Annual
Report
2013-2014
Lake Mountain Alpine Resort
Lake Mountain Road, Marysville, VIC, 3779
PO Box 40, Marysville, VIC, 3779
P 03 5957 7222
F 03 5957 7231
E admin@lakemountainresort.com.au
W www.lakemountainresort.com.au
ABN 17 315 087 255
© State of Victoria, Lake Mountain Alpine Resort
Management Board 2015. This publication is copyright.
No part may be reproduced by any process except in
accordance with the provisions of the Copyright Act 1968.
Contents
Chairperson’s Report
1
Year in Review
5
Financial Information
9
Five Year Summary of Financial Results
11
Corporate Governance
12
Charter and Purpose
17
Governance and Organisational Structure
21
Other Information
25
Risk Management Compliance Attestation
29
Declaration by the Chairperson
and the Executive Officer
30
Financial Statements for the year
ending 31 October 2014
33
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Chairperson’s Report
It is in better circumstances than last year that
I write my second report as Chairman of Lake
Mountain Alpine Resort Management Board (“the
Board”). The level of visitation to Lake Mountain
during the winter season was 131,692 visitors,
which was the highest in ten years, and more than
30% above the ten-year average, and up from
72,308 in 2013. Hence the improved financial
performance of the Resort.
This level of visitation brings with it a much stronger
financial return to the Board, and reduces the impost
on government funding to sustain the operations of the
Resort. Strong visitation levels provide all those connected
with Lake Mountain greater optimism for the future. The
future sustainability of the Resort and its key role in the
economic and social wellbeing of the Marysville region
will be nurtured and clarified as the Board works toward
completing and gaining government endorsement of a
Strategic Management Plan, incorporating a Resort Master
Plan.
Whilst an efficient management structure will be a key
element of our plans going forward, the Board is also
committed to facilitating the provision of additional
activities, facilities and events at Lake Mountain in order
to enhance our visitors’ experience of the Resort. Our
aim will be to continue to provide nature-based adventure
tourism experiences, with an array of activities to suit a
wide variety of expectations.
With the encouragement and support of government, the
Board has continued to put in place a commercially based
management structure, the objective of which has been to
enhance the visitor experience, at less cost to government
and to encourage private investment and activity in the
Resort. After a rigorous public tender process, Belgravia
Leisure Pty Ltd (“Belgravia Leisure”) was contracted for
a period of 12 months, to manage the operations of the
Resort. This process and appointment followed a trial
period in the previous 16 months that was deemed to be
a success, thus giving confidence in the move away from
what has been the normal management model for alpine.
Support from State government
The quarterly advance of necessary operational funding
has provided the Board with the capacity to improve the
efficiency of its activities and operations. The Board has
appreciated this support from government, managed and
1
administered through the Department of Environment,
Land, Water and Planning. The close and constructive
working relationship that has been established between
the Board and the Land Management Policy Division
within the Department has enabled the Board to address
issues as they have arisen, in an efficient and effective
manner.
Great assistance and advice has been provided to me
as Chairperson, including from the former Minister
for Environment and Climate Change and a number
of government colleagues who often reinforce the
importance of Lake Mountain as a resource for the
public of Victoria to enjoy, and as an economic driver for
the Marysville and Yarra Ranges tourism area. I really
appreciate the interest they have shown in the Resort and
the support they have provided.
State government funding received by the Board during
the financial year amounted to $2,509,905, compared
with last year’s $3,883,651.
Financial results
Elsewhere in the annual report, the net result, inclusive of
government funding and depreciation expense, is revealed
to be a deficit of $210,098. After adjusting this net
result to exclude government funding and depreciation
expense, the financial result from operations is a deficit of
$1,626,306, last year’s deficit being $3,045,845.
The Board
It is pleasing to report that all Board members have
contributed significantly to Lake Mountain during this
year. It has been a busy year for the Board with a
number of seemingly onerous decisions to be made and
implemented. Board members have approached the
issues and challenges methodically and effectively to make
decisions, to monitor outcomes, and to encourage those
working for Lake Mountain to do so with enthusiasm and
hard work.
In the early part of the year, the Board worked tirelessly
through a tender process to identify and then contract
with a commercial operator. Much work and effort went
into this rigorous process with a good outcome ultimately
coming by way of contracting Belgravia Leisure to a new
management agreement to manage the Resort for the
Board. I would like to make mention of the Long Term
Management Arrangements Committee members, and
the advisors to that committee – Lion Capital Advisory Pty
Ltd (Commercial), Allens Linklater (Legal) and RSM Bird
Cameron (Probity). Luminous biz development Pty Ltd
(“Luminous biz”) also did a good job in managing and
administering the project and in providing support to the
committee.
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Dr John Miller
Thank you to Dr John Miller AO who retired from the
Board after the October Board meeting. John opted
not to seek another term after many years of service
to a number of Alpine Resort Management Boards,
having latterly served on Lake Mountain Alpine Resort
Management Board since 2007. John has been a great
contributor to board discussions, particularly on strategy
and the furtherance of the Resort’s cross-country ski
offer and profile, and was instrumental in facilitating the
mutually rewarding partnership between the Board and
the Bjarne Dahl Trust, which led to the opening of the
Bjarne Dahl Boardwalk earlier in the year. John provided
much support and wise counsel to me in my role as
Chairperson. He will be missed around the board table for
his contribution to discussions and decision-making, but
we know that John will continue to be a frequent visitor
to Lake Mountain as he continues to satisfy his passion for
the beauty and challenge of the cross-country ski trails.
New board members
I welcome two new board members, Haley Tudor-Harrop
and Tony Nippard, to the Board. Their appointments
commenced on 28 October 2014. The Board is
fortunate to be joined by two such capable people and
is appreciative of the opportunity that was provided to
find and nominate prospective board members. We are
confident of their capabilities, and look forward to their
contributions.
I am pleased to report that a number of the significant
initiatives have been introduced to enable the Board to
progress positively toward creating an even better Resort.
I thank all from Belgravia Leisure who have contributed
to the progress being made, but would like to make
particular mention of Resort Manager Scott Gamble, who
has done a wonderful job in marshalling and managing
the Resort’s workforce, and in introducing a number of
enhancements to the Resort’s facilities, events calendar,
mode of operations, and customer service arrangements.
The Board also recognises the contribution of Anthony
McIntosh, Frank van der Kraan and David Yu, who each
have provided their own individual input behind the
scenes, to ensure everything goes smoothly and in accord
with the commitments prescribed by the contractual
arrangements.
2
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Anita Hunter and Phil Nunn from Luminous biz have also
contributed enormously to the functioning of the Board.
Nothing is too much trouble for them as they fulfil the
terms of the contractual arrangements the Board has with
them. While serving the Board, as project managers for
a committee that undertook the tender process for the
appointment of a long-term management for the Resort,
and efficiently working with the Audit, Risk and Finance
Committee, they have enabled all Board members to be
engaged for the duration of these processes. I would like
to personally thank Anita and Phil for all the work they
do to make it easier to fulfil my role as Chairperson of the
Board.
I would also like to thank Phil Nunn for agreeing to take
on the role of part-time Executive Officer during the
course of the year, after other efforts to fulfil the Board’s
obligation to appoint an Accountable Officer did not come
to fruition. Both the Board and Phil have worked hard to
ensure that the risks arising from the inherent conflict of
interest of filling the role of the Board’s Executive Officer,
as well as being a director of and active participant in the
provision of services provided by Luminous biz, have been
recognised and managed transparently and effectively.
The Board will continue to monitor how this arrangement
is working to ensure that any exposure to conflict of
interest claims can be refuted, as a result of the strong and
effective controls that are in place around these respective
arrangements.
The visitors
It has been wonderful to welcome people to the Resort
this year. The greater visitor numbers during the winter
season have been well catered for, and we look to
our visitors, whether they be frequent attendees or
coming for the first time (or something in between), to
act as ambassadors to help us promote the wonderful
experiences to be had at Lake Mountain.
Ski patrol
I would like to thank the members of the (largely
volunteer) ski patrol group who provide such a great
service to Lake Mountain. All of you do a great job, and
respond admirably to emergency situations, to meet the
challenge of minimising public risk. The group is under the
cheery leadership of staff member Sue Parry, who does an
excellent job in recruiting, managing, and engaging with
this amazing group of volunteers.
In summary
I thank the government for having the confidence in me
as Chairperson and for extending my term, and reiterate
that whatever is achieved for Lake Mountain only comes
from the dedication of a wonderful group of people who
are passionate about, and committed to, the future of
Lake Mountain.
The staff
It has been a very busy time for the staff, particularly
during this year’s excellent winter season. Many of the key
staff have been long-serving members of staff working at
the Resort, and each staff member brings their own skills,
experience, capacities, and passion to the role that they
play, to make the experience for Resort visitors so positive
and satisfying. On behalf of my fellow Board members,
I would like to thank the seasonal staff, many of whom
come back year after year to provide such great service
to our Resort visitors. Led by long-serving Alan Eason,
who comes back from Europe each year with unremitting
passion for Lake Mountain, staff members involved
in direct customer service activity do an amazing job,
particularly at peak times, when there is much pressure
from visitors wanting service. It is great to see reduced
queuing times and increased customer satisfaction.
3
Tony Thompson
Chairperson
17 February 2015
Lake Mountain Alpine Resort Management
Lake Mountain
Board Annual
Alpine
Report
Resort
2012-2013
Management Board Annual Report 2012-2013
4
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Year in Review
Winter season
The 131,692 visitors coming to the Resort during the winter season represented the highest level of visitation since 2004,
and this number is well up from the average of the previous ten years, which was 93,810. Whilst the Board is aware
that “if it snows, the visitors will come”, the strong level of visitation was particularly pleasing, as it brought back a large
number of Lake Mountain cross-country skiers, and continued the trend of increasing the ethnic and socio-economic
diversity of the people enjoying the Resort.
Table 1
140000
120000
WINTER SEASON
100000
80000
60000
40000
20000
0
2009-2010 2010-2011 2011-2012 2012-20132013-2014
Lake Mountain is an important visitor destination for
visitors to Victoria’s Alps. Approximately 17% of all winter
season alpine visits to Victorian Alpine Resorts in 2014
were to Lake Mountain. For many of these people, it is
their first visit to the snow. Our energy is focused upon
providing a great experience for these visitors, so that they
want to come back to the snow, time and time again. The
creation of a winter wonderland experience is part of the
vision that we have for the Resort.
Efforts by Belgravia Leisure, facilitated by the Board, to
enrich the experience of Resort visitors by reducing service
queuing times at food, beverage, ski hire, and ski school
outlets continue. However, dealing with so many people
on peak days remains a challenge.
5
Whilst the winter season officially opened on the
traditional Queen’s Birthday long weekend, it was not
until the first significant snowfall, on 24 June 2014, that
the Resort really started welcoming visitors in any great
numbers. The fall of 60cm of snow in the last week of
June, followed by a further 53cm in July and 52cm in
August, provided consistent natural snow offer during that
ten or twelve week period prior to the closure of winter
season activity on the second weekend of September.
The natural snowfalls were supplemented by the Resort’s
snow-making equipment, which, with its increased
capacity, provided excellent and enjoyable conditions for
many people to enjoy the magic winter experience.
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Table 2
80
Snow Depth 2014
70
60
Snow Depth (cm)
50
40
30
20
10
4
/1
4
/1
10
2/
4
/1
25
/9
4
/9
/9
/1
18
14
11
4
/1
9/
4/
4
/1
28
/8
4
/8
/8
/1
21
14
14
4
8/
/1
7/
4
/1
31
/7
4
/7
4
/1
24
/7
/1
/7
17
14
10
7/
/1
3/
/1
4
4
/6
26
4
/1
/6
19
/6
12
5/
6/
14
0
Date
2014 Natural Snow Depth
Visitor satisfaction
Whilst the Resort receives much positive feedback during
the winter season, Management and the Board are
aware that at times, particularly during busy periods,
the level of visitor satisfaction can be impacted for a
number of reasons. Efforts are continuing to improve the
facilities on offer, and to continue to enhance the level
of customer service provided. The Resort participates in
the Alpine Resorts Coordinating Council’s research into
visitor satisfaction, with results for 2014 being slightly
below the level of satisfaction reported in 2012, which
was the previous time the survey was conducted at Lake
Mountain. Management of the Resort is analysing these
results and will work to overcome some of the issues that
the Resort has in providing an optimal experience for its
winter season visitors.
2014 Average depth in snow-making area (3 ha)
Initiatives in 2014 included the Snowchi Games; the Snow
Shenanigans school holiday program; Tuesday Night
snowshoeing and ski sessions; the Fast and Female fitness
program for women and girls; the Laser Biathlon; ski
orienteering; expansion of the snow shoeing trail; and the
creation of the well-received Snowman’s Village play area.
These initiatives all have the potential to further develop
into significant sources of visitor pleasure.
The number of snow-based accidents and incidents were
commensurate with expectations, given the number of
visitors we had to the Resort.
Our programs and events
The Board is working not only to expand the physical
facilities and customer service offered by the Resort, but
also to add to the array of events and programs that are
available for people to enjoy.
6
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Engagement with the community
Other positives
Aside from the schools program, Management focused on
the local region to offer programs including the “Where is
Lenny?” Facebook competition, which highlights places to
go and things to do within the Resort; the weekly deposit
of snowdrops in Marysville to highlight a link between
the town and the Resort; and the further development of
commercial links between ski hire and accommodation
providers in region. The Resort also continued to provide
direct financial and personnel support to the Marysville
Visitor Information Centre. The Resort Manager also
plays a continuing and constructive role in local tourism
and business groups, to foster mutually rewarding
relationships.
The revitalisation of the merchandise outlet presented a
more attractive retail presence to attract visitors, as did
the second staging of the annual Australian Snowman’s
Festival. Queuing time for all customer service outlets was
reduced, and the Alpine Burger Bar’s extended menu and
coffee outlet also proved to be popular.
Marketing
The Resort launched its new website early in the season,
which was well received, and also enjoyed the benefit of
the cross- and collaborative-promotion of the Mt Baw Baw
and Lake Mountain resorts. Efforts to cross-promote with
Belgravia Leisure customer networks provided positive
outcomes. The Resort also enjoyed a greater positive
profile as a result of more frequent Lake Mountainfocused media stories.
Table 3
80000
Some observations from the season
Once we achieve more than about 950 visitor cars into the
Resort, overcrowding tends to diminish the quality of the
visitor experience.
The winter season experience for visitors is enhanced
when there are additional adventure activities over and
above traditional snow-based things to do.
People tend to congregate at key focal points, meaning
some significant areas within the Resort are underutilised.
Green season
Notwithstanding that the Resort still suffers from a lack
of recognisable green season facilities and activities, the
number of visitors to the Resort during the non-winter
season continues to grow slowly. An estimated 60,6311
people visited the Resort during the green season.
GREEN SEASON
70000
60000
50000
40000
Visitations
30000
20000
10000
0
2009-2010 2010-2011 2011-2012 2012-20132013-2014
For the purpose of extrapolating visitor numbers, average vehicle occupancy rates (3.7 per vehicle) are used in conjunction with vehicle counts to
estimate the number of visitors to Lake Mountain.
1
7
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Whilst the Board continues to push for the development
of commercial partnerships that will expand on the array
of activities on offer in the Resort during the green season,
no significant facilities have been developed as yet.
However, these efforts will continue.
The Resort has created some significant partnerships
with event promoters, including those responsible for
offering the Warrior Challenge, fun runs, mountain bike
races, and various music events. Increasingly, the Resort
is developing a reputation as a suitable venue for event
organisers to conduct events at. This is seen as a future
growth prospect for the Resort.
Biking (whether road cycling or mountain biking)
continues to draw increasing numbers of people to the
Resort. Various bike events have been conducted with
Lake Mountain as a feature, and many road cyclists have
appreciated the initiative to close access to traffic during
set periods of time on some weekends to enable them
to ride up to the Resort without conflicting with motor
vehicles.
The Board continues to plan for the creation of a
mountain bike track from the Resort to Marysville – a track
that will complement the existing tracks available within
the Resort.
Local skiers’ development and ambassador
program
Managers within the Lake Mountain team have initiated
a local young skiers’ development program, to encourage
local resident students to pursue their development as
elite cross-country skiers, which will hopefully culminate
in them representing Australia at the Olympic Games
and world championships. Two young local skiers,
Katerina Paul and Casey Wright, have participated in this
program and are now recognised ambassadors for the
Lake Mountain Resort. It has been a pleasure to watch
the development of these two wonderful representatives
of the Lake Mountain Resort, as they work their way up
the rankings. Everyone associated with the Resort wishes
them every success.
Bjarne K Dahl Trust Boardwalk
One of the highlights of the year was the opening of
the Bjarne K Dahl Trust Boardwalk, which provides a
magnificent outlook over the mountainous valleys and the
eucalypts towards Melbourne. The boardwalk came about
through the initiative of staff of National Australia Bank,
who donated time and resources to creating the first stage
of this boardwalk. The Resort was able to complete the
construction of the boardwalk, and install interpretative
signage, as a result of the generosity of the Trustees of the
Bjarne Dahl Trust in donating monies to the project.
