants Scheme which attracted 43 applications with a total request of $8,765,202.94 for 2008/09. 25 projects were supported and a further three projects were offered developmental support by the GDC to enable them to better prepare to attract future funding. A list of projects funded is presented at the conclusion of this section of the Annual Report.

GDC Minor Grants Scheme This scheme provides a source of funds which, at the general discretion of the Board, can be used to support small projects within the Gascoyne that are con- sistent with the objectives of the GDC.

Achievements A list of projects funded by the Scheme in 2008/09 is presented at the conclusion of this section of the Annual Report.

Regional Promotion Program The promotion of the GDC and the Gascoyne region supports the overall aims and objectives of the GDC to promote the Gascoyne as a better place to live, a great place to invest and a unique place to visit.

Achievements To ensure excellence in regional promotion, the GDC has reviewed its current publications and marketing tools to identify the areas that require renewal and updating. This resulted in the development of a new image library, with local pho- tographers contracted to provide a series of images for future use by the GDC. In addition, the GDC has updated its own corporate image.

Gascoyne Works The Gascoyne Works aims to provide exposure of the GDC and the activities and projects it undertakes. Regular, up-to-date information and advice is provided through the regional newspaper in addition to the dissemination of an electronic newsletter. It ensures a more detailed level of information is disseminated to the community on programs, projects and grant opportunities.

Achievements The Gascoyne Works has featured every two months in the Northern Guardian. The e-newsletter has also been distributed with a revised format following the launch of the new and improved GDC website.

Gascoyne Community Foundation Program In October 2006, the Gascoyne Community Foundation was launched with $100,000 seed funding from the State Government Regional Investment Fund. The Foundation is a local independent not-for-proﬁ t trust fund set up to help the Region’s communities build and attract funds for a sustainable future. Inter-

23 est earned from the trust fund will generate a grants program aimed at supporting projects and activities that address the communities emerging needs.

Achievements In 2008/09 $3,000 was distributed to three organisations through the Gascoyne Community Giving grant round.

Industry Development and Promotions Scheme This provides a fl exible source of funding for projects that provide signifi cant benefi t for industry development or promotion.

Achievements In 2008/09 the scheme supported the Gascoyne Aboriginal Cultural and Heritage Centre with $26,000 for the production of a 3-D regional tourism ﬁ lm for screening at the Centre. The tourism footage will complement a second 3-D ﬁ lm on Indigenous culture and heritage of the Gascoyne region.

Minor Grants recipients In 2008/09 the GDC provided three funding rounds granting a total of $52,838 for the following projects.

Organisation Project Furnish umpires and committee Gascoyne Football Association Inc. rooms at new pavilion Purchase VHF radio repeater Gascoyne Off Road Racing Club Inc. for improved communication Establishment of a health and Shire of Upper Gascoyne wellness centre Mungullah Community Aboriginal Cor- Indigenous youth arts program poration for July school holidays New communication system to Shark Bay Speedway Inc. improve safety Arafmi Mental Health Carers & Friends Carer and carer recipient re- Association spite activities New play equipment including Carnarvon Playgroup climbing equipment Exmouth Visitors Centre Marketing Purchase a promotional TV, Committee Inc. DVD and display unit

24 Host Indigenous festival to show- Yadgalah Aboriginal Corporation Inc. case culture Carnarvon Community Mens Group Purchase of various equipment to (Koorda Club) assist project Carnarvon and District Shooting Sports Materials to build new housing trap Association Inc. Exmouth Anglican Community Church Purchase of data projector Musical equipment and signage for Exmouth Christian Fellowship Inc. mainly music program Carnarvon Motorcycle Club Inc. Purchase a public address system Mungullah Community Aboriginal Package for revival and restoration Corporation of dance, song, music and costume

Shire of Shark Bay - Muscle Mechanics Gym Equipment - Weight bars Personal Training

Erection of new playground equip- St Marys Star of the Sea P and F ment, soft fall, retainer Purchase sand, concrete, mesh etc Carnarvon Horse and Pony Club to erect equipment shed

Truscott Memorial Club Install two air conditioning units

Purchase of refrigerator, dishwash- Carnarvon Lotteries House er and installation

Carnarvon Amateur Swimming Club Contribution to regional meet

Festival of Carnarvon Inc Banners for Tropicool Festival Volunteer Marine Rescue Shark Bay Laptop, projector, printer (SES) CD Player, music, for “Mainly Mu- Exmouth Christian Fellowship Church sic” sessions Exmouth Game Fishing Club Clubhouse crockery and cutlery

Shire of Exmouth - Learn to Swim Purchase of equipment Children’s Corner with new books, Shire of Exmouth - Library and Telecentre shelving, cushions, table Gascoyne Football Association Inc - Refrigerator and freezer for canteen Hawks

STOP Social Club Inc - Useless Loop Gym equipment

25 Carnarvon Community Patrol Aborigi- Plastic PVC seat covers & CB nal Corporation radio for new bus Isolated Children’s Parent’s Associa- Delegate packs & audio visual for tion of WA Inc Gascoyne hosting annual conference Equipment, installation, and soft- Shire of Carnarvon ware for Carnarvon webcam St John Ambulance Shark Bay Sub Certiﬁ cate IV in taining & assess- Centre ment for volunteer

Carnarvon Amateur Swimming Club Equipment - printer and DVD/VCR

Soroptimists International of World Rural Women’s Day cel- Carnarvon Inc ebration luncheon

Exmouth Chamber of Commerce and Acknowledgement of sponsors & Industry donors from Pink Bridge Project

Regional Development Scheme Funds (RDS) The following projects were approved for Regional Development Scheme funding in the 2008/2009 ﬁ nancial year.

Organisation Project Competition lane ropes and Carnarvon Amateur Swimming Club storage reels Special needs and multi-use Carnarvon Family Support Service portable community toilets Carnarvon Golf Club Buggy room replacement Timing transponder and one Carnarvon Speedway Club way communicator

Carnarvon Volunteer Sea Rescue Air berth boat lift

Coral Bay services and storage Coral Bay Progress Association facility feasibility study CapeCam – promoting Ex- Curtin University mouth on the Internet Gascoyne Showcase of Performing Arts Mobile Sound Shell Gnaraloo Airstrip upgrade to Gnaraloo Station RFDS standards Volunteer Marine Rescue Shark Bay Shark Bay Marine rescue boat

26 Royalties for Regions - Gascoyne Regional Grant Scheme The following projects were approved for Gascoyne Regional Grant Scheme funding in the 2008/2009 ﬁ nancial year.

Organisation Project Boolbardie Country Club Inc Golf carts and storage sheds Carnarvon Christian School New multi-purpose school building Carnarvon Motorcycle Club Inc Shade structure Coral Bay Progress Association FESA/education co-location facility Assessment of the need for a residential Drug and Alcohol Ofﬁ ce alcohol and drug facility in Carnarvon Exmouth District High School EDHS sustainable garden project Exmouth Playgroup Inc Playground upgrade

Gascoyne Growers Market Inc Gascoyne Food Trail – signage Ngala Community Services Ngala Online Detailed architectural concept plan and Ningaloo Research Centre business case Shire of Carnarvon Carnarvon Airport Shire of Carnarvon Carnarvon Aquatic Centre improvements

Shire of Carnarvon Integrated water supply Shire of Carnarvon Carnarvon Airport runway refurbishment Shire of Carnarvon Fascine – urgent remedial works Shire of Exmouth Exmouth pool shade Exmouth multi-purpose community cen- Shire of Exmouth tre business plan Shire of Exmouth Vlamingh Head lighthouse precinct Shire of Exmouth Townscape development plan Shire of Shark Bay Shark Bay community recreation centre Shire of Upper Gascoyne Land sub-divisions – engineering Community resource centre- feasibility Shire of Upper Gascoyne study and business plan Federation of Western Australia Po- PCYC upgrades lice and Community Youth Centres Volunteer Marine Rescue Shark Bay Shark Bay Marine rescue boat

27 2.2 Gascoyne Development Commission Actual performance compared to resource targets

Government Goal Ensuring that regional Western Australia is strong and vibrant.

