INCORPORATING THE SUSTAINABILITY REPORT Annual Report 2007/2008 Report Annual GOULBURN VALLEY WATER

GOULBURN VALLEY WATER ANNUAL REPORT 2007 / 2008 INCORPORATING THE SUSTAINABILITY REPORT Regional Administration Centre 104-110 Fryers Street, Shepparton, 3630 PO Box 185, Shepparton, 3632 DX 63036 Telephone: (03) 5832 0400 Facsimile: (03) 5831 1467 Email: [email protected] Website: www.gvwater.vic.gov.au

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© State of Victoria, Goulburn Valley Region Water Corporation 2008 Recycled Supporting responsible use This publication is copyright. No part may be reproduced by any process of forest resources www.fsc.org Cert no. SGS-COC-2262 except in accordance with the provisions of the Copyright Act 1968 ©1996 Forest Stewardship Council Goulburn Valley Water 2007 / 2008 Annual Report

Year In Review July 2007 • New water legislation came into effect on 1 July 2007, Goulburn Valley Region Water Authority became Goulburn Valley Region Water Corporation and the Chief Executive Officer became the Managing Director and a member of the Board. • Stage 4 water restrictions introduced to all towns on the Goulburn and Murray River Systems due to the concern of bulk water allocation. August 2007 • Public Comments sought on 2008-2013 Draft Water Plan. • 1,000 trees planted at Seymour wastewater management facility with the help from St Mary’s College. • Pumping of water from the Melbourne supply system into Kilmore supply network commenced. September 2007 • Stage 4 water restrictions eased to Stage 2 for towns on the Goulburn System. • 32 young people participated in the Enviro Science Workshop - School Holiday Program. October 2007 • Another successful National Water Week was held in the Don Cummins making a Goulburn Valley region. presentation to Laurie Gleeson at • James & Julie Daniel win the Waterwise Garden Award for his retirement dinner in April 2008 the second year. • General Exemption to Stage 4 water restrictions applied to the Murray System. • Stage 2 water restrictions eased to Stage 1 for towns on the Goulburn System. Table of Contents November 2007 2007/2008 Highlights ...... 1 • Don Cummins appointed Chairman and Bruce Nicholls 1 A Message from the Cairman and appointed to the Board of Goulburn Valley Water. • World’s first Corporate Environmental Licence signed Managing Director ...... 2 with EPA. Overview ...... 4 • Tankering of water from Seymour to Broadford Corporate Governance ...... 14 commenced. Water and the Environment ...... 18 December 2007 • General Exemption Stage 4 water restrictions eased to Customers and the Community ...... 38 Stage 1 for the Murray System. Assets and Infrastructure ...... 48 January 2008 Organisational Capability ...... 55 • First Mind Body Life staff fitness program launched. Business Performance and Compliance ...... 67 February 2008 Performance Reporting ...... 71 • Board appoints new Managing Director from within the Corporation. Peter Quinn – General Manager - Corporate Financial Statements - 30 June 2008 ...... 79 Services. Disclosure Index ...... 108 March 2008 • Construction of Tallarook to Broadford pipeline commenced. April 2008 About this Report • Laurie Gleeson retires after nearly 28 years at helm of This Annual Report covers Goulburn Valley Water’s Goulburn Valley Water and its preceding bodies. operations from 1 July 2007 to 30 June 2008. It also May 2008 incorporates Goulburn Valley Water’s sustainability • Peter Quinn commences duties as Managing Director. report and is a summary of programs and initiatives designed to meet key commitments of our Sustainability June 2008 Improvement Plan and the key result areas and • Goulburn Valley Water hosted six Goulburn Valley Grammar performance indicators set out in our Corporate Plan. School students for the Science students@ work program. • The Essential Services Commission final determination released for the 2008-2013 water plan period

Highlights (L-R) Peter Quinn - Managing Director, Don Cummins - Chairman

A message from the Chairman and Managing Director

It gives us great pleasure to present the Report of 2007/2008 year with a zero allocation on the Murray Operations for Goulburn Valley Water for the year ending System and this slowly increased over the year to a 30 June 2008, in accordance with the Financial final allocation of 43%. In 2006/2007 we carried over Management Act 1994. approximately 4,000 megalitres on the Goulburn System and transferred part of this to the Murray system in This year our Annual Report also incorporates our 2007/2008 to meet the needs of our customers. In Sustainability Report. The case studies throughout 2007/2008 we have carried over approximately 30% on the 2 this report, highlights a range of activities undertaken Murray System which we will use in 2008/2009. during 2007/2008 as part of the implementation of our sustainability improvement plan. This plan is our blueprint All towns across Goulburn Valley Water’s region were for continuous improvement in the sustainability of our on water restrictions and have been now for 18 months. business and this region in which we all enjoy living. Towns supplied from the Sunday Creek system have been on Stage 4 water restrictions since December 2006 and 2007/2008 has been a year of change for Goulburn Valley Water. We started off the year with changes to the the supply is being supplemented with water from the governance of the organisation, 1 July the Water (Governance) Melbourne System and the Goulburn System. This year we Act 2006 come into effect and we changed from being a spent approximately $2.5 million on trucking water from water authority to a water corporation. Board Members Seymour to Broadford. Approximately 252,000 kilolitres became Directors of the Corporation and the Chief Executive of water was trucked to Broadford. These emergency Officer became the Managing Director and a member of measures are extremely expensive, but necessary the Board. In November we had a change of Chair with the to maintain the restricted supplies to our customers. appointment of Don Cummins, in April the Corporation’s We would like to take this opportunity to thank all our long serving Managing Director, Laurie Gleeson retired after customers who have been conscientious about their more than 27 years at the helm and Peter Quinn became water usage. Managing Director 1 May 2008. We also had a new General Water consumption in 2007/2008 was 23,264 megalitres Manager – Corporate Services commence in June and at the in total compared with 25,852 megalitres in the previous beginning of 2008 the Technical Services group underwent year. This was a 10% decrease on the previous year, and the a realignment and established a new Technical Services lowest consumption figure for over 10 years. This result is Customer Service team. more than 26% less than the 31,302 megalitres consumed In addition to the personnel changes we also had a change in 2001/2002. This is an excellent result and demonstrates in our EPA licencing with the signing of the world’s first the commitment of communities and industry to Corporate Licence. This Corporate Licence is an innovative sustainable water use. approach that the Corporation and the EPA believes will The irrigation system in our region is undergoing significant improve environmental performance and accountability. It upgrade which requires a lot of resourcing. The recent will also encourage the Corporation’s staff to embrace the concepts of sustainability with greater commitment. emergence of the Foodbowl project and new organisations (NVIRP and FutureFlow Alliance) in the region is creating 2007/2008 was also another year of scarce water strong competition for human and other resources. In this resources. For the first time in history we started the context, attracting and retaining employees at all levels

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Sunset over the Numurkah wastewater management facility

will be challenging over the next few years. However, we and performance indicators, approves the operational recognise that water security in the long term is essential expenditure required to meet the standards, endorses to the Corporation and the region, which is why we are the investment of around $113 million in infrastructure a committed participant in development of the Northern development over the period and sets a tariff and price Region Sustainable Water Strategy. path for the next five years. During 2007/2008 we commenced and completed a The environmental performance of our 26 wastewater number of projects that will help improve water security management facilities continued to be optimised, with and water quality for many towns across our region. These 25 of our facilities achieving 100% compliance with EPA projects included: licence conditions. The Corporation recycled 93% or some 6,700 megalitres of recycled water across the region, on • Construction of new water treatment plant at Alexandra a variety of enterprises including irrigated agriculture, tree • Construction of new raw water storage at Mansfield plantations and golf courses. • Construction of new pump station and pipeline from the The Corporation, in partnership with EPA and individual Goulburn River to Broadford industry customers, continued its program of water and salt audits, as a result significant reductions in sodium 3 • Construction of new covered storage tank at Kilmore are being realised. In 2007/2008 sodium discharged from • Design of a new pipeline from Alexandra to Eildon major industries was 37% less than the 2003/2004 salt and Thornton loads. The industries participating in this program are to be commended for the progress made to date and their ongoing • Design of new water filtration plants for a number of commitment to sustainable production. In November 2007 small towns our Manager Major Customers, Brady Schmidt, was awarded the Institute of Water Administration Development Award. Other significant projects included the upgrading of the This enabled him to undertake a three week overseas wall and spillway at the Sunday Creek Reservoir and study tour in May 2008, to investigate world’s best practise the completion of the Marysville Recycled Water Winter management of trade waste at its source. Storage and Reuse Facility. Throughout the year, Goulburn Valley Water continued to There was no significant changes in the Corporation’s work closely with our catchment partners the Goulburn- financial position during the year. For the 2007/2008 Broken Catchment Management Authority, Goulburn- financial year, the Corporation achieved an operating Murray Water, local municipal councils and other profit of $183,000 compared with $1.5 million profit in the stakeholders to ensure a consistent strategic approach previous year. This operating result included $5.7 million of is taken with initiatives to improve river health and the gifted water and sewerage assets and cash contributions environmental values of the Goulburn Broken catchment. from developers to existing and future infrastructure facilities. This year more than $25.4 million was invested in The enthusiasm, good governance and strategic direction new water and wastewater infrastructure work throughout provided by the Board is acknowledged and appreciated. the region. Our operating profit was impacted this year We thank our staff for their great team effort throughout by the excellent water conservation practices of our the year. By working together we can continue to improve customers. As our customers are using less water the business performance, service delivery to our customers revenue generated from the volumetric charges has and therefore contribute to the development of a decreased. However, on the positive side we have been able sustainable Goulburn Valley region in a safe and healthy to trade water which has offset the loss of revenue. working environment. Over the past year many staff have been involved in the development of our 2008-2013 Water Plan. In June 2008 the Essential Services Commission made a final determination of Goulburn Valley Water’s 2008-2013 Don Cummins Peter Quinn Water Plan. This established the service standards Chairman Managing Director

A Message from the Chairman and Managing Director Overview

Vision – Our Shared Aspiration To be a leader in sustainable water management, delivering quality customer services. Mission – Our Core Purpose To deliver sustainable water services in a safe, efficient and effective manner.

4 What We Value Our Profile On March 1, 1994, Goulburn Valley Region Water Authority Honesty and Integrity was constituted by Ministerial Order, under powers Goulburn Valley Water will operate with honesty and integrity conferred by Division 2 of Part 6 of the Water Act 1989 in all that we do and be respectful of the views of others. and all other available powers. The Water Act 1989 was amended by the Water (Governance) Act 2006 on 1 July Staff Well-Being and Life-Balance 2007 to provide for improved governance arrangements for water corporations which are critical to the performance We value our staff, acknowledge the importance of life of the corporations and to achieve the government’s balance and will assist staff to manage work, personal and objectives for sustainably managing water resources and family commitments. delivering water services in the long-term interests of the community. Teamwork and Professionalism Goulburn Valley Water is a State-owned Government We will strive to achieve excellence in all areas of our Business Enterprise (GBE). The Corporation operates under business through teamwork, professionalism and a culture the Water Act 1989, the Water Industry Act 1994 and the of continuous improvement. Water (Governance) Act 2006. The Hon. John Thwaites, Minister for Water, Environment and Climate Change was Innovation the responsible Minister from 1 July until 2 August 2007. We will utilise innovation to create best value for From 3 August 2007 the Hon. Tim Holding, Minister for stakeholders. Water was the responsible Minister. Goulburn Valley Water is governed by a Board of Directors Health and Safety consisting of seven non-executive members appointed by The health and safety of our people and the community is a the Minister for Water and one executive member. total commitment. The Board sets policy and direction and is supported by the executive management group. Optimism and Enthusiasm We will be positive and approach our respective roles with enthusiasm and commitment and celebrate our successes.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Our Services Goulburn Valley Water provides urban water and wastewater services in accordance with the powers, functions and duties under the provisions of Part 8 – Water Supply and Part 9 - Sewerage, of the Water Act 1989. The Corporation services a population of over 122,000 in 54 towns and cities from the outskirts of Melbourne in the south to the Murray River in the north. Bulk water supply is principally from the Goulburn/Broken, Murray, Steavenson, Rubicon and Delatite River systems and a number of smaller local streams such as Sunday Creek and Seven Creeks. Snapshot of Goulburn Valley Water as at 30 June 2008

Annual Revenue 2007/2008 $49,065,000 Asset base $520,710,000 Number of Employees (FTE) at 174 30 June 2008 Residential properties 49,081 Non-Residential properties 6,589 Water Treatment Plants 39 Wastewater Management Facilities 26 Our Sustainable Direction Pressure and gravity sewers 1,170 km During 2006/2007 Goulburn Valley Water developed a Sustainability Improvement Plan and its purpose is to Water mains 1,694 km clearly state the sustainability goals and commitments Pumping Station 313 that will drive business decisions, and to anchor them with concrete actions for the Corporation to achieve its aims. A Tanks and Reservoirs 110 detailed action plan was developed during 2006/2007 and the commitments and actions have been fully integrated Regulatory Requirements into the business objectives outlined in Goulburn Valley In delivering its services, Goulburn Valley Water must meet Water’s Water Plan and Corporate Plan. a wide range of regulatory obligations in addition to the Goulburn Valley Water’s Sustainability Improvement Plan 5 key role of customer service and meeting the reasonable presents a total community commitment to sustainability. expectations of our customers. From a regulatory With its externally-focused objective of fostering and perspective, the key drivers that influence the services and shaping regional development and resources management, level of service include: it presents a refreshingly innovative approach compared with more common inwardly-focused sustainability objectives. • Water Act 1989; Put simply, it is Goulburn Valley Water’s view that the • Water Industry Act 1994; organisation cannot be a sustainable business if the region • Water (Governance) Act 2006; in which it operates is not sustainable. • The Victorian Government White Paper “Securing our This innovative approach has led to significant outcomes Water Future Together”; since completion of the Sustainability Improvement Plan in November 2006, including: • The Water Industry Regulatory Order; • The Statement of Obligations 2007; • The world’s first Environmental Corporate Licence with EPA Victoria. EPA chose Goulburn Valley Water because of the • The Customer Code and key performance indicators; Corporation’s demonstrated commitment to sustainability. • The Environment Protection Act 1970, associated • A partnership approach between the Corporation, major regulations, policies and licence; customers and EPA Victoria to develop and implement • “Principles to Establish EPA Environmental Obligations cleaner production practices, resulting in reductions of for Water Businesses for the 2008 – 2013 Pricing 25% salt and 50% organic discharges to sewer. Determination, November 2006”; • Green power generated in partnership with Diamond • The Health Act 1958, Safe Drinking Water Act 2003, Food Energy using biogas produced at the Tatura Wastewater Act 1984 and Fluoride Act 1973; Management Facility. • “Regulatory Obligations Administered by DHS for the • Reducing greenhouse gas emissions by 62% since 2001/2002. Purpose of Preparing Water Plans for the regulatory • Reducing residential water use by 17% since 2001/2002. period Commencing 1 July 2008”; • Membership of the “Grow Me the Money” sustainability accord. • Bulk entitlements orders; The following diagram outlines the four goals and 13 • Occupational Health and Safety Act 1985 and associated commitments in the Corporation’s Sustainability Improvement legislation, regulations and codes. Plan.

Overview Goal 2 Goal 1 Goal 3 Goal 4 Ongoing Ensuring ongoing Minimising the Delivering integrated improvement in organisational environmental community benefits business efficiency relevance and footprint effectiveness

2.1 Optimising 1.1 Enhancing GVW’s 4.1 Active community operational systems strategic capability leadership

2.2 Optimising the staff 1.2 Engendering 3.1 Integrated Water 4.2 Building community mix and deployment a culture of Management water literacy sustainability at GVW

3.2 Procuring sustainable products and 2.3 Enhanced 1.3 Embracing 4.3 Supporting water services performance Innovation cycle partners 6 monitoring

3.3 Working towards a carbon neutrality

1.4 Influencing regulators

Goulburn Valley Water’s business objectives for 2007/2008 Our Corporate Plan were categorised into five areas: The development of the 2007/2008 Corporate Plan was a two step process. The first step involved a working group of 1. water and the environment; employees from across each segment of the Corporation. 2. customers and the community; This group reviewed the previous Corporate Plan and put forward suggestions for revised and additional objectives to 3. assets and infrastructure; reflect the commitments in the Sustainability Improvement 4. organisation capability; and Plan. The second step involved a two day workshop with the Board of Directors and executive management team. This 5. business performance and compliance. workshop developed the strategic direction and business The goals, activities and status for each category are objectives of the Corporation for the following 12 months summarised in the following tables. Some areas are covered and a rolling five year period. in more detail throughout the report.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Water & the Environment Objective Initiative/Target 2007/2008 Performance Integrate planning and Incorporate the principles of the GVW2055 completed in May 2007. implementation of regional Sustainability Improvement Plan in development with water developing the Water Supply Demand cycle management to Strategy achieve effective stewardship Actively participate in the Managing Director on the State Government of water whilst also fulfilling development of the Northern Region appointed NRSWS Consultative Committee. essential environmental Sustainable Water Strategy (NRSWS) water requirements Manager-Operations appointed to working group taking account of the Water Supply examining allocation options and associated matters. Demand Strategy and ensuring it supports integrated water cycle management Articulate the business case to Internal workshop held 22 January 2008 to scope the vigorously defend GVW’s current response. Business case will now be developed in Bulk Water Entitlement (BWE) the context of the NRSWS. Manage GVW’s water resources BE seasonal allocation levels monitored until within BWE parameters and resource position was adequate to reduce water judiciously trade any surplus restrictions to Stage 1 without risk to 2008/2009 entitlement into the temporary water resources. Significant single trade to Coliban Water market on an annual basis and trading steadily into irrigation market through the season. Internal transfers of Goulburn BE into Murray system enabled Corporation to apply uniform water restriction levels in both systems. Work with large non-residential All waterMap objectives completed by 30 June 2008 customers to implement water conservation programs and water management plans Review Drought Management Plans Budget for this action has been included in the Water to address changing levels of risk Plan for 2008/2009, having regard to the continuing and streamflow viability (ie water drought and Statement of Obligations requirement markets) to undertake a review following the lifting of water restrictions. 7 Establish targets for the per Targets in the Water Conservation Strategy were connection reduction in water use adopted by the Board at the October 2007 meeting. Deliver quality drinking Achieve 100% compliance with Water quality compliance is generally very good, with water which complies SDWA 2003, Regulations and only minor non-conformances having been recorded. with Australian Drinking undertakings Still achieving 100% compliance. Water Guidelines and DHS Work proactively with catchment Officers continue to work on a number of fronts requirements partners to target investment to contributing to this target. As an example a septic protect and improve the quality and tank risk assessment for properties abutting Lake availability of raw water Eildon co-funded by GVW and G-MW is at draft stage. More recently, officers have commenced working with GB-CMA, G-MW and Melbourne Water to consider catchment management, with a particular focus on water quality risk. Continue the three year program to There has been significant work completed on review the treatment plants at the understanding and improving treatment performance five highest priority water treatment at Shepparton and Numurkah. The focus is now plants, with the objective to optimise shifting to other water treatment plants. The performance and water quality employment of a water treatment specialist has results (commenced in 2006/2007) assisted in providing a more timely response to treatment issues and in up skilling operators.

Overview Objective Initiative/Target 2007/2008 Performance Manage wastewater in a Continue to foster cleaner The Corporation’s cleaner production program is sustainable manner and production principles with industry continuing. In 2007/2008 water and salt audits maximise reuse of reclaimed have been completed for Nestle (Broadford), Pental water and biosolids Soaps, Riverland Oil Seeds, Unilever, and a project throughout the Goulburn with Murray-Goulburn Cooperative at Cobram is Valley region nearly complete. Discussions are to occur with the EPA about priorities for next year. A review of salt and water discharges post audits will also occur in 2008/2009. Minimise impacts of waste products Reuse of recycled water in a sustainable manner with the aim of converting to continues to be aided by the dry conditions. resources wherever practicable Biosolids reuse programs are focusing on capping for landfill sites, with good support from local municipalities. Selling biogas at Tatura and plans are being established for Shepparton. Continue the three year program This project is being delayed due to the to review treatment processes at inability to recruit a suitable process engineer. the five highest priority wastewater However, treatment operators are improving management facilities, with the plant performance at most sites. This has been objective to optimise performance demonstrated by reduced odours at Mooroopna. and environmental outcomes (commenced in 2006/2007) Work with major industries to This target has been exceeded (37% reduction at 30 implement waste minimisation plans June 2008). aiming to reduce salt discharges by 25% by July 2008 Achieve 100% compliance with EPA Target has been met in 2007/2008. GVW has licences and conditions consolidated 26 individual licenses into one Corporate Licence with the signing in November 2007. Work with VicWater and the Achieved. The Victorian water industry position water industry to define recycled paper has been adopted by the industry and has 8 water returned to streams for been discussed with all relevant regulators. EPA is environmental purposes as beneficial holding an industry workshop in August to further reuse resolve their position and the NRSWS acknowledges return to stream as beneficial use. Implement a community engagement Community engagement in respect to biosolids strategy for biosolids reuse reuse was successfully undertaken at Cobram and and continue to optimise reuse Numurkah. opportunities Investigate opportunities to use This action is complete. A pilot study to evaluate recycled water as a substitute for the opportunities for a third pipe Class A scheme at potable water. Mansfield has been completed. To reduce GVW’s greenhouse Identify appropriate and cost- This action is complete. A review of carbon gas emissions with a effective mechanisms to pursue offset mechanisms was conducted as part of the long term goal of carbon carbon neutrality (in the context preparation of the Greenhouse Action Plan. neutrality of current pricing policies) – (2008/2009) Continually review carbon credits This action is not due to commence until and other means of achieving returns 2008/2009. from carbon emission reductions. (2008/2009)

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Customers and the Community

Objective Initiative/Target 2007/2008 Performance To develop customer and Further develop the water education Significant media activity and community community understanding program to broaden community consultation in regard to the development of the of water management issues engagement and awareness of water water plan was undertaken during 2007/2008. and challenges, so that they management (2008/2009) TV promotion was undertaken focusing on water can participate effectively conservation, recycling and water restrictions. in water management and service delivery activities Effectively handle community Achieved. Asset Project Delivery group develops engagement processes associated and implements community engagement plans for with major projects and operational all projects, with the scope reflecting the size and issues that impact upon local potential controversy of the projects. Operational communities community engagement relates primarily to advising the community of operational activities that may impact on them and explaining unplanned incidents after the event. Inform customers and the Achieved through the Corporate Newsletter to community of the benefits of customers published quarterly. Media releases on capital investment, and operational specific projects. initiatives designed to improve the reliability and quality of water supplies and to ensure sustainable reclaimed water management Maintain two-way communication The establishment of a Corporate Community and feedback from customers Reference Committee was approved by the Board in through established local community February 2008. Nominations for the committee will forums and Water Plan Consultative be submitted to the Board for approval at the August Committee 2008 Board meeting. Each year conduct a Customer Market research for the 2008 survey was undertaken Satisfaction Survey and review the in June by Marketsearch. results to identify opportunities for improvement to services and/or communications. 9 To use GVW’s status and Initiate a Regional Futures Forum Foodbowl forum held in Shepparton (September influence within the region to to engender collaborative action by 2007) met this target. Senior management has been offer leadership in fostering regional stakeholders to envision and involved in the development of the Foodbowl Forum regional development, vitality shape a prosperous regional future website and continues to work with community and sustainability (2008/2009) leaders in revamping and expanding the website to address the future directions for the region under the Foodbowl Modernisation banner. To forge a shared vision Develop a plan to motivate, inform GVW continues to work closely with regional of the water futures in and achieve integrated water cycle partners, including regular meeting with technical the region, fostering management through both the staff from G-MW to coordinate matters of common alignment of management individual and collaborative efforts interests. Meeting with GB-CMA, G-MW and and business objectives to with regional partners (2008/2009) Melbourne Water to discuss risks with water supply achieve sustainable water from Eildon reservoir and regular coordination management meetings with technical staff from COGS. Continue to maintain positive Working relationship with key regulators and relationships with key stakeholders agencies continues to be very positive e.g. EPA – and ensure appropriate first Corporate Licence; DSE/DTF – Corporate and communications mechanisms are in financial planning, approval Goulburn-Broadford place interconnector; ESC – Water Plans and regulatory audits; DHS – drinking water quality initiatives and regulated systems. Partnerships with industry in areas of water conservation and cleaner production, Water Map etc. demonstrate strong co-operation and support of GVW.

Overview Assets and Infrastructure

Objective Initiative/Target 2007/2008 Performance Efficiently plan and Continue to refine and trend The Asset Management Improvement Plan (AMIP) manage the Corporation’s performance measures and reporting contains a number of initiatives to specifically infrastructure and assets systems for compliance against the improve asset performance data and reporting. The to enhance our long-term asset management system Corporation has recently participated in its second capacity to deliver high WSAA International Asset Benchmarking project. quality services to our Review the 20 year forward look The 20 year capital works program has been customers infrastructure investment program reviewed & updated as part of the 2008/2009 using whole of life principles to Corporate Plan and adopted at the March 2008 reflect regional priorities whilst Board Meeting. ensuring the Capex Program is deliverable within our financial constraints Monitor progress against the Progress against the adopted program reported to infrastructure investment program the Board on a monthly basis. monthly Undertake Operations Review by Resources for the Operations Strategy were June 2008 redirected to the higher priority Water Plan project. The revised program is to complete the Strategy by April 2009. Work commenced with a workshop of key operational and line management staff in May 2008 to review past performance and identify opportunities for improvement. Maintain and develop Continue development of risk based Risk based contingency planning continues to be the Corporation’s assets contingency plans to enhance the the basis for all of the Corporation’s emergency to minimise risk to the Corporation’s corporate emergency management plans and is being incorporated in all community, the environment management plan such plans as they are either developed or updated. and the Corporation Undertake a minimum of one live A joint exercise based on a chlorine leak at the simulation based event per year Cobram water treatment plant was conducted in conjunction with the Moira Shire Municipal Emergency Management Planning Committee on 25 10 October 2007. Utilising independent consultants, Annual inspections were completed in July 2008 and continue to monitor and report reports to the DSE will be completed by September annually on the safety and 2008. Future dam studies and works are currently performance of GVW’s dam portfolio being assessed. Implement recommendations of The main recommendation of the Review is a SCADA Review pilot of new SCADA technologies that will enable consolidation of the separate systems now in use and provide the capacity and security needed to support future development. A pilot to trial new SCADA infrastructure is in progress and expected to conclude in September 2008.

Central O&M team repairing a burst water main at a major shopping centre intersection in Shepparton.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Broken River at Numurkah

Objective Initiative/Target 2007/2008 Performance Influencing regulatory Advance the outcomes of the General Manager Technical Services continues to environment through water Regional Futures Forum by the meet with Foodbowl Unlimited representatives to industry and regional involvement of the Board and implement the outcomes/conclusions from the 11 associations to invest in and management with regulators Forum. promote ongoing regional Actively pursue opportunities Achieved, and will continue to pursue. development and wise with regulators to use regulatory Chair of Victorian Biosolids Task Group, use of the region’s natural policies and instruments to achieve resources. sustainable outcomes Biosolids research project – future sampling guidelines. World’s first Corporate Environmental Licence with EPA Chair of Victorian Water Industry Position Paper for Return to Stream as Beneficial Use Greenhouse Challenge Plus (AGO) Continue to liaise with industry, local Achieved, and will continue to pursue. government and other agencies to Strathbogie Shire Agribusiness Park development identify commercial opportunities to expand water and sewerage City of Greater Shepparton Freight Logistics Centre/ infrastructure to facilitate regional Mooroopna; economic growth. Chinaman Bridge Caravan Park development; Regional Development Victoria funding for TMI wastewater infrastructure upgrade. Evaluating further beneficial uses for recycled water. To commit to an integrated, Modify current purchasing In accordance with the Sustainability Improvement holistic approach to arrangements throughout GVW’s Plan this initiative is due to commence in sustainability by using supply chain to strengthen demand 2008/2009. purchasing power to ‘green for sustainable resource and material the supply chain’ inputs Review and adjust project briefs and In accordance with the Sustainability Improvement specification templates to require Plan this initiative is due to commence in consultants and contractors to 2008/2009. deliver services in line with GVW’s sustainability policy and principles

Overview Organisational Capability

Objective Initiative/Target 2007/2008 Performance To enhance or access the Further develop our framework and This initiative has been completed and the plan is capability to undertake approach to incorporate the Sustainability being implemented. strategic thinking Improvement Plan into the Corporate Plan and to translate that Establish responsibilities and Relevant personnel attended conferences and into strategic forward procedures to keep abreast of emerging industry forums to keep abreast of and contribute to planning, so that the environmental, social, market, political emerging issues. organisation is well and technological trends, including placed to lead thinking in regulatory reporting mechanisms strategic initiatives with business partners Ensure that the organisation is The Technical Services realignment has been responsive and adaptive to changing implemented and several new positions have been trends identified in the water plan to improve our response to future challenges. Billing, financial and HR systems continue to evolve, streamlining business efficiency right across the organisation. To review and modify the Implement, further develop and regularly Continual review of recruitment strategies and organisational structure update the Corporation’s strategy practices undertaken during 2007 including and recruitment for accessing and retaining human involvement with WSAA Skills Shortages Project and practices to ensure resources (e.g. recruitment, scholarships WICD Employer Branding Project. that GVW accesses the partnering, alliances, employee learning skilled resources to meet and development) the emerging business Regularly review the organisational Technical Services review implemented including needs structure to ensure it supports the effective consolidating technical services customer interaction deployment of staff and resources into one team. Significant additional personnel resources approved for 2008-2013 Water Plan. Review the performance monitoring and Review of data management completed April 2008. evaluation systems against operating policies to ensure information is available to support continual business improvement Submit an annual plan to the Board which A Succession Planning Matrix was adopted by Board 12 addresses the organisational structure, in August 2007, and assisted in the selection process resourcing, capability and succession. for new Managing Director. To achieve a high level Review existing policies and modify to Revised policies were adopted at the March and April of awareness and ensure alignment with the Sustainability 2008 Board Meetings. commitment amongst Policy and principles GVW staff to fostering Assess all projects and operations Achieved – GVW’s Sustainability Assessment Tool (SAT) sustainability through against TBL criteria is being presented to the August 2008 Board meeting their operational roles, and has been applied for recent project evaluations. decisions and interaction with regulators, Develop and implement a staff Developed and implemented, but further initiatives development partners awareness and cultural change will be introduced. Several initiatives underway: and customers program demonstrating the corporate • OHS Culture Change Project; commitment to sustainability and their • Signed up to Greenhouse Challenge Plus program role in its implementation managed by the Australian Greenhouse Office; • Fryers Street office now carbon neutral; and • Paper and power usage monitored and reported in Down the Pipeline staff newsletter. Actively pursue sustainability and other A submission for the Premiers Sustainability Awards awards to highlight the commitment and 2008 lodged. However, the submission was not achievements of GVW with its partners successful. Ampla implementation of SCADA finalist in the 2008 PACE Zenith awards. Embracing innovation Annually workshop business Emerging trends and technologies are closely - actively seeking opportunities arising from focus on monitored and assessed via attendance at and ways of improving sustainable business practices, adapting presentation at industry workshops, conferences the effectiveness and to change and scanning of emerging and working groups. efficiency of business trends and technologies and operation systems Encourage interaction and • Data management strategy group – WIP. by incorporating communication across workgroups • OH&S culture group work complete. innovative approaches through a range of cross-functional and technologies • Paperwork Optimisation Group. structures and forums • Indoor/outdoor co-ordination committee. • Fortnightly internal newsletter.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Business Performance and Compliance