The Bjarne Dahl Trust is an environmental philanthropic
organisation established to focus on eucalypt conservation
and education in Australia.
The Board looks forward to continuing the relationship
with the Trust, with the Trust’s core value being to
promote the appreciation of eucalypt species. The
boardwalk adds another piece to the mosaic on offer that
provides an enriching experience for people visiting the
Resort.
Environmental management
The Board has again complied with its Water Authority
responsibilities, and continues to implement its
Environmental Management Plan. The Board is engaging
constructively with Parks Victoria to protect and preserve
the natural land values within the Resort and the
neighbouring Yarra Ranges National Park, a part of which
the Board has formalised access rights over, in order to
enhance its cross-country ski product offer.
The Board continues to monitor key measures, including
waste per winter season visitor; diesel usage per winter
season visitor; and the amount of waste generated in the
Resort, and also monitors the quality of water downstream
of the Resort’s sewer treatment plant. The results of the
monitoring of these measures have been acceptable, but
further improvements will be sought in future years.
The Board is a partner with Murrindindi Shire Council
and other government agencies in the region’s fire and
emergency management plan.
8
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Financial Information
Operational and Budgetary Objectives
The Board had budgeted for a deficit of
approximately $1.18 million dollars, with the benefit
of anticipated funding for essential operational
purposes from the Department of Environment,
Land, Water and Planning of $2.63 million.
Major Changes of Factors Affecting
Performance
The combination of additional revenue generated from a
significantly larger number of visitors to the Resort during
the winter season than budgeted, and the continued
implementation of improved management of operational
expenditures, enables the Board to report a much smaller
than expected deficit of $210,098. This achievement is
further enhanced by noting that the level of operational
funding from the Department of Environment, Land,
Water and Planning was significantly less than the
previous year, a figure that goes some way in indicating
that the Resort is being managed in a more financially
sustainable manner.
That having been said, the government provided other
funding to the Resort for purposes other than to fund
essential operating expenditure. $264,000 was received
to fund a project to establish a more stable management
structure for the Resort, of which $124,858 remains
unspent. Further work is anticipated on this project in the
coming year. A small specific purpose grant of $37,000
was also received, to enable the Board to fund projects to
address specific risk mitigation works.
9
Significant changes in financial position
during the year
The Board has been able to accumulate a pool of funds
at year-end, which could be used to address specific items
not classified as essential operational expenditure items,
and/or to reduce the amount of government funding
required to fund Resort activity in the coming financial
year.
Revenue from all visitor-related sources increased from
2013, as would be expected with the number of winter
season visitors increased by 81%. Comparative annual
information for the major revenue streams is shown in
Note 2 to the Financial Statements.
These revenue increases were achieved whilst also
containing employment-related expenses (reduced by
0.07%, following a significant decrease in employment
costs in the previous financial year) and reducing
marketing expenditure by 6.1%.
Payments to Belgravia Leisure increased as a result of
its full year of management. Under the terms of the
management agreement with Belgravia Leisure a further
incentive payment maybe be payable at the end of April,
which is the end of the term of management upon which
the management performance bonus is to be based.
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Non-operating expenses incurred by the Board, those
being those outside the control of the Commercial
Manager, were approximately 2% higher than in 2013.
In summary, the Board finds itself in a much stronger
financial position than in recent years, which, with
sustained good management and continued support from
government, it expects to continue into the future.
Subsequent events
Government funding of $150,000 will be provided in the
2014-15 reporting period for geo-tech risk mitigation
works.
10
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Five Year Summary of Financial Results
The table below shows the five year summary of the Resort’s Financial Results:
Table 4
Comprehensive Income
Statement
2014
2013
2012
2011
2010
$
$
$
$
$
Operating
3,000,761
1,536,046
2,363,747
1,599,330
2,135,428
Support Payments
2,464,009
3,122,206
1,798,245
3,227,000
-
45,896
761,445
1,032,581
1,380,242
1,809,758
113,057
145,074
265,091
221,968
366,955
-
-
-
532,002
3,881,786
10,078
7
-
-
-
5,633,801
5,564,779
5,459,664
6,960,542
8,190,502
Operating
4,732,590
4,661,545
4,478,381
4,037,804
4,005,429
Depreciation
1,093,697
1,138,898
1,291,856
942,688
787,392
9,724
66,541
287,749
130,637
161,013
5,836,011
5,866,984
6,057,986
5,111,129
4,953,834
(7,888)
1,113
(210,098)
(301,092)
(594,151)
1,849,413
3,236,668
2014
2013
2012
2011
2010
$
$
$
$
$
Income
Other Funding
Other Non-Operating Income
Proceeds from Insurance Claims
Interest revenue
Total Income
Expenses
Geotech
Total Expenses
Net gain/(loss) on disposal of
non-financial assets
Comprehensive Result
Profit/(Loss)
Balance Sheet
1,520,737
643,108
656,047
271,390
3,484,258
Non-Financial Assets
Financial Assets
21,194,365
22,181,575
23,209,604
24,728,506
18,717,159
Total Assets
22,715,102
22,824,683
23,882,711
24,999,896
22,201,417
496,725
396,206
1,184,118
1,707,052
1,994,384
Net Assets
22,218,377
22,428,477
22,698,593
23,292,844
20,207,033
Equity
22,218,377
22,428,477
22,698,593
23,292,844
20,207,033
Total Liabilities
11
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Corporate Governance
The Board
Lake Mountain Alpine Resort Management Board at
31 October 2014 comprised:
Tony Thompson (Chairperson)
Kevin Ritchie (Deputy Chairperson)
Deborah Culhane
Tony Nippard
Robert Thomason
Haley Tudor-Harrop
Dr John Miller retired from the Board on 28 October
2014.
Tony Thompson
Tony Thompson has had his own businesses for
approximately 28 years (mainly Hospitality). For the past
13 years, Tony and his wife Penni have owned and run
Maryton Park B & B Country Cottages and The Marysville
Beer & Platter Garden. Tony has also been a Director
of the Dandenong Ranges Banking Group (Bendigo
Community Bank) since its inception 15 years ago.
Other boards include Marysville & Triangle Community
Foundation, Regional Development Australia (Hume
Region) and Gallipoli Park – Section 86 Committee.
Since the Black Saturday Fires in 2009, Tony has been the
Chairman of the Community Recovery Committee, dealing
with a large array of regional matters including tourism;
development; mental health; and the overall recovery of
the Marysville and Triangle Area.
and has worked with a variety of other community,
industry, and indigenous groups in northern and northeast Victoria, in land use, water management and other
key regional issues.
Kevin maintains an active interest and involvement in
outdoor activities as a semi-regular cyclist and a camper,
and continues to have an active interest in environmental
management and change, cultural and community
interests, and public policy.
Deborah Culhane
Deborah Culhane was appointed to Lake Mountain Alpine
Resort Management Board in October 2010, and brings to
the Board a strong commercial legal background, having
practised for many years as a corporate lawyer with the
tourism- and entertainment-focused Village Roadshow
group of companies. She has experience in marketing;
events; liquor licensing; commercial leasing; film and
media; employment law; and occupational health and
safety.
With a passion for Marysville, Deborah enjoys taking an
active role in the regeneration of tourism and commerce
in the region, and is also a member of the Marysville
and Triangle Community Foundation Board. She is a
viola player and a strong advocate of community musicmaking, serving as Treasurer of the Board of the Murray
Conservatorium of Music.
With two Italian Greyhounds in tow, Deborah is a keen
walker, but also likes to leave the terra firma for the
experience of sailing and ocean racing.
Kevin Ritchie
Kevin Ritchie has extensive experience in management
of public land and natural resources, having worked with
the then Department of Sustainability and Environment
(and some of its predecessor organisations) for many
years, especially in north-east Victoria. Kevin was Regional
Director in the Department’s NE Region, and a senior
project manager.
Kevin has been actively involved in planning matters
relating to various Victorian alpine resorts, and worked
with the Murrindindi Bushfire Recovery program after the
Black Saturday fires. Kevin has experience in governance
issues, as a board member of both the North-East and the
Goulburn-Broken Catchment Management Authorities,
12
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
John Miller (retired 28 October 2014)
Robert Thomason
Dr John Miller AO is an experienced cross-country skier,
holding both the Global Worldloppet Skier designation
and five Masters’ titles from the Worldloppet cross-country
skiing organisation. He has completed over 60 marathons
or half-marathons, most recently five in Europe. He is
a member of Wangaratta Ski Club and London Region
Nordic Ski Club.
Rob Thomason has more than 30 years’ experience
working in education, consulting, and executive
development, gained both in Australia and internationally.
John is an experienced board director for both the private
sector and the public sector. He holds Honorary Life
Membership of both CPA Australia and the Australian
Institute of Company Directors. His career includes
being a Chief Executive Officer on four occasions, and
being a Professorial Fellow at Monash University and
Swinburne University of Technology. The author of five
books on business, management, and finance, John has
been awarded the Order of Australia and the Australian
Centenary Medal.
Tony Nippard (appointed 28 October 2014)
Tony Nippard is currently Executive Director, Knowledge
Management & Governance, of the Victorian State Public
Sector Commission. Prior to that, Tony has had extensive
experience as a senior executive in various roles, primarily
in the areas of health and human services. Tony has a
Bachelor of Arts, Bachelor of Commerce (Hons), and
Master of Arts from the University of Melbourne. He
is Fellow of the Australasian College of Health Services
Management, Fellow of Institute of Chartered Secretaries,
Fellow of Governance Institute of Australia, and graduate
of the Australian Institute of Company Directors.
Tony has been a director of not-for-profit and public
entities since 1988, in the arts; mortgage finance;
community health; health information management;
and children services, as well as advisory committees on
child protection, public sector governance, and tertiary
education. He is currently on the boards of Westside
Circus Inc.; Northern Metropolitan Institute of TAFE; Neami
Ltd; and the Victorian Defence Reserves Support Council.
13
He is currently a member of the executive team at
CPA Australia, where he is responsible for new market
development and international alliances. Prior to that,
he was responsible for the professional development
programs across that organisation. Rob has worked with
Fairfax Media, one of Australia’s largest media companies,
and he was Director, Executive Education, of the esteemed
Melbourne Business School. He has held senior roles in
the private and public sector; university management;
business development; and professional association
management.
Rob has held a number of directorships, including the
United States-based University Consortium for Executive
Education, a successful financial services training company,
and is currently Chairman of CPA Australia (Shanghai) Ltd.
As a member of Lake Mountain Alpine Resort
Management Board, Rob hopes to see the Resort become
a year-round recreation facility, accessible to all. He is a
downhill skier and keen walker, having completed major
hikes in South America, New Zealand, and the United
Kingdom.
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Haley K Tudor-Harrop (appointed 28 October
2014)
Haley K Tudor-Harrop is an experienced chartered
accountant, having previously been a partner in a
chartered accountancy practice. After taking a career
break to have a family, she has recommenced in the
accounting and taxation world with a local practice in
Mansfield, Victoria.
Haley recently graduated from the Australian Institute of
Company Directors. She is currently Company Secretary
(three years) for Mansfield & District Community
Enterprises (MDCE) Ltd, which operates the Mansfield &
District Community Bank, and previously sat on that board
as Treasurer for four years. Haley also holds a position
on the board of Mansfield Community Education Centre
(“MACE”) Inc., located in Mansfield, which operates
as a registered training organisation, community-based
childcare centre, and neighbourhood house. Haley was
affiliated with MACE Inc. as Treasurer for the past three
years. Haley has also held a number of other voluntary
positions with local committees over the past 10 years.
Haley focuses on areas of taxation and accounting, as well
as board and organisation governance.
In her spare time, Haley spends time on the water with
her friends and family, including her two young daughters
and husband. Prior to a tree-change back in 2003, Haley
grew up and was educated in the Yarra Valley of Victoria,
obtaining her accounting degree through Swinburne
University of Technology.
14
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Meeting attendance
Lake Mountain Alpine Resort Management Board
Board Member
Meeting
Tony Thompson
Kevin Ritchie
Deborah Culhane John Miller
Robert Thomason
Nov-13
√
-
√
√
√
Dec-13
√
√
√
√
√
Jan-14
√
√
-
-
√
Feb-14
√
√
√
√
√
Mar-14
√
√
√
√
√
Apr-14
√
√
√
-
-
May-14
-
√
√
√
√
Jun-14
√
√
√
√
√
Jul-14
√
-
√
√
-
Aug-14
√
√
√
-
√
Sep-14
√
√
-
√
√
Oct-14
√
√
√
√
√
12
11
10
10
9
10
Risk, Audit and Finance Committee
Long Term Management Arrangements Committee
Committee member
Committee member
Meeting
John
Miller
Robert
Thomason
Deborah
Culhane
Kevin
Ritchie
Meeting
Tony
Thompson
Deborah
Culhane
Nov-13
√
√
√
-
Nov-13
√
-
Jan-14
-
√
-
√
Dec-13
√
√
May-14
√
√
√
√
Feb-14
√
√
Sep-14
√
√
√
√
Mar-14
√
√
Oct-14
√
√
√
√
Apr-14
√
√
5
4
5
4
4
May-14
√
√
6
6
5
15
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Gifts, Benefits and Hospitality Framework
Attestation
I, Tony Thompson, Chairperson of Lake Mountain Alpine
Resort Management Board, certify that:
•m
y public entity has gifts, benefits, and hospitality
policies and procedures in place;
• t hese policies and procedures are consistent with the
minimum requirements and accountabilities outlined in
the Gifts, Benefits and Hospitality Policy Framework for
the Victorian Public Sector – Revised April 2012 issued
by the Public Sector Standards Commissioner; and
• t hese policies and procedures are updated, promulgated,
and provided to the Risk, Audit Committee for review at
least once a year.
Insurance Attestation
I, Tony Thompson, Chairperson of Lake Mountain Alpine
Resort Management Board, certify that the Lake Mountain
Alpine Resort Management Board has complied with
Ministerial Direction 4.5.5.1 – Insurance.
Tony Thompson
Chairperson
Lake Mountain Alpine Resort Management Board
17 February 2015
16
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Charter and Purpose
Manner of Establishment and Responsible
Minister
Lake Mountain Alpine Resort Management Board is
established under the Alpine Resorts (Management) Act
1997 (“the Act”). The responsible Minister for the period
from 1 November 2013 to 31 October 2014 was the Hon
Ryan Smith MP, Minister for Environment and Climate
Change.
The Government’s vision for alpine resorts in
Victoria, as outlined in the Alpine Resorts Strategic
Plan 2012, is:
Victoria’s alpine resorts will be vibrant, growing and
sustainable places, delivering alpine recreational and
tourism experiences that are available to all.
Lake Mountain Alpine Resort Management Board is
committed to the following vision:
Lake Mountain will be a year-round resort where visitors
engage in recreational and nature-based experiences
that are precious, unique, exciting, and contribute to the
regional economy.
Objectives, Functions, Powers and Duties
Section 38 of the Alpine Resorts (Management) Act
1997 specifies the functions of the Board:
• T o plan for the development, promotion, management,
and use of the alpine resort in accordance with the
object of the Act;
• T o develop and promote or facilitate the development
or promotion by others of the use of the alpine resort in
accordance with the object of the Act;
• T o manage the alpine resort in accordance with the
object of the Act;
• T o contribute to the development of the Alpine Resorts
Strategic Plan and other strategic planning for alpine
resorts as a whole;
• T o undertake research into alpine resort issues;
• T o contribute to and support the operation of the Alpine
Resorts Co-ordinating Council;
• T o prepare and implement a Strategic Management Plan
for the resort;
• T o expend or apply revenue of the Board in accordance
with a direction of the Minister under section 36(1A) of
the Act;
• T o manage the Crown land in Lake Mountain by acting
as a Committee of Management under the Crown Land
(Reserves) Act 1978;
• T o contribute, together with Tourism Victoria and the
Alpine Resorts Co-ordinating Council, to the overall
promotion of alpine resorts;
• T o develop a tourism and marketing strategy and to
promote the resort;
• T o collect fees prescribed by the regulations for the
resort;
• T o attract investment for the improvement of the resort;
and
• T o carry out any other function conferred on the Board
by this or any other Act.
17
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Nature and Range of Services
Lake Mountain Alpine Resort Management Board
ensures that a number of services are provided in the
Resort including:
• Water supply
• Sewerage and drainage
• Car park development and maintenance
• Garbage and waste disposal
• Electricity
•C
ommercial operations including products associated with
food and beverage, ski hire, ski school, retail
• Snow clearance
• Traffic control and parking
• Trail grooming, construction and maintenance
• Ski patrolling
• Snowmaking
• Snow and weather reporting
• Tourism and education information
• Public shelters
• Toilets
18
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Report against Corporate Plan Objectives
Strategic Objective
Key element
Outcomes
Measures of Performance
1
Service delivery
model
•M
anagement agreement is in
place until April 2015.
