Rottnest Island Authority Annual Report 2008-2009 Experience Rottnest Island Rottnest Experience

Rottnest Island Authority – Annual Report 2008-2009  Rottnest Island Authority Island Rottnest 2008-2009 Report Annual

Hon. Dr Elizabeth Constable MLA Minister for Tourism

In accordance with section 63 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament the Annual Report of the Rottnest Island Authority for the year ended 30 June 2009.

The report has been prepared in accordance with the provisions of the Financial Management Act 2006.

Laurie O’Meara AM Sue Murphy CHAIRMAN DEPUTY CHAIR

17 September 2009 17 September 2009

Experience Rottnest Island Rottnest Experience - -

 Rottnest Island Authority – Annual Report 2008-2009 Table Of Contents

CHAIRMAN’S REVIEW...... 4

CHIEF EXECUTIVE OFFICER’S SUMMARY...... 6

AGENCY OVERVIEW...... 9

Rottnest Island Management Plan...... 9

Operational Structure...... 9

Performance Management Framework...... 11

AGENCY PERFORMANCE...... 11

Financial Summary...... 11

Key Performance Indicator Summary...... 14

Service Area 1 – Recreational and Holiday Services...... 15

Service Area 2 – Natural Environment and Cultural Heritage Management...... 19

ROTTNEST ISLAND MANAGEMENT PLAN 2009–14...... 25

SUSTAINABILITY...... 26

INVOLVING THE COMMUNITY...... 27

ABORIGINAL RECONCILIATION AND ECONOMIC OPPORTUNITIES...... 29

SIGNIFICANT ISSUES IMPACTING THE AGENCY...... 30

DISCLOSURES AND LEGAL COMPLIANCE...... 32

Certification of Financial Statements...... 34

Key Performance Indicators...... 67

Other Financial Disclosures...... 74

Governance Disclosures...... 76

Other Legal Requirements...... 78

Government Policy Requirements...... 80

ACKNOWLEDGEMENTS...... 82

Rottnest Island Authority – Annual Report 2008-2009  Chairman’s Review

The year under review has seen the An important difference in this RIMP completion of the major refurbishment from any of its predecessors is that of the Rottnest Island Authority’s 299 it is costed. If a proposal is not within accommodation units which provide the financial capacity of the RIA, it around 1,600 beds in a variety of is noted as requiring private funding styles and prices. A carefully costed support. There are therefore a number reserve fund will now ensure a ten-year of exciting possibilities for public/ maintenance program. This will mean private partnerships identified within a Sydney Harbour bridge approach the RIMP. – as soon as we finish on one end, we An historic event occurred on the start again on the other. Island on 25 February 2009 when It is pleasing to note that the private the Authority’s Reconciliation Action sector has gained confidence from Plan (RAP) was launched. This event the upgrade steps taken by the requirement of the Rottnest Island on Heritage Common where some Rottnest Island Authority (RIA or the Authority Act 1987 to have in place a 150 people stood in steady rain, Authority) and this is best evidenced five-year plan. An essential element of was a most moving one. The theme, by the new Dome, Hotel Rottnest, both the preparation and finalisation of embraced by both Aboriginal and Aristos Waterfront and the smart such a Plan was community input. non-Aboriginal people present was, upgrade of its ferry fleet by Rottnest From a call for ideas and suggestions, recognising the sad past; looking to Express. An exciting extension of the Authority members and staff spent the future together. The RAP is an this has been the establishment of a many hours of discussion with drafts integral part of the Rottnest Island dynamic cooperative venture known and re-drafts to produce a document Management Plan 2009-14, providing as Team Rottnest which combines the which with as much publicity as we a positive structure and framework to skills, talents and investments into could muster, was put out for public collaboratively manage the Island in a the Island by the business community comment and feedback. Every culturally appropriate way, providing and the RIA. The group has set itself effort was made to ensure that this economic opportunities for Aboriginal initial goals of maximising the dollar consultation was as inclusive as people through tourism and related spend on marketing the Island as a possible. pursuits. preferred holiday destination, ensuring Some 203 responses were received Although the five-year period consistent levels of customer service and these were processed by addressed by the RIMP is required and in all ways working together to the RIA staff and supervised by a by legislation and is seen as an enhance the visitor experience. An probity auditor to ensure that every important directive; a proposal in the essential element of this initiative is to submission was fairly considered. RIMP provides for the preparation develop ways of mitigating the “Blotto From this process, the final document of a 20-year strategic vision. The on Rotto” style of hooliganism to was presented to the Minister, the issue of Rottnest Island‘s capacity ensure that the Island remains a haven Hon. Dr Elizabeth Constable MLA, for and environmental sustainability will for families and all sectors of the her endorsement. It was gazetted on obviously be a focus. community having fun-filled, restful and 1 July 2009. safe holidays together. The Rottnest In similar vein is the decision to review Island police are very supportive of There are 25 initiatives in this RIMP the Rottnest Island Authority Act this initiative. which has been entitled “Revitalised 1987. We are now twenty years on and Moving Forward”. I commend and with community input we see a The big news of the year is the it and urge all persons interested in need to ensure that the Act gives both development of the Rottnest Island Rottnest Island to obtain a printed the protection and direction needed to Management Plan (RIMP) for the copy or check on our website support the Island’s development for next five years – 2009-2014. It is a www.rottnestisland.com. the next twenty years.

 Rottnest Island Authority – Annual Report 2008-2009 The event on Heritage Common where some 150 people stood in steady rain, was a most moving one.

It would be very remiss of me not to acknowledge and thank the many volunteers who work tirelessly to make a Rottnest holiday or one day visit an experience to remember. Without singling out specific groups I include tour information, physical maintenance, revegetation, expert advice through advisory committees, and the list goes on. Without this support holidays on Rottnest would be less enjoyable.

The opportunity for some development It is a comfort to reach a point in the of further accommodation is economic cycle where we can attract outlined in the RIMP. These include and retain high calibre staff. Our Chief the continuation of the provision of Executive Officer Paolo Amaranti an accommodation hotel at Mount is now very ably supported by high Herschel, further units adjacent to quality staff and this is best illustrated the Hotel Rottnest and a new camp by the improved performance results ground facility at South Thomson. which are evident in this report. These and any similar developments On behalf of the members of the will be subject to close scrutiny Authority I congratulate Paolo on being on the grounds of environmental appointed for a further five-year term sustainability; and an opportunity and thank him and all of his staff for will be given for the community to the notable achievements during the comment on their size and scale. year under review.

During this year a change of government saw a change of Minister. I thank Sheila McHale for her support and welcome the Hon. Dr Elizabeth Constable who has quickly shown a Laurie O’Meara AM strong and informed interest in Rottnest CHAIRMAN Island and has already proven to be a valuable guide to our endeavours.

It has been a busy and satisfying year and I wish to record my sincere appreciation to the members of the Authority for their valuable input and support. We were fortunate during the latter part of the year to be joined by Geoff Totterdell. Geoff brings years of corporate and financial experience at the highest level and will be known to many in Perth’s business circles as an astute, forward-thinking professional.

Rottnest Island Authority – Annual Report 2008-2009  Chief Executive Officer’s Summary

The 2008-09 financial year has been The increase in visitors was also one of consolidation and setting new reflected in accommodation bookings directions for the immediate future with an increase by 1.3 per cent to within a long term vision of maintaining 26,955 compared with the previous and enhancing Rottnest Island for the financial year, and the average length people of Western Australia and other of stay also showed a slight increase. visitors. Total revenue for accommodation Achievements services increased by 11 per cent to $13 million compared with the Financial Sustainability previous year’s result of $11.7 million. The RIA has applied significant effort Visitor Experience towards addressing the financial Accommodation Upgrades sustainability of Rottnest Island over A new method of capturing feedback the last four years. A net loss has from our visitors, and monitoring Final improvements under a $21 been reduced from $4.9 million in satisfaction levels was introduced million five-year program to refurbish 2004-05, $3.2 million in 2005-06 and in the latter quarter of the year. The accommodation were completed $0.9 million in 2006-07 into a $0.5 results show that 96 per cent of during the year. These included million profit in 2007-08 and $0.9 visitors to the Island considered that upgrading 28 units at Central million profit in 2008-09. their experience had either met or Thomson, the Light Keepers Cottages exceeded their expectations. at Bathurst, 8 Governor’s Circle The Authority determined that there units and the Sergeant’s mess at would be no CPI increases to the While this is an outstanding result, we Kingstown. The Kingstown Barracks 2009-10 expenditure budgets. believe it is essential that continuing were also refurbished. A Treasury requirement to further effort is applied to meeting and reduce expenditure budgets by 3 exceeding visitor expectations. An annual $500,000 maintenance program will be replaced by a per cent combined with a 3 per cent In preparation for the next financial $2 million annual rolling maintenance increase in revenue targets represents year, a review of operations has and refurbishment fund starting in a 7.9 per cent reduction in the resulted in a flatter management 2009-10. Authority’s expenditure budgets for structure. A new management 2009-10 in real terms. position - that of Manager of Holiday Refurbishments to 28 Caroline Services has been introduced. A key Thomson cabins included new beds Visitor Numbers component of the role is to manage and mattresses, furnishings, cooking A five year decline in visitor numbers visitor experience with the clear goal facilities and partial repaints. was reversed in 2006-07 and visitor of exceeding expectations, and to numbers in the 2008-09 period encourage our visitors to make the Private Business Partnerships climbed to the highest ever recorded. most of their Island getaway. Investment by private business into the During the year 52,668 staff and Our focus on continuous business Island has paid off during the year with contractor daily commuters, together improvement has highlighted a the Domé outlet on Rottnest Island with tourism familiarisation and other need to improve our cleaning reported as Australia’s best performing business-related visitors brought the standards, particularly in our holiday Domé franchise in 2008-09. total number of ferry arrivals accommodation. As an integral part of Similarly, there has been a dramatic to 413,386. holiday enjoyment, improving cleaning increase in patronage of the new and standards will be a major focus for the improved areas of Hotel Rottnest 2009-10 financial year. providing visitors with outstanding

 Rottnest Island Authority – Annual Report 2008-2009 A five year decline in visitor numbers was reversed in 2006-07 and visitor numbers in the 2008-09 period climbed to the highest ever recorded.

spaces to enjoy the beautiful vistas Effective management and protection 4 July 2009. The “user pays” basis of back over the ocean to the Perth city of the marine and terrestrial the increases brings entry fees to the skyline, whilst enjoying an excellent environment is imperative to ensure Island into line with other local tourism range of food and beverage options. long term sustainability and a sense of destinations such as Perth Zoo. place for the visitor. Aristos Waterfront opened in the latter Numerous volunteers provide a highly months of the year with exceptional Environmental programs include valued and generous contribution 180 degree views and a variety of the conservation and protection of and dedication to improvement of the seafood delicacies in addition to groundwater, landforms, vegetation, environment on Rottnest Island. During first class fish and chips, providing a fauna, and marine habitats. Park the year 1,160 volunteers provided welcome and appropriate addition to service programs include visitor risk 27,500 hours of their time to benefit the variety of food choices on management and safety, terrestrial the natural and cultural environments. the Island. and marine facilities management, education and compliance. Custodians of Culture A new level of cooperation between and Social Capital the RIA and the Rottnest Island Extension programs focus on raising Business Community has seen the awareness and appreciation of the A $3 million program of works and formation of Team Rottnest, a dynamic natural environment by facilitating activities during the year reflect the group whose main objective is to scientific research, volunteer RIA’s responsible stewardship role improve the visitor experience. coordination, visitor education of the Island’s built environment. A and interpretation. These are key further $2.3 million has been spent on Significant investment in the ferry strategies to provide visitors to the conservation of the former Governor’s fleet has improved standards of the Island with a strong sense of place. Residence (Hotel Rottnest). Stage one ferry services to the Island. Rottnest has reinstated this significant building Express has invested significant Key achievements during the year and enhanced the conservation, marketing funds into its “Red Goes include the implementation of sustainable presentation and interpretation of the Faster” campaigns and has added visitor capacity research, concerning the former Governor’s Residence. exciting new product including its eco- Island’s most popular natural and heritage tours and whale watching tours. locations. The first stage of a longitudinal Stabilising works have been completed study was completed by researchers on the Battery Observation Post In a first ever partnership approach from Edith Cowan University. building which operated as part of to destination marketing, a Rottnest the nationally significant 9.2 inch gun Island Business Community Marketing Meeting the costs of maintaining the emplacement at Oliver Hill. The cost Executive has been established to Island’s environment is a key driver of restoration being prohibitive, the drive destination marketing, including behind increases in fees and charges Authority has undertaken to manage the development of new branding to be implemented with effect from the building as a standing ruin. for the Island as a preferred holiday destination. The Authority recognises the cultural significance and sad history that the A Sense of Place – Our Precious Island holds for Aboriginal people, and Environment therefore its position of responsibility to ensure the Island is managed in a The environment is what matters culturally appropriate way. most to our visitors, as confirmed in recent survey results. The natural beauty of the Island, its pristine beaches, relaxation, peace and quiet, were identified as the most important features of Rottnest Island.

Rottnest Island Authority – Annual Report 2008-2009  The Reconciliation Action Plan was We have worked together to care for finalised with the help of a Working a record number of visitors, whose Group which included representatives expectations have been met and from the Noongar Aboriginal exceeded. Considerable time this community and other Aboriginal year has been devoted to seeking people, and launched during the input from stakeholders, including year. It formalises the Authority’s staff, into planning and preparing for commitment to working towards the the next five years, encapsulated in goals of Reconciliation Australia and in the Rottnest Island Management Plan the spirit of the 2008 formal apology. 2009-14. I sincerely thank everyone who has contributed to these The introduction of Wadjemup Bus results and look forward to another tours with cultural content provided successful year in 2009-10. by a wholly Aboriginal owned and operated business in February 2009, was a concrete example of the RIA’s commitment to providing opportunities for Aboriginal employment and economic benefit. Paolo Amaranti I would like to thank the Authority CHIEF EXECUTIVE OFFICER members for their guidance and support during the year. Thank you to our wonderful volunteers for their outstanding effort.

I would also like to recognise the dedication, passion and hard work of my staff who continue to produce results in a climate of unrelenting change. To the families of my staff thank you for your support, especially on those early morning winter days with five metre swells and 40 knot winds!

 Rottnest Island Authority – Annual Report 2008-2009 Agency Overview

Rottnest Island The visitor experience will be enriched Management Plan by providing more recreational opportunities, especially related to the The Rottnest Island Authority Act Island’s natural and cultural environment, 1987 requires the Rottnest Island improving facilities, a focus on improved Authority (RIA or the Authority) to have customer service and measures to a five-year Management Plan to guide control antisocial behaviour on the Island the management and development of to ensure a safe, secure and relaxed the Island including accommodation, holiday environment. visitor facilities and services and conservation of the Island’s natural The new Plan also responds to environment and cultural heritage. the changing external environment including climate change and The Rottnest Island Management Plan economic trends, and looks to the 2003-08 (RIMP 2003-08) as amended, community, both throughout its future with a review of the Rottnest contained 249 recommendations preparation and during public Island Authority Act 1987 and spanning sustainability, Settlement consultation on the draft Plan. developing a twenty-year vision. Area planning, terrestrial environment, The overall direction of Island marine environment, cultural heritage, management was strongly endorsed The Authority will provide updates to holiday and recreation facilities, by the community, with each of the stakeholders every six months, as marine recreation facilities, community nine policy areas and 25 initiatives well as reporting against performance involvement and relations, utilities and receiving support to proceed. Opinion indicators in its Annual Reports to infrastructure and implementation. was more divided on the extent of new measure progress. accommodation and facilities; however The vast majority of those Additional details are provided at a these views were accommodated recommendations were completed or special section on the RIMP 2009-14 through proposed strengthened are ongoing. Implementation of the in this Report. development approval processes to RIMP 2003-08 proceeded in tandem protect the Island from inappropriate with the Island’s accommodation and Operational Structure developments and from the cumulative facilities refurbishment program. This The Rottnest Island Authority is effects of development. was a major achievement for the RIA supported by an organisation to despite the recommendations not The theme of the new Plan is fulfil its functions and implement its having specific funding identified. sustainability and the community was policies and strategies. It is referred assured that environmental, heritage to as the Rottnest Island Authority’s The RIMP 2003-08 did not include and social values will be paramount in Administration. The Administration is cost estimates or funding sources planning and management. The Plan overseen by a Chief Executive Officer and therefore some recommendations underlines the RIA’s commitment to who is supported by a core permanent were aspirational rather than financially Aboriginal reconciliation in accordance staff (105 full-time equivalents) and achievable. This has been addressed with the recently released Rottnest temporary staff engaged to meet in planning the development of the Island Reconciliation Action Plan. A seasonal demand. Rottnest Island Management Plan number of proposals will make sure 2009-14 (RIMP 2009-14). The new During the year, the Administration that an appropriate range and level Plan includes estimated costings and was restructured to reflect the policies of accommodation is provided. A sources of funding with regard to the and strategies of the new Rottnest major financial commitment for a various policies and initiatives. Island Management Plan 2009-14, rolling refurbishment program will and is based on logical corporate The RIMP 2009-14 was developed maintain the improved standard functions. This structure is reflected in over a 12-month period with of accommodation that has been the diagram overleaf. unprecedented input from the achieved in recent years.

Rottnest Island Authority – Annual Report 2008-2009  F

MINISTER FOR TOURISM Hon Dr Elizabeth Constable MLA

ROTTNEST ISLAND AUTHORITY MEMBERS Laurie O’Meara (Chairman)

F MANAGER CHIEF EXECUTIVE MANAGER INTERNAL AUDIT OFFICER MAJOR WORKS Peta Davis Paolo Amaranti Colin Brandis

L

F F F -1 GENERAL MANAGER MANAGER GENERAL MANAGER MANAGER MANAGER MANAGER MANAGER GOVERNANCE & CULTURAL CORPORATE WORKS & CONTRACT HOLIDAY MARINE & ACCOMMODATION PLANNING HERITAGE SERVICES SERVICES SERVICES TERRESTRIAL RESERVE SERVICES Claire Wright Harriet Wyatt Greg Ellson Gary Franklin Vacant Rebecca Carter Jonathan Mason

L - L

Authority Members Other Information Other Committees The Rottnest Island Authority is People from the community and Finance and Audit Committee governed by members appointed by Rottnest Island stakeholders are the Minister for Tourism for terms not This Committee is established under members of advisory committees exceeding three years and members the Rottnest Island Authority Act 1987 which support the work of the may be re-appointed. Members are to assist the Authority to discharge its Authority in an advisory capacity. selected according to their experience responsibilities of overseeing financial During the year the following relevant to the agency’s operations. and related management, compliance committees operated: and corporate governance. The Mr Laurie O’Meara, Chairman of • Rottnest Island Marine Issues Committee comprises two Authority the Authority, has recently been Advisory Committee members, plus an alternative Authority reappointed by the Minister for • Rottnest Island Environmental member, one of whom acts as Tourism for a further two-year term Advisory Committee Chairman, and the Chief Executive concluding on 30 June 2011. Profiles • Rottnest Island Cultural Heritage Officer. The Authority Chairman also of the Authority’s members together Advisory Committee participates as a member of the with details of meeting attendances • Rottnest Island Railway Advisory Committee. The committee met on are provided in the Disclosures and Committee 10 occasions during the year. Legal Compliance section of this • Rottnest Island Tourism Advisory annual report. Committee

10 Rottnest Island Authority – Annual Report 2008-2009 The overall direction of Island management was strongly endorsed by the community.

The Authority is appreciative of The Authority is classified as a Public Shared Responsibilities with the work of these committee Non-Financial Corporation by the Other Agencies members and the many volunteers State Government. This implies that The RIA did not share any key service- who contributed to Rottnest Island the Agency is required to be self- related responsibilities with other throughout the year. funding and not rely on State Budget agencies in 2008-09. However, the funding for its operating expenses. Authority works in partnership with Responsible Minister While this requires the Authority to other Government providers servicing The Hon. Dr Elizabeth Constable MLA, act in a commercial manner in the Rottnest Island including the Western Minister for Tourism. fulfilment of its functions, the Act Australia Police Service, Department does not stipulate profit-maximisation of Health and Department of Education Enabling Legislation and or realisation of commercial rates of Services. Regulations Administered return as its objectives. Rottnest Island Authority Act 1987 Rottnest Island Regulations 1988

A list of other key legislation impacting Rottnest Island Authority’s Outcome Based Management Framework on the Authority’s activities is provided in the Disclosures and Legal Government Goal: Social and Environmental Responsibility Compliance section of this annual Ensuring that economic activity is managed in a socially and environmentally report. responsible manner for the long-term benefit of the State.

Performance ROTTNEST ISLAND SERVICES Management AUTHORITY’S DESIRED KEY PERFORMANCE INDICATORS PROVIDED TO THE Framework OUTCOME COMMUNITY EFFECTIVENESS The Rottnest Island Authority’s Visitor satisfaction with the Rottnet Island Experience. 1. Recreational and performance management framework Health of Rottnest Island’s holiday services. reflects its functions as outlined in the Rottnest Island visitors enjoy natural environment. Rottnest Island Authority Act 1987 recreational and holiday Health of rottnest Island’s Cultural heritage. experiences in healthy natural (the Act), as well as Government EFFICIENCY and cultural environments. Average cost of recreational and holiday 2. Natural Policy through strategic documents services provided per visitor. environment such as the prevailing Rottnest Island Average cost of natural environment and and cultural heritage cultural heritage management per reserve management. Management Plan. The framework hectare. is structured in accordance with the requirements of the Government’s Outcome Based Management Framework for public sector agencies.

During 2007-08 the RIA reviewed its Outcome Based Management Framework to increase the relevance and usefulness of its performance information, and this framework reflects those changes.

Rottnest Island Authority – Annual Report 2008-2009 11 Agency Performance

Rottnest. However, after considering a further requirement to reduce the accounting effects of the Hotel expenditure budgets by 3 per cent. In Rottnest improvements valued at real terms, this represents a 7.9 per $3.8m, a net loss of $2.9 million has cent reduction in the RIA’s expenditure resulted, which largely consists of budgets for 2009-10. Furthermore, Public Service General Agreement revenue targets were increased by salaries increases and increased 5 per cent above expected CPI depreciation charges. increases.

During the financial year the Authority’s A Functional Review has also been cash position decreased by $3.8m undertaken and has resulted in a new due to expenditure on non-commercial organisational structure that will be operations. This expenditure included: implemented during the 2009/10 Financial Year. The new flatter structure Financial Summary • Natural environmental and cultural has resulted in a saving of $224,132. heritage management – $3.0m The Rottnest Island Authority (RIA or • Additional restoration Based on the Strategic Budget the Authority) has applied significant expenditure on the Governor’s Framework developed during 2008-09 effort in addressing the financial Residence – $0.8m the RIA is expected to be financially sustainability of Rottnest Island over sustainable over the five-year period of the last four years, which has seen To continue the RIA’s progress towards the Rottnest Island Management Plan the net loss reduced from $4.9 million financial sustainability by achieving (RIMP) and Strategic Development Plan in 2004-05, $3.2 million in 2005-06 positive cash flows, the Authority has (SDP). The framework is expected to and $0.9 million in 2006-07, into a undertaken a significant assessment deliver over the five year period: $0.5 million profit in 2007-08. The and reprioritising of strategies and 2008-09 result shows a continuation budgetary allocations as approved • Zero draw on the Authority’s cash of this trend with an accounting profit by Government. As a consequence, reserves; of $923,000, largely attributed to the the Authority determined that there • A financial provision for major accounting recognition of the Lessees’ would be no CPI increases to the accommodation refurbishments improvements made to the Hotel 2009-10 expenditure budgets and of $1.5 million per annum and an annual planned maintenance program valued at $0.5 million;

The Strategic Budget Framework is also expected to deliver the following profit/loss and net cash flow positions:

2009-10 2010-11 2011-12 2012-13 2013-14 $’000 $’000 $’000 $’000 $’000 Revenue 35 285 36 877 38 353 39 694 40 884 Expenditure 34 780 36 815 37 776 38 847 40 001 Profit/(Loss) 505 62 577 847 883 Plus depreciation (non-cash item) 4 606 4 743 4 885 5 032 5 183 Cash Increase from Operations 5 109 4 805 5 462 5 879 6 066 Less general capital (3 700) (3 700) (3 700) (3 700) $3 700) Less specific capital Initiatives (210) (400) (100) Less Accommodation Redevelopment Reserve (1 500) (1 500) (1 500) (1 500) (1 500) Net Cash Inflow/(draw) (301) (795) 162 679 866

1 Excluding additional revenue from the recently increased Admission Fees.

12 Rottnest Island Authority – Annual Report 2008-2009 A Functional Review has been undertaken resulting in a new organisational structure.

• Fully funded RIMP and SDP The Strategic Budget Framework Initiatives; assumes the RIA is successful with • Natural environmental and cultural the current Expression of Interest for heritage management funded at outsourcing provision of the Island’s historic levels; and utilities. Should this private investment • Internally funded Capital not eventuate, the Authority will require Expenditure program of an alternative funding source for the $3.7 million p.a. upfront infrastructure compliance requirements. The Authority has significantly challenged itself to address its financial issues.

