Mount Buller and Mount Stirling Alpine Resort Management Board Annual Report 2013–14 Contents
Introduction
Message from the Chairman 1 Chief Executive Officer’s Report 2
Overview
Entity Information 4 Year at a Glance 5
Organisational Structure
Board of Directors 6 Resort Management Team 8 Organisational Chart 9
Strategic Direction and Operations
Introduction 10 Our Services 12 Our Environment 15 Our Tourism 18 Our Community 20 Our People 22 Our Corporate Governance 24
Financial Statements
2013–14 Financial Statements 28 Notes to Financial Statements 32 Independent Auditors Report 66 Disclosure Index 68
In accordance with the Financial Management Act 1994, I am pleased to present the Mount Buller and Mount Stirling Alpine Resort Management Board Annual Report for the year ending 31 October 2014.
Jennifer Hutchison Chairman Mount Buller and Mount Stirling Alpine Resort Management Board 3 February 2015 Annual Report 2013–14 1
Message from the Chairman
This has been a year of consolidation and steady progress. Here are some of the things that have occupied your RMB in 2013-14:
Mt Buller and Mt Stirling have been We are part of a multi-stakeholder on them, in exemplary fashion. kept busy through an outstanding business unit that provides In addition to scheduled Board 2014 winter season, welcoming input and responsibility for its meetings and activities, all Board record visitors to the Resorts in continued success and growth, members have taken on additional near perfect snow conditions for and combines funding from the responsibilities by serving on at the majority of the season. Record RMB, Chamber of Commerce, least one sub committee of the visitation saw our market share of Ratepayers Association and Board. I remain grateful for this Victorian resorts increase by 2%. Buller Ski Lifts. commitment. The high visitor numbers stretched Our stakeholder relationships Mt Buller Mt Stirling proudly remain resort facilities. However growth continue to mature, this year Victoria’s leading alpine resort, of day visitors, presents us with seeing the establishment or each unique, each committed opportunities and challenges and refreshing of a number of joint to a vibrant future. Across the will continue to occupy strategic groups to focus on particular industry we work with our industry development to enhance visitor matters relative to each sector. colleagues via the Alpine resorts arrival and snow play facilities. I acknowledge the substantial Coordinating Council (ARCC) to Work has continued on the efforts, in particular, of the Mt Buller seek savings, efficiencies, and Water Storage project, an Arts Association, Mt Buller Ski to take up opportunities where integral component of our future Lifts, and the Mt Buller Ratepayers cooperation will be more enhancing sustainability and snow making Association. John Huber and his than competition. A whole-of- capacity. We have also continued team, along with members of the industry Marketing Campaign, to step through the painstaking Board, in particular Bryce Moore, ‘Snow Victoria’ has been a major process of completing the Buller Andy Evans and John Lithgow, achievement this year. Stirling Link Road project. It deserve special mention of the In closing, I would like to remains vital for future security time and intellect committed acknowledge the positive and of both resorts and will enhance to these processes. Our winter supportive professional culture a number of additional aspects ‘engine room’ operations and in existence within the RMB. This of both Buller and Stirling. activities can only improve upholds a respected pathway of through this refreshed level of This year has also seen respect to and from the Board. joint commitment. the completion of process Our outstanding CEO, John Huber, and transition of Mt Stirling Summer visitation and green is in his fifth year of service and stakeholders from leasehold to season product provision continue maintains his passion and energy business licensing. This has been to grow, in particular through and outstanding contribution to our undertaken as part of the Mt mountain biking, and via major future, and the current operation. Stirling Strategic Plan. The long events such as Targa. This year He is an asset to both resorts. term commitment to Stirling by its has seen the establishment of the winter operator, Stirling Experience EPIC Trail and the raised profile I commend to you, the 2013-2014 has been retained, whilst upgraded of Mount Buller via its International year, and share in the pride. green season services wil also be Mountain Bicycling Association offered this summer. (IMBA) status. We have continued this year Your current Board remains a real with sharing the delivery of the powerhouse of skills, experience successful and well-supported and professionalism. Jennifer Hutchison Subaru Victorian Interschools This team is committed to best Chairman Competition. Mount Buller has practice directorship and upholds secured the Interschools Nationals Mount Buller and Mount Stirling the trust and integrity placed Alpine Resort Management Board event for 2015 and 2017. 2
Chief Executive Officer’s Report I would firstly like to acknowledge our Board, which with all Members returning for the 2013-14 year, provided great experience and enthusiasm. This coupled with their love for the Alps helped enable us to deliver great outcomes and successes for the Resorts throughout the year. Introduction
Winter 2014 and Interpretive Centre at Alpine program was completed, with The 2014 snow season Central, the redevelopment a strong focus on improving delivered outstanding natural of the YHA now Buller Central public amenity. Key projects snowfalls creating near perfect Site, along with the complete included the refurbishment of snow conditions through July renovation and extension to Cow Village Square Plaza, key water and August. Camp Plaza, which was officially and sewage infrastructure opened as Village Square Plaza improvements and improved The outstanding natural snow, by Minister Smith during the guest amenities at Mount Stirling. and more than usual clear sunny opening weekend festivities. Innovative and best practice days, contributed to record Additionally the next stage of environmental management visitation numbers. Mount Buller the implementation phase has programs continued to benefit the welcomed 309,875 visitors in begun with the commencement of resorts during 2013–14. The ‘Living 2014, compared to 253,647 in detailed analysis that will underpin Bin’ organics management system 2013. Visitor numbers at Mount the more strategic projects such recovered the highest amount of Stirling also finished strong with as the development of world class food waste since the beginning 7,228 compared to 5,304, the snow play facilities at Horsehill, the of the program in 2010, further previous winter. Valley North Parking facility and the reducing the amount of waste Horsehill to Village gondola. Resort Master Plan going into landfill. The Mountain The Mount Buller Resort Achievements Pygmy-possum trans-location Master Plan is now well into In a year that has seen record program continued with monitoring its implementation phase and visitation, opportunities have for the year indicating very strong continues to guide the resort’s been seized to identify and growth in the population, and the development over the next implement short-term initiatives eradication of the noxious plant 10–15 years as well as providing to improve visitor experience, Orange Hawkweed continues confidence for individual focusing primarily on logistics, to improve with only one site stakeholders to commit investment snow clearing and better use discovered containing the weed, dollars to the mountain. of technology in enhancing the giving a reduction of 66% on the previous year. A number of Master Plan projects customer experience. A range of have already been completed, longer-term initiatives are currently including Athlete’s Walk, Black being worked on. In addition, a Forest Walk, the Resort Reception substantial capital works Annual Report 2013–14 3
Key financial data 2012–13 2013–14 Change ‘000 ‘000 ‘000
Net Result 269 659 390
Total operating expenditure 12,107 12,555 448
Gas and electricity 726 834 108 Finance costs 124 108 (16) (Gain)/loss on disposal of assets 90 11 79 Health 234 259 25 Depreciation 1,644 1,680 36 Staff costs 3,788 3,867 79
Cash on hand 5,809 5,123 (686)
Priorities ahead experience whilst also providing Department of Transport, Planning Along with delivering a a very important alternative and Local Infrastructure, Buller Ski comprehensive capital works emergency access and egress Lifts, the Mount Buller Chamber program, we will continue route for the resorts in the event of of Commerce, the Mount Buller the planning and design of a a fire or natural disaster. Ratepayers Association, Stirling Experience and many others in supplementary water storage 2013-14 saw the construction of this endeavour. facility at Mount Buller, and the an International Mountain Biking Buller-Stirling Link Road. Both of Association (IMBA) accredited I would also like to express these key infrastructure projects EPIC mountain bike trail, the first my appreciation for the support achieved significant focus and of its kind in Australia, offering a and guidance of the Board. movement during 2013-14, with 40km long distance, cross country, The Board’s strategic focus is construction works on these two descending trail ride. The trail now delivering great results for our key infrastructure projects hoped named the Australian Alpine Epic resorts. to be able to be commenced in Trail will be officially launched on In addition, I wish to acknowledge the near future. 6 December 2014. the support and dedication An implementation plan has been Additional development of afforded to me by the Resort created for the development of initiatives and events to encourage Management team. Their hard the supplementary water storage year round visitation will continue work and dedication has allowed facility on Mount Buller, with works while securing the winter economic the organisation to deliver some scheduled to commence during engine of the resorts through outstanding results and to the 2014-15 period. The new enhancement of Mount Buller distinguish itself as a leader in water storage facility will ensure and Mount Stirling Winter product alpine resort management. the security of both potable and offerings, services and brands. snowmaking water on Mount Buller for the coming years. Acknowledgements The Buller Stirling Link Road The role of leading the Resort moved ahead strongly and Management team involves, construction on this project is among other things, attempting to scheduled to commence in the satisfy the desire, expectations and 2014-15 period. This important needs of its many stakeholders link road, providing an improved and in that regard I would like to John Huber acknowledge the input and support connection between the two Chief Executive Officer resorts, will enhance the visitor of the Department of Environment and Primary Industries, the 4
Entity Information The Mount Buller and Mount Stirling Alpine Resort Management Board (RMB) is a statutory authority established by the Alpine Resorts (Management) Act 1997 and responsible to the Minister for Environment, Climate Change and Water.
The RMB was established in 2004 the discharge of its functions, by an amendment to the Alpine duties or power and undertakes to Resorts (Management) Act 1997 adopt best practice in all activities, Introduction Overview (The Act), succeeding the separate reporting to the Minister through Mount Buller Resort Alpine the Annual Reports, the Corporate Management Board and the Mount Plan and Quarterly Financial Stirling Alpine Resort Management Reports. Board. The RMB is charged under ——Charge contributions for the The RMB also complies with the Act with managing the Mount provision of those services; the directions of the Minister for Buller and Mount Stirling Alpine ——Collect fees prescribed by the Finance and acts as a referral Resorts. Regulations for the Resorts; authority for development matters. The RMB operates under the ——Attract investment for the provisions of the Act and is Functions of the RMB improvement of the Resorts; established: As set out in Section 38 of the Act, ——Carry out any other function the specific functions of the RMB conferred on the RMB under the ——As a Body Corporate with Act or any other Act; perpetual succession; are to: ——Plan for the development, ——With its own Common Seal; ——Act as a Committee of promotion, management and ——With the power to sue or be Management of any use of the Resorts; sued; Crown Land deemed to be permanently reserved under ——Manage the Resorts in ——To acquire, hold and dispose of the Crown Land (Reserves) Act accordance with the objective real and personal property; and 1978 in the Resorts; of the Act as amended; ——To carry out its functions as a ——Contribute together with Tourism ——Undertake research into alpine Body Corporate may do at law. Victoria and the Alpine Resorts resort issues; Coordinating Council (ARCC) to ——Contribute to and support the Statutory Reporting the overall promotion of alpine operation of the ARCC; The RMB is a statutory authority. resorts; ——Prepare and implement a The responsible Minister for the ——Develop a tourism and Strategic Management Plan for period from 1 November 2013 marketing strategy for and the Resorts; and to 31 October 2014 was the to promote the Resorts, and Hon Ryan Smith MP, Minister for ——Expend or apply revenue of collect and expend voluntary Environment and Climate Change. the RMB in accordance with a contributions from commercial direction of the Minister under The Minister is responsible for undertakings in the Resorts for Section 36(1A) of the Act. Crown Land management and this purpose; The RMB must carry out its delegates their authority to the ——Provide a range of services functions in an environmentally RMB to implement Government in the nature of: garbage sound way. policy in relation to the use and disposal, water supply: recycled management of the alpine resort. and potable, sewerage, gas, The RMB accepts directions drainage, roads, fire protection or guidelines from the Minister and snowmaking. regarding its performance and Annual Report 2013–14 5
Year at a Glance
Financial Summary 2009–10 2010–11 2011–12 2012–13 2013–14 $‘000 $‘000 $‘000 $‘000 $‘000
Operating Revenue — Gate Entry 3,929 3,531 3,946 3,613 4,584 — Site Rental Fees 3,716 3,671 3,784 3,756 3,842 — Service Charges 3,101 3,179 3,299 3,382 3,538 — Sale of Rights to Lease and 50 175 0 0 0 Develop Crown Land — Government Funding 1,039 344 136 175 382 Other Revenue 1,050 1,186 1,077 1540 879 Operating Expenditure 11,249 11,616 12,027 12,107 12,555 Other Economic Flows 40 -25,698 -3,504 -90 -11 Comprehensive result 1,676 -25,2281 -3,2892 269 659 Total Assets 199,126 173,4061 170,4752 170,931 171,181 Total Liabilities 4,476 3,984 4,304 4,396 3,987 Net Assets 194,650 169,422 166,171 166,535 167,194 Assets Comprise: — Land 150,313 110,6881 110,688 110,688 110,688 — Other non-financial assets 39,109 53,5741 51,3902 53,398 54,898 — Financial assets 9,704 9,144 8,397 6,845 5,595 1 The comprehensive result for 2010–11 includes a reduction of $25,705,000 in the ARMB’s asset revaluation reserve resulting from asset revaluations directed by the Valuer-General Victoria. 2 The comprehensive result for 2011-12 includes a reduction of $3,370,425 in the RMB’s asset revaluation reserve resulting from asset revaluations directed by the Valuer-General Victoria. Item / Key Performance Indicator 2012–13 2013–14
Environmental Quality Number of Readings Within EPA Guidelines — Escherichia Coli 16/16 13/16 — Biochemical Oxygen Demand (5 day) 16/16 15/16 — Suspended Solids 16/16 15/16 Percentage of Total Waste Recycled 45% 46%
Social Responsibility Visitor Average Nights on Mountain (Based on Gate Entry Sales, excl. Day Visitors) 2.5 2.3 Total Snow Making Water Used (megalitres) 290 230 Total Water Used for Fire Fighting (megalitres) 0 0 Total Winter Passengers using Free Shuttles 538,224 698,785 Mount Stirling Patrol Callouts 4 14
Economic Viability Mount Buller Winter Visitors* 253,647 309,875 Mount Buller Summer Visitors* 79,834 82,723 Mount Buller Visitor* Days (Winter) 461,989 497,835 Mount Stirling Winter Visitors* 5,304 7,228 Mount Stirling Summer Visitors* 44,863 46,369 Mount Stirling Visitor* Days (Winter) 5,304 9,828 Vehicles Through The Gate (Winter) 49,700 69,428 Total Investment by Private Developers ($'000) 5,435 2,459 Capital Works Expenditure ($'000) including expenditure on plant and equipment 3,731 3,265 Lease Holders 176 177 Sub-Leases Transferred 59 36 Accommodation Availability of "Hot Beds" 1,587 1,587 Accommodation Availability of "Cold Beds" 6,684 6,684 Mount Buller Maximum Snow Depth (cm) (Average) 83 120 Mount Stirling Maximum Snow Depth (cm) (Average) 93 109 Total Value of Approved Planning Permits ($'000) 2,491 2,086 * Visitor statistics for 2012-13 and 2013-14 have been updated using Alpine Resorts Coordinating Council final numbers. 6
Board of Directors The Minister for Environment and Climate Change appoints Members of the Board, including a Chairman and Deputy Chairman, based on administrative, managerial, financial, environmental, legal, sporting and tourism skills necessary to oversee the running of the Resorts competently. Board members are appointed for three years and are eligible for reappointment. Remuneration is determined by the Victorian Government guidelines.
The board members that Bryce Moore Andrew Evans served for the 2013–14 year
Introduction Organisational Structure were appointed by the State Appointed 30 April 2010 Appointed 4 June 2013 Government for three year Re-appointed 4 June 2013 terms. ——Founder and joint Managing ——Part owner and director, Director of Real Estate Jennifer Hutchison Moremac Property Group Development Corporation Pty Ltd Chairman ——Division Councillor, Property ——Founder and joint Managing Council of Australia (Victorian Director of Canopi Homes Pty. Ltd. Appointed 28 October 2011 Division) ——Co-Founder and Director of ——Graduate, Australian Institute of ——Member and former director, Global Pipe Pty. Ltd Company Directors (GAICD) Merrijig Ski Club ——Director of Futurefish ——Member, Alpine Resorts ——Extensive property, planning Foundation Coordinating Council (ARCC) and development experience ——Member of the Victorian ——Former Deputy Chairman, in the private and Government Planning and Environmental Lake Mountain Alpine Resort sectors. Law Association Management Board Dr Kate Brooks ——Wealth of knowledge in the ——Enthusiastic writer, beekeeper, property industry spanning and walker. Appointed 28 October 2011 urban renewal, residential and industrial subdivision, Dean Belle ——Graduate, Australian Institute of development of commercial, Deputy Chairman Company Directors (GAICD) industrial and retail projects, ——Director, KAL Analysis as well as medium and high- Appointed 30 April 2010 ——Social research specialist, with density residential development. Re-appointed 4 June 2013 a background in corporate ——Passion for environmental ——Owns and operates the affairs, marketing, business causes and is a keen skier. Mansfield Regional Produce management and extensive Store experience in public sector John Lithgow ——Owns and operates a tourism, governance and policy and Appointed 4 June 2013 hospitality and marketing community policy consultancy business ——Adjunct Senior Fellow, The ——Third generation Owner Operator ——Previous Judge for the Victorian Australian National University, of the Yarra Glen Grand Hotel, in Tourism Awards (3 years) Research School of Social Yarra Glen, Victoria Sciences ——Over 20 years experience ——Solid background in tourism operating businesses in and ——Avid skier originating from promotion around the ski industry in Mount Buller, bushwalker, rower ——Keen skier and cyclist, Thredbo, Mount Buffalo and and aviator with interests in politics and Mount Buller, including two ——Sociological and community physical fitness. years as Assistant Manager for affairs member of the South ——William Angliss Hospitality Buller Ski Lifts (BSL). Australian Ministerial Fisheries Graduate Advisory Council ——At the forefront of the ——Sociology member of the NSW establishment of the Yarra Ministerial Marine Estate Expert Valley as a world wide tourism Knowledge Panel. destination. Annual Report 2013–14 7
Elaine Farrelly Board Committees Appointed 16 August 2013 Risk, Audit and Finance Remuneration Committee ——Chartered Accountant with more Committee The Remuneration Committee than 20 years’ experience The RAFC is responsible for overseeing: is responsible for providing a ——Executive level experience recommendation to the Board regarding ——Financial performance; across the telecommunications, CEO remuneration and performance media, property development, ——The quality and effectiveness of RMB appraisal. In addition, the Committee manufacturing and not for profit accounting, management reporting, ensures that all remuneration and policies sectors policies and procedures; concerning personnel are consistent with ——Skilled in commercial ——Compliance with the Financial Victorian Government standards. development and assessment of Directions as issued by the Minister for new business and new products Finance; Governance Committee ——Non-executive director of ——Identification and assessment of risk, The Governance Committee was Movember management of identified risks, referral established in the 2011–12 year to assist ——Fellow member of the Australian of risk matters to the Board; the Board to understand its mandate of Institute of Company Directors. ——The scope of work and performance of best practice. both external and internal auditors; Pecuniary Interest The Committee is designed to be a ——Sign off of accounting policies; and reference point for discussion, debate Members of the Board and ——Continuous monitoring of a framework and assistance in the application of best Executive Officers have completed practice. a Declaration of Private Interests and processes in compliance with and do not participate in decision- the Financial Management Act 1994, and other laws and regulations that Future Business Modelling making where a conflict of interest Committee exists. significantly impact on RMB code of conduct. The Future Business Modelling Committee was established in the 2012-13 year to All RAFC Members are deemed assist the Board to examine the current independent under the Financial operating model and explore a range of Management Act 1994. initiatives that will lead to improvements in the RMB Financial Operating model.