Objective Initiative/Target 2007/2008 Performance Maintain a safe and healthy Establish a ‘no incident’ work safety Safety Culture working group report completed work environment for staff, culture October 2007. Health & Safety Committee developed contractors, customers and implementation plan March 2008. Recommendations visitors being implemented throughout 2008/2009. Develop and implement an Employee Completed and launched October 2007. Assistance Program and Health and Well being program as described in clause 4.1.3 of the Human Resources Strategy Maintain a commitment to Continue to apply a risk-based Ongoing. sound strategic and business approach to planning, budgeting and planning decision-making processes Conduct an annual strategic planning Workshop held November 2007 at which the Board workshop and align the Board and senior executives identified key business Calendar with strategic and business priorities and strategic objectives. planning cycles Regularly review and Optimise investment by reflecting This action is complete, with the GVW TBL enhance operations and regional growth scenarios and assessment tool being applied to the 20 year business systems to achieve sustainability principles in the 20 infrastructure plan adopted by the Board. improvements in efficiency year cap-ex plan and short and long-run cost Streamline business systems to OMS, EMS & OHS documentation integrated into a effectiveness of service support more efficient business single system in October 2007. delivery practices Review and optimise the operational Rescheduled due to Water Plan commitments. Work efficiency of current delivery and has commenced on the review, with a workshop of treatment systems key operational and management staff held in May 2008. Continue to work towards an GVW currently has the fundamentals of an Integrated Integrated Management System Management System (IMS). This has been confirmed (IMS) (target 2008/2009) via audit of several of the Corporation’s key 13 management systems. The challenge now is to build these fundamentals into all of the other management systems as they are developed and reviewed. Enhance GVW’s current Assess and determine the most The Sustainability Assessment Tool is complete and monitoring and measuring appropriate sustainability measuring, is to be presented to the August 2008 Board meeting systems to assist ongoing decision support and reporting tools for noting. improvement in business for GVW performance and the delivery of sustainability outcomes consistent with GVW’s operating policies Maintain performance Report progress against targets and Achieved. Reported to August and March Board management and initiatives set out in the Corporate meetings. reporting procedures that Goals on a six monthly basis. ensure management’s Report progress against Corporate Achieved. Progress/status reported to April Board accountability to the Board Risk Action Plan on a six monthly meeting. and the accountability of the basis Corporation to regulators

Overview Photo courtesy of Mansfield Courier – Mansfield Shire visit new raw water storage. (L-R) Cr Tom Ingpen, Mansfield Shire chief executive officer David Roff, Goulburn Valley Water (GVW) chairman Don Cummins, Cr Sandie Jeffcoat, Mayor Marg Attley, Cr Jeff Whyte, GVW South East district manager Ken Turner, shire director of sustainable development Kim Steinle and shire engineer Paul Valente)

14 Corporate Governance

Board Board Composition The Directors of the Board of Goulburn Valley Water The Board comprises of seven non executive directors operate under the provisions of the Water Act 1989 and appointed by the Minister for Water and the Managing have responsibility for the corporate governance of the Director. For the period 1 July 2007 to 31 October 2007, Corporation. The Board is responsible for setting strategic the non-executive Directors of the Board were Jennifer direction, establishing goals and objectives for executive Houghton (Chairman), Catherine Scott (Deputy Chairman), management and monitoring the business on behalf of its Don Cummins, Denis Flett, Michael Hall, Mark Lawlor and customers and the Victorian Government. Key corporate Margaret Rae. governance responsibilities include: On 1 November 2007 the Chairman’s position and one • The adoption and monitoring of Goulburn Valley Water’s non-executive director’s position became vacant. The Corporate Plan, Water Plan and Statement of Obligations; Minister for Water appointed Don Cummins as Chairman and reappointed Denis Flett and appointed Bruce Nicholls • Monitoring operational and financial performance on a as a new director to Board. regular basis; The current non executive Directors of the Board are Don • Ensuring that risk management systems are in place to Cummins (Chairman), Catherine Scott (Deputy Chairman), cover environmental, operational and financial risks; Denis Flett, Michael Hall, Mark Lawlor, Bruce Nicholls and • Appointing, establishing objectives and reviewing the Margaret Rae. performance of the Managing Director; • Ensuring that Goulburn Valley Water has policies and procedures to satisfy its legal and ethical responsibilities; and • Reporting to and communicating with the Victorian Government and other stakeholders on the financial and operational performance of the Corporation.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Directors of the Board

Don Cummins Don Cummins, Chairman, lives on a beef farm at Lake Nillahcootie. He was appointed as Chair of Goulburn Valley Water from late November 2007 after a three year term chairing Goulburn-Murray Water from 2004. Don was a maths/ science and economics teacher before becoming mayor of Delatite Shire Council and - after leading the break-up of that shire - the inaugural mayor of the new Mansfield Shire Council.

Catherine Scott Catherins Scott, Deputy Chairman, lives in Bylands near Kilmore and operates a beef cattle stud with husband Mark. She is an experienced board member and senior executive with over 15 years experience in the finance/investment banking industry with a strong focus on infrastructure and agribusiness funding. Catherine has a unique combination of investment banking and corporate experience in the aviation, infrastructure and agriculture sectors. Catherine is also a director of Goulburn Murray Rural Water Corporation, V/Line Passenger Pty Ltd, V/Line Corporation and VicForests. Catherine is Chair of the audit committees of VicForests and V/Line Passenger Pty Ltd. She is a Fellow of the Australian Institute of Company Directors, holds a Bachelor of Science (Honours) degree, a Bachelor of Commerce Degree and Company Director Course Diploma from the Australian Institute of Company Directors.

15

Denis Flett Denis Flett, lives in Tatura, is President of the Tatura Football Netball Club and a Member of the South Australian Water Security Council. He is the Manager, Rural Water with Sinclair Knight Merz and his roles in this capacity include Chair of the Independent Audit Group for the Murray-Darling Basin Commission (MDBC), Chair of the Victorian Consultative Committee for the Northern Region Sustainable Water Strategy and working on the development of water accounting in Australia. Denis has a Bachelor of Civil Engineering from Monash University and is a Fellow of Engineers Australia and The Australian Institute of Company Directors. He was the foundation Chief Executive and a Board Director of Goulburn-Murray Water for 11 years and represented Victoria on the MDBC for 10 years.

Michael Hall Michael Hall, lives in Shepparton and has a Bachelor of Arts majoring in Economics and Accountancy. Michael is a member of the Institute of Chartered Accountants of Scotland and Australia, a Registered Tax Agent and a Registered Company Auditor. Michael is currently a Partner in charge of Audits and Wealth Management at MB+ M Business Solutions. Michael is active in a range of community roles including Shepparton Golf Club, Fairley Leadership Program, Goulburn Valley Grammar School and a member of the Audit Committee of Goulburn Broken Catchment Management Authority.

Corporate Governance Mark Lawlor Mark Lawlor, lives in Merrigum, in the heart of irrigation country, and is Managing Director of a successful contract fencing company. Mark has been involved in the Victorian water industry since 1991 and served on the Boards of Goulburn Valley Water from 1994 until 2000 and Goulburn Murray Water from 2001 until 2004. He holds a Graduate Diploma in Environmental Management from La Trobe University with a particular focus on issues relating to the Murray-Darling Basin, and Company Directors Course Diploma from the Australian Institute of Company Directors. Mark is very supportive of the regional vision of investment to upgrade local irrigation infrastructure and is interested to expand that vision to include a reassessment of the correct balance between consumptive water entitlements and the environmental water reserve.

Bruce Nicholls Bruce Nicholls B.Comm. Dip Bus., Foundation Fellow, Australian Institute of Company Directors. Now a resident of Mitchell Shire, Bruce is a former Trade Commissioner, Director of State Development in NSW, Public Company Director, Chairman of the Royal Automobile Club of Australia and Trustee of the Committee for Economic Development of Australia. Currently Managing Director of Capital Holdings & Development (CHADCORP)- an investment holding Company, Bruce grazes cattle at Glenaroua and is active in local community groups, including Rotary, Landcare and the CFA.

16

Margaret Rae Margaret Rae, lives in Alexandra, has a Bachelor of Arts and is a Graduate Member of the Australian Institute of Company Directors. Her professional career has spanned a range of management roles with Deakin, LaTrobe and Swinburne Universities. Margaret is currently President of the Alexandra District Hospital, Chair of the GVW Operations, Environmental and Safety Committee, Treasurer/ Secretary of the Buxton Rural Fire Brigade and is former Deputy Chair of Lake Mountain Alpine Resort Management Board. She has also been an active member of Waterwatch and a number of other community organisations.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Board Meetings and Committees appear to affect, their judgement. The Board Chairman, Don Cummins is an ex-officio member of the committee Board meetings are scheduled for the first Wednesday and the Committee Secretary is the General Manager – of each month except January. Additional meetings are Finance, Graeme Jolly. convened from time to time as circumstances arise and periodic infrastructure inspections and consultation The Remuneration and Performance Committee meetings are undertaken throughout the year. The reviews the performance and remuneration of senior Managing Director and General Managers attend all Board executives within the policy parameters issued by the Meetings. The General Manager - Corporate Services is Government Sector Executive Remuneration Panel the nominated Board Secretary and provides advice to the (GSERP). The Committee, on behalf of the Board, strives to Board on governance matters. attract, retain and motivate senior executives of the quality required to provide sound performance and leadership of The Board has established three Committees to assist the Corporation. in carrying out its functions and responsibilities. The Chairman convenes the Remuneration and Performance The Remuneration and Performance Committee members Committee and is an ex-officio member of all other were Jennifer Houghton (Chair), Michael Hall, Catherine Committees. The Managing Director attends meetings Scott and Dennis Flett until November 2007. The new together with senior executives as required. Minutes of committee members from November are Don Cummins Committee meetings are presented to the full Board. (Chair), Catherine Scott, Dennis Flett and Bruce Nicholls The Audit and Compliance Committee is delegated The Operations, Environment and Safety Committee the task of overviewing all financial matters including is responsible for ensuring the effective management of appointment of auditors, review of audit programs, operational risks, reviewing operational/environmental adequacy of internal financial controls, operating and performance and compliance with water quality guidelines accounting policies and controls. The Victorian Auditor- and the Environmental Management System, and ensuring General is responsible for the audit of the Corporation’s the fulfilment of obligations and responsibilities relating to financial records. Richmond Sinnott & Delahunty Occupational Health and Safety. (Chartered Accountants) have been appointed by the Auditor-General as his Agent for the year ended 30 June The Operations, Environment and Safety Committee 2008. Pitcher Partners are engaged as the Corporation’s members were Margaret Rae (Chair), Don Cummins, and internal auditors. Mark Lawlor until 31 October 2007. The new committee members from November are Margaret Rae (Chair), Mark The Audit Committee members are Michael Hall (Chair), Lawlor and Bruce Nicholls. The Board Chairman Don Catherine Scott and Denis Flett. All members are Cummins is an ex-officio member of the committee and independent in character and judgement and there are the Committee Secretary is General Manager – Technical no relationships or circumstances which could affect, or Services, Allen Gale.

17 Name Board Audit & Compliance Remuneration Operations Environment Meetings Committee Committee & Safety Committee Jenny Houghton 4/4 *1/1 4/4 (retired 31/10/07) Don Cummins 3/4 1/1 Don Cummins 7/7 *2/3 3/3 *1/3 (Chairman 01/11/07) Catherine Scott 11/11 4/4 6/6 Denis Flett 11/11 4/4 5/6 Michael Hall 11/11 4/4 5/6 Mark Lawlor 11/11 4/4 Bruce Nicholls 7/7 2/2 2/2 (appointed 1/11/2007) Margaret Rae 11/11 4/4 * ex officio member

Corporate Governance Weir at Seven Creeks Euroa

and Water the Environment

monitoring of flows which is used to help identify leaks and Our Water Our Future to reduce water losses. The Victorian Government’s White Paper Our Water Our Future was released in 2004 and identified over 18 100 actions. The actions impact on every sector of the Water Conservation community, from households to industry, environment, Goulburn Valley Water is committed to water conservation. recreation and agriculture to enable smarter water use and In 2007/2008 the Corporation revised its water management across the state. conservation strategy to build upon the targets outlined in During 2007/2008 Goulburn Valley Water continued to the water supply demand strategy GVW2055 and to focus work towards fulfilling the obligations set out in Our Water on actions for the 2008-2013 Water Plan period. Our Future. The Corporation has an extensive education program which focuses on water conservation and water Water Smart Gardens quality issues and actively promotes the Water Smart Gardens and Homes Rebate Scheme. Goulburn Valley and Homes Rebate Scheme Water works with major industries and EPA on cleaner Goulburn Valley Water has promoted the Government’s production programs, water conservation, recycling Water Smart Gardens and Homes Rebate Scheme on the and waste minimisation. Benefits to date include a 17% Corporation’s website and in customer newsletters. The reduction in water use by major industry and 37% reduction table below outlines the number of rebates customers of in sodium discharge over the last three years. Goulburn Valley Water received in 2007/2008.

Distribution system water losses increased from 1,596 Product No. of Rebates megalitres in 2006/2007 to 2,267 megalitres in 2007/2008 after a major decline in the early years. A loss component of 2007/2008 9.8% is the upper end of the generally acceptable range and Dual Flush Toilet ($50) 28 the Corporation is working to reduce this figure. It should be noted that improved metering has increased the confidence Hot Water Recirculation ($150) 1 that the 2007/2008 loss figure is correct. The total non- Permanent Grey Water Tank ($500) 2 revenue water for 2007/2008 was 4,477 megalitres. This is the total raw water diverted less the water delivered via Rainwater Tank ($1,000) 17 customers meters. This figures includes evaporation, raw Rainwater Tank ($900) 21 water storages, as well as treatment plant losses. Rainwater Tank ($500) 8 In 2007/2008 an extensive leak detection investigation was undertaken at Kilmore which is experiencing severe Rainwater Tank ($150) 100 water shortages and is on Stage 4 water restrictions. This Shower Rose ($10) 14 work resulted in only a small number of minor leaks being detected and very small water savings. In other towns Water Saving Products ($30) 61 metering upgrades are continuing to allow continuous

Running Water from the Mountains to the Murray Case Study

GVW2055 a sustainable urban water future

Sustainability Improvement Plan Goal 3 – Minimising the environmental footprint Commitment 3.1 Integrated Water Management To integrate planning and implementation of regional development with water cycle management to achieve effective stewardship of water while

also fulfi lling essential environmental water requirements. 3 star WELS showerwater rating symbol An initiative from the Government’s White Paper Our Water, Our Future is a requirement for all urban water businesses to develop a water supply demand strategy with a 50 year planning horizon. Action 3.1.1 in Goulburn Valley Water’s Sustainability Improvement Plan (SIP) was to incorporate the principles of the SIP in developing the water supply demand strategy. GVW2055 – A Sustainable Urban Water Future is the title of the water supply demand strategy completed by Goulburn Valley Water in May 2007. The development of GVW2055 was undertaken over two years and involved signifi cant effort by a number of consultants and internal staff. The development of GVW2055 involved a broad ranging community engagement program to set the strategic direction for the next 50 years to ensure adequate water availability for the Corporation’s growing communities. GVW2055 takes into account the impact of climate change on the availability and demand for water. The strategy embraces a range of water conservation and supply augmentation initiatives to balance the availability of water with forecast urban demand throughout the Corporation’s region to the Year 2055. The key recommendations include: • Baseline demand management actions (3 Star shower roses, 4 Star washing machines and effi cient air conditioners), savings by industry and reduction in outside residential use, aiming for signifi cant reductions in water demand per person; • The consideration of additional water conservation measures after further community consultation to assess the relevance and community acceptance for their implementation in systems where a supply/ demand imbalance is forecast in the near future; • An enhanced program to reduce the volume of non-revenue water; • Off-stream storage capacity augmentation of the Delatite River (Mansfi eld) water supply system and future augmentation of River diversion capacity; • Construction of a pipeline and ancillary works to supply Broadford and in future Kilmore from the Goulburn River; • Further detailed investigations into options for upgrading the Upper Delatite and Nine Mile Creek water supply systems; • A program to improve streamfl ow measurement, bulk water metering and some domestic metering; and • Close monitoring of the yield and demand in the Steavenson River (Marysville & Buxton) water supply system. GVW2055 was a key reference for the preparation for the Corporation’s 2008-2013 Water Plan, underpinning many of the programs and commitments over the coming fi ve years. It is also proving to be an important Goulburnreference informing the development of the Northern Valley Region Sustainable Water Strategy. Water AGVW2055 Sustainable is a living document and will be revised every fi ve years prior to theBusiness development of each new water plan. Linda Cusworth 3rd Prize, Lois & Duncan Ryan 2nd Prize & James Daniells winner with Allen Gale— General Manager Technical Services

Waterwise Garden Award Corporate Water Consumption Kilmore residents James and Julie Daniells were awarded Water consumption at Goulburn Valley Water’s head office Goulburn Valley Water’s 2007 Waterwise Garden Award. and major works depot in Shepparton decreased from This was the second year that the Kilmore couple had won 3,604 kilolitres in 2006/2007 to 2,577 kilolitres, or 21.8 the award. kilolitres per full time equivalent (FTE) staff member* in 2007/2008. This 29.5% reduction was due to the installation The award specifically targets domestic customers. of low flush cisterns and reduced garden watering. Nominations are independently judged on six criteria, plant selection and grouping, garden design, watering systems, For the Regional Administration Office in Shepparton an garden management, water management and garden annual target of 1,070 kilolitres, or 14.9 kilolitres per (FTE) enjoyment. The first five criteria are essential elements in staff member** has been set. The actual consumption of a waterwise garden. However, it is also important that the 1,130 kilolitres, or 15.75 kilolitres per (FTE) staff member** garden also provides enjoyment, satisfaction and pleasure was a 19% reduction compared to the previous year but still to the residents marginally above the target. 20 Nominations were received from across the region * based on 117.99 FTE staff member including Alexandra, Kilmore, Kyabram, Mansfield, ** based on 71.72 FTE staff members Mooroopna, Seymour, and Shepparton. Second prize went to Duncan and Lois Ryan of Mooroopna and third prize Water Consumption went to Linda Cusworth also of Mooroopna.

Water Consumption & Drought Response Reporting Water Consumption Water consumption in 2007/2008 totalled 22,970 megalitres. This was a 10% decrease compared to the previous year, and the lowest consumption figure for over 10 years. The continuing decline in water consumption is illustrated in the adjacent chart. The reduced consumption is attributed to changing community attitudes and better watering practises as restriction levels remained at Stage 1 for most of the year. The decline in consumption occurred for both residential customers (down 18%), and non- residential (down 10%).

Running Water from the Mountains to the Murray Case Study

Water Conservation Strategy

Goulburn Valley Water developed its initial water conservation strategy in 2004. During the second half of 2007 this strategy was updated to meet the targets set out in the Corporation’s water supply demand strategy GVW2055. The water conservation strategy takes a long term view with a focus on achieving the water demand targets to 2020, and provides both targets and actions that we will take to achieve major reductions in water use between 2008 and 2020. The objectives of the Water Conservation Strategy are to: • Achieve signifi cant water savings in the residential, industrial and commercial sectors • Achieve internal savings at water treatment plants and in distribution systems • Improve water accounting via enhanced metering, reporting and data management • Up-skill the Corporation’s staff to optimise participation and outcomes • Build knowledge, skills and enthusiasm in local trades and turf/grounds professionals • Continue to inspire cultural change in the community towards lower water use.

Targets The Water Conservation Strategy set specifi c water consumption targets to be achieved by 2020, based on a 20% population growth on the 2007/2008 population of 120,00. A summary of these targets is shown below.

Overall Target 31,000 ML per year Residential Target – per capita 336 litres per person per day 15,410 ML per year Commercial Target <10 ML per year 4,440 ML per year Industrial Target 6,100 ML per year Distribution Non- Revenue Water Reduce losses to 8% in large systems

The Water Conservation Strategy also details numerous actions to be completed to achieve the water conservation Goulburntargets. Progress against these actions will be reportedValley in future annual reports, as implementation Water of the Water AConservation Sustainable Strategy commenced on 1 July 2008. Business Water Consumption 2007/2008 Water District Annual Consumption (ML) and Number of Assessments (No.) Average Annual Water Supply Water Supply Other Total Annual Annual Consumption/ Retail Urban Retail Urban Consumption Demand Average Annual Residential Non Residential ## Demand District ML No. ML No. ML ML No. ML % Alexandra, Eildon, 285 1,903 149 285 70 504 2,188 522 96.6% Thornton Barmah 25 155 15 17 8 48 172 59 81.4% Broadford, Waterford 267 1,763 71 114 14 352 1,877 415 84.5% Park (Clonbinane) Cobram, Yarroweyah 569 2,448 1,587 444 4 2160 2,892 2,444 88.4% Colbinabbin 11 77 6 15 5 21 92 27 77.8% Corop 5 33 1 4 1 6 37 27 100.0% Dookie 47 136 19 19 27 92 155 93 98.9% Euroa, Strathbogie, 383 2,029 109 266 171 662 2,295 699 94.7% Violet Town Girgarre 24 112 4 16 0 28 128 29 96.6% Katamatite 25 117 3 19 3 30 136 43 69.8% Katandra West 28 101 6 13 5 39 114 42 92.9% Katunga 20 83 5 16 22 55 99 45 122.2% Kilmore, Wandong 433 3,041 93 268 18 544 3,309 761 71.5% Heathcote Junction Kyabram 709 2,721 232 393 219 1,159 3,114 1,154 100.4% Longwood 25 117 6 14 23 54 131 66 81.8% Mansfield, Bonnie 345 2,410 150 327 88 582 2,737 584 99.7% Doon, Upper Delatite, Merrijig 22 Marysville, Buxton 89 676 66 104 41 196 780 242 81.0% Merrigum 52 202 9 31 0 59 233 84 70.2% Mooroopna 824 3,351 850 238 52 1,725 3,589 2,029 85.0% Murchison 102 388 48 58 11 162 446 167 97.0% Nagambie, Baxters 179 837 285 121 54 518 958 507 102.2% Road, Kirwans Bridge Nathalia 171 736 81 121 51 303 857 338 89.6% Numurkah, Wunghnu 427 2,041 141 308 89 651 2,349 798 81.6% Picola 11 64 1 9 2 15 73 18 83.3% Pyalong 26 150 3 18 3 32 168 36 88.9% Rushworth 148 559 56 91 52 256 650 277 92.4% Seymour, Avenel, 834 3,583 369 505 265 # 1,472 4088 1,480 82.4% Mangalore, Tallarook Shepparton, Congupna, 4,564 15,702 2,841 2,228 929 8,334 17,930 9,308 89.5% Tallygaroopna Stanhope 49 236 11 62 12 72 298 79 91.1% Strathmerton• 49 235 225 32 30 304 267 262 116.0% Tatura 447 1,669 1,247 207 141 1,834 1,876 1,861 98.5% Tongala 146 552 475 87 45 665 639 730 91.1% Toolamba 42 108 2 5 4 48 113 56 87.3% Woods Point 10 61 1 8 12 23 69 20 115.0% Yea, Molesworth 128 685 47 126 43 217 811 216 100.5% Total 11,499 49,081 9,214 6,589 2,267 22,970 55,670 25,496 90.1% • Supply to Kraft at Strathmerton commenced in 2007. Average demand therefore based only on 2006/2007 demand for system. # Includes 252 megalitres tankering from Seymour to Broadford as drought response measure. * All values are rounded to nearest whole number. ## Average Annual Demand based on a 3 year average.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

(L-R) Catherine Keady, Environmental Officer Murray Goulburn Cooperative & Brady Schmidt GVW Manager Major Customers

Major Water Consumers Major Customers by Volume Range 17 customers of Goulburn Valley Water used over 50 megalitres (50,000 kilolitres) at any one location in Volume Range – ML per year No. Customers 2007/2008. Most of these customers, who are shown ≥ 50 ML and < 100 ML 4 in the table below, are major industries processing agricultural produce grown in the area. ≥ 100 ML and < 200 ML 6 ≥ 200 ML and < 300 ML 2 The Corporation has been assisting major industries since 2004 to develop cleaner production strategies that focus ≥ 300 ML and l< 400 ML 0 on reducing water use and trade waste discharges. This ≥ 400 ML and < 500 ML 0 has been successful in reducing water consumption, or confirming in some cases that an industry is operating ≥ 500 ML and < 750 ML 2 at ‘best practice’ levels. This program is to continue in ≥ 750 ML and < 1,000 ML 2 2008/2009. > 1,000 ML 1 Total No. Customers 17 23 Details of Major Customers and their participation in Water Conservation Programs/ Cleaner Production Program Company Location Details Campbells Soups Shepparton Fully compliant with waterMAP program. Cobram Abattoirs Cobram Fully compliant with waterMAP program. Energy Business Steam Plant Cobram Fully compliant with waterMAP program. Gathercole’s Abattoirs Tatura Fully compliant with waterMAP program. Goulburn Valley Health Shepparton Undertook a full water audit during 2007/2008. Also fully compliant with waterMAP program. HW Greenham & Sons Tongala Fully compliant with waterMAP program. Kraft Strathmerton Fully compliant with waterMAP program. Murray Goulburn Cooperative Cobram Cleaner Production project underway and due for completion in August 2008. Fully compliant with waterMAP program. Murray Goulburn Nutritionals Cobram Fully compliant with waterMAP program. Mushroom Exchange Nagambie Fully compliant with waterMAP program. Nestle Tongala Fully compliant with waterMAP program. Riverland Oilseed Numurkah A number of initiatives undertaken in 2007/2008 related to water and trade waste reductions. Also fully compliant with waterMAP program. SPC - Ardmona Mooroopna Fully compliant with waterMAP program. SPC – Ardmona Shepparton Fully compliant with waterMAP program. Tatura Milk Industries Tatura Fully compliant with waterMAP program. Testarossa Tatura Fully compliant with waterMAP program. Unilever Tatura Cleaner Production project completed on-site in 2007/2008. Also fully compliant with waterMAP program.

Water and the Environment 24

WaterMAP Water Restrictions The Victorian government’s waterMAP (water management 2007/2008 saw an unprecedented low water allocation action plan) program was also rolled out in 2007/2008. on the Murray System and another year of below full water This has required the development and implementation of a allocations on the Goulburn System. new Permanent Water Savings Plan (PWSP) to replace the existing Permanent Water Conservation By-Law No. 508. The initial zero allocation for the Murray system was This change saw the inclusion of the existing permanent anticipated and in the last quarter of 2006/2007 the water savings rules and special waterMAP requirements Corporation implemented drought contingency plans into the new PWSP. for these systems. Effective from 1 July 2007 all towns supplied from regulated Goulburn and Murray systems The trade waste team managed the implementation of the were on Stage 4 water restrictions. waterMAP program as it regularly deals with the larger non-residential water users that the program targets. The Unregulated Streams program requires all non-residential water users who use At the direction of the then Minister for Water, Environment more than 10 megalitres of water per year to submit a water & Climate Change all other towns within the Murray-Darling management action plan. The plan must detail specific basin supplied from surface water sources and not on Stage projects that will either reduce their water use or improve 3 or Stage 4 water restrictions were required to move to a their water use efficiency. Customers are then encouraged minimum of Stage 3 water restrictions on 1 July 2007. to develop and track their own key performance indicator Towns involved included Mansfield, Merrijig, Sawmill for water use under the waterMAP program. Settlement, Euroa, Violet Town, Longwood, Marysville, Buxton, The roll out of the program was successful with 100% of Strathbogie, Pyalong, Woods Point and Yea. Stage 3 water businesses compliant as at 30 June 2008. The next phases restrictions remained in force until 7 September 2007 when of the program will include implementation of plans by water restrictions were eased to Stage 2. A further easing of customers and annual reporting on their progress. water restrictions to Stage 1 occurred on 1 October 2007.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Murray System Goulburn Valley Water’s allocation on the Murray System water from the previous year allowed the easing of water started at a zero allocation on 1 July 2007 and increased restrictions on the Goulburn System to Stage 2 on 7 over the year to a final allocation of 43%. Towns supplied September 2007 and Stage 1 water restrictions were from the Murray system include; Barmah, Cobram, implemented on 20 October 2007. Katamatite, Nathalia, Numurkah, Picola, Strathmerton, Stage 1 water restrictions remained in place for the Wunghnu, & Yarroweyah. These towns started the year on remainder of 2007/2008 for the unregulated, Murray and Stage 4 water restrictions. Goulburn systems. Goulburn Valley Water was able to grant a general exemption for these towns effective 1 October 2007 when Sunday Creek System the Corporation transferred water from the Goulburn The Sunday Creek system supplies the towns of Broadford, system to supplement Murray System supplies. This Clonbinane (Waterford Park), Kilmore, and Wandong- general exemption allowed garden watering using a hand- Heathcote Junction. These towns have been on Stage 4 held hose for one hour twice a week. water restrictions since 1 February 2007. On 14 December 2007 water restrictions were eased to Trucking of water from Seymour to Broadford ceased Stage 1 and this level of water restrictions remained in on 20 July before recommencing on 13 November after place for the rest of 2007/2008. The additional water another very dry spring. The tankering continues at 30 June requirements were met by transferring surplus water 2008. In total 252,000 kilolitres of water was trucked from allocations from the Goulburn System. Seymour to Broadford for the 12 month period at a cost in excess of $2.5 million. Goulburn System On 30 August 2007 the Corporation started pumping Goulburn Valley Water’s annual water allocation on the water from the Melbourne supply system at Wallan into the Goulburn System is based on inflows to Lake Eildon over Kilmore supply network. A volume of 305 megalitres had the preceding 24 month period. In anticipation of another been purchased from Yarra Valley Water and pumped into record low inflow year the Corporation introduced Stage 4 the Kilmore system at 30 June 2008. water restrictions from 1 July 2007. Both the trucking of water and pumping from the Fortunately, inflows into Lake Eildon during winter 2007 Melbourne supply system continued into 2008/2009. were significantly higher than in 2006. The combination Full details of systems and water restriction stages are of an improved seasonal allocation and the carryover outlined in the table below.