Actual and forecasted financial performance

45

40

35

$ Millions 30

25

20 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 Financial Year

Revenue Expenditure

Deferred income versus net cash

25

20

15

10 $ Millions

5

0 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12

Net Cash Deferred Income

Rottnest Island Authority – Annual Report 2008-2009 13 The recently approved Rottnest Island Key Performance though a 3 per cent improvement Management Plan 2009-14 (RIMP) is Indicator Summary on last year’s results, still requires focused on financial, environmental work to meet the target set. Revised Overall, the Rottnest Island Authority and social sustainability initiatives. For indicators regarding the state of the performed very well against its targets the first time, the RIMP identifies the natural and cultural environment are in relation to its key performance expected cost and funding source for reported for the first time. While no indicators. The results are each initiative to provide confidence previous comparisons are available, summarised in the table below. The that they are achievable. Striking a comparison to planned achievements suite of indicators has been revised balance between increasing revenue, are reported. High level efficiency this year to measure the Authority’s maintaining accessibility and investing indicators are also reported for the achievements at an ‘outcomes’ level. in the Island’s natural and built assets first time and these provide a baseline The Authority also measures a suite of has been and will continue to be a to measure the Authority’s efficiency at more operational indicators to gauge considerable challenge and a focus for an outcomes level in the future. its performance (some of these are the Authority. provided after the table below). More detailed information regarding A key strategy within the recently the agency’s indicators including Satisfaction with the services approved RIMP is the inclusion targets, trends and results for provided on Rottnest Island by of refurbishment funding for 2008-09 can be found in the the Authority remained high, as accommodation units to ensure Disclosures and Legal Compliance demonstrated by the indicators in sustainability and to eliminate the section of this report. the table below. Visitor satisfaction need for Government bail-out funding with RIA accommodation, even for accommodation refurbishments, as has been past practice. The 10 year refurbishment program is based on a financial provision Summary of Key Performance Indictors Results for major refurbishments of $1.5 2008-09 2008-09 million per annum, to provide the Performance Indicator Target Actual estimated $15 million required for Rottnest Island experience met or exceeded 90% 96% major refurbishments of the RIA’s expectations accommodation inventory. An annual Visitor satisfaction with recreational facilities and 85% 85% planned maintenance program valued services at $0.5 million is also a key focus of the Authority’s refurbishment Visitor satisfaction with Rottnest Island Authority 85% 75% strategy. This strategy is a key accommodation component to ensure the commercial Overall visitor satisfaction with recreational and 85% 86% activities provided by the Authority are holiday services and facilities financially self-sustainable, viable and Health of the natural environment C C based on a user pays basis. Health of the cultural environment C C Average cost of recreational and holiday services NA* $80 provided per visitor Average cost of natural environment and cultural NA* $599 heritage management per Reserve hectare

* NA denotes that a target was not set, as the 2008-09 results will be used to identify a baseline for future performance comparisons and target setting.

14 Rottnest Island Authority – Annual Report 2008-2009 Visitor satisfaction with Island facilities and services remained high.

Service Area 1 Visitors – Recreational and Rottnest Island hosts various types of Holiday Services visitors. Of the 361,000 visitors which arrived by ferry, over one-third stayed Visitors come to Rottnest Island to overnight in RIA accommodation. The experience a holiday, for recreation remainder used privately managed or just to relax. The Rottnest Island accommodation or experienced Authority is required to provide a day trip to the Island. The total a variety of services for visitors number arriving by ferry represents including accommodation, recreational an increase of two per cent over activities, tourism services, transport the previous year, and the highest and other support services found in annual result in the last 10 years. a typical tourism destination. Some This reflects a continuing positive services are directly provided by the In addition to these key performance trend (see graph below). In addition, RIA, while some are provided through indicators, some other relevant the Island receives many visitors private businesses and organisations. indictors of performance are by private boat or charter service. The performance of the Authority’s summarised below. Again, these The Authority is unable to confirm direct service delivery is discussed results demonstrate strong the exact numbers of these types below. performance which is a significant of visitors, as boating visitors are achievement in the context of an The main strategies applied in not required to advise passenger economic downturn. recreational and holiday services were numbers when visiting. Aerial surveys to: conducted over the peak season • The number of visitors to Rottnest indicated that vessel based visitation Island increased by nearly two per • Improve revenue from numbers may be over 200,000 per cent on the previous year setting a accommodation services by annum. Furthermore, another 53,000 new record for visitation. vigorously competing for business people accessed the Island for • The number of ‘unit nights of across shoulder and off-peak commercial and work purposes, which accommodation sold’ increased by periods; also contributes to economic activity 1.6 per cent on the previous year. • Increase the variety of recreational on the Island. • Visitors’ perceptions of ‘value for services and activities to improve money’ when visiting Rottnest the visitor experience on the The profile of visitors to the Island Island was measured for the first Island; is also changing. For example, the time and recorded a positive rating • Improve the marketing and changing demographic evident in the of 76 per cent. provision of information to improve general population is reflected in the • There were 92 per cent of visitors access and experience of the demographics of the visitor population. that believed Rottnest Island was a Island’s facilities and features. The Authority continued to develop safe place to holiday. and refine its accommodation and • An additional 33,000 native trees recreational activities to help meet this were planted to help restore the growing and changing demand from Island’s natural environment. visitors to the Island. These actions are contained in the discussion below.

Visitor satisfaction with the Authority’s Island facilities and services remained high and these results are provided at the Key Performance indicator section of this report.

Rottnest Island Authority – Annual Report 2008-2009 15 Visitor Numbers by Ferry Accommodation Improvements In 2004, a five-year program of 370,000 refurbishment to RIA accommodation

360,000 commenced. In 2008, the last stage of the refurbishment plan focused on 350,000 upgrading 28 units located at Central 340,000 Thomson, the two units within the historic lighthouse keeper’s cottage 330,000 adjacent to the Lighthouse at Bathurst, 320,000 the eight Governor’s Circle heritage

310,000 units and the Sergeants Mess at 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Kingstown Barracks.

The 28 Caroline Thomson cabins in the Thomson Bay area were equipped Accommodation performance. The Authority’s with new beds, mattresses and The RIA continued to provide easily accommodation is mostly sold by ‘unit cooking facilities and were partially accessible and value for money night’ regardless of the number of repainted. accommodation on the Island while people staying in a unit. The improving At Kingstown Barracks, the Rottnest using a graded pricing structure performance of the Authority is Island Hostel received new bunk offering substantial discounts to those demonstrated in the graph below. beds and mattresses. Furnishings wishing to stay midweek or outside Total revenue for accommodation and heating in the communal lounge the peak summer season. services increased to $13 million area were upgraded. Carpets were A variety of accommodation is compared with the previous year’s removed from all dormitories at provided to meet the different needs result of $11.7 million representing an Kingstown Barracks and also from of the Island’s visitors. There is a increase of 11 per cent. the Governor’s Circle units, with the total of 299 accommodation units on the Island. In addition, the Authority operates the Kingstown Barracks Unit Nights Sold Per Year complex that comprises a 50 bed (Serviced and Unserviced Units) hostel and 17 dormitories, as well as 85,000 a camping ground with 18 tent sites within the Settlement Area. 84,000

There were 26,955 reservations made 83,000 for the Island’s accommodation (all forms) with an average stay of 3.62 82,000 nights. The number of reservations 81,000 has increased by 1.3 per cent compared with the previous financial 80,000 year, while the average length of stay 2006-07 2007-08 2008-09 has also shown a slight increase. These reservations resulted in 84,800 unit nights being sold, which is an indicator of the Authority’s commercial

16 Rottnest Island Authority – Annual Report 2008-2009 In 2008, the last stage of the current refurbishment plan focused on upgrading 28 units.

Rigorous testing was carried out on the One of the most sought after forthcoming on-line accommodation accessories was child trailers. Cargo booking system. It is intended that this trailers, baby seats, surfboard racks service will be introduced in the 2009- and tag-a-longs for children are among 10 financial year. the other equipment available for hire. The gophers and adult trikes have Visitor Services been popular with customers who The Rottnest Island Visitor Centre require mobility assistance. Tandems has been awarded accreditation are high demand items as they allow a administered by the Tourism Council unique cycling experience.

Western Australia. Visitors to the New inventory included tandems, adult Centre are able to obtain information trikes and children’s multi-geared bikes. and advice, and the Centre acts as Our courtesy break down vehicle has original floorboards being restored by a point of sale for bus, train and continued to provide assistance to all sanding and polishing. boat tours operating on the Island. A Island cyclists in need. seasonally operated ticket booth is This significant refurbishment located at the Settlement’s main bus program has resulted in all Rottnest Tours and Transport stop. Island accommodation now offering This service provides a free shuttle the same internal equipment, The information available from the service between the major centres facilities and level of appointment Visitor Centre is supplemented by the within the Settlement Area, and within the designated category of work of volunteer groups who assist provides fee based coach, train and accommodation. visitors with general and interpretive location tours. tours and information. In October 2008 the Tours and Accommodation Bookings Transport service achieved Getting Around Processing accommodation bookings Tourism Council Western Australia continued through the RIA’s Central One of the features that makes accreditation, demonstrating the RIA’s Reservations based in Fremantle. The Rottnest Island unique and attractive commitment to customer service for Authority website currently offers an to visitors is that the Island is free of Island visitors. The service was also on-line accommodation availability private vehicles, but the sights and a finalist in the Western Australian checker, a payment gateway and amenities remain accessible to people Tourism Awards for 2008. the opportunity to submit on-line of all abilities. While on the Island, The Wadjemup Bus Tour was applications for unit accommodation visitors can hire a bike, take a bus introduced in early 2009 and gives through the ballot process applied tour, ride on the historic railway or join visitors the opportunity to gain during some school holiday periods. one of the volunteer-led walking tours. insight into the history, traditions Ballots for Rottnest Island Bicycle Hire and dreaming stories that make accommodation are held regularly to the Island a place of deep spiritual Rottnest Island Bike Hire had a cover the summer school holidays significance for Aboriginal people. profitable year in which it provided after Boxing Day, Easter school This initiative was part of the hire bikes and equipment to over holidays and the School Leavers week Authority’s commitment to Aboriginal 87,500 visitors. A range of customers in November. Demand continues to far reconciliation as outlined in its hire bikes and equipment including exceed supply and specific criteria are Reconciliation Action Plan. families, day visitors, community and applied with checks being maintained tour groups, groups from schools and to ensure that the system remains fair the corporate sector. to all.

Rottnest Island Authority – Annual Report 2008-2009 17 The Rottnest Voluntary Guides host Marine Facilities tours to the Wadjemup Lighthouse and The RIA offers a variety of marine the tours are proving to be popular services and facilities for the benefit and successful. of commercial and recreational boat users accessing the Rottnest Island Events and Functions Reserve. These include 863 licensed The Island’s event calendar comprises mooring sites, 98 marine rental a wide variety of events and functions facilities and one courtesy mooring ranging from large sporting events, located on Kingston Reef. such as the annual Rottnest Channel The Authority has identified a number Swim, to small private functions such of suitable dive sites within the as weddings and corporate days. Reserve. Two sites at Crystal Palace Many events are designed to and Roe Reef have been evaluated The Authority has generated increase the number of visitors to for potential installation of moorings. significant interest among members the Island and improve off season Environmental impact assessments of the tourism industry through its accommodation uptake which results have been conducted. Input from Familiarisation Program targeted to in direct revenue to the RIA through recreational and commercial users relevant media and trade partners admission fees and accommodation. regarding each site’s suitability and involved in selling Rottnest Island as a Island businesses also benefit possible restriction is in progress and holiday destination. Since January, 170 from additional revenue generated will be assessed before proceeding familiarisations have been facilitated by by increased activity. Private and with final selection and planning for the Authority including many that were corporate functions are gaining development of the dive sites. importance with the restructuring of conducted in partnership with Tourism the venue pricing schedule and the Marketing and Public Affairs Western Australia and Experience Perth. Other groups included interstate, refurbishment of the Rottnest Island A closer working relationship with the intrastate and international travel Country Club and Conference Centre. Rottnest Island Business Community agents and journalists. The second annual Wadjemup Cup was (RIBC) has led to an innovative held on Rottnest Island in November decision to rationalise resources and The Authority’s Public Affairs function 2008. Around 90 boys competed effort by combining RIA and RIBC has coordinated media activity during from the Clontarf Aboriginal Football marketing activities in the coming the year, achieving positive media Academies located in communities financial year. The aim is to introduce exposure including the re-opening including Alice Springs, Anzac Hill an integrated and coordinated following refurbishment of the Hotel and Yirara in the Northern Territory, approach to marketing Rottnest Island Rottnest; the opening of Australia’s Gilmore Academy in Kwinana, Yule as an iconic holiday destination. newest and largest Dome Café; the launch of the Rottnest Island Brook Academy in Perth and the Utilising the themes of Tourism Reconciliation Action Plan and the MidWest Academy in Geraldton. Boys WA’s ‘Holiday at Home’ campaign, development of a new five-year from Alice Springs took the cup home the RIA launched its own product Rottnest Island Management Plan. once again. promotions which aimed to sell mid- week accommodation, Island tours Four issues of the Rottnest Islander have and bike hire to the local market in been published and 20,000 of each the traditionally low occupancy winter issue were distributed during the year. months of June, July and August. The Online presence has been maintained campaign has been very successful, through the Rottnest Island Authority’s selling 842 nights of accommodation, website and through social networks over 1,000 tours and over 1,000 bikes. such as Facebook and Twitter.

18 Rottnest Island Authority – Annual Report 2008-2009 The RIA launched its own product promotions which aimed to sell mid-week accommodation, Island tours and bike hire to the local market in the traditionally low occupancy winter months.

Facilities and Utilities Management Water Services The closure of the Southern The RIA is responsible for managing The Authority provides potable water Metropolitan Regional Council the Island’s provision of utility and waste water services on the Island Resource Recovery Centre due to services and maintenance of all built under licence from the Economic fire damage (June 2009) will have infrastructures. The Authority has Regulation Authority. an impact on the future level of contracted Programmed Facility recycling that can be achieved. The There were 146,000 kilolitres of Management (PFM) previously known Authority and its facilities manager are potable water produced during the as the Tungsten Group; to provide this currently investigating the availability year. The desalination plant produced service. However, other providers are of alternative recycling plants in the 75 per cent of this amount and involved for selected items or may be short-term, as well as long-term waste the remainder was sourced from engaged for specific improvements. management options. groundwater bores. Potable water is PFM was specifically engaged to deliver stored in a series of tanks connected To promote recycling and reduce maintenance of the Island’s buildings to the water distribution network. In the use of plastics; 20,000 calico and equipment, operation of utilities, January 2009, work commenced on shopping bags were provided to waste management and general reinstating an additional water tank ‘key holders’ checking into Island transport services including luggage (capacity of 5,000 kilolitres), and this accommodation. This project was delivery and general support services. work was completed in July 2009. partially funded through a grant from the Keep Australia Beautiful Council Power Liquid Petroleum Gas in partnership with the Rottnest All power requirements for the Island are A mix of reticulated and bottled Conservation Foundation. generated locally using a combination Liquid Petroleum Gas (LPG) is used to of diesel generators and a wind turbine. provide gas on the Island including the The RIA generates, distributes and Service Area 2 Authority’s accommodation facilities retails power under licence from the (e.g. hot water systems and cooking – Natural Environment Economic Regulation Authority. facilities), as well as operate a range and Cultural Heritage Total power generation during the of appliances used by visitors and Management year was 4.7 million kilowatts of which residents such as barbecues. Most Rottnest Island is an A-Class Reserve 1.7 million (36 percent) was generated commercial businesses operating on comprising the Island’s land mass, via the Island’s wind turbine, and the Island also utilise LPG for their known as the terrestrial environment the balance supplied through diesel operations. During the year 383,000 and surrounding waters, known as generation. The wind turbine avoided litres of gas was used on the Island. the marine environment. In addition the use of 480,000 litres of diesel to natural values, these areas also fuel, saving the Authority an estimated Waste Management encompass cultural heritage assets $532,000. Approximately 670 tonnes of waste and values that require ongoing is generated on the Island each year. identification, protection and The Authority’s waste management conservation. While a distinction is strategy resulted in the closure of made between the Island’s natural and the Island landfill site and all waste cultural environments, in reality they streams being transported to the are intrinsically linked. mainland. Waste suitable for recycling The protection of the natural and is separated prior to transportation cultural environment is imperative and includes plastics, glass, paper, to ensure the Island’s long term cardboard, oils, tyres, batteries, sustainability and sense of place for metals and biosolids. the visitor. Essentially, it is the reason that most visitors come to the Island.

Rottnest Island Authority – Annual Report 2008-2009 19 Terrestrial Environment Fauna Management Management of natural systems The RIA has developed and across the terrestrial and marine commenced implementation of a components of the Rottnest Island Pest Bird Management Plan. Birds Reserve continued to be a primary considered to be pest species include focus for the Authority during the Silver Gulls, Australian Ravens, the year. Key management areas included Common (Ring-Necked) Pheasant, contaminated sites, environmental Galahs, Peafowl and Rainbow restoration, pest birds, research and Lorikeets. Mechanisms being marine management. implemented include public education, working with Island businesses and Woodland Restoration Program population control.

During 2008-09, volunteers assisted A number of fauna monitoring Specific management programs with the planting of some 33,320 programs were undertaken during include the conservation and native trees, bringing the total number 2008-09. These include: protection of groundwater, landforms, of trees planted since the beginning of vegetation, fauna, and marine the program to 216,570. The aim of • Reptile monitoring - occurring six habitats. Park service programs the Woodland Restoration Program is times over the spring and summer include visitor risk management to return the Island’s woodland habitat months. and safety, terrestrial and marine to a state similar to that found by the • Amphibian monitoring - occurs facilities management, education first settlers. The program involves once to twice a week during the and compliance. Extension programs assistance from school and volunteer winter months. focus on raising awareness groups in collecting seeds, planting • Bird monitoring - The Rottnest and appreciation of the natural and fencing; while seed propagation is Island Authority conducted a environment by facilitating scientific done by inmates from Bunbury Prison. survey in conjunction with Birds research, volunteer coordination, Australia over the summer and Future tree planting activity is visitor education and interpretation. winter months. Bird counts cover a constrained by the amount of suitable These are key strategies to provide range of habitats so both bush and land available. Investigations are being visitors to the Island with a strong wading birds are included. undertaken to identify areas within the sense of place. water recharge zone which can be The current status of key performance planted. indicators for both the natural and cultural environments indicate a Woodland Restoration Program Cumulative number of trees planted since 2003 stable situation, but one that needs to improve. It is envisaged that as the 250,000 Rottnest Island Authority becomes more financially sustainable, additional 200,000 resources will be devoted to this 150,000 important area of the Authority’s responsibility. 100,000

50,000

0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

20 Rottnest Island Authority – Annual Report 2008-2009 Stage two works of the coastal rehabilitation plan at Parker Point and Philip Point were successfully completed.

Osprey monitoring is a new program Contaminated Sites Management Marine Management Strategy that is being undertaken to establish Thomson Bay Hydrocarbon Plume The Rottnest Island Marine Island nest locations and their - the RIA continues to work with Management Strategy 2007 (MMS) activity. The aim is to establish consultants, auditors and the formed part of the Rottnest Island relative breeding success, nest Department of Environment and Management Plan 2003-08. In line usage and to identify the occurrence Conservation (DEC) to achieve best with the development of the Rottnest of any disturbances (natural and/or practice methods for site remediation. Island Management Plan 2009-14, the anthropogenic) that may lead to nest Authority has undertaken a review of Forbes Hill Landfill Facility - the Forbes abandonment. the MMS limited to the measurable Hill landfill facility has not received outcomes and research program. Reptile, amphibian and bird monitoring landfill waste since 2006. However, The MMS will be reviewed at five- programs have now been running for the nutrient plume emanating from year intervals in conjunction with the over five years and provide valuable the site is monitored on a seasonal RIMP 2009-14 to monitor progress and robust population information basis by the Authority in conjunction against the strategy’s objectives and which will aid effective fauna with contaminated sites consultants. outcomes. management. A report summarising the results is submitted to the DEC annually. This year has seen the implementation Coastal Management of the Reef Fish Baseline Survey Stage two works of the coastal Marine Environment (conducted in conjunction with the rehabilitation plan at Parker Point Development of strategies for the University of Western Australia) which and Philip Point were successfully protection and management of the is aimed at: completed and a further two projects unique marine communities while • Complimenting and enhancing at South Thomson and Parakeet Bay supporting recreational use can be existing datasets to create a commenced. complex. With the marine component benchmark for scientific reference Eroded areas at Parakeet Bay and of the Rottnest Island Reserve and future comparisons; South Thomson were targeted covering 3,800 hectares, the Authority • Detecting spatial and temporal this year, as dune erosion poses a employs specialist staff to monitor and patterns within fish assemblage significant threat to infrastructure at deliver key projects across this area. structure with regard to diversity, these locations. Erosion in these areas Ongoing research and consultation length frequency, abundance and can be attributed to a combination of with key stakeholder groups provide biomass; water runoff, storm events and visitor the Authority with best management • Better understanding reef impacts. practices to ensure the sustainable ecosystems for improved future use of this resource. The RIA, in partnership with the management purposes; and Rottnest Island Conservation • Providing information underpinning Foundation, was successful in recommendations for the receiving funding from Lotterywest to development of a long term reef undertake Site Development Planning fish monitoring plan. (stage two) of the Coastal Walk Trail. A Lyngbya monitoring program was Stage two will commence in 2010 also established targeting high visitor and will include site development usage bays in order to better predict, designs for each node of the trail, trail understand and manage the presence interpretation, and staging strategies of this alga and any associated and facility style guides. blooms. A Lyngbya Response Strategy is under development in conjunction with this monitoring program.

Rottnest Island Authority – Annual Report 2008-2009 21 Recreational Moorings Environmental Cultural Environment Battery Observation Post Assessment Because of its location, much of the The building operated as part of An environmental assessment at cultural heritage of Rottnest Island the nationally significant 9.2 inch two popular dive sites within the is intact and presented in ways that gun emplacement at Oliver Hill that marine reserve has been completed provides contemplation for visitors provided information to the plotting to determine if anchor damage was and a unique tourism experience found rooms. It was also the fire command occurring, as well as to assess the nowhere else in Western Australia. post for the Fremantle Fortress of gun benthic flora and faunal communities emplacements, in operation to defend The RIA is assisted in its heritage existing both at the dive site and the port of Fremantle. The building and conservation projects by within the surrounding anchorages. is intact but suffered from water advice from the Cultural Heritage The physical characteristics of the ingress and concrete deterioration. Advisory Committee and other key dive sites and anchorages were also The cost of full restoration was stakeholders. assessed. The information will be used prohibitive; therefore the Authority has to assess the feasibility of trialling a The Authority has undertaken a undertaken to manage the building recreational dive site mooring system program of works and activities during as a standing ruin. Stabilising works at the two sites, as part of a larger the year that reflect the Authority’s have been completed which included system to avoid damage to fragile stewardship role. Key achievements internal propping, roof replacement benthic communities occurring from are outlined below. and concrete benching to direct water dive vessels anchoring at the sites. flow away from the structure. Historic Conservation of the Former fittings and elements have been Bacterial Water Quality Management Governor’s Residence conserved wherever possible. In conjunction with the Department The Governor’s residence forms of Health, the RIA continued to part of the current Hotel Rottnest. New Dome Café monitor bacterial concentrations in Improvements were made to make After a period of planning and popular swimming bays, and heavily the building structurally sound, negotiation, the Dome Café opened used mooring and boating areas. weatherproof, and aesthetically at its new location during 2008. The As the National Health and Medical pleasing. The completion of this work redevelopment of the Dome Café was Research Council’s trigger levels has reinstated this significant building an important project for the Authority were not breached during 2008-09 and enhanced the conservation, for many reasons, it: and ANZECC levels exceeded only presentation and interpretation of • reinforced the guidelines and on three occasions during the same the former Governor’s Residence. principles aspired to by the period, bacterial levels generally, were Rather than blurring into the general Authority in relation to the design considered to be very low. hotel complex, the Residence is and construction of new buildings now a major feature of the hotel and and amenities, particularly those the Island. In addition, the former located within heritage precincts; Residence has been complemented • demonstrated the need to by the inclusion of more sympathetic foster positive relationships with and appropriate new structures and stakeholders; services funded by the building’s Ii • captured an element of lessee. The response by the lessee’s interpretation, in that the new patrons and Island visitors to the café has been constructed on the improvement has been very positive. site of the former Rottnest Island Tearooms;

22 Rottnest Island Authority – Annual Report 2008-2009 During the year 103 school groups visited the Island and took part in the educational activities offered by the Authority.

Delivery to Schools Interpretation During the year 103 school groups Several terrestrial environment, visited the Island and took part in the marine and heritage interpretive educational activities offered by the programs were implemented during Authority. The Environmental Education the year including the Heritage Street Program (EEP) has been developed Signs Interpretation Project, and ‘A in accordance with the Curriculum Birds Eye View of Rottnest Island’. Framework and is aimed at students Other programs such as, ‘Dive into of all levels and abilities. The EEP Diversity’, Prisoner of War Plaque and offers a range of dynamic activities the ‘Reconciliation Action Plan Launch that encourage active student Display’ were delivered. involvement and experiential learning. A new permanent exhibition for Students are able to investigate the the Salt Store was developed and • resulted in an improved and Island’s remarkable environment, implemented. The exhibition titled ‘Salt reinvigorated visitor facility; and including its history and culture, of the Earth’ showcases the historic • resulted in a positive outcome terrestrial and marine life, and flora; to salt works which once operated on the for the Island’s natural heritage gain understanding of the imperatives Island and celebrates original use of (rejuvenation of the fore dunes). for conservation and management. this important heritage building. The success of this project, and the Corporate and Group Day Tours and positive stakeholder and community Ranger Services Events response, is testament to the The Rottnest Island Authority’s Over the year, the Education and Authority’s commitment to conserving Rangers contribute to the Island’s Interpretation team delivered varied the natural and cultural heritage protection of the Island’s natural and programs to six corporate groups that environment. social environment. The focus is included Boddington Goldmine, World to seek voluntary compliance from Presidents Organisation, Environmental Education and Interpretation visitors and businesses operating Health Australia, Wesfarmers and The RIA provided education learning on the Island. However, enforcement Captain Cook Cruises. experiences and interpretation actions are applied when voluntary activities for visitors to the Island Four Environmental Awareness compliance can not be obtained. through interactive activities and Courses were delivered during Rangers also assist with the protection materials such as fact sheets, 2008-09. This course is designed and management of the Island’s flora resource packs, publications, school for teachers, community leaders, and fauna. holiday programs and informative and visitors who wish to increase signage. During the four school their understanding and awareness Island Security and Safety holiday periods, 652 adults and 3,027 of the Island’s natural and cultural To ensure Rottnest Island will continue children participated in these activities. environment. This two-day professional to be regarded as a safe and relaxing Partnerships with RecFishWest, and development opportunity focuses family holiday destination, Rangers Birds Australia and the Rottnest on providing participants with work in partnership with the Western Voluntary Guides Association environmental education ideas and Australian Police. Monitoring and contributed to the successful delivery activities they can use with groups. control of anti-social behaviour within of these programs. the Island Reserve is a high priority. Strategies are continuously being developed to address issues of intoxicated people engaging in noisy and offensive behaviour.