Effectiveness Indicators The activities of the Commission are focused on the attainment of an environment conducive to the balanced economic and social development of the Gascoyne region.

The Commission operates on a project basis to achieve economic and social development of the Region. Projects vary widely to encompass developing policies, strategic plans and facilitating their implementation, encouraging business investment, identifying social and cultural infrastructure to improve business growth and quality of life, and regional promotion.

Funding can vary dramatically over each ﬁ nancial year depending on shifting priorities and what strategic partnerships and shared project funding initiatives can be established during the year.

Key Effectiveness Indicators The Commission is effective and makes a positive contribution to the economic and social development of the Gascoyne region.

Customer Survey A Customer Survey of the Commission’s database of contacts was undertaken in April 2009 to solicit responses relating to the achievement of the Commission’s service.

Of the 124 questionnaires sent we received a 30% response rate. The response rate this year was poor and the survey process next year will incorporate a follow up on potential respondents should a low level of responses look imminent.

Respondents were asked if the Commission is effective and makes a positive contribution to the economic development of the Gascoyne region. 94% of respondents thought the Commission was average or better in this regard.

28 Gascoyne Development Commission - Actual performance compared to resource targets

The survey also asked if the Commission is effective and makes a positive contribution to the social development of the Gascoyne region. 89% of respondents thought the Commission was average or better in this regard. The effectiveness indicator below is the average of the results of the two questions asked above.

Key Performance Target Actual Actual Actual Actual Actual Indicators Variance 2009 2009 2008 2007 2006 2005

7% Key Effectiveness Indicator: An environment conducive Survey to the balanced economic 85% 92% 94% 95% 80% 86% results and social development of were the Gascoyne region extremely positive

Service - Regional Development Key Efﬁ ciency Indicators - Cost per project hour The following table records the total cost of services per project hour as an audited key efﬁ ciency indicator.

Target Actual Actual Actual Actual Actual Variance 2009 2009 2008 2007 2006 2005 $14 Key Efﬁ ciency Indicator: Increased Cost per project hour $130 $144 $126 $115 $114 $142 expenditure, see note below.

The Commission’s budget is directed to numerous output focused projects supporting the economic and social development of the Gascoyne region. External funding sources and networking partners are continually sought to enhance project scope and effectiveness.

The attraction of additional funding (or the withdrawal of anticipated funding) can result in wide variations between expectations and actual results. Additional external funding will increase expenditure and result in a higher cost per project hour and vice versa. To help counter some distortion, the ﬁ gures for this year and prior years have been adjusted to exclude grant expenditure.

29 2.3 Gascoyne Development Commission Certiﬁ cation of key performance indicators

We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Gascoyne Development Commission’s performance, and fairly represent the performance of the Gascoyne Development Commis- sion for the ﬁ nancial year ending 30 June 2009.

Veronica Fleay Stephen Yule Chairman Chief Executive Ofﬁ cer 7 August 2009 7 August 2009

30 3. SIGNIFICANT ISSUES

Signiﬁ cant issues impacting the Agency

The Royalties for Regions Grant Scheme initiative is a major development for the Gascoyne region and the Gascoyne Develop- ment Commission. The Scheme will allow signiﬁ cant upgrades to regional infrastructure and improvements to regional services.

In 2008-09 the Gascoyne Regional Grants Scheme commenced with $3.8million committed to regional projects through the contestable grant scheme. The Gascoyne Regional Grants Scheme initiative, managed by the Commission, has resulted in a greater role for the Commission in supporting and progressing major strategic projects for the region.

New technologies and innovation in water management and di- versiﬁ cation of crops has resulted in major agricultural expansion opportunities for Carnarvon. The Gascoyne Foodbowl Initiative, announced by the Government in December 2008, will stimulate and expand the region’s food industry. The Commission has an important role in supporting a local consultative committee that reports to a Ministerial Reference Group.

The opening of the Gascoyne Aboriginal Heritage and Cultural Centre will provide continued support for Indigenous economic and social development and strengthening of cultural heritage. The Indigenous people of the Gascoyne are now realizing their aspirations of a meeting place that encourages and promotes the cultural heritage of the region.

In addition to the State Government funding for the employment of a Centre Manager, the Commission continues to support the Cultural Centre through support of Indigenous business development and opportunities in tourism and regional promotion through the Centre.

To develop resilient and progressive communities in the Gas- coyne, the Commission is implementing a leadership strategy that will deliver outcomes for individuals, small business and industry.

The Commission is actively supporting and initiating the local delivery of training and development programs such as an Australian Institute of Management Diploma of Management, as well as other small business and industry training and development workshops. The Diploma of Management will be delivered in the region for the ﬁ rst time as a result of Commission support.

31 4. GASCOYNE DEVELOPMENT COMMISSION DISCLOSURE AND COMPLIANCE

4.1 Gascoyne Development Commission Certiﬁ cation of ﬁ nancial statements

The accompanying fi nancial statements of the Gascoyne Development Commission have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the fi nancial transactions for the fi nancial year ending 30 June 2009 and the fi nancial position as at 30 June 2009.

At the date of signing we are not aware of any circumstances which would render the particulars included in the ﬁ nancial statements misleading or inaccurate.

Chris Jones Stephen Yule Chief Finance Ofﬁ cer Chief Executive Ofﬁ cer 7 August 2009 7 August 2009

Veronica Fleay Chair 7 August 2009

32 4.2 Gascoyne Development Commission Income statement for the year ended June 30 2009

Note 2009 2008 $$ COST OF SERVICES Expenses Employee beneﬁ ts expense 7 1,101,889 1,009,980 Supplies and Services (a) 8 744,899 603,081 Depreciation and amortisation expense 9 8,817 5,419 Accommodation expenses 10 125,252 142,659 Grants and Subsidies 11 369,317 893,190 Loss on disposal of non current assets 19 7,367 - Other Expenses 14 4,126 3,393 Total cost of services 2,361,667 2,657,722

Income Revenue User charges and fees 12 87,582 53,247 Commonwealth grants and contributions 88,242 173,115 Other Revenue 13 51,000 49,851 Total Revenue 226,824 276,213

Total income other than income from State Government 226,824 276,213

NET COST OF SERVICES 2,134,843 2,381,509

INCOME FROM STATE GOVERNMENT Service appropriation 15 1,461,000 1,594,000 Grants received from Government 557,003 629,747 Liabilities assumed by the Treasurer (b) 15 - 8,518 Royalties for Regions Fund 15 4,440,000 - Total income from State Government 6,458,003 2,232,265

SURPLUS/(DEFICIT) FOR THE PERIOD 4,323,160 (149,244)

(a) Includes administrative expenses (b) Notional income equivalent to the notional superannuation expense included in employee beneﬁ ts expense. Commencing in 2008-09 the reporting of notional superannuation expense and the notional income equivalent has been discontinued.