2007/2008 Water Restrictions 25

Increasing Water Restrictions Decreasing Water Restrictions Town Stage 1 Stage 2 Stage 3 Stage 4 GE Stage 4 Stage 3 Stage 2 Stage 1 Goulburn System 1-Jul-07 7-Sep-07 20-Oct-07 Murray System 1-Jul-07 1-Oct-07 14-Dec-07 Sunday Creek 1-Feb-07 System Unregulated systems Brewery Creek 16-May-07 7-Sep-07 1-Oct-07 Woods Point Delatite River, 16-May-07 7-Sep-07 1-Oct-07 Mansfield, Merrijig, Sawmill Settlement Katunga, Groundwater Mollison’s Creek, 1-Jul-07 7-Sep-07 1-Oct-07 Pyalong, Nine Mile Creek 4-Apr-07 7-Sep-07 1-Oct-07 Longwood Rubicon River 1-Jul-07 7-Sep-07 1-Oct-07 Thornton, Seven Creeks, 1-Jun-07 7-Sep-07 1-Oct-07 Euroa, Violet Town, Strathbogie Steavenson River, 1-Jul-07 7-Sep-07 1-Oct-07 Marysville, Buxton Yea River, Yea 1-Jul-07 7-Sep-07 1-Oct-07

Water and the Environment Bulk Water Entitlements Supply System Source Bulk Bulk Entitlement Entitlement Bulk Allocation 2007/2008 Net Carry Over 2006/2007 Water Raw Volume Taken Transfers Total Carry Over 2007/2008 ML ML ML ML ML ML Alexandra Goulburn River 916 787 129 345 -540 31 Barmah Murray River 82 35 14 46 20 23 Bonnie Doon Lake Eildon 112 96 16 59 -45 8 Broadford/ Kilmore/ Waterford Sunday Creek 2,238 2238 0 440 0 0 Park (Clonbinane) Wandong/ Heathcote Junction Buxton Steavenson River1101100000 Cobram Murray River 3,525 1,516 333 2,692 2,000 1,156 Colbinabbin Channel 89 77 12 34 -55 0 Corop Channel 44 38 6 11 -30 3 Dookie Channel 160 137 23 90 -65 5 Eildon Lake Eildon 480 412 45 131 -315 11 Euroa Seven Creeks and Mt 1,990 1,990 0 676 0 0 Hutt Creek Girgarre Channel 100 86 14 46 -52 2 Katamatite Channel 84 36 18 37 0 17 Katandra West Channel 64 55 3 40 -16 2 26 Kyabram Channel 2,000 1,718 282 1,191 -808 1 Longwood Nine Mile Creek 120 120 0 52 0 0 Mansfield Delatite River 1,300 1,300 0 591 0 0 Marysville Steavenson River 462 462 0 330 0 0 Mooroopna Goulburn River 300 258 42 81 -210 9 Murchison Goulburn River 350 301 47 184 -158 6 Nagambie/ Kirwans Bridge/ Goulburn River 825 709 79 541 -245 2 Goulburn Weir Nathalia Broken Creek 652 280 181 287 85 259 Numurkah/Wunghnu Broken Creek 1,206 519 160 716 405 368 Picola Channel 44 19 13 20 0 12 Pyalong Mollisons Creek757505100 Rushworth Waranga Basin 530 455 75 301 -225 4 Seymour/Avenel/Tallarook Goulburn River 5,340 4,587 753 1,680 -3,654 6 Shepparton/Mooroopna/ Goulburn River 17,970 15,436 1,238 11,265 -5,314 96 Tallygaroopna/Toolamba Stanhope Channel 200 172 28 88 -105 7 Tatura Channel 2,600 2,233 367 1,979 -620 1 Thornton Rubicon River 120 120 0 46 0 0 Tongala Channel 1,404 1,206 198 830 -574 0 Upper Delatite Delatite River 235 235 0 60 0 0 Violet Town Honeysuckle Creek20200000 Woods Point Brewery Creek 212102500 Yea Yea River 438438022700 Total 46,206 38,297 4,076 25,190 -10,521 2,029

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Notes to Bulk Entitlements Table: 11 Nine Mile Creek Reservoir held 22 megalitres, which is the modifi ed full operating level, on both 1 July 2007 and 1. On 30 June 2007 the Acting Minister for Water, 30 June 2008. Environment and Climate Change temporarily qualifi ed the Corporation’s rights to water on the Murray and 12 The total volume diverted from the Delatite River for Goulburn Water Systems under Section 33AAA(1) of the Mansfi eld over the two year period ending 30 June 2008 was 1,103 megalitres. This was below the bulk entitlement Water Act. The qualifi cation allowed the Corporation to: limit of 2,600 megalitres. • access any water carried over from the 2006/2007 season; and Water Quality • where allocations on the Murray system were less than 20%, the Corporation’s entitlement was Goulburn Valley Water achieved a high level of performance restricted to 3,570 megalitres to meet Stage 4 water against the requirements of the Safe Drinking Water Act during the year. restrictions demands. All drinking water systems complied fully with the regulated The qualifi cation permitted water to be taken only for standards for E.coli, chloroacetic acid, dichloroacetic acid domestic and stock purposes, and was used by Goulburn and trihalomethanes. Valley Water to access carry over water on the Murray system. Of the 2,882 reticulation bacteriological samples taken 2 Bulk Entitlements on both the Goulburn and Murray in 2007/2008, only one sample contained E.coli. This systems were restricted in 2007/2008. Murray system occurred in the Trawool locality where a sample taken in allocations were limited to 43%, while the Corporation’s April 2008 contained one E.coli organism. As there was no Goulburn allocation, which is based on infl ows into Lake break in disinfection it is suspected that this failure was Eildon over the preceding 24 months, was set at 85.9%. due to a sampling problem. 3 The Corporation transferred water from its Goulburn All drinking water systems complied with the turbidity allocations to Murray system towns to reduce water standard for the 2007/2008 reporting period. However, restriction levels. This involved the temporary transfer of the Eildon locality experienced high turbidity levels during 20 megalitres from Tatura to Barmah, 2,000 megalitres July 2007 due to heavy rainfall in the catchment and from Shepparton to Cobram, 85 megalitres to Nathalia the unprecedented low level in Lake Eildon. Temporary from Bonnie Doon (45 megalitres) and Nagambie (40 treatment facilities were rapidly commissioned to reduce megalitres), and 405 megalitres to Numurkah from the turbidity in the water supply. Dookie (65 megalitres), Kyabram (130 megalitres), A small number of systems experienced non-compliance Seymour (20 megalitres), Shepparton (50 megalitres) and against the trichloroacetic acid and aluminium standards. Tongala (140 megalitres). The Corporation has formalised undertakings with the 4 The volume of water taken for each urban system is Department of Human Services for some of these systems. shown in the table together with carry over and transfer The undertakings provide a commitment to medium to long volumes. A negative value in the ‘Total Transfers’ column term improvements to these systems. indicates a temporary transfer from the system; a positive Bridge-Soft Information System value indicates a temporary transfer into the system. The The Bridge-Soft information system is a database and Corporation did not seek any credit for recycled water information system designed to manage water quality test returned to the Goulburn River. No permanent transfers results, operational data for water treatment plants, and of water entitlements or amendment to supply or other other technical data such as wastewater and trade waste 27 conditions occurred during 2007/2008. test results. The system was developed by a partnering 5 The Corporation was able to support other urban approach between Goulburn Valley Water and Bridge-Soft, corporations and irrigators by the trading of 9,417 a software developer from the United States. The Bridge- megalitres via the water market in 2007/2008. Soft information system is now being utilised by several other water businesses in Australia and America. It is also 6 In a letter dated 2 June 2008 to the Minister for Water, the being further developed to increase its functionality for Corporation sought approval for the permanent transfer of Goulburn Valley Water. nine megalitres of water from the Eildon Bulk Entitlement to the Woods Point Bulk Entitlement. This transfer was The Bridge-Soft information system provides a centralised not approved by 30 June 2008 and consequently the database that features: Corporation exceeded its Woods Point Bulk Entitlement • A highly intuitive and user-friendly data entry interface; by four megalitres. The Corporation is continuing to seek • A web-based reporting and ad-hoc data querying module; and approval for a permanent transfer of this bulk entitlement • A non-conformance tracking module. to ensure future compliance with the bulk entitlement limit. The new system is delivering major efficiencies in terms of Excluding this exception, the Corporation complied fully with streamlined data entry and retrieval, and eliminating the bulk entitlement limits and other conditions in 2007/2008. double-handling of data. It is enabling rapid reporting of 7 All Corporation diversion points are metered and results to customers and stakeholders, and will soon be accord with metering plans approved by the Minister. used to provide up-to-date information on water quality No changes to these metering plans occurred in results on our website. The Bridge-Soft information system 2007/2008. Environmental and monitoring plans, where is providing Goulburn Valley Water with an extremely required, also remained unchanged. powerful and user-friendly mechanism for managing 8 The security of supplies under bulk entitlements was its technical data and helps to meet regulatory, quality reviewed in 2006/2007 as part of the Corporation’s 50 assurance and service responsibilities. year water supply demand strategy. No further reviews or New NATA Testing Laboratory changes have occurred since this time. In September 2007 Goulburn Valley Water awarded its new 9 In 2007/2008 the Corporation purchased 305 megalitres laboratory contract to SGS Environmental. This contract from Yarra Valley Water. This emergency water supply includes independent testing of all Goulburn Valley Water’s involved transfers from the three Melbourne retail drinking water, wastewater and trade waste samples. As companies’ bulk entitlements, and was approved by the part of the contract, SGS Environmental has established a Minister for Water, Environment and Climate Change on new laboratory in Shepparton. This laboratory completed 26 June 2007. its NATA accreditation process in June 2008. 10 The level in Sunday Creek Reservoir was the same on Full details of Goulburn Valley Water’s water quality both 1 July 2007 and 30 June 2008 at 10.5 metres. At this performance will be available in the annual water quality level the storage held 155 megalitres. report which will be published in late 2008.

Water and the Environment Case Study

Water Quality Corporate Objective Lachlan McGregor Project Water and the Environment Manager—Kilmore Storage Tank

Strategic Objective 1.2 Deliver quality drinking water which complies with Australian Drinking Water Guidelines and DHS requirements.

During 2007/2008 Goulburn Valley Water has undertaken a number of projects to deliver quality drinking water to its customers. The projects included completed. The 25 kilometre pipeline will be connected new water supply pipelines, a new storage tank and into the existing clear water storage at Eildon and new water treatment plants. Rubicon Village. The purpose of the project is to improve the security of safe drinking water for the Upper Goulburn Regional Water Supply Project communities of Eildon and Thornton. The detail design This involves a $10 million investment for the of the pipeline is nearing completion. Construction of provision of high quality drinking water to Alexandra, the pipeline is scheduled to commence in late 2008. Eildon and Thornton. It comprises a new water Small Town Water Filtration Program treatment plant at Alexandra, a pump station and a pipeline from Alexandra to Thornton and Eildon. The Corporation’s Small Town Water Filtration Program comprises of the provision of fi ltration This project will provide the upper Goulburn region plants at Girgarre, along with Colbinabbin, Dookie, with a secure high quality water supply for many Katamatite, Katandra West and Stanhope, to bring the decades. standard of water quality in these small communities An “Assessment of Catchment Risks to Goulburn Valley up to the Australian Drinking Water Guidelines. Water Potable Water Supplies” identifi ed that treatment The Girgarre Water Treatment Plant fi ltration system defi ciencies at Alexandra were a signifi cant hazard which is to be completed in 2008/2009 then trialled for at required a new water treatment plant to address the least one year prior to rollout of the other Filtration problem. Program sites, currently programmed to commence in The Corporation also investigated the possibility 2010/2011. ‘Roll out’ of the other small town systems is of supplying Thornton and Eildon, in addition to dependent on a successful trial at the Girgarre site. Alexandra, with potable water from a new water Kilmore Storage Tank treatment plant at Alexandra. Based on a Triple Bottom Line assessment the option of upgrading the In March 2008 a new 16 megalitre covered storage Alexandra water treatment plant to a 6.7 megalitre per tank at Kilmore was completed. The new concrete tank day plant supplying Alexandra, Thornton and Eildon is some 53 metres in diameter and 8 metres high. The and construction of a transfer pipeline from Alexandra tank construction included signifi cant foundation to Eildon was adopted by the Board. works to ensure that the site remains stable. A new chlorinator was also constructed to improve Design and construction of the water treatment plant chlorination control. at Alexandra was completed in February 2008 at a cost of $3.1 million. The treatment plant is ready to The benefi ts to the community include improved water Goulburndeliver treated water to the townships of Eildon andValley quality and security of supply, Water with the storage now AThornton Sustainable when the transfer pipeline from Alexandra is closed to prevent Business contamination. Goulburn Valley Water 2007 / 2008 Annual Report

recognises this and in 2004 set a target of 25% reduction in salt discharged by major customers by June 2008 which Confluence—Goulburn has been achieved and exceeded and outlined in Case & Broken River Study on Cleaner Production. Another strategy target is increasing water flows. Goulburn Valley Water has contributed to increased water flows in the Goulburn Broken catchment by our water conservation program, in which we have reduced our water consumption by 26% over the last 7 years. All water saved by this program is available within the catchment, contributing to the full range of community values. Victorian River In addition to these specific programs, Goulburn Valley Water contributes to the streamflow management Health Strategy strategies being developed by the Goulburn Broken The Victorian River Health Strategy consolidates the Catchment Management Authority by participation in Government’s long-term plan for the management and steering committees and other groups involved with protection of Victoria’s rivers. It provides the framework for catchment planning. integrating policy direction into government and community programs as a means to support sustainable river systems. Water Monitoring in the Goulburn Valley Water is committed to the strategy and Goulburn Broken Catchment has embraced the integrated approach to catchment Goulburn Broken Waterwatch promotes water quality management. The Corporation has undertaken many monitoring in schools and the general community as a way initiatives and invested substantial capital to upgrade of raising community awareness of water quality issues. its wastewater management facilities to improve water quality. The table below outlines the nutrient reductions With the implementation of the Data Confidence Plan, achieved by Goulburn Valley Water between 1994/1995 Waterwatch community data is gaining greater credibility and 2007/2008. within the scientific community. Waterwatch community data has assisted in the preparation of the draft Broken Nutrient 1994/1995 2007/2008 River and Broken Creek Ecological Risk Assessment Report. Actual (tonnes) Actual (tonnes) Parameters that are monitored in the Goulburn and Broken Total Phosphorus 43 0.26 Rivers and tributaries include:

Total Nitrogen 160 7.16 • Turbidity 29 Goulburn Valley Water has committed significant resources • pH over many years to monitoring the biodiversity and water • Electrical Conductivity quality of the Goulburn River to ensure that the return of recycled water is not adversely impacting on the river • Total Phosphorus environment. During 2007/2008 the Corporation engaged • Temperature a consultant to evaluate potential impacts on beneficial uses of the river relating to return of recycled water. This • Dissolved Oxygen project is designed to meet EPA Publication “1209 Draft • E.coli and Chemical Oxygen Demand (where relevant). Guidelines for Risk Assessment of Wastewater Discharges to Waterways”. The key objectives of the project are to engage In 2007/2008, there were more than 150 trained community stakeholders to determine the extent of mixing community monitors who collected water quality data zones, identify the affected beneficial uses and determine from 374 sites on the Goulburn and Broken Rivers and the impacts on values. tributaries. Many sites were monitored up to 12 or more times during the year. The Corporation’s overall objective is to improve understanding of the environmental impacts associated with its activities and initiate strategies to complement the Victorian River Health Strategy. The beneficial use evaluation project is expected to be completed in 2008/2009. Regional Catchment Strategy Goulburn Valley Water is a key contributor to the Regional Catchment Strategy. The most significant areas where the Corporation contributes to the Goulburn Broken Catchment Management Authority Regional Catchment Strategy Plan are in water quality and water flows. The 2003 strategy set a target of 80% reduction of phosphorous from wastewater management facilities by 2016, which the Corporation has Volunteer Rob Hayes undertaking Waterwatch training succeeded and gone far beyond this target. Salinity is also a major threat to the catchment. Goulburn Valley Water

Water and the Environment Other programs undertaken by the Waterwatch team include; Community Stream Sampling, Drainwatch, Saltwatch and the Stormwater program. The AshWatch program, introduced in 2007 to monitor the effects of the bushfires in North East Victoria in 2006, will continue in 2008/2009. Students from St Mary’s The Waterwatch Program receives College in Seymour preparing strong support from Goulburn Valley for the tree planting day. Water, Goulburn-Broken Catchment Management Authority, Goulburn- Murray Water, City of Greater Shepparton, Moira Shire, Mitchell Shire and the Goulburn Murray Landcare Network. Victorian Biodiversity Environmental Strategy Goulburn Valley Water’s Biodiversity Action Plan has Management System been developed to complement the intentions of the In 2007/2008, Goulburn Valley Water extended the scope Victorian Biodiversity Strategy. Goulburn Valley Water owns considerable land area that supports a wide range of its Environmental Management System to cover all of broad ecosystems. The Corporation is acutely aware areas of its business. The expanded scope now includes that its actions can contribute to the overall objectives of all water treatment plants, realising a long term goal of natural resource management. The key focus of the action achieving a “whole of business” approach to environmental plan has involved planting of over 5,000 indigenous trees management. at wastewater management facilities. The intentions of this The extended scope of the Environmental Management initiative are to restore natural forest vegetation, protect System will allow the Corporation to substantially broaden and enhance wildlife habitats and to reverse degradation of its ability to identify and manage its interactions with the natural environment. the environment. The “whole of business” approach to Goulburn Valley Water’s Biodiversity Action Plan environmental management complement the Corporation’s incorporates a range of improvement initiatives and Sustainability Improvement Plan, facilitating significant provides training to staff to enable them to better gains in resource efficiencies and enhancement of the understand and protect the rich and diverse flora and business’ sustainability culture. fauna at Goulburn Valley Water sites. Staff are provided with extensive training in biodiversity and are encouraged 30 The scope of the Corporation’s Environmental Management to play an active part in conservation and management of System and Occupational Health and Safety Systems are biodiversity values in the region. now integrated. Combined Environmental Management System and Occupational Health and Safety audits The following actions have been achieved by Goulburn commenced in June 2008. Valley Water during 2007/2008.

Action Target Progress 2007/2008 Increase the number To plant only indigenous species when Indigenous trees have been planted at the following of indigenous plants at conducting tree planting on Goulburn Wastewater Management Facilities (WMF’s); Goulburn Valley Water Valley Water land. 3,700 trees planted at Tatura WMF. sites. 1,000 trees planted at Seymour WMF. 740 trees planted at Shepparton WMF. 360 trees planted at Kyabram WMF. 200 trees planted at Tongala WMF. Goulburn Valley Water to Goulburn Valley Water to organise a tree A community tree planting day took place at conduct a Community planting day for public education and Seymour WMF on the 7 August 2007. Students Tree Planting day. to enhance biodiversity at one of the from St Mary’s College in Seymour in conjunction Corporation’s Wastewater Management with Corporation staff planted approximately 1,000 Facilities. trees. Conservation Covenant The Corporation to audit the The Kilmore Conservation Covenant was audited Audit at Kilmore Reuse Conservation Covenant against the 28 May 2008. Audit findings confirmed significant Site. Management Plan regeneration all over the site. Weed control has been effective and there is an abundance of habitat for ground dwelling fauna. Regeneration Fencing Fence out the natural drainage area to Fencing completed. Mansfield Wastewater protect flora and fauna values at the site Management Facility

Running Water from the Mountains to the Murray Case Study

Greenhouse Action Plan

In November 2007 Goulburn Valley Water published its Greenhouse Action Plan. The plan was developed in accordance with the Victorian water industry Greenhouse Emissions Reduction Framework developed in late 2006. This Framework was developed to respond proactively to the challenges of climate change that all water businesses will face. The broad objectives of the Corporation’s Greenhouse Action Plan are to: • clearly identify and report greenhouse gas emissions; • reduce emissions through water conservation initiatives, improved methane management, increased energy effi ciency and other operational improvements; • map a pathway to carbon neutrality; • increase the generation and use of renewable energy ; and • embed sustainability into the Corporation’s culture. Goulburn Valley Water has achieved a signifi cant 69% reduction in greenhouse gas emissions since its baseline year of 2001/2002. This reduction is primarily the result of reduced organic loads from major customers and ongoing improvements in methane management at the Tatura, Shepparton and Mooroopna wastewater management facilities. Methane produced from the anaerobic digestion of organic matter that was previously released to the atmosphere is now either co-generated into electricity or fl ared. The Federal Government introduced mandatory reporting of greenhouse gas emissions under the National Greenhouse and Energy Reporting System. Goulburn Valley Water is currently confi rming whether it is required to report its emissions as part of this system, with the fi rst public reports to cover the 2008/2009 period. However, the Corporation has committed to public reporting via the Greenhouse Challenge Plus program. The Greenhouse Action Plan outlines the Corporation’s actions to achieve a reduction in energy use and greenhouse gas emissions to 2020. The Action Plan details the following targets for reducing energy use and greenhouse gas emissions over this period.

Action Target Year

Emissions 35,300 tonne CO2-e 2020 Renewable Energy – from biogas 5,000 megawatts 2010 Carbon Neutrality Start purchasing offsets 2014 Full carbon neutrality 2020

GreenPower Goulburn Valley Water made a commitment in its Greenhouse Action Plan to purchase 100% Green Power for its Regional Administration Centre in Shepparton from 2008. Under the government-accredited GreenPower scheme the Corporation’s electricity provider sources the electricity used by the offi ce from renewable sources, such as solar, wind and hydro.

Greenhouse Challenge Plus program In late 2007 the Corporation joined the Greenhouse Challenge Plus program, which is managed by the Australian GoulburnGreenhouse Offi ce (AGO). This is another commitment Valley in the Greenhouse Action Plan. The GreenhouseWater Challenge APlus programSustainable is a voluntary program for organisations who wish to publically Business report their greenhouse gas emissions. Goulburn Valley Water’s Environmental Officer Belinda Streader with Third Party User Robin Steers

Greenhouse Gas Emissions Wastewater Management and Energy Management Goulburn Valley Water operates 26 wastewater management facilities across the region. The facilities Goulburn Valley Water’s greenhouse gas emissions, vary, but predominately utilise lagoon based treatment standardised as equivalent tonnes of carbon dioxide are processes capable of treating recycled water to a summarised in the table. In 2007/2008 emissions were secondary standard (EPA Class C) suitable for irrigation 29,423 tonnes CO2-e compared with 35,587 tonnes CO2-e in 2006/2007. This is significantly less than the estimated reuse. Three of the facilities treat recycled water to a 91,000 tonnes CO emitted in 2001/2002. tertiary standard (EPA fit for purpose) enabling controlled 2-e discharges to waterways at designated times of the year. 32 Reductions are primarily the result of ongoing improvements in methane management at the Tatura, Shepparton and Goulburn Valley Water on average uses 80% of its produced Mooroopna wastewater management facilities. Methane volume of recycled water for irrigated agriculture or for that was previously released to the atmosphere is now recreation facilities. The dry conditions in recent years either cogenerated into electricity or flared. have highlighted the value of this product, and neighbouring property owners, councils and community groups are now An energy management program commenced in actively seeking supplies of recycled water. This shows 2007/2008 to further reduce electricity and fuel use. that recycled water is now being recognised as a valuable Detailed monitoring of power consumption at the resource by the farming and urban communities in the Shepparton water treatment facility and the wastewater Goulburn Valley region. management facility was completed in preparation for an intensive management initiative. Goulburn Valley Water is continuously looking for new opportunities to beneficially use recycled water and biosolids Activity Greenhouse Gases from its wastewater management facilities across the region.

Emitted (tCO2-e) 2006/2007 2007/2008 Recycled Water Reuse Water treatment 14,652 12,713 In 2007/2008 a total of 6,400 megalitres or 93% of recycled water from Goulburn Valley Water’s wastewater Sewage treatment 18,599 15,865 management facilities was reused for irrigation. This Transport 1,317 1,125 was well above the target of 75% and 7% higher than last year’s high of 86% due to the lack of rainfall which reduced Offices 452 437 winter inflows and allowed irrigation to occur to meet Livestock 1,314 0* plant water needs over nearly the whole year. Urban water Subtotal 36,334 30,140 restrictions also led to reduced inflows to some wastewater management facilities. Tree offsets -747 -717 In addition to the Corporation’s 17 sites that are irrigated Carbon credit offsets 0 0 with recycled water, Goulburn Valley Water currently Total 35,587 29,423 supplies seven second party (leasees of Goulburn Valley water properties) properties with recycled water for fodder (tCO2-e = tonnes of carbon dioxide equivalent) • Fugitive emissions from livestock has been excluded production, and 19 third party reuse customers, including in 2007/2008 in keeping with the Carbon Pollution five golf courses. The Corporation grows pasture for sheep Reduction Scheme Green Paper. and cattle, and has extensive irrigated tree plantations.

Running Water from the Mountains to the Murray Case Study

Valuable Resources Sustainability Improvement Plan

Goal 3 – Minimising the Launch of Cogeneration Plant at Tatura (LR Laurie Gleeson, The Hon. Gavin Jennings, Minister for Environment and environmental footprint Climate Change, The Hon. Peter Batchelor, Minister for Energy & Resources and Tony Sennitt MD—Diamond Energy)

Commitment 3.1 from Spring 2008. The recycled water will replace water Integrated Water Management that was previously taken from the Steavenson River. To integrate planning and implementation of regional Biogas development with water cycle management to achieve In mid 2005 Goulburn Valley Water entered into an effective stewardship of water while also fulfi lling agreement with Diamond Energy to sell the methane essential environmental water requirements. gas produced at the Corporation’s High Rate Anaerobic Action 3.1.6 in Goulburn Valley Water’s Sustainability Lagoons at Tatura, Shepparton and Mooroopna. Improvement Plan is to minimise the impact of waste products with the aim of converting to resources wherever Tatura Biogas Generation Plant practicable. The Corporation undertakes this in three ways. Firstly recycled water is reused by the Corporation and In March 2006 Diamond Energy commenced construction third parties such as farmers and golf courses, secondly of a Biogas driven electricity generation plant at the biosolids are used for soil conditioning or capping of Tatura wastewater management facility. Commissioning landfi ll and thirdly the Corporation sells its methane gas to of the cogeneration unit commenced January 2007 and Diamond Energy who then converts it to green power. commercial operation commenced in April 2007. Recycled Water The Minister for Environment, the Hon. Gavin Goulburn Valley Water reused approximately 93% Jennings and the Minister for Energy & Resources, of recycled water in 2007/2008 and on average the Hon. Peter Batchelor offi cially commissioned the approximately 80% is used each year. With the Tatura Cogeneration Plant in November 2007. continuing dry conditions the real value in recycled The amount of green energy Diamond Energy is water is now being recognised by the farming and creating from Tatura is almost 4,000 megawatts per urban communities in the Goulburn Valley region. year. This equates to around 20% of the electricity that The Euroa Golf Club used recycled water for the fi rst Goulburn Valley Water uses at all its facilities and time in 2007/2008 to irrigate its golf course. The offi ces across its region. The reduction in greenhouse recycled water was a welcome addition as it secures the emissions is equivalent to taking around 6,000 cars off future water requirements for the course. The recycled the road each year or supplying enough power for 900 water supplements water that was previously taken “average” homes. from a dam that in recent years has provided only Diamond Energy and its retail electricity arm approximately one quarter of the course’s water needs. Commercial Green has been accredited by Green This year recycled water was used for irrigation Power as an approved green electricity producer. at Violet Town and Avenel for the fi rst time. Both schemes have centre pivot irrigators, each covering Shepparton Biogas Generation Plant approximately 10 hectares. Both sites reuse Planning for the Shepparton cogeneration unit approximately 20 megalitres of recycled water commenced in January 2008 with agreements being annually to grow fodder for cattle and sheep. The Violet signed in June. It is anticipated that construction will Town irrigation system is owned by Goulburn Valley start in August 2008 and that full commissioning of Water while the Avenel system has been developed by the plant will occur in early 2009. The Shepparton a neighbouring third party customer on his own land. plant will adopt the same technology used in Tatura GoulburnMarysville and District Community Golf and Bowls ValleyClub and is expected to produce 5,000Water megawatts of Ahas recentlySustainable signed an agreement to use recycled water electricity per annum.Business Spreading of biosolids at the Numurkah WMF

Biosolids improvement. The number of spills has decreased slightly this financial year compared with 2006/2007. The majority Each year approximately 3,000 dry tonnes of biosolids of spills this year were caused by blockages from tree accumulates at Goulburn Valley Water’s 26 wastewater roots. Preventative maintenance works have focussed management facilities. This occurs mainly within treatment on tree root foaming, jetting and pipe relining in order to lagoons. Removal and drying of biosolids at any particular reduce sewer blockages and spills. facility occurs on average every 15 years. The following table compares the number of spills over the In line with the Corporation’s Biosolids Management previous fives years. Strategy in 2008, the Corporation reused approximately 3,000 cubic metres of dried biosolids from the Numurkah Spill Type 34 wastewater management facility (WMF) to improve soil fertility on the Corporation’s property. The biosolids contain organic material and trace elements that are ideal

for conditioning the soil and improving pasture production 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 from the site. Priority 2 (Minor) 62 62 44 51 46 Next year biosolids are planned to be used to rehabilitate Priority 1 (Major) 06744 landfill sites at Kyabram and Kialla. At Broadford a neighbouring farmer is seeking biosolids for fertility Total 62 68 51 55 50 improvement on his farm. Biosolids are also expected to be used to assist grass growth on batters of the wastewater Note the above figures are based on ESC definitions. They storage lagoons at Mansfield and Nathalia. do not include any spills at reuse sites and at wastewater management facilities. A total of 2 major and 1 minor Reuse markets continue to be identified and are being spill occurred at wastewater management facilities in targeted by the Corporation’s Recycling Coordinator. 2007/2008. Community engagement and education to increase the level of public awareness of issues relating to biosolids Details of the major Priority 1 spills are as follows: management is critical for the success of the program. Kyabram, Haslem Street In July 2007 a blockage in the sewer main caused a spill Wastewater Spills within a residence in Kyabram. A blockage caused by tree The management and prevention of wastewater spills root intrusion resulted in wastewater discharging within a continues to be a high priority for Goulburn Valley Water. As house. Operations staff promptly responded to the spill and part of the new Corporate Licence, Goulburn Valley Water cleaned up the residue. Although no adverse environmental has committed to developing a Sewerage Management impacts were reported, it was determined to be a major Plan in consultation with the EPA and the community to spill as property damage had occurred. further improve its performance in spill management. The management plan will set out actions for long term Kilmore, Parade Street improvements of the sewer network with the aim of preventing sewer blockages, breaks and spills. A blocked sewer caused an overflow of domestic wastewater from a manhole which then flowed The number of spills are monitored and reported each approximately 20 metres into Kilmore Creek. The year by the Corporation to establish a basis for continuous blockage occurred as a result of a broken PVC pipe fitting

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report obstructing the sewer. The material is believed to have laboratory analysis data in Bridge-Soft information system. originated from domestic plumbing activities, and not from This system will significantly reduce the amount of time the Corporation’s works. Sampling results indicated that no required to enter results as it will upload directly from a adverse impact on water quality in the creek occurred. data file sent by the testing laboratory. The trade waste team has continued its involvement and Kilmore, Parade Street leadership role in the Victorian trade waste network group. The spill occurred from a manhole in Parade Street, The group delivers some key trade waste initiatives. In Kilmore in December 2007 and consisted of wastewater 2007/2008 this included developing guidelines for best predominantly from domestic origin. Operators retrieved a practice management of trade waste at saleyards. The bed sheet and plastic shopping bags from the sewer main Corporation is also an active member of the Water Services at the site of the blockage. Approximately eight kilolitres Association of Australia Source Management network. It of wastewater entered the Kilmore Creek. This wastewater is a key group in terms of setting a national framework for was pumped back into the sewerage system. Sampling trade waste and source management initiatives. One of results indicated that the pumping was successful as no the key outcomes from this network in the past 12 months adverse environmental impact had resulted. has been the development and release of a National Source Management Guideline. This document details Seymour, Abdallah Road best practice management for trade waste and source In June 2008, a sewer main blocked due to fat solidifying management. in the sewer. This resulted in an overflow from a manhole in Abdallah Road Seymour approximately 20 metres from Salt Reductions Whiteheads Creek. The volume spilled to the creek was In 2007/2008 a 37% reduction in sodium discharged from estimated to be approximately six kilolitres. Wastewater major industries was achieved compared to a corporate was reclaimed from the creek by pumping contaminants goal of a 25% reduction on the 2003/2004 figures. The back into the sewer. The creek had very low flow at the total billed quantity of sodium discharged in 2003/2004 time of the spill and all contaminants were recovered. was 1,819,093 kilograms compared with 1,134,490 kilograms in 2007/2008. This reduction is a combination of excellent work by a number of companies, the ongoing Trade Waste work that the Corporation undertakes with its major The trade waste team has continued to roll out a new industries and some effects of the ongoing drought. format trade waste agreement to major customers whose agreements have become due for renewal. The new agreement requires customers to prepare and submit waste minimisation plans detailing their plans for reductions in trade waste flows and loads and to report progress on an annual basis. There has also been a 35 transition of many customers to self-monitoring of their trade waste discharge. In conjunction with this there has been a transition to recording and reporting of all the

