2011 Annual Report Mt Baw Baw Alpine Resort Management Board Address to The Minister January 2012 The Honourable Ryan Smith, MP Minister for Environment and Climate Change Level 7, 8 Nicholson St EAST MELBOURNE VIC 3002 Dear Minister Smith MT BAW BAW ALPINE RESORT MANAGEMENT BOARD – ANNUAL REPORT We have much pleasure in submitting to you for presentation to Parliament, the Annual Report of the Mt Baw Baw Alpine Resort Management Board, covering the period 1 November 2010 to 31 October 2011. The Annual Report has been prepared in accordance with the Financial Management Act 1994 and the Alpine Resorts (Management) Act 1997. On behalf of the Board, we extend our appreciation for your support and also the support and cooperation of the Department of Sustainability and Environment throughout the year. Yours sincerely,

Ralph Booth Leona Turra CHAIRPERSON CHIEF EXECUTIVE OFFICER BOARD OF MANAGEMENT

ALPINE RESORTS 2020 STRATEGY MT BAW BAW BOARD ‘Four Season, vibrant, sustainable resorts’ The Mt Baw Baw Alpine Resort Management Board (Mt The Alpine Resort 2020 Strategy, released in June 2004 Baw Baw Board) is responsible for the development and follows on from the earlier 2020 discussion paper and management of the Mt Baw Baw Alpine Resort, situated at the Alpine Resorts Reform Package, and articulates the an altitude of approximately 1500 metres and bound on all Government’s commitment to supporting environmentally sides by the Baw Baw National Park. sustainable development in the Alpine Resorts. The Mt Baw Baw Board assumed management of the The 2020 Alpine Strategy guides the long term planning Mt Baw Baw Alpine Resorts from the former Alpine and management of Victoria’s six Alpine Resorts, Resorts Commission on 1 May 1998 and is accountable recognised as unique assets facilitating access to a scarce for the development, promotion, management and resource – the Australian alpine environment. use of the Resort on a sustainable basis. It provides a diverse range of services and performs its functions in an Mt Baw Baw contributed actively to the development of environmentally sound way. the 2020 Strategy and, in 2011, has significantly worked towards addressing the statement of strategic direction The Board operates under the Alpine Resorts through the Draft Strategic Management Plan. The Board (Management) Act 1997. The Act was amended in 2004. has utilised the elements of the 2020 Strategy, those The Act sets out the objectives for the management of being: Victoria’s alpine Resorts and aligns with the Victorian Governments Alpine Resorts 2020 Strategy and the — Climate Change Alpine Resorts reform package of 2003. Resort use is to — Development of the Resorts be for Alpine recreation and tourism, in all seasons of the — Environmental Management year, and accessible to persons from varied cultural and — Resort Use and Visitation economic groups. The management of the Resort is to be — Vibrant Resorts undertaken in a manner which is respectful of the alpine — Stewardship of Public Land environment having regard to economic, environmental and cultural sustainability. Mt Baw Baw will continue to identify and implement future opportunities that will further facilitate this strategic direction. © State of Victoria, Mt Baw Baw Alpine Resort Management Board 2011. This publication is copyright. No part may be reproduced by any process except in accordance within the provisions of the Copyright Act 1968. MT BAW BAW ALPINE RESORT MANAGEMENT BOARD

CONTACT INFORMATION Mt Baw Baw Alpine Resort Management Board PO Box 117, Rawson VIC 3825 Phone: 03 5165 1136 Facsimile: 03 5165 1125 Email: [email protected] Web: www.mountbawbaw.com.au Map Reference: Melways Map 528 C5 ABN: 30 402 472 781

Families and Fun Nature at its best 1 This Report, prepared by the Mt Baw Baw Alpine Resort Management Board (the Board), covers the period 1 November 2010 to 31 October 2011, in accordance with the relevant provisions of the Financial Management Act 1994 and the Alpine Resorts (Management) Act 1997. The standard design and layout for Annual Reports, as standard FRD 30A, has been adhered to in this Report. Contents Page Address to the Minister ...... Inside Front Cover Mt Baw Baw Alpine Resort Management Board contact information ...... 1 Overview Chairperson’s Report ...... 4 2011 Highlights and Statistics ...... 6 Financial Review of Operations and Financial Conditions ...... 7 Chief Executive Officer’s Report ...... 8 Corporate Governance The Mt Baw Baw Alpine Resort Management Board ...... 11 Mission / Vision / Values ...... 11 Board Functions ...... 12 Sustainable Alpine Resorts – A Framework For Discussion ...... 13 Organisational Structure ...... 14 Board Appointments ...... 15 Board Meeting Attendance Register ...... 15 Audit, Risk Management and Compliance Committee ...... 15 Board Member Profiles ...... 15 Workforce and Organisational Development ...... 16 Freedom of Information ...... 18 Reporting Requirements under the Financial Management Act 1994 ...... 19 Community Group(s) Accountability ...... 20 Reporting Requirements Under The Whistleblowers Protection Act 2001 ...... 22 Report of Disclosures ...... 22 Fair Trading Act 1999 ...... 22 Information Privacy ...... 22 Research and Development ...... 22 Building Act 1993 ...... 23 Statutory Reporting ...... 23 Mt Baw Baw Alpine Resort Management Board Objectives and KPIs ...... 24 KPI Economic Scorecard ...... 25

2 MT Baw Baw - All Year For All People Contents: continued Page Resort Report 1. Climate Change ...... 26 2. Use and Visitation ...... 28 3. Development ...... 32 4. Vibrant Economy ...... 35 5. Environmental Management ...... 36 Environmental KPI Scorecard ...... 38 6. Stewardship ...... 39 7. Operations ...... 41 8. Tourism ...... 54 9. Hospitality ...... 54 10. Marketing ...... 57 11. Strategic Awareness and Engagement ...... 60 12. A Caring Community ...... 60 Finance Table of Contents ...... 63 Declaration by Accountable Officers ...... 64 Comprehensive Operating Statement ...... 65 Balance Sheet ...... 66 Statement of Changes in Equity ...... 67 Cash Flow Statement ...... 68 Notes to the Financial Statements ...... 69-83 Auditor General’s Report ...... 84-85 Compliance Index ...... Inside Back Cover Tables Index Table A: Five Year Financial Summary ...... 7 Table B: Board Meeting Attendance Register ...... 15 Table C: Report of Disclosure to 31 October 2010 ...... 22 Table D: Overview Ten Year Operations Statistics ...... 27 Table E: Resort Visitation ...... 29 Table F: White Season Visitation Trends ...... 29 Table G: Visitor Days ...... 29 Table H: Snowfall vs Visitor Days ...... 29 Table I: Green Season Visitation Trends ...... 30 Table J: Yield ...... 35 Table K: Visitor Days and Income ...... 35 Table L: Mt Baw Baw Skier Days ...... 42 Table M: Injuries By Percentage 2011...... 43 Table N: Incidents By Month(i) and Incidents Percentage Comparision in 2011 (ii) ...... 44 Table O: Operational Ski Patrol Statistics 2011...... 44 Table P: Snow Sports School Trends (i) and (ii) ...... 47 Table Q: Snow Sports Lessons: By Discipline (i) and Alpine Group Lessons (ii) ...... 48 Table R: 2011 Pricing Resort Entry ...... 53 Table S: 2011 Lift Pricing ...... 53 Table T: Accommodation Income by Year ...... 55 Table U: Retail Income Year Comparison...... 56

3 2011 Overview CHAIRPERSON’S REPORT 2010– 2011 The growth in Visitor numbers in the non-winter period is now at the point where they will soon exceed snow-based visitors. 2011 was another year of challenges and a salutary reminder of Capitalising on this turning point and transforming the resort possible future snow seasons as we reach a turning point in the to an all season destination will require close collaboration with transformation of the Resort to an ‘all season’ destination. Government and stakeholders to be successful. Following an extensive consultation process. our Strategic Visitors seem to be discovering the natural beauty of the Mt Management Plan for the next 5 years was gazetted in Baw Baw landscape when there is no snow on the ground. September 2011, providing a sound basis for our future direction and confronting the challenges ahead. Our Chief Executive Officer, Ms Leona Turra announced her retirement due to health reasons after many years of dedication An early promising start to the 2011 snow season was quickly to Mt Baw Baw. The journey has been testing but I think the followed by the warmest August on record and an early closure public value of Mt Baw Baw is emerging and being understood. to the snow season. This warm August and early closure demonstrated how delicately poised our financial situation is, in I would like to welcome Jacqueline McLeod as our new Board that even after receiving an Appropriation which was sufficient member. to carry us through to the following season in a normal year, we On behalf of the Board, I wish to express our thanks to the will need to seek additional funding as well as tighten our belts management, staff, local and Government stakeholders for further, this coming year. your loyalty, commitment and the many hours of time, that you Even with this early closure, we successfully launched the Snow have devoted to helping the Resort plan and transform to an all and Penguins package in international markets, which was very season destination. It is truly appreciated. well received by families in these international markets. This demonstrates the potential commercially based partnerships that we can foster across Government.

Ralph Booth CHAIRPERSON

Leadership and Staff: 2011 4 Recreation and Leisure 5 — An additional one Point of Sale (now 10 Points of Sale) were 2011 Highlights and Statistics connected to RTP, the Resort’s integrated data base which The following highlights and statistics summarise the offers better customer information; an integrated customer 2010/2011 season. account; and better cash transaction and inventory tracking White Season Visitor Days: 52,347 (67,068 last year). systems Green Season Visitation: 50,611 (46992 in 2009/10). (Note — The Resort’s Website was updated; real time Resort camera that previously the five year visitation had peaked at 34,824 in coverage continued (Mountain Watch Partnership) and 2007/08). virtual tours of the Resort’s ski area continued. Max Snow Cover: 45 cm (115 cm last year). Risk Management: Total Snowfall for season: 89 cm (196 cm last year). — The eleventh year of geotechnical remedial works were Ski Lift Operating Days: 51 including limited days of Resort implemented which address high and medium risk access operation and snow making areas (76 full Resort days last year). road sites with associated village drainage works being completed. In addition, the Board conducted ongoing Skier Days: 22,978 (37,609 last year) a decrease of 39% on monitoring of past remedial works and areas of possible 2010 figure. future problems, should conditions change Snow Sports Lessons: 2,762 this year versus 2,758 last year — The Board completed a range of occupational health and (1,842 ‘first timers’ this year versus 2303 ‘first timers’ last year), safety actions and a third party (GeoTech Specialist) which shows delivery of over 80% of lessons going to first time identified several Duty of Care remedial works- these have learners. been researched and funds applied for Ski Trails Operated: 10 of 30 hectares. — The Board developed a new Risk Management website Major Events: database — Australian Downhill Mountain Bike Series – March 2011 — The Board successfully delivered its Potable Water Annual Report to the Victorian Department of Human Services — Victorian Mt Baw Baw Downhill Mountain Bike – March 2011 — The Board successfully developed a Fire Risk Management — Baw Baw Classic – Cycling Event – April 2011 Plan which has now been integrated with the Local, — Forum Battle of Baw Baw and Christmas in July – July 2011 Regional and Statewide Fire Risk Management Plans. — Chicks with Stix – August 2011 Media and Publicity: — Baw Baw Belles – August 2011 — Gained $3.2m media value for $380k budget Snow Making: — Star FM on-mountain broadcast in June and July — Operated 12 guns (covering 1/3 of downhill areas). — Mt Baw Baw participated in ‘Snow Australia’ Strategic Direction: — Forum/Burton visits (2) — The Resort’s Green and White Season Tourism and — Destination Gippsland nominated Mt Baw Baw as marketing strategies were reviewed and updated Gippsland’s winter ‘lead product’, for the third year — Big Air Bag (BAB) was open in Green Season (first All Year — The Great Walhalla Alpine Trail (international product) was BAB in the Southern Hemisphere) further promoted at Australian Tourism Exchange — Terrain Parks were upgraded and expanded with great new — Bridget Duclos visited our Resort for a Famil (amongst features others) — Learn To Ride Program increased dramatically — Snow dumped at Phillip Island for a cross promotion with — Commercial relationship with Burton Snowboards continued Phillip Island Nature Parks — The Resort’s Guest Services Division attracted additional — Snow dumped at Swinburne University for demonstration in business in all areas: Transport (Baw Baw Betty, Bob and the centre square Bruce); the Lodge Cleaning and Opening Service; the Linen — Melbourne Tourism Exchange presented by Destination Service; and the Accommodation Booking Service Melbourne — A sponsorship partnership continued with the Cactus Black Development and Infrastructure: Group — The Resort’s Accommodation Booking Service supported — A sponsorship partnership continued with RPS Club and infrastructure utilisation — The Resort’s Corporate Plan was developed — The Cactus Black Terrain Park was reviewed and refreshed — Kirstie Marshall continued her relationship with ‘Kirstie’s — A Feasibility Study was conducted relating to Mountain Kids’ Biking at Mt Baw Baw — We conducted our fourth annual Retailer Day (on and off the — Resort’s Transport Service substantially increased service mountain) delivery — All Year Tube Park operational and proving to be very popular — The Resort developed a new walk (‘Boulders Trail’) —Dry Slope toboggan run to extend all year products — The Resort Entry Ticket box has been beautified. Corporate: Accreditation: — Resort visitors continued to gain benefits from the full — MBBARMB successfully proved validity and as a result its integration of visitor services, ski lifts, ski patrol, snow accreditation under the Australian Tourism Accreditation sports, food and beverage services, transport services and Program (ATAP) was endorsed. retail services

6 Financial Review of Operations and Financial Conditions TABLE A: Five Year Financial Summary Revenue 2011 2010 2009 2008 2007 Revenue from Operations 2,741,911 3,577,503 2,597,274 3,427,466 3,288,266 Revenue from Government 5,391,500 2,874,000 2,339,000 1,102,000 1,148,182 Non-Operational Revenue 28,991 16,078 12,863 28,790 22,806 Total Revenue 8,162,402 6,467,581 4,949,137 4,558,256 4,459,254 Operational Expenses 7,036,837 6,585,478 5,626,749 4,793,840 4,332,643 Net Result Profit/(Loss) 1,125,565 (117,897) (677,612) (235,584) 126,611 Net cash flows from operations 1,125,565 467,430 306,213 96,472 433,370 Total Assets 21,623,716 14,669,313 14,964,056 16,638,605 16,815,368 Total Liabilities 1,135,957 932,096 1,213,798 787,525 1,013,005 Major Changes and/or Significant Changes in Financial Position during the Year Factors Affecting Performance The Resort had to call on Government assistance earlier than In the financial year ending the 31 October 2011, the Board’s anticipated, due to the early closure of the Resort. operating result, compared to previous years, was Detailed financial information about the performance of the significantly affected by: Board is contained in the Financial Statements section of — revenue from operations decreased due to a low snow this report (See pages 63 to 83). ‘white’ season Subsequent Events — there was an increased need for support payments to fund The following issues also affected performance: increased operating expenses (see below) — the season arrived early June with reasonable falls in July, — the total combined revenue from both operations and and very low snowfall in August and September Government was more than previous years — the snow disappeared in early August but some day guests — operating expenses increased due to the maintenance of did continue to visit; accommodation bookings were equipment honoured and many stayed during August — the Board’s cash position during the 2010/2011 financial — the Resort closed the lifts on August 21 and closed the year was supported by government funding Season on August 28 — increased operational costs were due to regulatory — the length of season was short, with most visitation at requirements and the need to address several risk factors. weekends The Board’s debtor position is considered to be generally — operational expenses were within budget satisfactory and the Board does not see any issues in — the operational result was below budget predictions, but relation to recovery of these receivables. there was still an operational loss — the relatively early start and inconsistent seasonal conditions were supported by limited snow making — planned improvement in customer yield for the snow business units was not achieved. The Board, as part of its governance responsibilities, engaged an internal auditor to carry out a priority based program. The auditor completed two audits, in accordance with this program.

Baw Baw Classic

Winter Wonderland 7 Chief Executive Officer’s Report Business and Financial Performance The financial performance of the business was not as good as YEAR IN REVIEW hoped due to both the effect of low snow/reduced use of lifts The 2011 year was a year of mixed blessings for the and the fact that as long as there were significant numbers management team. The year began on a ‘high’ with the positive of overnight visitors at the Resort, the Resort was bound result from the Green Season. The White Season was early to deliver services such as Food and Beverage, Retail and and short with good visitation but unfortunately, a low financial Accommodation Support Services. An important learning return. was that we have to have a more commercial approach to Resort Season Opening and Closing dates. The ongoing It is well understood that Mt Baw Baw Alpine Resort must find implementation of the Resort Technology Partners (RTP) a long term solution for financial sustainability, especially given database has certainly improved our understanding of product the benefits it provides to the whole Gippsland region. demand and point of sale accountability. In addition, serious As a result, there is an increased awareness that the ongoing consideration has been given to contingency arrangements for provision of support payments by Government to maintain emergencies such as bushfires, to ensure business continuity, the organisation’s viability cannot continue and the economic with these arrangements to be implemented in the coming sustainability of the Resort is connected to its capacity to year. Once again it was very evident that the high demand for attract private investment and tourism. The Board and Staff higher quality accommodation remains unsatisfied, and this continue to gain high recognition for performance in terms must be considered by the Resort in terms of further Village of social and environmental outcomes but recognise that development. the financial performance of the organisation may discount these achievements. The report below provides a selection of Resort Marketing and Tourism business highlights achieved during the 2010/2011 year. This year again there was recognition by the Regional Tourism Board (Destination Gippsland) that Mt Baw Baw is the leading Green Season Operational Performance winter tourism destination for Gippsland. As a result, funds were The Resort maintained our upward trend of increasing Green invested by Mt Baw Baw Alpine Resort Management Board, Season Visitation. While the yield from the visitation was low, it Gippsland West RTA and Destination Gippsland to promote is rising, and we gained further insight that we have to develop a regional tourism focus on Mt Baw Baw in the winter. We products which both attract a higher yield customer at a feasible leveraged on this commitment and gained significant interest cost with constrained resources. We recognise the need for high from Melbournians who visited the Resort in droves. quality Green Season products. Mt Baw Baw continues to identify that its core markets are Snow Season Operational Performance families and new, young alpine enthusiasts who seek ‘value for While the White Season started early, it was within a ‘low snow’ money’ snow experiences, ranging from snow play, through to year classification. To compound the situation, the warmer than learning to ski/ride and ultimately reaching intermediate level. normal temperatures reduced our capacity to make snow. Of particular note, the ongoing development of our Terrain Parks Visitation during the early snow season was good considering and Special Features – such as the new Tube Run, Big Air Bag, the low snow and visitation increased with the good snowfalls Wall Rides and our Mobile Staircase, resulted in significant in July. However the season designation was ‘poor’ as for much media interest. Mt Baw Baw is now widely recognised as one of of the season, there were limited number of Ski Lifts running the best Boarder Parks in Australia. and as a result, fewer people on those Ski Lifts. The season Resort driven initiatives in 2011 were formulated within the finished early in August. What was noticed, was that even when Marketing Strategy. This focused on the local Gippsland market, there was limited/no snow, people still came to the Resort and the Melbourne market and, for the first time, International stayed, because they were determined to get their ‘getaway visitors. The Resort was rewarded by increased growth from within an alpine experience’. It was also very evident that snow Melbourne metropolitan and International visitors. play visitation did not diminish in terms of low snow effect – if A strong relationship was also maintained with the Board of anything, it increased and snow play was the dominant activity. Alpine Resort Tourism (BART) and Snow Australia resulting in A highlight this year was the partnership with Phillip Island good metropolitan and regional promotional campaigns. Nature Parks from which 600 people gained a ‘Snow and In relation to regional tourism, the Resort maintained effective Penguins’ experience. That product will again be offered in relationships with West Gippsland Gourmet Country LTA, 2012. Walhalla and Mountain Rivers LTA, Destination Gippsland and Use of the South Face Road increased yet again and has the regional tourism body (West Gippsland RTA). Of particular supported the touring route called the West Gippsland note was our own Local Tourism Association, (Baw Baw Alpine Hinterland Drive which links together regional tourist icons LTA) which resulted in improved tourism awareness for our such as Walhalla and the Noojee/Neerim South Food & Wine stakeholders and the region. As anticipated, this new tourism corridor. It is agreed by many of our regional stakeholders that structure resulted in improved tourism visitation for our it is essential for the road to be sealed. When this occurs, there stakeholders. will be an even more dramatic increase in visitation and this will place further pressure on our carparks and community facilities. This road is critical for building all year tourism visitation at Mt Baw Baw Alpine Resort and further enhancing the returns to the region. 8 Strategic Direction and Resort Development Risk Management The Mt Baw Baw ARMB Draft Strategic Management Plan Resort Management processes have sought to identify and 2005-2011 gave directions on how to develop the Way Forward minimise risk and provide a safer environment for visitors and manage the expected impacts of Climate Change over and employees at Mt Baw Baw Alpine Resort. The Board has the next five years. The three foci of the Plan were Financial, directed significant resources towards safety management and Environmental and Social sustainability themes relating to duty of care over the past year. This has included: Sustainability of the Victorian Alps. These will be reflected in — ongoing water quality testing program for potable water terms of the Board’s commitment to all season Resort use; supply to meet the new water framework, as well as improved Resort access; revitalisation of Resort Real Estate successful completion of our third year of Water Risk development and the implementation of reliable and cost Management planning process efficient power given that they are the key areas of essential — safety audits under the Essential Services Act 1958 development within this Plan. — maintenance of an Emergency Management Plan (especially In early 2010, the Resort received from Monash University, Fire Planning) the identification of visitor market demographics and their — membership and contribution to Snow Safe Incorporated desired products to drive further visitation to Mt Baw Baw for all — maintenance of a Risk Management Database seasons. These findings were also relevant for the longer term strategic planning for the Resort. — allocation of Risk as a portfolio to the newly appointed position of Group Manager – Corporate Services. In 2011, the 2005-11 Strategic Management Plan was reviewed In relation to the Geotechnical Stability Program, all identified and it was found to be mostly achieved with only a few high/medium hazard sites, bar one, have been satisfactorily minimum outstanding actions. The Board of Management then remediated. No new sites were identified in 2011 and the two went through a rigorous and consultative process to develop outstanding sites will be addressed in 2012/13. The Board’s a new Strategic Management Plan. That Plan has now been geotechnical consultant has implemented a monitoring program endorsed by the Minister for Environment and Climate Change to both maintain satisfactory and safe conditions at existing and formally Gazetted. sites and identify any additional sites that may require remedial works in future years. Insurance cover availability and increasing costs are big issues facing adventure tourism and alpine industry operators. Significantly increased resources are being expended to improve staff and customer safety and to meet increasing public and insurance industry requirements. Resort Management is working closely with its insurers to ensure suitable risk management practices are in place and premiums are kept as low as possible.

Administration Building THE FUTURE Customer Satisfaction Environmental Management We recognise that the key to continued growth in the Resort The Resort remains committed to embracing the key stems from providing real and perceived value for our management approaches of bio-diversity in line with ‘Victoria’s customers. This in turn will manifest itself in repeat visitation. Bio-diversity – Management Approaches’ (Crown [State An outstanding level of service is only possible when our staff of Victoria] 1997) and to providing sound environmental believe in what they are doing, in order to do it well. management for the Resort. The Resort’s Environmental Management Plan (completed in early 2008) was further Resort Planning implemented this year, primarily establishing base line data, so The Resort will not deviate from its commitment to compliance/ that improvements can be effectively and reliably measured. The adherence to the Planning Scheme, as ongoing certainty is Resort also became a member of the Resource Smart Project fundamental to continuing development interest. and engages regularly with other alpine Resorts in terms of environmental protection and enhancement. The Resort has Property Development and Management engaged with several other relevant authorities to ensure that — The year 2012 may see further developments at Mt Baw Baw there is a unified and collaborative approach to many of the with new investors showing interest in the Resort – a clear issues relating to environmental management. During the year, signal of confidence in Mt Baw Baw’s future as an ‘all year’ the Board provided support to the Department of Sustainability Alpine Resort / Tourism Destination and Environment’s Baw Baw Frog research. Further to this, — The Board is committed to dealing with property and land Resort personnel continue to eradicate and control exotic flora management issues. These are of primary importance and fauna (specifically blackberries, willows and other weeds, in the next few years while we lead into lease renewal foxes and feral cats). considerations for the majority of Clubs on the mountain.

9 Pride of Place Finally, I would like to thank my Management Team and all — Destination choice for an Alpine holiday is as much Resort Staff for their committed and professional efforts before, influenced by the look and feel of the Village – its urban during and after the season in delivering a great 2011 to our form and its fun factor – as it is by the quality of the all year Visitors and Stakeholders. I believe the Resort can look forward recreation opportunities. While Mt Baw Baw has a reputation to 2012 and beyond with optimism and confidence. for being a family mountain, the look and feel of Mt Baw It is with some sadness that I leave the organisation after 17 Baw Village can certainly be improved. years in some form of management role involving the Resort. I — In 2012 the new touring trail called the Boulders Walk will be do so though knowing that the organisation has demonstrated marketed. For Mt Baw Baw, this will include the promotion its capacity to deliver an exciting response to the demands of Mushroom Rock and Mt Baw Baw. Along with the Rock placed upon it and I will continue to contribute to its future. Pool and Spa products, the promotion of bushwalking and mountain cycling have transitioned Mt Baw Baw Alpine Resort into a tourism destination which offers its visitors Signature a sense of wellbeing and pampering experience within the Village Hub. It was built on existing infrastructure and services, to deliver an alpine experience with village, community and environmental connectivity. Leona J. Turra Human Resources — The Board and I recognise that our staff are one of our most Chief Executive Officer important assets. In 2011/12 we will sign off on a new Enterprise Bargaining Agreement for all staff CEO’s Profile — Currawong and Echo Lodges are now used to house some of our staff Leona Turra has formal qualifications at Masters level in both — Snowgum Lodge was made available for Senior Staff Social Work and Business Administration. Leona successfully accommodation in the White Season and public undertook Authorised Officer Training in 2009. Her professional accommodation in the Green Season memberships are as a member of the Australian Institute of — Multiple training and development opportunities were Management, the Institute of Public Administration Australia, delivered to staff the Australian Human Resource Institute and as a Member of — The backpacker market of well qualified internationals is the Australian Institute of Company Directors. She is also a proving to be great source of recruitment of reliable and seasonal employees Justice of the Peace. Leona has been recruited to her past and — Highly qualified individuals were attracted to fill vacancies in current positions, as an organisational change agent, to design, our core team implement and refine organisational and departmental policies — We have however lost some senior/experienced staff. and directions. She has been employed over the past 25 years Acknowledgements in local government, health, education and alpine sectors. Leona has an alpine industry background as a former member I would like to thank the following for their support during the 2010/11 year, those being: of the Mt Baw Baw Alpine Village Committee (1995-1998), a — Ralph Booth (Chair) for his support and dedication member of the Victorian Alpine Resorts Co-ordinating Council — Board members for their encouragement, knowledge and (1998-2005), Chair of Mt Baw Baw Alpine Resort Management advice Board (2001-2005) and became CEO of Mt Baw Baw after a — Members of the Department of Sustainability and public recruitment process in August 2005. Leona’s alpine Environment (Public Land Division) for their knowledge and activities include a background in downhill and cross-country support provided throughout the year skiing; instructing/guiding disabled skiers and has taken up — The Tourism Sector for their acceptance of the role of Mt snowboarding since 1994. Leona has been CEO of Mt Baw Baw Baw Baw to the fold. Alpine Resort for nearly seven years. In particular I wish to recognise Stewart Galloway, Group Manager – Outdoor Operations, who resigned after 23 years of service to the organisation.