Water Storage Project Committee The Water Storage Project Committee was established in the 2012–13 year to assist with the design, development and construction of a water storage facility on Mt Buller.
Total Board Member Meeting Attendance Jennifer Dean Bryce Dr Kate Andrew John Elaine Meetings Where Eligible to Attend Hutchison Belle Moore Brooks Evans Lithgow Farrelly Held
Board Meetings 8 8 7 6 8 8 6 8
Risk Audit and Finance Committee 4 4 4 4
Remuneration Committee 2 2 2 2
Governance Committee 2 2 2 2
Future Business Modelling Committee 2 2 2 2
Water Storage Project Committee 4 4 4 8
Resort Management Team
John Huber Chief Executive Officer Appointed November 2009 The duties and responsibilities of the RMB Chief Executive Officer are to: ——Carry out the Board’s directions; ——Manage day to day operations of the Resorts in accordance with approved policies; ——Manage and direct the organisation to achieve optimum profitability and effective use of business assets and human resources; ——Develop and review policy, and plan and control major functions relating to the operation and administration of the organisation through subordinate executives; and ——Leading the professional RMB team and enabling the Board’s vision, direction and framework for the future development of the Resorts in an environmentally, economically and socially sustainable manner. Introduction Organisational Structure
Glenn Thornton Paul McNamara This includes the effective and efficient operation of resort Chief Financial Officer Property and Development utilities and infrastructure such Manager Appointed March 2012 as the provision of horticultural Appointed October 2012 and amenity services, snow Responsible for financial clearing and ice management, management, risk management, Responsible for management of potable water supply, waste finance (planning and analysis), leasing, sub-leasing, licensing, water treatment, water reticulation audit (systems and controls), statutory planning matters, and systems and water supply for reporting, risk management, major capital development. snow making. information technology and contract and legal services. Denise O’Brien Amber Gardner Human Resources Manager Director Marketing, Sales and Business Louise Perrin Appointed June 2012 Environmental Services Development Manager Responsible for the people, culture and development of Appointed March 2006 Appointed October 2004 the organisation including Responsible for developing Responsible for environmental staff recruitment, training and long-term strategic initiatives management of the Resorts and performance development. that drive market share, Resort Mount Stirling resort operations yield and business growth. This and ski patrol. Environmental Andrew Markwick incorporates marketing strategy, management activities include General Manager product development, market endangered species and Resort Operations research, event management, wildlife management, vegetation Appointed March 2012 strategic communications, management, pest plant and brand management, commercial animal control, track and trail Responsible for resort operations partnerships, business development and maintenance, at Mount Buller and has the development, resort entry waste management initiatives, primary function of conducting operations and visitor information advice during construction and works and capital works that services. development, and education and preserve and enhance the communication programs. presentation and operational functionality of the resorts. Annual Report 2013–14 9
Organisational Chart
Governance Committee Mount Buller & Mount Stirling Alpine Resort Management Board Risk, Audit & Finance Committee Jennifer Hutchison—Chairman Dean Belle—Deputy Chairman Remuneration Committee Bryce Moore Kate Brooks Andrew Evans Future Business Modeling Committee John Lithgow Elaine Farrelly Water Storage Project Committee
Chief Executive Officer Executive Assistant John Huber
General Manager Chief Financial Environmental Property & Human Resources Director Resort Operations Officer Services Manager Development Manager Marketing, Sales Andrew Markwick Glenn Thornton Louise Perrin Manager Denise O’Brien & Business Paul McNamara Development Amber Gardner
Operations Financial Environmental Master Planning OH&S Marketing Strategy Water and Management Management Resort Development Recruitment Brand Development sewerage Statutory Report Biodiversity Statutory Planning Training & Product Management Emergency Audit Site Leases and Development Development Management Insurance Waste Management Sub Leases Performance Media Management & Recycling Asset Management Procurement Management Event Management Energy Management Engineering and Information Staff Amenities Market Research Geotechnical Technology Trails Management & Analysis Services Mount Stirling Stakeholder Fleet Management Operations Relations and Workshop Mount Stirling Customer Service services Ski Patrol Resort Entry Capital Works Licensing Post Office Snow play Operations operations Visitor Information 10
The RMB is committed to fulfilling its role within the context of the Victorian Government’s Alpine Resorts Strategic Plan 2012.
The RMB recognises its stewardship responsibility for significant public assets and continues to manage these assets in a socially, economically and environmentally sustainable manner, while facilitating the public’s ability to access and enjoy an alpine experience at all times of the year. The Resorts’ Strategic Management Plan adopts the six strategic directions identified in the Alpine Resorts Strategic Plan 2012:
Enhancing the visitor experience and developing resorts
Delivering resort services and infrastructure efficiently and accountably
Building Partnerships
Respecting the Alpine Environment
Broadening access opportunities Introduction Strategic Direction and Operations Regulatory Reform
These strategic directions identified in the Alpine Resorts Strategic Plan 2012 underlie the Resorts’ vision and six focus areas, which contain intent statements and objectives that form the basis of the RMB’s internal strategic and operational planning, and is how information is categorised in this report (see the summary on the following page). Annual Report 2013–14 11
Vision More than a mountain. Mt Buller and Mt Stirling arewelcoming and accessible Australian alpine resorts. Their unique environments, histories and their sense of community create great mountain adventures and experiences all year round.
OUR SERVICES To provide cost-effective, quality facilities and services that meet our community’s needs and support the viable development of the Resorts.
OUR ENVIRONMENT To protect and enhance biodiversity within our natural and modified environments and to strive for healthy and resilient ecosystems and promote sustainable practices.
OUR TOURISM To develop the Resorts as viable tourism destinations that attract visitors by offering a range of high quality activities, facilities and experiences.
OUR COMMUNITY To build and facilitate a vibrant and prosperous community and be a valued community member.
OUR PEOPLE To be an employer of choice that values and is valued by all employees.
OUR CORPORATE GOVERNANCE To maintain the integrity and value of our organisation through sound governance and financial management. 12
Our Services
Safe Drinking Water Risk Sewage Treatment Provide cost-effective, Management Plan The RMB continues to monitor quality facilities and In accordance with the Safe the Sewage Treatment Plant as services that meet our Drinking Water Act 2003, the per Environmental Protection community’s needs and RMB adopts a preventative Agency (EPA) requirements to support the development of management approach to the preserve water quality in local the Resorts through: provision of safe drinking water, stream networks. On 16 occasions ——Providing safe from catchment to consumer. a total of 16 samples were taken and reliable water, for Escherichia Coli, biochemical The Safe Drinking Water Risk wastewater, and waste oxygen demand and suspended Management Plan includes: removal facilities and solids. There were a total of five services ——Promotion of public health by non-compliances from three ——Developing initiatives ensuring safe drinking water for samples. Investigations have to further snow-making consumers; determined that storm water is capabilities ——Continual monitoring of the entering the sewage collection
Strategic Direction and Operations system which is stretching the ——Managing and improving drinking water supply system treatment plant and leading to access to and movement to ensure the barriers to the non-complinace issues. around resorts contamination and treatment process remain efficient; Investigations and remedial ——Progressing the leasing actions have commenced. and licensing process ——Detailed and systematic evaluation of water systems, to support appropriate Garbage Collection resort development identification of hazards and risk Over the 2014 winter season, 306 and provide necessary assessment; and tonnes of solid waste to landfill community services ——A preventative approach, which was collected compared with 477 places drinking water quality ——Maximising asset tonnes in winter 2013. A total of monitoring in an appropriate performance by 699 tonnes of solid waste was verification role. striving for best use, collected over the year compared and improving asset The Safe Drinking Water Risk with 662 tonnes in 2012–13. efficiency through Management Plan is regularly strong preventative updated to ensure it reflects Solid Waste Recycling maintenance changing local circumstances. The RMB continually strives to The plans were reviewed and improve its waste management to Potable Water updated in early 2014. protect the sensitive and unique The provision of safe drinking The Plan was independently environment of the Resorts, by water is a core service provided by audited in May 2014 and a increasing recycling, diversion Resort Management. It is critical compliance certificate granted. of organics and reducing the to the ongoing functionanilty of amount of solid waste going to the Resort. RM supplies drinking Water Reuse Project landfill. These goals are strongly supported by active involvement water to the Mount Buller Village, The Resort Management operates in the North East Waste and Mirimbah Picnic Area and a Class A standard water recycling Resource Recovery Group Telephone Box Junction in the plant. This plant is capable of (NEWRRG), and a proactive and Mount Stirling Resort. Drinking providing recycled water that can dynamic working relationship with water is managed in accordance be used for snow making thus RMB waste contractors, 4SITE with the Safe Drinking Water Act augmenting the natural supply Australia Pty Ltd. 2003 and is disinfected using of water. combinations of UV, chlorination and filtration. In 2013-14, 201ML of water was transferred from Boggy Creek to the Burnt Hut Reservoir for the Mount Buller Village potable water supply. Of this, 175ML was then transferred to Sun Valley Reservoir for snowmaking. Annual Report 2013–14 13
In 2013–14, 46.5% of waste Vehicular Access (including organics) was recycled. Snow Clearing The RMB continued to encourage and promote best practice waste A largely newly recruited snow management by: clearing team faced some of the heaviest snow falls early in season ——Improving and increasing the 2014. These snow falls and rates non-recyclable, recyclable of snow accumulation were the and organics ‘binfrastructure’ heaviest for up to 30 years. The throughout the Resorts; summer maintenance program ——Offering hard waste and green proved its worth and very few waste collection points (items breakdowns interrupted works. The are recycled/mulched where ice treatment system was further appropriate); developed with the introduction ——Continued improvement and of bulk handling and relocation expansion of public place from the Plough Shed to Horse recycling and waste facilities Hill Workshops which has made throughout the Village and ski significant gains in efficiency. fields; Public Transport ——Improved cigarette butt litter management including The RMB continued to provide improved infrastructure; public transport to visitors at Mount Buller through its contract with ——Facilitation of community based Mansfield-Mount Buller Bus Lines litter initiatives such as ‘Beautify (MMBL). The complimentary bus Buller Day’; shuttles from the Resort carparks ——Providing re-usable bags for to the Village centre and around residents and guests as part of the Village roads carried 698,785 the ‘Save our Snow, Just Say passengers in 2013–14 compared No’ campaign; to 538,224 in the previous year. ——Advertising and promoting best The RMB continues to work with practice waste management; MMBL to provide a taxi service that Mount Buller-Mount Stirling and is cost-effective and valued by the Link Road ——Implementing education paying passengers. The RMB plans to construct a link strategies. road between the existing Corn Wheel Chains Policy Hill Road and the Circuit Road Since the inception of the The RMB is aware of the need at Howqua Gap, linking Mount successful trial in organics to balance ease of access and Buller and Mount Stirling. The management during the 2010 affordability with risk and public Link Road development responds winter season, the ‘Living Bin’ safety. In 2013-14, the RMB to the RMB’s risk management Program has continued to continued to employ its flexible plan, providing greater access involve private and commercial Mount Buller Wheel Chain Policy, for emergency vehicles to both properties, increasing the diversion which allows the RMB to determine mountains. The Link Road will of organics from landfill. During whether or not vehicles are also become an appealing touring 2013–14, over 43 tonnes of required to carry wheel chains on circuit, thereby increasing year organic waste was diverted from a daily basis, based on weather round visitation to both Resorts. landfill (compared with 35 tonnes forecasts and prevailing road An application for a planning during 2012–13). This successful conditions. The policy applies to permit to construct the Link Road organics management system day visitors only. Those staying in was lodged with DTPLI in 2013 and won the Tidy Towns Sustainable the Resort overnight or travelling is currently being considered by Communities Zero Waste Award beyond the Skating Rink Car Park the Minister for Planning. in October 2011, and achieved (past the snowline) are required to the Premier’s Sustainability Award carry chains at all times. in September 2012. An in-vessel The decision regarding chain composting unit was trialled during requirements is determined using winter 2013 and 2014 as we work a decision matrix based on the towards achieving a complete on Bureau of Meteorology weather site solution. forecasts and the current state of the road. 14
Leasing Administration In accordance with standard Compliance with building The RMB continues to administer practice, adjustments to service and maintenance provisions the Minister’s Alpine Resorts charges levied on some sites were of the Building Act 1993 Leasing Policy, utilising a standard initiated to reflect reassessments In accordance with the provisions lease document which includes associated with supplementary Section 192 (1) of the Building recognition of lessee’s rights to valuations undertaken on new Act 1993, the RMB carries improvements on leased land, and developments or properties which out the administration and the ability for existing site holders had been subject to substantial enforcement of Parts 3, 4, 5, 7 and to negotiate new leases prior to alterations. 8 of the Building Act and Building the expiry of their current lease. Regulations on Mount Buller and All new leases are endorsed by Land Release Mount Stirling. the Minister. The aim of the RMB’s land release activities is to encourage the Health Services In order to develop measures provision of quality developments to further enhance lessees and The RMB continues to facilitate the on new sites in areas identified financiers investments in the provision of medical services to
Strategic Direction and Operations as being suited for development. Resorts, lease registration has now visitors, residents and employees There were no releases of new been introduced for all new leases. on Mount Buller during the snow sites by the RMB during 2013–14. During 2013-14, 14 new leases season. Churchill Drive Pty Ltd managed the Mount Buller Medical were issued compared to 18 in Planning Permits and Private Centre again this year, with the 2012-13. Investment support of doctors and staff from In 2013–14 a total of 10 new For the 2013-14 year there were a the Mansfield Medical Clinic. total of 36 consents being granted planning permit applications for for transfers of sub-leases and/or development proposals with a This service provided a range of shares compared to 59 in 2012-13. declared estimated construction services for residents, staff and There were no consents for new value of $3.086 million were visitors of Mount Buller including sub-leases and 7 consents for the reviewed and processed by the health screening, monitoring and mortgage of sub-leases and/or Board compared to the 13 (with education, assessment of acute shares granted in the year to a total value of $2.49 million) medical presentations, treatment 31 October 2014. processed in the previous year. of minor wounds, medical The RMB has continued to engage management, liaising with medical Site Rental appropriate consultants to assist in practitioners, counselling and Lessees are required to pay site its deliberations on these matters. referral. rental for the use of Crown Land In 2013–14, 12 planning permits Mount Buller continues to provide on Mount Buller. During 2013- were issued for proposed appropriate health services for 14, rent reviews for 19 sites were development projects and specific events and activities held undertaken in accordance with works with a declared estimated over the Summer period. the applicable lease provisions. construction value of approximately Service Charges $2.086 million. Service charges are levied on all A Site Environmental Management leased sites within the Resort in Plan (SEMP) is required for all accordance with Section 13 of planning applications for site the Alpine Resorts (Management) development on Mount Buller. Act 1997. Service charges are Each SEMP is reviewed as an reviewed annually in accordance important part of the planning with RMB policy. process, aimed at minimising environmental impact during Service charges are currently the construction phase and based solely on 2004 CIVs. The rehabilitation of sites post- Service Charge rate for 2013-14 construction. was 0.85212% of the 2004 CIV compared to a rate of 0.83246% Projects with an estimated of the 2004 CIV in 2012-13. construction value of $3.568 million were completed in the year to 31 October 2014. Annual Report 2013–14 15
Our Environment
Protect and enhance biodiversity within our natural and modified environments, strive for healthy and resilient ecosystems and promote sustainable practices through: ——Managing the endemic alpine flora and fauna communities within the Resorts ——Managing pest plant and animal species to limit impacts on indigenous species ——Reducing the Resorts’ environmental footprint by developing and promoting sustainable practices and programs ——Enhancing ecological awareness within the community
The RMB aims to manage the Mountain Pygmy-possum location projects and on-ground unique alpine environments of Recovery Plan management of the population Mount Buller and Mount Stirling in The Mount Buller alpine resort resulting in the highest numbers a sustainable manner, maintaining is home to a population of being recorded since 1996. the balance and quality of alpine Australia’s iconic alpine possum During 2013–14, approximately ecosystems. In 2013–14, many – the endangered Mountain 2,000 plants of local genetic key environmental objectives were Pygmy-possum (Burramys provenance (specifically chosen to achieved. parvus). Habitat degradation provide food and cover) have been and fragmentation, predation established in key habitat areas. Environmental and climate change threaten its Management Plan existence across the Australian In addition, important studies have The Environmental Management Alps. When serious declines in been completed, identifying and Plan describes specific Pygmy-possum numbers were mapping new habitat including environmental objectives for the observed between 2001 and 2003, habitat re-creation sites, tunnels Resorts. Environmental issues the RMB, in partnership with BSL linking previously fragmented addressed within the Plan include and Department of Environment habitats and revegetation/ sustainable management of and Primary Industries (DEPI), rehabilitation sites. geological and geomorphologic developed a five-year Recovery The RMB is represented on features, soil conservation, rivers Plan to protect the species and the Mountain Pygmy-possum and catchments, flora, fauna, fire, its habitat. The Recovery Plan State Recovery Team, and is indigenous and post-settlement has been reviewed and updated committed to continuing proactive cultural heritage, waste, energy to direct conservation actions for management of the species. efficiency, air quality, visual and a further 5 years. It is a guide for noise amenity, visitor capacity the continued management of the and community awareness and species, learning from and building engagement. The Environmental on the previous plan’s positive Management Plan is in the process outcomes. Annual monitoring of being reviewed, and will move of the population continues with into the next 5 year period once excellent results for the 2013–14 complete. year with the ongoing trans 16
Native Flora and Fauna Stonefly (Thermatoperla flaveola) quarantine area to restrict Management and the Alpine Marsh Marigold movement through the area. The RMB is committed to the (Psychrophila introloba). Additional funding was obtained from DEPI, to increase resources protection of all species of native Sensitive area signage has put towards surveillance of Orange plants and animals inhabiting been installed in key locations Hawkweed within the Resorts. The the Resorts. Advice and tips on to increase staff and visitor improved collaboration of agencies management of small native awareness. Mammals are freely available and in recent years has been extremely effective with only one existing site environmental staff continue to Pest Plant and identified and treated (compared provide a small mammal catch and Animal Control release service to lodges, clubs, with one new and two existing sites A major environmental goal of the apartments and hotels, using Elliot in 2012–13). RMB is the control and elimination, traps, designed to prevent injury where possible, of introduced or Waterway weed infestations, to animals. The use of snap traps exotic plant and animal species. including Three-stamen Rush, Soft and poison baits continues to be Rush and Musk Monkey-flower,