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Water and the Environment Case Study

Cleaner

Production Brady Schmidt with Noel Ruedin from Unilever

Sustainability Improvement Plan Goal 3 - Minimising the environmental footprint Commitment 3.1 Integrated Water Management To integrate planning and implementation of regional development with water cycle management to achieve effective stewardship of water while also fulfi lling essential environmental water requirements. Goulburn Valley Water has continued its commitment to cleaner production initiatives with its industrial customers. In 2007/2008 several key projects with industrial customers were completed. These included resource effi ciency studies at: Nestlé’s confectionary site in Broadford, Unilever’s site in Tatura and the commencement of a similar study at the Murray Goulburn Cooperative’s site in Cobram. All of these projects have had a strong focus on identifying water use reductions and/or recycling opportunities to reduce potable water use. In addition, there has been a focus on assessing opportunities to reduce salt loads in trade waste discharges. Of the projects conducted this year some of the key projects included: • identifi cation of opportunities to reduce water use at one site by up to 30%, including opportunities for recycling and energy recovery; • potential trade waste salt reductions of up to 5 tonnes / month at another site; and • potential (in future upgrades) to reduce salt loads by 2.5 tonnes per annum at one site Goulburn Valley Water remains committed to its cleaner production philosophy and will be embarking on more Goulburnprojects in partnership with EPA and industry in theValley coming year. Water A Sustainable Business Case Study

Study into world’s best practice Laurent Gallion—Veolia Water and Brady Schmidt at the Beune wastewater treatment plant

Sustainability Improvement Plan Goal 4 – Delivering integrated community benefi ts Commitment 4.1 Active community leadership To use GVW’s organisation status and infl uence within the region to offer leadership in fostering region development vitality and sustainability. In November 2007 our Manager Major Customers, Brady Schmidt, was awarded the Institute of Water Administration Development Award. This prestigious award enabled Brady to undertake a three week overseas study tour in May. Brady travelled to the UK, France and Germany to investigate world’s best practise management of trade waste at its source. He looked at how these countries manage critical pollutants from major industrial customers at point source, price pollution loads and manage the trade waste regulatory framework. Goulburn Valley Water receives and treats wastewater from a number of large industrial customers, predominantly in the food sector, and reuses this water for irrigation or returns it to the Goulburn River following tertiary treatment. Many parts of Europe have led the way in the fi elds of water recycling, source control and environmental management due to stringent controls bought in by EU countries to combat water pollution. Much of Europe treats and discharges wastewater back to waterways, which has meant there has been a strong requirement for source management of critical pollutants and strict discharge standards. During his study tour, Brady visited United Utilities and Severn Trent Water in the UK. In the UK the water authorities are very large in terms of staff and the number of customers serviced. The UK has very mature management systems and excellent emergency response procedures in regards to mapping of trade waste customers and networks. In France Brady met with Veolia Water and Campbell Soups. France is similar to country NSW where water and sewerage is managed by local councils. There appears to be a lot of legislative requirements and many layers of bureaucracy. Another interesting thing in France is that a large number of wastewater treatment plants are managed by private operators. Germany has a unique ‘Water Association’ structure in the state of North Rhine Westphalia. Associations handle all aspects of water in river catchment areas - including bulk supply for drinking water and wastewater treatment. Whilst in Germany, Brady visited two water associations; Erftverband in Bergheim and Ruhrverband in Essen, as well as Bayer Chemicals wastewater treatment plant in Leverkusen, and the Effi zienz Agentur (Effi ciency Agency) in Duisburg. GoulburnBrady’s work will provide Goulburn Valley Water andValley the Water Industry with an important Water insight into Ainternational Sustainable best practice for source management, particularly in relation toBusiness major industrial customers. Customers and the Community

engagement programs. The identified benefits of this Community Service Obligation training program include: Goulburn Valley Water is required to provide a range of concessions and rebates on behalf of the Victorian • Development of the awareness of a carefully researched 38 Government. In 2007/2008, the combined total of these and clearly defined process for thinking about, planning concessions and rebates was $2.3 million. The table below and conducting community engagement programs; outlines the value of the Corporation’s community service • Providing a broad-based learning experience covering all obligations. of the concepts required by those who seek to engage communities in decisions making; and Type 2007/2008 2006/2007 • Presenting a range of techniques and tools to make Pension Concessions $2,032,634 $1,973,846 consultation and communicating more effective. Water & Sewerage Rebate $234,973 $233,625 Scheme Community Engagement Plans Utility Relief Grant Scheme $6,076 $3,021 Goulburn Valley Water develops a community engagement Life Support Machines $215 $170 plan for every major project undertaken and other important areas of operations such as the water plan, Hardship relief grants - - customer charter, water supply demand strategy and Water Conservation - - regular maintenance works. Components of a community Assistants Pilot Program engagement plan may include: $2,273,898 $2,210,662 • Identification of key stakeholders including multi-cultural and indigenous interests; Community Engagement • The engagement level required with each stakeholder; Goulburn Valley Water is committed to community • Establishment of a Community Reference Committee engagement as an integral part of its business activities. to assist with liaison between the Corporation and the To enhance the community engagement capability of Community; the Corporation, key staff members have undertaken a • Focus Groups; comprehensive training program in Public Participation. In early June 2006, 31 employees were trained in the • Newsletters/Information Bulletins; International Association of Public Participation Certificate • Open Meetings and Open Days; Course and in August 2008 another 12 staff members • Presentations to Service Clubs; and will participate in the training. The training provides the foundations for conducting effective community • Regular articles in local papers.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Water Plan Community Reference Committee

Community Reference Committees Water Supply Demand During 2007/2008, Goulburn Valley Water worked with Strategy – Steering Committee four community reference committees. Two were for major To assist in the development of Goulburn Valley Water’s projects, the Marysville Recycled Water Facility and the Water Supply Demand Strategy a Steering Committee Upper Goulburn Regional Water Supply Project. The other was formed with representatives from three Councils, two were for the Water Supply Demand Strategy and the (City of Greater Shepparton, Shire of Murrindindi, Shire of Water Plan. Mitchell), the Ethnic Council, GV Disability Services, two Goulburn Valley Water is also in the process of establishing major customers (SPC-Ardmona and Kraft Foods), the a Corporate Community Reference Committee. This Goulburn-Broken CMA, Goulburn-Murray Water and the committee will deal with issues affecting customers Department of Sustainability and Environment. The role and the community across the Corporation’s region. of the steering committee was to represent the views of a Potential items that the committee could be involved with wide range of customers and stakeholders and to provide include the EPA corporate licence, greenhouse carbon input from a wide range of perspectives. neutrality, water conservation/education, hardship policy review, Northern Regional Sustainability Water Strategy 39 Water Plan – Customer Reference Committee and the Water Plan. The Corporation will work with the committee to better understand the community’s views To assist in the development of Goulburn Valley Water’s five and preferences to assist decision making for key activities year water plan for 2008-2013, the Corporation sought the and projects. Ideally members of the committee will show views of its customers and the community about planned strong social, environmental and economic values and also works across the region and proposed pricing structures. demonstrate a strong commitment to consultation and the A community reference committee, comprising 18 people ability to build partnerships within the community. from across the region, was established to help the Goulburn Valley Water is committed to appointing committee Corporation consult with its customers on this important members that represent the diversity of the region. document. Two half-day workshops were held and representatives Upper Goulburn Regional Water Supply Project were provided with background reading and briefed on Prior to establishing a Community Reference Committee the topics to be discussed, ie; service level targets, tariff in May 2007 for the Upper Goulburn Regional Water structures, guaranteed service levels. The objectives for Supply Project, the Corporation held information gathering the workshops were: meetings in Eildon and Thornton during October/November 2006. The purpose of these meetings was to identify the • To provide information to representatives so they were best method of communications with the community and informed on the background and current status of the potential members for a community reference committee relevant water issues; for the entire project. In addition to the information gathering meeting, public information days were held at • For members to understand and broadly agree on the Thornton and Eildon and information booths were set up customer service targets to be set for each element in at the Eildon Visitors Centre and the Alexandra Library for the water plan; a one week period in early February 2007. In May 2007 a Community Reference Committee was established for • Explain the capital works required to achieve service the project with the purpose being to review and provide levels and other regulatory requirements; input into the pipeline route selection. The committee • To gain agreement on the type of tariff structure to be has met several times to review and provide input into the adopted; and pipeline route selection and community engagement. The committee comprises nine local residents/ business people • To decide whether guaranteed service levels should be from Alexandra, Eildon and Thornton. introduced.

Customers and the Community Customer Satisfaction by Category (weighted satisfaction index)

Management of Social and Customer Satisfaction Survey Economic Impacts Each year Goulburn Valley Water undertakes a customer 40 satisfaction survey which is designed to: The Corporation has in place a Hardship Policy and Customer Accounts Officers are trained to encourage • Quantify gaps which may exist between customer’s rating customers to discuss their personal circumstances of importance of service attributes and their perception surrounding non-payment of accounts. The Officers can of the Corporation’s performance on each service then determine if there are any Government assistance attribute; and programs the customers may qualify for to assist them with their short term or long term financial hardship. The • Measure the Corporation’s performance against Officers also provide a range of payment options to assist benchmarks established in the previous customer the customer in working out the best option for their satisfaction studies. situation. The Hardship Policy is reviewed and updated on The results for 2008 are based on responses to a an annual basis. telephone survey of 402 customers located throughout Goulburn Valley Water’s region. The overall 2008 customer Goulburn Valley Water operates a 24 hour seven day per satisfaction rating of 92.1 has decreased by 2.5 points week Customer Service Centre. This centre takes all calls from the 94.6 overall rating in 2007. 88% of customers in relation to service difficulties and faults. Each call is scored on or above the minimum satisfaction benchmark logged into the Corporation’s computerised customer of 80. This compares with 90% in 2007. A total of 69% of service register and then dispatched to the relevant district customers scored on or above 90 suggesting strong levels office for attention. Once the service is rectified and of satisfaction amongst the majority of customers. actioned the outcome is logged. The past ten years results in the key areas of water supply, wastewater treatment, tariffs and the overall results are shown in the graph above. The survey measured 16 service items, including items such as taste of water, colour of water, smell of water, readability of bills etc. Of the 16 items 13 have a customer satisfaction score of 90 or above suggesting that customers are strongly satisfied with the Corporation on these issues. In our Southern Districts the item, taste of water, fell below the benchmark of 80. This can be attributed to the continuing drought conditions.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Energy and Water Young People The Waterwatch Education Ombudsman (Victoria) Program is offered to all The Energy and Water Ombudsman (Victoria) (EWOV) is an schools in our region independent body, funded by the member utilities, to assist each year. 91 schools customers who are dissatisfied with some aspect of the participated in the service or interaction with utilities around the state. many activities during 2007/2008. It is a The number of contacts to EWOV for 2007/2008 for practical science- Goulburn Valley Water and all Regional Urban Water oriented program that is Corporations are set out in the table. easily accessible to all students, including those Type of Contact who may not excel at the more academic school curriculum. Waterwatch is promoted to schools Goulburn Goulburn Valley Water RUWC All as an activity that Enquiries 871 fits well in vocational Enquiries referred to Provider 791 education curriculum and alternative Complaints referred to higher – level 16 135 community-based contact programs. Complaints Investigated 6 72 A School Holiday Program Julio Celestino Community Inclusiveness “Enviro Science (Photo Courtesy of Shepparton News) Goulburn Valley Water is mindful of the State Government’s Workshop”, Multicultural Policy and shares its commitment to was run during promoting programs and strategies aimed at delivering September 2007. 32 children aged 7-14 years attended the culturally appropriate services. The Board endeavours to week long program. In June 2008 Goulburn Valley Water ensure that the Corporation’s systems and employees partnered with Goulburn Valley Grammar School to conduct are sensitive to cultural and language diversity within the the Science @ Work program. (See the case study.) Corporation’s customer base and regional community. Goulburn Valley Water also works with agencies and community organisations such as Landcare to offer Cultural Diversity programs designed to broaden the experience of young 41 Goulburn Valley Water offers interpreting services for all people in environmental and resource-based issues. non-English speaking customers and the Corporation’s Customer Charter has been translated into the five main languages for the Goulburn Valley Region, Greek, Italian, Indigenous People Turkish, Arabic and Albanian. Water Restrictions brochures Goulburn Valley Water has for many years worked closely have also been translated in Arabic. with Indigenous Communities across the region. Goulburn Valley Water encourages Indigenous representation In 2006/2007 Goulburn Valley Water provided a 12 month in community engagement committees to ensure that traineeship to a Congolese immigrant Dieudonne Lulerhe. culturally significant areas are recognised. The traineeship was based at the Corporation’s Shepparton wastewater management facility and provided training in The Corporation includes “Welcome to Place” in all major the farm base activities undertaken at the property. The community activities sponsored by Goulburn Valley Water. Corporation also provided placement for Julio Celestino from Indigenous Communities and their relationship with natural East Timor, a mechanical engineer who received a Rotary resources (specifically water) is Royce & Jean Abbey Cultural Ambassadorial Scholarship. promoted in the “Catchment Capers” Community Education Project. Goulburn Valley Water has recently embraced cultural diversity within the organisation through the recruitment Women and appointment of employees that have recently made Goulburn Valley Water embraces Australia their new home. Currently, Goulburn Valley Water “best practice” recruitment and employs people with diverse backgrounds from a range management principles and of nations such as Sri Lanka, China, Hong Kong, Malaysia, supports the employment Britain and New Zealand. Not only have these people and development of females bought specialist technical skills to our organisation, but in non-traditional roles. they have also brought a range of personal skills that have The Corporation also increased Goulburn Valley Water’s own understanding and encourages female commitment towards its employees. employees to participate As an organisation, we will continue to support and in water industry enhance our capacity to be diverse within our employment groups such as practices throughout our region, and support employees VicWater, AWA with differing backgrounds and experiences and IWA. Welcome to Place - Dean Briggs

Customers and the Community Case Study

L-R David Abbey- Rotary Club Shepparton Central, Julio Celestino, Allen Gale (Photo Courtesy of Shepparton News)

Cultural Ambassadorial Scholarship Sustainability Improvement Plan Goal 4 – Delivering integrated community benefi ts Commitment 4.2 - Building community water literacy To develop customer and community understanding of water management issues and challenges, so that they can participate effectively in water management and service delivery actives. Goulburn Valley Water worked with the Rotary Club of Shepparton Central to support a young engineer from East Timor on a Royce and Jean Abbey Cultural Ambassadorial Scholarship. From September until December 2007 Julio Celestino, a mechanical engineer, worked in several groups including: • Central water treatment; • Central operations and maintenance; • Central wastewater; • Operations IT on SCADA & Telemetry; and • Asset performance. Julio works for Oxfam Australia in East Timor as an assistant water and sanitation offi cer at an internally displaced persons camps in Dili. The Abbey scholarship is awarded to eligible people in neighbouring developing countries to help improve their skills. It is expected that skills learnt will be used in the recipient’s home country. The support for Julio’s training is another example of Goulburn Valley Water’s commitment to social development beyond our core business of supplying safe water and safely managing wastewater and to be a truly sustainable business. It also provided an opportunity for the Corporation through Julio to educate the broader community on Goulburnwater management. Valley Water A Sustainable Business Case Study

Science Work L-R Front Courtney Naughton, Environmental Offi cer, Caytlin Brooks, Stacey Furness, Finley Roberts, Back John Day—District Manager, Lachlan McDonald, Sam Barkley, Ken Ellis— Environment Management Coordinator)

Sustainability Improvement Plan Goal 4 – Delivering integrated community benefi ts Commitment 4.2 - Building community water literacy To develop customer and community understanding of water management issues and challenges, so that they can participate effectively in water management and service delivery actives. Action 4.2.1 in Goulburn Valley Water’s Sustainability Improvement Plan is to further develop the water education program to broaden community engagement and awareness of water management. Goulburn Valley Water hosted a Science Students @ Work program in June 2008. The program provides students with the opportunity to engage meaningfully in the workplace by investigating relevant workplace issues that challenge them to come up with recommendations for improvement. Six students from Goulburn Valley Grammar School took up the challenge under the program to test their problem solving skills and develop their leadership and project management abilities. Goulburn Valley Water set the challenge to investigate the merits of relocating the existing Goulburn River raw water off take for the Shepparton water treatment plant from downstream to upstream of the Broken River confl uence. The students were given a week in the workplace to evaluate the merits of the proposal utilising the Corporation’s Sustainability Assessment Tool to consider fi nancial, environmental and social factors. At the end of the project the students made a presentation to the management and staff of Goulburn Valley Water, their teachers and parents This “real world” project exposed students to the most current and advanced business philosophies by including sustainability concepts into project development. Project diffi culties included mechanical and infrastructure requirements, biodiversity, heritage and planning issues. The students found the project challenging, it tested their problem solving skills and they had to apply their science based knowledge in the workplace. The students were unanimous in saying that it helped them discover their strengths and weaknesses and how to work together as a team and each use their strengths for the benefi t of the team. Science Students @ Work is a program that has been initiated by Akom Educational with an aim of offering practical ways of identifying potential career paths. The students participating in the project were Caytlin Brooks, Kartika Subagio, Sam Barkley, Stacey Furness, Finley Roberts and Lachlan McDonald. Both students and Goulburn Valley Water found the program to be mutually worthwhile. Students had the Goulburnopportunity to gain insight into the workings of a highlyValley regulated essential service provider Water and build literacy of Awater issues,Sustainable while preparing for the demands and expectations in a highlyBusiness skilled and innovative workforce. School Holiday Program Goulburn Valley Water and Waterwatch provided school holiday activities with an environmental focus for upper primary and lower secondary students. 32 young people graduated as Junior Enviro Ambassadors after three action-packed days of directed environmental activity. The program covered important themes and issues around water treatment, stormwater, global warming, water quality, biodiversity, Junior Enviro Ambassadors environmental art, tree planting and a clean- up-Australia pickup. Goulburn Valley Water staff worked with educators from other resource Community Education management agencies to deliver the program. The community education program at Goulburn Valley Working with the Community Water is a broad-ranging program that raises awareness Goulburn Valley Water recognises the importance of in the whole community of a range of water-related issues providing the community with opportunities to learn from conservation and sustainability to water quality and about water conservation, water treatment, wastewater biodiversity. management and reuse, and the roles and responsibilities of the Corporation. The Corporation delivers its community Working with Schools education through a range of activities including: Goulburn Valley Water continued its strong focus on education in 2007/2008. The Corporation worked with • Tours of facilities; a total of 91 schools undertaking programs such as • Presentations to local service clubs; Waterwatch and Catchment Capers and organising a range of water-related activities during National Water Week. • Stands at exhibitions; • Brochures; • Customer newsletters; and • The Goulburn Valley Water website. Facility Tours and Presentations 44 During 2007/2008 over 1,000 people visited Goulburn Valley Water’s facilities on organised tours. The community visited water treatment and wastewater management David Hodgkins— Education Officer facilities at Euroa, Shepparton, Tatura, Kyabram and with Students from Notre Dame Cobram. Goulburn Valley Water’s employees also gave talks at Rotary, Probus, Gardening Clubs and other Service Clubs Waterwatch across the region including, Cobram, Alexandra, Seymour, Waterwatch is still proving to be a most successful mechanism Shepparton, Kilmore, Tatura, Mooroopna and Numurkah for introducing water issues into the school curricula. The program provides schools with the tools to incorporate Exhibitions water activities, especially water quality monitoring, into Goulburn Valley Water participated in five regional their curricula. Across the Goulburn Valley region 55 schools events in 2007/2008 with over 1,900 people visiting the participated in the Waterwatch program in 2007/2008. Corporation’s stand. The focus at these events was about, Activities undertaken included water quality monitoring, water conservation and water restrictions. One event aquatic invertebrate sampling and habitat surveys. in Shepparton focused on property development and property connections to water and sewerage. Catchment Capers Catchment Capers is a water quality monitoring project for primary and lower secondary schools. The Project assists schools to carry out monthly monitoring at a local waterway, as well as participate in a variety of water-related activities each month focussing on stormwater, water conservation and waterway flora and fauna. During 2008, 33 schools included Catchment Capers in their school curriculum. Allen Gale with a group of The new Catchment Capers website has been launched Tatura Rotarians walking and is providing the opportunity for schools to publish their on the HRAL at Tatura results in the community, and share their results with other participating schools.

Running Water from the Mountains to the Murray Case Study

Regional

Allen Gale & Ross McPherson chairing a Futures Forum session at the Regional Futures Forum

Sustainability Improvement Plan • Insuffi cient information was presented to identify clearly what these opportunities will be. Goal 4 – Delivering integrated • There needs to be a fl exible approach to markets community benefi t and associated services. Commitment 4.1 • The GMID will have a water availability Active community leadership advantage over similar regions in southern Australia. To use GVW’s organisational status and infl uence within the region to offer leadership in fostering regional • The current irrigation system is outmoded development, vitality and sustainability. and ineffi cient and current farm sizes and arrangements are not conducive to the likely size Action 4.1.1 in Goulburn Valley Water’s Sustainability and operating regimes to maximise effi ciencies Improvement Plan was to initiate a regional futures in the future. In addition, the types of farming forum to engender collaborative action by regional practices will need to be revisited. stakeholders to envision and shape a prosperous regional future. • Transportation systems are not adequate for an increased intensity of agribusiness in the GMID. A major forum was held in Shepparton on 24 and 25 September 2007 that assembled the best thinking • Telecommunications need to be improved. across Australia and the USA to consider the needs for a long term sustainable agribusiness future for the • There is increasing diffi culty in gaining and Goulburn Murray (GMID) region. retaining human resources, particularly skilled workers, and educational facilities need to be Goulburn Valley Water’s Sustainability Improvement expanded to provide the necessary training for Plan includes a commitment to facilitate a regional the workforce. forum to plan for a sustainable future. This commitment supports the outwardly-focussed • The changes likely to be required will result in approach to sustainability by the Corporation. signifi cant social disaffection and considerable The then Managing Director, Laurie Gleeson, and disruption of the social fabric of the GMID. General Manager Technical Services, Allen Gale, This case study also relates to another goal from the held discussions with community leaders who were Sustainability Improvement Plan, Goal 1 Ensuring thinking along similar lines. As a consequence, after ongoing organisation relevance and effectiveness a lot of hard work in a very short time, the Foodbowl and in particular Action 1.4.1 which requires us to Forum was most successful, with more than 260 advance the outcomes of the Regional Futures Forum attendees and a bevy of high quality speakers. by the involvement of the Board and management with Key fi ndings from the Foodbowl Forum are: regulators. Senior Goulburn Valley Water management will continue to play a leadership role in ensuring the • There are and will be continually expanding required works are undertaken. Goulburninternational opportunities for agribusiness inValley Water A the GoulburnSustainable Valley. Business Case Study

National Water Week Winning Picture— nature category— Wetlands at Tahbilk by Cynthia Lim

Sustainability Improvement Plan School Competitions Goal 4 – Delivering integrated The poster competition this year had a different twist – students were required to decorate blank fabric community benefi t squares with either a fl ood or drought theme. More than 600 squares were received adorned with paint, Commitment 4.2 glitter, cotton, sawdust, straws, bottle tops and beads. Building community water literacy The squares portrayed strong images and messages of water sustainability. To develop customer and community understanding of water management issues and challenges, so that they The top 35 squares were sewn into a large colourful can participate effectively in water management and quilt that is touring around the catchment to promote service delivery activities. the fantastic work done by Primary school students in Goulburn Valley Water’s region and the very important Each year Goulburn Valley Water is an active message of “Save Water – it’s the fabric of life!” member of the Goulburn Broken National Water Week Committee. The 2007 National Water Week was once The 2007 Create a Critter competition was won by again a success with many competitions and events Aaron Bhat from Goulburn Valley Grammar School. organised by the Committee to highlight water issues within the whole community.

School Activities Water Week Launch Primary school students from around the catchment were invited to participate in the launch of Water Weekekk 2007 at Aquamoves in Shepparton. More than 200 students enjoyed themselves with a range of activitiess from water art, environmental orienteering, a boat building competition and a visit from Dr Wells from Winning Create-a-Critter— GoulburnMuseum Victoria. Valley WaterWater Scorpion” by Aaron Bhat A Sustainable Business Case Study

Community Activities Tours and Wetland/River walks On Sunday 21 October 2007, National Water Week commenced with free boat cruises on the wetlands at Tahbilk Winery near Nagambie and a canoe tour along the Broken River between Shepparton and Benalla. Participants on the canoe tour studied the vegetation and birdlife along the waterway and observed the changes in water quality in the Broken River. A Mini Catchment Tour provided 20 locals in the Shepparton area with the opportunity to learn about Goulburn Valley Water’s water treatment and wastewater processes, Goulburn-Murray Water’s new “Total Channel Control” irrigation infrastructure and Goulburn- Winning Patches Broken Catchment Management Corporation’s river management projects. 30 participants went on a tour of Mount Buller to learn about the effect of snow melt on native vegetation, and water and wastewater management on the mountain. wonderful display of artwork and culture that included The Water Cycle was a new initiative in 2007 in which the catchment quilt and Create a Critter competition keen cyclists rode the length of the Shepparton bike entries. path stopping intermittently to hear from local experts about issues around stormwater, water treatment, The awards included: weeds and the history of Shepparton on the Goulburn Waterwise Garden Award – sponsored by Goulburn River. Valley Water Writing and Photograph Competitions Best Practice Irrigation Management on Farm Award – sponsored by Goulburn-Murray Water The community again embraced the writing and photography competitions in 2007 with over 150 Commitment to Natural Resource Management on entries being received for both competitions. a Goulburn Broken Waterway Award – sponsored by Photographic categories include “Recreation,” “Nature” Goulburn Broken Catchment Management Corporation and “Before and After” and entries did not disappoint, Building Industry Award – Good Practice in with more incredible photos coming in again this year. Stormwater Management – sponsored by City of Award Ceremony Greater Shepparton Water Week activities could not occur without the In addition to the community and school competitions, support of sponsors and the committee. Participating organisations that sponsored National Water Week also organisations included Goulburn Valley Water, presented awards. Goulburn Broken Waterwatch, Goulburn-Broken The Water Week Awards Night was held on Wednesday Catchment Management Authority, Goulburn- 24 October in Shepparton with around 200 people Murray Water, Goulburn Murray Landcare Network, Goulburnattending. The winners of all Water Week Competitions Valley Department of Primary Industries, Water City of Greater Awere announcedSustainable and guests were treated to a Shepparton, MoiraBusiness Shire and the Country News. Water main replacement works at Girgarre.

Assets and Infrastructure 48

replacement and the cast iron water main replacement Assets programs. Under this arrangement the delivery of water Goulburn Valley Water operates 1,694 kilometres of water main replacement projects has improved in terms of mains, 1,170 kilometres of pressure and gravity sewers, innovation, cost and time for completion of works. 313 pumping stations, 110 tanks and reservoirs, 39 water treatment plants and 26 wastewater management facilities. Sewer Main Inspection and Details of these facilities are stored in the Asset Register. Rehabilitation The same system also manages the maintenance and operation of the Corporation’s assets. During 2007/2008 approximately 10,900 metres of sewer mains were cleaned and inspected by Closed Circuit The asset register and maintenance management system Television (CCTV). This was a continuation of a contract are used, along with consultation with district managers that commenced during 2006/2007 with a total of 16,100 and operations and maintenance staff, to identify water metres of sewer mains inspected. The inspection reports mains that are in need of replacement and to formulate a were then assessed and consequently 2,500 metres of sewer inspection program. sewer mains were relined during 2007/2008. Also included under the relining contract was the repair of five sewer Water Main Replacements main collapses that were identified in the towns of Seymour (2), Shepparton (2) and Alexandra (1). Goulburn Valley Water identifies water mains for replacement by their failure history and consequences of Goulburn Valley Water also commenced participation in failure. During 2007/2008 the Corporation replaced 2,104 three Water Services Association of Australia projects metres of water main within the townships of Shepparton, regarding asset management of gravity sewer mains during Nagambie, Numurkah and Seymour. These water mains 2007/2008 that will continue into the 2008/2009. These were predominantly replaced using an innovative system projects have required the Corporation to provide a minor comprising ”pipe bursting” and the installation of financial contribution to the cost of the projects and to also polyethylene water mains. participate in the project workshops and project working groups. These projects are being supported by other The Corporation also entered into a three year contract water businesses across Australia and include subjects with Infratec during 2007/2008 to design, supply such as sewer blockages, relining options and condition and install water mains under the annual water main assessment.