10 Corporate Governance — Achieve organisational and financial sustainability over The Mt Baw Baw Alpine Resort time Management Board The Board aims to achieve long-term financial independence The Board was established under the Alpine Resorts for the Resort. To facilitate this, the Board proposes a (Management) Act 1997. The responsible Ministers for package of enabling infrastructure projects. The proposed the 2010/2011 reporting period were Gavin Jennings MP, projects are: Minister for Environment and Climate Change until 1 · Installation of underground power to ensure a reliable and December 2010 and the Hon Ryan Smith MP, Minister for cost effective power supply; Environment and Climate Change from 2 December 2010. · Sealing of the South Face Road to provide safe and The guiding direction and principles adopted by the Board and efficient road access; its staff in managing the Resort are summarised in the following · Upgrading of car parking and internal service roads for Vision, Strategic Directions and Values statements as detailed in improved usability; the 2010/2011 Corporate Plan. The Resort will continue to ensure best practice in organisational management within our financial capabilities. The ARMB will support and respond to Key Performance The Resort’s Indicators for economic management in alpine resorts. Statement of — Achieve sustainable year-round market growth Mt Baw Baw’s lower altitude makes it vulnerable to the Corporate Intent effects of climate change and its potential impact on snow tourism. The ARMB is mitigating this risk by building year- Vision round visitation to the Resort. The Mission of MBBARMB The ARMB’s goal is to develop the Resort’s market and supporting infrastructure to a financially viable level, while To provide a year round Alpine Resort Services within a preserving the qualities which give Mt Baw Baw its special sustainable environmental, economic and social framework. character. The Resort will strengthen its role in building a regional tourism industry which is cohesive and effective. Our slogans: — Build a broader understanding of accessibility ƒ ‘Discover the Natural Alternative’, Mt Baw Baw Alpine Resort positions itself as ‘the ƒ ‘Little Mountain Big Value’ and accessible and affordable mountain’. The ARMB will build ƒ Uniquely Alpine - All Year’ capacity through increasing awareness of the meaning are consistent with our Mission. and implications of ‘accessibility’. It will work to better understand the needs of visitors from diverse backgrounds Vision of MBBARMB and with varied abilities and identify improvements to The Mt Baw Baw Alpine Resort will offer an all year, family facilities and services where practicable. friendly, environmentally sensitive, alpine experience — Strengthen communication with the Community and the Traditional Owners of the Land. Strategic Directions Mt Baw Baw has particularly strong connections to Statements of strategic direction are stated under each of key its surrounding community and the Gippsland region. seven themes or goals, which need to be addressed in the Implementing methods to continue to build communication future. These themes have their basis in the Alpine Resorts pathways with the community will make these connections more robust. 2020 Strategy. They are set out in the Resort’s first Strategic Management Plan (SMP) 2011-16, and are summarised Mt Baw Baw alpine Resort wishes to engage with the below ( in no particular order), together with each of the future Traditional Owners of the land in a meaningful and respectful opportunities in Section 7.5 of Alpine 2020 Strategy: way in terms of strategic and management planning, decision making and natural resource management. — Ensure integrated and transparent planning and leasing — Protect and celebrate the sub-Alpine environment Mt Baw Baw Alpine Resort is located within a rich processes sub-alpine ecosystem, which supports many rare and Over the past 10 years the ARMB’s role in planning has been endangered species and sensitive ecological communities. limited to its own initiatives, however significant private The well-being of this biodiversity is intrinsic to that of the sector investment in accommodation is forecast if the Mt Resort, and protecting it from harm must be a priority in Baw Baw Transformation Project receives funding. everything the ARMB undertakes. The low level of existing In this scenario, the ARMB will need to be cognisant of infrastructure means the Resort has opportunities to become a model of environmental sustainability, by planning probity concerns in relation to planning and leasing activities sensitive future development. The ARMB will preserve and moving forward. enhance the natural environment – and tell its story - so that — Ensure sound governance, clear roles and responsibilities it can be shared with and valued by visitors in a respectful The ARMBs are required to perform a wide range of and sustainable way. statutory functions, including investment facilitation and regulatory and land management activities; this can lead to internal role conflicts and tensions where ARMBs are required to simultaneously pursue commercial and ‘public 11 good’ goals. This is particularly so at Mt Baw Baw where the ARMB is the Resort’s primary commercial operator. Board Functions Pursuant to an outcome on the Mt Baw Baw Transformation The functions of the Board as set out under Section 38 as Project business case, the ARMB will work within the referred to in the 2004 amendments to the Alpine Resorts current governance arrangements. (Management) Act 1997 are: a) to plan for the development, promotion, management and The Operational Values of the Board and Resort Management use of the Resort in accordance with the object of this Act; The Board will: (aa) to –  Be accessible, available and will listen to all parties (i) develop and promote; or  Be honest, fair and transparent in its dealings (ii) facilitate the development or the promotion by others of the use of the Resort in accordance with  Give due consideration to the interests of all stakeholders the object of this Act;  Value all resort stakeholders and partners (ab) to manage the alpine Resort in accordance with the  Provide decisive leadership and governance object of this Act;  Ensure the effective and efficient delivery of quality (ac) to contribute to the development of the Alpine Resorts  Ensure that social and ethical responsibilities are met. Strategic Plan and other strategic planning for Alpine Resorts as a whole; OBJECTIVES OF THE BOARD (2010/11) (ad) to undertake research into alpine Resort issues; Key Objectives (ae) to contribute to and support the operation of the Alpine Resorts Coordinating Council; The Board has developed Objectives and they (along with (af) to prepare and implement a Strategic Management performance measures) became the Key Performance Plan for each such Resort; Indicators (See page 24). (ag) to expend or apply revenue of the Board in accordance The Management Board of Mt Baw Baw Alpine Resort has with a direction of the Minister under section 36(1A); strongly established the Resort brand as being ‘affordable, safe, family friendly and accessible’. b) to act as a committee of management of any Crown land deemed to be permanently reserved under the Crown Land Additionally, the Board has adopted language whereby: (Reserves) Act 1978 in the Resort; — Mt Baw Baw has two seasons (a ‘white season’ and a ‘green c) to contribute, together with Tourism Victoria, established season’) under the Tourism Victoria Act 1992, and the Council, to — there are three types of products (white season products, the overall promotion of alpine Resorts; green season products and all season products). d) to develop a tourism and marketing strategy for and to promote the Resort and to collect and expend voluntary Risk Management Attestation contributions from commercial undertakings in the Resort To ensure that the risks are being managed in a consistent for this purpose; manner, public sector entities are required to attest in annual e) to provide services in the nature of – reports that: (i) garbage disposal; — they have in place risk management processes consistent (ii) water supply; with the on compliance with the Australian/New Zealand (iii) gas; Risk Management Standard (or equivalent designated (iv) drainage; standard) (v) sewerage; — these processes are effective in controlling the risk to a (vi) electricity; satisfactory level; and (vii) roads; — a responsible body or audit committee verifies that view. The (viii) fire protection; Resort Management Board has a Risk Management Policy (ix) snowmaking; and Strategy in place that is reviewed and updated annually. (x) transport; for the Resort and to charge contributions for the provisions Mt Baw Baw Alpine Resort of those services; Management Board f) to collect fees prescribed by the regulations for the Resort; I, Ralph Booth certify that the Mt Baw Baw Alpine Resort g) to attract investment for the improvement of the Resort; and Management Board has risk management processes in place h) to carry out any other function conferred on the Board by consistent with the Australian/New Zealand Risk Management this or any other Act. Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control LAND RELEASES – the Board has identified that sites 4, 5 and risk exposures. The Board’s Audit and Risk Management 17 are ready for development. Committee verifies this assurance and that the risk profile of CAPITAL IMPROVEMENT FUND – The Board has been unable the Mt Baw Baw Alpine Resort Management Board has been to make any significant contribution to this Fund. critically reviewed within the last 12 months. SNOW DROUGHT FUND – The Board has been unable to make any significant contribution to this Fund.

Ralph Booth CHAIR MT BAW BAW ALPINE RESORT MANAGEMENT BOARD 12 Local Tourism Associations and one Regional Tourism Sustainable Alpine Resorts – Association. A Framework for Discussion 8. Ensuring sound governance and clear roles and In 2009, a Discussion Paper was developed which discussed responsibilities eight goals within a framework aimed at achieving the vision The Mt Baw Baw ARMB reviews its role and function of the Alpine Resorts 2020 Strategy. Below is the Mt Baw Baw annually. The Board constantly reviews its responsibilities ARMB’s response to that Framework: as established by the Alpine Resorts (Management) Act 1. Protecting our unique alpine environment 1997 and its relevant regulations. It adheres to the Code Mt Baw Baw ARMB has an Environmental Plan which of conduct as established by the Australian Institute of identifies protected flora and fauna; ensures native Company Directors. vegetation planning; gives guidance to balanced The Board regularly reviews particular delegations, development, year round use and environmental issues and procurement policies and conflict of interest management ensures compliance with Environmental KPIs. protocols. 2. Driving financial efficiency and sustained contribution to The Board seeks guidance from DSE for policy, regional economies research, strategic planning and review and monitoring Mt Baw Baw ARMB is engaged with government functions relating to social, economic and environmental departments, examining options for financial viability; responsibilities. reviewing the financial management framework including understanding capital and recurrent funding needs. The Resort continually reviews cost effectiveness of service delivery. The ARMB undertakes capital planning, risk management and ensures good procurement planning. 3. Building resilience to climate change The ARMB continues to monitor Bureau of Meteorology information and is participating in the review of the CSIRO report on climate change and its impact on Alpine Resorts. The Resort has undertaken research to identify products to cost and develop for all season activities. The Resort has developed a Fire Risk Management Plan and clarified responsibilities for fire and emergency management, with CFA and DSE to achieve integrated fire management plans. 4. Providing access to the alpine environment for all Howling Husky Tours (new in 2011) Victorians Mt Baw Baw ARMB has developed a Social Access and Diversity Plan. The Plan is within a Victorian ARMB consistent approach to Social Access & Diversity Planning (including KPI actions, measurement and targeting). 5. Increasing community satisfaction and participation in the Resorts Mt Baw Baw ARMB has a consultation framework in place increasing participation in decision-making, trust and confidence in relation to development and implementation of Resort Policies and Processes. 6. Ensuring integrated and transparent planning and leasing processes Mt Baw Baw ARMB has developed a comprehensive strategic plan for the Resort (Stakeholders, Government, ARCC) in 2011. The Resort has an excellent record of assessing development proposals within the Resort by and with the Department of Community Planning and Development. The Resort has been able to successfully establish a Lease which includes the need for Hot Beds. The Resort looks forward to the investigation of a common and equitable rental model and a model for determining annual service charges. 7. Strengthening the market position of the Resorts Mt Baw Baw ARMB is actively engaged with Tourism Victoria and Destination Gippsland, especially in relation to the Nature Based Tourism Strategy and the National Landscapes program. The Resort is also party to three Mountain Ash Trees form The Vegetation Style of the Lower Reaches Of The Resort 13 Kutt Kadri Public Group Officer Eliza Lee Manager Relations Marketing & Events & Emily Outdoor Robinson Education and Environment Jack McCowan Department of Sustainability Audit Snow Snow Cross Snow- Sports Sports Alpine Committee Country boarding Manager Snow Play Guy Cantrel Terrain Park Terrain Admin Services Ops Brett Hotel Group Alpine Skiosk Village Food & Central Manager Beverage Marshman Leona Turra Lift Ops Field Road Group Victorian Minister for Snow- Maint. Stewart making Board of Management Vehicle Outdoor Chief Executive Officer Galloway Manager Services Services Ski Patrol Grooming Scott Goss Operations Management Terrain Parks Terrain Environmental Environment and Climate Change Ops Retail Group Janine dation Indoor Hunter House- keeping Manager Ticketing Transport Accommo- Kaye Group Payroll Finance Debtors Hawkins Manager Creditors Financial Reporting Alpine Resorts Co-ordinating Council tal Fire Risk Water Strategy Departmen- Management Management Organisational Structure 2011 ICT tions Group Radios / Services Manager Manager Corporate Technology Telephones Telephones Information Ian Maxfield Warrick Mann Warrick Communica- HR OH&S Training Industrial Relations Recruitment

14 Board Appointments Audit, Risk Management & Members of the Board are appointed by the Minister for Environment. Compliance Committee Appointments to the Board during the reporting period The Audit Committee comprised: November 1, 2010 to October 31, 2011 were: Ms Vicky Papachristos: (Chair of Committee) Mr Ralph Booth: Chairperson from April 29, 2010 to October Mr Wally Tabensky: (Independent Member) 31, 2011 Mr Randall Cohen: (Independant Member) Ms Vicky Papachristos: Deputy Chairperson from April 29, Ms Jaqueline McLeod: (Independant Member) 2010 to October 31, 2011 Mr Ralph Booth: Board Chairman (Invitee) Ms Maria Pilipasidis: Deputy Chairman from April 29, 2010 Mrs Leona Turra: CEO (Invitee) (Resigned February 25, 2011) Ms Kaye Hawkins: Group Manager – Finance (Invitee) Mr Wally Tabensky: Board Member from April 29, 2010 to Mr Ian Maxfield: Group Manager – Corporate Services (Invitee) October 31, 2011 Remuneration Committee Mr Randall Cohen: Board Member from April 29, 2010 to Mr Ralph Booth: Board Chairman October 31, 2011 Ms Jacqueline McLeod: Board Member from October 28, 2011 Mr Wally Tabensky: Board Member to October 31, 2011 TABLE B: Board Meeting Attendance Register Mtg 127 Mtg 128 Mtg 129 Mtg 130 Mtg 131 Mtg 132 Mtg 133 Mtg 134 Number of 16/12/10 25/02/11 27/03/11 29/04/11 24/06/11 29/07/11 24/08/11 26/10/11 meetings attended Ralph Booth 333333338/8 Vicky Papachristos 333333338/8 Wally Tabensky 333333338/8 Randall Cohen 333333338/8 Maria Pilipasidis 3 Resigned N/A N/A N/A N/A N/A N/A 1/1 Jacqui McLeod N/A N/A N/A N/A N/A N/A N/A 3 1/1 (Tick = Attended) (N/A = Not Applicable as they are not part of the Board at that stage) (A = Apology)

strategy specialising in retail and consumer products. Vicky is Board Member Profiles a keen skier and road cyclist and holds a Chemical Engineering Ralph Booth: Chairman degree as well as an MBA from the AGSM. Vicky has been on the Mt Baw Baw Alpine Resort Management Board for one year. Ralph is the Chairperson of Lake Mountain Alpine Resort and a member of the Alpine Resorts Coordinating Council. He is also Wally Tabensky a member of the Alpine Resorts 2020 Strategy Reference Panel Wally holds professional engineering qualifications and has and the Phillip Island Nature Park Board where he also serves vast experience in engineering and local government. He has as Chair of their Audit and Risk Committee. Ralph has founded been employed with various local governments, commencing several corporate advisory businesses with a primary focus with the City of Springvale in 1968 and concluding his working on public policy and administration. He worked for 13 years in career upon retiring from his position as Director, Infrastructure the Department of Treasury and Finance as a senior executive and Environment, at the Baw Baw Shire in 2008. Wally has in a variety of roles in financial, economic, and budgetary studied overseas, and has been a member of the Mt Baw Baw reform as well as Whole of Government financial reporting Alpine Resort Management Board (10 years) and previous and asset management. Now an occasional cyclist and lapsed Management Committee at Mt Baw Baw since 1989. cross country skier Ralph maintains a keen research interest in tourism, cultural landscapes, environmental change and public Maria Pilipasidis policy. Maria holds a Bachelor of Laws and Bachelor of Commerce Ms Vicky Papachristos: Deputy Chairman from the University of Melbourne and is a member of the Victorian Bar practicing in Administrative Law, insurance and Vicky has spent over 20 years as a management and marketing civil litigation, Occupational Health and Safety, Common Law, executive with major corporations in Australia and the USA. Employment/IR and all Torts including Statutory Compensation. Vicky’s work has spanned Petrochemicals, Banking, Sport, IT Prior to that Maria practiced as a solicitor for 10 years and was & Retailing holding senior roles in Shell, Westpac, Visa, Myer, a partner at Kenyons Lawyers located in Melbourne. Maria has the Sydney Olympics and Paralympics as well as an IT start been a Member on the Mt Baw Baw Alpine Resort Management up in the US. Vicky is also a Director on the Board of EFTPOS Board for 9 years. She is Chair of the Board’s Audit Committee. Payments Australia Limited. Vicky’s expertise is in strategy and marketing responsible for the design, development and launch Mr Randall Cohen of several major customer facing business initiatives. Vicky also Randall has 20 years professional experience in commercial has extensive expertise in setting up new and enhancing existing and legal projects in both public and private sectors. He is a business operations. In 2006 Vicky formed Currant Marketing – current non-executive Director of CenITex, the State’s recently an independent consultancy in the fields of loyalty and customer established centralised information and communications 15 provider. In 1999, Randall formed a niche consulting business development, environmental impact assessment and regulatory primarily focused on providing services to a broad array of and advisory services in state and local government and the Victorian Government Departments assisting in delivery of private sector in Victoria and New South Wales. Jacqui’s major projects with emphasis on infrastructure, resources, experience includes extensive stakeholder engagement and energy, litigation and risk management and dispute resolution. facilitation and a track record of influencing at a range of While the State has been the principal client base for his levels, through both formal statutory processes of community consulting work over the past 10 years, Randall has also led consultation and informal engagement at high levels of a number of projects during this period for private companies government and industry. As a manager, Jacqui has held a in Victoria’s energy industry. Prior to forming his consulting number of senior level positions over the last 15 years, involving business, Randall worked as General Counsel and Regulatory leadership of staff and multi-disciplinary teams, business Manager for GPU GASNet Pty Ltd, as Corporate Solicitor for management, business improvement, organisational change Alcoa of Australia Ltd, and as a solicitor with major law firm, and business development. Jacqui also has broad experience Mallesons Stephen Jacques. Randall commenced on the Mt as a project manager, developing project plans and costings, Baw Baw Alpine Resort Management Board on April 29th 2010. assigning team roles, reviewing outputs and overseeing delivery to time and budget. Jacqui is a long time downhill skier and Ms Jacqueline McLeod has skied most of the resorts in Victoria and NSW since being Jacqui is an environmental scientist and manager with over a teenager, including having spent a season working as a ticket 25 years’ experience in environmental policy and strategy seller at Perisher-Smiggins. Workforce and Occupational Health & Safety Committee The OH&S Committee has been actively engaged in: Organisational Development — writing policy procedures Mt Baw Baw Alpine Resort has ensured that all Public sector — identifying hazards employment principles as stated in the Code of Conduct for — conducting training sessions on Incident/Injury Reporting Victorian Public Sector Employees have been addressed and Manual Handling. ensuring that: (a) employment decisions are based on merit; and Equal Employment Opportunity (b) public sector employees are treated fairly and reasonably; The Board is an equal opportunity employer and all appointments and and promotions are merit based. The Staff Development and (c) equal employment opportunity is provided; and human Training program continued this year, again identifying areas for rights as set out in the Charter of Human Rights and development and enhancement of skill levels. Responsibilities are upheld; and All Staff are appointed through a process which responds to (d) public sector employees have a reasonable avenue of merit and equity. redress against unfair or unreasonable treatment. Industrial Relations Occupational Health and Safety There were no industrial disputes during the reporting period. OH&S is a significant component of our Risk Management The Board is still involved in funding negotiations for the new Policy and Mt Baw Baw is totally committed to establishing a EBA. The EBA agreements have been operating successfully healthy and safe work environment for our staff, contractors and for 10 years. As part of the induction process prior to winter, all visitors by: new staff receive a full briefing on the Agreement. — encouraging individuals to practice work safety by providing information, instruction and training Workforce Data — providing safe plant and systems of work Management and Staff — ensuring compliance with legislative requirements and The day to day running of the organisation is undertaken by the current industry standards. Chief Executive Officer and a small year round workforce, which Mt Baw Baw ARMB has the following OH&S KPIs: is supplemented by seasonal staff and volunteer ski patrollers. a) No more than the total of one day per EFT staff will be lost All staff are employed under a Mt Baw Baw Resort Management due to Industrial accidents per annum; Certified Agreement. b) No staff will have accidents, as the result of lack of training Key Staffing Events of 2010-2011 relating to the activity involved in any accident; — Appointment of a Guest Services Officer (replacement c) all staff will be offered Influenza vaccinations; position) d) no accidents will occur as the result of lack of provision of — Appointment of Group Manager – Corporate Services (new suitable resources. position) In response to those KPIs: — Appointment of 115 seasonal positions a) there were only ten days lost for a total of 52 EFT; — Appointment of a Marketing Officer (replacement position) b) No staff had an accident, as the result of lack of training — Appointment of one Finance Section position (replacement relating to the activity involved in that accident; position) c) all staff were offered Influenza vaccinations and — Appointment of a Mechanical Maintenance Officer (new d) no accident occurred as the result of lack of provision of position). suitable resources. 16 Training and Development Staff Mt Baw Baw Alpine Resort Management Board encourages PERMANENT STAFF the training and development of our staff through work related training and external study. MANAGEMENT TEAM — Leona Turra (Chief Executive Officer); Kaye Hawkins (Group Staff Induction Program Manager - Finance); Stewart Galloway (Group Manager The staff induction program is a compulsory program that is - Outdoor Operations); Janine Hunter (Group Manager attended by all new employees and provides an overall induction - Indoor Operations); Brett Marshman (Group Manager – into employment with Mt Baw Baw Alpine Resort Management Food & Beverage Services); Ian Maxfield (Group Manager Board. A full review of this induction program took place over – Corporate Services); Warrick Mann (Manager - ICT); the 2010-2011 summer with a new program implemented in the Eliza Lee (Marketing/PR); Scott Goss (Executive Support 2011 white season. Officer); Michael Gerrard (Senior Finance Officer); Jack McCowan (Outdoor Education and Events); Andie McMaster Training (Marketing/PR)(Resigned May 2011). All staff were required to attend Customer Service Training — Support Consultants: Kadri Kutt (The Creative Bunch); and training specifically to assist people with disabilities. A full George Foundas (Xpresso). review was undertaken of staff training and safety systems prior to the 2011 season. The review identified some minor FIELD AND MAINTENANCE SERVICES improvements, which were implemented prior to the winter — Desmond Gillam (Field Crew); Neil Vaughan (Field intake and delivered by various means prior and during the Crew); Dennis Bormann (Mechanical Maintenance); operating period. Many staff participated in training. Staff Warren Lougheed (Lift Operations); Mark Turra feedback from Team Meetings were documented to ensure (Maintenance Supervisor); Russell Paliew (Maintenance/ there was a direct correlation between training presentations Activities); Brenton O’Reilly (Mechanical Maintenance). and ‘on ground’ operations. This feedback in conjunction with ADMINISTRATION & GUEST SERVICES third party audits will be the basis of the next review prior to the — Jo-Ann Rogers (CEO PA); Bianca Rutter (Administration); 2012 ski season and will support resort managements policy Monique Webb (Administration); Jennifer Wade of continual improvement in all resort operations. Improved (Accommodation); Ewa Parkin and Mellissa Greenwood training and monitoring programs were also implemented. (Finance Support); Ashley Brennan (ICT Support); Rebecca These improvements ensured that all staff were fully conversant Maki (Administration); Heather McKay (Administration). with OH&S and other responsibilities within their areas of FOOD & BEVERAGES (MT BAW BAW) operations. Programs such as: — Adam Fackler; Michelle Fox (FOH Supervisor); John Sammut — Working at Heights (Apprentice Chef); Daniel Renehan (Hospitality Trainee); — De-Icing Procedures Trevor Popple (Bar Staff). — Vertical Tower Rescue Risk Management — Teamwork and Assertion SEASONAL STAFF — Licensee Responsibilities ADMINISTRATION — RTP (Resort Transactions Database) — Linda Mills; Carla Brightwell, Sarah Keane (Marketing); Kevin — RMS (Accommodation Services Database) Kendall. — OH&S TICKETING — Responsible Service of Alcohol — Katie Dixon; Allison Aguilera. — Safe Food Handling GUEST SERVICES & RETAIL were provided to staff. — Peta Dewar; Simone Edney; Kathryn Stewart; Hayden Galloway; Sarah Pederson; Jessica Smith; Dorette Van Workforce Data Breugel. Workforce Data: Staffing Profile during 2010/11 BURTON LEARN TO RIDE Male Female Total — Ryan Clark. Senior Management 4 4 8 MAINTENANCE/OVER SNOW Other Full Time Staff 7 6 13 — Brandon Pederson; James Higgins; Josh Walters; Scott Winter Season Staff 54 26 80 Whittle; Matthew Fielden. Total 65 36 101 BUS DRIVER Workforce Data: Staffing Profile during 2009/10 — Gary Edney; Guy Field; Michael Stoltz. Male Female Total HOUSEKEEPING Senior Management 5 4 9 — Greg Frendo (Housekeeping Supervisor); Pei Hsuan (Dale) Lee; Pei Fei (Whitey) Lu; Elka Wilkens; Jennifer Nicol; Emma Other Full Time Staff 12 3 15 Browne. Winter Season Staff 60 35 95 Total 77 42 119 FOOD AND BEVERAGES (MT BAW BAW) — Martyn Williams (Chef); Lee-Anne McDonald; David Ellis; Chris Briggs; Luke Kube (Chef); Chris Mooney (Hospitality 17 trainee), Kevin Bannon; Julie Bonner; Tony DaBurger; Cyrus Reporting Requirements for Part II of the Els; Kyle Gaffney; Henry Gilbert; David Hughes; Emma Freedom of Information Act 1982 Jefferies; Jessica Johnston; Trevor Meagher; Kyle Thomas; The organisational arrangements and functional responsibilities Kimberley Watt; Pascale Oates; Andrew Yurkevich; Alex of the Board are shown further on this page. The Board’s Siqueira; Dominic Durrant; Casey Marriott; Robert Pryde; decision-making powers are drawn from the Alpine Resorts Darcy Taylor. (Management) Act 1997. GATE ENTRY The Board held and maintained the following categories of — Matt Merriel; Warren Beattie. documents: SNOW REPORTING — correspondence files — Leona Turra; Scott Goss; Jack McGowan; Eliza Lee. — Minutes of the various meetings held by the Mt Baw Baw Alpine Resort Management Board SKI PATROL — technical reports and statistical information on Mt Baw Baw — Scott Goss; Justin Lee; Raoul Picot; Mark Daniels; Michael Alpine Resort management matters Street. — leasehold documents related to Mt Baw Baw Alpine Resort SNOW SPORTS TEAM sites — Brock Holcombe; Mike Holland; Chris Bennett; Guy Cantrel; — plans, charts and other data covering Mt Baw Baw Alpine Anthony Coles; Lisa Cordwell; Lindsay Freson; David Jaffit; Resort operations and planning. Greta Junker; Mia Lambson; Emily Lane; Sin Jae (Boom) Reports and general information related to the Board are Lee; Michael McKernan; Sam Mononen;, Michael Phelan; available for inspection at the office of the Mt Baw Baw Alpine Josh Tomlinson; Aaron Whiteman; Johanna Whiteman; Resort Management Board. The Board’s website is a source Joel Wood; Fabian Wolschendorf; Emily Robinson; of considerable information. The fee for any FOI application Patrick Jones; Neal Thorson; Jacqueline Cantrel (Froglets is $24.40. Other enquiries may be sent to The Chief Executive Ambassador). Officer, as the Authorised Officer of Mt Baw Baw Alpine Resort, SNOWGROOMING PO Box 117, Rawson, 3825, stating as clearly as possible what — Mark Turra; Brett Whitehouse. the request is. Once the Annual Report is tabled in Parliament, it will then be placed on the Board’s Website. TERRAIN PARK — Tim Garden; Daniel Hoggett; Alister Murrell; Dave Ellis. Relevant Information LIFT OPERATIONS The following information is retained by the Resort’s — Josh Dixon Darren Hack; Liam Veldman; Ben Wilson; Accountable Officer (Leona Turra) and is available to the relevant William Upston; Tim Upston; Jasmin Brook; Mitchell Hatten; Minister, Members of Parliament and the public on request: Stuart Huddle; Lyndall Hughes; Jordan Keeley; Sarah FRD 22 Statement of Availability of other information: Ogden;, David Pearson; Ruxton Pitt; Thomas Robinson; — Statement declaring pecuniary interests completed by all Ella Stevenson; Michael Street; Rebecca Sanders; Matthew relevant officers and Board members Cook; Craig Carrick. — Details of shares held by a senior officer as nominee or held SNOW MAKING beneficially in a statutory authority or subsidiary — Neil Vaughan; Darren Hack; Craig Carrick. — Details of publications produced and where available ROADS AND SAFETY — Details of changes in prices, fees, charges, rates and levies — Joe Gillam; Phil Campbell; Matthew Cook; Wendy Gillam; — Details of any major external reviews Travis Grigarius; Steven Johnstone; Vincent O’Flynn. — Details of major research and development activities SECURITY — Details of overseas visits — Elke Wilkens; Wesley Jasper. — Details of major promotional, public relations and marketing activities Staff Recruitment — Details of assessments and measures undertaken to improve Staff recruitment was undertaken in April/May with a good occupational health and safety of employees number of applications for the 2011 season. Interviews and — General statement on industrial relations and details of time team building games were once again part of the selection lost through industrial accidents and disputes process and a number of fantastic staff were engaged for the — Major committees sponsored purposes of committees and winter months. Staff levels remained in line with snowfalls and achievements. visitation throughout the operating period and provided a top — Details of Industrial accidents and disputes quality service for guests. A high level of staff returns from the previous year was experienced which provided consistency in — Major committees sponsored purposes of committees and information and assisted with training and mentorship. achievements. Freedom of Information The Freedom of Information Act 1982 allows the public a right of access to documents held by the Board. Freedom of Information requests are made in writing describing the documents requested to the Resort’s Principal Officer, Leona Turra. In the reporting period (ending 31 October 2011), no requests for information were received, therefore none responded to. 18 Kids having ‘a ball’ Info Services Major External Reviews Mt Baw Baw ARMB also participated in several Alpine Resort Reviews (Mt Baw Baw and AASA Customer Satisfaction Studies). Mt Baw Baw Alpine Resort Management Board reviewed and developed its 5 year Strategic Management Plan – which was presented to the Minister in July, 2011 and it was gazetted in October 2011. Deloitte conducted a review of Management practices, but the Report was not released at the time of this Report going to print. Overseas Visits Undertaken One overseas study visit occurred during the reporting period by the Chief Executive Officer, who visited a number of Resorts in USA as part of her professional development and to observe Reporting Requirements under industry best practice. the Financial Management Act Details of Consultancies over $100,000 – Nil 1994 Details of Consultancies under $100,000 Declaration of Pecuniary Interests TThe Board engaged ten Consultants for a total cost of Declarations of Pecuniary Interests are recorded both in Audit $230,420 during the reporting period. None of the consultants processes and in the minutes of the Board’s monthly meetings. engaged had annual fees exceeding $100,000. The declarations illustrate details relating to Members of the Office based environmental impacts Board and Executive Staff. The Resort is moving to a paperless filing system; all Details of Shares held in photocopiers are set to double side print; our photocopiers have been updated to reduced energy requirements; waste Statutory Authority or Subsidiary paper is recycled; the IT Network is moving to reduced energy There is no record of any shares of this nature being held by consumption; where possible we use recycled paper; we use Board members or staff members. fans/natural air movement instead of air conditioners; lighting Major Committees has been changed over to minimal energy requirements; the The following Committees were formed by the Board: roof has been insulated; and the new heating is an Hydronic — Audit, Risk Management and Compliance Committee recycling system. — People and Governance Committee Purchasing — Community and Stakeholder Committee. The Board, as an independent manager of and investor in the Resort’s assets, purchases services and goods, in line with National Competition Policy the Victorian Government’s Purchasing Guidelines and The Board adheres to the principles of the National Competition Victorian Industry Participation Policy disclosures. In doing Policy (NCP) to ensure that any business competition with this, the Board applies the following principles: private entities takes place in an environment where the Board — Value for Money has no competitive advantages. — Open and Fair competition Major Contracts — Accountability The Board undertook several funded projects which required — Full Cost Recovery. contracts. These contracts / expenditure have been reviewed within Auditor General processes. Mt Baw Baw has not entered Major Public Relations and Promotional into any contracts that exceed $10M. Activities Publications Produced/Reviewed During the reporting period the Board entered into an Agreement with Tourism Victoria to implement a promotional 1. Mt Baw Baw Alpine Resort Management Board 2010 Annual program for Victoria’s Alpine Resorts. This program was Report. coordinated through the Board for Alpine Resorts Tourism 2. Mt Baw Baw Alpine Resort Management Board 2010-2011 (BART). The Board contributed $10,000 to this program. During Corporate Plan. the reporting period, the Board implemented and participated in 3. Mt Baw Baw Alpine Resort Management Board Penultimate a number of marketing initiatives including: Draft SMP 2007-2010. — participation in Tourism Victoria’s Alpine Resorts 4. Mt Baw Baw Alpine Resort Management Board Strategic promotional campaigns Management Plan 2011-2016. — attendance at Board for Alpine Resort Tourism (BART) Ski 5. Mt Baw Baw Alpine Resort Draft Environmental Management Marketing Committee meetings Plan 2007-2010. — attendance at Tourism/Trade Shows 6. Mt Baw Baw Alpine Resort Marketing Plan 2011. — promotional activities with regional tourism groups There have been no other reports produced during the reporting — membership of West Gippsland Regional Tourism period of this report. Association 19 — membership of Destination Gippsland’s Marketing Committee Community Group(s) — membership of Walhalla & Mountain Rivers and Gippsland Accountability Gourmet Local Tourism Associations — foundation membership of Baw Baw Alpine Local Tourism Social Access and Association Equity Accountability — television, print and radio advertising in Gippsland and Melbourne People who are Culturally Diverse — sponsorship and support of events held at Mt Baw Baw In line with the Government’s Multicultural Policy, the Board Alpine Resort has introduced signage systems which use graphic symbols — distribution of information/newsletters to stakeholders to advise Resort users of important features about Resort use. This has been particularly appropriate in alerting non-English — participation in regional and state snow reporting programs speaking visitors to the existence of safety hazards and to any — operation of a web site (www.mountbawbaw.com.au) with limitations on the use of particular areas within the Resort. We links to a number of Resort, Tourism and Ski Industry have conducted staff training specifically so that we can deliver related pages. culturally appropriate services to All Victorians. Many Familiarisation and Media Tours were conducted, the most notable including: Gender Equality — BYO Kids website – Leah Squire The Board is committed to providing equal opportunity — Holidays with Kids Mag – Andrew Mevissen advancement for all employees and has adopted a recruitment structure based on a merit based selection process. The Board — Bharat Times – Ramyani Dutta is also committed and will continue to facilitate (where possible) — Leader newspaper – Liam McAlee work and family responsibilities for all employees. — The Age – Jane Reddy — Herald Sun – Loretta Hall People with Disabilities — Brigitte Duclos – Mix 101 The Resort engaged with Vision Australia to develop a package — Latrobe Valley Express – Annabelle Beale of services and subsidies for people who are blind or have significant sight loss, for all year visitation to the Resort. Resort — Mix 101 – Joe Bovalino staff attended the Disabled Wintersport Australia training — Tourism Vic – Baw Baw/Phillip Island Tours program, with a view to assisting people with skeletal disabilities — Star FM breakfast crew- two outside broadcasts so that they also can enjoy alpine snow sports. One of the — Baw Baw’din, Aussie Snowboarder and 7 peaks filming buildings put up for Tender was a unit specifically designed for — WIN TV visits throughout the season people with disabilities and plans for the development of the — Weekly interviews on 3GG radio Alpine Hotel include access for people who are in wheelchairs.