• T o be completed after financial
results are known
2
Arrange a
management
structure
that provides
financially
sustainable
outcomes
Achieve
excellence
in board
governance and
compliance
• F unding arrangements with
Department of Environment,
Land, Water and Planning are
in place and understood, but
are to be reviewed in the period
leading up to April 2015.
Long term asset
and investment
management
• Proposals of capital investment
•R
epairs and maintenance
have been identified and a
program performed as planned
repair and maintenance program
and within budget.
instigated.
Organisational
planning,
monitoring and
reporting
• Board has developed and
submitted plans and reports and
has monitored performance of
the Resort throughout the year.
Policy
• Board has maintained its review
development and
and improvement of its suite of
monitoring of
policies, and other governance
performance
documents.
• n/a
• P olicies in place as required by
Public Administration Act 2004
and Directions of Minister of
Finance.
•B
oard performance appraisal
program completed.
3
4
19
Improve the
experience for
visitors coming to
Lake Mountain
Compliance
• Board’s compliance
responsibilities have been
fulfilled.
•N
o known instances of failure
to lodge documents and/
or information and make
payments as required.
Business
planning and
marketing
• P ro-active development of
increased range of activities,
events and service delivery
improvements.
• Winter season visitors.
Product offer
and service
• Reasonable visitation and spend
given late start to green season
management in 2013-2014 and
poor quality of winter season.
•R
esults of customer satisfaction
surveys are being collated by
Alpine Resorts Coordinating
Council contractor and are not
yet available.
•$
22.88 spend per visitor in
winter season.
Build partnerships Stakeholder
• S trong relationships with the
• E vidence of strong bonds and
with regional
Engagement
Department, and local Marysville
co-operation.
commercial
business community and
operators and
Murrindindi Shire Council.
other groups
Partnerships with • New Parks Victoria agreement
•N
ew agreement being
land managers
being negotiated.
finalised.
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Strategic Objective
Key element
Outcomes
5
Environmental
management
• E nvironment protected, and
•D
iesel usage 1.372litres per
consciousness of energy use and
winter season visitor day
desire to minimise.
(3.58lites per winter season
visitor day).
Maintain
the alpine
environment
for which it has
responsibility
Measures of Performance
•0
.0006 cubic metres of
waste removed from Resort
per winter season visitor day
(2013- 0027 cubic metres per
visitor).
•C
lear Water regulation audit
report received and annual
report to authorities lodged on
time.
6
7
Fulfil the
community
service
obligations that
the ARMB has
accepted
Access, diversity
and equity
principles
• Resort continues to attract
visitors from a diverse range of
cultural backgrounds and socioeconomic groups.
•N
o measurement of visitor
profile undertaken, but
diversity is evident from
observation of visitor
population.
Economic
contribution to
the Region
• Resort continues to contribute
significantly to the Marysville
region.
•N
o measure of regional
economic contribution
undertaken in 2014.
Have clear resort
management, risk,
development, fire
and emergency
plans
Strategic
Management
Resort Master
Planning
•D
raft Strategic Management
Plan updated, and made
ready for full review of future
Management and Resort Master
Plans in 2014.
•C
ompletion of Resort
Master Plan and Strategic
Management Plan is expected
early in 2015.
Fire and
Emergency
Management
• Fire management regime
• F ire plans followed and
followed, and Resort prepared in
preparedness checklist
accordance with Plan for 2013completed.
2014 fire season.
• S igned Community Emergency
Management Plan with
Murrindindi Shire Council.
Risk
Management
• Fisk Framework reviewed and
•R
egular review of Risk
modified and Profile of identified
Management System was
risks reassessed.
undertaken to the satisfaction
of the Board.
•WHS policies reviewed and
updated.
20
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Governance and Organisational Structure
The management model
After a rigorous tender process, the Board continued the
evolution of its management structure, through the reengagement of Belgravia Leisure to manage the operation
of the Resort. This one-year contract expires at the end
of April 2015, however there are options for an extension
of the term into the future. The Board also continued to
contract Luminous biz to provide administrative services
to the Board, to ensure that the Board was able to
fulfil its legislated functions and compliance obligations
effectively. These commercial arrangements worked well
for the Board, as is reflected in the financial results and in
the progress that has been made toward achieving many
of the corporate objectives, a report upon which is to be
found later in this annual report.
Table 5
The Board
(LMARMB
Executive
Officer (0.2 EFT)
Audit, Risk and Finance
Committee
Workplace Safety
Committee
21
Operations & Accounting
services contracted to
Belgravia Leisure
Administration
services contracted to
Luminous biz
Long Term Management
Arrangements Committee
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Organisational Structure
Table 6
Lake Mountain Alpine Resort
Management Board
Executive Officer- PT
(Philip Nunn)
Operations &
Accounting service
contracted to
Belgravia Leisure
Pty Ltd
Administration
service contracted
to Luminous biz
development Pty Ltd
Resort Manager - FT
(Scott Gamble)
Operations
Manager - FT
(Brett Weinberg)
Program Development
Manager - FT
(Andrew Paul)
Program Leaders
Casuals
Building Maintenance
Team Leader - FT
(Bill Morrison
Workshop Team
Leader - FT
(Jarrod Hoskins)
Resort Services Officers
2-4 FT
(Graeme Weinberg)
(David Buchanan)
(Lee Steward)
Chef / Bistro Manager
(Vacant)
Contractors
Bistro Attendants
Casuals
Administration - PT
(Mary-ann Neal)
Bar Attendant
Casuals
Program Attendants
Casuals
Resort Services Officers
- 2-4 FT
(Graeme Wienberg)
(David Buchanan)
(Lee Stewart)
During the course of the year, Belgravia Leisure continued
to perform the role of managing staff employed in the
Resort. Some staff working at the Resort remained
employed by the Board, whilst other staff were employed
and supplied by Belgravia Leisure. Staff members
are employed under the terms of the Lake Mountain
Alpine Resort Workplace Agreement, which is due for
renegotiation
22
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Workforce Data Disclosures
The following data relates to staff members who remain employed by the Board. Aside from the Executive Officer, staff
members are managed by Belgravia Leisure. Belgravia employees are not included in the information contained in the
table below.
Table 7
Ongoing employees
Fixed term &
Casual employed
during the season
Fixed term &
Casual employed
at the end of year
Number
(Headcount)
Full time
(Headcount)
Part time
(Headcount)
FTE
FTE
FTE
2014
7
4
3
5.8
-
-
2013
6
4
2
5.6
-
-
2012
18
16
2
16.7
101
1
2014
Ongoing
Headcount
FTE
Male
7
5.8
Female
0
0
2013
Fixed term & casual at
end of year
Ongoing
Fixed term & casual at
end of year
Headcount
FTE
-
6
5.6
-
-
0
0
-
Age
15-25
0
25-34
1
0
0.8
1
0.8
35-44
1
1.0
1
1
45-54
2
1.8
2
1.8
55-64
2
1.2
1
1
65 plus
1
1.0
1
1
Ongoing employees means people engaged on open-ended contracts of employment, and executives engaged on a
standard executive contract who were active in the last full pay period in October.
FTE means full-time staff equivalent.
Responsible persons and executive officer disclosures
Table 8
Income band
$0-$9,999
$10,000-$19,999
$30,000-$39,999
$100,000-$119,999
$130,000-$139,999
$150,000-$159,999
$190,000-$199,999
$1,200,000-$1,209,999
Total numbers
Total amount
23
Total remuneration
2014
5
2
1
8
$205,329
2013
7
1
1
9
$226,187
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
24
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Other Information
Disclosure Index
Consultancies and Contracts
Declaration of Pecuniary Interests
The Board outsourced a significant number of its activities
during this year. Contractors engaged included Belgravia
Leisure to manage the Resort, and Luminous biz was
engaged as project manager of the tender process and
also to provide administrative support to the Board to
enable it to operate effectively. The quantum of payments
made to these contractors is disclosed in Note 19 (iii) of
the Notes to the financial statements.
A comprehensive register is maintained. This contains
details relating to members of the Board and senior Resort
staff.
Details of Shares held in Statutory Authority or
Subsidiary
Not applicable. There are no shares of this nature in Lake
Mountain Alpine Resort.
Disclosure of Major Contracts
There were no contracts greater than $10 million entered
into by the Board during 2013-14.
Details of Consultancies in Excess of $10,000
Table 9
Expenditure
in reporting
period
Future commitment
Consultant
Services provided
Lion Capital
Advisory Pty Ltd
Engaged to provide commercial advice
in respect to the public tender process to
engage a commercial operator.
$182,853
No future commitment
Allens Linklaters
Engaged to provide advice and develop
contractual documents for the management
agreement with the commercial operators.
$83,059
No future commitment
RSM Bird
Cameron
Engaged to provide probity advice and
assurance in respect to the public tender
process.
$15,292
No future commitment
Crowe Howarth
Engaged to provide internal audit services,
and to provide taxation advice in relation to
issue with the ATO.
$101,165
No future commitment, although
expectation is that they will
continue to act as the Board’s
internal audit service providers.
25
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Details of Consultancies under $10,000
There were two consultancies the expenditure on which
was less than $10,000. The total expenditure on these
consultancies during 2013-14 was $8,941.
Employment and Conduct Principles
Victorian Public Service merit and equity principles are
applied in the appointment and management of staff.
Lake Mountain Alpine Resort Management Board follows
the employment and conduct principles set out in the
Public Administration Act 2004.
Belgravia Leisure is contracted by the Board to manage
the operation of the Resort. A clause in the contractual
agreement between the Board and Belgravia Leisure
prescribes that Belgravia Leisure is to adhere to values that
are consistent with those of the public sector, is to provide
appropriate training, and follow employment principles
that are consistent with those of the public sector. The
Board is satisfied that these obligations are being fulfilled.
Government Advertising Expenditure
Government policy requires disclosure of all Government
Advertising Expenditure with a total media buy of
$150,000 or greater (exclusive of GST). No Government
Advertising Expenditure was incurred by Lake Mountain
Alpine Resort Management Board during the reporting
period.
Workplace Health and Safety
The Board is responsible for providing a safe working and
recreational environment, free from accidents and injuries,
for all Board employees, contractors, and visitors to the
Resort. The Board is committed to ensuring that all people
affected by its activities are protected from loss and from
risks to safety, health, and wellbeing. The Board works
with Belgravia Leisure to ensure that appropriate health
and safety measures are in place in the Resort.
Whilst general training is provided on workplace health
and safety, specific courses are provided where new
equipment is provided for use by the resort operations
staff.
The Board monitors monthly reports on workplace- and
public safety-related injuries. The number and nature of
injuries and incidents are similar to those experienced in
previous years.
Building Standards
There have been no building and construction activities in
the Resort during this reporting period.
Buildings in the Resort are subject to regular maintenance
and use. There is no evidence to suggest that all recently
constructed buildings within the Resort do not conform
to building standards. There have been no major works
on these buildings during the reporting period.
The buildings will be subject to regular inspection by
Resort operations staff and maintenance and rectification
works will be carried out as required and identified.
Victorian Industry Participation Policy Disclosures
In October 2003, the Victorian Parliament passed the
Victorian Industry Participation Policy Act
2003, which requires public bodies and departments to
report on the implementation of the Victorian Industry
Participation Policy (VIPP). Departments and public bodies
are required to apply VIPP in all tenders over $3 million
in metropolitan Melbourne and $1 million in regional
Victoria.
In 2013-2014 there were no tenders to disclose based on
these expenditures.
Reviews of workplace health and safety are conducted
regularly, with no significant workplace health and safety
issues identified that are yet to be addressed.
The Board has reviewed and adopted amendments to
its Workplace Health and Safety Policies, and through its
resort management team conducts regular meetings of
its Workplace Health and Safety Committee. Outcomes of
these meetings are reported to the Board, via the Audit,
Risk, and Finance Committee.
26
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Application and Operation of Freedom of
Information Act 1982
Lake Mountain Alpine Resort Management Board is
considered to be a Government Agency under the
Freedom of Information Act 1982, and as such is required
to abide by the requirements of the Act.
The Board comprises individuals who are recognised
as having an understanding of alpine issues, and who
represent the views of the various sections of the public
that have an interest in the Board.
The Board holds and maintains the following categories of
documents:
• Correspondence files;
• Minutes of the various meetings held within the Board;
• T echnical reports and statistical information on
Lake Mountain Alpine Resort Management Board
management matters;
• L easehold documents related to Lake Mountain Alpine
Resort Management Board sites; and
• P lans, charts and other topographical data covering Lake
Mountain Alpine Resort Management Board land.
Copies of the Board’s policy statements, annual reports
and general information related to the Board are available
for inspection at the Board’s office and/or online at
www.lakemountainresort.com.au. This literature is also
available by mail at a minimum charge of $24.40.
A person seeking access to a particular document held
by the Board can write to the Freedom of Information
Officer identified below, describing, in as much detail as
possible, the nature of the document required, or can
make an online request at https://online.foi.vic.gov.au/foi/
foi_request_details
An application fee of $25.10 applies at the time of
publication. All requests are required to be actioned within
45 days. The Freedom of Information Officer is responsible
for the processing of these requests to finality, and may be
contacted as follows:
27
Freedom of Information Officer
Lake Mountain Alpine Resort Management Board
PO Box 40
Marysville VIC 3779
Phone: (03) 5957 7201
In the year ended 31 October 2014, there were no
freedom of information requests, and there were no
outstanding items from previous years.
Compliance with Building Act 1993
There were seven buildings owned by the Board all
conforming to building standards as at 31 October 2014.
Statement on National Competition Policy
Competitive neutrality is a guiding principle of
the National Competition Policy and requires that
government-owned businesses should compete with
private sector businesses on the same footing. Lake
Mountain Alpine Resort Management Board is committed
to this principle of the National Competition Policy and
applies competitive neutrality policy to all significant
activities where the benefits of competitive neutrality
exceed the costs. This policy has a stated objective to
achieve the most efficient provision of publicly provided
goods and services.
Purchases of goods and services are in line with the
Victorian Government Purchasing Board’s guidelines. This
process ensures that goods and services are purchased at
the most competitive prices.
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Application and Operation of the Protected
Disclosures Act 2012
The Protected Disclosure Act 2012 (“PD Act”) enables
people to make disclosures about improper conduct by
public officers and public bodies. The Act aims to ensure
openness and accountability by encouraging people to
make disclosures and protecting them when they do.
What is a ‘protected disclosure’?
A protected disclosure is a complaint of corrupt or
improper conduct by a public officer or a public body.
Lake Mountain Alpine Resort Management Board is a
“public body” for the purposes of the PD Act.
What is ‘improper or corrupt conduct’?
Improper or corrupt conduct involves substantial:
• mismanagement of public resources; or
• risk to public health or safety or the environment; or
• corruption.
The conduct must be criminal in nature or a matter for
which an officer could be dismissed.
How do I make a ‘protected disclosure’?
You can make a protected disclosure about Lake Mountain
Alpine Resort Management Board or its board members,
officers, or employees by contacting Department of
Environment, Land, Water and Planning (“DELWP”) or
Independent Broad-Based Anti-Corruption Commission on
the contact details provided below.
Please note that Lake Mountain Alpine Resort
Management Board is not able to receive protected
disclosures.
How can I access Lake Mountain Alpine Resort
Management Board’s procedures for the protection
of persons from detrimental action?
DELWP has established procedures for the protection of
persons from detrimental action in reprisal for making a
protected disclosure about Lake Mountain Alpine Resort
Management Board or its employees. You can access
DELWP’s procedures on its website at http://www.depi.vic.
gov.au/about-us/legislation/protected-disclosures
Contacts
DELWP:
Jennifer Berensen
Senior Advisor, Privacy and Ombudsman
PO Box 500, East Melbourne Victoria 8002
Telephone: 9637 8697
Website: www.depi.vic.gov.au
Independent Broad-Based Anti-Corruption
Commission (“IBAC”) Victoria:
Address: Level 1, North Tower, 459 Collins Street, Melbourne Victoria 3000.
Mail: IBAC, GPO Box 24234, Melbourne Victoria
3001
Website: www.ibac.vic.gov.au
Telephone 1300 735 135
Summary of Environmental Performance
There were no office-based environmental impacts in
2013-14.
Compliance with DataVic Access Policy
Consistent with the DataVic Access Policy issued by
the Victorian Government in 2012, the Board intends
that data tables that it may produce in the future will
be available at http://www.data.vic.gov.au in machinereadable format.
Statement of Availability of Other
Information
Information relevant to the headings listed in Financial
Reporting Direction 22D of the Financial Management Act
1994 is held at Lake Mountain Alpine Resort Management
Board’s office and is available on request, subject to the
Freedom of Information Act 1982.
Further information can be obtained in writing from:
Lake Mountain Alpine Resort Management Board
PO Box 40
Marysville VIC 3779
Phone: (03) 5957 7201
28
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Risk Management Compliance Attestation
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
To ensure that risks are being managed in a
consistent manner, public sector entities are required
to attest in annual reports that:
• E ntities have in place risk management processes
consistent with the Australian/New Zealand Risk
Management Standard (or equivalent designated
standard);
• T hese processes are effective in controlling the risks to a
satisfactory level; and
•A
responsible body or audit committee verifies that view.