Running Water from the Mountains to the Murray Case Study

World’s First Corporate Licence

L-R: Laurie Gleeson Managing Director - Goulburn Valley Water, Kaye Darveniza - Member for Northern Victoria, The Hon. Gavin Jennings MP – Minister for the Environment, Mick Bourke Chairman – EPA Victoria, Don Cummins Chairman – Goulburn Valley Water

Sustainability Improvement Plan This historic event took place at Goulburn Valley Water’s regional offi ce in Shepparton and was attended Goal 1 – Ensuring ongoing by the Minister for the Environment, The Hon. Gavin organisation relevance and Jennings MP and the Chairman of EPA, Mick Bourke. effectiveness The Corporate Licence concept offers Goulburn Valley Water a number of benefi ts including the consolidation Commitment 1.4 of multiple licences into a single document. The Corporation previously operated under 26 separate Infl uencing Regulators wastewater management facility licences that were Infl uencing regulatory environment through water outdated and administratively complex. The new industry and regional associations to invest in and licence, written in plain English and limited to 8 promote ongoing regional development and wise use of pages, replaces more than 226 pages of licence the region’s natural resources. conditions under the previous arrangements. Action 1.4.1 in Goulburn Valley Water’s Sustainability The licence streamlines reporting requirements Improvement Plan was to actively pursue opportunities into a single annual performance statement. with regulators to infl uence regulatory policies and Previous reporting obligations varied between instruments to achieve sustainable outcomes. licences and did not clearly refl ect the Corporation’s environmental performance. The new licence format The negotiation of a single EPA Victoria Corporate retains mandatory compliance requirements, while Licence covering Goulburn Valley Water’s 26 including opportunities to address long term business wastewater management facilities is an excellent sustainability. The new reporting structure is a further example of the Corporation working in partnership with means to strengthen the Corporation’s communication the Environment Protection Authority (EPA) to achieve with the public whilst improving its environmental positive results for the environment and community. performance through increased transparency and Goulburn Valley Water and EPA believe that this new accountability. approach will improve environmental performance Another key initiative of the Corporate Licence and accountability and provide a platform for greater involves the creation of opportunities to invest in commitment to sustainability by the Corporation. projects that offer the most effective environmental In November 2007 EPA Victoria and Goulburn Valley and economic returns. Embracing Triple Bottom Line Water signed the world’s fi rst corporate licence, which principles (TBL) into the licence format has further Goulburnis intended to deliver administration savings and, Valleyintegrated sustainability into theWater Corporation’s Aimportantly, Sustainable improve environmental performance. business culture Businessand operations. Case Study

Long Term Planning

Sustainability Improvement Plan Goal 2 – Ongoing Improvement in Business Effi ciency Commitment 2.1 Optimising Operational Systems

Action 2.1.1. of the Corporation’s Sustainability Sewer Network Master Plans Improvement Plan is to optimise investment by refl ecting regional growth scenarios and sustainability principles The sewer network master plans ensure that capacity in the 20 year capital expenditure program. is provided for future growth to maintain service levels received by customers. Action 2.1.3 of the Corporation’s Sustainability Improvement Plan requires the Corporation to review The main service level driver for master plans is to and optimise the operational effi ciency of current ensure that all sewer fl ows are fully contained within delivery and treatment systems. the sewer system in a 1 in 5 year average recurrence interval rainfall event, which is an EPA compliance Goulburn Valley Water develops water network master obligation. plans and sewer network master plans for all water supply systems and sewerage systems across the Sewer network master plans were developed in region. These master plans are developed for a 20 year 2007/2008 for Kyabram, Mooroopna and Numurkah. period and establish the water and sewer network In addition to the master plans, 1 in 5 year sewer fl ow infrastructure capacity and requirements over that containment assessments were undertaken for sewer period based on various growth scenarios networks in Alexandra, Broadford, Eildon, Euroa, Kilmore, Mansfi eld, Marysville, Seymour and Yea. Water Network Master Plans Facilities Reviews The water network master plans ensure that capacity is provided for future growth to maintain service Goulburn Valley Water also undertakes long term levels received by customers. planning for its water treatment plants and wastewater management facilities. The main service level driver for master plans is to ensure that all customers receive a minimum During 2007/2008 the Corporation fi nalised a 20 water pressure and minimum fl ow rate as per the year capacity review for all wastewater management Corporation’s service levels approved by ESC. facilities (WMF). The review identifi ed upgrade requirements needed to ensure that the capacity of During 2007/2008 water network master plans have the wastewater management facilities meet growth been completed for Euroa, Kyabram, Mansfi eld, needs for the next 20 years and resulted in additional Nagambie and Numurkah. projects being incorporated in the 20 year capital The Euroa master plan is an example of the outcomes works program; including: that are achieved through the completion of water • Broadford WMF Irrigation Capacity Upgrade network master plans. The plan provides for annual growth rates between 0.8% - 1.2% amounting to • Kilmore WMF Irrigation Capacity Upgrade approximately 430 additional water connections over • Mansfi eld WMF Irrigation Capacity Upgrade. the next 20 years. Capital works totalling $975,000 have been programmed between 2009 and 2011. The • Nagambie WMF Irrigation Capacity Upgrade capital works will ensure that capacity is provided for growth and that service levels continue to be Goulburnmaintained for customers. Valley Water A Sustainable Business Case Study

Water Security Corporate Objective Assets and Infrastructure

L-R Peter Quinn, Don Cummins, Ben Hardman MP— Member for Seymour, Doug Kindred MD DigRite, Lachlan McGregor Project Manager

Strategic Objective 3.1 Effi ciently plan and manage the Corporation’s infrastructure and assets to enhance our long term capacity to deliver high quality service to our Customers.

During 2007/2008 Goulburn Valley Water has Broadford Water Supply Pipeline undertaken a number of projects to delivery water security to its customers. GVW2055 recommended the construction of a pipeline Goulburn Valley Water’s water supply demand strategy and ancillary works to supply raw water to Broadford GVW2055 identifi ed a number of projects that the and, in future, Kilmore from the Goulburn River to Corporation should undertake in the short term to supplement water supply for the stressed Sunday address water security for Mansfi eld and Broadford. Creek Reservoir. Mansfi eld Raw Water Storage A pumping station on the Goulburn River near GVW2055 indicated that, in conjunction with the current dry conditions, an additional raw water storage Tallarook will be built during the second half of 2008. for Mansfi eld was required immediately. The strategy The 23 km pipeline connecting the pump station to the indicated that additional raw water storage with a Broadford water treatment plant commenced in June capacity of 350 megalitres was required. 2008. It is anticipated that both the pump station and As a result the Corporation constructed the new raw water storage close to the existing 180 megalitre pipeline will be completed by December 2008 Ritchie Reservoir and it was successfully completed on This project will ensure the security of water supply schedule at a cost of $2.7 million. for Broadford and will increase the security in the Filling of the new storage has commenced and this storage will increase the security of water supply for Sunday Creek System. The estimated capital cost of the Goulburnthe town of Mansfi eld. Valleyproject is $15.2 million. Water A Sustainable Business Developments

Development Nine Mile Creek Reservoir The 27 megalitre Nine Mile Creek Reservoir supplies In accordance with Goulburn Valley Water’s statutory Longwood and has been identified as being in poor obligations and policies, new development in the region is condition. To increase safety, a new $1.7 million concrete provided with reticulated water and sewerage services at dam is to be constructed immediately downstream of the time of development wherever it is possible to do so. the existing earthen embankment. This project should During 2007/2008 a total of 1,152 new lots were created commence in 2008/2009 and be completed in 2009/2010. across the Corporation’s region. The chart indicates the distribution of these lots across the major growth areas and Abbinga Reservoir 52 compares this years results with those for the previous four. The 565 megalitre Abbinga Reservoir is part of the Euroa As shown in the chart the dominant growth area continues supply system and does not fully comply with current to be Shepparton which accounts for 45% of all new lots. standards. As the reservoir has a low hazard rating, construction of a new $5.4 million dam can occur in the medium term and is presently programmed for around Dam Management 2020. However, location and engineering investigations have Goulburn Valley Water owns thirteen water storages that already commenced and will continue during 2008/2009. are deemed significant and subject to annual review. These dams are an essential component of the systems supplying New Mansfield Reservoir water to many towns in our southern region such as At a cost of $2.7 million, a new 350 megalitre reservoir was Broadford, Euroa, Kilmore, Marysville and Longwood. constructed in Mansfield this year to augment the current The Corporation undertakes regular inspection of raw water storage capacity for the town (refer to the Water these dams and reports annually to the Department of Security case study). Sustainability & Environment regarding dam condition and intended works. Mansfield No. 3 Reservoir A comprehensive dam portfolio review was undertaken in The existing 45 megalitre Mansfield No. 3 Reservoir 1998 and since this time the upgrade of many dams has requires upgrade and the scope and timing of these works occurred, with further works programmed. Some points of will be confirmed during 2008/2009. interest include: Engineering studies are programmed for 2009/2010 for the 100 megalitre Aub Cuzens Reservoir near Marysville Kilmore No.3 Reservoir and the 117 megalitre Hollowback Reservoir near Kilmore. With the recent construction of a 16 megalitre concrete A study is also required for the 200 megalitre Waterhouse storage tank to supply water to Kilmore, the Kilmore No.3 Reservoir near Euroa by 2012/2013. These studies may Reservoir is no longer required and was decommissioned result in future works at some sites. this year. There are no studies or works currently required at the 55 megalitre Bonnie Doon Reservoir, the 14 megalitre Sunday Creek Reservoir Mountain Hutt Reservoir near Euroa, the 40 megalitre As discussed in the Dam Safety case study, upgrade works Pyalong Reservoir the 115 megalitre Broadford No. 3 costing $4.1 million have occurred to the Sunday Creek Reservoir or the 180 megalitre Ritchie Reservoir near Reservoir and these were completed this year. Mansfield.

Running Water from the Mountains to the Murray Case Study

Dam Safety Corporate Objective Assets and Infrastructure

Lachlan McGregor at the top of the Spillway— Sunday Creek Reservoir

Strategic Objective 3.2 Maintain and develop the Corporation’s assets to minimise risk to the community, environment and the Corporation.

Goulburn Valley Water undertakes regular inspection of dams and reports annually to the Department of Sustainability & Environment regarding dam condition and intended works. During 2007/2008 Goulburn Valley Water upgraded the Sunday Creek Reservoir and decommissioned the Kilmore No. 3 reservoir.

Sunday Creek Reservoir Sunday Creek reservoir is the Corporation’s largest storage with a capacity of 1,650 megalitres. Changes to ANCOLD guidelines meant that the dam no longer complied fully with current design criteria. In March 2008 Goulburn Valley Water completed a $4.1 million upgrade of the Sunday Creek Reservoir which satisfi ed the ANCOLD dam safety standards. Works included the upgrading of the spillway to increase fl ow capacity in the event of a fl ood and the installation of a downstream fi lter to prevent piping failure. Approximately 26,000 cubic metres of additional material was placed on the downstream embankment to provide additional weight to the structure to hold the dam in place.

Kilmore No. 3 Reservoir Increasing residential development downstream of the Kilmore No. 3 Reservoir, a 66 megalitre off stream balancing storage, has increased the hazard rating of this dam. Furthermore the open storage posed a risk to water quality. Rather than upgrade the dam embankment by the provision of a downstream fi lter, a decision was made to construct a new 16 megalitre water storage tank adjacent to the reservoir. This allowed both Kilmore No. 3 and the smaller Kilmore No. 1 reservoirs to be decommissioned and to provide major water quality benefi ts for GoulburnKilmore residents. Valley Water AThe newSustainable tank was completed in March 2008, and the reservoirs were decommissionedBusiness in June 2008. Case Study

Risk Management Corporate Objective Assets and Infrastructure

Strategic Objective 3.2 Maintain and develop the Corporation’s assets to minimise risk to the community, environment and the Corporation.

One of the initiatives under Goulburn Valley Water’s Strategic Objective 3.2 is to undertake a minimum of one live simulation based emergency event per year. In October 2007 the Corporation held a table top emergency exercise in conjunction with the Moira Shire Municipal Emergency Management Planning Committee. The exercise examined various agency responses to a chlorine drum leak at the Cobram water treatment plant. The exercise allowed the different agencies such as the CFA, Red Cross, Ambulance, Police, Hospital and SES and Goulburn Valley Water staff to better understand their various roles and interactions in the event of an emergency. The scenario assisted participants to understand the nature of the essential services delivered by the Corporation, the complexities involved and the cascading issues that can arise during an emergency. Importantly, it reinforced the need for ongoing communication between the agencies when planning, managing and recovering from emergencies. Goulburn Valley Water actively participates on a range of emergency management forums, particularly at regional level, to assist in maintaining open communications and peer networks.

Goulburn Valley Water A Sustainable Business Organisation Capability

Board of Directors Don Cummins – Chairman, Catherine Scott – Deputy Chairman, Denis Flett, Mike Hall, Mark Lawlor, Bruce Nicholls, Margaret Rae

Peter Quinn Managing Director

Allen Gale Graeme Jolly Danny Hogan General Manager – General Manager - General Manager– 55 Technical Services Finance Corporate Services

Responsibilities Responsibilities Responsibilities Operations Financial Management Corporate Secretary Project Planning & Development Accounting Services Communications/PR Asset/Project Delivery Accounts Payable Legal & Property Asset Performance Billing Services Human Resources Environmental Treasury Information System Technical Customer Services

Executive Management Team participating in significant change management projects during the restructuring of that sector. Peter has extensive Goulburn Valley Water’s executive management team experience in strategic planning, water resource was led by Managing Director, Laurie Gleeson until his management, regional and infrastructure development, retirement at 30 April 2008. From 1 May 2008 Peter Quinn became Managing Director. Peter is supported by three organisational capacity building, risk management and general managers, Allen Gale General Manager – Technical governance. Services, Danny Hogan General Manager – Corporate He completed an Executive MBA program at the Australian Services and Graeme Jolly General Manager – Finance. Graduate School of Management in 2000 and in 2004 Peter A Quinn, Managing Director undertook a Churchill Fellowship project to examine how communities manage increasing demands for water from Peter joined Goulburn Valley Water in 1996 as General Manager Corporate Services and was appointed to the role urban and rural communities and the environment. of Managing Director in 2008. Peter is a member of the Australian Property Institute, the Prior to joining Goulburn Valley water, Peter had 16 Australian Institute of Company Directors and a Fellow of years experience in the rural water sector in Victoria, the Institute of Water Administration.

Organisational Capability Human Resources Human Resources Management is an integral function within Goulburn Valley Water. Servicing all employees, the function has coverage across all business units, and as such plays an important role in establishing and maintaining the cultural fibres of the Corporation. L-R Allen Gale, Peter Quinn, Graeme Jolly, Danny Hogan Key actions for 2007/2008 have been: • Employee Assistance Program;

Allen J Gale, • Employee Resources; General Manager - Technical Services • Personnel Appraisal and Development program ; and Allen joined Goulburn Valley Water in 1999 after more than • Employer Branding. 30 years working with national and international consulting engineering and science companies. Allen, a civil engineer Employee Assistance Program with a Master of Engineering Science Degree, has An Employee Assistance Program (professional Counselling experience throughout Australia, the Asia-Pacific and USA services) was enacted and made available to all employees. in all aspects of water and environmental engineering. In This service has been provided to ensure employees can addition to working with a wide range of major private and access qualified support in regards to a number of personal public clients, Allen was an adviser to the Hong Kong and issues including but not limited to: Malaysian governments in wastewater management and advised the West Australian Minister for the Environment • Family on restructuring of the water industry in WA. • Alcohol & drug abuse In 2001 Allen completed his term as Federal President of the Australian Water Association, the peak water • Relationship/marital issues industry association in Australia and he was awarded Life • Financial problems Membership in 2005. Allen also represented Australia at a United Nations Environment Program workshop in Japan on • Trauma support protecting coastal and marine ecosystems from land-based • Loss and grief activities in the Asia Pacific region. Other employee benefits developed during 2007/2008 More recently Allen has led the Australian water industry in biosolids management and led development of a • Reduced Gym Membership fees Victorian water industry position on return to stream being 56 recognised as beneficial use. • Various “Health and Wellbeing” programs including physiotherapy services Danny D Hogan, • Linkages with other local businesses (i.e. Car Parking General Manager - Corporate Services providers) Danny joined Goulburn Valley Water in June 2008 as the General Manager - Corporate service. Employee Resources Danny has a Bachelor of Business (Local Government). During 2007/2008, Goulburn Valley Water has continued He has had 31 years experience in the local government to meet community expectations, statutory obligations industry, including eight years as Chief Executive Officer and customer service through our committed employees. of Murrindindi Shire Council, where he gained experience To improve Goulburn Valley Water’s response to the in managing small to medium sized organisations with community, Goulburn Valley Water have improved complex and extensive functional responsibilities within a employee resourcing through: rural community setting. Increasing the employee base by 14 new positions Danny also has approximately five years experience in the identified through the 2008-2013 Water Plan adopted by water industry. He was Secretary of the Broadford Water Government. These roles are to be created over the next 5 Trust and Sewerage Authority and has also been involved years – including increases within the operational groups. with the Alexandra/Thornton/ Eildon/Marysville Water & Realigning the Technical Services Directorate - ensuring Sewerage Trusts. employees report to the right Manager, better linking of Graeme D Jolly, resources and employees working within the right team for General Manager - Financial Services better sharing of workloads and resources. Graeme has been employed by Goulburn Valley Water since Creating further positions to meet customer and statutory October 1995. He has a Diploma of Business - Accountancy requirements: and is a member of the Institute of Chartered Accountants of Australia, and the Australian Institute of Company • Sustainability Coordinator Directors. Graeme is Chair of the VicWater Finance • Further IT Helpdesk Support Issues Steering Committee, and is an active member of various VicWater industry task groups including Price • Instrumentation Officer Determination and Asset Valuations. Graeme is a member • OHS Officer of the Board of Management, and Chairman of the Audit Committee of Goulburn Valley Health. • Learning & Development Officer

Running Water from the Mountains to the Murray Case Study

Technical Services Realignment

(Back row L-R) Anne Ryan, Paul Kerrins, Gavan Keir, Daniel Bye (Front row L-R) Ignatius Alampi, Kellie Pell, Kayla Davey, Kylie Turnbull Additional Staff members not available for the photo Adrian Anderson, Carl Foster, Greg Hall, Nick Pearce, Paul Warren and Wayne Reither

Sustainability Improvement Plan Goal 2 – Ongoing Improvement in Business Effi ciency Commitment 2.2 Optimising the staff mix and deployment To review and modify the organisational structure and recruitment practices to ensure that GVW accesses the skilled resources to meet the emerging business needs. Action 2.2.2 in Goulburn Valley Water’s Sustainability Improvement Plan requires the Corporation to regularly review the organisational structure to ensure it supports the effective deployment of staff and resources. Goulburn Valley Water has recently realigned its Technical Services Department to further improve its level of customer service and the effi ciency of the organisation. The previous structure had diffusion of responsibilities and confusion as to what group was addressing the many challenges facing the organisation, particularly in asset management. The realignment has resulted in the Project Planning and Development Group having responsibility for all future planning, the Asset Performance Group having responsibility for all asset management and optimisation, the Asset and Project Delivery Group handling all procurement, both large and small, and with the Operations Group retaining responsibility for day to day operations. Additional specialist positions have been established to assist Operations in their consistency of performance across the organisation. In addition to the realignment a dedicated Technical Customer Services Group has been established, with responsibility for all customer queries and issues. This new group benefi ts customers by providing ready access to professional advice within the one department. The restructuring has brought the four areas of planning referrals, servicing new developments, property connections and 24 hours customer service together. The realignment is part of an ongoing assessment of the most benefi cial means of ensuring a long term Goulburnsustainable organisation while ensuring continuous Valley improvement in the level of service toWater our customers. A Sustainable Business Case Study

Mijo Darveniza Engineering Scholarship

Sustainability Improvement Plan Goal 2 – Ongoing Improvement in Business Effi ciency Commitment 2.2 Optimising the staff mix and deployment

To review and modify the organisational structure and The 2004 recipient was Stuart Jones who undertook recruitment practices to ensure that GVW accesses the a double degree at Melbourne University in skilled resources to meet the emerging business needs Environmental Engineering/Science with science majors of Environmental Science and Ecology. In 2003 Goulburn Valley Water established the Mijo Darveniza Engineering Scholarship. The scholarship Phebe Bicknell was the 2005 recipient. She is currently is for a full time Victorian university student undertaking a double degree at Melbourne University undertaking an engineering or water related degree in Environmental Engineering/Science. and whose parental home address is within the Goulburn Valley region. No scholarship was awarded in 2006. There is a recognised shortage of engineers in the The 2007 scholarship was awarded to Clair Speedy, water industry, and one way to attract graduates into who is undertaking B.Eng majoring in Chemical the water industry is to offer a scholarship. The aim Engineering at Monash University. of the scholarship is to promote the water industry to The scholarship currently offers fi nancial support of tertiary level students and support a full time student $5,000 per year and paid vacation employment. from the Goulburn Valley region. The Mijo Darveniza Engineering Scholarship is Phebe Bicknell’s 2007/2008 Project offered each year to students completing their In December 2007, Phebe Bicknell was seconded to second year of tertiary study in a water engineering Central Water to undertake an investigation into the related fi eld. Typical courses include Civil, Chemical, Optimisation of Power Consumption at the Shepparton Environmental or Mechanical Engineering. Recipients water treatment plant. This site was selected as it is the of the scholarship receive two benefi ts; a cash largest consumer of power for Goulburn Valley Water. component and vacation employment until completion of their course. The project confi rmed that the current operation The Mijo Darveniza Engineering Scholarship has been procedure of the Shepparton water treatment plant awarded to four students thus far. Matthew Drysdale has been appropriate. The balance between energy of Yea was the inaugural winner in 2003. Matthew consumption and chemical uses was clearly identifi ed. Goulburncompleted his Bachelor of Environmental Engineering Valley Improvements made at this benchmarkWater site will be at Monash University in 2005 and is working in replicated at other water treatment plants as a result of AMelbourne Sustainable with an international consulting fi rm. the fi ndings of thisBusiness investigation. Goulburn Valley Water 2007 / 2008 Annual Report

Mark Wilkin Manager HRS at the 2007 Engineers Australia Careers Expo

Personnel Appraisal & Development Program Improvements A briefing note was developed to provide guidelines around the PADP process, to give a better understanding of what is expected of both supervisors and employees. Employer Branding Two key areas have helped develop Goulburn Valley Water’s brand in the current recruitment marketplace: Careers Expo Sites – identified as a critical shortage, HRS set up successful stalls at the Engineers Australia Careers Expo and National Careers Expo to highlight the Water Planning & Project Development team Industry and Goulburn Valley Water as a potential employer. Water Industry “Employment Brand” Working Group - Auspiced by WSAA, Mark Wilkin - Manager Human Resources has worked with a small panel of Water Industry Equal Employment Opportunity professionals to develop a national Water Industry brand to be used in all recruitment activities to attract potential & Diversity 59 employees to the industry. Goulburn Valley Water is committed to the employment and conduct principles outlined by the State Services Authority Enterprise Agreement in the Public Administration Act 2004.

Consultative Committee Employers must ensure: An Enterprise Agreement Consultative Committee comprising 11 employees from across the Corporation’s Decisions are based on merit region has been formed to ensure a proactive and Employees are treated fairly and reasonably consultative Industrial Relations environment exists across Equal employment opportunity is provided Goulburn Valley Water, with negotiations for the 2008 Enterprise Agreement commencing in May 2008. Reasonable avenues of redress against unfair or unreasonable treatment Industrial Relations Employees must: No time was lost due to industrial disputes during 2007/2008. Act with impartiality Display integrity, including avoiding real or apparent conflict of interest Show accountability for actions Provide responsive service

During 2007/2008 the organisation continued to embrace “best practice” recruitment and management principles and continued to support the employment of females, on merit, in non-traditional roles (particularly our operational and technical fields).

Certificate 2 & 3 Recipients with Goulburn Valley Water also embraced diversity during Allen Gale, Laurie Gleeson 2007/2008, with a number of new employees recently establishing Australia as their home, from countries such as China, Hong Kong, and Malaysia.

Organisational Capability Case Study

Sustainability Workshops

Sustainability Improvement Plan Goal 1 – Ensuring Ongoing Organisational Relevance and Effectiveness

Commitment 1.2 Engendering a Culture of Sustainability at GVW To achieve a high level of awareness and commitment amongst Goulburn Valley Water staff to fostering sustainability through their operational roles, decisions, and interaction with regulators, development partners and customers Action 1.2.3 in Goulburn Valley Water’s Sustainability Improvement Plan was to develop and implement a staff awareness and cultural change program demonstrating the corporate commitment to sustainability and their role in its implementation. To help develop a culture of sustainability at Goulburn Valley Water, the sustainability team held a number of information sessions throughout December 2007. The sessions were held at the Corporation’s Regional Administration Centre, the four operations centres and the Central Water and Central Wastewater site offi ces. The objectives of the sustainability information sessions were to explain to staff what sustainability means to Goulburn Valley Water, what the Corporation’s sustainability targets are (in particular the Sustainability Improvement Plan) and how the Corporation is able to continually improve the sustainability of the business and the region in which we enjoy living. The presentations were well-received and stimulated energetic discussion. In particular the operations staff were very interested in the energy intensity trends for their facilities and discussed ways to reduce energy use. To help reinforce the sustainability message at home two staff members from each information session took part in a Laundry Detergent challenge. They were given an environmentally friendly laundry powder or liquid and asked to take it home and trial it before reporting back to the organisation via the Goulburn Valley Water staff newsletter. Employees are kept up to date about sustainability through the monthly staff newsletter, with regular articles on Goulburntopics such as emissions trading, carbon tax, renewable Valley technologies and GreenPower. Water A Sustainable Business Goulburn Valley Water 2007 / 2008 Annual Report

OH&S Goulburn Valley Water continued to demonstrate its strong commitment to health and safety across all business areas and was rewarded in 2007/2008 with the lowest number of Lost Time Injuries (LTI’s) since 2002 (when reporting began). Three LTI’s were recorded during the year with all employees returning to work within 2 weeks of the injury occurring. Over 90 health and safety inspections of major Goulburn Valley Water sites are carried out by employees each year. Learning & Development: The inspections are used to identify hazards and check safety controls are working effectively. In consultation with Goulburn Valley Water continues to embrace and foster a principal contractors major construction sites are also continual culture of Learning and Development. Through inspected monthly for health and safety hazards by project this culture, Goulburn Valley Water will be an innovative, supervisors and clerk of works. responsive and strategic organisation with the ability to meet all community and business requirements. This is The Corporation’s health and safety committee comprises achieved through: health and safety representatives from all work teams as well as management representatives. The committee • Developing a multi-skilled workforce with the ability to meets every six weeks to discuss current issues, review respond to all organisational needs; recent incidents and near misses, and endorse new policy/ • Ensuring Executive Management are supportive of the procedures with senior and middle level managers invited continual development of all employees; and to participate in the proceedings. • Continually reviewing appropriate learning needs (through Throughout 2007/2008 the health and safety committee the Personal Appraisal and Development Program) continued to focus on broader OH&S issues which affect and available learning programs to ensure an effective the organisation, including improved incident reporting, transference of relevant knowledge. vaccination/immunisation, review of safety requirements contained in standard operating instructions and Learning and Development highlights for 2007/2008 included: improving the organisations safety culture. Members of the • Further awarding of Certificates 2 & 3 in Water Industry committee visited Safety In Action the largest safety trade Operations (presentations conducted December 2007): show in Australia to look for innovative safety solutions that could be adopted by Goulburn Valley Water. Health and • 10 employees received Certificate 2; Safety Representative refresher training was carried out • 23 employees received Certificate 3; for all committee members which included opportunity for 61 review of the committee functions and objectives. • Fully integrated coordination of Certificate Training by Human Resource Services; A small working group completed a review of Goulburn • Development and commencement (May 2008) of the Valley Water’s health and safety culture. The review Professional Development Program – giving business included gathering and analysing a range of information skills to a diverse range of employees; from a variety of sources. The working group identified the Corporation already has a strong culture of health • Training needs analysis via the annual Personal Appraisal and safety upon which it can further build and progress & Development Program for identification of appropriate towards best industry practice. Under the guidance of learning needs for all employees; and the health and safety committee the implementation of • The provision of study assistance to employees recommendations from the review will be implemented undertaking relevant post-graduate studies. over the coming two years. While the Lost Time Hours Rate for 2007/2008 was slightly Employee Statistics lower than last year’s rate it remains high due to one long The table below compares figures for 2007/2008 with term injury where there is limited, or no capacity, for return 2006/2007. to work due to the employee’s pre-injury duties.

Employees as at 30 June 2008 Employees as at 30 June 2007 Female FTE Male FTE TOTAL Female FTE Male FTE TOTAL Executive Management044044 Managers 0141411314 Administrative/Technical 34 48 82 34.86 47 81.9 Operations 2.4 66.9 69.3 3 71.9 74.9 Customer Service Centre055145 TOTAL 174.3 179.8

Organisational Capability Lost Time Incident Frequency Rate (YTD)

62 Lost Time Hours Rate (YTD)

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Health and Safety Training Health and safety training continues to be a major focus of the Corporation’s training activities. The following list includes regular health and safety training, with the number of employees who completed the training for 2007/2008 in brackets ():

• Asbestos Removal (9) • Chainsaw (7) • Chemical User (2) • Chemical User Refresher (1) • Confined Space Entry (inc refresher) (84) • D Class Electrical Licence (1) OH&S Management System • Defensive Driver (21) Goulburn Valley Water continued to successfully maintain • Dogger (6) and improve its OHS Management System. The management system fully met external auditing and continues to be • Front End Loader / Backhoe (5) certified to the Australian / New Zealand standard for OHS Management Systems AS/NZS 4801 2001. • Fire Safety (38) • First Aid Level 2 (inc refresher) (71) IT • Hazardous Area Basics (8) Several IT infrastructure projects have been completed • Height/Roof Awareness (51) throughout 2007/2008 with the most significant being • OHS Reps Refresher (7) the installation of Storage Area Networks (SANs) at both primary and secondary data centres to provide additional 63 • OHS Rep 5 day (6) storage capacity and off site data replication. • OHS Construction Induction Training (Red Card) (67) During the year the Corporation’s IT group deployed • Electrical Safety Spotter (5) the Microsoft System Centre Configuration Manager to automate software updates and application deployment as • Traffic Control & Management (2) well as providing live IT asset management and reporting. • Trenching & Shoring (2) A key element of the Corporation’s mobile computing A six year OH&S Refresher Training Program was strategy is the deployment of corporate applications using implemented in October 2007 with the aim of running two Citrix, because it provides fast secure access to what are, refresher training sessions of OH&S training annually. The slow connections. During 2007/2008 the Citrix servers refresher training program covers the following: confined were upgraded to deliver more applications to remote and space entry, first aid/CPR electrical safety spotter, manual wirelessly connected users. handling, traffic control, excavation and height awareness. Upgraded data services to Tatura, Kyabram and Tongala water treatment plants have been installed to bring those WorkSafe Week plants onto the Corporate network using Telstra ADSL In October Goulburn Valley Water work teams participated Connect IP services. A Telstra BDSL service was also in WorkSafe Week. This annual event was promoted installed at the Alexandra Operations Centre to replace the through a range of activities including: Tai Chi and group existing ISDN service and provide staff with fast reliable fitness sessions, a Naturopathy workshop and health access to corporate systems. checks for blood pressure and glucose. Over 60 employees To ensure effective management of user support issues, had their workstation assessed by a qualified ergonomist the Corporation has developed an IT Service Desk. and Football legend Tom Hafey provided an inspiring During 2007/2008 the IT staff handled 1,646 Service presentation on the importance of teamwork, motivation Desk requests along with new projects and the continual and maintaining a healthy lifestyle. Throughout the week rolling replacement of servers, workstations, printers and healthy eating choices were promoted and employees were software upgrades. encouraged to eat fresh fruit which was provided in all lunch rooms.