Strategic Direction and Operations discouraged. During winter 2014, As in previous years, effort continued to be targeted with good plastic catch and release traps was concentrated on the most results. were made available to public for significant species within the purchase. Resorts, including Orange Blackberries were sprayed on Hawkweed, Soft Rush, Blackberry, trails between Mount Buller and In 2013–14, the small mammal St John’s Wort, Sycamores, Mount Stirling, and Sycamores poster continued to be a popular Willows, feral cats, foxes and continued to be controlled in the tool to help visitors identify and rabbits. upper reaches of the Delatite at appreciate native fauna within the Mirimbah. Small English Broom Resorts. As in previous years, this Pest Plants infestations were treated at Mount poster was distributed to lodge The 2009 Weed Management Stirling, Mount Buller Village and managers and many primary and Strategy formalised the process for Delatite Valley, and Pussy Willows secondary school children who prioritising and treating key weed continued to be removed from the visited the Resorts. species within the Resort. Resorts. Threatened species monitoring From October 2013 to June 2014, continued, including the Mountain Orange Hawkweed was monitored Pygmy-possum, Broad-toothed and controlled weekly and there Rat (Mastacomys fuscus), Alpine continues to be an established Annual Report 2013–14 17
Pest Animals Education, Communication The RMB’s year-round integrated and Engagement pest animal control program Environmental education, involves various methods of communication and engagement management at different times are critical to achieving RMB of year. Ongoing fox baiting environmental objectives. programs, intensive shooting and trapping sessions, remote camera During the year, environmental staff placement, and spot lighting gave a number of presentations are control/monitoring activities to primary, secondary and tertiary which continue to produce good students. results. Foxes are no longer The latest environmental commonly seen within the Resort information continues to be and feral cats (known predators available on the Mount Buller and of the Mountain Pygmy-possum) Mount Stirling websites. numbers are declining. Rabbits continued to be targeted from During 2013–14, RMB staff spring to autumn. continued their voluntary participation in the Community Revegetation and Stream Sampling Project in Rehabilitation conjunction with Water Watch and participated in various As part of the ongoing revegetation sustainability focused training and rehabilitation program, sessions held throughout the year. approximately 2000 native Energy and Resource Efficiency seedlings were established in Fire Management priority areas during 2013–14. The RMB is committed to The Mount Buller and Mount improving its internal environmental Plants were sourced from locally Stirling Fire and Emergency performance focusing on obtained seeds and cuttings, Management Plans provide environmentally responsible propagated over an eight-month guidelines for fire prevention, purchasing and resource and period and returned for planting preparedness, response and energy efficiency projects. at the Resort during the summer recovery across the Mount Buller Following audits undertaken in months. This ensures the genetic and Mount Stirling Alpine Resorts. provenance and integrity of native previous years using infrared thermography and other vegetation within the Resort is Land Stabilisation maintained. methods, the RMB continues The RMB continues to monitor and to make asset improvements to Environmental staff continued address any natural changes in increase energy and resource to provide advice to developers the land. The RMB has received efficiencies and decrease carbon and site holders regarding funding from the DEPI Alpine Risk emissions. Solar webcams were revegetation, and several locally Mitigation Program to reinstate installed at two locations on indigenous native gardens are now these areas. Drainage, culvert and Mount Stirling to provide visitors established within the Resort. stabilisation works were conducted with real time images of snow on the Circuit Road, Corn Hill The Mount Buller and Mount conditions and work is continuing Road, Standard Lane, Site 237 and Stirling Native Vegetation Planting on the re-installation of a micro- the SCV-Woolybutt Lodge sites. Guide (available for free from the hydroelectricity plant to power RMB office and website) continues facilities at the visitor information to assist residents and site holders centre (Telephone Box Junction), keen to establish native gardens Mount Stirling. on their sites. Solar powered lighting was installed at Chain Bay three to provide lighting for motorists fitting chains after dark. 18
Our Tourism
25% on the ten year visitation Visitor Services Provide high quality average. As a result, Mount Buller During the 2014 season, Visitor recreational activities, maintained its market leading Services, a combination of RMB facilities and experiences position relative to the other and Buller Ski Lift resources, that promote year round Victorian Alpine Resorts, owning was once again responsible for utilisation through: 40% of the Victorian Alpine Resort meeting, greeting and assisting ——Facilitating and/or visitor market – 22% ahead of its visitors in the car parks, toboggan influencing the delivery closest competitor. slopes and general Village area. of mountain products These visitors generated 497,835 The placement of these staff and facilities that satisfy visitor days, which were up 8% continue to improve liaison with customer expectations from winter 2013 and up 9% on the the public and enhance the visitor ——Enabling activities and ten year average, allowing Mount experience. events that appeal to Buller to also own 35% of the visitor various target markets In 2013–14 the RMB continued to days market. contribute funds to the Mansfield ——Developing the tourism Visitor Information Centre and
Strategic Direction and Operations strengths of the Resorts Mount Stirling – Summer High Country Reservations, which Mount Stirling experienced a 3% ——Generating cross-resort provides a year round visitor increase in visitation between tourism opportunities information service for the Resorts summer 2012–13 and 2013–14, between Mount Stirling and a centralised accommodation and Mount Buller as calculated by the ARCC. This booking service for visitors on growth has ensured that Mount ——Driving awareness of the behalf of commercial operators Stirling has maintained its unique Resorts’ visitor offerings and lodges at Mount Buller. position as the only Victorian alpine resort to attract higher levels of Visitation Sponsorship visitation in summer than in winter. Mount Buller – Summer The RMB acknowledges its Mount Stirling – Winter sponsors, who are valuable Between summer 2012–13 partners in delivering a high and 2013–14, Resort visitation Experiencing similarly strong quality mountain experience to increased 4%, as calculated by snow conditions to Mount Buller, visitors, including Bollé, Cadbury, the Alpine Resorts Coordinating the neighbouring Mount Stirling 7 Network, K2, Specialized and Council (ARCC). Mountain bike saw significant growth in its visitor Schweppes. The RMB in turn trail usage, measured by counters numbers in winter 2014. The Resort offers sponsorship to on-mountain placed on key trails, also increased attracted 7,228 visitors, which was event providers as well as sporting by 6% over the same period, an increase of 38% from winter groups to encourage development indicating that growth in general 2013, and up 41% on the ten year and participation in recreational resort visitation was largely driven average. These visitors generated activities across all age groups. by participation in this activity. 9,828 visitor days, which delivered an increase of 43% from the Mount Buller – Winter previous year, and was up 54% Mountain Bike Trails Throughout the first three weeks on the ten year average. The RMB acknowledges that a of the winter period, the Resorts sustainable, year-round tourism received no natural snow falls with Resort Entry Technology product is vital to the longevity visitation subsequently remaining The RMB continues to explore of the Mount Buller and Mount very low. However, with record options to streamline the Resort Stirling Resorts. In an effort to grow breaking snow conditions arriving entry process. Automated licence the Resorts’ summer visitation, in week four, and strong snow falls plate technology enabled the RMB the RMB has invested significant continuing throughout the rest of to gain an understanding of vehicle time and resources into the the season, Mount Buller attracted season permit usage as well as development of its cross-country 309,875 visitors to the Resort continue to monitor unauthorised mountain bike trail network, which – the highest visitor numbers access into the Resorts. Online is promoted under the ‘Bike Buller’ experienced in 14 years (since the sales of pre-paid Resort Entry brand. year 2000). passes were available in 2014 and the trial of an express lane for This meant that Mount Buller peak weekends were successful experienced an increase of 24% in in decreasing the waiting time for visitor numbers when compared entry to the Resort. to winter 2013, and was also up Annual Report 2013–14 19
In total, the RMB has now This is the first IMBA Epic trail in 2013–14 key achievements are constructed over 45km of new the Southern Hemisphere, so its as follows: single track dedicated to mountain launch marks a major milestone ——Improving the resort experience biking, which includes beginner for both Mount Buller and the through the introduction of trails around the Mount Buller Australian mountain bike industry, new/enhanced products and Village, five intermediate loops out ensuring that it will act as a major services like dog sled tours, free to Corn Hill, the iconic Stonefly tourism drawcard for both the wi-fi, self-guided audio tours, a trail on Mount Stirling, and Resorts and the region. trail running offering (launched Copperhead, a flow-down trail that under a dedicated Run Buller is the first of its kind in Australia. Mount Buller Marketing brand), making gate entry It also includes trail links, and two Mount Buller Three-Year products available online, and skills parks. Marketing and Business launching the Snow Play in a As a result of these developments, Development Strategy Day tour. Mount Buller has been recognised The RMB works to maximise resort ——Delivering 150% growth in as Australia’s first International use and visitation on a year-round Bike Buller Facebook followers Mountain Bicycling Association basis, thereby ensuring that Mount and 40% growth in Mt Buller (IMBA) endorsed Ride Centre. Buller is a vibrant destination Facebook followers. This means that the Resort joins that is economically viable and ——The launch of a new multi- a select group of mountain biking sustainable. Key to the resort’s lingual winter offering including destinations around the world success in this area is the growth a Mandarin version of the that represent IMBA’s Model of its tourism market – that is, the Mt Buller website, dedicated Trail recognition for large-scale growth of Mount Buller’s valuable collateral and resort signage. mountain bike facilities that offer winter tourism trade and promotion something for every rider. of its mature product, and the ——Securing 5 new summer events ——Driving growth in international Building on this success, on 6 establishment of a profitable and visitation in winter via new trade December 2014 the RMB will attractive summer tourist offering. programs, participation in trade launch its biggest and most To this effect, the RMB follows a and sales missions to India, ambitious mountain bike trail three-year strategic marketing plan South East Asia and Indonesia, project to date – the Australian that aims to drive resort visitation delivering in-market training Alpine Epic.This 40km trail has and yield opportunities in both and involvement in international been identified by IMBA as being summer and winter. consumer travel shows. one of its Epic Model Trails, which means that it is world-class product that offers an iconic and diverse backcountry experience. 20
Our Community
Build and facilitate a year round vibrant community and be a valued community member through: ——Developing and enhancing village and community centres where people can congregate ——Seeking feedback and measuring the community’s response to our products, services and actions
Strategic Direction and Operations ——Acknowledging the cultural heritage of our region and celebrating our community’s history ——Supporting new and local business to enable a year round operation ——Facilitating key essential and emergency services required by the community
Village Character Implementation of the Mt Buller In 2013–14, the RMB undertook Mount Stirling development Resort Master Plan continues a number of initiatives to improve remains environmentally focused, to encourage the development the amenities of Mount Stirling, with initiatives such as new of a wide range of integrated including: resort facilities, infrastructure and interpretive walks, public toilets ——New horse facilities including accommodation. Such targeted and shelters and improved yards, water points and hitching development, in addition to facilities for horse riders. The rails at key locations; RMB continues to encourage and improved community services, ——Greater emphasis on long-term facilitate private and commercial encourages the growth of year- sustainable trail networks; development on Mount Buller by: round activity in the resorts and better utilisation of resort assets. ——Development of an alternate ——Working with and providing tobogganing area at Kings guidance to developers for Village Facilities Saddle for low snow conditions; development, submission and In 2013–14, the RMB undertook a ——Landscaping and amenity processing of planning and number of initiatives to improve the improvements at Howqua Gap; building permit applications; amenity of the Mount Buller Village, ——Intensive trail rehabilitation ——Continuing to develop the including: works in problem areas; and Village infrastructure and overall appearance; ——Completion of renovations ——Refurbished gates to protect and extensions to the Cow the environmental values of the ——Extensively marketing the Camp Plaza (now called Village mountain, and to assist with Resorts to provide incentives Square Plaza); improved traffic management. for commercial facility and accommodation operators to ——Working closely with existing remain open year-round; and lessees to negotiate building refurbishments required as part ——Providing and assisting events of their lease renewals; and activities. ——Resurfacing and repairing pathways and pavements within the Village Centre; and ——Ongoing Village beautification projects with native species. Annual Report 2013–14 21
Services for the Community These were all operated via licence Five Principles of Customer agreements out of the Alpine Service Emergency Services Central building. In 2013–14 the RMB enjoyed a The ‘Five Principles of Customer constructive relationship with the Resort Worker Accommodation Service’ have been developed to Victoria Police and Ambulance During the 2014 snow season remind all Mount Buller and Mount Victoria who were in attendance the RMB continued to provide Stirling employees of the five daily during the snow season and Resort Worker Accommodation simple steps involved in providing special events. The RMB would as a service to the Mount Buller exceptional customer service and also like to thank the CFA for its Chamber of Commerce. This ultimately happy repeat visitors. continued year round service at continues to be a successful These principles are explained Mount Buller and its consistent initiative and enables small and reinforced through Buller presence fostering a better businesses to access affordable Crew, RMB and Buller Ski Lift staff community. staff accommodation. orientation and training programs.
Ski Patrol Buller Crew 2014 Five Principles The RMB continued to work Buller Crew is a customer service 1. Greet the guest closely with Ski Patrol on Mount program that supports the Visitor Buller (a service provided by Experience Charter developed by 2. Know the mountain BSL) to minimise risk in the ski the RMB and promotes a unified 3. Offer to help fields. Victoria Police and Rural approach to customer service at Ambulance also provided excellent the resort. Participation in the Buller 4. Look your best service that contributed to a safe Crew program supports the Mount 5. Have fun skiing environment. Buller brand values by unifying all mountain staff through the “Buller Volunteer Ski Patrollers Way”. The program requires that In 2010–11 the RMB developed were actively involved in trail staff demonstrate the “Buller Way” a Visitor Experience Charter that maintenance, cleaning, stocktaking core values at all times, whether at was signed by the Mount Buller medical supplies and assisting work or on personal time. An integral Chamber of Commerce, the Mount and responding where first aid was part of the Buller Crew customer Buller Ratepayers Association, required. They spent time training service program is the ‘Employee of BSL and RMB at Mount Buller and consolidating their emergency the Week’ Award, which recognises that further reinforces a unified rescue skills with the Mount Buller employees’ pride in delivering approach to customer service at Ski Patrol, including shadowing exceptional service to guests, the Resort. professional patrollers on the residents and fellow resort staff. slopes. This winter, approximately 1,300 Emergency Management mountain staff participated in On Mount Stirling, the Volunteer The Mount Buller and Mount Buller Crew training sessions, Ski Patrol, under the direction of Stirling Alpine Resort Emergency consisting of a one-hour customer RMB Ski Patrol staff, is an essential Management Committee is service workshop and tour for component of winter safety and made up of approximately 20 new employees. Once again the representatives of the RMB, operations. During the 2014 snow ‘Employee of the Week’ Award season, the Volunteer Ski Patrol BSL, Victoria Police, CFA, State was highly successful in rewarding Emergency Service (SES), contributed a total of 106 work and encouraging a high level Department of Human Services days. There were 14 accidents of customer service across the (DHS), DELWP, Ambulance Victoria attended to on Mount Stirling this mountain. Businesses nominated and Buller Gas. There were two year. employees who demonstrated Emergency Management Planning outstanding customer service and Education winners received prizes donated Committee meetings held for the Mansfield Primary School from around the Resort, including 2013–14 period including one continued to provide a syllabus dinner vouchers, goggles, and a dedicated to preparation of a based education model during snow groomer ride to name a few. Community Bushfire Emergency winter via its Mt Buller annexe for Management Plan detailing the To help create a friendly and both internal and external students. management of people within the cooperative team environment Mansfield Secondary College resorts to prioritise the protection across the mountain, Buller Crew of life in the development of land. continued its syllabus and tutor hosted regular sports nights in the based education model via its Alpine Central Sports Hall which Mt Buller annexe and Mt Buller proved popular and were well Education Pty Ltd continued its attended. tutor based education model. 22
Our People
Be an employer of choice that values and is valued by all employees through: ——Investing in the safety, well-being and development of our people ——Embedding a culture where productivity, adaptability and progress is embraced, responsibility accepted and accountability delivered
Strategic Direction and Operations ——Providing an environment that will sector values and to the Code of Employees are selected and/ attract and retain high Conduct for Victorian Public Sector or promoted for positions on the quality staff Employees. basis of relative ability, knowledge, ——Engage with our experience and skill, in fair and The RMB’s Human Resource people to promote, open competition measured policies incorporate the conduct understand and against the requirements of the principles set out in Section 7 improve organisational position involved. All employees of the Public Administration Act performance are treated in a fair and equitable 2004. Values and associated manner without regard to race, behaviours are embedded in all religion, political opinions, sexual Core Values position descriptions and the preference, age, physical or mental The RMB has adopted the RMB’s performance appraisal disability, family responsibility, following core values: process incorporates a review pregnancy, national extraction or of how individuals demonstrate ——Communication – maintain social origin. these values. Compliance with an open, clear and concise two these policies is a condition of way flow of relevant information Occupational Health employment with the RMB. both internally within the RMB and Safety and externally; Public Sector Employment The RMB is responsible for ——Leadership – provide positive Principles providing a safe working and guidance and motivation and recreational environment, free The RMB has adopted the Public act in a way that upholds the of accidents and injuries, for all Sector Employment Principles RMB core values; RMB employees, contractors and as per Section 8 of the Public members of the public. The RMB ——Innovation – drive continuous Administration Act 2004. These is committed to ensuring that all improvement and be open and principles are embedded people affected by its activities are responsive to change; in the internal policies and protected from loss, risks to safety, ——Customer Service – strive to procedures of the RMB in the health and wellbeing. exceed customers’ expectations recruitment process, performance by understanding and management and in the resolution RMB staff members are responding to their needs; of any disputes. fundamental to the principles of ——Integrity – be honest, open risk management and OH&S, and ethical in dealings with Merit and equity and these responsibilities each other, customers and The RMB complies with the are imbedded in all position stakeholders; and Public Administration Act 2004 descriptions and are assessed as part of the performance appraisal ——Teamwork – work together by maintaining a workplace process. The RMB’s staff-based to achieve desired goals in a free of discrimination in line OH&S Committee formally met six supportive and co-operative with the Victorian Government’s times during the year. environment. merit and equity principles. The RMB continuously reviews its Public Sector Values human resource policies and Work Days Lost The RMB actively promotes and processes in areas such as equal During 2013-14, five days were lost encourages adherence to public opportunity and recruitment. due to four workplace injuries. Annual Report 2013–14 23
OH&S Performance 2014 Staff Awards Indicators 2012–13 2013–14 Target 2014 STAR Employee of the Year as OH&S committee meetings (formal) 4 6 4 nominated by their peers – Claire Quinn Workplace inspections (formal) 3 3 2 2014 STAR Team of the Year as nominated Incident Statistics by their peers – Environmental Services/ Mt Stirling Workdays lost 13 5 0 Injury incidents 2 4 0 2014 CEO’s Outstanding Team of the Year – No. of lost time injuries 0 4 0 Traffic Control and Snow Clearing 2014 CEO’s Outstanding Employee of the Incident Type Year – Jo Atkinson Manual handling 0 2 0 Slip, trip or fall 2 2 0 Stress 0 0 0 Laceration 0 0 0 Other 0 0 0
Workforce Data (At 31 October, 2014)
2013–14 2012–13 (comparison) Number of permanent employees Number of permanent employees 33 (32.29 EFT) (total) 33 (29 EFT) (total) Of these 14 were female and 19 were male. Seasonal staff Seasonal staff 51 (34 male and 17 female) (total) 40 (total) Tasks performed by seasonal staff included visitor services, resort entry, snow clearing, traffic control, car parking, toboggan slope and sports hall supervision, Mount Stirling Ski Patrol and general Resort work.
