ANNUAL REPORT 2015-2016
INNOVATION
SUSTAINABILITY
PRODUCTIVITY CONNECTING GENERATIONS ABOUT THIS REPORT
OF VICTORIANS TO PEOPLE, The Greater Metropolitan Cemeteries PLACE AND MEMORIES Trust Annual Report 2015–2016 provides information about the trust’s governance At The Greater Metropolitan Cemeteries Trust (GMCT) we believe arrangements, objectives, functions, in caring for your loved ones with dignity and compassion. performance and achievements.
In addition to the funeral services we provide, we commit to caring It highlights GMCT’s work throughout for your loved ones long into the future. Our perpetual maintenance the year and includes information about fund ensures all of our cemeteries are maintained in perpetuity, management, operations, infrastructure and planning, workforce, sector leadership, giving you, your family and future generations peace of mind. stakeholder engagement and financial We understand that the passing of a loved one is a difficult operations. It includes a joint report from experience and that everyone grieves in their own way. Making the chair and chief executive officer. decisions about how to honour someone’s life, such as choosing a The annual report is a statutory obligation final resting place, can be challenging. At GMCT, we are dedicated under the Cemeteries and Crematoria Act to assisting individuals and families to make important, long-term (2003). It complies with financial reporting decisions that reflect their needs and wishes, and which honour directions and meets the requirements and celebrate life. outlined in the model report of operations. The GMCT annual report is tabled in the We respect all peoples, our heritage, our communities and Victorian Parliament before being released. the environment. This report covers the financial year ended We also recognise that every journey is different, whether 30 June 2016. that journey involves making arrangements for someone An alternative accessible version of the recently deceased or planning ahead for your own funeral and annual report is available on the GMCT memorialisation. Our role is to provide compassionate guidance website at http://gmct.com.au/about-us/ and support to help you make decisions that are right for you. annual-report/
CEMETERY LIFECYCLE
GMCT manages 21 sites allocated for cemetery use under the Victorian Government Gazette. A number of sites have been providing services to the local community for more than 150 years, with many considered to be reaching peak capacity or to have entered a level of perpetual maintenance. 1 2 3 4 5 Concept Establishment Active Transitional Perpetual
The initial Planning for the The operation Lessening The maintenance identification development of of cemeteries requirement for of cemeteries of need or new greenfield that have high infrastructure, which have opportunity and sites and visitation and continued minimal space identification acquired land. interments and but declining available, low and acquisition a wide range of interment and visitation rates of new land for services. services, medium and require cemetery use. visitation. ongoing maintenance and focus on heritage.
Cover design The cover of this report shows a selection of community events hosted by GMCT throughout 2015-16 and highlights the diversity of our cemeteries.
02 OUR VISION OUR PURPOSE OUR STRATEGIC OBJECTIVES Lasting memories, peaceful places The Greater Metropolitan Cemeteries Trust offers a wide range of burial, GMCT’s 2013-16 strategic plan focused cremation and interment options, on five key areas: OUR MISSION which allow Melbourne’s diverse community to make choices according 1 Providing strong leadership We provide the final care for to their, or their loved one’s, cultural, personal and religious preferences. your loved ones, with dignity Building a viable and and kindness. We make sure every experience with 2 sustainable organisation We respect all peoples, our us is helpful and supportive, so that Enhancing relationships with heritage, our communities and the memories you associate with your 3 the community, clients and loved one’s final resting place are the environment. stakeholders positive from the start. 4 Developing our people and All of our cemeteries have strong workforce connections with the local OUR VALUES Demonstrating strong communities they serve. 5 governance and accountability Compassion We are committed to maintaining Respect In addition, each year of the three- beautiful, restful and sustainable year plan was assigned a core theme Sustainability places that are also rich in history. to provide even greater focus and was Integrity used to establish annual priorities, objectives, plans and activities.
2015-16 Innovation and product development 2014-15 Customer care 2013-14 Build capability
suppliers class B clients cemeteries local councils OUR KEY employees STAKEHOLDERS
GMCT works with a number of regulatory authorities stakeholders across the funeral and special interest and religious groups cemetery sector, local communities and government. We greatly value stonemasons and these relationships and the positive business partners impact they have on our business and service delivery. local communities
historical societies
funeral directors and celebrants residents the Victorian government and its departments (particularly the Department of Health and Human Services)
Annual Report 2015-2016 03
To The Hon. Jill Hennessy MP Minister for Health Level 22, 50 Lonsdale Street Melbourne, VIC 3000
Dear Minister
We have pleasure in submitting to you, for presentation to Parliament, the Annual Report of The Greater Metropolitan Cemeteries Trust (GMCT) for the year ending 30 June 2016.
The report was endorsed at an extraordinary meeting of the GMCT trust on 10 August 2016.
It has been prepared in accordance with section 52 of the Cemeteries and Crematoria Act 2003 (No 80 of 2003) and the Cemetery Model Annual Report for 2015-2016, under Financial Management Act 1994.
The report is divided into two sections (report of operations; and financial statements including explanatory notes) and provides a summary of operational achievements, statutory information and financial statements and details on performance against the Strategic Plan 2013-16.
The report includes a joint report from the Chair and Chief Executive and a report from the Director, Finance and Business.
The annual report 2015-16 signals the end of the trust’s three-year strategic plan (2013-16) and its transition from a period of establishment (following amalgamation in 2010) to a new phase of innovation, growth and improved land use planning.
We commend the organisation’s achievements to you.
In accordance with our commitment to sustainability, limited copies of this report are available in print.
The full report is available online, to view or download: www.gmct.com.au/about-us/annual- report/
Regards
Geoff Mabbett Jacqui Weatherill Chair Chief Executive Officer
04 CONTENTS RESPONSIBLE BODIES DECLARATION In accordance with the Financial Management Act 1994, 06 Message from the chair and chief executive officer I am pleased to present the report of operations for The Greater Metropolitan Cemeteries Trust (GMCT) for 08 PART 1: OVERVIEW the year ending 30 June 2016. 09 Innovation highlights 12 Sites map and highlights 14 Organisational structure
GEOFF MABBETT
15 PART 2 OUR PERFORMANCE Chair 16 Performance against objectives and indicators The Greater Metropolitan Cemeteries Trust
17 At a glance 10 August 2016 18 Strategic goal 1 19 Strategic goal 2 ATTESTATION FOR COMPLIANCE WITH THE 20 Strategic goal 3 MINISTERIAL STANDING DIRECTION 4.5.5 – RISK MANAGEMENT FRAMEWORK AND PROCESSES 22 Strategic goal 4 I, Jacqui Weatherill, certify that The Greater Metropolitan 23 Strategic goal 5 Cemeteries Trust has complied with Ministerial Direction 24 Performance report 4.5.5 – Risk Management Framework and Processes. 25 Financial comparative analysis
26 PART 3: OUR ORGANISATION 28 GMCT trust members
29 GMCT trust members as at 30 June 2016 JACQUI WEATHERILL 31 Strengthening our community connections Accountable Officer The Greater Metropolitan 32 Community engagement and events Cemeteries Trust 34 Reporting to government Fawkner, Victoria
36 Management committees and staff leadership 10 August 2016 37 Internal committees and groups 38 Compliance and disclosures 40 Occupational health and safety 41 Commitment to sustainability 42 Workforce 44 Awards and recognition 46 Consultancies 48 Director finance and business message
49 FINANCIAL STATEMENTS 51 Independent auditor’s report Victorian Auditor-General’s Office 104 Disclosure Index
Annual Report 2015-2016 05 MESSAGE FROM THE CHAIR AND THE CHIEF EXECUTIVE OFFICER
2015-16 was another busy year for The Greater Metropolitan Cemeteries Trust (GMCT).
We provided burial, cremation and burial operations, new online systems, We invested more than $15M in memorialisation services to more a central enquiries and bookings capital works projects and awarded than 12,000 families and welcomed phone number, improved horticulture $15M in contracts. over 1 million visitors to our standards, effective signage, improved Major projects undertaken this year cemeteries and memorial parks. customer experience, successful include: upgrading function and marketing campaigns, community crematoria facilities at the Altona We also worked hard to nurture key events, and a consistent food and Chapels; completion of the Werribee stakeholder relationships and further beverage offering. develop systems and processes in Mausoleum extension; installation order to deliver on strategic objectives During our year of innovation and of backup power generators at (which are outlined in this report). productivity, there were several our regional offices; purchase of Significantly, we formalised a land milestone achievements. While this significant land and infrastructure to strategy which will inform long-term report provides details of strategic extend Northern Memorial Park; and planning and investment decisions. goals and successes, the following commencing implementation of a best highlights provide an overview of the practice contractor compliance and All this is helping us to build a scope and impact of our work. registration scheme. sustainable organisation which in New conservation management plans, turn ensures we are well positioned We invested $6.4M in new stock and masterplans and Public Record Victoria to serve Melbourne’s diverse commenced major developments (PROV) histories of our cemeteries communities for years to come. including the Holy Angels Mausoleum document the historic, cultural extension (stage 4), construction of and architectural importance of a GMCT has matured as an organisation monumental foundations at Northern number of our sites and will help us to since it was established in 2010 and Memorial Park and new lawn beams at understand how communities engage in 2015-16 we prioritised operational Williamstown Cemetery and Northern with our cemeteries as public spaces. sustainability. Memorial Park. A focus was on better To achieve this, we focused on creating understanding future consumer We understand that realising our a consistent GMCT experience for demands in light of current land and vision to provide lasting memories and all stakeholders. This required us available stock. peaceful places requires collaboration with multiple stakeholders. to develop a business model that is Significantly, we identified a shortfall repeatable across all our sites. of stock in some areas and we continue The relationships we have with families and industry partners have been Throughout the year, we invested in to work to address this through a established over time by providing initiatives and activities that supported tenure program, the construction consistent, professional and caring this aim, including: standardised of new stock options and continued services that meet the highest operating procedures, safe work discussions with the land planning standards – our own and those set practices, efficient and compliant authority and government. by government and legislative bodies.
All this is helping us to build a sustainable organisation which in turn ensures we are well positioned to serve Melbourne’s diverse communities for years to come.
06 The relationships we have with families and industry partners have been established over time by providing consistent, professional and caring services that meet the highest standards ...
This has set the benchmark on which We thank all trust members, we will build as we commence our executive directors, staff and new Strategic Plan (2016-21) volunteers for their contributions to what has been a busy year. We are enormously proud of our teams’ commitment to our values of integrity, respect, compassion and sustainability and a short film, “GMCT stories” gave staff the opportunity to share what their work means to them. We encourage you to visit our website GEOFF MABBETT to hear what our staff have to say Chair about their GMCT experience: gmct.com.au/about-us/careers/
In March 2016, we welcomed trust member Geoff Mabbett to the role of chair, and new trust members David Cragg, Liz Beattie and Dana Hlavacek. JACQUI WEATHERILL Chief Executive Officer We take this opportunity to acknowledge former chair, Dianne Rule - who continues as a trust member - for her considered and insightful leadership, and outgoing trust members John Jennison, Roma O’Callaghan and Ronda Jacobs for their valuable contribution.
Annual Report 2015-2016 07 PART 1: OVERVIEW
THE YEAR IN REVIEW – INNOVATION AND PRODUCTIVITY
In 2015-16, the third year of GMCT’s Strategic Plan 2013-16, we placed an even greater emphasis on understanding the long-term needs of our communities. We also challenged ourselves to increase efficiency in the delivery of services under the theme of innovation and productivity. Fundamental to this was reviewing and introducing initiatives, systems and processes, both internally to support staff and our operations, and externally to improve the experience of families, visitors and business partners. Underpinning this was a commitment to develop sustainable practices across infrastructure, assets and land development, including investigating and introducing alternative energy sources to our sites and improving land planning capacity.
08 INNOVATION HIGHLIGHTS
In 2015-16, GMCT introduced a number of initiatives and innovations that allowed us to better respond to stakeholder needs, improve operational efficiencies and enhance customer experiences.
LIVING LEGACY FOREST Overview: ALTONA CREMATORIUM A draft land strategy and a cemetery PARTNERSHIP Start date: land supply policy were developed Start date: to support GMCT’s acquisition and February 2015 2013 management of land. This ensures a Completion: minimum 15-year active (operational) Completion: December 2015 and 30-year reserved (future) land Launched May 2016 supply for GMCT. Annual project investment: Annual project investment: The land strategy includes two key $2,200,000 Internally resourced with additional elements: it identifies requirements Key teams involved: investment from Living Legacy Forest. (out to 2051) within GMCT’s area of geographic responsibility as well Planning and design, engineering, Key teams involved: as possible land that meets this outdoor staff. Commercial services, horticulture, requirement. It includes demographic Overview: planning and infrastructure, data and Australian Bureau of communications and community Statistics data and projects. A major redevelopment of Altona engagement. Memorial Park chapel and crematoria A significant land purchase in Glenroy complex resulted in a fit-for-purpose Overview: will extend our Northern Memorial facility that is responsive to local Living Legacy Forest Pty Ltd offers a Park by approximately five hectares cultural and emerging community new concept in the memorialisation and an additional two years burial needs. The design was informed by of cremated remains. GMCT planted capacity. The site features a significant extensive stakeholder consultation the world’s first Living Legacy tree warehouse providing an opportunity and provides appropriate and sensitive at Lilydale Memorial Park in 2015. to relocate and consolidate our north facilities for community groups and The patented technology converts region vehicle and maintenance depot. family members to fulfil culturally cremated remains into micronutrients specific funeral rites. which are infused into the delicate root system of a tree. GEOGRAPHIC INFORMATION SYSTEM FOOTSCRAY GENERAL When someone chooses a Living Legacy tree an additional 200 carbon Start date: CEMETERY – SHARED offset trees are planted in their name. September 2015 SERVICES MODEL The concept includes a smart phone Start date: Completion: app that allows visitors to find a Implementation commenced specific memorial tree and access Stage (1) May 2016 internal; January 2016 information about the deceased. Stage (2) July 2016 Completion: www.livinglegacyforest.com Annual project investment: May 2016 $193,000 (contract commencement) DEVELOPMENT OF NEW Key teams involved: Annual project investment: LAND STRATEGY Information communication Internally resourced and new annual technology, regional manager north, Start date: revenue stream client services, burial operations, July 2016 and planning and design. Key teams involved: Completion: Overview: West region staff, finance, information Ongoing communication technology, Geographic information system communications and community Annual project investment: mapping software provides significantly engagement. $115,000 improved search results for burial and cremated remains interments across Key teams involved: GMCT cemeteries. The system assists Commercial services and operations, with the management of assets and regional managers, finance and facilities and the integrity of historical business, and planning and design. records. Annual Report 2015-2016 09 INNOVATION HIGHLIGHTS (CONTINUED)
Overview: Key teams involved: Completion: Maribyrnong City Council approached Tenure team, information September 2015 GMCT with a proposal for the trust communication technology, to take on day-to-day management corporate information Annual project investment: and operations of Footscray General $410,000 Cemetery on a fee-for-management Overview: service arrangement. GMCT commenced a tenure program Key teams involved: to review right of interment (25 years All business units Key stakeholders including and over) on graves that had not yet Overview: the community, families and been used. funeral directors will benefit from Fusion is a business tool that GMCT’s extensive experience and The tenure team conducts research enables the daily upgrade and understanding of the cemetery to validate tenure status of relevant integration of core business systems, sector and streamlined approach burial plots with a view to potentially including cemetery management, to providing services. purchasing or re-claiming the right bookings, financial management and of interment in accordance with the electronic document management. Cemeteries and Crematoria Act 2003. TENURE PROGRAM It supports improved customer service, financial management and business The tenure program also assists with Start date: reporting. records management and geographic October 2015 information system mapping. Fusion is being implemented in Completion: two stages: Ongoing FUSION STAGE 1 Stage 1 — cemetery management Annual project investment: Start date: and finance $25,000 Implementation commenced Stage 2 — (September 2016): August 2014 — assets management
PROFILE AND PERFORMANCE OF GMCT CEMETERIES AND MEMORIAL PARKS
AMP TRC WEC WIC MW FO KC ACC BC EC HC LLC LMP TEC YGC CPRC FMP NMP PC PV NC
Established 1961 1865 1864 1853 2011 1869 1857 1858 1858 1883 1865 1861 1863 1858 1866 1859 1906 1986 1864 1996 1861
Lifecycle Active- Active- Active- Active- Active- Tansitional Active- Tansitional Establishment Active Perpetual Establishment Perpetual Active Transitional Transitional Active Active Active Establishment Perpetual Tansitional Tansitional Tansitional Tansitional Tansitional - Perpetual Tansitional - Perpetual - Active
Hectares 53.3 1.6 5.6 11.4 128.6 10.9 14 3.3 6 2 3.8 4.5 36.4 3.9 2 10.3 113 94.6 9.5 83.2 0.4
Number of cremations 1483 ------2186 - - - 3376 - - - (2015-16)
Number of interments 581 - 163 221 - 9 468 127 21 31 32 33 429 100 8 2 2284 221 - - (2015-16)
Community events held Yes - Yes Yes - - yes - Yes Yes Yes Yes Yes Yes - Yes Yes Yes Yes - -
Employee FTE WEST: 33.89 EAST: 28.45 NORTH: 132.66
AMP ALTONA MEMORIAL PARK CPRC COBURG PINE RIDGE CEMETERY FO FOOTSCRAY ACC ANDERSONS CREEK CEMETERY EC EMERALD CEMETERY HC HEALESVILLE CEMETERY BC BURWOOD CEMETERY FMP FAWKNER MEMORIAL PARK KC KEILOR CEMETERY
10 Part 1: Overview INNOVATION HIGHLIGHTS (CONTINUED)
A WILL FOR THE WOODS – The event was hosted as part of CHANGE READY TEAM FILM SCREENING the Sustainable Living Festival and formed part of GMCT’s community Commencement: Start date: connections and outreach program August 2015 February 2016 to encourage conversations about death and burial/memorialisation. Completion: Annual project investment: Ongoing $3300 (free community event) LEDGER SERVICES Annual project investment: Start date: Nil Key teams involved: 2013 Corporate communications and Key teams involved: engagement. Completion: All business units. Ongoing Overview: Overview: A Will for the Woods is a documentary Annual project investment: A Change Ready Team was established that follows one man’s journey to find $515,000 to become ‘champions of change’ and the most environmentally friendly drive staff engagement within GMCT. Key teams involved: form of burial. The film explores Led by the CEO, the team comprises green technology and a philosophical Burial operations staff from all business units and examination of the idea of returning Overview: has provided valuable input into the development of the Strategic Plan to the earth upon death. A skilled ledger team was established 2016-21. The screening was followed by a to improve the management and panel discussion with industry delivery of ledger and shutter removals in our north region sites and will be experts, facilitated by GMCT CEO rolled out to other regions in response Jacqui Weatherill. to business needs. This project provided staff with the opportunity to upskill and cross train.
PROFILE AND PERFORMANCE OF GMCT CEMETERIES AND MEMORIAL PARKS
AMP TRC WEC WIC MW FO KC ACC BC EC HC LLC LMP TEC YGC CPRC FMP NMP PC PV NC
Established 1961 1865 1864 1853 2011 1869 1857 1858 1858 1883 1865 1861 1863 1858 1866 1859 1906 1986 1864 1996 1861
Lifecycle Active- Active- Active- Active- Active- Tansitional Active- Tansitional Establishment Active Perpetual Establishment Perpetual Active Transitional Transitional Active Active Active Establishment Perpetual Tansitional Tansitional Tansitional Tansitional Tansitional - Perpetual Tansitional - Perpetual - Active
Hectares 53.3 1.6 5.6 11.4 128.6 10.9 14 3.3 6 2 3.8 4.5 36.4 3.9 2 10.3 113 94.6 9.5 83.2 0.4
Number of cremations 1483 ------2186 - - - 3376 - - - (2015-16)
Number of interments 581 - 163 221 - 9 468 127 21 31 32 33 429 100 8 2 2284 221 - - (2015-16)
Community events held Yes - Yes Yes - - yes - Yes Yes Yes Yes Yes Yes - Yes Yes Yes Yes - -
Employee FTE WEST: 33.89 EAST: 28.45 NORTH: 132.66
LLC LILYDALE LAWN CEMETERY PC PRESTON CEMETERY WIC WILLIAMSTOWN CEMETERY LMP LILYDALE MEMORIAL PARK TEC TEMPLESTOWE CEMETERY YGC YARRA GLEN CEMETERY NC NORTHCOTE CEMETERY TRC TRUGANINA CEMETERY PV PLENTY VALLEY (GREENFIELD SITE) NMP NORTHERN MEMORIAL PARK WEC WERRIBEE CEMETERY MW MELTON WEST (GREENFIELD SITE)
Annual Report 2015-2016 11 SITES MAP AND 12 NORTHERN MEMORIAL PARK HIGHLIGHTS Highlight: Purchase of five-hectare site, extending the existing site
6 North 98.6 Establishment-Active FAWKNER MEMORIAL PARK Highlights: Development of a conservation management plan commenced Half a million visitors 18 7
North 113 Active 12 10 6 6 8 19 8 4 13 9 KEILOR CEMETERY 20 Highlights: 11 1,200 attendees at All Souls, Day mass service Release of historic graves as part of tenure program 2 14 North 14 Active MELBOURNE 15 21 1 17 16 3 WERRIBEE CEMETERY Highlight: 16 Completion of the new mausoleum and commemorative blessing by Auxiliary Bishop 5 Vincent Long
West 5.6 Active-Transitional
1 ALTONA MEMORIAL PARK Highlight: Completion of redeveloped chapel and crematoria, including culturally appropriate facilities
West 53.3 Active
17 WILLIAMSTOWN CEMETERY Highlights: Establishment of the Friends of Williamstown Corporate head office Region Cemetery Regional HQ Victoria’s Heritage Restoration Fund grant secured Land size (hectares) to restore the historic fountain, circa 1882 GMCT sites Stage in lifecycle West 11.4 Active-Transitional Greenfield sites (refer page 2)
12 Part 1: Overview 13 10 PRESTON CEMETERY LILYDALE MEMORIAL PARK Highlights: Highlight: Monumental graves released The Great Cemetery Open Day focused on All Souls Day attended by 550 guests sustainable and green burials
North 9.5 Active East 36.4 Active
15 TRUGANINA CEMETERY
West 1.6 Perpetual 18 7
20 MELTON WEST (GREENFIELD SITE) 12 West 128.6 Establishment 10 6 6 19 9 8 4 13 4 COBURG PINE RIDGE CEMETERY 20 North 10.3 Transitional-Perpetual 11
2 11 NORTHCOTE CEMETERY 14 MELBOURNE North 0.4 Perpetual 15 21 1 17 19 PLENTY VALLEY (GREENFIELD SITE) 3 North 83.2 Establishment
16 2 ANDERSONS CREEK CEMETERY
East 3.3 Active-Transitional 5
3 BURWOOD CEMETERY
East 6 Transitional
5 EMERALD CEMETERY
East 2 Active-Transitional
7 HEALESVILLE CEMETERY
East 3.8 Active-Transitional
9 LILYDALE LAWN CEMETERY
East 4.5 Transitional-Perpetual
14 TEMPLESTOWE CEMETERY 18 YARRA GLEN CEMETERY Highlight: East 2 Active-Transitional
Release of limited historic graves as part of the tenure project 21 FOOTSCRAY CEMETERY
East 3.9 Transitional-Perpetual West 11 Transitional-Perpetual
Annual Report 2015-2016 13 ORGANISATIONAL STRUCTURE
VICTORIAN STATE GOVERNMENT MINISTER FOR HEALTH
THE GREATER METROPOLITAN CEMETERIES TRUST
MANAGER Communications CHIEF EXECUTIVE OFFICER and engagement
DIRECTOR DIRECTOR DIRECTOR Strategic planning Finance and Commercial services and infrastructure business and operations
REGIONAL MANAGER SENIOR MANAGER MANAGER Engineering Risk and workforce East
REGIONAL MANAGER MANAGER MANAGER Planning and design Human resources West
REGIONAL MANAGER MANAGER MANAGER Horticulture Finance North
MANAGER MANAGER MANAGER Information Business Assets and facilities communication development technology
MANAGER Corporate information
14 Part 1: Overview PART 2: OUR PERFORMANCE
In 2015-16, GMCT continued to deliver against five strategic goals that informed our annual plans through the 2013-16 reporting periods. These goals, relevant activities and their status as at 30 June 2016 are outlined on the following pages.