Lake Mountain Alpine Resort Management Board has
in place a risk management framework, incorporating a
policy and strategy. The risk management framework and
risk management plan is reviewed regularly and updated
annually.
Lake Mountain Alpine Resort Management
Board
I, Tony Thompson, certify that Lake Mountain Alpine
Resort Management Board 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 Board’s Risk, Audit, and Finance
Committee verifies this assurance and that the risk profile
of Lake Mountain Alpine Resort Management Board has
been critically reviewed within the last 12 months.
Tony Thompson
Chairperson
Lake Mountain Alpine Resort Management Board
17 February 2015
29
General Information Requirements
Section 4.2(g) of the Standing Directions of the
Minister for Finance states:
‘The report of operations should include qualitative
and quantitative information on the operations of the
public sector agency and should be prepared on a
basis consistent with the financial statements prepared
by the public sector agency pursuant to the FMA. This
report should provide users with general information
about the entity and its activities, operational
highlights for the reporting period, future initiatives
and other relevant information not included in the
financial statements.’
This Annual Report for Lake Mountain Alpine Resort
Management Board meets this requirement.
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Declaration by the
Chairperson and the
Executive Officer
Sign-off requirement
The attached financial statements for Lake Mountain
Alpine Resort Management Board (“the Board”) have
been prepared in accordance with the financial reporting
requirements of the Financial Management Act 1994,
applicable Financial Reporting Directions, Australian
accounting standards including Interpretations, and other
mandatory professional reporting requirements.
We further state that, in our opinion, the information set
out in the comprehensive operating statement, balance
sheet, statement of changes in equity, cash flow statement
and accompanying notes, presents fairly the financial
transactions during the year ended 31 October 2014 and
financial position of the Board at 31 October 2014.
At the time of signing, we are not aware of any
circumstance which would render any particulars included
in the financial statements to be misleading or inaccurate.
We authorise the attached financial statements for
issue on 17 February 2015.
Tony Thompson
Chairperson
Lake Mountain Alpine Resort
Management Board
Melbourne
17 February 2015
Philip Nunn
Executive Officer/Chief Finance and Accounting Officer
Lake Mountain Alpine Resort
Management Board
Melbourne
17 February 2015
30
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
31
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
32
Lake Mountain Alpine
Resort Management
Board
Financial Statements for the year ending
31 October 2014
33
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
34
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Comprehensive operating statement for the financial year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Comprehensive operating statement for the financial year ended 31 October 2014
Notes
2014
$
2013
$
Income from transactions
Interest revenue
2(a)
10 078
7
Visitor fees
2(b)
3 000 761
1 536 046
Government funding and grants
2(c)
2 509 905
3 883 651
Other revenue
2(d)
113 057
145 075
5 633 801
5 564 779
Total income from transactions
Expenses from transactions
Employee benefits
3(a)
(488 177)
(1 014 842)
Depreciation expense
3(b)
(1 093 697)
(1 138 898)
Interest expense
3(c)
(304)
(13 754)
Contractor Expenses
3(d)
(1 929 388)
(1 543 930)
Other expenses
3(e)
(2 324 445)
(2 155 560)
(5 836 011)
(5 866 984)
(202 210)
(302 205)
(7 888)
1 113
(7 888)
1 113
Net result
(210 098)
(301 092)
Comprehensive result
(210 098)
(301 092)
Total expenses from transactions
Net result from transactions (net operating balance)
Other economic flows included in net result
Net gain/(loss) on disposal of non-financial assets
Total other economic flows included in net result
4
The comprehensive operating statement should be read in conjunction with the notes to the
financial statements.
35
2
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Balance sheet as at 31 October 2014 Lake
Mountain Alpine Resort Management Board
Balance sheet as at 31 October 2014
Notes
2014
$
2013
$
17(a)
1 367 215
564 637
153 522
78 471
1 520 737
643 108
6
70 951
72 595
127 232
120 832
7
20 996 182
21 988 148
Total non-financial assets
21 194 365
22 181 575
Total assets
22 715 102
22 824 683
251 708
201 505
Assets
Financial assets
Cash and deposits
Receivables
5
Total financial assets
Non-financial assets
Inventories
Prepayments
Property, plant and equipment
Liabilities
Payables
8
Borrowings
9
52 875
-
Provisions
10
192 142
194 701
496 725
396 206
22 218 377
22 428 477
5 901 510
6 111 610
Total liabilities
Net assets
Equity
Accumulated surplus/(deficit)
Physical asset revaluation surplus
18
10 226 415
10 226 415
Contributed capital
12
6 090 452
6 090 452
22 218 377
22 428 477
Total Equity
Commitments for expenditure
Contingent assets and contingent liabilities
14
15
The balance sheet should be read in conjunction with the notes to the financial statements.
36
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Statement of changes in equity for the financial year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Statement of changes in equity for the financial year ended 31 October 2014
$
Physical asset
revaluation
surplus
$
6 975 975
10 226 415
6 090 452
Accumulated
surplus
Balance at 1 November 2011
Contributed
capital
TOTAL
$
$
23 292 842
30 976
-
-
30 976
Net result for the year
(594 251)
-
-
(594 251)
Restated Balance at 31 October 2012
6 412 700
10 226 415
6 090 452
22 729 567
30 976
-
-
30 976
Net result for the year
(332 068)
-
-
(332 068)
Prior period error
Prior period error
Restated Balance at 31 October 2013
6 111 608
10 226 415
6 090 452
22 428 475
Net result for the year
(210 098)
-
-
(210 098)
Balance at 31 October 2014
5 901 510
10 226 415
6 090 452
22 218 377
Notes: Refer to details of prior year errors in Note 1 (r).
The statement of changes in equity should be read in conjunction with the notes to the financial
statement.
37
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Lake Mountain Alpine Resort Management Board
Cash flow statement for theCash
financial
ended for
31 October
2014 year ended 31 October 2014
flow year
statement
the financial
2014
$
2013
$
Receipts from Government
2 509 905
3 201 274
Receipts in the course of operations
3 426 938
1 887 054
1 462
7
Total receipts
Cash payments to suppliers for goods and services
5 938 305
(2 488 083)
5 088 335
(2 388 394)
Cash payments to and on behalf of employees
Cash payments to contractors
(490 735)
(2 059 899)
(1 171 532)
(1 704 881)
(304)
(39 963)
(13 753)
233 005
(5 078 984)
(5 045 555)
859 321
42 780
-
9 000
Purchase of non-financial assets
(56 743)
(58 875)
Net cash flows from/(used in) investing activities
(56 743)
(49 875)
Repayment of borrowings and finance leases
-
(17 068)
Net cash flows from/(used in) financing activities
-
(17 068)
Net increase/(decrease) in cash and cash equivalents
802 578
(24 163)
Cash and cash equivalents at beginning of financial year
564 637
588 800
1 367 215
564 637
Notes
Cash flows from operating activities
Receipts
Interest received
Interest paid
Net GST (paid)/received
Total payments
Net cash flows from/(used in) operating activities
17(b)
Cash flows from investing activities
Sale of non-financial assets
Cash flows from financing activities
Cash and cash equivalents at end of financial year
17(a)
The cash flow statement should be read in conjunction with the notes to the financial statements.
38
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Mountain
Alpine
Resort2014
Management Board
Notes to the financial statementsLake
for the
year ended
31 October
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies
The Lake Mountain Alpine Resort Management Board (the Board) has been established pursuant to the Alpine
Resorts (Management) Act 1997 (“the Act”), which also outlines the functions, responsibilities and
requirements of the Board.
The annual financial statements represent the audited general purpose financial statements for the Lake
Mountain Alpine Management Board for the period ending 31 October 2014.
The purpose of the financial statements is to provide users with information about the Board’s stewardship of
resources entrusted to it.
(a) Statement of compliance
These general purpose financial statements have been prepared in accordance with the financial
reporting requirements of the Financial Management Act 1994 (FMA) and applicable Accounting
Standards (AASs) which include interpretations, issued by the Australian Accounting Standards Board
(AASB).
Notwithstanding that the general purpose financial statements have been prepared on the above basis;
the Board has only been partially compliant with a Standing Direction of the Minister of Finance, which is
issued pursuant to section 8 of the FMA. Specifically, the Board has not fully complied with Standing
Direction 2.4: Authorisations, Delegations and Procedures, as it has not complied with Procedure (i)
which states that “An authorisation cannot be given to a contractor or consultant.”
Non-compliance with Standing Direction 2.4: Authorisations, Delegations and Procedures
Since 1 November 2012, management of the day to day operations of the Lake Mountain Alpine Resort
Management Board has been outsourced to Belgravia Leisure Pty Ltd under a management agreement.
Belgravia Leisure Pty Ltd, as part of this agreement, was also contracted to provide associated back office
functions, including finance and accounting, human resources, marketing and IT for the Board. Further
details regarding this arrangement can be found in Note 1 (g) and Note 3 (d). Whilst the Board had
internal controls in place, representatives of the contractor Belgravia Leisure Pty Ltd were authorised by
the Board to enter into transactions that obligated the Board to expenditure commitments. This is in
contravention of Standing Direction 2.4: Authorisations, Delegations and Procedures, which state that
such authorisations can only be given to specific positions with a public sector agency.
Non-compliance with section 56 General Accounts of the Board of the Act
In addition to the non-compliance with Standing Direction 2.4: Authorisations, Delegations and
Procedures, for the year ended 31 October 2014, the Board did not comply with section 56 General
Accounts of the Board of the Act which require all monies received on behalf of the Board be paid into
the Board’s General Account. During the course of the year monies flowing from the operation of the
resort, were initially banked into a Lake Mountain bank account controlled by Belgravia Leisure Pty Ltd,
prior to being used to fund the resort’s financial obligations or being paid into the board’s bank account.
Funds were provided by government to cover operational expenditure requirements or for specific
projects and were banked into the Board’s bank account.
The Board is working with the Department of Environment, Land, Water and Planning and the
Department of Treasury and Finance to refine its processes to enable the Board to be fully compliant with
Procedure (i) of Standing Direction 2.4, and Section 56 of the Act.
39
6
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statementsLake
for the
year ended
31 October
Mountain
Alpine
Resort2014
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(b) Basis of accounting preparation and measurement
The accrual basis of accounting has been applied in the preparation of these financial statements
whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which
they relate, regardless of when cash is received or paid.
Judgements, estimates and assumptions are required to be made about the carrying values of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are
based on professional judgements derived from historical experience and various other factors that are
believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and also
in future periods that are affected by the revision. Judgements and assumptions made by management in
the application of AASs that have significant effects on the financial statements and estimates, relate to
•
•
•
the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(j)); and
superannuation expense (refer to Note 1(g)); and
actual assumptions for employee benefit provisions based on likely tenure of existing staff,
patterns of leave claims, future salary movements and future discount rates (refer to Note1(k)).
These financial statements are presented in Australia dollars, and prepared in accordance with the
historical cost convention except for:
(i)
non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount
being their fair value at the date of the revaluation less any subsequent accumulated depreciation
and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that
the carrying amounts do not materially differ from their fair value.
Consistent with AASB 13 Fair Value Measurement, the Board determines the policies and procedures for
recurring fair value measurements such as property, plant and equipment in accordance with the
requirements of AASB 13 and the relevant Financial Reporting Directions.
All assets for which fair value is measured or disclosed in the financial statements are categorised within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable; and
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For the purpose of fair value disclosures, the Board has determined classes of assets on the basis of the
nature, characteristics and risks of the asset and the level of the fair value hierarchy as explained above.
In addition, the Board determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level of input that is significant to the fair valuation
measurement as a whole) at the end of each reporting period.
7
40
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements
for Mountain
the year ended
31 October
2014
Lake
Alpine
Resort Management
Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(b) Basis of accounting preparation and measurement (continued)
The Valuer-General Victoria (VGV) is the Board’s independent valuation agency. The Board, in
conjunction with VGV, monitors changes in the fair value of each asset through relevant data sources to
determine whether revaluation is required.
(c) Reporting entity
The financial statements cover the Board as an individual reporting entity. The Board is an entity
established under the Alpine Resorts (Management) Act 1997. Its principal address is:
Lake Mountain Alpine Resort Management Board
Lake Mountain Road
Lake Mountain VIC 3779
The Board is a public body acting on behalf of the Crown, and reporting to the Department of
Environment, Land, Water and Planning.
(d) Scope and presentation of financial statements
Comprehensive operating statement
The comprehensive operating statement comprises three components, being ‘net result from
transactions’ (or termed as ‘net operating balance’. ‘Other economic flows included in net result’, as well
as ‘other economic flows – other comprehensive income’. The sum of the former two, together with the
net result from discontinued operations, represents the net result.
The net result is equivalent to profit or loss derived in accordance with AASs.
This classification is consistent with the whole of government reporting format and is allowed under
AASB 101 Presentation of Financial Statements.
‘Other economic flows’ are changes arising from market re-measurements. They include:
•
•
•
•
gains and losses from disposals, revaluations and impairments of non-financial physical and
intangible assets;
actuarial gains and losses arising from defined benefit superannuation plans;
fair value changes of financial instruments and agricultural assets; and
depletion of natural assets (non-produced) from their use or removal.
The net result is equivalent to profit or loss derived in accordance with AASs.
Balance sheet
Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and nonfinancial assets.
Current and non-current assets and liabilities (non-current being those assets or liabilities expected to be
recovered or settled beyond 12 months after the reporting period) are disclosed in the notes, where
relevant.
41
8
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements
for the
year ended
31 October
2014
Lake
Mountain
Alpine
Resort Management
Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(d) Scope and presentation of financial statements (continued)
Cash flow statement
Cash flows are classified according to whether or not they arise from operating, investing, or financing
activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.
Statement of changes in equity
The statement of changes in equity presents reconciliations of each non-owner and owner changes in
equity from opening balances at the beginning of the reporting period to the closing balance at the end
of the reporting period. It also shows separately changes due to amounts recognised in the
“comprehensive result” and amounts related to “transactions with owner in its capacity as owner”.
Rounding of amounts
Amounts in the financial statements (including the notes) have been rounded to the nearest dollar,
unless otherwise stated. Figures in the financial statements may not equate exactly due to rounding.
Comparative information
The following comparative information within the notes to the financial statements have been amended:

In Note 2, the line item Package sales has been allocated to the attributing revenue items within
visitors fees for comparability purposes. The underlying value has not changed.
(e) Change in accounting polices
Subsequent to the 2012-13 reporting period, the following new and revised Standards have been
adopted in the current period with their financial impact detailed below.
AASB 13 Fair Value Measurement
AASB 13 establishes a single source of guidance for all fair value measurements. AASB 13 does not
change when the Board is required to use fair value, but rather provides guidance on how to measure fair
value under Australian Accounting Standards when fair value is required or permitted. The Board has
considered the specific requirements relating to highest and best use, valuation premise and principal (or
most advantageous) market. The methods, assumptions, processes and procedures for determining fair
value were revisited and no adjustments were made. In light of AASB 13, the Board has reviewed the fair
value principles as well as its current valuation methodologies in assessing the fair value, and the
assessment has not materially changed the values recognised.
However, AASB 13 has predominately impacted the disclosures of the Board. It requires specific
disclosures about fair value measurements and disclosure of fair values, some of which replace existing
disclosure requirements in other standards, including AASB 7 Financial Instruments: Disclosures.
The disclosure requirements of AASB 13 apply prospectively and need not be applied in comparative
information before first application. Consequently, the 2012-13 comparatives of these disclosures have
not been provided.
9
42
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statementsLake
for the
year ended
31 October
Mountain
Alpine
Resort2014
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1. Summary of significant accounting policies (continued)
(e) Change in accounting polices (continued)
AASB 119 Employee Benefits
In 2013-14 the Board has applied AASB 119 Employee Benefits (September 2011, as amended) and the
related consequential amendments for the first time.
The revised standard changes the definition of short-term employee benefits. These were previously
benefits that were expected to be settled within twelve months after the end of the reporting period in
which the employee render the related service, however, short-term employee benefits are now defined
as benefits expected to be settled wholly within twelve months after the end of the reporting period in
which the employees render the related service. The Board has considered employee benefits relating to
annual leave and has determined that the provisions are expected to be wholly settled within 12 months
of reporting date. Likewise, prior period provisions were wholly settled within 12 months of reporting
date.Accordingly, there has been no change to measurement basis of employee benefits and the
comparative balances do not require restatement in accordance with the transitional provisions of AASB
119 Employee Benefits. (refer also to Note 1(k) Liabilities).
(f) Income from transactions
Income is recognised to the extent that it is probable that the economic benefits will flow to the entity
and the income can be reliably measured at fair value.
Interest
Interest income is recognised using the effective interest method which allocates the interest over the
relevant period.
Income from sale of goods and services
Sale of goods and services includes regulatory fees which are recognised at the time the regulatory fee is
charged.
Income from the sale of goods is recognised when:
•
•
•
•
the Board no longer has any of the significant risks and rewards of ownership of the goods
transferred to the buyer;
the Board no longer has continuing managerial involvement to the degree usually associated with
ownership, nor effective control over the goods sold;
the amount of income, and the costs incurred or to be incurred in respect of the transactions, can be
reliably measured;
it is probable that the economic benefits associated with the transaction will flow to the Board.