Staff Training and ——Alpine awareness training ——Bachelor of Business Development ——Driving in Adverse Weather (Marketing) The RMB supports training and Conditions ——Certificate IV Graphic Design development to ensure that all ——OH&S Compliance Training ——Certificate III in Water full-time, part-time and casual Operations employees have the necessary The RMB also encourages further ——Bushfire Regulations skills and qualifications to fulfil their or continuing study or training work requirements. linked to business needs. During ——Public Health and Water Quality 2013–14 training courses and Awareness All RMB employees must complete qualifications attained by staff ——Perform CPR and Apply First a basic level of training, including included: Aid Buller Crew (customer service) training and risk management ——Australian Ski Patrol Association ——Manual handling training. ——Customer Service ——Safety Management Training Some positions require specific ——First Aid ——Maintaining Chainsaws and trim qualifications or training, including: ——Fringe Benefit Tax –NTAA and Cross Cut Felled Trees ——Manual Handling ——Traffic Management ——Financial Controller Summit ——Executive Leadership accreditation Industrial Relations ——Authorised Officer training ——Emergency Management RMB staff (with the exception of (including client interaction and ——Certified Practicing Accountant Senior Appointments on GSERP defensive tactics) ——Certified Practising Accountant contracts) are employed under the ——Chemical handling (CPA) Mount Buller and Mount Stirling ——Ski Patrol ——Bachelor of Business Alpine Resort Management Board ——Snowmobile licensing (Accounting) Enterprise Agreement 2013–15. 24
Our Corporate Governance
——Buller Ski Lifts Pty Ltd (BSL); Local and Regional Authorities Maintain the integrity and ——Emergency services, including The RMB continues to consult with value of our organisation Ski Patrol; a range of industry experts and through sound governance authorities in the development ——Industry groups; and financial management, of new policies, procedures through: ——Environmental interest groups; and initiatives. In particular, ——Building strong and ——Recreational groups; neighbouring Crown Land managers (Parks Victoria, DELWP positive relationships ——Educational authorities and and Mansfield Shire Council) are with key stakeholders organisations; consulted to ensure best practice ——Planning for our future ——Land and property developers; land management. The RMB through robust strategic, ——Stirling Experience; also consults with other Victorian business and resort ——Business and commercial alpine resorts through the ARCC master planning and an informal network of chief operators; ——Driving fiscal executives, finance officers and ——Tourism operators; responsibility throughout environmental officers. Strategic Direction and Operations our business and finding ——Ski clubs; Indigenous People ways to become more ——Apartment owners; The RMB abides by Aboriginal efficient ——Contractors; Affairs Victoria reporting ——Identifying and ——Residents; requirements where any specific mitigating risks ——Visitors and guests; and indigenous initiatives or projects impacting the Resorts will be reported in accordance ——District communities. ——Meeting our regulatory with the necessary guidelines. No special initiatives were needed by requirements The Buller Marketing the RMB to meet these obligations. Coordination Group Stakeholder Consultation The Buller Marketing Strategic and Corporate The RMB acknowledges an Coordination Group (BMCG) Planning includes representatives from BSL, extensive range of stakeholders, As required under Section 53 High Country Reservations, Mount which encompasses the people of the Act, the RMB develops of Victoria, and individuals and Buller Chamber of Commerce, and lodges its Corporate Plan, organisations with a financial, legal Mount Buller Ratepayers including a Statement of Corporate or social interest in Mount Buller or Association and the RMB. The Intent and a Business Plan. As Mount Stirling. BMCG works to promote the required under Section 56F of the mountain in a co-operative and Act, the RMB reviews its Strategic RMB stakeholders include: consistent approach, with a single, Management Plan when required. ——State Government of Victoria, clear Mount Buller brand and The current plans use the key in particular the Minister for marketing campaign. The BMCG strategic directions of the Alpine Environment and Climate objectives include: Resorts Strategic Plan 2012 using RMB focus areas and objectives Change, the Minister for ——Providing an opportunity that were developed by the Board Finance and the Minister for for input and advice from Planning; and the Management Team stakeholders in respect to during 2011 and were revised and ——The Taungurung people, marketing activity; readopted in 2014. traditional custodians of the ——Communicating, monitoring land; and evaluating the RMB Three- Resort Master Plan ——Mansfield Shire Council; Year Marketing and Business The Mount Buller Resort Master ——Neighbouring land management Development Strategy; and Plan continues to guide the authorities; ——Creating sub-committees Resort’s development over the next 10 – 15 years as well as ——Alpine Resorts Coordinating to provide direction and providing confidence for individual Council (ARCC) and associated recommendations as required. stakeholders to commit investment entities; Currently, the BMCG incorporates dollars to the mountain. The ——Other Victorian alpine resorts; two sub-committees – the Sales renovation and extension of the ——RMB staff, committees and and Promotions Committee and Village Square Plaza (formerly Cow associated entities; Winter Brochure Committee. Camp Plaza) completed in May 2014 provides important guest ——Mount Buller Chamber of facilities and is a key component of Commerce; the Master Plan ——Mount Buller Ratepayers Association; Annual Report 2013–14 25
Significant changes in Summary of Operational and 2012–13 2013–14 financial position during Budget Objectives Actual Actual Variance the year $‘000 $‘000 $‘000
There are no significant matters Revenue 12,466 13,225 759 which changed the RMB’s financial Expenditure 12,107 12,555 448 position during the reporting Capital Works (including plant and equipment) 3,731 3,265 (466) period.
Major changes or factors Consultancies over $10,000 ($ ‘000) affecting performance Consultant Purpose of Total approved Expenditure Future committed The increase in gate entry revenue consultancy project fee 2012–13 expenditure ex GST ex GST Ex GST is a result of a 24% increase in Biosis Research Environmental $38 $38 Nil visitation in the 2014 snow season Consultancy & Analysis compared to 2013. Entura Hydro Tasmania Leakage Investigation $75 $75 Nil The RMB received $382,500 Feehan Consulting Water Project $14 $14 Nil in Grant Funding during 2014 Pty Ltd Consultancy compared to $175,000 in 2013 GHD Pty Ltd Sustainable Water $790 $790 Nil During 2014 the RMB received Security Consultancy less service charge infrastructure Jenham Solutions Pty Resort Operations $42 $42 Nil fees compared to 2013 as a once Ltd Consulting & Reports off charge for registering beds National Recruitment Recruitment and $11 $11 Nil installed within properties on Placement Services Mount Buller; Taungurung Clans Consultancy & Field $40 $40 Nil Aboriginal Corporation Work The change in operating Yabbie Pond Pty Ltd Waste Water $12 $12 Nil expenditure is primarily due to: Infrastructure Plan ——Increased costs of visitor related services due to the significant Consultancies under Government Advertising increase in visitation in 2014 $10,000 Expenditure ——Increase in ARCC contributions There were 14 consultancies that Government Policy requires during 2014; were less than $10,000 totalling disclosure of all Government ——An increase in salaries and $46,198 during 2013–14. Advertising Expenditure with a total wages, including the impact of media buy of $150,000 or greater the Enterprise Agreement; Consultancies over $10,000 (exclusive of GST). No Government ——Increased costs in relation There were 8 consultants engaged Advertising Expenditure was to utilities, contracts and where total remuneration was incurred by the ARMB during the insurance. greater than $10,000. Refer to the reporting period. table above for details. Government Funding The RMB acknowledges Major Contracts investment in Mount Buller and There were no major contracts Mount Stirling by the Victorian greater than $10 million entered Government in 2013-14 as follows: into during the reporting period.
——$82,500 – Department of Subsequent Events Environment and Primary Industries (DEPI) funding There have been no events towards the Alpine Risk subsequent to the year that Mitigation Program Actual significantly impact on operations in future years. — $300,000 – Mansfield Shire Council through RDV funding toward the EPIC. 26
Attestation for compliance Attestation on compliance with the Australian/New Zealand with the Ministerial Standing Risk Management Standard Direction 4.5.5.1 – Insurance I, John Huber, certify that the Mount Buller and Mount Stirling I, John Huber, certify that the Alpine Resort Management Board has risk management Mount Buller and Mount Stirling processes in place consistent with the Australian/New Zealand Alpine Resort Management Board Standard 4360:2004 and an internal control system is in has complied with Ministerial place that enables the executive to understand, manage and Direction 4.5.5.1 – Insurance. satisfactorily control risk exposures. The Risk, Audit and Finance committee verifies this assurance and that the risk profile of the Mount Buller and Mount Stirling Alpine Resort Management Board has been critically reviewed within the last 12 months. Strategic Direction and Operations
John Huber Chief Executive Officer
John Huber Chief Executive Officer
Risk Management of safety. The RMB maintains a risk implementation of the Victorian In June 2012 the Victorian register that identifies risks to the Industry Participation Policy (VIPP). Managed Insurance Authority organisation and those associated Departments and public bodies are (VMIA) conducted a Risk with the use of Crown Land. The required to apply VIPP in all tenders Framework Quality Review. The register, developed in association over $3 million in metropolitan review was based on a seven- with the VMIA, features RMB Melbourne and $1 million in element maturity model informed controls and mitigation strategies. regional Victoria. The RMB has not by the Australian Standard for The register is reviewed on a commenced any tenders or entered Risk Management AS/NZS ISO regular basis to ensure proper into any contracts worth $1 million 31000:2009. The VMIA’s risk consideration of newly identified or more during the year ended 31 management framework rating and existing risks. October 2014. acknowledged the RMB as having developed some good National Competition Policy Freedom of Information risk management practices and Competitive neutrality seeks to The RMB is considered to be arrangements, and that it is enable fair competition between a ‘Government Agency’ under reviewing and improving its risk government and private sector the terms of the Freedom of framework over time. businesses. Any advantages or Information Act 1982. Accordingly, disadvantages that government it is required to comply with Risk management principles apply businesses may experience, prescribed procedures under to all areas of RMB operations and simply as a result of government which members of the public include health and safety, property, ownership, should be neutralised. may gain access to information environment, finance and internal The RMB continues to implement held by agencies. A decision to controls. The RMB’s organisational and apply this principle in its release information is made by the culture is built around providing a business undertakings. Authorised Officer. safe and rewarding experience for The RMB has determined that the guests, residents and employees Implementation of Authorised Officer for Freedom of visiting, living or working in the the Victorian Industry Information requests during the Resorts. Participation Policy 2013–14 reporting period is the The RMB has a Risk Management In October 2003, the Victorian Chief Financial Officer. Requests Policy and develops risk Parliament passed the Victorian for information under the Freedom management systems to Industry Participation Policy Act of Information Act 1982 are subject assist staff to understand their 2003 which requires public bodies to a $26.50 fee, and should be responsibilities and create a culture and departments to report on the addressed to: Annual Report 2013–14 27
Freedom of Information Officer Mount Buller & Mount Stirling Gifts, Benefits and Hospitality Framework Attestation Alpine Resort Management Board I, John Huber, Chief Executive Officer, of Mount Buller Mount Stirling Alpine Resort Post Office Mount Buller, VIC 3723 Management Board certify that: In 2013–14, there was two requests for the RMB to provide information ——my public entity has gifts, benefits and hospitality policies and procedures in place; under the Freedom of Information ——these policies and procedures are consistent with the minimum requirements and Act 1982. accountabilities outlined in the Gifts, Benefits and Hospitality Policy Framework for the Victorian Public Sector – Revised April 2012 issued by the Public Sector Availability of other information Standards Commissioner; and The following is retained by the ——these policies and procedures are updated, promulgated and provided to the audit officer accountable and is available committee for review at least once a year. to the relevant Minister, Members of Parliament and the public on John Huber request: Chief Executive Officer ——Details of shares held by a Date: 31 October 2014 senior officer as nominee or held beneficially in a statutory authority or subsidiary; ——Details of changes in prices, fees, charges, rates and levies; ——Details of any major external making of disclosures that reveal Jennifer Berensen reviews carried out; corrupt conduct, conduct involving Protected Disclosure ——Details of major research and a substantial mismanagement Co-ordinator development activities; of public resources, or conduct Department of Environment, ——Details of official overseas involving a substantial risk to Land, Water & Planning travel undertaken including a public health and safety or the PO Box 500 summary of the objectives and environment. East Melbourne Vic 3002 outcomes of each visit; The RMB will take all reasonable Ph: 9637 8697 ——Details of major promotional, steps to protect people who Email: public relations and marketing make such disclosures from any [email protected] activities; and detrimental action in reprisal. It will Alternatively, disclosures of ——Details of assessments and also afford natural justice to the improper conduct or detrimental measures undertaken to person who is the subject of the action by the RMB or its employees improve the occupational health disclosure. may also be made directly to the and safety of employees. Ombudsman. Compliance with DataVic The Ombudsman Victoria Compliance with Protective access policy Disclosures Act 2012 Consistent with the DataVic Access Level 9, 459 Collins Street (North Tower) The Protective Disclosures Act Policy issued by the Victorian Melbourne VIC 3000 2012 (Vic) enables staff to make Government in 2012, the board Telephone: (03) 9613 6222 disclosures about improper intends that data tables that it Toll free: 1800 806 314 conduct by public bodies, may produce in the future will be Internet: www.ombudsman.vic.gov.au their staff and officers. The Act available at www.data.vic.gov.au Email: aims to ensure openness and in machine readable format. [email protected] accountability by encouraging Reporting procedures people to make disclosures and Disclosures under the ensuring their protection from Information and procedures Protective Disclosures Act 2012 regarding disclosures of improper unfavorable action when they do. In 2013–14 there were no conduct or detrimental action by The RMB does not tolerate disclosures received. the RMB or its employees can be improper conduct by employees, found online at; The current procedures or the taking of reprisals against established by the public body are those who come forward to www.delwp.vic.gov.au available on the RMB website; disclose such conduct. DELWP Home — About Us www.mtbuller.com.au/Resort- It is committed to ensuring — Legislation — Protected Management3/Our-Governance/ transparency and accountability in Disclosures Policies-Reports2 its administrative and management Reports and disclosure may practices, and supports the be made to: 28
Statement by the Mount Buller and Mount Stirling Alpine Resort Management Board Chairman of the Board and Chief Executive Officer and Chief Financial Officer
The attached financial statements for the Mount Buller and Mount Stirling Alpine Resort Management Board have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and accompanying notes, presents fairly the financial transactions during the year ended Financial Statements 31 October 2014 and financial position of the Mount Buller and Mount Stirling Alpine Resort Management Board at 31 October 2014. At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 18 December 2014.
Jennifer Hutchison John Huber Glenn Thornton Chairman Chief Executive Officer Chief Financial Officer
18 December 2014. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 29
Comprehensive Operating Statement For the financial year ended 31 October 2014
Note 2014 2013 $‘000 $‘000 Continuing Operations Income from transactions Gate entry 1(f) 4,584 3,613 Site rental 1(f) 3,842 3,756 Service charges 1(f) 3,538 3,382 Service charge – infrastructure fee 1(f) 107 303 Marketing revenue 167 178 Taxi transport commission 112 85 Government grants 1(f) 382 175 Interest income 1(f) 123 170 Asset Received at Fair Value 1(f) – 315 Other income 370 489 Total income from transactions 13,225 12,466
Expenses from transactions Village operations 1(g) 3,782 3,583 Visitor services 1(g) 2,163 1,991 Administration and corporate services 1(g) 2,981 2,972 Land management and environmental services 1(g) 1,249 1,293 Health services 1(g) 257 234 Marketing 1(g) 1,582 1,601 ARCC Contributions 1(g) 433 309 Interest expense 1(g), 2(b) 108 124 Total expenses from transactions 12,555 12,107
Net result from transactions (net operating balance) 670 359
Other economic flows included in net result Net gain/(loss) on non-financial assets 3 (11) (90) Total other economic flows included in net result (11) (90)
Net result 659 269
Other economic flows – other comprehensive income Items that will not be reclassified to net result Changes in physical asset revaluation surplus 18 – – Total other economic flows – other comprehensive income – –
Comprehensive result 659 269
The above Comprehensive Operating Statement should be read in conjunction with the notes to the financial statements. 30
Balance Sheet As at 31 October 2014
Note 2014 2013 $‘000 $‘000 Assets
Financial Assets Cash and deposits 17(a) 5,123 5,809 Receivables 4 472 1,036 Total Financial Assets 5,595 6,845
Non-Financial Assets Inventories 5 24 18 Financial Statements Infrastructure, property, plant and equipment 6 165,107 163,565 Other non-financial assets 7 455 503 Total Non-Financial Assets 165,586 164,086
Total Assets 171,181 170,931
Liabilities Payables 8 1,346 1,518 Borrowings 9 1,862 2,205 Provisions 10 651 520 Other liabilities 12 128 153 Total Liabilities 3,987 4,396
Net Assets 167,194 166,535
Equity Contribution by Owner 137,290 137,290 Accumulated Surplus 7,311 6,652 Physical Asset revaluation surplus 18 22,593 22,593
Net Worth 167,194 166,535
Commitments for expenditure 14 Contingent assets and contingent liabilities 15
The above Balance Sheet should be read in conjunction with the notes to the financial statements. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 31
Statement of Changes in Equity For the financial year ended 31 October 2014
Physical Asset Accumulated Contributions by Total Revaluation Surplus Owners Surplus $’000 $’000 $’000 $’000
Balance at 1 November 2012 22,593 6,383 137,195 166,171
Net result for the year – 269 – 269 Other comprehensive income for the year – – – – Transactions with owners in the capacity as owners – – 95 95 Balance at 31 October 2013 22,593 6,652 137,290 166,535
Net result for the year – 659 – 659 Other comprehensive income for the year – – – – Transactions with owners in the capacity as owners – – – – Balance at 31 October 2014 22,593 7,311 137,290 167,194
The above Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.