Rottnest Island Authority – Annual Report 2008-2009 23 For the first time in the RIA’s history, the RIMP’s major initiatives were costed and sources of funding were identified.

Rangers assisted with the Enforcement of Regulations management of the major events on Rangers issued a total of 2,143 the Island including Leavers’ Week, notices for breaches of the Rottnest New Year’s Eve, the Channel Swim Island Regulations during 2008-09. Of and Rottnest Swim Thru. Rangers take this number, only 324 notices resulted the role of interdepartmental liaison in actual infringements as ranger staff managing up to 30 security staff, focused primarily on education and and work in partnership with the WA promoting voluntary compliance. Police, the Department for Planning Overall, there was an 11 per cent and Infrastructure (DPI), and the Office decrease in the total number of of Crime Prevention to ensure a safe infringements issued, however there and secure event for all attendees. was an increase in the number of Rangers were involved in eight missing notices related to vessels. This was person searches, 26 vessel rescues partly a consequence of a firmer and 31 patient transfers (11 were approach being shown to repeat considered critical). offenders using moorings without permission, as the Shared Mooring Environmental Management System has now been in place for More than 350 wildlife calls were some time. actioned of which 220 responses Breach Type Notice Number concerned quokkas, 49 for dugite Section 30 notices 150 relocations, 7 for fur seals and 48 for Regulation 8 notices 45 small birds and one whale stranding. Infringements 324 Rangers, Water Police and the DPI Vessel notices 1,624 worked together to increase the Total 2,143 presence of marine patrols within the Island’s waters. Close collaboration between the Island’s rangers, the Department of Environment and Conservation, and Australian Customs resulted in two arrests on alleged smuggling charges.

Completion of training as Honorary Fisheries Officers and Honorary Marine Safety Officers has assisted the rangers to enforce the existing Marine Sanctuary Zones and deliver visitor safety and education to marine users of the Rottnest Island’s waters.

24 Rottnest Island Authority – Annual Report 2008-2009 Rottnest Island Management Plan 2009-14

The Rottnest Island Management Plan The Authority incurred significant out in the Rottnest Island Authority 2009-14 (RIMP) was developed during costs to develop the RIMP, a Act 1987 – providing holiday and the year with an unprecedented level document that is not required by recreation facilities for visitors and of consultation which included input most State Government agencies. protecting the natural and built from the community, stakeholders and The consultation stage and finalisation environment of the A-class reserve. Rottnest Island Authority (RIA or the of the document was overseen by a For the first time in the RIA’s history, Authority) staff. The process included probity auditor. the RIMP’s major initiatives were canvassing issues and opportunities The theme of the RIMP is sustainability costed and sources of funding were during preparation of a draft RIMP and – environmental, social and financial. identified. A summary is provided two months consultation on that draft The RIMP seeks to maintain the below. to ensure the final RIMP reflected the balance between the functions set majority view of stakeholders and the community.

5-year Ref1 Strategy Investment2 Funding source $’000 1 Review the Rottnest Island Authority Act 1987 $180 RIA Budget 2 Tourism and Recreation Strategy $160 RIA Budget 3 Twenty-year vision for Rottnest Island $0 RIA Budget 4 Sustainability accreditation $175 RIA Budget 5 Sustainable visitor research $50 RIA Budget 6 Development planning controls $190 RIA Budget 7 Address external environmental and economic threats (including climate change) $175 RIA Budget 8 Aboriginal reconciliation and economic development $450 RIA Budget and external funding 9 Maintain quality of RIA visitor accommodation $10,000 RIA Budget RIA Budget (cost recovery) 10 Provide a range of visitor accommodation $0 and external funding 11 Upgrade Kingstown $0 External funding 12 Review visitor accommodation management options $0 RIA Budget RIA Budget (cost recovery) 13 Expand recreational activities $0 and external funding 14 Improve visitor facilities $410 RIA Budget 15 Marine facilities – Boating Management Strategy $220 RIA Budget 16 Review responsibility for utilities, major infrastructure and essential services $0 RIA Budget 17 Terrestrial Management Strategy $220 RIA Budget 18 Implement Marine Management Strategy $150 RIA Budget 19 Education and interpretation for environmental management $150 RIA Budget 20 Rottnest Island Research Strategy $200 RIA Budget 21 Cultural heritage conservation $1,105 RIA Budget 22 Education and interpretation products $340 RIA Budget 23 Improve customer service $0 RIA Budget 24 Focus on safety and security $150 RIA Budget and external funding 25 Support volunteers $150 RIA Budget $14,475

1 Reference numbers correspond with the Rottnest Island Management Plan initiatives. 2 A $0 amount denotes costs will be within current resourcing levels, so no additional funding is required from the RIA’s finances. However external funding will be required where indicated.

Rottnest Island Authority – Annual Report 2008-2009 25 Sustainability

Sustainability has become the Rottnest • Maintain the Authority’s sustainable • Encouraged cultural groups Island Authority’s (RIA or the Authority) development guidelines and with connections to the Island’s major management theme. The approval process to ensure all new heritage, to research and celebrate Authority seeks to achieve financial, developments, restorations and their relationships with the Island. environmental and social sustainability improvements contribute to the • Continued to provide Rottnest for the Island and for the Rottnest Island’s environmental and social Island Authority staff with Island Authority as an organisation. sustainability. opportunities to undertake This theme is reflected in the Rottnest • Thousands of trees are planted volunteer work on the Island Island Management Plan 2009-14 during each winter as part of the including tree planting and honorary (RIMP). The first two years of the RIMP Woodland Restoration Program. ranger roles. will focus on laying the foundations • Continued use of the Island’s • Maintained staff access to a work for achieving long-term sustainability wind turbine to generate power day for volunteering to relevant across all areas. Future annual (between 30 to 40 percent of community organisations or reports will address this theme as total power depending on the wind projects. the Authority makes further progress characteristics) avoiding the use of • Communicated sustainability towards this objective. fossil fuels to generate power. messages to the Island’s visitors • Continued to desalinate more than and guests through publications, Sustainability is a management 75 per cent of the Island’s water campaigns and education. objective that applies to all of the RIA’s needs to reduce the need to draw services and support operations. It Economic upon groundwater bores and also requires the cooperation and ensure water availability for Island The RIA continues to face challenges participation of its suppliers and fauna. regarding the funding of its total stakeholders, and therefore can not be • Implement strategies to minimise operations, especially with regard achieved by the Authority acting alone. and recycle waste from various to its non-commercial functions During 2008-09 the Authority sources on the Island. (environmental and cultural heritage implemented strategies to progress • Continued effective management of management) and infrastructure sustainability within its operations and the Island’s contaminated sites. developments. to promote sustainability among its • Enabled several private research During the year the Authority: Island stakeholders, and these are projects to be conducted on • Implemented strategies to improve summarised below. The challenge the Island concerning various the agency’s financial performance for the Authority was to implement environmental aspects. by seeking price increases for sustainable practices across the three • Continued application of guidelines fees and charges, implementing major areas while demands from the that promote sustainability in the productivity improvements and respective areas competed for the Authority’s procurement practices. Authority’s limited resources. Some of increasing visitor numbers during the items outlined below are elaborated Social shoulder and off-peak seasons. • Sought ways to provide a platform on in the Operations Report of Service • Partnered with Aboriginal Western to underpin development of a Area One and Two respectively. Australians to continue to grow successful economic environment understanding of Rottnest Island’s for the Island’s commercial operators Environmental cultural heritage and significance to through a forum known as the • Commenced implementation of all Western Australians. Rottnest Island Business Community sustainable visitor capacity research, • Commenced implementation of the (RIBC), and through direct ‘partnering’ concerning the Islands most popular Reconciliation Action Plan specific activities with the Authority’s natural and cultural heritage locations. to Rottnest Island and the Rottnest suppliers and service providers. The first stage of this longitudinal Island Authority as an organisation. study has been completed. • Encouraged an Aboriginal owned and operated business to commence operations on the Island; the first to do so for many years.

26 Rottnest Island Authority – Annual Report 2008-2009 Involving The Community

The Rottnest Island Authority (RIA or the emergency services training. The RIBC Throughout the year, the RIA provided Authority) engages the community to has a strong voice through regular support and resources to the help with its management of the Island. general meetings. volunteer groups to help support their Opportunities for community involvement contribution to Rottnest Island. An include but are not limited to: Volunteer Groups officer of the Authority coordinates and supports the work of these groups. • The business community that Rottnest Island is fortunate to have a number of volunteer groups working provides services on and to Advisory Committees Rottnest Island; for the benefit of the Island and its guests. These include the Rottnest A large number of community • Volunteer groups including school children; Voluntary Guides Association, Winnit members and business owners Club, the Rottnest Island Conservation are honorary members of advisory • Advisory committees; Foundation, Scouts Australia, Rottnest committees which provide advice • Researchers; Society, Honorary Bay Rangers, to and support the work of the RIA. • Customer service; and Conservation Volunteers Australia, The Authority values the partnerships • Emergency services school groups, corporate groups and developed with these groups and the The Authority also partners with several others. commitment of the members and will members of these groups and others, continue to support and work with the Throughout the year, these groups such as government agencies to advisory committees to draw on their undertook a variety of projects provide a variety of essential and broad and considerable expertise. community services. including historical research, ongoing painting of the seawall, installing During the year the following Business Community kilometres of fencing, tree planting, committees were active: weed removal, seed collection, The business and services community • Rottnest Island Marine Issues rubbish cleanups and general is an integral part of Rottnest Island Advisory Committee maintenance. The Rottnest Voluntary and creating a sense of community • Rottnest Island Environmental Guides Association conducts a range is important to sustaining the Advisory Committee of guided tours, adding to the visitor businesses on the Island. The • Rottnest Island Cultural Heritage experience on the Island. business community has formed an Advisory Committee incorporated association, the Rottnest Volunteer activities during the 2008-09 • Rottnest Island Railway Advisory Island Business Community (RIBC), year resulted in approximately 1,160 Committee to promote the Island businesses volunteers giving 27,500 hours of • Rottnest Island Tourism Advisory including those providing services to their time to benefit the natural and Committee (commenced May 2009) the Island, and to promote cooperation cultural environment of the Island. amongst its members and with the Major accomplishments during the Researchers Authority. To help promote and achieve year included the successful launch Scientific research is a vital tool common goals, the Authority along of lighthouse tours, construction of which provides information to the with its main contractors are members new stairs at Fays Bay and erection RIA to assist with management of of the RIBC. of fencing at Pinky’s Beach. This the Island’s marine and terrestrial program assisted the continuation of The business community also habitats, vegetation, fauna and cultural the major dune rehabilitation project at supports many social activities heritage. During the 2008-09 year, Parker Point and the planting of many such as cricket matches and golf thirty-six applications to conduct thousands of trees as part of the tournaments. Larger businesses host research on the Island were received Woodland Restoration Program. dances and other social gatherings. from local universities, national Employees and their family members research organisations such as the are encouraged to join in volunteering CSIRO and the Australian Institute of activities such as tree planting and Marine Science (AIMS).

Rottnest Island Authority – Annual Report 2008-2009 27 Approximately two-thirds of It was recognised this year that The Rottnest Island Volunteer Fire and applications received were for projects it is necessary to underpin this Rescue Service is a private brigade that involve undertaking field work unique holiday experience with a that is also designated as a State in the Marine Reserve, while the comprehensive and more consistent Emergency Service Brigade and is remainder of projects addressed approach to ensure that excellent staffed by volunteers. During the year, aspects of the terrestrial and inland customer service is provided by all members of the brigade took part in aquatic environments, sustainability businesses and service organisations specialised training that included State and cultural heritage. operating on the Island. During the Emergency Service (SES) Cliff Rescue, year, the concept of “Team Rottnest” FESA Breathing Apparatus Training, Examples of projects that commenced was developed so that all parties will SES Storm Damage Training, FESA in the course of last year include actively work towards this objective. Ground Controller Training as well as long-term marine macro-invertebrate The Authority has supported the RIBC training in the Australian Inter-service monitoring (Curtin University); and the in developing a customer service Incident Management System (AIIMS). influence of Western Rock Lobster focused induction program which is density and foraging behaviour on Over the last year, major emergency being delivered to all staff. shallow water communities (Edith management initiatives included the Cowan University). The Authority identified a suite of development of a Local Recovery Plan operational management strategies and a Local Welfare Plan. A three- The Authority and the University of and changes to legislation to help year contract to provide personnel Western Australia have entered into a avoid and reduce the potential for protective equipment for the Volunteer Memorandum of Understanding (MOU) anti-social behaviour occurring on Fire and Rescue Service was finalised. that sets out arrangements which the Island. For example, the level of An application was submitted to will enable joint research activities to contracted security was increased the State Emergency Management be undertaken within the marine and for public events. The legislative Committee for Specified Public terrestrial reserve. This MOU will also strategies will be pursued in 2009-10. Authority Status under Section 35 facilitate joint supervision of students, of the Emergency Management Act academic meetings, and the shared Emergency Services 2005. use of resources. Visitor safety and safeguarding Customer Service the Island environment is critical. Other Community Culture Rottnest Island is visited by over Services 500,000 people annually; the Island’s Other Government services are The Authority aims to preserve the community needs to be prepared located on the Island including a well-known and established cultural to deal with complex incidents and police station, a Health Department and social values of Rottnest emergencies. Emergency response nursing post and Department of Island while meeting the changing on the Island is coordinated Education primary school. Water expectations of its visitors. The through the Rottnest Island Local Police and Department of Planning and Authority is particularly cognisant Emergency Management Committee Infrastructure assist with compliance of the need to address any trends (LEMC), which is responsible for activities within the Island’s marine towards anti-social behaviour on the the development and review of all area. Island which would negatively impact Island emergency arrangements and on visitors’ holiday experience. The Authority provides a post delivery facilitates multi-agency training and service on the Island, and the Island is The operation of Rottnest Island as a exercises. serviced by a private barge operator safe and enjoyable holiday destination in respect of freight transport. is paramount to the success of the Island. The Island’s enviable reputation is based on all ages being able to relax in a safe and secure environment.

28 Rottnest Island Authority – Annual Report 2008-2009 Aboriginal Reconciliation And Economic Opportunities

The Wadjemup Cup Football Carnival was a larger event this year with teams of Aboriginal boys travelling to the Island from Western Australia and the Northern Territory. Leila Ward, an esteemed Aboriginal Elder and whale singer, led the pre-game ceremony which was attended by Noongar and other elders, RIA members and staff and the Minister for Tourism, the Hon. Dr Elizabeth Constable MLA.

Throughout the many development This year has seen a maturing of the projects in progress across the The RIA recognises the pre and relationship between the Aboriginal Island, Aboriginal consultants and post-settlement cultural significance Community and the Rottnest Island monitors have been engaged to of Rottnest Island for Aboriginal Authority (RIA or the Authority) with ensure cultural values are conserved. people and therefore its position the release and launch of the Rottnest In addition to known places that have of responsibility to ensure that the Island Reconciliation Action Plan (RAP) been documented, the Authority Island is appropriately managed. 2008-11 and the incorporation of has commissioned a whole of Island The RIA is committed to promoting the Plan’s objectives encompassed Aboriginal Heritage Survey to identify awareness, education and action both in the Rottnest Island Management new sites and significant cultural internally (among its staff, contractors, Plan 2009-14 (RIMP). Outcomes values. To assist in this important area volunteers and business partners) expressed in both of the documents, of heritage management, the Rottnest and with Island visitors to help build together with actions, demonstrate Island Authority has employed an relationships, develop respect and willingness on behalf of the Aboriginal Aboriginal cadet to support the work create opportunities for Aboriginal Community across Western Australia of external consultants. people. and the Rottnest Island Authority to The coming year is exciting for Reconciliation with Aboriginal peoples meaningfully engage with a vision for the whole Community and will and their relationship to Rottnest a reconciled future for the Island. The see the fruition of many of the Island is regarded by the Authority as RAP and the RIMP provide excellent Indigenous projects that have been in crucial for the social sustainability of opportunities for further Indigenous development over the last five years. the Island. interaction and business development. To assist in the development and The launch of the first Aboriginal implementation of these programs the Community endorsed Indigenous Authority has recently employed an Interpretive Coach tour on the Island Indigenous project officer, provides an opportunity for visitors to Mr Reg Yarran. participate in interactive experiences with Elder Noel Nannup of Wadjemup Tours. The partnership between the Authority and Indigenous Tours WA provides a cultural interpretive window to the stories of the Dreamtime that are specific to the Island.

Rottnest Island Authority – Annual Report 2008-2009 29 Significant Issues Impacting The Agency

Financial Security changes in airline travel pricing, security and changing sensitivities The Rottnest Island Authority (RIA of travellers towards the effect of or the Authority) continues to work people on the environment all have towards the objective of financial an impact on visitation to the State sustainability to reduce reliance and therefore, Rottnest Island. The on Government funding packages. Authority will need to closely monitor Strategies have been identified and these trends and accordingly adapt approved by the Government to its marketing and product offerings to address its negative cash flows. meet market needs. However, any project that requires significant capital investment will be Climate Change particularly difficult to implement Impacts given the Authority’s limited reserves. Areas such as the upgrading of The number of recreational vessels Western Australia’s Climate Change utilities infrastructure and staff has been increasing in Perth which Action Statement (2007) emphasises accommodation can not be provided is having a growing impact on the that there is no bigger threat to within the agency’s financial resources Island’s marine areas. The profile of Western Australia’s environment, and will depend on some form of these vessels is also changing with economy and unique lifestyle than external funding such as borrowings or many larger vessels entering the climate change. Tourism Australia a public-private partnership. All options Island’s waters. has identified climate change as the are being considered to address this top challenge facing the Australian While the Authority has anticipated challenge. tourism industry in the next 10 years. these shifts, further research is This issue emerged as a priority The Authority will continue to pursue a required to gauge these dynamic during the development of the RIMP. range of options to achieve long-term changes to ensure that the needs The Authority needs to develop financial sustainability while protecting and safety of visitors are adequately understanding of the potential impact and enhancing the Island’s unique met. At the same time, the capacity of climate change both on the Island environment and values. of the Island to absorb new environment and on its tourism and various visitor facilities and business. Research needs, as well as Changing Visitor Trends services must be determined and appropriate mitigation and adaptation In contrast to the current overall monitored to ensure that the unique responses have to be assessed and downturn in tourism currently environment and amenity of the Island factored into operating the Island. experienced within Western Australia, is not compromised. This research For Rottnest Island, climate change the RIA is predicting that it will commenced during 2008-09 and will is most likely to impact features that continue to benefit from positive continue over several years. attract visitors and exacerbate existing trends in visitor numbers for a fourth The Authority has largely focused management issues including coastal consecutive year. The positive trend effort towards meeting the needs erosion, cliff collapses, fire control may be attributed to the response of local visitors, however interstate and the success of revegetation of visitors to better marketing of the and international visitor numbers to programs. There may be impacts on Island and the improved facilities the Island are increasing. Changes in the ecology, landscapes and iconic and services offered by the Authority visitor profile may enable the Authority species; for example quokka health, and private service providers. and business community to provide crayfish, fish and migratory wading It is expected that the changing services on more a financially viable bird populations. demographics of the local population basis. Therefore, tourism trends are will have an impact on the type of an important consideration for the facilities desired by local visitors. Rottnest Island Authority. For example,

30 Rottnest Island Authority – Annual Report 2008-2009 The Authority will continue to pursue a range of options to achieve long-term financial sustainability while protecting and enhancing the Island’s unique environment and values.

In particular climate change may The RIA believes that the functions, adversely impact on: responsibilities and operating conditions of the Authority need to • The Marine Reserve (habitats, reflect changes including community communities, coral reefs, fish expectations for the management distribution, recreational fishing); of the Island. There are many • Marine facilities (including access areas that need to be clarified. For to jetties and moorings) through example the ‘regional’ status of the changing water levels, storms and Island is not clear and therefore, it is storm surges; disadvantaged from having neither • The terrestrial environment, metropolitan nor country regional including coastal erosion, fire status. The Authority is increasingly frequency and impacts on wetland required to perform in a commercial water levels, weeds, pests, manner and therefore needs vegetation and fauna; and additional flexibility to act and perform • The Island’s heritage and other accordingly. The Authority will need to built structures resulting in devote significant attention to revising additional costs to protect and the Act and supporting Regulations maintain such structures. during the next two years. New Legislation The RIMP has identified an overdue need to review and revise the Rottnest Island Authority Act 1987 (the Act) on behalf of the Minister for Tourism. While the Act has been reviewed since its proclamation, any proposed changes and amendment bills have lapsed. The Act itself includes a requirement for revision after five years.

Rottnest Island Authority – Annual Report 2008-2009 31 Disclosures And Legal Compliance

Auditor General

INDEPENDENT AUDIT OPINION

To the Parliament of Western Australia

ROTTNEST ISLAND AUTHORITY FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS FOR THE YEAR ENDED 30 JUNE 2009

I have audited the accounts, financial statements, controls and key performance indicators of the Rottnest Island Authority.

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

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

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

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

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

32 Rottnest Island Authority – Annual Report 2008-2009 Page 1 of 2

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664 Auditor General

INDEPENDENT AUDIT OPINION

To the Parliament of Western Australia

ROTTNEST ISLAND AUTHORITY FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS RottnestFOR THE Island YEAR Authority ENDED 30 JUNE 2009 Financial Statements and Key Performance Indicators for the year ended 30 June 2009 I have audited the accounts, financial statements, controls and key performance indicators of the Rottnest Island Authority. Audit Opinion InThe my opinion,financial statements comprise the Balance Sheet as at 30 June 2009, and the Income State(i)ment,theState financialment statementsof Changes arein Equitybased onand propeCashr accountsFlow State andment presentfor the fairlyyear thethen financialended, a summarypositionof significant of theaccounting Rottnest polic Islandies and Author otherity explanatory at 30 June Notes. 2009 and its financial performance and cash flows for the year ended on that date. They are in accordance The key withperfor Australianmance indicators Accounting consist of Standards key indicat (includingors of effecti theveness Australian and efficiency. Accounting Interpretations) and the Treasurer’s Instructions; Board’s(ii) the Responsibilit controls exercisedy for the by Fi thenancial Authority Statements provideand reasonableKey Perf assuranceormance thatIndicators the receipt, The Boardexpenditureis responsible and investmentfor keeping ofproper money,account the acquisitions, and the preparationand disposaland offair property,presentation and of the finathen cincurringial statem ofents liabilitiesin acc ohaverdance beenwit inh accordanceAustralian Accountingwith legislativeStandards provisions;(including and the Australian Accounting Interpretations) and the Treasurer’s Instructions, and the key perf(iii)ormathence keyind performanceicators. Thi sindicatorsresponsi bofilit they iAuthorncludesitye saretab lirelevantshing aandnd appropriatemaintaining toin helpternal controlsusersrelevant assessto the thepreparation Authority’sand performanfair presentationce andof fairlythe financial representstate thements indicatedand key performaperformancence indicators fort htheat ayearre fr endedee fro m30m Juneater ia2009.l mi sstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances; and complying with the Financial Management Act 2006 and other relevant written law.

COLINSummary MURPHYof my Role AUDITORAs required GENERALby the Auditor General Act 2006, my responsibility is to express an opinion on the 17financial Septemberstate 2009ments, controls and key performance indicators based on my audit. This was done by testing selected samples of the audit evidence. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Further information on my audit approach is provided in my audit practice statement. Refer www.audit.wa.gov.au/pubs/AuditPracStatement_Feb09.pdf.

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

Page 1 of 2

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

Rottnest Island Authority – Annual Report 2008-2009 33

Page 2 of 2 CERTIFICATIONOFFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2009

TheaccompanyingfinancialstatementsoftheRottnestIslandAuthorityhavebeenpreparedincompliance withtheprovisionsoftheFinancialManagementAct2006fromproperaccountsandrecordstopresentfairly thefinancialtransactionsforthefinancialyearending30June2009andthefinancialpositionasat30June 2009.  Atthedateofsigningwearenotawareofanycircumstanceswhichwouldrenderanyparticularsincludedin thefinancialstatementsmisleadingorinaccurate. 

LaurieO’MearaAM   Chairman  17September2009

 GeoffTotterdell   Member  17September2009 

  OthmarBeerli ChiefFinanceOfficer   17September2009     

34 Rottnest Island Authority – Annual Report 2008-2009 ROTTNESTISLANDAUTHORITY INCOMESTATEMENT

FORTHEYEARENDED30JUNE2009      Note  2008/2009 2007/2008    $ $      INCOME     Revenue     Sales 6  490,512 1,140,541 Provisionofservices 7  25,323,151 24,617,527 Commonwealthgrantsandcontributions 8  7,000 14,000 Interestrevenue   1,009,469 1,070,564 Otherrevenues 9  250,425 426,558 Gains     GainsondisposalofnonͲcurrentassets 10  11,812 Ͳ TotalIncome   27,092,369 27,269,190           EXPENSES     Costofsales 6  266,844 586,949 Employeebenefitsexpense 11  8,480,175 7,492,603 Suppliesandservices 12  17,444,304 16,736,843 Depreciationandamortisationexpense 13  5,489,665 4,390,251 Financecosts 14  170,043 305,954 Accommodationexpenses 15  200,751 186,815 LossondisposalofnonͲcurrentassets 10  Ͳ 60,130 Otherexpenses 16  195,832 281,283 TotalExpenses   32,247,614 30,040,828      (Loss)beforegrantsandsubsidies   (5,155,245) (2,771,638)      GrantsandsubsidiesfromStateGovernment 17  2,225,400 2,275,318 Servicesreceivedfreeofcharge 18  3,853,007 1,013,923      Profitfortheperiod   923,162 517,603    TheIncomeStatementshouldbereadinconjunctionwiththeaccompanyingnotes. 