Training by Vision Australia

Access to the Alps

20 Youth & Economically Challenged People In line with the Government’s vision for young people, the Board employs trainees. Mt Baw Baw ARMB also provides regular environmental and safety student talks throughout the winter season. In line with our brand positioning in 2011, ‘Adventure on Any Budget’, the Resort’s pricing policy is particularly aimed at families and younger people, who traditionally have limited disposable income. The challenge for the Resort is to remain commercially sustainable, while still responding to this social need. Prices will increase in 2011, but we will still ensure that they are good value and offer the everyday family/person the opportunity to access the Alps. The Resort has a range of accommodation (and prices) which provides the opportunity for all Victorians to have an overnight experience in the snow.

Alpine Village Life The Resort has completed year four of upgrading staff accommodation, to attract quality staff who are interested in living at the Resort, all year. There are now nineteen individuals who live permanently at the Resort, which increases the vibrancy of all year operation. In the white Season, there are approximately 95 staff who live on the Resort. The Resort delivers a range of key community services such as: Post, Indigenous People First Aid, Information / Signage and Internet The Mt Baw Baw ARMB is aware of the whole of Government Services, Roads and policy to develop partnerships to achieve Indigenous aspirations Access, Waste and for land, culture, heritage, family and community. This year, Water Management, one specific project to improve the inclusiveness of Indigenous Public Shelters / Toilets. people in Resort activities and programs for this reporting Postal Services period was the engagement of a Gunai Kurnai artist to deliver an exhibition. This was extremely successful. The Resort has also engaged with Indigenous communities to assist in the review of a possible cultural site at Mt Baw Baw in 2011.

The Resort engaged with the traditional owners of the Mt Baw Ski Patrol Baw Plateau (Gunai Kurnai people) throughout all proposed real estate development and planning applications. The CEO is a member of the Australian Ski Areas Association Indigenous Affairs Committee as part of a campaign to encourage visitation to the Alpine areas by people who have an Indigenous Background.

21 The Protected Disclosure Coordinator is responsible for the Reporting Requirements under following: The Whistleblowers Protection Act — receive all disclosures forwarded from the protected 2001 disclosure officers — receive all phone calls, emails and letters from members of The Whistleblowers Protection Act 2001 came into effect on the public or employees seeking to make a disclosure 1 January 2002. The Act is designed to protect people who — impartially assess each disclosure to determine whether it is disclose information about serious wrongdoing within the a public interest disclosure Victorian Public Sector and to provide a framework for the investigation of these matters. — refer all public interest disclosures to the Ombudsman — be responsible for carrying out, or appointing an investigator The protected disclosure coordinator for the Department of to carry out, an investigation referred to the public body by Sustainability and Environment (DSE) acts as an agent for the Ombudsman the Mt Baw Baw Alpine Resort Management Board to receive — be responsible for overseeing and coordinating an disclosures under the Act, and applies DSE procedures investigation where an investigator has been appointed in managing disclosures. Interested people can find DSE procedures on the Internet: — appoint a welfare manager to support the whistleblower and to protect him or her from any reprisals ÆDSE Home > About DSE > Legislation > Whistleblowers — advise the whistleblower of the progress of an investigation The Protected Disclosure Coordinator can be contacted at: into the disclosed matter Jennifer Berensen — establish and manage a confidential filing system Manager Privacy & Ombudsman — collate and publish statistics on disclosures made Department of Sustainability and Environment — take all necessary steps to ensure the identity of the PO Box 500 East Melbourne VIC 3002 whistleblower and the identity of the person who is the Ph: (03) 9637 8697 subject of the disclosure are kept confidential. Alternatively, the Ombudsman can be contacted at: The Ombudsman Victoria| Level 9, 459 Collins Street Melbourne VIC 3000 Tel: (03) 9613 6222 Toll Free: 1800 806 314 TABLE C: Report of Disclosure to 31 October 2011 No of Types of Disclosures Disclosures Disclosures made to Mt Baw Baw ARMB during 2010-2011 Nil - Disclosures referred by Mt Baw Baw ARMB to the Ombudsman for determination as to whether they are of public interest Nil - Disclosed matters referred to Mt Baw Baw ARMB by the Ombudsman Nil - Disclosed matters referred by Mt Baw Baw ARMB to the Ombudsman for investigation Nil - Investigations of disclosed matters taken over by the Ombudsman from Mt Baw Baw ARMB Nil - Requests made under Section 74 to the Ombudsman to investigate disclosed matters Nil - Disclosed matters that Mt Baw Baw has declined to investigate Nil - Disclosed matters that were substantiated upon investigation and the action taken on completion of the investigation Nil - Recommendations made by the Ombudsmen that relate to Mt Baw Baw ARMB Nil - Fair Trading Act 1999 Information Privacy From 1 June 2004 new regulations under the Fair Trading Act The Information Privacy Act 2000 deals with the manner in 1999 came into effect. which public and private sector organisations may record, use, store and disclose information collected from individuals. The The Fair Trading (Recreational Services) Regulations 2004 Board is committed to upholding the Privacy Principles set out make it possible for suppliers of recreational services to obtain in the legislation. consent from customers to waive their rights under the Act, including their right to take legal action against the supplier if they die or are injured while using the services. Research and Development The Board continued to support the ongoing research into In compliance with the Fair Trading (Recreational Services) the Baw Baw Frog being conducted by the Department of Regulation 2004 Mt Baw Baw Alpine Resort Management Sustainability and Environment. installed warning signs at both ticket gates to alert visitors to the fact that they are being asked to agree to waive their rights under the Fair Trading Act 1999. 22 The Corporate Plan must include: Victorian Industry Participation a. A statement of corporate intent in accordance with Section Policy Act 2003 54 of the Act This Act requires Public Bodies and Departments to report on b. A Business Plan containing the information required by the the implementation of the Victorian Industry Participation Policy Minister (VIPP). c. Estimates of the receipts and expenditure of the Board for Departments and public bodies are required to apply VIPP in the period of the Plan. all tenders over $3 million in metropolitan Melbourne and $1 The Business Plan is also developed on an annual basis to million in regional Victoria. specify the annual objectives of the Board and to measure the performance of the organisation against the objectives identified The Resort has not commenced or completed any contracts within the Corporate Plan. during 2010-11 to which VIPP applied. The Board has identified and has structured its Corporate Plan Mt Baw Baw employed one trainee this year. on a set of core responsibilities. These are: — Operating Environment — Statement of Corporate Intent — Business Plan — Financial Plan. The Corporate Plan for 2010-2013 and the Annual Business Plan were submitted to the Minister in December 2010. Annual Report Section 45 of the Financial Management Act 1994 requires the Board to prepare an Annual Report. The Annual Report must be approved by the Minister each year. The Annual Report must include: a. Reports of operations and financial statements of those departments or public bodies, or both b. A report of operations and financial statements consolidating information provided by those departments or public bodies, or both. The Annual Report 2009/2010 was submitted to the Minister in January 2011. The 2010/2011 Annual Report is to be submitted to the Minister in January 2012.

Licensed Tour Operator Building Act 1993 In addition to risk management matters (detailed in the CEO Report), the Board has engaged JRMA Building Services Pty Ltd to provide municipal building surveyor, general building maintenance and fire safety compliance advice to the Board. This consultancy enables the Board to fulfil its obligations in relation to the Building Act 1993. Statutory Reporting Corporate Plan Section 53 of the Alpine Resorts (Management) Act 1997 requires the Board to prepare an annual Corporate Plan. The Corporate Plan must be approved by the Minister each year. 23 Mt Baw Baw Alpine Resort Management Board Objectives (KPIs) These KPI’s were developed in mid 2011 and endorsed by the Minister in September 2011. They will be reported on in 2012

KPI Key Performance Indicator Measurement of Success Outcomes for 2012 1 Protect and celebrate the sub- a) Manage biodiversity and Environment a) Review Environmental Plan Alpine environment b) Interpret and communicate b) Rollout Interpretation plan c) Minimise impact c) Promote ‘Leave No Trace’ d) Plan Landscape - appropriate development d) Review Master Plan e) Manage Wildfire Risk e) Review Fire Risk Management Plan and Conduct Resort Evacuation Procedure

2 Achieve organisational and a) Pursuit of the Transformation Project a) Lobby and Market Project financial sustainability over time b) Enhanced Information Technology b) Monitor ICT Plan c) Adherence to Public Service Standards c) Continue to Rollout SSA Standards d) Risk Management best practice applied d) TQM approach used for Risk management

e) Assets managed e) Use of MEX /Asset planning f) Improved workplace quality and accessibility f) Corp Services Committee to monitor 3 Achieve sustainable year-round a) Optimised white season a) Use of Dry slope activities, snowmaking & market growth Mown trails b) Continued Promotion of new products and b) Build a sustainable Green Season existing infrastructure

c) Strengthen regional and alpine Tourism c) Continue to engage in Destination Gippsland / Baw Baw Shire and the three LTA’s d) Improve Road Access d) Pursue sealing of the South Face Road and maintenance of the Baw Baw Tourism Road 4 Build a broader understanding of a) Develop Cultural Competency a) Pursue knowledge of the Asian market accessibility b) Evaluate and improve Disability provisions b) Promote and support people of all abilities( eg Sit Ski and Vision) c) Maximise participation c) Engage primary markets

5 Strengthen communication a) Strengthen Communications channels a) Pursue database; email newsletters & with the Community and the review website Traditional Owners of the Land b) Promote Regional Economic contribution b) Presentations / Papers and lobbying c) Increase traditional Owner Involvement and c) Engage with Gunai Kunai Land & Water Engagement Management Board to develop Traditional Owner Settlement Agreement

6 Ensure integrated and a) Manage lease renewals and Fee Setting a) Engage with Leaseholders as soon transparent planning and as they show interest leasing processes b) Improve Planning transparency and b) Conduct consultations and Working groups Initiatives

7 Ensure sound governance,clear a) Clarify Policy and Governance a) Develop Briefing Papers roles and responsibilities b) Enhance Transparency and accountability b) Board Newsletter to go to stakeholders after each meeting.

24 KPI Economic Scorecard KPI Area Performance 2010/11 Year Target 2010/11 Success/Failure E1 Net Cash Flow Net Operating Cash Flow plus Net ($2.7m) budgeted – no ($3,514,000) – without DSE Investing Cash Flow as reported allocation for DSE funding funding in Cash Flow Statement E2 Net Accrual Net Profit before allocation ($2.3m) budgeted – no ($3,880,513) – without DSE Surplus to reserves as reported in allocation for DSE funding funding the Statement of Financial Performance E3 Business Cycle Ratio of Total Financial Assets $329,800 : $90,000 ($1664,108) : $90,000 Sustainability less — Net Accounts payable E1 is primary focus but — Total Accrued Employee partial funding was achieved Entitlements to Snow Drought Reserve Target E4 Asset Cycle Ratio of Total Financial Assets $329,800 : $2,741,288 ($1774,108) : $4,029,078 Sustainability less — Net Accounts payable — E1 is primary focus but Total Accrued Employee partial funding was achieved Entitlements — Snow Drought Fund to Total Accumulated Depreciation of all Assets E5 All Season Report Visitor Numbers — white season Green Season target of Successful — 50,000 — green season 40,000 White Season target of Successful — 52,000 30,000 (10 year average) E6 Average Visitor Ratio of total Revenues to Total Green Season $4.00 per Green Season $4.50 per Spend Visitors (winter and non-winter) Visitor Visitor White Season 36.00 per White Season $32.24 per Visitor Visitor

Ski Patrol To Rescue Early Snow Brought The Crowds 25 Resort Report Mt Baw Baw Alpine Resort Management Board Annual Report responding to The Draft Penultimate Strategic Management Plan (SMP) 2007-2011 The Victorian Alpine Resorts 2020 Strategy was prepared in The document was structured around six statements of response to Government’s identification of a need for a state strategic direction on: wide long-term strategy to maintain the quality of Victorian — Climate change; Alpine Resorts and plan for potential impacts of climate change. — Resort use and visitation; The purpose of the Strategy was to explore ways in which — Development of the Resorts; Victorian Alpine Resorts’ contribution can be grown, countering — Vibrant Resorts; periodic poor snow seasons and stable winter visitation, with the opportunities arising from the high growth in non-winter — Environmental management; and visitation — Stewardship of public land. Mt Baw Baw Alpine Resort Management Board (like other Victorian Resorts) has prepared, consulted and submitted to the Minister a Draft Penultimate Strategic Management Plan (SMP) to respond to the 2020 Strategy. The Minister had requested that Mt Baw Baw ARMB develop a SMP to be submitted by January 2011 for his consideration. Note that next year, the Board will report against its recently approved SMP. Mt Baw Baw Strategic Directions (Goals) Statements of strategic direction were developed under twelve directions or goals, which need to be addressed in the future. 1 Climate Change These themes have their basis in the Alpine Resorts 2020 The Board of Management has a commitment to undertake Strategy. globally accepted tactics, enabling the Resort to plan for Climate Change. These tactics include Mitigation; Adaptation; and Minimisation of Green House emissions (to contribute to Those being: the slowdown of Climate Change). The Board also undertakes 1 Climate change to continue to monitor Climate Change and its effect upon our 2 Use and visitation operations, in terms of reporting the following actions have 3 Development been implemented or undertaken over the past 12 months: 4 Vibrant Economy — we have continued to collect data via a specific data base 5 Environmental Management which is connected to the Bureau of Meteorology. This data 6 Stewardship is also used to enable efficiency of our existing snow making system 7 Operations — our maintained data sets are able to be used for future 8 Tourism assessment of the impact of climate change. 9 Hospitality 10 Marketing Mitigation 11 Political Awareness and Engagement — We have continued to conduct research of marginal 12 Caring Community temperature/resource efficient snowmaking, enabling wise investment These Strategic Directions also respond to the ‘Quadruple — Our planning for expansion of the snow making system Bottom Line’ in terms of: focuses on ensuring that our high use areas (i.e.; downhill — economic viability and sound financial performance runs, toboggan runs, and our snow play areas) are those — social responsiveness identified for future snowmaking projects — environmental sustainability — We continue to refine our snowmaking/grooming systems and implement snow farming (where possible) to ensure — democracy and accountability that we achieve maximum snow depth at economically The following reports then depict the progress that has been optimum sites. made in the past year.

26 2011 Season and depth of 37cm attained during this period. Snowmaking was undertaken for a total of 71.5 hours which Snowmaking Conditions enhanced lift and snow play operations and consolidated the The 2011 ski season was one of early snowfalls and base in the lower altitude and busier sections of the ski area. inconsistency, with lift operations running for a total of 61 Snowmaking hours were once again down on the average days. The first lifts opened for the season on June 11 which with marginal opportunities during June and July and some provided three lifts in operation immediately after opening significant opportunities in August which assisted operations weekend on 33cms of natural snow cover. Lifts operated for a until the lifts closed on 28th of that month. short period from June 11 until June 26 when they closed due to lack of follow up snowfalls. Lifts re-opened on July 7 and ran consistently for 45 days until they closed again on August 20. The peak of lift operations occurred within the period of July 9 until August 4 with all lifts operating and the maximum snow TABLE D Overview Ten Year Operations Statistics Year Total Annual Snowfall Max. Natural Depth Max Depth in Snow Making Hours Ski Lift Operating (cm’s) (cm’s) Snowmaking Areas* Days (cm’s) 2011 89.5 37 45 71.5 61 2010 196 104 113 88.5 89 2009 136 40 45 80 66 2008 192 120 120 110 81 2007 185 115 115 160 91 2006 58 15 30 300 71 2005 174 46 75 136 76 2004 233 84 125 158 103 2003 277 100 120 297 77 2002 111 50 NA 356 66 Average 165 71 87 176 78 10 Year Ave 10 Year Ave 9 Year Ave 10 Year Ave 10 Year Ave

* The resort operated 11 Guns in 2006, 2007, 2008, 2009, 2010 & 2011; 10 in 2004 & 2005; 7 in 2003, 3 in 2002 & 2 in 2000 & 2001

Snowmaking Battle of Baw Baw 2011 27 Adaptation White Season Visitation —Frantic Frog Toboggan Run and Frosti Frog Toboggan Run — The Resort has three Green Season Walks (which cater to supported the rapidly increasing Mt Baw Baw ‘snow play’ various levels of fitness) which have been developed (with market segment. The Board is investigating the potential of ‘points of interest’ numbering and trail guides). an additional Toboggan Run. — An alliance with the Walhalla Star Hotel and the Resort has — The Cactus Black Group sponsored the ongoing construction successfully enabled the development of the Great Walhalla of appropriately designed and constructed Rail Park. This Alpine Trail to attract both domestic and international followed recognition of the need to deliver products which walkers. engage with the younger generation who visit Mt Baw Baw — Executive staff are members of the Gippsland West Regional because of its ‘affordability’ (market positioning). The Terrain Tourism Association as well as Gippsland Gourmet LTA and Park was widely acclaimed and very successful the Walhalla and Mountain Rivers Tourism Association, to — Snow arrived on June 11 ensure robust relationships exist between the Resort and neighbouring tourist destinations. This will position Mt — The Forum Rail Jam was cancelled due to low snow Baw Baw to be regarded as a regional Green Season tourist — A designated staff member was appointed to enable cross destination country grooming (whenever possible) — The Resort developed a Rock Spa Pool and Sauna for all year — The Alpine Hotel was the primary Food & Beverage Outlet use in 2010 and this proved very popular in 2011. mid-week — The Resort utilised a Big Air Bag and Bungy Tramp for all — The volunteer Snow Host Program was successfully run year use and developed a Tube Run in 2011. again this year to support ‘first time visitors’ to Mt Baw Baw — Resort management has researched other summer products — The Resort employed cleaning staff to ensure that public such as Zip Lines, Mountain Biking, Rock Climbing Walls, amenities were regularly cleaned and accommodation could Giant Swing, other All Year adrenalin sports and artificial be relet quickly after use slopes. — Baw Baw Ski Hire made snow shoes available again for . public hiring, in response to public demand for that new product Minimisation of Climate Change — The Toboggan Infrastructure Levy raised $30,943 in its sixth year (a co-operative arrangement between Baw Baw — The Resort has implemented the State wide and National Ski Hire and Resort Management helped to facilitate this ‘Keep Winter Cool Campaign’ which strongly promotes arrangement). Documentation was made available to methods of minimising global warming tobogganists to ensure they understood the rationale for the — Energy use audits were be conducted in 2011 in most ARMB Levy. All mountain toboggan suppliers were also provided buildings, with Energy Efficiency Plans now enabling a with that rationale Resort wide approach to this issue. — Mt Baw Baw ARMB and Vision Australia reviewed and — Alternative forms of power provision are being researched expanded their Agreement whereby Vision Australia and — Water minimisation has been researched the Resort subsidised resources for people who are blind / — Alternative renewable power sources have been investigated vision impaired (and their families) — Snowmaking will continue to be researched and — Packages including Accommodation, Resort Entry and implemented. Lessons were extended — An aggressive marketing campaign (including radio and TV) ensured winter visitation was maximised — Baw Baw Bob, Betty and Bruce (our three shuttle buses) were in operation all season, with growing popularity — On several weekends, the Resort was at maximum capacity level — July was a high visitation timeframe 2 Use and Visitation — ‘Child friendly’ products were developed and proved to be very popular – both on and off snow (e.g. Santa for Visitor numbers were reasonable given what was considered to Christmas in July). These activities have a dual role in both be a below average season with a total of 61 lift operating days entertaining our younger visitors and giving their Mum and and a total of 72 days of snow play and tobogganing on Frosti Dad a ‘break’. Frog Hollow and Frantic Frog Toboggan Runs. This saw a total of 37,097 visitors, which in turn represents a 29% decrease on — The Accommodation Booking Service delivered near visitation when compared to 52,823 visitors for 2010. ‘average year’ accommodation in a ‘low snow season’ — ‘Online access’ (with the capacity to book ‘on line’ Visitor days also reflected a 21% decrease on 2010 with a accommodation) was continued in the 2011 season, total of 52,438 compared to 67,068. All snow activities where however there were problems and this matter has been the undertaken on a ‘below average base’ of natural and machine source of a review post season. made snow cover throughout the operating period. All members of the snowmaking and grooming crews are to be commended for their effort in the provision of a full cover under marginal conditions. 28 TABLE E: TABLE F: Resort Visitation White Season Visitation Trends Year Visitors Visitor Days The Resort’s winter visitation trends are shown below: The Resort had 39,097 individual visitors 2002 33,951 42,527 Mt Baw Baw Number of Visitor Days 2003 39,009 49,447 (2000 - 2011) 2004 47,174 57,811 80,000 70,000

2005 27,040 35,349 60,000 2006 16,557 21,486 50,000 40,000 2007 50,657 68,259 Visitor 30,000 Days 2008 44,616 64,285 20,000 2009 39,075 52,952 10,000 - 2010 52,823 67,068 2011 37,097 52,438 Year 10 year average 38,800 51,162 TABLE G: Visitor Days Alpine Hotel And they stayed with us for 52,438 visitor days Of particular note, our visitors do not stay even if there was a lot of snow — see Table below

Mt Baw Baw Number of Visitors (2000 - 2011)

60,000

50,000

40,000 Visitors

30,000 Visitors 20,000 10 Year Trend 10,000

-

Year

TABLE H: Snowfall vs. Visitor Days DĂdžŝŵƵŵ^ŶŽǁĨĂůůǀƐsŝƐŝƚŽƌĂLJƐďLJDŽŶƚŚ 30,000 100100

25,000

20,000 Snowfall 15,000 1050 (cm's) 10,000 DĂŝŵƵŵ^ŶŽǁĨĂůůŝŶĐŵƐ 5,000 in cms Snowfall Maximum  - 01 Jun-11 Jul-11 Aug-11

sŝƐŝƚŽƌĂLJƐ DŽŶƚŚ 29 Green Season Visitation Green Season Visitation Trends — A number of Events occurred in Green Season 10/11, commencing with New Year’s Eve celebrations and finishing Experiences on offer with the Mother’s Day pampering packages Our new strategic direction has enabled the development of: — The highlight of the Green Season were the Mountain Bike — Soft Adventure (mountain biking, adrenalin activities, events) Events held in March 2011 — Nature Based Experiences (guided walking, eco education, — A Calendar of Events was established and sent to all wildflower appreciation) Mountain Lodges so they could promote those activities to — Wellness Experiences (mountain retreats, fresh mountain air, their members fine foods, family connectivity, Rock Spa Pool, Sauna and — The website and local tourist regional publications advertised Massage) Green Season activities — Cultural experiences (free entertainment, wine appreciation — Picnic hampers were promoted for romance packages and artist displays). — Green season Trail Maps were developed and widely used Each of these experiences firmly represents the Resort as an (resulting in visitor statements of satisfaction and approval). ALL year alpine environment whilst engaging a variety of target These were made available at various points around the markets Resort — Brochure promoting conference/functions options was developed and distributed — Several corporate entities utilised the Conference Centre, and we had a number of special functions (Weddings and High Altitude Training Conferences) — Village Central was open seven days a week in the Green Season. It is considered to be a ‘loss-leader’ situation in this early stage (it offered limited trade mid-week) — The Decking on Village Central proved to be very popular — Picnic points have been identified on all documentation and were widely used — Various artists and photographers willingly cooperated with local cheese makers and wineries in providing presentations (which proved to be popular with the visitors) — The new ‘Boulders Walk’ was licensed in 2011 — Several cultural groups visited in 2010/11 — Visitation numbers remained stable; from 46,992 in Green Season 2009/2010 to 50,611 in Green Season 2010/2011 – Guided and Unguided Walks a solid achievement.