At GMCT, performance includes financial performance, compliance, sustainability, grounds maintenance, customer service and managing appropriate and sufficient stock to meet current and future community needs. We measure our performance against key metrics outlined in our annual plan, industry standards and a range of internal benchmarks. We also monitor our performance against stakeholder expectations in relation to customer service, quality of services and information, how easy we are to do business with, the range of services on offer (including culturally appropriate products and services), the condition of our facilities and grounds, and our engagement with communities.
Annual Report 2015-2016 15 PERFORMANCE AGAINST OBJECTIVES AND INDICATORS
MEASURING OUR PERFORMANCE
VISION LASTING MEMORIES, PEACEFUL PLACES
Strategic Strategic Goal 1: Strategic Goal 2: Strategic Goal 3: Strategic Goal 4: Strategic Goal 5: Goals Enhance Provide strong Build a viable Develop our Demonstrate relationships with sector leadership and sustainable people strong governance the community, organisation and accountability clients and stakeholders
Key Action Stakeholder Sector Asset Culture Risk Areas engagement leadership management Safety management Productivity Skills and Committee Long-term capability and trust financial strategy governance
3 Year Provide services Provide the Ensure the Become a Deliver effective Strategic that respond to broader integrity and preferred corporate Objectives the needs of our cemetery and viability of our employer governance communities funeral sectors assets in the short Embed a safety Provide an Enhance the with support and long-term culture into the operating reputation and and guidance on Embed a organisation environment in industry issues brand of GMCT continuous Ensure our alignment with and operations as a professional business process vision and the trust’s risk high quality improvement values are fully appetite service provider culture to ensure embraced and Provide accurate in the industry efficiency and demonstrated by and accessible Provide a range effectiveness in the organisation records of innovative every element of our operations products that address the Ensure GMCT changing needs is financially of our clients sustainable and meets its Promote GMCT’s long-term financial products and obligations services and assist families in Optimise revenue making educated and control choices expenditure while driving financial Improve accountability in employee all areas of our communications, business performance and engagement Ensure adequate land and associated infrastructure is available to provide ongoing cemetery services to the community Minimise our impact on the natural environment
ANNUAL PLAN
16 Part 2: Our Performance AT A GLANCE 206 members of our workforce 21 cemeteries and memorial parks across Melbourne’s north, east and west $6.4 million investment in the development of new stock $15 million investment in capital works projects 638,432 visitors to Fawkner Memorial Park 4724 burial interments 7049 cremations 443 mausoleum interments + 2500 hours undertaken by staff for development and training
Annual Report 2015-2016 17 STRATEGIC GOAL 1
Enhance relationships with the community, clients and stakeholders by providing services that respond to the needs of our communities.
A key focus in 2015-16 was progressing the improvement of our facilities and infrastructure to ensure culturally appropriate burial and cremation options for local communities. GMCT worked hard to engage with a range of stakeholder groups to understand their needs and interests and to inform decision making across all aspects of our business. Our community advisory committee made a significant impact in this area, greatly enhancing our engagement efforts and outcomes.
STRATEGIC OBJECTIVE 2015–16 ACTIONS RESPONSIBILITY STATUS
Develop and implement the Community Engagement Framework 2015–2018 in order to better inform, consult, involve, collaborate and empower our Engage our stakeholders communities. and provide services which respond to the Commission and complete the Altona chapel and needs of our communities crematorium redevelopment, to facilitate efficiency and productivity improvements and service the growing western suburbs communities.
Develop a digital strategy to increase the scope and public appeal of our on-line services and guide our investment in digital innovations. Provide a range of innovative products Implement recommendations from the Cremator which continually Review 2015 for 2015-16. address the changing needs of our clients Develop a concept and marketing campaign for a new Asian – inspired burial area at Lilydale Memorial Park.
CEO
Director Strategic Planning & Infrastructure
Director Commercial Services & Operations
Director Finance & Business
Manager Communications and Engagement
Senior Manager Risk and Workforce
Completed In progress
18 Part 2: Our Performance STRATEGIC GOAL 2
Provide strong sector leadership by supporting the broader funeral and cemetery sectors on industry issues and operations.
GMCT commenced a community outreach program and hosted events to encourage conversations about death, dying and memorialisation. We connected with community groups and organisations to explore opportunities to work together, which enhanced our understanding of local communities. Partnerships with industry, support agencies, special interest groups (including the Australian Centre for Grief and Bereavement) and local councils, presented genuine opportunities to collaborate for mutually beneficial outcomes. Many of these partnerships will continue in 2016-17 and beyond.
STRATEGIC OBJECTIVE 2015–16 ACTIONS RESPONSIBILITY STATUS
Develop and implement the Community Engagement Framework 2015–2018 in order to better inform, consult, involve, collaborate and empower our communities. Foster our relationships with, and assist the activities of, our friends Research and develop three new, innovative and similar groups product lines for GMCT. to encourage their continuing growth and their support of and Mentor, foster and enhance existing relationships with contribution to GMCT government, Class A and B cemeteries, Cemeteries and Crematoria Association of Victoria, community organisations, philanthropic organisations, educational institutions and industry bodies to further their engagement with and contribution to GMCT.
Annual Report 2015-2016 19 STRATEGIC GOAL 3
Build a viable and sustainable organisation, ensuring the integrity and viability of our assets in the short and long term.
Reviewing and improving current processes and implementing new systems to effect more efficient and effective outcomes across our business were a priority. Sustainable business practices – financial, land and assets management, administrative and environmental – were key drivers, resulting in streamlined processes and the establishment or consolidation of fundamental systems.
STRATEGIC OBJECTIVE 2015–16 ACTIONS RESPONSIBILITY STATUS
Ensure the integrity and Continue asset condition inspections to inform viability of our assets in long-term plans to effectively manage all GMCT the short and long term owned assets.
Embed the new key business systems – finance, Embed a continuous cemetery management system, assets management* business process and geographic information system – to improve improvement culture the efficiency of critical business processes. to ensure efficiency and effectiveness in every element of Pilot mobile computing and related technology our operations to develop the burial operations verification process that will support automated grave verification procedures and reduce potential data entry mistakes.
Ensure GMCT is Implement stages two and three of the pricing review financially sustainable to ensure an effective pricing model is developed for and meets its long-term all products and services. financial obligations
* Asset management capability will be implemented in 2016-17.
CEO
Director Strategic Planning & Infrastructure
Director Commercial Services & Operations
Director Finance & Business
Manager Communications and Engagement
Senior Manager Risk and Workforce
Completed In progress
20 Part 2: Our Performance STRATEGIC OBJECTIVE 2015–16 ACTIONS RESPONSIBILITY STATUS
Implement a preferred supplier list to manage Optimise revenue and expenditure in a cost-effective and efficient manner. control expenditure, while driving financial accountability in all Implement the Historic Grave Project and a range areas of our business of tenure activities to improve the financial sustainability of GMCT and meet community need.
Ensure adequate land and associated Develop a land strategy to guide the trust’s infrastructure is development of existing land and the acquisition and available to provide development of proposed future cemetery land to ongoing cemetery ensure GMCT can meet the long-term needs of our services to the communities for burial, cremation and memorialisation. community
Identify and fund innovative projects to reduce reliance on potable water, decrease waste production, reduce energy consumption, landfill and our reliance on potable water.
Establish a staff-based ‘Green Team’ to lead the organisation on sustainable work practices. Minimise our impact on the natural environment Implement identified solar power energy saving initiatives across selected GMCT sites.
Install backup power generators at key regional sites to support business continuity requirements.
Annual Report 2015-2016 21 STRATEGIC GOAL 4
Develop our people
Our people are integral to the delivery of GMCT’s services and to ensuring we meet stakeholder expectations. Most importantly, our people are responsible for creating and delivering the GMCT customer experience, aligned to our values of compassion, respect, integrity and sustainability. Recognising the critical role of each and every team member in day-to-day service delivery we prioritised further development of our occupational health and safety program ‘Work Safe, Grave Safe, Home Safe’ and celebrated the GMCT employee experience through “GMCT Stories”. GMCT Stories highlights personal interviews with staff as they share their experience of working at GMCT and in particular what gives their work meaning. It supports our recruitment program and helps demystify the experience of working in a cemetery.
STRATEGIC OBJECTIVE 2015–16 ACTIONS RESPONSIBILITY STATUS
Become a preferred * Implement the Workforce Plan – Year 1.* employer
Further engage and embed employee knowledge Embed a safety culture in our occupational health and safety culture into the organisation through a range of training activities, focus groups and meetings.
Ensure GMCT’s vision and Continue to showcase our vision and values through values are fully embraced the development of GMCT Stories which showcases and demonstrated by employee contributions and best practice. the organisation
* Not yet commenced. Due to organisational restructure this has been deferred to 2016-17.
CEO
Director Strategic Planning & Infrastructure
Director Commercial Services & Operations
Director Finance & Business
Manager Communications and Engagement
Senior Manager Risk and Workforce
Completed In progress
22 Part 3: Our Organisation STRATEGIC GOAL 5
Demonstrate strong governance and accountability through the delivery of effective corporate governance. GMCT’s strong performance in 2015-16 was underpinned by a commitment to the highest standards of compliance and governance in accordance with external standards and expectations and internal policies and processes. A focus on key actions outlined in our annual plan ensured we were transparent and accountable throughout the reporting period. Applying best practice across day-to-day business processes, such as project management and document management systems will result in more effective outcomes and will ensure that the resources and finances invested in 2015-16 continue to deliver well into the future.
STRATEGIC OBJECTIVE 2015–16 ACTIONS RESPONSIBILITY STATUS
Implement a project management office to better coordinate and provide oversight over GMCT’s strategic projects.
Deliver effective Finalise a suite of annual supply contracts to provide corporate governance contemporary interment options.
Develop, draft and finalise GMCT’s new rolling three-year* strategic plan (2016-19). * five-year strategic plan
Provide an operating Test the business continuity plan by staging a series environment in of live scenario tests to validate GMCT risk and alignment with the compliance procedures and processes. trust’s risk appetite
Provide accurate and Implement an electronic document and records accessible records management system and digitisation plan.
Annual Report 2015-2016 23 PERFORMANCE REPORT
Performance data over the past four years
7000
6000
5000
4000
3000
2000
1000
0 Cremated Remains Burials Cremations Chapel Services^ Interments
July 2012-June 2013 July 2013-June 2014 July 2014-June 2015 July 2015-June 2016
Energy consumption
USEAGE USEAGE USEAGE ENERGY 2015-16 2014-15 2013-14
Electricity 1,453 MwH 1,548 MwH 1,625 MwH
Gas 10,321 GJ 10,588 GJ 10,797 GJ
Water 71 mega litres 106 mega litres 77 mega litres
^ Reduced chapel services 2014-15 are indicative of facilities being unavailable at Altona Memorial Park and Fawkner Memorial Park during re-development.
24 Part 2: Our Performance FINANCIAL COMPARATIVE ANALYSIS
Revenue Operating Expenses
57% 47% 7% 5% 9% 4% 11% 18% 16% 13% 13%
$ 000 $ 000
Right of interment 25,704 Salaries and wages 18,037
Interments 7,143 Maintenance and operations 5,232
Cremations 5,138 Administration 5,263
Memorialisation 4,026 Cost of sales 6,933
Other 3,096 Other 1,420
Cemetery levy 1,795
GMCT comparative results are as follows:
2016 2015 2014 2013 2012 $ 000 $ 000 $ 000 $ 000 $ 000
Operating and investment income 57,777 59,678 58,977 53,429 50,338
Cost of sales (6,933) (6,534) (7,174) (6,871) (6,112)
Resources received free of charge - - - 2,600** -
Total income from transactions 50,844 53,144 51,803 49,158 44,226
Total expenses 31,747 33,438 23,720* 26,807 26,823
Operating/surplus/deficit 19,097 19,706 28,083 22,351 17,403
Total assets 369,904 351,289 328,181 298,665 271,659
Total liabilities 24,622 24,103 21,715 19,549 22,328
Net assets 345,282 327,186 306,466 279,116 249,331
* Included $6.8M of realised gains on sale of investments. ** Recognition of land controlled at Melton West and valued by the Valuer General of Victoria.
Annual Report 2015-2016 25 PART 3: OUR ORGANISATION
THE TRUST AT A GLANCE
OBJECTIVES, FUNCTIONS AND POWERS The Greater Metropolitan Cemeteries Trust (GMCT) is classified as a Class A cemetery trust under the Cemeteries and Crematoria Act 2003 (the Act).
MANNER OF ESTABLISHMENT AND THE RELEVANT MINISTERS Established in 2010, GMCT is a body corporate with perpetual succession and is accountable to the Department of Health and Human Services and the Minister for Health. GMCT is responsible for the management and perpetual maintenance of 18 cemeteries across Melbourne’s north, east and west, two greenfield sites, and all associated burial, cremation and interment services. It is also responsible for the management of one site under a fee-for-service arrangement.
26 Governance Health and safety Environmental Workforce Community and reporting Workplace health sustainability We are committed We greatly value Our governing and safety is integral Commitment to to the ongoing the relationships legislation, operating to our business sustainability is development and we have with processes and operations and a core value of support of our team industry and operating model our values. our organisation. in order to nurture other stakeholders provide strategic Having completed a workforce culture and the diverse direction and inform Occupational the organisation’s that is aligned with communities decision making. health and safety establishment phase, our values and where we serve. (page 40) we will now focus individuals value Accountability on implementing their role in achieving Stakeholder engagement and and reporting/ our sustainability strategic goals. consultation governance strategy. (page 34) Our team (page 31) Initiatives (page 42) Trust Events (page 41) Learning and (page 28) (page 32) development Executive (page 43) Management Group Awards and (page 36) recognition (page 44)
PERFORMANCE MANAGEMENT AND NATURE AND
We value robust reporting and ACCOUNTABILITY RANGE OF SERVICES governance, and hold ourselves GMCT is a not-for-profit organisation PROVIDED to the highest levels of compliance. that serves Melbourne’s diverse We ensure our performance is interment in graves multicultural communities. measured against community We proudly provide burial, cremation interment in mausolea expectations, our strategic objectives and memorialisation services to and annual business plans. interment of cremated remains more than 12,000 families each year as well as perpetual maintenance cremations of more than 600 hectares of public venue hire park land that have been allocated for cemetery purposes. hospitality memorialisation perpetual maintenance archival cemetery and genealogical records community events
Annual Report 2015-2016 27 GMCT TRUST MEMBERS
Corporate governance of the organisation is the responsibility of nine trust members who are appointed by the Governor in Council on the recommendation of the Minister for Health.
The trust’s key roles include: In making new appointments to the trust, the Victorian Government setting and steering the ensures the trust has the necessary organisation’s strategic direction combination of skills and experience. The chief executive officer is appointed approving annual budgets and ensuring sound financial by the trust for a term of up to five management and asset management years and can be reappointed. In February 2016, terms expired for overseeing, monitoring and assessing performance against the annual three trust members: John Jennison, plan; ensuring compliance with Roma O’Callaghan and Ronda Jacobs. statutory and regulatory obligations The position of trust chair was also reappointed and trust member Geoff and ensuring effective risk Mabbett was appointed. management through a robust framework and systems. The Department of Health and Human Services conducted As outlined in The Cemeteries interviews with applicants for the and Crematoria Act 2003 (the Act), three trust positions and three new GMCT maintains a perpetual trust members were appointed by maintenance fund to fulfil its the Governor in Council on the obligations to provide perpetual recommendation of the Minister maintenance to 18 cemeteries. for Health: Elizabeth Beattie, David Cragg and Dana Hlavacek. In accordance with the Act and GMCT’s terms of reference, trust In addition, the following members members hold office for a term of were reappointed to the trust: up to three years but are eligible to Dianne Rule and Kim McAliney. apply for reappointment for a further three-year period. Their remuneration is set by the Victorian Government.
28 Part 3: Our Organisation GMCT TRUST MEMBERS AS AT 30 JUNE 2016
New members appointed March 2016
TRUST CHAIR – GEOFF MABBETT DR JAN PENNEY (appointed 30 March 2016) BA, Dip Ed, PHD BEng (Hons), MEng Sci, MIE (Aust), Member finance and investment MAICD committee and audit and risk DANA HLAVACEK Chair executive performance and management committee B.Com (Hons), M.Acc, FCA, GAICD remuneration committee Chair audit and risk management committee and member finance and investment committee
JENNIFER KEARNEY DIANNE RULE NSW Leaving Cert BA BEd GAICD Member audit and risk management Chair finance and investment DAVID CRAGG committee and executive committee and BA, Grad Dip of (HR) Management member executive performance and performance and remuneration Member finance and investment remuneration committee committee committee and community advisory committee
KIM MCALINEY JACK WEGMAN JP, BJ, Adv Dip Pub Safety(EM), BA, Grad Dip (Psych) FCPA, GAICD Member finance and investment ELIZABETH BEATTIE Member audit and risk management committee and executive performance Chair community advisory committee and community advisory and remuneration committee committee committee
Retired trust members as of February 2016
JOHN JENNISON ROMA O’CALLAGHAN RONDA JACOBS FIE Aust, CPEng (rtd) BBus, MBL, GAICD, ECCP BBus, GAICD Chair community advisory Member executive performance and Member finance and investment committee remuneration committee and audit committee and risk management committee Annual Report 2015-2016 29 TRUST AND COMMITTEE MEETINGS – ATTENDANCE During the reporting period the trust met monthly to fulfil its responsibilities to oversee the governance and strategic direction of GMCT and monitor performance against strategic objectives and business plans.
EXECUTIVE AUDIT & RISK FINANCE & COMMUNITY PERFORMANCE & GMCT TRUST TRUST MANAGEMENT INVESTMENT ADVISORY REMUNERATION MEMBERS MEETINGS COMMITTEE* COMMITTEE* COMMITTEE COMMITTEE
Geoff Mabbett (appointed chair 12/13 4/4 7/8 2/2 March 2016)
Dianne Rule (chair September 2014 – 12/13 5/5 6/6 February 2016)
Elizabeth Beattie 4/4 1/1 (appointed March 2016)
David Cragg 4/4 2/2 1/1 (appointed March 2016)
Dana Hlavacek 2/4 1/1 1/2 (appointed March 2016)
Ronda Jacobs 9/9 7/8 (retired March 2016)
John Jennison 9/9 3/3 4/4 (retired March 2016)
Jennifer Kearney 12/13 10/10 6/6
Kim McAliney 12/13 4/5 8/8 1/1
Roma O’Callaghan 6/9 2/4 2/4 (retired March 2016)
Dr Janice Penney 13/13 2/2 10/10 2/3
Jack Wegman 10/13 2/4 1/2 2/2
# The first figure reflects the number of meetings attended by the trust member. The second indicates the number of meetings scheduled during their time on that committee — i.e.12/13 means attendance at 12 of 13 scheduled meetings. There is a standing invitation to all trust members to attend committee meetings of which they are not a member.
* Independent committee members: Kevin Quigley - audit and risk management committee Dennis Sams - finance and investment committee
30 Part 3: Our Organisation STRENGTHENING OUR COMMUNITY CONNECTIONS COMMUNITY ADVISORY COMMITTEE – CHAIR’S REPORT
In accordance with the Cemeteries and Crematoria Act 2003, GMCT is required to establish a community advisory committee (CAC). The nature and role of the CAC are outlined in the community advisory committee guidelines for Class A cemetery trusts and GMCT’s CAC terms of reference.
As chair of the CAC, it has been a It was a busy year of consolidation JOHN JENNISON privilege to help position the committee and growth. As chair it was exciting Chair as a valuable resource in facilitating and personally rewarding to have Community Advisory Committee and improving community engagement. made a contribution. Trust member The CAC performed a consultative My sincere thanks and appreciation Retired, March 2016 role in matters concerning the future to all CAC members for generously development of trust properties, public volunteering their time and for their engagement, events, and in a number of contribution, commitment and insights other community related areas. throughout the year. I am pleased to leave the CAC well-positioned Directors and senior managers attended for a wonderful future of continued meetings throughout the year and this contribution. helped facilitate transparent and open dialogue between the committee and trust.