Organisational Capability Case Study

Mind Body Life

Sustainability Improvement Plan Goal 1 – Ensuring Ongoing Organisational Relevance andSecond Effectiveness Fitness group participating in a body combat class Commitment 1.2 Engendering a Culture of Sustainability

To achieve a high level of awareness and commitment period and aims to developing regular exercise habits. amongst GVW staff to fostering sustainability through At the end of the program employee results showed their operational roles, decisions, and interaction with improved fi tness of at least 10 percent amongst regulators, development partners and customers participants and in some cases this was as high as 70 percent improvement. Goulburn Valley Water recognises that sustainability is not only about how the Corporation operates but the Since completing the program over half the sustainability of its staff and how they achieve a work participants have taken out an ongoing membership to life balance. the centre. Throughout 2007/2008 Goulburn Valley Water “Fresh Start” – QUIT for life program launched a range of health and wellbeing initiatives to encourage improved health and fi tness of employees. Everyone understands that giving up smoking is the best thing a person can do for their health. With Physiotherapy Sessions this in mind the Corporation offered employees the opportunity to participate in QUIT’s “Fresh Start” An alliance was developed with a local physiotherapist program. to deliver monthly physiotherapy sessions to employees on site at regional work locations. Open to Five employees completed the QUIT’s “Fresh Start” employees with work and non-work related injuries the program, meeting twice weekly after work hours to sessions encourage early management, treatment and share their experiences of smoking and their journey diagnosis of sprain and strain injuries. towards giving up cigarettes. A QUIT Educator from Goulburn Valley Health was on hand to provide Fitness Program ongoing support, with Goulburn Valley Water also contributing to the cost of nicotine replacement Together with local fi tness centres the Corporation therapy for those who chose this to assist them in sponsored a number of successful group exercise giving up smoking. and fi tness programs. Two fi tness programs were conducted in 2007/2008 with approximately 15 staff The feedback from participants was very positive Goulburnmembers from a range of business areas participating Valley and all agreed it has helped themWater to re-evaluate their Ain eachSustainable program. The program is run over a six week health and cut backBusiness on smoking. Case Study

Water Treatment Plant Operator, Rachael Lawlor (and friend) using the mobile computing platform to review critical operating data

Delivering a mobile workforce

Sustainability Improvement Plan mobile workforce that was only previously available to offi ce workers. Goal 1 – Ensuring Ongoing Goulburn Valley Water has established a VPN (Virtual Private Network) with a telecommunications provider Organisational Relevance to connect broadband wireless users directly to the and Effectiveness Corporation’s internal network enabling fast access to all corporate applications from any location with Commitment 1.3 broadband wireless coverage. Embracing Innovation A trial, which was designed to prove the viability and effectiveness of the new wireless technology has concluded with a survey of trial users. The survey Goal 2 –Ongoing Improvement results gave a clear indication that users felt the in Business Effi ciency technology is fast, easy to use and created many new opportunities for them to work more effectively and Commitment 2.1 effi ciently. The trial units are now in permanent use. Optimising Operational Systems The trial will be followed by a large scale rollout across the organisation in the 2008/2009 fi nancial year. Commitment 2.3 A number of business applications which are generally Enhanced Performance Monitoring not suited to wireless connectivity are published to remote users using Citrix servers which eliminates the As employees have become increasingly reliant on need for extremely fast connectivity between the client access to their corporate applications to perform their and the backend server. This approach delivers a user duties, the need to give mobile workers access to those experience almost identical to working in an offi ce applications has continued to grow. without the expense of developing special applications The recent rollout of high speed 3G wireless networks for the mobile environment and without the need for Goulburnwith coverage across most of our region has enabled Valley special training. Water AGoulburn Sustainable Valley Water to deliver applications to its Business Case Study nal chlorine at the Pyalong Treatment Water Plant

Ampla – Turning Monthly trend of fi scada data into information

Sustainability Improvement Plan Goal 1– Ensuring Ongoing organisational Relevance and Effectiveness Commitment 1.2 Engendering a Culture of Sustainability at GVW To achieve a high level of awareness and commitment amongst GVW staff to fostering sustainability through their operational roles, decisions, and interaction with regulators, development partners and customers The ability to monitor and control a large number of assets distributed over a signifi cant area has allowed Goulburn Valley Water to derive excellent value from its SCADA system over several years. Information gained from analysis of data acquired by the SCADA system is essential in the management of water and wastewater sites across the Corporation’s region. However, accessing the knowledge hidden in vast quantities of raw data has been time consuming and problematic. Goulburn Valley Water set out to rectify this situation by installing an appropriate system to store data and provide tools to assist interpretation. Ampla, Citect’s Manufacturing and Execution System (MES) system was implemented after an extensive investigation and successful pilot. The nature of the system allows users to obtain and manipulate historical data, applying their knowledge and experience to turn data into useful information. This presents both operators and management with a new view of their operational assets. It provides greater insight allowing action to be taken to improve the Corporation’s operational effectiveness. Goulburn Valley Water is also spreading the good news about its Ampla implementation. The project was recently a fi nalist in the 2008 PACE Zenith awards which publicly recognise and reward companies that show leadership in engineering and technological excellence and innovation. Actively pursuing awards to highlight the Corporation’s commitment and achievements along with partners is Goulburnanother action under commitment 1.2 of the Sustainability Valley Improvement Plan. Water A Sustainable Business Goulburn Valley Water 2007 / 2008 Annual Report

Business Performance and Compliance

Business Performance 2008 2007 2006 2005 2004 $’000 $’000 $’000 $’000 $’000 Total Revenue 49,065 46,639 45,338 48,224 47,235 Expenses other than Depreciation 35,382 31,263 31,368 29,421 24,940 Depreciation 13,403 13,108 13,507 13,483 12,847 Net Profit After Tax 183 1,580 321 3,722 9,448 Total Assets 520,710 497,134 483,361 485,599 457,317 Borrowings 49,451 31,377 27,121 27,895 11,228 67 Shareholders Equity 427,261 427,078 425,497 431,167 437,424 Return on Assets 0.47% 0.7% 0.49% 1.37% 2.26% Gearing Ratio 0.095 0.06 0.06 0.06 0.03 Interest Cover Ratio 1.13 3.0 1.40 14.27 13.14

Water Plan Essential Service Commission Audit Goulburn Valley Water submitted its second water plan As part of the economic regulatory framework, to the Essential Services Commission during the year. Goulburn Valley Water is required to report on a range of The Plan sets the proposed price path for the regulatory performance criteria to the Essential Services Commission period from July 2008 to June 2013 and makes provision (ESC). For the third consecutive year, the ESC required for the necessary funds and resources to address statutory an independent audit of the 56 performance standards obligations and key activities of the Corporation. and obligations reported by Goulburn Valley Water. BECA The Corporation embraced wide ranging strategies to carried out the independent audit on behalf of the ESC. engage the community throughout the development of the Plan. The resulting holistic Water Plan addresses the The audit reviewed and scored the adequacy, maintenance community’s concerns and suggestions, where appropriate, and implementation of business reporting systems in addition to providing a platform for sustainable including policies, practices, procedures and data collation development throughout the regulatory period and beyond. systems as well as the accuracy and validity of data. A number of studies informed the development of the Plan, The auditors found ongoing improvement of Goulburn including the water supply demand strategy – GVW2055 Valley Water’s practices and procedures, the development and the 20 year Infrastructure Program. These and other and maintenance of databases for storing and retrieving strategies are facilitating timely and efficient augmentation regulatory data and improvement in data reliability over the and upgrade of infrastructure to accommodate forecast past 12 months. development and improved service levels in towns throughout the Goulburn Valley. To that end, a key goal of Of the 56 performance indicators, 48 were graded A while the Water Plan is to invest an estimated $113 million in new the remaining 8 were graded B (an improvement of +6% A’s and upgraded infrastructure over the five years to 2013. compared to last year).

Business Performance and Compliance All performance indicators scored were within ±10% same footing. Goulburn Valley Water has operated in accuracy. Two, relating to sewer spills, were not graded a manner that meets the National Competition Policy as there were no reported spills from emergency relief compliance requirements. structures or pumping stations during the audit period. The Auditor made a number of business improvement Freedom of Information Act 1982 recommendations including: Goulburn Valley Water is considered to be a “Government Agency“ under the terms of the Freedom of Information Act • Ongoing improvement of data integrity; and 1982. Accordingly, it is required to comply with procedures • Further procedure revision and/or development. that have been prescribed under which members of the public may gain access to information held by agencies. A decision The results of this independent regulatory audit reflect the to release information is made by an Authorised Officer. superior business performance of Goulburn Valley Water and its staff confirming the continued improvement in The following officers have been appointed in accordance processes and systems actioned over the period. with the provisions of the Freedom of Information Act 1982; Principal Officer – Managing Director Capital Works Authorised Person – General Manager – Corporate Services Goulburn Valley Water continued its significant capital An application fee of $22.70 applies at the time of this works program in 2007/2008, with expenditure of over report’s publication. In the 2007/2008 reporting period $25.4 million on 97 projects. This expenditure included there was one written request for information under FOI. capital works brought forward in response to managing and This request was accompanied by the relevant application securing a water supply for drought affected townships. fee and was granted and the information released. During this period a request from 2006/2007 was finalised and Consultancies the information released in December 2007. A number of consultants were engaged to carry out specific tasks during the year. There were six separate There were no hearings or appeals in relation to FOI engagements costing a total of $61,897. matters for 2007/2008. During 2007/2008 no consultancies of over $100,000 Information Prepared were entered into. and Available Contracts Over/Less The information listed in Financial Reporting Direction 22 of the Financial Management Act 1994 is held at Goulburn than $10 Million Valley Water’s office in Shepparton and is available on During 2007/2008 the Corporation did not enter into request, subject to the Freedom of Information Act 1982 68 any contracts valued over $10 million. 58 contracts were and the Information Privacy Act 2000. entered into with a value of less than $10 million. Whistleblowers Building Act 1993 Goulburn Valley Water has developed procedures in During the reporting period, the Corporation met relevant accordance with Section 68(3) of the Whistleblowers compliance provisions of the Building Act 1993 in building Protection Act 2001 which comply with the Ombudsman’s and maintenance activities. Guidelines. The main objective of the Whistleblowers Protection Act 2001 is to encourage and facilitate the Victorian Industry making of disclosures of improper conduct or detrimental Participation Policy (VIPP) action by public officers and public bodies. Goulburn Valley Water has implemented procedures Disclosures of improper conduct or detrimental action by Goulburn in accordance with Section 9 of the Victorian Industry Valley Water or its employees may be made to the following: Participation Policy Act 2003. The VIPP forms part of our The Protected Disclosure Coordinator consultancy handbook which is issued to all consultants Name: Danny Hogan undertaking projects for the Corporation. The handbook Title: General Manager – Corporate Services requires consultants to ensure the VIPP forms part of all Address: PO Box 185, Shepparton, 3632 Tender documentation. There were no contracts that were Phone: (03) 5832 0442 entered into by Goulburn Valley Water where VIPP applied. Alternatively, disclosures of improper conduct or detrimental action by Goulburn Valley Water or its Government Contributions employees may also be made directly to the Ombudsman. Government Contributions from the Department of Human The Ombudsman Victoria Services totalling $1.4 million were received in 2007/2008. Level 9, 459 Collins Street (North Tower) This contribution is in support of the proposed fluoridation Melbourne VIC 3000 projects in Cobram, Kyabram and Seymour. Telephone: (03) 9613 6222 Toll free: 1800 806 314 National Competition Policy website: www.ombudsman.vic.gov.au Email: [email protected] Neutrality is a guiding principle of the National Competition Policy. It requires that Government owned businesses During 2007/2008 no disclosures were made under the should compete with private sector businesses on the Whistleblowers Protection Act 2001.

Running Water from the Mountains to the Murray Case Study

Sustainability Assessment Tool

Sustainability Improvement Plan Goal 2– Ongoing Improvement in Business Effi ciency Commitment 2.3 Enhanced Performance Monitoring To enhance GVW’s current monitoring and measuring systems to assist ongoing improvement in business performance and the delivery of sustainability outcomes consistent with GVW’s operating policies. The Sustainability Action Plan established actions to assess and determine the most appropriate sustainability decision support tools, and then use these tools to assess projects and other operational decisions. Triple bottom line (TBL) tools are increasingly being used by organisations incorporating sustainability considerations such as fi nancial, environmental and social criteria to improve decision making. Goulburn Valley Water’s sustainability team reviewed various TBL tools, including Melbourne Water’s Triple Bottom Line Guidelines, Gippsland Water’s Sustainability Assessment Tool for capital projects and the Water Services Association of Australia’s (WSAA) Sustainability Framework. None of these tools was deemed suitable for Goulburn Valley Water in their entirety, so a hybrid model was developed to better suit the Corporation’s needs, typical projects and the expectations of local communities. The TBL tool developed by the Corporation, called the Sustainability Assessment Tool, is a spreadsheet and facilitates a project team assessing sustainability via four criteria – economic, environmental, social and technical. The human health criterion recommended by WSAA has been incorporated into the social criterion. The Sustainability Assessment Tool is now being used to select the most sustainable project option during such tasks as developing the capital project plan, selecting preferred instrumentation and equipment for listing in the product manuals. It is also expected that the Sustainability Assessment Tool will be suitable for assessing strategic planning scenarios, prioritisation of capital projects, selection of successful tenders and operational Goulburndecision making. Valley Water A Sustainable Business Risk Management Compliance Attestation

I, Peter Quinn certify that Goulburn Valley Water has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The audit committee verifies this assurance and that the risk profile of Goulburn Valley Water has been critically reviewed within the last 12 months.

C.L. Scott Deputy Chairman Date: 3rd September 2008

70

Running Water from the Mountains to the Murray Performance Reporting

Financial Performance Indicators Indicator 2006/2007 2007/2008 2007/2008 Variance (%) Result Result Target Long Term Profitability 0.7% 0.47% 0.53% -11% Owner’s Investment 0.4% 0.04% 0.08% -46% Long Term Financial Viability 6.3% 9.5% 9.2% 4% Liquidity and Debt Servicing (Interest Cover) 2.97 1.13 1.23 -8% Immediate Liquidity and Debt Servicing (Cash 13.32 6.89 6.36 8% Cover) 71 Operating Efficiency Water Supply/ Wastewater Collection Water Supply Bulk Water Supply Reticulation $225.33 $265.46 $198.75 34% Water Supply Treatment $374.29 $488.52 $312.74 56% Wastewater Reticulation $364.45 $422.58 $357.13 18% Wastewater Treatment $525.21 $612.18 $547.13 12%

Variance Report –Financial water volume flows as a result of the drought. Reticulation Performance Indicators costs are 10% over-budget whilst the volume of water supplied is under-budget 18% as customers implement The trading result achieved for the year is less than the water conservation practices and abide by the water Corporate Plan target because costs are slightly greater restrictions. than target. This has resulted in unfavourable variances for the Long Term Profitability, Owner’s Investment and The Water Supply Treatment indicator has been severely Liquidity and Debt Servicing indicators. affected by unbudgeted water trucking costs and reduced water volume flows as a result of the drought. Treatment The Long Term Financial Viability indicator is unfavourable. costs are 28% over budget whilst the volume of water Debt is greater than target due to capital and recurrent treated is under budget 18%. expenditure for the year being more than forecast in meeting drought related issues. Although there has been a nominal under budget result in actual Wastewater Reticulation costs and a 6% The Immediate Liquidity and Debt Servicing indicator is under budget result in Wastewater treatment costs the better than target as net interest payments are below target. Wastewater Reticulation and Treatment costs per megalitre All Operating Efficiency indicators are recording have increased due to a 16% under budget result in the unfavourable variances. megalitres carried by the reticulation system and treated by the wastewater management facilities. Drought conditions The Water Supply Reticulation indicator has been impacted reduce flows as there is less groundwater infiltration and by higher than forecast maintenance costs and reduced customer flows.

Highlights Service Performance Indicators Water Supply Interruptions Indicator 2006/2007 2007/2008 2007/2008 Variance (%) Result Result Target Number of customers receiving 3 or more 243 217 160 39% unplanned interruptions in the year

Variance Report –Water Supply Interruptions The number of customers experiencing three or more interruptions declined compared to 2006/2007, but remains above the target. The eight water mains that experienced either three or four failures in 2007/2008 have either been replaced already, or are being investigated regarding replacement as part of the Corporation’s ongoing program for replacement of water mains with a history of frequent failures.

Interruption Time Indicators

Indicator 2006/2007 2007/2008 2007/2008 Variance (%) Result Result Target Average duration of unplanned water supply 121 minutes 111 minutes 90 minutes 23% interruptions Average duration of planned water supply 106 minutes 101 minutes 120 minutes -16% interruptions

Variance Report – Interruption Time Indicators The average duration of water supply interruptions is a measure of the total customer time to restore water supply divided by the number of events. The duration of unplanned interruptions is very dependent on the location and type of failure. For example, a cracked pipe near a works depot may be fixed in less than one hour. A failure of a large pipe in a more remote location can take several hours to repair. In 2007/2008 there was a reduction in the average duration of unplanned interruptions compared to the previous year. The 72 Corporation has investigated its work practises and response times, and believes that the target is unrealistic considering the location of its assets and current resources. A higher target of 113 minutes has been adopted for future years. The duration of planned water supply interruptions varies depending largely on contractor activity related to new subdivisional development. Conditions on these contractors are designed to ensure that compliance with the performance target is achieved, and these conditions were strictly enforced in 2007/2008.

Restoration of Water Supply Indicator 2006/2007 2007/2008 2007/2008 Variance (%) Result Result Target Unplanned water supply interruptions restored 97% 98% 98% 0% within 5 hours

Reliability of Wastewater Collection Services Indicators

Indicator 2006/2007 2007/2008 2007/2008 Variance (%) Result Result Target Sewer spills from reticulation and branch sewers 55 50 No target set (priority 1 and 2) Sewage spilt from emergency relief structures 0 < 0.001 No target set and pumping stations (% of volume transported)

Sewer Spills Contained Within 5 Hours Indicator 2006/2007 2007/2008 2007/2008 Variance (%) Result Result Target Sewer spills contained within 5 hours 100% 100% 100% 0% All sewer spills were contained within 5 hours as a result of our workforce responding promptly to these system failures.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Customer Complaints Indicators Indicator 2006/2007 2007/2008 2007/2008 Variance (%) Result Result Target Water quality complaints per 1,000 customers 6.8 4.3 6.3 -32% Water supply reliability complaints per 1,000 customers 1.3 1.5 No target set Sewerage service quality and reliability complaints 0.16 0 No target set per 1,000 customers Affordability complaints per 1000 customers 0.08 0.08 No target set - Billing complaints per 1,000 customers 0.08 0.21 No target set Pressure complaints per 1,000 customers 2.8 2.2 No target set Sewage odour complaints per 1,000 customers 1.3 0.98 1 -2% Other complaints per 1,000 customers 0.6 2.3 No target set

Variance Report – Customer Complaint Indicators In respect to water quality complaints per 1,000 customers, a noticeable improvement occurred due to improved overall water treatment performance and an absence of any major plant failure. The result is still adversely affected by the water shortage in the Sunday Creek supply system which curtailed the regular flushing program. Environmental Performance Indicators Recycled Water Reuse by Wastewater Management Facility Wastewater management facilities 2006/2007 2007/2008 Target (%) Variance Effluent Reuse (Volume) Result (%) Result (%) 2007/2008 % Alexandra 44 45 22 105% Avenel 01000 0% Bonnie Doon 100 100 100 0% Broadford 100 100 100 0% Cobram 100 100 100 0% Eildon 0000% 73 Euroa 100 100 100 0% Girgarre 0000% Kilmore 100 100 100 0% Kyabram/Merrigum 100 100 100 0% Mansfield 100 100 100 0% Marysville 100 100 100 0% Mooroopna 100 100 100 0% Murchison 0000% Nagambie 100 100 100 0% Nathalia 100 100 100 0% Numurkah 100 100 100 0% Seymour 100 100 100 0% Shepparton 78 91 60 52% Stanhope/Rushworth 0000% Strathmerton 0000% Tatura 100 100 100 0% Tongala 100 100 100 0% Upper Delatite 100 100 100 0% Violet Town 01000 0% Yea 100 100 100 0% Total 86 93 75 24%

Variance Report – Recycled Water Reuse by Wastewater Management Facility Due to the drought conditions, the percentage of recycled water used at Shepparton and Alexandra increased. This significantly increased the total volume reused which was well above the long-term average.

Performance Reporting Biosolids Use by Wastewater Management Facility Wastewater management facilities 2006/2007 2007/2008 Target (%) Variance Biosolids Use (Dry Mass) Result (%) Result (%) 2007/2008 % Alexandra 0 0 No Target set 0 Avenel 00No Target set0 Bonnie Doon 00No Target set0 Broadford 909% 0 No Target set 0 Cobram 00No Target set0 Eildon 00No Target set0 Euroa 00No Target set0 Girgarre 00No Target set0 Kilmore 00No Target set0 Kyabram/Merrigum 00No Target set0 Mansfield 00No Target set0 Marysville 00No Target set0 Mooroopna 00No Target set0 Murchison 00No Target set0 Nagambie 00No Target set0 Nathalia 00No Target set0 Numurkah 0 1,207% No Target set 0 Seymour 00No Target set0 Shepparton 00No Target set0 Stanhope/Rushworth 00No Target set0 Strathmerton 00No Target set0

74 Tatura 00No Target set0 Tongala 512% 0 No Target set 0 Upper Delatite 00No Target set0 Violet Town 00No Target set0 Yea 0 0 No Target set 0 Total 115% 62% Note Goulburn Valley Water has not set individual targets for each wastewater management facility. Instead it has set a Corporation wide target to reuse its total biosolids inventory over 30 years.

Variance Report – Biosolids Use by Wastewater Management Facility Due to the nature of Goulburn Valley Water’s lagoon based treatment systems, biosolids accumulate in lagoons until removed by dredging, on average every 15 to 20 years. Reuse can therefore occur infrequently and reuse figures will often be greater than 100% and in some cases in the thousands of percent greater than what is produced annually.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Wastewater Treatment Standards by Wastewater Management Facility Number of Analysis Complying with Licence Agreements as 2006/2007 2007/2008 2007/2008 % of Samples Result (%) Result (%) Target (%) Alexandra 100 100 100 Avenel 100 100 100 Bonnie Doon 100 100 100 Broadford 100 100 100 Cobram 100 100 100 Eildon 84 100 100 Euroa 100 100 100 Girgarre 100 100 100 Kilmore 100 100 100 Kyabram 100 100 100 Mansfield 100 100 100 Marysville 100 100 100 Mooroopna 100 100 100 Murchison 100 100 100 Nagambie 100 100 100 Nathalia 100 100 100 Numurkah 100 100 100 Seymour 100 100 100 Shepparton 100 100 100 Stanhope/Rushworth 100 100 100 Strathmerton 100 100 100

Tatura 100 100 100 75 Tongala 100 100 100 Upper Delatite 100 100 100 Violet Town 100 100 100 Yea 100 100 100

Variance Report – Wastewater Treatment Standards by Wastewater Management Facility All wastewater management facilities complied with the EPA Corporate Licence environmental performance conditions for treated wastewater discharge to land and the limits for discharge to water.

Performance Reporting Goulburn Valley Region Water Corporation

Statement of Performance for 2007/2008

In our opinion, the accompanying Statement of Performance of Goulburn Valley Region Water Corporation in respect of the year ended 30 June 2008 is presented fairly in accordance with the Financial Management Act 1994. The statement outlined the relevant performance indicators as determined by the responsible Minister, the actual results achieved for the year against pre-determined performance targets, and an explanation of any significant variance between the actual results and performance targets. As at the date of signing, we are not aware of any circumstance which would render any particulars in the Statement to be misleading or inaccurate.

C.L. Scott P.A. Quinn Deputy Chairman Managing Director Date: 3rd September 2008

76

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

77

Performance Reporting 78

Running Water from the Mountains to the Murray Financial Statements

30 June 2008 Contents Page

Operating Statement 80 Balance Sheet 81 Statement of Changes in Equity 82 Cash Flow Statement 82 Notes to the Financial Statements 83-104 Certification of Financial Statements 105 79 Independent Audit Report 106

Financial Statements - 30 June 2008 Operating Statement for the year ended 30 June, 2008 Note 2008 2007 $’000 $’000

Revenue from Operating Activities

Fees and Charges 3 39,669 38,229 Developer and Land Owner Contributions 4 5,746 6,335 Government Contributions 5 1,400 - Interest Revenue 6 622 689 Other Revenue 7 1,628 1,386 Total Revenue 49,065 46,639

Expenses of Operating Activities

Direct Expenses 8 35,977 32,760 Administration Expenses 9 8,559 8,270 Environmental Contribution 1(q) 1,500 1,500 Borrowing Costs 10 2,749 1,841 Total Expenses 48,785 44,371

Profit before Income Tax 280 2,268

Income Tax Expense 11 97 688

80 Profit for the Year 183 1,580

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

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Balance Sheet as at 30 June, 2008 Note 2008 2007 $’000 $’000

ASSETS Current Assets Cash and Cash Equivalents 12 4,801 - Receivables 13 10,478 10,546 Prepayments 383 258 Inventories 14 688 627 Biological Assets 15 495 415 Total Current Assets 16,845 11,846

Non-Current Assets Receivables 13 6,318 7,183 Property, Plant and Equipment 16 478,857 463,510 Deferred Tax Assets 17 18,690 14,595 Total Non-Current Assets 503,865 485,288 Total Assets 520,710 497,134

LIABILITIES Current Liabilities Payables 18 8,657 7,814 Interest Bearing Liabilities 19 2,213 4,926 Employee Benefits 20 3,231 2,959 Total Current Liabilities 14,101 15,699

81 Non-Current Liabilities Interest Bearing Liabilities 19 47,238 26,451 Employee Benefits 20 169 157 Deferred Tax Liabilities 21 31,941 27,749 Total Non-Current Liabilities 79,348 54,357 Total Liabilities 93,449 70,056 Net Assets 427,261 427,078

EQUITY Contributed Capital 22 234,284 234,284 Reserves 23 23,268 23,268 Retained Profits 24 169,709 169,526 Total Equity 427,261 427,078 The above Balance Sheet should be read in conjunction with the accompanying notes

Financial Statements - 30 June 2008 Statement of Changes in Equity for the year ended 30 June, 2008 Note 2008 2007 $’000 $’000

Total Equity at the beginning of the Financial Year 427,078 425,498 Net Income recognised directly in equity - - Profit for the year 183 1,580 Total recognised income and expense for the year 183 1,580

Total Equity at the end of the Financial Year 427,261 427,078 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Cash Flow Statement for the year ended 30 June, 2008

Cash Flows from Operating Activities Receipts from Customers (inclusive of goods and services tax) 47,691 46,246 Grants from Government Departments 1,400 - Payments to Suppliers and Employees (inclusive of goods and (35,498) (31,499) services tax) Interest and Bill Discounts Received 631 710 Interest and Other Costs of Finance Paid (2,605) (1,817) Net Cash Inflow from Operating Activities 25 11,619 13,640

82 Cash Flows from Investing Activities Proceeds from Sale of Property, Plant and Equipment 522 658 Payments for Property, Plant and Equipment (25,415) (19,761) Net Cash (Outflow) from Investing Activities (24,893) (19,103)

Cash Flows from Financing Activities Proceeds from Borrowings 23,000 - Repayment of Borrowings (445) (225) Net Cash (outflow) Inflow from Financing Activities 22,555 (225)

Net Increase (Decrease) in Cash held 9,281 (5,688) Cash at the beginning of the Financial Year (4,480) 1,208 Cash at the end of the Financial Year 12 & 19 4,801 (4,480)

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

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Note 1 Summary of Significant Accounting Policies

1(a) Basis of Accounting General This financial report of Goulburn Valley Region Water Corporation is a general purpose financial report that consists of an Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes accompanying these statements. The general purpose financial report complies with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, and the requirements of the Financial Management Act 1994 and applicable Ministerial Directions. As the Corporation is a not-for-profit entity, specific clauses of the Australian Accounting Standards that apply to not-for-profit entities have been applied. This financial report has been prepared on an accrual and going concern basis.

Accounting policies Unless otherwise stated, all accounting policies applied are consistent with those of the prior year. Where appropriate, comparative figures have been amended to accord with current presentation and disclosure made of material changes to comparatives.

Classification between current and non-current In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be realised or paid. The asset or liability is classified as current if it is expected to be turned over within the next twelve months, being the Corporation’s operational cycle – see 1(o) for a variation in relation to employee benefits.

Rounding Unless otherwise stated, amounts in the report have been rounded to the nearest thousand dollars.

Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and certain classes of property, plant and equipment.

Critical accounting estimates The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the entity’s accounting policies. 83 1(b) Name Change Effective from 1 July, 2007 the name of the Corporation was changed from the Goulburn Valley Region Water Authority under Section 85(1) of the Water Act 1989, inserted by Section 54 of the Water Governance Act 2006. Accordingly, the reporting entity for the financial year 1 July 2006 to 30 June 2007 was the Goulburn Valley Regional Water Authority and the comparative amounts of those financial statements have been prepared on that basis.

1(c) Revenue Recognition Revenue is brought to account when services have been provided or when tariffs and fees have been levied. Water and sewerage charges by measure are recognised as income when the service has been used. Meter reading is cyclical and, therefore, an estimation is made at the end of each accounting period for water services used by customers and recorded on meters which have not yet been read. Gains or losses on disposal of non-current assets are calculated as the difference between the gross proceeds on sale and their written down value. Contributions for capital works from all sources are normally treated as revenue and are disclosed in the notes to the financial statements as landowner contributions and headworks fees. Landowner contributions represent assets acquired at no cost to the Corporation. The fair value of these assets are recognised as revenue upon their acceptance by the Corporation for maintenance in perpetuity. Developers are required to make fair and reasonable contributions towards the cost of developing the Corporation’s water supply distribution and sewerage disposal systems. These contributions are recorded as ‘headworks fees’ and are recognised as revenue upon receipt. Government grants are recognised as revenue on receipt or when an entitlement is established, whichever is the sooner. However, grants received from the Victorian State Government for specific capital projects where the Minister for Finance and the Minister for Water have indicated the grant is in the nature of owners’ contributions are accounted for as equity and disclosed in the Balance Sheet as Contributed Capital. Interest and rental are recognised as revenue when earned or the service is provided.

Financial Statements - 30 June 2008 1(d) Income Tax For the financial year 2001-02, the Corporation was subject to the rules applicable under the State Equivalent Tax Regime administered by the Victorian Department of Treasury and Finance. The Corporation was notified by the Treasurer, of the Government’s decision to direct Regional Water Authorities to become subject to the National Tax Equivalent Regime (NTER) from 1 July, 2002. The NTER is administered by the Australian Taxation Office. The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on current income tax rates adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

1(e) Receivables Revenue is measured at the fair value of the consideration received or receivable. Receivables are recognised initially at fair value less allowance for doubtful debts. Current receivables are due for settlement no more than 28 days from the date of recognition for water, sewerage and trade waste receivables. Non-Current receivables relate to trade waste customers for charges raised to meet the cost of extending our wastewater treatment and re-use facilities. These receivables are due for settlement by instalments over terms up to 15 years. Commercial interest charges apply to outstanding balances. Collectibility of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for impaired receivables is established when there is objective evidence that the Corporation will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the operating statement.

1(f) Inventories 84 Inventories consist of stores and materials used by the Corporation in construction, repairs and maintenance of works. Stores and materials are valued at the lower of cost and net realisable value. Costs are assigned to stores and materials on the basis of weighted average cost.

1(g) Biological Assets Biological assets consist of livestock held on the Corporation’s wastewater re-use facilities. Livestock is valued at net market value.

1(h) Recognition and Measurement of Property, Plant and Equipment Property, plant and equipment represent non-current assets comprising land, buildings, water and sewerage infrastructure, heritage assets, plant, equipment and motor vehicles, used by the Corporation in its operations. Items with a cost or value in excess of $1,000 and a useful life of more than one year are recognised as an asset. All other assets acquired are expensed.

Acquisition The purchase method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets at the date of exchange, plus costs directly attributable to the acquisition. Where assets are constructed by the Corporation, the cost at which they are recorded includes an appropriate share of fixed and variable overheads. Assets acquired at no cost or for nominal consideration by the Corporation are recognised at fair value at the date of acquisition.

Repairs and Maintenance Routine maintenance, repair costs and minor renewal costs are expensed as incurred. Where the repair relates to the replacement of a component of an asset and the cost exceeds the capitalisation threshold, the cost is capitalised and depreciated.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Carrying Amount Land and buildings are measured at the amounts for which assets could be exchanged between knowledgeable, willing parties, in an arm’s length transaction. Infrastructure, plant, equipment and vehicles are measured at cost less any accumulated depreciation and any accumulated impairment losses. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the operating statement. When revalued assets are sold, it is the Corporation’s policy to transfer the amounts included in other reserves in respect of those assets to retained profits. All assets must be tested for impairment on an annual basis. Such assets are tested to ascertain whether the carrying amounts exceed their recoverable amounts.