The Income Statement should be read in conjunction with the accompanying notes. 33 4.3 Gascoyne Development Commission Balance sheet as at year ended June 30 2009

Note 2009 2008 Assets $$ Current Assets Cash and cash equivalents 26(a) 707,061 498,061 Restricted cash and cash equivalents 16 5,422,306 1,198,492 Receivables 19 58,575 67,981 Amounts receivable for services 20 34,000 66,000 Total Current Assets 6,221,942 1,830,534

Non-Current Assets Property, plant and equipment 17 14,990 12,871 Total Non-Current Assets 14,990 12,871

Total Assets 6,236,932 1,843,405

Liabilities Current Liabilities Payables 21 75,136 48,749 Provisions 22 212,737 167,829 Other current liabilities 23 11,283 7,774 Total Current Liabilities 299,156 224,352

Non-Current Liabilities Provisions 22 9,588 14,025 Total Non-Current Liabilities 9,588 14,025

Total Liabilities 308,744 238,377

NET ASSETS 5,928,188 1,605,028 Equity Contributed equity 24 90,000 90,000 Accumulated surplus 5,838,188 1,515,028

TOTAL EQUITY 5,928,188 1,605,028

The balance sheet should be read in conjunction with the accompanying notes. 34 4.4 Gascoyne Development Commission

Changes in equity for the year ended June 30 2009

Note 2009 2008 $ $

Balance of equity at start of period 1,605,028 1,754,272

CONTRIBUTED EQUITY Balance at start of period 24 90,000 90,000 Balance at end of period 90,000 90,000

ACCUMULATED SURPLUS (RETAINED EARNINGS)

Balance at start of period 1,515,028 1,664,272 Surplus/(deﬁ cit) for the period 4,323,160 (149,244) Balance at end of period 5,838,188 1,515,028

Balance of equity at end of period 5,928,188 1,605,028

Total income and expense for the period 4,323,160 (149,244)

The aggregate net amount attributable to each category of equity is:surplus $4,323,160 (2008 deﬁ cit $149,244).

35 4.5 Gascoyne Development Commission Cash ﬂ ow statement for the year ended June 30 2009

Note 2009 2008 $$ CASH FLOWS FROM STATE GOVERNMENT Service appropriation 1,453,000 1,584,000 Holding account drawdowns 40,000 40,000 Royalties for Regions Fund 4,440,000 - Other Government Grants 553,330 624,006 Net cash provided by State Government 6,486,330 2,248,006 Used as follows: CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee beneﬁ ts (1,230,650) (1,150,315) Supplies and services (559,371) (483,575) Accommodation (121,352) (91,768) Grants and subsidies (365,039) (859,872) GST payments on purchases (110,776) (118,981)

Receipts Commonwealth grants and contributions 103,501 159,243 Grants and subsidies - 20,000 User charges and fees 151,664 59,284 GST receipts from taxation authority 96,629 113,934 GST receipts on revenue 413 6,796 Net cash used in operating activities 26(b) (2,034,981) (2,345,252)

CASH FLOWS FROM INVESTING ACTIVITIES Sale of non-current physical assets 213 - Purchase of non-current physical assets (18,748) - Net cash used in investing activities (18,535) -

Net increase/(decrease) in cash and cash equivalents 4,432,814 (97,248) Cash assets and cash equivalents at the beginning of period 1,696,553 1,793,801 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 26(a) 6,129,367 1,696,553

The cash ﬂ ow statement should be read in conjunction with the accompanying notes 36 4.6 Gascoyne Development Commission Notes to the ﬁ nancial statements for the year ended 30 June 2009

1. Australian equivalents to International Financial Reporting Standards The Commission’s ﬁ nancial statements have been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRS) which comprise a Framework for the Preparation and Presentation of Financial Statements (the Framework) and Australian Accounting Standards (including the Australian Accounting Interpretations).

In preparing these ﬁ nancial statements the Authority has adopted, where relevant to its operations, new and revised Standards and Interpretations from their operative dates as issued by the AASB and formerly the Urgent Issues Group (UIG).

Early adoption of standards The Commission cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretation unless speciﬁ cally permitted by TI 1101 ‘Application of Australian Accounting Standards and Other Pro- nouncements’. No Standards and Interpretations that have been issued or amended but are not yet effective have been early adopted by the Authority for the annual reporting period ended 30 June 2009.

2. Summary of signifi cant accounting policies (a) General Statement The fi nancial statements constitute a general purpose fi nancial report which has been prepared in accordance with the Australian Account- ing Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board as applied by the Treasurer’s instructions. Several of these are modifi ed by the Treasurer’s instructions to vary application, disclosure, format and wording.

The Financial Management Act and the Treasurer’s instructions are legislative provisions governing the preparation of ﬁ nancial statements and take precedence over the Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board.

37 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

Where modifi cation is required and has a material or signifi cant fi nancial effect upon the reported results, details of that modifi cation and the resulting fi nancial effect are disclosed in the notes to the fi nancial statements.

(b) Basis of Preparation The ﬁ nancial statements have been prepared on the accrual basis of accounting using the historical cost convention. The ﬁ nancial statements are presented in Australian dollars.

The accounting policies adopted in the preparation of the ﬁ nancial statements have been consistently applied throughout all periods presented unless otherwise stated.

The judgements that have been made in the process of applying the Commission’s accounting policies that have the most signiﬁ - cant effect on the amounts recognised in the ﬁ nancial statements are disclosed at note 3 ‘Judgements made by management in applying accounting policies’.

The key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date that have a signiﬁ cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next ﬁ nancial year are disclosed at note 4 ‘Key sources of estimation uncertainty’.

(d) Contributed Equity AASB Interpretation 1038 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities’ requires transfers in the nature of equity contributions to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions. Capital appropriations are designated as contributions by owners and have been credited directly to Contributed Equity.

38 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009 e) Income Revenue recognition Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the major activities as follows: Sale of goods Revenue is recognised from the sale of goods and disposal of other assets when the signiﬁ cant risks and rewards of ownership control transfer to the purchaser and can be measured reliably. Service appropriations Service Appropriations are recognised as revenues at nominal value in the period in which the Commission gains control of the appropriated funds, which is at the time those funds are deposited to the bank account or credited to the holding account held at Treasury. (See note 15 Income from State Government) Grants, gifts and other non-reciprocal contributions Revenue is recognised at fair value when the Commission obtains control over the assets comprising contributions, usually when cash is received. Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated. Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the nature of, and amounts pertaining to, those undischarged conditions are disclosed in the notes. Gains Gains may be realised or unrealised and are usually recognised on a net basis. These include gains arising on the disposal of noncurrent assets and some revaluations of noncurrent assets.