TABLE I: Green Season Visitation Trends

Mt Baw Baw Number of Visitors (Green Season 2001 - 2011)

60,000

50,000

40,000

30,000 Visitors Green Season

Visitors 20,000

10,000

-

Year

30 In The Wild

Our Rock Spa Pool

All Year Visitation — Mt Baw Baw was represented on a number of the regional tourism associations — Amenities were provided in the main village visitor block (seating, heating, power points for urns) — Negotiation commenced with Parks Victoria to ensure greater understanding between Parks Victoria and the Resort to gain common understanding about the Resort’s Mt Baw Baw Is Popular For Weddings direction — Trip Intention Notices (to support walkers) were available from Village Central, Kelly’s Lodge and the Administration Building — A computer terminal for public use was made available at Village Central — Decking to Village Central was utilised, providing all season access for disabled visitors to the Resort — Hotel rooms were popular and enabled the availability of an alternative form of accommodation all year — Information and education pamphlets were made available through Village Central all year — Guided and non-guided walks were established and utilised by Resort visitors all year — The selection criteria relating to the development of new ‘all year products’ was utilised ensuring a good fit with Marriage On High Snow Play is Always Fun the Mt Baw Baw brand, our market segments and tourism emotions. 31 — The Altitude Apartment was utilised by the media enabling 3 Development ‘on mountain presence’ (local radio station, local The development of the Resort including existing infrastructure newspapers, photographers and other dignitaries from and future Real Estate are matters to which the Board gives various organisations) with whom the Resort wishes to great deliberation. To this end, the following activities occurred establish a commercial relationship in the 2009/2010 season: — The Staff Accommodation Maintenance Plan was Village Design implemented. — Environmentally sustainable building plans for sites 4, Access 5, 7 and 18 have been developed by Peter McIntyre and — A new Vehicle Access Office to the Resort is now being Associates (renowned and credible alpine architect) planned - to be placed in Day Car park area — The Board considered the pathway to finalising the — The South Face Road (completed in May 2008) proved to be Comprehensive Development Plan. This was put ‘on hold’ increasingly popular in 2011 due to the matter being reviewed at a state wide level. — Baw Baw Betty and Baw Baw Bob (the Resort’s Shuttle — The Resort has been fully re-surveyed, enabling all sites to Buses) were operational all year and mainly Melbourne be entered on the State Cadastral. This ensures that leases visitors used this service, and we purchased Baw Baw Bruce will be able to be registered and therefore lease holders will — Vic Roads has improved signage on tourist roads to the be able to gain financial institution interest in underwriting Resort investment — Improvements and further development of the Gippsland — The Board continued to implement the Resort’s Urban Fast Rail link have assisted connection with the mountain’s Design framework transport service. Research relating to the possibility of — Mt Baw Baw Alpine Resort Management Board and Baw public transport from V Line Station at Morwell up to Mt Baw Shire have continued to seek support for the sealing of Baw Baw Alpine Resort was conducted. South Face Road — Some Stakeholders upgraded their lodges to ensure that Communications external changes complied with the Resorts urban design — Several newsletters were sent to Lodges in relation to the plan (building fabric and colour scheme) new building requirements (e.g. fire prevention) and about — A new lease (which is both in line with government leasing Event Weekends policy and the Board’s desire to attract investment) — The Board continued to ensure that Lodges were compliant has been developed and implemented. This will enable with Building Commission Regulations relating to Fire Safety leasing of ‘footprints‘ (reduced site fee cost) and enables — Snow reporting occurred every day during the White Season implementation of the ‘Hot Bed policy’ (which encourages as Chain fitting continues to be an issue at the Resort, in investors) relation to customer satisfaction and exposure to legal — Retail Shop (now located in Snowgum) had noticeable liability increased visitor use and satisfaction (however with limited — The Website has become the first point of contact with the improvement in revenue). Resort by the Customers. Over 256,718 direct contacts have been captured through this medium — Incoming telephone lines have been increased from three to Accommodation five lines — The refurbished Hotel and Family Cabin accommodation — Wi Fi connection has been enabled to both the Alpine Hotel options continue to respond to customer demand for a and to Village Central. higher quality of accommodation type availability — Banksia Lodge, Snowgum Lodge and Echo Lodge provide Infrastructure staff housing (freeing up commercial accommodation for — Increased Snow Fencing was implemented public use) — Our small Groomer saved the day due to breakdown of our — Formal discussions have occurred between Management larger (much older) Groomer Machine and the slow arrival and individual Lodges assisting greater understanding of the of our new Bison Prinoth (leased and ‘pre-loved’) Resort’s strategic planning, in relation to accommodation — The RTP database was implemented across all points of sale styles — More security cameras were installed — Management encouraged Lodges to continue to deliver — Ongoing negotiations with several stake holders has lodge style accommodation to meet one of our market occurred in relation to alternative renewable energy brands (affordability) provision — The Linen and Lodge Cleaning service continued in 2011 — The Resort has continued to maintain natural resources (land (with additional linen being paid for in year two), and Lodges and water) alongside Resort expansion and development have increased capacity to offer lodge accommodation to — The Resort has developed Plans of Critical Services (gas the public, given the provision of these services / water / drainage / sewerage / fire services and electrical — Some clubs employed managers to facilitate access use by infrastructure) mountain visitors — We leased several new skidoos but international wharf — Some of the Resort’s Accommodation Booking Service staff arrangements resulted in non-arrival until October. have now been in continuous service, ensuring continuity

for 3 years 32 Alpine Dependency Building Services — The Alpine Cabins have promoted the concept of ‘living in Building Act 1993 harmony with the alpine environment’ The Mt Baw Baw Municipal Building Surveyor (MBS) at Mt — There has been promotion of the Resort’s unique heritage Baw Baw is John Austin. Inspections of lodges were therefore and environment principally undertaken by a CFA officer or by John Austin for — The Resort has highlighted the virtue of an Alpine Urban action. Most clubs are still proactive and able to demonstrate Character within its Real Estate Revitalisation Project compliance relating to the testing of fire safety equipment at the documentation commencement of the ski season. — Discussions with stakeholders have emphasised intimacy and a sense of belonging within an alpine village context. The Building Officer and CFA Officer in commenting on end of season results advised they were good, albeit with minimal Strategic Direction and resources. Building-related risks have been identified and reduced, and Attracting New Investment the building owners and managers are far more aware of A key objective of the Mt Baw Baw Alpine Resort Management their responsibilities and options to achieve compliance with Board during recent years has been both to build on recent maintenance of essential services. investments and to prepare the Resort to attract significant new investment that will see the Resort grow and prosper. Again the year was free of major structural fire incidents and education of owners and safety for occupants was improved. This has been achieved though significant improvements in Resort infrastructure that have been funded from the Victorian In 2010-2011, challenges (relating to wildfires) continued to be Government. The Board is committed to developing a variety present and will need to be addressed in the coming years. of new accommodation, commercial and recreational services The Board developed a comprehensive Wildfire Risk within the Resort. The Board has developed a new concept Management Plan, which integrates with Municipal, Regional in self-contained family accommodation which proved to be and State-wide Plan Risk Management Plans. popular with the public and can be further developed. The 2005/2011 Draft Strategic Management Plan has almost addressed all of the Resort’s early Strategic development issues. A new SMP was developed, accepted by the Minister, and Gazetted in late 2011. Key issues include all year visitation; development of the Resort for tourists; provision of additional car parking; connectivity to an increased power source; and sealing of the South Face Road. The ARMB has also developed a Business Plan for Government consideration.

Accommodation nestled in the Snowgums 33 Public Health Services Management Plan. All development at Mt Baw Baw is subject to Environmental The Baw Baw Shire Council has provided Health Service Management Planning processes. Assessments to the Mt Baw Baw Alpine Resort Management Board. Property Development / Food Premises Management The total number of ARMB registered premises is three. Mt Baw Baw continues to be a popular Resort with several Provisions of the Food Act 1984 and Tobacco Act 1987 were potential investors making enquiries during this past year to the supervised. Staff in several premises were new to the area Property Management section. and the Victorian legislative requirements. Information and assistance was provided to assist with orientation. All staff Leasing have Safe Food Handling and Responsible Service of Alcohol The new Alpine Standard Lease was finalised and approved by Certificates. the Minister for Environment and Climate Change in June 2004. Accommodation Facilities Since its approval Cascade Apartments and Wombat Cabin have had a new lease granted by the Board. These included the ‘Hot There are 19 accommodation facilities currently registered. Bed’ policy. The registered premises are those which cater for members of the public who can be associate members of the group or Lease Registration club which operates the building. Ongoing difficulties were In the past, the Alpine Resorts Co-ordinating Council (ARCC) experienced in carrying out a number of inspections due to initiated a project to investigate registration of leases in Alpine some facilities being closed at the time of each visit. Lodges Resorts. The ARCC Project recognised that it was generally inspected were found to comply with requirements. considered beneficial to have the Alpine Leases Registered for a number of reasons including recognition by financial institutions Statutory Land Use Planning of a secure title. The Minister for Planning is the responsible authority for the As a consequence of this project and since the introduction of administration of the Alpine Resorts Planning Scheme as it the new Alpine Lease, all new leases granted at Mt Baw Baw will applies to the Resort in conjunction with the Planning and have been registered at the Titles Office. Environment Act 1987. Wombat Cabin lease and the Cascade Apartments have been The Board (through the Urban Design Framework - UDF) which successfully registered. was developed in 2002 and associated works has: — encouraged mixed use development where appropriate for Sub Leasing Activity a variety of mixed residential, commercial, entertainment, Over the past five years, seven apartment subleases changed recreational and service uses hands in the Resort. The retail value of these transactions was in — promoted consolidation of existing developed areas of the the vicinity of $1.2M, demonstrating strong interest in property village ownership within the Resort. — encouraged re-development of the existing range of Strata Leasing Project commercial facilities In parallel with the Lease Registration Project, the ARCC — promoted the development of infrastructure, commercial and also initiated an investigation into the feasibility of creating a public services Strata Lease regime for Apartments in the Alpine Resorts in a — provided emergency services. similar vein to the freehold Strata Title concept created in the The Urban Design Framework is the basis of Mt Baw Baw Alpine Subdivision Act 1988. Resort’s Planning Scheme. This is also addressed by the Mt At this stage Strata Leasing is not proposed.. Baw Baw Alpine Resort Management Board Draft Strategic

Wildflowers In Summer Attract Bushwalking Enthusiasts

34 4 Vibrant Economy Revitalisation — A Sponsorship arrangement continued between the Resort The Board’s greatest challenge is to ensure that the Resort and the Cactus Black Group to support the development of a continues to move towards business sustainability. new Rail Park Feature Resort Viability — Resort facilities were open all year ensuring that investment — The Resort has continued to review its economic viability has been capitalised on, to increase year round use and especially in view of a poor snowfall year risk improve income — The Toboggan Infrastructure Levy continued, resulting in — Walks, utilising existing infrastructure, have been developed income of $30,943 and will support the development of a — The Resort Real Estate Revitalisation Project was maintained fourth Toboggan Run — Hotel Accommodation was refurbished utilising internal — The Green Season Infrastructure and Parking Levy Ticket resources in 2006. The Hotel Accommodation business had Dispenser is operational all year. There has been discussion a considerable profit margin this year with Lodges to ensure that concessions are given to them — Several new Terrain Park features were on offer in 2011, and (as the majority of their visits to the Mountain during the were very well received by that market demographic Green Season relate to their volunteer labour at those — A Sponsorship arrangement between Cactus Black, RPS and Lodges) the Resort continued in 2011. — Cross country fees were implemented; however poor grooming prevented significant Cross Country skiing TABLE J: activity. Yield — Even though clubs have been requested to pay according White Season Yield did decrease but overall the trend remains upward. to the instalment payment program, some Clubs left their payment until the very end of the financial year (which does Mt Baw Baw Annual Yield (2003 - 2011) create some cash flow issues for the Resort) $60.00 — Resort Management, Ski Hire, Cascade Apartments, Kelly’s, $50.00 Skali and Tanjil Lodges were the significant members of the Co-operative Marketing Campaign $40.00

$30.00 — Increased membership of the Regional Tourism Association Yield

has assisted a greater understanding about the inter $20.00Annual

dependency between Mt Baw Baw and the region $10.00 — In 2006 the National Institute of Economic and Industry $- 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Research (NIEIR) based on a visitation level of 21,486 Yield $12.96 $18.79 $25.66 $37.68 $37.52 $31.17 $43.22 $39.04 $38.51 $46.58 $42.01 Visitor Days calculated a return on $7.9M to the regional economy. While there are no exact figures available in terms It is also of interest in terms of income related to visitor days of benefit to the regional economy in 2011, it is reasonable (seen in the Table below) that not only did visitors decrease, to assume that with a visitation of 52,438 Visitor Days that their level of spend decreased as well. the benefit to the regional economy would have markedly TABLE K: increased. Mt Baw Baw Alpine Resort directly employed 58 EFT employees in 2011. Visitor Days vs Income $1,400 30,000

$1,200 25,000

$1,000 20,000

$800

15,000 Actual Income Income 000's Income $600 Visitor Days

Visitor Days Visitor000's Days Visitor 10,000 Days $400

5,000 $200

$0 - 1234 In terms of monitoring our performance: — Green Season yield is now benchmarked across a number of Business Units (Accommodation/Food and Beverage) — As a member of the Australian Ski Areas Association (ASAA) research is being conducted in relation to further efficiencies of the lift system — New prices were set/revised which increased yield without alienating our customer base — Some of our packages (green and white season) targeted high spending customers which have contributed to Frosti and Friends maintenance of yield (e.g. Romance Packages). 35 A comprehensive weed spraying program was undertaken The Business Model during the reporting period with mapping of sprayed areas — The Chart of Accounts has been reviewed, to ensure that undertaken to ensure a reduction in weed species is observed products emanating out of Business Units can be monitored in future years. Future spraying programs and associated and redeveloped mapping will provide a more robust model on which to show — A Business Management Model to guide future investment improvement. Target species for this spraying program are has been developed shown below: — Processes were continued which reflected transparent, equitable business arrangements with ‘on mountain’ Target species Botanical commercial operators (Common Name) Name Status — Strategies relating to business opportunities (Transport/ Sword Leaf Rush Juncus Reduction in infestation Booking Services / Lodge Cleaning / Functions and Catering) ensifolius zones evident. have been developed and implemented Single plants targeted in — A Real Estate strategy to attract investment has been detached areas to stop developed (which includes the Hot Bed policy) and further colonisation has created the opportunity for additional overnight Blackberry Rubus Reduction in infestation accommodation for public use fruticosus zones evident — Provision of financial reporting and support services has Scotch Thistle Onopordun Reduction in infestation been reviewed and restructured acanthium zones evident — Resort Management has restructured to respond to changing Resort business operational requirements. Municipal Waste Management Improvement in monitoring programs have been implemented Risk management to break down recycling data into more definitive volumes for — The Resort has comprehensive protection plans in place the creation of baseline data on which to improve in the future. — The Resort developed a new database to monitor Resort Risk Management The Baw Baw Plateau — The Board’s Audit, Risk Management and Compliance — Leaflets relating to the Baw Baw Plateau are made available Committee oversees risks on a quarterly basis. to the public — Fire protection and minimisation strategies / Management Plans have been developed with both CFA and DSE — Consultation has occurred with Parks Victoria and DSE, in the development of the Boulders Trail 5 Environmental — Promotional material has been developed to promote alpine Management awareness to walkers and recreational users Environmental management is a key responsibility and — Engagement has occurred with nearby tourist towns to commitment of resort management with exotic flora and promote a cooperative relationship (Noojee, Icy Creek, and fauna management, waste management, land rehabilitation, Walhalla) catchment management, water sensitive urban design and — An agreed position, in relation to access to the National Park Baw Baw frog (Philoria frostii) studies continuing as part from the Alpine Resort, has been entered into of the Board’s vision and ongoing charter for a cleaner and — An application to Parks Victoria, for the Great Walhalla Alpine greener resort in the future. The Department of Sustainability Trail to be licensed, was and Environment led the frog team on its continued study into renewed in 2011 this elusive amphibian, numbers are in decline and the study — The Great Walhalla Alpine is trying to ascertain what factors are influencing its habitat, Trail is now ‘Accredited’ mortality and how we can preserve it in the future. and the Walk guided by an — There is agreement that Resort Budget for 2011/2012 will ‘Accredited Guide’ (Resort include the ongoing employment of the Executive Support employee). Officer, who can undertake some key roles relating to environmental management (e.g. implementing the Mt Baw Floral and Fauna Baw 2009/2012 Environmental Management Plan) Management — Promotional material has been prepared encouraging visitors Resort Management is currently to minimise the risk of ‘flora and fauna damage’ and to working on the implementation accept the responsibility of ensuring that future generations of a GIS (Geographical are also able to access the same unique alpine environment Information System) for the in years to come. resort area. This will allow precise mapping of protected Ecological Vegetation Classes (EVC’s), Fauna Habitat and other environmental areas which require special attention Our Waterways in relation to management and 36 maintenance. This system, once implemented, will allow for As a ‘water supplier’ Mt Baw Baw Resort Management must – more accurate information in relation to planning, vegetation Ì Prepare, implement and review risk management plans offsets and existing resort infrastructure. Ì Prepare for the Secretary an Annual Report Stage two of the whole Ì Monitor drinking water supply at the customers taps (water of resort vegetation sampling points) mapping was completed Ì Ensure drinking water supply meets regulated standards during the reporting Ì Notify the Secretary if non-complying water is supplied to period and has been the consumer. formatted into both a Mt Baw Baw Resort Management was fully compliant in hard copy report and all reportable parameters as outlined under the Safe Water electronic files which Drinking Act 2003 and associated regulations. The final annual are compatible with report was finalised, approved by the board and submitted to GIS systems. These the Secretary by the approved submission date as required files will be used as an under the act and regulations. overlay in the future GIS — Discussions have continued with the Victorian Department of system and provide an Human Services and the Environmental Protection Authority overall understanding of in relation to the water quality the resorts vegetation — Reports are developed and sent to DHS on an annual basis assets which will assist with future planning and — Water testing occurs weekly in relation to the ecoli count the implementation of — Lodges and Management are investigating the protection zones. implementation of water meters on buildings — A Risk Management Plan relating to Water was developed Water Management and accredited in 2008/09 and will be reviewed in 2011-12 — Stakeholders have been advised of water quality whenever — Discussions have continued with the Victorian Department change occurs of Human Services and the Environmental Protection — An alliance has been formed with Gippsland Water to assist Authority in relation to the water quality the Resort in water matters — Reports are developed and sent to DHS on an annual basis — The Resort is researching additional catchment opportunities — Water testing occurs weekly in relation to the ecoli count — We have successfully completed a second Annual Water — Lodges and Management are investigating the Risk Management Plan. implementation of water meters on buildings Under the Safe Drinking Water Act 2003 and associated — A Risk Management Plan relating to Water was developed regulations, Mt Baw Baw Resort Management was audited in and accredited in 2008/09 September 2009. This will reoccur in 2011/12. A consultant will — Stakeholders have been advised of water quality whenever be engaged with approval of the DHS and all auditable elements change occurs will be reviewed during the audit process. A plan for action will be — An alliance has been formed with Gippsland Water to assist formulated in conjunction with DHS and only non-compliances will the Resort in water matters be dealt with in a timely manner including a full review prior to the next audit in 2015. — The Resort is researching additional catchment opportunities — We have successfully completed a third Annual Water Risk Waste Water Management — Research continues in relation to the waste water treatment Management Plan. plant within the whole ski industry Mt Baw Baw Resort Management is a ‘water supplier’ as — The Baw Baw Shire has been kept informed of the progress outlined under the Safe Water Drinking Act 2003, Part 1 – relating to waste water management Preliminary Matters, Section 3 – Definitions of ‘water supplier’ — Discussions are underway with EPA in relation to waste (d) an Alpine Resort Management Board established under the water. Alpine Resorts (Management) Act 1997. Land stability — The Resort received $234,000 of government Geo Tech funding to manage our land stability matters — we partially utilised these funds. The project was unable to be completed due to a wet summer in 2010/11 — Two other sites were identified in 2010 and some funding has been applied for to remedy these in 2012/13. Environmental Management Plan (EMP) — A 3 Year Resort Environment Management Plan (including annual KPIs) was finalised in 2008 and implemented in 2009 — Environmentally appropriate language and environmentally appropriate signage has been introduced — The EMP will be reviewed in 2011/12. 37 On track On track On track On track On track On track On track On Track / On Track Off Track Reduce Greenhouse emissions from Resort activities Reduce Greenhouse emissions from Board activities Up – positive outcomes in terms of Resort accessing renewable energy and carbon neutrality Maintain number of activities amount of landfill generated to landfill Reduce – enable comparison and reduce consumption licence conditions (Maintain/Up/Down) data / compare improve improve AUSNET Frog research conducted Reduce by 2% Down – further reduce Complete ascertainment of baseline data 11/12 Year Target11/12 Year Target 3 Year Managing Recreation and the Environment Partially developed Develop more baseline Baseline data developed Develop compare / DSE frog research conducted (6 weeks) Some developed baseline data Partial success Some developed baseline data Success Full compliance Maintain – comply with Failure equivalent person per annum energy consumption per annum Number of activities implemented and number of activities specified to be relevant within the resort per equivalent person has complied with licence conditions associated with extraction, supply and discharge of water Greenhouse emissions from all energy activities at the Resort weight of CO² produced per Total Reduced Greenhouse emissions from Board activities weight of CO² produced to Board’s Total Renewable Energy Consumption by Board be resolved To Success Negative with SP Activities implemented are to protect the relevant rare, threatened and endangered species under the Flora and Fauna Guarantee Act 1988; Planning and Environmental Act 1987; Catchment & Land Protections 1994; the Environmental Protection & Diversity Conservation Act 1999 and state strategies relating to biodiversity as other agreed and approved plans Solid waste disposed to landfill Amount of landfill generated to Success Potable water consumption (excluding snowmaking) Annual potable water consumption Compliance with water licence conditions The proportion of times the resort Philoria Frosti - Our Frog Greenhouse Gas Emission Management Management Management Management Nv4 Energy & Nv3 Biodiversity Nv2 Solid Waste NV Water Environmental plan KPI scorecard KPI Area Performance Measure Alpine Resorts: Environmental Key Performance Indicators (2008)* Measuring Sustainability in Victoria’s Source: 2010/2011 Success/ 38 6 Stewardship The Board attributes high priority to its role of stewardship activities, which this section lists below and to this end, has undertaken the following activities: Communication Mt Baw Baw ARMB acknowledges the importance of effective communication channels with stakeholders, visitors, industry bodies and media groups. In the 2010-2011 financial year, the Resort actively engaged with these groups through the following communication mechanisms: Communication Model Minister for Environment & Climate Change