Friends and volunteers of GMCT were honoured at a special morning tea with Liz Beattie (fourth from left), trust member and chair community advisory committee, as part of Volunteers Week.
Annual Report 2015-2016 31 COMMUNITY ENGAGEMENT AND EVENTS
GMCT is committed to hosting a range of events and activities that honour and celebrate our diverse communities. Activities encourage visitation, help de-mystify cemeteries, engage the public in conversations about death, funerary rites and memorialisation, and highlight the important role of cemeteries.
We honour and support diverse religions and cultures through events such as All Souls Day, Chinese Ancestor Day and Shab e Bara’at; we celebrate and reflect on the stories of our ancestors and others with historic walks and commemorative services; our education events and seminars provide the community with opportunities to learn about the death and funerary rites of other cultures and encourage early discussion about difficult conversations about death, dying and decision making.
SITE COMMUNITY EVENTS HELD
Burwood Cemetery All Souls Day mass
Clean up and tree planting events Emerald Cemetery Friends and Carers of Emerald Cemetery (FACES)
Healesville Cemetery Healesville Historical society: history walk
50th Anniversary of the Battle of Long Tan, with the Vietnam Veterans Association of Australia Victorian Branch All Souls Day mass Lilydale Lawn Cemetery Clean Up days Yarra Valley Cultural Group Commemoration of the 100 year evacuation of Gallipoli and unveiling of memorial plaque to WIlliam Scurry
All Souls Day mass The Great Cemetery Open Day Funeral Directors and Stonemasons networking function Lilydale Memorial Park Living Legacy tree planting Annual meeting 2014-15 Fathers’ Day memorial service Mothers’ Day memorial service
Templestowe Cemetery Historic Walk (with local historian)
Corrections Victoria clean up days Coburg Pine Ridge Cemetery Historic Walks Friends of Coburg Cemetery History
50th Anniversary of the Battle of Long Tan, with the Vietnam Veterans All Souls Day mass (Catholic) The Great Cemetery Open Day Historic Tour (with Fawkner Library) MoreArt public art show (with Moreland City Council) Carols in the Garden of Angels (with Friends of the Garden of Angels) Fawkner Memorial Park Baby Lily Grace Day Anzac Day service Tour with Japan Agricultural Cooperative Chinese Ancestor Day Shab e Bara’at (Islamic) Tour with horticulture staff from Southern Metropolitan Cemeteries Trust
32 Part 3: Our Organisation SITE COMMUNITY EVENTS HELD
Keilor Cemetery All Souls Day mass
Clean up days Friends with Angels (La Trobe section) Northern Memorial Park All Souls Day mass (Greek Orthodox) Christmas with Angels
Preston Cemetery All Souls Day mass
50th Anniversary of the Battle of Long Tan, with the Vietnam Veterans Altona Memorial Park All Souls Day mass Opening of the new crematoria and chapel complex
Werribee Cemetery Opening of new mausoleum and official blessing by the auxilliary bishop of Melbourne
Williamstown Cemetery All Souls Day mass
COMMUNITY ENGAGEMENT
How we have improved the experience for stakeholders:
Developed a community A refresh of our existing website Provided a range of cemetery-related engagement manual to guide resulted in an increase of visitation resources and fact sheets (produced interactions with our diverse by 12.5 per cent on 2014-15. by GMCT) through a dedicated communities. The manual supports History and Heritage page. A series the development of internal Our Facebook community has of cemetery histories (based on capabilities to deliver effective increased by almost 50 per cent documents submitted to the Public community engagement and during 2015-16 and we continue Record Office Victoria, PROV) and consultation and the results to explore ways to leverage social conservation management plans for inform stakeholder relations and media to improve our customer a number of our cemeteries are also decision making. service experience, understand the available online. needs of our communities, gather Supported community groups consumer insights and facilitate Partnered with volunteer friends and organisations to access and engagement and conversation about groups to improve the condition of engage with our cemeteries with death, dying, and memorialisation. a number of our cemeteries, host an emphasis on education and tours and community events. knowledge sharing. Visiting groups An e-newsletter will be launched include funeral directors, students, in 2016-17. special interest groups, and international visitors.
Increased our accessibility through online engagement with customers and the community on key information about our business activities. This includes updates on construction works, pricing, new stock releases, consumer resources, and news and events.
Annual Report 2015-2016 33 REPORTING TO GOVERNMENT
The trust informs the government and BOARD PERFORMANCE Four permanent committees relevant government departments of established according to Section 18 As part of its commitment to all major developments and activities of the Act operated during 2015-16. effective and transparent corporate through: governance, the trust undertook Each committee is chaired by a trust An annual report (containing an independent benchmarked member and operates under written information about operations performance review in June 2016. terms of reference that provide a and financial and non-financial blueprint for its procedure. In 2016, performance against key indicators) A report was provided to all each committee reviewed its terms members that highlighted of reference and the revised versions A detailed annual corporate plan, self-assessed strengths and are available on GMCT’s website. in accordance with Section 18N weaknesses in performance and made of the Cemeteries and Crematoria recommendations for improvement. During 2015-16, trust committees Act 2003 (the Act) As a result of this review, the board also reviewed and evaluated their is working collaboratively to better performance through self-assessments Direct contact between the understand their context and to ensure effective governance chair, chief executive officer and strengthen their performance. practices are in place. government representatives on key issues INDEPENDENT ADVICE AUDIT AND RISK Frequent communication at MANAGEMENT COMMITTEE an executive level regarding Trust members are entitled (with prior performance, industry and approval of the trust chair) to obtain This committee is a financially policy issues. relevant independent professional literate, independent body that assists advice relating to the discharge of the trust in fulfilling its governance their responsibilities. and oversight responsibilities in the INDEPENDENCE OF following areas: TRUST MEMBERS TRUST COMMITTEES financial reporting compliance There is a code of conduct policy for members and each year trust In consultation with trust members, internal and external audit members are required to complete the chair allocates members to a declaration of private interest a number of trust committees. internal control systems and statement. Declarations of conflict These committees help execute processes trust responsibilities in a review of interest are made at the beginning risk management of each meeting and an annual or advisory capacity only. declaration of conflict of interest The trust may also co-opt independent information systems statement is completed. members from outside the organisation legislative and regulatory to provide specialist skills, knowledge compliance. and expertise if required. Currently, independent members has been appointed to the audit and risk management committee and the finance and investment committee.
34 Part 3: Our Organisation FINANCE AND INVESTMENT Senior Venerable Tang HERITAGE AND HISTORY COMMITTEE Meg Jenkins WORKING GROUP The finance and investment committee Angelo D’Amore In 2015, a working group was has an advisory role assisting the trust established to provide guidance to Wendy Kostraby in fulfilling its statutory and fiduciary the organisation on the integration responsibilities in accordance with the David Cragg (trust member) of history and heritage into planning Act in matters relating to: Kim McAliney (trust member) and operations.
appropriate, prudent, sustainable Its objectives are to: Dr Jan Penney (trust member) acts and efficient use of investment funds as chair. proactively engage with community establishment and maintenance of members to ensure that community Key objectives of this group include: the perpetual maintenance fund views are considered in the planning ensure activities are undertaken with the accuracy and veracity of regular and delivery of GMCT services to due respect to the heritage of the financial reports support the integration of community sites and assets under management views at all levels of GMCT operations, compliance with obligations to third planning and policy development provide advice to the trust in relation parties and relevant internal policies to the integration of history and inform and monitor the development heritage at all levels of cemetery other financial matters as requested and implementation of GMCT’s operations, planning and policy by the trust. community engagement framework. development
contribute to the interpretation COMMUNITY ADVISORY EXECUTIVE PERFORMANCE and celebration of the history COMMITTEE AND REMUNERATION and heritage of GMCT, its sites The committee’s role is to consider COMMITTEE and assets any matters that are referred to it by As required under Section 18L of the the trust and to raise with the trust Act and in accordance with Government any issues of concern or matters of Sector Executive Remuneration Panel interest to the community regarding guidelines, the executive performance the services provided by GMCT. and remuneration committee provides advice and direction to the trust on Committee members include: matters such as: Liz Beattie (chair and trust member) the overall performance and Mervyn Hayman-Danker remuneration of executives, and Lee Anthony the individual remuneration packages of: Annie Bolitho the chief executive officer
other executive positions as defined, from time to time, by applicable government policies.
Annual Report 2015-2016 35 MANAGEMENT COMMITTEES AND STAFF LEADERSHIP
EXECUTIVE MANAGEMENT DIRECTOR COMMERCIAL DIRECTOR STRATEGIC PLANNING GROUP SERVICES AND OPERATIONS AND INFRASTRUCTURE DAVID CROWE PELAGIA MARKOGIANNAKIS The aim of the executive management Dip Hort Sci, BAppSc(Hort), FAICD MEngSc, Grad Dip Eng, Dip App Sc, group is to ensure that activities Adv Dip Proj Mgt, Dip Co Dir occurring within GMCT are consistent The director commercial services with the: and operations is responsible for The director strategic planning and strategic leadership in the day-to-day infrastructure is responsible for the GMCT strategic plan delivery of cemetery and crematoria master plan development for GMCT Cemeteries and Crematoria Act 2003 services including customer care, sales sites, strategic land acquisitions and marketing, burial operations and and the implementation of master GMCT policies and procedures. horticulture services. plans. This includes the design, of strategic major projects, project EXECUTIVE MANAGEMENT DIRECTOR FINANCE AND BUSINESS management and delivery, asset BART CLINGIN management and facilities TEAM maintenance. BBus (Acct), CA, GAICD CHIEF EXECUTIVE OFFICER The director finance and business JACQUI WEATHERILL LEADERSHIP GROUP MBA, BA Rec, Grad Dip Sp Sci, GAICD is responsible for establishing, promoting and delivering a corporate The leadership group comprises the The CEO sets the strategic and financial framework that facilitates executive management group and direction and vision for the the achievement of GMCT’s vision managers from all business units. organisation, with input from the as well as strategic and business trust. She is responsible for advising objectives. The directorate provides The leadership group: the trust on operational, financial a range of functions including provides an interactive forum for and other matters, and delegates finance, information communication robust discussion of ideas and responsibility for management and technology, human resources, risk and collboration relating to team/ day-to-day operations to the executive compliance, and corporate information. divisional activities management group. The CEO has four direct reports: the director finance The senior manager risk and workforce communicates plans, outcomes and and business, director commercial attends executive management achievements of established working services and operations, the director meetings to provide relevant advice, groups and the following internal strategic infrastructure and planning, and reports through to the director organisational committees: and the manager communications finance and business. ‘Green Team’ committee and engagement. consultative committee
occupational health and safety committee
36 Part 3: Our Organisation INTERNAL COMMITTEES AND GROUPS
OCCUPATIONAL HEALTH reduce injury rates, severity rates, CHANGE READY TEAM frequency rates and workers’ AND SAFETY COMMITTEES The ‘Change Ready Team’ provides (CORPORATE AND REGIONS) compensation costs associated with staff, plant, vehicle accidents and advice and assistance to the CEO GMCT recognises the importance of other workplace hazards and risks. regarding the development, review developing and maintaining a healthy and promotion of a range of business and safe workplace and the importance and staff activities. of continuous monitoring and INFORMATION reviewing of safety standards. COMMUNICATION GREEN TEAM TECHNOLOGY STEERING The aims of the occupational health COMMITTEE Refer page 41. and safety committees are to: The purpose of the information take a proactive and practical role in communication technology (ICT) PROJECT CONTROL GROUPS the assessment, development and steering committee is to: implementation of work practices GMCT undertakes a number of minor to protect and improve the health, steer the overall ICT strategy and major projects as part of annual safety and wellbeing of employees, and ensure the operation and business plans. Project control groups contractors and members of the management of ICT assets are are established to assist in effective public executed in alignment with project governance and may include this strategy external expertise. address, discuss and investigate any matters deemed relevant to ensure executive oversight of the Project control groups assisted the health, safety, rehabilitation implementation of the ICT strategy in the development, review and and wellbeing of employees or and the prioritisation of projects implementation of the following concerning contractors and members within that strategy so that effort projects in the reporting period: of the public, raised by management is directed towards initiatives that or safety representatives will deliver the greatest value to digital strategy GMCT, its key stakeholders and the through the director finance and Fusion community. business, provide advice and burial operations manual recommendations to GMCT’s executive management group CONSULTATIVE COMMITTEE Footscray General Cemetery shared (EMG) on occupational health and services model implementation safety matters that require policy The consultative committee is a key development and/or amendment, reference group of staff members Keilor Cemetery actions requiring EMG authorisation who actively collaborate with Holy Angels Mausoleum (stage 4) and any other issue requiring management to: EMG attention identify and implement workplace Northern Memorial Park extension. assist in ensuring that all tasks improvements for the mutual benefit undertaken by employees are of all GMCT employees; performed in a manner consistent review policies and procedures that with GMCT OH&S policy and with affect the workforce and provide legislative requirements constructive feedback; (OHS Act 2004) contribute workforce knowledge assist in the distribution of to support collective agreement information relating to the safety, negotiations as may be required; rehabilitation and wellbeing of team members ensure GMCT is an inclusive and collaborative workplace. reduce the overall number of accidents and dangerous The function of the committee is to occurrences involving GMCT provide a forum for discussing matters employees, contractors, members of interest and/or concern to staff, of the public and/or vehicles including workplace improvements and efficiency measures, innovation and development opportunities, internal and external communications, and health and wellbeing.
Annual Report 2015-2016 37 COMPLIANCE AND DISCLOSURES
FREEDOM OF INFORMATION GMCT is committed to the aims GMCT supports and complies with the ACT 1982 and objectives of the Protected Department of Health code of practice Disclosure Act 2012. GMCT does for the external supply of merchandise The Freedom of Information Act 1982 not tolerate improper conduct by to and within cemeteries. gives the public the right to access its employees, stakeholders and GMCT is committed to competitive information contained in documents clients, nor the taking of reprisals neutrality principles ensuring fair and held by GMCT. Freedom of information against those who come forward open competition. Many non-core (FOI) requests must be made in writing. to disclose such conduct. activities have been outsourced, such as A request can be submitted GMCT recognises the value of security, cleaning, design, printing and using the website FOI Online transparency and accountability in construction. GMCT had no competitive (www.foi.vic.gov.au) or by sending its administrative and management neutrality complaints during the an application to: practices and supports the making reporting period. of disclosures that reveal corrupt FOI Officer conduct, conduct involving substantial GMCT PRIVACY AND DATA mismanagement of public resources PO Box 42, Fawkner, Victoria 3060 PROTECTION ACT 2014 (VIC) or conduct involving substantial risk 1300 022 298 to public health and safety or the GMCT complies with the Privacy and environment. Data Protection Act 2014 (Vic). The [email protected] information privacy principles within www.gmct.com.au GMCT was not required to take the Act establish standards for the any steps to protect people who use of personal information. GMCT Four FOI requests were received in the make protected disclosures to received no complaints in relation to reporting period. the Interdependent Broad-based breaches of privacy in 2015-16. Anti-corruption Commission (IBAC). For enquiries, or to request a copy of PROTECTED DISCLOSURE GMCT’s Privacy Policy, contact: ACT 2012 BUILDING ACT 1993 Privacy Officer The Protected Disclosure Act 2012 GMCT is compliant with the provisions GMCT enables people to make disclosures of the Building Act 1993, which PO Box 42, Fawkner, Victoria 3060 about improper conduct by public encompasses the Building Code of officers and public bodies. The Act aims Australia and Standards for Publicly 1300 022 298 to ensure openness and accountability Owned Buildings November 1994. [email protected] by encouraging people to make disclosures and protecting them All works associated with GMCT www.gmct.com.au when they do. buildings are managed in accordance with the Building Act 1993, including obtaining all permits as required. VICTORIAN INDUSTRY PARTICIPATION POLICY
NATIONAL COMPETITION GMCT is required to comply with the Victorian Industry Participation POLICY AND COMPETITIVE Policy (VIPP). NEUTRALITY POLICY VICTORIA One contract was awarded during the reporting period to which the Competitive neutrality seeks to VIPP applied. enable fair competition between government and private sector A VIPP plan was requested of the businesses. These policies and contractor however this was not their application in the cemetery provided. This was GMCT’s first contract environment were considered that met the VIPP requirements and where appropriate during this our procurement procedures have reporting period. subsequently been amended.
38 Part 3: Our Organisation PROCUREMENT ADDITIONAL INFORMATION details of overseas visits undertaken including a summary GMCT’s tendering and procurement In compliance with the requirements of the objectives and outcomes policy and procedures are aligned of FRD 22G Standard Disclosures in the of each visit with the Victorian Government report of operations, details in respect Purchasing Board (VGPB) polices of the items listed below have been details of major promotional, public and guidelines. GMCT’s procurement retained by GMCT and are available relations and marketing activities objectives reflect best practice and to the relevant ministers, members of undertaken by GMCT to develop focus on achieving value for money, parliament and the public on request community awareness of GMCT and fitness for use and management of (subject to freedom of information its services, details of assessments probity. These objectives help give the requirements, if applicable): and measures undertaken to improve the occupational health procurement process its integrity and a statement of private interest has and safety of employees, a general are the basis for achieving optimal been completed procurement results. statement on industrial relations details of shares held by senior officers within GMCT and details of time lost as nominee or held beneficially through industrial accidents and RISK REGISTER disputes, which is not otherwise details of publications produced by detailed in the report of operations GMCT has defined its risk appetite the department about the activities of statements which are used across GMCT and where they can be obtained a list of major committees the organisation in decision making. sponsored by GMCT, the purposes GMCT’s risk register provides a formal details of changes in prices, fees, of each committee and the framework for the organisation and its charges, rates and levies charged extent to which the purposes leadership team to identify, monitor, by GMCT have been achieved manage and mitigate risk across details of any major external reviews details of all consultancies and a range of strategic and ‘business carried out on GMCT as usual’ areas. The risk register is contractors including consultants/ reviewed and updated on a quarterly details of major research and contractors engaged, services basis and outlines risk rating, impact, development activities undertaken by provided and expenditure treatments and controls. GMCT that are not otherwise covered committed for each engagement. either in the report of operations or in a document that contains the financial statements and report of operations
Annual Report 2015-2016 39 OCCUPATIONAL HEALTH AND SAFETY
Health, safety and environmental wellbeing are core values of GMCT as the organisation strives for zero harm.
GMCT continues its commitment to Total recordable injuries (TRI) of 22 This reflects a decreasing trend – health, safety and wellbeing across its was just over our 2015-16 target a positive outcome over a three-year three regions. In 2015-16 there was of 20, 16 of which were medical period - and is indicative of a maturing a decrease in total injuries reported treatment incidents (MTI). and empowered health and safety (total recordable injuries) from 28 culture across the organisation. to 22 and this reflects a 21 per cent GMCT has a proactive return to Hazard and incident per 100 staff improvement on the previous year. work management program which ensures injured workers return in are 172.09 Lost time injury (LTI) has increased an appropriate timeframe. Number of lost time standard claims from 4 to 6 incidents, which is a per 100 = 2.32 slight increase on 2014-15 but an In summary, the frequency rate improvement on 2013-14. has a direct correlation between No fatalities or serious incidents injuries and people-hours worked. have occurred.
OCCUPATIONAL HEALTH AND SAFETY STATISTICS
120
100
80
60
40
20
0 2013-2014 2014-2015 2015-2016
Total recordable injury (TRI) incidents Lost time injury (LTI) incidents Total recordable injury frequency rate (TRIFR) Total lost time injury frequency rate (LTIFR) Total recordable injury frequency rate (TRIFR) target
CATEGORY 2015-2016 2014-2015 2013-2014 2012-2013 2011-2012
Total no. of incidents 370 296 218 199 159 Incidents Lost Time (Days) 240 144 475 441 626
No. of standard claims 6 1 7 11 13
Workcover No. of minor claims 2 3 6 5 2
Average claim cost $25,650 $24,905 $40,846 $42,688 -
40 Part 3: Our Organisation COMMITMENT TO SUSTAINABILITY
Sustainability is one of GMCT’s core values — not only business and financial sustainability, but environmental.
As guardians of more than 600 The proposed extension of Northern STAFF INITIATIVES hectares of public parkland, and Memorial Park includes water sensitive A composting program was with significant water, energy and urban design and areas that cannot be established in staff kitchens. waste responsibilities, we understand used for interment due to issues such as This supports on-site worm community and government flooding will be revegetated. Rain water farms with the worms used in expectations regarding how we will be captured on site for irrigation. GMCT’s gardens manage and maintain our cemeteries, assets and resources. CONSULTANCIES AND An aluminium can recycling program In 2015-16, we continued to explore PROCUREMENT supports fundraising for a number opportunities to improve our of charities Sustainability practices have been environment and business practices formalised as an integral criteria Led by our information and implemented a number of against which all requests for quotation communications technology team, initiatives. (RFQ) and requests for tender (RFT) are a mobile phone recycling program assessed. In addition, the RFQ and RFT is collecting old mobile phones IMPROVING ENERGY USE processes are now electronic, making from staff. These are donated to most of our procurement process Zoo Victoria’s ‘They’re Calling on As part of a move to bring GMCT in paperless. You’ campaign. The campaign aims line with best practice sustainability to reduce electronic waste while at standards, we commenced installation the same time, funding the work of LED lighting at GMCT’s offices at STAFF ENGAGEMENT of Gorilla Doctors in Africa and the Lilydale, Fawkner and Altona. This is In 2015-16, GMCT established a zoo’s own conservation programs. scheduled for completion in 2016-17. ‘Green Team’ – a dedicated, voluntary www.zoo.org.au In addition, we commenced the staff-based initiative to support the The information communications installation of solar panels on Fawkner investigation, development and technology team also recycles Memorial Park’s administration implementation of green activities e-waste. We have a recycling building. that support broader strategic goals, program in place for all printer including operational excellence, staff cartridges and all ICT hardware that engagement, business efficiencies, is disposed of is recycled through PLANNING AND sector leadership, and organisational various organisations INFRASTRUCTURE viability and sustainability. GMCT commenced monitoring paper Sustainability considerations have The team’s aim is to plan and implement consumption from photocopying been incorporated into GMCT’s practical sustainability improvements as part of a strategy to become a masterplans and detail designs. across the organisation, raise paperless office and will implement awareness of sustainability issues initiatives based on an in-depth and opportunities, and facilitate staff WATER USAGE understanding of business needs, engagement in sustainability initiatives. consumption and digital and other A water supply options study was alternatives undertaken to investigate the feasibility GMCT’s environmental sustainability policy outlines our approach to of alternative water supplies (such as GMCT recognises outstanding staff environmental issues including waste local creeks, dams, tanks and recycled contributions to sustainability and water management and acts as a water) for operational activities where measures with an annual ‘Star reference for decision making. non-potable water can be utilised Award’ for sustainability. (such as vehicle washing and In 2015-16, GMCT commenced irrigation). The study included a comprehensive review of the assessing alternative options against organisation’s environmental a triple bottom line approach and sustainability plan resulting in an a number of options subsequently updated plan that will guide future proceeded to the preliminary initiatives. Members of the ‘Green design phase. Team’ and other staff were interviewed as part of the review, reflecting GMCT’s commitment to inclusive leadership.