Visitor fees
Revenue is recognised at the point of sale, when services are rendered.
43
10
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements
for the
year ended
31 October
2014
Lake
Mountain
Alpine
Resort Management
Board
Notes to the financial statements for the year ended 31 October 2014
Note 1. Summary of significant accounting policies (continued)
(f) Income from transactions (continued)
Government funding and grants
Grants from third parties (other than contributions by owners) are recognised as income in the reporting
period in which the Board gains control over the contribution.
For reciprocal grants (i.e. equal value is given back by the Board to the provider), the Board is deemed to
have assumed control when the Board has satisfied its performance obligations under the terms of the
grant. For non reciprocal grants, the Board is deemed to have assumed control when the grant is
receivable or received. Conditional grants may be reciprocal or non reciprocal depending on the terms of
the grant.
Grants and contributions for capital works from all sources are recognised as operating revenue when an
entitlement is established, and disclosed in the comprehensive operating statement as government
grants. However grants and contributions received from the Victorian State Government that are deemed
as being in the nature of owner’s contributions, in accordance with FRD 119A Contributions by Owners
are accounted for as Equity – Contributed Capital.
Other revenue
Other revenue includes income from fuel tax credits, agreement with a third party for supply of electricity
and minor miscellaneous items received outside normal operating revenue.
(g) Expenses from transactions
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Employee expenses
These expenses include all costs related to including wages and salaries, fringe benefits tax, leave
entitlements, redundancy payments and WorkCover premiums.
Superannuation
The amount recognised in the comprehensive operating statement in relation to employer contributions
for members of both the defined benefit and defined contribution superannuation plans that are paid or
payable to these plans during the reporting period.
The Department of Treasury and Finance (DTF) in their Annual Financial Statements, disclose on behalf of
the State as the sponsoring employer, the net defined benefit cost related to the members of these plans
as an administered liability. Refer to DTF’s Annual Financial Statements for more detailed disclosures in
relation to these plans.
Depreciation
All infrastructure assets, buildings, plant and equipment and other non-financial physical assets
(excluding items under operating leases and land) that have finite useful lives are depreciated.
Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value, less
any estimated residual value, over its estimated useful life.
11
44
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1. Summary of significant accounting policies (continued)
(g) Expenses from transactions (continued)
The estimated useful lives, residual values and depreciation method are reviewed at the end of each
annual reporting period, and adjustments made where appropriate.
Amendment to accounting policy
In the financial year ended 31 October 2011, the Board underwent a formal revaluation of its land,
buildings and infrastructure assets. This valuation, conducted by Valuer-General of Victoria, highlighted
the remaining useful lives of the Board’s asset base. In 2011-12, management commenced calculating on
this basis however the Board did not reflect such changes in its accounting estimates in its 2011-12
financial report and subsequent financial reports as required under AASB 108 Accounting Policies,
Changes in Accounting Estimates and Errors.
The following table indicates the actual estimated useful lives used by management but not reflected in
financial reports since 2011-12.
2014
Buildings and improvements
9 – 45 years
2013 (as reported since
2011-12)
45 years
Trails
17 years
20 years
Toboggan runs
17 years
20 years
Water and sewerage
10 – 30 years
20 – 40 years
Boardwalks
20 years
20 years
Roads and car parks
Plant and machinery
9 – 25 years
5 – 20 years
10 – 40 years
5 – 25 years
Office equipment
3 – 10 years
3 – 10 years
Ski equipment
3 years
3 years
Land, which is considered to have an indefinite life, is not depreciated. Depreciation is not recognised in
respect to Land assets because their service potential has not, in any material sense, been consumed
during the reporting period.
Interest expense
Interest expense is recognised in the period in which it is incurred and includes:
•
•
•
•
bank overdrafts and short-term and long-term borrowings;
interest on Treasury Corporation of Victoria loans;
amortisation of ancillary costs incurred in connection with the arrangement of borrowing; and
finance and operating lease charges.
Other operating expenses
Other operating expenses generally represent the day-to-day running costs incurred in normal operations.
45
12
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements
for the
year ended
31 October
Lake
Mountain
Alpine
Resort 2014
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(g) Expenses from transactions (continued)
Supplies and services
Supplies and services expenses are recognised as an expense in the reporting period in which they are
incurred. The carrying amounts of any inventories held for sale or use are expenses when sold or used.
Contractor expenses
As a result of the Short Term Management Project, the Board contracted the operation of the resort to
Belgravia Health & Leisure Pty Ltd, a private operator. The contractor expenses relating to Belgravia,
included the management fee payable to that company, and payment for the outlay incurred by that
company in employing people, and purchasing goods and services connected to the cost effective
operation of the Resort.
The Board also contracted Luminous Biz Development to act as the Project Manager for the Long Term
Management Project and to provide management support and executive assistance to the Board.
(h) Other economic flows included in the net result
Other economic flows measure the change in volume or value of assets or liabilities that do not result
from transactions.
Net gain/ (loss) on non-financial assets
Net gain/ (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as
follows:
Revaluation gains/ (losses) of non-financial physical assets
Refer to Note 1 (j).
Disposal of non-financial assets
Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is
determined after deducting from the proceeds the carrying value of the asset at that time.
Impairment of non-financial assets
Assets are assessed annually for indications of impairment, except for inventories and non-current
physical assets held for sale.
If there is an indication of impairment, the assets concerned are tested as to whether their carrying value
exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the
difference is written off as an other economic flow, except to the extent that the write-down can be
debited to an asset revaluation surplus amount applicable to that class of asset.
If there is an indication that there has been a reversal in the estimate of an asset’s recoverable amount
since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable
amount. The impairment loss is reversed only to the extent that the asset’s carrying amount does not
13
46
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statementsLake
for the
year ended
31 October
Mountain
Alpine
Resort2014
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(h) Other economic flows included in the net result (continued)
exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised in prior years.
It is deemed that, in the event of the loss or destruction 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. 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.
Refer to Note 1(j) in relation to the recognition and measurement of non-financial assets.
(i) Financial assets
Cash and deposits
Cash and deposits recognised on the balance sheet comprise cash on hand and cash at bank, deposits at
call and those highly liquid investments (with an original maturity of three months or less), which are held
for the purpose of meeting short term cash commitments rather than for investment purposes, and
readily convertible to known amounts of cash with an insignificant risk of changes in value.
For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts,
which are included as borrowings on the balance sheet.
Receivables
Receivables consist of:


Contractual receivables, such as debtors in relation to goods and services, loans to third parties,
accrued investment income, and finance lease receivables; and
Statutory receivables, such as amounts owing from Victoria Government and Goods and Services
Tax (GST) input tax credits recoverable.
Contractual receivables are classified as financial instruments and categorised as loans and receivables.
Statutory receivables, are recognised and measured similarly to contractual receivables (except for
impairment), but are not classified as financial instruments because they do not arise from a contract.
Receivables are subject to impairment testing as described below. A provision for doubtful receivables is
recognised when there is objective evidence that debts may not be collected, and bad debts are written
off when identified.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is derecognised when:
•
47
the rights to receive cash flows from the asset have expired; or
14
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements
for the
year ended
31 October
Lake
Mountain
Alpine
Resort 2014
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(i) Financial assets (continued)
•
•
the Board retains the right to receive cash flows from the asset, but has assumed an obligation to pay
them in full without material delay to a third party under a ‘pass through’ arrangement; or
the Board has transferred its rights to receive cash flows from the asset and either:
(i) has transferred substantially all the risks and rewards of the asset, or
(ii) has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
Where the Board has neither transferred nor retained substantially all the risks and rewards or
transferred control, the asset is recognised to the extent of the Board’s continuing involvement in the
asset.
Impairment of financial assets
At the end of each reporting period, the Board assesses whether there is objective evidence that a
financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of
the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit
ratings. All financial instrument assets, except those measured at fair value through profit or loss, are
subject to annual review for impairment.
Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as
written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual
consent and the allowance for doubtful receivables are classified as ‘other economic flows’ in the net
result.
The amount of the allowance is the difference between the financial asset’s carrying amount and the
present value of estimated future cash flows, discounted at the effective interest rate.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial
instruments, professional judgement is applied in assessing materiality using estimates, averages and
other computational methods in accordance with AASB 136 Impairment of Assets.
(j) Non-financial assets
Inventories
Inventories comprise goods held for sale and stores and materials used in the consumption in the
ordinary course of resort operations. Inventories are measured at the lower of cost and net realisable
value. Cost is measured on the basis of weighted average cost.
15
48
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements
for the
year ended
31 October
Lake
Mountain
Alpine
Resort 2014
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(j) Non-financial assets (continued)
Property, plant and equipment
Property, plant and equipment includes land, buildings, roads, infrastructure, plant, equipment, furniture
and motor vehicles. Items with a cost or value in excess of $1,000 and a useful life to the Board of more
than one year are capitalised. Ski equipment purchased in bulk and used to generate cash inflows from
the operation of ski hire and ski school activities is also included in this class of assets.
All non-financial physical assets are measured initially at cost and subsequently revalued at fair value less
accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is
its fair value at the date of acquisition. More details about the valuation techniques and inputs used in
determining the fair value of non-financial physical assets are discussed in Note 7 Property, plant and
equipment.
Non-financial physical assets such as land are measured at fair value with regard to the property’s highest
and best use after due consideration is made for any legal or physical restrictions imposed on the asset,
public announcements or commitments made in relation to the intended use of the asset. Theoretical
opportunities that may be available in relation to the asset are not taken into account until it is virtually
certain that the restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of
these non-financial physical assets will be their highest and best uses.
The fair value of infrastructure systems, including roads, and plant, equipment and vehicles, is normally
determined by reference to the asset’s depreciated replacement cost.
The cost of constructed non-financial physical assets includes the cost of all materials used in
construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads
The initial cost for non-financial physical assets under a finance lease (refer to Note 1(l)) is measured at
amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease
payments, each determined at the inception of the lease.
Subsequent to the initial recognition as assets, all non-current physical assets are measured at fair value.
Revaluations are made with sufficient regularity to ensure that the carrying amount of each asset does
not differ materially from its fair value at the reporting date. Values are assessed annually and
supplemented by independent assessments. All assets are tested for indication of impairment on an
annual basis. Such assets are tested to ascertain whether the carrying amount exceeds their recoverable
amount. Revaluations are conducted in accordance with Financial Reporting Direction (FRD) 103E - Noncurrent physical assets. The most recent valuation was undertaken as at 31 October 2011.
Revaluation increments are credited to a revaluation reserve and decreases are recognised as an expense
in the comprehensive operating statement. To the extent that a revaluation decrease reverses a
revaluation increment previously credited to and still included in the balance of the asset revaluation
reserve, the decrease is debited directly to that reserve up to the value of that prior increment.
49
16
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statementsLake
for the
year ended
31 October
Mountain
Alpine
Resort2014
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(j) Non-financial assets (continued)
The revaluation of buildings, roads and infrastructure has been accounted for using the net method
whereby the accumulated depreciation at the date of the valuation is eliminated against the carrying
amount of the asset with the net difference adjusted directly to the asset revaluation reserve.
The Board undertook a revaluation of its land assets at 31 October 2011 using the ‘fair value’
methodology. The revaluation was performed by the Valuer-General Victoria. Under fair value the
Board’s interest in the Crown’s leasehold land is measured based on a direct market comparison
approach, whereby the subject properties are compared to recent land sales. Broad area land values
have been applied to the other areas of the Board’s controlled area based on comparable sales evidence
methodology. The addition of these values represents the fair value of the land assets under the Board’s
control. The figures do not include any improvement values.
The fair value of plant, equipment and vehicles, is normally determined by reference to the asset’s
depreciated replacement cost.
In accounting for the sale of property, plant and equipment only the net profit/(loss) on disposal is shown
on the comprehensive operating statement as required under AASs.
For the accounting policy on impairment of non-financial physical assets, refer to impairment of nonfinancial assets under Note 1(h) Impairment of non-financial assets.
Other non-financial assets
Prepayments
Other non-financial assets include prepayments which represent payments in advance of receipt of goods
or services or that part of expenditure made in one accounting period covering a term extending beyond
that period.
(k) Liabilities
Payables
Payables consist of:


contractual payables, such as accounts payable, and unearned income. Accounts payable
represent liabilities for goods and services provided to the Board prior to the end of the
financial year that are unpaid, and arise when the Board becomes obliged to make future
payments in respect of the purchase of those goods and services.
Statutory payables included in payables mainly consist of goods and services tax and fringe
benefits tax payables, and accrued employee expenses.
17
50
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements
for the
year ended
31 October
Lake
Mountain
Alpine
Resort 2014
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(k) Liabilities (continued)
Payables are initially recognised at fair value, being the cost of the goods and services, and subsequently
measured at amortised cost. Statutory payables are recognised and measured similarly to contractual
payables, but are not classified as financial instruments and not included in the category of financial
liabilities at amortised cost, because they do not arise from a contract.
Borrowings
Borrowings are initially measured at fair value, being the cost of the borrowings, net of transaction costs
(refer also to Note 1(l) Leases).
Subsequent to initial recognition, borrowings are measured at amortised cost with any difference
between the initial recognised amount and the redemption value being recognised in net result over the
period of the borrowing using the effective interest method.
Provisions
Provisions are recognised when the Board has a present obligation, the future outflow of economic
benefits is probable, and the amount of the provision can be measured reliably.
The amount recognised as a liability is the best estimate of the consideration required to settle the
present obligation at reporting period, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash flows estimated to settle the present obligation,
its carrying amount is the present value of those cash flows, using discount rate that reflects the time
value of money and risks specific to the provision.
When some or all of the economic benefits required to settle a provision are expected to be received
from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be
received and the amount of the receivable can be measured reliably.
Employee benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and
long service leave for services rendered to the reporting date.
(i) Wages and salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits annual leave, are all
recognised in the provision for employee benefits as “current liabilities”, because the Board does
not have an unconditional right to defer settlements of these liabilities.
Depending on the expectation of the timing of settlement, liabilities for wages and salaries,
annual leave and sick leave are measured at:
 Undiscounted value if the Board expects to wholly settle within 12 months; or
 Present value if the Board does not expect to wholly settle within 12 months.
51
18
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements
for Mountain
the year ended
31 October
2014
Lake
Alpine
Resort Management
Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(k) Liabilities (continued)
(ii) Long service leave
Liability for long service leave (LSL) is recognised in the provision for employee benefits.
Unconditional LSL (representing seven or more years of continuous service) is disclosed as a
current liability, even where the Board does not expect to settle the liability within 12 months
because it will not have the unconditional right to defer the settlement of the entitlement should
an employee take leave within 12 months.
The components of this current LSL liability are measured at:


Undiscounted value if the Board expects to wholly settle within 12 months; and
Present value if the Board does not expect to wholly settle within 12 months.
Conditional LSL representing less than seven years of continuous service is disclosed as a noncurrent liability. There is an unconditional right to defer the settlement of the entitlement until
the employee has completed the requisite years of service. This non-current LSL liability is
measured at present value.
Consideration is given to expect future wage and salary levels, experience of employee,
departures and periods of service. Expected future payments are discounted using a single
weighted average discount rate based on market yields of national government bonds in
Australia that reflects the estimated timing and amount of benefit payments.
(iii) Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement
date, or when an employee accepts voluntary redundancy in exchange for these benefits. The
Board recognises termination benefits when it is demonstrably committed to either terminating
the employment of current employees according to a detailed formal plan without possibility of
withdrawal or providing termination benefits as a result of an offer made to encourage voluntary
redundancy. Benefits falling due more than 12 months after the end of the reporting period are
discounted to present value.
(iv) Employee benefits on-costs
Employee benefits on-costs (payroll tax, workers compensation and superannuation) are
recognised separately from provision for employee benefits.
(l) Leases
A lease is a right to use an asset for an agreed period of time in exchange for payment.
Leases are classified at their inception as either operating or finance leases based on the economic
substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of
property, plant and equipment are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are
classified as operating leases.
19
52
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements
for the
year ended
31 October
2014
Lake
Mountain
Alpine
Resort Management
Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(l) Leases (continued)
Finance leases
The Board as lessee
At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at
amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease
payment, each determined at the inception of the lease. The lease asset is depreciated over the shorter
of the estimated useful life of the asset or the term of the lease.
Minimum finance lease payments are apportioned between reduction of the outstanding lease liability
and periodic finance expense which is calculated using the interest rate implicit in the lease and charged
directly to the comprehensive operating statement. Contingent rentals associated with finance leases are
recognised as an expense in the period in which they are incurred.
Operating leases
The Board as lessor
Rental income from operating leases would be recognised on a straight-line basis over the term of the
relevant lease. There is currently no leases of Crown Land within the Lake Mountain Alpine Resort.
The Board as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in the
comprehensive operating statement on a straight-line basis over the lease term, except where another
systematic basis is more representative of the time pattern of the benefits derived from the use of the
leased asset. The leased asset is not recognised in the balance sheet.
