Annual Report
2013–14
Accountable Officer's declaration
In accordance with the Financial Management Act 1994, I am pleased to present the Department of Environment and Primary
Industries’ Annual Report for the year ending 30 June 2014.
Adam Fennessy
Secretary
Department of Environment and Primary Industries
17 September 2014
Contents
Secretary’s message
2
Our department
4
About DEPI
10
Financial review
15
Our people
17
Office-based environmental performance
32
Output performance
40
Effective management of water resources to meet future urban, rural and environmental needs
41
The community benefits from effective management of Victoria’s land assets
43
Effective environmental and adaptation policy, investment and regulation
46
Reduced impact of major bushfires and other extreme events on people, infrastructure and the environment
49
Create productive and competitive agriculture industries
51
Sustainably manage fish, game and forest resources
51
Legislative and other information
55
Financial Statements 30 June 2014
70
Appendices
169
Appendix 1: Disclosure Index
169
Appendix 2: Budget portfolio outcomes
171
Appendix 3: Capital projects
176
Appendix 4: Disclosure of grants and transfer payments
177
Appendix 5: Environmental contributions
185
Appendix 6: Ministerial statements of expectations
189
Appendix 7: Acronyms
196
Department of Environment and Primary Industries 2013 – 14 Annual Report
1
Secretary’s message
The Department of Environment and Primary Industries’ (DEPI) inaugural annual report is an
exciting milestone that highlights what has been achieved in our first year of being ‘open for
business’.
In April 2013, Premier Denis Napthine announced the establishment of DEPI to help boost the productivity of Victoria’s world-class
food and fibre sector, and strengthen our partnership approach to protecting our environment and management of our natural
resources.
Our mandate was clear: drive local decision making in regional Victoria and boost capacity in rural and regional areas in support of
productive and competitive industries and a resilient and healthy environment.
I am pleased to say we have made very good progress to deliver that mandate. There is still work to do but we have the right people,
plans and strong portfolio partnerships to make it happen.
By bringing together stronger ties with our portfolio partners and with communities, DEPI’s approach ensures we all benefit from and
have a role to play in caring for Victoria’s land assets. With efficient planning and evidence based decision-making and programs, we
engage the community to take on-ground action.
Our combined efforts across the Victorian landscape ensure private and public land and water are managed for current and future
generations, while supporting economic development.
One of the most enjoyable things about my role as Secretary is that I am not always behind a desk, but have the opportunity to regularly
visit staff and customers throughout Victoria. This allows me to hear first-hand from the local decision-makers about how to make a
difference. Every day I hear great ideas and receive feedback about better ways to work together, and innovative ways to solve problems
and implement initiatives, as well as how we can all work together to deliver the best outcomes for our customers and the environment.
On occasion I am joined by members of my executive team, who are also focused on seeking out the views and expertise from people
based right across the state – from the smallest regional towns to the largest rural and metropolitan locations. I am very proud of
DEPI’s work in creating a strong regional network.
Innovation comes from so many sources, from field officers working across Victoria to policy officers in the Melbourne CBD. It is our
job at DEPI to provide the links and support that help make these ideas a reality. Over the past year, we have worked hard to talk to
our customers and develop a strong understanding of what people in the regions need from us.
Our first year achievements are testament to the breadth and depth of DEPI across Victoria, we:

Delivered the Food to Asia Action Plan – innovative work that helped Victoria retain its position as Australia’s largest food and fibre
exporting state and supports the long term goal of doubling food and fibre production in Victoria by 2030

Completed the Victorian Waterway Management Strategy

Improved water resource management – achieved through strong collaborative partnerships and expertise to deliver strong
reforms in urban water planning, strengthened flood and waterway management and oversight of more than $2 billion investment
in modernising irrigations systems and on farms for smarter water use and increased productivity

Launched Melbourne’s Water Future, the city’s first whole-of-water-cycle management strategy, which sets out a vision for an
integrated and resilient water system that is planned and managed to support liveable and sustainable communities. As part of the
strategy, sub-regional whole-of-water-cycle management plans for the Central, Northern, and Western regions have been
developed, Round One of the $50 million Living Victoria Fund was completed and Round Two of the Fund launched, and the
consumer behaviour change campaign Right Water has been launched to promote whole-of-water-cycle use at a household level
by encouraging Victorians to use the right water for the job

Completed Stage 1 of the Fairer Water Bills initiative, identifying more than $1 billion in savings that will be passed back to
Victorian water consumers in the form of lower water bills from 2014-15. An independent review has also been undertaken on a
new economic regulatory framework that seeks to embed an efficiency driver to keep water bills low

Established the Leadbeaters’ Possum Advisory Group – which saw an $11 million investment into implementing all 13 of the group’s
recommendations that focused on supporting the recovery of the vulnerable Leadbeaters’ Possum while ensuring a sustainable timber
industry

Progressed the development of the Point Nepean Quarantine Station – which protects the significant historic buildings at the
Quarantine Station site while maximising the potential of the site for the benefit of the community

Released the Goulburn Valley Fruit Industry Growing Roadmap – a 15-year plan for the Goulburn Valley fruit industry, focused on
opening up new export markets and helping fruit businesses to diversify and expand

Implemented the Wild Dog Action Plan – developed through community planning between March and May this year to help to
coordinate and focus both community and DEPI control activity and has resulted in the publication of 15 regional wild dog plans.
These plans identify areas of strategic importance to enable control to occur quickly where it can best protect livestock
Department of Environment and Primary Industries 2013 – 14 Annual Report
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
Stocked more than 2.7 million fish to improve recreational fishing opportunities

Led a major revision of the Code of Practice for the Operation of Breeding and Rearing Businesses – that sets a new benchmark
for animal welfare and management in Australia, ensuring dog and cat breeding and rearing businesses have clear rules for the
care and attention that animals must receive

Established seven waste and resource recovery groups across Victoria – part of how DEPI will strengthen capacity and improve
the delivery of the Getting Full Value Waste and Resource Recovery policy

Led a Digital First approach for our staff, stakeholders and customers – putting customers, stakeholders and staff in charge of the
way they interact with us and receive information; enabling, connecting, empowering and engaging the community through digital.
All of this was achieved despite one of the most prolonged fire seasons in the past few years. Over the 2013-14 Summer period, DEPI
attended more than 800 fires, well above the 30-year average. The department attended fires in the Grampians and Loddon Mallee
early in the season and later at Melbourne’s fringe and in East Gippsland. This significant effort is a great credit to DEPI staff across
the state as we delivered a more mobile and flexible capacity to respond to emergencies and to programs such as planned burning
and biosecurity incursions.
The establishment of DEPI has improved the integration of our fire planning, response and recovery effort, from the planning and
preparation with fire behaviour modelling and planned burning, to fire response and assisting land holders to recover from the impacts
of fire on their land, animals and livestock.
DEPI has completed a tremendous year of work that has built on the strengths of both previous departments, in particular their
substantial service delivery. This is due to the dedication and expertise of our staff – I would like to thank them for their continued
efforts and commitment.
I am proud of what DEPI has achieved and the commitment to create a new culture, and to bring to life our values and behaviours: agility,
ownership, balance and collaboration. We have been working hard to deliver more streamlined and responsive services to our
stakeholders and the community and being a leading service-focused organisation. This should ensure we support productive and
healthy landscapes across Victoria for current and future generations.
Adam Fennessy
Secretary
Department of Environment and Primary Industries
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Our department
Our Ministers
Minister for Agriculture and Food Security and Minister for Water
The Hon. Peter Walsh MLA is Deputy Leader of the Victorian Nationals and was appointed Minister for Agriculture and Food Security
and Minister for Water in December 2010. Prior to being elected to Parliament, he undertook a number of roles in the agricultural
sectors including President of the Victorian Farmers Federation and Director of SPC Limited.
As Minister for Agriculture and Food Security, Minister Walsh’s priorities are to build a more productive and profitable farming sector
supported by research, development and extension, and to increase the volume of Victorian food and fibre exports through initiatives
such as the Food to Asia Action Plan and the International Engagement Strategy.
As Minister for Water, Minister Walsh is driving change to deliver better water services, improved local environments and increased
liveability in Melbourne and Victoria’s regional cities.
Minister for Environment and Climate Change
The Hon. Ryan Smith MP was appointed as Minister for Environment and Climate Change in December 2010. He is also the Minister for
Youth Affairs.
As Minister for Environment and Climate Change, Ryan Smith is responsible for action to protect Victoria’s natural environment, effectively
manage the threat of bushfires and better safeguard Victoria’s assets from climate change risk, while making communities more resilient
to future extreme weather events.
Minister Smith’s priorities are practical and measured approaches to environmental management and helping Victorians understand
how they can manage and adapt to cost effective and energy efficient practices at home and in the workplace.
Special Note: Structural changes to the department
On 9 April 2013, the Victorian Premier, Hon. Denis Napthine, announced a number of machinery of government changes to
strengthen the focus on jobs and investment and more effectively deliver frontline services.
The changes included the announcement of the new Department of Environment and Primary Industries, created from the merger of the
former Department of Sustainability and Environment (DSE) and the former Department of Primary Industries (DPI). The new
Department of Environment and Primary Industries (DEPI) officially commenced operation as a new government department from 1 July
2013.
Readers should note that the DEPI Annual Report 2013-14 is the first annual report covering the new department. In 2012-13, the
DEPI Annual Report provided performance information for the former Department of Sustainability and Environment (renamed DEPI
in April 2013) and the separate DPI Annual Report provided performance information for the former Department of Primary Industries.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Our executive
Adam Fennessy
Secretary
Adam Fennessy was appointed Secretary of the Department of Environment and Primary Industries (DEPI) in April 2013. Adam leads
the department in boosting productivity in Victoria’s world-class food and fibre sector, protecting Victoria’s environment and managing
the state’s natural resources, strongly influenced by decision-making at a regional and local level.
Adam is a member of the national Agriculture Senior Officials Committee and the national Environment Protection Council
Committee. Adam leads the Loddon Mallee Regional Management Forum and is a member of the Victorian Secretaries Board. He is
a Victorian Fellow in the Institute of Public Administration Australia, in recognition of his contribution to public administration and the
Victorian community.
Prior to his current role, Adam was Acting Secretary of the former Department of Sustainability and Environment (DSE), Deputy
Secretary Environment and Natural Resources within the former DSE, and Executive Director, Infrastructure and Economics in the
Victorian Department of Premier and Cabinet. Adam has also worked as a Commonwealth Government policy and legal adviser in the
areas of transport, communications and the arts.
James Flintoft
Deputy Secretary, Agriculture
James Flintoft was appointed Deputy Secretary for Agriculture on 6 May 2013.
James has substantial experience in leadership roles in both the Victorian and Commonwealth Governments.
His previous leadership roles include Deputy Secretary at the Department of Agriculture, Fisheries and Forestry, Chair of the
Commonwealth’s emergency taskforce on Live Animal Exports and First Assistant Secretary, Strategic Policy and Delivery Division,
Department of Prime Minister and Cabinet.
Before joining the Public Service, James held senior roles at ANZ Bank and McKinsey & Company. He has worked and lived in Asia,
Europe and the USA.
James has a Bachelor of Laws and Bachelor of Science from the University of Melbourne and an MBA from the Wharton School,
University of Pennsylvania in the USA.
Bernie O’Sullivan
Deputy Secretary, Regional Services
Bernie O’Sullivan was appointed Deputy Secretary for Regional Services on 6 May 2013.
Bernie has considerable leadership experience at a state and national level, including industry-based experience in primary
industries.
Previous leadership roles include his role as General Manager of Agriculture for the Royal Agricultural Society of NSW, Executive
Director of a livestock commodity council in National Farmers’ Federation House in Canberra, and executive positions with the NSW
Farmers’ Association.
Before being appointed Deputy Secretary, Bernie was Regional Director Loddon Mallee for the former Department of Primary
Industries. He built strong statewide relationships with stakeholders and established a new Regional Leadership Branch, aimed at
enhancing DPI’s engagement in country Victoria.
Emily Phillips
Deputy Secretary, Water and Catchments
Emily Phillips was appointed Deputy Secretary for Water and Catchments on 28 October 2013.
Emily has broad executive leadership experience in driving policy reform and delivering programs across the Victorian Government
and has previously led policy and program delivery in regional development, sustainable agriculture, catchment management, and
industry and community engagement.
For the past seven years, Emily built and led the Rural and Resources Policy Branch at the former Department of Primary Industries
and most recently was Executive Director, Agriculture Policy in DEPI.
Emily has played a key role in leading national drought policy reform, delivering state drought support and establishing and driving the
vision for the new Agriculture Productivity Group of boosting food and fibre across the state.
Emily holds a Bachelor of Social Science with first class Honours and a PhD in Rural Sociology.
Dr Jane Doolan was Deputy Secretary Water and Catchments from 1 July 2013 to 18 July 2013. John Riddiford was Acting Deputy
Secretary Water and Catchments from 19 July 2013 to 25 October 2013.
Paul Smith
Deputy Secretary, Land, Fire and Environment
Paul Smith was appointed Deputy Secretary for Land, Fire and Environment on 6 May 2013.
Paul has broad executive experience in utilising partnerships to deliver results and in driving major reform in the areas of land, fire and
environment.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Before acting as the Deputy Secretary for the Environment and Natural Resources group, Paul was Executive Director,
Environmental Policy and Climate Change in the former DSE.
Paul has built successful relationships with DEPI’s many environment and land portfolio partners and with Victoria’s Networked
Emergency Organisations. He also led the former DSE’s response to the Victorian Bushfires Royal Commission.
Paul holds a Bachelor of Social Science and a PhD in Environmental Policy.
Bruce Thompson
Deputy Secretary, Corporate Services
Bruce Thompson was appointed Deputy Secretary for Corporate Services on 6 May 2013.
Bruce has many years of executive experience in the public sector in Victoria and Queensland, including significant contributions to
Corporate Services innovations within the former DSE.
Prior to his current role, Bruce was Chief Information Officer and the Director, Spatial Information Infrastructure in the former DSE.
Luke Wilson
Deputy Secretary, Regulation and Compliance
Luke Wilson was appointed Deputy Secretary for Regulation and Compliance on 6 May 2013.
Luke has significant experience across agriculture and resource management; for many years he led policy development on the key
issues facing Victoria’s agriculture and forestry industries. His previous leadership roles include work in energy, water and transport
regulation in South Australia, in economic consulting with PricewaterhouseCoopers, and in policy analysis with the Commonwealth
Government. Luke has also worked as an operational forester with Bowater Tissue Ltd in Myrtleford Victoria.
Before being appointed as the Deputy Secretary, Luke was Executive Director for the former DPI Portfolio Services Division, with
responsibility for communication, legal, audit and risk, regional and organisational development.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Our governance structure
The Secretary, as head of the department, is accountable to the Minister for Agriculture and Food security, Minister for Water and the
Minister for Environment and Climate Change for the overall governance of the department.
The department’s corporate governance arrangements include an executive decision-making body, the Senior Executive Group
comprising the Secretary (Chair) and the Deputy Secretaries.
Accredited Purchasing Unit
The Accredited Purchasing Unit (APU) oversees the department’s purchasing policies and practices for general goods and services
through delegated powers assigned by the Victorian Government Purchasing Board. The APU also oversees building and
construction related procurement.
In 2013-14, APU members were:
Anthony Connelly
Executive Director, Business (Chair)Operations, Corporate Services
John Johnstone
Manager, Strategic Planning and (Deputy Chair)Projects, Water and Catchments
Eleanora Georgiou
Manager, Financial Reporting and (Deputy Chair)Projects, Corporate Services
Michele FitzGerald
Manager, Procurement Policy and APU Support, Corporate Services
Rod Warren
Director, Projects and Regional Relationships, Land Fire and Environment
Stuart Baker
Manager, Procurement, Corporate Services
Phil Biggs
Business Manager, Agriculture Policy
Lina Ghantous
Business Manager, Major Projects, Agriculture
Laurie Jeremiah
Regional Services, Gippsland
Bronwyn Clarke
Business Manager, Regulation and Compliance
Risk and Audit Committee
The Risk and Audit Committee is an independent body established in accordance with the Standing Directions of the Minister for
Finance under the Financial Management Act 1994. It provides assurance to the Secretary that the department’s risk and control
environment is operating effectively and efficiently. The committee meets bi-monthly or as determined by the Chair.
In 2013-14, Risk and Audit Committee members were:
John Rundell (Chair) Independent member
Fiona Bennett
Independent member
Suzanne Evans
Independent member
Kathy Grigg
Independent member
Peter Lewinsky
Independent member (to February 2014)
Peter Betson
Executive Director, Environment and Landscape Performance (from November 2013)
Bruce Thompson
Deputy Secretary, Corporate Services
Mike Timpano
Regional Director, Gippsland
Luke Wilson
Deputy Secretary, Regulation and Compliance
Risk management framework and attestation
Scan of the Department of Environment and Primary Industries Risk Attestation Statement 2013-14 signed by Adam Fennessy,
Secretary, Department of Environment and Primary Industries 13/08/2014.
Insurance attestation
Scan of the Department of Environment and Primary Industries Insurance Attestation Statement 2013-14 signed by Adam Fennessy,
Secretary, Department of Environment and Primary Industries 13/08/2014.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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About DEPI
Our vision
Productive and competitive primary industries, a resilient and healthy environment and optimal use of public land to support Victoria’s
long-term prosperity.
Our promise
Service excellence.
Our purpose
Prosperous regions, healthy landscapes.
About us
The Department of Environment and Primary Industries (DEPI) employs more than 3,470 staff, working across Victoria.
We advise and support the Hon. Peter Walsh MLA, Minister for Agriculture and Food Security and the Minister for Water and the Hon.
Ryan Smith MP, Minister for Environment and Climate Change.
DEPI is providing a better and more efficient management approach for public and private land, and water for the people of Victoria.
DEPI is focusing on protecting our environment, boosting productivity in Victoria’s world-class food and fibre sector and the management
of our natural resources, strongly influenced by decision-making at a local level.
The department’s service excellence and digital first approach means that our environmental efforts will be maintained and
strengthened and we will ensure better environmental protection and more productive landscapes throughout Victoria.
DEPI provides streamlined and responsive services to our stakeholders and a more mobile, flexible workforce with greater capacity to
respond to emergencies such as fires, floods or biosecurity incursions and to seasonal programs such as planned burning and
compliance actions across the range of department portfolios.
DEPI delivers services and programs to the community through partnerships and stakeholders. We have strengthened our regional
capacity and service delivery at a local level.
DEPI’s objectives are:

Create productive and competitive agricultural industries.

Sustainably manage fish, game and forest resources.

The community benefits from effective management of Victoria’s land assets.

Effective management of water resources to meet future urban, rural and environmental needs.

Effective environmental and adaptation policy, investment and regulation.

Reduced impact of major bushfires and other extreme events on people, infrastructure and the environment.
Our regions
DEPI has a strong regional delivery model supported by a dedicated Regional Services group. We have a six-region structure, which
allows us to align and scale our operations to deliver the government’s priorities.

The six regions shown in the map below are:

Barwon South West

Gippsland

Grampians

Hume

Loddon Mallee

Port Phillip
DEPI regions and work locations
Map of Victoria with DEPI work locations identified.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Clients and stakeholders
The department’s clients and stakeholders are diverse and are distributed across the state. These include public, private and
not-for-profit organisations operating at local, state, national and international levels, such as: Aboriginal organisations,
agribusinesses, animal welfare groups, academics, land and water managers, professional and industry bodies, local, state and
Commonwealth governments and authorities and primary producers.
Service delivery partners
We perform our functions in close partnership with service delivery partners. These include:

Agriculture industry groups and service providers

Alpine Advisory Committee

Alpine Resorts Coordinating Council

Alpine Resort Management Boards

Animal Health Australia

Catchment Management Authorities

Commissioner for Environmental Sustainability

Committees of Management of Crown land reserves

Commonwealth departments and agencies

Cooperative Research Centres

Country Fire Authority

Dairy Food Safety Victoria

Environment Protection Authority Victoria

Flora and Fauna Guarantee Scientific Advisory Committee

Food and agribusinesses

Landcare

Livestock Industry Consultative and Compensation Committees

Local Government Authorities

Municipal Association of Victoria

National Parks Advisory Council

Office of the Emergency Services Commissioner

Office of Living Victoria

Parks Victoria

Plant Health Australia

Primesafe

Reference Areas Advisory Committee

Regional Coastal Boards

Waste and Resource Recovery Groups

Royal Botanic Gardens Board

Royal Society for the Prevention of Cruelty to Animals

Rural Research and Development Corporations

Sustainability Fund Advisory Panel

Sustainability Victoria

Traditional Owner Land Management Boards and advisory bodies

Trust for Nature (Victoria)

Universities and CSIRO

Veterinary Practitioners Registration Board of Victoria

VicForests
Department of Environment and Primary Industries 2013 – 14 Annual Report
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
Victorian Adaptation and Sustainability Partnership

Victorian Biosecurity Standing Committee

Victorian Catchment Management Council

Victorian Coastal Council

Victorian Environmental Assessment Council

Victorian Environmental Water Holder

Victorian Mineral Water Committee

Water corporations

Water Supply Protection Area Consultative Committees

Zoological Parks and Gardens Board
Our values
Since July 2013, the People and Culture Division have been working with the Senior Executive Group, Regional Executive Forum and
a diverse group of staff representatives right across the organisation to identify values and behaviours that best reflect the new DEPI
- our people, our culture and how we work together. Approximately 500 staff participated in a survey to provide feedback on the
behaviours that represented each of the values.
The values of the organisation are based around four key areas - balance, collaboration, ownership and agility. The behaviours are
how these values are brought to life.

Balance - We consider short and long-term consequences, weigh up diverse needs, make decisions in a timely manner, and have
the challenging conversations.

Collaboration - We work together to make things happen, harness our collective strengths, partner with our stakeholders, and
build mutual understanding.

Ownership - We take responsibility for getting things done, are empowered to make decisions, and look out for each other’s
safety and wellbeing.

Agility - We are responsive, flexible, keep a step ahead, and keep learning.
DEPI Organisational Structure
The organisational chart showing the department’s structure and senior executives for delivery of functions as at 30 June 2014.
Our functions and services
Agriculture
The Agriculture Group delivers agricultural research and development, policy, and trade and investment services to boost food and
fibre production in Victoria, connect the industry to Asia and support industry development and transition. The group focuses on the
four sectors of greatest economic importance to Victoria: dairy, beef and sheep, grains and horticulture.
Capital Projects
Capital Projects delivers designated infrastructure projects and assists other agencies with the delivery of major projects. Currently, the
division’s key responsibility is managing the Victorian Desalination Project Public Private Partnership contract between the State of
Victoria and AquaSure.
Corporate Services
The Corporate Services Group supports the effective and efficient delivery of the department’s programs and services.
The group’s key responsibilities – planning, enabling, reporting and compliance – are delivered through its operational divisions:
Business Operations, Communications, Finance and Planning, Information Services, Legal Services and People and Culture.
Land, Fire and Environment
The Land, Fire and Environment Group works across DEPI, with portfolio agencies and external stakeholders to effectively manage
Victoria’s land assets, provide an evidence-based approach to fire and emergency management and provide effective environmental
and adaptation policy, investment and regulation.
Office of Living Victoria
The Office of Living Victoria is managing, governing and reforming urban water in Victoria to connect all parts of the water cycle with
all parts of the community. The group works with the water industry, associated sectors and local communities across the state in
transitioning towards whole-of-water-cycle management.
Regional Services
The Regional Services Group is focused on boosting service delivery to regional Victoria and providing a one-stop shop for land and
water management issues. A new regional service delivery model, with an increased leadership presence in the regions, enables
Department of Environment and Primary Industries 2013 – 14 Annual Report
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regional staff to make decisions, deliver services and manage issues more efficiently and effectively at the local level, and provides
greater capacity to respond to emergencies such as fires, floods and biosecurity incursions.
Regulation and Compliance
The Regulation and Compliance Group drives a consistent and effective approach to regulatory practice across DEPI. The group
builds and maintains Victoria’s capability to monitor, detect and respond to biosecurity threats to ensure continued and increasing
access to local and international markets. It also ensures that fish, game and forest resources are managed responsibly so that
regional economies and the Victorian community benefit from the commercial and recreational use of these resources now and into
the future.
Water and Catchments
The Water and Catchments Group works with water corporations and catchment management authorities to manage the allocation of
water resources across Victoria to balance economic, environmental and social values. Key priorities include improving the
environmental condition of our waterways, ensuring a sustainable and productive irrigation industry, implementing the agreed Basin
Plan, and improving capacity to adapt to a variable climate.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Financial review
Five-year financial summary
2014
$’000
2013*
$’000
2012*
$’000
2011*
$’000
2010*
$’000
Income from government(1)
1,398,269
1,045,240
1,083,674
998,223
1,084,119
Total income from transactions
1,665,813
1,278,847
1,375,567
1,240,658
1,395,494
Total expenses from transactions
1,580,771
1,264,680
1,315,285
1,250,108
1,339,348
Net result from transactions(2)
85,042
14,167
60,282
(9,450)
56,146
Net result for the period
80,176
243,820
12,621
23,666
(107,846)
Net cash flow from operating activities
88,996
46,255
127,780
19,369
139,028
8,807,905
7,841,572
7,580,010
7,786,571
8,686,920
672,102
295,157
283,242
367,412
366,273
Total assets
Total liabilities
Notes:
1. Income from government includes both output and special appropriations.
2. The ‘net result from transactions’ is identical to the ‘net operating balance’ for the general government sector.
* Amended for impact of prior period errors and any changes in accounting policy.
Current year financial review
Overview
The Victorian Government considers the net result from transactions to be the appropriate measure of financial management that can
be directly attributed to government policy. This measure excludes the effects of revaluations (holding gains or losses) arising from
changes in market prices and other changes in the volume of assets shown under ‘other economic flows’ on the comprehensive
operating statement, which are outside the control of the department.
The 2013-14 financial year marks the first results for the department that reflect the machinery of government administrative
arrangements announced on 9 April 2013.
The machinery of government administrative arrangements resulted in the establishment of the Department of Environment and
Primary Industries, which commenced operating on 1 July 2013. The Land Administration and Property Information output was
transferred to the Department of Transport, Planning and Local Infrastructure. Outputs associated with the Energy and Resources
portfolio was transferred to the Department of State Development, Business and Innovation.
The comparative amounts in the five year financial summary are not restated for the machinery of government changes.
In 2013-14, the department recorded a net result from transactions of $85.04 million, which was $70.87 million higher than in 2012–
13.
Financial performance and business review
The department recorded a higher net result from transactions in 2013-14, primarily due to the department receiving an additional
$353 million appropriation revenue due to the effects of the machinery of government, and an increase of other revenue of $33.9
million representing an increase in sales of goods and services of $16.7 million, Metropolitan Parks Improvement charges of $14.2
million and grant revenue of $10.5 million and a reduction on assets received free of charge of $5 million.
The expenditure increase of $316.1 million was less than the revenue generated and reflects the effects of the machinery of government
changes including an increase of $101.4 million in employee expenses, $23.0 million in depreciation, $22.0 million in borrowing costs
associated with the Royal Melbourne Showgrounds and the Biosciences Research Centre joint ventures transferred from the former
Department of Primary Industries, and increases in grants and transfer payments made to departmental portfolio entities.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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The overall net result of $80.2 million is $163.6 million lower than last year due to reduced other economic inflows arising from the
recognition of land parcels, as the department’s Crown Land Reconciliation is identifying less material land parcels being recognised
for the first time.
Financial position – balance sheet
Total assets increased by $966.3 million to $8,807.9 million (up 12.3 per cent) primarily due to the net transfer of property, plant and
equipment from the former Department of Primary Industries including the department’s share of the Biosciences Research Centre, the
Royal Melbourne Showgrounds joint ventures and other property plant and equipment.
Total liabilities increased by $376.9 million primarily due to increases in borrowings related to the transfer of finance lease liabilities
(Royal Melbourne Showgrounds and the Biosciences Research Centre) and accrued payables from the former Department of
Primary Industries.
Consequently the department’s net assets increased by $589.4 million or 7.8 per cent from last year to $8,135.8 million.
Cash flows
The department’s net cash inflow from operating activities increased by $42.7 million to $89.0 million. This increase in cash reflects the
department’s net result from transactions for the year, the impact of non-cash items such as depreciation and movements in financial
assets and liabilities.
Controlled expenses from transactions by output
$’000
%
Effective Water Management and
Supply
274,488
17.4%
Public Land
118,652
7.5%
Forests and Parks
199,247
12.6%
Environmental Programs
110,879
7.0%
Development of Primary Industries
454,856
28.8%
40,342
2.5%
382,307
24.2%
1,580,771
100.0%
Payments for outputs (controlled)
Environmental Policy
Land and Fire Management
(a)
Financial governance
DEPI diligently exercises its various financial management obligations. The Minister for Finance has implemented various financial
governance frameworks to ensure effective, efficient and responsible financial management of public resources, including the
Financial Management Compliance Framework (FMCF). The FMCF governs compliance with the provisions of the Financial
Management Act 1994, Taxation Compliance Rules, Purchasing Card Rules for Use and Administration and Thefts and Losses
Rules.
The FMCF provides assurance that all public entities:

have implemented appropriate systems for the effective, efficient and responsible financial management of public resources and
provides a mechanism for government to monitor and review compliance with legislation

are complying with legislation in relation to the major federal taxes including GST, FBT and PAYG

have implemented efficient and effective use of purchasing cards

report all instances of thefts and losses to the Minister for Finance on an annual basis.
DEPI’s compliance with the Direction Requirements of the FMCF is formally assessed at 30 June each year and the tax compliance
component is subject to an independent review.
DEPI also maintains a number of financial policies, procedures and guidelines to ensure consistency in financial transactions and
financial reporting. These are reviewed and updated on an annual basis to ensure ongoing relevance and conformance to external
reporting requirements.
Financial transactions are subject to regular compliance reviews by the compliance team within the Finance and Planning division.
Department of Environment and Primary Industries 2013 – 14 Annual Report
13
Compliance reviews include Financial Data Quality Assurance Reviews and Purchasing Card transaction reviews. Exceptions
identified during the compliance reviews are reported to the Executive Director Finance and Planning (who is also the department’s
Chief Finance and Accounting Officer for the purposes of section 43(1)(a) of the Financial Management Act 1994).
Governance of Financial Management training is provided online to all staff applying for the right to exercise financial delegations
within the department. All financial delegates are required to repeat the training every three years.
There is active participation in financial management amongst leadership teams throughout DEPI and financial compliance continues
to be embedded into revised work practices. Regular communication of the requirements will continue through financial forums and
daily work practices.
Budget portfolio outcome statements
A comparison of the budget portfolio outcome statements for the department, as published in the 2013-14 Budget Paper No. 5, and
the actual results for the year can be found at Appendix 2.
Department of Environment and Primary Industries 2013 – 14 Annual Report
14
Our people
Safety and wellbeing
At DEPI we protect the safety and wellbeing of our people and ensure that safety is integral to how we do our work.
The department actively supports the physical and psychological wellbeing of our people and promotes a healthy workplace by
maintaining safe systems of work.
The safety and wellbeing of our people is fundamental to the successful delivery of our work programs – and a critical factor in
supporting our lead-agency role in public land and fire management compliance.
The department aims to demonstrate, through leadership, the commitment and importance placed on the physical and psychological
wellbeing of employees, contractors, visitors and those affected by the work we do.
The department’s policy urges all staff to Think Safety and Work Safely to ensure everyone returns home safely and in a good state of
mind at the end of each work day. Our commitment to safety and wellbeing is based on four key pillars: Lead, Understand, Act and
Improve, which is reflected in the Safety and Wellbeing Strategy 2014-2016.
The aim is to build a culture that provides a working environment, resources and support to make safety and wellbeing everyone’s
responsibility and it empowers people to be proactive in eliminating and minimising risks and hazards to achieve the highest level of
safety possible. The department continues to encourage a reporting ethos and insistence on compliance.
Our safety management system underpins the policy and includes:

Safety and Wellbeing Strategy

Role statements – for employees, managers, supervisors, executives and health and safety representatives

Mandatory online Safety and Wellbeing induction for all new starters

Safety and Wellbeing Action Plans developed by location

Job Safety Planning – the process and tools used to plan jobs so they can be completed safely

Safe Work Procedures – written instructions that describe how to perform a job safely

Safe Operating Instructions – describe the procedure for safely using particular plant/machinery or equipment

Safety Alerts – providing up to date information about hazards or hazardous conditions in the workplace

Infosafe – online chemical inventory system for recording hazardous substances and dangerous goods.
Safety advisors
DEPI’s Safety Team has engaged with staff at all levels of the organisation. This has been achieved through regular interaction with
stakeholders and a department Audit and Inspection program. The Safety Team have undertaken more than 407 reported site and
field audits across the state during 2013-14, generating more than 1,200 corrective actions.
Through the Departmental Consultative Structure and the Regional Safety and Wellbeing Governance Committee, the Safety Team
has provided governance, led the Action Planning process and provided guidance and coaching to stakeholders on meeting their
obligations for legislative compliance.
A number of Safety and Wellbeing programs have been developed and rolled out during the year, including Job Safety Planning,
Contractor Management, Volunteer Management and the Hazardous Substances and Dangerous Goods e-learning modules.
The implementation of the Infosafe substance management system has been completed across all DEPI sites. This has included
auditing stock holdings of hazardous substances and dangerous goods, and involved hands-on training sessions.
Key programs and achievements
DEPI’s key programs and achievements for 2013-14 include the following:
Procedures and instructions:

The DEPI Safety Team, in consultation with technical experts, continues to develop Safe Operating Instructions for the use of
plant and equipment

The DEPI Safety Team, in consultation with staff, continues to develop Safe Work Procedures and Safety and Wellbeing policies
for working safely.
Web communications:

Maintained the Safety and Wellbeing page on the DEPI intranet to ensure it is a portal for current information.
Training:

Hazardous Substances and Dangerous Goods training continued to be rolled out. Approximately 100 people were trained in
2013-14, additional to the Safe Storage and Handling of Hazardous Substances and Dangerous Goods training in 2012-13. A
project to translate the face-to-face training into an e-learning environment to provide flexible learning options also commenced
Department of Environment and Primary Industries 2013 – 14 Annual Report
15

In September 2013 to March 2014, DEPI provided training to 427 staff to support the implementation of Infosafe - DEPI’s online
chemical inventory database

A revised course in Volunteer Safety Management was developed and piloted in 2013 to support changes in the procedures for
managing volunteers and volunteer groups. This training will be offered to staff in 2014-15

A specific training course in hearing conservation and noise awareness was developed in early 2014 and commenced in June
2014, with 129 staff trained. The training is currently available in a face-to-face format although will be translated to an e-learning
environment that will provide flexible learning options for staff

DEPI commenced delivery of the new Contractor Safety Management training in May 2014 to support revised Contractor Safety
Management procedures. The training will build the knowledge and skills of our people to manage the safety and wellbeing
aspects in the procurement and contract management phases, where heightened safety and wellbeing risks are identified

DEPI commenced a project to review Leading Safety in DEPI and Job Safety Planning training. Building on the Victorian
WorkCover Authority endorsed program, it is designed to build awareness of manager and team leader obligations under the
health and safety legislation. The revised programs will be relaunched in 2014-15.
Reviews and consultation:

DEPI has provided an ongoing commitment to the Hazardous Trees Project, which has involved significant consultation across
the state

DEPI Safety Team participated in the Balancing Workplace Stress pilot program

DEPI Safety Team participated in the review of First Aid services and consumables tender

DEPI Safety and Wellbeing Team participated in the Streamlining Medical Assessments in DEPI for Emergency Roles program.
Feedback:

DEPI Safety Team responded to feedback from staff received covering all aspects of safety from training, job safety planning,
plant and equipment and health and wellbeing.
Wellbeing:
A complementary suite of programs support the Wellbeing program:

Employee Assistance Program, delivering:
 on site counselling and coaching to employees, managers and their families
 wellness sessions and presentations delivered on site at staff meetings or site events
 career transition coaching and support to review and develop resumes, interview techniques or career path planning
 facilitated conversations, mediation and conflict coaching to employees and managers to address and diffuse conflict in the
workplace
 counselling, coaching and psychological first aid following critical events to individuals, teams or families
 access to support, counselling and coaching at all times through a central contact number for all staff and their families.

Early Intervention Program, delivering:
 tailored and targeted wellbeing support and interventions created for individuals with work or non-work related injuries or
illnesses
 assistance to teams, work centres or regions address to wellbeing issues.
Audits and actions:

Dangerous goods and hazardous substances audits at all DEPI workplaces were completed and corrective actions started.
WorkCover:

In 2013-14 the department focused its injury management approach on early intervention, early consultation and engagement of
the Treating Health Practitioner (THP) and proactive return to work management following workplace injury.

Return to Work (RTW) performance: Of the 42 standard claims open at the end of June 2014, 24 had less than 13 weeks time lost,
three had more than 13 weeks time lost and 15 have more than 52 weeks time lost. This indicates that the department’s early
intervention approach is assisting with a timely and sustainable RTW with the majority of injured workers returning to work within
13 weeks post injury.

Return to Work performance has a direct and positive impact on estimates and claim costs. While the department is unable to
directly compare claim costs to previous years due to the formation of the department, the average cost per claim (standard open
claims) for 2013-14 is $40,662.
Department of Environment and Primary Industries 2013 – 14 Annual Report
16
OHS performance indicators(1)
Description
Performance indicator
2013–14
Incidents and hazards (2)
953 (3)
Incidents
Lost time incidents
130
Hazards
134
Incident rate per 100 FTE
27.3
WorkCover (3)
Claims
Number of standard claims
76
Rate per 100 FTE
2.18
Standard claims with lost time
58
Rate per 100 FTE
1.66
Fatalities
Number of fatalities
0
Claim costs
Average cost per claim ($)
Return to work (RTW)
Percentage of RTW arrangements initiated for claims exceeding 20 days per
100 FTE
77.34%
Management
commitment
Evidence of safety and wellbeing policy, strategy, regular reporting to senior
management, safety criteria in purchasing guidelines.
Achieved
Consultation and
participation
Designated work group structure, health and safety representatives (HSR)
and issue resolution procedure in place.
Achieved
Risk Management
Internal audits/inspections conducted as planned.
Reporting of incidents and injuries.
Investigation of incidents and corrective actions initiated.
Achieved
Training
Safety and Wellbeing Induction
Job Safety Planning
HSR training
Management training
Achieved
$40, 662
Notes:
1. DEPI commenced on 1 July 2013, therefore prior years comparative data is not available.
2. Data sourced from DEPI Safety Incident Management System.
3. The data is sourced from the Victorian WorkCover Authority. The 2013–14 rate is based on the FTE count at 30 June 2014.
This excludes external contractors/consultants and temporary staff employed by employment agencies.
Employment and conduct principles
The department applies the public sector values and employment principles as set out in the Public Administration Act 2004, including
the application of merit and equity principles when appointing staff. The selection processes ensure that applicants are assessed and
evaluated fairly and equitably on the basis of the key selection criteria and other accountabilities without discrimination. Employees
have been correctly classified in workforce data collections.
Workplace relations
The department recorded no industrial relations incidents that resulted in lost time in 2013-14.
The Wild Dog Controllers Workplace Agreement was approved by the Fair Work Commission on 7 October 2013.
An updated Appropriate Workplace Behaviour workshop was piloted with more than 700 employees participating. Further workshops
are planned for 2014-15.
The department processes portfolio statutory authorities’ enterprise agreements through to government approval, and provides
industrial advice and assistance as required. In 2013-14, 13 management logs and 10 settlement positions were processed through
to government approval, as were 13 final agreements.
Department of Environment and Primary Industries 2013 – 14 Annual Report
17
Grievances
In 2013-14, the department received 29 new grievances with three existing grievances being carried over from the previous financial
year.
The table below shows grievances by outcome:
Outcome
Number
Withdrawn
6
Not substantiated
5
Partially substantiated
2
Substantiated
5
Rejected
5
No further action required
2
Open
7
Total
32
Leadership and management development
DEPI continued to develop the capabilities of its leaders and managers during 2013-14.
The Collaborative Leadership Program is being completed by 20 participants over an 18 month period. The program aims to strengthen
the management and leadership skills of staff who are assessed as having the potential to move into more senior or more complex
leadership positions in the next one to two years. The program will build a group of leaders who are comfortable with ambiguity and
complexity and who collaborate effectively to achieve organisational outcomes.
DEPI has supported senior leaders to participate in a selection of external leadership programs including Australia and New Zealand
School of Government (ANZSOG), Australian Rural Leadership Program and Cranlana.
The Diploma of Management was delivered to 62 participants across three programs in various locations around the state. The
Graduate Certificate in Management has been piloted with three quarters of the program successfully completed by 14 participants.
The DEPI Science Graduate Program currently has 40 participants. This year, graduates collectively participated in a three-day
induction held in February at Alexandra and a two-day meeting at Hastings in May 2014.
Coaching practices continue to be implemented at DEPI. Selected staff have completed accredited coaching programs to build
internal capability, the Coaching Community of Practice has been further developed and strengthened and the Coaching Panel has
continued to assist senior managers to lead during periods of change.
Supporting people through change
Significant assistance has continued to be provided to support our managers to lead people well through change. A suite of support
programs, toolkits and other initiatives have been developed and deployed to assist both staff and managers to more effectively
respond to change; improve our culture and enhance DEPI’s organisational performance.
Diversity and inclusion
The department is committed to developing and maintaining a workforce at all levels that reflects the diversity of the customers we
serve, and the communities in which we operate.
Regular awareness raising activities have been held to promote diversity and inclusion. Diversity events of significance have been
promoted and celebrated across the department including National Aboriginal and Islanders Day Observance Committee (NAIDOC)
week, Carers Week, International Day for People with a Disability, Human Rights Day, Cultural Diversity Week, International
Women’s Day and Reconciliation Week. Our events programs are promoted across our many work sites through posters and support
materials, links to the coordinating organisations and community websites. In addition, all activities are promoted on the DEPI intranet
and on Yammer.
A number of programs have been held to educate and inform employees on their responsibilities. An updated program on appropriate
workplace behaviours has been developed to highlight responsibilities and obligations in creating a fair and equitable work
environment. A pilot program on flexible work arrangements has supported managers to effectively assess and implement workplace
Department of Environment and Primary Industries 2013 – 14 Annual Report
18
flexibility. Flexible work provides opportunities for more people to participate in the workforce at all life stages while meeting parenting
or caring responsibilities.
DEPI is now a Member of the Diversity Council of Australia to access diversity advice and Australian research, publications, thinking
and practice on the full range of diversity issues so we can continue to improve our internal program.
Further actions have been taken to progress gender equity that aim to create a fair, balanced and flexible organisation. The ‘My
mentor - Challenging women to make it happen’ program is being run across Victoria. The program supports women’s career
development opportunities in response to internal research that identified this as an organisational improvement area. Support was
also given for women to attend leadership development activities.
Major achievements this year include:

The development and launch of Meerreeng Wanga, the department’s Aboriginal Inclusion Plan for 2014 – 2019. DEPI’s vision is to
increase the involvement of Aboriginal Victorians in land, water and nature resource management and in food and fibre industries
to build strong Aboriginal culture and economic prosperity. Work is underway on implementing the associated 2014 Annual Work
Plan that has three broad outcomes that:
 Aboriginal cultural and customary interests in land, water and natural resources are recognised
 Development and growth in Aboriginal natural resource management and primary industries businesses
 Access by Aboriginal Australians to training and employment in natural resource management, primary industries and DEPI