Annual Report 2015-2016 41 OUR TEAM WORKFORCE
The Greater Metropolitan RESPECTFUL AND Our workforce includes both indoor EXPERIENCED TEAM and outdoor staff. Indoor staff Cemeteries Trust provide services relating to client exists to provide Each year, our caring staff assist services, administration, human more than 12,000 families to plan resources, finance, planning and relevant and responsive and prepare for funeral, cremation, information communications burial, cremation and interment and memorial services. technology. memorialisation services Across our 19 cemeteries we provide Outdoor staff are responsible for a peaceful resting place for loved ones services within burial operations, to Melbourne’s diverse who have died and a meaningful cremations, chapel services, communities. place where the living can remember, horticulture and repairs and celebrate and cherish family members maintenance. or friends. We are committed to ensuring all For the year 2015-16 there has those entrusted to our care are been stablisation of FTE employees. treated with dignity and compassion, Our workforce by numbers Over the past 12 months GMCT has today and in perpetuity. At 30 June 2016, GMCT had a total of seen a number of staff move toward retirement as well as a small shift Our professional and sensitive 206 staff with a full-time equivalent (FTE) of 194.8. in employment types and gender services are conducted in accordance demographics. with relevant industry and legislative requirements, providing our communities and business partners MALE/ with peace of mind and a positive EMPLOYEES EMPLOYEES FEMALE % experience. 2016 2015 2016 We are committed to fostering a TOTAL 206* 206 workplace that puts our people first.
We invest in, celebrate and collaborate Male 138 141 66.99% with our staff, providing opportunities for employees to contribute, learn and Female 68 65 30.01% develop through formal and informal programs, participation in a range of committees and by providing avenues 2016 2015 for feedback on organisational FTE FTE activities and strategies. TOTAL 195* 199 Performance, innovation and collaboration combine to create an Part-time 14 12 engaged workforce where employees and the community benefit. Full-time 181 186
Casual 0 1
* This figure is based on active employees – and excludes current vacancies – as at the end of the financial reporting period, 30 June 2015 and 30 June 2016 respectively.
NO. OF EMPLOYEES 2016 2015
65 and over 7 11
55-64 47 44
45-54 75 82
35-44 39 36
25-34 32 29
Under 25 6 4
42 Part 3: Our Organisation EMPLOYMENT AND The table below outlines the type of training provided and CONDUCT PRINCIPLES hours attended. GMCT is committed to ensuring its employment practices and conduct TRAINING TOTAL HOURS are free of any direct or indirect discrimination on the basis of sex, OH&S 775 race, age, disability and all other attributes that apply in Victoria under Customer Services 138 federal and state laws. Recruitment Leadership & Development 936 is conducted according to merit based on relative ability, knowledge, Plant & Equipment 86 skills and organisational fit. The appointment process is equitable, IT (Mircosoft Office suite) 572 fair and based on legislative TOTAL 2507 requirements and GMCT policies.
Learning and development GMCT is committed to providing a comprehensive learning and development program to support our diverse workforce. This includes accredited training, competency based learning and training, and workshops. These programs are designed to empower the workforce with specific and general knowledge to ensure service quality and health and safety is at the highest level and in turn is consistent across all three GMCT regions.
A total of 2507 training hours were undertaken by GMCT staff in 2015-16 (face-to-face and e-learning).
GMCT invested in professional development and compliance training for staff during the year. This included grave safe training, customer service training, business continuity, traffic management awareness, emergency warden training, first aid and SunSmart education.
Annual Report 2015-2016 43 AWARDS AND RECOGNITION
Our people make a tangible and significant contribution to our reputation in the cemeteries sector and within local communities. Every day, GMCT staff provide high quality services across burial operations, customer care, administration and grounds maintenance as well as both formal and informal engagement with families, industry, and visitors.
We understand that an engaged, collaborative and skilled workforce is fundamental to our success.
At GMCT, our people are our most valuable resource, renowned for their outstanding commitment to serving our families with compassion, integrity STAR AWARD – INTEGRITY STAR AWARD – SUSTAINABILITY and respect. Recognising this, we are Jeanette Vella Carlos Guanchez committed to investing in the ongoing Jay Onciarich (not shown) development and support of our team in order to nurture a workforce culture that is aligned with our values.
STAR AWARD – LEADERSHIP Sherrie O’Loughlin EMPLOYEE RECOGNITION – AWARDS AND HONOURS The Star Awards recognise exceptional conduct by individual staff members. STAR AWARD – RESPECT Award recipients are nominated by Lauren Whitehead their peers for outstanding display Adam Moscatiello of the GMCT values of compassion, respect, sustainability and integrity.
In addition, the OH&S award highlights GMCT’s commitment to occupational health and safety, as part of our ‘Work Safe, Grave Safe, Home Safe’ program. This award is presented to one or more employees who have demonstrated STAR AWARD – COMPASSION outstanding commitment to the compliance, development and/or Geoffrey Foreman promotion of best practice standards in workplace health and safety.
The CEO Award for Excellence is CEO AWARD FOR EXCELLENCE presented to an employee for Michael Murphy – outstanding commitment to the CEO award overall values of the organisation and/or achieving an outstanding Sue Best and Steve McDonell – result within their business unit. special mention STAR AWARD – OH&S Helen Linehan
44 Part 3: Our Organisation SERVICE MILESTONES – LONG SERVICE AWARDS The following staff were acknowledged for significant years of service to the organisation:
FIVE YEARS SERVICE AWARD Pania Ryan Patty Kalogeropoulos
30 YEARS SERVICE AWARD Mark Christie Valerie Hansen Donald Brown
20 YEARS SERVICE AWARD Peter Berry Peter Manning Mark Cahill Helen Linehan 15 YEARS SERVICE AWARD Chris Konopka 35 YEARS SERVICE AWARD Alan Jones Barry Dawson Peter Dourmisis Stephen Mallon Glenn Ilsley Brian Edmonds (not shown)
10 YEARS SERVICE AWARD Andrew Witt Ray Taylor Jazz Butler Karen Cotter Martin McVeigh
Annual Report 2015-2016 45 CONSULTANCIES
During the 12 months ended 30 June 2016, GMCT engaged a total of 31 consultants where the total fees payable to the consultants were less then $10,000, with total expenditure of $91,454 (Ex GST). Furthermore, the following table outlines where expenditure on a consultant exceeded $10,000.
FUTURE PURPOSE OF START END TOTAL EXPENDITURE CONSULTANT CONSULTANCY DATE DATE APPROVED EXPENDITURE COMMITMENT
Bent Architecture Landscape Architecture Oct-15 Dec-15 25,675 25,675 - Pty Ltd
Bosco Jonson Land Survey Oct-15 May-16 35,295 35,295 - Pty Ltd
Case Mealin & Consulting for Signage Jul-15 Jun-16 11,765 11,765 - Associates and Wayfinding
Conservation Context Pty Ltd Apr-16 Feb-17 103,844 21,919 81,925 Management Plan
Core Consulting Project Management Feb-16 May-16 29,000 29,000 - Group Pty Ltd Office
Currie & Brown Office Accommodation Feb-16 May-16 26,663 26,663 - (Australia) Pty Ltd Consulting
Darms Property Land Acquisition Oct-15 Mar-15 69,382 69,382 -
Deloitte Touche Procurement Consultancy Nov-15 Aug-16 59,970 50,212 9,758 Tohmatsu
Structural and Civil Ghd Pty Ltd Sep-15 Oct-15 33,970 33,970 - Engineering Services
Customer Call Centre Greg Bailey Consultancy and Customer Jul-15 Dec-16 173,400 39,100 134,300 Consulting Service Optimisation
Harmer Architecture Services Oct-15 May-16 47,300 47,300 - Architecture
Conservation Heritage Alliance Oct-15 Jan-16 27,459 27,459 - Management Plans
Hill PDA Pty Ltd Land Strategy July-15 Feb-16 89,632 89,632 -
Hjp Civil Consulting Engineering Services Feb-16 Mar-16 10,540 10,540 - Pty Ltd
Iconinc Holdings Brand Strategy Sep-15 Jun-16 40,750 40,750 - Pty Ltd
Inframanagement Engineering Services Sep-15 May-16 23,290 23,290 - Pty Ltd
ISEC Pty Ltd Security Strategy Feb-16 Jun-16 50,956 50,956 -
Kathryn Arndt Brand Strategy Jul-15 Aug-15 10,185 10,185 - Consulting
46 Part 3: Our Organisation FUTURE PURPOSE OF START END TOTAL EXPENDITURE CONSULTANT CONSULTANCY DATE DATE APPROVED EXPENDITURE COMMITMENT
Lambert Rehbein Civil and Landscape Aug-15 Apr-16 98,499 98,499 - Vic Pty Ltd design
O'Connor Engineering Services Aug-15 Nov-15 14,800 14,800 - Associates Pty Ltd
Engineering Specialist PBJ & Associates July-15 Jun-16 82,836 82,836 - Services
Price Waterhouse Review of Investment Dec-15 Dec-15 30,899 30,899 - Cooper Advisor
Strategic Plan The Nous Group Development and Burial Oct-15 Jan-15 98,686 98,686 - Operations Programming
Urban Initiatives Landscape Architecture Oct-15 Mar-16 111,395 111,395 -
Vines Planning Land Use Planning Property and Jul-15 Jun-16 88,361 88,361 - Services Development
Wallbridge & Water Supply Options Oct-15 Apr-16 45,024 45,024 - Gilbert Engineers Study
TOTAL 1,439,576 1,213,593 225,983
Details of Information and Communication Technology (ICT) expenditure
The total ICT expenditure incurred during 2015-16 is $3.65M (excluding GST) with the details shown below.
NON BUSINESS AS USUAL (NON BAU) ICT EXPENDITURE BUSINESS AS USUAL (BAU) (TOTAL = OPERATIONAL OPERATIONAL CAPITAL ICT EXPENDITURE EXPENDITURE AND EXPENDITURE EXPENDITURE (TOTAL) CAPITAL EXPENDITURE) (OPEX) CAPEX $000 $000 $000 $000
2,019 1,635 66 1,569
During 2015-16, GMCT implemented a number of new ICT systems including a cemetery management and finance system and a geographic information system and the implementation of the electronic data records management system is well underway.
Annual Report 2015-2016 47 DIRECTOR FINANCE AND BUSINESS MESSAGE
GMCT’s focus on financial The increase in staff-related This investment program, combined responsibility ensures we remain expenses reflects a commitment with reinvestment of operating financially sustainable, enabling to our employees and represents surplus, ensured a strong balance the organisation to meet current increased workforce numbers sheet is maintained with total assets and future strategic objectives, in previous years that stabilised in of $345M, a growth of $18M and total statutory obligations and to continue 2015-16. Maintenance and operating liabilities maintained at a consistent to contribute towards the perpetual costs have reduced as we transition level. The asset base is dominated by maintenance of our cemeteries. from a reactive to proactive asset cash and investment assets enabling management regime. Consistent continuous growth, capital investment Supported by a long-term financial with 2014-15, we will also contribute into the future as well as funding plan, GMCT’s financial position $1.8M to the state government in perpetual maintenance obligations. continues to remain strong, with cemetery levy this financial year. an operating surplus in excess of GMCT’s perpetual maintenance $19M for the second successive year. Investment income of $12.6M is reserve increased to $144M, with an And, in a year of significant capital 22 per cent below 2014-15, primarily $18M contribution this financial year. investment our net assets have as a result of the volatility in continued to increase to $345M. investment markets during the year but well ahead of budget expectations. GMCT’s investment strategy takes a OPERATING STATEMENT long term view and we have a cautious Revenue of $45.1M from cemetery investment risk appetite resulting operations is within 1.5 per cent of in a well diversified portfolio to budget and would have exceeded manage risk. budget had the deposits received BART CLINGIN in advance of $2.2M in relation Director Finance and Business to mausoleum construction been BALANCE SHEET realised. The 2015-16 revenue is We continue to reinvest in our The Greater Metropolitan 4 per cent greater than 2014-15. cemeteries and to plan for future Cemeteries Trust community need through a range Fawkner, Victoria This is a result of increased of funded projects, including 10 August 2016 income from grave stock, driven grave and mausoleum inventory, by the construction of inventory at land acquisitions and ICT system cemeteries where there was significant development in line with our year community demand, as well as positive of innovation and productivity. growth in interment and cremation income from increased volumes. The largest capital investment program in GMCT history resulted Availability of mausoleum inventory in $6.4M invested in grave and was significantly improved with the mausoleum inventory to address opening of the Werribee Mausoleum community need, $1.2M in ICT extension and this contributed systems to improve key business substantially to mausoleum income. processes and customer service as Total expenses of $29.9M are well as $15.6M invested in property, 5 per cent less than 2014-15. plant and equipment to ensure we Excluding investment gains, losses are ‘future ready’. and fees, our overall expenses of $32.4M is 1 per cent less than budget and equivalent to 2014-15.
48 Part 3: Our Organisation FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
Annual Report 2015-2016 49 THE GREATER METROPOLITAN CEMETERIES TRUST
TRUST MEMBER’S, ACCOUNTABLE OFFICER’S AND CHIEF FINANCE AND ACCOUNTING OFFICER’S DECLARATION We certify that the attached financial statements for The Greater Metropolitan Cemeteries Trust have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions (FRDs), Australian Accounting Standards, and 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 notes to the financial statements, presents fairly the financial transactions during the year ended 30 June 2016 and the financial position of The Greater Metropolitan Cemeteries Trust as at 30 June 2016.
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 this day.
THE BOARD OF GMCT
GEOFF MABBETT JACQUI WEATHERILL BART CLINGIN Trust Chair Accountable Officer Chief Finance and Chief Executive Officer Accounting Officer The Greater Metropolitan The Greater Metropolitan The Greater Metropolitan Cemeteries Trust Cemeteries Trust Cemeteries Trust Fawkner, Victoria Fawkner, Victoria Fawkner, Victoria
10 August 2016 10 August 2016 10 August 2016
50 Financial Statements Annual Report 2015-2016 51 52 Financial Statements Annual Report 2015-2016 53 COMPREHENSIVE OPERATING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
2016 2015 NOTE $ 000 $ 000
Income from transactions
Cemetery operations income 2(a) 45,107 43,241
Less cost of goods sold 3(a) (6,933) (6,534)
38,174 36,707
Investment income 2(b) 12,670 16,437
TOTAL INCOME FROM TRANSACTIONS 50,844 53,144
Expenses from transactions
Employee expenses 18,037 16,648
Depreciation and amortisation 3(c) 3,098 2,545
Maintenance and operations costs 5,232 7,481
Administration costs 2,073 1,782
Impairment of available for sale financial assets 16(d) 1,616 2,124
Realised gain on disposal of available for sale financial assets 16(d) (3,536) (2,328)
Other expenses 3(b) 3,340 3,371
Audit fees – Victorian Auditor General’s office 4 92 90
TOTAL EXPENSES FROM TRANSACTIONS 29,952 31,713
Operating result for the year before cemetery levy 20,892 21,431
Cemetery levy 1(c)(v) 1,795 1,725
Operating result for the year 19,097 19,706
Other comprehensive income
Items that may be reclassified subsequently to the net result
Net fair value gain/(loss) from available for sale investments 16(d) (1,001) 1,014
(1,001) 1,014
COMPREHENSIVE RESULT FOR THE YEAR 18,096 20,720
This statement should be read in conjunction with the accompanying notes.
54 Financial Statements BALANCE SHEET AS AT 30 JUNE 2016
2016 2015 NOTE $ 000 $ 000
Current Assets Cash and cash equivalents 5 6,708 4,959 Receivables 6 3,612 3,122 Inventories 8 26,595 25,295 Available for sale investments 7 40,000 47,000 Prepayments 10 136 95 Total current assets 77,051 80,471 Non-current assets Inventories 8 15,008 15,093 Available for sale investments 7 205,214 196,773 Property, plant and equipment 9 70,419 57,883 Intangible assets 11 2,212 1,259 Total non-current assets 292,853 271,008 TOTAL ASSETS 369,904 351,479 Current Liabilities Payables 12 4,298 6,044 Unearned income 13 15,739 14,012 Provision for loss on onerous contracts 14 672 612 Employee benefits and related on-cost provision 15 3,364 3,164 Total Current Liabilities 24,073 23,832 Non-current liabilities Employee benefits and related on-cost provision 15 549 461 Total non-current liabilities 549 461 TOTAL LIABILITIES 24,622 24,293 NET ASSETS 345,282 327,186 Equity Contributed capital 16 148,872 148,872 Accumulated surplus / (deficit) 16 42,414 42,100 Perpetual maintenance reserve 16 144,427 125,644 Available for sale investment revaluation surplus reserve 16 6,341 7,342 Physical asset revaluation surplus reserve 16 3,228 3,228 TOTAL EQUITY 345,282 327,186 Commitments 20 Contingent assets and contingent liabilities 21
This statement should be read in conjunction with the accompanying notes.
Annual Report 2015-2016 55 STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
AVAILABLE FOR SALE PHYSICAL ACCUMULATED PERPETUAL INVESTMENT ASSET CONTRIBUTED SURPLUS / MAINTENANCE REVALUATION REVALUATION CAPITAL (DEFICIT) RESERVE SURPLUS SURPLUS TOTAL NOTE $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
BALANCE AT 148,872 42,100 105,938 6,328 3,228 306,466 30 JUNE 2014
Operating result - 19,706 - - - 19,706 for the year
Other comprehensive 16(d) - - - 1,014 - 1,014 income for the year
Transfer to/(from) accumulated - (19,706) 19,706 - - - surplus/(deficit)
BALANCE AT 148,872 42,100 125,644 7,342 3,228 327,186 30 JUNE 2015
Operating result - 19,097 - - - 19,097 for the year
Other comprehensive 16(d) - - - (1,001) - (1,001) income for the year
Transfer to/(from) accumulated - (18,783) 18,783 - - - surplus/(deficit)
BALANCE AT 148,872 42,414 144,427 6,341 3,228 345,282 30 JUNE 2016
This statement should be read in conjunction with the accompanying notes.
56 Financial Statements CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
2016 2015 NOTE $ 000 $ 000
Cash flows from operating activities
Receipts from customers 50,145 47,644
Payments to suppliers and employees (43,933) (39,394)
Investment income receipts 11,399 15,049
Goods and services tax received/(paid) 17 189
NET CASH INFLOW FROM OPERATING ACTIVITIES 17 17,628 23,488
Cash flows from investing activities
Payments for property, plant and equipment (15,650) (5,658)
Proceeds from disposal of property, plant and equipment 2(c) 291 353
Proceeds from available for sale investments 109,851 76,364
Payments for available for sale investments (110,371) (121,396)
NET CASH INFLOW / (OUTFLOW) FROM INVESTING ACTIVITIES (15,879) (50,337)
Cash flows from financing activities
NET CASH INFLOW FROM FINANCING ACTIVITIES - -
Net increase / (decrease) in cash and cash equivalents 1,749 (26,849)
Cash and cash equivalents at beginning of the year 4,959 31,808
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 5 6,708 4,959
This statement should be read in conjunction with the accompanying notes.
Annual Report 2015-2016 57 NOTES TO THE FINANCIAL STATEMENTS
TABLE OF CONTENTS
NOTE REF. DESCRIPTION PAGE REFERENCE.