(m) Equity
Contributions by owners
Additions to net assets which have been designated as contributions by owners are recognised as
contributed capital. Other transfers that are in the nature of contributions or distributions have also been
designated as contributions by owners.
(n) Commitments
Commitments are disclosed at their nominal value and inclusive of the goods and services tax (GST)
payable.
(o) Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by
way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are
presented inclusive of GST receivable or payable respectively.
53
20
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(p) Accounting for the goods and services tax (GST)
Income, expenses and assets are recognised net of the amount of associated GST, unless the GST
incurred is not recoverable from the taxation authority. In this case, it is recognised as part of the cost of
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the taxation authority is included with other receivables
or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the taxation authority, are presented as
operating cash flow.
(q) Events after the reporting period
Assets, liabilities, income or expenses arise from past transactions or other past events. Where the
transactions result from an agreement between the Board and other parties, the transactions are only
recognised when the agreement is irrevocable at or before the end of the reporting period.
Adjustments are made to amounts recognised in the financial statements for events which occur after
the reporting period and before the date the financial statements are authorised for issue, where those
events provide information about conditions which existed in the reporting period. Note disclosure is
made about events between the end of the reporting period and the date the financial statements are
authorised for issue where the events relate to conditions which arose after the end of the reporting
period and which may have a material impact on the results of subsequent reporting periods.
(r) Adjustment to prior period balances
Adjustments to prior period balances and transactions are required as a result of transposition errors
when applying the estimate of useful life to certain assets.
This has led to the following:
Understatement of buildings
2012
$
25 208
2013
$
25 208
5 768
5 768
Total impact on property plant and equipment
30 976
30 976
Overstatement of depreciation of buildings
25 208
25 208
Understatement of water and sewerage infrastructure
Overstatement of depreciation of water and sewerage infrastructure
Total impact on comprehensive result
5 768
5 768
30 976
30 976
As a result of the above the following shows a restatement of each line item in the following statements
in the financial report.
54
21
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(r) Adjustment to prior period balances (continued)
(i) Comprehensive operating statement (extract)
Notes
Reported
2013
Adjustment
Restated
2013
5 564 779
-
5 564 779
(1 169 874)
30 976
(1 138 898)
(5 897 960)
30 976
(5 866 984)
Net result from transactions (net operating balance)
(333 181)
30 976
(302 205)
Comprehensive result
(332 068)
30 976
(301 092)
Total income from transactions
Expenses from transactions
Depreciation expense
3(b)
Total expenses from transactions
(ii) Balance sheet (extract)
Notes
Property,
Plant and
Equipment
Total Assets
Net Assets
7
Reported
31/10/2011
Adjustment
for 2011-12
Restated
31/10/2012
Reported
31/10/2013
Adjustment
for 2012-13
Restated
31/10/2013
23 045 083
30 976
23 076 059
21 926 196
61 952*
21 988 148
23 882 711
30 976
23 913 687
22 762 731
61 952
22 824 683
22 698 593
30 976
22 729 567
22 366 523
61 952
22 428 475
* Adjustment to reported 2013 balances includes cumulative adjustments made in the 2012 and 2013
financial year.
(iii) Statement of changes in equity (extract)
Reported
31/10/2011
Accumulated Surplus
Net equity
Adjustment
for 2011-12
Restated
31/10/2012
Reported
31/10/2013
Adjustment
for 2012-13
Restated
31/10/2013
6 381 724
30 976
6 412 700
6 049 656
61 952*
6 111 608
22 698 591
30 976
22 729 567
22 366 523
61 952
22 428 475
* Adjustment to reported 2013 balances includes cumulative adjustments made in the 2012 and 2013
financial year.
55
22
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(r) Adjustment to prior period balances (continued)
(iv) Restatement of balances in the Notes to the financial statements
The notes affected as a result of the above changes are as follows:



Note 3 (b)
Note 7
Note 17 (b)
Depreciation expense
Property, Plant & Equipment
Reconciliation of net profit for the period
(s) Australian Accounting Standards issued that are not yet effective
Certain new AASs have been published that are not mandatory for the 31 October 2014 reporting period.
DTF assesses the impact of these new standards and advises the Board of their applicability and early
adoption where applicable.
As at 31 October 2014, all new accounting standards and interpretations that had been issued but
classified as not mandatory for the financial year ended 31 October 2014 had been considered, and while
the impact of some standards was still to be assessed, the likely impact is not considered to be significant.
Standard/Interpretation
Summary
AASB 9 Financial
instruments
This standard simplifies requirements for the 1 Jan 2017
classification and measurement of financial
assets resulting from Phase 1 of the IASB’s
project to replace IAS 39 Financial
Instruments: Recognition and Measurement
(AASB 139 Financial Instruments:
Recognition and Measurement).
The preliminary assessment has not
identified any material impact arising
from AASB 9. It will continue to be
monitored and assessed.
AASB 10 Consolidated
Financial Statements
1 Jan 2014
This Standard forms the basis for
determining which entities should be
(not-for-profit
entities)
consolidated into an entity’s financial
statements. AASB 10 defines ‘control’ as
requiring exposure or rights to variable
returns and the ability to affect those returns
through power over an investee, which may
broaden the concept of control for public
sector entities.
For the public sector, AASB 10 builds on
the control guidance that existed in AASB
127 and Interpretation 112 and is not
expected to change which entities need
to be consolidated.
Applicable for
Impact on public sector entity financial
annual reporting statements
periods
beginning on
Ongoing work is being done to monitor
and assess the impact of this standard.
The AASB has issued an Australian
Implementation Guidance for Not-for- Profit
Entities – Control and Structured Entities
that explains and illustrates how the
principles in the Standard apply from the
perspective of not-for- profit entities in the
private and public sectors.
23
56
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 1.
Summary of significant accounting policies (continued)
(s) Australian Accounting Standards issued that are not yet effective
AASB 11 Joint
Arrangements
This Standard deals with the concept of joint 1 Jan 2014
control, and sets out a new principles-based (not-for-profit
entities)
approach for determining the type of joint
arrangement that exists and the
corresponding accounting treatment. The
new categories of joint arrangements under
AASB 11 are more aligned to the actual rights
and obligations of the parties to the
arrangement.
It is anticipated that there would be no
material impact.
AASB 12 Disclosure of
Interest in Other Entities
1 Jan 2014
This Standard requires disclosure of
information that enables users of financial
(not-for-profit
entities)
statements to evaluate the nature of, and
risks associated with, interests in other
entities and the effects of those interests on
the financial statements. This Standard
replaces the disclosure requirements in AASB
127 Separate Financial Statements and AASB
131 Interests in Joint Ventures.
It is anticipated that there would be no
material impact.
AASB 127 Separate
Financial Statements
This revised Standard prescribes the
accounting and disclosure requirements for
investments in subsidiaries, joint ventures
and associates when an entity prepares
separate financial statements.
1 Jan 2014
(not-for-profit
entities)
Current assessment indicates that there
is limited impact on Victorian Public
Sector entities.
AASB 128 Investments
in Associates and Joint
Ventures
1 Jan 2014
This revised Standard sets out the
requirements for the application of the
(not-for-profit
entities)
equity method when accounting for
investments in associates and joint ventures.
Current assessment indicates that there
is limited impact on Victorian Public
Sector entities.
AASB 1055 Budgetary
Reporting
AASB 1055 extends the scope of budgetary
reporting that is currently applicable for the
whole of government and general
government sector (GGS) to NFP entities
within the GGS, provided that these entities
present separate budget to the parliament.
1 July 2014
This Standard is not applicable as no
budget disclosure is required.
In addition to the new standards above, the AASB has issued a list of amending standards that are not
effective for the 2013-14 reporting period (as listed below). In general, these amending standards include
editorial and references changes that are expected to have insignificant impacts on public sector
reporting. The AASB Interpretation in the list below is also not effective for the 2013-14 reporting period
and is considered to have insignificant impacts on public sector reporting.




57
AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December
2010).
2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets.
2013-6 Amendments to AASB 136 arising from Reduced Disclosure Requirements
2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality
and Financial Instruments
24
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 2.
Income from transactions
2014
$
2013
$
Interest on bank deposits
10 078
7
Total interest revenue
10 078
7
Bistro and functions
746 678
350 471
Ski hire and ski school
620 867
311 153
Merchandise
180 991
116 934
1 412 743
730 892
31 100
25 813
8 382
783
3 000 761
1 536 046
Department of Environment and Primary Industries support payments
Department of Environment and Primary Industries payments to
settle Treasury Corporation Victoria loans
Auspiced program funding
2 464 009
3 122 206
-
689 565
45 896
71 880
Total Government funding and grants
2 509 905
3 883 651
Telecommunications tower electricity supply
25 761
31 198
Fuel Tax credit rebate
84 896
73 132
2 400
40 745
113 057
145 075
Revenue includes:
(a)
(b)
Interest Revenue
Visitor fees
Entry fees
Adventure activities
Miscellaneous revenue
Total visitor fees
(c)
(d)
Government funding and grants
Other revenue
Non-government grants and recoveries
Total other revenue
25
58
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 3.
Expenses from transactions
2014
$
2013
$
Defined contribution superannuation expense
28 721
45 063
Defined benefit superannuation expense
14 133
11 107
Notes
(a)
Employee benefits
Post employment benefits
Termination benefits
Salaries, wages, annual leave, and long service leave
Other – Fringe Benefit Tax and Payroll Tax
Total employee benefits
(b)
61 857
488 177
1 014 842
249 316
19 358
19 357
Roads and car parks
310 716
310 716
Plant and machinery
360 628
368 120
Office equipment
25 221
43 136
Ski equipment
23 934
44 477
3 468
3 468
92 556
92 556
8 510
7 752
1 093 697
1 138 898
-
13 754
Hire purchase interest
304
-
Total interest expense
304
13 754
1 465 514
1 178 637
Long term management project
316 351
265 005
Other operational, financial & administrative support
147 523
100 288
1 929 388
1 543 930
Boardwalks
Total depreciation expense (1)
Interest expense
Interest on Government loans
Contractor expense
Resort Management Agreement (2)
Total contractor expense
Other expenses
Purchase of goods and services – Operational
808 832
215 330
Audit fees
63 730
32 000
Marketing
186 034
198 553
Insurance
203 937
234 325
Repairs and maintenance
260 949
309 515
Fuel
380 277
433 969
Motor vehicle lease
119 129
110 518
9 724
66 541
Auspiced programs
102 816
210 089
Other expenses from ordinary activities (3)
189 017
344 721
2 324 445
2 155 560
Geotech expenses
Total other expenses
59
14 765
249 306
Trails
(e)
553 278
Water and sewerage
Toboggan runs
(d)
343 537
Depreciation expense
Buildings and improvements
(c)
430 558
26
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 3.
Expenses from transactions (continued)
Notes:
(1) Depreciation expense for the prior period has been restated (refer to note 1 (r)).
(2) Payments to Belgravia Health & Leisure include monthly management fees and reimbursement of payments
made by Belgravia for expenses incurred that were directly associated with the operation of the resort (to
Belgravia employees and external suppliers).
(3) Other expenses from ordinary activities included payment to the Australian Tax Office arising from back payment
of GST from prior periods ($34,552) and associated interest/penalty ($15,441).
Note 4.
Other economic flows included in net result
2014
$
2013
$
Net gain/(loss) on disposal of physical assets
(7 888)
1 113
Total other economic flows included in net result
(7 888)
1 113
Net gain/(loss) on non-financial assets
Notes:
Physical assets up to $1,000 each and previously capitalised were disposed of during 2013-14.
Note 5.
Receivables
2014
$
2013
$
47 288
49 352
8 615
-
55 903
49 352
Current
Contractual
Debtors
Sundry debtors
Statutory
Receivable from ATO
97 619
29 119
Total current receivables
153 522
78 471
Total receivables
153 522
78 471
2014
$
2013
$
Supplies and consumables – at cost
23 824
22 543
Inventories held –for
at sale
cost– at cost
47 127
50 052
Total inventories
70 951
72 595
Note 6.
Inventories
60
27
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 7.
Property, plant & equipment
(a) Gross carrying amount and accumulated depreciation
2014
$
2013
$
Gross carrying amount
4 090 000
4 090 000
Net carrying amount
4 090 000
4 090 000
Gross carrying amount
1 600 000
1 600 000
Accumulated depreciation
(277 668)
(185 112)
Net carrying amount
1 322 332
1 414 888
Land at fair value
Trails at fair value
Toboggan runs at fair value
Gross carrying amount
Accumulated depreciation
Net carrying amount
60 000
60 000
(10 404)
(6 936)
49 596
53 064
12 088 798
12 088 799
Buildings at fair value
Gross carrying amount
Accumulated depreciation
Net carrying amount
(747 565)
(498 260)
11 341 233
11 590 539
Water and sewerage infrastructure at fair value
Gross carrying amount
502 500
502 500
Accumulated depreciation
(58 072)
(38 714)
Net carrying amount
444 428
463 786
Boardwalks at fair value
Gross carrying amount
169 305
157 961
Accumulated depreciation
(24 014)
(15 504)
Net carrying amount
145 291
142 457
Gross carrying amount
3 086 000
3 086 000
Accumulated depreciation
(932 148)
(621 432)
Net carrying amount
2 153 852
2 464 568
Roads and car parks at fair value
Plant and machinery at fair value
Gross carrying amount
Accumulated depreciation
Net carrying amount
3 518 234
3 459 954
(2 156 100)
(1 802 907)
1 362 134
1 657 047
Office equipment at fair value
Gross carrying amount
Accumulated depreciation
Net carrying amount
322 395
325 771
(279 228)
(257 449)
43 167
68 322
61
28
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 7.
Property, plant & equipment (continued)
(a) Gross carrying amount and accumulated depreciation (continued)
2014
$
2013
$
Ski equipment at fair value
Gross carrying amount
Accumulated depreciation
386 689
362 817
(342 540)
(319 340)
44 149
43 477
Net carrying amount
Total gross carrying amount
25 823 921
25 733 802
Total accumulated depreciation
(4 827 739)
(3 745 654)
Total property, plant & equipment (1)
20 996 182
21 988 148
Notes:
(1) Property, plant and equipment for the prior period has been restated (refer to note 1 (r)).
29
62
63
-
Depreciation expense
4 090 000
-
Revaluation
Closing balance
-
Disposals
Opening balance
Additions
4 090 000
-
4 090 000
Closing balance
$
Land at fair
value
11 590 539
(249 316)
-
-
11 839 855
-
11 341 233
11 590 539
(249 306)
Buildings
at fair
value
$
(c) Movements in carrying amounts
4 090 000
-
2013
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
1 414 888
(92 556)
-
-
1 507 444
-
1 322 332
1 414 888
(92 556)
$
Trails at fair
value
53 064
(3 468)
-
-
56 532
-
49 596
53 064
(3 468)
$
Toboggan
runs at fair
value
463 786
(19 357)
-
-
483 143
-
444 428
463 786
(19 358)
Water &
sewerage
infrastruct
ure at fair
value
$
142 457
(7 752)
-
-
150 209
-
145 291
142 457
11 344
(8 510)
$
Boardwalks
at fair value
2 464 568
(310 716)
-
-
2 775 284
-
2 153 852
2 464 568
(310 716)
$
Roads &
car parks at
fair value
1 657 047
(368 120)
-
(13 887)
2 011 054
28 000
1 362 134
1 657 047
70 983
(5 268)
(360 628)
$
Plant &
machinery at
fair value
68 322
(43 136)
-
-
105 688
5 770
43 167
68 322
2 327
(2 261)
(25 221)
$
Office
equipment
at fair value
43 477
(44 478)
-
-
56 850
31 105
44 149
43 478
24 965
(359)
(23 934)
$
Ski
equipment
at fair
value
21 988 148
(1 138 898)
-
(13 887)
23 076 059
64 875
20 996 182
21 988 148
109 618
(7 886)
(1 093 697)
$
Total
30
All assets in a purpose group are further sub categorized according to the asset’s ‘nature’ (ie buildings, plant and equipment etc.) with each sub category being
classified as a separate class of assets for financial reporting purposes.
Opening balance
Additions
Disposals
Revaluation
Depreciation expense
2014
Property, plant & equipment (continued)
(b) Classification by ‘purpose groups’
Note 7.
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 7.
Property, plant & equipment (continued)
(d) Fair value measurement hierarchy for assets as at 31 October 2014
Carrying
amount as
at 31 Oct
2014
Fair value measurement at end of
reporting period using:
Level 1
Level 2
Level 3
Land at fair value
Specialised land
2 855 000
-
-
Non-specialised land
1 235 000
-
1 235 000
-
4 090 000
-
1 235 000
2 855 000
11 341 233
-
-
11 341 233
11 341 233
-
-
11 341 233
1 362 134
-
-
1 362 134
43,167
-
-
43,167
44,149
-
-
44 149
1 449 450
-
-
1 449 450
1 322 332
-
-
1 322 332
Total of land at fair value
2 855 000
Buildings at fair value
Specialised buildings
Total of buildings at fair value
Plant, equipment and vehicles at fair value
Plant and machinery
Office equipment
Ski equipment
Total of plant, equipment and vehicles at
fair value
Infrastructure at fair value
Trails
Toboggan runs
Water
Sewerage
Boardwalks
Roads and car parks (sealed)
Roads and car parks (unsealed)
Total of infrastructure at fair value
49 596
-
-
49 596
398 971
-
-
398 971
45 457
-
-
45 457
145 291
-
-
145 291
1 819 564
-
-
1 819 564
334 288
-
-
334 288
4 115 499
-
-
4 115 499
There have been no transfers between levels during the period.