Rottnest Island Authority – Annual Report 2008-2009 35 ROTTNESTISLANDAUTHORITY BALANCESHEET

ASAT30JUNE2009           Note  2008/2009 2007/2008    $ $ ASSETS     CurrentAssets     Cashandcashequivalents 30  10,803,565 20,580,980 Inventories 19  486,346 522,105 Receivables 20  644,290 1,086,557 TotalCurrentAssets   11,934,201 22,189,642      NonͲCurrentAssets     Property,plant,equipmentandvehicles 21  178,462,848 164,443,583 Infrastructure 22  27,810,382 31,557,736 Intangibleassets 23  884,697 154,800 HeldͲtoͲmaturityInvestments 30  6,000,000 Ͳ TotalNonͲCurrentAssets   213,157,927 196,156,119      TOTALASSETS   225,092,128 218,345,761      LIABILITIES     CurrentLiabilities     Payables 25  3,887,310 4,402,946 Borrowings 26  Ͳ 4,690,567 Provisions 27  1,310,472 1,655,884 Otherliabilities 28  10,273,718 7,815,618 TotalCurrentLiabilities   15,471,500 18,565,015      NonͲCurrentLiabilities     Borrowings 26  Ͳ Ͳ Provisions 27  758,791 579,992 Otherliabilities 28  1,233,333 1,333,333 TotalNonͲCurrentliabilities   1,992,124 1,913,325      TotalLiabilities   17,463,624 20,478,340      NETASSETS   207,628,504 197,867,421      EQUITY     Contributedequity 29  50,032,000 42,409,000 Reserves 29  152,865,057 151,650,136 Retainedearnings 29  4,731,447 3,808,285 TOTALEQUITY   207,628,504 197,867,421

TheBalanceSheetshouldbereadinconjunctionwiththeaccompanyingnotes.

36 Rottnest Island Authority – Annual Report 2008-2009 ROTTNESTISLANDAUTHORITY STATEMENTOFCHANGESINEQUITY

FORTHEYEARENDED30JUNE2009      Note  2008/2009 2007/2008    $ $      Balanceofequityatstartofperiod   197,867,421 169,477,726      CONTRIBUTEDEQUITY 29    Balanceatstartofperiod   42,409,000 36,753,000 Capitalcontribution   7,623,000 5,656,000 Balanceatendoftheperiod   50,032,000 42,409,000           RESERVES 29    AssetRevaluationReserve     Balanceatstartofperiod   151,650,136 129,434,044 Gains/(losses)fromassetrevaluation   1,214,921 22,216,092 Balanceatendoftheperiod   152,865,057 151,650,136           RETAINEDEARNINGS 29    Balanceatstartofperiod   3,808,285 3,290,682 Profit/(loss)fortheperiod   923,162 517,603 Balanceatendoftheperiod   4,731,447 3,808,285      Balanceofequityatendofperiod   207,628,504 197,867,421      Totalincomeandexpensefortheperiod   2,138,083 22,733,695    TheStatementofChangesinEquityshouldbereadinconjunctionwiththeaccompanyingnotes. 

Rottnest Island Authority – Annual Report 2008-2009 37 ROTTNESTISLANDAUTHORITY CASHFLOWSTATEMENT

 FORTHEYEARENDED30JUNE2009      Note  2008/2009 2007/2008    $ $ CASHFLOWSFROMOPERATINGACTIVITIES     Receipts     Saleofgoodsandservices   490,512 1,140,541 Provisionofservices   26,608,342 26,925,183 Commonwealthgrantsandcontributions   7,000 14,000 Interestreceived   1,074,769 1,015,558 GSTreceiptsonsales   2,802,675 2,940,853 GSTreceiptsfromtaxationauthority   1,123,513 899,881 Otherreceipts   213,439 393,054      Payments     CostofSales   (231,085) (811,899) Employeebenefits   (8,611,787) (7,406,900) Suppliesandservices   (17,522,306) (14,720,550) Financecosts   (170,043) (369,256) GSTpaymentsonpurchases   (3,143,307) (2,085,970) GSTpaymentstotaxationauthority   (782,880) (1,754,765) Otherpayments   (160,016) (248,283)      Netcashprovidedbyoperatingactivities 30  1,698,826 5,931,448      CASHFLOWSFROMINVESTINGACTIVITIES     ProceedsfromsaleofnonͲcurrentphysicalassets   11,812 91,222 PurchaseofnonͲcurrentphysicalassets   (10,645,885) (4,913,427)      Netcash(usedin)investingactivities   (10,634,073) (4,822,205)      CASHFLOWSFROMFINANCINGACTIVITIES     RepaymentofBorrowings   (4,690,567) Ͳ      Netcash(usedin)financingactivities  (4,690,567) Ͳ      CASHFLOWSFROMSTATEGOVERNMENT     Grantsandsubsidies   2,225,400 2,275,318 Equitycontribution   7,623,000 5,656,000      NetcashprovidedbyStateGovernment   9,848,400 7,931,318      Netincreaseincashheld   (3,777,415) 9,040,561      Cashandcashequivalentsatthebeginningoftheperiod  20,580,980 11,540,419 Cashandcashequivalentsattheendoftheperiod 30  16,803,565 20,580,980    TheCashFlowStatementshouldbereadinconjunctionwiththeaccompanyingnotes.

38 Rottnest Island Authority – Annual Report 2008-2009 ROTTNESTISLANDAUTHORITY NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2009  1 AustralianequivalentstoInternationalFinancialReportingStandards  General TheRottnestIslandAuthority’s(“theAuthority”)financialstatementsfortheyearended30June2009havebeen preparedinaccordancewithAustralianequivalentstoInternationalFinancialReportingStandards(AIFRS),which comprise a Framework for the Preparation and Presentation of Financial Statements (the Framework) and AustralianAccountingStandards(includingtheAustralianAccountingInterpretations).  InpreparingthesefinancialstatementstheAuthorityhasadopted,whererelevanttoitsoperations,newand revisedStandardsandInterpretationsfromtheiroperativedatesasissuedbytheAASBandformerlytheUrgent IssuesGroup(UIG).  Earlyadoptionofstandards The Authority cannot early adopt an Australian Accounting Standard or Interpretation unless specifically permittedbyTI1101‘ApplicationofAustralianAccountingStandardsandOtherPronouncements’.NoStandards andInterpretationsthathavebeenissuedoramendedbutarenotyeteffectivehavebeenearlyadoptedbythe Authorityfortheannualreportingperiodended30June2009.  2 Summaryofsignificantaccountingpolicies  (a) GeneralStatement The financial statements constitute a general purpose financial report which has been prepared in accordance with the Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncementsoftheAustralianAccountingStandardsBoardasappliedbytheTreasurer’sInstructions.Severaloftheseare modifiedbytheTreasurer’sInstructionstovaryapplication,disclosure,formatandwording.  The Financial Management Act and the Treasurer’s Instructions are legislative provisions governing the preparation of financialstatementsandtakeprecedenceovertheAccountingStandards,theFramework,StatementsofAccountingConcepts andotherauthoritativepronouncementsoftheAustralianAccountingStandardsBoard.  Where modification is required and has a material or significant financial effect upon the reported results, details of that modificationandtheresultingfinancialeffectaredisclosedinthenotestothefinancialstatements.

(b) BasisofPreparation The financial statements have been prepared on the accrual basis of accounting using the historical cost convention, modified by the revaluation of land, buildings, infrastructure and works of art which have been measuredatfairvalue.  Theaccountingpoliciesadoptedinthepreparationofthefinancialstatementshavebeenconsistentlyapplied throughoutallperiodspresentedunlessotherwisestated.  ThefinancialreportispresentedinAustraliandollarsandallvaluesareroundedtothenearestdollarexceptfor somedisclosuresinnote27(d)‘DefinedBenefitSuperannuationPlans’andnote35‘FinancialInstruments’where valuesareroundedtothenearestthousanddollars($’000).  ThejudgementsthathavebeenmadeintheprocessofapplyingtheAuthority’saccountingpoliciesthathavethe mostsignificanteffectontheamountsrecognisedinthefinancialstatementsareincludedatnote3‘Judgements madebymanagementinapplyingaccountingpolicies’.

Thekeyassumptionsmadeconcerningthefuture,andotherkeysourcesofestimationuncertaintyatthebalance sheetdatethathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsand liabilitieswithinthenextfinancialyearareincludedatnote4‘Keysourcesofestimationuncertainty’.

Rottnest Island Authority – Annual Report 2008-2009 39 (c) ReportingEntity ThereportingentitycomprisestheRottnestIslandAuthority.  (d) Income RevenueRecognition Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the majorbusinessactivitiesasfollows:  Saleofgoods Revenueisrecognisedfromthesaleofgoodsanddisposalofotherassetswhenthesignificantrisksandrewards ofownershipcontroltransfertothepurchaserandcanbemeasuredreliably.  Renderingofservices Revenueisrecognisedondeliveryoftheservicetothecustomerorbyreferencetothestageofcompletionof thetransaction.

Grants,donations,giftsandothernonͲreciprocalcontributions Revenue is recognised at fair value when the Authority obtains control over the assets comprising the contributions,usuallywhencashisreceived.  Other nonͲreciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services wouldbepurchasedifnotdonated.  Wherecontributionsrecognisedasrevenuesduringthereportingperiodwereobtainedontheconditionthat they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the balance sheet date, the nature of, and amounts pertaining to those undischarged conditionsaredisclosedinthenotes.

Rentalincome Rental income is accounted for on a straight line basis over the lease term. Rental income is recognised as incomeintheperiodsinwhichitisearned.  Interest Revenueisrecognisedastheinterestaccrues.  Gains Gainsmayberealisedorunrealisedandareusuallyrecognisedonanetbasis.Theseincludegainsarisingonthe disposalofnonͲcurrentassetsandsomerevaluationsofnonͲcurrentassets.

(e) BorrowingCosts Borrowingcostsareexpensedintheperiodtheyareincurred.  (f) Property,plant,equipmentandvehiclesandInfrastructure Capitalisation/Expensingofassets Itemsofproperty,plant,equipmentandvehiclesandinfrastructurecosting$5,000ormorearerecognisedas assetsandthecostofutilisingassetsisexpensed(depreciated)overtheirusefullives.Itemsofproperty,plant, equipmentandvehiclesandinfrastructurecostinglessthan$5,000areexpenseddirecttotheIncomeStatement (otherthanwheretheyformpartofagroupofsimilaritemswhicharesignificantintotal).  Initialrecognitionandmeasurement Allitemsorproperty,plant,equipmentandvehiclesandinfrastructureareinitiallyrecognisedatcost.  Foritemsofproperty,plant,equipmentandvehiclesandinfrastructureacquiredatnocostorfornominalcost, costistheirfairvalueatthedateofacquisition.



40 Rottnest Island Authority – Annual Report 2008-2009 Subsequentmeasurement Afterrecognitionasanasset,theAuthorityusestherevaluationmodelforthemeasurementofland,buildings, worksofartandinfrastructureandthecostmodelforallotherproperty,plant,equipmentandvehicles.Land, buildings and infrastructure are carried at their fair value less accumulated depreciation and accumulated impairmentlosses.Worksofartarecarriedattheirfairvalue.Allotheritemsofproperty,plant,equipmentand vehiclesarecarriedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses.  Wheremarketevidenceisnotavailable,thefairvalueoflandandbuildingshasbeendeterminedonthebasisof existinguse.Thisnormallyapplieswherebuildingsarespecialisedorwherelanduseisrestricted.Fairvaluefor existinguseassetsisdeterminedbyreferencetothecostofreplacingtheremainingfutureeconomicbenefit embodied in the asset, i.e. the written down current replacement cost. Where the fair value of buildings is dependent on using the depreciated replacement cost, the gross carrying amount and the accumulated depreciationarerestatedproportionately.  Independent valuations of land and buildings are provided annually by Valuation Services (Land Information AuthorityofWA)andrecognisedwithsufficientregularitytoensurethatthecarryingamountdoesnotdiffer materiallyfromtheasset’sfairvalueatthebalancesheetdate.  Fair value of infrastructure has been determined by reference to the written down current replacement cost (existing use basis) as the assets are specialised and no market evidence of value is available. Land under infrastructure is included in land reported under property, plant, equipment and vehicles. Independent valuationsareobtainedevery3to5years.  Wheninfrastructureisrevalued,theaccumulateddepreciationisrestatedproportionatelywiththechangeinthe grosscarryingamountoftheassetsothatthecarryingamountoftheassetafterrevaluationequalsitsrevalued amount.  Themostsignificantassumptionsinestimatingfairvaluearemadeinassessingwhethertoapplytheexistinguse basistoassetsandindeterminingestimatedusefullife.Professionaljudgementbythevaluerisrequiredwhere evidencedoesnotprovideacleardistinctionbetweenmarkettypeassetsandexistinguseassets.Refertonote 21‘Property,plant,equipmentandvehicles’andnote22‘Infrastructure’forfurtherinformationonrevaluations.  Derecognition Upondisposalorderecognitionofanitemofproperty,plant,equipmentandvehiclesandinfrastructure,any revaluationreserverelatingtothatassetisretainedintheassetrevaluationreserve.  Depreciation AllnonͲcurrentassetshavingalimitedusefullifearesystematicallydepreciatedovertheirestimatedusefullives inamannerwhichreflectstheconsumptionoftheirfutureeconomicbenefits.  Landisnotdepreciated.Depreciationonotherassetsiscalculatedusingthestraightlinemethod,usingrates whicharereviewedannually.Depreciationratesusedareasfollows:  Buildings ...... 20to40years Computers&ElectronicEquipment...... 3to5years Furniture...... 3to5years Plant&Vehicles...... 3to5years LeaseholdImprovements...... 10to15years Infrastructure ...... 55to80years InfrastructureͲGas ...... 1to3years  WorksofartcontrolledbytheAuthorityareclassifiedasheritageassetswhichareanticipatedtohaveverylong and indefinite useful lives. Their service potential has not, in any material sense, been consumed during the reportingperiodandsonodepreciationhasbeenrecognised.  Similarly,theOliverHillBattery,whichformspartoftheproperty,plant,equipmentandvehiclesclass,hasan indefiniteusefullife,andtherefore,nodepreciationhasbeenappliedtothisasset.

Rottnest Island Authority – Annual Report 2008-2009 41  (g) IntangibleAssets Capitalisation/Expensingofassets Acquisitionsforintangibleassetscostingover$5,000arecapitalised.Thecostofutilisingtheassetsisexpensed (amortised)overtheirusefullife.Costsincurredoflessthan$5,000areimmediatelyexpenseddirectlytothe IncomeStatement.  Allacquiredandinternallydevelopedintangibleassetsareinitiallymeasuredatcost.Forassetsacquiredatno costorfornominalcost,costistheirfairvalueatdateofacquisition.  The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulatedamortisationandaccumulatedimpairmentlosses.  Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimatedusefullife)onthestraightlinebasisusingrateswhicharereviewedannually.Allintangibleassets controlled by the Authority have a finite useful life and zero residual value. Amortisation rates used are as follows:  Software ...... 3to5years  Computersoftware Softwarethatisanintegralpartoftherelatedhardwareistreatedasproperty,plant,equipmentandvehicles. Softwarethatisnotanintegralpartoftherelatedhardwareistreatedasanintangibleasset.Softwarecosting lessthan$5,000isexpensedintheyearofacquisition.  RighttoAcquireRottnestDome TherighttoacquireRottnestDomeisnotamortisedandissubjecttoanassetimpairmenttest.  (h) ImpairmentofAssets Property,plant,equipmentandvehicles,infrastructureandintangibleassetsaretestedforanyindicationofimpairmentat each balance sheet date. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverableamountislessthanthecarryingamount,theassetisconsideredimpairedandiswrittendowntotherecoverable amountandanimpairmentlossisrecognised.AstheAuthorityisanotͲforͲprofitentity,unlessanassethasbeenidentifiedas asurplusasset,therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellanddepreciatedreplacement cost.  Theriskofimpairmentisgenerallylimitedtocircumstanceswhereanasset’sdepreciationismateriallyunderstated,where thereplacementcostisfallingorwherethereisasignificantchangeinusefullife.Eachrelevantclassofassetsisreviewed annuallytoverifythattheaccumulateddepreciation/amortisationreflectsthelevelofconsumptionorexpirationoftheassets futureeconomicbenefitsandtoevaluateanyimpairmentriskfromfallingreplacementcosts.

Seenote24‘Impairmentofassets’fortheoutcomeofimpairmentreviewsandtesting. Seenote2(m)‘Receivables’andnote20‘Receivables’forimpairmentofreceivables.  (i) Leases TheAuthorityhasenteredintoanumberofoperatingleaseagreementsforthehotel,buildings,motorvehicles, officeandotherequipment.Leasepaymentsareexpensedonastraightlinebasisovertheleasetermasthis representsthepatternofbenefitsderivedfromtheleasedassets.  (j) FinancialInstruments Inadditiontocash,theAuthorityhasthreecategoriesoffinancialinstrument: x Loansandreceivables; x HeldͲtoͲmaturityinvestments(commercialbills)andtermdeposits;and x FinancialLiabilitiesmeasuredatamortisedcost.    

42 Rottnest Island Authority – Annual Report 2008-2009 Thesehavebeendisaggregatedintothefollowingclasses:  FinancialAssets x Cashandcashequivalents x Receivables x Amountsreceivableforservices x Termdeposits  FinancialLiabilities x Payables x WATCborrowings x Refundabledepositsandbonds  Initialrecognitionandmeasurementisatfairvalue.Thetransactioncostorfacevalueistheequivalenttothe fairvalue.Subsequentmeasurementisatamortisedcostusingtheeffectiveinterestmethod.  Thefairvalueofshorttermreceivablesandpayablesisthetransactioncostorthefacevaluebecausethereisno interestrateapplicableandsubsequentmeasurementisnotrequiredastheeffectofdiscountingisnotmaterial.  (k) CashandCashEquivalents For the purpose of the Cash Flow Statement, cash and cash equivalents includes restricted cash and cash equivalents.TheseincludecashonhandandshortͲtermdepositswithoriginalmaturitiesofthreemonthsorless thatarereadilyconvertibletoaknownamountofcashandwhicharesubjecttoinsignificantriskofchangesin value.  (l) Inventories Inventoriesarevaluedatthelowerofcostandnetrealisablevalue.Costsareassignedbytheweightedaverage costmethod.  Inventories not held for resale are valued at cost unless they are no longer required, in which case they are valuedatnetrealisablevalue.  (m) Receivables Receivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts (impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identifiedasuncollectiblearewrittenoffagainsttheallowanceaccount.Theallowanceforuncollectibleamounts (doubtfuldebts)israisedwhenthereisobjectiveevidencethattheAuthoritywillnotbeabletocollectitsdebts. Thecarryingamountisequivalenttofairvalueasitisdueforsettlementwithin30days.Seenote2(j)‘Financial Instruments’andnote20‘Receivables’.  (n) Payables PayablesarerecognisedwhentheAuthoritybecomesobligedtomakefuturepaymentsasaresultofapurchase of assets or services at the amounts payable. The carrying amount is equivalent to fair value, as they are generallysettledwithin30days.Seenote2(j)‘FinancialInstruments’andnote25‘Payables’.  (o) Borrowings LoansfromtheWesternAustralianTreasuryCorporationarerecognisedatcost,beingthefairvalueofthenet proceedsreceived.Subsequentmeasurementisatamortisedcostusingtheeffectiveinterestratemethod.See note2(j)‘FinancialInstruments’andnote26‘Borrowings’.  (p) Provisions Provisionsareliabilitiesofuncertaintimingandamountandarerecognisedwherethereisapresentlegalorconstructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliableestimatecanbemadeoftheamountoftheobligation.Provisionsarereviewedateachbalancesheetdate.Seenote 27‘Provisions’.  

Rottnest Island Authority – Annual Report 2008-2009 43  (ii) Provisions–Other EmploymentOnͲCosts EmploymentonͲcosts,includingworkers’compensationinsuranceandpayrolltax,arenotemployeebenefitsandare recognised separately as liabilities and expenses when the employment to which they relate has occurred. EmploymentonͲcostsarenotincludedaspartoftheAuthority’s‘Employeebenefitsexpense’andtherelatedliabilityis includedinEmploymentonͲcostsprovision.Seenote16‘Otherexpenses’andnote27‘Provisions’.  (q) SuperannuationExpense Thesuperannuationexpenseofthedefinedbenefitplansismadeupofthefollowingelements: x Currentservicecost; x Interestcost(unwindingofthediscount); x Actuarialgainsandlosses;and x Pastservicecost  Actuarial gains and losses of the defined benefit plans are recognised immediately as income or expense in the Income Statement.  Thesuperannuationexpenseofthedefinedcontributionplansisrecognisedasandwhenthecontributionsfalldue.  Seealsonote2(p)(i)‘Provisions–EmployeeBenefits’undertheheadingSuperannuation.  (r) AccruedSalaries Accruedsalaries(refernote25‘Payables’)representtheamountduetostaffbutunpaidattheendofthefinancialyear,asthe endofthelastpayperiodforthatfinancialyeardoesnotcoincidewiththeendofthefinancialyear.Accruedsalariesare settledwithinafewdaysofthefinancialyear end.TheAuthorityconsidersthecarryingamountofaccruedsalariestobe equivalenttothenetfairvalue.  (s) ServicesReceivedFreeofChargeorforNominalCost Servicesreceivedfreeofchargeorfornominalcostthatcanbereliablymeasuredarerecognisedasrevenues andasassetsorexpensesasappropriateatfairvalue.  (t) SegmentInformation Segmentinformationispreparedinconformitywiththeaccountingpoliciesoftheentityasdisclosedinnote2. Segment revenues and expenses are allocated on the basis of direct attribution and reasonable estimates of usage.  Segmentinformationhasbeendisclosedbyservice.Seenote39‘Segmentinformation’.  (u) ContributedEquity Interpretation1038‘ContributionsbyOwnersMadetoWhollyͲOwnedPublicSectorEntities’requirestransfersin thenatureofequitycontributionstobedesignatedbytheGovernment(owners)ascontributionsbyowners(at thetimeof,orpriortotransfer)beforesuchtransferscanberecognisedasequitycontributionsinthefinancial statements. Capital contributions (appropriations) have been designated as contributions by owners by Treasurer’sInstruction955‘ContributionsbyOwnersmadetoWhollyOwnedPublicSectorEntities’andhave beencrediteddirectlytoContributedEquity.  (v) ComparativeFigures Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the currentfinancialyear.  3 Judgementsmadebymanagementinapplyingaccountingpolicies  Thejudgementsthathavebeenmadeintheprocessofapplyingaccountingpoliciesthathavehadasignificanteffectonthe amountsrecognisedinthefinancialstatementsinclude: x Themarketvalueofleaserentalsreceivedindeterminingthevalueofassetsreceivedfreeofcharge.  

44 Rottnest Island Authority – Annual Report 2008-2009 4 Keysourcesofestimationuncertainty  The key estimates and assumptions made concerning the future, and other key sources of estimation uncertainty at the balancesheetdateinclude: x Discountratesusedinestimatingprovisions. x Estimatingusefullifeandrecoverableamountofkeyassets. x Longserviceleave–retentionratesanddiscountrates;and x Actuarialassumptionsusedindeterminingsuperannuationliabilities. x Thefairvalueofassetsreceivedfreeofcharge. These assumptions do not have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilitieswithinthenextfinancialyear.

5 Disclosureofchangesinaccountingpolicyandestimates  InitialapplicationofanAustralianAccountingStandard The Authority has applied the following Australian Accounting Standards and Australian Accounting Interpretations effective for annual reporting periods beginning on orafter 1 July2008 that impacted on the Authority:  Review of AAS 27 “Financial Reporting by Local Government”, 29 “Financial Reporting by Government Departmentsand31“FinancialReportingbyGovernments”.TheAASBhasmadethefollowingpronouncements fromitsshorttermreviewofAAS27,AAS29andAAS31:  AASB1004‘Contributions”  AASB1050‘Administereditems’

AASB1051‘LandUnderRoads’  AASB1052‘DisaggregatedDisclosures’  AASB2007Ͳ9‘AmendmentstoAustralianAccountingStandardsarisingfromreviewofAASs27,29and31[AASB 3,AASB5,AASB8,AASB101,AASB114,AASB116,AASB127&AASB137]  Interpretation1038‘ContributionsbyOwnersmadetoWhollyͲownedPublicSectorentities’  TheexistingrequirementsinAAS27,AAS29andAAS31havebeentransferredtotheabovenewandrevised topicͲbased Standards and Interpretation.  These requirements remain substantivelyunchanged.  AASB 1050, AASB1051andAASB1052donotapplytoStatutoryAuthorities.TheotherStandardsandInterpretationmake somemodificationstodisclosuresandprovideadditionalguidance(forexample,AustralianGuidancetoAASB 116‘Property,PlantandEquipment’inrelationtoheritageandculturalassetshasbeenintroduced),otherwise, thereisnofinancialimpact.  FutureimpactofAustralianAccountingStandardsnotyetoperative  The Authority cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretation unless specifically permitted by TI 1101 ‘Application of Australian Accounting Standards and Other Pronouncements’.Consequently,theAuthorityhasnotappliedthefollowingAustralianAccountingStandards andAustralianAccountingInterpretationsthathavebeenissuedbutarenotyeteffective.Whereapplicable,the AuthorityplanstoapplytheseStandardsandinterpretationsfromtheirapplicationdate:  x AASB101‘PresentationofFinancialStatements’(September2007).ThisStandardhasbeenrevisedand willchangethestructureofthefinancialstatements.Thesechangeswillrequirethatownerchangesin equityarepresentedseparatelyfromnonͲownerchangesinequity.TheAuthoritydoesnotexpectany financialimpactwhentheStandardisfirstapplied. 