1 Summary of significant accounting policies 59
2 Income from transactions 74
3 Expenses 75
4 Remuneration of auditors 75
Assets
5 Cash and cash equivalents 75
6 Receivables 76
7 Available for sale investments 76
8 Inventories 77
9 Property, plant and equipment 78
10 Prepayments 82
11 Intangible assets 82
Liabilities
12 Payables 83
13 Unearned income 83
14 Provision for loss on onerous contracts 83
15 Employee benefits and related on-cost provisions 84
16 Equity 85
17 Cash flow information 87
18 Superannuation 88
19 Financial instruments 88
20 Commitments 98
21 Contingent assets and contingent liabilities 99
22 Perpetual maintenance 99
23 Responsible persons disclosure 100
23 (a) Remuneration of responsible persons 101
23 (b) Disclosures to remuneration 102
23 (c) Remuneration to other personnel 102
24 Related party transactions 103
25 Ex-gratia expenses 103
26 Events occurring after the reporting period 103
58 Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) INTRODUCTION Under the accrual basis, items are All assets and liabilities for which fair recognised as assets, liabilities, value is measured or disclosed in the (i) Statement of compliance equity, income or expenses when they financial statements are categorised satisfy the definitions and recognition within the fair value hierarchy, These financial statements of The criteria for those items; and they are described as follows, based on the Greater Metropolitan Cemeteries Trust recognised in the reporting period to lowest level input that is significant (GMCT) are general purpose financial which they relate, regardless of when to the fair value measurement as statements which have been prepared cash is received or paid. a whole: in accordance with the Financial Management Act 1994 and applicable The financial statements are prepared Level 1 – Quoted (unadjusted) Australian Accounting Standards (AAS), in accordance with the historical cost market prices in active markets which includes interpretations issued convention, except for the revaluation for identical assets or liabilities by the Australian Accounting Standards of certain non-financial assets and that a cemetery can access at Board (AASB). They are presented financial instruments, as noted. measurement date; in a manner consistent with the Particular exceptions to the historical requirements of AASB 101 Presentation cost convention include: Level 2 – Inputs other than quoted of Financial Statements. prices included within Level 1 Non-current physical assets which, that are observable for the asset The financial statements also comply subsequent to acquisition, are or liability, either directly or with relevant Financial Reporting measured at a re-valued amount indirectly; and Directions (FRD) and Standing being their fair value at the date Directions (SD) authorised by the of valuation less any subsequent Level 3 – Unobservable inputs for Minister for Finance. In complying accumulated depreciation, and the asset or liability. with AAS, GMCT has, where relevant, are re-assessed with sufficient For the purpose of fair value applied those paragraphs applicable regularity to ensure that the carrying disclosures, GMCT has determined to not-for-profit entities. amounts do not materially differ classes of assets and liabilities on from their fair values; and The annual financial statements the basis of the nature, characteristics were authorised for issue by GMCT Available-for-sale investments and risks of the asset or liability and on 10 August 2016. which are measured at fair value the level of the fair value hierarchy with movements reflected in equity as explained above. until the asset is derecognised (ii) Basis of accounting In addition, GMCT determines whether or impaired. preparation and transfers have occurred between measurement Judgements, estimates and levels in the hierarchy by re-assessing Accounting policies are selected assumptions are required to be made categorisation (based on the lowest and applied in a manner which about the carrying values of assets level input that is significant to the fair ensures that the resulting financial and liabilities that are not readily value measurement as a whole) at the information satisfies the concepts apparent from other sources. end of each reporting period. of relevance and reliability, thereby The estimates and associated The Valuer-General Victoria (VGV) ensuring that the substance of the assumptions are based on professional is GMCT’s independent valuation underlying transactions or other judgements derived from historical agency. GMCT, in conjunction with events is reported. experience and various other factors VGV, monitors the changes in the fair that are believed to be reasonable The accounting policies set out value of certain classes of assets and under the circumstances. Actual results below have been applied in preparing liabilities through relevant data sources may differ from these estimates. the financial statements for the to determine whether a revaluation year ended 30 June 2016, and the Consistent with AASB 13 Fair Value is required. comparative information presented Measurement, GMCT determines The estimates and underlying in these financial statements are for the policies and procedures for assumptions are reviewed on an the 12 months ended 30 June 2015. recurring fair value measurements ongoing basis. Revisions to accounting such as property, plant and equipment The going concern basis was used to estimates are recognised in the period and financial instruments, and for prepare the financial statements. in which the estimate is revised if the non-recurring fair value measurements revision affects only that period; or in The financial statements, except such as non-financial physical assets the period of the revision, and future for the cash flow information, have held for sale, in accordance with the periods if the revision affects both been prepared using the accrual requirements of AASB 13 and the current and future periods. basis of accounting. relevant FRDs.
Annual Report 2015-2016 59 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Judgements made by management It also shows other comprehensive Functional and presentation in the application of AAS’s that have income included in the comprehensive currency significant effect on the financial result for the year. These financial statements are statements and estimates, with a presented in Australian dollars, Other comprehensive income risk of material adjustments in the the functional and presentation subsequent reporting period, are Other comprehensive income measures currency of The GMCT. disclosed throughout the notes to the change in volume or value of assets the financial statements. or liabilities that do not result from transactions. Net gain/ (loss) on (B) INCOME RECOGNITION (iii) Reporting entity non-financial assets and liabilities Income is recognised in accordance includes realised and unrealised The financial statements include all with AASB 118 Revenue and is gains and losses related to: the controlled activities of GMCT. recognised to the extent that it is GMCT was established under the probable that the economic benefits Revaluations of financial Cemeteries and Crematoria Act 2003 will flow to GMCT and the income instrument at fair value and its operations are governed by can be reliably measured. that Act. Refer to Note 1 (d) Financial Instruments. (i) Cemetery operations The financial statements of GMCT income include the operations of Altona Balance sheet Memorial Park, Anderson’s Creek Fees received for the rights of Assets and liabilities are categorised Cemetery, Burwood Cemetery, interment for graves, cremation either as current or non-current, Coburg Pine Ridge Cemetery, memorials and mausoleum crypts non-current being mainly those assets Emerald Cemetery, Fawkner are recognised as revenue at the or liabilities expected to be recovered/ Crematorium and Memorial Park, time of purchase except for the settled more than 12 months after Healesville Cemetery, Keilor Cemetery, memorialisation portion which is reporting period. Lilydale Lawn Cemetery, Lilydale recognised at the time of interment. Memorial Park, Northcote Cemetery, Statement of changes in equity Fees received for interment, cremation Northern Memorial Park, Preston and certain memorialisation products Cemetery, Templestowe Cemetery, The Statement of Changes in Equity such as memorial plaques are Truganina Cemetery, Werribee presents reconciliations of each recognised as revenue in the period Cemetery, Williamstown Cemetery non-owner and owner equity opening that the goods or services are provided. and Yarra Glen Cemetery. balance at the beginning of the reporting period to the closing balance Fees received in advance of service The principal address of GMCT is: at the end of the reporting period. provision are recorded as unearned It also shows separately changes 1187 Sydney Road income in accordance with Note 1(f) (i). due to amounts recognised in the Fawkner, Victoria 3060 comprehensive result and amounts Amounts disclosed as revenue are, A description of the nature of GMCT’s recognised in other comprehensive where applicable, net of returns, operations and its principal activities income related to other non owner allowances and duties and taxes. is included in the report of operations, changes in equity. which does not form part of these (ii) Dividend revenue financial statements. Cash flow statement Dividend revenue is recognised Cash flows are classified according when the right to receive payment to whether or not they arise from (iv) Scope and presentation is established. Dividends represent operating activities, investing of financial statements the income arising from GMCT’s activities, or financing activities. investments in financial assets. Comprehensive Operating This classification is consistent Statement with the requirements of AASB 107 (iii) Interest revenue The Comprehensive Operating Statement of Cash Flows. Statement presents the operating Interest revenue is recognised on a result of GMCT. It presents significant Comparative information time proportionate basis that takes categories of income and expenses Where necessary the previous year’s into account the effective yield of the included in the operating result to figures have been reclassified to financial asset which allocates interest enhance the understanding of the facilitate comparisons. There is no over the relevant period. financial performance of GMCT. change to this year’s comparatives.
60 Notes to the Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(iv) Sale of available for (C) EXPENSE RECOGNITION In relation to defined benefit sale investments superannuation plans, the amount Expenses are recognised as they expensed represents the contributions The gain or loss on the sale of are incurred and are reported in the made by GMCT to the superannuation investments is recognised when the financial year to which they relate. plans in respect of the services of investment is realised. Movements current GMCT staff. Superannuation in the fair value of available for (i) Cost of goods sold contributions are made based on the sale investments are recognised in rules of each plan and are determined accordance with Note 1(e) (v). Costs of goods sold are recognised on actuarial advice. when the sale of an item or right of interment occurs by transferring the (v) Resources provided and cost or value of the item/s or value of (iii) Depreciation received free of charge or land related to the right of interment Assets with a cost in excess of $3,000 for nominal consideration from inventories to operating expenses. (2015: $3,000) are capitalised and Resources provided or received free of See also Note 1(e) (ix). depreciation has been provided on charge or for nominal consideration are depreciable assets so as to allocate recognised at their fair value when the (ii) Employee expenses their cost or valuation over their transferee obtains control over them, estimated remaining useful lives. irrespective of whether restrictions or Employee expenses include: conditions are imposed over the use Depreciation is calculated on a Wages and salaries of the contributions, unless received straight-line basis, at rates that from another cemetery or agency as Annual leave allocate the asset’s value, less any a consequence of a restructuring of estimated residual value, over its Sick leave administrative arrangements. estimated remaining useful life. Long service leave In the latter case, such transfer Estimates of the remaining useful is recognised at carrying value. Superannuation which is reported lives and the depreciation method Contributions in the form of services differently depending upon whether for all assets are reviewed at least are only recognised when a fair value employees are members of defined annually and adjustments are made can be determined reliably and the benefit or defined contribution plans. where appropriate. services would have been purchased In relation to defined contribution Depreciation is provided on property, if not received as a donation. (i.e. accumulation) superannuation plant and equipment, including plans, the associated expense is the freehold buildings, but excluding land. (vi) Unearned Income employer contributions that are paid Refer to Note 1(e) (x). or payable in respect of employees Unearned income represents monies Depreciation begins when the asset who are members of these plans during received in advance of the provision is available for use, which is when it is the reporting period. of particular interment and cremation in the location and condition necessary services and for pre sales of some Contributions to defined contribution for it to be capable of operating in the goods e.g. memorial plaques. These superannuation plans are expensed manner intended by management. are recorded as unearned income as when incurred. at the reporting date and recognised The following table indicates the as revenue in the period that the goods depreciation rates in use. or services are provided.
2016 2015
Buildings 2.5% 2.5%
Infrastructure and Improvements 2% 2%
Plant & Equipment 10% 10%
Motor Vehicles 20% 20%
Annual Report 2015-2016 61 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(iv) Amortisation ‘Gross Earnings’ is currently defined Receivables include cash and as cemetery operations income deposits, term deposits with Intangible assets with a cost in and investment income, excluding: maturity greater than three months, excess of $3,000 (2015: $3,000) donations, government grants, profit trade and other receivables, but are capitalised. or loss on sale of investments and not statutory receivables. other assets and assets received free Amortisation is allocated to intangible The effective interest method is a assets with finite useful lives and of charge. The levy rate for this reporting period is 3% (2015: 3%). method of calculating the amortised is undertaken on a systematic cost of a financial asset and of (straight-line) basis over the allocating interest income over the asset’s useful life, and is recognised (D) FINANCIAL relevant period. The effective interest as an expense. INSTRUMENTS rate is the rate that exactly discounts estimated future cash receipts Amortisation begins when the asset is Financial instruments arise out of through the expected life of the available for use, that is, when it is in contractual agreements that give rise financial asset, or, where appropriate, the location and condition necessary to a financial asset of one entity and a a shorter period. for it to be capable of operating in the financial liability or equity instrument manner intended by management. of another entity. Due to the nature of GMCT’s activities, certain financial The amortisation period and the (E) ASSETS assets and financial liabilities arise amortisation method for an intangible under statute rather than a contract. Financial Assets asset with a finite useful life are reviewed at least at the end of each Such financial assets and financial (i) Cash and cash equivalents annual reporting period. In addition, liabilities do not meet the definition Cash and cash equivalents comprise an assessment is made at each of financial instruments in AASB 132 cash on hand, cash at bank, deposits at reporting date to determine whether Financial Instruments: Presentation. call and highly liquid investments with there are indicators that the intangible For example, statutory receivables an original maturity of three months or asset concerned is impaired. arising from taxes, fines and penalties less, which are held for the purpose of do not meet the definition of financial If so, the assets concerned are tested meeting short term cash commitments instruments as they do not arise to assess whether their carrying value rather than for investment purposes under contract. exceeds their recoverable amount. and which are readily convertible to Any excess of the carrying amount over Where relevant, for note disclosure known amounts of cash and are subject the recoverable amount is recognised purposes, a distinction is made to insignificant risk of changes in value. as an impairment loss. between those financial assets and financial liabilities that meet the The following table indicates the (ii) Receivables definition of financial instruments amortisation rates in use: in accordance with AASB 132 and Receivables consist of: those that do not. Contractual receivables, which 2016 2015 The following refers to financial includes mainly debtors in relation instruments unless otherwise stated. to goods and services and accrued Computer 16% - 33% 33% investment income; and systems Categories of non-derivative Statutory receivables, which financial instruments includes predominantly GST input (v) Cemetery levy (i) Receivables tax credits recoverable. In accordance with Section 18Q of the Receivables are financial instrument Receivables that are contractual are Cemeteries and Crematoria Act 2003, assets with fixed and determinable classified as financial instruments GMCT is required to pay a percentage payments that are not quoted on an and categorised as receivables. of its gross earnings, as defined by active market. These assets are initially Statutory receivables are recognised the Department of Health and Human recognised at fair value plus any and measured similarly to contractual Services, to the Consolidated Fund directly attributable transaction costs. receivables (except for impairment), held by the State of Victoria. Subsequent to initial measurement, but are not classified as financial receivables are measured at amortised instruments because they do not arise cost using the effective interest from a contract. method, less any impairment.
62 Notes to the Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Receivables are recognised initially at (v) Available-for-Sale (vii) Net gain/(loss) on fair value and subsequently measured Financial Assets financial instruments at amortised cost, using the effective interest rate method, less any Other financial assets held by Net gain/ (loss) on financial GMCT are classified as being accumulated impairment. instruments includes: available-for-sale and are measured Trade debtors are carried at nominal at fair value. Gains and losses arising impairment and reversal of amounts due for settlement within from changes in fair value are impairment for financial instruments 30 days from the date of recognition. recognised as other comprehensive at amortised cost; and income directly in equity until the Collectability of debts is reviewed on disposals of financial assets. an ongoing basis, and debts which are investment is disposed of or is known to be uncollectible are written determined to be impaired, at which off. A provision for doubtful debts is time the cumulative gain or loss (viii) Revaluation of financial recognised when there is objective previously recognised in equity is instruments at fair value included in the operating result for evidence that an impairment loss has The revaluation gain/ (loss) on financial the year. occurred. Bad debts are written off instruments at fair value excludes when identified. Fair value is determined in the manner dividends and interest earned on described in Note 19 (e). financial assets, which are separately (iii) Prepayments reported as income. Prepayments represent payments in (vi) Impairment of Non-Financial Assets advance of receipt of goods or services Financial Assets or that part of expenditure made in At the end of each reporting period (ix) Inventories one accounting period covering a term GMCT assesses whether there is Inventories include goods and other beyond that period. objective evidence that a financial property held either for sale or for asset or group of financial assets is distribution at nominal consideration, impaired. All financial instrument (iv) Other financial assets or for consumption in the ordinary assets are subject to annual review course of business operations. Other financial assets are recognised for impairment. and derecognised on trade date where Inventories exclude depreciable assets. purchase or sale of an investment is Receivables are assessed for bad and Inventories include land allocated under a contract whose terms require doubtful debts on a regular basis. for interment purposes and held for delivery of the investment within the Bad debts considered as written off sale. Inventory of land allocated time frame established by the market and allowances for doubtful receivables for interment purposes is measured concerned, and are initially measured are expensed. The amount of the at the lower of cost and net realisable at fair value, net of transaction costs. allowance is the difference between the financial asset’s carrying amount value on the basis of weighted average Investments are classified as and the present value of estimated cost and includes adjacent land and receivables or available-for-sale future cash flows, discounted at the landscaping that add to the amenity financial assets. effective interest rate. of the land for interment.
GMCT classifies its other financial Where the fair value of an investment Inventories are classified as either assets between current and in an equity instrument has reduced by work in progress or finished goods. non-current assets based on the 20 per cent or more of its cost price; or Work in progress includes undeveloped purpose for which the assets were where its fair value has been less than land and expenditure on inventories acquired. Management determines its cost price for a period of 12 or more partially constructed, but not available the classification of its other financial months, the financial instrument is for sale. Finished goods represent investments at initial recognition. treated as impaired. inventories available for sale to clients including land to be used for interment At each balance sheet date GMCT In order to determine an appropriate purposes. assesses whether a financial asset or fair value as at 30 June 2016 for its group of financial assets is impaired. portfolio of financial assets, GMCT Inventory of precast concrete lined All financial assets are subject to used valuations provided by its fund graves, pre-poured foundations annual review for impairment. managers as at 30 June 2016 which for graves, memorial wall niches were based on market prices. and mausoleum crypts are valued at weighted average cost. These The above valuation process was used inventories are measured at the lower to quantify the level of impairment on of cost or net realisable value. the portfolio of financial assets as at year end.
Annual Report 2015-2016 63 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Costs for all other inventories are Cemetery use land was valued at Revaluation increments are recognised measured on the basis of weighted 30 June 2012 by the Valuer-General in in other comprehensive income and average cost. accordance with the requirements of accumulated in the physical asset Financial Reporting Direction FRD103F revaluation surplus reserve, except Inventories acquired for no cost or for Non-current Physical Assets, issued to the extent that an increment nominal consideration are measured pursuant to the Financial Management reverses a revaluation decrement in at current replacement cost at the date Act 1994. The next scheduled respect of that class of asset previously of acquisition. revaluation under FRD103F is set for recognised as an expense in the reported result, the increment is Inventories expected to be sold or the year ending 30 June 2017 or earlier recognised as income in determining utilised within 12 months are recorded if there is an indication that the fair the reported result. as current assets, with the balance as value has moved materially since the last valuation. non-current assets. Revaluation decrements are recognised immediately as expenses Costs of goods sold are recognised in Land for cemetery use is classified in the reported result, except that, accordance with Note 1(c) (i). between Interment Land (see inventories above) and Land Under to the extent that a credit balance Infrastructure which is part of property, exists in the physical asset revaluation (x) Property, plant and plant and equipment. surplus reserve in respect of the same equipment class of assets, they are debited directly to the physical asset revaluation All non-current physical assets (except Land and buildings surplus reserve. inventories) are measured initially at Measured initially at cost and cost and subsequently revalued at fair subsequently measured at fair value. Revaluation increases and revaluation value less accumulated depreciation Accumulated depreciation is deducted decreases relating to individual assets and impairment. from the fair value of buildings to within an asset class are offset against derive a value to be assessed for one another within that class but Crown Land impairment. are not offset in respect of assets in Crown Land which has been reserved different classes. for cemetery and crematoria purposes Plant, Equipment and Vehicles Revaluation surplus relating to an is measured at fair value with regard Measured initially at cost and asset is not normally transferred to to the property’s highest and best use subsequently measured at fair value accumulated funds on de-recognition after due consideration is given to less accumulated depreciation and of the relevant asset. any legal or constructive restrictions impairment. Depreciated historical imposed on the land, public cost is generally a reasonable proxy In accordance with FRD 103F, GMCT’s announcements or commitments made for depreciated replacement cost non-current physical assets were in relation to the intended use of the because of the short lives of the assets assessed to determine whether asset. Theoretical opportunities that concerned. revaluation of the non-current physical may be available in relation to the assets was required. asset(s) are not taken into account (xi) Revaluation of non-current until it is virtually certain that any physical assets (xii) Intangible assets restrictions will no longer apply. Non-current physical assets measured Intangible assets represent Land for Cemetery Use at fair value are revalued in accordance identifiable non-monetary assets Legal or constructive restrictions with FRD 103F. This revaluation process without physical substance, and related to land for cemetery use, normally occurs every five years, based include computer software and whereby land has been reserved for a upon the asset’s Government Purpose associated development costs. Classification, but may occur more cemetery, have been assessed by the Intangible assets are initially Valuer-General of Victoria as reducing frequently if fair value assessments indicate material changes in values. recognised at cost. Subsequently, the land’s highest and best use value intangible assets with finite useful by a discount factor of 95%. Independent valuers are used to conduct these scheduled revaluations lives are carried at cost less accumulated amortisation and The discount of 95% represents the and any interim revaluations are accumulated impairment losses. Community Service Obligation (‘CSO’) determined in accordance with the Intangible assets with indefinite of providing the cemetery to the people requirements of the FRD. useful lives are not amortised but are of Victoria. Revaluation increments or decrements assessed for impairment annually or arise from differences between an whenever there is an indication that asset’s carrying value and its fair value. the intangible assets may be impaired.
64 Notes to the Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Costs incurred subsequent to initial It is deemed that, in the event of the Statutory payables are recognised acquisition are capitalised when it loss of an asset, the future economic and measured similarly to contractual is expected that additional future benefits arising from the use of payables, but are not classified as economic benefits will flow to GMCT. the asset will be replaced unless a financial instruments and not included specific decision has been made to in the category of financial liabilities (xiii) Net gain/(loss) on the contrary. The recoverable amount at amortised cost, because they do not non-financial assets for most assets is measured at the arise from a contract. higher of depreciated replacement Net gain/ (loss) on non-financial cost and fair value less costs to sell. (iii) Provision for loss on assets includes realised and unrealised gains and losses from revaluations, The recoverable amount for assets onerous contracts impairments and disposals of all held primarily to generate net cash (on unearned income) physical assets and intangible assets. inflows is measured at the higher of A provision is recognised for onerous the present value of future cash flows contracts where the unavoidable costs expected to be obtained from the asset (xiv) Disposal of of meeting the obligations exceed the and fair value less costs to sell. non-financial assets economic benefits that are expected to be received under the contract Any gain or loss on the sale of (F) LIABILITIES and the future sacrifice of economic non-financial assets is recognised benefits is probable. in the operating result at the date (i) Unearned income that control of the asset is passed The amount recognised as a to the buyer and is determined after Unearned income is as per provision is the best estimate of deducting from the proceeds the Note 1 (b) (vi). the consideration required to settle carrying value of the asset at that time. the present obligation at reporting All unearned income is classified date, taking into account the risks as a current liability as GMCT does (xv) Impairment of and uncertainties surrounding the not have an unconditional right to obligation. A provision is recognised non-financial assets defer settlement. Pre-purchases and in relation to pre-paid fees where All assets are assessed annually for pre-need deeds are redeemed when the cost of providing the purchased indications of impairment except for a need arises. The amount that will goods and/or services is expected to Inventories. be redeemed during the coming 12 be greater than the amount received/ months cannot be determined reliably. revenue to be recognised and the If there is an indication of impairment, Prepaid fees are recognised at their current service cost can be reliably the asset concerned is tested to nominal (contracted) value. measured. determine whether its carrying value exceeds its possible recoverable The provision represents the current (ii) Payables amount. Where an asset’s carrying cost of the expenditure required to value exceeds its recoverable amount, Payables consist of: provide the goods and/or services, less the difference is written-off as an the amount of revenue to be recognised expense except to the extent that the Contractual payables which consist based on historical prices and current write-down value can be debited to predominantly of accounts payable costs at the reporting date. an asset revaluation surplus reserve representing liabilities for goods amount applicable to that same class and services provided to GMCT prior As GMCT does not have an of asset. to the end of the financial year that unconditional right to defer settlement, are unpaid, and arise when GMCT the liability for onerous contracts is If there is an indication that there has becomes obliged to make future recognised as a current liability. been a change in the estimate of an payments in respect of the purchase asset’s recoverable amount since the of those goods and services. The (iv) Goods and Services Tax last impairment loss was recognised, normal credit terms for accounts (‘GST’) the carrying amount shall be increased payable are usually Nett 30 days. to its recoverable amount. Income, expenses and assets are Statutory payables, such as goods recognised net of the associated This reversal of the impairment loss and services tax and fringe benefits amount of GST, unless the GST incurred occurs only to the extent that the tax payables. is not recoverable from the ATO. In this asset’s carrying amount does not case it is recognised as part of the cost exceed the carrying amount that Contractual payables are initially of acquisition of the asset or as part of would have been determined, net of recognised at fair value, and then the expense. depreciation or amortisation, if no subsequently carried at amortised cost. impairment loss had been recognised in prior years.