Cash Flow Statement For the financial year ended 31 October 2014
Note 2014 2013 $‘000 $‘000 Cash Flows from Operating Activities Receipts from customers 14,165 11,770 Receipts from government 459 352 Payments to suppliers and employees (11,223) (11,391) Goods & Services Tax paid to the ATO (285) (156) Interest received 135 172 Interest and other costs of finance paid (108) (124)
Net Cash Flow from/(used in) operating activities 17(b) 3,143 623
Cash flows from Investing Activities Payments for infrastructure, property, plant and equipment (3,490) (2,606) Proceeds from sale of property, plant and equipment 4 74
Net cash from/(used in) investing activities (3,486) (2,532)
Cash Flows from Financing Activities Proceeds from Capital Contributions - 95 Repayment of borrowings (343) (285)
Net cash from/(used in) financing activities (343) (190)
Net increase/(decrease) in cash and cash equivalents (686) (2,099)
Cash and cash equivalents at the beginning of the financial year 5,809 7,908
Cash and deposits at the end of the financial year 17(a) 5,123 5,809
The above Cash Flow Statement should be read in conjunction with the notes to the financial statements. 32
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of (b) Basis of accounting These financial statements are Significant Accounting preparation and measurement presented in Australian dollars Policies The accrual basis of accounting and prepared in accordance with The Mount Buller and Mount has been applied in the the historical cost convention Stirling Alpine Resort Management preparation of these financial except for: Board (RMB) is constituted under statements whereby assets, ——non financial physical the Alpine Resorts (Management) liabilities, equity, income and assets which, subsequent to Act 1997 and has its principal expenses are recognised in the acquisition, are measured at place of business located at reporting period to which they a revalued amount being their Mt Buller, Victoria, Australia. relate, regardless of when cash is fair value at the date of the received or paid. These annual financial statements revaluation less any subsequent represent the audited general Judgements, estimates and accumulated depreciation and subsequent impairment losses.
Financial Statements purpose financial statements for assumptions are required to be the Mount Buller and Mount Stirling made about the carrying value Revaluations are made with Alpine Resort Management Board of assets and liabilities, income sufficient regularity to ensure for the year ending 31 October and expenses that are not readily that the carrying amounts do 2014. The purpose of the report is apparent from other sources. not materially differ from their to provide users with information The estimates and associated fair value. about the RMB’s stewardship of assumptions are based on Consistent with AASB 13 Fair Value resources entrusted to it. professional judgements derived Measurement, the RMB determines from historical experience and (a) Statement of compliance the policies and procedures various other factors that are for both recurring fair value The general purpose financial believed to be reasonable under measurements such as property, statements have been prepared the circumstances. Actual results plant and equipment and financial in accordance with the Financial may differ from these estimates. instruments and for non recurring Management Act 1994 (FMA) fair value measurements such and applicable Australian Revisions to accounting estimates as non financial physical assets Accounting Standards (AAS) which are recognised in the period in held for sale, in accordance with include Interpretations issued which the estimate is revised and the requirements of AASB 13 and by the Australian Accounting also in future periods that are the relevant Financial Reporting Standards Board (AASB). In affected by the revision. Directions. particular, they are presented Judgements and assumptions in a manner consistent with the made by management in the All assets and liabilities for which requirements of the AASB 1049 application of AASs that have fair value is measured or disclosed Whole of Government and General significant effects on the financial in the financial statements are Government Sector Financial statements and estimates relate categorised within the fair value Reporting. to: hierarchy, described as follows, based on the lowest level input Where appropriate, those AAS ——The fair value of land, buildings, that is significant to the fair value paragraphs applicable to not-for- infrastructure, plant & measurement as a whole: profit entities have been applied. equipment, (refer to Note 1(j)); ——Level 1 — Quoted (unadjusted) Accounting policies are selected ——The useful lives of assets for market prices in active markets and applied in a manner which depreciation purposes; for identical assets or liabilities ; ensures that the resulting financial ——Actuarial assumptions for ——Level 2 — Valuation techniques information satisfies the concepts employee benefit provisions for which the lowest level input of relevance and reliability, thereby based on likely tenure of that is significant to the fair ensuring that the substance of the existing staff, patterns of leave value measurement is directly or underlying transactions or other claims, future salary movements indirectly observable; and events is reported. and future discount rates, (refer ——Level 3 — Valuation techniques These annual financial to Note 1(k)). for which the lowest level statements were authorised for input that is significant to the issue by the Chairman of the fair value measurement is Mount Buller and Mount Stirling unobservable. Alpine Resort Management Board on 18 December 2014. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 33
Notes to the Financial Statements Notes to the Financial Statements for the year ended 31 October 2014 for the year ended 31 October 2014
Note 1 Summary of (c) Reporting entity Transactions are those economic Significant Accounting The financial statements cover flows that are considered to arise Policies (continued) the Mount Buller and Mount as a result of policy decisions, For the purpose of fair value Stirling Alpine Resort Management usually an interaction between disclosures, the RMB has Board (RMB) as an individual two entities by mutual agreement. determined classes of assets and reporting entity. They also include flows in an entity liabilities on the basis of the nature, such as depreciation where the The RMB is an entity established characteristics and risks of the owner is simultaneously acting under the Alpine Resorts asset or liability and the level of the as the owner of the depreciating (Management) Act 1997. fair value hierarchy as explained asset and as the consumer above. Its principal address is: of the service provided by the asset. Taxation is regarded as In addition, the RMB determines Mount Buller and Mount Stirling mutually agreed interactions whether transfers have occurred Alpine Resort Management Board between the government and between levels in the hierarchy Alpine Central taxpayers. Transactions can be by re assessing categorisation Summit Road in kind (e.g. assets provided/ (based on the lowest level input Mount Buller VIC 3723 given free of charge or for nominal that is significant to the fair value The RMB is a public body acting consideration) or where the measurement as a whole) at the on behalf of the Crown, and final consideration is cash. In end of each reporting period. reporting to the Department simple terms, transactions arise The Valuer-General Victoria (VGV) of Environment and Primary from the policy decisions of the is the RMB’s independent valuation Industries. government. agency. (d) Scope and presentation Other economic flows included The RMB, in conjunction with VGV of financial statements in net result are changes in the volume or value of an asset or monitors changes in the fair value Comprehensive operating liability that do not result from of each asset through relevant statement transactions. It includes: data sources to determine whether The comprehensive operating revaluation is required. statement comprises three ——gains and losses from The accounting policies set out components, being ‘net result disposals, revaluations and below have been applied in from transactions’ (or termed as impairments of non financial preparing the financial statements ‘net operating balance’), ‘other physical and intangible assets; for the year ended 31 October economic flows included in net ——fair value changes of financial 2014 and the comparative result’, as well as ‘other economic instruments. information presented for the year flows – other comprehensive The net result is equivalent to profit ended 31 October 2013. income’. or loss derived in accordance with Not-for-profit status The sum of the former two, AASs. Under the Australian Equivalent of together with the net result from discontinued operations, This classification is consistent with International Financial Reporting the whole of government reporting represents the net result. Standards (AIFRS), there are format and is allowed under AASB requirements that apply specifically Net result from transactions 101 Presentation of Financial to not-for-profit entities that are or net operating balance is a Statements. not consistent with International key fiscal aggregate and is Balance sheet Financial Reporting Standards income from transactions minus Assets and liabilities are presented (IFRS) requirements. The RMB expenses from transactions. in liquidity order with assets does not have profit generation as It is a summary measure of aggregated into financial assets a prime objective. Consequently the ongoing sustainability of and non-financial assets. where appropriate the RMB has operations. It excludes gains and elected to apply options and losses resulting from changes in Current and non-current assets exemptions within AIFRS that are price levels and other changes and liabilities (non-current being applicable to not-for-profit entities. in the volume of assets. It is the those assets or liabilities expected component of the change in net to be recovered or settled more worth that is due to transactions than 12 months after the reporting period) are disclosed in the notes, and can be attributed directly to where relevant. the RMB. 34
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of AASB 13 Fair Value AASB 119 Employee benefits Significant Accounting Measurement In 2013-14, the RMB has applied Policies (continued) AASB 13 establishes a single AASB 119 Employee benefits Cash flow statement source of guidance for all fair value (September 2011, as amended) Cash flows are classified according measurements. AASB 13 does not and the related consequential to whether or not they arise from change when the RMB is required amendments for the first time. to use fair value, but rather operating, investing, or financing The revised AASB 119 changes provides guidance on how to activities. This classification is the accounting for defined benefit measure fair value under Australian consistent with requirements under plans and termination benefits. The Accounting Standards when fair AASB 107 Statement of cash flows. most significant change relates value is required or permitted. For cash flow statement to the accounting for changes in presentation purposes, cash and The RMB has considered the defined benefit obligation and plan
Financial Statements cash equivalents include bank specific requirements relating to assets. As the current accounting overdrafts, which are included as highest and best use, valuation policy is for the Department of current borrowings on the balance premise, and principal (or most Treasury and Finance to recognise sheet. advantageous) market. The and disclose the State’s defined methods, assumptions, processes benefit liabilities in its financial Statement of changes in equity and procedures for determining fair statements, changes in defined The statement of changes in value were revisited and adjusted benefit obligations and plan assets equity presents reconciliations of where applicable. In light of AASB will have limited impact on the non owner and owner changes 13, the RMB has reviewed the RMB. in equity from opening balances fair value principles as well as its The revised standard also at the beginning of the reporting current valuation methodologies changes the definition of short period to the closing balances at in assessing the fair value, term employee benefits. These the end of the reporting period. It and the assessment has not were previously benefits that were also shows separately changes materially changed the fair values expected to be settled within due to amounts recognised in recognised. the ‘Comprehensive result’ and twelve months after the end of amounts related to ‘Transactions However, AASB 13 has the reporting period in which the with owner in its capacity as predominantly impacted the employees render the related owner’. disclosures of the RMB. It requires service, however, short term specific disclosures about employee benefits are now defined Rounding of amounts fair value measurements and as benefits expected to be settled Amounts in the financial disclosures of fair values, some of wholly within twelve months after statements (including the notes) which replace existing disclosure the end of the reporting period have been rounded to the nearest requirements in other standards, in which the employees render thousand dollars, unless otherwise including AASB 7 Financial the related service. As a result, stated. Figures in the financial Instruments: Disclosures. accrued annual leave balances statements may not equate due to which were previously classified by The disclosure requirements of rounding. the RMB as short term employee AASB 13 apply prospectively benefits no longer meet this (e) Changes in accounting and need not be applied in definition and are now classified policies comparative information before as long term employee benefits. first application. Consequently, Subsequent to the 2012-13 This has resulted in a change of the 2012-13 comparatives of reporting period, the following new measurement for the annual leave these disclosures have not been and revised Standards have been provision from an undiscounted to provided, except for financial adopted in the current period with discounted basis. their financial impact detailed as instruments, of which the fair value below. disclosures are required under AASB 7 Financial Instruments: Disclosures. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 35
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of Significant Accounting Policies (continued) Comparative amounts for 2012-13 and the related amounts as at 1 November 2012 have been restated in accordance with the relevant transitional provisions set out in AASB 119. The impact is as follows:
Impact on comprehensive result ($ thousand) 2012–13
Increase in employee expense 1
Impacts on liabilities and equity ($ thousand) As at 1 Nov 2012 as AASB 119 As at 1 Nov 2012 previously reported adjustments (restated) Current Employee Benefit Provision – Annual Leave 154 – 154 Accumulated surplus 6,383 – 6,383
As at 31 Oct 2013 AASB 119 As at 31 Oct 2013 as previously adjustments (restated) reported Current Employee Benefit Provision – Annual Leave 162 1 163 Accumulated surplus 6,653 (1) 6,652
(f) Income from transactions Gate entry However grants and contributions Income is recognised to the Gate entry revenue (including from received from the Victorian State extent that it is probable that the the sale of season access passes) Government which were originally economic benefits will flow to is recognised when received. appropriated by Parliament as additions to net assets or where the RMB and the income can be Land release reliably measured at Fair Value. the Minister for Finance and the Revenue from the sale of rights to Minister for Environment and Service charges lease and develop crown land is Climate Change have indicated Service charge revenue is recognised on the execution of a are in the nature of owners’ brought to account when a rate/ contract of sale, following approval contributions are accounted for as tariff is levied or determined for by the Minister of Environment and equity (contributed capital). service charges leviable under Climate Change. Any deposits Section 13 of the Alpine Resorts received prior to approval from the Assets Received at Fair Value (Management) Act 1997. A service Minister and execution of contract Contributions of assets received charge infrastructure fee is also of sale is recorded as unearned free of charge or for nominal levied upon site holders where revenue. consideration are recognised at fair value when control is obtained development or redevelopment Interest leading to an increased number of over them, irrespective of whether Interest revenue is recognised beds occurs. This is levied upon these contributions are subject to upon gaining the control of completion of the development. restrictions or conditions over their the right to receive the interest use. Site rental payment. Site rental income from leased Grants Crown land is recognised annually Income from grants (other in the comprehensive operating than contribution by owners) is statement in accordance with the recognised when the RMB obtains terms and conditions of individual control over the contribution. leases. 36
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of Depreciation Net gain/(loss) on non-financial Significant Accounting All infrastructure assets, buildings, assets Policies (continued) plant and equipment and other Net gain/(loss) on non-financial (g) Expenses from transactions non-financial physical assets assets and liabilities includes that have finite useful lives are realised and unrealised gains and Expenses from transactions are depreciated. Depreciation is losses as follows: recognised as they are incurred calculated on a straight-line basis, and reported in the financial year to Revaluation gains/(losses) of at rates that allocate the asset’s which they relate. non-financial physical assets value, less any estimated residual Refer to Note 1(j) Revaluations of Employee expenses value, over its estimated useful non-financial physical assets. Refer to Note 1(k) regarding life. The estimated useful lives, employee benefits. residual values and depreciation Net gain/(loss) on disposal of method are reviewed at the end non-financial assets These expenses include all costs Financial Statements of each annual reporting period Any gain or loss on the sale of related to employment (other and adjustments made where non-financial assets is recognised than superannuation which is appropriate. at the date of disposal and is accounted for separately) including determined after deducting from wages and salaries, fringe benefits Land, land under declared the proceeds the carrying value of tax, leave entitlements, redundancy roads, and core cultural assets, the asset at that time. payments and WorkCover which are considered to have an premiums. indefinite life, are not depreciated. Impairment of non-financial Depreciation is not recognised in assets Superannuation respect of these assets because Items of infrastructure, property, The amount recognised in their service potential has not, plant and equipment are the comprehensive operating in any material sense, been assessed annually for indicators statement is the employer consumed during the reporting of impairment. If there is an contributions for members of period. indication of impairment, the both defined benefit and defined assets concerned are tested as The following useful lives are used contribution superannuation plans to whether their carrying value in the calculation of depreciation that are paid or payable during the exceeds their recoverable amount. consistent with the prior year: reporting period. Where an asset’s carrying value The Department of Treasury and Buildings exceeds its recoverable amount, Finance (DTF) in their Annual 15 to 84 years the difference is written-off as an other economic flow, except to the Financial Statements disclose Roads and car parks extent that the write-down can be on behalf of the State as the infrastructure assets debited to an asset revaluation sponsoring employer, the net 50 to 80 years defined benefit cost related to surplus amount applicable to that the members of these plans as Infrastructure assets class of asset. 2 to 100 years an administered liability. Refer to If there is an indication that there DTF’s Annual Financial Statements Other plant and equipment has been a change in the estimate for more detailed disclosures in 3 to 20 years of an asset’s recoverable amount relation to these plans. since the last impairment loss Interest expense Performance payments was recognised, the carrying Interest expense is recognised in amount shall be increased to Performance payments for the the period in which it is incurred. RMB’s Executive Officers and its recoverable amount. The staff are based on a percentage (h) Other economic flows impairment loss is reversed only of the annual salary package included in the net result to the extent that the asset’s provided under their employment Other economic flows measure carrying amount does not exceed contracts. Unpaid, but committed, the change in volume or value the carrying amount that would employee performance payments of assets or liabilities that do not have been determined, net of are recognised as a liability in the result from transactions. depreciation or amortisation, if financial statements. Performance no impairment loss had been payments are assessed and paid recognised in prior years. annually where applicable. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 37
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of Receivables judgement is applied in assessing Significant Accounting Receivables consist of: materiality using estimates, Policies (continued) averages and other computational ——statutory receivables, such methods in accordance with AASB It is deemed that, in the event as amounts owing from the 136 Impairment of Assets. of the loss or destruction of an Victorian Government and GST asset, the future economic benefits input tax credits recoverable; (j) Non-financial assets arising from the use of the asset and Inventories will be replaced unless a specific ——contractual receivables, such Inventories include stores and decision to the contrary has been as debtors in relation to goods materials used in the operation of made. The recoverable amount for and services, loans to third the waste water treatment plant, most assets is measured at the parties and accrued investment snow clearing operation and minor higher of depreciated replacement income. amounts of merchandise material. cost and fair value less costs These items are stated at the lower to sell. Recoverable amount for Receivables are recognised initially of cost and current replacement assets held primarily to generate at fair value and subsequently cost. net cash inflows is measured at measured at amortised cost, using the higher of the present value of the effective interest method, less Infrastructure, Property, plant future cash flows expected to be an allowance for impairment. and equipment obtained from the asset and fair A provision for doubtful receivables All non-financial physical assets value less costs to sell. is made when there is objective are measured initially at cost and Refer to Note 1(j) in relation to the evidence that the debts may not be subsequently revalued at fair value recognition and measurement of collected and bad debts are written less accumulated depreciation non-financial assets. off when identified. and impairment. Where an asset is received for no or nominal Other gains/(losses) from other Impairment of financial assets consideration, the cost is the economic flows At the end of each reporting asset’s fair value at the date of Other gains/(losses) from other period, the RMB assesses whether acquisition. economic flows include the gains there is objective evidence that a The initial cost for non financial or losses from: financial asset or group of financial physical assets under a finance assets is impaired. All financial ——transfer of amounts from the lease (refer to Note 1(l)) is instrument assets, except those reserves and/or accumulated measured at amounts equal to the measured at fair value through surplus to net result due to fair value of the leased asset or, profit or loss, are subject to annual disposal or derecognition or if lower, the present value of the review for impairment. reclassification; and minimum lease payments, each ——the revaluation of the present Receivables are assessed for bad determined at the inception of the value of the long service leave and doubtful debts on a regular lease. basis. Those bad debts considered liability due to changes in the Non-financial physical assets such as written off by mutual consent bond interest rates. as Crown land are measured at fair are classified as a transaction value with regard to the property’s (i) Financial assets expense. Bad debts not written highest and best use after due Cash and deposits off by mutual consent and the consideration is made for any legal Cash and deposits recognised allowance for doubtful receivables or physical restrictions imposed on on the balance sheet comprise are classified as ‘other economic the asset, public announcements cash on hand and cash at bank, flows’ in the net result. or commitments made in relation deposits at call and those highly The amount of the allowance is the to the intended use of the asset. liquid investments (with an difference between the financial Theoretical opportunities that may original maturity of three months asset’s carrying amount and the be available in relation to the asset or less), which are held for the present value of estimated future are not taken into account until it is purpose of meeting short term cash flows, discounted at the virtually certain that the restrictions cash commitments rather than for effective interest rate. will no longer apply. Therefore, investment purposes, and readily unless otherwise disclosed, the convertible to known amounts of In assessing impairment of current use of these non financial cash and with an insignificant risk statutory (non-contractual) physical assets will be their highest of changes in value. financial assets, which are not and best uses. financial instruments, professional 38