Revaluations Land and buildings are revalued with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value. This revaluation process occurs at least every five years. Revaluation increments or decrements arise from differences between an asset’s carrying amount and fair value at the date of the valuation. Land and Building assets are subject to an interim fair value assessment during the five year revaluation cycle. The assessment of Land assets is done by way of reference to Valuer-General Land indexation factors that apply for the current financial year. The assessment of Building assets is done by way of reference to Department of Sustainability and Environment Building indexation factors that apply for the current financial year. As at 30 June, 2008 it has been determined that there is no evidence of a material movement in the value of Land and Building assets of the Corporation. Revaluation increments are credited directly to equity in the revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as expense in determining profit or loss, the increment is recognised as revenue in determining profit or loss. Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the revaluation reserve in respect of the same class of assets, they are debited to the revaluation reserve. Revaluation increases and revaluation decreases relating to individual assets within a class of assets are offset against one another, within that class, but are not offset in respect of assets in different classes.

Impairment of Assets Property, plant and equipment are assessed annually for indicators of impairment. If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their 85 recoverable amount. Where an asset’s carrying amount exceeds its recoverable amount, the difference is written-off by a charge to the operating statement except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. An impairment loss on a revalued asset is recognised directly against any revaluation reserve in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation reserve for that same class of asset. A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading revaluation reserve. However, to the extent that an impairment loss on the same class of asset was previously recognised in the operating statement, a reversal of that impairment loss is also recognised in the operating statement.

Financial Statements - 30 June 2008 1(i) Depreciation of Property, Plant and Equipment All fixed assets with the exception of land are depreciated using the straight line method to write off the cost or revalued amount of each item, net of residual values, over its estimated useful life to the Corporation. Where assets have separate identifiable components that have distinct useful lives and/or residual values, a separate depreciation rate is determined for each component. The estimated useful lives of each group of assets have been reviewed during the year, and adjustments made where required. The estimated useful lives are as follows: Buildings 30 to 50 years Infrastructure Assets 5 to 100 years Plant and Equipment 1 to 20 years

1(j) Borrowing Costs Borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing costs include interest on bank overdrafts, interest on borrowings and finance lease charges.

1(k) Payables These amounts represent liabilities for goods and services provided to the Corporation prior to the end of the financial year, which are unpaid. The amounts are unsecured and are usually paid within 60 days of recognition.

1(l) Interest Bearing Liabilities Interest bearing liabilities are initially recognised at fair value, net of transaction costs incurred. They are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the operating statement over the period of the loans, using the effective interest method. Interest bearing liabilities are classified as current liabilities unless the Corporation has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

1(m) Provisions Provisions are recognised by the Corporation when a present legal or constructive obligation exists as a result of a past event that will require an outflow of resources to settle the obligation. The amount of the 86 outflow required must be able to be reliably estimated. Provisions are not recognised for future operational losses.

1(n) Provision for Dividend An obligation to pay a dividend only arises after consultation between the Board, the Minister for Water and the Treasurer. Following this consultation a formal determination is made by the Treasurer. Although this process has not yet been completed at the reporting date, the Board’s preliminary dividend estimate in respect of the current year is nil. Dividends are prescribed by the State Government in accordance with the Public Authorities (dividends) Regulations 1993.

1(o) Employee Benefits Employee Benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions made in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values, using the remuneration rate expected to apply at the time of settlement. Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured at the present value of estimated future cash outflows to be made by the Corporation, in respect of services provided by employees up to the reporting date. Regardless of the expected timing of settlements, provisions made in respect of employee benefits are classified as a current liability, unless there is an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date, in which case it would be classified as a non current liability.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Superannuation A liability or asset in respect of defined benefit superannuation is recognised in employee benefits liabilities and is measured as the difference between the present value of employees’ accrued benefits at the reporting date and the net market value of the superannuation plan’s assets at that date. The present value of accrued benefits is based on expected future payments which arise from membership of the plans to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using rates of national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows. The amount charged to the operating statement in respect of superannuation represents the contributions made to the superannuation plan, adjusted by the movement in the defined benefit plan liability or surplus.

Employee Benefit On-Costs Employee benefit on-costs, including payroll tax and Workcover, are recognised and included in employee benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities.

Performance Payments Performance payments for the Corporation’s Executive Officers are based on a percentage of the annual salary package provided under their contracts of employment. A liability is recognised and is measured as the aggregate of the amounts accrued under the terms of the contracts to balance date.

1(p) Goods and Services Tax Revenues, expenses and assets are recognised net of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Balance Sheet. Cash flows arising from operating activities are disclosed in the Cash Flow Statement on a gross basis – ie. inclusive of GST. The GST component of cash flows arising from investing and financing activities which is recoverable or payable to the ATO is classified as operating cash flows.

1(q) Environmental Contributions The Water Industry (Environmental Contributions) Act 2004 amended the Water Industry Act 1994 to make 87 provision for environmental contributions to be paid by water supply corporations. The Act establishes an obligation for corporations to pay into the consolidated fund annual contributions in accordance with a pre-established schedule of payments, which sets out the amounts payable by each Corporation. The purpose for the environmental contribution is set out in the Act, and the funds may be used for the purpose of funding initiatives that seek to promote the sustainable management of water or address water-related initiatives. This schedule of payments has been set for the period 1 July, 2008 to 30 June, 2012. This environmental contribution commitment for future periods has been included in Note 30 Capital and Other Commitments. The environmental contributions are disclosed separately within expenses in the Operating Statement.

1(r) Cash and Cash Equivalent Assets For the purposes of the Cash Flow Statement, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within interest bearing liabilities on the balance sheet.

Financial Statements - 30 June 2008 Note 2 Financial Risk Management Objectives and Policies The Corporation’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. This note presents information about the Corporation’s exposure to each of these risks, and the objectives, policies and processes for measuring and managing risk. The Corporation’s Board has the overall responsibility for the establishment and oversight of the Corporation’s risk management framework. The Corporation’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Corporation. The Corporation uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing analysis for credit and beta analysis in respect of investment portfolios to determine market risk. Risk management is carried out by the Corporation’s Executive Management Team under policies approved by the Board of Directors. The Finance department identifies, evaluates and manages financial risks in close co-operation with the Corporation’s objectives. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

2.1 Risk Exposures The main risks the Corporation is exposed to through its financial instruments are as follows:

(a) Market risk Market risk is the risk that changes in market prices will affect the fair value or future cash flows of the Corporation’s financial instruments. Market risk comprises of interest rate risk, foreign exchange risk and other price risk. The Corporation’s exposure to market risk is primarily through interest rate risk, with no exposure to foreign exchange risk and other price risks. Objectives, policies and processes used to address these risks are disclosed in the paragraphs below:

(i) Interest Rate Risk The Corporation’s exposure to market interest rates relates primarily to the Corporation’s long term borrowings and funds invested on the money market. The interest rate on the Corporation’s long term borrowings is fixed and therefore the Corporation is 88 not exposed to short term risk as a result of fluctuating interest rates. In addition, the maturity dates for these long term borrowings are staggered to further minimise interest rate risk in any given year. The Corporation has minimal exposure to interest rate risk through its holding of cash assets and other financial assets. Other financial assets include non-current receivables. These receivables are of fixed terms with fixed interest rates.

(ii) Foreign Exchange Risk Foreign exchange risk arises when financial instruments are recognised in a currency that is not the entity’s functional currency. The Corporation’s exposure to foreign exchange risk is nil with no instruments held in foreign currencies.

(iii) Other Price Risk The Corporation has no significant exposure to Other Price Risk.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Market Risk Sensitivity Analysis The sensitivity analysis below has taken into consideration past performance, future expectations, economic forecasts and management’s knowledge and experience of the financial markets. The Corporation believes that a movement of 0.50% in interest rates is reasonable over the next 12 months;

30 June 2008 Carrying Interest rate risk amount -0.5% (50 bp) +0.5% (50 bp) $’000 Result Equity Result Equity $’000 $’000 $’000 $’000 Financial assets Cash and Cash Equivalents 4,801 - - - - Receivables 16,796 - - - - Financial liabilities Payables 8,657 - - - - Interest Bearing Liabilities/Bor rowings 49,451 11 11 (11) (11) Total increase / (decrease) 11 11 (11) (11) Interest rate risk analysis is only applied to current interest bearing liabilities as the balance of these liabilities have fixed interest rates and staggered maturities.

(b) Credit Risk Credit risk is the risk of financial loss to the Corporation as a result of a customer or counterparty to a financial instrument failing to meet its contractual obligations. Credit risk arises principally from the Corporation’s cash and receivables and other financial assets. The Corporation’s exposure to credit risk is influenced by the individual characteristics of each customer. The receivable balance consists of a large number of residential and business customers which are spread across a diverse range of industries. Receivable balances are monitored on an on-going basis to ensure that exposure to bad debts is not significant. The Corporation has in place policies and procedures to assist customers who may be experiencing financial hardship and for the collection of overdue receivables. An analysis of the ageing of the Corporation’s receivables at reporting date has been provided in Note 13. 89 (c) Liquidity Risk Liquidity Risk is the risk that the Corporation will not be able to meet its financial obligations as they fall due. The Corporation’s policy is to settle financial obligations within 30 days and in the event of dispute make payments within 30 days from the date of resolution. The Corporation manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecasts and actual cash flows and matching the maturity profiles of financial assets and financial liabilities. In addition, the Corporation has a credit facility approved by the Treasurer of Victoria each year equal to the anticipated borrowings of the Corporation for that year. The Corporation’s financial liability maturities have been disclosed in Note 19.

2.2 Fair Valuation The fair value of financial instruments traded in active markets (such as publicly traded derivatives) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Corporation is the current bid price. The carrying value of current receivables less impairment provision and of payables is a reasonable approximation of their fair values due to their short-term nature. The fair values of non-current receivables and other financial liabilities for disclosure purposes is determined by discounting the future contractual cash flows at the current market interest rate that is available to the Corporation for similar financial instruments. The carrying amounts and aggregate net fair values of financial assets and financial liabilities at reporting date have been provided in Note 27.

Financial Statements - 30 June 2008 Note 2008 2007 $’000 $’000 Note 3 Fees and Charges

Tariffs and Charges 19,153 17,871 Metered Charges 16,915 16,670 Trade Waste Charges 2,847 2,864 Licences and Fees 754 824 39,669 38,229

Note 4 Developer and Land Owner Contributions

Landowner Contributions 4,672 5,344 Headworks Fees 1,074 991 5,746 6,335

Note 5 Government Contributions Capital Project Grant - Water 1,400 -

Note 6 Interest Revenue

Interest on Investments 31 43 Interest on Tariffs, Schemes and Charges 591 646 622 689

Note 7 Other Revenue 90 Rent/Lease 370 457 Farm Revenue 1,012 757 Miscellaneous 246 172 1,628 1,386

Note 8 Direct Expenses Purchase of Raw Water 825 775 Maintenance 6,305 5,809 Water Treatment 9,109 7,667 Sewage Treatment and Pumping 7,666 6,749 Depreciation Infrastructure 16 11,632 11,336 Loss on Sale or Disposal of Property, Plant and Equipment 440 424 35,977 32,760

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Note 2008 2007 $’000 $’000 Note 9 Administration Expenses Employee Benefits 4,459 3,972 Bad Debts Written Off 43 77 Audit Fees - External Audit (Auditor-General, Victoria) 36 41 Audit Fees - Internal Audit (Pitcher Partners) 29 41 Depreciation 16 1,771 1,772 Professional/Consulting Services 274 448 Office Expenses 761 720 Conservation and Consultation 370 505 Computer Expenses 364 294 Corporation and Associated Expenses 452 400 8,559 8,270

Employee Benefit Expenses Employee Benefit Expenses 12,666 11,587 These expenses have been allocated to: - Direct Expenses 8,207 7,615 - Administration Expense 4,459 3,972 12,666 11,587

Note 10 Borrowing Costs Interest on Bank Overdraft, Loans & Bank Charges 2,749 1,841

Note 11 Income Tax Income tax expense for the financial year differs from the amount calculated on the net result. The differences are 91 reconciled as follows:

(a) Income tax expense Current tax payable - - Deferred tax relating to temporary differences 97 688 97 688 Deferred income tax(revenue) expense included in income tax expense comprises: (Increase) in deferred tax assets 17 (4,095) (4,056) Increase in deferred tax liabilities 21 4,192 4,744 97 688

(b) Reconciliation of income tax expense to prima facie tax payable Profit before income tax expense 280 2,268 Tax at the Australian tax rate of 30% (2007: 30%) 84 680 Tax effect of amounts which are not deductible (taxable) in calculating taxable income: - Sundry items 13 8 Income tax expense 97 688

Note 12 Cash and Cash Equivalents Cash at Bank and on hand 4,801 -

Financial Statements - 30 June 2008 Note 2008 2007 $’000 $’000 Note 13 Receivables Current Receivables 10,578 10,646 Less Provision for Impaired Receivables (100) (100) Total Current Receivables 10,478 10,546 Non-Current Receivables 6,318 7,183 Total Receivables 16,796 17,729

(a) Provision for impaired receivables As at 30 June 2008, current receivables of the Corporation with a nominal value of $147,000 (2007: $108,000) were impaired. The amount of the provision was $100,000 (2007: $100,000). The individually impaired receivables mainly relate to tenant accounts and a number of identified trade receivables, which are in unexpectedly difficult economic situations. It was assessed that a portion of the receivables is expected to be recovered.

The ageing of these receivables is as follows: Current 4 3 1-2 months 19 2 3-4 months 14 4 Over 4 months 110 99 147 108

As at 30 June 2008, receivables of $1.052m (2007: $1.243m) were past due but not impaired. These relate to a number of customers for whom there is no recent history of default. The ageing analysis of these receivables is as follows:

92 1-2 months 619 720 3-4 months 109 260 Over 4 months 324 263 1,052 1,243

Movements in the provision for impaired receivables are as follows:

Balance at 1 July 100 100 Provision for impairment recognised during the year 43 77 Receivables written off during the year as uncollectible 9 (43) (77) Balance at 30 June 100 100

The creation and release of the provision for impaired receivables has been included in Administration Expenses in the Operating Statement. Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Note 2008 2007 $’000 $’000 Other amounts within receivables do not contain impaired assets and are not past due. Based on credit history, it is expected that these amounts will be received when due. (b) Fair value and credit risk Due to the short-term nature of the current receivables, their carrying value is assumed to approximate their fair value. The maximum exposure to credit risk at the reporting date is the higher of the carrying value and fair value of each class of receivables mentioned above. The Corporation holds collateral as security on some receivables. The collateral is a charge over property. Refer to Note 2 for more information of the risk management policy of the Corporation and to Note 27 for further analysis of receivables.

Note 14 Inventories Stores and Materials – at cost 1(f) 688 627

Note 15 Biological Assets Livestock – at net market value: Sheep 382 353 Cattle 113 62 1(g) 495 415 Represented by:

2008 2007 2008 2007 Quantity Quantity $’000 $’000 Carrying amount at 1 July 6,407 6,350 415 547 Increases due to: 93 Purchases 923 625 103 71 Natural Increase 3,373 2,985 160 33 Market value adjustment - - 187 - Decreases due to: Sales (4,209) (3,305) (350) (209) Deaths (288) (248) (20) (15) Market value adjustment - - - (12) Carrying amount at 30 June 6,206 6,407 495 415 All Livestock Biological Assets of the Corporation were independently valued as at 30 June 2008 by the following Livestock Agents: Robson Donaldson Pty. Ltd., Landmark & Rodwells Pty. Ltd. Livestock is valued at net market value.

Financial Statements - 30 June 2008 Note 2008 2007 $’000 $’000 Note 16 Property, Plant and Equipment Land and Buildings Freehold Land At Independent Valuation 2006 36,803 36,803 At Cost 704 664 37,507 37,467 Buildings At Independent Valuation 2006 8,320 8,323 Less: Accumulated Depreciation (621) (333) 7,699 7,990

At Cost 225 16 Less: Accumulated Deprecation (2) (1) 223 15 Total Land and Buildings 45,429 45,472

Infrastructure Assets At Cost 471,445 458,264 Less: Accumulated Depreciation (75,381) (64,033) 396,064 394,231 Infrastructure Assets in the course of construction 31,827 18,303 Total Infrastructure Assets 427,891 412,534

Plant and Equipment At Cost 14,861 13,825 Less: Accumulated Depreciation (9,324) (8,321)

94 Total Plant and Equipment 5,537 5,504 Total Property Plant and Equipment 478,857 463,510 Valuation of Property, Plant and Equipment All Land & Buildings of the Corporation were independently revalued on the 30th June, 2006 by HMC Valuers Pty. Ltd. at their fair value.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Reconciliations Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current financial year and the previous financial year are set out below. 2008 Freehold Buildings Infrastructure In Course of Plant & Total Land Assets Construction Equipment $’000 $’000 $’000 $’000 $’000 $’000 Carrying amount at 1 July 2007 37,467 8,005 394,231 18,303 5,504 463,510 Additions 40 209 13,863 13,524 2,076 29,712 Disposals - - (398) - (564) (962) Depreciation Expense - (292) (11,632) - (1,479) (13,403) Carrying amount at 30 June, 2008 37,507 7,922 396,064 31,827 5,537 478,857

2007 Freehold Buildings Infrastructure In Course of Plant & Total Land Assets Construction Equipment $’000 $’000 $’000 $’000 $’000 $’000 Carrying amount at 1 July 2006 36,803 8,346 386,340 14,809 5,435 451,733 Additions 664 16 19,521 3,494 2,146 25,841 Disposals - - (294) - (662) (956) Depreciation Expense - (357) (11,336) - (1,415) (13,108) Carrying amount at 30 June, 2007 37,467 8,005 394,231 18,303 5,504 463,510

2008 2007 $’000 $’000

Depreciation Charge for the Year Buildings 292 357 Infrastr ucture 11,632 11,336 Plant and Equipment 1,479 1,415 13,403 13,108 95 Non-Current Assets Pledged as Security The Corporation has not pledged any of its non-current assets as security.

Financial Statements - 30 June 2008 2008 2007 $’000 $’000 Note 17 Deferred Tax Assets The balance comprises temporary differences attributable to: Amounts recognised in operating statement: Doubtful Debts 30 30 Employee Benefits 1,069 970 Accrued Expenses 40 45 Depreciation 299 251 Tax Losses 17,252 13,299 Total Deferred Tax Assets 18,690 14,595 Movements: Opening Balance at 1 July 14,595 10,539 Charged to the operating statement 4,095 4,056 Closing balance at 30 June 18,690 14,595

Note 18 Payables Trade Payables 7,927 7,023 Other Payables 730 791 8,657 7,814 Foreign currency risk and interest rate risk for trade and other payables The carrying amounts of the Corporation’s trade and other payables are denominated in Australian dollars. For an analysis of the sensitivity of trade and other payables to interest rate risk refer to Note 2.

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Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

2008 2007 $’000 $’000 Note 19 Interest Bearing Liabilities - Secured Current Bank Overdraft - 4,480 Bank Loans 38 46 Other Loans 2,175 400 2,213 4,926 Non-Current Bank Loans 88 125 Other Loans 47,150 26,326 47,238 26,451 Total Interest Bearing Liabilities 49,451 31,377

Credit standby arrangements Total facilities 8,500 19,800 Unused at balance date 8,500 19,800 Loan facilities Total facilities 49,451 31,377 Used at balance date 49,451 31,377 Unused at balance date - -

Loans and Bank Overdraft are secured by the future revenue of the Corporation and a guarantee from the Treasurer of Victoria. Off-balance sheet The Corporation does not have any liabilities classed as off-balance sheet. As per Note 29, the Corporation is not aware of any other material contingent liabilities not recorded or disclosed in the accounts. 97 On-balance sheet The fair value of current borrowings equals their carrying amount, as the impact of discounting is not significant. The fair values of non-current borrowings are based on cash flows discounted using current borrowing rates varying from 7.19 % to 8.14%, depending on the type of the borrowing (2007 – 6.45% to 6.85%). The majority of the Corporation’s loans are held with the Treasury Corporation of Victoria with an immaterial amount held with Other Lenders. The Treasury Corporation of Victoria loans are taken out on fixed terms at fixed interest rates and are staggered in terms of maturity to minimise interest rate risk. Loans held with Other Lenders are being remitted in line with fixed repayment schedules until maturity.

Financial Statements - 30 June 2008 2008 2007 $’000 $’000 The Corporation is not aware of any potential financial liabilities which may arise from certain contingencies disclosed in Note 29. No material losses are anticipated in respect of any of those contingencies (this nil fair value disclosure is the directors’ estimate of amounts which would be payable by the Corporation as consideration for the assumption of those contingencies by another party).

Risk exposures The exposure of the Corporation’s borrowings to interest rate changes and the contractual repricing dates at the balance dates are as follows: 6 months or less 45 4,604 6 – 12 months 2,168 323 1 – 5 years 20,230 13,432 Over 5 years 27,008 13,018 Total Interest Bearing Liabilities 49,451 31,377 The carrying amounts of the Corporation’s borrowings are denominated in Australian dollars. For an analysis of the sensitivity of borrowings to interest rate risk refer to Note 2.

Note 20 Employee Benefits

Current Annual Leave and unconditional long service leave entitlements, representing seven years of continuous service: - Short-term employee benefits that fall due within 12 months 1,044 775 after the end of the period, measured at nominal value 98 - Other employee benefits that do not fall due within 12 months 2,187 2,184 after the end of the period, measured at present value Total Current 3,231 2,959 Non-Current Conditional long service leave 169 157 Total Non-Current 169 157 Total Employee Benefits 3,400 3,116 Employee numbers at the end of financial year 174 180

The following assumptions were adopted in measuring the present value of long service leave entitlements: Weighted average increase in employee costs 4.75% 4.50% Weighted average discount rates 6.70% 6.27% Weighted average settlement period 7 years 7 years

Note 21 Deferred tax liabilities The balance comprises temporary differences attributable to: Amounts recognised in Operating Statement Unearned Receivables 1,124 1,339 Depreciation 30,817 26,410 Deferred Tax Liabilities 31,941 27,749 Movements: Opening balance at 1 July 27,749 23,005 Charged to the operating statement 4,192 4,744 Charged to equity - - Closing balance at 30 June 31,941 27,749

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

2008 2007 $’000 $’000 Note 22 Contributed Capital Capital Contributions 234,284 234,284 234,284 234,284 Note 23 Reserves Asset Revaluation Reserve 23,268 23,268 23,268 23,268

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

Note 24 Retained Profits

Opening balance at 1 July 169,526 167,946 Profit for the year 183 1,580 Closing balance at 30 June 169,709 169,526

Note 25 Reconciliation of Profit for the Year to Net Cash Inflow from Operating Activities

Profit for the Year 183 1,580 Add/(Less) Non Cash Flows in Profit for the Year

Contributed Assets (4,517) (4,479) Depreciation 13,403 13,108 99 (Profit)/Loss on Sale of Non-Current Assets 440 424 Bad Debts Written Off 43 77 Change in Operating Assets and Liabilities (Increase) Decrease in Receivables 890 881 (Increase) Decrease in Inventories (141) 129 (Increase) Decrease in Prepayments (125) (34) (Increase) in Deferred Tax Assets (4,095) (4,056) Increase (Decrease) in Payables 1,062 1,072 Increase in Provisions 284 194 Increase in Deferred Tax Liabilities 4,192 4,744 Net Cash Inflow from Operating Activities 11,619 13,640 Note 26 Retail Reporting Retail Operations Urban Water Wastewater Total 2008 2007 2008 2007 2008 2007 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 Revenue Sales – external 27,043 25,329 21,964 21,237 49,007 46,566 Other Revenue 29 37 29 36 58 73 Total Revenue 27,072 25,366 21,993 21,273 49,065 46,639 Total Service Result 6,926 7,186 4,704 5,264 11,630 12,450 Less: Unallocated Expenses 11,350 10,182 Profit before income tax 280 2,268 This Corporation does not have any material Wholesale operations

Financial Statements - 30 June 2008 Note 27 Financial Instruments

(i) Interest Rate Risk Exposures The Corporation’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at balance date, are recorded in the table below. Exposures arise predominantly from liabilities bearing variable interest rates as the Corporation intends to hold fixed rate liabilities to maturity.

2008 Floating 1 year Over Over Over Over Over 5 Non Total interest or less 1 to 2 2 to 3 3 to 4 4 to 5 years Interest rate years years years years Bearing $$$$$$$ $$ Financial Assets - Cash 4,798 - - - - - 3 4,801 Receivables - 1,000 687 596 620 659 3,756 9,478 16,796 Total Financial Assets 4,798 1,000 687 596 620 659 3,756 9,481 21,597

Weighted Average Interest Rate 6.91% 7.05% 7.00% 6.91% 6.90% 6.90% 6.87% - -

Financial Liabilities Payables ------8,6578,657 Bank Overdraft ------Bank Loans - 38 27 25 17 11 8 - 126 Other Loans - 2,175 5,050 3,100 3,000 9,000 27,000 - 49,325 Total Financial Liabilities - 2,213 5,077 3,125 3,017 9,011 27,008 8,657 58,108 Weighted average interest rate - 5.98% 5.62% 5.36% 5.70% 6.78% 6.44% - - Net Financial Assets / (Liabilities) 4,798 (1,213) (4,390) (2,529) (2,397) (8,352) (23,252) 824 (36,511)

2007 Floating 1 year Over Over Over Over Over 5 Non Total interest or less 1 to 2 2 to 3 3 to 4 4 to 5 years Interest 100 rate years years years years Bearing $$$$$$$ $$ Financial Assets Cash ------Receivables - 954 995 677 587 610 4,313 9,593 17,729 Total Financial Assets - 954 995 677 587 610 4,313 9,593 17,729 Weighted Average Interest Rate - 6.93% 7.14% 6.99% 6.89% 6.89% 6.85% - -

Financial Liabilities Payables ------7,814 7,814 Bank Overdraft 4,480 ------4,480 Bank Loans - 46 38 27 25 17 18 - 171 Other Loans - 400 2,176 5,050 3,100 3,000 13,000 - 26,726 Total Financial Liabilities 4,480 446 2,214 5,077 3,125 3,017 13,018 7,814 39,191 Weighted average interest rate 6.58% 5.78% 5.98% 5.62% 5.36% 5.70% 5.73% - - Net Financial Assets / (Liabilities) (4,480) 508 (1,219) (4,400) (2,538) (2,407) (8,705) 1,779 (21,462)

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

(ii) Fair Value of Financial Assets and Liabilities The carrying amounts and fair values of financial assets and financial liabilities at balance date are as follows:

2008 2007 Carrying Fair Value Carrying Fair Value Amount $’000 Amount $’000 $’000 $’000 Financial assets Cash and Cash Equivalents 4,801 4,801 - - Receivables 16,796 15,944 17,729 17,615 Total Financial Assets 21,597 20,745 17,729 17,615

Financial liabilities Payables 8,657 8,657 7,814 7,814 Interest Bearing Liabilities/ Borrowings 49,451 48,255 31,377 30,322 Total Financial Liabilities 58,108 56,912 39,191 38,136 Cash, cash equivalents and non-interest bearing financial assets and financial liabilities are carried at cost which approximates their fair value. The fair value of other financial assets and financial liabilities is based upon market prices, where a market exists or by discounting the expected future cash flows at current interest rates. The carrying amounts of interest bearing receivables are more than their respective fair values. The Corporation intends to allow these receivables to run in accordance with their maturities and, accordingly, has decided not to write them down to their fair values. The carrying amounts of interest bearing liabilities / borrowings are more than their respective fair values. The Corporation intends to repay these borrowings in accordance with their maturities and, accordingly, has decided not to write them down to their fair values.

Note 28 Superannuation

The Corporation contributes in respect of its employees to 21 superannuation schemes. Contributions to 101 superannuation schemes expensed during the financial year were as follows:

Scheme Contributions Basis of Calculation Paid Outstanding 2008 2007 2008 2007 $’000 $’000 $’000 $’000 Vision Super Superannuation 458 459 - - 3.25% of member Scheme (Defined Benefits) employee’s salary plus the equivalent of the employee’s own contribution rate Vision Super Saver 817 669 64 65 9% of member employee’s Superannuation Scheme salary State Superannuation Board 34 31 8 8 Varying percentage of New Scheme member employee’s salary Other Funds 217 95 13 14 Varying percentage of member employee’s salary 1,526 1,254 85 87 Vision Super Superannuation Scheme and State Superannuation Fund are Defined Benefits funds. Any unfunded liability in respect of Vision Super Superannuation Scheme is recognised in the financial statements of the Corporation. Any unfunded liability in respect of State Superannuation Board New Scheme is recognised in the financial statements of the State Government of Victoria. The Corporation makes employer contributions to these defined benefit funds at rates determined by the Trustees on the advice of the Fund’s Actuaries. The other funds are Accumulation funds. No further liability accrues to the employer for those funds as the superannuation benefits accruing to the employees are represented by their share of the net assets of the funds. The Vision Super Superannuation Scheme Defined Benefit Plan is a multi-employer sponsored plan. As the Fund’s assets and liabilities are pooled and are not allocated by employer, the Actuary is unable to allocate

Financial Statements - 30 June 2008 benefit liabilities, assets and costs between employers. As provided under paragraph 32(b) of AASB 119, the Corporation does not use defined benefit accounting for these contributions. On the basis of the results of the most recent full actuarial investigation conducted by the Fund’s Actuary as at 31 December, 2005, the Trustee has determined that the current funding arrangements are adequate for the expected Defined Benefit Plan liabilities. There are no balances repayable in respect of loans made to the Corporation from any fund. Note 29 Contingent Liabilities and Contingent Assets At balance date, the Corporation is not aware of any material contingent liabilities or contingent assets not recorded or disclosed in the accounts.

2008 2007 $’000 $’000 Note 30 Capital and Other Commitments Capital Commitments Commitments for the acquisition of property, plant and equipment contracted for at the reporting date, but not recognised as liabilities, payable: Within one year 9,767 8,376 9,767 8,376 Other Commitments The Corporation is committed to making environmental contributions as per the Water Industry (Environmental Contributions) Act 2004 (see Note 1(q)). The commitments for the Corporation’s contribution to the consolidated fund at the reporting date, but not recognised as liabilities, are as follows: Within one year 1,915 1,500 Two to four years 5,745 - 7,660 1,500 These commitments will be met by revenue raised in those periods.

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Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Note 31 Responsible Persons of the Corporation (i) Responsible Persons The names of persons holding the position of Responsible Person of the Goulburn Valley Region Water Corporation during the financial year were:

The Hon. John Thwaites MP Minister for Water, Environment and Climate Change (1 July to 3 August, 2007) The Hon. Timothy Holding MP Minister for Water (3 August, 2007 to 30 June, 2008) D.M. Cummins Chair (appointed to Chair 1 November, 2007) J.A. Houghton Chair (retired 31 October, 2007) C.L. Scott Deputy Chair M. Hall Director M.I. Rae Director D.W. Flett Director M.G. Lawlor Director B.H.E. Nicholls Director (appointed 1 November, 2007) L.J. Gleeson Managing Director (retired 30 April, 2008) P.A. Quinn Managing Director (appointed 1 May, 2008) A.J. Gale Acting Managing Director (ii) Remuneration of Responsible Persons The numbers of Responsible Persons are shown below in their relevant income bands:

Remuneration 2008 2007 No. No. $0 - $9,999 - 3 $10,000-$19,999 7 5 $40,000-$49,999 1 1 The total remuneration of Responsible Persons referred to in the above bands was $155,256 (2007: $143,600), which includes $37,013 (2007: $39,557) paid in Superannuation Contributions. The relevant amounts relating to Ministers are reported separately in the Financial Statements of the Department of Premier and Cabinet. The remuneration of the Managing Director and Acting Managing Director is reported under “Remuneration of Executives”. 103

Financial Statements - 30 June 2008 (iii) Remuneration of Executives The number of executive officers, other than Responsible Persons included under “Remuneration of Responsible Persons” above, whose total remuneration exceeded $100,000 during the reporting period are shown below in their relevant income bands:

Total Remuneration Base Remuneration Remuneration 2008 2007 2008 2007 No. No. No. No.