Annual Report 2015-2016 65 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Receivables and payables are stated The components of this current LSL Employer contributions are normally inclusive of the amount of GST liability are measured at: based on a fixed percentage of receivable or payable. The net employee earnings in accordance amount of GST recoverable from, Undiscounted value – if the with the Superannuation Guarantee or payable to, the ATO is included cemetery trust expects to wholly Legislation (9.5 per cent). GMCT’s with other receivables or payables settle within 12 months; and current contribution ranges between in the balance sheet. Present value – if the cemetery trust 9.5 per cent and 10 per cent. No further does not expect to wholly settle liability accrues to the employer as the Cash flows are presented on a gross within 12 months. superannuation benefits accruing to basis. The GST components of cash employees are represented by their flows arising from investing or financial Conditional LSL is disclosed as a share of the net assets of their chosen activities which are recoverable from non-current liability as there is an superannuation fund. or payable to the ATO are presented unconditional right to defer the as operating cash flows. settlement of the entitlement until the Defined Benefit employee has completed the requisite Commitments and contingent assets or Superannuation Plan years of service. This non-current LSL liabilities are presented including GST. The defined benefit plan provides liability is measured at present value. benefits to employees based on (v) Employee benefits Any gain or loss following revaluation years of service and final average of the present value of non-current LSL salary. GMCT makes employer Wages and salaries and annual leave liability is recognised as a transaction, contributions to the defined benefits except to the extent that a gain or category of the Superannuation Fund Liabilities for wages and salaries, loss arises solely due to changes in at a minimum of the rate determined including non-monetary benefits, bond interest rates for which it is then by the Fund’s Trustee. and annual leave are recognised in recognised as an other economic flow. the provision for employee benefits On the basis of the results of the most as ‘current liabilities’ because GMCT recent full actuarial investigation On-Costs does not have an unconditional right conducted by the Fund’s actuary, to defer settlement of these liabilities. Employee Benefit on-costs (workers GMCT’s current contribution is 9.50 compensation and superannuation) per cent of superannuation salary, Depending on the expectation of the accrued on annual leave and LSL plus contribution tax. timing of settlement, liabilities for are recognised separately from the wages and salaries and annual leave provision for employee benefits. GMCT does not recognise any are measured at: defined benefit liability in respect of the plan because the entity has Undiscounted value – if the (vi) Leases no legal or constructive obligation cemetery trust expects to wholly Operating lease payments, including to pay future benefits relating to its settle within 12 months; or any contingent rentals, are recognised employees; its only obligation is to Present value – if the cemetery trust as an expense on a straight-line basis pay superannuation contributions does not expect to wholly settle over the lease term, except where as they fall due. The Department of within 12 months. another systematic basis is more Treasury and Finance discloses the representative of the time pattern of State’s defined benefits liabilities in Long Service Leave (LSL) the benefits derived from the use of its disclosure for administered items. the leased asset. The leased asset is Liability for LSL is recognised in the not recognised in the balance sheet. Unfunded Defined Benefit provision for employee benefits. Superannuation Liability Unconditional LSL is disclosed in (vii) Superannuation The Local Authorities Superannuation the notes to the financial statements Employees of GMCT are entitled to Fund (LASF), known as Vision Super as a current liability, even where the receive superannuation benefits and since 2002, is a not-for-profit industry GMCT does not expect to settle the GMCT contributes to defined benefit fund for cemeteries and certain other liability within 12 months because and defined contribution plans. agencies. Vision Super is the Trustee it does not have the unconditional of both the defined benefit plan right to defer the settlement of the Defined Contribution (closed since 1993) and the Super entitlement should an employee take Superannuation Plan Save (accumulation) fund. leave within 12 months. The defined contribution funds receive both employer and employee contributions on a progressive basis.
66 Notes to the Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In accordance with regulations, Fees received include amounts for are authorised for issue, where the Fund’s Trustees are required perpetual maintenance to be carried those events provide information to complete an actuarial review of out in future years in perpetuity. about conditions which existed in superannuation funds at least every Such amounts are transferred from the reporting period. three years to ensure the current the result for the year and into the assets are adequate to meet the Perpetual Maintenance Reserve Note disclosure is made about events benefits that have previously been (Notes 16 and 22). between the end of the reporting promised to members. period and the date the financial The Perpetual Maintenance Reserve statements are authorised for issue As a participating employer of this allocation is based on 20% of gross where the events relate to conditions defined benefit plan, GMCT is liable surplus plus 100% of net investment which arose after the end of the to meet any call made by the fund’s income less any annual deficit from reporting period and which may have actuary. Based on the advice from the any individual cemetery. The perpetual a material impact on the results of Fund’s Trustee, there is no shortfall maintenance allocation is capped each subsequent reporting periods. in the defined benefit plan as at year to not exceed the operating result 30 June 2016. for the year. (I) COMMITMENTS FOR At this time the GMCT is aware that EXPENDITURE (G) EQUITY there will be ongoing significant cash Commitments for expenditure are outflows for future expenditure on not recognised in the balance sheet. perpetual maintenance of each public (i) Physical asset revaluation Commitments for expenditure are cemetery but is unable to calculate a surplus reserve disclosed at their nominal value and sufficiently reliable estimate of any are inclusive of the GST payable. The asset revaluation surplus reserve related present obligation which may In addition, where it is considered is used to record increments and arise under the accounting standards appropriate and provides additional decrements in the revaluation of and accordingly has not recognised relevant information to users, the net non-current physical assets. a value for this obligation in these present values of significant individual financial statements. projects are stated. (ii) Available-for-sale investment revaluation (iv) Contributed capital surplus reserve (J) CONTINGENT ASSETS Consistent with Australian Accounting AND CONTINGENT The available-for-sale revaluation Interpretation 1038 Contributions surplus arises from the revaluation by Owners Made to Wholly-Owned LIABILITIES of available-for-sale financial assets. Public Sector Entities and FRD 119 Contingent assets and contingent Where a revalued financial asset is Contributions by Owners, net assets liabilities are not recognised in the sold, that portion of the reserve which of the former trusts have been treated balance sheet, but are disclosed by relates to that financial asset, is as contributed capital in accordance way of note (refer to note 21) and, recognised in the operating result. with the Allocation Statement if quantifiable, are measured at authorised by the Minister for Health. nominal value. Contingent assets and Where an available-for-sale financial Other transfers that are in the nature contingent liabilities are presented asset is impaired, the cumulative loss of contributions or distributions that inclusive of GST receivable or payable that had been recognised in other have been designated as contributed respectively. comprehensive income is reclassified capital are treated as contributed from equity to operating result. capital (Note 16a). (K) ROUNDING OF AMOUNTS (iii) Perpetual maintenance (H) EVENTS AFTER THE All amounts shown in the financial reserve statements are expressed to the REPORTING PERIOD nearest $1,000 unless otherwise Under section 12A(2)(a) of the Assets, liabilities, income or expenses stated. Figures in the financial Cemeteries and Crematoria Act, arise from past transactions or other statements may not equate due GMCT must have regard to its past events. Adjustments are made to to rounding. obligations in relation to funding amounts recognised in the financial of the perpetual maintenance of statements for events which occur the public cemeteries for which it after the reporting period and before is responsible. the date the financial statements
Annual Report 2015-2016 67 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(L) NEW ACCOUNTING AASB 2014-8 GMCT early adopted AASB 2015-7 for STANDARDS AND Amendments to Australian the current financial year. INTERPRETATIONS Accounting Standards arising from AASB 9 – Application of Certain new Australian accounting The following accounting AASB 9 (December 2009) and standards and interpretations have pronouncements effective from AASB 9 (December 2010) been published that are not mandatory the 2015-16 reporting period are [AASB 9 (2009 & 2010)] for the 30 June 2016 reporting period. considered to have insignificant As at 30 June 2016, the following impacts on GMCT: AASB 2015-3 Amendments to Australian standards and Interpretations had been AASB 1048 Accounting Standards arising issued but application was not effective Interpretation of Standards from the Withdrawal of AASB for the year ending 30 June 2016. 1031 Materiality AASB 2013-9 They become effective for the first Amendments to Australian Amending standard AASB 2015-7 financial statements for the reporting Accounting Standards Amendments to Australian Accounting periods commencing after the stated [Part C Financial Instruments] Standards – Fair Value Disclosures of operative dates as detailed in the table Not for Profit Public Sector Entities, below. GMCT has not and does not which is operative from 1 July 2016 intend to adopt these standards early. provides an exemption for not for profit public sector entities from certain fair value disclosures.
APPLICABLE FOR ANNUAL IMPACT ON GMCT STANDARD/ REPORTING PERIODS FINANCIAL INTERPRETATION SUMMARY BEGINNING ON STATEMENTS
AASB 9 The key changes include the 1 Jan 2018 The assessment has Financial simplified requirements for the identified that the financial Instruments classification and measurement impact of available for sale of financial assets, a new (AFS) assets will now be hedging accounting model reported through other and a revised impairment loss comprehensive income (OCI) model to recognise impairment and no longer recycled to losses earlier, as opposed to the the profit and loss. current approach that recognises impairment only when incurred. While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed.
AASB 2014-7 Amends various AASs to 1 Jan 2018 The assessment has Amendments incorporate the consequential indicated that there will to Australian amendments arising from the be no significant impact Accounting issuance of AASB 9. for GMCT. Standards arising from AASB 9
68 Notes to the Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
APPLICABLE FOR ANNUAL IMPACT ON GMCT STANDARD/ REPORTING PERIODS FINANCIAL INTERPRETATION SUMMARY BEGINNING ON STATEMENTS
AASB 2014-1 Amends various AASs to reflect 1 Jan 2018 This amending standard Amendments the AASB’s decision to defer the will defer the application to Australian mandatory application date period of AASB 9 to the Accounting of AASB 9 to annual reporting 2018-19 reporting period Standards periods beginning on or after in accordance with the [Part E Financial 1 January 2018 as a consequence transition requirements. Instruments] of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.
AASB 2010-7 The requirements for classifying 1 Jan 2018 The assessment has Amendments and measuring financial identified that the to Australian liabilities were added to AASB 9. amendments are likely to Accounting The existing requirements for result in earlier recognition Standards arising the classification of financial of impairment losses and from AASB 9 liabilities and the ability to at more regular intervals. (December 2010) use the fair value option have been retained. However, where Changes in own credit the fair value option is used for risk in respect of liabilities financial liabilities the change designated at fair value in fair value is accounted for as through profit and loss follows: will now be presented within other comprehensive The change in fair value income (OCI). attributable to changes in credit risk is presented in other comprehensive income (OCI); and
Other fair value changes are presented in profit and loss. If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss.
AASB 15 The core principle of AASB 15 1 Jan 2017 The changes in revenue Revenue from requires an entity to recognise recognition requirements (Exposure Draft 263 – Contracts with revenue when the entity satisfies in AASB 15 may result potential deferral to Customers a performance obligation by in changes to the timing transferring a promised good 1 Jan 2018) and amount of revenue or service to a customer. recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.
GMCT’s deferred income has future performance obligations and therefore any impact at this stage is perceived to be minimal.
Annual Report 2015-2016 69 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
APPLICABLE FOR ANNUAL IMPACT ON GMCT STANDARD/ REPORTING PERIODS FINANCIAL INTERPRETATION SUMMARY BEGINNING ON STATEMENTS
AASB 2015-8 This Standard defers the mandatory 1 Jan 2018 This amending standard Amendments effective date of AASB 15 from will defer the application to Australian 1 January 2017 to 1 January 2018. period of AASB 15 to the Accounting 2018-19 reporting period Standards – in accordance with the Effective Date transition requirements. of AASB 15
AASB 2014-5 Amends the measurement of trade 1 Jan 2017, The assessment has Amendments receivables and the recognition except amendments to indicated that there will to Australian of dividends. AASB 9 (Dec 2009) and be no significant impact Accounting AASB 9 (Dec 2010) apply for GMCT. Trade receivables, that do not Standards arising from 1 Jan 2018 have a significant financing from AASB 15 component, are to be measured at their transaction price, at initial recognition. Dividends are recognised in the profit and loss only when: the entity’s right to receive payment of the dividend is established; it is probable that the economic benefits associated with the dividend will flow to the entity; and the amount can be measured reliably.
AASB 2016-3 This Standard amends AASB 1 Jan 2018 The assessment has Amendments 15 to clarify the requirements indicated that there will to Australian on identifying performance be no significant impact Accounting obligations, principal versus agent for GMCT, other than Standards – considerations and the timing of the impact identified in Clarifications recognising revenue from granting AASB 15. to AASB 15 a licence. The amendments require: A promise to transfer to a customer a good or service that is ‘distinct’ to be recognised as a separate performance obligation; For items purchased online, the entity is a principal if it obtains control of the good or service prior to transferring to the customer; and For licences identified as being distinct from other goods or services in a contract, entities need to determine whether the licence transfers to the customer over time (right to use) or at a point in time (right to access).
70 Notes to the Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
APPLICABLE FOR ANNUAL IMPACT ON GMCT STANDARD/ REPORTING PERIODS FINANCIAL INTERPRETATION SUMMARY BEGINNING ON STATEMENTS
AASB 16 The key changes introduced 1 Jan 2019 The assessment has indicated Leases by AASB 16 include the that as most operating leases recognition of most will come on balance sheet, operating leases (which recognition of lease assets are current not recognised) and lease liabilities will cause on balance sheet. net debt to increase.
Depreciation of lease assets and interest on lease liabilities will be recognised in the income statement with marginal impact on the operating surplus.
The amounts of cash paid for the principal portion of the lease liability will be presented within financing activities and the amounts paid for the interest portion will be presented within operating activities in the cash flow statement.
No change for lessors.
AASB 2015-1 Amends the methods 1 Jan 2016 The assessment has Amendments to of disposal in AASB 5 indicated that when an Australian Accounting Non-current assets held asset (or disposal group) is Standards – Annual for sale and discontinued reclassified from ‘held to sale’ Improvements to operations. to ‘held for distribution’, or Australian Accounting vice versa, the asset does not Standards 2012-2014 Amends AASB 7 Financial have to be reinstated in the Cycle [AASB 1, AASB 2, Instruments by including financial statements. AASB 3, AASB 5, AASB 7, further guidance on AASB 11, AASB 110, servicing contracts. Entities will be required AASB 119, AASB 121, to disclose all types of AASB 133, AASB 134, continuing involvement AASB 137 & AASB 140] the entity still has when transferring a financial asset to a third party under conditions which allow it to derecognise the asset.
Annual Report 2015-2016 71 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
APPLICABLE FOR ANNUAL IMPACT ON GMCT STANDARD/ REPORTING PERIODS FINANCIAL INTERPRETATION SUMMARY BEGINNING ON STATEMENTS
AASB 2014-4 Amends AASB 116 Property, 1 Jan 2016 The assessment has Amendments Plant and Equipment and indicated that there is to Australian AASB 138 Intangible Assets to: no expected impact Accounting as the revenue-based Standards – establish the principle for method is not used Clarification the basis of depreciation and for depreciation and of Acceptable amortisation as being the amortisation. Methods of expected pattern of consumption Depreciation and of the future economic benefits Amortisation of an asset; [AASB 116 prohibit the use of revenue & AASB 138] based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.
AASB 2015-6 The Amendments extend the 1 Jan 2016 The amending standard Amendments scope of AASB 124 Related Party will result in extended to Australian Disclosures to not-for-profit public disclosures on the Accounting sector entities. Guidance has been entity’s key management Standards – included to assist the application personnel (KMP), Extending Related of the Standard by not-for-profit and the related party Party Disclosures public sector entities. transactions. to Not-for-Profit Public Sector Entities [AASB 10, AASB 124 & AASB 1049]
AASB 2016-4 The standard amends AASB 136 1 Jan 2017 The assessment has Amendments Impairment of Assets to remove indicated that there is to Australian references to using depreciated minimal impact. Given Accounting replacement cost (DRC) as a the specialised nature Standards – measure of value in use for and restrictions of Recoverable not-for-profit entities. public sector assets, the Amount of existing use is presumed Non-Cash- to be the highest and Generating best use (HBU), hence Specialised Assets current replacement cost of Not-for-Profit under AASB 13 Fair Value Entities Measurement is the same as the depreciated replacement cost concept under AASB 136.
72 Notes to the Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In addition to the new standards AASB 2015-2 above, the AASB has issued a list Amendments to Australian of amending standards that are not Accounting Standards – Disclosure effective for the 2015-16 reporting Initiative: Amendments to AASB 101 period (as listed below). [AASB 7, AASB 101, AASB 134 & AASB 1049] In general, these amending standards include editorial and references AASB 2015-5 changes that are expected to have Amendments to Australian insignificant impacts on public Accounting Standards – Investment sector reporting. Entities: Applying the Consolidation Exception [AASB 10, AASB 12, AASB 128] 2 AASB 1056 Superannuation Entities AASB 2015-9 Amendments to Australian AASB 1057 Accounting Standards – Scope Application of Australian and Application Paragraphs Accounting Standards [AASB 8, AASB 133 & AASB 1057]
AASB 2014-1 AASB 2015-10 Amendments to Australian Amendments to Australian Accounting Standards [PART D – Accounting Standards – Effective Consequential Amendments Date of Amendments to AASB 10 arising from AASB 14 Regulatory and AASB 128 Deferral Accounts only] 2 AASB 2016-1 AASB 2014-6 Amendments to Australian Amendments to Australian Accounting Standards – Accounting Standards – Agriculture: Recognition of Deferred Tax Assets Bearer Plants [AASB 101, AASB 116, for Unrealised Losses [AASB 112] AASB 117, AASB 123, AASB 136, AASB 2016-2 AASB 140 & AASB 141] Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107
Annual Report 2015-2016 73 NOTE 2: INCOME FROM TRANSACTIONS
2016 2015 $ 000 $ 000
(a) Cemetery Operations Income
Grave income 13,278 10,444
Mausoleum income 9,696 11,152
Cremation memorial income 2,730 3,058
Interment 7,143 6,849
Cremation Income 5,138 4,815
Memorialisation 4,026 4,086
Other operating income
Other interment services 1,408 1,633
Chapel services 153 212
Rental income 464 216
Other operating income 1,071 776
TOTAL CEMETERY OPERATIONS INCOME 45,107 43,241
(b) Investment Income
Interest from cash and cash equivalents and available for sale 1,553 1,650 financial assets
Dividends and distributions 11,117 14,787
TOTAL INVESTMENT INCOME 12,670 16,437
(c) Profit on Disposal of Property, Plant and Equipment
Proceeds from disposals 291 353
Less written down value of property, plant and equipment disposed (232) (188)
TOTAL PROFIT / (LOSS) ON DISPOSAL 59 165
74 Notes to the Financial Statements NOTE 3: EXPENSES
2016 2015 NOTE $ 000 $ 000
(a) Cost of Goods Sold
Rights of interment 5,193 4,713
Memorialisation 1,740 1,821
TOTAL COST OF GOODS SOLD 6,933 6,534
(b) Other Expenses
Other operating costs 1,985 2,043
Investment management fees 1,292 1,187
(Gain)/loss on onerous contracts 59 141
Doubtful debts expense 4 -
TOTAL OTHER EXPENSES 3,340 3,371
(c) Depreciation and Amortisation
Depreciation
Buildings, infrastructure and improvements 9(b) 1,450 1,351
Motor vehicles, plant and equipment 9(b) 1,429 1,157
Amortisation
Amortisation of computer software 11 219 37
TOTAL DEPRECIATION AND AMORTISATION 3,098 2,545
NOTE 4: REMUNERATION OF AUDITORS
2016 2015 $ 000 $ 000
Victorian Auditor General’s Office audit of the financial statements 92 90
TOTAL REMUNERATION OF AUDITORS 92 90
NOTE 5: CASH AND CASH EQUIVALENTS
2016 2015 $ 000 $ 000
Cash on hand 2 3
Cash at bank 6,706 4,956
TOTAL CASH AND CASH EQUIVALENTS 6,708 4,959
For the purposes of the cash flow statement, cash assets includes cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in value.
Annual Report 2015-2016 75 NOTE 6: RECEIVABLES
2016 2015 NOTE $ 000 $ 000
Current
Contractual
Trade and sundry debtors 2,331 1,544
Accrued interest and dividends 1,271 1,388
Less provision for doubtful debts (a) (4) -
Total contractual receivables 3,598 2,932
Statutory
GST receivables 14 190
Total statutory receivables 14 190
TOTAL RECEIVABLES 3,612 3,122
The nature and extent of risk arising from receivables and ageing of receivables is contained in Note 19.
(a) Movement in provision for doubtful debts
2016 2015 $ 000 $ 000
Balance at the beginning of the year - -
Amounts written off during the year - -
Increase / (decrease) in allowance recognised in net result 4 -
BALANCE AT END OF THE YEAR 4 -
NOTE 7: AVAILABLE FOR SALE INVESTMENTS
2016 2015 $ 000 $ 000
Current
Interest-bearing investments 40,000 47,000
Total current available for sale investments 40,000 47,000
Non current
Managed share/units portfolio 143,795 120,348
Interest-bearing investments 61,419 76,425
Total non-current available for sale investments 205,214 196,773
TOTAL AVAILABLE FOR SALE INVESTMENTS 245,214 243,773
The nature and extent of risk arising from and ageing of other financial assets is contained in Note 19.