Board Corporate Plan / Annual Report

Resort Management Research & Operations Guidelines Development Stakeholders

Investors OUTCOMES

Customers

Interest Groups Stakeholder Communication A number of established communication channels with our stakeholders were utilised in 2010-2011, such as: Visitor Communication — Executive Briefings – held with significant commercial — Website – an important tool, our website underwent a ‘others’. The Executive Briefings have proved to be a ‘makeover’ to improve communication to our stakeholders successful stakeholder communication tool and the public — Mt Baw Baw Ski Club Association Meetings – held four times — Snow Cam Reports – this service was improved in the 2011 a year, providing clubs with important information for the season with quarter-hourly website updates (from 7am to season. Both the CEO and Board Chair attended meetings 6pm) where possible — Mountain Watch (live cam) commenced operations in June — Stakeholder Meetings – held at least twice a year. An off- 2011 mountain consultation was held in November 2010 and an — Resort Ski Area (virtual tours) operated again on-mountain consultation occurred in June 2011 — Information Pack – updated for the 2011 season. The ‘Info — our website provides regular stakeholder updates. Many Pack’ provides all visitors with up to date information for the of our corporate documents can be downloaded from the relevant week/weekend website. A feature this year was the ‘Virtual Tours’ of many — Environmental Talks – provided throughout the year to of our accommodation properties schools and organised groups — Lodge Owner Toolkits were distributed to each Lodge — We have News Flashes on our website detailing the contact details of the Guest Services Team; — We increased SMS messaging for regular visitors. available research resources and co-operative marketing opportunities. — We sent out weekly eNewsletters. 39 Industry Communication and completed the implementation of a 5 year Strategic Plan — The Board reviewed and prepared an SMP which has been — CEO was the Chair of the West Gippsland Regional Tourism accepted and Gazetted Association until July 2010 when the RTA referred all — The Board consciously applied the ethics of transparency business back to Shire Council and accountability to Board matters — CEO and Marketing Officer attended the Walhalla and — Membership of the Mt Baw Baw Alpine Resort Board of Mountain Rivers Tourism Association meetings Management was publicised on the website; Draft Strategic — Marketing Officer attended the West Gippsland Gourmet Management Plan and the Annual Report were placed on the Tourism Association website — CEO was a member of the Destination Gippsland Marketing — The Board has reviewed its own performance. committee — The CEO was the foundation Chair of Baw Baw Alpine Local Leasing Policy Tourism Association — The Board reviewed several Lease Strategy documents — Resort circulates regular industry newsletters and updates — The Board/legal representatives developed legal documents — Resort was represented on the Board for Alpine Resort to respond to a request for Lease renewal (Coora Valley Tourism (BART) at both management and marketing levels Lodge). — CEO attended the Australian Ski Areas Association and the ARCC Cooperation Committee meetings. Relationships with the Media and Public Relations Broader Community — $3.2m value of Media monitored for a $380k investment — The Snow Host Program continued — Updated media contact database — The Board consulted with key stakeholders within a planned — Live Broadcasts from 3TR and WIN News and considered timetable — Coverage in state newspapers (The Age, Herald Sun) — A solid partnership has been established with the Baw Baw Shire resulting in the Council contributing to the — Pop Magazine focussed on Mt Baw Baw Alpine Resort on maintenance of the new South Face Road over the White several occasions Season 2011 — Seasonal media kits were developed and distributed — Highlights of the year were the visits by many journalists. — Television, print and radio advertising in Gippsland and All were impressed by the Resort’s development and its metropolitan Melbourne contribution to regional tourism — Participation in Tourism Victoria’s Alpine Resorts marketing — The CEO and Board Chairman have attended most Baw Baw campaign Ski Association meetings — Visiting Journalist Program proved popular — Executive staff participate at Regional Tourism Associations — ‘Grade 5 Ski Free’ was a winner — The CEO and Members of the Board attend industry bodies — Involvement in Tourism Victoria such as the ARCC, ASAA on a regular basis — Involvement in Snow Australia Branding — Networks have been established with overseas Resorts to — Baw Baw’din (Forum) went ‘international’. assist in recruitment of staff — Mt Baw Baw ARMB is one of nine accredited Visitor Indigenous Relationships Information Centres in the Baw Baw Shire — The Resort has engaged with the Traditional Owners of the Mt Baw Baw Plateau (Gunai Kurnai people) in relation Celebrate Mt Baw Baw frog with Our Mascots to proposed developments of the Traditional Owners Settlement Act — The CEO was a member of the Australian Ski Areas Association Indigenous Affairs Committee. Resort Governance — The Board maintained a Calendar relating to Board Governance and Regulatory Reporting requirements — Board and Board Committee meetings were conducted regularly and as scheduled — Board Meeting documentation was reviewed and revised — The Board monitored the performance of the CEO — The Board monitored the financial position of the Resort — In this financial year, the Board presented to the Victorian Minister of Environment and Climate Change, an Annual Report (including a Financial Report, which was audited by the Auditor General’s Office), a three year Corporate Plan,

40 7 Operations — Retail Services — Ride the Groomer Undertakings and — Road Clearing Services Provided — Signage The Board provided the following range of services to the — Ski Lifting Resort: — Ski Patrolling — Snow Clearing Resort Services — Snow Hosting — Administration Services — Snow Making (plus Tours) — Asset Management — Snow Shoeing — Audit Reporting — Snow and Weather Reporting — Car park Development and Maintenance — Snowsports — Communications — Terrain Parks — Corporate Governance — Toboggan Parks — Corporate Planning — Tourism and Visitor Information — Corporate Services — Traffic Control and Parking — Crown Land Management — Trail Grooming — Emergency Management — Transport Services — Environmental Planning — Tube Parks — Financial Services — Visitor Information Services. — Land Management — Marketing, Sponsorship and Public Relations Fire Services — Municipal Services Mt. Baw Baw has its own Fire Service (Picket). This service, — Postal Services manned by our own staff, has been trained to provide a first — Property Referral Authority response to any fire at the Resort. They are also seconded to work with the CFA and DSE for other regional / state fires. In the — Records Management instance of a building fire, the next line of response is provided — Recycling, Garbage and Waste Disposal by the CFA. In the instance of a ‘bushfire’, DSE provide the next — Resort Access - Road Maintenance and Snow Clearing line of response. DSE financially support our Fire Brigade. — Risk Management Recognition and thanks is given to all parties. — Sewerage and Drainage — Stakeholder Management Operational Performance — Statutory Planning — All members of the management team have reviewed the — Strategic Planning Corporate; Business; and Strategic Management Plans — Street Lighting — External expertise have advised on Lifting Services — Telecommunications maintenance — Urban Design — Costs are reviewed monthly with an ongoing imperative for viability in both green and white seasons — Water Supply — The integrated data base (RTP) has improved efficiency — Website, inter- and intra-net services. — The accommodation data base (RMS) has been refined, Visitor Services and the online accommodation booking service has been — Accommodation Services reviewed. — Community Shelters — The Management Structure has been reviewed, redesigned — Cross Country Trails and implemented — Educational and Physical Fitness Camps — Entertainment and Security — Event Co-ordination — Functions — Guided walks — Housekeeping — Internet Services — Learn to Ride (Burton Program) — Medical Centre — Oversnow Services — Postal Service — Public Shelters and Toilets 41 — Team building activities to support staff have occurred TABLE L: — Staff living and working quarters have improved — The Snow Host program was successfully co-ordinated. Mt Baw Baw Skier Days — The Management Structure has been reviewed, redesigned and implemented — Team building activities to support staff have occurred 2000 — Staff living and working quarters have improved Mt Baw Baw Skier Days 2001 45 — The Snow Host program was successfully co-ordinated. 2002 40 2003 35 2004 Outdoor Operations Report 30 2005 25 Works undertaken during 2010/2011 summer program included 2006 20 drainage improvements at various locations within the ski, 2007 15 toboggan and village areas, revegetation programs, mechanical 2008 000's Days Skier 10 overhauls, continuation of the central store relocation and a host 2009 5 of other ancillary works which will ensure smoother operations 2010 0 in both the green and white seasons. Lift maintenance was a key 2011 feature undertaken by the lift maintenance crew and contractors therefore ensuring hassle free operations during the winter months. Lift Maintenance Operations Road clearing operations ran smoothly and wheel chains were The Resort aims to provide a safe, efficient and professional ski fitted to vehicles for a total of thirty one (31) days for two lifting product. The ongoing maintenance inspection program wheel drives and ten (6) days for four wheel drive vehicles. The by Snowfield Engineering (NSW) included three (3) inspections, implementation of new de-icing techniques in 2009 and further and has provided independent engineering assessment of improvements during the 2010 and 2011 seasons enhanced the ski lifts, standard operating procedures and training. access arrangements for all vehicles during the 2011 operating WorkSafe Victoria were also involved in ski lift inspections and period and no major incidents were recorded for that time. operational inspections prior and throughout the season. These Lift maintenance was a key feature undertaken by the lift inspections ensure all operations; maintenance and procedures maintenance crew and contractors therefore providing optimum are undertaken in full accordance with the relevant regulatory operations during the winter months. There is, however, a major requirements. problem with ageing plant. Ski Lift maintenance undertaken during the summer maintenance program saw the standard scheduled items Ski Field Operations addressed including structural, foundation, haul cable, sheave assembly and electrical maintenance. Non Scheduled items The 2011 season saw inconsistent snowfalls with the first included Painted Run T-Bar electrification and a complete falls arriving on June 11. These early snowfalls allowed lifts to rebuild of both the Tank Hill Platter and Painted Run gearboxes operate for 16 days before all lifts went on to standby pending which had been identified as key maintenance items in the 10 further snowfalls. Lifts began operation once more on July year major component maintenance program 7 and ran continuously for a further 45 days before closing on August 20. The resort saw a total of 89.5cm of natural Mt Baw Baw maintenance crews now also contribute to an snow for the season with a maximum natural snow depth of annual Australia wide ski-lifting forum, run at a different 37cm attained during the mid-July period. Snowmaking was resort at the end of each season. This gives Mt Baw Baw undertaken for a total of 71.5 hours on lower sections of the ski Resort Management staff the opportunity to meet with other area and provided an average snow depth in snowmaking areas industry operators and to share information, discuss upcoming of 28cm for the duration of lift operations. challenges or proposed changes and to strive for continual improvement in ski lift operations. The resort saw 22,975 skier days for the season, a decrease of 39% on season 2010 against a total of 52,347 visitor days. Cross Country Operations This would suggest that only 43% of visitors to the mountain engaged in lift orientated snow sports which is a 13.5% Good cross country conditions were experienced for most the decrease on 2010. 2011 season, and grooming was undertaken on a daily basis, or, as conditions permitted. Grooming was undertaken with the PB 100 Groomer as minor trail widening works had been undertaken over the 2010-11 summer works period. Further trail widening works will be undertaken in the 2011-12 summer works period ensuring further improvements for the 2012 winter season. The peak of the Cross Country skiing calendar was to be the 44th Nordic race day to be held on Sunday August 14. Unfortunately this signature event had to be cancelled due the insufficient snow cover and was not a favourable outcome for what is one of the state’s oldest XC ski events. Event organisers 42 are to be commended for their effort and positive input into and volunteer patrollers to provide extended care to casualties what is a signature White Season event for the resort and it is waiting for further medical assistance. All volunteer doctors hoped more favourable conditions are prevalent for the 2012 were of a high standard and were able to provide our guests winter season. with an excellent level of care. We look forward to securing their services for the 2012 white season. Toboggan Parks As in past years a number of items were purchased by the The use of both the Frosti Frog Hollow and Froglets Toboggan resort prior to this season to enable more efficient operation Runs were great not only for guests’ overall experience but also of the patrol both midweek and on weekends. The major item delivering safer areas for smaller visitors, mitigating the risk of purchased for Ski Patrol use by the Resort Management this injury caused by collision with adults. The Board is investigating season was Queue Race Fencing. The purchase of ten portable the need for another Toboggan Run as Tobogganist visitor Queue Race fences replaced the old ‘Rope & Bollard’ system numbers grow! which was utilised by the Resort. Ski Patrol Operations The new system provided guests with clear entry points to lifts as well as a safe area in which to queue. During the 2011 Snow Season the Ski Patrol was called upon to attend to 147 incidents, 138 of these incidents being classified Finally, thank you to all Management, Staff and Volunteers who as major. As a result of the 147 incidents the Ski Patrol had contributed to the 2011 White Season and I look forward to to call upon the Ambulance service for transportation and seeing you all next year at Mt Baw Baw. further medical assistance on 15 occasions, 3 of these being air Analysis of Injury Statistics: evacuations. The reduced number of incidents the patrol was required to attend this year in comparison to previous years Incidents by Days of the Week: is related directly to the number of days the resort was fully Looking at the statistics on a day by day breakdown the operational. midweek statistics are understandably lower as the resort has I must say a big thankyou to staff and Ski Patrol Volunteers more Visitor Days during the busier weekend period. for their assistance during the 2011 White Season. New staff Monday, Tuesday and Thursday, Friday incidents are however showed initiative and built on their existing skill base in outdoor on the increase. education. Senior Ski Patrollers vast experience continues to be a huge asset to the resort and their assistance with coordinating This may be due to increased short stays by school and other the Volunteer Patroller Roster is invaluable. user groups, midweek. A Registered Nurse was employed for the peak period of Types of Injuries: the White Season. The employment of a registered nurse The number and type of injuries sustained at Mt Baw Baw significantly reduced the pressure placed on both paid and have remained stable over the period of the last five years. The volunteer patrollers to provide extended care to casualties exception to this is the large increase in Sprains and Strains in waiting for further medical assistance. It is hoped that this 2010 and Other Incidents in 2011. This may be as a result of the arrangement can be continued in future seasons to assist the season (low snow) and variable snow conditions experienced patrol with ongoing casualty management. during 2010 or patroller’s identification of injuries when In addition the Volunteer Patrollers have again been most completing incident forms. valuable on the weekends and continue to set exceptional Table M shows the percentage of types of injury sustained. standards in what are sometimes extremely busy periods for This graph shows that Sprains & Strains at 30% are by far the the patrol. Cooperation between all operational resort staff over largest percentage of injuries received at Mount Baw Baw. the course of this season has been exceptional and assistance to the Ski Patrol from those staff during peak periods was there TABLE: M when required. A number of new initiatives were implemented by resort Injuries by Percentage 2011 management for the 2011 White Season. A training program was developed by Resort Management and the Ski Patrol training team to ensure that the patrol and its members continued to improve on their existing skills. The scenarios and papers utilised were able to highlight areas where individual patrollers and the patrol as a whole may require further skill development. This process enabled training sessions throughout the season to be tailored to individual patrollers needs. I believe the implementation of this program will ensure that all resort patrollers are able to provide our guests with the highest possible standards of care and professionalism. This season the resort was fortunate to secure the services of Medical Practitioners on a regular basis. Dr Christiansen and a number of other volunteer medical practitioners made their time available to us on a total of 7 weekends throughout the 11 week season. As with the Registered Nurse securing the services of medical practitioners alleviates the pressure placed on paid 43 Table N(i) shows most incidents occurred in July (which was TABLE: N (ii) the month of most visitations). TABLE: N (i) Incident Mode Percentage Comparison in 2011 Incidents by Month in 2011

Table O Operational Ski Patrol Statistics 2011 Incidents 147 Historically August is generally the busiest time of the Visitor Days 52,438 season for the Ski Patrol when called to respond to incidents. Accident Index / Per 1000 0.003 Something to note is that across the last three seasons the Air Evacuations 3 number of incidents in July has increased to be comparable with August. This may be as a result of reasonable snow depths Road Evacuations 12 during the school holiday period across the last three seasons. The above trend highlighted in Table N (i) was the busiest period for the patrol with 61% of all incidents occurring during this Snow Making and period. August was quieter than normal due to the poor season Grooming Operations with only 24% of incidents occurring during this month. Snowmaking and grooming operations were again a key aspect For 2011 these results are directly related to the number of of operations with highly competent staff underpinning this area Visitor Days. July (28329) received in excess of twice the for the duration of the season. Snowmaking operations operated visitation of June (9498) and August (14520). Should this trend smoothly with a lower number of snowmaking opportunities continue and our number of Visitor Days in July rise from year than the average season and crews worked relentlessly to to year we may need to look at increasing staffing resources to ensure all opportunities where utilised to bulk up marginal cope with the increased workload. natural snowfalls. Snowmaking opportunities where at times Incidents by Mode: hampered by substantial winds which affected the capacity to make snow successfully and provided times of inefficiency Looking at Table N (ii) the level of Snowboard incidents has therefore lowering potential hours even further. been gradually increasing against the level of Alpine incidents across the past three seasons with Snowboard incidents now Grooming became the pivotal part of operations in what was making up 44% of the total incidents reported. The above trend a below average season. The resort operates and maintains may be as a result of the increasing popularity of Mt Baw Baw one Kassborher PB 200 and one Kassborher PB 100 Groomer. as a destination for Snowboarders and beginner Snowboarders These machines operate nightly therefore ensuring a top trying Terrain Parks for the first time. quality product for all snowsports enthusiasts. The purchase of a Kassborher PB 100 from New Zealand in 2008 was of An interesting trend for this season is the number of incidents great benefit to the resort during the marginal times and was listed as other (27%). This may be attributed to the poor season a fantastic asset on lift lines and around rail park features. The and increased visitation by first time guests undertaking snow further purchase of a Prinoth Bison X for the 2011 season play activities. which arrived in the later part of the season saw the realisation The overall number of incidents attended by the Ski Patrol for of improved efficiencies and superior finishes which gave this year of 147 is down on past years, the exception being 2006 which was also an extremely poor season for both snow depth and visitor numbers. Given that our visitor numbers are generally increasing (52,438 Visitor Days for 2011) the fact that the number and mode of incidents have remained static across the course of the last five years shows that improvements made in the ski area with regard to fencing, signage and grooming have been successful.

Managing Our Snow Cover 44 guests, operators and staff a glimpse of what can be achieved in The Battle @ Baw Baw held on Saturday July 23 was in a future seasons with this machine. The purchase of the Bison X doubtful position due to unseasonably warm wet weather and reinforces the resorts commitment to improved snow retention, marginal snowfalls. Meetings were held in the days preceding superior surface finishes and more reliable operations. the event and the decision was made to go with it, therefore; every possible resource was acquired to ensure the Staircase XC grooming was undertaken periodically or when conditions was built and the ‘lips’ formed. The Gods were smiling as the permitted with the PB100 groomer. There was a drive to sky cleared the night before the event, everything froze solid and undertake further grooming and commit more hours to XC blessed with the first sunny day in weeks (and a great range of Trail grooming during the 2011 season, therefore; providing riders from all Resorts) the Battle went ‘on’ as another great day an enhanced and superior surface finish and final product in for snowboarding at Mt Baw Baw and Victoria. comparison to earlier seasons. This was well received by the cross country fraternity and will continue in future years. Thanks to the Park Crew for their hard work and patience in what was a challenging season with low snowfalls, warm weather and variable surface conditions. Terrain Park Operations The Terrain Park Team have once again gained a load of Terrain park operations for 2011 season will be well experience and improved on lessons learnt which will see a remembered as a season of mixed blessings. With early snow huge amount of improvement in the 2012 season. on the ground, lifts operating at the start of the season and the I would personally like to thank all staff, volunteers and pre-loved Bison X Groomer on the way, everyone was excited stakeholders for their commitment and hard work, which with possibilities of raising the Resort’s Parks to the next level of ensured the Resort’s success over 2010/2011. both operations and quality.

Big Air Stewart Galloway Bag MANAGER — OUTDOOR OPERATIONS

Snow farming in the La Descente Park, commonly known as Pure Corduroy ‘Greenland’ was a major focus of improvement during the 2011 season and proved its worth during the operating period. The snow farming allowed for longer operating periods under marginal conditions and enhance the guests experience for the duration. Strategic snow farming also paid off in the other park areas and generated and held twice the amount of snow depth than the un-farmed areas. Valuable lessons were learnt and this will see further snow farming improvements undertaken during the 2012 season.

Snow - A Cultural Dream 45 help out in other departments, including food and beverage, Stewart’s Bio driving, the bar, marketing, tube park, housekeeping, admin, the Stewart has been employed at Mt Baw Baw for the past gate and lifts – in fact everywhere! We also took over the full 19 years. He has been part of the Senior Management time staffing of the Magic carpet, which worked extremely well, Team for 12 of those years. Stewart has comprehensive with our children’s supervisor Boom Lee being able to give tips experience in Trade Services, Environmental Management, to beginners on the carpet and encouraging the sale of lessons. Lift Operations, Resort Operations, Resort Development, and Special Projects. He has also attended a number of Lessons Eco Tourism Conferences and Sustainability Forums and One of the biggest changes within Snow Sports this year was has extensive overseas travel experience. Stewart also has to the lesson times. Group lessons began an hour later, running a passion for landscape, cultural exchange, environmental at 10am, 12pm and 2pm, with private lessons available for sustainability, eco-tourism and sustainable living. These pre- booking at 9am, 2pm and 3 pm only. The rationale behind attributes linked with his management background ensure the change was that the 9am group lessons were under booked he is a positive contributor to the Management Team. (due to it being too early for families to organize themselves) All of these have been underpinned by both practical/ and at least 50% of clients missed the 9am start putting theoretical training and education. pressure on the ticket office to find them a slot later in the day. Stewart resigned and left Mt Baw Baw ARMB on Moving the group times gave guests just visiting for the day a November 25, 2011. broader window of time to make lessons. The change meant that classes ran back to back, so Instructors were worked a lot more intensively. Overall the new structure enabled us to get the most out of the products we offer, and will be a great framework Snow Sports Report for next season. Despite the extremely challenging weather conditions during Due to the diversity and skill sets of our instructors, all the 2011 season, the Snowsports department grew in terms instructors were able to teach a full range of lessons from of both size and products, and managed to retain a very high beginner to parallel, toddlers to adults. We were able to standard of performance throughout. All lessons times were offer both race and freestyle ski/ board lessons for the more completely changed, the ‘Academy’ (Instructor training school) advanced end of the market. We also had over 100 request was created, and the largest International team of Instructors lessons proving our instructors were extremely popular. ever seen at Mt. Baw Baw were able to use their skills to help raise the level of skiing, boarding and x country across the whole mountain. Staff 2011 saw a very near complete change of personnel, including highly experienced and motivated Australian and International instructors, who were able to push through a range of new initiatives. When the snow was lacking, all staff were extremely willing to

Kids @ School

Terrain Park Drew A Lot of ‘Learners’ 46 Having instructors who can teach both skiing and boarding or another online schedule so customers can be booked into enabled us to introduce a new product – ‘Free Spirit’ – a classes from all points of sale. program offered for teenagers that enabled friends to spend time together no matter what the discipline. We hope that this model can be used in the future to widen this program for people of all ages. Academy 2011 saw the start of a closer relationship with APSI (Australian Professional Snowsports Instructors) with the creation of the Academy: Instructor training school. We had 3 Academy members who completed their APSI level 1 training with us which included shadowing classes, personal technical performance and teaching theory. Better snow conditions would have seen at least 3 APSI exams staged at Mt. Baw Baw. We hope to strengthen the Academy next season by hosting Ski, Snowboard and Adaptive exams here: and look forward to being able to eventually employ some of our trainees as certified instructors. Children

Marketing To help promote the mountain, Snow sports worked closely with the marketing department on several initiatives including educational visits to several local schools and groups. We continued to assist with promotional trips to the mountain of VIP’s and famils. To market the ski school further and allow guests to familiarize themselves with instructors, all instructors’ photos and bios were uploaded to the website. We are also working on and aim to use a simpler system of showing what lessons we can offer clients. Lesson Statistics 2011 We were able to continue to build our successful children’s As expected due to the white season being cut short, the programs with the addition of a Kids ‘Kaboose’ – a portable total number of people taking lessons was down from 2010. cabin kitted out with games and kitchen facilities. This provided However, the extremely pleasing statistic for Snowsports is that us with a base for the day camps: to eat lunch, play indoor the conversion rate of people who bought a lift ticket who then games or watch movies when the weather was bad or the went on to have a lesson was much higher – 22.6% in 2011 children just needed a break – and proved both a real practical compared to 18.9% in 2010. success and selling point alike. TABLE P: Due to the success of the Kaboose, we hope to be able to Snowsports school trends eventually have a more permanent structure in place to house our children’s program, assist in promotion of week camps and P (i) lesson package deals, and use as a staffroom for overflow of Total Lessons: 2762 Total Revenue: $229,942 staff as our instructor base grows. Private Lessons: 484 Revenue: $43,292 Adaptive Adult Ski Adult SB Child Ski Child SB XC We are pleased to announce that a Sit Ski has been ordered, and 94 78 253 52 7 will be ready to be used in the 2012 season! This will allow us to train instructors for our adaptive program, and enable the resort P (ii) to cater for a range of more physically disabled customers who are unable to be fully independent on the snow. Group Lessons: 2268 Revenue: $186,150 Adult Adult Child Child Child School School School Adult Ski RTP SB LTR Ski SB LTR Ski SB XC 399 191 140 821 167 104 265 118 56 As in the past 2 years, RTP was used by the ticket office for the sale of lessons. However – it was realized we could maximize lesson bookings by enabling sales at both Administration and Retail, and this came into effect in the second half of the season. We have started looking at options to make the scheduling and bookings system even more efficient: either by using RTP 47 Table Q (i): Targets for 2012 Snowsports Lessons: Discipline Snowsports looks to an exciting future in 2012. Below shows the type of lesson taught by discipline. Alpine From the statistics, there appears to be some easy ways to lessons are by far the most popular: Nearly 70% of all lessons increase our lesson revenue for next season. We need to taught are alpine. improve the conversion rate of people buying just a lift ticket to those who also buy a lesson - this is a massive captive audience. We would like to see this figure increase to 25%. We also need to increase the number of Level 2 + lessons sold. The target for 2012 should be at least 20%. For obvious reasons Mt. Baw Baw has always been a resort for families and first timers. However there is no reason we cannot expand the more advanced end of the market to inspire some loyalty from guests who learn to ski here, but feel they need to go to other resorts to then improve their skills. This includes plans for a Race Squad for children and Master’s Trailblazers Club for adults. This will bring return business and gets the whole family on the hill. We will also promote multi and consecutive day lesson packages (at discounts) for both adults and children to boost and fill group lesson numbers and increase return business. Table Q (ii): Snowsports Lessons: Alpine Groups Snowsports Administration Below shows the number of Alpine Group lessons beginner lessons (level 1) vs lessons for people who have skied before (level 2 or above). This shows that 86% of alpine group lessons are for beginners.

Challenges in Snow Sports Mt Baw BAW ARMB remains committed to ensuring that the Resort is fit for ‘All abilities’. To this end, we have: — Renewed the Vision Australia Agreement — Researched opportunities for other ‘disability access’ — Acquired a Sit ski — Provided further training to staff — Considered further required resources. Next year we hope to focus on Cross Country and grow that sector of the Snow Sports Market. We will also focus on Terrain Park training for younger adolescents. We will continue our Kids Camps and will support the promotion of moving people from toboggans to skis or snowboards.

Cross Country Consideration 48 It has been a pleasure to manage the Snow Sports School this past winter and to see products and procedures grow from Outdoor Education Report ideas to implementation of the Department. I would like to The Outdoor Education Section’s mission is to increase Green sincerely thank all staff for helping make this season a success. Season visitation through developing and selling products as well Thank you to everyone Resort wide, for their hard work and as to co-ordinate Events in the White Season. dedication this season. Mt Baw Baw has been rebadged as a summer fitness training Lisa Cordwell & Michael Holland destination and has to enter the School Camp market. We have SNOW SPORTS CO-ORDINATORS nearly completed our School Camps Accreditation process. We have also engaged a Personal Trainer who will be available on a request basis allowing us to offer a Boot Camp product targeting other groups who want to come up on a fitness retreat. Fitness retreats and boot camps are an untapped market in the Gippsland area and offering such products will leverage our brand new Wellness Centre as well as our alpine environment to give us a unique point of difference within the marketplace. School Camps are a longer term goal for Mt Baw Baw and we are currently looking at suitable school activities which are uniquely alpine. Two activities which we hold great faith in, are orienteering and mountain biking. Currently Orienteering Australia is looking to introduce orienteering. We have offered to work closely with them in order to successfully introduce orienteering courses in, and around, Mt Baw Baw. We already have strong interest of mountain biking clubs. World Trails completed a feasibility study this year and established that mountain bike trails would be a great asset in attracting school camps mid-week in the Green Season. We would then be able to offer a specific mountain bike school camp complete with on-mountain accommodation, full catering and a host of other environmental/team building activities to complement the main activity of mountain biking. Hikers and Bushwalkers continue to increase. The jewel in our Crown is the Great Alpine Walhalla Trail along with our Mt Baw Baw Walks and our new walk ’The Boulders Trail’ is now being tested. Additionally Cyclists see Mt Baw Baw as a huge challenge — especially being part of the 7 Peak Victorian Cycling Challenge — one event that visitors love to watch. Because Mt Baw Baw is much closer to Melbourne and the growing population of the Latrobe Valley than the bigger resorts, we can operate much more economically than the other resorts. We utilise our natural assets and we can leverage off our status as the ‘learn to’ mountain. We are in a key marketing position to offer such products.