Rottnest Island Authority – Annual Report 2008-2009 45 x AASB2009Ͳ2‘AmendmentstoAustralianAccountingStandards–ImprovingDisclosuresaboutFinancial 10 Netgain/(loss)ondisposalofnonͲcurrentassets    Instruments[AASB4,AASB7,AASB1023andAASB1038]’.ThisStandardamendsAASB7andwillrequire     2008/2009 2007/2008 enhanceddisclosuresaboutfairvaluemeasurementsandliquidityriskwithrespecttofinancial     $ $ instruments.TheAuthoritydoesnotexpectanyfinancialimpactwhentheStandardisfirstapplied.   CostofdisposalofnonͲcurrentassets       Plant,vehiclesandfurniture   Ͳ (151,352) x AASB2009Ͳ6‘AmendmentstoAustralianAccountingStandards’–Thisstandardisapplicabletoannual  ProceedsfromdisposalofnonͲcurrentassets     reportingperiodsbeginningonorafter1January2009thatendonorafter30June2009.These  Plant,vehiclesandfurniture   11,812 91,222 amendmentshavenomajorimpactontherequirementsoftheamendedpronouncements.     11,812 (60,130)  x AASB2209Ͳ7‘AmendmentstoAustralianAccountingStandards’[AASB5,7,107,112,136&139and Interpretation17]–ThisStandardisapplicabletoannualreportingperiodsbeginningonorafter1July 11 Employeebenefitsexpense     2009.Theseamendmentshavenomajorimpactontherequirementsoftheamendedpronouncements.     2008/2009 2007/2008     $ $  Wagesandsalaries   7,090,069 6,053,943 6 Tradingprofit      SuperannuationͲdefinedcontributionplans   584,147 495,941     2008/2009 2007/2008  SuperannuationͲdefinedbenefitplans(seenote27)  83,730 107,135 (a)     $ $  Longserviceleave    208,678 102,188 (a)  Sales   490,512 1,140,541  Annualleave    414,738 664,909  CostofSales:      Otherrelatedexpenses   98,813 68,488  OpeningInventory   (522,105) (253,341)     8,480,175 7,492,603  Purchases   (231,085) (855,713)           (753,190) (1,109,054)  (a)Includesasuperannuationcontributioncomponent     ClosingInventory   486,346 522,105        CostofGoodsSold   (266,844) (586,949) EmploymentonͲcostssuchasworkers’compensationandpayrolltax     223,668 553,592 areincludedatnote16'OtherExpenses'.TheemploymentonͲcosts   liabilityisincludedatnote27'Provisions'.   7 Provisionofservices          2008/2009 2007/2008 12 Suppliesandservices         $ $     2008/2009 2007/2008     $ $  Accommodationcharges   13,209,097 12,108,204  Facilitiesandtours   3,508,233 4,415,974  Contractors   13,193,216 12,030,927  Admissionfees   4,400,947 4,087,297  Volunteerservices   Ͳ 612,874  Leaseandlicenceincome   2,675,273 2,417,788  Administrationexpense   701,267 1,057,161  Utilitycharges   1,031,913 1,051,082  OtherStaffingCosts   1,032,690 1,011,772  Housingrentals   497,688 534,198  Repairsandmaintenance   1,296,514 998,919  Commissions   Ͳ 2,984  Vehicleleasing   323,317 317,406  ITsystemdevelopment   54,532 55,484     25,323,151 24,617,527  Marketingexpenses   484,643 368,259   Othersupplies&servicescosts   358,125 284,042 8 Commonwealthgrantsandcontributions         17,444,304 16,736,843     2008/2009 2007/2008           $ $ InaccordancewithTreasurer’sInstruction1102,para11,andAASB    NationalIndigenousCadetshipProject   7,000 14,000 1104(Contributions),theAuthorityhasnotaccountedforservices  providedfreeofchargebyvolunteergroupsin2009asithasformed 9 Otherrevenues     theopinionthatwhilsttheyaddtothevisitor’sexperience,theyare     2008/2009 2007/2008 notnecessarilythosewhichtheAuthoritywouldhavepurchasedifthey     $ $  hadnotbeendonated.(Refernote18).  Insurancerecoveries   41,368 233,430   Contributiontoworks   26,894 60,547 13 Depreciationandamortisationexpense      Miscellaneous   158,017 132,112     2008/2009 2007/2008  Donations   24,146 469     $ $     250,425 426,558  Depreciation       Buildings   1,690,436 1,603,715   Computersandelectronicequipment   191,846 318,094   Furniture   1,286,977 332,043

46 Rottnest Island Authority – Annual Report 2008-2009 10 Netgain/(loss)ondisposalofnonͲcurrentassets        2008/2009 2007/2008     $ $  CostofdisposalofnonͲcurrentassets      Plant,vehiclesandfurniture   Ͳ (151,352)  ProceedsfromdisposalofnonͲcurrentassets      Plant,vehiclesandfurniture   11,812 91,222     11,812 (60,130)

11 Employeebenefitsexpense         2008/2009 2007/2008     $ $  Wagesandsalaries   7,090,069 6,053,943  SuperannuationͲdefinedcontributionplans   584,147 495,941  SuperannuationͲdefinedbenefitplans(seenote27)  83,730 107,135  Longserviceleave(a)   208,678 102,188  Annualleave(a)   414,738 664,909  Otherrelatedexpenses   98,813 68,488     8,480,175 7,492,603        (a)Includesasuperannuationcontributioncomponent          EmploymentonͲcostssuchasworkers’compensationandpayrolltax areincludedatnote16'OtherExpenses'.TheemploymentonͲcosts  liabilityisincludedatnote27'Provisions'.    12 Suppliesandservices         2008/2009 2007/2008     $ $  Contractors   13,193,216 12,030,927  Volunteerservices   Ͳ 612,874  Administrationexpense   701,267 1,057,161  OtherStaffingCosts   1,032,690 1,011,772  Repairsandmaintenance   1,296,514 998,919  Vehicleleasing   323,317 317,406  ITsystemdevelopment   54,532 55,484  Marketingexpenses   484,643 368,259  Othersupplies&servicescosts   358,125 284,042     17,444,304 16,736,843       InaccordancewithTreasurer’sInstruction1102,para11,andAASB   1104(Contributions),theAuthorityhasnotaccountedforservices providedfreeofchargebyvolunteergroupsin2009asithasformed theopinionthatwhilsttheyaddtothevisitor’sexperience,theyare notnecessarilythosewhichtheAuthoritywouldhavepurchasedifthey  hadnotbeendonated.(Refernote18).  13 Depreciationandamortisationexpense         2008/2009 2007/2008     $ $  Depreciation      Buildings   1,690,436 1,603,715  Computersandelectronicequipment   191,846 318,094  Furniture   1,286,977 332,043

Rottnest Island Authority – Annual Report 2008-2009 47  Plantandvehicles   605,824 460,338 StateGovernmentOperatingGrant  Leaseholdimprovements   4,575 4,574 TheStateGovernmentOperatingGrantrepresentsthecontribution    Infrastructure   1,544,300 1,515,223 madeundertheDepartmentofTreasuryandFinanceͲAdministered     5,323,958 4,233,987 TransactionsͲGrants,SubsidiesandTransferPayments,Item35Ͳ        RottnestIslandAuthority.  Amortisation      Intangibleassets   165,707 156,264 18 Servicesreceivedfreeofcharge         165,707 156,264     2008/2009 2007/2008           $ $  Totaldepreciationandamortisation   5,489,665 4,390,251  NonͲStateGovernment      VolunteerGroups(i)   Ͳ 612,874 14 Financecosts      GarrettHospitalityPtyLtd(ii)   3,853,007 312,216     2008/2009 2007/2008     3,853,007 925,090     $ $  StateGovernment      Interestexpense   363 296,547  HealthDepartment   Ͳ 35,000  Fees   169,680 9,407  CrownSolicitor'sOffice   Ͳ 10,018     170,043 305,954  WestnetRail   Ͳ 23,475   PublicTransportAuthority   Ͳ 20,340 15 Accommodationexpenses         Ͳ 88,833     2008/2009 2007/2008           $ $  Totalservicesreceivedfreeofcharge   3,853,007 1,013,923  Leaserentals   180,573 166,823        Otheraccommodationexpenses   20,178 19,993 (i) InaccordancewithTreasurer’sInstruction1102,para11,andAASB     200,751 186,815 1104(Contributions),theAuthorityhasnotaccountedforservices  providedfreeofchargebyvolunteergroupsin2009asithasformed 16 Otherexpenses     theopinionthatwhilsttheyaddtothevisitor’sexperience,theyarenot     2008/2009 2007/2008 necessarilythosewhichtheAuthoritywouldhavepurchasediftheyhad     $ $ notbeendonated.(Refernote12).     Furniture,fittingsandequipmentreplacement   160,195 125,382      (ii) TheAuthorityhashadaninflowofeconomicbenefitsfromGarrett  Doubtfuldebtsexpense   27,518 33,000 Hospitalityamountingto$3,853,007forthefinancialyear(prioryear  EmploymentonͲcosts(a)   (16,992) 9,386 $312,216)relatingtotheirpartofbuildingworksundertakenduringthe  Researchanddevelopment   18,930 113,315 yearincludingtheupgrade,improvement,renovationand  Other   6,181 200 refurbishmentoftheRottnestIslandHotel.TheAuthorityconsidersthis     195,832 281,283 revenueasamaterialitemwhichhassignificantlyimpactedonthe       2008/09financialresultoftheAuthority.    (a)Includesworkers’compensationandpayrolltaxemploymentonͲ  costs.TheonͲcostsliabilityassociatedwiththerecognitionofannual 19 Inventories     andlongserviceleaveliabilityisincludedatnote27'Provisions'.     2008/2009 2007/2008 Superannuationcontributionsaccruedaspartoftheprovisionforleave     $ $  areemployeebenefitsandarenotincludedinemploymentonͲcosts.    Inventoriesheldforresale       Visitorscentrestock   15,085 89,758 17 GrantsandsubsidiesfromStateGovernment      Postoffice   4,878 3,377     2008/2009 2007/2008  Bikehirestock   4,083 3,183     $ $     24,046 96,318              StateGovernmentOperatingGrant   2,200,000 2,208,000  Inventoriesnotheldforresale      OfficeofCrimePrevention   15,000 15,000  Materials   251,729 146,547  AboriginalEconomicDevelopment   Ͳ 45,455  Fuels   98,504 218,672  Other   10,400 6,863  Bikehirestock   112,067 60,568     2,225,400 2,275,318     462,300 425,787                       486,346 522,105      

48 Rottnest Island Authority – Annual Report 2008-2009 StateGovernmentOperatingGrant TheStateGovernmentOperatingGrantrepresentsthecontribution   madeundertheDepartmentofTreasuryandFinanceͲAdministered TransactionsͲGrants,SubsidiesandTransferPayments,Item35Ͳ  RottnestIslandAuthority.

18 Servicesreceivedfreeofcharge         2008/2009 2007/2008     $ $  NonͲStateGovernment      VolunteerGroups(i)   Ͳ 612,874  GarrettHospitalityPtyLtd(ii)   3,853,007 312,216     3,853,007 925,090  StateGovernment      HealthDepartment   Ͳ 35,000  CrownSolicitor'sOffice   Ͳ 10,018  WestnetRail   Ͳ 23,475  PublicTransportAuthority   Ͳ 20,340     Ͳ 88,833        Totalservicesreceivedfreeofcharge   3,853,007 1,013,923       (i) InaccordancewithTreasurer’sInstruction1102,para11,andAASB 1104(Contributions),theAuthorityhasnotaccountedforservices providedfreeofchargebyvolunteergroupsin2009asithasformed theopinionthatwhilsttheyaddtothevisitor’sexperience,theyarenot necessarilythosewhichtheAuthoritywouldhavepurchasediftheyhad notbeendonated.(Refernote12).         (ii) TheAuthorityhashadaninflowofeconomicbenefitsfromGarrett Hospitalityamountingto$3,853,007forthefinancialyear(prioryear $312,216)relatingtotheirpartofbuildingworksundertakenduringthe yearincludingtheupgrade,improvement,renovationand refurbishmentoftheRottnestIslandHotel.TheAuthorityconsidersthis revenueasamaterialitemwhichhassignificantlyimpactedonthe 2008/09financialresultoftheAuthority.     19 Inventories         2008/2009 2007/2008     $ $  Inventoriesheldforresale      Visitorscentrestock   15,085 89,758  Postoffice   4,878 3,377  Bikehirestock   4,083 3,183     24,046 96,318        Inventoriesnotheldforresale      Materials   251,729 146,547  Fuels   98,504 218,672  Bikehirestock   112,067 60,568     462,300 425,787           486,346 522,105

Rottnest Island Authority – Annual Report 2008-2009 49   20 Receivables         2008/2009 2007/2008     $ $        Receivables   1,577,642 2,006,014  AccruedRevenue   28,125 14520     1,605,767 2,020,534  Allowanceforimpairmentofreceivables   (961,477) (933,977)     644,290 1,086,557             Reconciliationofchangesintheallowanceforimpairmentof  receivables:          Balanceatthestartoftheyear   933,977 905,310  Doubtfuldebtsexpenserecognisedintheincomestatement  27,500 33,000  Amountswrittenoffduringtheyear   Ͳ (4,333)  Balanceattheendoftheyear   961,477 933,977             TheAuthoritydoesnotholdanycollateralassecurityorothercredit  enhancementsrelatingtoreceivables.        21 Property,plant,equipmentandvehicles         2008/2009 2007/2008     $ $  Land      Atfairvalue(i)   108,103,800 108,603,800        Buildings      Atfairvalue(i)   74,975,452 60,922,092  Accumulateddepreciation   (11,714,938) (9,262,741)     63,260,514 51,659,350        Computersandelectronicequipment      Atcost   1,152,822 1,042,265  Accumulateddepreciation   (1,067,963) (876,117)     84,859 166,148        Furniture      Atcost   6,935,613 2,195,195  Accumulateddepreciation   (2,387,015) (1,100,038)     4,548,598 1,095,157        PlantandVehicles      Atcost   3,184,774 2,977,924  Accumulateddepreciation   (2,158,786) (1,554,520)     1,025,988 1,422,965                  

50 Rottnest Island Authority – Annual Report 2008-2009 Leasehold Improvements At cost 123,236 123,236 Accumulated depreciation (101,519) (96,944) 21,717 26,292

Works of art At fair value(U) 26,400 19,400

Work in progress At cost 1,390,972 1,450,472

178,462,848 164,443,583

(i) Land and Buildings were re-valued as at 30 June 2009 by the Western Australian Land Information Authority (Valuation Services). The valuations were performed during the year ended 30 June 2009. The fair value of all land and buildings has been determined by applying the non market value and depreciated replacement cost method. Refer note 2(f) 'Property, plant, equipment and vehicles and Infrastructure'.

(U) The Rottnest Island artworks were independently valued by Stafford Studios of Fine Art in June 2009. The valuation was performed on a replacement value basis.

Reconciliations

Reconciliations of the carrying amounts of property, plant, equipment and vehicles at the beginning and end of the reporting period are set out below.

2008/2009 Land Buildings Computers Furniture Plant and Leasehold Works Work in Total and vehicles improvemenls of art progress electronic equipment S S $ $ $ $ $ $

Carrying amount 108,603800 51.659350 166148 1095,157 1422,965 26.292 19400 1,450,471 164.443583 at start of year

Additions - 8,556,525 110,557 4,740,418 208,847 - 7,000 - 13.623,349

TransFers - 59,499 - - - - - (59,499) -

Disposals - - - - - . - -

Revaluation (500,000) 4,675,576 - - - - . - 4,175,576 incremenls Depreciation - (1,690,436) (191,846) (1,286,977) (605,824) (4,575) - - (3.779,658) expense Canying amount 108,103,800 63,260,514 84,859 4,548,598 1,025,988 21,717 26,400 1,390,972 178,462,848 at end of year

2001/2008 Land Buildings Computers Furniture Plant and Leasehold Works Work in I Total and vehicles improvements of art progress electronic equipment $ $ $ $ $ $ $ $ Carrying amount 90,700,000 46,025,156 506,543 1,084,280 1,046,335 30,866 19,400 496,054 139,908,634 at start of year Additions - 2,798,829 - 407,686 897,687 - - 1,086,205 5,190,407 Transfers - 126,788 - - 5,000 - - (131,788) -

Disposals - - (22,301) (64,767) (64,284) - - - (151,352)

Reyaluathn 17,903,800 4,312,292 ------22,216,092 increments Deprecialion - (1,603,715) (318,094) (332,043) (461.773) (4,574) - - (2.720,198) expense Carrying amount 108,603,800 51,659,350 166,148 1,095,157 1,422,965 26,292 19,400 1,450,471 164,443,583 at end of year

Rottnest Island Authority – Annual Report 2008-2009 51  22 Infrastructure     25 Payables         2008/2009 2007/2008     2008/2009 2007/2008     $ $     $ $              Atfairvalue   45,042,512 47,534,360  Tradepayables   3,677,935 4,139,255  AccumulatedDepreciation   (17,232,130) (15,976,539)  Accruedexpenses   121,711 212,451     27,810,382 31,557,821  Accruedsalaries   87,664 51,240           3,887,310 4,402,946  Reconciliation            26 Borrowings      Carryingamountatstartofyear   31,557,736 33,072,959     2008/2009 2007/2008  Additions   757,601 Ͳ     $ $  Revaluationincrements   (2,960,655) Ͳ        Depreciationexpense   (1,544,300) (1,515,223)  Current   Ͳ 4,690,567  Carryingamountatendofyear   27,810,382 31,557,736  WesternAustralianTreasuryCorporationLoan   Ͳ 4,690,567        Thelatestrevaluationoninfrastructurewasperformedinaccordance   27 Provisions     withanindependentvaluationbyAustralianValuationPartnersPtyLtd.     2008/2009 2007/2008 Theeffectivedateofthevaluationwas30June2009.Fairvaluewas     $ $  determinedonthebasisofdepreciatedreplacementcost.  Current       Employeebenefitsprovision            Annualleave(a)   743,645 920,132 23 Intangibleassets      Longserviceleave(b)   361,291 486,163     2008/2009 2007/2008  Timeinlieu   74,425 57,100     $ $  Superannuation(d)   37,761 80,340  RighttoReceivetheRottnestDomeBuilding   777,660 Ͳ  Leavepurchase   3,804 2,694  Computersoftwareatcost   718,924 600,980     1,220,926 1,546,428  Accumulatedamortisation   (611,887) (446,180)           884,697 154,800  Otherprovisions            EmploymentonͲcosts(c)   89,546 109,457  Reconciliation         89,546 109,457              Carryingamountatstartofyear   154,800 274,393     1,310,472 1,655,884  Additions   895,604 36,671        Disposals   Ͳ (58,073)        Amortisationexpense   (165,707) (98,191)  NonͲcurrent      Carryingamountatendofyear   884,697 154,800  Employeebenefitsprovision      (b)  Longserviceleave    362,925 263,267 24 Impairmentofassets      Superannuation(d)   368,864 296,874       TherewerenoindicationsofimpairmenttoProperty,plant,equipmentandvehicles,Infrastructureand     731,789 560,141  Intangibleassetsat30June2009or2008.              Otherprovisions     (c) TheAuthorityheldnointangibleassetswithanindefiniteusefullifeduringthereportingperiodandat  EmploymentonͲcosts    27,002 19,851 balancesheetdate,otherthantherighttoreceivetheRottnestDomebuilding,therewerenointangible     27,002 19,851  assetsnotyetavailableforuse.                 758,791 579,992 Allsurplusassetsat30June2009and2008haveeitherbeenclassifiedasnonͲcurrentassetsheldforsale  orwrittenoff. 

52 Rottnest Island Authority – Annual Report 2008-2009  25 Payables         2008/2009 2007/2008     $ $        Tradepayables   3,677,935 4,139,255  Accruedexpenses   121,711 212,451  Accruedsalaries   87,664 51,240     3,887,310 4,402,946  26 Borrowings         2008/2009 2007/2008     $ $        Current   Ͳ 4,690,567  WesternAustralianTreasuryCorporationLoan   Ͳ 4,690,567  27 Provisions         2008/2009 2007/2008     $ $  Current      Employeebenefitsprovision      Annualleave(a)   743,645 920,132  Longserviceleave(b)   361,291 486,163  Timeinlieu   74,425 57,100  Superannuation(d)   37,761 80,340  Leavepurchase   3,804 2,694     1,220,926 1,546,428        Otherprovisions      EmploymentonͲcosts(c)   89,546 109,457     89,546 109,457           1,310,472 1,655,884              NonͲcurrent      Employeebenefitsprovision      Longserviceleave(b)   362,925 263,267  Superannuation(d)   368,864 296,874     731,789 560,141        Otherprovisions      EmploymentonͲcosts(c)   27,002 19,851     27,002 19,851           758,791 579,992

Rottnest Island Authority – Annual Report 2008-2009 53  (a)Annualleaveliabilitieshavebeenclassifiedascurrentwherethereis    Reconciliationofthefairvalueofplanassetsisasfollows:     nounconditionalrighttodefersettlementforatleast12monthsafter  Fairvalueofplanassetsatstartofyear  0 0 0 0 reportingdate.Assessmentsindicatethatactualsettlementofthe  Employercontributions  32 42 0 0  liabilitieswilloccurasfollows:  Benefitspaid  (32) (42) 0 0        Fairvalueofplanassetsatendofyear  0 0 0 0  Within12monthsofbalancesheetdate   329,469 375,446         Morethan12monthsafterbalancesheetdate   414,176 544,685 Theprincipalactuarialassumptionsused(expressedas     743,645 920,132  weightedaverages)wereasfollows:               2008/09 2007/08 2006/07 (b)Longserviceleaveliabilitieshavebeenclassifiedascurrentwhere    Discountrate   5.34% 6.64% 6.06% thereisnounconditionalrighttodefersettlementforatleast12  Futuresalaryincreases   4.50% 4.50% 4.50% monthsafterreportingdate.Assessmentsindicatethatactual         settlementoftheliabilitieswilloccurasfollows:  Historicsummary             PensionScheme:       Within12monthsofbalancesheetdate   325,756 353,425  Presentvalueofunfundedobligation   309 289 296  Morethan12monthsafterbalancesheetdate   398,459 396,004  Fairvalueofplanassets   0 0 0     724,215 749,429  Deficit   309 289 296              (c)Thesettlementofannual,longserviceandtimeinlieuliabilitiesgives    PreͲtransferBenefitͲGoldStateSuperannuationScheme:     risetothepaymentofemploymentonͲcostsincludingworkers'  Presentvalueofunfundedobligation   52 41 16 compensationandpayrolltax.Theprovisionismeasuredatthepresent  Fairvalueofplanassets   0 0 0 valueofexpectedfuturepayments.Theassociatedexpense,apartfrom  Deficit   52 41 16 theunwindingofthediscount(financecost),isincludedatnote16         'OtherExpenses'.  Experienceadjustmentsarisingonplanliabilities:        PensionScheme:   15 28 20  (d)Definedbenefitsuperannuationplans       PreͲtransferBenefitͲGoldStateSuperannuationScheme:  4 26 (11)         Theamountsrecognisedintheincomestatementareasfollows:    Employerfundingarrangementsforthedefinedbenefitplans         PreͲtransferbenefitͲ            GoldState (a)TheamountsrecordedfortheGoldStateSuperannuationSchemerelatetotheschemeasawhole(ie:thepreͲ    PensionScheme Superannuation transferbenefitcomponentplustheconcurrentlyfundedbenefitcomponent).     Scheme          2008/09 2007/08 2008/09 2007/08 ThefundingpolicyadoptedbytheGovernmentinrespectofthedefinedbenefitplansisdirectedatensuringthat    $'000 $'000 $'000 $'000 benefitsaccruingtomembersandbeneficiariesarefullyfundedatthetimethebenefitsbecomepayable.Assuch,        theSchemes’actuaryhasconsideredlongtermtrendsinsuchfactorsasschememembership,salarygrowthand  Currentservicecost  0 0 0 0 averagemarketvalueoftheschemes’assetswhenadvisingtheGovernmentonemployerandemployee  Interestcost(unwindingofthediscount)  18 17 3 1 contributionrates.TheemployerfundingarrangementsforthedefinedbenefitplansundertheSuperannuationand  Netactuariallosses/(gains)recognised  34 18 8 24 FamilyBenefitsAct1938(PensionScheme)andtheGovernmentEmployeesSuperannuationAct1987(GoldState Total,includedinEmployeebenefitsexpense(see SuperannuationScheme)aresummarisedasfollows:  note11)  52 35 11 25              PensionScheme:  Theamountsrecognisedinthebalancesheetareasfollows:    ThePensionSchemeisaunitbasedscheme.Thelevelofpensionpayableisdeterminedbythenumberofunits  Presentvalueofunfundedobligations  309 289 52 41 purchased,thelengthofserviceandthefinalsalaryofthemember.Theemployerliabilityisfundedonlyonthe  Liabilityinthebalancesheet  309 289 52 41 emergenceofamember’spensionbenefitentitlementandisrecoupedbytheGovernmentEmployees        SuperannuationBoardfortnightlyfollowingthepaymentofeachpension. Reconciliationoftheunfundedliabilityrecognisedinthe        balancesheetisasfollows:     Employercontributionsof$34,000areexpectedtobepaidtothePensionSchemefortheyearending  Liabilityatstartofyear  289 296 41 16 30June2010.  Currentservicecost  0 0 0 0 GoldStateSuperannuationScheme:  Interestcost(unwindingofthediscount)  18 17 3 1 TheGoldStateSuperannuationSchemeisalumpsumscheme.TheAuthorityisrequiredundertheState  Netactuariallosses/(gains)recognised  34 18 8 24 SuperannuationRegulations2001tomakeconcurrentemployercontributionsdirecttotheSchemeinrespectof  Benefitspaid  (32) (42) 0 0 contributorymemberswhoaretheAuthority’semployees.  Liabilityatendofyear  309 289 52 41      

54 Rottnest Island Authority – Annual Report 2008-2009   Reconciliationofthefairvalueofplanassetsisasfollows:      Fairvalueofplanassetsatstartofyear  0 0 0 0  Employercontributions  32 42 0 0  Benefitspaid  (32) (42) 0 0  Fairvalueofplanassetsatendofyear  0 0 0 0        Theprincipalactuarialassumptionsused(expressedas  weightedaverages)wereasfollows:         2008/09 2007/08 2006/07  Discountrate   5.34% 6.64% 6.06%  Futuresalaryincreases   4.50% 4.50% 4.50%         Historicsummary       PensionScheme:       Presentvalueofunfundedobligation   309 289 296  Fairvalueofplanassets   0 0 0  Deficit   309 289 296         PreͲtransferBenefitͲGoldStateSuperannuationScheme:      Presentvalueofunfundedobligation   52 41 16  Fairvalueofplanassets   0 0 0  Deficit   52 41 16         Experienceadjustmentsarisingonplanliabilities:       PensionScheme:   15 28 20  PreͲtransferBenefitͲGoldStateSuperannuationScheme:  4 26 (11)

Employerfundingarrangementsforthedefinedbenefitplans          (a)TheamountsrecordedfortheGoldStateSuperannuationSchemerelatetotheschemeasawhole(ie:thepreͲ transferbenefitcomponentplustheconcurrentlyfundedbenefitcomponent).       ThefundingpolicyadoptedbytheGovernmentinrespectofthedefinedbenefitplansisdirectedatensuringthat benefitsaccruingtomembersandbeneficiariesarefullyfundedatthetimethebenefitsbecomepayable.Assuch, theSchemes’actuaryhasconsideredlongtermtrendsinsuchfactorsasschememembership,salarygrowthand averagemarketvalueoftheschemes’assetswhenadvisingtheGovernmentonemployerandemployee contributionrates.TheemployerfundingarrangementsforthedefinedbenefitplansundertheSuperannuationand FamilyBenefitsAct1938(PensionScheme)andtheGovernmentEmployeesSuperannuationAct1987(GoldState SuperannuationScheme)aresummarisedasfollows:       PensionScheme: ThePensionSchemeisaunitbasedscheme.Thelevelofpensionpayableisdeterminedbythenumberofunits purchased,thelengthofserviceandthefinalsalaryofthemember.Theemployerliabilityisfundedonlyonthe emergenceofamember’spensionbenefitentitlementandisrecoupedbytheGovernmentEmployees SuperannuationBoardfortnightlyfollowingthepaymentofeachpension.       Employercontributionsof$34,000areexpectedtobepaidtothePensionSchemefortheyearending 30June2010. GoldStateSuperannuationScheme: TheGoldStateSuperannuationSchemeisalumpsumscheme.TheAuthorityisrequiredundertheState SuperannuationRegulations2001tomakeconcurrentemployercontributionsdirecttotheSchemeinrespectof contributorymemberswhoaretheAuthority’semployees.      