The establishment of an active DEPI Parents and Carer’s Network in response to internal research including a staff initiated
review team of people from our Water and Catchments Group. The network has had three meetings, two in Melbourne and one in
regional Victoria. At the most recent meeting in Melbourne the topic was flexible working arrangements and a video was made of
the speakers to share this discussion statewide. This network has regular meetings and also an active Yammer group.
The department has continued to provide the language allowance, and has also promoted the carers room and the prayer room at 8
Nicholson Street to ensure we support and encourage the diversity of our employees.
Reward and recognition
DEPI understands the importance of motivating employees to reach their full potential, through recognising and acknowledging
achievements and encouraging staff to continue to work in accordance with the organisation’s values and behaviours. This can lead
to better work practices, enhanced staff satisfaction and improved outcomes for those receiving DEPI services.
DEPI redeveloped its reward and recognition program in early 2014 to focus recognition events at a division or group level, with active
informal recognition occurring at a team level and between individuals. This was based on research showing that recognition at a local
level is more meaningful to people and recognition activities should occur frequently rather than through a large annual event. This
change was to contribute to DEPI building a ‘culture of recognition’ where managers understand the importance of recognition to
organisational performance.
In 2013–14, DEPI continued its program to recognise outstanding achievers at the divisional or group level using the new guidelines.
Comparative workforce data
Profile of the DEPI workforce: June 2014
The 2013 and 2014 workforce data is not comparable as 2014 data represents the combined DEPI workforce following machinery of
government changes. The machinery of government changes resulted in the transfer of staff from the former Department of Primary
Industries (DPI) into DEPI and the transfer of staff from DEPI to the Department of Transport, Planning and Local Infrastructure.
These changes also involved the transfer of the Energy and Resources portfolio staff to the Department of State Development,
Business and Innovation (DSDBI). In total 521.8 FTE were transferred from DEPI and the former DPI to DSDBI and DTPLI.
As at June 2014, DEPI employed 3,470 full time equivalent (FTE) staff across Victoria.
Table 1: FTE staffing trends 2010 to 2014
2014
2013
2012
2011
2010
3,470
2,328
2,617
2,836
2,780
Fixed Term
and Casual
Total Staff
Table 2: Summary of employment levels in June 2013 and 2014
Ongoing
Employees
Employees
(headcount)
Full time
(headcount)
Part time
(headcount)
FTE
FTE
FTE
June 2014
3,393
2,819
574
3,190
280
3,470
June 2013
2,359
2,031
328
2,235
93
2,328
Department of Environment and Primary Industries 2013 – 14 Annual Report
19
Table 3: Details of employment levels in June of 2013 and 2014
2014
2013
Fixed term
and casual
Ongoing
Fixed term and
casual
Ongoing
(headcount)
FTE
FTE
(headcount)
FTE
FTE
Male
1,923
1,894
143
1,366
1,347
46
Female
1,470
1,296
137
993
888
47
Total
3,393
3,190
280
2,359
2,235
93
62
61
30
64
51
6
25-34
640
612
119
476
463
33
35-44
1,030
932
63
664
612
27
45-54
946
900
35
670
642
16
55-64
653
629
32
449
436
9
62
56
1
36
31
2
3,393
3,190
280
2,359
2,235
93
308
308
42
267
266
15
VPS 1
9
5
14
4
2
1
VPS 2
302
268
41
199
178
11
VPS 3
556
524
29
492
471
16
VPS 4
577
539
48
507
481
16
VPS 5
513
481
26
443
415
16
VPS 6
360
345
13
292
283
10
17
17
1
10
10
1
620
578
59
53
52
1
Legal Adaptives
14
13
1
20
19
3
Executives
61
60
0
48
47
0
Other
56
52
6
24
11
3
Total
3,393
3,190
280
2,359
2,235
93
Gender
Age
Under 25
Over 64
Total
Classification
Field Staff
STS
Science Adaptives
Notes:
1. Ongoing employees includes people engaged on a open ended contract of employment and executives engaged on a standard executive contract
who were active in the last full pay period of June.
2. FTE means full time staff equivalent and is rounded to the nearest whole number.
3. Employees reported with a classification of ‘other’ include the following categories: ministerial driver, principal scientists, cadets and wild dog
controllers.
4. All figures reflect employment levels during the last full pay period in June each year.
5. Excluded are those on leave without pay or absent on secondment, external contractors/consultants, and temporary staff employed by
employment agencies, and people who are not employees but appointees to a statutory office, as defined in the Public Administration Act 2004.
6. Employees attached to the Commissioner for Environmental Sustainability are employees of the Department Secretary and are included in the
above figures.
7. Employees attached to Sustainability Victoria are employees of the Department Secretary and their numbers are included in following tables.
Employee numbers are also reported in their annual report.
8. The Office of Living Victoria was operated as an Administrative Office from 22 May 2012 until 30 June 2014. Its numbers are included in following
tables.
Department of Environment and Primary Industries 2013 – 14 Annual Report
20
9. The Environment Protection Authority is a discrete agency within this portfolio that employees public servants independently of the Department
Secretary. The EPA is required to produce its own annual report. Employee numbers are published in the EPA annual report.
10. In accordance with the Administrative Order (No. 217) 2013, the workforce data disclosed for June 2013 was not adjusted to reflect the functions
and associated staff that were transferred from other departments to DEPI. Therefore, the nett annual effect of the transfers are reflected in June
2014 data.
Profile of Sustainability Victoria workforce
In 2013–14, Sustainability Victoria (SV) employed 111 FTE staff. See below for data on workforce composition, average salaries by
gender and Victorian Public Service (VPS) classification.
Table 1: Sustainability Victoria FTE staffing trends 2010 to 2014 (1)
2014
2013
2012
2011
2010
111
106
113
147
138
Table 2: Summary of employment levels in June 2013 and June 2014
Fixed term and casual
employees
Ongoing employees(1)
Employees
(headcount)
Full time
(headcount)
Part time
(headcount)
FTE (2)
FTE (2)
June 2014
95
70
25
89
22
June 2013
95
78
17
88
18
Department of Environment and Primary Industries 2013 – 14 Annual Report
21
Table 3: Details of employment levels in June 2013 and 2014
2014
2013
Fixed term and
casual
employees
Ongoing(1)
Fixed term and
casual
employees
Ongoing(1)
Employees
(headcount)
FTE(2)
FTE(2)
Employees
(headcount)
FTE(2)
FTE(2)
Male
42
42
7
40
39
6
Female
53
47
15
55
49
12
Total
95
89
22
95
88
18
0
0
0
0
0
0
25-34
15
15
10
20
20
6
35-44
42
38
10
36
31
8
45-54
23
22
1
22
21
1
55-64
14
13
1
15
14
3
1
1
0
2
2
0
95
89
22
95
88
18
VPS 1
0
0
0
0
0
0
VPS 2
0
0
0
0
0
0
VPS 3
3
3
1
5
5
2
VPS 4
33
30
10
33
29
2
VPS 5
38
36
9
38
35
11
VPS 6
16
15
2
14
14
3
STS
0
0
0
0
0
0
Executive
5
5
0
5
5
0
95
89
22
95
88
18
Gender
Age
Under 25
Over 64
Total
Classification
Total
Notes:
1. Ongoing employees includes people engaged in an open-ended contract of employment and executives engaged on a standard executive contract
who were active in the last full pay period of June.
2. FTE means fulltime staff equivalent.
3. All figures reflect employment levels during the last full pay period in June of each year.
4. Excluded are those on leave without pay or absent on secondment, external contractors/consultants, and temporary staff employed
by employment agencies.
5. Figures shown in Workforce data staffing trends are FTEs as opposed to Headcount which has been reported in previous years.
Department of Environment and Primary Industries 2013 – 14 Annual Report
22
Profile of Office of Living Victoria: June 2014
At 30 June 2014, Office of Living Victoria employed 69 FTE staff.
Table 1: Office of Living Victoria FTE staffing trends 2010 to 2014
2014
2013
2012
2011
2010
69
22
0
0
0
Fixed term
and casual
Total staff
Table 2: Summary of employment levels in June of 2013 and 2014
Ongoing employees
Employees
(headcount)
Full time
(headcount)
Part time
(headcount)
FTE
FTE
FTE
June 2014
36
28
8
33
36
69
June 2013
7
6
1
7
0
0
Table 3: Details of employment levels in June of 2013 and 2014
2014
Fixed term
and casual
Ongoing
2013
Fixed term
and casual
Ongoing
(headcount)
FTE
FTE
(headcount)
FTE
FTE
Male
17
16
13
3
3
12
Female
19
17
23
4
4
3
Total
36
33
36
7
7
15
Under 25
1
1
2
0
0
1
25-34
8
7
13
3
3
7
35-44
12
10
12
3
3
4
45-54
9
9
5
0
0
2
55-64
6
6
4
0
0
1
Over 64
0
0
0
1
1
0
36
33
36
7
7
15
VPS 1
0
0
0
0
0
0
VPS 2
1
1
0
0
0
0
VPS 3
0
0
5
0
0
1
VPS 4
2
2
9
0
0
6
VPS 5
13
11
8
3
3
4
VPS 6
15
14
13
1
1
4
STS
2
2
1
1
1
0
Executives
3
3
0
2
2
0
36
33
36
7
7
15
Gender
Age
Total
Classification
Total
Notes:
1. Ongoing employees includes people engaged on a open ended contract of employment and executives engaged on a standard executive contract
who were active in the last full pay period of June.
2. FTE means full time staff equivalent and is rounded to the nearest whole number.
Department of Environment and Primary Industries 2013 – 14 Annual Report
23
3. All figures reflect employment levels during the last full pay period in June each year.
4. Excluded are those on leave without pay or absent on secondment, external contractors/consultants, and temporary staff employed by
employment agencies, and people who are not employees but appointees to a statutory office, as defined in the Public Administration Act 2004.
Executive officer data
An executive officer (EO) is defined as a person employed as a public service body head or other executive under Part 3, Division 5 of
the Public Administration Act 2004. All figures reflect employment levels at the last full pay period in June of the current and
corresponding previous reporting year.
The definition of an EO does not include Governor in Council appointments as statutory office holders.
The total group of executives is classified into two distinct categories based on the following definitions:
ongoing executives are executives who are responsible for functions or outputs that are expected to be ongoing at the end of the
reporting period
special project executives are executives who are employed for a specific project. These projects are generally for a fixed term period
of time and relate to a specific government priority.
The following tables disclose the executive officers of the department for 30 June 2014:
Table 1 discloses the number of executive officers in the categories of ‘ongoing’ and ‘special projects’ and the total numbers of EOs
for the department;
Table 2 provides a breakdown of EOs according to gender for the categories of ‘ongoing’ and ‘special projects’;
Table 3 provides a reconciliation of executive numbers presented between the report of operations and Note 32 ‘remuneration of
executives’ in the financial statement.
Tables 1 to 3 also disclose the variations, denoted by ‘var’, between the current and previous reporting periods. Current vacancies are
shown in Table 2.
It should be noted that as a consequence of machinery of government changes resulting in the commencement of DEPI from 1 July
2013 figures prior to 2013-14 have not been adjusted.
Profile of DEPI Executive Officers: June 2014
The 2013 and 2014 workforce data is not comparable as 2014 data represents the combined DEPI workforce following machinery of
government changes. The machinery of government changes resulted in the transfer of staff from the former Department of Primary
Industries (DPI) into DEPI and the transfer of staff from DEPI to the Department of Transport, Planning and Local Infrastructure.
These changes also involved the transfer of the Energy and Resources portfolio staff to the Department of State Development,
Business and Innovation (DSDBI). In total 521.8 FTE were transferred from DEPI and the former DPI to DSDBI and DTPLI.
Table 1: Number of Executive Officers classified into ‘ongoing’ and ‘special projects’ (including vacancies)
Class
All
Ongoing
Special Projects
No.
Var
No.
Var
No.
Var
Secretary
1
0
1
0
0
0
EO-1
1
0
1
0
0
0
EO-2
36
15
36
15
0
0
EO-3
23
-4
23
-4
0
0
Total
61
11
61
11
0
0
Table 2: Breakdown of Executive Officers into gender
Class
Male
Female
Vacancies
No.
Var
No.
Var
No.
Var
Secretary
1
0
0
0
0
0
EO-1
1
0
0
0
0
0
EO-2
26
10
10
5
0
0
EO-3
11
-8
12
4
0
0
Total
39
2
22
9
0
0
Department of Environment and Primary Industries 2013 – 14 Annual Report
24
The number of executives in the report of operations is based on the number of executive positions that are occupied at the end of the
financial year. Note 32 in the Financial Statements lists the actual number of and amount of remuneration paid to executive officers
over the course of the reporting period. The Financial Statements note does not distinguish between executive levels, nor does it
disclose separations, vacant positions, executives whose remuneration is below $100 000, nor does it include the accountable officer.
Separations are those executives who received more than $100 000 in the financial year and have left the department during this
year. To assist readers, these two disclosures are reconciled below.
Table 3: Reconciliation of executive numbers
The 2013 and 2014 workforce data is not comparable as 2014 data represents the combined DEPI workforce following machinery of
government changes. The machinery of government changes resulted in the transfer of staff from the former Department of Primary
Industries (DPI) into DEPI and the transfer of staff from DEPI to the Department of Transport, Planning and Local Infrastructure.
These changes also involved the transfer of the Energy and Resources portfolio staff to the Department of State Development,
Business and Innovation (DSDBI). In total 521.8 FTE were transferred from DEPI and the former DPI to DSDBI and DTPLI.
2014
2013
Executives with total remuneration over $100,000
55
39
Executive employed with total remuneration below $100,00
21
16
Vacancies (Table 2)
0
0
Accountable Officers (Secretary)
1
2
11
5
Executives who moved to non-executive roles
5
1
Executive Officers who commenced leave without pay
0
1
61
50
Add
Less
Separations from DEPI
Total executive numbers(1)
At 30 June 2014, the department employed 61 executive officers and had 0 vacancies.
Note:
1. In accordance with the Administrative Arrangements Order (No. 217) 2013, the workforce data disclosed for June 2013 was not adjusted to reflect
the functions and associated staff that were transferred from other departments to DEPI. Therefore, the nett annual effect of the transfers are
reflected in June 2014 data.
Profile of OLV Executive Officers: June 2014
An executive officer (EO) is defined as a person employed as a public service body head or other executive under Part 3, Division 5 of
the Public Administration Act 2004. All figures reflect employment levels at the last full pay period in June of the current and
corresponding previous reporting year.
The definition of an executive officer does not include Governor in Council appointments as statutory office holders.
The total group of executives is classified into two distinct categories based on the following definitions:
ongoing executives are executives who are responsible for functions or outputs that are expected to be ongoing at the end of the
reporting period
special project executives are executives who are employed for a specific project. These projects are generally for a fixed term period
of time and relate to a specific government priority.
The following tables disclose the executive officers of the Office of Living Victoria for 30 June 2014:
Table 1 discloses the number of executive officers in the categories of ‘ongoing’ and ‘special projects’ and the total numbers of EOs
for the Department
Table 2 provides a breakdown of EOs according to gender for the categories of ‘ongoing’ and ‘special projects’
Department of Environment and Primary Industries 2013 – 14 Annual Report
25
Table 3 provides a reconciliation of executive numbers presented between the report of operations and Note 29 ‘remuneration of
executives’ in the financial statement.
Tables 1 to 3 also disclose the variations, denoted by ‘var’, between the current and previous reporting periods. Current vacancies are
shown in Table 2.
Table 1: Number of Executive Officers classified into ‘ongoing’ and ‘special projects’ (including vacancies)
All
Ongoing
Special Projects
Class
No.
Var
No.
Var
No.
Var
Secretary
0
0
0
0
0
0
EO-1
0
0
0
0
0
0
EO-2
3
1
3
1
0
0
EO-3
0
0
0
0
0
0
Total
3
1
3
1
0
0
Table 2: Breakdown of Executive Officers into gender
Male
Female
Vacancies
Class
No.
Var
No.
Var
No.
Var
Secretary
0
0
0
0
0
0
EO-1
0
0
0
0
0
0
EO-2
2
1
1
0
0
0
EO-3
0
0
0
0
0
0
Total
2
1
1
0
0
0
The number of executives in the report of operations is based on the number of executive positions that are occupied at the end of the
financial year. Note 29 in the Financial Statement lists the actual number of and amount of remuneration paid to executive officers
over the course of the reporting period. The Financial Statements note does not distinguish between executive levels, nor does it
disclose separations, vacant positions, executives whose remuneration is below $100 000, nor does it include the accountable officer.
Separations are those executives who received more than $100 000 in the financial year and have left the Department during this
year. To assist readers, these two disclosures are reconciled below.
Table 3: Reconciliation of executive numbers
2014
2013
Executives with total remuneration over $100,000
4
0
Executive employed with total remuneration below $100,000
1
2
Vacancies (Table 2)
0
0
Accountable Officers (Chief Executive Officer)
0
1
Separations from OLV
1
0
Executives who moved to non-executive roles
1
0
Executive Officers commenced leave without pay
0
0
Total executive numbers
3
3
Add
Less
At 30 June 2014, the Office of Living Victoria employed 3 executive officers and had 0 vacancies.
The Chief Executive Officer is a Governor in Council appointment and is not counted as an executive.
Department of Environment and Primary Industries 2013 – 14 Annual Report
26
Profile of Sustainability Victoria Executive Officers: June 2014
Table 1: Number of Sustainability Victoria EOs classified into ‘ongoing’ and ‘special projects’ (including vacancies)
All
Ongoing
Special Projects
Class
No.
Var
No.
Var
No.
Var
Secretary
0
0
0
0
0
0
EO-1
0
0
0
EO-2
0
0
0
0
0
0
EO-3
4
0
4
0
0
0
Total
4
0
4
0
0
0
0
Table 2: Breakdown of EOs into gender
Class
Male
Female
Vacancies
No.
Var
No.
Var
No.
Var
Secretary
0
0
0
0
0
0
EO-1
0
0
0
0
0
0
EO-2
0
0
0
0
0
0
EO-3
2
0
2
0
0
0
Total
2
0
2
0
0
0
2014
2013
Executives with total remuneration over $100,000
4
4
Executive employed with total remuneration below $100,000
0
0
Vacancies (Table 2)
0
0
Accountable Officers (Secretary)
0
0
Separations from SV
0
1
Executives who moved to non-executive roles
0
0
Executive Officers commenced leave without pay
0
0
Total executive numbers
4
4
Table 3: Reconciliation of executive numbers
Add
Less
Department of Environment and Primary Industries 2013 – 14 Annual Report
27
Number of Executive Officers for the department’s portfolio agencies
June 2014
Organisation Name
Female
Male
Total
Agricultural Services Victoria Pty Ltd
1
Barwon Coast Committee of Management
Barwon Region Water Corporation
3
Bellarine Bayside Foreshore Committee of Management (Inc)
June 2013
Male
Total
1
1
1
1
1
1
1
12
15
12
15
1
1
1
1
Capel Sound Foreshore Committee of Management Inc
Female
3
1
Central Gippsland Region Water Corporation
2
8
10
Central Highlands Region Water Corporation
1
5
6
City West Water Limited
2
8
10
Coliban Region Water Corporation
1
6
9
5
5
8
10
7
6
6
1
1
1
1
1
2
1
2
East Gippsland Catchment Management Authority
2
2
2
2
East Gippsland Region Water Corporation
5
5
5
5
2
3
2
2
Gippsland and Southern Rural Water Corporation
4
4
4
4
Gippsland Ports Committee of Management
1
1
1
1
Glenelg Hopkins Catchment Management Authority
1
1
1
1
Goulburn Broken Catchment Management Authority
2
2
2
2
Dairy Food Safety Victoria
Falls Creek Alpine Resort Management Board
1
1
2
1
Female
Male
Total
1
1
-1
7
Corangamite Catchment Management Authority
2
Annual change
Department of Environment and Primary Industries 2013 – 14 Annual Report
28
1
1
1
1
1
1
Goulburn Murray Rural Water Corporation
3
Goulburn Valley Region Water Corporation
Grampians Wimmera Mallee Water Corporation
1
Great Ocean Road Coast Committee Inc
Lower Murray Urban and Rural Water Authority
1
Mallee Catchment Management Authority
1
Melbourne Water Corporation
6
9
3
4
4
4
5
1
1
7
8
1
1
2
1
7
10
4
4
4
5
1
1
6
7
2
-1
-1
15
35
50
16
37
53
1
3
4
1
3
4
1
1
2
3
2
2
Mt Hotham Resort Management Board
1
1
1
1
North Central Catchment Management Authority
1
1
1
1
North East Catchment Management Authority
3
3
3
3
Metropolitan Waste Management Group
Mt Baw Baw Alpine Resort Management Board
Mt Buller and Mt Stirling Alpine Resort Management Board
1
North East Region Water Corporation
1
4
5
1
3
4
Parks Victoria
6
9
15
5
11
16
Phillip Island Nature Park Board of Management
1
1
1
1
Port Phillip and Westernport Catchment Management
Authority
1
1
1
1
PrimeSafe
1
1
1
1
Royal Botanic Gardens Board
1
5
6
1
5
6
South East Water Corporation
6
20
26
6
21
27
Department of Environment and Primary Industries 2013 – 14 Annual Report
29
-1
-1
1
1
-1
-2
-3
1
1
1
1
1
1
1
-2
-1
-1
-1
South Gippsland Region Water Corporation
4
4
4
4
The Mint Incorporated
1
1
1
1
Trust for Nature (Victoria)
1
1
1
1
VicForests
2
5
7
1
Wannon Region Water Corporation
5
5
West Gippsland Catchment Management Authority
2
2
5
6
1
1
5
5
1
1
2
-1
1
2
-2
Veterinary Practitioners Registration Board of Victoria
Western Region Water Corporation
3
3
6
1
5
6
Westernport Region Water Corporation
1
2
3
1
2
3
Wimmera Catchment Management Authority
1
1
2
2
Winton Wetlands Committee
1
1
1
1
Yarra Valley Water Corporation
2
26
28
2
24
26
Zoological Parks and Gardens Board
6
3
9
6
3
9
64
222
286
60
224
283
Total
4
-1
-1
2
2
-2
3
Notes:
1. All figures reflect employment levels during the last pay full period in June of each year unless otherwise stated.
2. Excluded are those on leave without pay or absent on secondment, external contractors / consultants and temporary staff employed by employment agencies.
3. Last year, the two executives employed by Mount Baw Baw Alpine Resort Management Board were renumerated below the executive threshold.
4. No executive reported for Veterinary Practitioners Board as position is vacant.
5. The Murray Valley Citrus Board has not been reported as it is in the final stages of being wound up. The Board effectively ceased operating in November 2013 and all staff had ceased by 28 February 2014.
6. Capel Sound Foreshore Committee of Management Inc report they have no personnel that meet executive criteria.
Department of Environment and Primary Industries 2013 – 14 Annual Report
30
Office-based environmental performance
Special Note: Structural changes to the department
On 9 April 2013, the Victorian Premier, Hon. Denis Napthine, announced a number of machinery of government changes to strengthen
the focus on jobs and investment and more effectively deliver frontline services.
The changes included the announcement of the new Department of Environment and Primary Industries, created from the merger of
the former Department of Sustainability and Environment (DSE) and the former Department of Primary Industries (DPI). The new
Department of Environment and Primary Industries (DEPI) officially commenced operation as a new government department from 1
July 2013.
Readers should note that the DEPI Annual Report 2013-14 is the first annual report covering the new department. In 2012-13, the DEPI
Annual Report provided performance information for the former Department of Sustainability and Environment (renamed DEPI in April
2013) and the separate DPI annual report provided performance information for the former Department of Primary Industries.
Office based environmental impacts
The new DEPI portfolio is spread across Victoria and includes:

offices and depots

incident control centres

research and development facilities including aquaculture facilities and laboratories

residences

air bases.
DEPI exceeds statutory obligations under Financial Reporting Direction 24C (FRD 24C) to report on office-based activities by reporting
on a wide range of its facilities and operations. DEPI’s new reportable portfolio comprises 92 sites and a building area of 281,489 m2.
The increased staff and accommodation footprint associated with the merger of the two departments has significantly increased DEPI’s
environmental footprint from 2012-13 to 2013-14.
Eco Office Challenge
The Eco Office Challenge program creates awareness of environmental objectives by encouraging positive environmental behaviours
across the department. Staff are encouraged to improve performance in reducing energy, water and paper use as well as waste to
landfill. A group of approximately 80 Eco Office Champions helped develop, implement and refine a range of initiatives and activities
aimed at encouraging these behaviours.
Department of Environment and Primary Industries 2013 – 14 Annual Report
31
Energy
The data presented below was collected from energy retailer billing information and represents 96.6 per cent of FTE at reportable
sites for 2013-14.
Due to the machinery of government changes, a direct comparison of energy usage between 2012-13 and 2013 14 cannot be made.
Indicator
Total energy usage
segmented by primary
source including
GreenPower (MJ)
Greenhouse gas emissions
associated with energy
use, segmented by primary
source and offsets (t
CO2-e)
2013-14
Electricity Natural gas
LPG
75,836,787 44,357,040
4,388,018
25,211
2,267
Green
power
2012-13
Electricity Natural gas
366,944 20,786,953
262
0
Indicator
Percentage of electricity purchased as GreenPower (%)
Units of energy used per full time employee (MJ/FTE)
Units of energy used per unit of office area (MJ/m 2)
LPG
Green
power
4,674,404
823,382
9,471,920
249
49
0
6,987
2013-14
2012-13
0.3
31
35,903.5
15,239.0
293.4
257.0
Notes:
1. In 2012-13, DEPI reported against the period of 1 July 2012 – 30 June 2013. Due to delays in receiving data in 2013-14 DEPI reported against 1
April 2013 – 31 March 2014 to allow for a full reporting year.
2. 2013-14 electricity data excludes 2 Lonsdale Street Melbourne and the Wangaratta Office due to the unavailability of consumption data.
3. 2013-14 metrics are based on a building area of 278,360 m 2. Office metrics are based on 50,603 m2.
4. DEPI reports on 75 per cent of AgriBio’s energy consumption, with the remainder being reportable by La Trobe University.
5. 1.6 per cent of 2013-14 electricity data has been estimated based on the previous year’s consumption.
6. 2013-14 natural gas data excludes the Colac Office due to the unavailability of consumption data.
7. 2.4 per cent of 2013-14 natural gas data has been estimated based on the previous year’s consumption.
8. Conversion factors are taken from the National Greenhouse Accounts Factors 2014.
9. There is no current mandate for Victorian Government Departments to purchase Green Power.
Actions undertaken
The Attwood Office redevelopment achieved a 5 Star Green Building Council of Australia rating for office design.
DEPI entered into an Energy Performance Contract as part of the Department of Treasury’s Efficient Government Buildings program
covering 47 DEPI sites. Under the program energy performance contracts are used to procure and implement energy and water
efficiency projects with an average payback period of seven years.
Targets
The following targets have been set for 2014-15:
Progressively reduce energy consumption across DEPI facilities.
Continue with the implementation of the Energy Performance Contract.
Department of Environment and Primary Industries 2013 – 14 Annual Report
32
Waste
Waste generation is divided into three general classes – landfill, compost and recycling.
The 2013-14 data presented below is derived from waste audits conducted at 16 sites covering non-hazardous solid waste material.
These audits covered 61.5 per cent of FTE, which is above the FRD24C requirement of 30 per cent.
Due to the machinery of government changes, a direct comparison of waste metrics between 2012-13 and 2013 14 cannot be made.
The 2013-14 audits highlighted that at some sites, separated compost was being disposed of through landfill as opposed to a
commercial composting facility. This has impacted the units of waste disposed of per FTE by destination (kg/FTE) and recycling rate
(% of total waste by weight). Organic matter disposed in landfill attracts a higher greenhouse gas emission factor than if it was
composted. DEPI is working to rectify the situation with the waste contractor during 2014-15.
Indicator
2013-14
2012-13
Landfill
Commingled
recycling
Compost
Landfill
Commingled
recycling
Compost
Total units of waste
disposed of by destination
(kg)
108,158
177,681
3,924
18,249
145,653
25,085
Units of waste disposed of
per FTE by destination
(kg/FTE)
31.2
51.2
1.1
7.8
62.0
10.7
Indicator
2013-14
2012-13
63
90
140
4.9
Recycling rate (% of total waste by weight)
Greenhouse gas emissions associated with waste
disposal (tCO2e)
Notes:
1. Commingled recycling comprises a range of plastics, aluminium, glass, paper and cardboard.
2. Waste data recorded during the site audits is extrapolated to represent a reporting year’s waste at all reportable sites in kilograms.
3. The 2013-14 waste audits involved measuring general waste and recycling for contamination and composition, collected by the cleaners from a
sample day. The audits were undertaken at the following locations:
-
8 Nicholson Street, East Melbourne
-
AgriBio Research Centre, Bundoora
-
Bairnsdale Office
-
Ballarat Office
-
Benalla Office
-
Bendigo Office/ Depot
-
Ellinbank Centre
-
Geelong Office
-
Hamilton Centre
-
Arthur Rylah Institute (Heidelberg)
-
Horsham Centre
-
Mildura Centre
-
Orbost Office
-
Tatura Centre
-
Traralgon Office
-
Warrnambool Office.
4. Conversion factors are taken from the National Greenhouse Accounts Factors 2014.
Department of Environment and Primary Industries 2013 – 14 Annual Report
33
Actions undertaken
DEPI audited above the required 30 per cent of FTE coverage figure as outlined in Financial Reporting Direction 24C, instead auditing
16 sites covering 61.5 per cent of FTE in order to gain an understanding of waste practices in its first year. Results will inform targeted
waste programs and provide the basis of a department wide waste review in 2014-15.
Boxes of unwanted re-usable bags with old departmental logos were donated to schools to help in food gardening programs.
Targets
The following targets have been set for 2014-15:

Progressively reduce total landfill waste production across DEPI facilities.

Undertake a review of current waste activities across all DEPI sites so as to ensure consistency and increase awareness including
updating signage.
Department of Environment and Primary Industries 2013 – 14 Annual Report
34
Paper
DEPI measures paper use by reams of paper purchased across its offices. DEPI’s preferred paper stock has a recycled content of 80
per cent.
Due to the machinery of government changes, a direct comparison of total units of A4 equivalent copy paper used (reams) between
2012-13 and 2013-14 cannot be made.
The category ‘Percentage 50-75% recycled content copy paper purchased (%)’ comprises 50 per cent recycled content A4 papers,
sourced primarily to cover out of stock periods of the preferred paper. The category ‘Percentage 0-49% recycled content copy paper
purchased (%)’ is almost entirely comprised of A3 sized and coloured A4 papers, which are unavailable in higher recycled content.
Indicator
Total units of A4 equivalent copy paper used (reams)
2013-14
2012-13
47,755
33,534
13.8
14.3
Units of A4 equivalent copy paper used per FTE (reams/FTE)
Indicator
Percentage of recycled
content in copy paper
purchased (%)
2013-14
2012-13
0-49%
50-74%
75-100%
0-49%
50-74%
75-100%
19.7
3.3
77.0
20.4
4.0
75.3
Notes:
1. In 2012-13, DEPI reported against the period of 1 July 2012 – 30 June 2013. Due to delays in receiving data in 2013-14 DEPI reported against 1
April 2013 – 31 March 2014 to allow for a full reporting year.
Actions undertaken
DEPI encourages paper-saving practices such as defaulting computers to print duplex and in some locations employ secure printing,
which has been shown to reduce paper consumption through reducing unwanted printouts.
Targets
The following target has been set for 2014-15:
Progressively reduce total units of A4 equivalent copy paper used (reams) per FTE.
Department of Environment and Primary Industries 2013 – 14 Annual Report
35
Water
Water data was collected from water retailer billing information and represents 98.5 per cent of FTE at reported sites in 2013-14.
Water is used in offices (drinking, washing, toilet flushing), building heating and cooling, vehicle washdown and research activities.
DEPI also utilises water from bores, local waterways and captures stormwater to subsidise its water use. This water is not measured
nor reported.
Due to the machinery of government changes, a direct comparison of metered water consumption between 2012-13 and 2013-14
cannot be made.
Indicator
2013-14
2012-13
Total units of metered water consumed (kL)
111,616
35,562
Units of metered water consumed in offices per FTE (kL/FTE)
16
11.5
Units of metered water consumed in offices per unit of office area
(kL/m2)
0.5
na
Notes:
1. In 2012-13, DEPI reported against the period of 1 July 2012 – 30 June 2013. Due to delays in receiving data in 2013-14 DEPI has reported against
1 April 2013 – 31 March 2014 to allow for a full reporting year.
2. 2013-14 data excludes the Macleod office and laboratory (EPA) and Wodonga Office due to the unavailability of consumption data.
3. DEPI reports on 75 per cent of Agribio’s water consumption, with the remainder being reportable by La Trobe University.
4. 2013-14 metrics are based on a building area of 280,059 m 2. Office metrics are based on a building area of 46,671 m 2.
5. 4.7 per cent of water data has been estimated based on the previous year’s consumption.
6. 2012-13 kilolitres per unit of office area was not reported.
Actions undertaken
A trial audit of two Water Sensitive Urban Design (WSUD) assets at Horsham Centre and Powelltown Office/Depot was undertaken in
2013-14. The intention was to gain an understanding of how each site functions in terms of stormwater and biodiversity management,
and to identify opportunities to improve both stormwater and biodiversity management, both at the trial sites, and other WSUD assets
across DEPI in the new financial year.
Targets
The following targets have been set for 2014-15:
Progressively reduce water consumption per FTE.
Investigate the feasibility of monitoring usage of alternative sources of water.
Department of Environment and Primary Industries 2013 – 14 Annual Report
36
Transport
Fleet
During 2013-14 DEPI’s fleet comprised 1,430 vehicles, 95 per cent of which were operational vehicles, with the remainder executive
fleet. Of the operational fleet, nine per cent were LPG, 25 per cent were petrol, 56 per cent were diesel fuelled and ten per cent were
hybrid. The executive fleet comprised of 98 per cent petrol, LPG or diesel fuelled with two per cent hybrid vehicles.
Due to the machinery of government changes, a comparison of total energy consumption by vehicles segmented by vehicle type, total
vehicle travel associated with entity operations segmented by vehicle type (km) and greenhouse gas emissions from vehicle fleet
segmented by vehicle type (tCO2-e) between 2012-13 and 2013-14 cannot be made.
In 2013-14 DEPI exceeded statutory obligations under Financial Reporting Direction 24C (FRD 24C) by reporting on all of its
operational vehicles (passenger and utilities). The data also includes usage from the Shared Services Provider vehicle pool.
Indicator
2013-14
2012-13
Utility
Passenger
Hybrid
Utility
Passenger
Hybrid
Total energy
consumption by
vehicles segmented by
vehicle type (MJ)
91,005,713
17,568,785
12,545,859
na
na
na
Total vehicle travel
associated with entity
operations segmented
by vehicle type (km)
20,435,566
5,329,807
4,593,619
na
na
na
Greenhouse gas
emissions from vehicle
fleet segmented by
vehicle type (tCO2-e)
6,281
1,177
804
na
na
na
Greenhouse gas
emissions from vehicle
fleet per 1,000
kilometres travelled
(tCO2-e/100 km)
0.31
0.22
0.18
na
na
na
Notes:
1. Due to delays in receiving data in 2013-14, DEPI has reported against 1 April 2013 – 31 March 2014 to allow for a full reporting year.
2. Data from 2012-13 has not been included due to variations on how the transport data was collected and reported. Reporting has now been
simplified to three standard classes.
3. Conversion factors are taken from the National Greenhouse Accounts Factors 2014.
Air Travel
Air travel includes intrastate, interstate and overseas trips. In 2013-14 overseas trips were driven by market development for
agriculture products and global research collaboration.
Due to the machinery of government changes, a comparison of total distance travelled between 2012-13 and 2013-14 cannot be
made.
Indicator
Total distance travelled
by air (km)
2013-14
2012-13
7,058,292
1,519,398
Department of Environment and Primary Industries 2013 – 14 Annual Report
37
Staff commuting
DEPI measures how staff travel to and from the workplace via an annual travel survey. This year 595 staff members completed the
survey with 51.8 per cent of respondents from the CBD, 13.4 per cent from the metro area and 34.8 per cent from regional offices.
Indicator
Percentage of employees
regularly (>75 per cent of
work attendance days)
using public transport,
cycling, walking, or
carpooling to and from
work or working from
home, by locality type (%)
2013-14
2012-13
CBD
Metro
Regional
CBD
Metro
Regional
86
36
28
93
68
37
Actions undertaken
The department continued to review its fleet mix as vehicles were scheduled for replacement. Replacement vehicles defaulted to high
environmental performance vehicles unless alternative models were required for operational use
Targets
The following target has been set for 2014-15:
Progressively reduce consumption of unleaded petrol used by the department’s passenger vehicle fleet.
Department of Environment and Primary Industries 2013 – 14 Annual Report
38
Greenhouse gas emissions
The emissions disclosed below are taken from the previous sections and brought together to show the department’s carbon footprint.
Due to the machinery of government changes, a comparison of total greenhouse gas emissions between 2012-13 and 2013-14
cannot be made.
Indicator
2013-14
2012-13
Total greenhouse gas
emissions associated
with energy use
(tCO2-e)
27,739
7,285
Total greenhouse gas
emissions associated
with vehicle fleet
(tCO2-e)
8,262
na
Total greenhouse gas
emissions associated
with air travel (tCO2-e)
1,941
446
Total greenhouse gas
emissions associated
with waste production
(tCO2-e)
140
4.9
Notes:
1. Conversion factors are taken from the National Greenhouse Accounts Factors 2014.
Actions undertaken
All of the actions undertaken in the previous sections help to reduce the department’s environmental impacts.
Targets
The following target has been set for 2014-15:
Progressively reduce the department’s carbon footprint.
Procurement
The Accredited Purchasing Unit provides internal procurement advice to support and strengthen environmental procurement
practices. Departmental templates for tendering and contracting incorporate requirements for tenderers to demonstrate their
environmental credentials and allow tender evaluation teams to weight and score this as a separate assessment criterion where
relevant. Staff seeking approval from the Accredited Purchasing Unit for procurement are requested to advise how sustainability was
considered in the evaluation process and to provide reasons if this was not the case.
Department of Environment and Primary Industries 2013 – 14 Annual Report
39
Output performance
This section reports on the delivery of the department’s outputs, including details of key projects and
initiatives for the year and performance results against the output measures set out in the 2013–14
Budget Paper No. 3 Service Delivery (BP3).
Structural changes to the department during 2013–14
Following the commencement of the Department of Environment and Primary Industries on 1 July 2013, the new department has
taken a number of steps towards improving output performance reporting, including consolidating outputs to better reflect
departmental service delivery and to enhance the quality of its performance measures. As a result of machinery of government
changes the Land Administration and Property Information output transferred to the new Department of Transport, Planning and
Local Infrastructure on 1 July 2013.
The department made some changes to its output structure for 2013-14, as shown in the table below:
2013–14 Outputs
Reason for change
2012–13 Outputs
Environmental Programs
In 2012-13, the department undertook a restructure to
better reflect the implementation of the new regional
on-ground service delivery structure. The department
has revised these output groups to better reflect the
new departmental structure.
Biodiversity
Natural Resources
Environmental Policy
In 2012-13, the department undertook a restructure to
better reflect the implementation of the new regional
on-ground service delivery structure. The department
has revised these output groups to better reflect the
new departmental structure.
Environmental Policy and
Climate Change
Development of Primary
Industries
The department has consolidated these outputs
following machinery of government changes.
Primary Industries Policy
Regulation and Compliance
Strategic and Applied
Scientific Research
Practice Change
Output performance in 2013–14

The department’s outputs for 2013–14 contributed to the following objectives:

Effective management of water resources to meet future urban, rural and environmental needs.

The community benefits from effective management of Victoria’s land assets.

Effective environmental and adaptation policy, investment and regulation.

Reduced impact of major bushfires and other extreme events on people, infrastructure and the environment.

Create productive and competitive agriculture industries.

Sustainably manage fish, game and forest resources.
Departmental objective indicators
Departmental objective indicators have been published in Budget Papers since 2012-13. They provide an indication of progress
towards the achievement of the department’s objectives. This year is the first time that the result for each indicator is published in the
annual report.
Effective management of water resources to meet future urban, rural and environmental needs
This objective will deliver on increasing the efficiency of supply and use of water in cities and towns including integrated water cycle
management, make a more sustainable irrigation industry, and deliver a transition strategy for the Murray-Darling Basin Plan that
balances social, economic and environmental needs. In addition, this objective will improve environmental conditions and waterways
supporting community needs.
Department of Environment and Primary Industries 2013 – 14 Annual Report
40
Departmental objective indicators and progress
Indicator
Number of river reaches / wetlands with improved environmental
condition
Unit of
measure
Target
Actual
number
108
343
The 2013-14 actual is higher than the target due to higher-than-estimated project delivery in key projects and output deliverables.
The results of the output measures listed below also contribute to the overall actual figure achieved:



Area of waterway vegetation works undertaken to improve the health and resilience of waterways
Length of rivers where works have been undertaken to improve instream health
Number of community groups engaged to increase knowledge/capacity of water management.
Proportion of properties directly connected to the modernised irrigation
delivery system (in the Goulburn Murray and Macalister Irrigation
District)
per cent
41
38
The slight underachievement is due to the significant time required to allow for adequate consultation and landowner consideration
of connection offers. The project is expected to meet its targets of connecting 100% of landowners within the expected timeframe.
Proportion of new homes connected to an alternative water source
per cent
35
29
The proportion of new homes connected to an alternative water source was 29 per cent, which represents significant progress during
2013-14. Over the past year, more people chose solar hot water over rain water tanks to meet the mandated 6 star requirements and
there were slightly less 3rd pipe connections.
Effective Water Management and Supply
This output develops policies, provides oversight of, and strategic advice on, regulatory systems and institutional arrangements to drive
the effective management and efficient use of Victoria’s water resources. Key areas include river health, sustainable irrigation, ground
and surface water, water reuse and recycling, and water sector agency governance and pricing.
A key component of Effective Water Management and Supply is to ensure efficient management and use of water including integrated
water cycle management, water industry performance oversight, governance and the availability of information to enable informed
decision making. This is intended to ensure a safe, reliable and effective supply of water to meet future urban, rural, and
environmental needs.
Output results: Effective Water Management and Supply
Performance measures
Unit of
measure
2013–14
target
2013–14
actual
hectares
850 – 1 100
3 060
Quantity
Area of waterway vegetation works undertaken to improve instream
health
The 2013-14 actual is higher than the 2013-14 target due to milder weather conditions which increased output delivery. Additional
willow control was also undertaken on waterways following increased community awareness and landholder interest in improving
waterway health.
Compliance with the Murray-Darling Basin Agreement to maintain a
balance in the Salinity Register such that the total of salinity credits is in
excess of, or equal to, the total of salinity debits
number
Cumulative water savings (permanent reduction in irrigation distribution
system delivery losses) realised through water recovery projects
megalitres
>0
26.9
707 241
638 600 est
Department of Environment and Primary Industries 2013 – 14 Annual Report
41
The 2013-14 actual is lower than the 2013-14 target as a result of the extension of Stage 1 of the Connections Project milestone
timeframes to align with Stage 2. The water recovery target for both Stage 1 and Stage 2 of the Connections Project remains the
same.
Length of river where works have been undertaken to stabilise bank
erosion
km
10 – 18
44
The 2013-14 actual is higher than the 2013-14 target due to additional programs such as the Regional Development Victoria Flood
Support Program, which resulted in more bank stabilisation and re-snagging works undertaken.
Living Victoria Program recommendations implemented
per cent
50
50
Number of community groups engaged to increase the
knowledge/capacity of water management
number
45 – 53
253
The 2013-14 actual is higher than the 2013-14 target due to the extended community consultation being undertaken during 2013-14
for the development of regional Waterway Strategies.
Number of sites with environmental water managed to meet
environmental objectives
number
53
198
The 2013-14 actual is higher than the 2013-14 target due to a number of factors including favourable seasonal conditions in Winter
2013.
Other Victorian retail water entitlements (including licences to take and
use water and other miscellaneous entitlements) recorded in the water
register
per cent
77
76.4
Rebates approved for small business for improved water efficiency
number
1 500
1 309
While slightly below target for this financial year, there has been a steady increase in the uptake of these rebates since the
program’s commencement in 2011-12.
Rebates approved to households for improved water efficiency in the
house and garden
number
18 000
17 487
Victorian water shares (entitlements to a share of water in large rural
storages) recorded in the water register
per cent
100
100
Water information products delivered for greater accountability in
sustainable water resource management
number
5
5
per cent
100
100
per cent
100
100
Quality
Bulk water entitlements/environmental entitlements being complied with
to ensure security of supply, environmental flows and compliance with
caps
Timeliness
Statutory obligations of Water Corporations complied with, including
annual reports and audits, corporate plans, and exercises under the
Terrorism (Community Protection) Act 2003
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Cost
Total output cost
$ million
343.7
273.8
The lower output cost is due to the timing of the payment to Goulburn-Murray Water for the Goulburn-Murray Water Connections
Project.
The community benefits from effective management of Victoria’s land assets
This objective delivers land management supporting social, environmental and economic outcomes,
provides effective governance and management of public land.
Departmental objective indicators and progress
Indicator
Unit of
measure
Bay assets rated in average to excellent condition
per cent
Target
Actual
65
78
This indicator relates to assets managed by Parks Victoria. In line with the Parks Victoria condition rating criteria the higher 2013-14
actual reflects renewal and remediation works to State owned assets which have been undertaken during the year.
Number of visits to Parks Victoria managed estate
number
88
95.8
per cent
80
84.9
See comments on page 45
Park assets rated in average to excellent condition
See comments on page 45
Public Land
This output provides for the management of Victoria’s Crown land, including the coast and marine environments. It works towards the
improved stewardship of natural, built and historic assets, and incorporates management of public land in partnership with statutory
agencies, committees and local government. It recognises the value of a public land estate that can adapt to climate change and cater
for community expectations.
The outcomes for public land are to have land managers that are supported with clear policies, legislation and advice, and build
opportunities for Indigenous and local community partnerships in public land management.
Output results: Public Land
Unit of
measure
Performance measures
2013–14
target
2013–14
actual
Quantity
Crown land leases directly managed by the Department of Environment
and Primary Industries
number
684
685
Crown land licenses directly managed by the Department of
Environment and Primary Industries
number
(000)
43
44
Maps generated on Land Channel
number
19 000
18 240
Department of Environment and Primary Industries 2013 – 14 Annual Report
43
Number of activities undertaken by Coastcare Victoria participants
number
600
600
Reports generated on Land Channel
number
1 800
2 590
The 2013-14 actual exceeded the 2013-14 target due to higher than anticipated demand for Land Channel reports.
Threatened native species and communities for which specifically
targeted conservation measures are in place at Royal Botanic Gardens
number
8
8
Visitors to Zoos Victoria at Melbourne, Werribee and Healesville
number
(million)
1.89
2.03
The 2013-14 actual exceeded the target due to the birth of the Asian Elephant and the opening of the new Lemur Island exhibit.
Quality
Audited Vicmap digital map base not requiring correction
per cent
97
97.07
Foreshore protection assets around Port Phillip and Western Port bays
rated as ‘good’ to ‘very good’ condition
per cent
80
50
The lower 2013-14 actual reflects the age of the asset base, with more assets reaching the end of their useful life. This indicator
relates to assets managed by DEPI.
Publicly elected committees of management that have a current
statutory appointment
per cent
95
83
The lower 2013-14 actual is due to a delay in appointments being progressed which will be addressed in early 2014-15.
Timeliness
Rent reviews of Crown land leases undertaken within specified time
frames
per cent
95
89.75
per cent
98
40
$ million
118.9
120.6
The lower 2013-14 actual is due to 10.25% of rent reviews being subject to objection processes.
Update transactions for the Vicmap digital map base processed within
the required timeframes
The lower 2013-14 actual is due to the transition to a new contractor.
Cost
Total output cost
Department of Environment and Primary Industries 2013 – 14 Annual Report
44
Forests and Parks
This output provides for the management of Victoria’s state run parks and forests. Through this output, the department manages the
balance between development and protection of natural, cultural and community assets for enjoyment and sustainable use. This
output works towards the improved stewardship of Victoria’s parks and forests and incorporates direct and delegated management of
public land.
The outcome for forests and parks is the continued enhancement of Victoria’s parks and forests. This outcome is achieved by
securing and improving forests and parks habitat, enriching forests and parks biodiversity, and by using forests and parks to support
regional wellbeing and wealth creation.
Output results: Forests and Parks
Unit of
measure
2013–14
target
2013–14
actual
Number of hectares treated to minimise the impact of pest plants, pest
animals and overabundant native animals in parks managed by Parks
Victoria
hectares
(000)
1 200
1201
Number of visits to Parks Victoria managed estate
number
(million)
88 – 92
95.8
Total area of estate managed by Parks Victoria
hectares
(million)
4 086
4 106
per cent
65
78
Performance measures
Quantity
Quality
Bay assets rated in average to excellent condition
This indicator relates to assets managed by Parks Victoria. In line with the Parks Victoria condition rating criteria the higher 2013-14
actual reflects renewal and remediation works to State owned assets which have been undertaken during the year.
Level of compliance with environmental regulatory framework for
commercial timber operations as required by the Forest Audit Program
per cent
90
93
Park assets rated in average to excellent condition
per cent
80
84.9
Recreational facilities in state forests with a life expectancy greater than
five years
per cent
70
54
The 2013-14 actual is a reflection of the age of the asset base, with more facilities reaching the end of their useful life.
Cost
Total output cost
$ million
181.7
199.2
The higher output cost is due to additional grant payments to Parks Victoria and the purchase of land not included in the published
budget.
Department of Environment and Primary Industries 2013 – 14 Annual Report
45
Effective environmental and adaptation policy, investment and regulation
This objective delivers support for local communities and landholders engaged in environmental
works, improves the transparency and delivery of environmental regulation, provides effective
governance and investment in environmental programs and provides effective policy for
environmental outcomes and resource efficiency.
Departmental objective indicators and progress
Indicator
Unit of
measure
Participation in community based environmental programs (FTE days)
number
Target
Actual
na
23,522
Participants contributed an estimated 23,522 full days to Landcare related community activity during 2013-14 based on reports
submitted by Victorian Local Landcare Facilitators. It should be noted that the figure is extrapolated from the 54 facilitator reports,
which cover 437 of Victoria’s estimated 630 Landcare groups and 53 of 67 Landcare networks.
Level of support from key stakeholders for environmental and
adaptation policy development and implementation
per cent
90
90
Reduction in pollutants from priority hotspots
per cent
20
20
Environmental Programs
The Environment Programs output delivers investment, regulatory and research functions that support diverse and resilient natural
ecosystems for a liveable, sustainable and prosperous Victoria.
Through this output the department leads the development and implementation of strategic regulation and investment in environment
and natural resource programs, working with partners and local communities to deliver outcomes across Victoria. It also leads
development of information systems and evidence-based decision-making tools that support the systematic identification and public
reporting of environmental benefits.
Output results: Environmental Programs
Performance measures
Unit of
measure
2013–14
target
2013–14
actual
hectares
(million)
0.47
0.18
Quantity
Area covered by the regional land health projects
The result reflects a more targeted focus of the Land Health Program towards farmers who aspire to increase productivity and
generate more significant land health outcomes.
Area of revegetation protected or enhanced through DEPI supported
Landcare activities
hectares
1 200 – 1 600
1 718
81 000
76 500
The 2013-14 actual is an approximation provided by Regional Landcare Coordinators.
Landcare members and community volunteers participating in Landcare
activities
number
Improvements in the data collection methodology has led to a more precise calculation of participation in Landcare activities.
Native vegetation credit trading agreements (which produce potential
offsets to clearing of native vegetation) signed through the BushBroker
program
number
60
65
Regional land health projects being implemented
number
15 – 18
18
per cent
100
100
Quality
Corporate plans submitted by catchment management authorities are
Department of Environment and Primary Industries 2013 – 14 Annual Report
46
aligned with ministerial guidelines and template, and meet the
requirement of relevant Acts
Presentations made and scientific publications in peer reviewed journals
number
60
64
Catchment management authority corporate plans submitted to the
Minister by the prescribed date
number
10
10
Planning referrals relating to native vegetation processed within
statutory timeframes
per cent
80
80
Wildlife Licence renewals processed by target dates
per cent
96
96
$ million
109.3
110.7
Timeliness
Cost
Total output cost
Statutory Activities and Environment Protection
The purpose of this output is to protect, care for and improve beneficial uses of the environment by developing statutory and non
statutory processes, setting and enforcing goals and standards, and undertaking monitoring and research. The monitoring and
research activities help ensure that the beneficial uses of water are protected, waste management occurs, noise in the community is
managed, contamination of land and groundwater is prevented, better management of air quality is promoted and global air quality
issues are addressed. Through collaboration, communication and information programs greater community involvement and
ownership of environmental issues are also promoted.
Output results: Statutory Activities and Environment Protection
Unit of
measure
Performance measures
2013–14
target
2013–14
actual
54
58
52
119
Quantity
Environmental condition research reports issued, improvement tools,
guidelines, policies, systems and plans completed and issued
number
The 2013-14 target was exceeded due to a higher volume of publications between July and December 2013.
Increase in EPA notices issued for illegal dumping of waste
number
The 2013-14 target was exceeded due to the effectiveness and focus on illegal dumping in outer metropolitan and regional Victoria
and EPA’s new pollution response framework.
Quality
EPA prosecutions are successful, and conditions in enforceable
undertakings (entered into under the Environment Protection Act 1970)
are focused on improving the environmental performance of the offer
per cent
90
100
All prosecutions undertaken in 2013-14 were successful which resulted in the 2013-14 target being exceeded.
Land audits submitted by EPA appointed auditors are reviewed to
ensure compliance with statutory requirements and guidelines
per cent
90
94
Notices complied with by due date or escalation in line with Compliance
and Enforcement policy
per cent
90
94
per cent
75
85
Timeliness
When a pollution incident is reported to EPA and follow-up contact is
requested, the reporter receives this within three working days
Department of Environment and Primary Industries 2013 – 14 Annual Report
47
The 2013-14 target was exceeded in line with EPA’s continued commitment to customer service.
Works approvals and licences completed within required statutory timelines
per cent
96
86
The 2013-14 actual was lower than the 2013-14 target due to a high volume of licence amendment activity from December 2013 to
February 2014.
Cost
Total output cost
$ million
138.1
132.9
Environmental Policy
The Environment Policy output leads the development and implementation of strategic, whole-of-government environment and
adaptation policy. It provides responsive policy advice and direction to give effect to government priorities on waste, resource
recovery and efficiency, ecosystem sustainability, adaptation and carbon and to ensure the department has an integrated policy
position to contribute to whole-of-government reforms.
Through this output the department leads the modernisation of legislative, regulatory and governance arrangements in the
environment portfolio and uses economic, research and scientific expertise to develop policy responses to harness Victoria’s current
and emerging sustainability opportunities.
Output results: Environmental Policy
Unit of
measure
Performance measures
2013–14
target
2013–14
actual
20
17
Quantity
Number of Victorian Local Sustainability Accord grant project
evaluations and acquittals completed
number
Seventeen project acquittals were completed in the 2013-14 financial year. Two further projects that were scheduled to be
completed in 2013-14 were delayed with one further project discontinued (with funding returned), due to capacity issues within local
government.
Percentage of Victorian schools accredited in the ResourceSmart
Schools program
per cent
38
46.6
The higher 2013‑14 actual is due to the success of the ResourceSmart Schools program and a higher rate of take up of the
program.
Quality
Completion of annual reporting and board appointment processes in
accordance with legislation
per cent
100
100
Departmental stakeholder satisfaction with completed policy projects
per cent
95
100
Departmental stakeholder satisfaction with technical economic analysis,
advice and support
per cent
95
100
$ million
48.8
40.3
Cost
Total output cost
The lower 2013-14 output cost is primarily due to the timing of grant payments under the Communities for Nature and the Victorian
Environmental Partnerships programs
Department of Environment and Primary Industries 2013 – 14 Annual Report
48
Reduced impact of major bushfires and other extreme events on people, infrastructure and the
environment
This objective delivers a planned burning program that reduces the threat and impact of bushfires for Victoria and delivers a
risk-based approach to preparing and responding to fire and non-fire emergency events.
Departmental objective indicators and progress
Unit of
measure
Target
Actual
per cent
80.00
74.20
Fires controlled at less than five hectares, to suppress fires before they
become established, minimising impact.
per cent
80.00
79.5
Area of public land treated through planned burning
hectares
260 000
82 022
hectares
364 000
449 851
Indicator
Fires controlled at first attack to suppress fires before they become
established, minimising impact.
See comment on page 50
See comment on page 50
Area of public land prepared for planned burning
To maximise planned burning opportunities, all DEPI Regions ensured that multiple options for planned burning were planned and
prepared for implementation as weather conditions allowed.
Land and Fire Management
This output covers activities under an integrated land and fire management framework, for the effective planning and management of
fire across public land.
The outcomes of this work are intended to lead to a reduction in bushfire risk through the use of fuel reduction burning, other fuel
management activities and the maintenance of firebreaks to protect communities. This will result in an engaged, informed and fire
ready community.
These outcomes are achieved by ensuring that the workforce is effectively trained and prepared for fire suppression events and fuel
management activities. Accompanying those efforts is a road network capable of facilitating fire related activities and providing
access to fire agencies, tourists, the general public and the timber industry. Overall, the outcomes of this work will be to deliver the
recommendations of the 2009 Victorian Bushfires Royal Commission.
Department of Environment and Primary Industries 2013 – 14 Annual Report
49
Output results: Land and Fire Management
Unit of
measure
Performance measures
2013–14
target
2013–14
actual
6
6
260 000
82 022
Quantity
Community engagement plans developed and implemented in response
to social research findings on community consultation needs of the
planned burning program
number
Fuel reduction burning completed to protect key assets
hectares
Following a protracted fire season, combined with a wetter than usual Autumn, the target of 260,000 ha was not able to be met.
A total of 82,022 hectares (33%) of fuel reduction burning was achieved statewide.
An additional 12,686 hectares was treated using mechanical means, and a further 52,335 hectares of area planned for fuel
reduction burning was affected by bushfire before it could be treated by planned burning. Further planned burning would have been
possible if conditions allowed, with DEPI having 206% of burn area planned (target 165%) and 172% prepared (target 140%) for fuel
reduction.
Personnel with accreditation in a fire role
number
1 800
1983
The 2013-14 actual reflects there being a higher than targeted number of personnel currently accredited to perform in a fire role as
of June 2014. Maintaining these high numbers of personnel with fire role accreditation enables a more efficient response to fire
events.
State forests bridges (on Category 1 roads) with documented
inspections to meet regulatory obligations
per cent
100
100
State forests roads (Category 1) with documented inspection and
maintenance programs to meet regulatory obligations
per cent
100
100
Strategic engagement forums held to enhance community
understanding and sustain support for the planned burning program
number
12
10
The 2013-14 actual is lower than the 2013-14 target as one roundtable was not held due to the extended fire season and a second
roundtable was delayed until July 2014, so as not to coincide with school holidays.
Quality
Fire controlled at less than five hectares to suppress fires before
they become established, minimising impact
per cent
80
79.5
Personnel accredited to serve in a senior capacity (level 2 or 3) in a fire
role
number
300
278
The 2013-14 target was not met due to the delay in commencing the level 3 transition program. This program has commenced and
the target will be reached in 2014-15.
Timeliness
District fire operations plans completed
date
Fires controlled at first attack to suppress fires before they become
established, minimising impact
per cent
Oct 2013
Oct 2013
80
74.2
The significant level of multiple fires starting simultaneously in remote parts of the state, combined with elevated fire dangers over
a protracted season, contributed to the 2013-14 outcome
Readiness and response plans completed prior to fire season
date
Dec 2013
Dec 2013
338.7
381.5
Cost
Total output cost
$ million
The higher output cost is due to the intensity of the 2013-14 fire season and associated fire suppression activities.
Department of Environment and Primary Industries 2013 – 14 Annual Report
50
Create productive and competitive agriculture industries
This objective will create conditions for increased productivity and access to markets for dairy, red meat, grains and horticulture
industries.
Departmental objective indicators and progress
Unit of
measure
Indicator
Adoption of appropriate technology and management practices by
target farmers as a result of accessing services or information directly
from DEPI or from other providers
Target
Actual
Qualitative measure – see comment below
A qualitative report on the successful implementation of programs contributing to the adoption of appropriate technology is available
on the DEPI website.
Effective biosecurity incursion management
number
na
67
DEPI effectively responded to and managed 67 biosecurity incursions in 2013-14. There were no animal biosecurity incursions, 11
plant pest/disease responses and 56 invasive plants and animal responses.
Sustainably manage fish, game and forest resources
This objective will assist in the efficient and sustainable allocation, use and responsible management of secure access to fisheries,
forest and game resources for current and future use
Departmental objective indicators and progress
Indicator
Unit of
measure
Number of fisheries maintained within sustainable levels
number
Target
Actual
14
12
Data relating to the status of the 14 fisheries covered by this measure are primarily sourced from the 2012 Status of Key Australian
Fish Stocks (SAFS) report, where available. The scallop and western zone abalone fisheries were reported in the 2012 SAFS report
as ‘undefined’, meaning ‘not enough information exists to determine stock status’.
Number of timber stocks maintained with sustainable levels
per cent
100
100
DEPI has management responsibility for allocating access to timber stocks under licence for smaller scale commercial sawlog and
firewood harvesting, mainly in the west of the state. Timber stock levels are assessed prior to any allocation being made using
in-field validation processes and documented in coupe plans. Stock allocation occurs at a coupe level under three year rolling Wood
Utilisation Plans within defined Forest Management Areas. Harvesting activities are monitored by DEPI Forest Officers to ensure
licensed operators comply with licence conditions at all times. Management arrangements including allocations are adjusted on
an ongoing basis using all of this information to ensure current and future sustainability is maintained.
Number of game stocks maintained with sustainable levels
per cent
100
100
Development of Primary Industries
The department works with research and industry partners, primary producers and rural communities across Victoria to improve
agricultural competitiveness, biosecurity, and sustainable fish, game and forest resource management.
The department provides services to drive productivity growth, connect Victoria’s food and fibre industries to the Asian and Middle
Eastern growth markets and assist industry development and transition. The department builds and maintains Victoria’s capability to
monitor, detect and respond to animal and plant pest and disease outbreaks, residue incidents, animal welfare issues and other
biosecurity threats, thereby safeguarding animal welfare and ensuring continued and increasing access to local and international
markets. DEPI ensures that fish, game and forest resources are managed responsibly so that regional economies and the Victorian
community benefit from the commercial and recreational use of these resources now and into the future.
In order to achieve these outcomes, this output delivers policy frameworks, legislative reforms, regulation, enforcement, education,
research and development, practice change, biosecurity and resource management services.
Department of Environment and Primary Industries 2013 – 14 Annual Report
51
Output results: Development of Primary Industries
Unit of
measure
Performance measures
2013–14
target
2013–14
actual
Quantity
Animal pest, disease and residue control programs maintained to
ensure Victorian agricultural produce complies with food safety and
biosecurity standards required to access markets
number
5
5
Commercial technology licence agreements finalised
number
16
16
Complete total allowable commercial catch setting processes for key
quota managed fish species
number
3
3
Complete stock assessment for key quota managed fish species
number
3
3
Compliance with relevant industry standards for animal welfare
number
25
25
Compliance with relevant international and national quality assurance
standards by meeting certification authorities required performance
audits on biosecurity programs
per cent
95
95
Detect, disrupt and dismantle serious or organised fisheries criminal
entities (individuals or groups)
number
4
3
The 2013-14 target was not met as a major investigation is in progress and is expected to be finalised during 2014-15.
Develop, implement and review overarching fisheries compliance
strategy
number
1
1
Enhance levels of community participation in achieving fisheries
compliance through calls to the 13FISH reporting line
number
1 500
1 701
2 800
3 122
The 2013-14 target was exceeded due to increased support from the community.
Farmers supported to make better informed decisions to increase
productivity through network services
number
The 2013-14 target was exceeded due to higher than expected participation in dairy and grains networks services.
Farms and related small businesses facing significant adjustment
pressures supported to make better informed decisions by the Rural
Financial Counselling Service
number
2 000
1 893
This 2013-14 actual is demand driven by client needs and slightly lower than the 2013-14 target due to favourable Autumn seasonal
conditions which resulted in lower demand by clients.
Formal evaluations that measure improvement to industry productivity
number
4
4
Game licence applications, renewals and amendments processed
within 15 business days of receipt
per cent
100
100
Genetic improvement of dairy cows achieved through breeding
contributing to increased milk production and dairy productivity
per cent
1
1
International scientific workshops/conferences led/organised by DEPI to
promote science leadership among peers
number
4
5
The 2013-14 target was exceeded as one additional international conference relating to ‘Soil matters’ was held in March 2014.
Key fisheries managed in accordance with best practice management
plans
number
Department of Environment and Primary Industries 2013 – 14 Annual Report
52
5
3
The 2013‑14 actual is lower than the 2013‑14 target due to effort being focused on developing a guide to the development of a best
practice fishery management plan. The purpose of this guide is to provide a consistent, best practice management approach that
can be applied across all Victorian fisheries.
Known state prohibited weed sites monitored and treated in line with the
relevant weed action plan
per cent
90
90
Major strategic policy briefings to government
number
4
4
Minimum number of Uniformed Fisheries Officers maintaining
operational coverage for priority fishing activity periods, as defined by
the Compliance Strategic Assessment
number
17
15.6
The 2013-14 target was not met as long-term fisheries officer vacancies, staff commitments to emergency response
(fire and forest protest) and training activities impacted on staff availability for after-hours duties.
New key enabling technologies and core science capacity
competencies established/upgraded by DEPI
number
1
1
Number of native and salmonid fish stocked
number
340 000
340 000
This output relates only to fish stocking funded through the Improving Recreational Fishing Opportunities in Regional Victoria
initiative.
Participation in agreed national biosecurity, agriculture/veterinary
chemical use and animal welfare programs
per cent
>95
>95
Plant pest, disease and residue control programs maintained to ensure
Victorian agricultural produce complies with food safety and biosecurity
standards required to access markets
number
6
6
Postgraduate level/PhD students in training by DEPI
number
65
68
Properties inspected for invasive plant and animal priority species
number
3 800
3 793
Scientific and technical publications in international and/or peer review
journals that promote productive, profitable and sustainable farming
systems
number
258
305
The 2013‑14 actual is higher than the 2013‑14 target due to a number of larger programs coming to completion at the same time.
Significant customer interactions to facilitate export outcomes
number
50
148
The 2013-14 actual is higher than the 2013-14 target due to the early implementation of Food and Agriculture into Asia Action Plan
increasing customer interactions through its trade and export outcomes.
Significant stakeholder interactions on climate variability, adaptation
and risk management
number
420
636
The 2013-14 actual exceeded the 2013-14 target due to an increased emphasis on stakeholder engagement.
Strategies developed to overcome identified trade barriers
number
3
3
Value of external (non state) funding contribution to research projects
that support productive, profitable and sustainable farming systems
$ million
36
41.5
The 2013-14 target was exceeded primarily due to successful collaborations with industry partners which led to an expanded
program of research which had not been planned.
Quality
Clients are satisfied that services are accessible, timely and relevant
per cent
>80
Department of Environment and Primary Industries 2013 – 14 Annual Report
53
85
Proportion of practice change and technical publications submitted to
conference proceedings and peer review journals that are accepted for
publication
per cent
90
100
The 2013-14 actual was exceeded as all publications submitted were accepted for publication by 30 June 2014.
Timeliness
Agrifood and natural resource management research and development
project milestones and reports completed on time
per cent
80
91.35
The 2013-14 actual is higher than the 2013-14 target due to favourable seasonal conditions that allowed completion of experiments
on time.
Applications for intellectual property protection
number
8
7
The 2013-14 actual was lower than the 2013-14 target as one trademark application has been delayed and is scheduled for
finalisation early in 2014-15.
Project milestone reports completed on time
per cent
85
82
Provision of technical advice, diagnostic identification tests on pests and
diseases including suspected exotics within agreed timeframes
per cent
80
80
Response time to emergency animal pest, disease, residue and disaster
incidents
hours
< 24
< 24
Response time to emergency plant pest, disease, residue and disaster
incidents
hours
< 24
< 24
440.3
453.4
Cost
Total output cost
$ million
Department of Environment and Primary Industries 2013 – 14 Annual Report
54
Legislative and other information
Major entities
Agriculture and Food Security