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of For the accounting policy on flows) in the net result. Significant Accounting impairment of non-financial Net revaluation decreases are Policies (continued) physical assets, refer to recognised in ‘other economic impairment of non-financial assets The fair value of cultural assets flows – other comprehensive under Note 1(h) Impairment of non- and collections, heritage assets income’ to the extent that a financial assets. and other non financial physical credit balance exists in the asset assets (including crown land and Non financial physical assets revaluation surplus in respect infrastructure assets) that the constructed by the RMB of the same class of property, RMB intends to preserve because The cost of non financial physical plant & equipment. The net of their unique historical, cultural assets includes the cost of all revaluation decrease recognised or environmental attributes, is materials used in construction, in ‘other economic flows – other measured at the replacement cost direct labour on the project, and an comprehensive income’ reduces of the asset less, where applicable, the amount accumulated in
Financial Statements appropriate proportion of variable accumulated depreciation and fixed overheads. equity under the physical asset (calculated on the basis of revaluation surplus. such cost to reflect the already Revaluations of non financial consumed or expired future physical assets Revaluation increases and decreases relating to individual economic benefits of the asset) Non financial physical assets assets in a class of property, plant and any accumulated impairment. are measured at fair value on a & equipment are offset against These policies and any legislative cyclical basis in accordance with one another within that class but limitations and restrictions imposed the Financial Reporting Directions are not offset in respect of assets on their use and/or disposal may (FRD’s) issued by the Minister for in different classes. The physical impact their fair value. Finance. A full revaluation normally asset revaluation surplus is not occurs every five years, based Road network assets and transferred to accumulated funds upon the asset’s government other infrastructure assets are on derecognition of the relevant purpose classification but may measured at fair value, determined asset. by reference to the asset’s occur more frequently if fair value depreciated replacement cost. assessments indicate material Other non-financial assets changes in values. Independent Prepayments Land under declared roads valuers are used to conduct Prepayments represent payments acquired prior to 1 July 2008 these scheduled revaluations. in advance of receipt of goods or is measured at fair value. Land Certain infrastructure assets services or that part of expenditure under declared roads acquired on are revalued using specialised made in one accounting period or after 1 July 2008 is measured advisors. Any interim revaluations covering a term extending beyond initially at cost of acquisition and are determined in accordance that period. subsequently at fair value. The fair with the requirements of the value methodology applied by the FRDs. Revaluation increases or Intangible assets Valuer-General Victoria is based decreases arise from differences Intangible assets are initially on discounted site values for between an asset’s carrying value recognised at cost. Subsequently, relevant municipal areas applied and fair value. intangible assets with finite to land area under the arterial Net revaluation increases (where useful lives are carried at cost road network, including related less accumulated depreciation/ reservations. the carrying amount of a class of assets is increased as a result amortisation and accumulated The fair value of plant, equipment of a revaluation) are recognised impairment losses. Costs incurred and vehicles, is normally in ‘Other economic flows – other subsequent to initial acquisition are determined by reference to the comprehensive income’ and capitalised when it is expected that asset’s depreciated replacement accumulated in equity under the additional future economic benefits cost. For plant, equipment and physical asset revaluation surplus. will flow to the RMB. vehicles, existing depreciated However, the net revaluation historical cost is generally a increase is recognised in the net reasonable proxy for depreciated result to the extent that it reverses a replacement cost because of the net revaluation decrease in respect short lives of the assets concerned. of the same class of property, plant & equipment previously recognised as an expense (other economic Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 39
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of The classification depends on ——present value if the RMB does Significant Accounting the nature and purpose of the not expect to wholly settle within Policies (continued) interest bearing liabilities. The RMB 12 months. determines the classification of its (k) Liabilities (ii) Long service leave interest bearing liabilities at initial Payables recognition. Liability for long service leave (LSL) Payables consist of: is recognised in the provision for Provisions employee benefits. ——contractual payables, such Provisions are recognised when as accounts payable, and the RMB has a present obligation, Unconditional LSL is disclosed unearned income including the future sacrifice of economic in the notes to the financial deferred income. Accounts benefits is probable, and the statements as a current liability payable represent liabilities for amount of the provision can be even where the RMB does not goods and services provided measured reliably. expect to settle the liability within to the RMB prior to the end 12 months because it will not have of the financial year that are The amount recognised as a the unconditional right to defer unpaid, and arise when the provision is the best estimate of the the settlement of the entitlement RMB becomes obliged to make consideration required to settle the should an employee take leave future payments in respect of present obligation at the reporting within 12 months. the purchase of those goods date, taking into account the risks The components of this current and services; and and uncertainties surrounding the LSL liability are measured at: ——statutory payables, such as obligation. Where a provision is goods and services tax and measured using the cash flows ——undiscounted value— fringe benefits tax payables. estimated to settle the present component that the RMB obligation, its carrying amount is expects to wholly settle within Contractual payables are classified the present value of those cash 12 months; and as financial instruments and flows, using the discount rate that ——present value—component that categorised as financial liabilities at reflects the time value of money the RMB does not expect to amortised cost. Statutory payables and risks specific to the provision. settle within 12 months. are recognised and measured similarly to contractual payables, Employee benefits Conditional LSL is disclosed as but are not classified as financial Provision is made for benefits a non current liability. There is an instruments and not included in the accruing to employees in respect unconditional right to defer the category of financial liabilities at of wages and salaries, annual settlement of the entitlement until amortised cost, because they do leave and long service leave for the employee has completed the not arise from a contract. services rendered to the reporting requisite years of service. This non date. current LSL liability is measured at Borrowings present value. All interest bearing liabilities are (i) Wages and salaries, initially recognised at the fair value annual leave and sick leave Any gain or loss following of the consideration received, less Liabilities for wages and revaluation of the present value directly attributable transaction salaries, including non-monetary of non current LSL liability is costs (refer also to Note 1(l) benefits and annual leave are all recognised as a transaction, Leases). The measurement basis recognised in the provision for except to the extent that a gain or subsequent to initial recognition employee benefits as ‘current loss arises due to changes in bond is amortised cost. Any difference liabilities’, because the RMB does interest rates for which it is then between the initial recognised not have an unconditional right recognised as an ‘other economic amount and the redemption value to defer settlements of these flow’ (refer to Note 1(h)). is recognised in net result over the liabilities. period of the borrowing using the Depending on the expectation of effective interest method. the timing of settlement, liabilities for wages and salaries and annual leave are measured at: ——undiscounted value if the RMB expects to wholly settle within 12 months; or 40
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of line basis over the term of the incurred is not recoverable from Significant Accounting relevant lease. the taxation authority. In this case Policies (continued) GST is recognised as part of the (m) Equity (iii) Termination benefits cost of acquisition of the asset or Contributions by owners as part of the expense. Termination benefits are payable Additions to net assets which have when employment is terminated been designated as contributions Receivables and payables are before the normal retirement date, by owners are recognised stated inclusive of the amount of or when an employee accepts an as contributed capital. Other GST receivable or payable. The net offer of benefits in exchange for transfers that are in the nature amount of GST recoverable from, the termination of employment. of contributions or distributions or payable to, the taxation authority The RMB recognises termination have also been designated as is included with other receivables benefits when it is demonstrably contributions by owners. or payables in the balance sheet. committed to either terminating the Financial Statements Cash flows are presented on a employment of current employees Transfers of net assets arising gross basis. The GST components according to a detailed formal plan from administrative restructurings of cash flows arising from investing without possibility of withdrawal are treated as distributions to or or financing activities which are or providing termination benefits contributions by owners. recoverable from, or payable to the as a result of an offer made to (n) Commitments taxation authority, are presented as encourage voluntary redundancy. Commitments for future operating cash flow. Benefits falling due more than expenditure include operating and 12 months after the end of the Commitments and contingent capital commitments arising from reporting period are discounted to assets and liabilities are also contracts. These commitments present value. stated inclusive of GST. are disclosed by way of a note Employee benefits on costs (refer to Note 14 Commitments for (q) Events after the reporting Employee benefits on costs expenditure) at their nominal value period such as payroll tax, workers and inclusive of the GST payable. Assets, liabilities, income or compensation and superannuation In addition, where it is considered expenses arise from past are recognised as part of the appropriate and provides transactions or other past events. provision for employee benefits. additional relevant information to Where the transactions result from users, the net present values of an agreement between the RMB (l) Leases significant individual projects are and other parties, the transactions A lease is a right to use an asset stated. These future expenditures are only recognised when the for an agreed period of time in cease to be disclosed as agreement is irrevocable at or exchange for payment. commitments once the related before the end of the reporting Leases are classified at their liabilities are recognised in the period. Adjustments are made inception as either operating balance sheet. to amounts recognised in the or finance leases based on the (o) Contingent assets and financial statements for events economic substance of the contingent liabilities which occur after the reporting agreement so as to reflect the period and before the date Contingent assets and contingent risks and rewards incidental to the financial statements are liabilities are not recognised in the ownership. Leases of property, authorised for issue, where those balance sheet, but are disclosed plant and equipment are classified events provide information about by way of a note (Note 15) and, as finance leases whenever conditions which existed in the if quantifiable, are measured at the terms of the lease transfer reporting period. Note disclosure nominal value. Contingent assets substantially all the risks and is made about events between the and liabilities are presented rewards of ownership from the end of the reporting period and inclusive of GST receivable or lessor to the lessee. All other the date the financial statements payable respectively. leases are classified as operating are authorised for issue where the leases. (p) Accounting for the Goods events relate to conditions which and Services Tax (GST) arose after the end of the reporting RMB as lessor Income, expenses and assets are period that are considered to be of Rental income from operating recognised net of the amount of material interest. leases is recognised on a straight associated GST, unless the GST Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 41
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of Significant Accounting Policies (continued) (r) AASs issued that are not yet effective Certain new AASs have been published that are not mandatory for the 31 October 2014 reporting period. Department of Treasury and Finance (DTF) assesses the impact of all these new standards and advises the RMB of their applicability and early adoption where applicable. As at 31 October 2014, the following standards and interpretations that are applicable to the RMB had been issued but are not mandatory for the financial year ending 31 October 2014. The RMB has not early adopted these standards.
Standard / Summary Applicable Impact on RMB Interpretation for annual financial statements reporting periods beginning on
AASB 9 This standard simplifies requirements 1 Jan 2017 While the preliminary Financial instruments for the classification and measurement assessment has not of financial assets resulting from Phase identified any material impact 1 of the IASB’s project to replace IAS arising from AASB 9, it will 39 Financial Instruments: Recognition continue to be monitored and Measurement (AASB 139 and assessed. Financial Instruments: Recognition and Measurement). AASB 10 Consolidated This Standard forms the basis for 1 Jan 2014 For the public sector, AASB Financial Statements determining which entities should be 10 builds on the control (not-for-profit entities) consolidated into an entity’s financial guidance that existed in statements. AASB 10 defines ‘control’ AASB 127 and Interpretation as requiring exposure or rights to 112 and is not expected to variable returns and the ability to affect change which entities need those returns through power over to be consolidated. an investee, which may broaden the concept of control for public sector entities. The AASB has issued an Australian Ongoing work is being done Implementation Guidance for Not-for- to monitor and assess the Profit Entities – Control and Structured impact of this standard which Entities that explains and illustrates is expected to be minimal. how the principles in the Standard apply from the perspective of not-for- profit entities in the private and public sectors. AASB 11 Joint This Standard deals with the concept 1 Jan 2014 Not applibale to the RMB. Arrangements of joint control, and sets out a new (not-for-profit entities) principles-based approach for determining the type of joint arrangement that exists and the corresponding accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement. 42
Notes to the Financial Statements for the year ended 31 October 2014
Note 1 Summary of Significant Accounting Policies (continued)
Standard / Summary Applicable Impact on RMB Interpretation for annual financial statements reporting periods beginning on
AASB 12 Disclosure of This Standard requires disclosure 1 Jan 2014 Not applicable to the RMB. Interests in Other Entities of information that enables users of (not-for-profit entities) financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB Financial Statements 127 Separate Financial Statements and AASB 131 Interests in Joint Ventures. AASB 127 Separate This revised Standard prescribes 1 Jan 2014 Current assessment Financial Statements the accounting and disclosure indicates that there is limited (not-for-profit entities) requirements for investments in impact on Victorian Public subsidiaries, joint ventures and Sector entities. Ongoing work associates when an entity prepares is being done to monitor and separate financial statements. assess the impact of this standard. AASB 128 Investments This revised Standard sets out the 1 Jan 2014 Not applicable to the RMB. in Associates and Joint requirements for the application of the (not-for-profit entities) Ventures equity method when accounting for investments in associates and joint ventures.
In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2013-14 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. The AASB Interpretation in the list below is also not effective for the 2013-14 reporting period and is considered to have insignificant impacts on public sector reporting. AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards. 2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements. 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets. 2013-4 Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation of Hedge Accounting. 2013-5 Amendments to Australian Accounting Standards – Investment Entities 2013-6 Amendments to AASB 136 arising from Reduced Disclosure Requirements 2013-7 Amendments to AASB 1038 arising from AASB 10 in relation to consolidation and interests of policy holders 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments AASB Interpretation 21 Levies.
Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 43
Notes to the Financial Statements for the year ended 31 October 2014
Note 2: Expenses from transactions
2014 2013 $‘000 $‘000 (a) Employee expenses: Superannuation expense 298 275 Salaries and wages 3,495 3,457 Other employee benefits 74 56 Total employee expenses 3,867 3,788
(b) Finance costs: Interest expense 108 124 Total finance costs 108 124
(c) Depreciation: Buildings 542 515 Infrastructure Assets 813 797 Leased Assets 6 10 Plant & Equipment 319 322 Total depreciation 1,680 1,644
(d) Other: Bad and doubtful debts from transactions – –
Note 3: Other economic flows included in net result
2014 2013 $‘000 $‘000 Net gain/(loss) on non-financial assets Gain on sale of assets 1 53 Loss on write-off of assets (12) (143) Net gain/(loss) on disposal of physical assets (11) (90) 44
Notes to the Financial Statements for the year ended 31 October 2014
Note 4: Receivables
2014 2013 $‘000 $‘000 Current Contractual Sale of good and services 373 782 Provision for doubtful contractual receivables – – Accrued Investment Income 5 17 Other receivables 7 63 385 862 Financial Statements Statutory GST input tax recoverable 87 42 87 42 Total Current Receivables 472 904
Non-Current Contractual Other receivables – 132 Total Non-Current Receivables – 132 Total Receivables 472 1,036
The carrying value of debtors at 31 October 2014 approximates fair value. A provision of nil (2013: nil) has been made in regard to the possible non-collection of Trade Debtors. Interest is charged on overdue site rentals and utility charges at a rate fixed by Section 2 of the Penalty Interest Rates Act 1983, which, at 31 October 2014 was 10.5% per annum. (2013: 10.5%) (a) Ageing analysis of receivables Please refer to Note 16 for the ageing analysis of receivables. (b) Nature and extent of risk arising from receivables Please refer to Note 16 for the nature and extent of risks arising from receivables.
Note 5: Inventories
2014 2013 $‘000 $‘000
Raw Materials 24 18 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 45
Notes to the Financial Statements for the year ended 31 October 2014
Note 6: Infrastructure, Property, Plant and Equipment
2014 2013 $‘000 $‘000 Land Land at Fair Value – Mount Buller – Village 78,375 78,375 Land at Fair Value – Mount Buller – Other 3,548 3,548 Land under Roads at Fair Value – Mount Buller 25,525 25,525 Land at Fair Value – Mount Stirling 3,240 3,240 110,688 110,688
Buildings Buildings at Fair Value 17,904 16,795 Less Accumulated Depreciation (1,536) (994) Closing WDV 16,368 15,801
Infrastructure Assets Infrastructure Assets at Fair Value 35,319 35,001 Less Accumulated Depreciation (2,342) (1,529) Closing WDV 32,977 33,472
Leased Assets Leased Assets at Fair Value – 140 Less Accumulated Depreciation – (70) Closing WDV – 70
Plant and Equipment Plant and Equipment at Fair Value 4,467 4,085 Less Accumulated Depreciation (2,844) (2,501) Closing WDV 1,623 1,584
Art work at Fair Value 337 153
Capital Work in Progress at Cost 3,114 1,797
Total Infrastructure, Property, Plant and Equipment 165,107 163,565
Land & Buildings of the RMB were valued at 31st October 2011 by the Valuer-General of Victoria (using Cosgraves Property Advisors) at their fair value. Infrastructure assets of the RMB were valued at the 31st October 2011 by the Valuer General of Victoria (using AssetVal Pty Ltd) at their fair value. Art work of the RMB were valued at 24th October 2008 by Louise Smith Fine Art at their fair value. Additional Art work was acquired in 2014 from the Mount Buller Arts Association and were valued at insurable replacement cost which is deemed fair value. In relation to Plant and Equipment management determined that in accordance with FRB 103E depreciated replacement cost represents a reasonable approximation of fair value at 31st October 2014. 46
Notes to the Financial Statements for the year ended 31 October 2014
Note 6: Infrastructure, Property, Plant and Equipment (continued)
Land Buildings Infrastructure Leased Plant and Art CWIP Total At Fair At Fair Assets Assets Equipment Works At Cost Value Value At Fair At Fair At Fair At Fair Value Value Value Value $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Year ended 31 October 2013 Opening net 110,688 15,559 33,266 80 1,357 136 555 161,641 value Additions – 745 1,126 – 570 15 1,275 3,731 Disposals – – (142) – (21) – – (163)
Financial Statements Depreciation – (515) (797) (10) (322) – – (1,644) Transfers – 12 19 – – 2 (33) – Closing net book value 110,688 15,801 33,472 70 1,584 153 1,797 163,565
Year ended 31 October 2014 Opening net 110,688 15,801 33,472 70 1,584 153 1,797 163,565 value Additions – 757 285 – 282 184 1,757 3,265 Disposals – – – – (15) – (28) (43) Depreciation – (542) (813) (6) (319) – – (1,680) Transfers – 352 33 (64) 91 – (412) – Closing net book value 110,688 16,368 32,977 – 1,623 337 3,114 165,107 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 47
Notes to the Financial Statements for the year ended 31 October 2014
Note 6: Infrastructure, Property, Plant and Equipment (continued) Fair value measurement hierarchy for assets as at 30 June 2014
($ thousand) Carrying Fair value measurement amount as at at end of reporting period using: 30 June 2014 Level 1(i) Level 2(i) Level 3(i) Land at fair value Non Specialised Land 220 – 220 – Specialised land 110,468 – – 110,468 Total of land at fair value 110,688 – 220 110,468 Buildings at fair value Non specialised buildings 257 – 257 – Specialised buildings 16,111 – – 16,111 Total of buildings at fair value 16,368 – 257 16,111 Plant, equipment and vehicles at fair value Vehicles 540 – 352 188 Plant and equipment 1,083 – – 1,083 Total of plant, equipment and vehicles at fair value 1,623 – 352 1,271 Infrastructure at fair value Infrastructure – Garbage 354 – – 354 Infrastructure – Gas 944 – – 944 Infrastructure – Mt Stirling 4,535 – – 4,535 Infrastructure – Sewerage 6,384 – – 6,384 Infrastructure – Village Facilities 2,411 – – 2,411 Infrastructure – Water 4,183 – – 4,183 Infrastructure – Roads & Carparks 14,166 – – 14,166 Total of infrastructure at fair value 32,977 – – 32,977 Cultural assets at fair value Artworks 337 – 337 – Total of cultural assets at fair value 337 – 337 –
(i) Classified in accordance with the fair value hierarchy, see Note 1(b).