Rottnest Island Authority – Annual Report 2008-2009 55 Theemployercontributionratefor2008Ͳ09forcontributorymemberswas12%(2007Ͳ08:12%)ofamember’s  Land   (500,000) 17,903,800 salary,basedona5%membercontribution.Theemployercontributionrateisproportionatelylessormorewhere  Buildings   4,675,576 4,312,292 memberselectacontributionrateof3%,4%,6%or7%ofsalary.  Infrastructure   (2,960,655) Ͳ        Balanceatendoftheperiod   152,865,057 151,650,136 InrespectofthosememberswhotransferredtheirmembershipfromthePensionScheme,theemployerliabilityin       relationtoserviceorperiodofemploymentconstitutedasserviceforthepurposesoftheSuperannuationand       FamilyBenefitsAct1938,iscalculatedatarateof12%offinalaveragesalaryforeachyearofsuchservice,based  RetainedEarnings     upona5%member’saveragecontributionratetothescheme(thisrateisproportionatelylesswhereamember’s  Balanceatthestartoftheperiod   3,808,285 3,290,682 averagecontributionrateislessthan5%).Thisemployerliabilitybecomespayableonthepaymentofthebenefitto  Resultfortheperiod   923,162 517,603 themember.  Balanceatendoftheperiod   4,731,447 3,808,285       EmployercontributionsofnilareexpectedtobepaidtotheGoldStateSuperannuationSchemefortheyearending 30 NotestotheCashFlowStatement     30June2010.     2008/2009 2007/2008 MovementsinOtherProvisions          $ $     2008/2009 2007/2008  ReconciliationofCash         $ $ CashattheendofthefinancialyearasshownintheCashFlow   EmploymentonͲcostprovision      StatementisreconciledtotherelateditemsintheBalanceSheetas Carryingamountatstartofperiod    129,308 105,126  follows: Additionalprovisionsrecognised    49,426 72,636  Cashandcashequivalents   10,803,565 20,580,980 Payments/othersacrificesofeconomicbenefits    (62,185) (48,454)  NonͲcurrentcashandcashequivalents   6,000,000 Ͳ Carryingamountatendofperiod    116,549 129,308     16,803,565 20,580,980        28 Otherliabilities     Reconciliationofprofittonetcashflowsprovidedbyoperating     2008/2009 2007/2008  activities       $ $              Profitfortheperiod   923,162 517,603  Currentliabilities            Refundabledepositsandbonds   9,391,914 7,716,032  Noncashitems:      Leasesinadvance   100,000 100,000  Depreciationandamortisationexpense   5,489,665 4,390,251  DeferredIncome   738,777 Ͳ  Netloss/(gain)onsaleofproperty,plantandequipment  (11,812) 60,130  Unclaimedmoney   57,507 58,932  Doubtfuldebtsexpense   27,500 33,000  Fringebenefitstax   (14,480) (59,346) Servicesreceivedfreeofcharge(RottnestIslandHotel     10,273,718 7,815,618  improvements)   (3,853,007) (356,031)              NonͲcurrentliabilities      GrantsandsubsidiesfromStateGovernment   (2,225,400) (2,275,318)  Leasesinadvance   1,233,333 1,333,333           1,233,333 1,333,333  (Increase)/decreaseinassets:       Receivables   150,426 (223,467) 29 Equity      Inventories   35,759 (224,950)     2008/2009 2007/2008  NonͲcurrentassets   (777,660) Ͳ     $ $        ContributedEquity      Increase/(decrease)inliabilities:      Balanceatthestartoftheperiod   42,409,000 36,753,000  CurrentPayables   (499,612) 1,173,312  Contributionsbyowners:      CurrentProvisions   (345,412) 282,258  Capitalcontribution(a)   7,623,000 5,656,000  Otherliabilities   2,407,619 1,542,988  Balanceatendoftheperiod   50,032,000 42,409,000  NonͲcurrentprovisions   178,799 (107,209) (a)Capitalcontributionshavebeendesignatedascontributionsby  NonͲcurrentliabilities   (100,000) 1,333,333 ownersinaccordancewithAASBInterpretation1038‘Contributionsby        OwnersMadetoWhollyͲOwnedPublicSectorEntities.’    NetGSTpayments   298,799 (1)         ChangeinGSTreceivables/payables    Ͳ (214,450)  Reserves            AssetRevaluationReserve:      Netcashprovidedbyoperatingactivities   1,698,826 5,931,448  Balanceatthestartoftheperiod   151,650,136 129,434,044        Netrevaluationincrements:    

56 Rottnest Island Authority – Annual Report 2008-2009  Land   (500,000) 17,903,800  Buildings   4,675,576 4,312,292  Infrastructure   (2,960,655) Ͳ  Balanceatendoftheperiod   152,865,057 151,650,136              RetainedEarnings      Balanceatthestartoftheperiod   3,808,285 3,290,682  Resultfortheperiod   923,162 517,603  Balanceatendoftheperiod   4,731,447 3,808,285

30 NotestotheCashFlowStatement         2008/2009 2007/2008     $ $  ReconciliationofCash     CashattheendofthefinancialyearasshownintheCashFlow   StatementisreconciledtotherelateditemsintheBalanceSheetas  follows:  Cashandcashequivalents   10,803,565 20,580,980  NonͲcurrentcashandcashequivalents   6,000,000 Ͳ     16,803,565 20,580,980       Reconciliationofprofittonetcashflowsprovidedbyoperating  activities          Profitfortheperiod   923,162 517,603        Noncashitems:      Depreciationandamortisationexpense   5,489,665 4,390,251  Netloss/(gain)onsaleofproperty,plantandequipment  (11,812) 60,130  Doubtfuldebtsexpense   27,500 33,000 Servicesreceivedfreeofcharge(RottnestIslandHotel  improvements)   (3,853,007) (356,031)        GrantsandsubsidiesfromStateGovernment   (2,225,400) (2,275,318)        (Increase)/decreaseinassets:      Receivables   150,426 (223,467)  Inventories   35,759 (224,950)  NonͲcurrentassets   (777,660) Ͳ        Increase/(decrease)inliabilities:      CurrentPayables   (499,612) 1,173,312  CurrentProvisions   (345,412) 282,258  Otherliabilities   2,407,619 1,542,988  NonͲcurrentprovisions   178,799 (107,209)  NonͲcurrentliabilities   (100,000) 1,333,333        NetGSTpayments   298,799 (1)  ChangeinGSTreceivables/payables   Ͳ (214,450)        Netcashprovidedbyoperatingactivities   1,698,826 5,931,448      

Rottnest Island Authority – Annual Report 2008-2009 57 31 Commitments      ContingentLiabilities         2008/2009 2007/2008           $ $ TreatmentofContaminatedSites  Capitalexpenditurecommitments     UndertheContaminatedSitesAct2003,theAuthorityisrequiredtoreportknownandsuspected       contaminatedsitestotheDepartmentofEnvironmentandConservation(DEC).Inaccordancewiththe Capitalexpenditurecommitments,beingcontractedcapitalexpenditure   Act,DECclassifiesthesesitesonthebasisoftherisktohumanhealth,theenvironmentand additionaltotheamountsreportedinthefinancialstatements,are environmentalvalues.Wheresitesareclassifiedascontaminated–remediationrequiredorpossibly  payableasfollows: contaminated–investigationrequired,theAuthoritymayhavealiabilityinrespectofinvestigationor        remediationexpenses.  Within1year   927,669 5,804,054 Inthe2007/2008FinancialYeartheAuthorityreportedfourcontaminatedsitestoDEC.Thesehaveyetto     927,669 5,804,054 beclassifiedalthoughtheAuthoritycontinuestoworkwithDECinrespecttothemanagementofthese       sites.Priortofinaldeterminationoftheclassificationprocess,itisnotpracticabletoestimatethe  Thecapitalcommitmentsincludeamountsfor:     potentialfinancialeffectortoidentifytheuncertaintiesrelatingtotheamountortimingofanyoutflows.  Buildings   384,000 4,304,054    Infrastructure   273,669 Ͳ   PlantandVehicles   270,000 Ͳ 33 Eventsoccurringafterthebalancesheetdate      RottnestIslandHotel(‘QuokkaArms’)   Ͳ 1,500,000            927,669 5,804,054 Therearenoeventsthatoccurredafterbalancesheetdatewhichwouldmateriallyaffectthefinancial       statements.     2008/2009 2007/2008      $ $   Leasecommitments     34 ExplanatoryStatement                   Commitmentsinrelationtoleasescontractedforatthebalancesheet    SignificantvariancesbetweenactualandprioryearactualͲrevenueandexpenditure  datebutnotrecognisedasliabilitiesarepayableasfollows:              Detailsandreasonsforsignificantvariationsbetweenactualresultswiththecorrespondingitemsofthe  Within1year   418,156 401,108 prioryeararedetailedbelow.Significantvariationsareconsideredtobethosegreaterthan10%and  Laterthan1yearandnotlaterthan5years   398,587 194,786  $100,000.     816,743 595,894                 2008/2009 2007/2008 Variance Variance  Representing        $ $ $ %  NonͲcancellableoperatingleases   816,743 595,894  Sales  490,512 1,140,541 (650,029) Ͳ57%        Otherrevenues  250,425 426,558 (176,133) Ͳ41% OfficeaccommodationissubletfromtheGovernmentPropertyOffice    Costofsales  266,844 586,949 (320,105) Ͳ54% andrentispayablemonthlyinadvance.Anoptiontorenewthelease  Employeebenefitsexpenses  8,480,175 7,492,603 987,572 13% fortwoyears,withanoptionofafurtheryear,hasbeentakenup.The DepreciationandAmortisation rentalissubjecttoreviewonpredetermineddates,basedonCPI Expense  5,489,665 4,390,162 1,099,503 25%  adjustment.  FinanceCosts  170,043 305,954 (135,911) Ͳ44%       Servicesreceivedfreeofcharge Officeequipmentisleasedoverfouryeartermswithchargespayable    (RottnestIslandHotelimprovements)  3,853,007 1,013,923 2,839,084 280% eitherquarterlyormonthlyinadvance.Optionsexisttocontinueleasing         beyondtheexpirydateortopurchaseatresidualvalue. Sales 32 Contingentliabilities     TheAuthorityleasedtheRottnestIslandHotel(‘QuokkaArms’)inNovember2007toGarrettHospitality        PtyLtdandnolongerreceivesthebenefitofsales.TheRIAoperatedtheHoteluntilNovember2007. Inadditiontotheassetsandliabilitiesincludedinthefinancialstatements,theAuthorityhasthe    followingcontingentliabilities: Otherrevenues       Thedecreaseisduetotheclassificationofinsuranceclaims,whichin2008Ͳ2009offsetstheexpense        item.               CostofSales       ThevarianceisprimarilyduetotheleasingoftheRottnestIslandHotel(‘HotelRottnest’)toGarrett        HospitalityPtyLtdconsequentlyreducingsalesandcostofsales.              

58 Rottnest Island Authority – Annual Report 2008-2009  ContingentLiabilities           TreatmentofContaminatedSites UndertheContaminatedSitesAct2003,theAuthorityisrequiredtoreportknownandsuspected contaminatedsitestotheDepartmentofEnvironmentandConservation(DEC).Inaccordancewiththe Act,DECclassifiesthesesitesonthebasisoftherisktohumanhealth,theenvironmentand environmentalvalues.Wheresitesareclassifiedascontaminated–remediationrequiredorpossibly contaminated–investigationrequired,theAuthoritymayhavealiabilityinrespectofinvestigationor  remediationexpenses. Inthe2007/2008FinancialYeartheAuthorityreportedfourcontaminatedsitestoDEC.Thesehaveyetto beclassifiedalthoughtheAuthoritycontinuestoworkwithDECinrespecttothemanagementofthese sites.Priortofinaldeterminationoftheclassificationprocess,itisnotpracticabletoestimatethe potentialfinancialeffectortoidentifytheuncertaintiesrelatingtotheamountortimingofanyoutflows.    33 Eventsoccurringafterthebalancesheetdate            Therearenoeventsthatoccurredafterbalancesheetdatewhichwouldmateriallyaffectthefinancial statements.   34 ExplanatoryStatement              SignificantvariancesbetweenactualandprioryearactualͲrevenueandexpenditure        Detailsandreasonsforsignificantvariationsbetweenactualresultswiththecorrespondingitemsofthe prioryeararedetailedbelow.Significantvariationsareconsideredtobethosegreaterthan10%and  $100,000.           2008/2009 2007/2008 Variance Variance    $ $ $ %  Sales  490,512 1,140,541 (650,029) Ͳ57%  Otherrevenues  250,425 426,558 (176,133) Ͳ41%  Costofsales  266,844 586,949 (320,105) Ͳ54%  Employeebenefitsexpenses  8,480,175 7,492,603 987,572 13% DepreciationandAmortisation Expense  5,489,665 4,390,162 1,099,503 25%  FinanceCosts  170,043 305,954 (135,911) Ͳ44% Servicesreceivedfreeofcharge  (RottnestIslandHotelimprovements)  3,853,007 1,013,923 2,839,084 280%        Sales TheAuthorityleasedtheRottnestIslandHotel(‘QuokkaArms’)inNovember2007toGarrettHospitality  PtyLtdandnolongerreceivesthebenefitofsales.TheRIAoperatedtheHoteluntilNovember2007.   Otherrevenues Thedecreaseisduetotheclassificationofinsuranceclaims,whichin2008Ͳ2009offsetstheexpense  item.   CostofSales ThevarianceisprimarilyduetotheleasingoftheRottnestIslandHotel(‘HotelRottnest’)toGarrett  HospitalityPtyLtdconsequentlyreducingsalesandcostofsales.  

Rottnest Island Authority – Annual Report 2008-2009 59 Employeebenefitsexpense Theincreaseisduetoboththewageincrease(approximately4.5%)andtheincreasednumberofbeing appointedasfulltimeemployeesinRIAbusinessesasopposedtoseasonalworkersonfixedterm  contractsoragencystaffinsupportroles.   DepreciationandAmortisationExpense Thedepreciationhasincreasedduetoanumberofprojectsbeingcompletedin2008/2009 (consequentlytherewereasignificantnumberoftransfersfromworkinprogresstofinished  works/buildings)aswellastherevaluationperformedbyLandgate.   FinanceCosts DuetotheearlypayoutoftheWATCloaninJuly2008lessinterestwasincurredinthe2008/09Financial  Year.Bankchargesin2008/09($169k)haveonlyincreasedbyapproximately7.7%inthisfinancialyear.   Servicesreceivedfreeofcharge TheincreaseisprimarilyaresultoftheexpenditureassociatedwithimprovingHotelRottnestbyGarrett  HospitalityP/LonthebasisoftheDevelopmentWorksAgreement.

 Significantvariationsbetweenestimatesandactualresultsforthefinancialyear        Detailsandreasonsforsignificantvariationsbetweenestimatesandactualresultsaredetailedbelow.  Significantvariationsareconsideredtobethosegreaterthan10%and$100,000.           Actual Estimate      2008/2009 2008/2009 Variance Variance    $ $ $ %  Depreciationandamortisationexpense  5,489,665 4,747,000 742,665 16%  OtherExpenses  195,832 413,809 (217,977) Ͳ53%        DepreciationandAmortisationExpense SimilartotheactualͲactualvariance,thedepreciationhasincreasedduetoanumberofprojectsbeing completedin2008/2009(consequentlytherewasasignificantnumberoftransfersfromworkinprogress tofinishedworks/buildings)aswellastherevaluationperformedbyLandgate,whichweregreaterthan  wasoriginallyanticipated.        Otherexpenses ThevarianceisprimarilyduetotheclassificationoftheexpenditureontheRailwaySleeperprogram replacementin2008Ͳ2009.Atthetimeofbudgetingitwasassumedthattheestimatesincorporatea greaterlevelofoperationalexpenditure.Theexpenditurewassubsequentlycapitalisedwhichfavourably  impactedonthecurrentyearresults.   35 FinancialInstruments  a)FinancialRiskManagementObjectivesandPolicies Financial instruments held by the Authority are cash and cash equivalents, loans, receivables and payables. The Authority has limited exposure to financial risks. The Authority’s overall risk managementprogramfocusesonmanagingtherisksidentifiedbelow.  Creditrisk Credit risk arises when there is the possibility of the Authority’s receivables defaulting on their contractualobligationsresultinginfinanciallosstotheAuthority. The maximum exposure to credit risk at balance sheet date in relation to each class of recognised financialassetsisthegrosscarryingamountofthoseassetsinclusiveofanyallowanceforimpairment asshowninthetableatnote35(c). 

60 Rottnest Island Authority – Annual Report 2008-2009 The Authority only trades with recognised, creditworthy third parties. The Authority has policies in placetoensurethatsalesofproductsandservicesaremadetocustomerswithanappropriatecredit history.Inaddition,receivablebalancesaremonitoredonanongoingbasiswiththeresultthatthe Authority’s exposure to bad debts is minimal. At balance sheet date, there were no significant concentrationsofcreditrisk.  Allowance for impairment of financial assets is calculated based on objective evidence such as observabledataindicatingchangesinclientcreditratings.Forfinancialassetsthatareeitherpastdue orimpaired,refertonote20Receivables.  Liquidityrisk TheAuthorityisexposedtoliquidityriskthroughitstradinginthenormalcourseofbusiness.Liquidity riskariseswhentheAuthorityisunabletomeetitsfinancialobligationsastheyfalldue.  TheAuthority’sobjectiveistomaintainabalancebetweencontinuityoffundingandflexibilitythrough the use of bank overdrafts, loans and finance leases. The Authority has appropriate procedures to managecashflowsbymonitoringforecastcashflowstoensurethatsufficientfundsareavailableto meetitscommitments.  Marketrisk TheAuthoritydoesnottradeinforeigncurrencyandisnotmateriallyexposedtootherpricerisks.The Authority’s exposure to market risk for changes in interest rates relates primarily to cash and cash equivalentsanditslongtermdebtobligations.TheAuthority’sborrowingsareallobtainedthroughthe WesternAustralianTreasuryCorporation(WATC)andareatfixedrateswithvaryingmaturities.The riskismanagedbyWATCthroughportfoliodiversificationandvariationinmaturitydates.Otherthan as detailed in the interest rate sensitivity analysis table at note 35(d), the Authority has limited exposuretointerestrateriskbecauseithasnoborrowingsasat30June2009.  (b)CategoriesofFinancialInstruments  Thecarryingamountsofeachofthefollowingcategoriesoffinancialassetsandfinancialliabilitiesat thebalancesheetdateareasfollows:     2008/2009 2007/2008    ($'000) ($'000) FinancialAssets     Cash&CashEquivalents   10,804 20,581 LoansandReceivables   708 1,087 HeldͲtoͲmaturityinvestments   6,000 Ͳ      FinancialLiabilities     WATCloan   Ͳ 4,690 FinancialLiabilitiesmeasuredat amortisedcost   3,887 4,403   (c)FinancialInstrumentDisclosures      CreditRiskandInterestRateRiskExposures ThefollowingTabledisclosestheAuthority’smaximumexposuretocreditrisk,interestrate exposuresandtheageinganalysisoffinancialassets.TheAuthority’smaximumexposuretocredit riskatthebalancesheetdateisthecarryingamountofthefinancialassetsshownbelow.Thetable disclosestheageinganalysisoffinancialassetsthatarepastduebutnotimpairedandimpaired  financialassets.ThetableisbasedoninformationprovidedtoseniormanagementoftheAuthority. TheAuthoritydoesnotholdanycollateralassecurityorothercreditenhancementsrelatingtothe  financialassetsitholds. TheAuthoritydoesnotholdanyfinancialassetsthathadtohavetheirtermsrenegotiatedthat  wouldhaveotherwiseresultedinthembeingpastdueorimpaired.

Rottnest Island Authority – Annual Report 2008-2009 61

------assets financial Impaired

years

------Over 5

4 - 5 5 - 4

years ------

3 - 4 4 - 3

------Years

 2 - 3 3 - 2

------Years

impaired

 1 - 2 2 - 1 not

------ 3,000 3,000 3,000 - Years

but 

due 

------3 – 12 months

Past

------Up to 3 months

708 708 649 59 -  Non-

------1,018 1,018 69 1,018 -  Interest Bearing

 rate  assets

 rate

------17,847 17,847 2,734 - 17,847 3,752 69 1,018 - 10,608 904 649 59 3,000 3,000 - 10,608 10,608 196 - Interest Variable ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) Interest exposure

financial  of  708

------6,000 1,087 17,512 20,581 21,668 10,804 Amount Carrying Carrying

($'000) - - analysis  recoverable from the ATO (statutory receivable)

% rate 4.93% 7.20% 3.25% Interest Average Effective Weighted

ageing  and  exposures  (a) (a) rates 

Interest 2008 Financial Assets 2009 (a) the amount of receivables excludes the GST advances and Loans Other financial assets Cash and cash equivalents advances and Loans assets Other financial

Restricted cash and equivalents Receivables Cash and cash equivalents Restricted cash and equivalents Receivables

62 Rottnest Island Authority – Annual Report 2008-2009

years ------

------4 - 5 years Over 5

3 - 4 4 - 3

------Years

2 - 3 3 - 2

------Years

1 - 2 2 - 1

------Years

------3 – 12 months ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)



------Up to 3 months dates



Total - - 4,690 - - - - - 4,690 ------amount nominal

Maturity

for

------Adjustment discounting

Non-

------ 3,887 Interest Bearing

 rate  rate - - 3,887 - - - - 4,403 - - 4,403 ------Interest Variable Interest exposure ------3,887 3,887 4,403 4,690 9,093 Amount Carrying Carrying - -

% % ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) rate Interest Average Effective Weighted

Financial Liabilities 2009 2008 Payables Bank overdraft WATC/Bank overdraft Finance lease liabilities the to due Treasurer Amounts Payables Bank overdraft WATC/Bank overdraft Finance lease liabilities the to due Treasurer Amounts Rottnest Island Authority – Annual Report 2008-2009 63  (d)Interestratesensitivityanalysis       ThefollowingtablerepresentsasummaryofinterestratesensitivityoftheAuthority'sfinancialassetsand liabilitiesatthebalancesheetdateonthesurplusfortheperiodandequityfora1%changeininterestrates.Itis  assumedthatthechangeininterestratesisheldconstantthroughoutthereportingperiod.              (1.0%)change  1.0%change Carrying Profit Equity Profit Equity    Amount   30June2009  ($'000) ($'000) ($'000)  ($'000) ($'000)           FinancialAssets         Cashandcashequivalents  10,804 (108) (108)  108 108  Otherfinancialassets  6,708 (67) (67)  67 67           TotalIncrease/(Decrease)   (174) (174)  174 174              (1.0%)change  1.0%change Carrying Profit Equity Profit Equity    Amount   30June2008  ($'000) ($'000) ($'000)  ($'000) ($'000)           FinancialAssets         Cashandcashequivalents  20,581 (206) (206)  206 206  Otherfinancialassets  1,087 (11) (11)  11 11           TotalIncrease/(Decrease)   (217) (217)  217 217  (e)Fairvalues Allfinancialassetsandliabilitiesrecognisedinthebalancesheet,whethertheyarecarriedatcostor fairvalue,arerecognisedatamountsthatrepresentareasonableapproximationoffairvalueunless otherwisestatedintheapplicablenotes.  36 Remunerationofmembersoftheaccountableauthorityandseniorofficers      2008/2009 2007/2008     $ $  RemunerationofMembersoftheaccountableauthority    The number of members of the accountable authority, whose  totaloffees,salaries,superannuation,nonmonetarybenefitsand other benefits for the financial year, fall within the following  bandsare:    $      0Ͳ10,000   5 5  20,001Ͳ30,000   1 1 ThetotalremunerationofmembersoftheAccountable  Authorityis:  57,604 41,783       Thetotalremunerationincludesthesuperannuationexpenseincurred  bytheAuthorityinrespectofmembersoftheAccountableAuthority.         NomembersoftheAccountableAuthorityaremembersoftheState  GovernmentPensionScheme.             2008/2009 2007/2008     $ $       

64 Rottnest Island Authority – Annual Report 2008-2009  (d)Interestratesensitivityanalysis       ThefollowingtablerepresentsasummaryofinterestratesensitivityoftheAuthority'sfinancialassetsand liabilitiesatthebalancesheetdateonthesurplusfortheperiodandequityfora1%changeininterestrates.Itis  assumedthatthechangeininterestratesisheldconstantthroughoutthereportingperiod.              (1.0%)change  1.0%change Carrying Profit Equity Profit Equity    Amount   30June2009  ($'000) ($'000) ($'000)  ($'000) ($'000)           FinancialAssets         Cashandcashequivalents  10,804 (108) (108)  108 108  Otherfinancialassets  6,708 (67) (67)  67 67           TotalIncrease/(Decrease)   (174) (174)  174 174              (1.0%)change  1.0%change Carrying Profit Equity Profit Equity    Amount   30June2008  ($'000) ($'000) ($'000)  ($'000) ($'000)           FinancialAssets         Cashandcashequivalents  20,581 (206) (206)  206 206  Otherfinancialassets  1,087 (11) (11)  11 11           TotalIncrease/(Decrease)   (217) (217)  217 217  (e)Fairvalues Allfinancialassetsandliabilitiesrecognisedinthebalancesheet,whethertheyarecarriedatcostor fairvalue,arerecognisedatamountsthatrepresentareasonableapproximationoffairvalueunless otherwisestatedintheapplicablenotes.  36 Remunerationofmembersoftheaccountableauthorityandseniorofficers      2008/2009 2007/2008     $ $  RemunerationofMembersoftheaccountableauthority    The number of members of the accountable authority, whose  totaloffees,salaries,superannuation,nonmonetarybenefitsand other benefits for the financial year, fall within the following  bandsare:    $      0Ͳ10,000   5 5  20,001Ͳ30,000   1 1 ThetotalremunerationofmembersoftheAccountable  Authorityis:  57,604 41,783       Thetotalremunerationincludesthesuperannuationexpenseincurred  bytheAuthorityinrespectofmembersoftheAccountableAuthority.         NomembersoftheAccountableAuthorityaremembersoftheState  GovernmentPensionScheme.             2008/2009 2007/2008     $ $  RemunerationofSeniorOfficers       Thenumberofseniorofficers,otherthanseniorofficersreportedas membersoftheaccountableauthority,whosetotaloffees,salaries, superannuation,nonmonetarybenefitsandotherbenefitsforthe  financialyear,fallwithinthefollowingbandsare:    $      70,001Ͳ80,000   Ͳ 1  80,001Ͳ90,000   Ͳ Ͳ  110,001Ͳ120,000   Ͳ 1  120,001Ͳ130,000   3 Ͳ  130,001Ͳ140,000   Ͳ 1  150,001Ͳ160,000   1 2  160,001Ͳ170,000   Ͳ Ͳ  170,001Ͳ180,000   1 1  Thetotalremunerationofseniorofficersis:   715,361 808,139      

Thesuperannuationincludedhererepresentsthesuperannuation expenseincurredbytheAuthorityinrespectofseniorofficersother  thanseniorofficersreportedasmembersoftheaccountableauthority.          NoseniorofficersaremembersofthePensionScheme.    37 Remunerationofauditor     RemunerationpayabletotheAuditorGeneralforthefinancialyearisas  follows:       2008/2009 2007/2008     $ $ Auditing the accounts, financial statements and performance  indicators  76,000 72,000  38 Supplementaryinformation            WriteͲoffsapprovedbytheBoard         2008/2009 2007/2008     $ $        BadDebts   8,315 4,333 

39 Segment(Service)Information                Segmentinformationhasbeendisclosedbyservice.ThetwoservicesoftheAuthorityare:   Service1:ProvisionofServicestoVisitors Thisservicerelatestotheprovisionandoperationofaffordablerecreationalandholidayfacilitieswithparticularregardfor  theneedsofpersonsusuallyresidentintheState,andwhowishtovisitorstayontheIslandasafamilygroup. Service2:ConservationoftheNaturalandBuiltEnvironment  ThisservicerelatestothemaintenanceandprotectionoftheIsland’snaturalandbuiltenvironment.          TheAuthorityoperateswithinonegeographicalsegment(theWesternAustralianpublicsector).                        