$100,000 - $109,9992121 $110,000 - $119,9995555 $120,000 - $129,9991-1- $140,000 - $149,9991-1- $150,000 - $159,999 - - 1 2 $160,000 - $169,999-2-1 $170,000 - $179,9991-1- $180,000 - $189,999 - 1 1 - $190,000 – $199,999 1 - - - $200,000 - $209,9991-1- $220,000 - $229,999 - - - 1 $230,000 - $239,999 1 - - - $240,000 - $249,999 - 1 - - Total Numbers13101310 Total Remuneration $1,880,032 $1,441,655 $1,792,067 $1,373,775

(iv) Other Transactions of Responsible Persons and Their Related Entities Transactions between related parties are on normal commercial terms and conditions. Land Development Companies in which Responsible Persons hold an interest, contract to Goulburn Valley Region Water 104 Corporation for the provision of land development works from time to time. The companies involved and the amount of works during the year are listed below:

Company Director 2008 2007 Involved $ $ Murray River Estate Pty Ltd M. Hall 293,837 4,389 There have been no related party transactions with the Minister during the reporting period. There were no amounts paid by the Corporation in connection with the retirement of responsible persons of the Corporation during the financial year. Retirement benefits in the form of accumulated leave entitlements for the former Managing Director were paid by the Corporation in July 2008 and are not included in the above Remuneration of Executives note.

Note 32 Events Occurring After Balance Date No matters or circumstances have arisen since the end of the reporting period which significantly affect or may significantly affect the operations of the Corporation, the results of those operations, or the state of affairs of the Corporation in future financial years.

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

Certification of Financial Statements We certify the attached financial statements for Goulburn Valley Region Water Corporation have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2008 and the financial position of the Corporation as at 30 June 2008. We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. Signed on behalf of the Corporation

C.L. Scott P.A. Quinn G.D. Jolly Deputy Chairman Managing Director General Manager-Financial Services

Date: 3rd September 2008

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Financial Statements - 30 June 2008 106

Running Water from the Mountains to the Murray Goulburn Valley Water 2007 / 2008 Annual Report

107

Financial Statements - 30 June 2008 Disclosure Index The Annual Report of Goulburn Valley Water is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Corporation’s compliance with statutory disclosure requirements.

Clause Disclosure Page Charter and Purpose FRD 22B Manner of establishment and relevant Minister 4 FRD 22B Objectives, functions, powers and duties 5-11 FRD 22B Nature and range of services provided 5 Management and Structure FRD 22B Organisation Structure 55 FRD 22B Directors of the Board 15 Financial and Other Information FRD 22A Statement of workforce data and merit and equity 61 FRD 15B Executive Officer Disclosures 104 FRD 22B 5 year summary of the financial results 67 FRD 22B Significant changes in financial position during the year 2-3 FRD 22B Objectives and performance against objectives 7-11 FRD 22B Major changes or factors affecting performance 2 FRD 22B Subsequent events 104 FRD 22B Details of Consultancies over $100,000 68 FRD 22B Details of Consultancies under $100,000 68 FRD 12B Disclosure of Major contracts 68 FRD 22B Application and operation of Freedom of Information Act 1982 68 FRD 22B Application and operation of the Whistleblowers Protection Act 2001 68 108 FRD 22B Compliance with building and maintenance provisions of Building Act 1993 68 FRD 22B Statement on National Competition Policy 68 FRD 22A Occupational Health and Safety 61-63 FRD 10 Disclosure index 108 FRD 22A Statement of availability of other information 68 FRD 25 Victorian Industry Participation Policy disclosures 68 FRD 8A Budget portfolio outcomes 71 80Financial statements required under Part 7 of the FMA SD 4.2 (a) Statement of Changes in Equity 82 SD 4.2 (b) Operating Statement 80 SD 4.2 (b) Balance Sheet 81 SD 4.2 (b) Cash flow Statement 82 SD 4.2 (b) Notes to the financial statements 83-104 SD 4.2 (c) Accountable officer’s declaration 105 SD 4.2 (c) Compliance with Australian accounting standards and other authoritative pronouncements 83 SD 4.2 (c) Compliance with Ministerial Directions 83 SD 4.2 (3) Rounding of amounts 83 Other disclosures in notes to the financial statements FRD 21B Responsible person and executive officer disclosures 103 FRD112A Employee superannuation funds 101

Running Water from the Mountains to the Murray

WHISTLEBLOWERS PROTECTION POLICY & PROCEDURES

TABLE OF CONTENTS

1 STATEMENT OF SUPPORT TO WHISTLEBLOWERS...... 1

2 PURPOSE OF THESE PROCEDURES...... 1

3 OBJECTS OF THE ACT...... 1

4 DEFINITIONS OF KEY TERMS...... 1

5 THE REPORTING SYSTEM ...... 2

6 ROLES AND RESPONSIBILITIES...... 3

7 CONFIDENTIALITY ...... 4

8 COLLATING AND PUBLISHING STATISTICS...... 5

9 RECEIVING AND ASSESSING DISCLOSURES...... 6

10 INVESTIGATIONS ...... 7

11 ACTION TAKEN AFTER AN INVESTIGATION ...... 10

12 MANAGING THE WELFARE OF THE WHISTLEBLOWER ...... 11

13 MANAGEMENT OF THE PERSON AGAINST WHOM A DISCLOSURE HAS BEEN MADE...... 13

14 CRIMINAL OFFENCES...... 14

15 REVIEW ...... 14

1 STATEMENT OF SUPPORT TO WHISTLEBLOWERS

Goulburn Valley Water (“GVW”) is committed to the aims and objectives of the Whistleblowers Protection Act 2001 (“Act”). It does not tolerate improper conduct by its employees, officers or members, nor the taking of reprisals against those who come forward to disclose such conduct.

GVW recognises the value of transparency and accountability in its administrative and management practices, and supports the making of disclosures that reveal corrupt conduct, conduct involving a substantial mismanagement of public resources, or conduct involving a substantial risk to public health and safety or the environment.

GVW will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosures. It will also afford natural justice to any person who is the subject of a disclosure.

2 PURPOSE OF THESE PROCEDURES

These procedures establish a system for reporting disclosures of improper conduct or detrimental action by GVW or its employees. The system enables such disclosures to be made to the protected disclosure coordinator. Disclosures may be made by employees or by members of the public.

These procedures are designed to complement normal communication channels between supervisors and employees. Employees are encouraged to continue to raise appropriate matters with their supervisors at any time. As an alternative, employees may make a disclosure of improper conduct or detrimental action under the Act in accordance with these procedures.

3 OBJECTS OF THE ACT

The Act commenced operation on 1 January 2002. The purpose of the Act is to encourage and facilitate the making of disclosures of improper conduct by public officers and public bodies. The Act provides protection to whistleblowers who make disclosures in accordance with the Act, and establishes a system for the matters disclosed to be investigated and rectifying action to be taken.

4 DEFINITIONS OF KEY TERMS

Three key concepts in the reporting system are improper conduct, corrupt conduct and detrimental action. Definitions of these terms are set out below. In applying these definitions to GVW, it should be noted that GVW is a public body and employees of GVW are public officials for the purposes of the Act.

4.1 Improper conduct

A disclosure may be made about improper conduct by a public body or public official. Improper conduct means conduct that is:

4.1.1 corrupt;

4.1.2 a substantial mismanagement of public resources; or

4.1.3 conduct involving substantial risk to public health or safety or to the environment.

2

The conduct must be serious enough to constitute, if proved, a criminal offence or reasonable grounds for dismissal.

4.2 Corrupt conduct

Corrupt conduct means:

4.2.1 conduct of any person (whether or not a public official) that adversely affects the honest performance of a public officer’s or public body’s functions;

4.2.2 the performance of a public officer’s functions dishonestly or with inappropriate partiality;

4.2.3 conduct of a public officer, former public officer or a public body that amounts to a breach of public trust;

4.2.4 conduct by a public officer, former public officer or a public body that amounts to the misuse of information or material acquired in the course of the performance of their official functions; or

4.2.5 a conspiracy or attempt to engage in the above conduct.

4.3 Detrimental action

The Act makes it an offence for a person to take detrimental action against a person in reprisal for making a protected disclosure. Detrimental action includes:

4.3.1 action causing injury, loss or damage;

4.3.2 intimidation or harassment; and

4.3.3 discrimination, disadvantage or adverse treatment in relation to a person’s employment, career, profession, trade or business, including the taking of disciplinary action.

5 THE REPORTING SYSTEM

5.1 Contact persons within GVW

Disclosures of improper conduct or detrimental action by GVW or its employees may be made to the following officers:

5.1.1 Protected disclosure coordinator Mr Danny Hogan General Manager-Corporate Services 104-110 Fryers Street Shepparton, Victoria 3632

Internet: www.gvwater.vic.gov.au Email: [email protected]

Tel: 5832 0442 Fax: 5832 0491

All correspondence, telephone calls and e-mails from internal or external whistleblowers will be referred to the protected disclosure coordinator.

Dated: 9/3/2008 3

Where a person is contemplating making a disclosure and is concerned about approaching the protected disclosure coordinator in the workplace, he or she can call the relevant officer and request a meeting in a discreet location away from the workplace.

5.2 Alternative contact persons

A disclosure about improper conduct or detrimental action by GVW or its employees may also be made directly to the Ombudsman:

The Ombudsman Victoria Level 22, 459 Collins Street Melbourne Victoria 3000 (DX 210174) Internet: www.ombudsman.vic.gov.au Email: [email protected]

Tel: 9613 6222 Toll Free: 1800 806 314

6 ROLES AND RESPONSIBILITIES

6.1 Employees

Employees are encouraged to report known or suspected incidents of improper conduct or detrimental action in accordance with these procedures.

All employees of GVW have an important role to play in supporting those who have made a legitimate disclosure. They must refrain from any activity that is, or could be perceived to be, victimisation or harassment of a person who makes a disclosure. Furthermore, they should protect and maintain the confidentiality of a person they know or suspect to have made a disclosure.

6.2 Protected disclosure coordinator

The protected disclosure coordinator will:

6.2.1 be a contact point for general advice about the operation of the Act for any person wishing to make a disclosure about improper conduct or detrimental action;

6.2.2 receive all telephone calls, e-mails and letters from members of the public or employees seeking to make a disclosure made orally or in writing (from internal and external whistleblowers);

6.2.3 make arrangements for a disclosure to be made privately and discreetly and, if necessary, away from the workplace;

6.2.4 commit to writing any disclosure made orally;

6.2.5 impartially assess the allegation and determine whether it is a protected disclosure made in accordance with Part 2 of the Act (see paragraph 9.1 below)

Dated: 9/3/2008 4

6.2.6 if the disclosure has been determined to be a protected disclosure made in accordance with Part 2 of the Act, impartially assess it to determine whether it is a public interest disclosure (see paragraph 9.2 below);

6.2.7 refer all public interest disclosures to the Ombudsman;

6.2.8 be responsible for carrying out, or appointing an investigator to carry out, an investigation referred to GVW by the Ombudsman;

6.2.9 be responsible for overseeing and coordinating an investigation where an investigator has been appointed;

6.2.10 appoint a welfare manager (see paragraph 6.4 below) to support the whistleblower and to protect him or her from any reprisals;

6.2.11 advise the whistleblower of the progress of an investigation into the disclosed matter;

6.2.12 establish and manage a confidential filing system;

6.2.13 collate and publish statistics on disclosures made;

6.2.14 take all necessary steps to ensure the identity of the whistleblower and the identity of the person who is the subject of the disclosure are kept confidential; and

6.2.15 liaise with the chief executive officer of GVW.

6.3 Investigator

The investigator will be responsible for carrying out an internal investigation into a disclosure where the Ombudsman has referred a matter to GVW. An investigator may be a person from within GVW or a consultant engaged for that purpose.

6.4 Welfare manager

The welfare manager is responsible for looking after the general welfare of the whistleblower. The welfare manager will:

6.4.1 examine the immediate welfare and protection needs of a whistleblower who has made a disclosure and seek to foster a supportive work environment;

6.4.2 advise the whistleblower of the legislative and administrative protections available to him or her;

6.4.3 listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making disclosure; and

6.4.4 ensure that the expectations of the whistleblower are realistic.

7 CONFIDENTIALITY

GVW will take all reasonable steps to conceal the identity of the whistleblower. Maintaining confidentiality is crucial in ensuring that reprisals are not made against a whistleblower.

Dated: 9/3/2008 5

The Act requires any person who receives information due to the handling or investigation of a protected disclosure not to disclose that information except in certain limited circumstances. Disclosure of information in breach of section 22 of the Act constitutes an offence that is punishable by a maximum fine of 60 penalty units ($6000) or six months imprisonment or both.

The circumstances in which a person may disclose information obtained about a protected disclosure include:

7.1 where exercising the functions of GVW under the Act;

7.2 when making a report or recommendation under the Act;

7.3 when publishing statistics in the annual report of GVW; and

7.4 in criminal proceedings for certain offences in the Act.

However, the Act prohibits the inclusion of particulars in any report or recommendation that is likely to lead to the identification of the whistleblower. The Act also prohibits the identification of the person who is the subject of the disclosure in any particulars included in an annual report.

GVW will ensure that all files, whether paper or electronic, are kept in a secure room and can only be accessed by the protected disclosure coordinator, the investigator or welfare manager (in relation to welfare matters). All printed material will be kept in files that are clearly marked as a “whistleblower matter”, and warn of the criminal penalties that apply to any unauthorised divulging information concerning a protected disclosure. All electronic files will be produced and stored on a stand-alone computer and be given password protection. Backup files will be kept on floppy disc. All materials relevant to an investigation, such as tapes from interviews, will also be stored securely with the whistleblower files.

GVW will not e-mail documents relevant to a “whistleblower matter” and will ensure that all telephone calls and meetings are conducted in private.

8 COLLATING AND PUBLISHING STATISTICS

The protected disclosure coordinator will establish a secure register to record the information required to be published in the annual report, and generally to keep account of the status of whistleblower disclosures. The register will be confidential and will not record any information that may identify the whistleblower.

The register will contain the following information:

8.1 the number and types of disclosures made to GVW during the year;

8.2 the number of disclosures referred to the Ombudsman for determination as to whether they are public interest disclosures;

8.3 the number and types of disclosed matters referred to GVW by the Ombudsman for investigation;

8.4 the number and types of disclosures referred by GVW to the Ombudsman for investigation;

Dated: 9/3/2008 6

8.5 the number and types of investigations taken over from GVW by the Ombudsman;

8.6 the number of requests made by a whistleblower to the Ombudsman to take over an investigation from GVW;

8.7 the number and types of disclosed matters that GVW has declined to investigate;

8.8 the number and types of disclosed matters that were substantiated upon investigation and the action taken on completion of the investigation; and

8.9 any recommendations made by the Ombudsman that relate to GVW.

9 RECEIVING AND ASSESSING DISCLOSURES

9.1 Has the disclosure been made in accordance with Part 2 of the Act?

Where a disclosure has been received by the protected disclosure coordinator or, he or she will assess whether the disclosure has been made in accordance with Part 2 of the Act and is, therefore, a protected disclosure.

9.1.1 Has the disclosure been made to the appropriate person?

For the disclosure to be responded to by GVW, it must concern an employee or officer of GVW. If the disclosure concerns an employee or officer of another public body, the person who has made the disclosure must be advised of the correct person or body to whom the disclosure should be directed under the Act. If the disclosure has been made anonymously, it should be referred to the Ombudsman.

9.1.2 Does the disclosure contain the essential elements of a protected disclosure?

A disclosure is a protected disclosure if:

(a) a natural person (that is, an individual person rather than a corporation) makes the disclosure;

(b) the disclosure relates to conduct of GVW or an employee or officer of GVW acting in their official capacity;

(c) the disclosure of either improper conduct or detrimental action taken against a person in reprisal for making a protected disclosure; and

(d) the person making the disclosure has reasonable grounds for believing the alleged conduct has occurred.

Where a disclosure is assessed to be a protected disclosure, it must be referred to the protected disclosure coordinator. The protected disclosure coordinator will determine whether the disclosure is a public interest disclosure.

Where a disclosure is assessed not to be a protected disclosure, the matter does not need to be dealt with under the Act. The protected disclosure coordinator will decide how best to respond to the matter.

Dated: 9/3/2008 7

9.2 Is the disclosure a public interest disclosure?

Where the protected disclosure coordinator has received a disclosure that has been assessed to be a protected disclosure, he or she will determine whether the disclosure amounts to a public interest disclosure. This assessment will be made within 45 days of the receipt of the disclosure.

In reaching a conclusion as to whether a protected disclosure is a public interest disclosure, the protected disclosure coordinator will consider whether the disclosure shows, or tends to show, that the public officer to whom the disclosure relates:

9.2.1 has engaged, is engaging or proposes to engage in improper conduct in his or her capacity as a public officer; or

9.2.2 has taken, is taking or proposes to take detrimental action in reprisal for the making of the protected disclosure.

Where the protected disclosure coordinator concludes that the disclosure amounts to a public interest disclosure, he or she must:

9.2.3 notify the person who made the disclosure of that conclusion; and

9.2.4 refer the disclosure to the Ombudsman for formal determination as to whether it is indeed a public interest disclosure.

Where the protected disclosure coordinator concludes that the disclosure is not a public interest disclosure, he or she must:

9.2.5 notify the person who made the disclosure of that conclusion; and

9.2.6 advise that person that he or she may request GVW to refer the disclosure to the Ombudsman for a formal determination as to whether the disclosure is a public interest disclosure, and that this request must be made within 28 days of the notification.

In either case, the protected disclosure coordinator must make the notification and the referral within 14 days of the conclusion being reached by GVW. Notification to the whistleblower is not necessary where the disclosure has been made anonymously.

10 INVESTIGATIONS

10.1 Introduction

Where the Ombudsman refers a protected disclosure to the GVW for investigation, the protected disclosure coordinator will appoint an investigator to carry out the investigation.

The objectives of an investigation will be:

10.1.1 to collate information relating to the allegation as quickly as possible. This may involve taking steps to protect or preserve documents, materials and equipment;

Dated: 9/3/2008 8

10.1.2 to consider the information collected and to draw conclusions objectively and impartially;

10.1.3 to maintain procedural fairness in the treatment of witnesses and the person who is the subject of the disclosure; and

10.1.4 to make recommendations arising from the conclusions drawn concerning remedial or other appropriate action.

10.2 Terms of Reference

Before commencing an investigation, the protected disclosure coordinator must draw up terms of reference and obtain authorisation for those terms from the chief executive officer of GVW. The terms of reference will set a date by which the investigation report is to be concluded, and will describe the resources available to the investigator to complete the investigation within the time set. The protected disclosure coordinator may approve, if reasonable, an extension of time requested by the investigator. The terms of reference will require the investigator to make regular reports to the protected disclosure coordinator who, in turn, must keep the Ombudsman informed of general progress.

10.3 Investigation Plan

The investigator will prepare an investigation plan for approval by the protected disclosure coordinator. The plan will list the issues to be substantiated and describe the avenue of inquiry. It will address:

10.3.1 what is being alleged;

10.3.2 what are the possible findings or offences;

10.3.3 what are the facts in issue;

10.3.4 how the inquiry is to be conducted; and

10.3.5 what resources are required.

At the commencement of the investigation, the whistleblower will be:

10.3.6 notified by the investigator that he or she has been appointed to conduct the investigation;

10.3.7 asked to clarify any matters; and

10.3.8 asked to provide any additional material he or she might have.

The investigator must be sensitive to the whistleblower’s possible fear of reprisals and be aware of the statutory protections available to the whistleblower.

10.4 Natural justice

The principles of natural justice will be followed in any investigation of a public interest disclosure. The principles of natural justice concern procedural fairness and ensure that a fair decision is reached by an objective decision maker. Maintaining procedural fairness protects the rights of individuals and enhances public confidence in the process.

Dated: 9/3/2008 9

GVW will have regard to the following issues in ensuring procedural fairness:

10.4.1 the person who is the subject of the disclosure is entitled to know the allegations made against him or her and must be given the right to respond. (This does not mean that the person must be advised of the allegation as soon as the disclosure is received or the investigation has commenced);

10.4.2 if the investigator is contemplating making a report adverse to the interests of any person, that person should be given the opportunity to put forward further material that may influence the outcome of the report and that person’s defence should be fairly set out in the report;

10.4.3 all relevant parties to a matter should be heard and all submissions should be considered;

10.4.4 a decision should not be made until all reasonable inquiries have been made;

10.4.5 the investigator or any decision maker should not have a personal or direct interest in the matter being investigated;

10.4.6 all proceedings should be carried out fairly and without bias. Care should also be taken to exclude perceived bias from the process; and

10.4.7 the investigator should be impartial in assessing the credibility of the whistleblowers and any witnesses. Where appropriate, conclusions as to credibility should be included in the investigation report.

10.5 Conduct of the investigation

The investigator will make contemporaneous notes of all discussions and telephone calls, and all interviews with witnesses must be taped. All information gathered in an investigation will be stored securely. Interviews will be conducted in private and the investigator must take all reasonable steps to protect the identity of the whistleblower. Where disclosure of the identity of the whistleblower cannot be avoided, due to the nature of the allegations, the investigator will warn the whistleblower and his or her welfare manager of this probability.

It is in the discretion of the investigator to allow any witness to have legal or other representation or support during an interview. If a witness has a special need for legal representation or support, permission should be granted.

10.6 Referral of an investigation to the Ombudsman

The protected disclosure coordinator must make a decision regarding the referral of an investigation to the Ombudsman where, on the advice of the investigator:

10.6.1 the investigation is being obstructed by, for example, the non- cooperation of key witnesses; or

10.6.2 the investigation has revealed conduct that may constitute a criminal offence.

Dated: 9/3/2008 10

10.7 Reporting requirements

The protected disclosure coordinator must ensure that the whistleblower is kept regularly informed concerning the handling of a protected disclosure and an investigation.

The protected disclosure coordinator must report to the Ombudsman about the progress of an investigation.

Where the Ombudsman or the whistleblower requests information about the progress of an investigation, that information must be provided within 28 days of the date of the request.

11 ACTION TAKEN AFTER AN INVESTIGATION

11.1 Investigator’s final report

At the conclusion of the investigation, the investigator must submit a written report of his or her findings to the protected disclosure coordinator. The report will contain:

11.1.1 the allegation/s;

11.1.2 an account of all relevant information received and, if the investigator has rejected evidence as being unreliable, the reasons for this opinion being formed;

11.1.3 the conclusions reached and the basis for them; and

11.1.4 any recommendations arising from the conclusions.

Where the investigator has found that the conduct disclosed by the whistleblower has occurred, recommendations made by the investigator will include:

11.1.5 the steps that need to be taken by GVW to prevent the conduct from continuing or occurring in the future; and

11.1.6 any action that should be taken by GVW to remedy any harm or loss arising from the conduct. This action may include bringing disciplinary proceedings against the person responsible for the conduct, and referring the matter to an appropriate authority for further consideration.

The report should be accompanied by:

11.1.7 the transcript or other record of any oral evidence taken, including tape recordings; and

11.1.8 all documents, statements or other exhibits received by the officer and accepted as evidence during the course of the investigation.

Where the investigator’s report is to include an adverse comment against any person, that person must be given the opportunity to respond and his or her defence must be fairly included in the report.

The report must not disclose particulars likely to lead to the identification of the whistleblower.

Dated: 9/3/2008 11

11.2 Action to be taken

If the protected disclosure coordinator is satisfied that the investigation has found that the disclosed conduct has occurred, he or she should recommend to the chief executive officer the action that must be taken to prevent the conduct from continuing or occurring in the future. The protected disclosure coordinator may also recommend that action be taken to remedy any harm or loss arising from the conduct.

The protected disclosure coordinator will provide a written report to the Minister for Environment and Conservation, the Ombudsman and the whistleblower setting out the findings of the investigation and any remedial steps taken.

Where the investigation concludes that the disclosed conduct did not occur, the protected disclosure coordinator must report these findings to the Ombudsman and to the whistleblower.

12 Managing the welfare of the whistleblower

12.1 Commitment to protecting whistleblowers

GVW is committed to the protection of genuine whistleblowers against detrimental action taken in reprisal for the making of protected disclosures. The protected disclosure coordinator is responsible for ensuring that whistleblowers are protected from direct and indirect detrimental action, and that the culture of the workplace is supportive of protected disclosures being made.

The protected disclosure coordinator will appoint a welfare manager (see paragraph 6.4) to all whistleblowers who have made a protected disclosure. The welfare manager will:

12.1.1 examine the immediate welfare and protection needs of a whistleblower who has made a disclosure and, where the whistleblower is an employee, seek to foster a supportive work environment;

12.1.2 advise the whistleblower of the legislative and administrative protections available to him or her;

12.1.3 listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making disclosure;

12.1.4 keep a contemporaneous record of all aspects of the case management of the whistleblower including all contact and follow-up action; and

12.1.5 ensure the expectations of the whistleblower are realistic.

All employees should be advised that it is an offence for a person to take detrimental action in reprisal for a protected disclosure. The maximum penalty is a fine of 240 penalty units ($24,000) or two years imprisonment or both. The taking of detrimental action in breach of this provision can also be grounds for making a disclosure under the Act and can result in an investigation.

Dated: 9/3/2008 12

Detrimental action includes:

12.1.6 causing injury, loss or damage;

12.1.7 intimidation or harassment; and

12.1.8 discrimination, disadvantage or adverse treatment in relation to a person’s employment, career, profession, trade or business (including the taking of disciplinary action).

12.2 Keeping the whistleblower informed

The protected disclosure coordinator must ensure that the whistleblower is kept informed of action taken in relation to his or her disclosure, and the time frames that apply. The whistleblower should be informed of the objectives of an investigation, the findings of an investigation, and the steps taken by GVW to address any improper conduct that has been found to have occurred. The whistleblower should be given reasons for decisions made by GVW in relation to a protected disclosure.

12.3 Occurrence of detrimental action

If a whistleblower reports an incident of harassment, discrimination or adverse treatment that would amount to detrimental action taken in reprisal for the making of the disclosure, the welfare manager will:

12.3.1 record details of the incident;

12.3.2 advise the whistleblower of his or her rights under the Act; and

12.3.3 advise the protected disclosure coordinator or chief executive officer of the detrimental action.

The taking of detrimental action in reprisal for the making of a disclosure can be an offence against the Act as well as grounds for making a further disclosure. Where such detrimental action is reported, the protected disclosure coordinator will assess the report as a new disclosure under the Act. Where the protected disclosure coordinator is satisfied that the disclosure is a public interest disclosure, he or she will refer it to the Ombudsman. If the Ombudsman subsequently determines the matter to be a public interest disclosure, the Ombudsman may investigate the matter or refer it to another body for investigation as outlined in the Act.

12.4 Whistleblowers implicated in improper conduct

Where a person who makes a disclosure is implicated in misconduct, GVW must handle the disclosure and protect the whistleblower from reprisals in accordance with the Act, the Ombudsman’s Guidelines and these procedures. GVW acknowledges that the act of whistleblowing should not shield whistleblowers from the reasonable consequences flowing from any involvement in improper conduct. Section 17 of the Act specifically provides that a person’s liability for his or her own conduct is not affected by the person’s disclosure of that conduct under the Act. However, in some circumstances, an admission may be a mitigating factor when considering disciplinary or other action.

Dated: 9/3/2008 13

The chief executive officer of GVW will make the final decision on the advice of the protected disclosure coordinator as to whether disciplinary or other action will be taken against a whistleblower. Where disciplinary or other action relates to conduct that is the subject of the whistleblower’s disclosure, the disciplinary or other action will only be taken after the disclosed matter has been appropriately dealt with.

In all cases where disciplinary or other action is being contemplated, the chief executive officer of GVW should be satisfied that it has been clearly demonstrated that:

12.4.1 the intention to proceed with disciplinary action is not causally connected to the making of the disclosure (as opposed to the content of the disclosure or other available information);

12.4.2 there are good and sufficient grounds that would fully justify action against any non-whistleblower in the same circumstances; and

12.4.3 there are good and sufficient grounds that justify exercising any discretion to institute disciplinary or other action.

The protected disclosure coordinator will thoroughly document the process including recording the reasons why the disciplinary or other action is being taken, and the reasons why the action is not in retribution for the making of the disclosure. The protected disclosure coordinator will clearly advise the whistleblower of the proposed action to be taken, and of any mitigating factors that have been taken into account.

13 MANAGEMENT OF THE PERSON AGAINST WHOM A DISCLOSURE HAS BEEN MADE

GVW recognises that employees against whom disclosures are made must also be supported during the handling and investigation of disclosures. GVW must take all reasonable steps to ensure the confidentiality of the person who is the subject of the disclosure during the assessment and investigation process. Where investigations do not substantiate disclosures, the fact that the investigation has been carried out, the results of the investigation, and the identity of the person who is the subject of the disclosure will remain confidential.

The protected disclosure coordinator will ensure that the person who is the subject of any disclosure investigated by or on behalf of GVW is:

13.1 informed as to the substance of the allegations;

13.2 given the opportunity to answer the allegations before a final decision is made;

13.3 informed as to the substance of any adverse comment that may be included in any report arising from the investigation; and

The defence of the person who is the subject of any disclosure should be set out fairly in any report.

Dated: 9/3/2008 14

Where the allegations in a disclosure have been investigated, and the person who is the subject of the disclosure is aware of the allegations or the fact of the investigation, the protected disclosure coordinator will formally advise the person who is the subject of the disclosure of the outcome of the investigation.

GVW will give its full support to a person who is the subject of a disclosure where the allegations contained in a disclosure are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, the chief executive officer of GVW will consider any request by that person to issue a statement of support setting out that the allegations were clearly wrong or unsubstantiated.

14 CRIMINAL OFFENCES

GVW will ensure that officers appointed to handle protected disclosures and all other employees are aware of the offences created by the Act set out below.

14.1 It is an offence for a person to take detrimental action against a person in reprisal for a protected disclosure being made. The Act provides a maximum penalty of a fine of 240 penalty units ($24,000) or two years imprisonment or both.

14.2 It is an offence for a person to divulge information obtained as a result of the handling or investigation of a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty units ($6,000) or six months imprisonment or both.

14.3 It is an offence for a person to obstruct the Ombudsman in performing his responsibilities under the Act. The Act provides a maximum penalty of 240 penalty units ($24,000) or two years imprisonment or both.

14.4 It is an offence for a person to knowingly provide false information under the Act with the intention that it be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units ($24,000) or two years imprisonment or both.

15 REVIEW

These procedures will be reviewed annually to ensure they meet the objectives of the Act and accord with the Ombudsman’s Guidelines.

Dated: 9/3/2008 Regional Administration Centre 104-110 Fryers Street, Shepparton, 3630 PO Box 185, Shepparton, 3632 DX 63036 Telephone: (03) 5832 0400 Facsimile: (03) 5831 1467 Email: [email protected] Website: www.gvwater.vic.gov.au

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