(f) Property, Plant and Equipment and Infrastructure Capitalisation/Expensing of assets Items of property, plant and equipment and infrastructure costing $5,000 or more are recognised as assets and the cost of using assets is expensed (depreciated) over their useful lives. Items of property,

39 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

plant and equipment are initially recognised at cost. Items of property, plant and equipment costing less than $5,000 are immediately expensed direct to the Income Statement (other than where they form part of a group of similar items which are signifi cant in total). Initial recognition and measurement All items of property, plant and equipment are initially recognised at cost. For items of property, plant and equipment acquired at no cost or for nominal consideration, the cost is their fair value at the date of acquisition. Subsequent measurement After recognition as an asset the cost model is used for all other property, plant and equipment. Property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Depreciation All non-current assets having a limited useful life are systemati- cally depreciated over their estimated useful lives in a manner that refl ects the consumption of their future economic benefi ts. Depreciation is calculated using the diminishing value method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are: Furniture and fi ttings 8 years Offi ce equipment and integrated software 4 years

(g) Intangible Assets Capitalising / expensing of assets Acquisitions of intangible assets costing $5,000 or more and internally generated intangible assets costing $50,000 or more are capitalised. The cost of using the assets is expensed (amortised) over their useful life. Costs incurred below these thresholds are immediately expensed to the Income Statement. All acquired and internally developed intangible assets are initially recognised at cost. For assets acquired at no cost, the cost is their fair value at the date of acquisition. The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses.

40 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

Amortisation for intangible assets with fi nite useful lives is calculated for the period of the expected benefi t (estimated useful life) on the diminishing value basis using rates which are reviewed annually. All intangible assets controlled by the Authority have a fi nite useful life and zero residual value. The expected useful lives for each class of intangible asset are: Licences up to 10 years Software (a) 4 years Website costs 4 years (a) Software that is not integral to the operation of any related hardware. Licences Licences have a fi nite useful life and are carried at cost less accumulated amortisation and accumulated impairment losses. Computer Software Software that is an integral part of the related hardware is treated as property, plant and equipment. Software that is not an integral part of the related hardware is treated as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition. Web site costs Web site costs are charged as expenses when they are incurred unless they relate to the acquisition or development of an asset when they may be capitalised and amortised. Generally, costs in relation to feasibility studies during the planning phase of a web site, and ongoing costs of maintenance during the operating phase are expensed. Costs incurred in building or enhancing a web site, to the extent that they represent probable future economic benefi ts that can be reliably measured, are capitalised.

(h) Impairment of Assets Property, plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at each reporting date. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is written down to the recoverable amount and an impairment loss is recognised. As the Commission is a not for proﬁ t entity, unless an asset has been identiﬁ ed as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost. The risk of impairment is generally limited to circumstances where an

41 Gascoyne Development Commission - Notes to the fi nancial statements for the year ended 30 June 2009 asset’s depreciation is materially understated, where the replacement cost is falling or where there is a signifi cant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation refl ects the level of consumption or expiration of the asset’s future economic benefi ts and to evaluate any impairment risk from falling replacement costs. Intangible assets with an indefi nite useful life and intangible assets not yet available for use are tested for impairment at each balance sheet date irrespective of whether there is any indication of impairment. The recoverable amount of assets identifi ed as surplus assets is the higher of fair value less costs to sell and the present value of future cash fl ows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at each balance sheet date.

(i) Leases The Commission holds operating leases for vehicles. Lease payments are expensed on a straight line basis over the lease term as this represents the pattern of beneﬁ ts derived from the leased vehicles.

(j) Cash and Cash Equivalents For the purpose of the Cash Flow Statement, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash on hand.

(k) Financial Instruments In addition to cash, the Commission has two categories of ﬁ nancial instrument: • Loans and receivables; and • Financial Liabilities measured at amortised cost. These have been disaggregated into the following classes: Financial Assets • Cash and cash equivalents • Restricted cash and cash equivalents 42 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009 • Receivables • Amounts receivable for services

Financial Liabilities • Payables

Initial recognition and measurement of ﬁ nancial instruments is at fair value which normally equates to the transaction cost or the face value. Subse- quent measurement is at amortised using the effective interest method. The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material.

(l) Accrued Salaries Accrued salaries (see note 21 ‘Payables’) represent the amount due to staff but unpaid at the end of the fi nancial year, as the end of the last pay period for that fi nancial year does not coincide with the end of the fi nancial year. Accrued salaries are settled within a fortnight of the fi nancial year end. The Commission considers the carrying amount of accrued salaries to be equivalent to the net fair value.

(m) Amounts Receivable for Services (Holding Account) The Commission receives funding on an accrual basis that recognises the full annual cash and non cash cost of services. The appropriations are paid partly in cash and partly as an asset (Holding Account receivable) that is accessible on the emergence of the cash funding requirement to cover items such as leave entitlements and asset replacement. See also note 15 ‘Income from State Government’ and note 20 ’Amounts receivable for services’.

(n) Receivables Receivables are recognised and carried at original invoice amount less an allowance for uncollectible amounts (ie impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identiﬁ ed as uncollectible are written off. The allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the Commis- sion will not be able to collect the debt. The carrying amount is equivalent to fair value as it is due for settlement within 30 days. See note 19 ‘Receivables’.

(o) Payables Payables are recognised at the amounts payable when the Commission 43 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009 becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as they are generally settled within 30 days. See note 21 ‘Payables’.

(p) Provisions Provisions are liabilities of uncertain timing and amount and are recognised where there is a present legal, equitable or construc- tive obligation as a result of a past event and when the outﬂ ow of economic beneﬁ ts is probable and can be measured reliably. Provisions are reviewed at each balance sheet date. See note 22 ‘Provisions’.

(i) Provisions - Employee Benefi ts Annual Leave and Long Service Leave The liability for annual and long service leave expected to be settled within 12 months after the end of the reporting date is recognised and measured at the undiscounted amounts expected to be paid when the liabilities are settled. Annual and long service leave expected to be settled more than 12 months after the end of the reporting date is measured at the present value of amounts expected to be paid when the liabilities are settled. Leave liabilities are in respect of services provided by employees up to the balance sheet date. When assessing expected future payments consideration, is given to expected future wage and salary levels including non salary components such as employer superannuation contributions. In addition, the long service leave liability also considers the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outfl ows. All annual leave and unconditional long service leave provisions are classifi ed as current liabilities as the Commission does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. A liability for long service leave is recognised after an employee has completed four years of service, or after three years if it is considered highly likely that the employee will continue to entitlement date. 44 Gascoyne Development Commission - Notes to the fi nancial statements for the year ended 30 June 2009 Superannuation The Government Employees Superannuation Board (GESB) adminis- ters the following superannuation schemes. Employees may contribute to the Pension Scheme, a defi ned benefi t pension scheme now closed to new members or the Gold State Su- perannuation Scheme (GSS), a defi ned benefi t lump sum scheme also closed to new members. The Commission has no liabilities under the Pension or the GSS Schemes. The liabilities for the unfunded Pension Scheme and the unfunded GSS Scheme transfer benefi ts due to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS Scheme obligations are funded by concurrent contributions made by the Commission to the GESB. The concurrently funded part of the GSS Scheme is a defi ned contribution scheme as these contributions extinguish all liabilities in respect of the concurrently funded GSS Scheme obligations. Employees commencing employment prior to 16 April 2007 who are not members of either the Pension or the GSS Schemes become non contributory members of the West State Superannuation Scheme (WSS). Employees commencing employment on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). Both of these schemes are accumulation schemes. The Commission makes concurrent contributions to GESB on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guaran- tee (Administration) Act 1992. These contributions extinguish all liabilities in respect of the WSS and GESBS Schemes. The GESB makes all benefi t payments in respect of the Pension and GSS Schemes, and is recouped by the Treasurer for the employer’s share.