Agriculture Victoria Services Pty Ltd

Animal Welfare Advisory Committee

Apicultural Industry Advisory Committee

Biosciences Research Centre Joint Venture Board

Cattle Compensation Advisory Committee

Dairy Food Safety Victoria (and Selection Committee)

Emergency Closures Advisory Committee

Fisheries Cost Recovery Standing Committee

Licensing Appeals Tribunal (Fisheries)

Murray Valley Citrus Board (and Selection Panel)(1)

Murray Valley Wine Grape Industry Development Committee

National Livestock Identification System Implementation Advisory Committee

Northern Victorian Fresh Tomato Industry Development Committee

PrimeSafe (and Selection Panel)

Recreational Fishing Grants Working Group

Royal Melbourne Showgrounds Joint Venture

Sheep and Goat Compensation Advisory Committee

Sheep and Goat Identification Advisory Committee

Swine Industry Projects Advisory Committee

Veterinary Practitioners Registration Board of Victoria (and Panel Hearings)

VicForests

Victorian Agricultural Chemicals Advisory Committee

Victorian Agriculture Advisory Council

Victorian Broiler Industry Negotiation Committee(2)

Victorian Hunting Advisory Committee(3)

Victorian Strawberry Industry Development Committee
Environment and Climate Change

Alpine Advisory Committee

Alpine Resorts Coordinating Council

Barwon Regional Waste Management Group(4)

Budj Bim Council

Calder Regional Waste Management Group(4)

Central Coast Regional Coastal Board

Central Murray Regional Waste Management Group(4)

Commissioner for Environmental Sustainability

Committees of management(5)

Desert Fringe Regional Waste Management Group(4)

Director of National Parks

Environment Protection Authority

Environment Protection Board
Department of Environment and Primary Industries 2013 – 14 Annual Report
55

Falls Creek Alpine Resort Management Board

Gippsland Lakes and Coast Regional Coastal Board

Gippsland Lakes Ministerial Advisory Committee

Gippsland Regional Waste Management Group (4)

Goulburn Valley Regional Waste Management Group (4)

Grampians Regional Waste Management Group(4)

Gunaikurnai Traditional Owner Land Management Board

Highlands Regional Waste Management Group(4)

Lake Mountain Alpine Resort Management Board

Metropolitan Waste Management Group(4)

Mildura Regional Waste Management Group (4)

Mornington Peninsula Regional Waste Management Group(4)

Mount Baw Baw Alpine Resort Management Board

Mount Buller and Mount Stirling Alpine Resort Management Board

Mount Hotham Alpine Resort Management Board

National Parks Advisory Council

North East Victorian Regional Waste Management Group(4)

Parks Victoria

Reference Areas Advisory Committee

Royal Botanic Gardens Board Victoria

Scientific Advisory Committee

South Western Regional Waste Management Group(4)

Sustainability Fund Advisory Panel

Sustainability Victoria

Trust for Nature (Victoria)

Trustees for Crown land reserves(6)

Victorian Adaptation Sustainability Partnership Ministerial Advisory Council

Victorian Coastal Council

Victorian Environmental Assessment Council

Victorian Environmental Water Holder

Victorian Mineral Water Committee

Western Coast Regional Coastal Board

Yorta Yorta Joint Body(7)

Yorta Yorta Traditional Owner Land Management Board (8)

Zoological Parks and Gardens Board
Water

Barwon Region Water Corporation

Border Groundwater Agreement Review Committee

Central Gippsland Region Water Corporation

Central Highlands Region Water Corporation

City West Water Corporation

Coliban Region Water Corporation

Corangamite Catchment Management Authority(9)

East Gippsland Catchment Management Authority(9)
Department of Environment and Primary Industries 2013 – 14 Annual Report
56

East Gippsland Region Water Corporation

Gippsland and Southern Rural Water Corporation

Glenelg Hopkins Catchment Management Authority(9)

Goulburn Broken Catchment Management Authority(9)

Goulburn Valley Region Water Corporation

Goulburn-Murray Rural Water Corporation

Grampians Wimmera Mallee Water Corporation

Independent Reviewer of Victoria’s Framework for Economic Regulation of the Water Sector (10)

Lower Murray Urban and Rural Water Corporation

Mallee Catchment Management Authority(9)

Melbourne Water Corporation

North Central Catchment Management Authority(9)

North East Catchment Management Authority(9)

North East Region Water Corporation

Office of Living Victoria(11)

Port Phillip and Westernport Catchment Management Authority(9)

South East Water Corporation

South Gippsland Region Water Corporation

Victorian Catchment Management Council(9)

Wannon Region Water Corporation

Water Law Review Advisory Panel(12)

West Gippsland Catchment Management Authority(9)

Western Region Water Corporation

Westernport Region Water Corporation

Wimmera Catchment Management Authority(9)

Yarra Valley Water Corporation
Notes:
1. On 7 November 2013, the Minister for Agriculture and Food Security revoked the Murray Valley Citrus Industry Development Order 2012 pursuant
to section 11(1)(a) of the Agriculture Industry Development Act 1990. The Murray Valley Citrus Board has subsequently ceased operation and is
expected to be abolished in the near future.
2. The Victorian Broiler Industry Negotiation Committee has been inactive for several years, but has not been abolished.
3. The Victorian Hunting Advisory Committee was abolished on the establishment of the Game Management Authority, on 1 July 2014.
4. The 12 Regional Waste Management Groups ceased operation on 31 July 2014. The Metropolitan Waste Management Group was renamed on 1
August 2014 as Metropolitan Waste and Resource Recovery Group, which is its successor in law. Six new Waste and Resource Recovery Groups
were established on 1 August 2014.
5. There are approximately 1200 committees of management in DEPI’s portfolio. Some of the major committees of management include: Phillip
Island Nature Park Board of Management, Barwon Coast Committee of Management Incorporated, Bellarine Bayside Foreshore Committee of
Management Inc, Great Ocean Road Coast Committee Incorporated, Otway Coast Committee Incorporated, The Mint Incorporated and Winton
Wetlands Committee of Management Incorporated.
6. There are approximately 60 trustees for Crown land reserves, including Caulfield Racecourse Reserve Trustees and the Melbourne and Olympic
Parks Trust.
7. By agreement with the Yorta Yorta Nation Aboriginal Corporation, there have been no members appointed to the Yorta Yorta Joint Body since
August 2012.
8. The Yorta Yorta Traditional Owner Land Management Board was established on 13 June 2013 by Determination published in the Government
Gazette.
9. The Minister for Environment and Climate Change and the Minister for Water are jointly responsible for the ten Catchment Management Authorities
and the Victorian Catchment Management Council.
10. The Independent Reviewer of Victoria’s Framework for Economic Regulation of the Water Sector was established by the Minister for Water by
terms of reference. It existed between 19 Jan 2014 to 31 July 2014.
11. The Office of Living Victoria (OLV) was abolished as an Administrative Office on 1 July 2014 by Order in Council under s.11 of the Public
Department of Environment and Primary Industries 2013 – 14 Annual Report
57
Administration Act 2004 (PAA), published in the Government Gazette (No. S 231, 1 July 2014). OLV’s functions were transferred to become a
group within DEPI.
12. The Water Law Review Advisory Panel was a non-statutory panel established by the Minister for Water by terms of reference in 2012. It had a
limited role and existed between 9 August 2012 to 30 April 2013.
Department of Environment and Primary Industries 2013 – 14 Annual Report
58
Acts administered
Agriculture and Food Security
Agricultural Industry Development Act 1990
Agricultural and Veterinary Chemicals (Control of Use) Act 1992
Agricultural and Veterinary Chemicals (Victoria) Act 1994
Biological Control Act 1986
Broiler Chicken Industry Act 1978
Conservation Forests and Lands Act 1987
Parts of the Act, relating to fisheries, game hunting and timber harvesting are administered either solely or jointly with the Minister
for Environment and Climate Change. The Act is otherwise administered by the Minister for Environment and Climate Change and
the Minister for Water.
Control of Genetically Modified Crops Act 2004
Dairy Act 2000
Domestic Animals Act 1994
Drugs Poisons and Controlled Substances Act 1981
Parts IVA, Part IVB solely and Part XI jointly and severally administered with the Minister for Health and the Minister for Mental
Health. The Act is otherwise administered by the Minister for Mental Health.
Farm Debt Mediation Act 2011
Fisheries Act 1995
Flora and Fauna Guarantee Act 1988
Section 5 and Parts 3 and 5 and Division 1 and 2 of Part 6 are administered jointly with the Minister for Environment and Climate
Change.
Forests Act 1958
Sections 1,2,3(1),3B, 4-7(1), 7(3), 18, 19-22, 26A, 52, 53-55,57,78-84,94-100, 101,102,103 joint and severally with the Minister for
Environment and Climate Change; section 40 and 52AA. The Act is otherwise administered by the Minister for Environment and
Climate Change.
Forests (Wood Pulp Agreement) Act 1996
Game Management Authority Act 2014
Grain Handling and Storage Act 1995
Part 3. The Act is otherwise administer by the Treasurer.
Impounding of Livestock Act 1994
Land Conservation (Vehicle Control) Act 1972
Section 3 jointly with the Minister for Environment and Climate Change. The Act is otherwise administered by the Treasurer.
Livestock Disease Control Act 1994
Livestock Management Act 2010
Meat Industry Act 1993
Plant Biosecurity Act 2010
Prevention of Cruelty to Animals Act 1986
Rain Making Control Act 1967
Seafood Safety Act 2003
Stock (Seller Liability and Declarations) Act 1993
Sustainable Forests (Timber) Act 2004
Except section 3,22,23(1), 24 and Part 9 which is administered jointly with the Minister for Environment and Climate Change and
Part 2, section 45, Division 1 of Part 6, Part 8 which is administered by the Minister for Environment and Climate Change.
Veterinary Practice Act 1997
Wildlife Act 1975
Department of Environment and Primary Industries 2013 – 14 Annual Report
59
Part 1 (except section 4B), Parts III, IIIA, VIII and IX, section 16,35,41-44, 47D, 48-48C, 53-58B, 8686C, 87 in so far as it relates to
hunting, jointly with the Minister for Environment and Climate Change. Part IIIB, section 58C, 58D and 58E . The Act is otherwise
administered by the Minister for Environment and Climate Change.
Environment and Climate Change
Aboriginal Lands Act 1991
This Act is jointly and severally administered with the Minister for Aboriginal Affairs.
Alpine Resorts Act 1983
Alpine Resorts (Management) Act 1997
Catchment and Land Protection Act 1994
This Act is jointly and severally administered with the Minister for Water.
Climate Change Act 2010
Except Section 5 which is administered by the Premier.
Coastal Management Act 1995
Commissioner for Environmental Sustainability Act 2003
Conservation, Forests and Lands Act 1987
Parts of the Act are either solely, jointly, or jointly and severally administered with the Minister for Agriculture and Food Security and
insofar as it relates to the exercise of powers for the purposes of the Catchment and Land Protection Act 1994, are jointly and
severally exercised with the Minister for Water.
Crown Land (Reserves) Act 1978
Except for certain specified Crown allotments administered by other Ministers and the Assistant Treasurer.
Cultural and Recreational Lands Act 1963
Dental Hospital Land Act 2011
Environment Protection Act 1970
Fences Act 1968
This Act is administered by the Minister for Environment and Climate Change insofar as it relates to vermin-proof fences in Section
19. The Act is otherwise administered by Attorney-General.
Flora and Fauna Guarantee Act 1988
Only section 5 and Parts 3 and 5 and Division 1 and 2 of Part 6 and jointly administered with the Minister for Agriculture and Food
Security.
Forests Act 1958
Except certain provisions which are either solely or jointly and severally administered with the Minister for Agriculture and Food
Security.
Heritage Rivers Act 1992
Land Act 1958
Except for certain specified areas of land managed by other agencies such as the Office of Corrections, Courts Services and the
Department of Health.
Land Conservation (Vehicle Control) Act 1972
Only section 3 and jointly administered with the Minister for Agriculture and Food Security.
Melbourne and Olympic Parks Act 1985
Only sections 24-28 of the Act. The remaining provisions are administered by the Minister for Sport and Recreation.
National Environment Protection Council (Victoria) Act 1995
National Parks Act 1975
Parks Victoria Act 1998
Pollution of Waters by Oil and Noxious Substances Act 1986
The Minister for Environment and Climate Change is responsible for sections 8-13, 18-23 and 23B, 23D, 23E, 23G, 23J, 23K, 23L
and 24E. Sections 30 and 47 are jointly administered with the Minister for Ports. The Act is otherwise administered by the Minister
for Ports.
Reference Areas Act 1978
Department of Environment and Primary Industries 2013 – 14 Annual Report
60
Royal Botanic Gardens Act 1991
Safety on Public Land Act 2004
State Owned Enterprises Act 1992
Division 2 of Part 2 insofar as it relates to the Victorian Plantations Corporation. The Act is otherwise administered by the Minister
for Multicultural Affairs and Citizenship, the Minister for Water and the Treasurer.
Sustainability Victoria Act 2005
Sustainable Forest (Timber) Act 2004
Part 2, Section 45, Division 1 of Part 6 and Part 8, Section 3, 22, 23(1) and 24 and Part 9 are administered jointly with the Minister
for Agriculture and Food Security.
Temperance Halls Act 1958
Victorian Conservation Trust Act 1972
Victorian Environment Assessment Council Act 2001
Victorian Plantations Corporation Act 1993
Water Industry Act 1994
Only Parts 4, 4A, 7 and 8 of the Act. The Act is otherwise administered by the Minister for Water.
Wildlife Act 1975
Except Part 1 (except section 4B), Parts III, IIIA, VIII and IX, section 16, 35, 41-44, 47D, 48-48C, 5358B, 86-86C, 87 in so far as it
relates to hunting, jointly with the Minister for Agriculture and Food Security; and Part IIIB, Section 58C, 58D and 58E solely
administered by the Minister for Agriculture and Food Security.
Zoological Parks and Gardens Act 1995
Water
Catchment and Land Protection Act 1994
Jointly and severally administered with the Minister for Environment and Climate Change.
Conservation, Forests and Lands Act 1987
Insofar as it relates to the exercise of powers for the purposes of the Catchment and Land Protection Act 1994, jointly and severally
administered with the Minister for Environment and Climate Change. The Act is otherwise administered by the Minister for
Agriculture and Food Security and the Minister for Environment and Climate Change.
Groundwater (Border Agreement) Act 1985
Murray-Darling Basin Act 1993
State Owned Enterprises Act 1992
Division 2 Part 2 insofar as it relates to the Water Training Centre. The Act is otherwise administered by the Minister for
Environment and Climate Change , the Minister for Multicultural Affairs and Citizenship and the Treasurer.
Water Act 1989
Water (Commonwealth Powers) Act 2008
Water Efficiency Labelling and Standards Act 2005
Water Industry Act 1994
This Act is administered by the Minister for Water except for Parts 4, 4A, 7 and 8, which are administered by the Minister for
Environment and Climate Change.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Implementation of the Victorian Industry Participation Policy (VIPP)
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). VIPP requires opportunities for local
supply and/or participation to be identified as part of the tendering process. Departments and public bodies are required to apply VIPP
in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria.
Contracts commenced
During 2013-14, the department commenced 20 contracts totaling $91.6 million in value to which the VIPP applied. The contracts
included six in metropolitan Melbourne with a total value of $46 million, 10 in regional Victoria with a total value of $32.2 million and
four statewide with a total value of $13.4 million.
The number and percentage of ‘local content’ committed under the contracts that commenced in 2013-14 where a VIPP Plan was not
required (due to nil to limited contestability) was split by:
(i) four contracts with a local content between 86 per cent and 100 per cent that are local by nature
(ii) one contract with a local content of 15 per cent that is international by nature.
There were 38 small and medium sized businesses that prepared a VIPP Plan for contracts that commenced in 2013-14.
The number and percentage of ‘local content’ committed under contracts that commenced in the period to which a VIPP Plan was
required were split by projects:
(i) that are metropolitan based - four contracts with a local content between 23.2 per cent and 76.9 per cent
(ii) that are statewide/regionally based - ten contracts with a local content between 73 per cent and 100 per cent.
The commitments by contractors under VIPP as a result of these contracts included 436 Annualised Employee Equivalent (AEE)
positions and 72 apprentices/trainees AEE. There are many benefits to the Victorian economy from these commitments in terms of
skills and technology transfer increases, including:

training in the Oracle Financial system

training in data maintenance

software and production

project management

contract management and risk

computer visions skills to analyse images for plant phenotyping, planning and execution of biological experiments in a high
throughput environment

data analysis and maintenance of large data sets

plant and traffic management specifically for road and bridge construction and site hazards

environment and design layout

techniques in handling precast concrete beams and construction.
Contracts completed
During 2013-14, DEPI completed 20 contracts to which VIPP applied, totalling $95.6 million in value. The contracts included two in
metropolitan Melbourne with a total value of $20.8 million, 14 in regional Victoria with a total value of $45.8 million and four statewide with
a total value of $29 million.
There were 37 small and medium sized businesses that prepared a VIPP Plan for contracts completed in 2013-14.
The number and percentage of ‘local content’ under contracts that completed in the period to which a VIPP Plan was required split by
projects:
(i) that are metropolitan based - two contracts with a local content between 89 per cent and 100 per cent
(ii) those that are statewide/regionally based - 18 contracts with a local content between 31 per cent and 100 per cent
The achieved outcomes report by contractors under VIPP included 469 AEE positions and 66 apprentices/trainees AEE.
Benefits to the Victorian economy in terms of increased skills, training and technology transfer in the following areas:

presentation

report writing

negotiation

communication

project management

internal audit methodology
Department of Environment and Primary Industries 2013 – 14 Annual Report
62

strategic planning

plan reading

landslide repair

excavator piling in bridge construction

small bridge construction

road construction

first aid

road marking

earthmoving machinery and dogman

design

fabrication and assembly for highly specialised machine

production of LiDAR derivative products and configuration of hardware and software components.
DEPI did not award any grant or design contract that meets the VIPP threshold in 2013-14.
Consultancies
Details of consultancies
In 2013-14, there were 34 consultancies where the total fees payable to the consultants were $10,000 or greater. The total
expenditure incurred during 2013-14 in relation to these consultancies is $2.532 million (excl. GST). Details of individual
consultancies can be viewed at DEPI’s website.
In 2013-14, there were 19 consultancies where the total fees payable to the consultants were less than $10,000. The total expenditure
incurred during 2013-14 in relation to these consultancies is $0.071 million (excl. GST).
Disclosure of major contracts
During 2013-14, the department entered into four contracts greater than $10 million in value. Details of the contracts were published
on the Victorian Government’s contracts publishing system and can be viewed online (www.tenders.vic.gov.au).
Department of Environment and Primary Industries 2013 – 14 Annual Report
63
Disclosure of government advertising expenditure
DEPI – Planned Burning campaign
The department implemented an external communications campaign focused on alerting communities to the planned burning
program and how to seek further information about where and when burns are taking place. The campaign includes: advertisements,
media placements, improved notification methods, roadside signage and social media activity. Advertisements also inform people
about precautions they can take to reduce the impacts of smoke on health and information is also distributed through health networks.
Start and end
date
Campaign name
Planned burning
1 March 2014
– 31 May 2014
Creative and
Advertising
campaign
(media)
development
2013-14
2013-14
(ex GST)
(ex GST)
$335,612
na
Research
and
evaluation
2013-14
(ex GST)
Print and
collateral
2013-14
(ex GST)
Other
campaign
expenditure
2013-14
(ex GST)
$19,005
$1,234
$5,500
OLV – Right Water campaign
Right Water is a brand and campaign to encourage Victorians to use more alternative water sources, an initiative of the Government’s
Melbourne’s Water Future policy. The campaign is aimed at householders with gardens who have yet to take meaningful
water-saving action. It encourages householders to capture the rainwater that lands on their roof for a beautiful, green garden
year-round.
Start and
end date
Campaign name
Right Water
17 February 2014
– 31 April 2014
Creative and
Advertising
campaign
(media)
development
2013-14
2013-14
(ex GST)
(ex GST)
$421,352
$20,250
Research
and
evaluation
2013-14
(ex GST)
Print and
collateral
2013-14
(ex GST)
Other
campaign
expenditure
2013-14
(ex GST)
$34,650
$92,010
$21,887
Freedom of Information
The Freedom of Information Act 1982 gives everyone the right to seek access to documents held by government. The department’s
Freedom of Information (FOI) Unit can be contacted on 9637 8186.
FOI requests have to be made in writing. A request can be submitted using the website FOI Online (www.foi.vic.gov.au) or by sending
an application to:
Freedom of Information
Department of Environment and Primary Industries
PO Box 500
EAST MELBOURNE VIC 3002
From 1 July 2014, the application fee to make an FOI request is $26.50. DEPI can waive this fee in certain circumstances. There may
be further charges depending on the time it takes to find the documents and photocopy them and the number of pages to be
photocopied.
For the period 1 July 2013 to 30 June 2014, the department received 118 new FOI requests, from the sources shown below:
Number
Per cent
Individuals
43
36%
Lawyers
26
22%
Journalists
18
15%
Members of Parliament
15
13%
Community groups
9
8%
Companies
7
6%
Department of Environment and Primary Industries 2013 – 14 Annual Report
64
For the same period, the department made decisions on 106 requests. Twenty-five of these requests were received during the
previous financial year. The outcomes were:
Number
Per cent
Full access granted
31
29%
Partial access granted
50
47%
Access denied
10
10%
No relevant documents
found
15
14%
The processing time for the FOI requests is shown below, with an average of 30 days.
Number
Per cent
105
99%
46 – 90 days
1
1%
91+ days
0
0%
0 – 45 days
The department also responded to an additional 27 requests received during the previous financial year, with the outcomes shown
below.
Number
*
Request not processed *
15
Transferred
12
Request not processed includes: all requested documents released outside the Act; request withdrawn by applicant; request was not processed;
deposit not paid.
Freedom of Information Commissioner
Reviews
Eleven requests for reviews of FOI decisions made by the department were submitted to the Freedom of Information Commissioner
(FOI Commissioner) during 2013-14. The FOI Commissioner affirmed six of the decisions and varied one. Two reviews were
withdrawn by the applicant or dismissed by the FOI Commissioner. Two reviews are outstanding at the end of the reporting period.
Three reviews were carried over from the previous year. All three were completed by the FOI Commissioner and all decisions were
varied with additional material released.
Complaints
The department was advised by the FOI Commissioner’s office of five complaints made about the department’s processing of an
applicant’s FOI request, or decisions that no relevant documents were identified. Three complaints were closed with no action
required by the department. Advice is pending on closure of the remaining two.
Two complaints were carried over from the previous year. The FOI Commissioner’s office advised the department of the closure of
one. Advice of closure of the other is pending.
Victorian Civil and Administrative Tribunal
Two applications for a review of an FOI decision were made to the Victorian Civil and Administrative Tribunal. One application was
withdrawn by the applicant. The second is ongoing.
Protected Disclosure Act 2012
The department did not have any Protected Disclosures during 2013-14.
Protected disclosures about this department or any of its employees and/or officers, or statutory entities, may be made to the following
officers:
Protected Disclosure Coordinator
Jennifer Berensen
Department of Environment and Primary Industries
Department of Environment and Primary Industries 2013 – 14 Annual Report
65
PO Box 500
East Melbourne 3002
Telephone: (03) 9637 8697
Email: jennifer.berensen@depi.vic.gov.au
Deputy Protected Disclosure Coordinator
Deidre Egan
Department of Environment and Primary Industries
PO Box 500
East Melbourne 3002
Telephone: (03) 9637 8575
Email: deidre.egan@depi.vic.gov.au
Compliance with the Carers Recognition Act 2012
The department has taken all practical measures to comply with its obligations under the Carers Recognition Act 2012 to ensure our
staff have an awareness and understanding of the care relationship principles set out in the Act.
The department has a carer’s leave policy that allows staff to take leave to care for immediate family members. This includes
spouses, children, siblings, parents and grandparents. A number of staff take Carer’s leave when needed to care for others. New staff
are made aware of the policy as part of the induction program.
A DEPI Parents and Carer’s Network was established in December 2013 that holds regular meetings and has a Yammer site where
network members can engage online.
An awareness raising program about the Act was undertaken as part of the promotion for Carers Week on 13 to 19 October 2013 with
follow up activities during the launch of the Parents and Carer’s Network.
A pilot training program held in June 2014 on making flexible work happen, provided support to managers so they can effectively
assess and implement workplace flexibility and support the needs of those with caring responsibilities.
Compliance with the Building Act 1993
The department complies with the Building Act 1993, the Building Regulations 2006 and associated statutory requirements and
amendments. Either an Occupancy Permit or a Certificate of Final Inspection is obtained for new facilities or for upgrades to existing
facilities endorsed by a Municipal Building Surveyor or a Registered Building Surveyor Practitioner.
Major works projects commenced or completed in 2013–14 include:

Bendoc depot redevelopment

Dargo depot redevelopment

Noojee office and depot redevelopment

Swifts Creek office and depot redevelopment

Broadford office and depot redevelopment

Mitta Mitta office and depot redevelopment

Rushworth depot redevelopment

Attwood office redevelopment

Knoxfield office and depot redevelopment

Beaufort office and depot redevelopment

Forrest office and depot redevelopment

Gellibrand office and depot redevelopment

Warrnambool office redevelopment

Bundoora glasshouse

Horsham Australian Grains Genebank

Horsham phenotyping glasshouse

Hamilton Shearing shed.
Maintenance of buildings in a safe and serviceable condition
The department’s leased portfolio is managed by the Department of Treasury and Finance’s Shared Service Provider. The
department has a facilities management contract with Five D Holdings Pty Ltd for 154 of its owned portfolio with the balance of 40
sites currently managed in house. The owned portfolio includes offices, combined office/depot sites, depots, residences, research
facilities, glasshouses, airbases and fire lookout towers. Five D and the in-house managers are responsible for maintaining the
buildings in a safe and serviceable condition and for providing the annual essential safety measures report for the buildings. Quality
Department of Environment and Primary Industries 2013 – 14 Annual Report
66
assurance, performance measures and governance are incorporated into the contract to ensure that contract requirements are met
and standards maintained.
Compliance with the Fisheries Act 1995
Under Section 101G of the Fisheries Act 1995, DEPI is required to report on the number of searches conducted each year, including
the type and number of priority species found during the course of those searches.
A total of two searches were conducted during 2013-14, discovering abalone.
Compliance with DataVic Access Policy
In August 2012, the Victorian Government released the DataVic Access Policy, which enables the sharing of Government data at no,
or minimal, cost to users. Government data from all agencies will be progressively supplied in a machine-readable format that will
minimise access costs and maximise use and re-use.
DEPI released more than 800 spatial datasets in 2013-14. This includes the Vicmap suite of products such as Vicmap Address,
Vicmap Property and Vicmap Transport; Ecological Vegetation Classes; Coastal Inundation Datasets; Conservation Areas and Land
Use.
Data can be downloaded in various formats, and a page has been created for developers to source the relevant code for incorporating
the data via geo-referenced map images into web browsers on top of the Vicmap API, Google maps or Bing maps.
National Competition Policy
In 1996, the federal, state and territory governments agreed to review and, where appropriate, reform all existing legislative
restrictions on competition. Under the National Competition Policy, the guiding legislative principle is that legislation, including future
legislative proposals, should not restrict competition unless it can be demonstrated that:

the benefits of the restriction to the community as a whole outweigh the costs

the objectives of the legislation can only be achieved by restricting competition.
The department has reviewed all legislation under its control, and continues to apply the competition assessment guidelines in the
Victorian Guide to Regulation to all new legislative proposals.
Competitive neutrality requires government businesses to ensure where services compete – or potentially compete – with the private
sector, any advantage arising solely from their government ownership be removed if they are not in the public interest. Government
businesses are required to cost and price these services as if they were privately owned and thus be fully cost reflective. Competitive
neutrality policy provides government businesses with a tool to enhance decisions on resource allocation. This policy does not
override other policy objectives of government and focuses on efficiency in the provision of service. The department will work to
ensure that the requirements on competitive neutrality are fulfilled.
Water Resource Assessment Program
Under Section 22 (1) of the Water Act 1989 (the Act), the Minister for Water is required to ensure that a continuous program of
assessment of the water resources of the state is undertaken. Under Section 22 (2), the water resources assessment program must
provide for the collection, collation, analysis and publication of information about:
(a)
the availability of water, including surface water and groundwater
(ab)
use of one water source as a substitute for another water source
(ac)
the environmental water reserve
(b)
the disposal of wastewater (including trade waste, sewage and saline water)
(c)
the use and re-use of water resources
(d)
floodwaters
(e)
drainage and waterway management
(f)
water quality (including salinity)
(g)
in-stream uses of water
(ga)
current and historic levels of allocation and use of surface water and groundwater
(gb)
current and historic condition of waterways and aquifers
(h) anything else that the Minister decides is appropriate.
Section 26 of the Act requires DEPI to report annually on these areas. The information below summarises the processes in place to
collect and provide information about these areas.
a) Availability of water
Surface water
The state’s surface water resources assessment network includes 837 sites that were monitored in 2013-14 through four regional
Department of Environment and Primary Industries 2013 – 14 Annual Report
67
water monitoring partnerships. These partnerships comprise 38 public and private organisations that procure their monitoring
requirements under this program. The partnerships include state government departments, water corporations, catchment
management authorities, local shires and councils, the Bureau of Meteorology and the Murray-Darling Basin Authority.
Surface water monitoring services are procured by DEPI on behalf of the regional water monitoring partnerships to ensure efficiency
and statewide consistency in data quality.
The program delivers legislative obligations under Section 22 of the Act and Section 126 of the Commonwealth Water Act 2007 and
contributes to a range of business needs across the partnership including:

operational decision making

compliance reporting

flood warning

statewide policy development for water resources

river health management

reporting for the monthly water report, the annual water quality reports and the longer term water quality trend reports.
Summary reports on historical longer term trends of surface water quality and the current status water quantity are available on the
Water Measurement Information System and the Monthly Water Report on the departmental website.
Water Measurement Information System
A project to replace the Victorian Water Resources Data Warehouse has been completed with the release of the new Water
Measurement Information System (WMIS) in November 2013. Data from the Data Warehouse was migrated to WMIS as part of this
project. The new WMIS is based on industry standard software Hydstra, and will increase the access and useability of groundwater
and surface water information.
Groundwater
Groundwater occurrence varies in size and volume throughout Victoria. It lies beneath all parts of the state but is not always useable.
Its potential for use is generally dependent on salinity and how much water can be extracted (aquifer yield). The location of aquifers is
independent of surface water basins, with some aquifers extending beneath several.
While groundwater can be a reliable source of water, its overuse can result in failure of supply. Groundwater has a value when it is
extracted for a range of uses including irrigation, commercial, urban or stock watering, and when left in situ where it may support
groundwater dependent ecosystems, including contributing to base flow in streams and wetlands or supporting a variety of terrestrial
flora.
Effective management of groundwater resources to meet current and future urban, rural and ecological needs requires knowledge of
how much groundwater there is and where, who uses it and how this changes over time.
To manage groundwater use sustainably it is important to ensure that groundwater levels are sufficient to maintain flows in bores,
streams and to enable access by ecosystems. Data on groundwater levels and metered extraction are used by water corporations for
sustainable water use planning.
This program of monitoring, review and adaptive management is achieved through a series of groundwater management instruments.
These include statutory groundwater management plans, local management plans, groundwater strategies, single source urban
water bulk entitlements and licences. In all cases the management instruments are developed in consultation with local stakeholders
including customer groups, environmental representatives and relevant government departments.
The plans require the collection and review of data on usage and levels and provide for caps on allocation, provisions for trading,
carryover and restrictions to meet the sustainable resource objectives of the plan.
As at March 2014, 85 per cent of the states licensed entitlement is within areas covered by a groundwater management plan, bulk
entitlement or large scale licence.
The plans are reported on annually. Compliance with the objectives and requirements of the plans is very high.
Work is continuing to develop management plans for the remaining 15 per cent of the state’s licence entitlement. These entitlements
are located in areas where groundwater is either saline, low yielding or land is not available (public land, state/national parks etc). This
limits its potential use.
Nearly all the useable groundwater resources are under the plans and are capped and fully allocated. New groundwater users
wishing to obtain an entitlement are obliged to trade. There is potentially significant opportunity to trade as groundwater use is low
compared to entitlement.
Victoria monitors around 2,500 bores on a quarterly basis to understand the groundwater level trends. Additionally, rural water
corporations conduct monthly monitoring of about 500 bores. Accurate monitoring data is important and helps with the resolution of
management issues, questions or disputes raised by groundwater users. A review of the monitoring network is being undertaken
through 2014 to ensure monitoring requirements remain relevant and that the required baseline monitoring of aquifer behaviour
catchment wide is both efficient and effective.
All groundwater data, including data collected during 2013-14, is available via the Water Measurement Information System
(data.water.vic.gov.au/monitoring.htm). Summary reports on historical longer term trends in groundwater levels across the state are
Department of Environment and Primary Industries 2013 – 14 Annual Report
68
available on the departmental website. Information on groundwater use and trends is also provided in the annual Victorian Water
Accounts.
ab) Use of one water source as a substitute for another water source
Under Ministerial Reporting Direction 03, water corporations are required to provide information in their annual reports on how they
are promoting the integrated and sustainable use of water resources in their region, consistent with
whole-of-water-cycle-management approach articulated in Living Victoria and Melbourne’s Water Future. This includes any projects,
particularly those funded through the Living Victoria Fund, undertaken to meet targets set in the entity’s corporate plan to deliver water
recycling, water conservation and sustainable and resilient water services systems. Water corporations’ annual reports are tabled in
Parliament.
ac) Environmental water reserve
The Environmental Water Reserve (EWR) is the legal term for water set aside for the environment under the Water Act 1989. The
EWR comprises water defined by:

entitlements for the environment that are called either environmental bulk entitlements or environmental entitlements

the operation of caps on licensed consumptive water use (such as sustainable diversion limits or permissible consumptive
volumes) and conditions on consumptive bulk entitlements, licences and permits, and as set out in management plans.
The majority of the EWR is set aside through the latter.
In regulated systems, the EWR is established through environmental entitlements, environmental bulk entitlements and various
operational conditions on consumptive water use. The environmental entitlements and environmental bulk entitlements refer to water
usually held in and released from storages. They are held by the Victorian Environmental Water Holder (VEWH), the independent
statutory body responsible for making decisions on the most efficient and effective use of Victoria’s environmental water entitlements.
Environmental watering decisions by the VEWH are guided by seasonal watering proposals prepared by each of the catchment
management authorities and Melbourne Water. VEWH weighs the regional priorities identified in these proposals to develop an
annual seasonal watering plan for the state. The plan specifies the objectives for the use of the water, planned storage releases and
monitoring requirements. The operation of the VEWH is overseen by the Minister for Environment and Climate Change. Further
details about VEWH can be found on its website (www.vewh.vic.gov.au).
The Water Holdings held by VEWH increased during 2013-14 through the granting of one new environmental entitlement. The Blue
Rock Environmental Entitlement 2013 (granted on 1 July 2013) provides VEWH a share of inflows into Blue Rock Reservoir in the
Latrobe system. Amendments were also made to six entitlements held by VEWH. At 30 June 2014, the VEWH Water Holdings
comprised 22 entitlements and a number of water shares, totalling a long-term average of 649,000 ML, an increase of 18,200 ML from
the 30 June 2013 total of 630,800 ML.
In 2013-14, many systems across Victoria experienced average to wet conditions early in the water year followed by drier conditions
towards the end of the year. Priority watering actions were managed to meet these changing conditions and some significant
environmental outcomes were achieved. The outcomes included spawning of the Australian grayling in the Macalistar River and
Macquarie perch in the Yarra River, widespread flowering of the endangered Wimmera bottlebrush on the Glenelg River, and the
growth and flowering of moira grass as well as a significant ibis breeding event in Barmah Forest. The drier conditions also enabled
many wetlands and floodplains to undergo a drying phase, which is a critical component of environmental water management in
ephemeral systems.
During 2013-14, environmental water was managed to meet environmental objectives at 101 Index of Stream Condition river reaches
and 78 wetlands including:

Thomson, Macalister and Latrobe rivers and the lower Latrobe Wetlands in Gippsland

Yarra, Tarago, Werribee and Moorabool rivers and Jacksons Creek in central Victoria

Wimmera, McKenzie and Glenelg rivers in western Victoria

Thirty-seven wetlands in the Wimmera-Mallee wetland complex

Corangamite wetlands (Hospital Swamps and Reedy Lake)

the following systems in northern Victoria
 Goulburn, Campaspe and Loddon rivers and Broken and Gunbower creeks
 Living Murray Icon sites – including Hattah Lakes, Barmah Forest, Gunbower Forest and Mulcra Island
 Twenty-three northern wetlands and floodplains.
Full details of 2013-14 environmental watering activities will be provided in the annual watering booklet developed by the VEWH. This
will be available on the VEWH website (www.vewh.vic.gov.au).
In unregulated rivers, the EWR is set aside either through conditions on licences and bulk entitlements, caps or through statutory water
management plans and non-statutory local management plans. Water corporations are responsible for ensuring that these conditions for
the EWR are met.
During 2013-14, the Victorian Government implemented improved environmental flows and management conditions in priority, flow
stressed unregulated and regulated rivers and wetlands by:
Department of Environment and Primary Industries 2013 – 14 Annual Report
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
completing construction works at Hattah Lakes and Gunbower Forest, and commissioning works at Mulcra Island, for delivery of
environmental water under the Living Murray program

finalising 10 environmental water management plans for wetlands in northern Victoria

completing a statewide analysis of high use and high priority rivers to determine groundwater contribution to baseflows and risks
to environmental values of combined groundwater and surface water use

starting investigations to implement Chapter 8 of the Murray-Darling Basin Plan (Basin Plan Environmental Watering Plan)

completing five-yearly reviews of six streamflow management plans

finalising investigations with North East Water into co-investment options to improve environmental flows in the Ovens River.
b) Disposal of wastewater (including trade waste, sewage and saline water)
All water corporations (urban) are required to report on wastewater disposals, as part of the report of operations in their annual
reports. The performance report includes indicators related to financial, service delivery and environmental performance. Specific
wastewater indicators are prepared for reliability of collection services, quality of disposal and management. The annual reports are
tabled in parliament.
c) Use and re-use of water resources
See section ab) above, ‘The use of one water source as a substitute for another water source’. All water corporations (urban) are
required to report on total use of alternative water sources such as recycled wastewater and stormwater reuse as part of the report of
operations in their annual reports. The performance report includes indicators related to environmental performance for effluent
re-use and greenhouse gas emissions. The annual reports are tabled in parliament.
d) Floodwaters
DEPI is the lead agency for coordination of floodplain management in Victoria. One of its primary functions is to help reduce flood
risks and reduce the costs of damages to the community. DEPI assists catchment management authorities and municipalities to
improve their knowledge of areas of flood risk and ensure that new development is compatible with the flood risk.
Regional floodplain management strategies developed by each catchment management authority provide a framework through which
high priority flood studies are carried out and floodplain management strategies implemented. These are generally funded using a
combination of local, state and federal funding. DEPI contributes to the funding, provides input where appropriate, helps assess
funding bids and monitors progress.
Flooding occurred in Melbourne and Gippsland in June 2013. DEPI provided support staff, as required, to SES-led operations at the
state and incident level.
In November 2012, the Victorian Government released its response to 31 recommendations related to DEPI’s portfolio contained in the
Review of 2010-11 Flood Warnings and Response, by Neil Comrie. The review was released in December 2011. A
multi-departmental committee has been established to oversee the implementation of the government’s response to the
recommendations.
DEPI continues to work collaboratively with relevant agencies to implement the government’s response to the 2011 Victorian Floods
Review. This involves improving flood information in three key areas:

flood gauging improvements: upgrades to existing river heights gauges and installation of new rainfall and river height gauges

flood mapping and risk assessments: mapping floods for use in emergency response and land use planning, and the identification
of mitigation measures

flood intelligence platform: a computer-based platform that integrates flood observations and flood mapping with potential impacts
before, during and after a flood event. This platform will enable better agency cooperation and provide agencies with locally
specific flood advice.
Upgrades to river heights gauges have focused on the regions affected by the 2011 floods, with more than 160 gauge upgrades
completed or underway. Forty more gauge upgrades are planned. Extensive consultation is underway to identify and scope the key
requirements for the flood intelligence platform.
Funding has been provided for 22 new and seven ongoing mitigation projects in 2013-14 through the Victorian Government’s
FloodZoom initiative and the Australian Government’s Natural Disaster Resilience Grants Scheme. Projects receiving funding focus
on flood mapping and risk assessments, flood education, flood warning system improvements and construction of flood mitigation
works. Applications for 2014-15 will be considered jointly with the Office of the Emergency Services Commissioner.
The government released its response to the Environment and Natural Resources Committee’s (ENRC) Parliamentary Inquiry into
flood mitigation infrastructure in Victoria in October 2013.
The government also released its response to the ENRC Parliamentary Inquiry into rural drainage in Victoria in January 2014.
A new draft Victorian Flood Management Strategy was released in June 2014 for public consultation. The draft was informed by the
implementation of the government’s responses to the Victorian Floods Review and the ENRC Inquiries. The final strategy will set out
the proposed policy framework for managing floodplains in Victoria over the next 10 years.
DEPI is working with relevant councils on four local coastal hazard assessments, in priority coastal areas to help them plan for
potential flooding associated with sea level rise and storm surges.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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e) Drainage and waterway management
Waterway management
The implementation of waterway management actions is the responsibility of catchment management authorities across Victoria and
Melbourne Water in the Port Phillip and Western Port region under the Water Act 1989. In 2013-14, the Victorian Government
invested funding into improving the health of Victoria’s waterways. As the caretakers of river health, catchment management
authorities invest these funds according to agreed works programs and at the end of the year report their achievements. The delivery
of projects and services through these agreed works programs is tracked and reported annually through performance reports. These
reports are consolidated to demonstrate the statewide effort to maintain and improve the health of Victoria’s waterways.
Drainage
The Victorian Government also released its response to the ENRC Parliamentary Inquiry into rural drainage in Victoria in January
2014.
f) Water quality (including salinity)
Surface water quality monitoring program
Water quality monitoring was conducted at 451 partnership sites across the state in 2013-14. A range of water quality parameters are
either continuously monitored or sampled at regular intervals from these sites, and cover a range of physical, chemical, nutrient,
metal, anion, cation, organic load and algal analyses. Data from the monitoring network is made publicly available through the Water
Measurement Information System.
g) In-stream uses of water
Stream use
Refer to the ‘Environmental water reserve’ section above for details regarding the in-stream use of water.
ga) Current and historic levels of allocation and use of surface water and groundwater
DEPI produces the Victorian Water Accounts, which provide an annual overview of water availability and use across Victoria at bulk
supply level, including a detailed water account for each of Victoria’s 29 river basins. The Accounts generally consist of two parts. Part
1 provides a statewide overview that summarises water availability. It includes information on rainfall, streamflow and storage levels,
water taken for consumptive purposes and management of water for the environment. Part 2 contains the basin water accounts for
each of Victoria’s 29 river basins and the distribution system water accounts for each of the 19 water corporations in Victoria. The
basin accounts include quantitative data on available water and water use as well as concise commentary to give context to the data.
The distribution system water accounts comprise water balances for urban, rural and wholesale water distribution systems. Because
distribution system boundaries are not necessarily aligned with river basin boundaries, the distribution system water balances are
reported by the Northern, Gippsland, Central and Western regions.
The Accounts can be found on the Victorian Water Register website. The 2013-14 Accounts are due to be completed in the first half
of 2015.
Surface water
The availability of surface water was relatively high in 2013-14 with seasonal allocations reaching 100 per cent of high-reliability water
shares in all of Victoria’s regulated systems. In addition there were seasonal allocations made to low-reliability water shares (LRWS) in
the following regulated systems: the Broken and Bullarook systems both reached 100 per cent of LRWS, Campaspe reached 46 per
cent of LRWS, Werribee reached 15 per cent of LRWS, and the Thomson/Macalister system reached five per cent of LRWS.
Surface water use in Victoria’s regulated systems (systems that have water shares) totalled 2,700 gigalitres (GL) in 2013-14. Of this the
majority, approximately 73 per cent, was used for irrigation, while about 3 per cent was used by urban customers and about 24 per cent
was used by the environment.
Groundwater
Groundwater is extracted for a variety of purposes, including town water supply, rural domestic consumption, stock watering, irrigation
and industry. Areas of significant demand are classified as water supply protection areas (WSPAs) or groundwater management
areas (GMAs).
Increased demands for access to groundwater have come from a range of sources including exploration and mining. New earth
resource technologies are also looking to groundwater to support their extraction processes. In order to manage groundwater
effectively across the state, Victoria is implementing a revised groundwater management framework. The framework includes
describing groundwater management at a catchment scale and updated guidance on the approach to sharing and managing
Victoria’s groundwater resource.
gb) Current and historic condition of waterways and aquifers
Assessment of river, wetland and estuary condition
Waterway condition in Victoria is measured using a number of integrated monitoring tools known as the Index of Stream Condition
(ISC) and the Index of Wetland Condition (IWC). These assessments are carried out every eight years and they measure statewide
condition and the long-term effectiveness of the river health rehabilitation programs. The results of the third ISC assessment was released
during 2013 and are available at ics.water.vic.gov.au. The results from the first statewide wetland assessment that looked at 827 wetlands
is also available at ics.water.vic.gov.au.
h) Victorian water accounts
The Victorian Water Accounts (VWA) is an annual statewide summary of Victoria’s water resources. The Victorian Water Accounts
Department of Environment and Primary Industries 2013 – 14 Annual Report
71
2011–2012, the ninth annual report to provide a summary of water availability, water allocation and use at bulk water supply level, was
publicly released in January 2014. Including a statewide overview and basin water accounts for the 29 Victorian river basins, the
accounts form a publicly available record of surface water and groundwater resources for the water year 1 July 2011 to 30 June 2012.
Published in hard copy and online, the VWA documents water availability and provides assessments of rainfall, streamflow and
groundwater levels, as well as water storage information. Information regarding water taken for consumptive use and water set aside
for environmental purposes is provided in the context of the Victorian water allocation framework. The framework sets out
entitlements to water. Information on re-use of treated wastewater is also reported in the accounts.
The VWA sources key data from the state’s surface water and groundwater monitoring networks, and draws on information from
water businesses, DEPI, the Essential Services Commission, the Murray-Darling Basin Authority and catchment management
authorities.
The 2011-12 VWA complements the work being undertaken within Victoria and nationally to improve on water accounting and
reporting.
Sustainable Water Strategies
Sustainable Water Strategies (SWS) set out long-term plans to secure each region’s water future. The strategies identify threats to
water availability in the region and identify policies and actions to help water users, water corporations and catchment management
authorities manage and respond to those threats over the next 50 years.
Four regional sustainable water strategies that cover the state were produced between 2006 and 2011. The first strategies completed
were the Central Region SWS in 2006 and the Northern Region SWS in 2009. The Gippsland Region SWS and the Western Region
SWS were completed in November 2011.
Previous Department of Sustainability and Environment annual reports have documented progress in implementing the strategies, as
required under section 22J of the Water Act 1989. Where appropriate, actions or policies from these SWSs that are ongoing or longer
term in nature will be built into the work programs of the government priorities mentioned below or other relevant government
initiatives.
A review of Victoria’s water legislation has considered the future role of sustainable water strategies in light of recent policy
developments and the finalisation of the Basin Plan. Following extensive community consultation, the Water Bill 2014 was introduced
to Parliament in June 2014, which proposed changes to regional water planning mechanisms. The Water Bill 2014 proposes to
replace the sustainable water strategy process with a two-step, staged process whereby regional resource assessments will be
conducted periodically, and strategic reviews will be conducted if needed to respond to identified risks associated with water
resources. Further information on these changes can be found at the Living Victoria website (Long Term Water Planning Fact Sheet).
Western Region and Gippsland Region Sustainable Water Strategies
The Western Region covers agricultural and urban centres including Colac, Port Campbell, Horsham, Stawell, Ararat, Hamilton,
Warrnambool and Portland. River basins include the Otway Coast, Corangamite, Hopkins, Glenelg, Portland, Millicent, Wimmera,
Avoca and the southern half of the Mallee.
The Gippsland Region spans the area south of the Great Dividing Range in Victoria from the Latrobe River catchment and the
Strzelecki Ranges, to the New South Wales border in the east. The larger urban centres within the region include Warragul,
Traralgon, Wonthaggi, Sale and Bairnsdale.
Many of the actions and policies in the Gippsland Region Sustainable Water Strategy (GRSWS) and the Western Region Sustainable
Water Strategy (WRSWS) were due for completion by the end of 2012 and have been successfully implemented. Other actions are
still to be completed or are of an ongoing nature. Some actions that were implemented over 2013-14 are described below.
Improved approach to managing groundwater
During 2013-14 Victoria’s new groundwater management framework has been implemented. This has involved:

a strategic review of the groundwater monitoring network leading to a refurbishment and construction program for bores needed in
future while also decommissioning bores that pose a risk to the resource (GRSWS Action 3.8, WRSWS Action 4.9)

implementing groundwater catchments to bring all groundwater under the Victorian management framework and that should lead
to improved access for future users (GRSWS Action 3.15, WRSWS Action 4.1)