76 Notes to the Financial Statements NOTE 8: INVENTORIES
2016 2015 NOTE $ 000 $ 000
Current
Finished goods
Grave foundations and beams 8,654 4,608
Mausoleum crypts 15,306 18,813
Land: interment purposes 114 74
Work-in-progress
Development costs 2,521 1,800
Total current 26,595 25,295
Non-current
Work-in-progress
Development costs (i) 5,947 5,947
Land: interment purposes (undeveloped) 9,061 9,146
Total non-current 15,008 15,093
TOTAL INVENTORIES 41,603 40,388
(i): $5.9 million of inventory located in the Preston mausoleum basement was reclassified in 2012 as work in progress as additional development is required in order to make the inventory available for sale.
Represented by
Land: interment purposes 9,175 9,220
Grave foundations and beams 8,654 4,608
Mausoleum crypts 15,306 18,813
Work in progress 8,468 7,747
TOTAL INVENTORIES 41,603 40,388
All categories of inventories are valued at the lower of cost and net realisable value.
Annual Report 2015-2016 77 NOTE 9: PROPERTY, PLANT AND EQUIPMENT
2015 2016 20142015 NOTE $ 000 $ 000
Cemetery land under infrastructure at fair value (i) 10,120 2,708
Buildings, infrastructure and improvements at fair value (i) 56,619 50,373
Less accumulated depreciation (5,399) (3,950)
51,220 46,423
Motor vehicles, plant and equipment at fair value 13,460 10,261
Less accumulated depreciation (5,598) (4,518)
7,862 5,743
Capital works in progress at cost 1,217 3,009
TOTAL PROPERTY, PLANT AND EQUIPMENT 70,419 57,883
(i): In accordance with the requirements of Financial Reporting Direction FRD103F Non-current Physical Assets, these assets were valued by an independent valuer, Steven Lane, Qualified Valuer, of the Valuer-General of Victoria, with effect at 30 June 2012.
No material movement in valuation has occurred during the year and the carrying value at 30 June 2016 represents the assets fair value.
During 2016 GMCT made a significant land and building acquisition adjacent to Northern Memorial Park.
Cemetery land under infrastructure The valuation, which conforms to Australian Valuation Standards, was determined by direct reference to recent market transactions on arm’s length terms for land of comparable size and location, less a Community Service Obligation percentage of 95%.
Buildings, infrastructure and improvements The valuation, which conforms to Australian Valuation Standards, was determined based on the depreciated replacement cost of the assets.
78 Notes to the Financial Statements NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
(a) Reconciliation of Property, Plant and Equipment Reconciliation of Carrying Amounts of each class of Asset for GMCT at beginning and end of each financial period is set out below.
BUILDINGS, MOTOR CEMETERY INFRASTRUCTURE VEHICLES, LAND UNDER AND PLANT AND WORKS IN INFRASTRUCTURE IMPROVEMENTS EQUIPMENT PROGRESS TOTAL $ 000 $ 000 $ 000 $ 000 $ 000
BALANCE AT 30 2,708 45,382 5,443 2,058 55,591 JUNE 2014
Additions - - - 4,988 4,988
Transfers to - 2,392 1,645 (4,037) - completed assets
Transfers between - - - - - asset classes
Disposals - - (188) - (188)
Depreciation - (1,351) (1,157) - (2,508) expense
BALANCE AT 2,708 46,423 5,743 3,009 57,883 30 JUNE 2015
Additions - - - 15,646 15,646
Transfers to 7,412 6,247 3,779 (17,438) - completed assets
Transfers between - - - - - asset classes
Disposals - - (231) - (231)
Depreciation - (1,450) (1,429) - (2,879) expense
BALANCE AT 10,120 51,220 7,862 1,217 70,419 30 JUNE 2016
(b) Aggregate depreciation recognised as an expense during the year
2016 2015 $ 000 $ 000
Buildings, infrastructure and improvements 1,450 1,351
Motor vehicles, plant and equipment 1,429 1,157
TOTAL DEPRECIATION EXPENSE 2,879 2,508
(i): The useful lives of assets as stated in Note 1 are used in the calculation of depreciation.
Annual Report 2015-2016 79 NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
(c) Fair value measurement hierarchy for assets
CARRYING FAIR VALUE MEASUREMENT AT END OF AMOUNT AS REPORTING PERIOD USING: AT 30 JUNE 2016 LEVEL 1 LEVEL 2 LEVEL 3
Cemetery land under infrastructure at fair value
Specialised land 10,120 - - 10,120
TOTAL OF LAND AT FAIR VALUE 10,120 - - 10,120
Buildings, infrastructure and improvements at fair value
Specialised buildings 51,220 - - 51,220
TOTAL OF BUILDINGS AT FAIR VALUE 51,220 - - 51,220
Motor vehicles, plant and equipment at fair value
Vehicles 1,319 - - 1,319 Plant and equipment 6,543 - - 6,543
TOTAL OF PLANT AND EQUIPMENT AND 7,862 - - 7,862 VEHICLES AT FAIR VALUE
TOTAL BALANCE AT FAIR VALUE 30 JUNE 2016 69,202 - - 69,202
CARRYING FAIR VALUE MEASUREMENT AT END OF AMOUNT AS REPORTING PERIOD USING: AT 30 JUNE 2015 LEVEL 1 LEVEL 2 LEVEL 3
Cemetery land under infrastructure at fair value
Specialised land 2,708 - - 2,708
TOTAL OF LAND AT FAIR VALUE 2,708 - - 2,708
Buildings, infrastructure and improvements at fair value
Specialised buildings 46,423 - - 46,423
TOTAL OF BUILDINGS AT FAIR VALUE 46,423 - - 46,423
Motor vehicles, plant and equipment at fair value
Vehicles 1,309 - - 1,309 Plant and equipment 4,434 - - 4,434
TOTAL OF PLANT AND EQUIPMENT AND 5,743 - - 5,743 VEHICLES AT FAIR VALUE
TOTAL BALANCE AT FAIR VALUE 30 JUNE 2015 54,874 - - 54,874
(i): Classified in accordance with the fair value hierarchy, see Note 1. There have been no transfers between levels during the period.
80 Notes to the Financial Statements NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
(ii) Specialised land and As depreciation adjustments are (iv) Plant and equipment specialised buildings considered as significant and unobservable inputs in nature, Plant and equipment is held at The market approach is used for specialised buildings are classified as carrying value (depreciated cost). specialised land and specialised Level 3 for fair value measurements. When plant and equipment is buildings although land is adjusted specialised in use, such that it is rarely for the community service obligation An independent valuation of the sold other than as part of a going (CSO) to reflect the specialised nature Cemetery Trust’s specialised land concern, the depreciated replacement of the assets being valued. and specialised buildings was cost is used to estimate the fair value. performed by the Valuer-General The CSO adjustment is a reflection of Victoria. The valuation was performed Unless there is market evidence the valuer’s assessment of the impact using the market approach adjusted that current replacement costs are of restrictions associated with an for CSO. The effective date of the significantly different from the original asset to the extent that is also equally valuation is 30 June 2012. acquisition cost, it is considered applicable to market participants. unlikely that depreciated replacement This approach is in light of the highest (iii) Vehicles cost will be materially different from and best use consideration required the existing carrying value. GMCT acquires new vehicles and for fair value measurement, and takes at times disposes of them before There were no changes in valuation into account the use of the asset that is completion of their economic life. techniques throughout the year to physically possible, legally permissible The process of acquisition, use and 30 June 2016. and financially feasible. As adjustments disposal in the market is managed by of CSO are considered as significant GMCT who set relevant depreciation For all assets measured at fair value, unobservable inputs, specialised land rates during use to reflect the the current use is considered the would be classified as Level 3 assets. consumption of the vehicles. highest and best use. For GMCT, the depreciated replacement As a result, the fair value of vehicles cost method is used for the majority does not differ materially from the of specialised buildings, adjusting for carrying value (depreciated cost). the associated depreciation.
(d) Reconciliation of Level 3 Fair Value
BUILDINGS, CEMETERY INFRASTRUCTURE MOTOR INFRASTRUCTURE AND VEHICLES, PLANT LAND IMPROVEMENTS AND EQUIPMENT AT FAIR VALUE AT FAIR VALUE AT FAIR VALUE
Opening balance 2,708 46,423 5,743
Purchases (sales) 7,412 6,247 3,548
Depreciation - (1,450) (1,429)
CLOSING BALANCE 10,120 51,220 7,862
TOTAL BALANCE AT FAIR VALUE 30 JUNE 2016 10,120 51,220 7,862
(i): Classified in accordance with the fair value hierarchy, see Note 1.
Annual Report 2015-2016 81 NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
(e) Description of significant unobservable inputs to Level 3 valuations
VALUATION SIGNIFICANT TECHNIQUE UNOBSERVABLE INPUTS
Community Service Obligation Cemetery – specialised land Market approach (CSO) adjustment
Cemetery – specialised building
Depreciated replacement Useful life of specialised Buildings cost approach buildings
Depreciated replacement Useful life of specialised Infrastructure cost approach infrastructure
Plant and equipment at fair value
Depreciated replacement Useful life of vehicles Vehicles cost approach
Depreciated replacement Useful life of P&E Plant and equipment cost approach
NOTE 10: PREPAYMENTS
2016 2015 $ 000 $ 000
Prepayments 136 95
TOTAL PREPAYMENTS 136 95
NOTE 11: INTANGIBLE ASSETS
2016 2015 $ 000 $ 000
Computer software at cost 1,702 145
Less accumulated amortisation (259) (39)
1,443 106
Works in progress 769 1,153
TOTAL INTANGIBLE ASSETS 2,212 1,259 Reconciliation of intangible assets Balance at the beginning of the year 1,259 33
Additions 1,172 1,263
Disposals - -
Amortisation expense (219) (37)
BALANCE AT END OF THE YEAR 2,212 1,259
82 Notes to the Financial Statements NOTE 12: PAYABLES
2016 2015 $ 000 $ 000
Current
Contractual
Trade creditors 213 1,440
Other creditors and accruals 1,783 2,623
Total contractual creditors 1,996 4,063
Statutory
Other creditors and accruals 451 117
Cemeteries levy accrued 1,729 1,725
Superannuation liability 122 139
Total statutory creditors 2,302 1,981
TOTAL PAYABLES 4,298 6,044
(i): Ageing analysis of payables. Refer to Note 19 (c)(ii) for the ageing analysis of payables.
(ii): Nature and extent of risk arising from payables. Refer to Note 19.
NOTE 13: UNEARNED INCOME
2016 2015 $ 000 $ 000
Current
Pre-need deed sales liability 13,534 13,484
Deposits received in advance 2,205 528
TOTAL UNEARNED INCOME 15,739 14,012
NOTE 14: PROVISION FOR LOSS ON ONEROUS CONTRACTS
2016 2015 $ 000 $ 000
Balance at beginning of year 613 471
Amount taken to comprehensive operating statement (i) 59 141
BALANCE AT END OF THE YEAR 672 612
(i): The onerous contract provision is estimated based on the current direct cost of the expenditure required to provide the goods and/or services, less the amount of revenue to be recognised.
Annual Report 2015-2016 83 NOTE 15: EMPLOYEE BENEFITS AND RELATED ON COST PROVISIONS
2016 2015 $ 000 $ 000
Current provisions
Employee benefits
Annual leave (unconditional and expected to be settled within 12 months) 807 740 Annual leave (unconditional and expected to be settled after 12 months) 485 475 Long service leave (unconditional and expected to be settled within 12 months) 92 97
Long service leave (unconditional and expected to be settled after 12 months) 1,531 1,395
On-costs
Unconditional and expected to be settled within 12 months 152 154 Unconditional and expected to be settled after 12 months 297 303
Total current provisions 3,364 3,164
Non-current provisions
Long service leave (conditional and expected to be settled after 12 months) 467 401
On-costs 82 60
Total non-current provisions 549 461
TOTAL PROVISION FOR EMPLOYEE BENEFITS 3,913 3,625
(i): Employee benefits consist of annual leave and long service leave accrued by employees and the amounts not expected to be settled in 12 months are disclosed at present values.
(a) Employee benefits and on-costst
2016 2015 $ 000 $ 000
Current employee benefits
Annual leave 1,292 1,215
Long service leave 1,623 1,492
Non-current employee benefits
Long service leave 467 401
Total employee benefits 3,382 3,108
Current on-costs 449 457
Non-current on-costs 82 60
Total on-cost 531 517
TOTAL EMPLOYEE BENEFITS AND ON-COSTS 3,913 3,625
84 Notes to the Financial Statements NOTE 15: EMPLOYEE BENEFITS AND RELATED ON COST PROVISIONS (CONTINUED)
(b) Movement in Provisions
2016 2015 $ 000 $ 000
Movements in long service leave
Balance at the beginning of the year 2,178 1,935
Provision made during the year - expense 321 259
Revaluation (1) 129
Settlements made during the year (102) (145)
Balance at end of year 2,396 2,178
Movements in annual leave
Balance at the beginning of the year 1,447 1,261
Provision made during the year - expense 1,096 1,103
Annual leave taken (1,015) (899)
Revaluation (11) (18)
Balance at end of year 1,517 1,447
TOTAL EMPLOYEE BENEFITS AND ON-COSTS 3,913 3,625
NOTE 16: EQUITY
2016 2015 NOTE $ 000 $ 000
Composition of equity
Contributed capital (a) 148,872 148,872
Accumulated surplus / (deficit) (b) 42,414 42,100
Perpetual maintenance reserve (c) 144,427 125,644
Available for sale investment revaluation surplus reserve (d) 6,341 7,342
Physical asset revaluation surplus reserve (e) 3,228 3,228
TOTAL EQUITY 345,282 327,186
(a) Contributed Capital
2016 2015 NOTE $ 000 $ 000
Balance at the beginning of the year 148,872 148,872
Movement - -
BALANCE AT THE END OF THE YEAR 148,872 148,872
Annual Report 2015-2016 85 NOTE 16: EQUITY (CONTINUED)
(b) Accumulated surplus / (deficit)
2016 2015 $ 000 $ 000
Balance at the beginning of the year 42,100 42,100
Operating result for the year 19,097 19,706
Transfer to perpetual maintenance reserve (18,783) (19,706)
BALANCE AT THE END OF THE YEAR 42,414 42,100
(c) Perpetual maintenance reserve
2016 2015 $ 000 $ 000
Balance at the beginning of the year 125,644 105,938
Transfer from accumulated surplus / (deficit) 18,783 19,706
BALANCE AT THE END OF THE YEAR 144,427 125,644
(d) Available for sale investment revaluation surplus reserve
2016 2015 $ 000 $ 000
Balance at the Beginning of the Year 7,342 6,328
Unrealised gain/(loss) recognised for the year (1,017) (987)
Realised gain/(loss) recognised for the year 1,936 2,205
Realised (gain)/loss taken to the comprehensive operating statement (3,536) (2,328)
Impairment loss taken to the comprehensive operating statement 1,616 2,124
Total movement (1,001) 1,014
BALANCE AT THE END OF THE YEAR 6,341 7,342
(e) Physical asset revaluation surplus reserve
2016 2015 $ 000 $ 000
Balance at the beginning of the year 3,228 3,228
Revaluation increment/(decrement) recognised for land and buildings - -
BALANCE AT THE END OF THE YEAR 3,228 3,228
86 Notes to the Financial Statements NOTE 17: CASH FLOW INFORMATION
Reconciliation of net cash inflow/(outflow) from operating activities to operating result for the year
2016 2015 $ 000 $ 000
Operating result for the reporting year 19,097 19,706
Non-cash flows in the operating result
Depreciation and amortisation 3,098 2,545
(Profit) / loss from disposal of property, plant and equipment (59) (165)
Impairment loss on available for sale financial assets 1,616 2,124
Realised (gain)/loss on available for sale financial assets (3,536) (2,328)
1,119 2,176
Changes in assets and liabilities
(Increase)/decrease in receivables (491) (350)
(Increase)/decrease in inventories (692) 283
(Increase)/decrease in prepayments (41) 10
Increase/(decrease) in payables (3,439) (88)
Increase/(decrease) in employee benefits 288 429
Increase/(decrease) in onerous contracts 59 141
Increase/(decrease) in unearned income 1,728 1,181
(2,588) 1,606
NET CASH FLOW FROM OPERATING ACTIVITIES 17,628 23,488
Annual Report 2015-2016 87 NOTE 18: SUPERANNUATION
Employees of GMCT are entitled to receive superannuation benefits and GMCT contributes to defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.
Superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of GMCT.
The name, details and amounts expense in relation to the major employee superannuation funds and contributions made by GMCT are as follows:
CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS FOR THE OUTSTANDING FOR THE OUTSTANDING YEAR ENDING AT YEAR END YEAR ENDING AT YEAR END 2016 2016 2015 2015 $ 000 $ 000 $ 000 $ 000
Defined benefits
Vision Super 186 4 162 -
Defined contributions
Vision Super 717 51 848 139
Other 837 67 628 -
TOTAL 1,740 122 1,638 139
NOTE 19: FINANCIAL INSTRUMENTS
(a) Financial risk management Details of the significant accounting GMCT uses different methods to objectives and policies policies and methods adopted, measure and manage the different including the criteria for recognition, risks to which it is exposed. Primary GMCT’s principal financial instruments the basis of measurement and the responsibility for the identification comprise: basis on which income and expenses and management of financial risks are recognised, with respect to each rests with the Finance and Investment Cash Assets; class of financial asset and financial Committee of GMCT. Receivables liability are disclosed in Note 1 to the The main purpose of holding financial (excluding statutory receivables); financial statements. instruments is to prudentially manage GMCT’s main financial risks include Available for Sale Investments; GMCT’s financial risks within the credit risk, liquidity risk, interest and Government’s policy parameters. rate risk, and equity price risk. Payables GMCT manages these financial (excluding statutory payables). risks in accordance with its financial risk management policy.
88 Notes to the Financial Statements NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
(i) Categorisation of Financial Instruments
CARRYING CARRYING AMOUNT AMOUNT 2016 2015 ACCOUNT BALANCE NOTE CATEGORY $ 000 $ 000
Financial assets
Cash and cash equivalents 5 Cash 6,708 4,959
Available for sale investments - Available for sale investments 7 40,000 47,000 current (at fair value through equity)
Receivables 6 Receivables (at amortised cost) 3,598 2,932
Available for sale investments - Available for sale investments 7 205,214 196,773 non-current (at fair value through equity)
TOTAL FINANCIAL ASSETS 255,520 251,664
Financial liabilities
Financial liabilities measured Payables 12 1,996 4,063 at amortised cost
TOTAL FINANCIAL LIABILITIES 1,996 4,063
The total amount of financial assets disclosed here excludes statutory amounts (i.e. GST input tax credits recoverable).
The total amount of financial liabilities disclosed here excludes statutory payables (i.e. taxes payable, mandatory Superannuation Guarantee Charges and WorkCover levies).
(ii) Net holding gain / (loss) on financial instruments by category
2015 2016 20142015 NOTE $ 000 $ 000
Financial assets
Cash and cash equivalents and available for sale investments - 2(b) 1,553 1,650 interest revenue
Available for sale investments - dividends and distributions 2(b) 11,117 14,787
Available for sale investments – impairment loss 16(d) (1,616) (2,124)
Available for sale investments - realised gain/(loss) 16(d) 3,536 2,328
Available for sale investments - unrealised gain/(loss) 16(d) (1,017) (987)
TOTAL NET HOLDING GAIN 13,573 15,654
Annual Report 2015-2016 89 NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
(b) Credit risk a large number of customers. Trade Investments are managed in debtors are normally received within accordance with the GMCT’s Credit risk arises from the financial thirty days of the end of the month. Investment Policy, which stipulates, assets of GMCT which comprise cash Sundry debtors terms range where applicable minimum credit and cash equivalents, trade and other up to a maximum of six months. ratings. The investment policy is receivables and available for sale reviewed regularly by management investments. The exposure to credit In addition, management reviews on in conjunction with independent risk arises from the potential default an ongoing basis the aged analysis investment advisors. GMCT uses of counter party on their contractual of receivables to assess the quality of external advisers to manage most obligations resulting in financial loss them and apply any action required to of the funds allocated as available- to GMCT. ensure the collectability of the debts. for-sale financial assets. Credit risk is measured at fair value Based on successful past experience The total funds invested are spread and is monitored on a regular basis. in managing the credit risk on between reputable and experienced receivables, GMCT has assessed external managers and a range of (i) Policy on managing credit risk this risk as low. financial institutions. This mitigates GMCT does not have any material Management has assessed the the credit risk on this class of financial credit risk exposure to a single debtor credit risk associated with cash assets, due to the nature of the effects or group of debtors. and cash equivalents as minimal. of diversification. The amounts are allocated to reputable In respect of receivables, GMCT financial institutions which have high minimises concentrations of credit credit ratings. risk by undertaking transactions with
(ii) Maximum exposure to credit risk
GMCT’s maximum exposure to credit risk at balance date in relation to each class of financial asset is represented below.
CARRYING CARRYING AMOUNT AMOUNT 2016 2015 ACCOUNT BALANCE NOTE $ 000 $ 000
Financial assets
Cash and cash equivalents 5 6,708 4,959
Available for sale investments - current 7 40,000 47,000
Receivables 6 3,598 2,932
Available for sale investments - non-current 7 205,214 196,773
TOTAL FINANCIAL ASSETS 255,520 251,664
90 Notes to the Financial Statements NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
(iii) Credit quality of contracted financial assets that are neither past due, nor impaired
FINANCIAL FINANCIAL OTHER INSTITUTIONS INSTITUTIONS (CREDIT RATING (AAA TO AA (A CREDIT A OR LESS OR CREDIT RATING) RATING) NOT RATED) TOTAL $ 000 $ 000 $ 000 $ 000
2016
Cash and cash equivalents:
Cash on hand - - 2 2 Cash at bank 6,706 - - 6,706
Receivables - - 3,598 3,598
Other financial assets:
Interest bearing investments 101,163 - 256 101,419 Managed share/units portfolio 226 - 143,569 143,795
108,095 - 147,425 255,520
2015
Cash and cash equivalents:
Cash on hand - - 3 3
Cash at bank 4,956 - - 4,956
Receivables - - 2,932 2,932
Other financial assets:
Interest bearing investments 123,189 - 236 123,425 Managed share/units portfolio 250 - 120,098 120,348
128,395 - 123,269 251,664
The total amount of financial assets disclosed here excludes statutory amounts (i.e. GST input tax credits recoverable).