There have been no transfers between levels during the period.
Non specialised land, non For non specialised land and The effective date of the valuation specialised buildings and non specialised buildings, an is 31 October 2011. artworks independent valuation was For artwork, valuation of the assets performed by independent valuers Non specialised land, non is determined by a comparison Cosgraves Property Advisors to specialised buildings and artworks to similar examples of the artists determine the fair value using are valued using the market work in existence throughout the market approach. Valuation approach. Under this valuation Australia and research on prices of the assets was determined method, the assets are compared paid for similar examples offered by adopting the site value for to recent comparable sales or at auction or through art galleries each leased site then calculating sales of comparable assets which in recent years. No revaluation the present value of the income are considered to have nominal or was performed for artwork for the combined with the reversion value no added improvement value. financial period ending at of the site at the expiration of the 31 October 2014. current site lease term. 48
Note 6: Infrastructure, An independent valuation of Vehicles Property, Plant and the RMB’s specialised land Vehicles are valued using the Equipment (continued) and specialised buildings was depreciated replacement cost To the extent that non specialised performed by the Valuer General method. The RMB acquires new land, non specialised buildings and Victoria (using Cosgraves Property vehicles and at times disposes artworks do not contain significant, Advisors). The valuation was of them before the end of their unobservable adjustments, these performed using the market economic life. The process of assets are classified as Level 2 approach adjusted for CSO. The acquisition, use and disposal in the under the market approach. effective date of the valuation is market is managed by experienced 31 October 2011. fleet managers in the RMB who set Specialised land and relevant depreciation rates during specialised buildings Infrastructure and road infrastructure use to reflect the utilisation of the Fair value for specialised land vehicles. Infrastructure and road
Financial Statements is determined by adopting the site value for each leased site infrastructure and earthworks Plant and equipment then calculating the present value are valued using the depreciated Plant and equipment is held at fair of the income combined with replacement cost method. This value. When plant and equipment the reversion value of the site at cost represents the replacement is specialised in use, such that it the expiration of the current site cost of the asset after applying is rarely sold other than as part lease term and is adjusted for depreciation rates on a useful life of a going concern, fair value is the community service obligation basis. Replacement costs relate determined using the depreciated (CSO) to reflect the specialised to costs to replace the current replacement cost method. nature of the land being valued. service capacity of the asset. Economic obsolescence has also There were no changes in The CSO adjustment is a reflection been factored into the depreciated valuation techniques throughout of the valuer’s assessment of the replacement cost calculation. the period to 30 June 2014. impact of restrictions associated Where it has not been possible For all assets measured at with an asset to the extent that is fair value, the current use is also equally applicable to market to examine hidden works, the use of reasonable materials considered the highest and participants. This approach is best use. in light of the highest and best and methods of construction use consideration required for have been assumed bearing fair value measurement, and in mind the age and nature of takes into account the use of the the asset. The estimated cost asset that is physically possible, of reconstruction including legally permissible, and financially structure services and finishes, feasible. As adjustments of CSO also factors in any heritage are considered as significant classifications as applicable. unobservable inputs, specialised An independent valuation of the land would be classified as Level RMB’s infrastructure and road 3 assets. infrastructure and earthworks was performed by the Valuer General For the RMB’s majority of Victoria (using AssetVal Pty Ltd). specialised buildings, the The valuation was performed depreciated replacement cost based on the depreciated method is used, adjusting for replacement cost of the assets. the associated depreciations. The effective date of the valuation As depreciation adjustments is 31 October 2011. are considered as significant, unobservable inputs in nature, specialised buildings are classified as Level 3 fair value measurements. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 49
Note 6: Infrastructure, Property, Plant and Equipment (continued) Reconciliation of Level 3 fair value
2014 Specialised Specialised Vehicles Plant and Infrastructure land buildings equipment
Opening balance 110,468 15,534 216 995 33,472 Purchases (sales) / transfers – 1,109 23 286 318 Gains or losses recognised in net result – – – – – Depreciation – (532) (51) (198) (813) Impairment loss – – – – – Subtotal – 577 (28) 88 (495) Revaluation – – – – – Subtotal – – – – – Closing balance 110,468 16,111 188 1,083 32,977 Unrealised gains/(losses) on non financial assets – – – – –
Description of significant unobservable inputs to Level 3 valuations
Valuation Significant Range Sensitivity of fair value measurement technique unobservable to changes in significant inputs unobservable inputs
Specialised Land Land under Market approach Extent & Impact 85%-95% A significant increase or decrease in the Roads of Restriction Extent & Impact of the restriction of use would of Use result in a significantly lower (higher) fair value Specialised Present Value of Income per $0-$59 per m2 A significant increase or decrease in the Land – Village Income Stream Square metre ($31.35 per m2) income per square metre would result in a significantly lower (higher) fair value Specialised Market Approach Adopted Area – $1,200 per A significant increase or decrease in the value Land – Parks $ per hectare hectare per hectare would result in a significantly lower (higher) fair value Specialised Depreciated Direct cost per $216–$3,056/m2 A significant increase or decrease in direct buildings – replacement cost square metre ($1,390) cost per square metre would result in a General significantly higher or lower fair value Useful life of 25–60 years A significant increase or decrease in the specialised (53 years) estimated useful life of the asset would result buildings in a significantly higher or lower valuation. Specialised Depreciated Direct cost per $1,765 /m2 A significant increase or decrease in direct buildings – replacement cost square metre cost per square metre would result in a Alpine Central significantly higher or lower fair value Useful life of 65 years A significant increase or decrease in the specialised estimated useful life of the asset would result buildings in a significantly higher or lower valuation. Vehicles Depreciated Cost per unit $12,187– A significant increase or decrease in cost per replacement cost $156,255 per unit unit would result in a significantly higher or ($28,791 per lower fair value unit) Useful life of 7–15 years A significant increase or decrease in the vehicles (10 years) estimated useful life of the asset would result in a significantly higher or lower valuation. 50
Notes to the Financial Statements for the year ended 31 October 2014
Note 6: Infrastructure, Property, Plant and Equipment (continued)
Valuation Significant Range Sensitivity of fair value measurement technique unobservable to changes in significant inputs unobservable inputs
Plant and Depreciated Cost per unit $1,073–$275,517 A significant increase or decrease in cost per equipment replacement cost per unit unit would result in a significantly higher or ($41,849 per unit) lower fair value Useful life 3–20 years A significant increase or decrease in the of plant and (14 years) estimated useful life of the asset would result equipment in a significantly higher or lower valuation. Infrastructure – Depreciated Cost per unit $6,800–$196,600 A significant increase or decrease in cost per Garbage replacement cost per unit unit would result in a significantly higher or Financial Statements ($107,634 per unit) lower fair value Useful life of the 10 to 80 years A significant increase or decrease in the infrastructure (36 years) estimated useful life of the asset would result in a significantly higher or lower valuation. Infrastructure Depreciated Cost per unit $12,400– A significant increase or decrease in cost per – Gas replacement cost $247,500 per unit unit would result in a significantly higher or ($138,041 per unit) lower fair value Useful life of the 40 to 60 years A significant increase or decrease in the infrastructure (57 years) estimated useful life of the asset would result in a significantly higher or lower valuation. Infrastructure – Depreciated Cost per unit $3,600– A significant increase or decrease in cost per Mt Stirling replacement cost $3,753,800 unit would result in a significantly higher or per unit lower fair value Useful life of the 4 to 80 years A significant increase or decrease in the infrastructure (68 years) estimated useful life of the asset would result in a significantly higher or lower valuation. Infrastructure – Depreciated Cost per unit $1,100– A significant increase or decrease in cost per Sewerage replacement cost $1,248,800 per unit would result in a significantly higher or unit ($370,641) lower fair value Useful life of the 6 to 80 years A significant increase or decrease in the infrastructure (56 years) estimated useful life of the asset would result in a significantly higher or lower valuation. Infrastructure – Depreciated Cost per unit $2,900–$366,600 A significant increase or decrease in cost per Village replacement cost per unit unit would result in a significantly higher or ($133,867) lower fair value Useful life of the 3 to 100 years A significant increase or decrease in the infrastructure (51 years) estimated useful life of the asset would result in a significantly higher or lower valuation. Infrastructure – Depreciated Cost per unit $1,900–$622,500 A significant increase or decrease in cost per Water replacement cost per unit unit would result in a significantly higher or ($186,566) lower fair value Useful life of the 5 to 100 years A significant increase or decrease in the infrastructure (66 years) estimated useful life of the asset would result in a significantly higher or lower valuation. Infrastructure Depreciated Cost per unit $18,400– A significant increase or decrease in cost per – Roads & replacement cost $2,088,500 per unit would result in a significantly higher or Carparks unit lower fair value ($709,299) Useful life of the 7 to 80 years A significant increase or decrease in the infrastructure (46 years) estimated useful life of the asset would result in a significantly higher or lower valuation. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 51
Notes to the Financial Statements for the year ended 31 October 2014
Note 7: Other non-financial assets
2014 2013 $‘000 $‘000
Prepayments (current) 448 497 Intangible Assets (non-current) 7 6 Total Other non-financial assets 455 503
Note 8: Payables
2014 2013 $‘000 $‘000
Current Contractual Supplies and services 381 141 Amount payable to government and agencies – 1 Other payables 839 1,283 1,220 1,425 Statutory FBT payable 5 4 Other tax payable 121 89 126 93 Total payables 1,346 1,518
All trade and other creditors are non-interest bearing. The carrying amount of creditors at the end of the reporting period approximates fair value. (a) Maturity analysis of payables Please refer to Note 16 for the ageing analysis of payables. (b) Nature and extent of risk arising from payables Please refer to Note 16 for the nature and extent of risks arising from payables.
Note 9: Borrowings
2014 2013 $‘000 $‘000 Current Interest bearing loan (i) 199 262 Non-interest bearing loan (ii) 144 137 343 399 Non-Current Interest bearing loan (i) 275 418 Non-interest bearing loan (ii) 1,244 1,388 1,519 1,806
Total Borrowings 1,862 2,205
(i) An interest bearing loan was taken out with the Treasury Corporation of Victoria in 2007, bearing a fixed interest rate of 6.84%, repayable in quarterly instalments over 10 years. The loan is unsecured. (ii) Non interest bearing loans relate to the deferred settlement with La Trobe University on the acquisition of Alpine Central. The loan is recorded at its net present value at the date of acquisition. The loan is unsecured. 52
Notes to the Financial Statements for the year ended 31 October 2014
Note 9: Borrowings (continued)
(a) Maturity analysis of borrowings Please refer to Note 16 for the ageing analysis of borrowings. (b) Nature and extent of risk arising from borrowings Please refer to Note 16 for the nature and extent of risks arising from interest bearing liabilities. (c) Defaults and breaches During the current and prior year, there were no defaults and breaches of any of the loans.
Note 10: Provisions
2014 2013
Financial Statements $‘000 $‘000 Current Employee Benefits (Note 10(a)) Annual leave entitlements (Note 10(a)) Unconditional and expected to settle within 12 months 167 136 Unconditional and expected to settle after 12 months 33 27 Long Service Leave entitlements (Note 10(a)) Unconditional and expected to settle within 12 months 21 86 Unconditional and expected to settle after 12 months 241 130 Other Employee Benefits (Note 10(a)) Accrued day off (ADO) entitlements 13 10 Staff bonuses 42 23 517 412 Provision for on-costs (Note 10(a)) and Note 10(b)) Unconditional and expected to settle within 12 months 14 14 Unconditional and expected to settle after 12 months 16 9 30 23 Total Current Provisions 547 435 Non-Current Employee Benefits (Note 10(a)) Conditional long service leave entitlements 98 81 On-costs (Note 10(a)) and Note 10(b)) 6 4 Total Non-Current Provisions 104 85 Total Provisions (i) 651 520
(i) Refer Note 1(e) Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 53
Notes to the Financial Statements for the year ended 31 October 2014
Note 10(a): Employee benefits and on-costs
2014 2013 $‘000 $‘000 Current Annual Leave 200 163 Long Service Leave 262 216 Accrued day off (ADO) entitlements 13 10 Staff bonuses 42 23 Non-Current Long Service Leave 98 81 Total Employee Benefits 615 493 Current on-costs 30 23 Non-Current on-costs 6 4 Total on-costs 36 27 Total Employee benefits and on-costs 651 520 Long service leave entitlements for those employees with 7 or more years’ continuous service are treated as a current liability. Long service leave entitlements for those employees with less than 7 years continuous service are treated as a non-current liability.
Note 10(b): Movement in on-costs
On-costs Total 2014 2014 $’000 $’000 Opening Balance 27 27 Additional provisions recognised 24 24 Reductions arising from payments/other sacrifices of future economic benefits (15) (15) Reductions resulting from re-measurement or settlement without cost – – Unwind of discount and effect in the discount rate – – Closing Balance 36 36
Current 30 30 Non-Current 6 6 36 36 54
Notes to the Financial Statements for the year ended 31 October 2014
Note 11: Superannuation Employees of the RMB are entitled to receive superannuation benefits and the RMB contributes to both defined benefit and defined contribution plans. The defined benefit plan provides benefits based on years of service and final average salary. The RMB does not recognise any defined benefit liability in respect of the plan because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefit liabilities in its disclosure for administered items. However, superannuation contributions paid or payable for the reporting period are included in the Comprehensive Operating Statement of the RMB. The name, details and amounts expensed in relation to the major employee superannuation funds and
Financial Statements contributions made by the RMB are as follows:
Scheme: Type Cont’n Range 2014 2013 (%) $’000 $’000 Defined Benefit Emergency Services and State Super Defined Benefit 9.5–12.6 15 10 Other Defined Benefit – – –
Defined Contribution Vic Super Accumulation 9.25–9.5 56 54 C–Bus Accumulation 9.25–9.5 25 14 Host Plus Superannuation Accumulation 9.25–9.5 47 32 Sunsuper Superannuation Fund Accumulation 9.25–9.5 32 24 Other Accumulation 9.25–9.5 157 156
Total contributions for the period were $332,173 (2013: $289,837) and there was $19,490 (2013: $28,267) outstanding as at 31 October 2014 which is listed in Trade Creditors.
Note 12: Other liabilities
2014 2013 $‘000 $‘000
Deferred revenue – current 128 153 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 55
Notes to the Financial Statements for the year ended 31 October 2014
Note 13: Leases Crown land Crown Land is recorded in the accounts of the RMB at the Cosgraves Property Advisers valuation. The RMB has brought to account the rental revenue in relation to the leased sites and does not account for depreciation since the class of assets is defined as land. The RMB, acting as a Committee of Management under Section 38 of the Alpine Resorts (Management) Act 1997, manages 176 Crown lease arrangements with site holders. The lease arrangements cover lease periods up to ninety-nine years. Gas network The right to operate the LP Gas system was licensed to Indigo Shire Council. The RMB has retained the majority of the infrastructure assets associated with the delivery of gas to the site holders on the mountain. In 2013 the RMB has extended the lease to use these assets to Indigo Shire Council for ten years and will receive 3% of Gross revenue from the sale of gas during the period of the lease. The lease contains provisions for further ten year options. All assets remain the property of the RMB at the conclusion of the lease period.
2014 2013 $‘000 $‘000 Non–cancellable operating lease receivables Not longer than 1 year 3,767 3,824 Longer than 1 year and not longer than 5 years 7,893 11,768 Longer than 5 years 76,095 78,679 87,755 94,271
Note 14: Commitments for expenditure The following commitments have not been recognised as liabilities in the financial statements:
2014 2013 $‘000 $‘000 (a) Capital expenditure commitments Property, plant and equipment (a) Within one year – 378 Later than one year but not later than 5 years 1,736 1,736 Longer than 5 years – – Total capital expenditure commitments 1,736 2,114
(b) Operating expenditure commitments Other operating commitments (b) Within one year 2,193 2,160 Later than one year but not later than 5 years 4,746 5,275 Longer than 5 years 219 268 Total operating expenditure commitments 7,158 7,703 56
Notes to the Financial Statements for the year ended 31 October 2014
Note 14: Commitments for (b) In regards to future operating — An agreement has been entered expenditure (continued) commitments, the RMB has the following: into with DELWP for the ‘Burramys Recovery Plan’. This commitment (a) The RMB has been allocated a grant of — An annual commitment to Buller Ski Lifts Pty Ltd for snow making. $227,564 involves the expenditure of $1.163 $1.55 million (excl GST) from the Victorian million over five years starting in the Department of Transport, Planning and + GST was paid in 2013-14. The dollar value of this commitment for 2014-15 2005-06 financial year. This plan is Local Infrastructure to assist in funding currently under review for 2010-15. the Buller/Stirling Touring Link road is approximately $232,422 + GST which is ongoing. The amount of $63,000 has been project. The funding is conditional upon committed for the 2014-15 financial — A commitment exists to sponsor the receiving other grant funds to render the year. project fully financed. The project involves annual Victorian Inter-Schools Skiing the construction of a link road between Competition for $45,000 per annum — A cleaning contract was entered into Mount Buller and Mount Stirling which will plus CPI. A new agreement was made on 12 April 2010 and the base cost of provide an additional emergency access on 1 January 2013 for 5 years with an the contract is $122,727 per annum. road should the existing Mount Buller road option for a 5 year extension. The cleaning contract is for one year be closed temporarily for any reason. and subject to annual performance
Financial Statements — A commitment to the Regional Tourism reviews. The contract term has been Board for $43,166 for marketing and $186,363 of the allocated funding has extended for a further four one year product development of North East been received as at 31 October 2014. periods and expires on 11th April 2015. Preliminary design work and other Regional Victoria. — A new transport agreement was tasks undertaken in connection with — A commitment to the Alpine Resorts entered into for five years starting on the development of a planning permit Coordinating Council (ARCC) for the first day of the 2010 declared snow application have been completed. The $511,621 per annum, as directed by season. The base cost of the contract Board has committed its own funds the Minister. (via the Capital Improvement Fund) to is $454,135 per annum with the RMB — A commitment to Mansfield-Mt Buller the project, and lobbies the Federal having the further option to add five Regional Tourism Association Ltd Government for an allocation of funds one year extensions. The 2014-15 (trading as High Country Reservations) when opportunities become available. commitment approximates $561,823. for the provision of tourist information — A new sponsorship agreement was The project is anticipated to cost services based in Mansfield and the entered into for five years in 2014 with approximately $5 million. provision of visitor information during the Mount Buller Arts Association for the winter season based on Mt Buller. $15,000 per annum. An amount of $88,490 + GST has been committed for the Mansfield- — A new contract with Octagon Australia based visitor information services for and the Mansfield Shire Council to 2014-15 and $46,839 + GST for the conduct one Targa High Country event Mt Buller based information services. each year from 2013 to 2017. The RMB commits $30,000 in sponsorship each — A garbage collection contract was year made up of $20,000 cash plus up entered into on 1 June 2005 and to $10,000 of agreed in kind support, the base cost of the contract is indexed according to annual CPI. $375,000+GST per annum. The RMB have agreed with the contractor to extend the contract until 2018. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 57
Notes to the Financial Statements for the year ended 31 October 2014
Note 15: Contingent assets and liabilities There are 3 claims that have been made against the RMB by visitors. The claims are currently being investigated by insurance assessors. In 2013-14 the RMB has accounted for $52,543 of costs incurred in investigating these claims by our insurer. Should there ultimately prove to be any substance to each claim the liability to the RMB would be limited to the $25,000 insurance excess per claim.