changes to management areas to better align with groundwater catchments and preparation of management plans (see below).
Blue Rock drought reserve and unallocated water
The drought reserve in Blue Rock Reservoir was established in early July 2013 to provide entitlement holders on the Latrobe River
system with access to additional water supplies in times of drought. DEPI has continued to work with entitlement holders in the
Latrobe River system this year to develop detailed Storage Management Rules in order to implement the Latrobe Reserve in
accordance with the rules and principles established in the entitlements and the Gippsland SWS. The department finalised the sale of
the remaining 3,000 ML of unallocated water in Blue Rock to Gippsland Water in June 2014.
Local management plans
Groundwater local management plans were developed across Victoria with a small number in Northern Victoria to be completed in
2014-15 (GRSWS Action 3.4 and WRSWS Action 3.5). Local management plans will replace statutory management plans in areas
such as Nullawarre, Yangery and the Shepparton Irrigation Region. Existing management arrangements for most surface water
Department of Environment and Primary Industries 2013 – 14 Annual Report
72
systems have been documented in local management plans. The Minister for Water approved guidelines for Local Management
Plans in 2014 which are important for subsequent reviews of completed plans. Local management plans are accessible on rural water
corporation websites.
Harvesting of high flows
The GRSWS and WRSWS proposed actions regarding harvesting high flows outside the winter-fill period (GRSWS Action 4.3,
WRSWS Action 3.10). Due to better streamflow over the past few years, and a lack of demand for new water, there has been less of
an imperative to implement these actions immediately.
During 2013-14, the department continued work with the aim of having a draft policy framework that rural water corporations can trial
in a number of systems in 2014-15. The results of the trials will help inform the final policy and subsequent amendments to the policies
for Managing Take and Use Licences.
Water Bill 2014
In June 2014 the Minister for Water introduced the Water Bill 2014 to Parliament. The Water Bill 2014 was developed with extensive
public consultation and will consolidate Victoria’s Water Act 1989 and the Water Industry Act 1994 into a single piece of legislation.
For efficiency, sustainable water strategy actions and policies that required amendments to the Water Act 1989 were addressed in the
development of the Water Bill 2014. These included:

reviewing the process for declaring water supply protection areas and developing statutory management plans (GRSWS Action
3.5, WRSWS Action 3.6)

amending the Water Act 1989 to clarify rights to alternative water sources, i.e. stormwater in local government drains (GRSWS
Action 4.5b, WRSWS Action 3.13b)

providing the legislative framework to manage the water impacts of land use change (GRSWS Action 3.10, WRSWS Action 5.3)

providing clarity for users around the entitlements and allocation framework (GRSWS Action 3.14, WRSWS Action 3.4)

enabling take and use licences to be issued for up to 20 years provided the benefits and risks have been assessed (GRSWS
Action 3.6, WRSWS Action 3.1)

improving information about stock and domestic use (GRSWS Actions 3.12 and 3.13, WRSWS Actions 3.2 and 3.3)

streamlining the approval of works licences to construct storages (GRSWS Action 4.4, WRSWS Action 3.9)

consistent groundwater licensing requirements for new quarries and mines (GRSWS Action 3.17).
The Northern Region and Central Region Sustainable Water Strategies
Most key actions in the Northern Region and Central Region sustainable water strategies have now been implemented or have been
superseded by current Government priority or initiatives. Implementation of any outstanding actions proposed in these strategies
have now been absorbed into current government programs such as the compliance with the final Murray-Darling Basin Plan, the
recently completed comprehensive review of water legislation, the Victorian Waterway Management Strategy, the Government’s
Living Victoria policy and the Melbourne Water Future strategy.
The Northern Region SWS was released in December 2009 and the majority of actions have been completed or are of an ongoing
nature. A number of actions are closely linked to the Murray-Darling Basin Plan, which was finalised in December 2012.
Implementation of these actions are now absorbed into Victoria’s program for demonstrating compliance with the Murray-Darling
Basin Plan or general departmental / agency work streams.
The Central Region SWS was released in 2006 and the majority of actions have been completed or are of an ongoing nature. Since
the release of the Central Region SWS, there have been some major transformations in water policy and water management within
the central region.
In December 2013 the Government released Melbourne’s Water Future, which articulates a new approach to whole-of-water-cycle
management planning. This builds on the Central Region SWS and other water cycle planning initiatives and will deliver, over time,
water cycle planning frameworks at metropolitan, subregional and local scales.
A Metropolitan Whole-of-Water-Cycle Planning Framework is being prepared and development of subregional water cycle plans for
inner, north and west subregions of Melbourne have commenced.
In March 2014 the government announced savings of $1.2 billion on the Victorian Desalination Project contract costs. These savings
help to reduce the impact of the desalination plant on Melbourne water bills. The savings were achieved through government
negotiating the strategic refinancing of the project contractor’s debt, withholding payments due to late completion and reduced costs
predominantly from successful negotiation of the project’s electricity operation contract. Due to reasonable rainfall no desalinated
water has been ordered. Commissioning was completed in December 2012. The plant is in long-term preservation mode.
Where appropriate, actions or policies from these SWSs that are ongoing or longer term in nature will be built into the work programs
of the government priorities mentioned above or other relevant government initiatives.
Additional information available on request
In compliance with the requirements of the Standing Directions of the Minister for Finance, details in respect of the items listed below
have been retained by the department and are available to the relevant ministers, Members of Parliament and the public on request
(subject to freedom of information requirements, if applicable).
Department of Environment and Primary Industries 2013 – 14 Annual Report
73
(a) A statement that declarations of pecuniary interests have been duly completed by all relevant officers of the department.
(b) Details of shares held by senior officers as nominee or held beneficially in a statutory authority or subsidiary.
(c) Details of publications produced by the department about the activities of the department and where they can be obtained.
(d) Details of changes in prices, fees, charges, rates and levies charged by the department for its services, including services that are
administered.
(e) Details of any major external reviews carried out in respect of the operation of the department.
(f) Details of any other research and development activities undertaken by the department that are not otherwise covered either in the
report of operations or in a document which contains the financial statement and report of operations.
(g) Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit.
(h) Details of major promotional, public relations and marketing activities undertaken by the department to develop community
awareness of the services provided by the department.
(i) Details of assessments and measures undertaken to improve the occupational health and safety of employees, not otherwise
detailed in the report of operations
(j) A general statement on industrial relations within the department and details of time lost through industrial accidents and disputes,
which are not otherwise detailed in the report of operations.
(k) A list of major committees sponsored by the department, the purposes of each committee and the extent to which the purposes
have been achieved.
(l) Details of all consultancies and contractors including:
consultants/contractors engaged
services provided
expenditure committed to for each engagement
(m)
Departmental objective indicator report - Farm Services.
To ensure the department is meeting its accountability and compliance requirements, some of this additional information has been
included in the Annual Report where relevant.
The information is available on request from:
Carolyn Jackson
Acting Executive Director, Finance and Planning
Department of Environment and Primary Industries
8 Nicholson Street
East Melbourne Victoria 3002
Telephone: (03) 9637 8696
Email: carolyn.jackson@depi.vic.gov.au
Department of Environment and Primary Industries 2013 – 14 Annual Report
74
Financial Statements 30 June 2014
Contents
Page
Accountable Officer’s and Chief Finance and Accounting Officer’s declaration
71
Auditor-General’s report
72
Comprehensive operating statement
74
Balance sheet
75
Statement of changes in equity
76
Cash flow statement
77
Notes to the financial statements
78
These financial statements cover the Department of Environment and Primary Industries as an individual entity and are presented in
the Australian currency.
The Department of Environment and Primary Industries is a Government department of the State of Victoria. Its principal address is:
Department of Environment and Primary Industries
8 Nicholson Street
East Melbourne Victoria 3002
A description of the nature of the department’s operations and its principal activities is included in the Report of Operations.
These financial statements were authorised for issue by the Secretary – Mr Adam Fennessy and the Acting Executive Director
Finance and Planning – Ms Carolyn Jackson on 11 September 2014.
For queries in relation to our financial reporting please call 13 61 86, or visit our website (www.depi.vic.gov.au).
Department of Environment and Primary Industries 2013 – 14 Annual Report
75
Accountable Officer’s and Chief Finance and Accounting Officer’s declaration
The attached financial statements for the Department of Environment and Primary Industries have been prepared in accordance with
Standing Directions 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting
Standards including Interpretations, and other mandatory professional reporting requirements.
We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of
changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30
June 2014 and financial position of the department at 30 June 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 11 September 2014.
Adam Fennessy
Carolyn Jackson
Secretary
Department of Environment and Primary Industries
Melbourne
11 September 2014
Acting Executive Director Finance and Planning
Department of Environment and Primary Industries
Melbourne
11 September 2014
Auditor General’s report
Scan of the Victorian Auditor – General Office (VAGO) Independent Auditor’s Report, signed by Dr Peter Frost, Acting
Auditor-General, 15 September 2014.
Department of Environment and Primary Industries 2013 – 14 Annual Report
76
Comprehensive operating statement for the financial year ended 30 June 2014
Notes
2014
$’000
2013
$’000
Income from transactions
Output appropriations
1(g), 27
1,396,229
1,030,695
Special appropriations
1(g), 27
2,040
14,545
Interest
1(g), 4(a)
5,112
2,313
Sale of goods and services
1(g), 4(b)
59,196
42,534
Metropolitan Parks Improvement Rate
1(g), 4(c)
150,983
136,763
Grants
1(g), 4(d)
46,087
35,555
Fair value of assets received free of charge or for nominal consideration
1(g), 4(e)
0
5,000
Other income
1(g), 4(f)
6,166
11,442
1,665,813
1,278,847
Total income from transactions
Expenses from transactions
Employee expenses
1(h), 5(a)
(377,593)
(276,238)
Depreciation
1(h), 5(b)
(69,481)
(46,606)
Interest expense
1(h), 5(c)
(23,837)
(1,869)
Grants and other transfers
1(h), 5(d)
(460,117)
(494,101)
Capital asset charge
1(h)
(112,310)
(75,659)
Supplies and services
1(h), 5(e)
(529,975)
(362,398)
Other operating expenses
1(h), 5(f)
(7,458)
(7,809)
(1,580,771)
(1,264,680)
85,042
14,167
Total expenses from transactions
Net result from transactions (net operating balance)
Other economic flows included in net result
Net gain on non–financial assets
1(i), 6(a)
(3,787)
220,642
Net gain/(loss) on financial instruments
1(i), 6(b)
(21)
(39)
Share of net profits/(losses) of associates, excluding dividends
1(i), 6(c)
0
4,019
Other gains/(losses) from other economic flows
1(i), 6(d)
(1,058)
5,031
Total other economic flows included in net result
(4,866)
229,653
Net result
80,176
243,820
6,157
4,606
6,157
4,606
86,333
248,426
Other economic flows – other comprehensive income
Items that will not be classified to net result
Changes in physical asset revaluation surplus
Total other economic flows – other comprehensive income
Comprehensive result
26
The comprehensive operating statement should be read in conjunction with the notes to the financial statements.
Department of Environment and Primary Industries 2013 – 14 Annual Report
77
Balance sheet as at 30 June 2014
Notes
2014
$’000
Restated
2013 (i)
$’000
As at 1 July
2012 (i)
$’000
Assets
Financial assets
Cash and deposits
1(l), 25(a)
317,829
249,976
258,218
Receivables
1(l), 8
266,768
204,618
176,055
Investments and other financial assets
1(l), 9
26,813
20,143
0
Investments accounted for using the equity method
1(l), 10
0
14,412
9,212
611,410
489,149
443,485
Total financial assets
Non-financial assets
Inventories
1(m), 12
15,015
12,875
13,218
Non-financial physical assets classified as held for sale
1(m), 13
770
574
2,543
Property, plant and equipment
1(m), 14
8,040,439
7,317,567
7,103,427
Biological assets
1(m), 15
1,845
0
0
Intangible assets
1(m), 16
55,803
11,594
7,315
Prepayments
1(m)
82,623
9,813
10,022
Total non-financial assets
8,196,495
7,352,423
7,136,525
Total assets
8,807,905
7,841,572
7,580,010
Liabilities
Payables
1(n), 17
220,729
144,617
114,879
Borrowings
1(n), 18
287,300
27,535
30,549
Unearned income
1(n)
4,860
270
113
8
0
0
159,205
122,735
137,701
672,102
295,157
283,242
8,135,803
7,546,415
7,296,768
90,619
10,443
(233,377)
Deposits repayable
Provisions
1(n), 19
Total liabilities
Net assets
Equity
Accumulated surplus/(deficit)
Physical asset revaluation surplus
26
5,651,225
5,645,068
5,640,462
Contributed capital
1(p)
2,393,959
1,890,904
1,889,683
8,135,803
7,546,415
7,296,768
Net worth
Commitments for expenditure
1(q), 22
Contingent assets and contingent liabilities
1(r), 23
The balance sheet should be read in conjunction with the notes to the financial statements.
Note: (i)
Refer to Note 35. Correction of prior year errors for details.
Department of Environment and Primary Industries 2013 – 14 Annual Report
78
Statement of changes in equity for the financial year ended 30 June 2014
Physical
asset
revaluation
surplus
$’000
Accumulated
surplus/
(deficit)
$’000
Contributions
by owner
$’000
Total
$’000
5,645,649
(245,991)
1,909,146
7,308,804
(5,187)
12,614
(19,463)
(12,036)
5,640,462
(233,377)
1,889,683
7,296,768
0
243,820
0
243,820
4,606
0
0
4,606
0
0
114,199
114,199
Capital contributions of non-financial assets
0
0
(31,358)
(31,358)
Capital contributions transferred to portfolio
entities
0
0
(81,620)
(81,620)
5,645,068
10,443
1,890,904
7,546,415
0
80,176
0
80,176
6,157
0
0
6,157
0
0
148,139
148,139
0
0
(40,343)
(40,343)
Notes
Balance at 1 July 2012
Net effect of correction of errors (i)
35
Restated balance at 1 July 2012 (i)
Net result for the year (i)
Other comprehensive income for the year (i)
26
Capital appropriations
27(c)
Restated balance at 30 June 2013
Net result for the year
Other comprehensive income for the year
26
Capital appropriations
27(c)
Capital contributions of non-financial assets
Administrative restructure – net assets received
34
0
0
538,525
538,525
Administrative restructure – net assets
transferred
34
0
0
(31,149)
(31,149)
0
0
(112,117)
(112,117)
5,651,225
90,619
2,393,959
8,135,803
Net capital contributions transferred to portfolio
entities
Balance at 30 June 2014
The statement of changes in equity should be read in conjunction with the notes to the financial statements.
Note:
(i) Refer to Note 35. Correction of prior year errors for details.
Department of Environment and Primary Industries 2013 – 14 Annual Report
79
Cash flow statement for the financial year ended 30 June 2014
2014
$’000
2013
$’000
1,461,117
1,058,100
235,816
191,840
68,570
48,721
5,169
2,467
1,770,672
1,301,128
(495,306)
(494,232)
(1,050,205)
(683,112)
(112,310)
(75,659)
(23,855)
(1,870)
(1,681,676)
(1,254,873)
88,996
46,255
Payments for investments
(6,670)
(20,143)
Payments to joint venture
(2,916)
0
(109,895)
(68,708)
27,373
17,376
(92,108)
(71,475)
148,139
114,199
(112,117)
(81,620)
(28,604)
(12,117)
(4,600)
(3,484)
68,147
0
Net cash flows from/(used in) financing activities
70,965
16,978
Net increase/(decrease) in cash and cash equivalents
67,853
(8,242)
249,976
258,218
317,829
249,976
Notes
Cash flows from operating activities
Receipts
Receipts from government
Receipts from other entities
Goods and Services Tax recovered from the ATO (i)
Interest received
Total receipts
Payments
Payments of grants and other transfers
Payments to suppliers and employees
Capital asset charge payments
Interest and other costs of finance paid
Total payments
Net cash flows from operating activities
25(c)
Cash flows used in investing activities
Purchases of non-financial assets
Sales of non-financial assets
Net cash flows used in investing activities
Cash flows from/(used in) financing activities
Owners contributions by State Government
Payments of capital contributions
Repayments of finance leases
Repayments of advances
Cash received from activity transferred in
34
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
25(a)
Non-cash financing and investing activities are disclosed in Note 25(b).
The cash flow statement should be read in conjunction with the accompanying notes.
Note:(i) Goods and Services Tax recovered from the ATO is presented on a net basis.
Department of Environment and Primary Industries 2013 – 14 Annual Report
80
Notes to the financial statements for the year ended 30 June 2014
Contents
Page
Note 1. Summary of significant accounting policies
79
Note 2. Departmental (controlled) outputs
95
Note 3. Administered (non-controlled) items
99
Note 4. Income from transactions
110
Note 5. Expenses from transactions
111
Note 6. Other economic flows included in net result
113
Note 7. Revision of accounting estimates
113
Note 8. Receivables
114
Note 9. Investments and other financial assets
115
Note 10. Investments accounted for using the equity method
115
Note 11. Investments accounted for using the proportionate consolidation method
116
Note 12. Inventories
118
Note 13. Non-financial physical assets classified as held for sale
118
Note 14. Property, plant and equipment
119
Note 15. Biological assets
127
Note 16. Intangible assets
128
Note 17. Payables
129
Note 18. Borrowings
130
Note 19. Provisions
131
Note 20. Superannuation
133
Note 21. Leases
134
Note 22. Commitments for expenditure
137
Note 23. Contingent assets and contingent liabilities
139
Note 24. Financial instruments
140
Note 25. Cash flow information
148
Note 26. Reserves
149
Note 27. Summary of compliance with annual parliamentary and special appropriations
150
Note 28. Ex-gratia payments
151
Note 29. Annotated income agreements
152
Note 30. Trust account balances
156
Note 31. Responsible persons
159
Note 32. Remuneration of executives and payments to other personnel
159
Note 33. Remuneration of auditors
161
Note 34. Restructure of administrative arrangements
161
Note 35. Correction of prior year errors
162
Note 36. Glossary of terms and style conventions
166
Department of Environment and Primary Industries 2013 – 14 Annual Report
81
Note 1. Summary of significant accounting policies
These annual financial statements represent the audited general purpose financial statements for the Department of Environment
and Primary Industries (the department) for the period ended 30 June 2014, the first set of statements reflecting the machinery of
government administrative arrangements announced on 9 April 2013. The machinery of government administrative arrangements
resulted in the department relinquishing its Land Administration and Property Information output to the Department of Transport,
Planning and Local Infrastructure and the department assuming responsibility for the Development of Primary Industries output from
the Department of Primary Industries (refer to Note 34 Restructuring of administrative arrangements). The comparative amounts have
not been restated for the machinery of government changes.
The purpose of the report is to provide users with information about the department’s stewardship of resources entrusted to it.
(a) Statement of compliance
These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and
applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards
Board (AASB). In particular, they are presented in a manner consistent with the requirements of AASB 1049 Whole of Government
and General Government Sector Financial Reporting.
Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts
of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
To gain a better understanding of the terminology used in this report, please refer to Note 36. Glossary of terms and style conventions.
These annual financial statements were authorised for issue by the Acting Executive Director Finance and Planning and the
Secretary of the department on 11 September 2014.
(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(m) Non-financial assets)

the impairment of non-financial assets (refer to Note 1(i) Other economic flows included in the net result)

the estimated useful lives over which non-financial assets are depreciated

the estimation of amounts required to be provisioned or disclosed as contingent liabilities

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 Note 1(n) Liabilities).
These financial statements are presented in Australian dollars, and have been prepared in accordance with the historical cost
convention, except for:

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;

productive trees in commercial native forests which are recognised at their fair value less costs to sell;

livestock which are recognised at their fair value; and

the fair value of any other asset is generally based on its depreciated replacement value.
Consistent with AASB 13 Fair Value Measurement, the department determines the policies and procedures for both recurring fair
value measurements such as property, plant and equipment, biological assets and financial instruments and for non-recurring fair
value measurements such as non-financial physical assets classified as held for sale, in accordance with the requirements of AASB
13 and the relevant Financial Reporting Directions.
All assets and liabilities 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
Department of Environment and Primary Industries 2013 – 14 Annual Report
82

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 department has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
In addition, the department determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.
The Valuer-General Victoria (VGV) is the department’s independent valuation agency.
The department, in conjunction with VGV, monitors changes in the fair value of each asset and liability through relevant data sources
to determine whether revaluation is required.
A fair value assessment is conducted annually to ensure that property, plant and equipment reflects the fair value at the end of the
year. The assessment considers all fair value indicators, including land and building indices, the highest and best use indicators and
other relevant indicators.
In the event that the assessment triggers a change in value, adjustments are made to reflect the fair value of the asset.
(c) Reporting entity
The financial statements cover the department as an individual reporting entity.
The department is a government department of the State of Victoria, established pursuant to an order made by the Premier under the
Administrative Arrangements Act 1983.
Its principal address is:
Department of Environment and Primary Industries
8 Nicholson Street
East Melbourne Victoria 3002
The department is an administrative agency acting on behalf of the Crown.
The financial statements include all the controlled activities of the department.
The following bodies are included in the department’s reporting entity:

The Office of the Environmental Monitor is an administrative office of the department established under section 11 of the Public
Administration Act 2004. The Monitor provides regular reports to the Minister for Environment and Climate Change, but is
administratively responsible to the Secretary of the department. The Order in Council creating the administrative office became
effective on 1 January 2008.

For the year ending 30 June 2014 the Office of Living Victoria was an administrative office of the department established under
section 11 of the Public Administration Act 2004. The Office of Living Victoria reported to the Minister for Water on the
implementation of the government’s Living Melbourne, Living Victoria policies, but is administratively responsible to the Secretary
of the department. The Order in Council creating the administrative office became effective on 22 May 2012.
On 1 July 2014, the Office of the Environmental Monitor and Office of Living Victoria were abolished.
The following statutory bodies are excluded from the department’s reporting entity:

The Commissioner for Environmental Sustainability was established by the Victorian Government in November 2003 under the
Commissioner for Environmental Sustainability Act 2003 to provide an independent voice that audits and reports on
environmental sustainability. The Commissioner for Environmental Sustainability is designated as a separate reporting entity and
is excluded from the department’s financial report.

The Victorian Environmental Water Holder was established by the Victorian Government in July 2011 under the Water
Amendment (Victorian Environmental Water Holder) Act 2010 to manage the state’s environmental water holdings. The Victorian
Environmental Water Holder is designated as a separate reporting entity and is excluded from the department’s financial report.

The Yorta Yorta Traditional Owner Land Management Board was established by the Victorian Government in July 2013 under the
Conservation, Forests and Lands Act 1987 to manage the Barmah National Park. The Board is designated as a separate reporting
entity and is excluded from the department’s financial report.
A description of the nature of the department’s operations and its principal activities is included in the report of operations in the
Annual Report which does not form part of these financial statements.
Objectives and funding
The department’s objectives are the effective management of water resources to meet future urban, rural and environmental needs;
the community benefits from effective management of Victoria’s land assets; effective environmental and adaptation policy,
investment and regulation; reduced impact of major bushfires and other extreme events on people, infrastructure and the
environment; and create productive and competitive agricultural industries.
The department is predominantly funded by accrual based parliamentary appropriations for the provision of outputs that are further
described in Note 2. Departmental (controlled) outputs. It provides, on a fee for service basis, various goods and services.
Outputs of the department
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Information about the department’s output activities, and the expenses, income, assets and liabilities which are reliably attributable to
those output activities is set out in the output activities schedule (Note 2. Departmental (controlled) outputs). Information about
income, expenses, assets and liabilities administered by the department are given in the schedule of administered income and
expenses and the schedule of administered assets and liabilities (Note 3. Administered (non-controlled) items).
As a consequence of machinery of government administrative changes announced on 9 April 2013, financial statements of the
department reflect the actual period of responsibility for the outputs, being 1 July 2013 to 30 June 2014 for the received Development
of Primary Industries output. The Land Administration and Property Information output transferred out of the department on 1 July
2013. Comparative amounts for the prior year have not been adjusted.
Details of assets and liabilities transferred into the department and other information relating to machinery of government changes are
reflected in Note 2 and Note 34.
(d) Basis of consolidation
In accordance with AASB 127 Consolidated and Separate Financial Statements, the consolidated financial statements exclude
bodies within the department’s portfolio that are not controlled by the department and therefore are not consolidated. Bodies and
activities that are administered (see explanation below under administered items) are also not controlled and not consolidated.
Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its repayment)
are treated as equity transactions and, therefore, do not form part of the income and expenses of the department.
Jointly controlled assets or operations
Interests in jointly controlled assets or operations are not consolidated by the department, but are accounted for in accordance with
the policy outlined in Note 1(l) Financial assets.
Administered items
Certain resources are administered by the department on behalf of the state. While the department is accountable for the transactions
involving administered items, it does not have the discretion to deploy the resources for its own benefit or the achievement of its
objectives. Accordingly, transactions and balances relating to administered items are not recognised as departmental income,
expenses, assets or liabilities within the body of the financial statements.
The department is administering the desalination plant arrangements on behalf of the state and therefore recognises the associated
income, expenses, assets and liabilities as administered items.
Other administered items include fees from land titles transactions, environmental contributions from Victorian water businesses and
the state’s share of the Murray-Darling Basin Authority’s jointly controlled assets. Note, the Land Administration and Property
Information Output transferred to the Department of Transport, Planning and Local Infrastructure on 1 July 2013. Refer to Note 34.
Restructure of administrative arrangements for more information.
Except as otherwise disclosed, administered resources are accounted for on an accrual basis using the same accounting policies
adopted for recognition of the departmental items in the financial statements. Both controlled and administered items of the
department are consolidated into the financial statements of the state.
Disclosures related to administered items can be found in Note 3. Administered (non-controlled) items.
Funds held in trust
The department receives monies in a trustee capacity for various purposes and holds it in a number of trust funds.
Trust funds where the department has discretion to deploy the resources for its own benefit or the achievement of its objectives are
controlled trust funds. Controlled trust funds are recognised in these financial statements.
Trust funds where the department does not have the discretion to deploy the resources for its own benefit or the achievement of its
objectives are administered trust funds. These transactions and balances are reported in Note 3. Administered (non-controlled) items.
The department does not hold any trust funds on behalf of third parties external to the Victorian Government.
Disclosures related to trust fund transactions and balances can be found in Note 30. Trust account balances.
(e) Scope and presentation of financial statements
Comprehensive operating statement
The comprehensive operating statement comprises three components, being ‘net result from transactions’, ‘other economic flows
included in net result’, as well as ‘other economic flows – other comprehensive income’. The sum of the former two 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.
Refer to Note 36. Glossary of terms and style conventions for the definition of ‘transactions included in net result’, ‘other economic
flows included in net result’ and ‘other economic flows – other comprehensive income’.
Balance sheet
Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets.
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Current and non-current assets and liabilities (non-current being those assets or liabilities expected to be recovered or settled in more
than 12 months) are disclosed in the notes, where relevant.
Statement of changes in equity
The statement of changes in equity presents reconciliations of non-owner and owner changes in equity from the opening balance 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’.
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.
For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as current
borrowings on the balance sheet.
Rounding
Amounts in the financial statements have been rounded to the nearest $1,000, unless otherwise stated. Please refer to the end of
Note 36. Glossary of terms and style conventions for a style convention explaining that minor discrepancies in totals of tables are due
to rounding.
(f) Changes in accounting policies
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 as 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 a department 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 department 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. No adjustment has resulted from the review. In light of AASB 13, the department 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 fair values recognised.
However, AASB 13 has predominantly impacted the disclosures of the department. It requires specific disclosures about fair value
measurements and disclosures 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, except for financial instruments,
of which the fair value disclosures are required under AASB 7 Financial Instruments: Disclosures.
AASB 119 Employee Benefits
In 2013-14, the department has applied AASB 119 Employee benefits (Sept 2011, as amended).
The revised AASB 119 changes the accounting for defined benefit plans and termination benefits. The most significant change relates
to the accounting for changes in defined benefit obligation and plan assets. As the current accounting policy is for the Department of
Treasury and Finance to recognise and disclose the state’s defined benefit liabilities in its financial statements, changes in defined
benefit obligations and plan assets will have limited impact on the department.
The revised standard also changes the definition of short-term employee benefits. Short-term employee benefits are 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. This has resulted in measurement for the annual leave provision on a discounted basis.
As the department already measures employee benefits on a discounted basis, there has been no changes resulting from AASB 119.
(g) Income from transactions
Income is recognised to the extent that it is probable that the economic benefits will flow to the department and the income can be
reliably measured at fair value.
Appropriation income
Appropriated income becomes controlled and is recognised by the department when it is appropriated from the Consolidated Fund by
the Victorian Parliament and applied to the purposes defined under the relevant appropriations act. Additionally, the department is
permitted under section 29 of the FMA to have certain income annotated to the annual appropriation. The income which forms part of
a section 29 agreement is recognised by the department and the receipts paid into the Consolidated Fund as an administered item. At
the point of income recognition, section 29 provides for an equivalent amount to be added to the annual appropriation. Examples of
receipts which can form part of a section 29 agreement are Commonwealth specific purpose grants, municipal council special
purpose grants, the proceeds from the sale of assets and income from the sale of timber resources.
Where applicable, amounts disclosed as income are net of returns, allowances, duties and taxes. All amounts of income over which
the department does not have control are disclosed as administered income in the schedule of administered income and expenses
(see Note 3. Administered (non-controlled) items). Income is recognised for each of the department’s major activities as follows:
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Output appropriations
Income from the outputs the department provides to the government is recognised when those outputs have been delivered and the
relevant minister has certified delivery of those outputs in accordance with specified performance criteria.
Special appropriations
Under section 28 of the Financial Management Act 1994, income is recognised when the amount appropriated for that purpose is due
and payable by the department.
Interest
Interest income includes interest received on bank term deposits and other investments and the unwinding over time of the discount
on financial assets. Interest income is recognised using the effective interest method which allocates the interest over the relevant
period.
Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are
reported either as part of income from other economic flows in the net result or as unrealised gains or losses taken directly to equity,
forming part of the total change in net worth in the comprehensive result.
Sale of goods and services
Income from the supply of services
Income from the supply of services is recognised by reference to the stage of completion of the services being performed. The income
is recognised when:

the amount of the income, stage of completion and transaction costs incurred can be reliably measured

it is probable that the economic benefits associated with the transaction will flow to the department.
Under the stage of completion method, income is recognised by reference to the successful completion of milestones in individual
contracts in each annual reporting period.
In the event that funds are received in advance and the provision of services is incomplete at the reporting date, the value of the
incomplete portion is recognised as unearned income for the period and classified as a liability (refer to Note 1(n) Unearned income).
Income from the sale of goods
Income from the sale of goods is recognised when:

the department no longer has any of the significant risks and rewards of ownership of the goods transferred to the buyer

the department 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 department.
Sale of goods and services includes regulatory fees which are recognised at the time the regulatory fee is billed.
Metropolitan Parks Improvement Rate
The Metropolitan Parks Improvement Rate is recognised as income when it is received.
Grants
Income from grants (other than contributions by owners) is recognised when the department obtains control over the contribution.
Where such grants are payable into the Consolidated Fund, they are reported as administered income (refer to Note 1(d) Basis of
consolidation and (j) Administered income). For reciprocal grants (i.e. equal value is given back by the department to the provider),
the department is deemed to have assumed control when the department has satisfied its performance obligations under the terms of
the grant. For non-reciprocal grants, the department 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.
Fair value of assets received free of charge or for nominal consideration
Contributions of resources received free of charge or for nominal consideration are recognised at fair value when control is obtained
over them, irrespective of whether these contributions are subject to restrictions or conditions over their use.
Other income
User fees and charges
The department recognises controlled and administered user fees and charges at the time an invoice is issued for the goods or
services provided, or cash is received where no invoice supports the goods or service provided. The exceptions are receipts for Land
Titles services, and a portion of log sales, which are invoiced monthly based on an annual royalty, averaged over 12 months. Where
the provision of goods and services is incomplete at the reporting date, the value of the incomplete portion is recognised as unearned
income for the period and classified as a liability.
Note, the Land Administration and Property Information Output transferred to the Department of Transport, Planning and Local
Infrastructure on 1 July 2013. Refer to Note 34. Restructure of administrative arrangements for more information about the transfer.
Other income
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Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes.
All other amounts of income over which the department does not gain control are disclosed as administered income in the schedule of
administered items (see Note 3. Administered (non-controlled) items).
(h) Expenses from transactions
Expenses from transactions are recognised as they are incurred, and reported in the financial year to which they relate.
Employee expenses
Refer to the section in Note 1(n) regarding employee benefits.
These expenses include all costs related to employment (other than superannuation which is accounted for separately) including
wages and salaries, fringe benefits tax, leave entitlements, redundancy payments and WorkCover premiums.
Superannuation
The amount recognised in the comprehensive operating statement is the employer contributions for members of both defined benefit
and defined contribution superannuation plans that are paid or payable 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 items of property, plant and equipment 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.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and
adjustments made where appropriate.
The following estimated useful lives for the different asset classes are used in the calculation of depreciation:
Asset class
Useful life
Buildings and structures
5 to 100 years
Roads
80 years
Plant and equipment
3 to 20 years
Historic, cultural and environment assets
99 years
Buildings leasehold improvement
Term of lease (1 to 15 years)
Finance leased motor vehicle assets
Term of lease (1 to 5 years)
Intangible assets
3 to 10 years
An assessment of useful lives is conducted on an annual basis. The impact of the reassessment of useful lives in 2013–14 is outlined
in Note 7. Revision of accounting estimates.
Where assets have separately identifiable components, those components are assigned useful lives distinct from the item of plant
and equipment to which they relate and depreciated accordingly.
Intangible produced assets with finite useful lives are depreciated as an expense from transactions on a straight-line basis that
allocate the asset’s value, less any estimated residual value, over the asset’s useful life. A residual value is only included where there
is either a commitment by a third party to purchase the asset at the end of its useful life, or an active market. Depreciation begins when
the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner
intended by management.
The consumption of intangible non-produced assets with finite useful lives is not classified as a transaction, but as amortisation and is
included in the net result as an other economic flow. The amortisation period and the amortisation method for an intangible asset with
a finite useful life are reviewed at least at the end of each annual reporting period.
Intangible assets with indefinite useful lives are not depreciated or amortised, but are tested annually for impairment.
Interest expense
Interest expense is recognised in the period in which it is incurred. Refer to Note 36. Glossary of terms and style conventions for an
explanation of interest expense items.
Grants and other transfers
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Grants and other transfers to third parties (other than contributions to owners) are recognised as an expense in the reporting period in
which they are paid or payable. They include transactions such as: grants, subsidies, other transfer payments made to state-owned
agencies, local government and community groups. Refer to Note 36. Glossary of terms and style conventions for an explanation of
grants and other transfers.
Capital asset charge
The capital asset charge is calculated on the budgeted carrying amount of applicable non-financial physical assets.
Supplies and services
Supplies and services costs are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of
any inventories held for distribution are expensed when distributed.
Other operating expenses
Other operating expenses generally represent the day-to-day running costs incurred in normal operations.
Fair value of assets and services provided free of charge or for nominal consideration
Contributions of resources provided free of charge or for nominal consideration are recognised at their fair value when the transferee
obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless
received from another government department or agency as a consequence of a restructuring of administrative arrangements. In the
latter case, such a transfer will be recognised at its carrying value.
Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have
been purchased if not donated.
(i) 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:
Net gain/(loss) on disposal of property, plant and equipment
Any gain or loss on the disposal of property, plant and equipment is recognised at the date of disposal and is the difference between
the proceeds and the carrying value of the asset at the time.
Recognition and derecognition of non-financial assets
Refer to Note 1(m) Non-financial assets.
Impairment of non-financial assets
Intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for impairment (as
described below) and whenever there is an indication that the asset may be impaired.
All other assets are assessed annually for indications of impairment, except for:

inventories (refer Note 1(m) Non-financial assets)

non-financial physical assets held for sale (refer Note 1(m) Non-financial assets)

biological assets (refer Note 15. Biological assets).
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 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.
Refer to Note 1(m) Non-financial assets in relation to the recognition and measurement of non-financial assets.
Gain/(loss) arising from fair value change of biological assets
Biological assets are measured at fair value, and the resultant gain/(loss) is reported as another economic flow.
Net gain/(loss) on financial instruments
Net gain/(loss) on financial instruments includes:

realised and unrealised gains and losses from revaluations of financial instruments at fair value

impairment and reversal of impairment for financial instruments at amortised cost (refer to Note 1(k) Financial instruments)
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
disposals of financial assets and derecognition of financial liabilities.
Revaluations of financial instruments at fair value
Refer to Note 1(k) Financial instruments.
Share of net profits/(losses) of associates, excluding dividends
Refer to Note 1(d) Basis of consolidation.
Other gains/(losses) from other economic flows
Other gains/(losses) from other economic flows include the gains or losses from:

the revaluation of the present value of the long service leave liability due to changes in bond interest rates

transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition or reclassification.
(j) Administered income
The department does not gain control over assets arising from administered income, consequently no income is recognised in the
department’s financial statements. The department collects these amounts on behalf of the state. Accordingly, the amounts are
disclosed as income in the schedule of Administered Items (see Note 3. Administered (non-controlled) items).
Appropriations – Payments on behalf of the State
Appropriation income is recognised on an accrual basis for the provision of outputs delivered through Payments on Behalf of the State
(POBOS).
Finance lease interest
Interest income from finance leases is recognised to reflect a constant periodic rate of return on the state’s net investment in finance
leases.
Sales of goods and services
Income from sales of goods and services is recognised by reference to the stage of completion of the services being performed and
when the department no longer has any of the significant risks and rewards of ownership of the goods transferred to the buyer.
Land titles income
Income for the provision of land titles data is recognised on behalf of the state on an accrual basis when services are provided.
Given the Land Administration and Property Information Output transferred to the Department of Transport, Planning and Local
Infrastructure on 1 July 2013, land titles income has not been recognised in 2013-14. Refer to Note 34. Restructure of administrative
arrangements for more information about the transfer.
Fines, royalties and regulatory fees
The department does not gain control over assets arising from fines, royalties and regulatory fees, consequently no income is
recognised in the department’s financial statements.
The department collects these amounts on behalf of the state. Accordingly, the amounts are disclosed as income in the schedule of
Administered Items (refer to Note 3).
Environmental contribution
Water authorities are required to contribute towards initiatives to improve the sustainable management of water. These contributions
are collected through the Environmental Contribution Levy and recognised as revenue when the department has the right to receive
them on behalf of the state in accordance with AASB 1004 Contributions.
Grants
The department’s administered grants mainly comprise funds provided by the Commonwealth to assist the state government in
meeting general or specific service delivery obligations, primarily for the purpose of aiding the financing of the operations of the
recipient, capital purposes and/or for on passing to other recipients. The department also receives grants for on passing from other
jurisdictions. The department does not have control over these grants, and the income is not recognised in the department’s financial
statements. Grant revenue is recognised on an accrual basis. Refer to Note 1(g) – Income from transactions for the accounting of
grants.
Jointly controlled assets received free of charge
On behalf of the state, the department jointly controls assets of the Murray-Darling Basin Authority. Jointly controlled assets received
free of charge give rise to revenue, which is recognised on an accrual basis.
Other income
Amounts disclosed as other income include leases, licenses and royalties. Income from royalties is recognised on an accrual basis in
accordance with the terms of the relevant agreements.
(k) Financial instruments
Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. Due to the nature of the department’s activities, certain financial assets and financial liabilities
arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial
instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and
Department of Environment and Primary Industries 2013 – 14 Annual Report
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penalties do not meet the definition of financial instruments as they do not arise under contract. However, guarantees issued by the
Treasurer on behalf of the department are financial instruments because, although authorised under statute, the terms and conditions
for each financial guarantee may vary and are subject to an agreement.
Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet
the definition of financial instruments in accordance with AASB 132 and those that do not.
The following refers to financial instruments unless otherwise stated.
Categories of non-derivative financial instruments
Loans and receivables
Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market.
These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement,
loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Loans and receivables category includes cash and deposits (refer to Note 1(l) Financial assets), term deposits with maturity greater
than three months, trade receivables, loans and other receivables, but not statutory receivables.
Financial liabilities at amortised cost
Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any
directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost
with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the
period of the interestbearing liability, using the effective interest rate method (refer to Note 36. Glossary of terms and style
conventions).
Financial instrument liabilities measured at amortised cost include all of the department’s contractual payables, deposits held and
advances received, interestbearing arrangements other than those designated at fair value through profit or loss, but not statutory
payables.
(l) 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.
Receivables
Receivables consist of:

contractual receivables, which include mainly debtors in relation to goods and services, loans to third parties, accrued investment
income, and finance lease receivables (refer to Note 1(o) Leases)

statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits
recoverable.
Contractual receivables are classified as financial instruments and categorised as loans and receivables (refer to Note 1(k) Financial
instruments for recognition and measurement). 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 the debts may not be collected, and bad debts are written off when identified (refer to Note 1(l) Impairment of
financial assets).
Investments and other financial assets
Investments are classified as loans and receivables.
Any interest earned on the financial asset is recognised in the comprehensive operating statement as a transaction.
Investments accounted for using the equity method
Associates are those entities over which the department exercises significant influence, but not control.
Investments in associates are accounted for in the financial statements using the equity method. Under this method, the department’s
share of the post-acquisition profits or losses of associates is recognised in the net result as other economic flows. The share of
post-acquisition movements in revaluation surpluses and any other reserves is recognised in both the comprehensive operating
statement and the statement of changes in equity. The cumulative post acquisition movements are adjusted against the cost of the
investment.
Joint ventures are contractual arrangements between the department or a subsidiary entity and one or more other party to undertake
an economic activity that is subject to joint control. Joint control only exists when the strategic, financial and operating decisions
relating to the activity require the unanimous consent of the parties sharing control (the venturers).
Interests in jointly controlled entities are accounted for in the financial statements using the equity method, as applied to investments
in associates.
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Investments in jointly controlled assets and operations
Concerning any interest in jointly controlled assets, the department recognises in its financial statements:

its share of jointly controlled assets

any liabilities that it had incurred

its share of liabilities incurred jointly by the joint venture

any income earned from the selling or using of its share of the output from the joint venture

any expenses incurred in relation to being an investor in the joint venture.
For jointly controlled operations the state recognises the assets that it controls, the liabilities and expenses that it incurs and its share
of income that it earns from selling outputs of the joint venture.
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:

the rights to receive cash flows from the asset have expired; or

the department 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 department has transferred its rights to receive cash flows from the asset and either:
(a)
has transferred substantially all the risks and rewards of the asset; or
(b)
has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
Where the department has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is
recognised to the extent of the department’s continuing involvement in the asset.
Impairment of financial assets
At the end of each reporting period, the department assesses whether there is objective evidence that a financial asset or group of
financial assets is impaired. All financial instrument assets are subject to annual review for impairment.
Receivables are assessed for bad and doubtful debts 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.
(m) Non-financial assets
Inventories
Inventories include goods and other property held either for sale, or for distribution at zero or nominal cost, or for consumption in the
ordinary course of business operations.
Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories are measured at
the lower of cost and net realisable value. Where inventories are acquired for no cost or nominal consideration, they are measured at
current replacement cost at the date of acquisition.
Cost includes an appropriate portion of fixed and variable overhead expenses. Cost is assigned to high value, low volume inventory
items on a specific identification of cost basis. Cost for all other inventory is measured on the basis of weighted average cost.
Bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or
functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally
acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the
way it did when it was first acquired.
Non-financial physical assets classified as held for sale
Non-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if their carrying
amount will be recovered through a sale transaction rather than through continuing use.
This condition is regarded as met only when:

the asset is available for immediate use in the current condition; and

the sale is highly probable and the asset’s sale is expected to be completed within 12 months from the date of classification.
These non-financial physical assets, related liabilities and financial assets are measured at the lower of carrying amount and fair
value less costs of disposal, and are not subject to depreciation or amortisation.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Property, plant and equipment
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. Assets
transferred as part of a machinery of government change are transferred at their carrying amount. More details about the valuation
techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 14 Property, plant and
equipment.
The initial cost for non-financial physical assets under a finance lease (refer to Note 1(o) Leases) 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.
Non-financial physical assets such as national parks, other Crown land and heritage assets 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 historic assets, cultural assets and other non-financial physical assets that the department intends to preserve
because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where
applicable, accumulated depreciation (calculated on the basis of such cost to reflect the already consumed or expired future economic
benefits of the asset) and any accumulated impairment. These policies and any legislative limitations and restrictions imposed on their
use and/or disposal may impact their fair value.
Road network assets (including earthworks of the operational road networks) are measured at fair value, determined by reference to
the asset’s depreciated replacement cost. The roads, tracks and trails managed by the department are defined as Rural Class 5 and
are sub-divided into five sub-classes as follows:

5A Primary roads: all-weather road, predominantly two lane and mainly sealed

5B Secondary roads: all-weather two lane road, formed and gravelled or single lane sealed road with gravel shoulders

5C Minor roads: generally all-weather, single lane two-way unsealed formed road, usually lightly gravelled

5D Access roads: substantially single lane, two-way, generally dry weather formed (natural materials) road

5E Tracks and trails: predominantly single lane, two-way earth tracks (unformed) at or near the natural surface level. Costs are
expensed as incurred, because these tracks and trails have a useful life of less than one year.
The fair value of plant and equipment, is normally determined by reference to the asset’s depreciated cost.
Certain assets are acquired under finance leases, which may form part of a service concession arrangement. Refer to Notes 1(o)
Leases and 1(q) Commitments for more information.
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.
For the accounting policy on impairment of non-financial physical assets, refer to impairment of non-financial assets under Note 1(i)
Impairment of non-financial assets.
The department capitalises expenditures on individual items of $5,000 (2013: $5,000) or more, and records these as non-financial
assets. Aggregate expenditure on items that will, when completed, result in non-financial assets that provide future economic benefits
is recognised as construction in progress.
Leasehold improvements
The cost of leasehold improvements is capitalised as an asset and depreciated over the shorter of the remaining term of the lease or
the estimated useful life of the improvements.
Revaluations of non-financial physical assets
Non-financial physical assets are measured at fair value on a cyclical basis, in accordance with the Financial Reporting Direction
(FRD) 103E Non-Current Physical Assets. A full revaluation normally occurs every five years, based upon the asset’s government
purpose classification but may occur more frequently if fair value assessments indicate material changes in values. Independent
valuers are generally used to conduct these scheduled revaluations. Road and crossings are revalued using specialised advisors.
Any interim revaluations are determined in accordance with the requirements of FRD 103E.
Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.
Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are recognised in
‘Other economic flows – other comprehensive income’, and accumulated in equity under the physical asset revaluation surplus.
However, the net revaluation increase is recognised in the net result to the extent that it reverses a net revaluation decrease in respect
of the same class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result.
Net revaluation decreases are recognised in ‘Other economic flows – other comprehensive income’ to the extent that a credit balance
exists in the physical asset revaluation surplus in respect of the same class of property, plant and equipment. Otherwise, the net
revaluation decreases are recognised immediately as other economic flows in the net result. The net revaluation decrease recognised in
‘Other economic flows – other comprehensive income’ reduces the amount accumulated in equity under the asset revaluation surplus.
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Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment, are offset against
one another within that class but are not offset in respect of assets in different classes. The asset revaluation surplus is not transferred
to accumulated funds on derecognition of the relevant asset.
Recognition and derecognition of land
Land is recognised under the categories set out at Note 14. Property, plant and equipment when the department identifies specific
parcels of land, park, forest or reserve that it controls and their cost can be reliably determined. The department considers relevant
information, such as the purpose for which a particular parcel has been reserved, to determine the parcels of Crown land over which it
has control and records this information in its Land Information Management System. Where land has been received at no cost the fair
value is determined by the Valuer-General Victoria.
Other government entities are able to change the status of Crown land through grants and reservations made under legislation that is
not administered by either of the Ministers who hold portfolio responsibility for the department (for example, Crown grants may be
issued under the Project Development and Construction Management Act 1994). The department’s policy is to recognise the effect of
such changes when it is made aware of the change in status.
Land is derecognised when it is not eligible to be treated as a return of equity. Gains or losses on the recognition or derecognition of
land are recognised in the net result (other economic flows).
Third party transfers
Land transferred to third parties is treated as a return of equity via administered expenses as per the requirements of FRD 117
Contributions of Existing Non-Financial Assets to Third Parties.
Biological assets
Productive trees in commercial native forests and breeding livestock are recognised as biological assets. These biological assets are
measured at fair value less costs to sell and are revalued at 30 June each year.
For productive trees, revaluation to fair value is determined using a discounted cash flow method based on expected net future cash
flows, discounted by a current market determined rate.
For breeding livestock, fair value is based on the amount that could be expected to be received from the disposal of livestock with
similar attributes.
An increase or decrease in the fair value of these biological assets is recognised in the consolidated comprehensive operating
statement as another economic flow.
Intangible assets
Purchased intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less
accumulated depreciation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is
expected that additional future economic benefits will flow to the department.
When the recognition criteria in AASB 138 Intangible Assets are met, internally generated intangible assets are recognised and
measured at cost less accumulated depreciation and impairment.
Currently, intangible assets reported by the department are software related. Where expenditure exceeds $300 000 on the
development of databases, the department recognises databases as assets, at the value of the total expenditure on the development
of the database.
Refer to Note 1(h) Depreciation and Note 1(i) Impairment of non-financial assets.
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from development (or from the development phase of an internal project) is
recognised if, and only if, all of the following are demonstrated:
(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale
(b) an intention to complete the intangible asset and use or sell it
(c) the ability to use or sell the intangible asset
(d) the intangible asset will generate probable future economic benefits
(e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible
asset
(f) the ability to measure reliably the expenditure attributable to the intangible asset during its development.
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.
The balance includes advance payments to Goulburn-Murray Water for the Connections Project and is unwound based on the
percentage of completion of works.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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(n) Liabilities
Payables
Payables consist of:

Contractual payables, such as accounts payable, statutory payables and accruals. Accounts payable represent liabilities for
goods and services provided to the department prior to the end of the financial year that are unpaid, and arise when the
department becomes obliged to make future payments in respect of the purchase of those goods and services

Statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost (refer to Note 1(k)
Financial instruments). 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.
Advances from the Public Account are made pursuant to section 37 of the FMA and represent payments made in advance of
receiving appropriation funding. These advances are recognised at the gross value of amounts owing and are not discounted to the
present value of future cash flows.
Borrowings
All interest bearing liabilities are initially recognised at fair value of the consideration received, less directly attributable transaction
costs (refer also to Note 1(o) Leases). The department classifies its interest bearing liabilities as financial liabilities at amortised cost.
Unearned income
Unearned income consists of amounts received in advance from customers for goods and services that are to be delivered or provided by
the department after the reporting date.
Provisions
Provisions are recognised when the department has a present obligation, the future sacrifice of economic benefits is probable, and
the amount of the provision can be measured reliably.
The future sacrifice of economic benefits includes costs associated with insurance claims, restoration and rehabilitation related to
bushfire activities involving the department, and other environmental activities such as native vegetation offsets.
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, salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave, are all recognised in the provision for
employee benefits, as ‘current liabilities’, because the department 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, and annual leave are measured at:

undiscounted value – if the department expects to wholly settle with 12 months; and

present value – if the department does not expect to wholly settle within 12 months.
(ii) Long service leave
Liability for long service leave (LSL) is recognised in the provision for employee benefits.
Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the department 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 department expects to wholly settle within 12 months; and

present value – if the department does not expect to wholly settle within 12 months.
Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until
the employee has completed the requisite years of service. This noncurrent LSL liability is measured at present value.
Any gain or loss following revaluation of the present value of noncurrent LSL liability is recognised as a transaction, except to the
Department of Environment and Primary Industries 2013 – 14 Annual Report
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extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an other economic flow
(refer to Note 1(i) Other economic flows included in net result).
(iii)
Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee
decides to accept an offer of benefits in exchange for the termination of employment. The department 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.
Employee benefits on-costs
Employee benefits on-costs such as payroll tax, workers compensation and superannuation are recognised separately from the
provision for employee benefits.
Onerous contracts
An onerous contract is considered to exist when the unavoidable cost of meeting the contractual obligations exceeds the estimated
economic benefits to be received. Present obligations arising under onerous contracts are recognised as a provision to the extent that
the present obligation exceeds the estimated economic benefits to be received.
Financial guarantees
Payments that are contingent under financial guarantee contracts are recognised as a liability at the time the guarantee is issued. The
liability is initially measured at fair value, and if there is a material increase in the likelihood that the guarantee may have to be
exercised, then it is measured at the higher of the amount determined in accordance with AASB 137 Provisions, Contingent Liabilities
and Contingent Assets and the amount initially recognised less cumulative amortisation, where appropriate.
In the determination of fair value, consideration is given to factors including the overall capital management /prudential supervision
framework in operation, the protection provided by the state government by way of funding should the probability of default increase,
probability of default by the guaranteed party and the likely loss to the department in the event of default.
The value of loans and other amounts guaranteed by the Treasurer is disclosed in Note 23. Contingent assets and contingent
liabilities.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an existing
financial liability is replaced by another form the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a
new liability. The difference in the respective carrying amounts is recognised as an ‘Other economic flow’ in the estimated
comprehensive operating statement.
(o) 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 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. For service
concession arrangements (refer to Note 1(s)), the commencement of the lease term is deemed to be the date the asset is
commissioned. All other leases are classified as operating leases.
Finance leases
Department as lessor
Amounts due from lessees under finance leases are recorded as receivables. Finance lease receivables are initially recorded at
amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual
value expected to accrue at the end of the lease term. Finance lease receipts are apportioned between periodic interest income and
reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment
outstanding in respect of the lease.
Department 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 accounted for as a nonfinancial physical asset. If there is certainty that the department will obtain the
ownership of the lease asset by the end of the lease term, the asset shall be depreciated over the useful life of the asset. If there is no
reasonable certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be fully depreciated over the
shorter of the lease term and its useful life.
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
Department as lessee
Department of Environment and Primary Industries 2013 – 14 Annual Report
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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.
All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration
agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.
In the event that lease incentives are received to enter into operating leases, the aggregate cost of incentives are recognised as a
reduction of rental expense over the lease term on a straight-line basis, unless another systematic basis is more representative of the
time pattern in which economic benefits from the leased asset are consumed.
(p) 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 to or distributions by owners have also been designated as contributions by owners.
Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners. Transfers of net
liabilities arising from administrative restructurings are treated as distributions to owners.
Transfers of net assets to third parties are treated as a return of equity via administered expenses, as required under FRD 117
Contributions of Existing Non-Financial Assets to Third Parties.
(q) Commitments
Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are
disclosed by way of a note (refer to Note 22. Commitments for expenditure and Note 3. Administered (non-controlled) items) at their
nominal value and inclusive of the goods and services tax (GST) payable. In addition, where it is considered appropriate and provides
additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures
cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.
(r) 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 (refer to Note
23. Contingent assets and contingent liabilities) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities
are presented inclusive of GST receivable or payable respectively.
(s) Service concession arrangements
The department sometimes enters into certain arrangements with private sector participants to design and construct or upgrade an
asset used to provide public services. These arrangements are typically complex and usually include the provision of operational and
maintenance services for a specified period of time. These arrangements are often referred to as either Public Private Partnerships
(PPPs) or Service Concession Arrangements (SCAs).
The department pays the operator over the period of the arrangement, subject to specified performance criteria being met. At the date
of commitment to the principal provisions of the arrangement, these estimated periodic payments are allocated between a component
related to the design and construction or upgrading of the asset and components related to the ongoing operation and maintenance of
the asset. The former component is accounted for as a lease payment. The remaining components are accounted for as
commitments for operating costs and capital expenditure which are accounted for in the comprehensive operating statement and
balance sheet as they are incurred.
The department classifies PPPs as controlled or administered items in accordance with AASB 1050 Administered Items and the
Victorian Government’s business rule, BFMG 60 Administered Items. Key indicators of control are where a PPP contributes to the
achievement of the department’s outputs, or where controlled sources of income are used to fund obligations to the operator.
Refer to Note 3(c) for a description of the administered PPP and Note 11 Investments accounted for using the proportionate consolidation
method for a description of the controlled PPPs.
(t) Accounting for the goods and services tax (GST)
Income, expenses and assets are recognised net of the amount of associated GST, except where the GST incurred is not recoverable
from the taxation authority. In this case, the GST payable 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 flows.
Commitments for expenditure and contingent assets and liabilities are also stated inclusive of GST.
(u) Foreign currency balances/transactions
All foreign currency transactions during the financial year are brought to account using the exchange rate in effect at the date of the
transaction. Foreign monetary items existing at the end of the reporting period are translated at the closing rate at the date of the end
of the reporting period. Non-monetary assets carried at fair value that are denominated in foreign currencies are translated at the
rates prevailing at the date when the fair value was determined.
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Foreign currency translation differences are recognised in other economic flows and accumulated in a separate component of equity,
in the period in which they arise.
(v) Events after 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 years.
(w) Comparative amounts
Where the presentation or classification of items in the financial statements changes, the comparative amounts are also reclassified
unless it is impractical to do so. The nature, amount and reason for the reclassification is also disclosed. If the reclassification affects
an item on the balance sheet, a third statement of financial position is also presented.
The department has reviewed its financial statements and determined to reclassify the split of grant income between specific and general
purpose grants. Given all grants received by the department are for a specific purpose the 2013 balance of $27.69 million has been
reclassified from general purpose grants to specific purpose grants. Refer to Note 4(d).
(x) AASs issued that are not yet effective
Certain new AASs have been published that are not mandatory for the 30 June 2014 reporting period. DTF assesses the impact of all
these new standards and advises the department of their applicability and early adoption where applicable.
As at 30 June 2014, the following AASs have been issued by the AASB but are not yet effective. They become effective for the first
financial statements for reporting periods commencing after the stated operating date as follows:
Department of Environment and Primary Industries 2013 – 14 Annual Report
97
Standard/
Interpretation
Applicable for annual
reporting periods beginning
on or after
Summary
Impact on public sector entity
financial statements
AASB 9
Financial
Instruments
This standard simplifies requirements for
the 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).
1 January 2017
The department has no assets
available for sale. As such the
preliminary assessment has not
identified any impact arising
from AASB 9.
AASB 10
Consolidated
Financial
Statements
This Standard forms the basis for
determining which entities should be
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.
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.
1 January 2014
(not-for-profit 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.
AASB 11 Joint
Arrangements
This Standard deals with the concept of
joint control, and sets out a new
principles-based approach for determining
the type of joint arrangement that exists and
the corresponding accounting treatment.
The new categories of joint arrangements
under AASB 11 are more aligned to the
actual rights and obligations of the parties
to the arrangement.
1 January 2014
(not-for-profit entities)
The department currently uses
the proportionate consolidation
method to accounting for joint
ventures. It is anticipated that
adopting the equity method will
have an impact. Ongoing work
is being done to monitor and
assess the impact of this
standard.
AASB 12
Disclosure of
Interests in
Other Entities
This Standard requires disclosure of
information that enables users of financial
statements to evaluate the nature of, and
risks associated with, interests in other
entities and the effects of those interests on
the financial statements. This Standard
replaces the disclosure requirements in
AASB 127 Separate Financial Statements
and AASB 131 Interests in Joint Ventures.
1 January 2014
(not-for-profit entities)
The new standard is likely to
require additional disclosures
and ongoing work is being done
to determine the extent of
additional disclosure required.
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 January 2014
(not-for-profit entities)
Current assessment indicates
that there is limited impact on
the department. Ongoing work
is being done to monitor and
assess the impact of this
standard.
AASB 128
Investments in
Associates and
Joint Ventures
This revised Standard sets out the
requirements for the application of the
equity method when accounting for
investments in associates and joint
ventures.
1 January 2014
(not-for-profit entities)
The department currently uses
the proportionate consolidation
method to accounting for joint
ventures. It is anticipated that
adopting the equity method will
have an impact. Ongoing work
is being done to monitor and
assess the impact of this
standard.
Ongoing work is being done to
monitor and assess the impact
of this standard.
Department of Environment and Primary Industries 2013 – 14 Annual Report
98
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
The department will be required
to restate in the financial
statements the budgetary
information in accordance with
the presentation format
prescribed in Australian
Accounting Standards and
explain the significant variances
from the original budget.
AASB 1056
Superannuation
Entities
AASB 1056 replaces AAS 25 Financial
Reporting by Superannuation Plans. The
standard was developed in light of changes
in recent years, developments in the
superannuation industry and Australia’s
adoption of IFRS.
1 July 2016
This standard is not applicable
to the department as it is not a
superannuation entity.
In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2013-14
reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected
to have insignificant impacts on public sector reporting. The AASB Interpretation in the list below is also not effective for the 2013-14
reporting period and is considered to have insignificant impacts on public sector reporting.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010).