Annual Report 2015-2016 91 NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
(iv) Ageing analysis of financial assets
PAST DUE BUT NOT IMPAIRED NOT PAST DUE IMPAIRED CARRYING AND NOT LESS THAN 1-3 3 MONTHS 1-5 FINANCIAL AMOUNT IMPAIRED 1 MONTH MONTHS - 1 YEAR YEARS ASSETS $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
FINANCIAL ASSETS 2016
Cash and cash equivalents:
Cash on hand 2 2 - - - - - Cash at bank 6,706 6,706 - - - - -
Receivables 3,598 3,006 187 409 - - (4)
Other financial assets:
Interest bearing 101,419 101,419 - - - - - investments
Managed share/ 143,795 143,795 - - - - - units portfolio
TOTAL 255,520 254,928 187 409 - - (4)
FINANCIAL ASSETS 2015
Cash and cash equivalents:
Cash on hand 3 3 - - - - - Cash at bank 4,956 4,956 - - - - -
Receivables 2,932 2,350 554 12 16 - -
Other financial assets:
Interest bearing 123,425 123,425 - - - - - investments
Managed share/ 120,348 120,348 - - - - - units portfolio
TOTAL 251,664 251,082 554 12 16 - -
Contractual financial assets that are either past due or impaired
There are no material financial assets which are individually determined to be impaired. Currently GMCT does not hold any collateral as security nor credit enhancements relating to its financial assets.
There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at their carrying amounts as indicated. The ageing analysis table above discloses the ageing only of contractual financial assets that are past due but not impaired.
92 Notes to the Financial Statements NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
(c) Liquidity risk for investment to meet longer term regarding the cash flow position and perpetual maintenance requirements. cash flow forecasts. GMCT believes Liquidity risk arises if GMCT is unable that this policy ensures sufficient to meet obligations associated with its GMCT manages liquidity risk by funds are held to allow for the financial liabilities when they fall due. monitoring cash flows to ensure proper administration of GMCT’s sufficient funds are maintained in responsibilities. (i) Policy on managing its operating bank account to meet liquidity risk liabilities as they fall due. This is GMCT has assessed this risk as minimal done whilst ensuring that surplus considering the positive current GMCT’s objectives in managing liquidity funds are invested. position of current assets compared risk are to ensure that all obligations with its current liabilities and its cash will be met as they fall due, while Daily monitoring occurs, with monthly flow generated from operations. ensuring maximum funds are available reports delivered to management
(ii) Maximum exposure to liquidity risk
The maximum exposure to liquidity risk is the carrying amounts of financial liabilities as follows:
CARRYING CARRYING AMOUNT AMOUNT 2016 2015 $ 000 $ 000
Financial liabilities
Payables 1,996 4,063
TOTAL 1,996 4,063
Maturity analysis of financial liabilities
The following table sets out the contractual maturity analysis for financial liabilities at reporting date.
MATURITY DATES
CARRYING NOMINAL LESS THAN 1-3 3 MONTHS 1-5 AMOUNT AMOUNT 1 MONTH MONTHS - 1 YEAR YEARS $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
2016
Payables 1,996 1,996 1,996 - -
TOTAL 1,996 1,996 1,996 - -
2015
Payables 4,063 4,063 4,063 - - -
TOTAL 4,063 4,063 4,063 - - -
The amounts disclosed above are the contractual, undiscounted cash flows for each class of financial liabilities.
Annual Report 2015-2016 93 NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
(d) Market risk exposure GMCT’s exposure to market risk is overseas investments back to the through currency risk, interest rate Australian dollar. Currency hedging GMCT has diversified investments risk, and other price related risks. is implemented through the use of across a range of markets and sectors, Objectives, policies and processes forward foreign exchange contracts. including investments in the Australian used to manage each of these risks and international share markets, are as follows: in order to fund redemption of (ii) Interest rate risk and policy pre-paid fees and long-term perpetual on managing interest risk maintenance obligations. (i) Currency risk and policy on managing currency risk Available for Sale Investments These markets are subject to volatility. The objective of managing interest GMCT’s exposure to foreign currency rate risk is to minimise and control It is accepted that the share market risk arises mainly from our investments the risks of losses due to interest is cyclical and that there is inherent held in overseas shares and listed volatility. property trusts. rate changes and to take advantage of potential profits. GMCT has appointed external GMCT manages its currency risk by investment advisors to manage its appointing experienced external Interest risk is managed by diversifying investment portfolio. Investments managers to manage these investments investments in a range of securities are managed in accordance with our on its behalf and diversifying the including investments with fixed investment policy, which stipulates allocation of the investment in shares interest rates, floating interest rates asset allocation ranges to diversify of overseas companies, which operate and CPI linked bonds. and mitigate risk. in economies throughout Europe, the Financial Liabilities The investment policy is reviewed United States of America and Asia. Exposure to interest rate risk is regularly by management in To minimise volatility in overseas conjunction with our independent minimal as GMCT does not hold investments due to fluctuations in any interest-bearing liabilities. investment advisors. The performance foreign currency exchange rates, Given this insignificant risk, details of investments and the investment our investment managers hedge are not disclosed below. managers is monitored regularly by a proportion of the exposure to management.
INTEREST RATE EXPOSURE WEIGHTED AVERAGE FIXED VARIABLE NON-
EFFECTIVE CARRYING INTEREST INTEREST INTEREST INTEREST AMOUNT RATE RATE BEARING RATE % $ 000 $ 000 $ 000 $ 000
FINANCIAL ASSETS 2016
Cash and cash equivalents:
Cash on hand - 2 - - 2 Cash at bank 1.88% 6,706 - 6,706 -
Receivables - 3,598 - - 3,598
Other financial assets
Interest bearing investments 3.29% 101,419 40,000 61,419 - Managed share/units portfolio 143,795 - - 143,795
TOTAL 255,520 40,000 68,125 147,395
94 Notes to the Financial Statements NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
INTEREST RATE EXPOSURE WEIGHTED AVERAGE FIXED VARIABLE NON-
EFFECTIVE CARRYING INTEREST INTEREST INTEREST INTEREST AMOUNT RATE RATE BEARING RATE % $ 000 $ 000 $ 000 $ 000
FINANCIAL ASSETS 2015
Cash and cash equivalents:
Cash on hand - 3 - - 3 Cash at bank 2.25% 4,956 - 4,956 -
Receivables - 2,932 - - 2,932
Other financial assets
Interest bearing investments 3.55% 123,425 47,000 76,425 - Managed share/units portfolio - 120,348 - - 120,348
TOTAL 251,664 47,000 81,381 123,283
(iii) Other market risk and policy through different sectors within The sensitivities presented are: on managing other market risk the market in accordance with our investment parameters (including A shift of -0.5 per cent and +0.5 Exposure to other price risk arises due ethical guidelines). per cent (2015: -0.5 per cent and to the inherent risk associated with the +0.5 per cent) in market interest possibility of a fall in the market value rates (AUD) from year-end rates. (iv) Sensitivity Analysis on Other of available for sale financial assets. Price Risk A parallel shift of -5 per cent and GMCT’s objective in managing other +5 per cent (2015: -5 per cent and Taking into account past performance, price (primarily equity market) risk +5 per cent) in the price from future expectations, economic is to minimise negative impacts on year-end rates. forecasts, and management’s investment value due to the volatility knowledge and experience of the of the stock markets. The following table describes the financial markets, GMCT has estimated impact on net operating result and GMCT has appointed external, that the movements presented below equity for each category of financial independent investment managers are reasonably possible in the forth instrument held by GMCT at year end to monitor the value and volatility coming 12 months. if changes in the relevant risk occur. of our stock market investments. This sensitivity analysis has been The investment managers are prepared for the next 12 months. expected to manage this risk, through Management does not consider that the appropriate diversification of it is possible to reasonably estimate specific stocks and diversification the variables used over a period longer than for 12 months.
Annual Report 2015-2016 95 NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
INTEREST RATE RISK OTHER PRICE RISK
-0.5% +0.5% -5% +5%
CARRYING NET NET NET NET AMOUNT RESULT EQUITY RESULT EQUITY RESULT EQUITY RESULT EQUITY $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
2016
Financial assets
Cash and cash 6,708 (34) (34) 34 34 - - - - equivalents:
Receivables 3,598 ------
Other financial assets
Interest bearing 101,419 (507) (507) 507 507 - - - - investments
Managed share/ 143,795 - - - - (7,190) (7,190) 7,190 7,190 units portfolio
Financial liabilities
Payables (1,996) ------
TOTAL 253,524 (541) (541) 541 541 (7,190) (7,190) 7,190 7,190
2015
Financial assets
Cash and cash 4,959 (25) (25) 25 25 - - - - equivalents:
Receivables 2,932 ------
Other financial assets
Interest bearing 123,425 (617) (617) 617 617 - - - - investments
Managed share/ 120,348 - - - - (6,017) (6,017) 6,017 6,017 units portfolio
Financial liabilities
Payables (4,063) ------
TOTAL 247,601 (642) (642) 642 642 (6,017) (6,017) 6,017 6,017
(e) Fair value Level 2 – the fair value is determined GMCT considers that the carrying amount of financial instrument assets The fair values and net fair values using inputs other than quoted prices that are observable for the and liabilities recorded in the financial of financial instrument assets and statements to be a fair approximation liabilities are determined as follows: Financial asset or liability, either directly or indirectly; and of their fair values, because of the short-term nature of the financial Level 1 – the fair value of financial instruments and the expectation that instruments with standard terms Level 3 – the fair value is determined they will be paid in full. and conditions and traded in active in accordance with generally accepted pricing models based liquid markets are determined with The following table shows that the on discounted cash flow analysis reference to quoted market prices; fair values of the contractual financial using unobservable market inputs. assets and liabilities are the same as the carrying amounts.
96 Notes to the Financial Statements NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
Comparison between carrying amount and fair value:
CARRYING FAIR CARRYING FAIR AMOUNT VALUE AMOUNT VALUE 2016 2016 2015 2015 $ 000 $ 000 $ 000 $ 000
Financial Assets
Cash & cash equivalents 6,708 6,708 4,959 4,959
Receivable 3,598 3,598 2,932 2,932
Available for sale investments 245,214 245,214 243,773 243,773
TOTAL FINANCIAL ASSETS 255,520 255,520 251,664 251,664
Financial liabilities
Payables 1,996 1,996 4,063 4,063
TOTAL FINANCIAL LIABILITIES 1,996 1,996 4,063 4,063
Financial assets measured at fair value:
FAIR VALUE MEASUREMENT AT END OF REPORTING PERIOD USING: CARRYING AMOUNT LEVEL 1* LEVEL 2* LEVEL 3 $ 000 $ 000 $ 000 $ 000
2016
Available for sale investments
Interest bearing investments 101,419 - 101,419 -
Managed share/units portfolio 143,795 22,084 121,711 -
TOTAL FINANCIAL ASSETS 245,214 22,084 223,130 -
2015
Available for sale investments
Interest bearing investments 123,425 - 123,425 - Managed share/units portfolio 120,348 27,353 92,995 -
TOTAL FINANCIAL ASSETS 243,773 27,353 216,420 -
* There are no significant transfers between Level 1 and Level 2.
Annual Report 2015-2016 97 NOTE 19: FINANCIAL INSTRUMENTS (CONTINUED)
There have been no transfers between Listed securities and therefore the net asset value of levels during the period. these funds may be used as an input The listed share assets are valued at into measuring their fair value. The fair value of the financial assets fair value with reference to a quoted and liabilities is included at the amount (unadjusted) market price from an In measuring this fair value, the net at which the instrument could be active market. The GMCT categorises asset value of the funds is adjusted, as exchanged in a current transaction these instruments as Level 1. necessary, to reflect restrictions and between willing parties, other than redemptions, future commitments in a forced or liquidation sale. Managed funds and other specific factors of the funds. In measuring fair value, consideration The following methods and assumptions GMCT invests in managed funds which is also paid to any transaction in the were used to estimate fair value: are not quoted in an active market and shares of the fund. which may be subject to restrictions on redemptions. GMCT considers the Depending on the nature and level of valuation techniques and inputs used adjustments needed to the net asset in valuing these funds as part of its due value and the level of trading of the diligence prior to investment, to ensure Trust, GMCT classifies these funds as they are reasonable and appropriate either Level 2 or Level 3.
NOTE 20: COMMITMENTS
2016 2015 $ 000 $ 000
Capital expenditure commitments
Land and buildings 337 1,721
Plant and equipment 2,274 290
Intangible assets 380 400
Inventories 9,224 2,506
Total capital commitments 12,215 4,917
Operating expenditure commitments
Maintenance and operating 4,063 2,367
Administrative - 72
Total operating expenditure commitments 4,063 2,439
Lease Commitments
Operating Leases 208 275
Total lease commitments 208 275
Capital expenditure commitments
Not longer than 1 year 12,215 4,917
Longer than 1 year and not longer than 5 years - -
Longer than 5 years - -
Capital expenditure commitments 12,215 4,917
98 Notes to the Financial Statements NOTE 20: COMMITMENTS (CONTINUED)
2016 2015 $ 000 $ 000
Operating expenditure commitments
Not longer than 1 year 1,994 976
Longer than 1 year and not longer than 5 years 2,069 1,463
Longer than 5 years - -
Total operating expenditure commitments 4,063 2,439
Operating lease commitments
Not longer than 1 year 67 67
Longer than 1 year and not longer than 5 years 141 208
Longer than 5 years - -
Total operating lease commitments 208 275
Operating leases
The operating lease rental is for photocopiers.
Finance leases
GMCT did not have any finance lease commitments as at 30 June 2016 (2015: NIL).
NOTE 21: CONTINGENT ASSETS AND CONTINGENT LIABILITIES
There were no quantifiable or non-quantifiable contingent assets or contingent liabilities at the reporting date (2015: NIL).
NOTE 22: PERPETUAL MAINTENANCE
GMCT has an obligation under the GMCT previously received independent arise under the accounting standards Cemeteries and Crematoria Act 2003 advice in relation to the forecasted and accordingly has not recognised (the Act) to manage and maintain perpetual maintenance obligations, per a value for this obligation in these each public cemetery for which it site, and is conducting further analysis. financial statements. is responsible. At this time, GMCT is aware that GMCT has, nevertheless, created As stated in Section 12A of the Act, there will be significant ongoing cash a reserve, which is cash and in exercising its functions, GMCT outflows for future expenditure on investment-backed, as a source must have regard to its obligations perpetual maintenance of each public of future contributions towards its in relation to the funding of the cemetery but is unable to calculate a perpetual maintenance obligations, perpetual maintenance of each sufficiently reliable estimate of any which is disclosed as a Perpetual public cemetery. related present obligation which may Maintenance Reserve in Note 16(c).
Annual Report 2015-2016 99 NOTE 23: RESPONSIBLE PERSONS DISCLOSURE
In accordance with the Ministerial Direction issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting year. Remuneration of Ministers is disclosed in the financial report of the Department of Premier and Cabinet.
The following were responsible persons for the entire period unless stated.
RESPONSIBLE MINISTER PERIOD
The Honourable Jill Hennessy Commenced December 2014 Minister for Health
GOVERNING BOARD (THE TRUST) PERIOD
Commenced as Chair 1 March 2016 Geoffrey Mabbett (Chair) (Trust member since 1 March 2013)
Ceased as Chair 29 February 2016 Dianne Rule (Chair) (Remains as Trust member since 1 March 2013)
Elizabeth Beattie Commenced 1 March 2016
David Cragg Commenced 1 March 2016
Dana Hlavacek Commenced 1 March 2016
Jennifer Kearney Commenced 1 March 2010
Ronda Jacobs Ceased 29 February 2016
John Jennison Ceased 29 February 2016
Kim McAliney Commenced 1 March 2013
Roma O’Callaghan Ceased 29 February 2016
Janice Penney Commenced 1 March 2010
Jack Wegman Commenced 1 September 2014
ACCOUNTABLE OFFICER PERIOD
Jacqui Weatherill (Chief Executive Officer) Commenced 16 January 2012
100 Notes to the Financial Statements NOTE 23A: REMUNERATION OF RESPONSIBLE PERSONS
The number of Responsible Persons is shown in the relevant income bands.
2016 2015
TOTAL BASE TOTAL BASE INCOME BAND REMUNERATION REMUNERATION REMUNERATION REMUNERATION
$0 - $9,999 5 6 1 1
$10,000 - $19,999 6 5 8 8
$20,000 - $29,999 1 1 1 1
$260,000 - $269,999 - 1 - 1
$290,000 - $299,999 1 - 1 -
13 13 11 11
TOTAL REMUNERATION RECEIVED OR DUE AND RECEIVED BY RESPONSIBLE $410,052 $386,192 $449,953 $394,729 PERSONS FROM THE REPORTING ENTITY AMOUNTED TO:
Annual Report 2015-2016 101 NOTE 23B: DISCLOSURES TO REMUNERATION
Executive Officers’ Remuneration The number of executive officers with remuneration in excess of $100,000, other than Ministers and Accountable Officers, and their total remuneration during the reporting year are shown in the table below in their relevant income bands.The base remuneration of executive officers is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits.
2016 2015
TOTAL BASE TOTAL BASE INCOME BAND REMUNERATION REMUNERATION REMUNERATION REMUNERATION
$100,000 – $109,999 - - - 1
$110,000 – $119,999 - - 1 -
$160,000 - $169,999 - 1 - -
$170,000 - $179,999 1 - - 1
$180,000 - $189,999 - 1 1 -
$200,000 - $209,999 1 1 - 1
$220,000 - $229,999 1 - 1 -
3 3 3 3
TOTAL ANNUALISED 3.00 3.00 3.00 3.00 NUMBERS (i)
TOTAL REMUNERATION IN EXCESS OF $100K FOR $609,155 $555,003 $537,953 $491,226 THE PERIOD:
(i): Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period.
NOTE 23C: REMUNERATION TO OTHER PERSONNEL
There were no contractors charged with significant management responsibilities receiving total expenses in excess of $100,000 (2015: NIL).
102 Notes to the Financial Statements NOTE 24: RELATED PARTY TRANSACTIONS
Related party transactions during the reporting year ended 30 June 2016 were NIL (2015: NIL).
Related party balances payable/receivable as at 30 June 2016 were NIL (2015: NIL).
NOTE 25: EX-GRATIA EXPENSES
During the reporting year ex-gratia expenses amounted to NIL (2015: NIL).
NOTE 26: EVENTS OCCURRING AFTER THE REPORTING PERIOD
There have been no events that have occurred subsequent to 30 June 2016 which would, in the absence of disclosure, cause the financial statements to become misleading.
Annual Report 2015-2016 103 DISCLOSURE INDEX
The annual report of The Greater Metropolitan Cemeteries Trust is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the department’s compliancewith statutory disclosure requirements.
LEGISLATION REQUIREMENT PAGE REFERENCE
MINISTERIAL DIRECTIONS
REPORT OF OPERATIONS
Charter and purpose
FRD 22G Manner of establishment and the relevant ministers 26
FRD 22G Objectives, functions, powers and duties 26
FRD 22G Initiatives and key achievements 9-23
FRD 22G Nature and range of services provided 27
Management and structure
FRD 22G Organisational structure 14
Financial and other information
FRD 10A Disclosure index 104-105
FRD 11A Disclosure of ex-gratia expenses 103
FRD 12A Disclosure of major contracts 46-47
FRD 21B Responsible person and executive officer disclosures 100-101
FRD 22G Application and operation of Protected Disclosure Act 2012 38
FRD 22G Compliance with building and maintenance provisions of Building Act 1993 38
FRD 22G Details of consultancies over $10,000 46-47
FRD 22G Details of consultancies under $10,000 46
FRD 22G Employment and conduct principles 43
FRD 22G Major changes or factors affecting performance 48
FRD 22G Occupational health and safety 40
FRD 22G Operational and budgetary objectives and performance against objectives 48
FRD 24C Reporting of office-based environmental impacts 24, 41
FRD 22G Significant changes in financial position during the year 25
FRD 22G Statement of availability of other information 39
FRD 22G Statement on National Competition Policy 38
104 Disclosure Index LEGISLATION REQUIREMENT PAGE REFERENCE
FRD 22G Subsequent events 103
FRD 22G Summary of the financial results for the year 25, 48
FRD 25B Victorian Industry Participation Policy disclosures 38
Workforce data disclosures including a statement on the application of FRD 29A 42-43 employment and conduct principles
SD 4.2(g) Specific information requirements 2-3
SD 4.2(j) Sign-off requirements 5
SD 4.5.5 Risk management compliance attestation 5
Financial Statements
Financial statements required under Part 7 of the FMA
SD 4.2(a) Statement of changes in equity 56
SD 4.2(b) Comprehensive operating statement 54
SD 4.2(b) Balance sheet 55
SD 4.2(b) Cash flow statement 57
Other requirements under Standing Direction 4.2
Compliance with Australian Accounting Standards and other SD 4.2(a) 50 authoritative pronouncements
SD 4.2(c) Accountable officer’s declaration 50
SD 4.2(c) Compliance with ministerial directions 59
SD 4.2(d) Rounding of amounts 67
Legislation
Freedom of Information Act 1982 38
Protected Disclosure Act 2012 38
Victorian Industry Participation Policy Act 2003 38
Building Act 1993 38
Financial Management Act 1994 50
Annual Report 2015-2016 105 For further information please contact us at:
Address (head office): 1187 Sydney Road, Fawkner VIC 3060
Mail: P.O. Box 42 Fawkner VIC 3060
1300 022 298 03 9355 3111 [email protected]
www.gmct.com.au
ABN 89 704 536 022