Note 16: Financial instruments (a) Significant accounting policies The RMB’s principal financial instruments comprise of: ——cash assets; ——term deposits; ——receivables; ——payables; and ——borrowings. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument above are disclosed in Note 1 to the financial statements. The main purpose in holding financial instruments is to prudentially manage the RMB’s financial risks in the government policy parameters. The RMB’s main financial risks include credit risk, liquidity risk and interest rate risk. The RMB manages these financial risks in accordance with its financial risk management policy. The RMB uses different methods to measure and manage the different risks to which it is exposed. Primary responsibility for the identification and management of financial risks rests with the Risk, Audit & Finance Committee of the RMB. The carrying amounts of the RMB’s financial assets and financial liabilities by category are in the table below.
Note Category Carrying Carrying amount amount 2014 2013 $‘000 $‘000 Financial assets Cash and deposits 17(a) N/A 5,123 5,809 Receivables 4 Loans and receivable 385 994 (at amortised cost) Total financial assets 5,508 6,803
Financial liabilities Payables 8 Financial liabilities measured 1,220 1,425 at amortised cost Interest bearing liabilities 9 Financial liabilities measured 474 680 at amortised cost Non-interest bearing loans 9 Financial liabilities measured 1,388 1,525 at amortised cost Total financial liabilities 3,082 3,630 58
Notes to the Financial Statements for the year ended 31 October 2014
Note 16: Financial instruments (continued) (b) Credit risk Credit risk arises from the financial assets of the RMB, which comprise cash and deposits, trade and other receivables. The RMB’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the RMB. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the RMB’s financial assets is minimal because the majority of debtors arise under lease arrangements and default of payment would constitute a breach of the contractual lease agreement which could result in termination of the lease. The RMB does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest for the term of the deposit.
Financial Statements Provision for impairment for financial assets is recognised when there is objective evidence that the RMB will not be able to collect a receivable. Objective evidence includes previous experience, financial difficulties of the debtor, default payments and debts which are more than 60 days overdue. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the RMB’s maximum exposure to credit risk without taking account of the value of any collateral obtained. The following table discloses the ageing only of financial assets that are past due but not impaired:
($ thousand) Receivables Weighted Carrying Interest rate exposure Not past Past due but not impaired Impaired average amount due and not financial Fixed Variable Non- Less 1–3 3 Greater effective impaired assets interest interest interest than 1 months months than interest rate rate rate bearing month – 1 year 1 year % 2014 7.08 385 252 – 133 318 – 24 43 – – 2013 6.62 994 493 – 501 854 – 17 123 – –
(c) Liquidity risk Liquidity risk is the risk that the RMB would be unable to meet its financial obligations as and when they fall due. The RMB operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. The RMB’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. The RMB manages its liquidity risk by: ——close monitoring of its short-term and long-term borrowings by senior management, including monthly reviews on current and future borrowing levels and requirements; ——maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short term obligations; ——holding investments and other contractual financial assets that are readily tradeable in the financial markets; ——careful maturity planning of its financial obligations based on forecasts of future cash flows; and ——a high credit rating for the State of Victoria (Moody’s Investor Services & Standard & Poor’s triple-A), which assists in accessing debt market at a lower interest rate. The RMB’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 59
Notes to the Financial Statements for the year ended 31 October 2014
Note 16: Financial instruments (continued) (c) Liquidity risk (continued) The following table discloses the contractual maturity analysis for the RMB’s contractual financial liabilities.
($ thousand) Weighted Carrying Interest rate exposure Nominal Maturity Dates average amount amount Fixed Variable Non- Less 1–3 3 1–5 More than effective interest interest interest than 1 months months years 5 years interest rate rate bearing month – 1 year rate 2014 % Payables – 1,220 – – 1,220 1,220 – 1,220 – – – Borrowings 5.60 1,862 1,862 – – 1,862 – 42 301 931 588 3,082 1,862 – 1,220 3,082 – 1,262 301 931 588
2013 Payables – 1,425 – – 1,425 1,425 – 1,425 – – – Borrowings 5.69 2,205 2,205 – – 2,205 – 48 351 1,041 765 3,630 2,205 – 1,425 3,630 – 1,473 351 1,041 765
(d) Market risk The RMB’s exposure to market risk is primarily through interest rate risk which 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. (e) Interest rate risk Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The RMB does not hold any interest bearing financial instruments that are measured at fair value, and therefore has no exposure to fair value interest rate risk. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The RMB has minimal exposure to cash flow interest rate risks through its cash and deposits, term deposits and bank overdrafts that are at floating rate. The RMB manages this risk by mainly undertaking fixed rate or non interest bearing financial instruments with relatively even maturity profiles, with only insignificant amounts of financial instruments at floating rate. Management has concluded for cash at bank and bank overdraft, as financial assets that can be left at floating rate without necessarily exposing the RMB to significant risk. Management monitors movement in interest rates on a daily basis.
60
Notes to the Financial Statements for the year ended 31 October 2014
Note 16: Financial instruments (continued) (e) Interest rate risk (continued) The RMB’s exposure to interest rate risk is set out in the following table:
($ thousand) Interest rate risk – 2% + 2%
2014 Carrying amount Net result Equity Net result Equity Financial assets: Cash and cash equivalents 5,123 (102) (102) 102 102 Receivables 385 (5) (5) 5 5
Financial Statements Financial liabilities: Payables 1,220 – – – – Borrowings 1,862 – – – – Total increase/(decrease) (107) (107) 107 107
($ thousand) Interest rate risk – 2% + 2%
2013 Carrying amount Net result Equity Net result Equity Financial assets: Cash and cash equivalents 5,809 (116) (116) 116 116 Receivables 994 (10) (10) 10 10 Financial liabilities: Payables 1,425 – – – – Borrowings 2,205 – – – – Total increase/(decrease) (126) (126) 126 126
Note 17: Cash flow information (a) Reconciliation of cash and cash equivalents
2014 2013 $‘000 $‘000
Cash at bank and on hand 1,061 698 Short-term Deposits 4,062 5,111 Balance as per cash flow statement 5,123 5,809 Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 61
Notes to the Financial Statements for the year ended 31 October 2014
Note 17: Cash flow information (continued) (a) Reconciliation of cash and cash equivalents (continued) The RMB does not have access to a bank overdraft as at 31 October 2014. The weighted average interest rate applicable to cash at bank and on hand is 0.23% (2013: 1.77%). The short-term deposits are interest bearing floating rates between 2.45% and 2.70% (2013: 2.45% and 2.57%), with an average maturity of 28 days. Included in these cash balances are amounts set aside for use as the RMB’s Snow Drought Fund of $600,000 (2013: $600,000), Debt Repayment Fund of $1,000,000 (2013: $1,000,000) and Capital Improvement Fund of $1,200,000 (2013: $1,200,000). These funds have been established to comply with the Minister of Environment and Climate Change’s Alpine Reform Package program, the aim of which was to improve financial governance and thus the financial sustainability of the Alpine Resort Management Boards. The Snow Drought Fund may be drawn upon with Ministerial approval in the event of a poor snow season which leads to a liquidity shortage as a result of a reduction in visitor related revenue. The Debt Repayment Fund will be drawn upon to repay outstanding debt when required, in times of low cash resources and/or financial hardship. The purpose of the Capital Improvement Fund is to provide a pool of internally generated funds to finance asset replacement and capital works expenditure. (b) Reconciliation of net result for the period to net cash flows from operating activities
2014 2013 $‘000 $‘000 From Operating Activities to operating Profit Operating Profit/(Loss) for the period 659 269 Non-cash movements: Depreciation 1,680 1,644 Asset Received at Fair Value – (315) Movements included in investing and financing activities: Net (Profit)/Loss on Sale of Fixed Assets 11 90
Movements in assets and liabilities: Decrease/(Increase) in Trade and Other Debtors 564 (547) Decrease/(Increase) in Inventories (6) 5 Decrease/(Increase) in Other Current Assets 48 (83) Decrease/(Increase) in Other Non-Current Assets – – Increase/(Decrease) in Trade and Other Creditors 81 (435) Relating to Operating Activities Increase/(Decrease) in Current Provisions 112 23 Increase/(Decrease) in Non-Current Provisions 19 30 Increase/(Decrease) in Unearned Revenue (25) (58) Net cash flows from/(used in) operating activities 3,143 623 62
Notes to the Financial Statements for the year ended 31 October 2014
Note 18: Physical Asset revaluation surplus
2014 2013 $‘000 $‘000
Balance at beginning of the financial year 22,593 22,593 Revaluation of land, buildings and infrastructure – – Balance at the end of the financial year 22,593 22,593
Note 19: Responsible persons a) Board meetings Financial Statements The following table records the attendance of members at board meetings between 1 November 2013 and 31 October 2014: Total Meetings Meetings Board Members while in office Attended Jennifer Hutchison (Chairman) 8 8 Dean Belle (Deputy Chairman) 8 8 Dr Kate Brooks 8 6 Andrew Evans 8 8 Elaine Farrelly 8 6 John Lithgow 8 8 Bryce Moore 8 7
b) Responsible persons In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period The names of persons who were responsible persons at any time during the financial year were: ——Ryan Smith MLA, (Minister for Environment and Climate Change) ——Jennifer Hutchison, (Chairman of RMB) ——Dean Belle, (Deputy Chairman of RMB) ——Dr Kate Brooks, (RMB Member) ——Andrew Evans, (RMB Member) ——Elaine Farrelly, (RMB Member) ——John Lithgow, (RMB Member) ——Bryce Moore, (RMB Member) ——John Huber, (Chief Executive Officer) Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 63
Notes to the Financial Statements for the year ended 31 October 2014
Note 19: Responsible Loans Bryce Moore is a shareholder in persons (continued) As at 31 October 2014 there the Merrijig Ski Club Co-operative b) Responsible persons were no loans in existence that Ltd and a member of the Merrijig (continued) have been made, guaranteed Ski Club, an organisation which is or secured by the Board to a a leaseholder on Mount Buller. Mr Remuneration of Responsible Person of the RMB or Moore is also a member of the Ski Responsible Persons a related party of a Responsible Club of Victoria. Remuneration received, or due Person. and receivable from the RMB in John Huber is Chairman of connection with the management Shares the Board of the Mansfield- of the RMB for the financial period There were no interests in the Mount Buller Regional Tourism ended 31 October 2014 was shares of related entities held by Association Ltd (MMBRTA), on the $302,611 (2013: $289,443). The Responsible Persons of the RMB Board of the North East Victoria number of responsible persons during the financial period ended Tourism Board (NEVT) and the whose remuneration from the RMB 31 October 2014. Alpine Resort Coordination Council was within the specified bands is (ARCC) Co-operation Committee. Related party transactions as follows: Mr Huber is a member of the Jennifer Hutchison is a member Hume Regional Management $000’s 2014 2013 of the Alpine Resorts Coordinating Forum Committee. Mr Huber 1–10 6 8 Council (ARCC). is also a director of the Mount Buller Arts Association. Mr Huber 11–20 1 1 Dean Belle is a Board member received no direct remuneration 231–240 0 1 of the Mansfield-Mount Buller Regional Tourism Association from these positions. 241–250 1 0 (MMBRTA). The relevant Minister’s Dr Kate Brooks has no related remuneration is reported interests in the operations of separately in the financial the RMB. statements of the Department of Premier and Cabinet. Andrew Evans is a member of the Alkira Ski Cub Inc, an Retirement Benefits of organisation which is a Responsible Persons leaseholder on Mount Buller. There were no retirement benefits paid by the RMB in conjunction Elaine Farrelly has no related with the retirement of Responsible interests in the operations of Persons of the RMB during the the RMB. financial year. John Lithgow is a Board member of the Mansfield Mt Buller Cycling Club. 64
Notes to the Financial Statements for the year ended 31 October 2014
Note 19: Responsible persons (continued) The following additional transactions have been entered into with related party entities:
2014 2013 $‘000 $‘000 Ski Club of Victoria Revenue received (1) 77 73
Merrijig Ski Club Revenue received (1) 29 24
Mansfield Mount Buller Regional Tourism Association Financial Statements Revenue received 12 5 Other services paid (151) (138)
Alpine Resorts Coordinating Council Contributions paid (433) (309)
Alkira Ski Club Revenue received (1) 34 31 (1) Revenue received includes site rents which are levied in accordance with the site lease contract and service charges using a formula that is equally applied to all sites, and payments for advertising in RMB collateral and the website as well as car park season passes and entry.
Note 20: Remuneration of executives The number of executive officers, other than responsible persons, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, allowances, vehicles, redundancy payments and retirement benefits. The total annualised equivalent provides a measure of full time equivalent executive officers over the reporting period. Several factors have affected total remuneration payable to executives over the year. A number of employment contracts were completed and renegotiated during the year and a number of executives received bonus payments during the year. These bonus payments depend on the terms of the individual employment contracts. Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 65
Notes to the Financial Statements for the year ended 31 October 2014
Note 20: Remuneration of executives (continued) The number of executive officers whose remuneration falls with in the specified bands above $100,000 is as follows:
Income band Total Remuneration Base Remuneration $000’s 2014 2013 2014 2013 No. No. No. No. 101 – 110 – – – 2 111 – 120 – – 1 1 121 – 130 – 4 2 1 131 – 140 – – 1 – 141 – 150 3 1 – – 151 – 160 1 – – – 161 – 170 1 1 – – 181 – 190 – – – – 241 – 250 – – – – Total number of executives 5 6 4 4 Total annualised employment 5 5.51 5 5.51 equivalents (AAE) 1 Total Amount2 $753,039 $815,941 $567,335 $597,289
1 Annualised employee equivalent is based on working 38 hours per week over the reporting period. 2 Represents the total amount paid or payable to all executive officers, including those below the $100,000 remuneration level and therefore not included in the banding table above.
Note 21: Auditor’s Remuneration
2014 2013 $‘000 $‘000 Audit Services Victorian Auditor-General 20 20
Note 22: Subsequent events The Victorian State election was held 29 November 2014. Consequently a new Minister for Environment and Climate Change, the Honourable Lisa Mary Neville MP, was appointed by the Governor of the State of Victoria on 4 December 2014. The Governor in Council also made an order on the same date, under section 10 of the Public Administration Act 2004, to change the name of the portfolio that Mount Buller and Mount Stirling Alpine Resort Management Board fall under, from the Department of Environment and Primary Industries to the Department of Environment, Land, Water and Planning. No other matters or circumstances have arisen since the end of the reporting period which may significantly affect the operations of the RMB, the result of those operations, and the state of affairs of the RMB in future financial years. 66 Financial Statements Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2014 67 68
Disclosure Index
Legislation Requirement Page ref. Accountable Officer’s declaration SD 4.2(j) Sign off requirements 2 Charter and purpose FRD 22E Objectives, functions, powers and duties 4 FRD 22E Manner of establishment and responsible Minister 4 FRD 22E Nature and range of services provided 4 Financial information FRD 22E Operational and budgetary objectives 5 FRD 22E Summary of the financial results 25 FRD 22E Major changes or factors affecting performance 25 FRD 22E Subsequent events 25
Financial Statements FRD 22E Significant changes in financial position during the year 25 Governance and organisational structure FRD 22E & SD2.2(f) Organisational structure 9 FRD 22E Occupational health and safety policy 22 & 23 FRD 22E Employment and conduct principles 22 FRD 29 & 22E Workforce Data disclosures 23 FRD21B Executive Officer disclosures – Other information FRD 10 Disclosure index – FRD 25 Victorian Industry Participation Policy disclosures 26 FRD 22E Details of consultancies in excess of $10 000 25 FRD 22E Details of consultancies under $10 000 25 FRD 22E Disclosure of government advertising expenditure 25 FRD 12A Disclosure of major contracts 25 FRD 22E Application and operation of Freedom of Information Act 1982 26 FRD 22E Compliance with Building Act 1993 14 FRD 22E Statement on National Competition Policy 26 FRD 22E Application and operation of Protected Disclosures Act 2012 27 FRD 22E Summary of environmental performance 17 FRD 22E Statement of availability of other information 27 MRO Compliance with DataVic access policy 27 SD 4.5.5 Risk management compliance attestation 26 SD 4.5.5.1 Insurance attestation 26 PC 2012/02 Gifts, benefits and hospitality attestation 27 SD 4.2(g) General information requirements Entire document Legislation Alpine Resorts (Management) Act 1997 4 Financial Management Act 1994 Table of Contents Building Act 1993 14 Freedom of Information Act 1982 27 Protected Disclosures Act 2012 27 Victorian Industry Participation Policy Act 2003 26 Print and design FRD 30 Standard requirements for the design and print of annual reports Entire document Acronyms FRD – Financial Reporting Direction SD – Standing Direction PC – Premier’s Circular © State of Victoria, Mount Buller & Mount Stirling Alpine Resort Management Board 2015. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.
Mount Buller & Mount Stirling Alpine Resort Management Board ABN 44 867 982 534 Alpine Central, Mount Buller Victoria 3723 Telephone: 03 5777 6077 Facsimile: 03 5777 6219 Email: [email protected]
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