Specialised land and specialised buildings
Specialised land is valued using the market approach, adjusted for the community service obligation (CSO) to reflect the
specialised nature of the land being valued.
The CSO adjustment is a reflection of the value’s assessment of the impact of restrictions associated with an asset to the
extent that it is also equally attributable to market participants. This approach is in light of the highest and best use
consideration required for fair value measurement, and takes into account the use of the asset that is physically possible,
legally permissible and financially feasible. As adjustments of CSO are considered as significant unobservable inputs
specialised land would be classified as level 3 assets.
Specialised buildings are valued using the depreciated replacement cost method, adjusting for the associated depreciations.
As depreciation adjustments are unobservable in nature, specialized buildings are classified as Level 3 fair value
measurements.
An independent valuation of specialized land and building was performed by the Valuer-General Victoria. The effective date of
the valuation is 31 October 2011.
31
64
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for
theMountain
year endedAlpine
31 October
2014
Lake
Resort
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 7.
Property, plant & equipment (continued)
(d) Fair value measurement hierarchy for assets as at 31 October 2014 (continued)
Fair value assessment is conducted each year. The Board considered the movement in indices provided by the Valuer-General
Victoria in order to determine whether any material movements in value have occurred since this date and is comfortable that
the values stated in these financial statements approximate fair value.
Non-specialised land
Non-specialised land is valued using the market approach. Under the market approach, the assets are compared to recent
comparable sales or sales of comparable assets, which are considered to have nominal or no added improvement value. The
valuation of such assets is performed by analyzing comparable sales and allowing for share, size, topography, location and
other relevant factors specific to the asset being valued.
An independent valuation of non-specialised land was performed by the Valuer-General Victoria. The effective date of the
valuation is 31 October 2011.
To the extent that non-specialised land does not contain significant, unobservable adjustments, these assets are classified as
Level 2 based on the existence of key observable inputs under the market approach.
Infrastructure
Infrastructure assets, including roads, trails, toboggan runs, water and sewerage, and boardwalks, are valued using the
depreciated replacement cost method. This cost represents the replacement cost of the building/component after applying
depreciation rates on a useful life basis. Replacement costs relate to costs to replace the current service capacity of the asset.
Economic obsolescence has also been factored into the depreciated replacement cost calculation.
An independent valuation of the Board’s infrastructure assets was performed by the Valuer-General Victoria. The valuation
was performed based on the depreciated replacement costs of the assets. The effective date of the valuation is 31 October
2011.
The Board assesses the fair value of its infrastructure assets annually by considering the movement in the Output Price Index
of Construction Industries and the Producer Price Index published by the Australian Bureau of Statistics in order to determine
whether any material movements in value have occurred since the last valuation date and is comfortable that the values stated
in these financial statements approximate fair value.
Plant and equipment
Plant and equipment including plant, machinery, office equipment and ski equipment are held at fair value. When plant and
equipment is specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using
the depreciated cost method.
There were no changes in valuation techniques throughout the period to 31 October 2014.
For assets measured at fair value, the current use is considered the highest and best use.
65
-
-
-
Transfers in(out) of
Level 3
Depreciation
Impairment Loss
Closing balance
Revaluation
2 855 000
-
2 855 000
-
Purchases (sales)
Subtotal
2 855 000
11 341 233
-
11 341 233
-
(249 306)
-
-
11 590 539
49 596
-
1 322 332
49 596
-
-
(3 468)
-
-
53 064
$
1 322 332
-
(92 556)
-
-
1 414 888
$
$
$
Opening balance
2014
Trails at
fair value
Buildings
at fair
value
Land at
fair value
Toboggan
runs at
fair value
398 971
-
398 971
-
(16 177)
-
-
415 148
$
Water at
fair value
Property, plant & equipment (continued)
(e) Reconciliation of Level 3 fair value
Note 7.
45 457
-
45 457
-
(3 181)
-
-
48 638
$
Sewerage
at fair
value
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
145 291
-
145 291
-
(8 510)
-
11 344
142 457
$
Boardwalks
at fair value
1 819 564
-
1 819 564
-
(295 812)
-
-
2 115 376
$
Roads &
car parks
(sealed)
at fair
value
334 288
-
334 288
-
(14 904)
-
-
349 192
$
Roads & car
parks
(unsealed)
at fair value
1 362 134
-
1 362 134
-
(360 628)
-
65,715
1 657 047
$
Plant &
machinery at
fair value
43 167
-
43 167
-
(25 221)
-
66
68 322
$
Office
equipment
at fair value
44 149
-
44 149
-
(23 934)
-
24 606
43 477
$
33
Ski
equipment
at fair
value
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
19 761 182
-
19 761 182
-
(1 093 697)
-
101 731
20 753 148
$
Total
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
66
67
Property, plant & equipment (continued)
Market approach
Depreciated
replacement cost
Depreciated
replacement cost
Depreciated
replacement cost
Depreciated
replacement cost
Specialised Land
Specialised buildings
Plant and machinery
Office equipment
Ski equipment
Valuation Technique
A significant increase or decrease in the estimated useful life
2 - 20 years (7 years)
Useful life of plant and machinery
$1,170 - $109,421 ($14,873)
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
A significant increase or decrease in the estimated useful
life of the asset would result in a significantly higher or
lower valuation.
2 - 10 years
(4 years)
Useful life of office equipment
Cost per unit
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
$1,010 - $121,860 ($9,770)
Cost per unit
of the asset would result in a significantly higher or lower
valuation.
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
of the asset would result in a significantly higher or lower
valuation.
A significant increase or decrease in the estimated useful life
$1,000 - $617,438 ($29,796)
60 years
Useful life of specialised buildings
A significant increase or decrease in direct cost per square
metre adjustment would result in a significantly higher or
lower fair value
A significant increase or decrease in the CSO adjustment
would result in a significantly lower (higher) fair value
Sensitivity of fair value measurement to changes in
significant unobservable inputs
Cost per unit
$1,500–$9,975 /m2 ($4,214)
20%
Range (weighted average)
34
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Replacement cost per square metre
Community Service Obligation (CSO)
adjustment
Significant unobservable inputs
(f) Description of significant unobservable inputs to Level 3 valuations
Note 7.
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Depreciated
replacement cost
Depreciated
replacement cost
Depreciated
replacement cost
Depreciated
replacement cost
Depreciated
replacement cost
Trails
Toboggan runs
Water Infrastructure
Sewerage
Infrastructure
Roads and Car Parks
(sealed)
Valuation Technique
Lake Mountain Alpine Resort Management Board
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
A significant increase or decrease in the estimated useful
life of the asset would result in a significantly higher or
lower valuation.
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
A significant increase or decrease in the estimated useful
life of the asset would result in a significantly higher or
lower valuation.
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
A significant increase or decrease in the estimated useful
life of the asset would result in a significantly higher or
lower valuation.
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
A significant increase or decrease in the estimated useful
life of the asset would result in a significantly higher or
lower valuation.
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
20 years
$60,000
20 years
$10,500 - $353,000 ($149,167)
20 - 40 years
(33 years)
$1,500 - $46,000
($18,333)
20 - 30 years
(27 years)
$1,149,000 - $1,558,000
($1,353,000)
Cost per unit
Useful life of the toboggan runs
Cost per unit
Useful life of the water infrastructure
Cost per unit
Useful life of the sewerage
infrastructure
Cost per unit
Useful life of the trails
($32,000)
$29,200 - $41,333
Cost per km
A significant increase or decrease in the estimated useful
life of the asset would result in a significantly higher or
lower valuation.
3 years
Useful life of ski equipment
Sensitivity of fair value measurement to changes in
significant unobservable inputs
Range (weighted average)
Significant unobservable inputs
35
Notes to the financial statements for the year ended 31 October 2014
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
68
69
Depreciated
replacement cost
Depreciated
replacement cost
Roads and Car Parks
(unsealed)
Boardwalks
Valuation Technique
A significant increase or decrease in the estimated useful
life of the asset would result in a significantly higher or
lower valuation.
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
A significant increase or decrease in the estimated useful
life of the asset would result in a significantly higher or
lower valuation.
A significant increase or decrease in cost per unit would
result in a significantly higher or lower fair value
A significant increase or decrease in the estimated useful
life of the asset would result in a significantly higher or
lower valuation.
10 years
$116,000 - $263,000
($189,500)
40 years
$5,165 - $164,140
($84,653)
20 years
Useful life of the roads and car parks
Cost per unit
Useful life of the boardwalks
Cost per unit
Sensitivity of fair value measurement to changes in
significant unobservable inputs
Range (weighted average)
36
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Significant unobservable inputs
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Mountain
Alpine
Resort2014
Management Board
Notes to the financial statementsLake
for the
year ended
31 October
Notes to the financial statements for the year ended 31 October 2014
Note 8.
Payables
2014
$
2013
$
Contractual
Creditors
Other payables and accruals
64 085
142 415
89 126
112 349
Total contractual Payables
206 500
201 475
PAYG Withholding payable
6 791
-
Superannuation payable
3 387
-
Current payables
Statutory
30
30
GST Payable
Employee deductions
35 000
-
Total statutory payables
45 208
30
251 708
201 505
2014
$
2013
$
Finance lease liabilities
16 963
-
Total current borrowings
16 963
-
Finance lease liabilities
35 912
-
Total non-current borrowings
35 912
-
Total borrowings
52 875
-
2014
$
2013
$
Unconditional and expected to settle within 12 months (ii)
59 675
64 097
Long Service Leave
Unconditional and expected to settle after 12 months (iii)
83 118
87 845
6 250
6 635
Total payables
Note 9.
Borrowings
Current borrowings
Non-current borrowings
Notes: Finance lease is secured against Plant & Equipment (an excavator).
Note 10.
Provisions
Current provisions
Annual Leave
Provisions related to employee benefit on-costs
Unconditional and expected to settle within 12 months (ii)
Unconditional and expected to settle after 12 months (iii)
Total current provisions
8 784
9 182
157 827
167 759
30 406
23 883
Non-current provisions
Employee benefits (iii)
Employee benefits on costs
Total non-current provisions
Total provisions
3 909
3 059
34 315
26 942
192 142
194 701
37
70
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 10.
Provisions (continued)
(a) Employee benefits and related on-costs
2014
$
2013
$
Annual leave entitlements
59 675
64 097
Long service leave entitlements
83 118
87 845
30 406
23 883
173 199
175 825
15 034
15 817
3 909
3 059
18 943
18 876
192 142
194 701
Current employee benefits
Non-current employee benefits
Long service leave entitlements
Total employee benefits
Current on-costs
Non-current on-costs
Total on-costs
Total employee benefits and related on-costs
Notes:
(i)
Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by
employees, not including on costs.
(ii) The amounts disclosed are nominal amounts.
(iii) The amounts disclosed are discounted to present values.
(b) Movement in provisions (on-costs)
2014
$
Opening balance
Additional provisions recognised
Reductions arising from payments/other sacrifices of future economic benefits
Effect of change in discount rates
Total employee benefits
Current
Non-current on-costs
18 878
3 039
(3 073)
99
18 943
6 251
12 692
18 943
71
38
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 11.
Superannuation
Employees of the Board are entitled to receive superannuation benefits and the Board contributes to both
defined benefit and defined contribution plans. The defined benefit plans provide benefits based on years of
service and final average salary.
The Board does not recognise any defined benefit liability in respect of the plans because the Board has no
legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay
superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s
defined benefit liabilities in its disclosure for administered items.
However, superannuation contributions paid or payable for the reporting period are included as part of
employee benefits in the comprehensive operating statement of the Board.
The name, details and amounts expensed in relation to the major employee superannuation funds and
contributions made by the Board are as follows:
Contribution
Rate
Fund
Paid Contribution
Contribution Outstanding
for the Year
at Year End
2014
$
2013
$
2014
$
2013
$
3% - 17%
14 133
11 107
296
-
9.25-9.5%
-
1 855
-
-
Defined benefit plans:
ESSS
Defined contribution plans:
Australian Super
BT
9.25-9.5%
1 131
720
175
-
Culhane Super Fund
9.25-9.5%
-
-
78
-
ESSS
9.25-9.5%
-
-
1 087
-
First Superannuation
9.25-9.5%
3 705
2 366
217
-
Host Plus
9.25-9.5%
-
6 490
-
-
Mithason Superannuation
9.25-9.5%
-
-
50
-
MTAA Super Fund
9.25-9.5%
4 639
-
352
-
Motor Trades Association of Australia
9.25-9.5%
-
4 160
-
-
One Path
9.25-9.5%
-
664
-
-
REST – Retail Employees
Superannuation Trust
9.25-9.5%
-
921
-
-
Vic Super
9.25-9.5%
18 109
22 582
1 132
-
Vision Super
9.25-9.5%
-
3 312
-
-
Other
9.25-9.5%
1 137
1 993
-
-
42 854
56 170
3 387
-
Total
Notes:
(i)
st
Employer superannuation guarantee contribution rate was increased from 9.25% to 9.5% effective 1 July 2014.
There are no unfunded liabilities associated with VicSuper Pty Ltd and State Employees Retirement Benefit
Schemes. There are no loans from any of the above funds to the Board as at 31 October 2014 (2013 – Nil).
39
72
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 12.
Contributed capital
On 30 April 1998 the Alpine Resorts Commission was dissolved and, pursuant to Section 59 of the Alpine
Resort (Management) Act 1997, seven (7) bodies were established in its place. The assets, rights and
obligations applicable to Lake Mountain Alpine Resort Management Board to the value of $2,582,889 were
transferred to the Lake Mountain Alpine Resort Management Board. As at that date, this amount was taken up
as Contributed capital in accordance with the Ministerial Directive (this amount is included in the total
Contributed capital at 31 October 2014 of $6,090,452).
Pursuant to FRD 119A under the Financial Management Act 1994, during the reporting period, the Board
received no contributed capital from the former Department of Environment and Primary Industries.
Note 13.
Leases
(a) Finance leases – Board as lessee
Leasing arrangements
Finance leases relate to plant and equipment with a lease term of 3 years.
2014
$
2013
$
Not longer than one year
19 953
-
Longer than one year and not longer than five years
38 243
-
Minimum future lease payments
58 195
-
Less future finance charges
(5 321)
-
Present value of minimum lease payments
52 875
-
Current borrowings lease liabilities (note 9)
16 963
-
Non-current borrowings lease liabilities (note 9)
35 912
-
52 875
-
Finance lease liabilities payable
Included in the financial statements as:
Notes: The finance lease relates to plant and equipment which the lease is secured.
(b) Operating leases – Board as lessee
Leasing arrangements
Operating leases relate to photocopiers with a lease term of 5 years, and vehicles with a lease term expiry of 3
years. The Board does not have an option to purchase the leased assets at the expiry of the lease period.
These figures include GST.
2014
$
2013
$
Not longer than one year
67 710
116 481
Longer than one year and not longer than five years
16 500
84 210
84 210
200 691
Non-cancellable operating lease payables
73
40
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 14.
Commitments for expenditure
The following commitments have not been recognised as liabilities in the financial statements:
2014
$
2013
$
Not longer than one year
375 320
220 020
Longer than one year and not longer than five years
115 010
245 030
Total other expenditure commitments (inclusive of GST)
490 330
465 050
Other expenditure commitments
Operation and maintenance commitments (i)
Payable:
Less GST recoverable from the Australian Tax Office
Total other expenditure commitments (exclusive of GST)
(i)
(ii)
(iii)
44 575
34 095
445 755
430 955
A supply and install agreement with Alpine XSP Pty Ltd was entered into for the service and maintenance of a
switchboard and generators. This commitment involves the expenditure of $700,000 over five years starting in
the 2010-11 financial year.
The Board has a management agreement with Belgravia Leisure which expires on 30 April 2015. As a result the
Board is committed to paying Belgravia Leisure an amount of $175,000 plus incentives for this six month period.
The Board also has an agreement for the provision of administrative services with Luminous biz development
which commits the Board to paying $8,000 per month to Luminous until 30 April 2015, when the period of the
agreement ends.
Note 15.
Contingent assets and contingent liabilities
Under the Resort Management Agreement entered into with Belgravia Health & Leisure Group, Belgravia is
entitled to an incentive payment provided Belgravia meeting the agreed performance criteria. At the reporting
date, the Board are not aware of any other contingent assets or contingent liabilities (2013: Nil).
Note 16.
Financial instruments
The Board’s principal financial instruments comprise:
 Cash assets;
 Receivables (excluding statutory receivables);
 Payables (excluding statutory payables); and
 Borrowings.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement, and the basis on which income and expenses are recognised, with respect to each class
of financial asset and financial liability above are disclosed in Note 1 to the financial statements.