49 Events We had a full Events Calendar this White Season. Events often coincide with a busy weekend. As usual we opened up the events season with our Signature Event, the ‘Battle of Baw Baw’ sponsored by Forum/Burton with associate sponsorship provided by Cactus Black. This event is on the Australian Snowboard Circuit and attracts high profile snowboarders and media to Mt Baw Baw boosting our profile in the industry. Once again the Terrain Park crew did an outstanding job delivering a world class feature; our purpose built Staircase, setup for the competition. Thanks go to Ralph Rottura, Shane Carter, and Jamie Malady for all their hard work promoting the event and ensuring its success, early word is they are planning an exciting new format Mountain Promotions for the competition next year which is set to create a lot of buzz. Many events were also conducted for staff and visitor This season we ran one other event sponsored by Melbourne enjoyment. We particularly enjoyed conducting the Girls on based snowboard shop RPS the Board Store in Elwood. Thanks Boards Day. We also undertook another GWAT Familiarisation. go to Warwick Lee from RPS for his continued support of all events at Mt Baw Baw and his obvious passion for our ‘little hill’. Due to our 2010 purchase of a new HD camera we were able to shoot, edit and then deliver a story to WIN TV within 24 hours which made the nightly news bulletin on the Monday evening after the event. This quick turnaround was made possible due Jack McCowan & Emily Robinson to the cooperation of our own Public Relations Officer who OUTDOOR EDUCATION & EVENTS conducted interviews and prepared the PR message. I can see significant opportunities in videoing all of our events next year especially if we were to introduce a weekly video snow report and build our online presence. Administration The 2010/11 summer offered successful events held in the Postal Services Green Season (one round of the Victorian Downhill Mountain In 2011, we have implemented a new address for staff (PO Box Bike Series and one round of the National Downhill Mountain 102 Rawson 3825). 2011 was a great year for Administration Bike Series). The road cycle event the Baw Baw Classic was also Services with a dedicated, sound, and harmonious team. a highlight. In August, the Tullicouty Cup did not run. Thank you to all involved! And finally in May we had several Mother’s Day Special Day opportunities. Other Services The Administration section also delivers the Land and Lease Management Support Service as well as all Board Secretariat services. The Section ensures the: — coordination of all cross departmental communications — promulgation of SMS messaging — development and operation of Human Resource administration including the provision of Staff Induction Manuals and staff uniforms — development and communication of Resort Policies and procedures — efficient management of office stock and supplies — support to other sections as required. Jo-Ann Rogers worked as the Personal Assistant to the CEO and Board Secretariat. Financial Services 2011 was a productive and busy year for Finance, the White Season started very quickly in early June and organisation staff numbers quickly went from 25 to 125. Fortunately we had implemented our Genesis Pro hand scanners, and although we had a few teething problems the system certainly justified 50 the investment in terms of improvement in the accuracy of our timekeeping. Snow for all abilities Despite poor visitation, transactions were steady, and with a small finance team we managed over 14,000 entries that hit the Mt Baw Baw ‘financial books’, both up to and during the season. Approximately 4,000 payments were made to employees and local suppliers and efforts are constantly being made to source local produce, support local businesses and to maintain as low a carbon footprint as possible. The Resort employees mostly live locally or who relocate to the area, thus contributing to the economies of the local community. Mt Baw Baw is the largest client of the Neerim District Community Bank (Bendigo Bank) in South Neerim, and supports branches in Traralgon, Moe and Warragul. In 2011 we ceased using our external financial consultants Coghlan Partners Pty Limited, thank you to Coghlan’s for their support over the last four years. Kaye Hawkins was hired in late 2010. We have had an internal audit in April/May 2011 to review our PCIDSS compliance, an area which is becoming more sensitive with the increased and varying use of credit cards, we received a positive result and the few follow up items have been addressed and remedied. In order to manage the business more we have invested in two software packages, one being to assist with Time and Attendance recording (GenPro) and the other being a very well supported Asset Management system (Mex) which as well as monitoring and managing our fixed assets, also manages the maintenance logs required for various very important pieces of equipment. This will enable us to prolong asset life and manage replacement costs. We look forward to continuing our good working relationship with suppliers, lodge owners, the Bendigo and Westpac Banks moving forward into 2011.

Kaye Hawkins GROUP MANAGER FINANCE & ICT SYSTEMS Kaye’s Bio Kaye commenced with Mt Baw Baw Alpine Resort as Group Manager - Finance and Information and Communications Technology Services in August 2010. Kaye is a member of the Australian Institute of Chartered Accountants and has a Bachelor’s degree with a double major in Accounting and Management Studies. After completing her professional year, Kaye commenced her career in hospitality working for an International Hotel chain in the Asia Pacific. After twelve years as Financial Controller for an international HR consulting firm in Melbourne, Kaye and her family made the decision to move to West Gippsland, to enjoy what the area has to offer. The role at Mt Baw Baw was a perfect opportunity for her to return to the Tourism and Hospitality Industry. 51 In 2011 RTP has undergone a year of further development. Corporate Services While we successfully implemented a new Voucher System, A. Human Resources Activities Management System and Lift Ticket Scanning Systems we initially had some issues implementing our The early snow fall placed new snow season staff under new eStore (online sales) but these were mainly due to the pressure with limited time to train them before providing service fact that only a few Banks still support the OCX protocol to a large numbers of visitors in the Opening Weekend. The new that RTP has used. Fortunately, Perisher found an alternate staff members did well in providing good service to provide a solution in Payment Express (PSX). Some areas within RTP great Opening Weekend of Snow Activities as well as Food and were significantly improved in 2011; the greatest area of Beverage to large numbers. improvement was achieved at the Gate with the installation of a The snow season staff were recruited in May when we put the new NextG Antenna. This connection was effectively able to give prospective staff members through a series of activities to see the Gate faster internet that what was able to be achieved on how they reacted to the different situations, then interviews, for the Resort, resulting in a consistent and fast connection. Other different positions. areas of significant improvement include Food and Beverage. We put in place a new staff postal service to ensure secure and With new F&B management on board this year, RTP has been reliable delivery of Personal Mail to Staff living on Mt Baw Baw. shown in a new light. We are now able to have greater control of all aspects of F&B sales allowing for improved reporting, In addition to staff living on the mountain we also leased a ‘staff analysis and staff management. house’ in Rawson and provided a bus to transport them to Mt Baw Baw to work. This proved successful with staff living there, enjoying the experience and people in Rawson, being the beneficiaries of staff spending their money locally. We have developed and refined our Polices and developed staff, to ensure we provide a safe and secure work environment where staff are and given equal opportunity and protected from discrimination. We are now increasing training opportunities for all staff so we can grow and develop the skill of our great staff members. We now offer assistance to managers in terms of recruitment, induction, training and ongoing support of staff. B. Risk Management Over the past year, RTP has undergone an internal review. This The year has been one of change with the move from the has shown that a greater investment needs to be placed into complicated WynRisk to a simpler spreadsheet layout. frontline staff training as it had been in the first two years of our implementation. 2012 will be a year of further consolidation with This move will ensure that the staff have easy access to the no new modules planned. Register and Plan, the change will mean staffs increased use of the Register and Plan as it is a lot easier to use. With the planned Warragul Call Centre going ahead we upgraded our PABX to allow for the integration of the Call Staff are undergoing additional training in risk management Centre. This upgrade allows us to move to VoIP and IP as the changeover takes place, department by department as Telephony. By combining these two technologies, we have been required. able to reduce our call costs by around 40% and also allow for C. ICT Services greater mobility of our workforce. For the ICT Department, 2011 has been another successful year. While overall numbers of website visitation dropped, this was Following last year’s restructure this year has been a year of in line with the early loss of snow. For the months of June and consolidation. July, visitation to the website was significantly up on previous years. The release of our initial iPhone app saw it This year RMS (Accommodation database) was placed under a downloaded over 1,000 times from word of mouth. In 2012 this heavy review after finding that it has some severe development will be ‘brought in-house’ to reduce development inadequacies, particularly with ‘online’ sales. While we have time and costs. changed our procedures and RMS have since released upgrades that will reduce our loss of functionality there are still some issues that need to be resolved. RTP (Resort wide transaction database) has recently made announcements that will prove very exciting as they allow the potential integration of RMS and RTP. RTP in 2012 will be the dominant/preferred database used by most Australian Resorts. Our Staff are part of the Australian User Group and there is an excellent working relationship between Mt Baw Baw ICT Management and ICT Management at other Resorts.

52 This year we expanded our Staff from 1.0 EFT to 2.0 EFT TABLE R : overall (including project work). We retained the use of Website Designers (360 South) for major graphics but we are able to 2011 Pricing Resort Entry (inc GST) upgrade the content on most pages. Ticket Category Fees White Season Resort Entry $36 per car : weekend $33 per car : mid-week Consecutive Day Cap $120 per car Season Pass $300 per car Buses (non-School, Ian Maxfield GROUP MANAGER – CORPORATE SERVICES minimum of 9 people) Day Entry $12 per person Multiday Cap $24 per person Green Season Ian’s Bio Resort Entry $5 per car Ian Maxfield has spent a large part of his working life in Season Pass $25 Industrial Relations and Human Resources Management as well Government. During this time Ian, has gained TABLE S: Qualifications well as wide practical experience in the management of Human Resources. 2011 Lift Pricing (incl GST) Ticket Category Adult Child Ian has undertaken several training courses in Risk Management Mid-week per day $65 # $45 Weekend per day $69 $49 Ian has worked with Mt Baw Baw over the last eleven years and has been employed at Mt Baw Baw since Season Pass $720 $470 May 2011, and is responsible for Human Resource Cross Country Pass $9 $5 Management, oversight of Risk Management and ICT Cross Country Season Pass $115. $60 Services. Family Special Ian has lived and worked in Gippsland his entire life and is 1 Day (2 Adults + 2 Children) $205 involved in many local community organisations including Extra child $39 20 years CFA volunteer, Quantum Support Services Board TOBOGGAN PASS Member, Land Care and Parish Council and Synod rep for the Anglican Church in Gippsland. Toboggan Pass = 1 day $5 Ian is enjoying the challenge, helping to develop and grow Toboggan Season Pass $50 Mt Baw Baw Alpine Resort. # over 70’s are free midweek and $64 per day at weekends Snow Reporting and Statistics During the 2011 winter season, Daily Snow Reports were LESSONS: Alpine Skiing, Snowboarding and Cross Country distributed via email, recorded phone message, the internet Adult Child and fax. Snow reports were also provided daily to the Victorian 1 hour private lesson (max 2 people) $99 $99 Snow Reporting Service for distribution to media. The Resort’s 1 hour ‘under 6’ private lesson (max 2 children) n/a $65 Website was also updated daily with the snow report and digital ‘cam’ footage. 1 hour private cross country lesson (3 to 6 additional students $30 each) (max 4 people) $50 $50 1 hour private freestyle lesson (max 2 people) $99 $99 Half day private lesson (3 hours) (max 3 people) $275 $265 Full day private lesson (6 hours) (max 6people) $475 $450

53 8 Tourism 9 Hospitality The Board considers that it is critically important that Mt Baw Accommodation, Food and Beverage Services, Visitor Amenities Baw is known as an Alpine Tourist Destination, rather than a Ski and Entertainment all fall under this heading. The following Resort. activities reflect the outcomes of this year: Tourism – For and at Mt Baw Baw — Discussion has occurred with several Lodges in relation to — We have engaged with tourism market stakeholders to their capacity to respond to the needs of people with ensure that they accept that Mt Baw Baw is part of the disabilities tourism industry — One more Lodge joined the Resort’s Accommodation — The Resort will continue to discuss the possibility of sealing Booking Service and one Lodge left the Service of the South Face Road with Baw Baw Shire and DSE — The Hotel was popular with younger patrons because of its significance to tourism in the sub region — The Cabins/Hotel and a number of other properties were — The CEO and senior staff are members of three tourism available all year. organisations The Mt Baw Baw Alpine Resort Guest Services Department is — The CEO and the Marketing Officer both attend Board of made up of the following products: Alpine Tourism Meetings — The CEO was Chair of the West Gippsland Regional Tourism A) Central Accommodation Booking Service (including Guest Authority and Destination Gippsland Marketing Committee. Services in Retail) — The Resort successfully renewed its Australian Tourism B) Housekeeping Service Accreditation Program Membership C) Transportation Service (Buses & Oversnow) — The CEO has promoted Mt Baw Baw as the iconic image for tourism with Destination Gippsland in the Winter Season D) Ticketing — Signage has, and will continue to, improve to and within the E) Retail Services Resort F) Burton Learn to Ride G) Wellbeing Centre. The following information details how the Department progressed over the 2011 Alpine Year.

Social Clubs Love Mt Baw Baw

— An application for improved signage on tourism roads to Mt Baw Baw from Melbourne has been lodged through VicRoads — The Snow Host volunteer program continues to earn a reputation for excellent customer service — We have ‘decals’ on Baw Baw Betty, Baw Baw Bob, Baw Baw Bruce, Baw Baw Billy and the Marketing Vehicle promoting Indoor Operations the Resort. A) CENTRAL ACCOMMODATION BOOKING SERVICE (CABS) CABS provided an excellent and professional booking service for the public this year with mid-week bookings being steady and increasing in the weekend visitation area, for 2011. In the White Season CABS operated out of two offices, one being a Call Centre in Warragul which was manned by one full time (Monday to Friday) staff member and the Administration Office at Mt Baw Baw operated by four full time staff members and operated seven days per week. The Warragul Call Centre took an enormous amount of pressure off the Administration staff who could then spend more time with customers and selling products from the office and over the telephone. Administration Office (Guest Services) hours were: Green Season: 9am – 5pm seven days per week White Season: 9am – 5pm seven days per week 5pm – 9pm seven days per week 54 from the Retail outlet. This year, we saw guests holding back on White Season Our driver always had a story to tell the guests and the guests bookings mid-week, but weekends overall, were fully booked. always commented on his friendly demeanour. Cabins and self-contained accommodation proved to be the BAW BAW BETTY: most popular, followed by apartments & higher standard lodge Baw Baw Betty was used as a staff transport bus from Rawson accommodation. each day and as a ‘shuttle service’ from gate entry and lower car Green season packages were very popular with couples and parks on the weekends and school holidays. The service was families coming up to enjoy the serenity and outdoor activities well received by guests who had to park in lower car parks. offered. BAW BAW BOB: This 2011/12 Green Season will see the Guest Services Office open Monday to Friday, 9am to 5pm by one full time staff Baw Baw Bob was used as a delivery and pick up vehicle member, and on weekends, Guest Services will be operated by for mountain goods and stock. It’s logo and decals serve to Village Central Staff. promote Mt Baw Baw in all of our satellite towns. Thanks to Staff for sharing the workload of the Warragul Call Centre and for their hard work in the Administration Office. D) Ticketing TABLE T: Gate Entry Accommodation Income by Year Gate Entry operated seven days per week, Saturday to Thursday Mt Baw Baw CAB's Income from 8.30am to 4pm and Friday from 8.30am to 11pm. Gate Packs again prove to be a powerful tool for providing $300.0 guests with valuable information about the many facets of the resort. Through this medium we successfully promoted $250.0 the Burton Learn to Ride Program; Keep Winter Cool and the

$200.0 2005 Wellbeing Centre. It also provided information relating to 2006 entertainment and ‘up and coming’ events. 2007 $150.0 2008 Thank you to our Staff who spent many hours by themselves at 2009 the gate and to the Road Crew Team who regularly dropped in Thousands $100.0 2010 to say hello and deliver food. 2011 CHAIN FITTING SERVICE: $50.0 Baw Baw Sports and Outdoors in Neerim South successfully applied to the Board for a License and subsequently provided $- Summer June July August September October a Chain Hire and Fitting Service from Gate Entry. This certainly helped out the Road Crew Team with less incidents occurring on B) Housekeeping/Lodge Services the road. Housekeeping and lodge services continue to grow. This year HOWLING HUSKY DOG SLED SERVICE our housekeeping team consisted of three full time and one part This new popular program was ticketed through Guest Services. time housekeeper. In 2012, we will increase this to four full time staff and an amenities cleaner to work on the weekends. MEET AND GREET SERVICE (Village Entry): The ‘Tardis’ operated again this year with staff from all areas Green season continues to be steady work for one full time manning it each day from 10am to 4pm. The staff sold housekeeper working 5 days per week. toboggan tickets and gave out general information to guests Thank you to our Staff for a fantastic effort this year. arriving and departing the mountain. C) Transport TICKETING AT MOUNTAIN SPORTS: BAW BAW BRUCE: Ticketing again ran well with the queue waiting time minimal. The semi-permanent bollard queuing system will be put in place Baw Baw Bruce (Bus Service) operated transporting guests to again for the 2012 White Season which will again reduce guest and from the Warragul Train Station 6 days per week. queuing times. Our guest figures were down on last year, with only 280 using the service. Pricing will be reviewed for 2012. E) Retail Shop The retail outlet at Snowgum Lodge operated from 8.00am to 9pm 7 days per week. We increased the level of souvenirs and snack foods and also introduced the sale of ice creams which proved very popular with the guests and visitors. We reduced the amount of shop items due to their lack of popularity, but increased souvenirs. While income reduced, profitability improved. Guest Services operated within the Retail Shop and in the Administration Building and offered accommodation check ins/ outs, bookings and sale of tickets for activities, ski and board lessons and general inquiries.

Baw Baw Transport 55 Finally A very big thank you to the Indoor Operations team for their hard work over the 2011 year. Their dedication, support and happy faces helped our guests and visitors experience the best of Mt Baw Baw.

Janine Hunter GROUP MANAGER – INDOOR OPERATIONS

TABLE U Retail Income Year Comparison Janine’s Bio Janine commenced with Mt Baw Baw Alpine Resort Management Board as Group Manager - Indoor Operations in January 2009. Janine has a number of years’ experience in operations including Food and Beverage, Conference and Function Management and Administration Management. Janine also has a background in the Legal field spanning 15 years.

F) Burton Learn to Ride: Food and Mt Baw Baw purchased additional boards, boots and bindings this year as our reputation of an excellent product continues Beverage to grow. The sale of Burton Boards off mountain had minimal impact this year but with additional advertising in 2012 we are Services confident our Burton Learn to Ride will keep moving forward. The Food and Beverage section of the Resort continued to The product particularly encourages ‘new’ riders, because of the operate from existing Mt Baw Baw venues (Sea 2 Sky Sun Deck, Snowsports lessons attached to the rental. Cafe, Restaurant and Bar at Village Central; Riders Bite Fast We are also proposing to have a display of boards, boots Food Take-Away and Cafe and Hotel at the Alpine Hotel; and the and bindings on display at Cactus Black where guests to the Snowsports Skiosk Fast Food Takeaway located at the hub of mountain can choose what they want, place and order with White Season Snowsports Activities). us and it will be ready for collection when they arrive on the In 2011 the Resort’s Food and Beverage strategy changed, mountain. This will increase our flow of traffic in the store and with the decision to differentiate Food and Beverage products also keep the customer happy not having to spend time getting according to Venue, Critical to this decision was the need fitted out. for the appointment of a Food and Beverage Operations Line Castus Black Manager with experience in Hospitality and exposure to catering to large crowd numbers. This successful recruitment, resulted Our relationship with Cactus Black grows bigger and better in the immediate implementation of the new direction for the every year. This year we employed staff on behalf of Cactus Food and Beverage services of Mt Baw Baw, with full support Black and ran their shop which worked very well. from CEO and Board of Management. Our Staff always had a smile on their face and made everyone’s The increase in visitation over the past three years has required visit a memorable one! change to cater for the larger volume of customer trade. An G) Wellbeing Centre immediate upgrade of existing kitchen facilities and equipment was required to be undertaken. This occurred in both the Alpine Our Wellbeing Centre has markedly grown in popularity this Hotel and Village Central resulting in custom installation to both year with the Rock Pool Spa, Sauna and Massage Services venues of essential industry recognised cooking equipment. being used on a regular basis. This introduction of equipment was required to address and Our massage therapist came up each weekend and received improve service time of menu production and increase Point of great feedback from all staff and guests who used her services. Sale revenue. Continued improvements being undertaken during the Green Season to all venues has ensured that the required planning and preparation of our facilities is being addressed. On-site storage areas are being organised and secured to ensure more efficient stock control techniques are applied to operations. 56 Sports Bar

Brett’s Bio Brett is a fully qualified and Award Winning Executive Chef who has for the last 7 years successfully owned and operated several food and beverage operations. Formerly, he was responsible for the recovery of large volume bistros liaising with Clubs Victoria. Brett also worked with Country Racing Victoria facilitating catering operations for large race days.

10 Marketing Little Mountain, Big Value in 2011 The Mt Baw Baw tag line for 2011 was again ‘Little Mountain, In time this serious approach and implementation to Big Value’ which underpins the main focus of the marketing stock control and security systems will show a significant strategies for the mountain. The Resort again worked under the improvement of stock on hand and sales reporting. Working Green and White Season premise for marketing initiatives. with maintenance and securing essential stock control and The Marketing team focussed on increasing visitors to the store age areas is key criteria work that has to be addressed as mountain by selling packages and targeting our core markets part of the success to formula of Food and Beverage Service to maximise front gate, accommodation, food and beverage, lift Operations. ticket, snow sports and off snow activities yield. By developing The proposed menu planning for 2012 is well underway and the online strategies, implementing promotions and maximising opportunity of Mt Baw Baw to establishing a credible food and media and advertising, overall visitation has seen an increase in beverage destination reputation is quite realistic and achievable. 2011. The sourcing of key kitchen team members to produce the The big change in 2011 has been the growth of the online required Menus has been conducted. marketing space, which has seen a shift towards social media and online marketing. Nevertheless, traditional methods of The distinction between menu offerings and service methods at marketing and advertising is still considered a very important venues has developed significant improvements from what has element in the whole marketing mix and have been used in been previously offered on mountain. conjunction with the online portals that has facilitated a more far Food and Beverage have increased this delivery of Conferences, reaching audience in Australia and the World. Functions and Weddings over the past year. The food and The focus in 2011 has been a very targeted approach, with beverage section looks forward to an exciting and busy 2012. advertising and media being planned to focus on our key markets of Families, Young Adults and the International Markets. The emphasis has been to once again highlight the Resort as an All Year Tourism destination. Mt Baw Baw Marketing maintains its close relationships with our marketing stakeholders, with marketing funds being allocated to promote key industry bodies that promote the Gippsland region (Destination Gippsland) and resort specific participation in BART (Board of Alpine Resorts Tourism) and the Brett Marshman new Snow Australia that saw a brand launch in May 2011. Group Manager – Food & Beverage Services Mt Baw Baw also values and actively participates in the Local Tourism Associations that facilitate increased tourism into the Gippsland area. In 2011, these include: West Gippsland Gourmet Country Tourism Association, Walhalla and Mountain Rivers Tourism, Baw Baw Alpine Local Tourism Association57 Green Season 2011 - OVERVIEW The Opening Weekend saw record crowds, and the family favourite ‘Baw Baw’s Got Talent’ has now instilled itself as a The Green Season was heavily ‘Events focussed’ with yearly calendar event. accommodation packages promoted for key holiday weekends and the cycling events held in January, February and March. The success story of the Battle at Baw Baw continues, with notable Australian Snowboard riders on show. This event now The 7 Peaks Cycling competition was once again a successful reaches millions all over the world, thanks to our sponsors promotion to highlight Mt Baw Baw as a cycling destination. Forum and Cactus Black who were the founders of this annual Numbers are steadily increasing with over 120 keen cyclists Mt Baw Baw Signature Event. conquering the challenging Mt Baw Baw Tourist Road. Christmas in July saw the Resort dressed up with fairy lights In terms of the growing focus on hitting the international and decorations. The Husky Dog’s led Santa through the village, market, Mt Baw Baw took a huge step to become a Key Partner which facilitated media and children’s attention. This yearly with Destination Melbourne in 2011. The Melbourne Visitor’s event continues to strengthen as a signature family event each Guide and Accommodation Guides now feature Mt Baw Baw’s year. accommodation, food and activity offerings. Video snow reports became a reality in 2011 White Season, Off mountain event participation has an important strategy for which facilitated increased traffic to our Facebook page and Mt Baw Baw in the Green Season – with emphasis on delivering website. Facebook usage in 2011 increased by 75% and our all year messages. In 2011, Mt Baw Baw participated in continues to grow each week. the Chinese New Year festival in early February that was aimed at targeting the domestic Chinese Market (Visiting Friends MEDIA AND PR and Families). This event held in the Melbourne CBD, gained Mt Baw Baw relies on the support and reach of the local exposure to over 100,000 people over the 2-day period. media in Gippsland. With a mix of radio, TV and newspaper In March, Mt Baw Baw was once again represented at the advertising, and weekly Media Releases to the local area, Mt Jindi Harvest Festival in Warragul which focuses on the local Baw Baw saw a consistent promotion throughout the year. Gippsland family market. Media relations are an essential part of the overall Marketing White Season 2011 Campaign. There was once again a good mix of media visiting The Resort International marketing became a reality with the the mountain throughout the white season. As a result Mt Phillip Island Nature Parks and Mt Baw Baw with the Snow Baw Baw saw over $2 million of editorial in local and metro and Penguins Tour. The Tour was sold into the international newspapers, online blogs, national magazines, radio and TV. Tour Operators of the Middle East, Indonesia and China. In its Destination Gippsland once again facilitated many Media first year an additional 600 international travellers came to the Familiarisations as part of the region’s Winter Campaign. The Resort. most notable media win for Mt Baw Baw in 2011 was Bridgette Events are an integral part of the Marketing campaign. Events Duclos from Mix FM (Melbourne) who generated great publicity are heavily promoted in advertising, however, the challenge through her high rating Breakfast Program. of the dwindling snow conditions in July saw many events cancelled or rescheduled.

Just ‘Hanging Out’ Brigitte Duclos - Family Time

58 ONLINE AND ELECTRONIC COMMUNICATIONS Stakeholder relations Social media has been an integral part of marketing in 2011. Relationships with our on and off mountain providers are Video snow reports has underpinned the communications to maintained through email communications, face to face and our audience via online portals, which gave ‘face’ to Mt Baw events. Regular meetings and communications on available Baw each week. The updates and instantaneous nature of specials, packages and in 2011, a pre-season Retailers Night in Facebook and Twitter to communicate information, promotions Melbourne was trialled with huge success and over 50 retailers and answer customer questions has been invaluable. in attendance. Retailer’s Day on mountain was then conducted as in previous years – even with dwindling snow conditions, The Resort now attracts worldwide attention through partner’s it attracted 20 attendees. The retailer network is a key Word of website and Facebook pages with the cross section of families Mouth strategy for Mt Baw Baw and it was encouraging to see and snowboarders participating and joining social pages. that both events were well attended. eNewsletters and SMS snow alerts continue to be an important Mt Baw Baw was again an integral partner in BART with the communication tool for upcoming events, specials and Grade 5 ‘Ski for Free’ once again gaining the attention of promotions. The database is growing steadily with over 3000 schools and families. With over 250 redemptions and an add- members. on campaign funded by BART that facilitated a snowboarder The new iPhone application launched in August also featured focussed radio campaign in the Gippsland region. news feeds and event information, which will facilitate instant Snow Australia participation increased in 2011 – with weekly communications to our customers and will become a vital part phone hook ups and communications with this organisation, of communications and marketing in the future. seeing greater exposure for Mt Baw Baw. The Website is the central information port for marketing communications, all campaigns seek to direct customers to the website. In 2011, 46.72% of visits to the website were from new visitors (Google Analytics statistics) as of December 2011.

Signage Kadri Kutt GROUP MANAGER – MARKETING

The ARMB has continued to implement a framework of signage around the Resort for both Green and White Seasons. Kadri’s Bio Kadri has been working in marketing and advertising for over 15 years on both the client side and now, in her own business. She holds a Bachelor of Arts degree, with a major in English and sub major in Marketing . Her previous roles include the Marketing Management roles for Sportsco, Nova 100, Timezone and Grill’d Healthy Burgers. Kadri’s business, The Creative Bunch, has been running since 2003 and she has worked with many tourism and organisations to create marketing campaigns, events and provide strategic direction for the likes of Luna Park, Phillip Island Nature Parks, Mt Buller, McDonald’s, Barwon Heads Resort and Cadbury Schweppes. Kadri’s extensive marketing background, her love of Mt Baw Baw and enthusiasm to take marketing to the next level at Mt Baw Baw and has seen her become an integral part of the Marketing team providing leadership and marketing campaigns for the past four years Snow Host Program The Resort further developed its Snow Host program after its successful implementation in the 2006 Winter Season. Once again the Snow Host Program was deemed successful. The program saw volunteers visit the mountain predominantly on weekends providing an information service for visitors. Thank you to Mike Forwood for once again coordinating the program, your support was much appreciated. We will be pursuing The Mt Baw Baw Ambassador’s Program through one of the Universities next season.