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements
Standards.

2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements.

2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets.

2013-4 Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation of Hedge Accounting.

2013-5 Amendments to Australian Accounting Standards – Investment Entities

2013-6 Amendments to AASB 136 arising from Reduced Disclosure Requirements

2013-7 Amendments to AASB 1038 arising from AASB 10 in relation to consolidation and interests of policy holders

2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments

AASB Interpretation 21 Levies.
Department of Environment and Primary Industries 2013 – 14 Annual Report
99
Note 2. Departmental (controlled) outputs
A description of departmental outputs performed during the year ended 30 June 2014, and the objectives of these outputs, are
summarised below.
Effective Water Management and Supply
Description of output
Effective management of water resources to meet future urban, rural and environmental needs.
Objectives
This objective will deliver on increasing the efficiency of supply and use of water in cities and towns including integrated water cycle
management, make a more sustainable irrigation industry, and deliver a transition strategy for the Basin Plan that balances social,
economic and environmental needs. In addition, this objective will improve environmental conditions and waterways supporting
community needs.
Public Land
Description of output
The community benefits from effective management of Victoria’s land assets.
Objectives
This objective delivers land management supporting social, environmental and economic outcomes, provides effective governance
and management of public land.
Forests and Parks
Description of output
The community benefits from effective management of Victoria’s land assets.
Objectives
This objective delivers land management supporting social, environmental and economic outcomes, provides effective governance
and management of public land.
Environmental Programs
Description of output
Effective environmental and adaptation policy, investment and regulation.
Objectives
This objective delivers support for local communities and landholders engaged in environmental works, improves the transparency
and delivery of environmental regulation, provides effective governance and investment in environmental programs and provides
effective policy for environmental outcomes and resource efficiency.
Environmental Policy
Description of output
Effective environmental and adaptation policy, investment and regulation.
Objectives
This objective delivers support for local communities and landholders engaged in environmental works, improves transparency and
delivery of environmental regulation, provides effective governance and investment in environmental programs and provides effective
policy for environmental outcomes and resource efficiency.
Land and Fire Management
Description of output
Reduced impact of major bushfires and other extreme events on people, infrastructure and the environment.
Objectives
This objective delivers a planned burning program that reduces the threat and impact of bushfires for Victoria and delivers a
risk-based approach to preparing and responding to fire and non-fire emergency events.
Development of Primary Industries
Description of output
Create productive and competitive agricultural industries. Sustainably manage fish, game and forest resources.
Objectives
This objective will create conditions for increased productivity and access to markets for dairy, red meat, grains and horticulture
industries.
It will also assist in the efficient and sustainable allocation, use and responsible management of secure access to fisheries, forest and
game resources for current and future use.
Changes in outputs
Department of Environment and Primary Industries 2013 – 14 Annual Report
100
All outputs of the former Department of Primary Industries, except the Energy and Resources output, transferred to the department as
a consequence of machinery of government changes announced on 9 April 2013. However, accounts and reports for this output for
the purposes of the Financial Management Act 1994 (FMA) were kept and provided from 1 July 2013 as per the Administrative
Arrangements Order (No. 214) 2013. Assets and liabilities attributable to the transferred outputs for the reporting period are disclosed
in Note 34. Restructuring of administrative arrangements.
At the same time, the Land Administration and Property Information output, was transferred to the Department of Transport, Planning
and Local Infrastructure. Accounts and reports for this output for the purposes of the FMA were kept and provided until 1 July 2013 as
per the Administrative Arrangements Order (No. 217) 2013. Refer to Note 34 Restructure of administrative arrangements.
Schedule A - Controlled income and expenses for the year ended 30 June 2014
Effective Water
Management and
Supply
Public Land
Forests and Parks
Land Administration
and Property
Information (ii)
2014
$’000
2013
$’000
2014
$’000
2013 (i)
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
Output appropriations
305,214
204,824
74,692
69,556
96,793
92,676
0
101,994
Special appropriations
2,040
14,442
0
0
0
0
0
0
0
0
2,332
2,313
0
0
0
0
5,503
5,651
3,222
1,558
324
1,071
0
11,236
0
0
58,528
38,859
92,455
97,904
0
0
13,648
21,906
1,839
3,433
17,389
6,529
0
378
0
0
0
5,000
0
0
0
0
5,137
6,657
399
24
0
421
0
0
331,542
253,480
141,012
120,743
206,961
198,601
0
113,608
(27,970)
(26,391)
(23,784)
(20,975)
(14,663)
(15,573)
0
(47,168)
(2,872)
(1,514)
(3,360)
(2,405)
(11,370)
(10,694)
0
(3,999)
(45)
(134)
(70)
(156)
(27)
(53)
0
(211)
(125,470)
(176,635
)
(49,040)
(44,211)
(149,266
)
(154,610
)
0
(538)
(1,677)
(1,319)
(17,862)
(16,546)
(387)
(174)
0
(5,052)
(116,383
)
(55,612)
(24,401)
(25,340)
(23,233)
(17,665)
0
(62,420)
(71)
(94)
(135)
(235)
(301)
(198)
0
(647)
(274,488)
(261,699
)
(118,652
)
(109,868
)
(199,247
)
(198,967
)
0
(120,035
)
57,054
(8,219)
22,360
10,875
7,714
(366)
0
(6,427)
27,064
(5,399)
185,297
(3,995)
30
0
74
Income from transactions
Interest
Sale of goods and services
Metropolitan Parks
Improvement Rate
Grants
Fair value of assets received
free of charge or for nominal
consideration
Other income
Total income from
transactions
Expenses from transactions
Employee expenses
Depreciation
Interest expense
Grants and other transfers
Capital asset charge
Supplies and services
Other operating expenses
Total expenses from
transactions
Net result from transactions
(net operating balance)
Other economic flows included in net result
Net gain/(loss) on non-financial
64
Department of Environment and Primary Industries 2013 – 14 Annual Report
101
assets
(2)
0
13
2
7
(5)
0
(22)
0
0
0
0
0
0
0
4,019
Other gains/(losses) from other
economic flows
(87)
543
(84)
486
(45)
217
0
823
Total other economic flows
included in net result
(25)
27,607
(5,470)
185,785
(4,033)
242
0
4,894
57,029
19,388
16,890
196,660
3,681
(124)
0
(1,533)
Net gain/(loss) on financial
instruments
Share of net profits/(losses) of
associates, excluding
dividends
Net result
Other economic flows – other comprehensive income
Items that will not be classified to net result
Changes in physical asset
revaluation surplus
0
0
5,997
4,589
0
17
0
0
Total other economic flows –
other comprehensive income
0
0
5,997
4,589
0
17
0
0
57,029
19,388
22,887
201,249
3,681
(107)
0
(1,533)
Comprehensive result
Notes:
(i) Refer to Note 35. Correction of prior year errors for details.
(ii) On 1 July 2013, the department relinquished its Land Administration and Property Information output to the Department of Transport, Planning and
Local Infrastructure. In addition, the Department of Primary Industries ceased to exist from 1 July 2013, with the department assuming
responsibility for the Development of Primary Industries output. Refer to Note 34. Restructure of administrative arrangement for more information
on the resulting transfers.
Department of Environment and Primary Industries 2013 – 14 Annual Report
102
Schedule A - Controlled income and expenses for the year ended 30 June 2014 (continued)
Environmental
Programs
Development of
Primary Industries (ii)
Environmental
Policy
Land and Fire
Management
Total
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013 (i)
$’000
97,053
119,045
412,785
0
25,128
41,054
384,564
401,546
1,396,229
1,030,695
0
0
0
0
0
0
0
103
2,040
14,545
0
0
2,780
0
0
0
0
0
5,112
2,313
11,127
14,682
25,643
0
6,280
1,644
7,097
6,692
59,196
42,534
0
0
0
0
0
0
0
0
150,983
136,763
394
1,905
210
0
12,586
1,157
21
247
46,087
35,555
0
0
0
0
0
0
0
0
0
5,000
(1)
34
628
0
0
4,300
3
6
6,166
11,442
108,573
135,666
442,046
0
43,994
48,155
391,685
408,594
1,665,813
1,278,847
(33,649)
(37,885)
(149,065)
0
(12,952)
(12,703)
(115,510)
(115,543)
(377,593)
(276,238)
(3,333)
(2,779)
(23,366)
0
(551)
(429)
(24,629)
(24,786)
(69,481)
(46,606)
(179)
(232)
(22,577)
0
(27)
(41)
(912)
(1,042)
(23,837)
(1,869)
(51,582)
(74,060)
(45,609)
0
(18,339)
(25,577)
(20,811)
(18,470)
(460,117)
(494,101)
(2,334)
(2,154)
(35,508)
0
(321)
(131)
(54,221)
(50,283)
(112,310)
(75,659)
(19,374)
(25,058)
(175,909)
0
(8,121)
(8,772)
(162,554)
(167,531)
(529,975)
(362,398)
(428)
(744)
(2,822)
0
(31)
(20)
(3,670)
(5,871)
(7,458)
(7,809)
(110,879)
(142,912)
(454,856)
0
(40,342)
(47,673)
(382,307)
(2,306)
(7,246)
(12,810)
0
3,652
482
9,378
25,068
85,042
14,167
622
532
1,212
0
10
12
3,699
7,633
(3,787)
220,642
0
0
(46)
0
1
0
6
(14)
(21)
(39)
0
0
0
0
0
0
0
0
0
4,019
(76)
537
(403)
0
(38)
163
(325)
2,262
(1,058)
5,031
546
1,069
763
0
(27)
175
3,380
9,881
(4,866)
229,653
(1,760)
(6,177)
(12,047)
0
3,625
657
12,758
34,949
80,176
243,820
0
0
0
0
0
0
160
0
6,157
4,606
(383,526) (1,580,771) (1,264,680)
Department of Environment and Primary Industries 2013 – 14 Annual Report
103
0
0
0
0
0
0
160
0
6,157
4,606
(1,760)
(6,177)
(12,047)
0
3,625
657
12,918
34,949
86,333
248,426
Notes:
(i) Refer to Note 35. Correction of prior year errors for details.
(ii) On 1 July 2013, the department relinquished its Land Administration and Property Information output to the Department of Transport, Planning and
Local Infrastructure. In addition, the Department of Primary Industries ceased to exist from 1 July 2013, with the department assuming
responsibility for the Development of Primary Industries output. Refer to Note 34. Restructure of administrative arrangement for more information
on the resulting transfers.
Schedule B - Controlled assets and liabilities as at 30 June 2014
Effective Water Management
and Supply
Public Land
Forests and Parks
2014
$’000
2013
$’000
2012
$’000
2014
$’000
2013 (i)
$’000
2012 (i)
$’000
2014
$’000
2013
$’000
2012
$’000
51,238
21,057
25,376
79,651
19,230
35,119
34,622
28,793
7,645
Non-financial assets
211,502
104,268
70,081 2,485,118 2,459,035 2,291,790 2,703,941 2,691,398 2,700,126
Total assets
262,740
125,325
95,457 2,564,769 2,478,265 2,326,909 2,738,563 2,720,191 2,707,771
Liabilities
43,731
36,275
15,943
56,860
59,176
60,587
11,719
6,174
8,830
Total liabilities
43,731
36,275
15,943
56,860
59,176
60,587
11,719
6,174
8,830
219,009
89,050
79,514 2,507,909 2,419,089 2,266,322 2,726,844 2,714,017 2,698,941
Assets
Financial assets
Net assets
Land Administration and
Property Information (ii)
Environmental Programs
Development of Primary
Industries (ii)
2014
$’000
2013
$’000
2012
$’000
2014
$’000
2013
$’000
2012
$’000
2014
$’000
2013
$’000
2012
$’000
Financial assets
0
382,944
364,464
54,696
24,760
26,400
186,574
0
0
Non-financial assets
0
42,053
43,109
70,731
45,163
50,492
605,243
0
0
Total assets
0
424,997
407,573
125,427
69,923
76,892
791,817
0
0
Liabilities
0
31,451
31,369
22,117
24,861
35,460
421,150
0
0
Total liabilities
0
31,451
31,369
22,117
24,861
35,460
421,150
0
0
Net assets
0
393,546
376,204
103,310
45,062
41,432
370,667
0
0
Assets
Department of Environment and Primary Industries 2013 – 14 Annual Report
104
Environmental Policy
Land and Fire Management
Total
2014
$’000
2013
$’000
2012
$’000
2014
$’000
2013
$’000
2012
$’000
2014
$’000
2013 (i)
$’000
2012 (i)
$’000
Financial assets
26,540
4,522
168
178,089
7,843
(15,687)
611,410
489,149
443,485
Non-financial assets
18,004
5,516
7,560 2,101,956 2,004,990 1,973,367 8,196,495 7,352,423 7,136,525
Total assets
44,544
10,038
7,728 2,280,045 2,012,833 1,957,680 8,807,905 7,841,572 7,580,010
Liabilities
16,074
9,387
11,284
100,451
127,833
119,769
672,102
295,157
283,242
Total liabilities
16,074
9,387
11,284
100,451
127,833
119,769
672,102
295,157
283,242
Net assets
28,470
651
Assets
(3,556) 2,179,594 1,885,000 1,837,911 8,135,803 7,546,415 7,296,768
Notes:
(i) Refer to Note 35. Correction of prior year errors for details.
(ii) On 1 July 2013, the department relinquished its Land Administration and Property Information output to the Department of Transport, Planning and
Local Infrastructure. In addition, the Department of Primary Industries ceased to exist from 1 July 2013, with the department assuming
responsibility for the Development of Primary Industries output. Refer to Note 34. Restructure of administrative arrangement for more information
on the resulting transfers.
Department of Environment and Primary Industries 2013 – 14 Annual Report
105
Note 3. Administered (non-controlled) items
In addition to the specific departmental operations which are included in the financial statements (balance sheet, comprehensive
operating statement, cash flow statement and statement of changes in equity), the department administers or manages other
activities and resources on behalf of the state. The transactions relating to these activities are reported as administered items in this
note.
(a) Administered income and expenses for the year ended 30 June 2014
Effective Water
Management and
Supply
2014
$’000
Public Land
Forests and Parks
Land Administration
and Property
Information
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
Administered income from transactions
Appropriations – Payments
on behalf of the State
(POBOS)
888,954
447,420
0
0
0
0
0
0
Finance lease interest
476,133
302,543
0
0
2
2
0
0
Sales of goods and services
134,381
446,543
3,740
2,221
7,781
6,507
0
22,543
Fines, royalties and
regulatory fees
0
0
0
0
0
0
0
0
Land Titles income
0
0
0
0
0
0
0
237,145
111,980
69,420
0
0
0
0
0
0
1,958
25,200
0
500
0
100
0
0
19,712
16,136
0
0
0
0
0
0
(11,521)
8
5,718
7,100
276
271
0
13
1,621,597
1,307,270
9,458
9,821
8,059
6,880
0
259,701
Environmental contribution
Grants
Jointly controlled assets
received free of charge
Other income
Total administered
income from transactions
Administered expenses from transactions
(28,315)
(30,650)
0
0
0
0
0
0
Finance lease interest
expense
(476,294)
(302,718)
0
0
0
0
0
0
Supplies and services
(102,106)
(86,348)
(2,088)
(19,607)
(2)
0
0
0
Depreciation of jointly
controlled assets
(7,025)
(10,692)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(794,689)
(800,739)
(14,444)
(16,968)
(8,190)
(5,954)
0
(254,252)
Total administered
(1,408,429) (1,231,147)
expenses from transactions
(16,532)
(36,575)
(8,192)
(5,954)
0
(254,252)
(7,074)
(26,754)
(133)
926
0
5,449
Grants and other transfers
Other expenses associated
with jointly controlled
assets
Payments into the
Consolidated Fund
Total administered net
result from transactions
(net operating balance)
213,168
76,123
Department of Environment and Primary Industries 2013 – 14 Annual Report
106
Administered other economic flows included in net result
( 850)
(18,415)
(19,026)
(2,660)
112
2,372
0
(406)
Net gain/(loss) on financial
instruments
12
0
(181)
(155)
6
2
0
(139)
Total administered other
economic flows included
in net result
( 838)
(18,415)
(19,207)
(2,815)
118
2,374
0
(545)
Administered net result
212,330
57,708
(26,281)
(29,569)
(15)
3,300
0
4,904
Administered
comprehensive result
212,330
57,708
(26,281)
(29,569)
(15)
3,300
0
4,904
Net gain/(loss) on
non-financial assets
Note
(i) On 1 July 2013, the department relinquished its Land Administration and Property Information output to the Department of Transport, Planning and
Local Infrastructure. In addition, the Department of Primary Industries ceased to exist from 1 July 2013, with the department assuming
responsibility for the Development of Primary Industries output. Refer to Note 34. Restructure of administrative arrangement for more information
on the resulting transfers.
(a) Administered income and expenses for the year ended 30 June 2014 (continued)
Environmental
Programs
Development of
Primary Industries
Environmental Policy
Land and Fire
Management
Total
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
0
0
0
0
0
0
0
0
888,954
447,420
1
1
1
0
0
0
0
0
476,137
302,546
670
143
62,693
0
104
0
909
76
210,278
478,033
0
0
31,589
0
0
0
0
0
31,589
0
0
0
0
0
0
0
0
0
0
237,145
0
0
0
0
0
0
0
0
111,980
69,420
26,959
1,720
2,918
0
0
0
0
0
31,835
27,520
0
0
0
0
0
0
0
0
19,712
16,136
1,568
947
7,433
0
1
3
24
60
3,499
8,402
29,198
2,811
104,634
0
105
3
933
136
1,773,984
1,586,622
0
0
0
0
0
0
0
0
(28,315)
(30,650)
0
0
0
0
0
0
0
0
(476,294)
(302,718)
0
0
(11)
0
(1)
0
(13)
0
(104,221)
(105,955)
0
0
0
0
0
0
0
0
(7,025)
(10,692)
Department of Environment and Primary Industries 2013 – 14 Annual Report
107
0
0
0
0
0
0
0
0
0
(30,242)
(341)
(117,230)
0
(131)
440
(1,130)
5,975
(30,242)
(341)
(117,241)
0
(132)
440
(1,143)
5,975 (1,581,911) (1,521,854)
(1,044)
2,470
(12,607)
0
(27)
443
(210)
6,111
192,073
64,768
323
(523)
(851)
0
165
(59)
1,140
(1,393)
(18,987)
(21,084)
10
0
392
0
5
0
45
0
289
(292)
333
(523)
(459)
0
170
(59)
1,185
(1,393)
(18,698)
(21,376)
(711)
1,947
(13,066)
0
143
384
975
4,718
173,375
43,392
(711)
1,947
(13,066)
0
143
384
975
4,718
173,375
43,392
0
(966,056) (1,071,839)
Note
(i) On 1 July 2013, the department relinquished its Land Administration and Property Information output to the Department of Transport, Planning and
Local Infrastructure. In addition, the Department of Primary Industries ceased to exist from 1 July 2013, with the department assuming
responsibility for the Development of Primary Industries output. Refer to Note 34. Restructure of administrative arrangement for more information
on the resulting transfers.
(b) Administered assets and liabilities as at 30 June 2014
Effective Water
Management and
Supply
Public Land
Forests and Parks
Land Administration
and Property
Information
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
226
505
123
107
144
125
0
156
60,087
72,878
1,754
5,158
635
2,482
0
10,417
Finance lease receivables
4,268,161
4,319,535
0
0
0
0
0
0
Total administered
financial assets
4,328,474
4,392,918
1,877
5,265
779
2,607
0
10,573
Administered financial assets(i)
Cash
Receivables
Administered non-financial assets
Share of jointly controlled
assets
791,141
793,829
0
0
0
0
0
0
Other non-financial assets
12,671
11,948
0
0
0
0
0
0
803,812
805,777
0
0
0
0
0
0
5,132,286
5,198,695
1,877
5,265
779
2,607
0
10,573
Total administered
non-financial assets
Total administered assets
Department of Environment and Primary Industries 2013 – 14 Annual Report
108
Administered liabilities (ii)
Creditors and accruals
59,086
290,254
76
5,123
(23)
(519)
0
(1,920)
Unearned income
35,737
51,426
5,739
6,028
0
1
0
589
4,264,805
4,316,023
0
0
0
0
0
0
1
1
27
105
0
(19)
0
2
Total administered
liabilities
4,359,629
4,657,704
5,842
11,256
(23)
(537)
0
(1,329)
Total administered
net assets
772,657
540,991
(3,965)
(5,991)
802
3,144
0
11,902
Interest-bearing liabilities
Other liabilities
Note
(i) The state’s investment in all its controlled entities is disclosed in the administered note of the DTF’s financial statements. This includes the
investment in the Department of Environment and Primary Industries’ portfolio entities.
(ii) DTF discloses the net liability related to defined benefit superannuation plans as an administered liability in its financial statements, on behalf of the
state as the sponsoring employer. Refer to DTF’s financial statements for more detailed disclosures in relation to these plans.
(iii) On 1 July 2013, the department relinquished its Land Administration and Property Information output to the Department of Transport, Planning and
Local Infrastructure. In addition, the Department of Primary Industries ceased to exist from 1 July 2013, with the department assuming
responsibility for the Development of Primary Industries output. Refer to Note 34. Restructure of administrative arrangement for more information
on the resulting transfers.
(b) Administered assets and liabilities as at 30 June 2014 (continued)
Environmental
Programs
Development of
Primary Industries
Environmental Policy
Land and Fire
Management
Total
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
162
164
523
0
48
30
416
420
1,642
1,507
197
5,272
5,653
0
91
1,393
796
19,258
69,213
116,858
0
0
0
0
0
0
0
0
4,268,161
4,319,535
359
5,436
6,176
0
139
1,423
1,212
19,678
4,339,016
4,437,900
0
0
0
0
0
0
0
0
791,141
793,829
0
0
0
0
0
0
0
0
12,671
11,948
0
0
0
0
0
0
0
0
803,812
805,777
359
5,436
6,176
0
139
1,423
1,212
19,678
5,142,828
5,243,677
Department of Environment and Primary Industries 2013 – 14 Annual Report
109
(64)
(1,690)
(1,293)
0
(43)
(421)
(369)
(5,817)
57,370
285,010
1
1
26,879
0
0
0
3
4
68,359
58,049
0
0
0
0
0
0
0
0
4,264,805
4,316,023
1
20
10
0
0
0
2
5
41
114
(62)
(1,669)
25,596
0
(43)
(421)
(364)
(5,808)
4,390,575
4,659,196
421
7,105
(19,420)
0
182
1,844
1,576
25,486
752,253
584,481
Note
(i) The state’s investment in all its controlled entities is disclosed in the administered note of DTF’s financial statements. This includes the investment
in the Department of Environment and Primary Industries’ portfolio entities.
(ii) DTF discloses the net liability related to defined benefit superannuation plans as an administered liability in its financial statements, on behalf of the
state as the sponsoring employer. Refer to DTF’s financial statements for more detailed disclosures in relation to these plans.
(iii) On 1 July 2013, the department relinquished its Land Administration and Property Information output to the Department of Transport, Planning and
Local Infrastructure. In addition, the Department of Primary Industries ceased to exist from 1 July 2013, with the department assuming
responsibility for the Development of Primary Industries output. Refer to Note 34. Restructure of administrative arrangement for more information
on the resulting transfers.
(c) Correction of prior year errors
As part of the ongoing maintenance of the land information management system, a number of Crown land parcels have been
identified that were consigned to a land manager in a previous financial year.
Adjustments have been made to correct prior year balances.
The net impact of these errors is:
2011–12 Opening balances
an overstatement of net loss on non-financial assets of $17.345 million
an overstatement of contributed capital of $17.345 million
The below section shows the restatement of each line item affected by the error.
Restatement of financial statements as a result of the correction of an error
Actual 2012
$’000
Correction of
2012 errors
$’000
Restated
2012
$’000
Net loss on non-financial assets
(35,956)
(17,345)
(53,301)
Total administered other economic flows included in net
result
(35,956)
(17,345)
(53,301)
4,609
(17,345)
(12,736)
48,643
(17,345)
31,298
Comprehensive operating statement (Extract)
Notes
Other economic flows included in net result
Administered net result
Administered comprehensive result
Department of Environment and Primary Industries 2013 – 14 Annual Report
110
(d) Leases
(i) Disclosures for lessees – finance lease liabilities
Commissioned public private partnership – Victorian Desalination Plant
The State of Victoria entered into a 30-year Public Private Partnership (PPP) arrangement with the AquaSure consortium (AquaSure)
on 30 July 2009. The project was initiated to design, build and operate a desalination plant capable of supplying 150 gigalitres of water
per annum into the Melbourne network. Construction of the desalination plant in Wonthaggi began in September 2009.
The state, AquaSure and SPI PowerNet entered into arrangements for the purchase, use and operation of the High Voltage
Alternating Current (HVAC) transmission line assets on 14 December 2012. These arrangements are reflected in the minimum lease
payments disclosed below. The lease term commenced upon the achievement of commercial acceptance on 17 November 2012,
which is when the desalination plant was first operational at its 150 gigalitre per annum capacity. The Project Deed that governs the
PPP requires AquaSure to transfer the project assets to the state at the end of the project term for no additional payment by the state.
Under the arrangement, the state has an obligation to make Water Security Payments (WSPs) to the consortium provided the plant is
maintained to the appropriate standard. The WSPs have two components: finance lease payments for the project assets (refer to
table 3.1 below) and other expenses for operating, maintenance and lifecycle costs (refer to Note 3(e)(i) and Table 3.3).
The state will also make Water Usage Payments (WUPs) for any water that is ordered and delivered to the required standard. Water
is ordered annually for flexible amounts from 0 to 150 gigalitres (in set increments).
The state’s lease liability to AquaSure is offset by a sub-lease agreement between the department, on behalf of the state, and the
Melbourne Water Corporation (refer to Note 3(d)(ii) and Table 3.2). Melbourne Water Corporation has recognised the finance lease
asset.
The department does not control the income arising under this sub-lease and is required to pay receipts from the Melbourne Water
Corporation into the state’s consolidated fund. The PPP arrangement does not form part of the department’s output cost, so funding to
meet the payments to AquaSure is provided through an administered parliamentary appropriation, Payments on Behalf of the State
(POBOS). The department has therefore classified this item as administered, in accordance with the requirements of AASB 1050
Administered Items and BFMG 60 Administered Items.
In October 2013, the state approved AquaSure to refinance its external debt. The refinancing resulted in the state being entitled to a
refinancing benefit of $187 million under the Victorian Desalination Plant Project Deed. The Victorian Desalination Plant Project Deed
entitles the state to an adjustment to the water service payments in the original financial model to reflect the changes in refinancing
costs incurred by AquaSure. The modification does not have any impact on the lease liability position at the date of refinancing.
However the lease liability and interest expense profile in the periods post the refinance have been adjusted to reflect the refinancing
adjustment.
Table 3.1: Victorian Desalination Plant finance lease liability
Minimum future lease
payments
Present value of minimum
future lease payments (i)
2014
$’000
2013
$’000
2014
$’000
2013
$’000
504,150
539,190
37,176
54,486
1,990,556
2,087,670
163,472
212,987
Longer than five years
10,141,568
10,723,730
4,064,157
4,048,550
Minimum future lease payments
12,636,274
13,350,590
4,264,805
4,316,023
Less future finance charges
(8,371,469)
(9,034,567)
0
0
4,264,805
4,316,023
4,264,805
4,316,023
4,264,805
4,316,023
Commissioned PPP related finance lease liabilities payable
Not longer than one year
Longer than one year but no later than five years
Present value of minimum lease payments
Included in administered assets and liabilities as:
Interest-bearing liabilities (Note 3 (b))
Note:
(i) The present value of the ‘Minimum future lease payments’ has been discounted to 30 June of the respective financial years using the interest rate
implicit in the lease. This value excludes the finance charges.
Department of Environment and Primary Industries 2013 – 14 Annual Report
111
(d) Leases (continued)
(ii) Disclosures for lessors – finance lease receivables
Victorian Desalination Plant sub-lease
The Minister for Water issued a Statement of Obligations (SoO) to the Melbourne Water Corporation under section 4I of the Water
Industry Act 1994 on 26 June 2009. The SoO requires the Melbourne Water Corporation to pay all monies payable by the state under
the project deed with AquaSure. This arrangement gives rise to a finance lease receivable equal to the value of the finance lease
liability disclosed in Note 3(d)(i). The lease term commenced upon the achievement of commercial acceptance on 17 November
2012, triggering the recognition of the finance lease receivable.
Under the arrangement, the Melbourne Water Corporation has an obligation to make project deed payments. The portions of the
project deed payments that relate to the right to use the project assets are accounted for as a finance lease as disclosed in the Table
3.2. In addition, the project deed payments also include other commitments for operating, maintenance and lifecycle costs (refer to
Note 3(e) and Table 3.3).
The department will transfer the desalination plant assets to the Melbourne Water Corporation at the end of the project contract term.
Table 3.2: Victorian Desalination Plant finance lease receivable
Minimum future lease
receivables
Present value of minimum
future lease receivables (i)
2014
$’000
2013
$’000
2014
$’000
2013
$’000
504,150
539,190
37,334
54,642
1,990,556
2,087,670
164,125
213,633
Longer than five years
10,141,568
10,723,730
4,066,702
4,051,260
Minimum future lease receivables
12,636,274
13,350,590
4,268,161
4,319,535
Less unearned finance income
(8,368,113)
(9,031,055)
0
0
4,268,161
4,319,535
4,268,161
4,319,535
4,268,161
4,319,535
Finance lease receivables
Not longer than one year
Longer than one year but not longer than five years
Present value of minimum lease receivables
Included in administered assets and liabilities as:
Finance lease receivables (Note 3 (b))
Note:
(i) The present value of the ‘Minimum future lease receivables’ (that is, the gross investment in the lease) has been discounted to 30 June of the
respective financial years using the interest rate implicit in the lease to determine the ‘Present value of minimum lease receivables’ (that is, the net
investment in the lease).
(ii) The state, AquaSure and SPI PowerNet entered into arrangements for the purchase, use and operation of the HVAC transmission line assets on
14 December 2012. The net gain on the sale was passed on to Melbourne Water Corporation as one adjustment to the sublease.
(e) Commitments
(i) PPP related commitments – Victorian Desalination Plant
Under the PPP arrangement that the state entered into with AquaSure (refer to Note 3(d)(i)) the state pays a base Water Security
Payment, provided the plant is maintained to the appropriate standard, that includes other commitments for its operation,
maintenance and lifecycle costs. The nominal amounts for the other commitments below represent the charges payable under the
agreement at the end of the reporting period.
Department of Environment and Primary Industries 2013 – 14 Annual Report
112
The Project Deed requires a minimum number of Renewable Energy Certificated (RECs) to be purchased to offset the electricity used
by the plant. The number of RECs that are consumed will vary based on the volume of water produced by the plant. If there are any
surplus RECs at the end of the project term, the Project Deed requires AquaSure to transfer them to the state, or sell them on arms
length commercial terms on behalf of the state with all proceeds paid to the state. The department will transfer any surplus RECs or
proceeds from sales thereof to the Melbourne Water Corporation at the end of the project contract term.
Table 3.3: Victorian Desalination Plant PPP commitments
2014
2013
Other commitments
Other commitments
Commissioned PPP – other commitments
Present
value
$’000
Nominal
value
$’000
Present
value
$’000
Nominal
value
$’000
Victorian Desalination Plant (i) (ii)
1,532,413
5,100,433
1,513,949
5,265,351
Total
1,532,413
5,100,433
1,513,949
5,265,351
Notes:
(i) Refer to Note 3(d) for the finance lease liabilities for the Victorian Desalination Plant project. This note discloses only the other capital and operating
and maintenance commitments for this project.
(ii) Other committments for the previous reporting year 2013 have been restated in nominal terms by $261.061 million (inclusive of GST) for the Project
Term to 2039, to include additional CPI, electricity related charges and land tax. This is now consistent with what has been included and reported
for the 2014 reporting year, and as publicly released, and has not resulted in any increase in contract costs.
(iii) Refer to Note 3(e)(ii) and (iii) where net values are disclosed at nominal values, exclusive of GST.
(e) Commitments (continued)
(ii) Commitments payable
Table 3.4: Victorian Desalination Plant PPP other commitments payable
2014
$’000
2013
$’000
Not longer than one year
119,735
117,204
Longer than one year but not longer than five years
529,584
510,627
Longer than five years
4,451,114
4,637,520
Total PPP commitments for expenditure (inclusive of GST)
5,100,433
5,265,351
Less GST recoverable from the Australian Taxation Office
(463,675)
(478,668)
Total commitments for expenditure (exclusive of GST)
4,636,758
4,786,683
PPP commitments payable – Victorian Desalination Plant
Other commitments
Note:
(i) Other commitments for the previous reporting year 2013 have been restated in nominal terms by $261.061 million (inclusive of GST) for the Project
Term to 2039, to include additional CPI, related charges and land tax. This is now consistent with what has been included and reported for the 2014
reporting year, and as publicly released, and has not resulted in any increase in contract costs.
Department of Environment and Primary Industries 2013 – 14 Annual Report
113
(iii) Commitments receivable
Table 3.5: Victorian Desalination Plant PPP other commitments receivable
2014
$’000
2013
$’000
Not longer than one year
119,735
117,204
Longer than one year but not longer than five years
529,584
510,627
Longer than five years
4,451,114
4,637,520
Total commitments receivable (inclusive of GST)
5,100,433
5,265,351
Less GST payable to the Australian Taxation Office
(463,675)
(478,668)
Total commitments receivable (exclusive of GST)
4,636,758
4,786,683
PPP commitments receivable – Victorian Desalination Plant
Other commitments
Note:
(i) Other commitments for the previous reporting year 2013 have been restated in nominal terms by $261.061 million (inclusive of GST) for the Project
Term to 2039, to include additional CPI, related charges and land tax. This is now consistent with what has been included and reported for the 2014
reporting year, and as publicly released, and has not resulted in any increase in contract costs.
(f) Financial instruments
(i) Financial risk management objectives and policies
The principal financial instruments the department administers on behalf of the state are the finance lease liability payable and finance
lease asset receivable associated with the desalination plant.
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 the classes of financial asset and financial liability above
are disclosed in Note 1 to the financial statements.
The disclosures below relate exclusively to the Victorian Desalination Plant. Other administered financial instruments, such as
receivables and payables, are not considered significant for the evaluation of the department’s financial position and performance
with respect to administered items. For disclosures concerning the department’s controlled financial instruments refer to Note 24.
Financial instruments.
Table 3.6: Categorisation of financial instruments
2014
Contractual
financial
assets loans and
receivables
$’000
Contractual
financial
liabilities at
amortised
cost
$’000
4,268,161
0
2013
Total
$’000
Contractual
financial
assets - loans
and
receivables
$’000
Contractual
financial
liabilities at
amortised
cost
$’000
Total
$’000
0
4,268,161
4,319,535
0
4,319,535
4,264,805
4,264,805
0
4,316,023
4,316,023
Contractual financial assets
Finance lease receivable
Contractual financial liabilities
Finance lease liability
Department of Environment and Primary Industries 2013 – 14 Annual Report
114
Table 3.7: Net holding gain/(loss) on financial instruments by category
2014
Total interest
income/(exp
ense)
$’000
2013
Total
$’000
Total interest
income/(expe
nse)
$’000
Total
$’000
476,133
476,133
302,543
302,543
(476,294)
(476,294)
(302,687)
(302,687)
Contractual financial assets
Finance lease receivable
Contractual financial liabilities
Finance lease liability at amortised cost
(ii) Credit risk
Table 3.8: Credit quality of contractual financial assets that are neither past due nor impaired
2014
2013
Government
agencies
$’000
Total
$’000
Government
agencies
$’000
Total
$’000
4,268,161
4,268,161
4,319,535
4,319,535
Contractual financial assets
Finance lease receivable
(f) Financial instruments (continued)
Table 3.9: Ageing analysis of contractual financial assets
Past due but not impaired
Carrying
amount
$’000
Not past
due and
not
impaired
$’000
Less than
1 month
$’000
2–3
months
$’000
3 months–
1 year
$’000
1–5 years
$’000
5 years +
$’000
4,268,161
4,268,161
0
0
0
0
0
4,319,535
4,319,535
0
0
0
0
0
2014
Finance lease receivable
2013
Finance lease receivable
(iii) Liquidity risk
Department of Environment and Primary Industries 2013 – 14 Annual Report
115
Table 3.10: Maturity analysis of contractual financial liabilities
Maturity dates
Carrying
amount
$’000
Nominal
amount
$’000
Less than
1 month
$’000
2–3
months
$’000
3 months–
1 year
$’000
1–5 years
$’000
5 years +
$’000
4,264,805
12,636,274
44,959
86,109
373,082
1,990,556
10,141,568
4,316,023
13,350,590
44,959
89,873
404,358
2,087,670
10,723,730
2014
Finance lease liability
2013
Finance lease liability
(iv) Market risk
Table 3.11: Interest rate exposure of financial instruments
2014
2013
Interest rate
exposure
Interest rate
exposure
Weighted
average
interest rate
%
Carrying
amount
$’000
Fixed
interest rate
$’000
Weighted
average
interest rate
%
Carrying
amount
$’000
Fixed interest
rate
$’000
11.04
4,268,161
4,268,161
11.29
4,319,535
4,319,535
11.05
4,264,805
4,264,805
11.29
4,316,023
4,316,023
Financial assets
Finance lease receivable
Financial liabilities
Finance lease liability
(v) Fair value
Table 3.12: Comparison between carrying amount and fair value
2014
2013
Carrying
amount
$’000
Fair value
$’000
Carrying
amount
$’000
Fair value
$’000
4,268,161
4,268,161
4,319,535
4,319,535
4,264,805
4,264,805
4,316,023
4,316,023
Contractual financial assets
Finance lease receivable
Contractual financial liabilities
Finance lease liability
Department of Environment and Primary Industries 2013 – 14 Annual Report
116
Note 4. Income from transactions
2014
$’000
2013
$’000
5,112
2,307
0
6
5,112
2,313
40,947
39,568
Sales of goods and livestock
2,549
668
Regulatory fees and charges
11,810
100
Refunds and reimbursements
3,890
2,198
59,196
42,534
Metropolitan Parks Improvement Rate (i)
150,983
136,763
Total Metropolitan Parks Improvement Rate
150,983
136,763
Specific purpose grants
43,404
35,555
General purpose grants
2,683
0
46,087
35,555
Land at fair value
0
5,000
Total fair value of assets received free of charge or for nominal consideration
0
5,000
Other miscellaneous income
6,166
11,442
Total other income
6,166
11,442
(a) Interest
Interest from financial assets not at fair value through profit or loss:
Interest on cash deposits and investments
Other interest income
Total interest
(b) Sales of goods and services
Rendering of services
Total sale of goods and services
(c) Metropolitan Parks Improvement Rate
(d) Grants
Total grants
(e) Fair value of assets received free of charge or for nominal consideration:
(f) Other income
Note:
(i) Metropolitan Parks Improvement Rate
This rate commonly known as the ‘parks charge’ is an annual levy on all commercial and residential properties in the Melbourne and metropolitan
areas. The Water Industry Act 1994 determines how the parks charge is to be levied and requires that money collected be spent on developing and
managing open space, parks, waterways and bays within the metropolitan area for the purposes of conservation, recreation, leisure, tourism and
navigation.
The parks charge is paid into the Parks and Reserves Trust Account controlled by the department on behalf of the Minister for Environment and
Climate Change. By agreement with the department, the parks charge is billed and collected by the three metropolitan retail water corporations and
is paid directly into the trust account. For 2013–14 the minimum charge was levied at the rate of $68.47 (2013: $66.80) and the rate in the dollar of
Department of Environment and Primary Industries 2013 – 14 Annual Report
117
Net Annual Value was 0.412 cents (2013: 0.402 cents).
During the 2013–14 financial year a total of $148.239 million was disbursed from the trust (in 2013, $130.275 million was disbursed for the full
financial year) for the following purposes:
Parks Victoria
Zoological Parks and Gardens Board
Royal Botanic Gardens
Shrine of Remembrance
Purchase of public open space
Other projects approved by the Minister in line with the Water Industry Act 1994.
(ii) The grants comparatives have been reclassified. Refer to Note 1(w) Comparative amounts for more information.
Department of Environment and Primary Industries 2013 – 14 Annual Report
118
Note 5. Expenses from transactions
2014
$’000
2013
$’000
(19,250)
(12,674)
(7,325)
(5,727)
(2,455)
(12,787)
(290,858)
(205,332)
Leave expenses (annual leave and long service leave)
(36,138)
(27,656)
Other on-costs (fringe benefits tax, payroll tax and workcover levy)
(21,567)
(12,062)
(377,593)
(276,238)
(28,020)
(11,638)
Buildings leasehold improvements
(167)
(1,612)
Motor vehicle finance lease assets
(11,729)
(10,212)
Plant, machinery and equipment
(15,693)
(9,165)
Roads
(13,064)
(13,060)
(16)
(16)
(68,689)
(45,703)
(792)
(903)
(69,481)
(46,606)
(23,776)
(1,869)
(a) Employee expenses
Post-employment benefits
Defined contribution superannuation expense
Defined benefit superannuation expense
Termination benefits
Salaries and wages
Total employee expenses
(b) Depreciation
Property, plant and equipment
Buildings and structures
Historic and cultural assets
Total depreciation of property, plant and equipment
Intangible assets
Software and other intangible assets
Total depreciation
(c) Interest expense
Interest on finance leases (i)
Department of Environment and Primary Industries 2013 – 14 Annual Report
119
(61)
0
(23,837)
(1,869)
Grants to portfolio agencies
(257,729)
(302,927)
Grants to catchment management authorities
(112,815)
(121,858)
(33,105)
(8,942)
0
(8,955)
Grants to the Commonwealth, other state, territory and local governments
(20,478)
(29,239)
Grants to private individuals, businesses and non-profit organisations
(35,620)
(21,997)
(370)
(183)
(460,117)
(494,101)
Other interest expense
Total interest expense
(d) Grants and other transfers
Grants to non-portfolio agencies
Grants to former DPI research institutes
Other grants and transfers
Total grants and other transfers
Note:
(i) Of the balance in ‘interest on finance leases’, $22.505 million (2013: $0 million) relates to assets contracted under the Royal Melbourne
Showgrounds and Biosciences Research Centre PPP arrangements. Refer to Note 14. Property, Plant and Equipment and Note 18. Borrowings.
2014
$’000
2013
$’000
(3,067)
(2,039)
(253,518)
(172,387)
Equipment maintenance and hire
(62,890)
(58,213)
General expenses
(54,211)
(26,725)
IT costs
(27,295)
(9,259)
Laboratory, farm and livestock expenses
(18,014)
(1,132)
Motor vehicle costs
(13,984)
(8,104)
Office and accommodation
(46,047)
(31,507)
(6,862)
(5,909)
(20,449)
(24,816)
(e) Supplies and services
Community awareness and publicity
Contract and professional services
Office expenses
Payments for shared services
Department of Environment and Primary Industries 2013 – 14 Annual Report
120
Postage and telephone
(13,365)
(14,819)
Travel and subsistence
(10,273)
(7,488)
(529,975)
(362,398)
Services
(68)
0
Total fair value of assets and services provided free of charge or for nominal consideration
(68)
0
Minimum lease payments - operating leases
(1,769)
(1,393)
Total operating lease rental expenses
(1,769)
(1,393)
Sub-total
(1,837)
(1,393)
Cost of goods sold/distributed
(5,221)
(5,774)
Ex-gratia payments (see Note 28)
(49)
(105)
Research and development costs immediately expensed
(57)
(6)
(294)
(531)
(7,458)
(7,809)
Total supplies and services
(f) Other operating expenses
Fair value of assets and services provided free of charge or for nominal consideration:
Operating lease rental expenses:
Settlement of litigation (i)
Total other operating expenses
Note:
(i) 2013–14 amount predominantly relate to the settlement of various claims including those from the forestry and agricultural industries. 2012–13
amounts predominantly related to the settlement of various land registry claims.
Department of Environment and Primary Industries 2013 – 14 Annual Report
121
Note 6. Other economic flows included in net result
2014
$’000
2013 (i)
$’000
Net gain on disposal of property, plant and equipment
7,321
10,410
Loss arising from changes in fair value of biological assets (Note 15)
1,170
0
Loss attributable to demise of livestock (Note 15)
(131)
0
(10,819)
212,222
0
(301)
Write-down of property, plant and equipment and intangible assets
(1,328)
(1,689)
Total net gain/(loss) on non-financial assets
(3,787)
220,642
Increase/(impairment) of receivables (ii)
(21)
(39)
Total net gain/(loss) on financial instruments
(21)
(39)
Share of net profits of associates, excluding dividends
0
4,019
Total share of profits of associates, excluding dividends
0
4,019
(1,074)
834
16
4,197
(1,058)
5,031
(a) Net gain/(loss) on non-financial assets
Net recognition/(derecognition) of non-financial assets (Note 1(m))
Write-down of inventory
(b) Net gain/(loss) on financial instruments
(c) Share of net profits of associates, excluding dividends
(d) Other gains/(losses) from other economic flows
Net gain/(loss) arising from revaluation of employee benefits
(iii)
Other provision discount rate adjustments
Total other gains/(losses) from other economic flows
Notes:
(i) This item represents the net (increase)/decrease in the provision for doubtful debts, the unilateral write off of bad debts and other debt from other
economic flows – refer to Note 1(i).
(ii) Revaluation gain/(loss) due to changes in bond rates.
Note 7. Revision of accounting estimates
Reassessment of estimated useful lives of assets
During the financial year the department reassessed the estimated total useful lives of certain assets including items of plant and
equipment (to better reflect the period for which these assets are retained). This resulted in an adjustment to useful lives from 3 to 33
years to 1 to 30 years.
Assuming the assets are held until the end of their estimated useful lives, departmental depreciation in relation to these assets will be
reduced by the following amounts for the next 4 years: $1,024 in 2014; $186 in 2015; $876 in 2016; and $770 in 2017.
Refer to Note 1(h) for the department’s depreciation accounting policy.
Department of Environment and Primary Industries 2013 – 14 Annual Report
122
Note 8. Receivables
2014
$’000
2013
$’000
11,800
18,579
Provision for doubtful contractual receivables (i) (Notes 8(a), 24)
(152)
(34)
Contributions receivable (share of joint venture) (Note 11)
5,754
0
Accrued income (ii) (Note 24)
705
162
Accrued interest (ii) (Note 24)
0
29
18,107
18,736
181,631
134,467
10,417
7,285
192,048
141,752
210,155
160,488
23,241
0
23,241
0
33,372
44,130
33,372
44,130
56,613
44,130
266,768
204,618
Current receivables
Contractual
Trade receivables (i) (Note 24)
Statutory
Amounts owing from Victorian Government (iii)
GST input tax credit recoverable
Total current receivables
Noncurrent receivables
Contractual
Contributions receivable (share of joint venture) (Note 11)
Statutory
Amounts owing from Victorian Government (iii)
Total noncurrent receivables
Total receivables
Notes:
(i) The average credit period on sales of goods and services and for other receivables is 30 days. No interest is charged on trade debtors for the first
30 days from the date of the invoice. Thereafter, interest is charged at 11.5% p.a. (2013: 10.5% p.a.) on the outstanding balance of invoices relating
to forest activities and land licences. The interest rate is determined under the Penalty Interest Rate Act 1983. A provision has been made for
estimated irrecoverable amounts from the sale of goods when there is objective evidence that an individual receivable is impaired. The movement
in the allowance of $(118,000) (2013: $38,000) was recognised in the operating result for the current financial year.
(ii) No interest is charged on accrued receivables for the outstanding balance. An allowance is made for estimated irrecoverable amounts from the
sale of goods, determined by reference to past default experience. No such allowance has been made in this financial year for accrued receivables.
(iii) The amounts recognised from Victorian Government represent funding for all commitments incurred through the appropriations and are drawn
from the Consolidated Fund as the commitments fall due.
Department of Environment and Primary Industries 2013 – 14 Annual Report
123
2014
$’000
2013
$’000
34
72
0
0
Reversal of provision of receivables written off during the year as uncollectible
(97)
(59)
Increase in provision recognised in the net result
123
21
92
0
152
34
2014
$’000
2013
$’000
Australian dollar term deposits greater than three months (i)
26,813
20,143
Total investments and other financial assets
26,813
20,143
(a) Movement in the provision for doubtful debts
Balance at 1 July
Reversal of unused provision recognised in the net result
Capital contributions from the Crown – transfer from the former Department of Primary Industries
Balance at 30 June
(b) Ageing analysis of receivables
Refer to Table 24.3 in Note 24. Financial instruments for the ageing analysis of contractual receivables.
(c) Nature and extent of risk arising from receivables
Refer to Note 24. Financial instruments for the nature and extent of risks arising from contractual receivables.
Note 9. Investments and other financial assets
Current investments and other financial assets
Term deposits:
Note:
(i) Relates to trust fund term deposits
Department of Environment and Primary Industries 2013 – 14 Annual Report
124
Note 10. Investments accounted for using the equity method
Associates accounted for using the equity method
The department had an investment in an associate entity, National E-Conveyancing Development Limited (NECDL). NECDL was
established in January 2010 to develop a single national electronic conveyancing system for settling property transactions.
The department’s investment in NECDL was transferred to the Department of Transport, Planning and Local Infrastructure on 1 July
2013. Refer to Note 34. Restructure of Administrative Arrangements for more information on the transfer.
Ownership interest
2014
Country of
incorporation
2013
%
$’000
%
$’000
0
0
13.9
14,412
Non-current investments in associates
National E-Conveyancing Development
Limited
Australia
Total investments
0
14,412
2014
$’000
2013
$’000
Current assets
0
64,622
Non-current assets
0
49,605
Total assets
0
114,227
Current liabilities
0
9,928
Non-current liabilities
0
320
Total liabilities
0
10,248
Net assets
0
103,979
Share of associate’s net assets
0
14,412
Summarised financial information of associate:
Department of Environment and Primary Industries 2013 – 14 Annual Report
125
Note 11. Investments accounted for using the proportionate consolidation method
On 1 July 2013, the department assumed responsibility for the Royal Melbourne Showgrounds and Biosciences Research Centre
joint ventures transferred from the former Department of Primary Industries. Refer to Note 34. Restructure of administrative
arrangement for more information on the resulting transfers.
Royal Melbourne Showgrounds
In October 2003, the state, represented by the former Department of Primary Industries entered into a joint venture agreement with
the Royal Agricultural Society of Victoria Limited (RASV) to redevelop the Royal Melbourne Showgrounds. The agreement came into
effect on 30 June 2005.
Two joint venture structures have been established, an unincorporated joint venture to carry out and deliver the joint venture project,
and an incorporated joint venture entity, Showgrounds Nominees Pty Ltd, to hold the assets of the joint venture and to enter into
agreements on behalf of the state and RASV.
The state’s contribution to the joint venture is $100.7 million (expressed in 2004 dollars) while RASV has contributed its freehold title
to the showgrounds land valued at $51 million in June 2005. In June 2006, Showgrounds Nominees Pty Ltd entered into a
Development and Operations Agreement (on behalf of the state and RASV) with the concessionaire, PPP Solutions (Showgrounds)
Nominee Pty Ltd, to design, construct, finance and maintain the new facilities at the showgrounds.
The project operation term is 25 years from the date of commercial acceptance of completed works which occurred in August 2006.
The joint venture project is being delivered under the Partnerships Victoria Policy framework.
Biosciences Research Centre
In April 2008, the State, represented by the former Department of Primary Industries entered into a joint venture agreement with La
Trobe University (La Trobe) to establish a world class research facility at the University’s Melbourne campus in Bundoora. The facility
will be known as AgriBio, Centre for AgriBioscience. A similar structure to the Showgrounds Joint Venture has been adopted
comprising an unincorporated joint venture to carry out and deliver the joint venture project, and an incorporated joint venture entity,
Biosciences Research Centre Pty Ltd to hold the assets of the joint venture and to enter into agreements on behalf of the state and La
Trobe.
The state’s contribution to the joint venture is $227.3 million (expressed in May 2009 dollars), while La Trobe’s contribution is $60.4
million (expressed in May 2009 dollars).
On 30 April 2009, Biosciences Research Centre Pty Ltd entered into a Project Agreement (on behalf of the state and La Trobe) with
Plenary Research Pty Ltd (the Concessionaire) to design, construct, finance and maintain the facility over the project’s operating
term. The project’s operating term is 25 years from the date of commercial acceptance which occurred 18 July 2012. The joint venture
project is being delivered under the Partnerships Victoria Policy framework.
The department pays quarterly service payments in full each quarter as they fall due, with La Trobe reimbursing the state to its agreed
share.
La Trobe has elected to pay its contribution in part upfront.
In addition, La Trobe contributes on a quarterly basis 25 percent of the general facilities management, maintenance and minor work