Rottnest Island Authority – Annual Report 2008-2009 65

33 ServicestoVisitors Conservationof Consolidated   Environment   2008/2009 2007/2008 2008/2009 2007/2008 2008/2009 2007/2008   $ $ $ $ $ $  INCOME        Revenue        Sales 490,512 1,140,541 Ͳ Ͳ 490,512 1,140,541  Provisionofservices 25,276,114 24,552,193 47,037 65,334 25,323,151 24,617,527 Commonwealthgrantsand  contributions Ͳ Ͳ 7,000 14,000 7,000 14,000  Interestrevenue 994,861 1,070,564 14,608 Ͳ 1,009,469 1,070,564  Otherrevenues 213,185 395,055 37,240 31,503 250,425 426,558  Gains       GainsondisposalofnonͲcurrent     assets 10,493 Ͳ 1,319 Ͳ 11,812 Ͳ  TotalIncome 26,985,165 27,158,354 107,204 110,836 27,092,369 27,269,190          EXPENSES        Costofsales 266,844 586,567 (0) 382 266,844 586,949  Employeebenefitsexpense 7,028,105 6,496,389 1,452,069 996,214 8,480,175 7,492,603  Suppliesandservices 16,191,138 15,178,430 1,253,166 1,558,413 17,444,304 16,736,843 Depreciationandamortisation  expense 4,873,081 4,039,031 616,584 351,220 5,489,665 4,390,251  Financecosts 151,062 305,954 18,981 Ͳ 170,043 305,954  Accommodationexpenses 176,506 172,221 24,245 14,594 200,751 186,815 LossondisposalofnonͲcurrent  assets Ͳ 60,130 Ͳ Ͳ Ͳ 60,130  Otherexpenses 166,393 271,884 29,439 9,399 195,832 281,283  TotalExpenses 28,853,130 27,110,605 3,394,484 2,930,223 32,247,614 30,040,828         Profit/(loss) before grants and     subsidiesfromStateGovernment (1,867,965) 47,749 (3,287,280) (2,819,386) (5,155,245) (2,771,638)         GrantsandsubsidiesfromState  Government 1,969,310 2,080,818 256,090 194,500 2,225,400 2,275,318  Servicesreceivedfreeofcharge 3,853,007 375,837 Ͳ 638,086 3,853,007 1,013,923  Profit/(loss)fortheperiod 3,954,352 2,504,404 (3,031,190) (1,986,801) 923,162 517,603 

66 Rottnest Island Authority – Annual Report 2008-2009 34 CertificationofKeyPerformanceIndicators 

Fortheyearended30June2009       We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Rottnest Island Authority’s performance and fairly represent the performance of the Rottnest Island Authority for the financial year ended 30 June 2009.    

  LaurieO’Meara Chairman 

  GeoffTotterdell Member 

  OthmarBeerli ChiefFinancialOfficer   17September2008

Rottnest Island Authority – Annual Report 2008-2009 67 KeyPerformanceIndicators TheRottnestIslandAuthority’s(RIAorAuthority)keyperformanceindicators(KPIs)provideaguideto itsperformanceregardingitsstatedoutcome.Statepublicsectorpolicyrequireseffectivenessand efficiencyindicatorstodemonstratethisperformance.Bytheirnature,theseindicatorsareveryhigh level and attempt to encompass all the RIA’s operations and costs. For example, the efficiency indicatorsarerequiredtoincludeallrelevantcostsincludingcorporateoverheadsforeachofthetwo services respectively. The relationship between the Authority’s KPIs and outcome and services is outlinedinthediagrambelow.  GovernmentGoal: SocialandEnvironmentalResponsibility Ensuringthateconomicactivityismanagedinasociallyandenvironmentallyresponsiblemannerfor thelongͲtermbenefitoftheState.  ROTTNESTISLAND KEYPERFORMANCEINDICATORS SERVICESPROVIDEDTO AUTHORITY’SDESIRED THECOMMUNITY OUTCOME Rottnest Island visitors EFFECTIVENESS 1.Recreationaland enjoy recreational and VisitorSatisfactionwiththeRottnestIsland holidayservices holiday experiences in experience.  healthy natural and 2.Naturalenvironment HealthofRottnestIsland’sNatural culturalenvironments. andculturalheritage Environment. management HealthofRottnestIsland’sCulturalHeritage. EFFICIENCY Averagecostofrecreationalandholiday servicesprovidedpervisitor. Averagecostofnaturalenvironmentand culturalheritagemanagementperReserve hectare  Severalindicatorsarebeingreportedforthefirsttime,andthereforenopreviouscomparativedatais available.TheAuthorityregularlyreviewsandamendsitsindicatorstoreflectchangesinavarietyof factorsimpactingtheIslandsuchasvisitorandcommunityprioritiesforRottnestIsland,aswellas technologythatenablesmoresophisticatedmeasurestobeimplemented.  ItshouldbenotedthattheRIAalsohasasuiteofoperationalandcommercialindicatorsthatareused tomanageandimproveitsperformance.SomeofthesearereportedintheReportonOperations sectionofthisReport.

EffectivenessIndicators  1. VisitorsatisfactionwiththeRottnestIslandexperience  AnindependentresearchcompanyisengagedtosurveytheIsland’svisitors.Visitorsareselectedat random and requested to complete questionnaires.  There were 1411 completed questionnaires providingaconfidencelevelof95%withanerrorrateof+/Ͳ2.6%.  VisitorsareaskedtoratethefollowingkeyareasoftheirvisittoRottnestIsland:  a) OverallratingofyourvisittoRottnestIsland b) Satisfactionwiththegeneralfacilitiesandservices c) Satisfactionwiththeaccommodation d) Overallsatisfactionwiththerecreationalandholidayservicesandfacilities

68 Rottnest Island Authority – Annual Report 2008-2009 c) Satisfactionwiththeaccommodation d) Overallsatisfactionwiththerecreationalandholidayservicesandfacilities  Aswellascomparingresultstoatarget,comparisonstopreviousyear’sresultsareincluded(whereavailable) toindicatetrendsinperformance.Commentsonperformanceareprovidedaftereachmeasure.  a)OverallratingofyourvisittoRottnestIsland 

VisitorRating 2008Ͳ09

Targetlevelofexpectationsmet 90% Metorexceededexpectations 96% Belowexpectations 4%  Averypositiveresultwasachievedregardingthismeasure.Whilesomeaspectswerenotratedashighlyas demonstratedinthefollowingmeasures,visitorsoverallperceptionoftheirexperiencewaspositivecompared to their expectations.  As this is a new indicator, no previous year’s results area available for comparison purposes..  b)OverallSatisfactionwiththegeneralfacilitiesandservices(Forexample,pathways,seating)  VisitorRating 2008Ͳ09 2007Ͳ08 2006Ͳ07 2005Ͳ06

SatisfiedTarget 85%    Satisfied 85% 83% 87% 84% Neither 7% 11% 9% 11% Dissatisfied 8% 6% 4% 5%  Visitorsatisfactionwithgeneralpublicfacilitiesandserviceshasslightlyimprovedonlastyearwithasimilar slightincreaseindissatisfaction.Thereforenooverallchangeinsatisfactionseemstohaveresulted.  c)OverallsatisfactionwithRottnestIslandAuthorityaccommodation  VisitorRating 2008Ͳ09 2007Ͳ08 2006Ͳ07 2005Ͳ06

SatisfiedTarget 85%    Satisfied 75% 72% 71% 66% Neither 10% 19% 15% 21% Dissatisfied 15% 9% 14% 14%  Satisfaction with accommodation increased to a minor extent which is notable.  However, dissatisfaction increased from 6% to 15%, and this is mostly attributable to the dissatisfaction with the cleanliness of accommodation.  d)Overallsatisfactionwiththerecreationalandholidayservicesandfacilities CustomerRating 2008Ͳ09 2007Ͳ08 2006Ͳ07 2005Ͳ06

SatisfiedTarget 85%    Satisfied 86% 73% 79% 81% Neither 8% 21% 15% 14% Dissatisfied 6% 6% 6% 5%

37

Rottnest Island Authority – Annual Report 2008-2009 69 ThesignificantimprovementinoverallsatisfactionwithrecreationalservicesandfacilitiesonRottnestIsland reflectstheRIA’sfocusonprovidingimprovedaccommodation,greatervarietyofrecreationalactivitiesanda moredesirablemixofretailserviceprovidersontheIsland.  2. HealthofRottnestIsland’sNaturalEnvironment  Thisindicatorusesasuiteofmeasuresregardingthemanagementoffloraandfauna,aswellasenvironmental riskfactorstogaugecurrentperformanceagainstan‘idealstate’orconservationaction.Thisindicatorisbased on Environment Australia guidelines that describe three types of measures: pressure, condition and management.Environmental;healthstandardsandactionsarecontingenttotheareabeingmonitored.The measuresarecalculatedbytheRIA’sownstaff,whoarequalifiedinenvironmentalmanagement.  Theindicatoriscomprisedofseveralaspectswhicharemonitoredbyselectedmeasures.Thisisdemonstrated below:  TerrestrialHabitat x treesplanted x hectaresofweedcontrol x hectaresofunstabledunes* x revegetationplanted* InlandWaters x moaningfrogsurveyed x saltingroundwaterandwetlands* MarineHabitat x pollutionevents x changeinrocklobsterabundance* x hectaresofhealthyseagrassatkeysites* WildlifeManagement x breedingsuccessofospreynests x redͲcappedrobincountedatkeysites x nativefaunamammals x discoveryofnewpests Note:*Resultsforthesemeasureswerenotavailablethisyearduetotechnicaldifficultiesandprohibitivemeasurementcosts.  Agradedrangeisusedtoratetheseaspectsofthenaturalenvironment,wherean‘A’ratingdenotesanideal stateormanagementaction.RatingsofB,C,andDdenotelesserstatesormanagementactions(seeratings tablebelow).Asuitabletargetwassetfortheyeargiventhecurrentstateofenvironment,riskfactorsandthe RIA’slimitedresourcestoimplementconservationactions.Themajorityofthesemeasuresweremonitored, and at least one measure was monitored for each of the four aspects.  The ratings are then ‘averaged’ to provideanoverallratingofthehealthofthenaturalenvironment,basedonthesameratingstablebelow.  Rating Standardsoftheaspectoftheenvironment A Excellentstate B Goodstate C Satisfactorystate D Belowsatisfactorystate F Failureofthisaspectoftheenvironment  Theoverallhealthoftheenvironmentwasratedasa‘C‘comparedtothetargetof‘C’.TheCrating(satisfactory state) reflects the challenges faced by the Authority in managing the natural environment according to its capabilities.WhilearatingofAisbeingpursued,asuitabletargetwassetfortheyeargiventheknowncurrent state of the environment and risk factors, as well as the RIA’s limited resources to implement desirable managementactions.TheAuthorityhascommitteditselftomeasuringthoseenvironmentalaspectsthatare notwellknownatpresent.Thelowestperformingareasarediscussedbelow. 

38

70 Rottnest Island Authority – Annual Report 2008-2009 MarineHabitat Therewereahighernumberthanexpected‘pollutionevents’.Therewereseveraltimesduringtheyear when bacteria sampling in shallow marine waters exceeded standards (Australian and New Zealand EnvironmentConservationCouncils(ANZECC)AustralianandNewZealandGuidelinesforFreshandMarine Water Quality (2000). Factors contributing to pollution events of this nature may be attributed to high numbersofseagullsandotherbirdsdefecatingatthesamplesites,rainfallwashingquokkafaecesthrough drainagenetworksandflowpathsandboatsreleasingsullageintothemarineenvironment.  WildlifeManagement The number of redͲcapped robins at selected sites was less than expected, and this resulted in the measure’sresultbeingbelowtarget.Thisspecies,alongwithsimilarbirdspecieshavesufferedsignificant declineontheSwanCoastalPlain.OfwhichRottnestIslandisapart.Thecausesarebeinginvestigated.  Thisindicatorwillbereviewedduetocostandtechnicalchallengesexperiencedinitsimplementation,and therefore,islikelytobeamendednextyear.ForexampletheAuthoritydidnothavethetechnologyin placetomeasurehectaresofhealthyseagrassatkeysites.  1. HealthofRottnestIsland’sCulturalHeritage  Theindicatoriscomprisedofthreeaspectswhicharemonitoredbyselectedmeasurestoindicatethestate ofRottnestIsland’sculturalheritage.Thisisdemonstratedinthetablebelow.Theresultsforthemeasures are able to be reported as the proportion (%) of the ‘ideal state’ for each item being measured.  The measuresarecalculatedbytheRIA’sownstaff,whoarequalifiedinculturalheritagemanagement.  TheresultsforthevariousmeasuresofRottnestIsland’sculturalheritage  Aspect Measure Results% %ofheritagelistedplaceswithstatementsofsignificance 72 Identification %ofcollectionheritageitemsrecordedondatabase 25 comparedtocurrentlyknownnumberofitems %ofdevelopmentsthatfollowheritagelegal 54 Protection requirementsandconservationpolicies %ofStateͲregisteredplacesmeetingconditiontargets 69 Conservation %ofStateͲregisteredplaceswithconservationplansless 43 than10yearsold  Agradedrangeisusedtorateeachmeasure,wherean‘A’ratingdenotesanidealstateormanagement action.RatingsofB,C,andDdenotelesserstatesormanagementactions(seetablebelow).Asuitable targetwassetfortheyeargiventhecurrentstateoftheIsland’sheritageassets,riskfactorsandtheRIA’s limitedresourcestoimplementconservationactions.Theratingsscaleisdescribedbelow:  Rating Standardsoftheaspectoftheenvironment A Excellentstate B Goodstate C Satisfactorystate D Belowsatisfactorystate F Failureofthisaspectoftheenvironment  Anoverallratingof‘C’comparedtoatargetof‘C’wasachieved.TheCrating(satisfactorystate)wasonly justachievedreflectingthemajorchallengesfacedbytheAuthoritytomanageitsculturalheritageassets accordingtoitscapabilities.WhilearatingofAisbeingpursued,asuitabletargetwassetfortheyeargiven thecurrentstateoftheheritageassets,riskfactorsandtheRIA’slimitedresourcestoimplementdesirable managementactions.Thelowestperformingareasarediscussedbelow.

Rottnest Island Authority – Annual Report 2008-2009 71 Identification A database of ‘collection items’ identifies the cultural heritage items held by theAuthority.  It also enables accesstoallcollectionitemsthroughlocationindicators.Therewere251outofanestimatedavailable1,000 items recorded on the database in the first year resulting in low rating. The Authority expects to record approximately300itemsperyearwithhelpofvolunteerassistance.

Protection OfthefivemajordevelopmentsonRottnestIslandduringtheyear,onlyone‘received’wasconsideredtohave fullycomplied,withalldevelopmentcontrolrequirementstoprotectidentifiedheritageplaces.Theremainder partiallycompliedorfailedtocomply.TheRottnestIslandManagementPlan2009Ͳ14identifiesaninitiativeto developamorerobustdevelopmentplanningprocessasaprioritytoprotectandconservethenatural,cultural andsocialvaluesofRottnestIsland.  Conservation There are 142 places on the RIA Heritage Asset Register, 61 of these are heritageͲlisted with the Heritage CouncilofWA.Therearealso16AboriginalsitesregisteredwiththeDepartmentofIndigenousAffairsunder theAboriginalHeritageAct(1972).NoneoftheAboriginalregisteredsiteshavestatementsofsignificanceand nonehaveconservationplans.  Noregisteredplacewasassessedandonlytwobuildingsandonestructurewereassessedwithalowrating.All threeplacesareexpectedtoundergoconsiderableconservationrepairworkin2009Ͳ10,andthereforeahigher assessmentlevelisexpectednextyear.  Allconservationplansarereviewedandupdatedevery5Ͳ10years.Thereare61stateͲregisteredplaces,not includingregisteredAboriginalplacesand28ofthesehaveconservationplansthatwereundertaken10years ormoreago.AnaddendumtotheFormerGovernorsResidence(Hotel)ConservationPlanwascompletedin 2009followingtheStage1conservationworks. 

EfficiencyIndicators

ServiceOne:RecreationalandHolidayServices  ThisindicatorrelatestothecostofprovidingRottnestIsland’srecreationalandholidayservicesonapervisitor basis.‘Visitors’isdeterminedfromthenumberofpeoplearrivingbycommercialferryservicesonly(361,000 peoplearrivedbyferryduringtheyear).Thenumberofpeoplearrivingbyprivatevesselscannotbereliably calculatedatpresent,sotheyarenotincluded.Theindicatorisintendedtotrackthelevelofresourcesusedto serviceRottnestIslandvisitors.  The indicator is calculated by dividing the total annual cost of providing holiday and recreation services to visitorsbythetotalnumberforvisitorsfortheyear.Thisisanewindicatorandtherearenoreliableprevious years'dataavailable.Theresultisroundedtothenearestdollar.  Title 2008Ͳ09

Averagecostofrecreationalandholidayservicesprovidedpervisitor $80 







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72 Rottnest Island Authority – Annual Report 2008-2009 ServiceTwo:NaturalEnvironmentandCulturalHeritageManagement

ThisindicatorconcernsthecostofmanagingRottnestIsland’snaturalenvironmentandculturalheritage.Its purposeistotrackthelevelofresourcesusedtomanagethenaturalenvironmentandculturalheritage.

Theindicatoriscalculateddividingthetotalcostofmanagingthenaturalenvironmentandculturalheritageby theRottnestIslandReserve’stotalareaof5,669hectares.TheReservereferstothelandandwatersdefinedin Part1oftheRottnestIslandAuthorityAct1987.Thisisanewindicatorandtherearenoreliableprevious years'dataavailableTheresultisroundedtothenearestdollar.  Title 2008Ͳ09

Averagecostofnaturalenvironmentandculturalheritage $599 managementperReservehectare



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Rottnest Island Authority – Annual Report 2008-2009 73 OtherFinancialDisclosures PricingPolicies PricingfortheRottnestIslandAuthority’s(RIAortheAuthority)commercialservicesisbasedonrecoveringdirect andindirectoperatingcostsinordertoachievearateofreturnthatenablestheAuthoritytoprovidefundingfor itsnonͲcommercialservicessuchasenvironmentalandculturalheritagemanagement.Inaddition,theAuthority must create a surplus in order to upkeep its business infrastructure and to ensure that all its utilities are maintained.  TheAuthority’spricingpolicyforthevariousfeesandchargesisoutlinedbelow:  Islandadmissionfees The new structure will help offset the costs of infrastructure, facilities and services, and protecting the environmentandculturalheritageoftheIsland.  Accommodation TheAuthoritywillmovetowardsgeneratingacommercialrateofreturnonturnoverrelatedtoaccommodation services.Theobjectiveistorecoverallcostsofaccommodationservicesandassetreplacementcostsoverthelong term,i.e.10yearperiod.  Recreationincludingtoursandtransport Likeaccommodation,theAuthoritywillmovetowardsgeneratingacommercialrateofreturnonturnoversimilar to accommodation services. The objective is to recover all costs associated with recreation services and asset replacementcostsoverthelongterm,i.e.10yearperiod.  Leasing The Authority manages a variety of commercial and residential leases on the Island. Both commercial and residentialleasesvarysignificantlybetweenleases,includingleasefees,concessions,percentageofgrossrevenues andcapitalcontributions.UnlessspecificallyapprovedbytheMinister,nofuturecommercialleasecanexceeda termof20years,asstipulatedintheRottnestIslandAuthorityAct1987.  Utilityservices Atpresenttariffchargesareappliedtocommerciallyleasedpremisesandresidents.Theremainderofthecostis allocatedtotheaccommodationfacilities.Together,thesechargesarebelowfullcostrecovery.Fullcostrecovery includesalldirectcostsandaproportionofinfrastructureandmanagementcosts,aswellascorporateoverheads.  CapitalInvestment The Authority’s capital investment program is described at the section of this report titled Rottnest Island Taskforce. In addition, the following information is disclosed regarding Authority and relevant capital investmentontheIsland.

TheRIA’sCapitalInvestmentismadeupofthefollowing: x InternallyFunded:theamountinvestedin2008/09was$4.7m.ProjectsincludedtheHotelRottnest refurbishment,CountryClubupgradeandGovernor’sCircleaccommodationupgrade. x GovernmentFunded(Taskforce):theinvestmentmadefromfundsprovidedunderthe2004Taskforceis describedatthesectionoftheirreporttitledRottnestIslandTaskforce.Theamountinvestedin2008Ͳ09 was$4.8mwitharemaining$2.9m(predominantlyforheritageworks)tobeinvestedin2009Ͳ10and beyondcompletingtherecommendationsintheReport. x PrivateInvestment:Inthe2008Ͳ09yeartheAuthorityhasnotsignedanyothersignificantleasesand developmentagreementswithprivatedevelopersandoperators. 