(ii) Provisions - Other Employment On Costs Employment on-costs, including workers’ compensation insurance, are not employee beneﬁ ts and are recognised as separate liabilities and expenses when the employment to which they relate has occurred. Em- ployment on-costs are included as part of ‘Other Expenses’ and are not included as part of the Authority’s ‘Employee beneﬁ ts expense’. The related liability is included in Employment on-costs provision. (See note 14 ‘Other expenses’ and note 22 ‘Provisions’).

45 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

(q) Superannuation Expense The following elements are included in calculating the superannuation expense in the Income Statement: (a) Defi ned benefi t plans – For 2007-08, the change in the unfunded employer’s liability (ie current service cost and actuarial gains and losses) assumed by the Treasurer in respect of current employees who are members of the Pension Scheme and current employees who accrued a benefi t on transfer from that Scheme to the Gold State Superannuation Scheme (GSS); and (b) Defi ned contribution plans - Employer contributions paid to the GSS (concurrent contributions), the West State Superannu- ation Scheme (WSS) and the GESB Super Scheme (GESBS). Defi ned benefi t plans – For 2007-08, the movements (ie current service cost and actuarial gains and losses) in the liabilities in respect of the Pension Scheme and the GSS transfer benefi ts are recognised as expenses. As these liabilities are assumed by the Treasurer (refer note 2(o)(i)), a revenue titled ‘Liabilities assumed by the Treasurer’ equivalent to the expense is recognised under Income from State Government in the Income Statement (See note 15 ‘Income from State Government’). Commencing in 2008-09, the reporting of annual movements in these notional liabilities has been discontinued and are no longer recognised in the income statement. The superannuation expense does not include payment of pen- sions to retirees. as this does not constitute part of the cost of services provided in the current year. The GSS Scheme is a defi ned benefi t scheme for the purposes of employees and whole-of-government reporting. However, apart from the transfer benefi t, it is a defi ned contribution plan for agency purposes because the concurrent contributions (defi ned contributions) made by the agency to GESB extinguishes the agency's obligations to the related superannuation liability.

(r) Resources received free of charge or for nominal consideration Resources received free of charge or for nominal value that can be reliably measured are recognised as revenues and as assets or expenses as appropriate at fair value.

(s) Comparative ﬁ gures

46 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

Comparative fi gures are, where appropriate, reclassifi ed to be comparable with the fi gures presented in the current fi nancial year.

3. Judgements made by management in applying accounting policies There are no judgements that have been made in the process of applying accounting policies that have a signiﬁ cant effect on the amounts recognised in the ﬁ nancial statements.

4. Key sources of estimation uncertainty There are no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date that have a signiﬁ cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next ﬁ nancial year.

5. Disclosure of changes in accounting policy and estimates Initial application of an Australian Accounting Standard The Commission has applied the following Australian Accounting Standards and Australian Accounting Interpretations effective for annual reporting periods beginning on or after 1 July 2008 that impacted on the Commission: Review of AAS 27 ‘Financial Reporting by Local Governments’, AAS 29 ‘Financial Reporting by Government Departments’ and AAS 31 ’Financial Reporting by Governments’. The AASB has made the following pronouncements from its short term review of AAS 27, AAS 29 and AAS 31: AASB 1004 ‘Contributions’; AASB 1050 ‘Administered Items’; AASB 1051 ’Land Under Roads’; AASB 1052 ‘Disaggregated Disclosures’; AASB 2007-9 ‘Amendments to Australian Accounting Standards arising from the review of AASs 27, 29 and 31 [AASB 3, AASB 5, AASB 8, AASB 101, AASB 114, AASB 116, AASB 127 & AASB 137]; and Interpretation 1038 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities’. The existing requirements in AAS 27, AAS 29 and AAS 31 have been transferred to the above new and revised topic-based Standards and Interpretation. These requirements remain substantively unchanged.

47 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

AASB 1050, AASB 1051 and AASB 1052 do not apply to Statutory Authorities. The other Standards and Interpretation make some modiﬁ cations to disclosures and provide additional guidance (for example, Australian Guidance to AASB 116 ‘Property, Plant and Equip- ment’ in relation to heritage and cultural assets has been introduced), otherwise there is no ﬁ nancial impact.

6. Future impact of Australian Accounting Standards not yet operative The Commission cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretation unless specifi - cally permitted by TI 1101 ‘Application of Australian Account- ing Standards and Other Pronouncements’. Consequently, the Commission has not applied the following Australian Account- ing Standards and Australian Accounting Interpretations that have been issued and which may impact the Commission but are not yet effective. Where applicable, the Commission plans to apply these Standards and Interpretations from their application date: 1 January 2009 AASB 101 ‘Presentation of Financial Statements’ (September 2007). This Standard has been revised and will change the structure of fi nancial statements. These changes will require that owner changes in equity are presented separately from non-owner changes in equity. The Authority does not expect any fi nancial impact when Standard is applied. AASB 2008-13 ‘Amendments to Australian Accounting Stan- dards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners [AASB 5 & AASB 110]’. This Standard amends AASB 5 ‘Noncurrent Assets Held for Sale and Discontinued Operations’ in respect of the classifi cation, presentation and measurement of non-current assets held for distribution to owners in their capacity as owners. This may impact on the presentation and classifi cation of Crown land held by the Department where the Crown land is to be sold by the Department for Planning and Infrastructure. The Department does not expect any fi nancial impact when the Standard is fi rst applied prospectively. 1 July 2009 AASB 2009-2 ‘Amendments to Australian Accounting Stan- dards – Improving Disclosures about Financial Instruments 48 Gascoyne Development Commission - Notes to the fi nancial statements for the year ended 30 June 2009

[AASB 4, AASB 7, AASB 1023 & AASB 1038]’. This Standard amends AASB 7 and will require enhanced disclosures about fair value measurements and liquidity risk with respect to fi nancial instruments. The Authority does not expect any fi nancial impact when the Standard is fi rst applied. 1 January 2009 AASB 2009-2 ‘Amendments to Australian Accounting Stan- dards – Improving Disclosures about Financial Instruments [AASB 4, AASB 7, AASB 1023 & AASB 1038]’. This Standard amends AASB 7 and will require enhanced disclosures about fair value measurements and liquidity risk with respect to fi nancial instruments. The Authority does not expect any fi nancial impact when the Standard is fi rst applied.

7. Employee benefi ts expense 2009 2008 $ $ Wages and salaries (a) 926,546 870,021 Superannuation – defi ned contribution plans (b) 84,705 81,862 Superannuation – defi ned benefi t plans (c&d) - 8,518 Long service leave (e) 1,458 (19,347) Annual leave (e) 34,887 37,164 Board fees and allowances inc superannuation 54,293 31,762 1,101,889 1,009,980

(a) Includes the value of fringe benefi t to the employee plus the fringe benefi t tax component. (b) Defi ned contribution plans include West State and Gold State and GESB Super Scheme (contributions paid). (c) Defi ned benefi t plans include Pension Scheme and Gold State (pre-transfer benefi t). (d) An equivalent notional income is also recognised (see note 15 'Income from State Government'). Commencing in 2008/09 the reporting of notional superannuation expense and equivalent notional income has been discontinued. (e) Includes a superannuation contribution component. Employment on-costs such as workers’ compensation insurance are included at note 14 ‘Other Expenses’. The employment on-costs liability is included at note 22 ‘Provisions’.

Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

2009 2008 $ $

8. Supplies and services Communications 32,716 12,517 Consumables 106,950 35,947 Other staff costs 192,924 65,116 Consultants and contractors 258,947 184,752 Materials 111,695 207,546 Repairs and maintenance 21,677 77,062 Travel 19,990 20,141 744,899 603,081

9. Depreciation and amortisation expense Depreciation Electronic Equipment 7,852 3,193 Furniture and Fittings 965 2,226 8,817 5,419

10. Accommodation expenses Lease rentals 92,366 91,768 Repairs and maintenance 7,704 29,312 Cleaning 25,182 21,579 125,252 142,659

11. Grants and subsidies Recurrent 369,317 893,190

12. User Charges and Fees Comprises ofﬁ ce rental fees and rental charges to staff in government housing. 87,582 53,247

13. Other Revenue Comprises contributions to project funding and any returned funding for cancelled projects. 51,000 49,851

Gascoyne Development Commission - Notes to the ﬁ nancial statement for the year ended 30 June 2009

2009 2008 $ $

14. Other Expenses Employment on-costs 4,126 3,393

Includes workers’ compensation insurance and other employment on-costs. The on-costs liability associated with the recognition of annual and long service leave liability is included at note 21 ‘Provisions’. Superannuation contributions accrued as part of the provisions for leave are employee beneﬁ ts and are not included in employment on-costs (see note 7).

15. Income from State Government Appropriation received during the year:

Service appropriation (a) 1,453,000 1,584,000 Holding Account (a) 8,000 10,000 1,461,000 1,594,000

Liabilities assumed by the Treasurer during the ﬁ nancial year. Superannuation (b) - 8,518

Royalties for Regions Fund (d) 4,440,000 -

(a) Service appropriations are accrual amounts reﬂ ecting the net cost of services delivered. The appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year.

(b) The assumption of the superannuation liability by the Treasurer is a notional income to match the notional superannuation expense reported in respect of current employees who have a 51 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

transfer beneﬁ t entitlement under the Gold State Superannua tion Scheme. It is no longer recognised (see Note 1(p)).

(c) Where assets or services have been received free of charge, the Authority recognises the fair value as revenue and an equivalent amount as expenditure.

(d) The recurrent funds are committed to projects and programs in W.A. regional areas.

2009 2008 $ $

16. Restricted Cash

Current Ningaloo Research Centre 22,878 92,701 Royalties for Regions 4,440,000 - Gascoyne Aboriginal Heritage and - 135,000 Cultural Centre Mt Augustus and Gascoyne Out- - 140,000 back Development project

Minor Grants Funds 40,938 70,929

Externally funded projects 20,000 129,044 Regional Development Scheme 898,490 630,818 Total 5,422,306 1,198,492 This represents cash held at bank quarantined for the speciﬁ ed purpose. Royalties for Regions funds are for projects and programs in WA regional areas.

17. Property, plant and equipment Furniture and ﬁ ttings at cost 22,350 52,467 Accumulated depreciation (19,456) (42,789) 2,894 9,678

Equipment and vehicle at cost 28,326 92,700 Less accumulated depreciation (16,230) (89,507) 12,096 3,193

52 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

Total intangibles, plant and equipment 14,990 12,871

Reconcilliations Furniture and ﬁ ttings at year start 9,678 11,905 Additions - - Disposals - - Depreciation (965) (2,227) Write offs (5,819) - Carrying amount at year end 2,894 9,678

Equipment and Vehicle at start of 3,193 6,386 year Additions 18,758 - Revaluation - - Disposals (243) - Depreciation (7,852) (3,193) Write Offs (1,760) - Carrying amount at end of the year 12,097 3,193

18. Net gain or loss on disposal of non current assets Cost of disposal/write off (7,579) - Proceeds from disposal of non cur- 213 - rent assets Net gain (loss) (7,366) -

19. Receivables Current receivables 42,863 63,637 GST receivable 15,712 4,344 Also see note 2(m) ‘Receivables’. 58,575 67,981

20. Amounts receivable for services Current 34,000 66,000 Represents the non-cash component of service appropriations (see note 2(l) ‘Holding Account’). It is restricted in that it can only be used for asset replacement or payment of leave liability. 53 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

21. Payables 2009 2008 Current $ $ Trade payables 75,136 48,749 Total current 75,136 48,749 Also see note 2(n) ‘Payables’.

22. Provisions Current Employee beneﬁ ts provision

Annual leave (a) 143,343 106,503

Long service leave (b) 65,456 58,208

208,799 164,711

Other Provisions Employment on-costs current (c) 3,938 3,118 212,737 167,829

Non Current Employee beneﬁ ts provision

Long service leave 9,400 13,750

Employment on-costs non current 188 275

9,588 14,025

54 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

(a) Annual leave liabilities have been classiﬁ ed as current as there is no unconditional right to defer settlement for at least 12 months after balance sheet date. Assessments indicate that actual settlement of the liabilities will occur within 12 months of the reporting date.

(b) Long service leave liabilities have been classiﬁ ed as current where there is no unconditional right to defer settlement for at least 12 months. months after balance sheet date. Assessments indicate that actual settlement of the liabilities will occur as follows:

2009 2008 $ $ Within 12 months of the 65,456 58,208 reporting date More than 12 months after the 9,400 13,750 reproting date

c) The settlement of annual and long service liabilities gives rise to the payment of employment on costs including workers compensation insurance. The provision is the present value of expected future payments. The associated expense, apart from the unwinding of the discount (ﬁ nance cost), is included at note 13 ‘Other expenses’.

55 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009 2009 2008 $ $

23. Other Current Liabilities Accrued Salaries The last pay - 26th June 2007 11,283 7,774

24. Equity Equity represents the residual interest in the net assets of the Commission. The Government holds the equity interest in the Commission on behalf of the community

Contributed equity Balance at start of year 90,000 90,000 Capital contribution - - Balance at end of year 90,000 90,000

25 Accumulated surplus (deﬁ cit) Balance at start of year 1,515,028 1,664,272 Result for the period 4,323,160 (149,244) Balance at end of year 5,838,188 1,515,028

26 Notes - Cash ﬂ ow statement (a) Reconciliation of Cash

Cash at the end of the ﬁ nancial year as shown in the cash ﬂ ow statement is reconciled to the related items in the balance sheet as follows:

Cash and cash equivalents 707,061 498,061 Restricted cash and cash equivalents (see 5,422,306 1,198,492 Note 16) Total cash assets 6,129,367 1,696,553

56 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009 2009 2008 $ $

27. Remuneration of Members of the Account- able Authority and Senior Ofﬁ cers

Remuneration of Members of the Accountable Authority

The number of board members whose total fees, salaries, superannuation and other beneﬁ ts received or due for the ﬁ nancial year, who fall within the following bands are: $0 - 10,000 9 9 $10,001- $20,000 1 - The total renumeration of members is 54,293 31,762

Remuneration of Senior Offi cers The number of senior offi cers whose total salaries and other benefi ts received or due for the fi nancial year, who fall within the following band is: $80,001-$90,000 - 1 $90,001-$100,000 1 1 $140,001-150,000 1 - $150,001-160,000 - 1 $160,001-170,000 1 - The total renumeration of senior offi cers is: 365,299 336,516

The total renumeration includes the superannuation expense incurred by the Authority in respect of senior offi cers other than senior offi cers reported as members of the Accountable Authority. No members are members of the pension scheme. 57 Gascoyne Development Commission - Notes to the fi nancial statements for the year ended 30 June 2009 2009 2008 $ $

28. Write Offs Public property written off 7,581 - during the ﬁ nancial year.

29. Commitments Operating Lease Commitments The Commission has four vehicles under operating leases. Commitments for minimum lease payments are payable as follows:

Within 1 year 23,934 30,696 Later than 1 year and not later 10,420 21,756 than 5 years

30. Remuneration of Auditor Remuneration paid to the Auditor General in respect to the audit for the current ﬁ nancial year is as follows:

Auditing the accounts, ﬁ nancial 25,200 25,200 statements and performance indicators.