costs associated with the services.
In accordance with the Joint Venture Agreement, the participants are required to fund the administration expenses of the joint venture
in equal shares 50:50.
Ownership interest
Name of entity
Principal activity
Royal Melbourne Showgrounds
To carry out the redevelopment
of the Royal Melbourne
Showgrounds.
Biosciences Research Centre
To establish a world class
research facility.
Country of
incorporation
2014
%
2013
%
Australia
50
0
Australia
75
0
Joint ventures accounted for using the proportionate consolidation method
The department’s interest in assets, liabilities, income, and expenses employed in the above joint ventures is detailed below. The
amounts are included in the financial statements under their respective asset categories.
Department of Environment and Primary Industries 2013 – 14 Annual Report
126
2014
$’000
2013
$’000
430
0
5,755
0
227
0
6,412
0
Receivables – contributions receivable (Note 8)
23,241
0
Property, plant and equipment
92,244
0
Total non-current assets
115,485
0
Total assets
121,897
0
Payables
1,710
0
Borrowings (Note 18)
1,099
0
295
0
3,104
0
45,730
0
2,422
0
Total non-current liabilities
48,152
0
Total liabilities
51,256
0
Income
3,211
0
Expenses
7,863
0
Royal Melbourne Showgrounds
Current assets
Cash and deposits
Receivables – contributions receivable (Note 8)
Receivables – accrued income (Note 8)
Total current assets
Non-current assets
Current liabilities
Unearned income
Total current liabilities
Non-current liabilities
Borrowings (Note 18)
Unearned income
Department of Environment and Primary Industries 2013 – 14 Annual Report
127
Bioscience Research Centre
Non-current assets
146,383
0
32,723
0
Total non-current assets
179,106
0
Total assets
179,106
0
Payables
6,024
0
Borrowings (Note 18)
1,362
0
Total current liabilities
7,386
0
Borrowings (Note 18)
200,812
0
Total non-current liabilities
200,812
0
Total liabilities
208,198
0
Income
23,919
0
Expenses
29,403
0
Property, plant and equipment
Intangible assets
Current liabilities
Non-current liabilities
Contingent liabilities and commitments
Contingent liabilities and commitments arising from department’s interests in joint ventures are disclosed in Note 22. Commitments
for expenditure and Note 23. Contingent assets and contingent liabilities.
Department of Environment and Primary Industries 2013 – 14 Annual Report
128
Note 12. Inventories
2014
$’000
2013
$’000
11,084
9,047
30
30
1,739
1,768
331
0
63
124
1,403
1,570
14,650
12,539
365
336
15,015
12,875
2014
$’000
2013
$’000
Land held for sale – at carrying amount
491
57
Finance lease motor vehicles – held for sale
279
517
Total non-financial physical assets classified as held for sale
770
574
Current inventories
Supplies and consumables – at cost
Fire stores
Publications held for distribution
Seed bank
Farm produce
Weedicides
Other stores and materials
Inventories held for distribution
Publications held for sale – at cost
Total inventories
Note 13. Non-financial physical assets classified as held for sale
Non-financial physical assets classified as held for sale
Land held for sale represents the carrying amount of Crown land deemed surplus to the needs of the state. As Crown land is unalienated from the
Crown, it does not have a cost of acquisition. No development costs have been incurred in preparing this land for sale. The department intends to
dispose of this land within the next 12 months.
Finance lease motor vehicles held for sale represent vehicles identified for immediate disposal in their current condition through the VicFleet disposal
process. It is anticipated that these disposals will be completed within the next 12 months.
Department of Environment and Primary Industries 2013 – 14 Annual Report
129
2014
$’000
2013
$’000
Balance at 1 July
574
2,543
Reclassification of land held for sale from Crown land (Note 14)
491
57
Reclassification of vehicles held for sale from plant and equipment (Note 14)
279
517
(697)
(2,543)
Capital contributions from the Crown – transfer from the former Department of Primary Industries (Note
34)
123
0
Balance at 30 June
770
574
Movements in non-financial physical assets classified as held for sale
Disposals
Fair value measurement of non-financial physical assets classified as held for sale
Land and motor vehicles held for sale are carried at fair value less costs to disposal. Refer to Note 14. Property, Plant and Equipment
for the valuation technique of land and motor vehicles under finance lease.
To the extent that non-financial physical assets classified as held for sale do not contain significant, unobservable adjustments, these
assets are classified as Level 2 under the market approach.
Department of Environment and Primary Industries 2013 – 14 Annual Report
130
Note 14. Property, plant and equipment
2014
$’000
2013 (i)
$’000
2012 (i)
$’000
At fair value
0
5,800
0
Total freehold land
0
5,800
0
At fair value
2,410,098
2,392,796
2,233,180
Total Crown land – Land and unused roads
2,410,098
2,392,796
2,233,180
At fair value
1,067,417
1,065,405
1,063,085
Total Crown land – National parks
1,067,417
1,065,405
1,063,085
At fair value
1,157,687
1,150,492
1,149,674
Total Crown land – State forests
1,157,687
1,150,492
1,149,674
At fair value
666,228
660,734
660,392
Total Crown land – Conservation reserves
666,228
660,734
660,392
At fair value
311,250
311,235
308,802
Total Crown land – Metropolitan parks
311,250
311,235
308,802
At fair value (ii)
386,032
84,397
74,324
Total Crown land – Land used for operational purposes
386,032
84,397
74,324
5,998,712
5,670,859
5,489,457
Land
Freehold land
Crown land – Land and unused roads
Crown land – National parks
Crown land – State forests
Crown land – Conservation reserves
Crown land – Metropolitan parks
Crown land – Land used for operational purposes
Total land
Department of Environment and Primary Industries 2013 – 14 Annual Report
131
Buildings and structures (ii)
At fair value
Less accumulated depreciation
Total buildings and structures
907,184
537,599
488,494
(106,014)
(49,166)
(37,927)
801,170
488,433
450,567
1,045,084
1,044,988
1,044,767
(39,181)
(26,116)
(13,056)
1,005,903
1,018,872
1,031,711
196,327
98,238
93,283
(141,796)
(64,222)
(55,780)
54,531
34,016
37,503
61,562
46,620
53,320
(23,615)
(19,016)
(24,607)
37,947
27,604
28,713
92,478
61,620
66,216
Roads
At fair value
Less accumulated depreciation
Total roads
Plant and equipment
At fair value
Less accumulated depreciation
Motor vehicles under finance lease at fair value
Less accumulated amortisation
Total plant and equipment
Notes:
(i) Refer to Note 35. Correction of prior year errors for details.
(ii) Of the balance in ‘property, plant and equipment’, $238.627 million (2013: $0 million) relates to assets contracted under the Royal Melbourne
Showgrounds and Bioscience Research Centre PPP arrangements. Refer to Note 11. Investments accounted for using the proportionate consolidation
method and 18. Borrowings.
2014
$’000
2013 (i)
$’000
2012 (i)
$’000
112,484
58,817
57,526
0
70
271
28,014
17,386
6,146
140,498
76,273
63,943
Assets under construction at cost
Buildings and structures
Roads
Plant and equipment
Total assets under construction at cost
Department of Environment and Primary Industries 2013 – 14 Annual Report
132
Historic and cultural assets
At fair value
Less accumulated depreciation
Total historic and cultural assets
Total property, plant and equipment
1,741
1,552
1,561
(63)
(42)
(28)
1,678
1,510
1,533
8,040,439
7,317,567
7,103,427
Notes:
(i) Refer to Note 35. Correction of prior year errors for details.
Department of Environment and Primary Industries 2013 – 14 Annual Report
133
Table 14.1: Movements in carrying amounts – All departmental assets are in the ‘Public Safety and Environment’ purpose group
Land used
for
operational
purposes
$’000
Buildings
and
structures
$’000
Roads
$’000
308,802
74,324
450,567
1,031,711
66,216
63,943
1,533
7,115,463
18,297
0
0
0
0
0
0
0
(12,036)
1,149,674
660,392
308,802
74,324
450,567
1,031,711
66,216
63,943
1,533
7,103,427
1
0
51
27
12,491
2,699
0
15,270
42,735
0
79,074
(1,176)
0
0
0
0
0
(1,282)
0
(4,508)
0
0
(6,966)
0
(57)
0
0
0
0
0
0
0
(517)
0
0
(574)
0
5,000
0
0
0
0
0
0
0
0
0
0
5,000
0
2,143
24
0
0
0
0
(277)
0
(366)
0
0
1,524
(10,450)
(2,621)
0
0
0
0
0
0
0
(197)
0
(7)
(13,275)
0
(19,607)
0
0
0
0
0
0
0
0
0
0
(19,607)
Net transfers in/(out) – from other
categories (refer to Note 16)
5,917
(9,263)
2,278
818
254
2,406
(2,410)
22,925
221
5,099
(28,774)
0
(529)
Revaluation increments /
(decrements)
4,533
56
17
0
0
0
0
0
0
0
0
0
4,606
Recognition / (derecognition),
(write-down) of assets
0
185,141
0
0
37
0
(8)
27,051
0
0
(1,631)
0
210,590
Depreciation expense (refer to Note
5(b))
0
0
0
0
0
0
0
(13,250)
(13,060)
(19,377)
0
(16)
(45,703)
Net effect of correction of prior year errors
0
0
0
0
0
0
0
0
0
0
0
0
0
5,800
2,392,796
1,065,405
1,150,492
660,734
311,235
84,397
488,433
1,018,872
61,620
76,273
1,510
7,317,567
Freehold
land
$’000
Land and
unused
roads
$’000
National
parks
$’000
Balance at 1 July 2012
0
2,267,128
1,059,470
1,149,674
642,095
Net effect of correction of prior year
error (i)
0
(33,948)
3,615
0
Restated balance at 1 July 2012 (i)
0
2,233,180
1,063,085
Additions
5,800
0
Disposals
0
Reclassification to asset classified as
held for sale (refer to Note 13)
Net transfers in/(out) – free of charge
State Conservation Metropolitan
forests
reserves
parks
$’000
$’000
$’000
Assets Historic and
Plant and
under
cultural
equipment construction
assets
$’000
$’000
$’000
Total
$’000
Capital contributions (to)/from owners
Transfers (to)/from other
government entities
Transfers to administered entity
for disposal
Transfers to third parties
(i)
Restated balance at 1 July 2013 (i)
Note:
(i) Refer to Note 35. Correction of prior year errors for details.
Department of Environment and Primary Industries 2013 – 14 Annual Report
134
Land used
for
operational
purposes
$’000
Buildings
and
structures
$’000
Roads
$’000
311,235
84,397
488,433
1,018,872
61,620
76,273
1,510
7,317,567
1
15
37,434
1,280
0
41,770
49,746
1
130,269
0
0
0
0
(20)
0
(19,029)
0
0
(19,049)
0
0
0
0
0
0
0
(279)
0
0
(770)
0
0
0
0
0
0
0
0
0
0
0
0
0
(3,573)
0
0
(368)
0
0
0
0
0
0
0
(3,941)
Machinery of government transfer in
(Note 34)
0
0
0
0
0
0
318,749
331,391
25
40,756
40,424
54
731,399
Machinery of government transfer
out (Note 34)
0
0
0
0
0
0
0
(10,449)
0
(1,355)
0
0
(11,804)
Transfers to administered entity for
disposal
0
(17,040)
0
0
0
0
0
(2,798)
0
(4,220)
0
(26)
(24,084)
Transfers to third parties
0
(2,089)
0
0
0
0
0
0
0
0
0
0
(2,089)
(5,800)
25,256
2,008
7,195
5,861
0
(34,400)
21,249
70
416
(21,850)
(5)
0
Revaluation increments / (decrements)
0
5,997
0
0
0
0
0
0
0
0
0
160
6,157
Recognition / (derecognition),
(write-down) of assets
0
9,224
0
0
0
0
(20,148)
271
0
2,601
(4,095)
0
(12,147)
Depreciation expense (refer to Note
5(b))
0
0
0
0
0
0
0
(28,187)
(13,064)
(29,802)
0
(16)
(71,069)
Balance at 30 June 2014
0
2,410,098
1,067,417
1,157,687
666,228
311,250
386,032
801,170
1,005,903
92,478
140,498
1,678
8,040,439
Freehold
land
$’000
Land and
unused
roads
$’000
National
parks
$’000
5,800
2,392,796
1,065,405
1,150,492
660,734
Additions
0
18
4
0
Disposals
0
0
0
Reclassification to asset classified as
held for sale (refer to Note 13)
0
(491)
Net transfers in/(out) – free of charge
0
Transfers (to)/from other
government entities
Restated balance at 1 July 2013 (i)
State Conservation Metropolitan
forests
reserves
parks
$’000
$’000
$’000
Assets Historic and
Plant and
under
cultural
equipment construction
assets
$’000
$’000
$’000
Total
$’000
Capital contributions (to)/from owners
Net transfers in/(out) – from other
categories
Note:
(i) Refer to Note 35. Correction of prior year errors for details.
Department of Environment and Primary Industries 2013 – 14 Annual Report
135
Table 14.2 Fair value measurement hierarchy for assets as at 30 June 2014
Carrying
amount as at
30 June 2014
$’000
Fair value measurement at end of reporting
period using:
Level 1 (i)
$’000
Level 2 (i)
$’000
Level 3 (i)
$’000
Land at fair value
Specialised land
Crown land – Land and unused roads
2,410,098
0
0
2,410,098
Crown land – National parks
1,067,417
0
0
1,067,417
Crown land – State forests
1,157,687
0
0
1,157,687
Crown land – Conservation reserves
666,228
0
0
666,228
Crown land – Metropolitan parks
311,250
0
0
311,250
Crown land – Land used for operational purposes
336,032
0
0
336,032
801,170
0
0
801,170
1,005,903
0
0
1,005,903
Plant and equipment
54,531
0
0
54,531
Motor vehicles under finance lease
37,947
0
37,947
0
1,678
0
1,678
0
Buildings and structures at fair value
Specialised buildings and structures
Roads at fair value
Roads
Plant and equipment at fair value
Historic and cultural assets at fair value
Artwork and historic assets
Note:
(i) Classified in accordance with the fair value hierarchy, refer to Note 1(b).
Assets under construction are excluded from the table above.
There have been no transfers between levels during the period.
Specialised land
The market based direct comparison method is used for specialised land although is adjusted for the community service obligation
(CSO) to reflect the specialised nature of the land being valued.
Valuation of the land was determined by analysing comparable sales and allowing for share, size, topography, location and other
relevant factors specific to the land being valued.
The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that
Department of Environment and Primary Industries 2013 – 14 Annual Report
136
is also equally applicable 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 and Structures
For the department’s majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the associated
depreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are
classified as Level 3 fair value measurements.
An independent valuation of the departments’ specialised land and specialised buildings was performed by the Valuer-General
Victoria. The valuation was performed using the depreciated replacement cost method. The effective date of the valuation is 30 June
2011.
Structures are valued using the depreciated replacement cost method. This cost represents the replacement cost of the 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 been factored into the depreciated replacement cost calculation.
Where it has not been possible to examine hidden works, the use of reasonable materials and methods of construction have been
assumed bearing in mind the age and nature of the structures. The estimated cost of reconstruction includes structure service and
finishes.
An independent valuation of the department’s structures was performed by the Valuer-General Victoria. The valuation was performed
based on the depreciated replacement cost of the assets. The effective date of the valuation is 30 June 2011.
Roads
Road are valued using the depreciated replacement cost method. This cost represents the replacement cost of the 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.
Where it has not been possible to examine hidden works, the use of reasonable materials and methods of construction have been
assumed bearing in mind the age and nature of the roads. The estimated cost of reconstruction includes structure services and
finishes.
An independent valuation of the department’s roads was performed by the Valuer-General Victoria. The valuation was performed
based on the depreciated replacement cost of the assets. The effective date of the valuation is 30 June 2011.
Plant and equipment
Plant and equipment is 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.
Motor vehicles under finance lease
Motor vehicles are valued using the market approach. Under this valuation method, the vehicles are compared to recent comparable
sales. To the extent that motor vehicles under finance lease have an exit price prescribed by the lessor at the start of the lease term,
these assets are classified as Level 2 under the market approach.
Historic and cultural assets
Artwork and historic assets are valued using the market approach. Under this valuation method, the historic and cultural assets are
determined by a comparison to similar examples of the artists work in existence throughout Australia and research on prices paid for
similar examples offered at auction or through art galleries in recent years.
To the extent that artwork and historic assets do not contain significant, unobservable adjustments, these assets are classified as
Level 2 under the market approach.
An independent valuation of the department’s artwork and historic assets was performed by the Valuer-General Victoria. The effective
date of the valuation is 30 June 2011.
There were no changes in valuation techniques throughout the period to 30 June 2014.
For all assets measured at fair value, the current use is considered the highest and best use.
Department of Environment and Primary Industries 2013 – 14 Annual Report
137
Table 14.3: Reconciliation of Level 3 fair value
Restated balance at 1 July 2013
Metropolitan
parks
$’000
Land used
for
operational
purposes
$’000
Buildings
and
structures
$’000
Roads
$’000
Plant and
equipment
$’000
Total
$’000
660,734
311,235
84,397
488,433
1,018,872
34,016
7,206,380
0
1
15
37,434
1,260
0
9,640
48,372
0
0
0
0
0
0
0
0
(491)
0
0
0
0
0
0
0
0
0
0
25,256
2,008
7,195
5,861
0
(34,400)
21,249
70
417
27,656
0
0
0
0
0
0
(28,187)
(13,064)
(15,693)
(56,944)
2,417,579
1,067,417
1,157,687
666,596
311,250
87,431
482,755
1,005,878
28,380
7,224,973
Land and
unused
roads
$’000
National
parks
$’000
State forests
$’000
2,392,796
1,065,405
1,150,492
18
4
(491)
Sales/(purchases)
Transfers in/(out) of Level 3 –
assets classified as held for sale
(Note 13)
Transfers in/(out) – free of
charge
Transfers in/(out) – from other
categories
Depreciation expense
Conservation
reserves
$’000
Gains/(losses) recognised in net result
Recognition/(derecognition),
(write-down) of assets
9,224
0
0
0
0
(20,148)
271
0
2,601
(8,052)
Gains/(losses) recognised in
other economic flows – other
comprehensive income
9,224
0
0
0
0
(20,148)
271
0
2,601
(8,052)
Revaluation increments/
(decrements)
5,997
0
0
0
0
0
0
0
0
5,997
5,997
0
0
0
0
0
0
0
0
5,997
0
0
0
0
0
318,749
320,942
25
27,770
667,486
(22,702)
0
0
(368)
0
0
(2,798)
0
(4,220)
(30,088)
(22,702)
0
0
(368)
0
318,749
318,144
25
23,550
637,398
2,410,098
1,067,417
1,157,687
666,228
311,250
336,032
801,170
1,005,903
54,531
7,860,316
Transfers in/(out) through contributions by owner
Transfers in/(out) – machinery of
government transfers
Transfers in/(out) – capital
contributions
Balance at 30 June 2014
Assets under construction are excluded from the table above.
Department of Environment and Primary Industries 2013 – 14 Annual Report
138
Table 14.4: Description of significant unobservable inputs to Level 3 valuations
Valuation
technique
Significant
Unobservable
Inputs
Range
Sensitivity of fair value
measurement to changes in
significant unobservable inputs
Specialised land
Market approach
Community Service
Obligation (CSO)
adjustment
10 – 90 percent
A significant increase or decrease in
the CSO adjustment would result in
a significantly higher or lower fair
value.
Specialised buildings
Depreciated
replacement cost
Direct cost per
square meter
$10 - $5,504 / m2
Useful life of
specialised buildings
33 - 100 years
A significant increase or decrease in
direct cost per square meter
adjustment would result in a
significantly higher or lower fair
value.
Cost per structure
$1,000 - $5.5 million
per crossings
Specialised
structures
Depreciated
replacement cost
A significant increase or decrease in
the estimated useful life of the asset
would result in a significantly higher
or lower valuation.
$3,000 - $190,000
per culvert
A significant increase or decrease in
cost per structure would result in a
significantly higher or lower fair
value.
$5,000 - $17.8
million per other
structure
Roads
Depreciated
replacement cost
Useful life
of structures
5 - 100 years
Cost per km
$41,011 -$583,511
per km
Useful life of roads
80 years
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 km 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.
Plant and equipment
Depreciated cost
Cost per unit
$5,000 - $4,034,513
per unit
Useful life of plant
and equipment
3 - 20 years
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.
Department of Environment and Primary Industries 2013 – 14 Annual Report
139
Note 15. Biological assets
2014
2013
0
0
7,395
0
2014
$’000
2013
$’000
0
0
10,229
0
(10,229)
0
0
0
0
0
1,169
0
98
0
Gain arising from changes in fair value less costs to sell attributable to physical changes
987
0
Gain arising from changes in fair value less costs to sell attributable to price changes
183
0
Decrease attributable to sales
(461)
0
Decrease attributable to demise
(131)
0
Balance at 30 June
1,845
0
Carrying
value
2014
$’000
Level 2
fair value
measurement
2014
$’000
Carrying
value 2013
$’000
0
0
0
Breeding livestock
1,845
1,845
0
Total biological assets
1,845
1,845
0
Commercial native forests – timber volume (cubic metres)
Breeding livestock – sheep and cattle (by headcount)
Reconciliation of carrying amount
Movements in carrying amounts of commercial native forest
Balance at 1 July
Restated Capital contributions from the Crown – transfer from the former Department of Primary
Industries (Note 34)
Transfer to VicForests
Balance at 30 June
Movements in carrying amounts of breeding livestock
Balance at 1 July
Capital contributions from the Crown – transfer from the former Department of Primary Industries
(Note 34)
Increase due to purchases
The department recognises commercial native forest and breeding livestock as biological assets.
Fair value measurement
Commercial native forests
Breeding livestock are carried at fair value. Fair value is based on relevant market indicators which include store cattle prices, abattoir
market prices, and cattle prices received/quoted for the department’s cattle at the reporting date. Prices for cattle generally reflect the
shorter term spot prices available in the market place and vary depending on the weight and condition of the animal.
To the extent that livestock do not contain significant, unobservable adjustments, these biological assets are classified as Level 2
under the market approach. Refer to Note 1(b) for the fair value hierarchy.
There have been no transfers between levels during the period. There were no changes to valuation techniques throughout the period
to 30 June 2014.
Department of Environment and Primary Industries 2013 – 14 Annual Report
140
Note 16. Intangible assets
2014
$’000
2013
$’000
20,103
44,566
Less accumulated depreciation
(13,991)
(40,563)
Less accumulated impairment
(3,949)
(3,949)
2,163
54
Construction in progress – at cost
20,678
11,540
Total software
22,841
11,594
32,923
0
(200)
0
32,723
0
239
0
Total other intangible assets
32,962
0
Total intangible assets
55,803
11,594
Software
At cost
Other (i)
At cost
Less accumulated depreciation
Construction in progress – at cost
Note:
(i) Of the balance in ‘other intangible assets’, $32.723 million (2013: $0 million) relates to rights to use land and land renewal options contracted under
the PPP arrangements – Biosciences Research Centre. Refer to Note 11.
Depreciation of intangible assets
Capitalised expenditure on intangible assets, such as databases and software, is depreciated on a straight-line basis over an
estimated useful life of between three and 10 years.
Aggregate depreciation allocated during the year is recognised as an expense and disclosed in Note 5(b) to the financial statements.
Significant intangible assets
The department has software development expenditure for a number of systems. The major component of the carrying amount of
software is the Fire and Emergency Management Portal under development. The expected cost of the system is $21.50 million and is
anticipated to be completed in 2015.
2014
$’000
2013
$’000
11,594
7,315
8,573
4,710
0
529
36,428
0
0
(57)
(792)
(903)
55,803
11,594
Movements in carrying amounts
Balance at 1 July
Additions
Net transfers from/(to) other categories (Note 14)
Capital contributions from the Crown – transfer from the former Department of Primary Industries
(Note 34)
Write-down
Depreciation expense (i)
Balance at 30 June
Notes:
(i) Depreciation expense is included in the line item ‘depreciation’ in the comprehensive operating statement.
Department of Environment and Primary Industries 2013 – 14 Annual Report
141
Note 17. Payables
2014
$’000
2013
$’000
45,577
18,197
8,474
20,803
23,344
15,245
8,650
0
48,574
55,294
1,703
735
136,322
110,274
14,145
10,159
1,700
1,485
15,845
11,644
152,167
121,918
50,762
0
50,762
0
17,800
22,699
17,800
22,699
68,562
22,699
220,729
144,617
Current payables
Contractual
Trade creditors (i)
Accrued grants and other transfers
Accrued capital contributions
Contributions payable to joint venture (Note 34)
Other accrued expenses
Other (includes superannuation) payable (i)
Statutory
Advance from the Public Account (ii)
Taxes payable
Total current payables
Non-current payables
Contractual
Contributions payable to joint venture
Statutory
Advance from the Public Account (ii)
Total non-current payables
Total payables
Notes:
(i) The average credit period is 30 days. No interest is charged on the trade creditors or other payables for the first 30 days from the date of the invoice.
Thereafter, interest may be charged at differing rates determined by the individual trade arrangements entered into.
(ii) These advances are for varying terms and do not normally bear interest. The advances are unsecured and the term of the advance is usually
agreed by the Minister at the time the advance was provided.
(a) Maturity analysis of contractual payables
Refer to Table 24.4 in Note 24. Financial instruments for the maturity analysis of contractual payables.
(b) Nature and extent of risk arising from contractual payables
Refer to Note 24. Financial instruments for the nature and extent of risks arising contractual from payables.
Department of Environment and Primary Industries 2013 – 14 Annual Report
142
Note 18. Borrowings
2014
$’000
2013
$’000
15,473
11,717
PPP related finance lease liabilities – Royal Melbourne Showgrounds
1,099
0
PPP related finance lease liabilities – Biosciences Research Centre
1,362
0
17,934
11,717
Non-PPP related finance lease liabilities – Motor vehicles
22,824
15,818
PPP related finance lease liabilities – Royal Melbourne Showgrounds
45,730
0
PPP related finance lease liabilities – Biosciences Research Centre
200,812
0
Total non-current borrowings
269,366
15,818
Total borrowings
287,300
27,535
Current borrowings – secured (i)
Non-PPP related finance lease liabilities – Motor vehicles
Total current borrowings
Non-current borrowings – secured (i)
Note:
(i) Secured by the leased assets.
(a) Maturity analysis of borrowings
Refer to Table 24.4 in Note 24. Financial instruments for the maturity analysis of borrowings.
(b) Nature and extent of risk arising from borrowings
Refer to Note 24. Financial instruments for the nature and extent of risks arising from borrowings.
(c) Defaults and breaches
During the current and prior year, there were no defaults and breaches of any of the loans.
Department of Environment and Primary Industries 2013 – 14 Annual Report
143
Note 19. Provisions
2014
$’000
2013
$’000
27,842
16,824
1,585
292
53,146
34,513
13,836
5,288
96,409
56,917
15,784
10,307
3,005
1,120
18,789
11,427
Onerous lease contracts (ii) (Notes 19(b) and 19)
125
775
Provision for insurance deductibles (Note 19(b))
19,942
22,554
Provision for fire rehabilitation (Note 19(b))
2,102
4,647
Provision for native vegetation offset (Note 19(b))
5,580
5,970
444
2,138
5,266
8,823
148,657
113,251
Employee benefits (i)(iii) (Note 19(a))
7,964
7,551
On-costs (iii) (Note 19(a) and 19(b))
1,552
1,516
Onerous lease contracts (ii) (Notes 19(b) and 21)
1,032
417
10,548
9,484
159,205
122,735
Current provisions
Employee benefits – annual leave (i) (Note 19(a))
Unconditional and expected to be paid within 12 months
Unconditional and expected to be paid after 12 months
(iii)
Employee benefits – long service leave (i) (Note 19(a))
Unconditional and expected to be paid within 12 months
Unconditional and expected to be paid after 12 months
(iii)
Provisions for on-costs: (Notes 19(a) and 19(b))
Unconditional and expected to settle within 12 months
Unconditional and expected to settle after 12 months
(iii)
Provision for flood recovery works (Note 19(b))
Other (Note 19(b))
Total current provisions
Non-current provisions
Total non-current provisions
Total provisions
(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs.
(ii) The provision for onerous lease contracts represents the present value of the future lease payments that the department is presently obligated to
make in respect of onerous lease contracts under non-cancellable operating lease agreements, less income expected to be earned on the lease
including estimated future sub-lease arrangements where applicable. The unexpired term of the leases vary up to a maximum of 15 years.
(iii) The amounts disclosed are discounted to present values.
Department of Environment and Primary Industries 2013 – 14 Annual Report
144
(a) Employee benefits and related on-costs
2014
$’000
2013
$’000
Annual leave entitlements (iii)
29,427
17,116
Long service leave entitlements (iii)
66,982
39,801
96,409
56,917
7,964
7,551
104,373
64,468
18,789
11,427
1,552
1,516
20,341
12,943
124,714
77,411
Current employee benefits (i)
Non-current employee benefits (i)
Long service leave entitlements (iii)
Total employee benefits
Current on-costs
Non-current on-costs (iii)
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 provision for onerous lease contracts represents the present value of the future lease payments that the department is presently obligated to
make in respect of onerous lease contracts under non-cancellable operating lease agreements, less income expected to be earned on the lease
including estimated future sub-lease income, where applicable. The estimate may vary as a result of changes in the utilisation of the leased
premises and sub-lease arrangements where applicable. The unexpired term of the leases vary up to a maximum of 15 years.
(iii) The amounts disclosed are discounted to present values.
(b) Movement in provisions
On-costs
$’000
Balance at 1 July
Onerous
Native
lease Insurance
vegetation
contracts deductibles Fire rehab.
offset
$’000
$’000
$’000
$’000
Flood
recovery
works
$’000
Other
$’000
Total
$’000
12,943
1,192
22,554
4,647
5,970
2,138
8,823
58,267
Additional provisions
recognised
8,175
629
0
45
0
0
0
8,849
Reductions arising from
payments/other sacrifices
of future economic benefits
(814)
0
(2,592)
(2,497)
(390)
(1,694)
(3,523)
(11,510)
320
(646)
(20)
(93)
0
0
(34)
(473)
Increase/(reductions)
resulting from
remeasurement or
settlement without cost
Department of Environment and Primary Industries 2013 – 14 Annual Report
145
(283)
(18)
0
0
0
0
0
(301)
Balance at 30 June
20,341
1,157
19,942
2,102
5,580
444
5,266
54,832
Current
18,789
125
19,942
2,102
5,580
444
5,266
52,248
1,552
1,032
0
0
0
0
0
2,584
20,341
1,157
19,942
2,102
5,580
444
5,266
54,832
Unwind of discount and
effect of changes in the
discount rate
Non-current
Department of Environment and Primary Industries 2013 – 14 Annual Report
146
Note 20. Superannuation
Government Employees’ Superannuation Fund
Employees of the department are entitled to receive superannuation benefits and the department contributes to both defined be nefit
and defined contribution plans. The defined benefit plan provides benefits based on years of service and final average salary.
The department does not recognise any defined benefit liability in respect of the plan because the entity has no legal or constructive
obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due.
DTF 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 department.
The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by the
department are as follows:
Paid contribution for the year
Fund
Contribution outstanding at
year end
2014
$’000
2013
$’000
2014
$’000
2013
$’000
7,325
5,727
0
0
16,637
10,606
289
0
2,613
2,068
0
0
26,575
18,401
289
0
Defined benefit plans:
Emergency Services Superannuation Scheme
Defined contribution plans:
Victorian Superannuation Fund – Vic Super Scheme
Various other
Total superannuation contributions
Note
(i) The bases for contributions are determined by the various schemes.
(ii) All employees of the department are entitled to varying levels of benefits on retirement, disability or death. Some superannuation plans provide
defined benefits based on years of service and final average salary. The others are classified as contribution schemes. Contributions by the
department of a minimum of 9.25% of employee’s wages and salaries are legally enforceable on the department.
(iii) The above amounts were measured as at 30 June of each year or in the case of employer contributions they relate to the years ended 30 June.
Department of Environment and Primary Industries 2013 – 14 Annual Report
147
Note 21. Leases
Disclosure for lessees – finance leases liabilities
Leasing arrangements – Commissioned public private partnerships (PPPs)
Royal Melbourne Showgrounds
The state, represented by the former Department of Primary Industries has entered into a joint venture agreement with the Royal
Agricultural Society of Victoria Limited (RASV) to redevelop the Royal Melbourne Showgrounds. The agreement came into effect on
30 June 2005. Two joint venture structures have been established, an unincorporated joint venture to carry out and deliver the joint
venture project, and an incorporated joint venture entity, Showgrounds Nominees Pty Ltd to hold the assets of the joint venture and to
enter into agreements on behalf of the state and RASV.
In June 2006, Showgrounds Nominees Pty Ltd entered into a Development and Operations Agreement (on behalf of the state and
RASV) with the Concessionaire, PPP Solutions (Showgrounds) Nominee Pty Ltd to design, construct, finance and maintain the new
facilities at the Showgrounds. The project operation term is 25 years from the date of commercial acceptance of completed works,
which occurred in August 2006. The Showgrounds buildings will revert to the joint venture on the conclusion of the lease
arrangement.
The payments that relate to the redevelopment of the Showgrounds are accounted for as a finance lease as disclosed in the following
table. In addition, the department also pays operating and maintenance costs (refer to Note 22(b)).
Biosciences Research Centre
In April 2008, the state, represented by the former Department of Primary Industries entered into a joint venture agreement with La
Trobe University (La Trobe) to establish a world class research facility to be known as AgriBio, Centre for AgriBioscience.
On 30 April 2009, Biosciences Research Centre Pty Ltd entered into a Project Agreement (on behalf of the state and La Trobe) with
Plenary Research Pty Ltd (the Concessionaire) to design, construct, finance and maintain a facility over the project’s operating term.
The project’s operating term is 25 years from the date of commercial acceptance. which occurred July 18, 2012.
The service fee payments that relate to the project facility are accounted for as a finance lease as disclosed in the following table. In
addition, the department also pays operating and maintenance costs (refer to Note 22(b)).
Leasing arrangements – Motor vehicles
The other finance leases relate to motor vehicles leased through the VicFleet lease facility. The lease term is the period over which
the vehicle is to be leased. Generally, vehicles must be retained for three years or 60 000 kms, whichever occurs first. On disposal of
the vehicle any profit or loss on sale is borne by the department. The weighted average interest rate implicit in the leases is 5.97% p.a
(2013: 6.62% p.a).
Minimum future lease
payments
Present value of minimum
future lease payments
2014
$’000
2013
$’000
2014
$’000
2013
$’000
5,723
0
1,099
0
Longer than one year but no later than five years
22,893
0
5,656
0
Longer than five years
69,534
0
40,074
0
Not longer than one year
19,043
0
1,362
0
Longer than one year but no later than five years
79,253
0
10,222
0
372,872
0
190,590
0
Not longer than one year
17,129
13,050
15,473
11,717
Longer than one year but not longer than five years
24,296
16,604
22,824
15,818
610,743
29,654
287,300
27,535
Commissioned PPP related finance lease liabilities payable
Royal Melbourne Showgrounds
Not longer than one year
Bioscience Research Centre
Longer than five years
Motor vehicle related finance leases liabilities payable
Minimum future lease payments
Department of Environment and Primary Industries 2013 – 14 Annual Report
148
(323,443)
(2,119)
0
0
287,300
27,535
287,300
27,535
17,934
11,717
Non-current finance lease liability (Note 18)
269,366
15,818
Total lease liabilities
287,300
27,535
Less future finance charges
Present value of minimum lease payments
Included in the financial statements as:
Current finance lease liability (Note 18)
The finance leases disclosed below are exempt from GST.
(a) Maturity analysis of finance lease liabilities
Please refer to Table 24.4 in Note 24. Financial instruments for the maturity analysis of finance lease liabilities.
(b) Nature and extent of risk arising finance lease liabilities
Please refer to Note 24. Financial instruments for the nature and extent of risks arising from finance lease liabilities.
Disclosure for lessees – operating leases
Operating leases predominantly relate to office and other facilities with lease terms of between two to fifteen years, some with options
to extend the lease. Some operating lease contracts contain annual market review clauses.
Other leases will consist mainly of aircraft leases relating to fire bombing services. Such leases have terms between one to five years.
The department does not have an option to purchase the leased assets at the expiry of the lease period.
All amounts shown in the leases note are nominal amounts.
2014
$’000
2013
$’000
Not longer than one year
30,844
85,470
Longer than one year but not longer than five years
45,475
78,865
2,109
311
Total commitment for operating leases (inclusive of GST)
78,428
164,646
Less GST recoverable from the Australian Taxation Office
(7,130)
(14,968)
Total commitments for operating lease expenditure
71,298
149,678
125
775
Onerous lease contracts (Note 19)
1,032
417
Total liabilities for non-cancellable operating leases
1,157
1,192
Non-cancellable operating leases payable
Longer than five years
In respect of non-cancellable operating leases the following liabilities have been recognised:
Current
Onerous lease contracts (Note 19)
Non-current
Department of Environment and Primary Industries 2013 – 14 Annual Report
149
Note 22. Commitments for expenditure
(a) Commitments other than public private partnerships
Nominal values
2014
$’000
2013
$’000
16,332
0
286,386
291,918
23,393
25,208
326,111
317,126
Software
1,577
0
Total intangible assets commitments
1,577
0
Investment in associates
0
261
Total department’s share of associate’s capital expenditure commitments
0
261
20,096
86,963
Other operating
736,831
926,021
Total other operating commitments
756,927
1,012,984
1,084,615
1,330,371
Capital expenditure commitments
Buildings
Roads and structures
Plant, equipment and vehicles
Total capital expenditure commitments
Intangible assets commitments
Department’s share of associate’s capital expenditure commitments
Other operating commitments
Outsourcing
Total commitments other than public private partnerships
The figures presented are inclusive of GST.
(b) Public private partnerships
2014
2013
Other commitments
Other commitments
Commissioned public private partnerships – other commitments (i)
Present value (ii)
$’000
Nominal
value (iii)
$’000
Present value
$’000
Nominal value
$’000
49,068
79,743
0
0
Biosciences Research Centre
117,283
319,145
0
0
Total
166,351
398,888
0
0
Royal Melbourne Showgrounds
Notes:
(i) The figures presented are inclusive of GST. Other commitments relate to operating maintenance and life cycle costs.
(ii) The year to year reduction in the present value of other commitments mainly reflects the payments made, offset by the impact of the discounting
Department of Environment and Primary Industries 2013 – 14 Annual Report
150
period being one year shorter.
(iii) The year to year reduction in the nominal amounts of other commitments reflects the payments made.
(iv) The figures represent 100 percent of the operating commitment, and 25 percent of the general operating costs are recouped from
La Trobe University.
(c) Commitments payable
2014
$’000
2013
$’000
Not later than one year
108,685
93,287
Later than one year but no later than five years
216,851
223,839
575
0
326,111
317,126
1,440
0
137
0
0
0
1,577
0
Not later than one year
13,114
0
Later than one year but no later than five years
57,143
0
Later than five years
328,631
0
Total public private partnership commitments
398,888
0
Not later than one year
0
261
Total department’s share of associate’s capital commitments
0
261
Not later than one year
256,178
198,431
Later than one year but no later than five years
494,153
811,859
6,596
2,694
756,927
1,012,984
1,483,503
1,330,371
Capital expenditure commitments
Later than five years
Total capital expenditure commitments
Intangible assets commitments
Not later than one year
Later than one year but no later than five years
Later than five years
Total intangible assets commitments
Public private partnership commitments
Department’s share of associate’s capital expenditure commitments
Other operating commitments
Later than five years
Total other operating commitments
Total commitments for expenditure (inclusive of GST)
Department of Environment and Primary Industries 2013 – 14 Annual Report
151
Less GST recoverable from the Australian Taxation Office
(134,864)
(10,269)
Total commitments for expenditure (exclusive of GST)
1,348,639
1,320,102
Lease commitments
Finance lease liabilities and non-cancellable operating lease commitments are disclosed in Note 21. Leases to the financial
statements.
Department of Environment and Primary Industries 2013 – 14 Annual Report
152
Note 23. Contingent assets and contingent liabilities
2014
$’000
2013
$’000
Damages claims
52,805
2,838
Public liability insurance claims
15,312
29,490
520
0
9,650
17,325
78,287
49,653
Contingent liabilities
Breach of contract
Other
Unquantifiable contingent liabilities
The department has other unquantifiable contingent liabilities including two native title claims made in relation to Victorian land and
resources (2013: nine native title claims). No material losses are anticipated in respect of any of these contingencies.
Contingent assets
The department did not have any contingent assets in either 2014 or 2013.
Unquantifiable contingent liabilities – Joint ventures
Royal Melbourne Showgrounds
Under the state Support Deed – Core Land, the state has undertaken to ensure the performance of the payment obligations in favour
of the Concessionaire and the performance of the joint venture financial obligations in favour of the security trustee.
Under the state’s commitment to RASV, the state has agreed to support certain obligations of RASV that may arise out of the Joint
Venture Agreement. In accordance with the terms set out in the State Commitment to RASV, the state will pay (in the form of a loan),
the amount requested by RASV. If any outstanding loan amount remains unpaid at the date which is 25 years after the
commencement of the operation term under the Development and Operation Agreement, RASV will be obliged to satisfy and
discharge each such outstanding loan amount. This may take the form of a transfer to the state, of the whole of the RASV participating
interest in the joint venture.
The state has also entered into an agreement through the State Support Deed – Non-Core Land with Showgrounds Retail
Developments Pty Ltd and the RASV whereby the state agrees to support certain payment obligations of RASV that may arise under
the Non-Core Development Agreement.
Biosciences Research Centre
The service fee payment obligations of Biosciences Research Centre Pty Ltd (on behalf of the joint venture participants) are
supported by the State of Victoria via a State Support Deed. Under this Deed, the state ensures that the joint venture participants
have (severally) the financial capacity to meet their payment obligations to the company, thereby enabling the company to meet its
obligations to pay the service fee to the Concessionaire pursuant to the Project Agreement. The state underwrites the risk of any
default by the Biosciences Research Centre Pty Ltd.
Department of Environment and Primary Industries 2013 – 14 Annual Report
153
Note 24. Financial instruments
(a)
Financial risk management objectives and policies
The department’s principal financial instruments comprise:
cash and deposits
receivables (excluding joint ventures and statutory receivables)
investments (excluding investments in associates and joint ventures)
payables (excluding joint ventures and statutory payables)
borrowings (excluding joint ventures).
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, in respect to each class of financial asset and financial liability above
are disclosed in Note 1. Summary of significant accounting policies to these financial statements.
The department holds financial instruments as a result of its ordinary business activities (in the case of receivables and payables),
government policy (in the case of cash and borrowings), or to prudentially manage cash balances (in the case of cash deposits and
investments).
The department’s main financial risks include credit risk and interest rate risk. The department manages these financial risks in
accordance with its financial management policies.
Investments in joint ventures are disclosed separately in Note 11.
The carrying amounts of the department’s contractual financial assets and financial liabilities by category are disclosed in Table 24.1
below.
Table 24.1: Categorisation of financial instruments
2014
Contractual
financial
assets –
loans and
receivables
$’000
Contractual
financial
liabilities at
amortised
cost
$’000
317,399
2013
Total
$’000
Contractual
financial
assets – loans
and
receivables
$’000
Contractual
financial
liabilities at
amortised cost
$’000
Total
$’000
0
317,399
249,976
0
249,976
11,648
0
11,648
18,545
0
18,545
Accrued income
478
0
478
162
0
162
Accrued interest
0
0
0
29
0
29
26,813
0
26,813
20,143
0
20,143
356,338
0
356,338
288,855
0
288,855
Trade creditors
0
45,545
45,545
0
18,197
18,197
Accrued grants and other transfers
0
8,474
8,474
0
20,803
20,803
Contractual financial assets
Cash and deposits
Cash, deposits on call and term deposits
less than 3 months
Receivables (i)
Trade receivables
Investments:
Term deposits greater than 3 months
Total contractual financial assets
Contractual financial liabilities
Payables (ii)
Department of Environment and Primary Industries 2013 – 14 Annual Report
154
Accrued capital contributions
0
23,344
23,344
0
15,245
15,245
Contributions payable to joint venture
0
59,412
59,412
0
0
0
Other accrued expenses
0
40,873
40,873
0
55,294
55,294
Other payables
0
1,703
1,703
0
735
735
Finance lease liabilities
0
38,297
38,297
0
27,535
27,535
Total contractual financial liabilities
0
217,648
217,648
0
137,809
137,809
Borrowings (iii)
Notes:
(i) The amount of cash and deposits disclosed excludes cash and deposits relating to joint ventures totalling $0.430 (2013: $0 million) – Refer to Note 11. Investments
accounted for using the proportionate consolidation method.
(ii) The amount of receivables disclosed excludes Statutory receivables (ie. Amounts owing from Victorian Government and GST input tax credit receivable) totalling
$225.420 million (2013: $185.882 million) and receivables relating to joint ventures totalling $28.996 million (2013: $0 million) – Refer to Note 8. Receivables and Note
11. Investments accounted for using the proportionate consolidation method.
(iii) The amount of payables disclosed excludes statutory payables (ie Amounts owing to Victorian Government for advances from the Public Account and taxes payable)
totalling $33.645 million (2013: $34.343 million) and payables relating to joint ventures totalling $7.734 million (2013: $0 million) – Refer to Note 11. Investments
accounted for using the proportionate consolidation method and Note 17. Payables.
(iv) The amount of borrowings disclosed excludes joint ventures totalling $249.003 million (2013: $0 million) – Refer to Note 11. Investments accounted for using the
proportionate consolidation method and Note 18. Borrowings.
Table 24.2: Net holding gain/(loss) on financial instruments by category
2014
Total interest
income/
(expense)
$’000
Impairment
loss
$’000
2,589
2013
Total
$’000
Total interest
income/
(expense)
$’000
Impairment
loss
$’000
Total
$’000
0
2,589
2,033
0
2,033
0
118
118
0
(38)
(38)
Term deposits greater than
3 months
2,523
0
2,523
274
0
274
Total contractual
financial assets
5,112
118
5,230
2,307
(38)
2,269
Contractual financial assets
Cash and deposits
Cash, deposits on call
and term deposits less than
3 months
Receivables
Trade receivables
Investments
Contractual financial liabilities
Department of Environment and Primary Industries 2013 – 14 Annual Report
155
Payables
0
0
0
0
0
0
Finance lease liabilities
(1,392)
0
(1,392)
(1,869)
0
(1,869)
Total contractual
financial liabilities
(1,392)
0
(1,392)
(1,869)
0
(1,869)
Trade payables
Borrowings
The net holding gains or losses disclosed above are determined as follows:
for cash and deposits, receivables and investments, the net gain or loss is calculated by subtracting any impairment recognised in the
net result from the interest income
for financial liabilities measured at amortised cost, the net gain or loss reflects the interest expense.
(b) Credit risk
Credit risk arises when there is the possibility of the department’s counter party defaulting on their contractual obligations resulting in
financial loss to the department. Credit risk is measured at fair value and is monitored on a regular basis.
Credit risk associated with the department’s contractual financial assets is minimal because the main debtor is the Victorian
Government. Credit assessments are required for all debtors other than government, where $5,000 or more of goods or services are
provided. If a customer has a credit rating of less than a Triple-B rating, collateral security is obtained to reduce the department’s
credit risk exposure. The department reviews receivables for impairment consistent with the ageing disclosed in Table 24.3.
In addition, the department does not engage in hedging for its contractual financial assets and mainly obtains contractual financial
assets that are on fixed interest, except for cash held on call at bank. The department’s policy complies with Standing Direction 4.5.6
issued by the Minister for Finance and only permits deposits to be placed with authorised deposit-taking institutions.
Provision for impairment for contractual financial assets is recognised when there is objective evidence that the department will not be
able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts that are more than
30 days overdue and changes in debtor credit ratings.
The carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents
the department’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
Contractual financial assets that are either past due or impaired
There are no material financial assets which are individually determined to be impaired. Currently the department does not hold any
collateral as security nor credit enhancements relating to any of its financial assets.
There are no contractual 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 of contractual financial
assets:
Table 24.3: Ageing analysis of contractual financial assets
Past due but not impaired
Carrying
amount
$‘000
Not past due
and not
impaired
$‘000
Less than 1
Month
$‘000
1–3 months
$‘000
3 months –
1 year
$‘000
1–5 years
$‘000
317,399
317,399
0
0
0
0
2014
Cash and deposits
Cash, deposits on call
and term deposits less than
3 months
Receivables (i)
Department of Environment and Primary Industries 2013 – 14 Annual Report
156
11,648
9,553
1,015
135
945
0
Accrued income
478
478
0
0
0
0
Accrued interest
0
0
0
0
0
0
26,813
26,813
0
0
0
0
356,338
354,243
1,015
135
945
0
249,976
249,976
0
0
0
0
18,545
17,257
780
133
306
69
Accrued income
162
162
0
0
0
0
Accrued interest
29
29
0
0
0
0
20,143
20,143
0
0
0
0
288,855
287,567
780
133
306
69
Trade receivables
Investments
Term deposits greater than
3 months
Total
2013
Cash and deposits
Cash, deposits on call
and term deposits less than
3 months
Receivables (i)
Trade receivables
Investments
Term deposits greater than
3 months
Total
Note:
(i) Ageing analysis of cash and deposits excludes cash and deposits relating to joint ventures totalling $0.430 (203: $0 million) as these amounts are
not contractual and are therefore outside the scope of this disclosure – Refer to Note 11. Investments accounted for using the proportionate
consolidation method.
(ii) Ageing analysis of receivables excludes Statutory receivables totalling $225.420 million (2013: $185.882 million) for amounts owing from the
Victorian Government and GST input tax credit recoverable, and excludes receivables relating to joint ventures totalling $28.996 million (2013: $0
million) as these amounts are not contractual and are therefore outside the scope of this disclosure – Refer to Note 8. Receivables and Note 11.
Investments accounted for using the proportionate consolidation method.
(c) Liquidity risk
Liquidity risk arises when the department is unable to meet its financial obligations as and when they fall due. The department
operates under the government fair payments policy of settling financial obligations within 30 days and in the event of a dispute,
making payments within 30 days from the date of resolution.
The department’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the
balance sheet. The department manages its liquidity risk by ensuring that it has access to sufficient cash in the public account to meet
its current liabilities.
The department’s exposure to liquidity risk is deemed insignificant based on prior period data and current assessment of risk. Cash
for unexpected events is generally sourced by drawing on amounts receivable from the Victorian government through the Public
Account.
The following table discloses the contractual maturity analysis for the department’s contractual financial liabilities.
Table 24.4: Maturity analysis of contractual financial liabilities
Department of Environment and Primary Industries 2013 – 14 Annual Report
157
Maturity dates
Carrying
amount
$’000
Nominal
amount (i)
$‘000
Less than
1 month
$‘000
1 month –
3 months
$‘000
3 months –
1 year
$‘000
1–5 years
$‘000
5+ years
$‘000
45,545
45,545
24,457
19,811
528
749
0
8,474