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74 Rottnest Island Authority – Annual Report 2008-2009  EmployeeNumbers  NumberofEmployeesasat30June2009 FullͲtime PartͲtime Total Permanent FixedTerm Casual Permanent FixedTerm Casual  72 20 0 6 25 32 155  Totalemployeenumbersequatetotheequivalentof105fulltimeemployeescalculatedoverthefullyear.  FinancialEstimates2009Ͳ2010 AsrequiredunderTreasurer’sInstruction953thefollowingaretheannualestimatesfortheRottnestIsland Authorityforthe2009Ͳ10financialyear.  2009/10 Budget $ ‘000s

INCOME Revenue Sales 463 Provision of service 30,782 Commonwealth grants and contributions 0 Interest revenue 609 Other revenues 590 Gains Gains on disposal of non-current assets 0 Total Income 32,443

EXPENSES Cost of sales 217 Employee benefits expense 9,906 Supplies and services 18,703 Depreciation and amortisation 4,605 Finance costs 171 Accommodation 222 Loss on disposal of non-current assets 0 Other expenses 329 Total Expenses 34,153 Loss before grants and subsidies from State Government (1,710)

Grants and subsidies from State Government 2,215 Services received free of charge 0

Profit / (Loss) for the period 505    

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Rottnest Island Authority – Annual Report 2008-2009 75 GovernanceDisclosures experienceindevelopingsustainabletourismopportunitiesandhasstronginterestandexperiencein environmentalandconservationprojects.  AuthorityMembers Ms Jacobs is a former Board Director of Tourism Australia. She is currently Director and Company The Board of the Rottnest Island Authority (RIA or the Authority) is appointed by the Minister for SecretaryofNoongarPropertyHoldingsPtyLtd(anAboriginalownedpropertyinvestmentgroupthat Tourism for terms not exceeding three years and members may be reͲappointed. Members are assists Indigenous commercial initiatives in the Perth and South West regions of Australia), Board selectedaccordingtotheirexperiencerelevanttotheAuthority’soperations.Profilesofthemembers Director for Aboriginal Hostel Limited, Commissioner on the Conservation Commission of WA, oftheBoardoftheAuthoritytogetherwithdetailsofmeetingattendancearesetoutbelow: ChairpersonoftheRottnestIslandEnvironmentalAdvisoryCommitteeandRottnestIslandCultural  andHeritageAdvisoryCommittee,ChairpersonoftheKaitajinMiaMiaAboriginalFoundation(Bush Chairman University)andaMemberoftheFederalMinisterforTourism,theHon.MartinFerguson’sNational Laurie O'Meara AM was appointedas a member oftheAuthority in June2000 and took over the LongTermTourismCommittee. Chair in April 2004. Mr O’Meara is a past president of the Tourism Council Western Australia and  championoftheTourismAccreditationProgram.MrO'Mearaisadrivingforceinthisareaandwas Ms Jacobs professional qualifications include a Postgraduate Certificate in Policy Studies from theinauguralPresidentoftheAustralianTourismAccreditationAssociation.From2002until2008Mr Murdoch University and a Trade Certificate in Horticulture. She was awarded a Shire of Swan O’Meara was the Deputy Chair of Tourism Western Australia, the State organisation charged with Achievement Award in 1994 and the National Aboriginal & Islander Day of Celebration (NAIDOC) marketing the State both nationally and internationally. He is also a member of the Perth AwardforOutstandingContributiontotheNoongarCommunityin2002. InternationalArtsFestivalBoard.   Member Mr O'Meara's extensive experience includes operation of the Emerald Hotel in Perth for the last Peter Dowding SC was appointed to the Authority in August 2007. Mr Dowding was born in twentyyears.MrO’MearawasawardedaCentenaryMedalintheyear2000andin2006wasthe Melbourne,Victoriain1943andeducatedinPerthfrom1957atHaleSchoolandtheUniversityof winneroftheprestigiousSirDavidBrandMedalforservicesinTourism.Inthe2007Queen’sBirthday WesternAustralia.Hewasadmittedasalegalpractitionerin1966andhaspractisedasaBarristerand HonourslisthewashonouredasamemberoftheOrderofAustralia(AM)forhisservicestotourism Solicitor being appointed Senior Council in 2005. From 1980 to 1990 he was a member of State accreditation, tourism, heritage and the arts. In the 2009 Qantas Australian Tourism Awards, Mr ParliamentandaMinisteroftheCrownholdingavarietyofPortfoliosuntil1988whenhebecame O’Meara was awarded the “Outstanding Contribution by an Individual (National)” award for his Premier of the State of Western Australia until 1990. He is engaged in the community through a outstandingachievementsintheAustralianTourismAccreditationProgram. numberoforganisationsandispastChairoftheFriendsoftheFestival.Heprovidesongoingsupport  andadvicetoanIndigenouscommunityinthePilbara. DeputyChair  SueMurphywasappointedasamemberoftheAuthorityinAugust2004,andappointedasDeputy Mr Dowding is a passionate supporter of Rottnest Island and strongly attached to an old wooden ChairinOctober2006.MsMurphycompletedaBachelorofEngineering(Honours)andhasworkedas crayboatwhichprovidesaplatformforhisongoingloveoftheIsland. anengineerintheprivatesectorforanumberofyears.SheiscurrentlyChiefExecutiveOfficerofthe  Water Corporation. Ms Murphy was awarded the national Telstra Business Women of the Year in Member 2000;theprivatesectorcategory. GeoffTotterdellwasappointedasmemberoftheAuthorityinMarch2009.MrTotterdellgraduated  from the University of Western Australia with a Bachelor of Commerce and is a fellow of CPA Member Australia. He commenced his career in Canberra with the Auditor General’s Office and the SharonBrownwasappointedasamemberoftheAuthorityinApril2006.MsBrownhasworkedin DepartmentofTreasury,joinedPriceWaterhouseinPerthin1983,wasadmittedtopartnershipin theinformation,communicationandtechnologyindustryforover30years.MsBrownwasawarded 1986andretiredfromthefirminDecember2006.Hehasspecialisedinbusinessrecoveryservices, TelstraBusinessWomanoftheYear,WesternAustraliain1999.Shesitsonanumberofboardsand with his principal areas of consulting and advisory activity being business appraisals, investigating hasbeenaregularvisitortoRottnestIslandoverthelast20years. accountant reports, reconstructions and turnaround management, and performance monitoring of  corporategroupsacrossawideanddiverserangeofindustrygroups. Member  RobMcDonaldwasappointedasamemberoftheAuthorityinNovember2006andresignedfrom SignificantappointmentshaveincludedChairmanoftheRottnestConservationFoundation,Chairman membershipinNovember2008.MrMcDonaldhasaBachelorofBusinessDegreeandhasworked oftheSwanRiverTrust,ChairmanofDairyWesternAustraliaandVicePresidentoftheWAdivisionof across various fields including Finance, Human Resources, Policy Development and Information CPA Australia. His knowledge covers a diverse number of industries including mining, technology, Technology. In previous senior roles he was the Chief Executive Officer at the State Supply retailing,buildingconstruction,manufacture,agriculture,fishingandfinance.Hehasbeeninvolvedin Commission, a Director in the Department of Treasury and Finance and most recently was the competitivesailingandisregularlyinvolvedinboatingactivitiesincoastalwatersincludingRottnest ExecutiveDirector,WesternAustraliaPoliceresponsibleforHumanResources,Finance,Assets,ITand Island,MurrayRiverandthePeelEstuary. thePoliceAcademy.MrMcDonaldresignedfromhisappointmentinNovember2008.    Member  KarenJacobswasappointedtotheAuthorityinNovember2006.MsJacobsfocusesondeveloping  andencouragingAboriginalpeoples’involvementinenterpriseandbusinessopportunities.Shehas  anextensivebackgroundineducationandtraining,particularlyinthemarketingandpromotionof  new apprenticeships and employment strategies for Aboriginal people. Ms Jacobs has firstͲhand  

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76 Rottnest Island Authority – Annual Report 2008-2009 experienceindevelopingsustainabletourismopportunitiesandhasstronginterestandexperiencein environmentalandconservationprojects.  Ms Jacobs is a former Board Director of Tourism Australia. She is currently Director and Company SecretaryofNoongarPropertyHoldingsPtyLtd(anAboriginalownedpropertyinvestmentgroupthat assists Indigenous commercial initiatives in the Perth and South West regions of Australia), Board Director for Aboriginal Hostel Limited, Commissioner on the Conservation Commission of WA, ChairpersonoftheRottnestIslandEnvironmentalAdvisoryCommitteeandRottnestIslandCultural andHeritageAdvisoryCommittee,ChairpersonoftheKaitajinMiaMiaAboriginalFoundation(Bush University)andaMemberoftheFederalMinisterforTourism,theHon.MartinFerguson’sNational LongTermTourismCommittee.  Ms Jacobs professional qualifications include a Postgraduate Certificate in Policy Studies from Murdoch University and a Trade Certificate in Horticulture. She was awarded a Shire of Swan Achievement Award in 1994 and the National Aboriginal & Islander Day of Celebration (NAIDOC) AwardforOutstandingContributiontotheNoongarCommunityin2002.  Member Peter Dowding SC was appointed to the Authority in August 2007. Mr Dowding was born in Melbourne,Victoriain1943andeducatedinPerthfrom1957atHaleSchoolandtheUniversityof WesternAustralia.Hewasadmittedasalegalpractitionerin1966andhaspractisedasaBarristerand Solicitor being appointed Senior Council in 2005. From 1980 to 1990 he was a member of State ParliamentandaMinisteroftheCrownholdingavarietyofPortfoliosuntil1988whenhebecame Premier of the State of Western Australia until 1990. He is engaged in the community through a numberoforganisationsandispastChairoftheFriendsoftheFestival.Heprovidesongoingsupport andadvicetoanIndigenouscommunityinthePilbara.  Mr Dowding is a passionate supporter of Rottnest Island and strongly attached to an old wooden crayboatwhichprovidesaplatformforhisongoingloveoftheIsland.  Member GeoffTotterdellwasappointedasmemberoftheAuthorityinMarch2009.MrTotterdellgraduated from the University of Western Australia with a Bachelor of Commerce and is a fellow of CPA Australia. He commenced his career in Canberra with the Auditor General’s Office and the DepartmentofTreasury,joinedPriceWaterhouseinPerthin1983,wasadmittedtopartnershipin 1986andretiredfromthefirminDecember2006.Hehasspecialisedinbusinessrecoveryservices, with his principal areas of consulting and advisory activity being business appraisals, investigating accountant reports, reconstructions and turnaround management, and performance monitoring of corporategroupsacrossawideanddiverserangeofindustrygroups.  SignificantappointmentshaveincludedChairmanoftheRottnestConservationFoundation,Chairman oftheSwanRiverTrust,ChairmanofDairyWesternAustraliaandVicePresidentoftheWAdivisionof CPA Australia. His knowledge covers a diverse number of industries including mining, technology, retailing,buildingconstruction,manufacture,agriculture,fishingandfinance.Hehasbeeninvolvedin competitivesailingandisregularlyinvolvedinboatingactivitiesincoastalwatersincludingRottnest Island,MurrayRiverandthePeelEstuary.        

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Rottnest Island Authority – Annual Report 2008-2009 77 Numberofapplicable Meetings x PeoplewithdisabilitiesreceiveinformationfromtheRottnestIslandAuthorityinaformatthat Member Appointed meetingsfor2008Ͳ09 attended willenablethemtoaccesstheinformationasreadilyasotherpeople. LaurieO’MearaAM June2000 9 8 VirtualtoursofaccommodationweremadeavailableontheRottnestIslandAuthority’swebsite. SueMurphy August2004 9 6  SharonBrown April2006 9 6 x PeoplewithdisabilitiesreceivethesamelevelandqualityofservicefromthestaffoftheRottnest RobMcDonald November2006 3 0 IslandAuthorityasotherpeople. KarenJacobs November2006 9 8 ProvisionofafriendlyandwelcomingcustomerserviceisoneoftheRottnestIslandAuthority’s corevalues.Theemphasisoncustomerserviceatalllevelsoftheorganisationcontributesina PeterDowdingSC August2007 9 8 waythatensuresallcustomersreceivethesamelevelandqualityofservicefromRIAstaff.The GeoffTotterdell March2009 3 2 Notes: Authorityhascontinueditssupportofandparticipationinthe‘You'reWelcome’accessinitiative 1.MrMcDonaldresignedfromtheBoardoftheAuthorityon14November2008;GeoffTotterdellwasappointed10March developed by the Disability Services Commission to facilitate access to community life and 2009. amenitiesforpeopleofallagesandabilities. 2.FiguresincludeextraordinarymeetingsoftheBoardoftheAuthority.   x Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletomakecomplaintstothe DirectorsLiabilityInsurance RottnestIslandAuthority. An insurance premium has been taken out to indemnify Authority members against any liability TheRIAactivelyencouragespeopletoprovidefeedbackandoffersavarietyofmeansforpeople incurredundersections13or14oftheStatutoryCorporations(LiabilityofDirectors)Act1996.The to communicate with the Authority; by telephone, mail, email or fax or alternatively by amountofthepremiumpaidfor2008Ͳ09was$36,408. completingthe‘Contactus’formavailableontheRottnestIslandAuthority’swebsite.Allformal complaintsareregisteredandfollowedͲupappropriatelyinordertoachieveresolution. OtherLegalRequirements  Advertising x Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletoparticipateinanypublic consultationbytheRottnestIslandAuthority. Expenditure in advertising, market research and media advertising totalled $123,650 and was Throughout the year, public consultation has been enabled through public media and the incurredinthefollowingareas: RottnestIslandAuthority’swebsite.Feedbackcanbeprovidedinelectronicorwrittenformat.   AdvertisingAgencies Nil   FurtherdetailregardingthesixoutcomescanbefoundwithintheDisabilityAccessandInclusionPlan MarketResearch $30,624 SavantSurveys&Strategies $12,936 availableontheRIA’swebsitewww.rottnestisland.com.au   SynovateResearchReinvented $17,688  Polling Nil   DirectMail Nil   PublicSectorStandardsandEthicalCodes MediaAdvertising $93,026 AdcorpAustralia $26,212 In2008Ͳ2009nocomplaintswerereceivedinrelationtononͲcompliancewiththeethicalcodes.One   MarketForceProductions $33,664 claim received for breach of the Public Sector Recruitment Standard was withdrawn following   MediaDecision $33,150 successfulmediation.   DisabilityAccessandInclusionPlanOutcomes TheRottnestIslandAuthorityfocuseditsattentiononimplementingahigherstandardofrecruitment performancebyfamiliarisingandeducatingmanagersandsupervisorsrelatingtothePublicSector In2008Ͳ09,theRIAcontinuedimprovingservicesforpeoplewithdisabilitiesinlinewiththestated StandardinRecruitment,SelectionandAppointment. outcomesoftheDisabilityAccessandInclusionPlan2007Ͳ12.   AchievementsagainsteachofthesixoutcomesthattheRottnestIslandAuthorityisworkingtowards RecordKeepingPlan wereasfollows: TheRottnestIslandAuthority’sRecordKeepingPlanwasapprovedbytheStateRecordsCommission  inDecember2005andisdueforreviewinDecember2010.AninterimreviewofthePlanisbeing x Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletoaccesstheservicesof,and undertakentoincludeandimplementtheStateRecordsCommissionnewStandard8thatrelatesto anyeventsorganisedbytheRottnestIslandAuthority. requirementsformanagingDigitalRecords. AllinformationaboutRottnestIslandintendedforthegeneralpublic,isdesignedanddeveloped  withdueconsiderationforpeoplewithspecialneeds.TheAuthoritycontinueditscommitmentto WithintheRottnestIslandAuthority,recordkeepingcomplianceisachievedby: theCompanionCardprogramforIslandtoursandtransport.   x Providing new employees with information regarding their record keeping role and x Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletoaccessthebuildingsand responsibilitiesaspartoftheRottnestIslandAuthority’sInductionProgram. otherfacilitiesoftheRottnestIslandAuthority. x EnsuringthatnewstaffsuccessfullycompleteanonlineRecordKeepingAwarenesscourse. Refurbishment of North Thomson accommodation was carried out and two units have been x Producingrecordkeepingbrochuresforreferencepurposes. designed to be wheelchair accessible. Improvements were made to the Sergeant’s Mess at x ProvidingtrainingintheuseoftheTRIMRecordsManagementSystem(TRIM)toindividualsin Kingstownthatincorporatedbetteraccessforpeoplewithdisabilities.Provisionhasbeenmade groupsessions. withintheRIA’saccommodationbookingsystemtoensurethatpeoplewithdisabilitiesareable x ProvidingongoingassistancetoTRIMusers. toaccessrelevantinformationandappropriateaccommodation. x ConductingperiodicauditsofrecordscreatedbyTRIMuserstoestablishthequalityandlevelof  useoftheTRIMsystem.

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78 Rottnest Island Authority – Annual Report 2008-2009 x PeoplewithdisabilitiesreceiveinformationfromtheRottnestIslandAuthorityinaformatthat willenablethemtoaccesstheinformationasreadilyasotherpeople. VirtualtoursofaccommodationweremadeavailableontheRottnestIslandAuthority’swebsite.  x PeoplewithdisabilitiesreceivethesamelevelandqualityofservicefromthestaffoftheRottnest IslandAuthorityasotherpeople. ProvisionofafriendlyandwelcomingcustomerserviceisoneoftheRottnestIslandAuthority’s corevalues.Theemphasisoncustomerserviceatalllevelsoftheorganisationcontributesina waythatensuresallcustomersreceivethesamelevelandqualityofservicefromRIAstaff.The Authorityhascontinueditssupportofandparticipationinthe‘You'reWelcome’accessinitiative developed by the Disability Services Commission to facilitate access to community life and amenitiesforpeopleofallagesandabilities.  x Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletomakecomplaintstothe RottnestIslandAuthority. TheRIAactivelyencouragespeopletoprovidefeedbackandoffersavarietyofmeansforpeople to communicate with the Authority; by telephone, mail, email or fax or alternatively by completingthe‘Contactus’formavailableontheRottnestIslandAuthority’swebsite.Allformal complaintsareregisteredandfollowedͲupappropriatelyinordertoachieveresolution.  x Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletoparticipateinanypublic consultationbytheRottnestIslandAuthority. Throughout the year, public consultation has been enabled through public media and the RottnestIslandAuthority’swebsite.Feedbackcanbeprovidedinelectronicorwrittenformat.  FurtherdetailregardingthesixoutcomescanbefoundwithintheDisabilityAccessandInclusionPlan availableontheRIA’swebsitewww.rottnestisland.com.au  PublicSectorStandardsandEthicalCodes In2008Ͳ2009nocomplaintswerereceivedinrelationtononͲcompliancewiththeethicalcodes.One claim received for breach of the Public Sector Recruitment Standard was withdrawn following successfulmediation.  TheRottnestIslandAuthorityfocuseditsattentiononimplementingahigherstandardofrecruitment performancebyfamiliarisingandeducatingmanagersandsupervisorsrelatingtothePublicSector StandardinRecruitment,SelectionandAppointment.  RecordKeepingPlan TheRottnestIslandAuthority’sRecordKeepingPlanwasapprovedbytheStateRecordsCommission inDecember2005andisdueforreviewinDecember2010.AninterimreviewofthePlanisbeing undertakentoincludeandimplementtheStateRecordsCommissionnewStandard8thatrelatesto requirementsformanagingDigitalRecords.  WithintheRottnestIslandAuthority,recordkeepingcomplianceisachievedby:  x Providing new employees with information regarding their record keeping role and responsibilitiesaspartoftheRottnestIslandAuthority’sInductionProgram. x EnsuringthatnewstaffsuccessfullycompleteanonlineRecordKeepingAwarenesscourse. x Producingrecordkeepingbrochuresforreferencepurposes. x ProvidingtrainingintheuseoftheTRIMRecordsManagementSystem(TRIM)toindividualsin groupsessions. x ProvidingongoingassistancetoTRIMusers. x ConductingperiodicauditsofrecordscreatedbyTRIMuserstoestablishthequalityandlevelof useoftheTRIMsystem.

Rottnest Island Authority – Annual Report 2008-2009 79  GovernmentPolicyRequirements OtherKeyLegislationImpactingonRottnestIslandAuthorityActivities   WesternAustralianStateLegislation  CorruptionPrevention AboriginalHeritageAct1972 NavigableWatersRegulations1958 To improve corporate governance the Authority has reviewed its organisational structure, the AboriginalHeritageRegulations1974 OccupationalSafetyandHealthAct1984 Delegation Manual and the Code of Conduct. The Authority has also commenced a review of all AuditorGeneralAct2006 Occupiers’LiabilityAct1985 policies and procedures to identify misconduct and corruption risks. An audit of the complaint ConservationandLandManagementAct1984 PublicInterestDisclosureAct2003 handlingprocesshasalsobeenundertaken. ContaminatedSitesAct2003 PublicSectorManagementAct1994  DisabilityServicesAct1993 SalariesandAllowancesAct1975 During 2008Ͳ09, the Authority developed and implemented Workplace Issues and Grievance ElectricityIndustryAct2004 SoilandLandConservationAct1945 ResolutionGuidelines,andanewConflictofInterestPolicyandConflictofInterestGuidelines.These EnergyOperators(Powers)Act1979 StateRecordsAct2000 StateSupplyCommissionAct1991 havebeencommunicatedtoemployeesthroughtheintranet. EnvironmentalProtectionAct1986 StateSuperannuationAct2000  EqualOpportunityAct1984 FinancialManagementAct2006 StatutoryCorporations(LiabilityofDirectors)Act1996 The Public Interest Disclosure Act 2003 (the Act) enables people to make disclosures about FinesPenaltiesandInfringementNotices Volunteers(ProtectionfromLiability)Act2002 wrongdoingwithintheStatepublicsector,localgovernmentandpublicuniversitieswithoutfearof EnforcementAct1994 WaterServicesLicensingAct1995 reprisal. FishResourcesManagementAct1994 WesternAustralianMarineAct1982  FreedomofInformationAct1992 WesternAustralianTourismCommissionAct1983 TheActaimstoensureopennessandaccountabilityingovernmentbyencouragingpeopletomake GovernmentEmployeesHousingAct1964 WildlifeConservationAct1950 disclosuresandprotectingthemwhentheydo. Health(RottnestIsland)ByͲlaws1989 CommonwealthLegislation  HeritageofWesternAustraliaAct1990 AustralianHeritageCommissionAct1975 Details on public interest disclosure are accessible on the Rottnest Island Authority’s website and IndustrialRelationsAct1979 DisabilityDiscriminationAct1992 intranet.InformationaboutpublicinterestdisclosureisalsoincludedintheInductionManualwhichis JettiesAct1926 EnvironmentalProtectionandBiodiversityConservation LiquorLicensingAct1988 providedtoallemployees.Therewerenoreportedcasesin2008Ͳ09. Act1999 MarineandHarboursAct1981 HistoricShipwrecksAct1976  MaritimeArchaeologyAct1973 LighthousesAct1911 OccupationalSafetyandHealth MinimumConditionsofEmploymentAct1993 PrivacyAct1988   A new Safety Committee was formed in December 2008 and a consultancy specialising in occupationalsafetyandhealthwasappointedinMay2009toassisttheRottnestIslandAuthorityto createanagencywideSafetyManagementPlan.Themainthrustoftheplanisthemanagementof occupationalsafetyandhealthriskassociatedwithfacilitiescontractsandcontractmanagementin general.  Annualperformancefor2008Ͳ09: NumberofFatalities Number of Severe Number of Lost Time Lost Time Injury Claims Injury/Diseases SeverityRate 0 0 1 0

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80 Rottnest Island Authority – Annual Report 2008-2009  OtherKeyLegislationImpactingonRottnestIslandAuthorityActivities  WesternAustralianStateLegislation  AboriginalHeritageAct1972 NavigableWatersRegulations1958 AboriginalHeritageRegulations1974 OccupationalSafetyandHealthAct1984 AuditorGeneralAct2006 Occupiers’LiabilityAct1985 ConservationandLandManagementAct1984 PublicInterestDisclosureAct2003 ContaminatedSitesAct2003 PublicSectorManagementAct1994 DisabilityServicesAct1993 SalariesandAllowancesAct1975 ElectricityIndustryAct2004 SoilandLandConservationAct1945 EnergyOperators(Powers)Act1979 StateRecordsAct2000 EnvironmentalProtectionAct1986 StateSupplyCommissionAct1991 EqualOpportunityAct1984 StateSuperannuationAct2000 FinancialManagementAct2006 StatutoryCorporations(LiabilityofDirectors)Act1996 FinesPenaltiesandInfringementNotices Volunteers(ProtectionfromLiability)Act2002 EnforcementAct1994 WaterServicesLicensingAct1995 FishResourcesManagementAct1994 WesternAustralianMarineAct1982 FreedomofInformationAct1992 WesternAustralianTourismCommissionAct1983 GovernmentEmployeesHousingAct1964 WildlifeConservationAct1950 Health(RottnestIsland)ByͲlaws1989 CommonwealthLegislation HeritageofWesternAustraliaAct1990 AustralianHeritageCommissionAct1975 IndustrialRelationsAct1979 DisabilityDiscriminationAct1992 JettiesAct1926 EnvironmentalProtectionandBiodiversityConservation LiquorLicensingAct1988 Act1999 MarineandHarboursAct1981 HistoricShipwrecksAct1976 MaritimeArchaeologyAct1973 LighthousesAct1911 MinimumConditionsofEmploymentAct1993 PrivacyAct1988 

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Rottnest Island Authority – Annual Report 2008-2009 81 ACKNOWLEDGEMENTS  TheAuthorityacknowledgesthesupportandassistancereceivedduringtheyearfromthefollowing organisations:   ConservationandCommunityGroups StateGovernment AboriginalEldersandAboriginalCommunity CentralTAFE BirdsAustralia DepartmentforPlanningandInfrastructure BoatingIndustryAssociation DepartmentofAgricultureandFood CharterBoatOwners&OperatorsAssociationof DepartmentofConsumerandEmploymentProtection WesternAustralia DepartmentofEnvironmentandConservation ConservationVolunteers DepartmentofFisheries HonoraryBayHosts DepartmentofHealth HonoraryRangers DepartmentofIndigenousAffairs NationalTrustofAustralia(WA) DepartmentofPremierandCabinet RottnestConservationFoundation DepartmentofTransport RottnestOffshoreBoardridersClub DepartmentofTreasuryandFinance RottnestSociety FireandEmergencyServicesAuthorityofWestern RottnestVoluntaryGuidesAssociation Australia ScoutingAssociationofWesternAustralia HeritageCouncilofWesternAustralia VolunteerFisheriesLiaisonOfficers Landgate WinnitClub Lotterywest YachtingWesternAustralia MainRoadsWA BoatingWesternAustralia MarineParksandReservesAuthority  ParliamentaryCounsel’sOffice ResearchandAdvisoryGroups PerthTransportAuthority PerthZoo RottnestIslandCulturalHeritageAdvisoryCommittee RiskCover RottnestIslandEnvironmentalAdvisoryCommittee StateSolicitor’sOffice RottnestIslandMarineIssuesAdvisoryCommittee SustainableEnergyDevelopmentOffice RottnestIslandRailwayAdvisoryCommittee TourismWesternAustralia RottnestIslandTourismAdvisoryCommittee WaterCorporation EdithCowanUniversity WesternAustraliaPolice MurdochUniversity WesternAustralianMuseum NotreDameUniversity WesternAustralianPlanningCommission UniversityofWesternAustralia   FederalGovernment ProfessionalandBusinessGroups CSIROScienceEducationCentre AustralianAssociationforEnvironmentalEducation FremantleChamberofCommerce FremantleVolunteerSeaRescue ForumAdvocatingCulturalandEcotourism RottnestFireandEmergencyServices RecFishWest RottnestIslandBusinessCommunity  

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82 Rottnest Island Authority – Annual Report 2008-2009