59 Eliza’s Bio Eliza Lee joined the Marketing team in April after graduating from RMIT University in 2010 with a Bachelor of Business (Management) majoring in International Management. Prior to studying business Eliza completed two years of Urban Planning which had a social science focus. While at University Eliza worked as a supervisor for Peter Rowland Catering and Major Events in Melbourne and also at Century Inn in Traralgon. Growing up in Gippsland, Eliza learnt to ski at Mt Baw Baw and is enjoying living and working close to home. Having travelled throughout Australia and overseas Eliza has Mayor Diane Blackwood Opening Weekend 2011 a strong passion for the tourism and is excited to be working in the industry. Eliza has enjoyed developing relationships with local and regional tourism bodies and is 12 A Caring Community looking forward to engaging further with stakeholders to The Board is committed to ensuring that the Resort cares for develop successful marketing campaign in 2012. its Community. Activities that have occurred this year have included: Building the Community — Processes have been developed in stakeholder meetings to ensure that a two way transfer of information occurs — Regular newsletters have been developed delivering both good and bad news, in a positive framework — Change Management techniques of educating, and supporting stakeholders assisted the progress of the Resort — Incentives for club members were offered to Lodges (discounted food and beverage) — High quality accommodation was provided to ensure that critical stakeholders experienced the Mt Baw Baw life style — Lodges which had fallen into disrepair were rejuvenated and returned to Public Access — Staff Lodges were renamed to reflect our unique Snow Host Program geographical, environmental and historical background.

Key Messages 11 Strategic Awareness Key Messages were developed and promoted to relevant and Engagement audiences. These key messages included: — Affordability The CEO and the Board undertook activities to ensure that the strategic direction of the Board is known and understood. — Safety Activities undertaken included: — Accessibility — ‘Learn To ……’ Gaining Political Support — Key individuals were identified and accessed to ensure that — Family the direction of the Resort was understood and accepted — Fun. — The CEO and other Senior Staff engaged with other Resorts Alliances (nationally and internationally) — The CEO and Board members attended regional and state — Baw Baw Shire Councillors visited the Resort on a number of forums to ensure awareness of policy and attitude change occasions and the CEO and / Board Chair briefed Council on — The CEO and senior staff have commenced discussions a number of strategic matters with ‘local’ Parks staff to engage them into Resort Strategic — Communication occurred between the Board of Management Directions and State Government Departments and Ministers, seeking — An excellent relationship was formed with Phillip Island funding assistance and endorsement Nature Parks. — Regular meetings occurred with commercial groups. — Customer Risk Management was promoted at weekly staff meetings — Snow safe promotion materials were used throughout the Resort 60 — Trip Intentions forms were offered from several venues in the Resort (Village Central, Kelly’s Lodge and the Administration Office) — Occupational Health and Safety Awareness was a major part in the Staff Induction and Orientation Program. Fairness and Respect — Increased signage (utilising symbols) is used in the Resort — Engagement occurred with disadvantaged and diverse populations to ensure that they perceive Mt Baw Baw as being responsive to their needs — Engagement occurred with Vision Australia and Disabled Winter sport to promote Mt Baw Baw as a ‘disability friendly’ Resort — Research was conducted in relation to the provision of equipment to support the needs of people with a disability Frosti Lodge — A policy position was developed in relation to discounting for personal assistance to people with a disability — A review of ‘disability friendly ‘accommodation was conducted Stakeholder Consults — The Board has designed a ‘disability friendly’ accommodation unit as part of the Real Estate Revitalisation Project — Resort Staff were trained to assist people with a disability — Village Central was designed and built to be able to be accessed by people in wheelchairs — Special needs groups were responded to (e.g. People with vision loss). — Occupational Health and Safety Awareness was a major part in the Staff Induction and Orientation Program. History — Legends Lounge has been established in the Alpine Hotel, and historical photos will be expanded in 2011/2012 in Village Central — We will prepare the Resort Interpretation Plan in 2012.

Safety An ‘In House’ training program was developed and implemented, to assist staff to be safety conscious: — Customer Risk Management was promoted at weekly staff meetings — Snow safe promotion materials were used throughout the Resort — Trip Intentions forms were offered from several venues in the Resort (Village Central, Kelly’s Lodge and the Administration Office) 61 Our Regional Tourism Partners

Baw Baw Alpine Tourism Association

Walhalla & Mountain Rivers Tourism Association

West Gippsland Gourmet Tourism Association

Baw Baw Council

West Gippsland Regional Tourism Association

La Trobe City Business Tourism Association

Destination Gippsland Limited

Tourism Victoria

Board of Alpine Resort Tourism

Australian Ski Areas Association

Snow Australia

62 Finance Mt Baw Baw Alpine Resort Management Board Financial Statements for the year ended 31 October 2011

Table of Contents Page Declaration by Accountable Officers ...... 64 Comprehensive Operating Statement ...... 65 Balance Sheet ...... 66 Statement of Changes in Equity ...... 67 Cash Flow Statement ...... 68

Notes to the financial statements Note 1 Statement of Significant Accounting Policies ...... 69-73 Note 2 Income from Transactions...... 74 Note 3 Expenses from Transactions ...... 74 Note 4 Other Economic Flows ...... 74 Note 5 Receivables ...... 74 Note 6 Inventories ...... 74 Note 7 Property, Plant & Equipment ...... 75-76 Note 8 Payables ...... 76 Note 9 Interest Bearing Liabilities ...... 76 Note 10 Provisions ...... 76 Note 11 Revenue Received in Advance...... 77 Note 12 Contributed capital ...... 77 Note 13 Cash Flow Information ...... 77 Note 14 Cash Assets ...... 77 Note 15 Commitments ...... 78 Note 16 Superannuation ...... 79 Note 17 Contingent Assest and Liabilities ...... 79 Note 18 Capital Commitments ...... 79 Note 19 Responsible Persons Related Disclosures ...... 80 Note 20 Financial Instruments ...... 81 Note 21 Remuneration of Auditors ...... 82 Note 22 Economic Dependency ...... 82 Note 23 Events Occurring After Reporting Date ...... 82 Note 24 Equity and Movements in Equity ...... 83

Audit report ...... 84-85

63 Declaration by Accountable Officers In our opinion, the financial reports of Mt Baw Baw Alpine Resort Management Board, comprising of the Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes to and forming part of the financial statements, for the year ended 31 October 2011: a) Present fairly the financial transactions of the Mt Baw Baw Alpine Resort Management Board during the year ended 31 October 2011 and its financial position as at 31 October 2011; and b) Have been prepared in accordance with the Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian equivalents to International Financial Reporting Standards and other mandatory professional reporting requirements. At the date of signing, we are not aware of any circumstances which would render any particulars included in the report to be misleading or inaccurate.At the date of signing, we are not aware of any circumstances which would render any particulars included in the report to be misleading or inaccurate.

SIGNED SIGNED SIGNED

Ralph Booth Leona Turra Kaye Hawkins CHAIRPERSON CHIEF EXECUTIVE OFFICER GROUP MANAGER FINANCE 23 DECEMBER 2011 23 DECEMBER 2011 23 DECEMBER 2011

64 Mount Baw Baw Alpine Resort Management Board Comprehensive Operating Statement FOR THE YEAR ENDED 31 OCTOBER 2011

2011 2010 Note $ $ Income from transactions Interest ...... 2(a) 28,991 16,078 Sale of goods and services ...... 654,302 814,620 Government funding ...... 2(b) 5,391,500 2,874,000 Site & service charges ...... 2(c) 354,767 305,323 Visitor fees ...... 2(d) 1,524,946 2,181,908 Other revenue ...... 2(e) 207,895 275,652 Total income from transactions ...... 8,162,402 6,467,581 Expenses from transactions Employee benefits ...... 3(a) 2,681,284 2,504,106 Depreciation expense ...... 3(b) 794,656 785,170 Interest expense ...... 3(c) 48,894 25,937 Village operations ...... 457,683 361,625 Administration and corporate services ...... 898,364 805,525 Purchase of goods & services ...... 1,519,133 1,468,252 Other expenses from ordinary activities ...... 3(d) 637,354 637,873 Total expenses ...... 7,037,369 6,588,488

Net result from transactions (Net operating balance) 1,125,033 (120,907)

Other economic flows included in net result Net gain/(loss) on non-financial assets ...... 4 532 3,010 Total other economic flows included in net result ...... 532 3,010

Net result ...... 1,125,565 (117,897) Other economic flows - other non-owner changes in equity Changes in asset revaluation reserve ...... 5,210,827 - Total other economic flows - Other non-owner changes in equity ...... 234,150 -

Comprehensive result ...... 6,570,542 (117,897)

The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes.

65 Mount Baw Baw Alpine Resort Management Board Balance Sheet AS AT 31 OCTOBER 2011

2011 2010 Note $ $ Financial Assets Cash assets ...... 14 1,748,415 128,331 Receivables ...... 5 16,302 36,088 Total financial assets ...... 1,764,717 164,419 Non-financial assets Inventories ...... 6 64,623 62,436 Prepayments ...... 121,250 64,669 Property, plant and equipment ...... 7(a) 19,673,126 14,377,790 Total non-financial assets ...... 19,858,999 14,504,894

Total assets ...... 21,623,716 14,669,313

Liabilities Payables ...... 8 220,775 294,902 Interest bearing liabilities ...... 9 673,145 329,858 Provisions ...... 10 339,270 216,236 Revenue in advance ...... 11 82,767 91,100 Total liabilities ...... 1,315,957 932,096

Net assets ...... 20,307,759 13,737,217 Equity Accumulated surplus ...... 24(c) 3,452,617 2,327,053 Asset revaluation reserve ...... 24(b) 11,546,440 6,335,613 Contributed capital ...... 12, 24(a) 5,308,702 5,074,552 Total equity ...... 24(d) 20,307,759 13,737,217

The above Balance Sheet should be read in conjunction with the accompanying notes.

66 Mount Baw Baw Alpine Resort Management Board Statement of Changes in Equity FOR THE YEAR ENDED 31 OCTOBER 2011

Transactions Equity at with owners in Revaluation Equity at 1 November their capacity as surplus on Non- 31 October 2010 Net Result owners Current Assets 2011

Accumulated surplus/(deficit)...... 2,327,052 2,327,052 Net Result...... 1,125,565 1,125,565 2,327,052 1,125,565 3,452,617

Contributions by owners...... 5,074,552 5,074,552 Capital appropriations...... 234,150 234,150 5,074,552 234,150 5,308,702

Physical asset revaluation reserve...... Revaluation (decrement)/increment 6,335,613 6,335,613 6,335,613 5,210,827 11,546,440

Total equity at end of financial year...... 13,737,217 1,125,565 234,150 5,210,827 20,307,759

Transactions Equity at with owners in Revaluation Equity at 1 November their capacity as surplus on Non- 31 October 2009 Net Result owners Current Assets 2010

Accumulated surplus/(deficit)...... 2,444,950 --- 2,444,950 Net Result...... (117,897) (117,897) 2,444,950 (117,897) - - 2,327,052

Contributions by owners...... 4,969,695 --- 4,969,695 Capital appropriations...... - - 104,857 - 104,857 4,969,695 - 104,857 - 5,074,552

Physical asset revaluation reserve...... 6,335,613 --- 6,335,613 Revaluation (decrement)/increment - --- - 6,335,613 - - - 6,335,613

Total equity at end of financial year...... 13,750,257 (117,897) 104,857 - 13,737,217

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

67 Mount Baw Baw Alpine Resort Management Board Cash Flow Statement FOR THE YEAR ENDED 31 OCTOBER 2011

2011 2010 Note $ $ Cash flows from operating activities Cash payments in course of operations ...... (6,495,687) (6,382,432) Cash receipts in course of operations ...... 3,045,372 3,975,321 Cash receipts from Government ...... 5,391,500 2,884,400 Interest paid ...... (48,894) (25,937) Interest received ...... 28,990 16,078 Net cash inflow/(outflow) from operating activities ...... 13 1,921,281 467,430 Cash flows from investing activities Payments from property, plant & equipment ...... (312,642) (618,336) Proceeds from Sale of Assets ...... 532 3,012 Net cash inflow/(outflow) from investing activities ...... (312,110) (615,324) Cash flows from financing activities Proceeds from borrowing ...... - 181,915 Repayment of hire purchases and leases...... (223,237) (129,140) Proceeds from capital contributions by State Government ...... 234,150 104,857 Net cash inflow/(outflow) from financing activities ...... 10,913 157,632

Net (decrease)/increase in cash held ...... 1,620,084 9,738 Cash balance at beginning of year...... 128,331 118,593 Cash balance at end of year ...... 14 1,748,415 128,331

The above Cash Flow Statement should be read in conjunction with the accompanying notes.

68 Notes to the Financial Statements e) Property, plant and equipment FOR THE YEAR ENDED 31 OCTOBER 2011 Acquisition The purchase method of accounting is used for all acquisitions of Note 1: assets, being the fair value of assets provided as consideration at the date of acquisition plus any incidental costs attributable to the Statement of significant accounting policies acquisition. Fair value is the amount for which the asset could be a) Statement of compliance exchanged between willing parties in an arm’s length transaction. The financial report is a general purpose financial report which has Assets acquired at no cost, or for nominal consideration, are been prepared on an accrual basis in accordance with the Financial recognised at their fair value at the date of acquisition. Management Act 1994 and applicable Australian Accounting Where assets are constructed by the Board, the cost at which Standards and Interpretations (AASs). AASs include the Australian they are recorded includes all materials used in construction, equivalents to International Financial Reporting Standards. In direct labour, borrowing costs incurred during construction, and complying with AASs, the Board has, where relevant, applied those an appropriate share of directly attributable variable and fixed paragraphs applicable to not-for-profit entities. overheads. b) Basis of preparation Subsequent to initial recognition as assets, land, buildings and The financial report has been prepared on a historical cost basis, infrastructure assets (water, sewerage and land management (car except for the revaluation of certain non-current assets and financial parks, roads, and ski parks and trails)) are measured at their fair instruments. Cost is based on the fair values of the consideration value, being the amount for which the assets could be exchanged given in exchange for assets. between knowledgeable, willing parties in an arm’s length transaction. At balance date, the Board reviewed the carrying value In the application of AASs, management is required to make of the individual classes of assets measured at fair value to ensure judgments, estimates and assumptions about carrying values that each asset materially approximated its fair value. of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on All other non-current physical assets are to be measured at fair historical experience and various other factors that are believed to value. be reasonable under the circumstance, the results of which form Repairs & maintenance the basis of making the judgments. Actual results may differ from Plant and equipment maintenance is managed as part of an these estimates. ongoing maintenance program. The costs of this maintenance The estimates and underlying assumptions are reviewed on an are charged as expenses as incurred, except where they related to ongoing basis. Revisions to accounting estimates are recognised the replacement of a major component of an asset, in which case in the period in which the estimate is revised if the revision affects the costs are capitalised and depreciated. Other routine operating only that period or in the period of the revision, and future periods if maintenance, repair costs and minor renewals are also charged as the revision affects both current and future periods. expenses as incurred. Accounting policies are selected and applied in a manner which Revaluations ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the Non-current physical assets measured at fair value are revalued substance of the underlying transactions or other events is in accordance with FRD 103D. This revaluation process normally reported. occurs every five years, based upon the asset’s Government Purpose Classification. Revaluation increments or decrements arise The accounting policies set out below have been applied in from differences between carrying value and fair value. preparing the financial report for the year ended 31 October 2011 and the comparative information presented for the year ended 31 Revaluation increments are credited directly to equity in the asset October 2010. revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset c) Period accounting and comparatives previously recognised as an expense in the net result, the increment The accounting period covered by this financial report is 1 is recognised as income in determining the net result. November 2010 to 31 October 2011. Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists d) Events after reporting date in the asset revaluation reserve in respect of the same class of Assets, liabilities, income or expenses arise from past transactions assets, they are debited to the revaluation reserve. or other past events. Where the transactions result from an agreement between the Board and other parties, the transactions Revaluation increases and revaluation decreases relating to are only recognised when the agreement is irrevocable at or before individual assets within an asset class are offset against one balance date. Adjustments are made to amounts recognised in the another within that class but are not offset in respect of assets in financial statements for events which occur after the reporting date different classes. and before the date the statements are authorised for issue, where Revaluation reserves are not normally transferred to accumulated those events provide information about conditions which existed at surplus on de-recognition of the relevant asset. the reporting date. Note disclosure is made about events between Land, building and infrastructure assets were reviewed for material the reporting date and the date the statements are authorised for movements according to FRD103D. A material movement in the issue where the events relate to condition which arose after the carrying value of land had occurred since the last independent reporting date and which may have a material impact on the results valuation performed in 2006/07. A full revaluation was undertaken of subsequent years. in the 2010/11 year.

69 Depreciation and amortisation of non-current assets (ii) Long service leave Depreciation is provided on property, plant and equipment, Liability for long service leave (LSL) is recognised in the provision including freehold buildings but excluding land. Depreciation is for employee benefits generally calculated on a straight-line basis so as to write off the — Current liability unconditional LSL (representing 10 or more net cost or other revalued amount of each asset over its expected years of continuous service for staff under the resorts EBA useful life to its estimated residual value. Leasehold improvements and 7 and more years of continuous service for executives) is are depreciated over the period of the lease or estimated useful disclosed as a current liability even where the Board does not life, whichever is the shorter, using the straight-line method. The expect to settle the liability within 12 months because it will estimated useful lives, residual values and depreciation method not have the unconditional right to defer the settlement of the are reviewed at the end of each annual reporting period. Note 7(b) entitlement should an employee take leave within 12 months. provides details on the estimated useful lives that are used in the The components of this current LSL liability are measured at: calculation of depreciation on property, plant and equipment. — present value - component that the Board does not expect to settle within 12 months; and Sale of fixed assets — nominal value - component that the Board expects to settle within 12 months. In accounting for the sale of fixed assets, only the net profit/ (loss) on the disposal is shown in the Comprehensive Operating — Non current liability – conditional LSL (representing less than Statement as required under AAS. 10 years of continuous service for staff under the resorts EBA and less than 7 years of continuous service for executives) is f) Impairment of assets disclosed as a non-current liability. There is an unconditional All assets are assessed annually for indications of impairment, right to defer the settlement of the entitlement until the except for: inventories (refer Note 1(g)); employee has completed the requisite years of service. This non current LSL liability is measured at present value. If there is an indication of impairment, the assets concerned are (iii) Termination benefits tested as to whether their carrying value exceeds their possible Termination benefits are payable when employment is terminated recoverable amount. Where an asset’s carrying value exceeds its before the normal retirement date, or when an employee accepts recoverable amount, the difference is written off by a charge to the voluntary redundancy in exchange for these benefits. The Board Comprehensive Operating Statement except to the extent that the recognises termination benefits when it is demonstrably committed write-down can be debited to an asset revaluation reserve amount to either terminating the employment of current employees applicable to that class of asset. according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to It is deemed that, in the event of the loss of an asset, the future encourage voluntary redundancy. Benefits falling due more than 12 economic benefits arising from the use of the asset will be replaced months after balance sheet date are discounted to present value. unless a specific decision to the contrary has been made. The (iv) Employee benefits on-costs recoverable amount for most assets is measured at the higher Employee benefits on-costs (payroll tax, workers compensation, of depreciated replacement cost and fair value less costs to sell. superannuation, annual leave and LSL accrued while on LSL taken Recoverable amount for assets held primarily to generate net cash in service) are recognised separately from provision for employee inflows is measured at the higher of the present value of future benefits. cash flows expected to be obtained from the asset and fair value less costs to sell. i) Income recognition g) Inventories Revenue is recognised in accordance with AASB 118. Income is recognised as revenue to the extent it is earned. Unearned income Stores and work in progress are stated at the lower of cost and at reporting date is reported as revenue received in advance. net realisable value. Cost is based on the first-in, first-out principle and includes expenditure incurred in acquiring the inventories Government Grants and Other Transfers of Income (other than and bringing them to their existing condition. Net realisable value contributions by owners) is determined on the basis of the Boards’ normal selling pattern. In accordance with AASB 1004 Contributions, government grants Expenses associated with marketing and selling are deducted to and other transfers of income (other than contributions by owners) determine net realisable value. are recognised as income when the Mount Baw Baw Alpine Resort Management Board gains control of the underlying assets h) Employee benefits irrespective of whether conditions are imposed on the Mount Baw (i) Wages and salaries, annual leave and sick leave Baw Alpine Resort Management Board’s use of the contributions. Liabilities for wages and salaries, including non-monetary benefits, Contributions are deferred as income in advance when the annual leave and accumulating sick leave expected to be settled Mount Baw Baw Alpine Resort Management Board has a present within 12 months of the reporting date are recognised in the obligation to repay them and the present obligation can be reliably provision for employee benefits in respect of employee services up measured. to the reporting date, classified as current liabilities and measured Visitor fees at their nominal values. Revenue is recognised at the point of sale, when services are Those liabilities that are not expected to be settled within 12 months rendered or when a rate/tariff is fixed for service charges levied are recognised in the provision for employee benefits as current under Section 13 of the Alpine Resorts (Management) Act 1997. liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate Site & service charges expected to apply at the time of settlement. Site rental is recognised under the terms and conditions of each lease and in accordance with the Boards’ role as a Committee of Management of any Crown land deemed to be permanently reserved under the Crown Lands Reserve Act 1978. Service charges are imposed on an annual basis, and revenue is recognised as income when an invoice is raised by the Board. 70 Other revenue inception of the lease. The lease asset is depreciated over the Grants and contributions for capital works from all sources shorter of the estimated useful life of the asset or the term of the are recognised as operating revenue. However, grants and lease. Minimum lease payments are allocated between the principal contributions received from Victorian State Government that component of the lease liability, and the interest expense calculated are deemed as being in the nature of owner’s contributions are using the interest rate implicit in the lease, and charged directly accounted for as Equity – Contributed Capital, in accordance with to the Comprehensive Operating Statement. Contingent rentals FRD 119 Contributions by Owners. associated with finance leases are recognised as an expense in the period in which they are incurred. j) Cash and cash equivalents Operating lease payments, including any contingent rentals, Cash and deposits, including cash equivalents, comprise cash are recognised as an expense in the Comprehensive Operating on hand and cash at bank, deposits at call and highly liquid Statement on a straight-line basis over the lease term, except where investments with an original maturity of three months or less, another systematic basis is more representative of the time pattern which are readily convertible to known amounts of cash and are of the benefits derived from the use of the leased asset. subject to insignificant risk of changes in value. Details of hire purchase commitments are shown in Note 15 For the cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as interest r) Goods and services tax bearing liabilities on the balance sheet. Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from k) Support payments the taxation authority. In this case it is recognised as part of the Support payments received from the Department of Sustainability cost of acquisition of the asset or as part of the expense. and Environment during the year ended 31 October 2011 were Receivables and payables are stated inclusive of the amount of GST brought to account upon receipt 2011: $5,391,500 (2010: receivable or payable. The net amount of GST recoverable from, or $2,740,000) payable to, the taxation authority is included with other receivables l) Receivables or payables in the balance sheet. Receivables consist predominantly of debtors in relation to goods Cash flows are presented on a gross basis. The GST components and services, accrued investment income and GST input tax credits of cash flows arising from investing or financing activities which recoverable. are recoverable from, or payable to the taxation authority, are Receivables are recognised initially at fair value and subsequently presented as operating cash flow. measured at amortised cost, using the effective interest rate Commitments and contingent assets and liabilities are presented on method, less any accumulated impairment. a gross basis. A provision for doubtful receivables is made when there is objective s) Provisions evidence that the debts may not be collected and bad debts are Provisions are recognised when the Board has a present obligation, written off when identified. the future sacrifice of economic benefits is probable, and the m) Payables amount of the provision can be measured reliably. Payables represent liabilities for goods and services provided to The amount recognised as a provision is the best estimate of the the Board that are unpaid at the end of the financial year. Payables consideration required to settle the present obligation at reporting are initially measured at fair value, being the cost of the goods and date, taking into account the risks and uncertainties surrounding services, and then subsequently measured at amortised cost. the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the n) Interest bearing liabilities present value of those cash flows. Interest bearing liabilities are initially measured at fair value, being the cost of the interest bearing liabilities, net of transaction costs. t) Commitments Subsequent to initial recognition, interest bearing liabilities are Commitments are disclosed at their nominal value and inclusive of measured at amortised cost with any difference between the initial the GST payable. recognised amount and the redemption value being recognised in u) Contingent assets and contingent liabilities profit and loss over the period of the interest bearing liability using Contingent assets and contingent liabilities are not recognised the effective interest rate method. in the balance sheet, but are disclosed by way of a note and, if o) Finance costs quantifiable, are measured at nominal value. Contingent assets Finance costs are recognised as expenses in the period in which and liabilities are presented inclusive of GST receivable or payable they are incurred and include: respectively. — interest on bank overdrafts and short-term and long-term v) New accounting standards for application in future borrowings; periods — amortisation of ancillary costs incurred in connection with the Certain new AASs have been published that are not mandatory for arrangement of borrowing; and the 31 October 2011 reporting period. DTF assesses the impact — finance lease charges; of these new standards and advises of their applicability and early p) Contributed capital adoption where applicable. Contributions to the Board are recognised as contributed capital As at 31 October 2011, the following standards and interpretations with the approval of the Minister for Finance and when the transfer (applicable to departments) had been issued but were not satisfies the definition of contribution by owners as per FRD 119. mandatory for the financial year ending 31 October 2011. The Contributed capital is disclosed in the Statement of changes in Board has not early adopted these standards. Equity and Note 12. q) Accounting for leases and hire purchases Finance leases are recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the 71 Standard/Interpretation Summary Applicable for Impact on financial statements annual reporting periods beginning on AASB 9 Financial instruments This standard simplifies Beginning 1 Jan 2013 Detail of impact is still being requirements for the assessed. classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial instruments: recognition and measurement (AASB 139 Financial Instruments: recognition and measurement).

AASB 124 Related party Government related entities Beginning 1 Jan 2011 Preliminary assessment suggests disclosures (Dec 2009) have been granted partial that impact is insignificant. However, exemption with certain the statutory authority is still disclosure requirements. assessing the detailed impact and whether to early adopt.

AASB 2009-5 Further amendments Some amendments will result Beginning 1 Jan 2010 Terminology and editorial to Australian Accounting in accounting changes for changes. Impact minor. Standards arising from the annual presentation, recognition or improvements project [AASB 5, 8, measurement purposes, while 101, 107, 117, 118, other amendments will relate 136 and 139] to terminology and editorial changes.

AASB 2009-8 Amendments to The amendments clarify the Beginning 1 Jan 2010 No impact. Australian Accounting Standards scope of AASB 2. AASB 2 does not apply to statutory – group cash-settled share-based authority ; consequently this payment transactions [AASB 2] standard does not apply.

AASB 2009-9 Amendments to Applies to entities adopting Beginning 1 Jan 2010 No impact. Australian Accounting Standards – Australian Accounting Relates only to first time adopters of additional exemptions for first-time Standards for the first time, Australian Accounting Standards. adopters [AASB 1] to ensure entities will not face undue cost or effort in the transition process in particular situations.

AASB 2009-10 Amendments to The Standard makes Beginning 1 Feb 2010 No impact. Australian Accounting Standards – amendments to AASB 132, The statutory authority does not classification of rights issues [AASB stating that rights issues must issue rights, warrants and options, 132] now be classed as equity rather consequently the amendment does than derivative liabilities. not impact on the statements.