31. Contingent liabilities and contingent assets Contingent Liabilities In addition to the liabilities incorporated in the ﬁ nancial statements, the Commission has the following contingent liabilities:

$898,490 Regional Development Scheme Funding in restricted cash (note 16) is commited to the extent that if the grant recipients fulﬁ l their funding contractual commitments then their component of the funding will be paid out.

58 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009 $40,938 Minor Grant Scheme Funding in restricted cash (note 16 is commited to the extent that if the grant recipients fulﬁ l their funding contractual commitments then their component of the funding will be paid out.

Contingent Assets There are no contingent assets.

Contaminated sites Under the Contaminated Sites Act 2003, the Commission is required to report known and suspected contaminated sites to the Department of Environment and Conservation (DEC). In accordance with the Act, DEC classiﬁ es these sites on the basis of the risk to human health, the environment and evironmental values. Where sites are classiﬁ ed as contaminated- remediation required or possibly contaminated - investigation required, the Commission may have a liability in respect of investigation or remediation expenses.

The Commission has no known exposure in this regard.

32. Events occuring after the balance sheet date During the reporting period, the GDC approved $3,868,386 in grants under the Royalties for Regions Gascoyne Regional Grants Scheme. Subsequent to the balance date $1,573,168 of these grants become due and payable.

33 (a) Financial Risk Management Objectives and Policies Financial instruments held by the Commission are cash and cash equivalents, restricted cash and cash equivalents, Treasurer's advances, receivables, and payables. The Commission has limited exposure to ﬁ nancial risks. The Commission's overall risk management program focuses on managing the risks identiﬁ ed below.

Credit risk Credit risk arises when there is the possibility of the Commission's receivables defaulting on their contractual obligations resulting in ﬁ nancial loss to the Commission. The Commission measures credit risk on a fair value basis and monitors risk on a regular basis.

The maximum exposure to the credit risk at balance sheet date in relation to each class of recognised ﬁ nancial assets is the gross carrying amount of those assets inclusive of any provisions for impairment as shown on the balance sheet reproduced in (b) below.

Credit risk associated with the Commission's ﬁ nancial assets is minimal because the main receivable is the amounts receivable for services

59 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009 (holding account). For receivables other than government, the Commission negotiates only with recognised, creditworthy third parties. The Commission does not make sales of services. In addition, receivable balances are monitored on an ongoing basis with the result that the Commission's exposure to bad debts is minimal. There are no signiﬁ cant concentrations of credit risk.

Provision for impairment of ﬁ nancial assets is calculated based on past experience, and current and expected changes in client credit ratings. For ﬁ nancial assets that are either past due or impaired, refer to Note 2(m) and Note 19 'Receivables'.

Liquidity risk The Commission is exposed to liquidity risk through its purchasing in the normal course of business. Liquidity risk arises when the Commission is unable to meet its fi nancial obligations as they fall due. The Commission has appropriate procedures to manage cash fl ows including drawdowns of appropriations by monitoring forecast cash fl ows to ensure that suffi cient funds are available to meet its commitments.

Market risk The Commission does not trade in foreign currency and is not materially exposed to other price risks. Legislation does not allow the Commission to make borrowings. The Commission is not exposed to interest rate risk because all cash and cash equivalents and restricted cash are non-interest bearing.

(b) Categories of Financial Instruments In addition to cash and bank overdraft, the carrying amounts of each of the following categories of ﬁ nancial assets and ﬁ nancial liabilities at the balance sheet date are as follows:

2009 2008

$ $ Financial Assets Cash and cash equivalents 707 498 Restricted cash and cash equivalents 5422 1,198 Receivables (a) 93 134

Financial Liabilities Financial liabilities measured at amortised cost 309 238

(a) The amount of receivables excludes GST recoverable from the ATO (statutory receivable).

60 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

34 Explanatory Statement

(a) Signifi cant variations between estimates and actual results for the fi nancial year Signifi cant variations between estimates and actual results for income and expense are shown below. Signifi cant variations are considered to be those greater than 10% and $50,000.

2009 Est's Variation

$000 $000 $000 %

Expenses from ordinary activities Supplies and Services (a) 745 502 243 48% Grants and Subsidies 369 540 (171) (32%) Other Expenses 4 54 (50) (92%)

Revenues from ordinary activities Grants and Subsidies 88 652 (564) (87%) Other Revenue 51 0 51 -

Supplies and Services, Grants and Subsidies, Other Expenses The Commission’s budget is directed to numerous projects supporting the economic and social development of the Gascoyne region. External funding sources and networking partners are continually sought to enhance project scope and effectiveness. The attraction of additional funding (or the withdrawal of anticipated funding) can result in wide variations in revenue and expenditure over ﬁ nancial years. Also, the timing of Regional Development Scheme funds is dependent upon the recipient's project commencement date and subsequent milestone achievements.

Grants and Subsidies The estimates included grants revenue from the State Government which do not form a part of Net Cost of Services. The State Government contributed $500,000 to the Regional Development Scheme.

Other Revenue Comprises contributions to project funding and any returned funding for cancelled projects.

61 Gascoyne Development Commission - Notes to the ﬁ nancial statements for the year ended 30 June 2009

34 Explanatory Statement (continued)

(b) Signiﬁ cant variances between actual results for 2008 and 2009 Signiﬁ cant variations are considered to be those greater than 10% and $50,000.

2009 2008 Variation $000 $000 $000 %

Expenses Supplies and Services (a) 745 603 141 23% Grants and Subsidies 369 893 (524) (59%)

Revenue User charges and fees 88 53 35 66% Commonwealth grants and contributions 88 173 (85) (49%) Grants received from Government 557 630 (73) (12%) Royalties for Regions 4,440 - - -

Supplies and Services, Grants (including State and Commonwealthj) and Subsidies The Commission’s budget is directed to numerous projects supporting the economic and social development of the Gascoyne region. External funding sources and networking partners are continually sought to enhance project scope and effectiveness. The attraction of additional funding (or the withdrawal of anticipated funding) can result in wide variations in revenue and expenditure over ﬁ nancial years. Also, the timing of Regional Development Scheme funds is dependent upon the recipient's project commencement date and subsequent milestone achievements.

User Charges and Fees Reﬂ ects an increase in sub-lease charges and fees for training programs.

Royalties for Regions Royalties for Regions were ﬁ rst introduced in May 2009.