8,474
8,474
0
0
0
0
Accrued capital
contributions
23,344
23,344
23,344
0
0
0
0
Contributions payable to
joint venture
59,412
59,412
0
2,163
6,487
40,700
10,062
Other accrued expenses
40,873
40,873
40,873
0
0
0
0
1,703
1,703
1,703
0
0
0
0
38,297
38,297
2,639
2,138
10,696
22,824
0
217,648
217,648
101,490
24,112
17,711
64,273
10,062
Trade creditors
18,197
18,197
7,947
8,961
784
505
0
Accrued grants and other
transfers
20,803
20,803
20,803
0
0
0
0
Accrued capital
contributions
15,245
15,245
15,245
0
0
0
0
Other accrued expenses
55,294
55,294
55,294
0
0
0
0
735
735
735
0
0
0
0
27,535
27,535
3,503
1,696
6,518
15,818
0
137,809
137,809
103,527
10,657
7,302
16,323
0
2014
Payables (i)
Trade creditors
Accrued grants and other
transfers
Other payables
Borrowings (ii)
Finance lease liabilities
Total
2013
Payables (i)
Other payables
Borrowings (ii)
Finance lease liabilities
Total
Note:
(i) Ageing analysis of payables excludes statutory payables (i.e. Amounts owing to Victorian Government for advances from the Public Account and
taxes payable) totalling $33.645 million (2013: $34.343 million) and payables relating to joint ventures totalling $7.734 million (2013: $0 million) –
Refer to Note 11. Investments accounted for using the proportionate consolidation method and Note 17. Payables.
(ii) Ageing analysis of borrowings excludes joint ventures totalling $249.003 million (2013: $0 million) – Refer to Note 11. Investments accounted for
using the proportionate consolidation method and Note 18. Borrowings.
Department of Environment and Primary Industries 2013 – 14 Annual Report
158
(d) Market risk
The department’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency
risks. Objectives, policies and processes used to manage each of these risks are disclosed below.
Foreign currency risk
The department occasionally transacts in foreign currencies where the counter party invoices in a foreign currency. The foreign
currency risk is managed by ensuring that the period from the initial transaction and settlement is short (less than 30 days).
Based on past and current assessment of economic outlook, it is deemed unnecessary for the department to enter into any hedging
arrangements to manage the risk.
The department had no exposure to foreign currency risk as at either 30 June 2014 or 30 June 2013.
Interest rate risk
Exposure to interest rate risk solely relates to cash balances held in deposits at variable interest rates. Minimisation of risk is achieved
by undertaking fixed rate or non-interest bearing financial instruments. The department’s sole borrowings are VicFleet motor vehicle
leases. The department’s interest bearing liabilities are managed by VicFleet and interest rates are fixed at the inception of the lease.
The department’s exposure to interest rate risk is set out in the Table 24.5.
Table 24.5: Interest rate exposure of financial instruments
Interest rate exposure
Weighted
average
effective
interest rate
Carrying
amount
$‘000
Fixed
interest rate
$‘000
Variable
interest rate
$‘000
Non-interest
bearing
$‘000
2.49%
317,399
9,686
39,124
268,589
11,648
0
0
11,648
Accrued income
478
0
0
478
Accrued interest
0
0
0
0
26,813
26,813
0
0
356,338
36,499
39,124
280,715
45,545
0
0
45,545
8,474
0
0
8,474
Accrued capital contributions
23,344
0
0
23,344
Contributions payable to joint venture
59,412
0
0
59,412
Other accrued expenses
40,873
0
0
40,873
1,703
0
0
1,703
2014
Financial assets
Cash and deposits
Cash, deposits on call and term deposits less
than 3 months
Receivables
Trade receivables
Investments
Term deposits greater than 3 months
Total financial assets
2.70%
Financial liabilities
Payables
Trade creditors
Accrued grants and other transfers
Other payables
Department of Environment and Primary Industries 2013 – 14 Annual Report
159
Borrowings
5.97%
Finance lease liabilities
Total financial liabilities
38,297
38,297
0
0
217,648
38,297
0
179,351
Table 24.5: Interest rate exposure of financial instruments
Interest rate exposure
Weighted
average
effective
interest rate
Carrying
amount
$‘000
Fixed
interest rate
$‘000
Variable
interest rate
$‘000
Non-interest
bearing
$‘000
3.16%
249,976
636
34,550
214,790
18,545
0
0
18,545
Accrued income
162
0
0
162
Accrued interest
29
0
0
29
20,143
20,143
0
0
288,855
20,779
34,550
233,526
Trade creditors
18,197
0
0
18,197
Accrued grants and other transfers
20,803
0
0
20,803
Accrued capital contributions
15,245
0
0
15,245
Other accrued expenses
55,294
0
0
55,294
735
0
0
735
27,535
27,535
0
0
137,809
27,535
0
110,274
2013
Financial assets
Cash and deposits
Cash, deposits on call and term deposits less
than 3 months
Receivables
Trade receivables
Investments
Term deposits greater than 3 months
3.29%
Shares in other entities
Total financial assets
Financial liabilities
Payables
Other payables
Borrowings
Finance lease liabilities
6.62%
Total financial liabilities
The department is not exposed to any other risks (such as price of FX) that requires sensitivity disclosures.
Sensitivity disclosure analysis and assumptions
Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the
financial markets, the department believes the following movements are ‘reasonably possible’ over the next 12 months (the cash rate
is sourced from the Reserve Bank of Australia):
Department of Environment and Primary Industries 2013 – 14 Annual Report
160
a parallel shift of +1.0% and -1.0% (2013: +0.5% and -0.5%) in market interest rates (AUD) from the year-end base rate of 2.50%
(2013: 2.75%).
Table 24.6 discloses the impact on net operating result and equity for each category of financial instrument held by the department at
year-end as presented to key management personnel, if the above movements were to occur.
Table 24.6: Interest rate risk sensitivity
2014 Interest rate risk
-1.0%
(-100 basis points)
+1.0%
(100 basis points)
Carrying amount
$’000
Net result
$‘000
Net result
$‘000
317,399
(391)
391
Receivables (ii)
12,126
0
0
Investments (iv)
26,813
0
0
(391)
391
179,351
0
0
38,297
0
0
0
0
Contractual financial assets:
Cash and deposits (i)
Total impact
Contractual financial liabilities:
Payables (ii)
Borrowings (iii)
Total impact
Notes:
(i) All cash and cash equivalents are held in Australian dollars. $39.124 million cash and cash equivalents were held on deposit at variable interest rates. The remainder of
the balance was held in non-interest bearing accounts. This item is not subject to any other identified risk sensitivities.
(ii) The carrying amount is denominated in Australian dollars and is non-interest bearing. This item is not subject to the identified risk sensitivities.
(iii) Borrowings relate to finance lease liabilities associated with motor vehicles. Each contract has interest fixed at the inception of the lease. This item is not subject to
identified risk sensitivities.
(iv) Investments have a fixed interest rate, hence no sensitivity required.
Table 24.6: Interest rate risk sensitivity
2013 Interest rate risk
-0.5%
(-50 basis points)
+0.5%
(+50 basis points)
Carrying amount
$’000
Net result
$‘000
Net result
$‘000
249,976
(173)
173
Receivables (ii)
18,736
0
0
Investments (iv)
20,143
0
0
(173)
173
Contractual financial assets:
Cash and deposits (i)
Total impact
Department of Environment and Primary Industries 2013 – 14 Annual Report
161
Contractual financial liabilities:
Payables (ii)
Borrowings (iii)
110,274
0
0
27,535
0
0
0
0
Total impact
Notes:
(i) All cash and cash equivalents are held in Australian dollars. $34.550 million cash and cash equivalents were held on deposit at variable interest rates. The remainder of
the balance was held in non-interest bearing accounts. This item is not subject to any other identified risk sensitivities.
(ii) The carrying amount is denominated in Australian dollars and is non-interest bearing. This item is not subject to the identified risk sensitivities.
(iii) Borrowings relate to finance lease liabilities associated with motor vehicles. Each contract has interest fixed at the inception of the lease. This item is not subject to
identified risk sensitivities.
(iv) Investments have a fixed interest rate, hence no sensitivity required.
(e) Fair value
The fair values and net fair values of financial instrument assets and liabilities are determined as follows:
Level 1 – the fair value of financial instruments with standard terms and conditions and traded in active liquid markets are determined
with reference to quoted market prices
Level 2 – the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either
directly or indirectly
Level 3 – the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis
using unobservable market inputs.
The department considers the carrying amount of financial assets and financial liabilities recorded in the financial statements to be a
fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will
be paid in full.
The following table shows that the fair value of most of the contractual financial assets and liabilities are the same as the carrying
amounts.
Table 24.7: Comparison between carrying amount and fair value
2014
2013
Carrying
amount
$’000
Fair value (i)
$‘000
Carrying
amount
$’000
Fair value (i)
$‘000
317,399
317,399
249,976
249,976
11,648
11,648
18,545
18,545
Accrued income
478
478
162
162
Accrued interest
0
0
29
29
26,813
26,813
20,143
20,143
356,338
356,338
288,855
288,855
Contractual financial assets
Cash and deposits
Cash, deposits on call and term deposits less than 3 months
Receivables (i)
Trade receivables
Investments
Term deposits greater than 3 months
Total contractual financial assets
Department of Environment and Primary Industries 2013 – 14 Annual Report
162
Contractual financial liabilities
Payables (ii)
45,545
45,545
18,197
18,197
8,474
8,474
20,803
20,803
Accrued capital contributions
23,344
23,344
15,245
15,245
Contributions payable to joint venture
59,412
59,412
0
0
Other accrued expenses
40,873
40,873
55,294
55,294
1,703
1,703
735
735
38,297
38,297
27,535
27,535
217,648
217,648
137,809
137,809
Trade creditors
Accrued grants and other transfers
Other payables
Borrowings (iii)
Finance lease liabilities
Total contractual financial liabilities
Notes:
(i) The amount of cash and deposits disclosed excludes cash and deposits relating to joint ventures totalling $0.430 (2013: $0 million) – Refer to Note
11. Investments accounted for using the proportionate consolidation method.
(ii) The amount of receivables disclosed excludes statutory receivables (ie. Amounts owing from Victorian Government and GST input tax credit
receivable) totalling $225.420 million (2013: $185.882 million) and receivables relating to joint ventures totalling $28.996 million (2013: $0 million)
– Refer to Note 8. Receivables and Note 11. Investments accounted for using the proportionate consolidation method.
(iii) The amount of payables disclosed excludes statutory payables (ie Amounts owing to Victorian Government for advances from the Public Account
and taxes payable) totalling $33.645 million (2013: $34.343 million) and payables relating to joint ventures totalling $7.734 million (2013: $0 million)
– Refer to Note 11. Investments accounted for using the proportionate consolidation method and Note 17. Payables.
(iv) The amount of borrowings disclosed excludes joint ventures totalling $249.003 million (2013: $0 million) – Refer to Note 11. Investments accounted
for using the proportionate consolidation method and Note 18. Borrowings.
Department of Environment and Primary Industries 2013 – 14 Annual Report
163
Note 25. Cash flow information
2014
$’000
2013
$’000
(400)
(1,041)
269,419
215,831
48,810
35,186
Total cash and deposits disclosed in the balance sheet
317,829
249,976
Balance per cash flow statement
317,829
249,976
(a) Reconciliation of cash and cash equivalents
Cash at bank and on hand (i)
Funds held in trust – cash
Funds held in trust – deposits on call and term deposits less than 3 months
Note:
(i) Due to the State of Victoria’s investment policy and government funding arrangements, the department does not hold a large cash reserve in its
bank accounts. Cash received by the department from the generation of income is generally paid into the state’s bank account, known as the Public
Account. Similarly, any departmental expenditure, including those in the form of cheques drawn by the department for the payment of goods and
services to its suppliers and creditors are made via the Public Account. The process is such that, the Public Account would remit to the department
the cash required for the amount drawn on the cheques. This remittance by the Public Account occurs upon the presentation of the cheques by the
department’s suppliers or creditors.
2014
$’000
2013
$’000
14,317
9,804
80,176
243,820
69,481
46,606
0
(5,000)
68
0
Net gain on disposal of property, plant and equipment
(7,321)
(10,410)
Loss arising from changes in fair value less estimated point-of-sale costs of biological assets
(1,170)
0
131
0
10,819
(212,222)
1,328
1,990
21
39
1,074
0
(16)
0
(b) Non-cash financing and investing activities
Acquisition of non-current assets by means of finance leases
(c) Reconciliation of net result for the period
Net result for the period
Non-cash movements
Depreciation
Assets received free of charge or for nominal consideration
Assets and services provided free of charge or for nominal consideration
Loss attributable to demise of livestock
Net (recognition)/de-recognition of non-financial assets
Write-down of property, plant, equipment and intangible assets
Net loss on financial instruments
Net loss arising from revaluation of long service leave and annual leave liabilities
Other provision discount rate adjustments
Department of Environment and Primary Industries 2013 – 14 Annual Report
164
Movements included in investing and financing activities
Share of associate’s (gains)/losses, excluding dividends
0
(4,019)
Decrease/(increase) in receivables
24,099
(28,564)
Decrease/(increase) in inventories
(2,140)
342
Increase in prepayments
(72,810)
(2,095)
Increase/(decrease) in payables
(57,432)
30,696
38,098
(14,966)
4,590
38
88,996
46,255
Movements in assets and liabilities
Increase/(decrease) in provisions
Increase in unearned income
Net cash flows from operating activities
Department of Environment and Primary Industries 2013 – 14 Annual Report
165
Note 26. Reserves
2014
$’000
2013 (i)
$’000
2012 (i)
$’000
5,645,068
5,640,462
5,645,649
0
0
0
160
0
0
0
0
(4,783)
5,997
56
(5,187)
Crown land – Land used for operational purposes
0
0
13
Crown land – Metropolitan parks
0
0
0
Crown land – National parks
0
17
4,783
Crown land – State forests
0
0
0
Freehold land
0
4,533
(13)
Roads
0
0
0
5,651,225
5,645,068
5,640,462
6,157
4,606
(5,187)
Physical asset revaluation surplus
Balance at the beginning of the year
Increment/(decrement) on revaluation during the year resulting from:
Buildings and structures
Historic and cultural assets
Crown land – Conservation reserves
Crown land – Land and unused roads
Balance as at the end of the year
Net change in physical asset revaluation surplus
Nature and purpose of physical asset revaluation surplus
The physical asset revaluation surplus is used to record increments and decrements on the revaluation of non-current physical
assets, as described in accounting policy Note 1(m) Non-financial assets.
Note:
(i) Refer to Note 35. Correction of prior year errors for details
Department of Environment and Primary Industries 2013 – 14 Annual Report
166
Note 27. Summary of compliance with annual parliamentary and special appropriations
(a) Summary of compliance with annual parliamentary appropriations
The following table discloses the details of the various parliamentary appropriations received by the department for the year. In accordance with accrual output-based management procedures
‘Provision for outputs’ and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of the department. Administered transactions are those that are undertaken on behalf of the state over
which the department has no control or discretion.
Appropriation Act
As at 30 June 2014
As at 30 June 2013
Financial Management Act 1994
Section 35
$’000
Total
parliamentary
authority
$’000
Appropriation
applied
$’000
Variance
$’000
112,717
0
1,561,419
1,396,229
165,190
8,959
51,612
99,322
1,128,340
1,030,695
97,645
46,659
(3,646)
69,357
0
216,756
146,539
70,217
0
30,388
(8,959)
106,120
0
175,386
114,199
61,187
662,000
0
0
0
4,123
0
666,123
629,616
36,507
426,079
0
0
0
0
0
426,079
416,770
9,309
231,313
0
0
0
0
0
231,313
231,313
0
0
0
0
0
0
0
0
0
0
26,000
0
0
1,762
263
0
28,025
28,025
0
30,913
0
0
0
0
0
30,913
30,650
263
2,228,714
67,721
220,741
0
186,460
0
2,703,636
2,431,722
271,914
1,324,687
35,704
143,273
0
157,732
99,322
1,760,718
1,592,314
168,404
Annual
appropriation
$’000
Advance from
Treasurer
$’000
Section 29
$’000
Section 30
$’000
Section 32
$’000
1,205,015
67,721
174,082
1,884
819,858
35,704
112,885
104,386
0
47,837
Controlled
Provision of outputs – Department of
Environment and Primary Industries (i)
Additions to Net Assets Base (ATNAB)
(ii)
Administered
Payments made on Behalf of the State
(POBOS) (iii)
Payments made on Behalf of the State
(POBOS) – Capital
State contribution under the Murray
Darling Basin Act 1993
Total
Note
(i)
Provision of outputs
The 2014 variance in provision of output for the department of $165.2 million predominately relates to the carry over of output appropriations available in 2014 for use in 2015 for proposed expenditure on a number of major initiative projects and
appropriation funding approved but not required.
(ii) Addition to Net Assets Base (ATNAB)
The 2014 variance of $70.2 million relates to the carry over of funding available in 2014 for use in 2015 for proposed expenditure on a number of major initiative projects and appropriation funding approved but not required.
(iii) Payments on Behalf of the State (POBOS)
The 2014 variance of $36.5 million relates to the carry over of funding available in 2014 for use in 2015 for proposed expenditure on a number of major initiative projects and appropriation funding approved but not required.
Department of Environment and Primary Industries 2013 – 14 Annual Report
167
(b) Summary of compliance with special appropriations
Appropriation Applied
Authority
Purpose
2014
$’000
2013
$’000
Appropriation of Commonwealth grants etc.
2,040
14,545
Appropriation of Commonwealth grants etc.
1,600
0
3,640
14,545
Output special appropriations
Section 10 of the Financial Management Act
1994
Capital special appropriations
Section 10 of the Financial Management Act
1994
Total special appropriations
(c) Total controlled appropriations applied
Notes
Provision of outputs
Annual Parliamentary Appropriations
27(a)
1,396,229
1,030,695
Special appropriations
27(b)
2,040
14,545
1,398,269
1,045,240
Total provision of output appropriations applied
Additions to net asset base
Annual Parliamentary Appropriations
27(a)
146,539
114,199
Special appropriations
27(b)
1,600
0
148,139
114,199
2014
$’000
2013
$’000
49
0
Property damage payments
0
101
Other
0
4
49
105
Total additions to net asset appropriations applied
Note 28. Ex-gratia payments
The department has made the following ex gratia payments:
Forgiveness or waiver of debt
Note
(i) Includes ex-gratia expenses greater than $5,000 or those considered material in nature.
(ii) These ex-gratia expenses have been recognised in the Comprehensive Operating Statement under ‘Other operating expenses’.
(iii) Waiver of a claim made by the department against a supplier for delay in completion of milestones.
Department of Environment and Primary Industries 2013 – 14 Annual Report
168
Note 29. Annotated income agreements
The following is a listing of section 29 annotated income agreements approved by the Treasurer:
2014
$’000
2013
$’000
Goulburn-Murray Water Connections Project Stage 1
10,818
718
Sunraysia Modernisation
27,960
0
38,778
718
Barwon Water/ Shell Recycling
0
2,000
Black Rock Water Recycling Project
0
3,000
Extending Water Recycling at Torquay
5,590
2,360
GRDC Gene Bank
2,170
0
7,760
7,360
135
0
79
130
609
0
0
10,768
2,881
1,725
Land Titles Office
0
320
Landata
0
18,046
La Trobe contributions to Quarterly Service Payments
5,178
0
Mapping
2,842
3,447
Goulburn-Murray Water Connections Project Stage 1
4,614
5,632
Parks user fees and Werribee Mansion
6,602
5,382
38
43
Sale of timber resources to Australian Paper
25,274
0
Research and Experimental Projects
24,719
0
180
0
0
2,710
Sunraysia Modernisation
2,070
455
Fisheries Cost Recovery
181
0
Capital items
Commonwealth specific purpose payments – capital
User charges, or sales of goods and services
Agriculture and Veterinary Chemical Permits
BushBroker
Commercial Forests
Electronic Conveyancing
Revenue retained on behalf of the EPA
Queenscliff Harbour Redevelopment
Scallops Fisheries Auctions
SPEARS Project
Department of Environment and Primary Industries 2013 – 14 Annual Report
169
Water Register – Planning
0
325
845
1,179
76,247
50,162
2,121
0
2,121
0
2014
$’000
2013
$’000
352
0
26,825
29,571
1,458
0
Plant and Exotic Disease Preparedness and Eradication
753
0
Goulburn-Murray Water Connections Project Stage 2
385
433
Murray Darling Basin - Environmental Works and Measures Feasibility Program
188
603
7,905
0
28
4
0
103
22,274
0
0
70
11,884
0
484
489
0
25,200
72,536
56,473
197,442
114,713
Water Register – State
Municipal
Domestic Animals Act
Note 29. Annotated income agreements (continued)
Commonwealth specific purpose payments – output
Biodiversity Fund
Caring for our Country
Coal Seam Gas Bioregional Assessments
Murray Darling Basin Plan Implementation
National Framework for Compliance and Enforcement
North East Victoria Bushfire Spotting Digital Regions Initiative
Research and Experimental Projects – Commonwealth contributions
Roads to Recovery Program
Victorian Farm Modernisation
Water Register – Commonwealth – Stage 2
Wimmera Irrigation Water Procurement and District Decommissioning
Total annotated income agreements
Department of Environment and Primary Industries 2013 – 14 Annual Report
170
Note 30. Trust account balances
The following is a listing of trust account balances in cash, deposits and investments relating to trust accounts controlled and
administered by the department.
2014
Balance
as at 1
July
$’000
MoG
transfer
from
former
DPI
$’000
Total
receipts
$’000
Total
payments
$’000
Balance
as at 30
June
$’000
942
0
35
(79)
898
259
9
20
0
288
9,164
(17)
6,556
(15,080)
623
0
16,934
6,251
(5,594)
17,591
0
1,282
21
(607)
696
3,452
0
8,573
(2,415)
9,610
55,978
0
154,498
(148,239)
62,237
51,790
5,825
26,480
(12,829)
71,266
125,686
36,140
118,702
(122,011)
158,517
Controlled trusts
Cash, deposits and investments
Albury Wodonga Land Transfer
Operates under s19 of the Financial Management Act 1994 as a specific
purpose operating account. It receives funding and earns interest for the
appropriate management and protection of land transferred from the Albury
Wodonga Corporation.
Department Suspense
Operates under s19(2) of the Financial Management Act 1994 as a working
account. It holds all generic unclaimed funds until they have been identified.
DTF VicFleet (i)
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account. It receives funding and makes payments in relation
to the government motor vehicle pool.
Disease Compensation Fund
Operates under s5 of the Livestock Disease Control Act 1994 as a special
purpose operating account. It provides funds to support the control and
eradication of any outbreak and to provide compensation for livestock
destroyed due to suffering or suspected of suffering from diseases.
Fisheries Plant and Equipment
Operates under s141 of the Fisheries Act 1995 as a special purpose operating
account. It enable the purchase of plant or equipment required for the purposes
of the Act, the operation, maintenance and repair of that plant or equipment, and
to enable the payment of any other expenses in relation to that plant and
equipment.
Melbourne Strategic Assessment Trust Account
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account. It receives fees and disburses payments in relation
to the delivery of the Melbourne Strategic Assessment Program.
Parks and Reserves Trust Account
Operates under s153A of the Water Industry Act 1994 as a specific purpose
operating account. It receives the Metropolitan Parks Improvement Rate and
makes payments for the management and control of open spaces, parks and
waterways in the metropolitan area.
Plant and Machinery Trust Account
Operates under s23 of the Conservation, Forests and Lands Act 1987 as a
specific purpose operating account. It receives funding and makes payments
for the renewal, replacement, operation, maintenance and repair of plant and
machinery.
Project Trust Account
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account. It receives income and makes payments associated
with services the department has been contracted to supply on a fee for service
Department of Environment and Primary Industries 2013 – 14 Annual Report
171
basis.
Recreational Fishing Licence
0
7,089
6,378
(6,667)
6,800
59
162
0
(352)
(131)
12,676
0
4,559
(5,628)
11,607
11,154
0
4,631
(10,745)
5,040
271,160
67,424
336,704
(330,246)
345,042
Operates under s151B of the Fisheries Act 1995 as a special purpose
operating account. It disburses revenue derived from the sale of recreational
fishing licenses to projects that will further improve recreational fishing
opportunities in Victoria, and to fund costs incurred in the administration of
recreational fishing licences and the account.
Revenue Suspense
Operates under s19(2) of the Financial Management Act 1994 as a
departmental account. It records all unknown revenue receipts; funds are held
until receipts are identified.
Stores Suspense
Operates under s23 of the Conservation, Forests and Lands Act 1987 as a
specific purpose operating account. It receives funding and makes payments
for the purchase of stores and the cost of manufacturing articles for stock.
Treasury Trust – Floods
Operates under s19 of the Financial Management Act 1994 as a shared
operating account. It makes state funds available for the restoration of assets
and public facilities damaged in floods.
Total controlled trusts
2013
Balance as
at 1 July
$’000
Total
receipts
$’000
Total
payments
$’000
Balance as
at 30 June
$’000
830
177
(65)
942
79
209
(29)
259
4,155
11,283
(6,274)
9,164
0
3,480
(28)
3,452
46,868
139,443
(130,333)
55,978
46,698
17,755
(12,663)
51,790
Controlled trusts
Cash, deposits and investments
Albury Wodonga Land Transfer
Operates under s19 of the Financial Management Act 1994 as a specific
purpose operating account. It receives funding and earns interest for the
appropriate management and protection of land transferred from the Albury
Wodonga Corporation.
Department Suspense
Operates under s19(2) of the Financial Management Act 1994 as a working
account. It holds all generic unclaimed funds until they have been identified.
DTF VicFleet (i)
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account. It receives funding and makes payments in relation
to the government motor vehicle pool.
Melbourne Strategic Assessment Trust Account
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account. It receives fees and disburses payments in relation
to the delivery of the Melbourne Strategic Assessment Program.
Parks and Reserves Trust Account
Operates under s153A of the Water Industry Act 1994 as a specific purpose
operating account. It receives the Metropolitan Parks Improvement Rate and
makes payments for the management and control of open spaces, parks and
waterways in the metropolitan area.
Plant and Machinery Trust Account
Operates under s23 of the Conservation, Forests and Lands Act 1987 as a
specific purpose operating account. It receives funding and makes payments
for the renewal, replacement, operation, maintenance and repair of plant and
Department of Environment and Primary Industries 2013 – 14 Annual Report
172
machinery.
Project Trust Account
142,069
77,034
(93,417)
125,686
62
0
(3)
59
5,009
10,334
(2,667)
12,676
0
30
(30)
0
13,496
14,839
(17,181)
11,154
259,266
274,584
(262,690)
271,160
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account. It receives income and makes payments
associated with services the department has been contracted to supply on a
fee for service basis.
Revenue Suspense
Operates under s19(2) of the Financial Management Act 1994 as a
departmental account. It records all unknown revenue receipts; funds are held
until receipts are identified.
Stores Suspense
Operates under s23 of the Conservation, Forests and Lands Act 1987 as a
specific purpose operating account. It receives funding and makes payments
for the purchase of stores and the cost of manufacturing articles for stock.
Treasury Trust – Small Scale Community Support Fund
Operates under s19 of the Financial Management Act 1994 as an operating
account shared across government. It allocates funds the government receives
from gaming machines back to the community through a variety of programs.
Treasury Trust – Floods
Operates under s19 of the Financial Management Act 1994 as a shared
operating account. It makes state funds available for the restoration of assets
and public facilities damaged in floods.
Total controlled trusts
Note:
(i) VicFleet is part of a Trust Fund held by DTF. Any deficit represents a loss on the early termination of individual motor vehicle finance leases by the
department. The department is required to reimburse the Trust Fund held by DTF for any deficit balance.
2014
Balance
as at 1
July
$’000
MoG
transfer
from
former
DPI
$’000
Total
receipts
$’000
Total
payments
$’000
Balance as at 30
June
$’000
8
0
1
0
9
41
0
1
0
42
0
61
2
0
63
405
0
0
(290)
115
Administered trusts
Cash, deposits and investments
CH Barbour Forestry Foundation
Operates under s19(2) of the Financial Management Act 1994 as a
specific purpose operating account.
It manages funds for prizes, scholarships, research and private
donations.
J Gilmore Farm Water Supply and Hanslow Cup
Operates under s19(2) of the Financial Management Act 1994 as a
specific purpose operating account.
It manages funds for prizes, scholarships, research and private
donations.
McCashney Scholarship
Operates under s19 of the Financial Management Act 1994 as a
specific purpose operating account.
To facilitate scholarships to departmental staff undertaking part-time
study on a work related topic and who are not able to access any
other benefits under study leave arrangements.
Natural Disaster Relief Fund
Department of Environment and Primary Industries 2013 – 14 Annual Report
173
Operates under s19(2) of the Financial Management Act 1994 as a
holding account.
It holds money supplied by the Commonwealth until required for
expenditure in the case of any natural disasters.
Paid Parental Leave Treasury Trust Fund
49
50
43
(76)
66
(49)
19
89
(41)
18
31
8
1
(4)
36
22
0
1
0
23
924
275
104
(110)
1,193
76
0
1
0
77
1,507
413
243
(521)
1,642
Operates under s19(2) of the Financial Management Act 1994 as a
working account.
It receives funds from the Commonwealth to meet the eligible costs of
parental leave for departmental employees.
Public Service Commuters’ Club (ii)
Operates under s19 of the Financial Management Act 1994 as a
working account.
It services loans to staff for the purchase of yearly tickets and funds
are recouped through staff salaries and wages.
Securities Trust Fund
Operates under s19 of the Financial Management Act 1994 as a
working account.
It receives and holds bonds for use by third parties of public land.
Sidney Plowman Award
Operates under s19(2) of the Financial Management Act 1994 as a
specific purpose operating account.
It manages funds for prizes, scholarships, research and private
donations.
Treasury Trust
Operates under s19(2) of the Financial Management Act 1994 as a
working account.
It records the receipt and disbursement of unclaimed and unidentified
monies such as unpresented cheques, surplus cash, unidentified
remittances etc.
Victorian State Foresters’ Association
Operates under s19(2) of the Financial Management Act 1994 as a
specific purpose operating account.
It manages funds for prizes, scholarships, research and private
donations.
Total administered trusts
2013
Balance as at
1 July
$’000
Total receipts
$’000
Total
payments
$’000
Balance as at
30 June
$’000
8
0
0
8
40
2
(1)
41
405
0
0
405
Administered trusts
Cash, deposits and investments
CH Barbour Forestry Foundation
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account.
It manages funds for prizes, scholarships, research and private donations.
J Gilmore Farm Water Supply and Hanslow Cup
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account.
It manages funds for prizes, scholarships, research and private donations.
Natural Disaster Relief Fund
Operates under s19(2) of the Financial Management Act 1994 as a holding
Department of Environment and Primary Industries 2013 – 14 Annual Report
174
account.
It holds money supplied by the Commonwealth until required for expenditure in
the case of any natural disasters.
Paid Parental Leave Treasury Trust Fund
27
22
0
49
(73)
24
0
(49)
41
11
(21)
31
22
0
0
22
916
42
(34)
924
74
2
0
76
1,460
103
(56)
1,507
Operates under s19(2) of the Financial Management Act 1994 as a working
account.
It receives funds from the Commonwealth to meet the eligible costs of parental
leave for departmental employees.
Public Service Commuters’ Club
(ii)
Operates under s19 of the Financial Management Act 1994 as a working
account.
It services loans to staff for the purchase of yearly tickets and funds are
recouped through staff salaries and wages.
Securities Trust Fund
Operates under s19 of the Financial Management Act 1994 as a working
account.
It receives and holds bonds for usage by third parties of public land.
Sidney Plowman Award
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account.
It manages funds for prizes, scholarships, research and private donations.
Treasury Trust
Operates under s19(2) of the Financial Management Act 1994 as a working
account.
It records the receipt and disbursement of unclaimed and unidentified monies
such as unpresented cheques, surplus cash, unidentified remittances etc.
Victorian State Foresters’ Association
Operates under s19(2) of the Financial Management Act 1994 as a specific
purpose operating account.
It manages funds for prizes, scholarships, research and private donations.
Total administered trusts
Trust Accounts opened or closed by the department during 2014
The Melbourne Strategic Trust Account was opened during the year.
The following trust accounts were transferred from the former Department of Primary Industries (DPI) during the year as part of the
restructure of administrative arrangements (refer Note 34. Restructure of administrative arrangements):
Controlled trusts
Disease Compensation Fund
Fisheries Plant and Equipment
Recreational Fishing License
Administered trusts
McCashney Scholarship
In addition, the following trust account balances were transferred from former DPI to the department’s existing fund balances:
Controlled trusts
Department Suspense
Plant and Machinery Trust Account
Project Trust Account
Revenue Suspense
Administered trusts
Paid Parental Leave Treasury Trust Fund
Treasury Trust
Department of Environment and Primary Industries 2013 – 14 Annual Report
175
Treasury trust – Victorian floods
The state has made funds available for the restoration of assets and public facilities damaged in floods through the Treasury Trust
Fund.
2014
$’000
2013
$’000
Cash at bank at 30 June
5,040
11,154
Total funds under management
5,040
11,154
Contributions by the Victorian government
4,306
14,839
325
0
4,631
14,839
435
2,456
77
5,954
1,053
1,502
Payments to local governments
243
1,937
Payments to community groups
61
550
Payments on state-owned assets
2,572
252
Other payments
6,304
4,530
Total payments
10,745
17,181
5,040
11,154
Treasury trust – Victorian floods
Total receipts
Payments to catchment management authorities
Payments to portfolio agencies
Payments to non-portfolio agencies
Balance carried forward at 30 June
Third party funds under management
No third party funds were held under management for either 2013–14 or 2012–13.
Department of Environment and Primary Industries 2013 – 14 Annual Report
176
Note 31. Responsible persons
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the
following disclosures are made regarding responsible persons for the reporting period.
Names
The persons who held the positions of Ministers and Accountable Officers in the department are as follows:
Minister for Water, Minister for Agriculture and Food Security
The Hon. Peter Walsh MLA
1 July 2013 to 30 June 2014
Minister for Environment and Climate Change
The Hon. Ryan Smith MP
1 July 2013 to 30 June 2014
Secretary
Mr Adam Fennessy
1 July 2013 to 30 June 2014
Acting arrangements
The Hon. Peter Walsh MLA acted as Minister for Environment and Climate Change during the period 25 September 2013
to 9 October 2013.
The Hon. Ryan Smith MP acted as Minister for Water and Minister for Agriculture and Food Security during the period 19
to 26 October 2013 and the period 21 February to 1 March 2014.
Mr Luke Wilson acted in the position of Secretary of the department during the periods 8 to 19 July 2013 and 22 to 28 February 2014.
His salary for these periods is included in Note 32(a) Remuneration of executive officers.
Mr Bernie O’Sullivan acted in the position of Secretary of the department during the periods 23 to 27 September 2013 and 14 to 26
April 2014. His salary for these periods is included in Note 32(a) Remuneration of executive officers.
Remuneration
Remuneration received or receivable by the Accountable Officer in connection with the management of the department during the
reporting period was in the range:
2014
2013
No.
No.
$80,000 – $89,999
0
1
$340,000 – $349,999
0
1
$410,000 – $419,999
1
0
Income band
Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.
Related party transactions
Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and
there are no matters to report.
Department of Environment and Primary Industries 2013 – 14 Annual Report
177
Note 32. Remuneration of executives and payments to other personnel
(a) Remuneration of executive officers
The number of executive officers, other than Ministers and the Accountable Officer, and their total remuneration during the reporting
periods 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 total annualised employee equivalent provides a measure of full time equivalent
executive officers over the reporting period.
Several factors have affected total remuneration payable to executives over the year. A number of employment contracts were
completed and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend
on the terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts only
include the payment of bonuses on the successful completion of the full term of the contract.
A number of these contract completion bonuses became payable during the year.
A number of executive officers retired, resigned or were retrenched in the past year. This, along with the transfer of former DPI
executive officers, has impacted on total remuneration figures due to the inclusion of annual leave, long service leave and
retrenchment payments.
As of 30 June 2014, the department employed 64 executive officers (2013: 50 executive officers).
Total remuneration
Base remuneration
2014
2013
2014
2013
No.
No.
No.
No.
22
16
28
16
$100,000 – $109,999
2
0
1
0
$110,000 – $119,999
1
1
2
2
$120,000 – $129,999
0
1
0
1
$130,000 – $139,999
4
1
4
1
$140,000 – $149,999
2
2
1
1
$150,000 – $159,999
2
3
2
7
$160,000 – $169,999
2
4
2
1
$170,000 – $179,999
1
2
2
4
$180,000 – $189,999
3
5
10
6
$190,000 – $199,999
11
6
9
4
$200,000 – $209,999
8
2
5
3
$210,000 – $219,999
5
4
5
5
$220,000 – $229,999
4
4
4
0
$230,000 – $239,999
4
0
1
1
$240,000 – $249,999
1
0
3
2
$250,000 – $259,999
1
2
0
0
$260,000 – $269,999
2
1
1
0
Income band
Less than $100,000
Department of Environment and Primary Industries 2013 – 14 Annual Report
178
$280,000 – $289,999
2
0
0
0
$300,000 – $309,999
1
0
0
0
$330,000 – $339,999
0
0
0
1
$340,000 – $349,999
0
0
1
0
$350,000 – $359,999
0
1
0
0
$370,000 – $379,999
1
0
0
0
$410,000 – $419,999
1
0
0
0
$420,000 – $429,999
1
0
0
0
81
55
81
55
57.0
43.4
57.0
43.4
13,366
8,392
11,444
8,050
Total number of executives
Total annualised employee equivalent
Total amount $’000
Note, includes executives from the Office of Living Victoria, which forms part of the reporting entity.
This table discloses executives of the department throughout the 2013-14 and 2012-13 financial years.
(b) Payments to other personnel (i.e. contractors charged with significant management responsibilities)
The following disclosures are made in relation to other personnel of the department, i.e. contractors charged with significant
management responsibilities.
Payments have been made to a number of contractors with significant management responsibilities, which are disclosed in expense
bands of $10,000. These contractors are responsible for planning, directing or controlling, directly or indirectly, some of the
department’s activities.
2014
2013
$160,000 – $169,999
1
0
$180,000 – $189,999
1
0
$200,000 – $209,999
1
0
$280,000 – $289,999
1
0
$324,000 – $324,999
0
1
$425,000 – $425,999
0
1
$840,427
$749,778
Expense band
Total expenses (exclusive of GST)
Department of Environment and Primary Industries 2013 – 14 Annual Report
179
Note 33. Remuneration of auditors
2014
$’000
2013
$’000
395
276
395
276
Victorian Auditor-General’s Office
Audit of the financial statements
Note 34. Restructure of administrative arrangements
On April 9 2013, the Government announced a restructure of its activities and on 25 June 2013 issued Administrative Arrangements
Order (No. 217) 2013 under the Administrative Arrangements Act 1983, taking effect from 1 July 2013. As a consequence of the
restructure, the department (as transferor) relinquished its Land Administration and Property Information output to the Department of
Transport, Planning and Local Infrastructure (the transferee). The combined income and expenses for the Land Administration and
Property Information output for the reporting period are reported by the Department of Transport, Planning and Local Infrastructure.
In addition, the Department of Primary Industries ceased to exist from 1 July 2013, with the department (as transferee) assuming
responsibility for the Development of Primary Industries output and the Department of State Development and Business Innovation
assuming responsibility for outputs associated with the Energy and Resources portfolio. The combined income and expenses for the
Development of Primary Industries output for the reporting period are disclosed in Note 2. Departmental (Controlled) Outputs and
Note 3. Administered (non-controlled) items.
The net assets assumed by the department for the former Development of Primary Industries output as a result of the restructure was
recognised in the balance sheet at the carrying amount of those assets in the transferor’s (former Department of Primary Industries)
balance sheet immediately before the transfer.
The net assets transfer were treated as a contribution to capital by the Crown.
2014
Controlled
$’000
Administere
d
$’000
In respect of the activities assumed, the following assets and liabilities were recognised at the date of the transfer:
Output – Development of Primary Industries – transfer in
Assets
Cash and deposits
68,147
414
111,351
1,976
Inventories
363
0
Non-financial physical assets classified as held for sale in form of finance lease (Note 13)
123
0
731,399
0
Biological assets (Note 15)
38,164
0
Intangible assets (Note 16)
36,428
0
Receivables
Property, plant and equipment (Note 14)
Department of Environment and Primary Industries 2013 – 14 Annual Report
180
Prepayments
1,856
0
(94,107)
(351)
(263,305)
0
(4,598)
(13,105)
Provisions
(54,150)
0
Net assets recognised at the date of transfer
571,671
(11,066)
Correction adjustment to biological assets (Note 15) (i)
(26,766)
0
(6,380)
0
538,525
(11,066)
Liabilities
Payables
Borrowings
Other liabilities
Correction adjustment to payables (ii)
Revised net assets recognised at the date of transfer
In respect of the activities relinquished, the following assets and liabilities were recognised at the date of the transfer:
Output – Land Administration and Property Information – transfer out
Assets
Receivables
21,706
3,044
Investments accounted for using the equity method (Note 10)
14,412
0
Property, plant and equipment (Note 14)
11,804
0
(4,219)
0
(670)
0
(11,884)
(283)
31,149
2,761
507,376
(13,827)
Liabilities
Payables
Borrowings
Provisions
Net assets transferred at the date of transfer
Net capital contribution from the Crown
Note:
(i) An adjustment of $26.766 million has been made to correct the value of commercial native forest biological assets transferred to the department.
The net impact of the error was an overstatement of biological assets of $26.766 million and an overstatement of contributed capital of $26.766
million.
(ii) An adjustment of $6.380 million has been made to correct the contributions payable to the Royal Melbourne Showgrounds joint venture transferred
to the department. The net impact of the error was an understatement of payables of $6.380 million and an understatement of contributed capital of
$6.380 million.
Department of Environment and Primary Industries 2013 – 14 Annual Report
181
Note 35. Correction of prior year errors
The errors described below have been adjusted by restating each of the affected financial statement line items for the prior year.
(a) Errors in recording asset transfers
As part of the ongoing state Crown land reconciliation and ongoing maintenance of the land information management system, a
number of Crown land parcels have been identified that were: recorded both by the department and another government entity;
created in error; or consigned to a land manager in a previous financial year.
Adjustments have been made to correct prior year balances. Apart from the impact on the prior year operating results and contributed
capital of these errors, these items also included valuations booked by the department in prior years.
The net impact of these errors is:
2012–13 Opening balances
an overstatement of property, plant and equipment of $12.036 million
an understatement of accumulated surplus/(deficit) of $12.614 million
an overstatement of contributed capital of $19.463 million
an overstatement of the physical asset revaluation surplus of $5.187 million.
The below section titled ‘Restatement of financial statements as a result of the correction of an error’ shows the restatement of each
line item affected by the error.
(b) Restatement of financial statements as a result of the correction of an error – 30 June 2013 comparative year
Financial statement line item affected:
Actual 2013
$’000
Correction of
errors to 30
June 2012
$’000
Correction of
2013 errors
$’000
Restated
2013
$’000
7,329,603
(12,036)
0
7,317,567
Total non-financial assets
7,364,459
(12,036)
0
7,352,423
Total assets
7,853,608
(12,036)
0
7,841,572
Net assets
7,558,451
(12,036)
0
7,546,415
(2,171)
12,614
0
10,443
5,650,255
(5,187)
0
5,645,068
Contributed capital
1,910,367
(19,463)
0
1,890,904
Net worth
7,558,451
(12,036)
0
7,546,415
At fair value
2,426,744
(33,948)
0
2,392,796
Total Crown land – Land and unused roads
2,426,744
(33,948)
0
2,392,796
1,061,790
3,615
0
1,065,405
Balance sheet (Extract)
Notes
Non-financial assets
Property, plant and equipment
1(m),14
Equity
Accumulated surplus/(deficit)
Physical asset revaluation surplus
26
Note 14 – Property, plant and equipment (Extract)
Crown land – Land and unused roads
Crown land – National parks
At fair value
Department of Environment and Primary Industries 2013 – 14 Annual Report
182
Total Crown land – National parks
1,061,790
3,615
0
1,065,405
At fair value
642,437
18,297
0
660,734
Total Crown land – Conservation reserves
642,437
18,297
0
660,734
Total land
5,682,895
(12,036)
0
5,670,859
Total property, plant and equipment
7,329,603
(12,036)
0
7,317,567
Actual 2013
$’000
Correction of
errors to 30
June 2012
$’000
Correction of
2013 errors
$’000
Restated
2013
$’000
5,645,649
(5,187)
0
5,640,462
56
0
0
56
5,650,255
(5,187)
0
5,645,068
4,606
0
0
4,606
Crown land – Conservation reserves
Note 26 – Physical asset revaluation surplus (Extract)
Physical asset revaluation surplus
Balance at the beginning of the financial year
Crown land – Land and unused roads
Balance at the end of the year
Net change in physical asset revaluation surplus
(c) Restatement of financial statements as a result of the correction of an error – 30 June 2012 comparative year
Financial statement line item affected:
Comprehensive operating statement (Extract)
Notes
Actual 2012
$’000
Correction of
error
$’000
Restated
2012
$’000
(43,806)
12,614
(31,192)
(47,661)
12,614
(35,047)
12,621
12,614
25,235
0
(5,187)
(5,187)
0
(5,187)
(5,187)
12,621
7,427
20,048
Net result from transactions (net operating balance)
Other economic flows included in net result
Net loss on non-financial assets
1(i), 6(a)
Total other economic flows included in net result
Net result
Other economic flows – other comprehensive income
Changes in physical asset revaluation surplus
Total other economic flows – comprehensive income
Comprehensive result
26
Department of Environment and Primary Industries 2013 – 14 Annual Report
183
Balance sheet (Extract)
Notes
Non-financial assets
Property, plant and equipment
1(m),14
7,115,463
(12,036)
7,103,427
Total non-financial assets
7,148,561
(12,036)
7,136,525
Total assets
7,592,046
(12,036)
7,580,010
Net assets
7,308,804
(12,036)
7,296,768
(245,991)
12,614
(233,377)
5,645,649
(5,187)
5,640,462
Contributed capital
1,909,146
(19,463)
1,889,683
Net worth
7,308,804
(12,036)
7,296,768
Actual 2012
$’000
Correction of
error
$’000
Restated
2012
$’000
At fair value
2,267,128
(33,948)
2,233,180
Total Crown land – Land and unused roads
2,267,128
(33,948)
2,233,180
At fair value
1,059,470
3,615
1,063,085
Total Crown land – National parks
1,059,470
3,615
1,063,085
At fair value
642,095
18,297
660,392
Total Crown land – Conservation reserves
642,095
18,297
660,392
Total land
5,501,493
(12,036)
5,489,457
Total property, plant and equipment
7,115,463
(12,036)
7,103,427
Equity
Accumulated deficit
Physical asset revaluation surplus
Note 14 – Property, plant and equipment (Extract)
26
Crown land – Land and unused roads
Crown land – National parks
Crown land – Conservation reserves
Department of Environment and Primary Industries 2013 – 14 Annual Report
184
Note 26 – Physical asset revaluation surplus (Extract)
Physical asset revaluation surplus
Balance at the beginning of the financial year
Crown land – Land and unused roads
Balance at the end of the year
Net change in physical asset revaluation surplus
5,645,649
0
5,645,649
0
(5,187)
(5,187)
5,645,649
(5,187)
5,640,462
0
(5,187)
(5,187)
Note 36. Glossary of terms and style conventions
Glossary of terms
Amortisation
Amortisation is the expense that results from the consumption, extraction or use over time of a non-produced physical or intangible
asset. This expense is classified as an other economic flow. Amortisation charged on finance lease vehicles is classified as an
expense from transactions.
Associates
Associates are all entities over which an entity has significant influence but not control, generally accompanying a shareholding and
voting rights of between 20 per cent and 50 per cent.
Biological assets
Biological assets comprise of commercial forests and also any living animal, plant or agricultural produce that is the harvested product
of biological assets.
Borrowings
Borrowings refers to interest-bearing finance leases and other interest-bearing arrangements.
Comprehensive result
The net result of all items of income and expense recognised for the period. It is the aggregate of operating result and other
comprehensive income.
Capital asset charge
The capital asset charge represents the opportunity cost of capital invested in the non-financial physical assets used in the provision
of outputs.
Commitments
Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or
statutory sources.
Current grants
Amounts payable or receivable for current purposes for which no economic benefits of equal value are receivable or payable in return.
Depreciation
Depreciation is an expense that arises from the consumption through wear or time of a produced physical or intangible asset. This
expense is classified as a ‘transaction’ and so reduces the ‘net result from transaction’.
Effective interest method
The effective interest method is used to calculate the amortised cost of a financial asset and of allocating interest income over the
relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial instrument, or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
Employee benefits expenses
Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave
entitlements, redundancy payments, defined benefits superannuation plans and defined contribution superannuation plans.
Ex-gratia payments
Ex-gratia expenses mean the voluntary payment of money or other non-monetary benefit (e.g. a write off) that is not made either to
acquire goods, services or other benefits for the entity or to meet a legal liability, or to settle or resolve a possible legal liability or claim
against the entity.
Department of Environment and Primary Industries 2013 – 14 Annual Report
185
Financial asset
A financial asset is any asset that is:
(a) cash
(b) an equity instrument of another entity
(c) a contractual or statutory right:
to receive cash or another financial asset from another entity or
to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity or
(d) a contract that will or may be settled in the entity’s own equity instruments and is:
a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments or
a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed
number of the entity’s own equity instruments.
Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity. Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a result of
statutory requirements imposed by governments) are not financial instruments.
Financial liability
A financial liability is any liability that is:
(a) a contractual obligation:
(i) to deliver cash or another financial asset to another entity or
(ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the
entity or
(b) a contract that will or may be settled in the entity’s own equity instruments and is:
(i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments or
(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed
number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments
that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.
Financial statements
A complete set of financial statements comprises:
(a) a statement of financial position as at the end of the period
(b) a statement of profit or loss and other comprehensive income for the period