The main purpose in holding financial instruments is to prudently manage the Board's financial operations.
41
74
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statementsLake
for the
year ended
31 October
Mountain
Alpine
Resort2014
Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 16.
Financial instruments (continued)
The carrying amounts of Board's contractual financial assets and financial liabilities by category are in the table
below.
Note
Category
2014
$
2013
$
1 367 215
564 637
47 288
49 352
Contractual financial assets
Cash and deposits
17
Receivables (i):
5
Cash and cash equivalents
Debtors
Loans and receivables at amortised cost
Sundry debtors
Loans and receivables at amortised cost
Total contractual financial assets
8 615
-
1 423 118
613 989
Contractual financial liabilities
Payables (i):
8
Creditors
Financial liabilities at amortised cost
64 085
89 126
Other payables
Financial liabilities at amortised cost
142 415
112 349
Financial liabilities at amortised cost
52 875
-
259 375
201 475
Borrowings:
9
Finance lease liabilities
Total contractual financial
liabilities
Note:
(i)
The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government
and GST input tax credit recoverable, and taxes payable).
Net holding gain/(loss) on financial instruments by category
2014
$
2013
$
Interest on cash and deposits
10 078
7
Total contractual financial assets
10 078
7
Contractual financial assets
Financial assets – cash and cash equivalents
Contractual financial liabilities
Financial liabilities at amortised cost:
Interest on finance leases
Interest on loans from Government
Total contractual financial liabilities
(a)
304
-
-
13 754
304
13 754
Credit risk exposure
Credit risk arises from the financial assets of the Board, which comprise cash and cash equivalents and trade
and other receivables. The Board’s exposure to credit risk arises from the potential default of counter party on
their contractual obligations resulting in financial loss to the Board. Credit risk is measured at fair value and is
monitored on a regular basis.
As at the reporting date, there is no event to indicate that any of the financial assets were impaired.
75
42
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 16.
Financial instruments (continued)
There are no financial assets that have had their terms renegotiated so as to prevent them from being past
due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the
ageing only of contractual financial assets that are past due but not impaired:
Not past
due and not
impaired
Carrying
amount
Past due but not impaired
Less than 1
month
1-3 months
3 months 1 year
$
$
$
$
$
47 288
-
28 338
18 634
316
-
8 615
8 615
-
-
-
-
55 903
8 615
28 338
18 634
316
-
Debtors
49 352
-
10 328
30 640
8 384
-
Total
49 352
-
10 328
30 640
8 384
-
2014
$
1- 5 years
Receivables:
Debtors
Sundry debtors
Total
2013
Receivables:
(b)
Liquidity risk
Liquidity risk arises when the Board is unable to meet its financial obligations as they fall due. The Board
operates under the Government fair policy of settling financial obligations within 30 days and in the event of a
dispute, make payments within 30 days from the date of resolution.
The Board’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in
the face of the balance sheet. The Board manages its liquidity risk by:
•
•
•
•
close monitoring of its borrowings by senior management, including monthly reviews on current and
future borrowing levels and requirements;
maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short
term obligations;
careful maturity planning of its financial obligations based on forecasts of future cash flows; and
a high credit rating for the State of Victoria (Moody’s Investor Services & Standard & Poor’s triple-A),
which assists in accessing debt market at a lower interest rate.
As indicated in note 21, the Board is dependent on the Victorian State government to ensure it can meet its
obligations as and when they fall due. In this respect, the Board works closely with the Department of
Environment, Land, Water and Planning to ensure support payments are received in a timely manner for it to
meet its financial obligations.
76
43
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 16.
Financial instruments (continued)
The following table discloses the contractual maturity analysis for the Board’s contractual financial liabilities.
Carrying
amount
2014
Nominal
amount
$
Maturity dates
$
Less than 1
month
1-3 months
3 months 1 year
$
$
$
$
1- 5 years
Payables:
Creditors
64 085
64 085
25 511
38 574
-
-
142 415
142 415
133 415
9 000
-
-
52 875
52 875
1 367
4 152
11 444
35 912
259 375
259 375
160 293
51 726
11 444
35 912
89 126
89 126
75 328
13 798
-
-
Other payables
112 349
112 349
108 719
3 630
-
-
Total
201 475
201 475
184 047
17 428
-
-
Other payables
Borrowings:
Finance lease liabilities
Total
2013
Payables:
Creditors
(c)
Market risk
The Board’s exposures to market risk are primarily through interest rate risk with almost no exposure to
foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks
are disclosed in the paragraphs below:
Interest rate risk
Exposure to interest rate risk is insignificant and might arise primarily through the Board’s cash and deposits
and finance lease liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest
bearing financial instruments. Financial liabilities comprise of finance leases at fixed interest rates.
The Board’s exposure to interest rate risk and the effective weighted average interest rate for each class of
financial assets and liabilities is set out below:
77
44
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 16.
Financial instruments (continued)
Interest rate exposure of financial instruments
Weighted
average
effective
interest rate
2014
Interest rate exposure
Carrying
amount
Fixed
interest
Variable
interest
rate
Noninterest
bearing
$
$
$
$
1 367 215
-
1 021 800
345 415
Contractual financial assets
Financial assets
Cash and deposits
2.50%
55 903
Receivables
55 903
1 423 118
-
1 021 800
401 308
206 500
-
-
206 500
52 875
52 875
-
-
259 375
52 875
-
206 500
0.01%
564 637
-
14 864
549 773
-
49 352
-
-
49 352
613 989
-
14 864
599 125
201 475
-
-
201 475
201 475
-
-
201 475
Total financial assets
Financial liabilities
Payables
Borrowings
Finance lease liabilities
6.15%
Total financial liabilities
2013
Financial assets
Cash and deposits
Receivables
Total financial assets
Financial liabilities
Payables
Total financial liabilities
-
Sensitivity disclosure analysis and assumptions
The Board’s sensitivity to market risk is determined based on the observed range of actual historical data for
the preceding five year period, with all variables other than the primary risk variable held constant. The Board
cannot be expected to predict movements in market rates and prices. Sensitivity analyses shown are for
illustrative purposes only. A movement of 100 basis points up and down (2013: 100 basis points up and down)
in market interest rates (AUD) is ‘reasonably possible’ over the next 12 months. The following table shows the
impact on the Board’s net result and equity for each category of financial instrument held by the Board at the
end of the reporting period as presented to key management personnel, if the above movement were to occur.
78
45
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 16.
Financial instruments (continued)
Interest Rate Risk
-100 basis points
Carrying
Amount
2014
+100 basis points
Equity
Net Result
Net Result
Equity
$
$
$
$
$
1 021 800
(10 218)
(10 218)
10 218
20 108
52 875
-
-
-
-
1 074 675
(10 218)
(10 218)
20 108
20 218
14 864
1
1
297
297
Financial Assets
Cash (i)
Financial Liabilities
Interest bearing liabilities
Total
2013
Financial Assets
Cash (i)
Financial Liabilities
Interest bearing liabilities
Total
(d)
-
-
-
-
-
14 864
1
1
297
297
Fair value
The carrying amounts of financial assets and financial liabilities recognised at the balance date, consisting of
cash, receivables, payables and borrowings, represent fair value because of the short-term nature of the
financial instruments and the expectation that they will be paid in full.
Note 17.
(a)
Cash flow information
Reconciliation of cash and cash equivalents
Cash at the end of the year, as shown in the Cash Flow Statement, is reconciled to the related items in:
2014
$
2013
$
Operational funds
1 367 215
564 637
Total
1 367 215
564 637
79
46
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 17.
(b)
Cash flow information (continued)
Reconciliation of net result for the period
2014
$
2013
$
(210 098)
(301 092)
1 093 697
1 138 898
7 888
(1 113)
-
(689 564)
Decrease/(Increase) in Receivables
(75 051)
(11 224)
Decrease/(Increase) in Inventories
1 644
(3 723)
(6 403)
(8 122)
Reconciliation of results to net cash flows from/(used in) operating activities
Net Result (1)
Non-cash movements
Depreciation
Loss/(gain) on disposal of Assets
TCV loans extinguished by DEPI
Movements in assets and liabilities
Decrease/(Increase) in Prepayments
(Decrease)/Increase in Payables
50 203
75 411
(Decrease)/Increase in Provisions
(2 559)
(156 691)
859 321
42 780
2014
$
2013
$
Balance at the beginning of the financial year
10 226 415
10 226 415
Balance at the end of the financial year
10 226 415
10 226 415
Net cash flows from/(used in) operating activities
Notes:
(1) Net result for the prior period has been restated (refer to note 1 (r)).
Note 18.
Reserves
Physical asset revaluation surplus
Notes:
(i)
The physical asset revaluation surplus is used to record increments and decrements on the revaluation of
infrastructure, land and buildings, as described in accounting policy note 1(j).
Note 19.
Responsible persons
(a) Responsible persons
The names of the persons who were responsible persons at any time during the financial year are:
Responsible minister:
The Hon. Ryan Smith, MP, Minister for Environment and Climate Change (from 1 November 2013 to
31 October 2014)
80
47
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for
theMountain
year endedAlpine
31 October
2014Management Board
Lake
Resort
Notes to the financial statements for the year ended 31 October 2014
Note 19.
Responsible persons (continued)
Board members:
Ms D Culhane
(1 November 2013 to 31 October 2014)
Dr J Miller
(1 November 2013 to 28 October 2014)
Mr A Nippard
(28 October 2014 to 31 October 2014)
Mr K Ritchie
(1 November 2013 to 31 October 2014)
Mr R Thomason
(1 November 2013 to 31 October 2014)
Mr A Thompson
(1 November 2013 to 31 October 2014)
Ms H Tudor-Harrop
(28 October 2014 to 31 October 2014)
Executive officer:
Mr P Nunn
(1 May 2014 to 31 October 2014)
(b) Remuneration
The number of responsible persons whose remuneration from the Board was within the specified bands is as
follows:
Income Band
2013
Base
remuneration
2014
2013
No.
No.
No.
No.
$0 – $9 999
5
7
5
7
$10 000 - $19 999
2
-
2
-
$20 000 - $29 999
-
-
-
1
$30 000 - $39 999
-
1
-
-
$50 000 - $59 999
-
-
-
1
$60 000 - $69 999
1
-
1
-
$150 000 – $159 999
-
1
-
-
Total numbers
8
9
8
9
$111 818
$226 187
$98 777
$118 583
Total amount
81
Total
remuneration
2014
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 19.
Responsible persons (continued)
The relevant amounts relating to the Minister are reported separately in the financial statements of the
Department of Premier and Cabinet.
(c) Other transactions
The number of contractors charged with significant management responsibilities is disclosed within the
$10,000 expense band. These contractors are responsible for planning, directing, controlling, and/or reporting
upon, whether directly or indirectly, a significant proportion of the entity’s activities.
Expense Band
Total expenses (exclusive of GST)
2014
No.
2013
No.
$130 000 – $139 999
-
1
$200 000 - $210 000 (a)
1
-
$1 200 000 – $1 209 999
-
1
$1 450 000 - $1 460 000 (b)
1
-
Total Numbers
Total Amount
2
2
$1 662 461
$1 331 234
(a) Prior to the appointment of Philip Nunn to the position of Executive Officer, Luminous biz
development were contracted by the Board to provide administrative and other support services. Mr
Nunn is a director of this company. The agreement with Luminous continues through until April 2015,
with the Board managing any conflict of interest situation carefully.
(b) Belgravia Leisure Pty Ltd have been contracted to manage the operation of the Resort and are thus
have significant management responsibilities pursuant to the agreement that is in place.
Payments to these contractors are also disclosed in note 3 (d) Contractor expense.
(d) Executive remuneration
The number of executive officers, other than ministers and accountable officers, and their total remuneration
during the reporting period are shown in the first two columns in the table below in their relevant income
bands. The base remuneration of executive officers is shown in the third and fourth columns. Base
remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and
retirement benefits.
The number of executive officers whose remuneration falls within the specified bands below is as follows:
Income Band
Total remuneration
Base remuneration
2014
2013
2014
No.
No.
No.
2013
No.
$90 000 – $99 999
-
1
1
$100 000 - $109 999
1
-
-
-
Total annualised employee equivalent
1
1
1
1
Total numbers
1
1
1
1
$100 589
$97 940
$94 200
$97 940
Total amount
1
Notes:
(1) Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over 52 weeks for
a reporting period.
49
82
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Lake Mountain Alpine Resort Management Board
Notes to the financial statements for the year ended 31 October 2014
Note 20.
Remuneration of auditors
2014
$
2013
$
Internal Audit fees paid to Crowe Horwath
38 030
7 000
External Audit fees paid to VAGO
25 700
25 000
Total
63 730
32 000
External Audit Fees paid or payable to the Victorian Auditor General's Office (VAGO) are for the audit of the
Board's financial statements.
Note 21.
Economic dependency
The Board is dependent on the continued financial support of the State Government and in particular, the
former Department of Environment and Primary Industries. The former Department of Environment and
Primary Industries has provided confirmation that it will continue to provide the Board adequate cash flow
support to meet its current and future obligations to fund essential operational expenditures as and when they
fall due for a period up to February 2016. Accordingly these financial statements have been prepared on a
going concern basis.
Note 22.
Events occurring after reporting date
The Victorian State election was held 29 November 2014. Consequently new Minister For Environment,
Climate Change and Water, the Honourable Lisa Mary Neville MP, was appointed by the Governor of the State
of Victoria on 4 December 2014.
The Governor in Council also made an order on the same date, under section 10 of the Public Administration
Act 2004, to change the name of the portfolio department that Lake Mountain Alpine Resort Management
Board fall under, from the Department of Environment and Primary Industries to the Department of
Environment, Land, Water and Planning.
In November 2014, the Board was informed by the former Department of Environment and Primary Industries
that an amount of $150,000 will be provided subject to agreeing on terms and conditions, to fund works
related to the geo-technical works in the area in and around Gerratys Car Park to mitigate the risk posed by
potential instability of the land upon which the car park is built.
In February 2015, the Board resolved to sign a deed agreeing to a settlement of legal claim made by it, and a
number of other State public entities on AusNet Electricity Services Pty Ltd, as a result of the 2009 Murrindindi
Bush Fires. The Board’s share of settlement amount to be paid to the parties is yet to be finally determined as
is the date upon which the funds can be expected to be received.
Note 23.
Ex-gratia expenses
There was no ex-gratia payments made during the 2013/14 financial year (2012/13: nil).
83
50
Lake Mountain Alpine Resort Management Board Annual Report 2013-2014
Disclosure Index
The Annual Report of Lake Mountain Alpine Resort Management Board is prepared in accordance with all relevant Victorian
legislation. The index has been prepared to facilitate identification of compliance with statutory disclosure requirements.
Disclosure Requirement
Accountable Officer’s declaration
SD 4.2(j)
Sign off requirements
Charter and purpose
FRD 22E
Objectives, functions, powers and duties
FRD 22E
Manner of establishment and responsible Minister
FRD 22E
Nature and range of services provided
Financial information
FRD 22E
Operational and budgetary objectives
FRD 22E
Summary of the financial results
FRD 22E
Major changes or factors affecting performance
FRD 22E
Subsequent events
FRD 22E
Significant changes in financial position during the year
Governance and organisational structure
FRD 22E & SD2.2(f)
Organisational structure
FRD 22E
Occupational health and safety policy
FRD 22E
Employment and conduct principles
FRD 29 & 22E
Workforce data disclosures
FRD 15E
Executive officer disclosures (NOTE: Only applies to departments)
Other information
FRD 10
Disclosure index
FRD 25
Victorian Industry Participation Policy disclosures
FRD 22E
Details of consultancies in excess of $10 000
FRD 22E
Details of consultancies under $10 000
FRD 22E
Disclosure of government advertising expenditure
FRD 12A
Disclosure of major contracts
FRD 22E
Application and operation of Freedom of Information Act 1982
FRD 22E
Compliance with Building Act 1993
FRD 22E
Statement on National Competition Policy
FRD 22E
Application and operation of Protected Disclosures Act 2012
FRD 24C
Summary of environmental performance
FRD 22E
Statement of availability of other information
SD 4.5.5
Risk management compliance attestation
MRO
Compliance with DataVic access policy
SD 4.5.5.1
Insurance attestation
PC 2012/02
Gifts, benefits and hospitality expenditure
SD 4.2(g)
General information requirements
Legislation
Alpine Resorts (Management) Act 1997
Building Act 1993
Financial Management Act 1994
Freedom of Information Act 1982
Protected Disclosures Act 2012
Victorian Industry Participation Policy Act 2003
Print and design
FRD 30
Acronyms
Page
30
17
17
18
9
11
9
10
9
22
26
26
23
23
25
26
25
26
26
25
27
27
27
28
28
28
29
28
16
16
29
17
27
28
27
28
26
Standard requirements for the design and print of annual reports
FRD - Financial Reporting Direction MRO – Model Report of Operations
SD – Standing Direction
PC – Premier’s Circular
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