62 Auditor General

INDEPENDENT AUDIT OPINION

To the Parliament of Western Australia

GASCOYNE DEVELOPMENT COMMISSION FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS FOR THE YEAR ENDED 30 JUNE 2009

I have audited the accounts, financial statements, controls and key performance indicators of the Gascoyne Development Commission.

The financial statements comprise the Balance Sheet as at 30 June 2009, and the Income Statement, Statement of Changes in Equity and Cash Flow Statement for the year then ended, a summary of significant accounting policies and other explanatory Notes.

The key performance indicators consist of key indicators of effectiveness and efficiency.

Commission’s Responsibility for the Financial Statements and Key Performance Indicators The Commission is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Treasurer’s Instructions, and the key performance indicators. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements and key performance indicators that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances; and complying with the Financial Management Act 2006 and other relevant written law.

Summary of my Role As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements, controls and key performance indicators based on my audit. This was done by testing selected samples of the audit evidence. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Further information on my audit approach is provided in my audit practice statement. Refer www.audit.wa.gov.au/pubs/AuditPracStatement_Feb09.pdf.

An audit does not guarantee that every amount and disclosure in the financial statements and key performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the financial statements and key performance indicators.

Page 1 of 2

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664 63 Gascoyne Development Commission Financial Statements and Key Performance Indicators for the year ended 30 June 2009

Audit Opinion In my opinion, (i) the financial statements are based on proper accounts and present fairly the financial position of the Gascoyne Development Commission at 30 June 2009 and its financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Treasurer’s Instructions; (ii) the controls exercised by the Commission provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and (iii) the key performance indicators of the Commission are relevant and appropriate to help users assess the Commission’s performance and fairly represent the indicated performance for the year ended 30 June 2009.

COLIN MURPHY AUDITOR GENERAL 17 September 2009

64 4.7 Compliance with relevant law

Enabling Legislation The Gascoyne Development Commission is established under the Regional Development Commissions Act 1993. The Commission does not administer legislation.

Legislation Impacting on Commission Activities In the performance of its functions the Commission complies with relevant written laws including: see Figure 5.

Compliance and Governance In the ﬁ nancial administration of the Commission, we have complied with the requirements of the Financial Management Act 2006 and every other relevant law, and exercised controls which provide reasonable assurance that the receipt and expenditure of moneys, the acquisition and disposal of public property and incurring of liabilities have been in accordance with legislative provisions.

At the date of signing, we are not aware of any circumstances which would render the particulars provided in this statement misleading or inaccurate.

In the administration of the Gascoyne Development Commission, we have complied with the Public Sector Standards, the Western Australian Public Service Sector Code of Ethics and our own Code of Conduct. We received one unsubstantiated, and subsequently resolved, application for breach of recruitment standards.

Figure 5. Relevant laws

Financial Management Act 2006 Salaries and Allowances Act 1975 Public Sector Management Act 1994 Industrial Relations Act 1979 Industrial Relations Act 1979 Public Disclosure Act 2003 Workers Compensation and Assistance Act 1981 State Supply Commission Act 1991 Equal Opportunity Act 1984 Freedom of Information Act 1992 Government Employees SuperannuationAct 1987 Public and Bank Holidays Act 1972 Disability Services Act 1993 State Government Electoral Act Minimum Conditions of Employment Act 1993 Government Employees Housing Act 1964 Public Service General Agreement 2002 Public Service Award 1992 Library Board of Western Australia Act 1951 State Records Act 2000 Occupational Safety and Health Act 1984 Contaminated Sites Act 2003 Government Financial Responsibility Act 2000 Auditor General Act 2006 65 We have put in place procedures designed to ensure such compliance and conducted appropriate internal assessment to satisfy ourselves of our compliance. Signiﬁ cant action taken to monitor and ensure compliance included: • Information about Standards & Codes is included on our intranet and in induction materials. • Our Standards and Codes are a ﬁ xed agenda item for all staff meetings.

Disability Services In accordance with the Disability Services Act (1993), the Commission has a Disability Access and Inclusion Plan. The Commission is equipped to ensure that people with disabilities have the same opportunities of access to events, premises, information, quality of service, consultations and the ability to make complaints as is afforded all other people.

Record Keeping The Commission has an approved Record Keeping Plan which is reviewed periodically and in which staff are inducted and trained. The records team within the Commission reviews the efﬁ ciency and effectiveness of its record keeping program to ensure that key record systems objectives and record keeping practices are being met, and to implement improvements as identiﬁ ed.

Occupational Safety and Health The Commission is committed to vigilance concerning occupational safety, health and injury management. The issue is a permanent agenda item at our regular staff meetings. The GDC complies with the legislation and to date has not had any reportable incidents nor lost time.

Public Interest Disclosure The Commission educates on corruption and misconduct through its induction process and training regarding codes of ethics and conduct. Staff are trained in Public Interest Disclosure and this topic is a ﬁ xed agenda item at staff meetings.

Staff Development The Commission has a commitment to the development of its employees. Our strategies are to build a highly skilled, professional and fair workforce with the ability to adapt to changing business technology and the environment.

Contracts with Senior Offi cers At the date of reporting, other than normal contracts of employment of service, no Senior Offi cers, or fi rms of which Senior Offi cers are members, or entities in which Senior Offi cers have substantial interests, had any interests in existing or proposed contracts with the Department and Senior Offi cers.

66 4.8 Publications produced during the ﬁ nancial year

During the 2008/09 ﬁ nancial year the Commission produced and released individually or jointly in partnership, the following major publications and documents:

• Annual Report for the Year Ended 30 June 2008 • Gascoyne Works, a regular publication of the Commission’s activities • Waste Data Report; Domestic Waste Stream Audit and Landﬁ ll Assessment Gascoyne December 2008 • Strategic Waste Management Plan June 2009 • Feasibility Study into Waste Management at Gascoyne Region Landﬁ lls June 2009 • Biodegradable Alternatives and Recycling Opportunities for Agricultural Mulch Film June 2009

Compliance In compliance with Section 175ZE of the Electoral Act 1907, the Commission reports the amounts spent for the following classes of expenditure in the ﬁ nancial year.

(a) Advertising agencies $0

(b) Market research organisations $0

(d) Direct mail organisations $0

(e) Media advertising organisations $16,826 Adcorp $2,134 Marketforce $407 Northern Guardian $14,285

At the date of signing we are not aware of any circumstances that would render the particulars provided in this statement misleading or inaccurate.

Veronica Fleay Stephen Yule Chairman Chief Executive Ofﬁ cer 67 OFFICE LOCATIONS

Street Address: Carnarvon Gascoyne Development Commission 15 Stuart Street CARNARVON WA 6701

Exmouth Gascoyne Development Commission 31 Maidstone Cresent EXMOUTH 6707

Postal Address: Carnarvon Gascoyne Development Commission PO Box 781 CARNARVON WA 6701

Exmouth Gascoyne Development Commission PO Box 266 EXMOUTH 6707

Telephone: Carnarvon (08) 9941 7000 Exmouth (08) 9949 2090 Free Call: 1800 061 173

Facsimile: Carnarvon (08) 9941 2576 Exmouth (08) 99491618

Email: Carnarvon [email protected] Exmouth [email protected]

Website: http://www.gdc.wa.gov.au

68 Exmouth

Carnarvon Gascoyne Junction Denham