72 AASB 2009-11 Amendments to This gives effect to Beginning 1 Jan 2013 Detail of impact is still being Australian Accounting Standards consequential changes arising assessed. arising from AASB 9 [AASB 1, 3, 4, from the issuance of AASB 9. 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12]

AASB 2009-12 Amendments to This standard amends AASB 8 Beginning The amendments only apply Australian Accounting Standards to require an entity to exercise 1 Jan 2011 to those entities to whom [AASB 5, 8, 108, 110, 112, 119, judgement in assessing whether AASB 8 applies, which are for- 133, 137, 139, 1023 and 1031 and a government and entities known profit entities except for-profit Interpretations 2, 4, 16, 1039 and to be under the control of that government departments. 1052] government are considered a single customer for purposes of certain operating segment disclosures. This standard also makes numerous editorial amendments to other AASs. AASB 2009-13 Amendments to Consequential amendment to Beginning 1 Jul 2010 The statutory authority does not Australian Accounting Standards AASB 1 arising from publication extinguish financial liabilities with arising from interpretation 19 of equity instruments, therefore [AASB 1] Interpretation 19. requirements of Interpretation 19 and related amendments have no impact.

AASB 2009-14 Amendments Amendment to Interpretation Beginning 1 Jan 2011 Expected to have no significant to Australian Interpretation – 14 arising from the issuance impact. Prepayments of a minimum of prepayments of a minimum funding requirement funding requirement. [AASB Interpretation 14]

AASB 2010-1 Amendments to This amendment provides Beginning 1 July 2010 These exemptions are unlikely to Australian Accounting Standards – limited exemptions from the have an impact on the statutory Limited Exemption from Comparative requirements of adhering to authority because it is not a first AASB 7 Disclosures for First-time AASB 1 and AASB 7 that arise time adoption. Adopters [AASB 1 & AASB 7] from AASB 2009-2.

w) Rounding Unless otherwise stated, amounts are rounded to the nearest dollar.

73 Note 2: Income from transactions Note 5: Receivables Current Debtors 15,853 36,088 Revenue includes: Sundry Debtors 449 - (a) Interest Total Receivables 16,302 36,088 Interest on bank deposits 28,991 16,078 Total interest revenue 28,991 16,078 (b) Revenue from Government Note 6: Inventories DSE support payments 5,391,500 2,740,000 Current inventories Other Government Funding - 134,000 Supplies & consumables (at cost) 57,630 47,392 Total revenue from Government 5,391,500 2,874,000 Fuel (at cost) 6,993 15,044 (c) Site & service charges Total Inventories 64,623 62,436 Annual service charge 253,171 244,752 Site rental 101,596 60,571 Total revenue from site & service charges 354,767 305,323 (d) Visitor fees Resort entry fees 393,782 569,838 Ski field income 863,507 1,357,146 Accommodation/Guest Services 194,046 201,591 Toboggan levy 30,943 38,055 Miscellaneous 42,668 15,278 Total revenue from visitor fees 1,524,946 2,181,908 (e) Other revenue Marketing 47,547 43,504 Miscellaneous 23,148 31,808 Commission received 55,004 71,375 Staff accommodation 82,196 128,965 Total other revenue 207,895 275,652

Note 3: Expenses from transactions

(a) Employee benefits Post employee benefits Defined contributions 214,207 242,873 superannuation plans Salaries, wages, annual leave and 2,200,802 2,090,983 long service leave Back pay & Long Service Leave 63,191 - Accruals Other – FBT and Payroll Tax 203,084 170,250 Total employee benefits 2,681,284 2,504,106 (b) Depreciation Depreciation of non-current assets 794,656 785,170 (c) Interest expenses Hire purchase interest 47,405 18,235 Other interest 1,489 7,702 Total interest expense 48,894 25,937 (d) Other operating expenses Audit fees – Note 21 17,950 17,500 Insurance 109,028 87,392 Marketing 424,614 351,285 Other expenses from ordinary 85,762 181,696 activities Total other expenses 637,354 637,873

Note 4: Other economic flows included in net result Net (loss)/gain on sale of non-current assets Net gain on disposal of physical asset 532 3,010 74 Note 7(a): Reconciliations – Property, Plant & Equipment Reconciliations of the carrying amounts of each class of property and equipment at the beginning and end of the current and previous financial year are set out below: 2011 Carrying Carrying amount – start Depreciation amount – end of year Additions Disposals Adjustment Revaluation expense of year Land 3,167,790 338,210 3,506,000 Buildings & Improvements 6,037,801 1,409 1,278,892 (237,102) 7,081,000 Water & sewerage infrastructure 1,948,707 330,958 (102,465) 2,177,200 Land Management 2,185,337 794,413 (102,650) 2,877,100 Plant, Vehicles & Equipment 771,740 861,640 1,373 (288,227) 1,346,526 Ski Lifts 211,090 70,068 2,468,354 (64,212) 2,685,300 Capital Work in Progress 55,324 (55,324) - Total 14,377,789 933,117 - (53,951) 5,210,827 (794,656) 19,673,126

2010 Land 3,167,790 3,167,790 Buildings & Improvements 6,014,201 252,930 (229,330) 6,037,801 Water & sewerage infrastructure 2,035,794 15,309 (102,396) 1,948,707 Land Management 2,181,277 104,783 (100,723) 2,185,337 Plant, Vehicles & Equipment 792,481 306,399 (56,291) (270,849) 771,740 Ski Lifts 295,001 (2,041) (81,870) 211,090 Capital Work in Progress 58,079 (2,755) 55,324 Total 14,544,623 679,421 (58,332) (2,755) - (785,168) 14,377,789

Note 7(b): Property, plant and equipment The following useful lives of assets are used in the calculation of depreciation: Buildings and improvements 2 to 50 years Plant and equipment 5 to 10 years Land management 6 to 44 years Water 11 to 20 years Sewerage 30 to 40 years Ski Lifts 5 to 10 years

Aggregate depreciation allocated and recognized as an expense during the year Buildings and improvements 237,102 229,330 Plant, Vehicles and equipment 288,227 270,849 Land management 102,650 100,723 Water & Sewerage 102,465 102,396 Ski Lifts 64,212 81,870 Total depreciation expense 794,656 785,168

75 Note 7(c) Property, plant and equipment Note 8: Payables Land Current Payables At independent valuation Contractual 31/10/11 3,506,000 3,167,790 Creditors 94,794 97,204 Accruals 72,286 103,447 Buildings & Improvements 167,080 200,651 At independent valuation Statutory 31/10/11 7,081,000 3,936,000 GST Payable (12,173) 2,029 Accumulated depreciation (324,321) PAYG-Withholding payable 38,522 62,128 3,611,679 Superannuation payable 27,346 30,094 At cost 2,959,206 53,695 94,251 Accumulated depreciation (533,084) Total payables 220,775 294,902 2,426,122 Total Buildings and Note 9: Interest bearing liabilities improvements 7,081,000 6,037 801 Current Net hire purchase liability 133,778 54,608 Water & Sewerage infrastructure Net finance lease liability 45,280 23,073 At independent valuation 179,058 77,681 31/10/11 2,177,200 2,228,000 Non-current Accumulated depreciation (297,810) Net hire purchase liability 445,097 160,112 1,930,190 Net finance lease liability 48,990 92,065 At fair value 24,478 494,087 252,177 Accumulated depreciation (5,961) Total interest bearing liabilities 673,145 329,858 18,517 Total Water & Sewerage infrastructure 2,177,200 1,948,707 Note 10: Provisions Current Employee Benefits Land Management Unconditional and expected to be At independent valuation settled within 12 months 223,306 149,342 31/10/11 2,877,100 10,244 Unconditional and expected to be Accumulated depreciation (5,789) settled after 12 months 57,118 22,295 4,455 280,424 171,637 At fair value 104,782 Provisions related to employee benefit Accumulated depreciation (1,813) on-costs 102,969 Unconditional and expected to be At independent valuation settled within 12 months 32,053 36,433 31/10/07 2,377,876 Unconditional and expected to be Accumulated depreciation (299,963) settled after 12 months 8,135 3,953 2,077,913 40,188 40,386 Total Land Management 2,877,100 2,185,337 Total current provisions 320,612 212,023

Plant, Vehicles and Equipment Non-current At cost 2,790,960 1,927,948 Employee benefits 16,224 3,581 Accumulated depreciation (1,444,434) (1,156,207) Provisions related to employee Total Plant, Vehicles and Equipment 1,346,526 771,741 benefit on-costs 2,434 632 Total non-current provisions 18,658 4,213 Total provisions 339,270 216,236 Ski Lifts Employee benefits and related At independent valuation 2,685,300 2,400 (a) on-costs 31/10/11 Current employee benefits Accumulated depreciation (1,800) Annual leave entitlements 600 (including leave loading) 133,810 115,373 At fair value 826,744 Time in Lieu entitlements 22,442 - Accumulated depreciation (616,254) Back pay entitlements 49,796 - 210,490 Unconditional long service leave entitlements 74,375 56,264 Total Ski Lifts 2,685,300 211,090 Non-current employee benefits Conditional long service leave entitlements 16,225 3,581 76 Total employee benefits 296,648 175,218 Note 14: Cash Assets Current on-costs 40,188 40,386 Cash at the end of the year, as shown in the Cash Flow Statement, is Non-current on-costs 2,434 632 reconciled to the related items in the Balance Sheet as follows: Total on-costs 42,622 41,018 GeoTechnical Works Fund 203,230 68,000 Total employee benefits and related Asset Replacement Fund - 60,331 on-costs 339,270 216,236 Employee Entitlements Fund - - Operational Funds 1,545,185 - Note 11: Revenue received in advance Total 1,748,415 128,331 Current Asset replacement fund balance should be $322,008 and Employee Lease revenue received in advance 8,333 8,333 entitlements fund should be $94,646. As there were insufficient Other revenue - - operational funds available to cover these amounts, the total 8,333 8,333 employee entitlements fund and asset replacement fund are being under-funded (under Board direction). Non-current Lease revenue received in advance 74,434 82,767 74,434 82,767

Aggregate carrying amount of revenue received in advance Current 8,333 8,333 Non-current 74,434 82,767 82,767 91,100

Note 12: Contributed Capital The equity from the Alpine Resorts was allocated to the newly formed bodies by the Minister for Conservation and Land Management pursuant to section 59 of the Alpine Resort (Management) Act 1997. The allocation received from the Alpine Resorts Commission included revenue and capital items. An amount of $4,066,078 represents the capital portion of the contribution received form the Alpine Resorts Commission as at 30 April 1998. (This amount is included in the total contributed capital at 31 October 2010 of $5,074,552.) Equity and movements in equity are summarised in the Statement of changes in Equity. Pursuant to Financial Reporting Direction No 2A (FRD 119) under the Financial Management Act 1994, during the reporting period, the Board received $104,857 of Contributed capital form the Department of Sustainability and Environment (nil capital contribution received 2009).

Note 13: Cash flow information Reconciliation of results to net cash inflow/ (outflow) from operating activities Net results 1,125,565 (117,897) Non-cash movements Depreciation & Amortisation 794,656 785,168 Loss/(gain) on disposal of Assets (532) (3,010) Movements in assets and liabilities Decrease/(Increase) in Receivables 19,786 118,212 Decrease/(Increase) in Inventories (2,187) 29,195 Decrease/(Increase) in Prepayments (56,581) (9,761) Increase/(Decrease) in Payables (74,127) (362,786) Increase/(Decrease) in Provisions 123,034 36,761 Increase/(Decrease) in Revenue received in advance (8,333) (8,452) Net Cash inflow/(outflow) from operating activities 1,921,281 467,430

77 Note 15: Commitments Revenue Operating Leases – Crown Land (a) For operating leases that are non-cancellable leases, the minimum lease payments are expected within the following periods: - Not later than one year 55,784 46,838 - Later that one year but not later than five years 194,898 158,642 - Later than five years 628,230 196,210 878,912 401,690 Leasing powers are defined in Section 7 of the Alpine Resorts (Management) Act 1997. Lease terms of up to 99 years are permissible under this section. The Board also has the power to grant leases up to 21 years as a Committee of Management under the Crown Land (Reserves) Act 1978. New leases are granted on the basis that the rental will be negotiated at market value. All renewal of leases and/or variations of leases will be granted on the basis that the rental will be negotiated at market value.

Payment of Rentals: New Leases The Site Holder shall pay to the Board by either of the following methods: (a) Payment of the site value of the land as determined by valuation at the time of the execution of the lease as a single up-front payment; or (b) An initial payment of the site holders interest (determined by valuation) and an ongoing annual market rent (determined by valuation) for the term of the lease. Existing Leases Rental of a lease shall be achieved by payment of market rent (determined by valuation) for the term of the lease. (c) Operating Leases Commitments in relation to leases contracted for at the reporting date but not recognised in the financial report as liabilities, payable: - Not later than one year 25,497 49,028 - Later that one year but not later than five years 41,280 21,668 66,777 70,696 Represented by: Non-cancellable operating leases 66,777 70,696 (d) Finance Leases Commitments in relation to finance leases are payable as follows: - Not later than one year 50,074 34,397 - Later that one year but not later than five years 50,029 102,808 Minimum Lease payments 100,103 137,205 Less: Future finance charges (5,833) (22,067) 94,270 115,138 Representing finance lease liabilities: Current 45,280 23,073 Non-current 48,990 92,065 94,270 115,138

(e) Hire Purchase Commitments in relation to Hire Purchases are payable as follows: - Not later than one year 179,651 71,969 - Later that one year but not later than five years 460,091 180,851 - Later than five years 69,892 - Minimum Hire Purchase payments 709,634 252,820 Less: Future finance charges (130,759) (38,100) 578,875 214,720 Representing Hire Purchase liabilities: Current 133,778 54,608 Non-current 445,097 160,112 578,875 214,720

78 Note 16: Superannuation Employee superannuation contributions The Board does not have any unfunded superannuation liability as full contribution has been made by the Board to the relevant funds. Superannuation contributions for the reporting period are included as part of the employee benefits in the Operating Statement. Type of funds and contributions made The name and details of the employee superannuation funds and contributions made by the Board are as follows: Contri- bution Contribution for Contribution for Name of Fund Type Rate the year 2011 the year 2010 AMP Life Accumulated 9% 7,054 8,548 Australian Super Accumulated 9% 10,407 6,615 AXA Accumulated 9% 1,450 - BT Super for Life Accumulated 9% 8,091 6,023 Care Super Accumulated 9% 1,727 - Cbus Accumulated 9% 3,471 5,928 Colonial Mutual Superannuation Accumulated 9% 5,643 2,309 Commonwealth Life Personal Superannuation Accumulated 9% 3,823 3,628 GSO Superannuation Accumulated 9% 8,496 12,284 HESTA Accumulated 9% - 2,366 HostPlus Super Accumulated 9% 12,139 12,121 ING Superannuation Fund Accumulated 9% - 1,018 MLC Masterkey Accumulated 9% 2,667 - Norwich Union Accumulated 9% 1,556 - REST Accumulated 9% 4,518 6,148 Tasplan Accumulated 9% 2,937 5,360 Telstra Super Accumulated 9% 1,655 4,673 Turra Superannuation Fund Accumulated 9% 42,938 57,329 VicSuper Accumulated 9% 117,389 100,069 Vision Super Accumulated 9% - 3,930 Other Accumulated 9% 5,850 2,957 Total 241,811 241,307 The requirements of the Superannuation Industry (Supervision) Act 1993 are fully complied with As at 31 October 2011 there were outstanding amounts owing to these schemes of $27,346 (2010 $30,094) (included in creditors and accruals at Note 8)

Note 17: Contingent assets and liabilities At balance date the Board had no contingent assets or liabilities.

Note 18: Capital commitments At balance date the Board had no capital commitments.

79 Note 19: Responsible Persons Related Disclosures (a) Responsible persons The names of the persons who were responsible persons at any time during the financial year are: Responsible Minister The Hon. Ryan James Smith MP, Minister for Environment & Climate Change From 2 Dec To 31 Oct 2011 2010 The Hon. Gavin Jennings MP, Minister for Environment & Climate Change From 1 Nov To 1 Dec 2010 2010 Board Members Mr Ralph Booth (Chairperson) Ms Vicky Papachristos (Deputy Chair) Mr Wally Tabensky Mr Randall Cohen Ms Jacqueline McLeod (appointed 27th October 2011) Ms Maria Pilipasidis (ceased 31st March 2011) Accountable Officer Ms Leona Turra - CEO (b) Remuneration The number of Responsible Persons whose remuneration from the Board was within the specified bands are as follows: No No $0 to $9,999 5 5 $10,000 to $19,999 1 1 $170,000 to $179,999 - - $200,000 to $209,999 1 1 Total 77

The remuneration received or due and receivable by the Responsible persons in connection with the management of the Resort during the reporting period was: $243,659 $251,087 The relevant amounts relating to the Minister are reported separately in the Department of Premier and Cabinet’s Financial Statements. (c) Other transactions Ms Leona Turra and her partner own Tanjil creek Lodge located at Mount Baw Baw Alpine Resort. For the year the Lodge received income totalling $ 48,418 (2010 $50,560) and paid the resort $ 30,826 (2010 $24,126) for maintenance, site and service fees and snow levies. All maintenance works performed by resort staff are charged at commercial rates. As at reporting date, the resort owes Tanjil creek Lodge $ nil. (d) Executive Remuneration Table 1: Number of executive officers classifield into ‘Ongoing’ and ‘Special Projects’ All Ongoing Special Projects No. Var No. Var No. Var Executive Officers 202000

Total 202000

Table 2: Breakdown of executive officers into gender for ‘Ongoing’ and ‘Special Projects’ Ongoing Special Projects Male Female Vacancies Male Female Vacancies No. Var No. Var No. No. Var No. Var No. Executive Officers 0 0 2 0 0 0 0 0 0 0

Total 0020000000

80 Table 3: Reconciliation of executive numbers 2011 2010 Executive with renumeration over $100,000 2 2 Add Vacancies 0 0 Executives employed with total renumeration below $100,000 0 0 Accountable Officer (Secretary) 0 0 Less Seperations 0 0 Total executive number in June 2 2

Note 20: Financial Instruments (a) Interest Rate Risk The Board’s exposure to interest rate risk and the effective weighted average interest rate for each class of financial assets and liabilities is set out below: Fixed Interest Rate Floating Interest Rate 1 year or Over 1 to 5 More than 5 Non - Int 2011 $ less $ years $ years Bearing $ Total $ Financial Assets Cash 14 1,748,415 - - - - 1,748,415 Receivables 5 - - - - 16,302 16,302 Total 1,748,415 - - - 16,302 1,764,717 Weighted Average Interest Rate 4.5% Financial Liabilities Payables 8 - - - - 220,775 220,775 Interest Bearing 9 - 179,058 494,087 - - 673,145 Total - 179,058 494,087 - 220,775 893,920 Net financial assets(liabilities) 1,748,415 (179,058) (494,087) - (204,473) 870,797 Floating Interest Rate 1 year or Over 1 to 5 More than 5 Non- Int 2010 $ less $ years $ years Bearing $ Total $ Financial Assets Cash 14 128,331 - - - - 128,331 Receivables 5 - - - - 36,088 36,088 Total 128,331 - - - 36,088 164,419 Weighted Average Interest Rate 1.97% Financial Liabilities Payables 8 - - - - 200,651 200,651 Interest Bearing Liabilities 9 - 106,365 223,492 - - 329,857 Total - 106,365 223,492 - 200,651 530,508 Net financial assets(liabilities) 128,331 (106,365) (223,492) - (164,563) (36,689)

(b) Credit Risk Exposure Credit risk arises from the financial assets of the Board, which comprise cash and cash equivalents, trade and other receivables. The Board’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the Board. Credit risk is measured at fair value and is monitored on a regular basis.

(c) Liquidity Risk Liquidity arises when the Board is unable to meet its financial obligations as they fall due. The Board operates under the Government fair policy of settling financial obligations within 30 days and in the event of a dispute, will make payment within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets.

(d) Market Risk The Board’s exposures to market risk are primarily through interest rate risk with almost no exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below: 81 Interest rate risk Exposure to interest rate risk is insignificant and might arise primarily through the Board’s interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial liabilities, the Board mainly undertake financial liabilities with relatively even maturity profiles. The Board’s interest bearing liabilities are managed by Treasury Bank of Victoria and any movement in interest rates are monitored on a daily basis. The Board’s exposure to interest rate risk is set out in the table below. Sensitivity disclosure analysis Taking into account past performance, future expectations, economic forecasts, and managements knowledge and experience of the financial markets, the Board believes the following movements are ‘reasonably possible’ over the next 12 months. Interest Rate Risk Carrying -2% +2% 2011 Amount Net Result Equity Net Result Equity Financial Assets Cash 1,748,415 (34,968) (34,968) 34,968 34,968 Financial Liabilities Interest Bearing Liabilities (a) 673,145 - - - - Total Increase/(Decrease) (34,968) (34,968) 34,968 34,968

Carrying -2% +2% 2010 Amount Net Result Equity Net Result Equity Financial Assets Cash 128,331 (2,566) (2,566) 2,566 2,566 Financial Liabilities Interest Bearing Liabilities (a) 329,857 - - - - Total Increase/(Decrease) (2,566) (2,566) 2,566 2,566 (e) Comparison between carrying amount and fair value Carrying Amt Fair Value Carrying Amt Fair Value 2011 2011 2010 2010 Financial Assets Cash 1,748,415 1,748,415 128,331 128,331 Receivables 16,302 16,302 36,088 36,088 Total Financial Assets 1,764,717 1,764,717 164,419 164,419

Financial Liabilities Payables 220,775 220,775 294,902 294,902 Interest Bearing Liabilities 673,145 673,145 329,858 329,858 Total Financial Liabilities 893,920 893,920 624,760 624,760

Note 21: Remuneration of Auditors Audit fees paid or payable to the Victorian Auditor General’s Office for the audit of the Board’s financial reports. The balance of $17,950 represents accrued audit fees for 2011. Audit Fees $17,950 $17,500

Note 22: Economic Dependency The Board is dependent on the on-going financial support of the Victorian State Government to ensure the Board is able to meet its obligations as and when they fall due. Accordingly these financial statements have been prepared on a going concern basis.

Note 23: Events Occurring After Reporting Date There was no event that occurred after balance date that would have a material effect on the accounts.

82 Note 24: Equity and Movements in Equity (a) Contributed Capital Total contributed capital at the start of the financial year 5,074,552 4,969,695 Capital contributed during the year 234,150 104,857 Total contributed capital at the end of the financial year 5,308,702 5,074,552

(b) Asset Revaluation Reserve Balance at the beginning of the financial year 6,335,613 6,335,613 Revaluation of Land, Buildings & Infrastructure as at 31 Oct 2011 5,210,827 - Balance at the end of the financial year 11,546,440 6,335,613

(c) Accumulated surplus Accumulated surplus at the beginning of the financial year 2,327,053 2,444,950 Net result 1,125,565 (117,897) Accumulated surplus at the end of the financial year 3,452,617 2,327,053

(d) Movements in Equity Total equity at the start of the financial year 13,737,218 13,750,258 Capital contributed during the year 234,150 104,857 Revaluation of Land, Buildings & Infrastructure as at 31 Oct 2011 5,210,827 - Net result 1,125,565 (117,897) Total equity at the end of the financial year 20,307,759 13,737,218

(e) Nature and purpose of Asset Revaluation Reserve The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note 1(e).

83 84 85 Notes

86 Notes

87 Notes

88 Compliance Index – to Disclosure Requirements The Annual Report of the Mt Baw Baw Alpine Resort Management Board is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Board’s compliance with statutory disclosure requirements. LEGISLATION REQUIREMENT ...... PAGE MINISTERIAL DIRECTIONS — Report of Operations – FRD Guidance Charter and purpose FRD 22B Manner of establishment and the relevant Ministers ...... 11 FRD 22B Objectives, functions, powers and duties ...... 11, 12 FRD 22B Nature and range of services provided ...... 13, 41 Management and structure FRD 22B Organisational structure ...... 14, 15, 16 Financial and other information FRD 10A Disclosure index ...... Inside Back Cover FRD 12A Disclosure of major contracts ...... 19 FRD 15B Executive officer disclosures ...... 64 FRD 22B, SD 4.2(k) Operational and budgetary objectives and performance against objectives ...... 7, 24, 25 FRD 22B Employment and conduct principles ...... 16 FRD 22B Occupational health and safety policy ...... 16 FRD 22B Summary of the financial results for the year ...... 7 FRD 22B Significant changes in financial position during the year ...... 7 FRD 22B Major changes or factors affecting performance ...... 7, 8, 9 FRD 22B Subsequent events ...... 7 FRD 22B Application and operation of Freedom of Information Act 1982 ...... 18 FRD 22B Compliance with building and maintenance provisions of Building Act 1993 ...... 23 FRD 22B Statement on National Competition Policy ...... 19 FRD 22B Application and operation of the Whistleblowers Protection Act 2001 ...... 22 FRD 22B Details of consultancies over $100 000 ...... 19 FRD 22B Details of consultancies under $100 000 ...... 19 FRD 22B Statement of availability of other information ...... 18 FRD 24C Reporting of office based environmental impacts ...... 19 FRD 25A Victorian Industry Participation Policy disclosures ...... 23 FRD 29 Workforce Data disclosures ...... 16-17 FRD 30A Standard Requirements for the Design and Print of Annual Reports ...... 2 SD 4.5.5 Risk management compliance attestation ...... 12 SD 4.2(g) General information requirements ...... 18 SD 4.2(j) Sign-off requirements ...... Inside Front Cover FINANCIAL REPORT Financial statements required under Part 7 of the FMA SD4.2(a) Statement of Changes in Equity ...... 67 SD4.2(b) Comprehensive Operating Statement ...... 65 SD4.2(b) Balance Sheet ...... 66 SD4.2(b) Cash flow Statement ...... 68 Other requirements under Standing Directions 4.2 SD4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements ...... 69 SD4.2(c) Compliance with Ministerial Directions ...... 69 SD4.2(d) Rounding of amounts ...... 71, 73 SD4.2(c) Declaration by accountable officers ...... 64 SD4.2(f) Compliance with Model Financial Report ...... 63-83 Other disclosures as required by FRDs in notes to the financial statements FRD 9A Departmental disclosure of administered assets and liabilities ...... N/A FRD 11 Disclosure of ex gratia payments ...... N/A FRD 13 Disclosure of parliamentary appropriations ...... N/A FRD 21A Responsible person and executive officer disclosures ...... 80 FRD 102 Inventories ...... 70 FRD 103D Non-current physical assets ...... 69-70 FRD 104 Foreign currency ...... N/A FRD 106 Impairment of assets ...... 70 FRD 109 Intangible assets ...... N/A FRD 107 Investment properties ...... N/A FRD 110 Cash flow statement ...... 68 FRD 112C Defined benefit superannuation obligations ...... 74 FRD 113 Investments in subsidiaries, jointly controlled entities and associates ...... N/A FRD 114A Financial Instruments – General Government Entities and public non-financial corporations ...... 81 FRD 119 Contributions by owners ...... 77 FRD 120E Accounting and reporting pronouncements applicable to the 2010-11 reporting period ...... 72-73 LEGISLATION Copyright Act 1968 ...... 1 Freedom of Information Act 1982 ...... 18 Building Act 1983 ...... 23 Whistleblowers Protection Act 2001 ...... 22 Victorian Industry Participation Policy Act 2003 ...... 23 Financial Management Act 1994 ...... 23 & 70 Multicultural Victoria Act 2004 ...... 20 Contact Information Mt Baw Baw Alpine Resort Management Board Post Office Box 117, Rawson VIC 3825 Phone 03 5165 1136 Facsimile 03 5165 1125 Email [email protected] Web www.mountbawbaw.com.au Map Reference Melways Map 528 C5