(c) a statement of changes in equity for the period
(d) a statement of cash flows for the period
(e) notes, comprising a summary of significant accounting policies and other explanatory information
(f) comparative information in respect of the preceding period as specified in paragraphs 38 of AASB 101 Presentation of Financial
Statements and
(g) a statement of financial position as at the beginning of the preceding period when an entity applies an accounting policy
retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial
statements in accordance with paragraphs 41 of AASB 101.
Grants and other transfers
Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving
approximately equal value in return. Grants can either be operating or capital in nature.
While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a
claim to directly receive benefits of approximately equal value. For this reason, grants are referred to by the AASB as involuntary
transfers and are termed nonreciprocal transfers. Receipt and sacrifice of approximately equal value may occur, but only by
coincidence. For example, governments are not obligated to provide commensurate benefits, in the form of goods or services, to
particular taxpayers in return for their taxes.
Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively,
they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their
use.
General government sector
The general government sector comprises all government departments, offices and other bodies engaged in providing services free
Department of Environment and Primary Industries 2013 – 14 Annual Report
186
of charge or at prices significantly below their cost of production. General government services include those that are mainly
non-market in nature, those that are largely for collective consumption by the community and those that involve the transfer or
redistribution of income. These services are financed mainly through taxes, or other compulsory levies and user charges.
Grants for on-passing
All grants paid to one institutional sector (e.g. a state general government entity) to be passed on to another institutional sector (e.g. local
government or a private non-profit institution).
Intangible produced assets
Refer to produced assets in this glossary.
Intangible non-produced assets
Refer to non-produced asset in this glossary.
Interest expense
Costs incurred in connection with the borrowing of funds including interest on bank overdrafts and short-term and long-term
borrowings, amortisation of discounts or premiums relating to borrowings, interest component of finance leases repayments, and the
increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time.
Interest income
Interest income includes unwinding over time of discounts on financial assets and interest received on bank term deposits and other
investments.
Joint ventures
Joint ventures are contractual arrangements between the department and one or more other parties to undertake an economic
activity that is subject to joint control and have right to the net assets of the arrangement. Joint control only exists when the strategic
financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers).
Net result
Net result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains and
expenses (including losses) recognised for the period, excluding those that are classified as ‘other economic flows – other
comprehensive income’.
Net result from transactions/net operating balance
Net result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses from
transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes
in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and
can be attributed directly to government policies.
Net worth
Assets less liabilities, which is an economic measure of wealth.
Non-financial assets
Non-financial assets are all assets that are not ‘financial assets’. It includes inventories, land, buildings, road networks, land under
roads, plant and equipment, cultural and heritage assets, intangible and biological assets.
Non-produced assets
Non-produced assets are assets needed for production that have not themselves been produced. They include land, subsoil assets,
and certain intangible assets. Non-produced intangibles are intangible assets needed for production that have not themselves been
produced. They include constructs of society such as patents.
Non-profit institution
A legal or social entity that is created for the purpose of producing or distributing goods and services, but is not permitted to be a
source of income, profit or other financial gain for the units that establish, control or finance it.
Other economic flows included in net result
Other economic flows included in net result are changes in the volume or value of an asset or liability that do not result from
transactions. It includes:
gains and losses from disposals, revaluations and impairments of non-financial physical and intangible assets and
fair value changes of financial instruments and agricultural assets.
Other economic flows – other comprehensive income
Other economic flows – other comprehensive income comprises items (including reclassification adjustments) that are not recognised
in net result as required or permitted by other Australian Accounting Standards.
The components of other economic flows-other comprehensive income include:
(a) changes in physical asset revaluation surplus and
Department of Environment and Primary Industries 2013 – 14 Annual Report
187
(b) gains and losses on remeasuring available-for-sale financial assets.
Payables
Includes short and long term trade debt and accounts payable, grants, taxes and interest payable.
Produced assets
Produced assets include buildings, plant and equipment, inventories, cultivated assets and certain intangible assets. Intangible
produced assets may include computer software, and research and development costs (which does not include the start-up costs
associated with capital projects).
Receivables
Includes amounts owing from government through appropriation receivable, short and long term trade credit and accounts receivable,
accrued investment income, grants, and interest receivable.
Sales of goods and services
Refers to income from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods
and services, fees from regulatory services and work done as an agent for private enterprises. It also includes rental income under
operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use of
non-produced assets such as land. User charges includes sale of goods and services income.
Supplies and services
Supplies and services generally represent the cost of goods sold and the day-to-day running costs, including maintenance costs,
incurred in the normal operations of the department.
Taxation income
Taxation income represents income received from the state’s taxpayers and includes:
levies (including the environmental levy) on statutory corporations in other sectors of government
the Metropolitan Parks Improvement Rate
other taxes, including landfill levies, licence and concession fees.
Transactions
Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two
entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting
as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually
agreed interactions between the government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or
for nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the
government.
Style conventions
Figures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components reflect
rounding. Percentage variations in all tables are based on the underlying unrounded amounts.
The notation used in the tables is as follows:
(xxx.x)
negative numbers
200x
year period
200x–0x
year period
The financial statements and notes are presented based on the illustration for a government department in the 2013–14 Model Report
for Victorian Government Departments. The presentation of other disclosures is generally consistent with the other disclosures made
in earlier publications of the department’s annual reports.
Department of Environment and Primary Industries 2013 – 14 Annual Report
188
Appendices
Appendix 1: Disclosure Index
The annual report is prepared in accordance with all relevant Victorian legislation and pronouncements. This index has been
prepared to facilitate identification of the department’s compliance with statutory disclosure requirements.
Legislation
Requirement
Page
reference
Ministerial Directions
Report of Operations – FRD Guidance
Charter and purpose
FRD 22E
Manner of establishment and the relevant Ministers
Page 4
FRD 22E
Objectives, functions, powers and duties
Page 10
FRD 22E
Nature and range of services provided
Page 10
Organisational structure
Page 13
Management and structure
FRD 22E
Financial and other information
FRD 8B
Budget portfolio outcomes
Page 172
FRD 10
Disclosure index
Page 170
FRD 12A
Disclosure of major contracts
Page 59
FRD 15B
Executive officer disclosures
Page 26
FRD 22E, SD 4.2(k)
Operational and budgetary objectives and performance against objectives
Page 40
FRD 22E
Employment and conduct principles
Page 20
FRD 22E
Occupational health and safety policy
Page 17
FRD 22E
Summary of the financial results for the year
Page 15
FRD 22E
Significant changes in financial position during the year
Page 15
FRD 22E
Major changes or factors affecting performance
Page 15
FRD 22E
Subsequent events
Page 89
FRD 22E
Application and operation of Freedom of Information Act 1982
Page 61
FRD 22E
Compliance with building and maintenance provisions of Building Act 1993
Page 62
FRD 22E
Statement on National Competition Policy
Page 63
Department of Environment and Primary Industries 2013 – 14 Annual Report
189
FRD 22E
Application and operation of the Protected Disclosure Act 2012
Page 62
FRD 22E
Application and operation of the Carers Recognition Act 2012
Page 62
FRD 22E
Details of consultancies over $10,000
Page 59
FRD 22E
Details of consultancies under $10,000
Page 59
FRD 22E
Statement of availability of other information
Page 69
FRD 24C
Reporting of office-based environmental impacts
Page 32
FRD 25B
Victorian Industry Participation Policy disclosures
Page 58
FRD 29
Workforce data disclosures
Page 22
SD 4.5.5
Risk management compliance attestation
Page 8
SD 4.5.5.1
Ministerial Standing Direction 4.5.5.1 compliance attestation
Page 9
SD 4.2(g)
Specific information requirements
SD 4.2(j)
Sign-off requirements
Page 2-69
Page inside
cover
Financial report
Financial statements required under Part 7 of FMA
SD 4.2(a)
Statement of changes in equity
Page 76
SD 4.2(b)
Operating statement
Page 74
SD 4.2(b)
Balance sheet
Page 75
SD 4.2(b)
Cash flow statement
Page 77
Other requirements under Standing Directions 4.2
SD 4.2(a)
Compliance with Australian accounting standards and other authoritative
pronouncements
Page 79
SD 4.2(c)
Compliance with Ministerial Directions
SD 4.2(d)
Rounding of amounts
Page 81
SD 4.2(c)
Accountable Officer’s declaration
Page 71
SD 4.2(f)
Compliance with Model Financial Report
Page 168
Page 168
Other disclosures as required by FRDs in notes to the financial statements
FRD 9A
Departmental disclosure of administered assets and liabilities by activity
FRD 11A
Disclosure of ex-gratia payments
Department of Environment and Primary Industries 2013 – 14 Annual Report
190
Page 99
Page 151
FRD 13
Disclosure of parliamentary appropriations
Page 151
FRD 21B
Disclosures of responsible persons, executive officers and other personnel
(contractors with significant management responsibilities) in the financial report
Page 159
FRD 102
Inventories
Page 118
FRD 103E
Non-current physical assets
FRD 104
Foreign currency
FRD 106
Impairment of assets
FRD 109
Intangible assets
FRD 107
Investment properties
Page 86
FRD 110
Cash flow statements
Page 77
FRD 112D
Defined benefit superannuation obligations
Page 133
FRD 113
Investments in subsidiaries, jointly controlled entities and associates
Page 115
FRD 114A
Financial instruments – general government entities and public non-financial
corporations
Page 140
FRD 119A
Transfers through contributed capital
Page 88
Page 144
Page 87
Page 128
Page 76
Legislation
Plant Biosecurity Act 2010
Page 182
Building Act 1993
Page 62
Carers Recognition Act 2012
Page 62
Financial Management Act 1994
Page 79
Fisheries Act 1995
Page 188
Freedom of Information Act 1982
Page 61
Protected Disclosure Act 2012
Page 62
Victorian Industry Participation Policy Act 2003
Page 58
Water Act 1989
Page 63
Water Industry Act 1994
Page 68
Department of Environment and Primary Industries 2013 – 14 Annual Report
191
Appendix 2: Budget portfolio outcomes
Comprehensive operating statement for the year ended 30 June 2014
2013-14
Actuals
$ million
2013-14
Published
budget
$ million
Variance
$ million
Variance
%
1,398.3
1,357.1
41.2
3%
Interest
16.7
10.5
6.2
59%
Sales of goods and services
84.3
65.9
18.4
28%
Grants
54.1
48.3
5.9
12%
0.1
0.0
0.1
100%
332.2
313.9
18.4
6%
1,885.6
1,795.6
90.0
5%
411.9
400.7
11.1
3%
Depreciation
74.0
85.0
(11.1)
(13%)
Interest expense
24.0
18.3
5.7
31%
Grants and other transfers
523.3
646.2
(123.0)
(19%)
Capital asset charge
112.3
113.3
(1.0)
(1%)
Other operating expenses
567.0
455.8
111.2
24%
1,712.4
1,719.4
(6.9)
(0%)
173.2
76.2
97.0
127%
Net loss on non-financial assets
(3.7)
5.7
(9.5)
(165%)
Net loss on financial instruments and statutory
receivables/payables
(3.8)
(1.0)
(2.8)
295%
Other losses from other economic flows
(1.2)
0.0
(1.2)
(100%)
Income from transactions
Output appropriation
Fair value of assets and services received free of charge
or for nominal consideration
Other income
Total income from transactions
Expenses from transactions
Employee benefits
Total expense from transactions
Net result from transactions (net operating balance)
Other economic flows included in net result
Department of Environment and Primary Industries 2013 – 14 Annual Report
192
Total other economic flows included in net result
(8.7)
4.8
(13.5)
(282%)
164.5
81.0
83.5
103%
Adjustments to Accumulated Surplus/(Deficit)
12.6
0.0
12.6
0%
Changes in physical asset revaluation reserve
1.0
251.7
(250.7)
(100%)
Other
0.6
4.6
(4.0)
(87%)
14.2
256.3
(242.1)
(94%)
178.7
337.3
(158.6)
(47%)
2013-14
Actuals
$ million
2013-14
Published
budget
$ million
Variance
$ million
Variance
%
Cash and deposit
319.0
349.6
(30.6)
(9%)
Receivables
309.2
385.0
(75.8)
(20%)
Other financial assets
395.7
321.0
74.7
23%
0.0
9.2
(9.2)
(100%)
1,023.9
1,064.8
(40.9)
(4%)
15.0
46.8
(31.8)
(68%)
0.8
3.2
(2.4)
(75%)
8,059.4
8,164.9
(105.6)
(1%)
Biological assets
1.8
1.6
0.2
13%
Intangible assets
71.1
26.8
44.3
165%
Net result
Other economic flows - other comprehensive income
Items that will not be classified to net result
Total other economic flows - other non-owner
changes in equity
Comprehensive result
Balance sheet as at 30 June 2014
Assets
Financial Assets
Investment accounted for using equity method
Total financial assetsincome from transactions
Non-financial assets
Inventories
Non-financial assets classified as held for sale including
disposal group assets
Property, plant and equipment
Department of Environment and Primary Industries 2013 – 14 Annual Report
193
Other
83.0
13.8
69.3
504%
Total non-financial assets
8,231.1
8,257.1
(26.0)
(0%)
Total assets
9,255.0
9,321.9
(66.9)
(1%)
Payables
208.0
170.3
37.7
22%
Borrowings
288.7
258.6
30.1
12%
Provisions
174.6
219.7
(45.0)
(21%)
Total liabilities
671.4
648.5
22.8
4%
8,583.7
8,673.4
(89.7)
(1%)
524.5
242.7
281.8
116%
Reserves
5654.0
5763.8
(109.8)
(2%)
Contributed capital
2405.1
2666.9
(261.8)
(10%)
Total equity
8,583.7
8,673.4
(89.7)
(1%)
2013-14
Actuals
$ million
2013-14
Published
budget
$ million
Variance
$ million
Variance
%
Receipts from Government
1,402.0
1,360.1
42.0
3%
Receipts from other entities
487.5
402.2
85.3
21%
Interest received
17.7
10.4
7.3
70%
Other receipts
17.7
1.5
16.2
1077%
Total receipts
1,924.9
1,774.2
150.7
8%
Liabilities
Net assets
Equity
Accumulated surplus/(deficit)
Cash flow statement for the year ended 30 June 2014
Cash flows from operating activities
Receipts
Payments
Department of Environment and Primary Industries 2013 – 14 Annual Report
194
Payments of grants and other transfers
(601.4)
(646.2)
44.8
(7%)
(1,002.0)
(879.1)
(122.9)
14%
(112.3)
(113.3)
1.0
(1%)
(24.0)
(18.0)
(5.9)
33%
(1,739.6)
(1,656.6)
(83.0)
5%
185.2
117.5
67.7
58%
Net investment
(229.1)
(56.5)
(172.6)
305%
Payment for non-financial assets
(138.8)
(153.1)
14.3
(9%)
12.5
5.7
6.8
118%
(355.4)
(203.9)
(151.5)
74%
Owner contributions by Government
56.0
171.0
(115.0)
(67%)
Repayment of finance leases
(5.1)
1.2
(6.3)
(526%)
Net borrowings
99.4
(15.5)
114.9
(741%)
Net cash flows from/(used in) financing activities
150.3
156.7
(6.4)
(4%)
Net increase/(decrease) in cash and cash
equivalents
(19.9)
70.4
(90.3)
(128%)
Cash and cash equivalents at the beginning of the
financial year
338.9
279.2
59.7
21%
Cash and cash equivalents at the end of the
financial year
319.0
349.6
(30.6)
(9%)
2013-14
Actual
$ million
2013-14
Published
budget
$ million
Variance
$ million
Variance
%
Opening accumulated surplus/(deficit)
346.8
157.0
189.8
121%
Net result
177.7
85.6
92.1
108%
Payments to suppliers and employees
Capital asset charge
Interest and other costs of finance paid
Total payments
Net cash flows from/(used in) operating activities
Cash flows from investing activities
Proceeds from sale of non- financial assets
Net cash flows from/(used in) investing activities
Cash flows from financing activities
Statement of changes in equity for the year ended 30 June 2014
Department of Environment and Primary Industries 2013 – 14 Annual Report
195
Closing accumulated surplus/(deficit)
524.5
242.7
281.9
116%
1,902.0
1,957.9
(55.9)
(3%)
503.1
709.0
(205.9)
(29%)
Closing contribution by owners
2,405.1
2,666.9
(261.8)
(10%)
Opening physical asset revaluation reserve
5,653.0
5,512.1
140.9
3%
1.0
251.7
(250.7)
(100%)
Closing physical asset revaluation reserve
5,654.0
5,763.8
(109.8)
(2%)
Total equity
8,583.6
8,673.4
(89.7)
(1%)
Opening contributions by owners
Net transaction with owners in their capacity as owners
Comprehensive result
Note:
These movements reflect the variations explained in the departmental controlled comprehensive operating statement and balance
sheet.
Administered items statement for the year ended 30 June 2014
2013-14
Actuals
$
million
2013-14
Published
budget
$ million
Variance
$ million
Variance
%
657.6
688.3
(30.6)
(4%)
19.7
0
19.7
100%
241.3
220.1
21.2
10%
Grants
45.6
16.35
29.3
179%
Interest
476.1
484.7
(8.6)
(2%)
Other income
121.8
151.8
(30.0)
(20%)
1,562.2
1,561.2
1.0
0%
587.6
607.5
(19.9)
(3%)
28.3
26.3
2.1
8%
985.1
952.0
33.1
3%
Administered income
Appropriations - Payments made on behalf of the State
Fair value of assets and services received free of charge or for
nominal consideration
Sale of goods and services
Total administered income
Adminstered expenses
Expenses on behalf of the State
Grants and other transfers
Payments into the Consolidated Fund
Department of Environment and Primary Industries 2013 – 14 Annual Report
196
Total adminiistered expenses
1,601.0
1,585.7
15.2
1%
(38.8)
(24.5)
(14.2)
58%
(19.0)
24.7
(43.7)
(177%)
Net gain/(loss) on financial instruments and statutory
receivables/payables
0.2
0.0
0.2
100%
Total other economic flows included in net resut
(18.8)
24.7
(43.5)
(176%)
Net result
(57.6)
0.2
(57.8)
(35168%)
Asset revaluation reserve
0
0
0.0
0%
Other
0
0
0.0
0%
Total other economic flows - other non-owner changes in equity
0
0
0.0
0%
(57.6)
0.2
(57.8)
(35168%)
1.5
1.4
0.1
6%
4,339.4
4,172.7
166.7
4%
0.1
0.1
0.0
36%
12.7
26.9
(14.2)
(53%)
Property, plant and equipment
688.0
566.4
121.6
21%
Intangible assets
103.1
119.3
(16.2)
(14%)
5,144.8
4,886.8
258.0
5%
122.0
86.5
35.5
41%
4,264.8
4,121.5
143.3
3%
Income less expenses
Other economic flows included in net result
Net gain/(loss) on non-financial assets
Other economic flows - other non-owner changes in equity
Comprehensive result
Administered assets
Cash and deposits
Receivables
Other financial assets
Other
Total adminisered assets
Administered liabilities
Payables
Borrowings
Department of Environment and Primary Industries 2013 – 14 Annual Report
197
Total administered liabilities
Net assets
4,386.8
4,208.0
178.8
4%
758.0
678.8
79.2
12%
Department of Environment and Primary Industries 2013 – 14 Annual Report
198
Appendix 3: Capital projects
The department and its related portfolio entities manage a number of capital projects. For information on recent capital projects for the
department and the broader Victorian public sector, please refer to the most recent Budget Paper No.4 State Capital Program (BP4)
available on the Department of Treasury and Finance’s website. This publication also contains information on the department’s, and
its related portfolio agencies’, asset investment programs, as set out in the table below.
Original
completion
date
Actual
completion
date
Approved
TEI (as
reflected in
BP4)
$m
Actual
TEI
$m
Variation
between
actual and
original TEI
$m
Flood warning system
recovery and
improvement
(statewide)
June 2014
June 2014
3.930
1.400
-2.530
Silviculture seed
extraction and storage
(statewide)
June 2017
June 2014
4.616
4.616
-
Advanced computing for
biological and farm
systems research –
system replacement
(statewide)
June 2012
June 2014
4.420
4.416
-0.004
Black Rock Water
Recycling Project
(Geelong)
June 2014
August 2013
10.000
10.000
-
Increased planned
burning (statewide)
June 2012
June 2014
8.040
8.224
0.184
The variance is due to
additional enhancements being
undertaken to the Fireweb
system.
Reducing Fire Risk –
expanding the planned
burning programs to
390 000 hectares
(statewide)
June 2013
June 2014
10.675
1.685
-8.990
The variance is due to planned
burning being impacted by wet
weather and a prolonged fire
season. Increased planning
and preparation activities were
undertaken during this time.
Walking trails
(statewide)
June 2015
June 2014
0.665
0.135
0.530
The variance primarily relates
to works undertaken being
reclassified as output in nature.
Project name
Department of Environment and Primary Industries 2013 – 14 Annual Report
199
Reason for variance
The variance primarily relates
to works undertaken being
reclassified as output in nature.
Appendix 4: Disclosure of grants and transfer payments
Effective Water Management and Supply
Goulburn-Murray Water Connections Project
24,567,897
Goulburn Broken Catchment Management Authority
21,693,859
North East Catchment Management Authority
11,730,448
Mallee Catchment Management Authority
9,315,728
East Gippsland Catchment Management Authority
8,002,652
West Gippsland Catchment Management Authority
5,694,334
South East Water Ltd
5,118,334
Corangamite Catchment Management Authority
4,617,381
Department of Justice
3,843,427
Glenelg-Hopkins Catchment Management Authority
2,743,878
Yarra Valley Water Ltd
2,542,818
Lower Murray Water
2,270,518
Kingston City Council
2,000,000
Wimmera Catchment Management Authority
1,953,640
City of Melbourne
1,500,000
Southern Rural Water
1,159,204
Environment Protection Authority
852,000
Knox City Council
720,000
Australian Government Actuary
701,683
Murray-Darling Basin Authority
701,683
Baw Baw Shire Council
655,000
City West Water Ltd
637,163
Central Highlands Region Water Authority
580,140
Barwon Region Water Authority
578,814
Bureau Of Meteorology
504,273
Yorta Yorta Nation Aboriginal Corporation
448,389
Foscari Holdings Pty Ltd
358,423
North Central Catchment Management Authority
344,246
Ewater Ltd
320,248
Department of Sustainability and Environment
313,104
Latrobe University
300,000
Melbourne Water
281,364
Department of Environment and Primary Industries 2013 – 14 Annual Report
200
Coliban Water
219,097
Monash City Council
213,000
Centre for Education and Research in Environmental Strategies
210,160
Parks Victoria
192,000
Wannon Water
174,708
Goulburn Valley Water Authority
172,823
UOM Commercial Ltd
154,600
Nillumbik Shire Council
150,000
Western Water
145,355
Gippsland Water
143,848
Deakin University
143,430
GWM Water
136,052
North East Region Water Corporation
118,737
CRC for Water Sensitive Cities
100,000
Melbourne University
100,000
Westernport Water
99,389
Rodger Constructions Pty Ltd
95,000
City of Bendigo
80,000
Leakes Road Rockbank Pty Ltd
74,000
City of Casey
73,750
South Gippsland Water Authority
71,894
East Gippsland Water
65,590
Brimbank City Council
64,690
Footscray Primary School
60,000
Moira Shire Council
60,000
The University of Melbourne
51,337
Department of Sustainability, Environment, Water, Population and Communities
47,345
Vic Roads
45,000
William Angliss Institute of Tafe
40,000
Federation University
26,364
Monash University
25,000
Moonee Valley City Council
25,000
Metropolitan Planning Authority
21,136
City of Greater Geelong
20,000
Department of Environment and Primary Industries 2013 – 14 Annual Report
201
Mt Alexander Shire Council
18,000
Victorian Water Industry Association
10,000
Other (recipients each receiving less than $5k)
Total
210,002
120,707,955
Development of Primary Industries
Vicforests
25,574,131
Dairy Futures Ltd
4,780,000
Southern Rural Water
1,860,000
The University of Melbourne
1,239,865
RSPCA Victoria
1,014,600
Rural Financial Counselling Service Victoria - WSW Inc
524,704
Animal Health Australia
481,161
Department of Science Information Technology Innovation and the Arts
464,854
Department of Trade and Investment Regional Infrastructure and Services
458,873
Primary Industries and Regions SA
457,468
VR Fish
452,533
Department of Agriculture and Food
432,000
Seafood Industry Victoria Inc
394,149
Department of Agriculture Fisheries and Forestry - Australia
330,584
Fisheries Research and Development Corporation
300,246
Department of Agriculture Fisheries and Forestry
236,870
Gorse Taskforce
230,000
Victorian Blackberry Taskforce
230,000
Rural Finance Corporation of Victoria
229,430
Fishcare Victoria Inc
224,654
North Central Rural Financial Counselling Service (Vic) Inc
194,293
East Gippsland Catchment Management Authority
187,678
RFCS Victoria - Murray Mallee
176,983
RFCS Victoria - Goulburn Murray Hume
172,673
NSW Department of Primary Industries
143,168
Australian Wine Research Institute
130,000
Gippsland Ports Committee of Management
123,547
Glenelg Shire Council
120,000
Department of Environment and Primary Industries 2013 – 14 Annual Report
202
Parks Victoria
109,990
RFCS Victoria - Gippsland
106,381
University of New England
100,952
Victorian Young Farmers Inc
100,000
Association of Geelong and District Angling Clubs Inc
98,984
North Central Catchment Management Authority
97,000
Western Abalone Divers’ Association Inc.
90,712
Life Saving Victoria Ltd
90,000
Corangamite Catchment Management Authority
88,649
Victorian Farmers Federation
75,518
Invasive Animals Cooperative Research Centre
75,000
The University of Western Australia
66,007
Hopefield Partners
62,307
Lake Purrumbete Angling Club Inc
56,062
Monash University
51,455
Swan Hill Rural City Council
50,621
Almond Board of Australia
50,000
Australian Table Grape Association Inc
50,000
Fruit Growers Victoria Ltd
50,000
Mt Buller and Mt Stirling Alpine Resort Management Board
50,000
Vegetable Growers Association of Victoria
50,000
AS and BA Bear
49,496
Holbrook Landcare Network
47,336
Rabbit Run-Away Orphanage Inc
45,000
Second Chance Animal Rescue
45,000
Sunraysia Animal Rehousing Group
45,000
Commonwealth Scientific and Industrial Research Organisation
42,907
Consolidated Pastoral Trust
42,804
Goulburn Broken Catchment Management Authority
40,403
City of Greater Geelong
40,000
Loch Sport Community House Inc
40,000
Sardi
38,468
City of Ballarat
36,000
Hindmarsh Shire Council
35,852
Department of Environment and Primary Industries 2013 – 14 Annual Report
203
Spring Grove Trust
35,211
RG And AL Stephens
32,621
North East Catchment Management Authority
31,931
JA and KL Head
29,943
The Lost Dogs Home
29,522
The Cat Corner Rescue Group Inc
25,765
Natimuk Lake Foreshore Committee
24,200
Northern Grampians Shire Council
24,000
SSF - Tianyi Group Holdings Pty Ltd
22,424
FS Cockroft and Sons
20,344
Dakota Pastoral Pty Ltd
20,343
Cleelands Holdings Pty Ltd
20,143
PA and SL Bethune
20,114
Central Goldfields Shire Council
20,000
The Royal Agricultural Society of Victoria Limited
20,000
City of Melbourne
19,800
Gannawarra Shire Council
18,576
Cemfarm Pty Ltd
17,925
Kernalow Pty Ltd
17,630
Mansfield Shire Council
16,200
Brassy Downs Partnership
15,900
Johville Park
15,655
GWM Water
15,613
Vicsuper Ecosystems Services Pty Ltd
15,610
Gipps Dairy Board Inc
15,000
J and AM Cirillo
15,000
Wangaratta Abattoirs
15,000
Department of Sustainability, Environment, Water, Population and Communities
14,461
JE and PE Glowrey
14,101
CN Cartwright and AL Watson
13,760
TJ Gore
13,628
Aldersyde Trading Pty Ltd
13,199
GD and LY Spittal
12,900
Tooradin Foreshore Committe of Mgt
12,640
Department of Environment and Primary Industries 2013 – 14 Annual Report
204
DJ and NF Harrington
12,318
DJ and TJ Sutherland
12,142
PJ Spowart
11,675
DC Baxter and AJ Hutchinson
11,649
Country Gold Pty Ltd
11,348
KD and G Fagg
11,250
Z Johnson and DP Tuohey
11,212
CJ and RJ Bird Pty Ltd
11,170
Airedale Powlett Pty Ltd
10,771
Department of Health
10,318
Seeding Victoria
10,043
Birchip Cropping Group Inc
10,000
Paws for Purrfect Patient Therapy
10,000
Save a Dog Scheme Inc
9,975
IG and RE Mansbridge Pompapiel Pastoral Co
9,960
Jeffery Long
9,467
Scott Peter Matthews
9,355
The Shelter
9,328
Sawers Farms Pty Ltd
9,279
Neil Wilkins and Jill Prowse
9,241
Korella Farms Pty Ltd
9,155
Edgar’s Mission Inc
9,000
Golden Retriever Rescue
9,000
Horsham People for Animal Welfare and Support
9,000
Maneki Neko Cat Rescue
9,000
Pony Rescues Inc
9,000
Victorian Canine Association Inc
9,000
TR & AM Barbagallo
8,860
Greyhound Safety Net Incorporated
8,802
RK and JR Gordon
8,798
CG and LF Schlitz
8,719
Scottwood Pastoral Company Pty Ltd
8,608
Rural Rescues Incorporated
8,550
John R Hooper
8,487
Department of Environment and Primary Industries 2013 – 14 Annual Report
205
Victorian Animal Aid Trust
8,326
Victorian Dog Rescue and Resource Group Inc
8,200
City of Wodonga
7,952
German Shepherd Dog Club of Victoria
7,922
Burnbrae Pastoral Pty Ltd
7,750
VG and TM Foott
7,670
South Gippsland Animal Aid Paws Galore Inc
7,650
Rudolf Bruger
7,638
Go Hawks Pty Ltd
7,458
HA and KT Foreman Pty Ltd
7,377
Schmidt Property Trust
7,345
Max Jones Partnership Pty Ltd
7,303
Meralish Partners
7,068
David A Millsom
6,940
Brisan Lodge Pty Ltd
6,913
David and Katrina Noble
6,843
Peaceville Holsteins
6,568
Geelong Animal Welfare Society
6,432
Southern Farming Systems
6,364
Friends of Manningham Dogs and Cats Inc.
6,300
John Dickson
6,065
Circle T Partnership
5,855
MV and PJ Smith
5,807
Cleaveland Park Pty Ltd
5,683
ED and SH Moore
5,416
GC Stephens
5,129
GC and GJ Broad
5,050
Nursery and Garden Industry Victoria
5,000
Our Lady of the Sacred Heart Primary School
5,000
Raspberries and Blackberries Australia Inc
5,000
South Beach Committee of Management
5,000
Vic Bream Classics
5,000
Victorian Cherry Association Inc
5,000
Victorian Strawberry Industry Development Committee
5,000
Department of Environment and Primary Industries 2013 – 14 Annual Report
206
Other (recipients each receiving less than $5k)
Total
741,331
45,247,362
Public Land
Zoological Parks and Gardens Board
19,551,020
Royal Botanic Gardens Board
13,898,000
Mt Baw Baw Resort Management Board
3,712,452
Lake Mountain Alpine Resort Management Board
2,722,149
Indigo Shire Council
2,513,000
Parks Victoria
1,625,091
Shrine of Remembrance
963,636
The University of Melbourne
938,449
City of Port Phillip
819,510
Bushfire CRC Limited
347,511
Lake Mountain Alpine Resort
304,015
Kingston City Council
285,394
Falls Creek Alpine Resort Management Board
265,000
National Trust of Australia (Vic)
241,779
Great Ocean Road Coast Committee of Management
215,117
Bayside City Council
171,238
Tourism North East
139,500
Gannawarra Shire Council
128,900
Frankston City Council
118,805
Hobsons Bay City Council
118,753
Barwon Coast Committee of Management
107,991
Mornington Peninsula Shire Council
87,767
Mt Buller and Mt Stirling Alpine Resort Management Board
82,500
Macedon Ranges Shire Council
68,726
Durham Ox Mechanics Institute Committee of Management
60,500
South Gippsland Shire Council
58,100
Bass Coast Shire Council
54,545
Gippsland Plains Conservation Management Network
51,615
Gunditj Mirring Traditional Owners Aboriginal Corporation
40,909
Surf Coast Shire
38,085
Department of Environment and Primary Industries 2013 – 14 Annual Report
207
Treasury Corporation of Victoria
36,027
Lakes Entrance Recreation Reserve C of M
31,591
Otway Coast Committee
31,432
City of Greater Geelong
31,400
Tourism Victoria
30,000
Bellarine Bayside Foreshore Com Inc
24,759
Corryong Recreation Reserve Inc
21,241
Warrnambool City Council
20,782
Towong Shire Council
20,000
Lower Bendoc Hall and Public Recreation Reserve Committee of Management
18,000
Phillip Island Nature Park Board of Management
16,505
Whitecliffs - Camerons Bight Foreshore Reserves Com
15,214
Borough of Queenscliffe
13,379
Dromana Foreshore Committee of Management Inc
12,253
South Beach Committee of Management
12,000
Bruarong Community Centre Inc
10,000
Capel Sound Foreshores Committee of Management Inc
8,374
Bennison Recreation Reserve
8,000
Merricks Beach Foreshore Committe of Management
7,302
Lake Bookaar Recreation Reserve Committee
of Management Incorporated
6,416
East Gippsland Shire Council
6,190
Woodstock Public Purposes Reserve Committee of Management
5,817
Horsham Showgrounds Committee of Management Incorporated
5,325
Harrietville Tronoh Dredge Hole Reserve Inc
5,000
Lake Marma Committee of Management
5,000
Mandurang Recreation Reserve Committee
of Management
5,000
Pimpinio Sporting and Community Centre
5,000
Snowy Wilderness Discovery Centre Com Inc
5,000
Other (recipients each receiving less than $5k)
(1,182,575)
Total
48,964,489
Forests and Parks
Parks Victoria
142,741,688
Department of Environment and Primary Industries 2013 – 14 Annual Report
208
The University of Melbourne
1,491,271
Department of Transport, Planning and Local Infrastructure
844,000
Gunaikurnai Land and Waters Aboriginal Corporation
841,172
Gunaikurnai Traditional Owner Land Management Board
530,000
Four Wheel Drive Victoria
400,000
Royal Botanic Gardens Board
400,000
Macedon Ranges Shire Council
250,000
Shire of Yarra Ranges
250,000
Yorta Yorta Nation Aboriginal Corporation
240,696
Bushfire CRC Limited
170,029
Napier Waller Committee of Management
150,000
Corangamite Catchment Management Authority
136,600
Zoological Parks and Gardens Board
122,250
City of Casey
112,067
Nillumbik Shire Council
88,575
Kingston City Council
68,182
Moyne Shire Council
66,666
Cardinia Shire Council
53,091
Mornington Peninsula Shire Council
36,364
Tourism Victoria
30,000
Bellarine Bayside Foreshore Com Inc
17,661
Cardinia Environment Coalition Inc
8,000
Cairnlea Conservation Reserves Committee
of Management
7,000
Other (recipients each receiving less than $5k)
Total
47,686
149,102,998
Land and Fire Management
Parks Victoria
15,597,980
Environmental Protection Authority
947,527
Department of Justice
663,167
The University of Melbourne
649,189
Bushfire and Natural Hazards CRC Limited
400,000
Bushfire CRC Limited
387,985
Vicroads
300,000
Department of Environment and Primary Industries 2013 – 14 Annual Report
209
Goulburn-Murray Rural Water Corporation
287,905
Desert Research Institute
102,835
Bellarine Bayside Foreshore Com Inc
85,273
West Gippsland Catchment Management Authority
80,000
Corangamite Shire Council
70,000
Alpine Shire Council
65,166
Horsham Rural City Council
60,000
Moyne Shire Council
48,345
Wimmera Catchment Management Authority
40,000
Glenelg Shire Council
30,000
Warrowie Recreation Reserve
20,000
Melbourne Water
19,277
Port Phillip and Westernport Catchment Management Authority
17,500
Goulburn Broken Catchment Management Authority
11,000
Great Ocean Road Coast Committee of Management
10,000
South Beach Committee of Management
10,000
Towong Shire Council
8,051
Apsley Public Hall and Recreation Reserve Inc
5,000
Ararat Regional Bio-Links Network Inc
5,000
Birregurra Recreation Reserve
5,000
Camperdown Racecourse and Recreation Reserve Committee Inc
5,000
Clarendon Recreation Reserve Committee of Management
5,000
Corangamite Catchment Management Authority
5,000
Daylesford Museum Reserve Com
5,000
Digby Recreation Reserve and Hall Committee
of Management
5,000
Drumborg Public Hall and Recreation Reserve Committee of Management
5,000
Dunkeld Community Centre Committee Inc
5,000
Dunkeld Public Lands Committee
5,000
Elmhurst Recreation Reserve Com Inc
5,000
Emu Memorial Hall Committee Incorporated
5,000
Forrest Recreation Reserve
5,000
Glenthompson Park and Recreation Reserve
5,000
Gordon Public Park and Recreation Reserve
5,000
Great Western Recreation Reserve Committee
5,000
Department of Environment and Primary Industries 2013 – 14 Annual Report
210
of Management Inc
Johanna Public Purposes Reserve Inc
5,000
Laharum Hall Committee
5,000
Lake Bringalbert Foreshore Committee
5,000
Landsborough Public Hall Reserve C of M
5,000
Leonards Hill Mechanics Institute and Free Library
5,000
Maude Recreation Reserve Inc
5,000
Morgiana Recreation Reserve Commitee Inc
5,000
Moyston Public Parks Inc
5,000
Myrniong Mechanics Institute
5,000
Natte Yallock Recreation Reserve Inc
5,000
Pigeon Ponds Recreation Reserve
5,000
Purnim Recreation Reserve
5,000
Rokewood Recreation Reserve.
5,000
Shelford Public Hall Reserve Committee of Management Incorporated
5,000
Slaty Creek Hall Committee of Management
5,000
Tarrington Public Park And Recreation Reserve Incorporated
5,000
Wallacedale Recreation Reserve Inc
5,000
Winslow Recreation Reserve
5,000
Yandoit Public Park and Recreation Reserve
5,000
Other (recipients each receiving less than $5k)
Total
427,299
20,518,499
Environmental Programs
Goulburn Broken Catchment Management Authority
6,975,787
North Central Catchment Management Authority
4,607,672
Port Phillip and Westernport Catchment Management Authority
4,136,026
Corangamite Catchment Management Authority
4,012,988
Mallee Catchment Management Authority
3,962,379
West Gippsland Catchment Management Authority
3,941,866
Glenelg-Hopkins Catchment Management Authority
3,697,054
Wimmera Catchment Management Authority
3,448,334
East Gippsland Catchment Management Authority
3,430,167
North East Catchment Management Authority
3,250,382
Department of Environment and Primary Industries 2013 – 14 Annual Report
211
Parks Victoria
2,296,206
Trust for Nature Victoria
454,209
Nargundy Pty Ltd
286,520
Nillumbik Shire Council
277,734
Goulburn Murray Landcare Network Inc
250,000
City of Casey
233,488
Department of Justice
175,000
East Gippsland Landcare Network Inc
150,000
Yarram Yarram Landcare Network
150,000
Habitat Restoration Fund
147,280
Mount Rothwell Biodiversity Pty Ltd
143,789
Lismore Land Protection Group
137,530
Dunkeld Pastoral Co Pty Ltd
122,376
Kiewa Catchment Landcare Group Inc
113,763
Greenhouse Balanced
108,343
Landcare Laharum
106,000
J Alden and PJ Morison
85,190
Greening Australia - Victoria
85,100
Department of Sustainability, Environment, Water, Population and Communities
82,000
Hindmarsh Landcare Network
81,013
Mid Loddon Sub-Catchment Management Group
79,400
G and J Wallis
79,000
Zoological Parks and Gardens Board
78,300
Cardinia Shire Council
75,000
South Gippsland Landcare Network Inc
75,000
Grant Flynn
72,791
Friends of Merri Creek Inc
72,612
City of Greater Bendigo
70,000
JA Michelson and RJ Michelson
65,500
Friends of the Helmeted Honeyeater Inc
62,500
Geelong Landcare Network
62,500
Mitta Valley Landcare Group Inc
62,500
Ovens Landcare Network
62,500
Pentland Hills Landcare Group Inc
62,500
Department of Environment and Primary Industries 2013 – 14 Annual Report
212
Southern Dandenongs Landcare Group
62,500
Surf Coast and Inland Plains Network
62,500
Tarragal Landcare Group
62,500
Upper Deep Creek Landcare Network
62,375
Upper Murray Landcare Network
62,360
Panyyabyr Landcare Group
61,931
Mornington Peninsula Shire Council
60,124
Glen Goulburn
59,624
Conservation Volunteers Australia
57,000
Western Melbourne Catchments Network Inc
56,250
Southern Otway Landcare Network Inc
55,938
Harvey Spring Creek
55,825
Blampied-Kooroocheang Landcare Group
53,161
Baw Baw Shire Council
52,503
Woady Yaloak Catchment Group
51,838
Upper Campaspe Combined Landcare Groups
51,032
Bass Coast Landcare Network Inc
50,000
Bellarine Landcare Group Inc
50,000
Beyond Bolac Cag
50,000
Cardinia Environment Coalition Inc
50,000
Connecting Country (Mt Alexander Region) Inc
50,000
Far East Victoria Landcare Inc
50,000
Hamilton to Coleraine Railway Line Landcare Group
50,000
Heytesbury District Landcare Network
50,000
Horsham Rural City Council
50,000
Hughes Creek Catchment Collaborative
50,000
Kowree Farm Tree Group Inc
50,000
Lexton Landcare Group Inc
50,000
Loddon Plains Landcare Network
50,000
Mid Ovens Landcare Group
50,000
Murrayville Landcare Group
50,000
Southwest Goulburn Landcare Inc
50,000
Upper Mt Emu Creek Landcare Network
50,000
Yarrilinks Inc
50,000
Department of Environment and Primary Industries 2013 – 14 Annual Report
213
Basalt to Bay Landcare Network
49,764
K and K Hooke
49,755
Upper Hopkins Land Management Group
49,671
Kara Kara Conservation Management Network Inc
48,086
Leigh Catchment Group
46,511
Buloke and Northern Grampians Landcare Network
45,562
Convery Terrence J
45,300
Wodonga Urban Landcare Network
44,397
Active Seeds
43,366
Michelle Eustice
42,933
Snowy River Interstate Landcare Committee
42,143
Perri Joseph
40,482
Knox City Council
40,000
Landcare Australia Ltd
40,000
Parklands Albury Wodonga
39,987
Woods MD and SM
39,975
Wandobah Pastoral
39,565
Kirby Tania
38,523
James Patrick Fowler
36,800
Mount Elephant Community Management
33,960
Garryowen Banool Pty Ltd
32,920
Fechner BA and SJ
30,443
Bushfire CRC Limited
27,915
Brimbank City Council
22,800
Phillip Island Nature Park Board of Management
21,200
Vicsuper Ecosystems Services Pty Ltd
20,103
Philip Gale
19,500
Warrnambool City Council
18,986
Emu Plains Racecourse and Rec Res Committee of Management
18,850
Ian Fraser
17,489
Kemp Alistair Douglas
17,400
Mandurang Strathfieldsaye Landcare Network
17,400
Hume City Council
16,531
Willera Ag Pty Ltd
16,220
Department of Environment and Primary Industries 2013 – 14 Annual Report
214
Project Platypus Inc
16,200
Syer Stephen and Woodward Elisabeth
16,040
Wildlife Victoria
15,000
Friends of Organ Pipes National Park Inc
14,896
Bland Dairies
14,300
CJ Lewis and SE Lewis
14,031
Stephen Watson
14,024
DJ and MA Trigg
13,400
City of Whittlesea
13,360
Jeroen and Margaret Van Veen
13,140
Mid Ovens Landcare Consortium
12,500
Cleaveland Park Pty Ltd
12,074
Gray Barnaby and Carrington Michal
11,634
Friends of Willow Park
11,018
Shire of Yarra Ranges
10,890
Kaniva District Landcare
10,588
GJ Mcnaughton Pastoral Co
10,218
Browell Tuesday
10,000
Williamstown High School
10,000
O’Brien MJ and SK
9,750
Merri Creek Management Committee Inc
9,720
Flynn Peter J and Brenda V
9,374
Sutton Grange Landcare Group Inc
9,200
Sharp Transport
9,092
Veit Wilhelm
8,750
AJ and KJ Rowe Pty Ltd
8,701
JC and NT Smith
7,800
Sharkey Farming Trust
7,500
David and Ruth Marnie
7,409
National Trust of Australia (Vic)
7,320
Coogan KT and C
6,494
Calmo Farms
5,682
Friends of Lower Kororoit Creek
5,200
Gundry RL and SN
5,000
Department of Environment and Primary Industries 2013 – 14 Annual Report
215
Terricks Rural Investments Unit Trust
Other (recipients each receiving less than $5k)
Total
5,000
238,399
51,514,001
Environmental Policy
Environment Protection Authority
3,736,547
North Central Catchment Management Authority
2,295,000
Wimmera Catchment Management Authority
1,318,182
Sustainability Victoria
1,137,695
The University of Melbourne
750,000
Mallee Catchment Management Authority
605,000
National Association of Charitable Recycling Organisations Inc
550,000
Goulburn Broken Catchment Management Authority
367,302
Department of Justice
358,000
Corangamite Catchment Management Authority
334,955
West Gippsland Catchment Management Authority
325,000
Trust for Nature Victoria
276,000
Greening Australia - Victoria
247,000
Commonwealth Scientific and Industrial Research Organisation
240,000
Metropolitan Waste Management Group
217,660
Melbourne Water
179,573
Pyrenees Shire Council
155,000
Yarram Yarram Landcare Network
150,000
Colac Otway Shire
130,000
Horsham Rural City Council
119,000
Nillumbik Shire Council
114,140
Central Goldfields Shire Council
110,000
VFF Farm Tree and Landcare Association Inc
98,362
Nature Glenelg Trust
96,000
Parks Victoria
84,877
Longwood Plains Conservation Management Network Inc
81,377
Wyndham City Council
81,000
City of Casey
80,000
Knox City Council
80,000
Department of Environment and Primary Industries 2013 – 14 Annual Report
216
Glenelg-Hopkins Catchment Management Authority
76,182
Cardinia Shire Council
75,000
Connecting Country (Mt Alexander Region) Inc
75,000
Conservation Volunteers Australia
75,000
East Gippsland Landcare Network Inc
75,000
Euroa Arboretum Inc
75,000
Euroa Environment Group Inc
75,000
Latrobe Catchment Landcare Network
75,000
Manton and Stony Creeks Landcare Group
75,000
Wurundjeri Tribe Land Compensation and Cultural Heritage Council Inc
75,000
Moreland Energy Foundation Ltd
74,500
Moira Shire Council
73,510
Strathbogie Ranges Conservation Management Network Inc
72,355
Johns Hill Landcare Group
72,000
City of Greater Bendigo
69,720
Mornington Peninsula and Western Port Biosphere Reserve Foundation Ltd
68,100
Upper Barwon Landcare Network Inc
64,875
Greater Shepparton City Council
60,000
Project Platypus Inc
55,500
North East Catchment Management Authority
55,294
City of Boroondara
55,000
Maroondah City Council
55,000
Friends of Merri Creek Inc
54,178
Parklands Albury Wodonga
51,965
Zoological Parks and Gardens Board
51,000
Birdlife Australia
50,909
Bellarine Landcare Group Inc
50,730
Hume City Council
50,000
Newham and District Landcare Group
50,000
South Gippsland Shire Council
49,210
Harcourt Valley Landcare Group Inc
49,104
Honeysuckle Recreation Environment Project
46,273
National Environment Protection Council
43,538
Baw Baw Shire Council
41,976
Department of Environment and Primary Industries 2013 – 14 Annual Report
217
Ballarat Environment Network Inc
40,264
Hepburn Shire Council
40,000
Hindmarsh Shire Council
40,000
Moyne Shire Council
40,000
Leigh Catchment Group
36,748
Corryong Recreation Reserve Inc
36,364
Merri Creek Management Committee Inc
36,183
Cornish Hill Reserve Committee of Management
34,349
Rural City of Wangaratta
33,900
Yelta Landcare Group
33,715
Upper Campaspe Combined Landcare Groups
31,790
City of Bendigo
30,280
Manningham City Council
27,500
Rutherglen Landcare Group
25,400
City of Whittlesea
25,000
Loddon Shire Council
25,000
Southern Grampians Shire Council
25,000
Emu Plains Racecourse and Rec Res Committee of Management
24,850
Harston Community Land Care Group
24,148
Golden Plains Shire Council
22,500
City of Wodonga
22,273
Corangamite Shire Council
20,000
Glenelg Shire Council
20,000
Moreland City Council
20,000
Mornington Peninsula Shire Council
20,000
Australasian Native Orchid Society (Vic Group) Inc
18,848
Wellington Shire Council
18,000
Southern Otway Landcare Network Inc
17,763
City of Melbourne
17,000
Weering Eurack Land Protection Group
16,900
Borough of Queenscliffe
16,352
Murrindindi Shire Council
16,000
Sustainable Living in the Mallee
16,000
Axe Creek Landcare Group
15,450
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Woodleigh School
14,827
The University of Sydney
14,767
Surf Coast Shire
11,625
St Thomas More Primary School
11,000
Flinders Christian Community College Inc
10,989
Friends of Organ Pipes National Park Inc
10,404
Victorian Mobile Landcare Group
10,227
Southern Dandenongs Landcare Group
10,050
Alpine Shire Council
10,000
Batesford Fyansford Stonehaven Landcare Inc
10,000
City of Maribyrnong
10,000
Falls Creek Primary School
10,000
Frayne College
10,000
Friends of the Royal Botanic Gardens Cranbourne Inc
10,000
Habitat Restoration Fund
10,000
Koonoomoo Improvement Group
10,000
Mildura Rural City Council
10,000
Newlands Arm Residents and Ratespayers Association Inc
10,000
Northern Grampians Shire Council
10,000
Shire of Campaspe
10,000
Swan Hill Rural City Council
10,000
Tylden Landcare Group
10,000
Upper Goulburn Landcare Network
10,000
Wodonga Urban Landcare Network
10,000
Greta Valley Landcare Group
9,985
Cardinia Environment Coalition Inc
9,979
Rowsley Landcare Group Inc
9,970
Tyabb Primary School
9,970
Friends of Mt Lawson Inc
9,950
Gippsland Plains Conservation Management Network
9,900
Balnarring Foreshore Parks and Reserves
9,888
Stanley Landcare Group
9,870
Balcombe Estuary Rehabilitation Group Inc
9,742
Knox Park Primary School
9,664
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Nicholson River Landcare Group
9,622
Landsborough Landcare Group
9,621
Warrnambool Coastcare Landcare Group Inc
9,218
Brunswick Montessori Children’s House Inc
9,197
Christmas Hills Landcare Group
9,185
Corinella Foreshore Reserve Inc
9,000
Macedon Ranges Shire Council
9,000
Friends of the Maribyrnong Valley Inc
8,800
Nulla Vale Pyalong West Landcare Group Inc
8,687
Wattle Flat Pootilla Landcare Group
8,663
Leitchville Landcare Group
8,472
Lake Tyers Coast Action Inc
8,400
Upper Hopkins Land Management Group
8,400
Bittern Bushland Preservation Association Inc
8,350
Toomuc Landcare
8,250
East Gippsland Rainsforest Conservation Management Network
8,177
Port Campbell Public Purpose Reserve
8,100
Treetops Scout Camp and Activity Centre
8,064
St Mary’s School Cohuna
8,000
Western Port Secondary College
8,000
Maffra and Districts Landcare Network
7,870
Campaspe River and Land Management
7,750
Silverleaves Conservation Association Inc
7,620
Torquay Landcare Group Inc
7,480
Longwood East Landcare Group Inc
7,215
Barongarook Landcare Group
7,000
Local Government Professionals Inc.
7,000
Friends of Willow Park
6,939
Jan Juc Coast Action Group
6,500
Tambo Bluff Landcare Group Inc
6,339
Dargo Landcare Group
6,000
Strathewen Landcare Group
6,000
Bendigo South East Secondary College
5,900
Friends of Werribee River through Bacchus Marsh
5,660
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Moorabool Catchment Landcare Group
5,599
Glenorchy Improvement Group Inc
5,544
Bass Coast Landcare Network Inc
5,250
Dowling Forest Cemetery Trust
5,149
Friends of Campbells Creek
5,038
Bass Coast Shire Council
5,000
Benalla Rural City Council
5,000
Indigo Shire Council
5,000
Port Fairy Coastal Group Inc
5,000
Other (recipients each receiving less than $5k)
Total
316,202
18,305,234
Total grants and other expense transfers
Department of Environment and Primary Industries 2013 – 14 Annual Report
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454,360,538
Appendix 5: Environmental contributions
Under legislation, water authorities are required to make an environmental contribution to fund initiatives that promote the sustainable
management of water or address adverse water-related environmental impacts, equivalent to five per cent of urban authorities’
revenues and two per cent of rural water authorities’ revenues. In June 2012 the Victorian Government established a third tranche of
the environmental contribution, which commenced on 1 July 2012 and will cease on 30 June 2016. This tranche will generate
approximately $406 million over the four years to fund initiatives consistent with the purposes set out in legislation.
Section 195 of the Water Industry Act 1994 requires the department to report on the details of expenditure funded by environmental
contributions by water supply authorities in its annual report. The table below displays expenditure funded by Environmental
Contributions in 2013-14. Further information on these projects is provided on the following pages and is also available on DEPI’s
website.
Expenditure
$’000
2013-14 Program title
Output
Living Melbourne, Living Victoria
Breathing life back into the Yarrowee River
Mordialloc Creek dredging
3,000.0
300.0
2,000.0
Management of environmental entitlements and on-ground delivery
Maintaining capability in groundwater management
Securing Priority Waterways: Regional on-ground works
10,669.0
1,204.3
16,153.0
Demonstrating waterway health outcomes
1,798.0
Surface water monitoring and data management
2,611.6
Groundwater monitoring of the State Observation Bore Network
1,692.2
Improving modelling for water resource management and transitioning to the National Hydrologic Platform
1,184.0
Manage risks to water availability
665.6
Water user entitlement refinement and market development
675.3
Enhancing the Victorian Water Register
943.5
Integrated water analysis and reporting
332.9
Simplifying the Bulk Water Entitlements Framework
219.4
Improved integrity in water savings assessment and management
135.7
Water law review
1,352.4
Coordination of Murray-Darling Basin Plan activities
Linking Farms and Catchments to Modernisation II (Whole Farm Planning in the GMID)
GMW Connections Project management - ensuring governance and accountability
386.0
1,990.7
127.1
Floods resilient communities and catchments
3,063.3
Kananook Creek
2,500.0
Basin Plan modelling
272.8
Living Victoria
7,500.5
Macalister Irrigation District 2030
Total output funding
220.7
60,996.9
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Asset
Macalister Irrigation District 2030
2,981.0
Groundwater bores
498.7
Total asset funding
3,479.7
Payment on Behalf of the State
Murray-Darling Basin Authority
4,200.0
Total payment on behalf of the state
4,200.0
Total Environmental Contribution
68,676.7
Description of 2013-14 Environmental Contribution initiatives
Living Melbourne, Living Victoria
This initiative funds work to promote improvements to Victoria’s urban water management, including a focus on new development
corridors to ensure integrated water management is built into these areas at construction phase.
Breathing life back into the Yarrowee River
This initiative will restore key components of the Yarrowee River as a first step to returning the health of this urban waterway,
providing the local community of Ballarat increased scope for recreational, social, environmental and sporting activities.
Mordialloc Creek dredging
This initiative contributes funding for the dredging of Mordialloc Creek from the Mordialloc Creek boat ramp to the mouth of the creek.
This will include the disposal of the dredge spoil at an appropriate licensed EPA landfill site, environmental monitoring and reporting of
the dredging operations, and the development of a long-term sustainable dredging plan for Mordialloc Creek.
Management of environmental entitlements and
on-ground delivery
This initiative provides for effective management, monitoring and reporting of the Environmental Water Reserve to facilitate the
sustainable development of water resources.These actions seek to ensure healthy and resilient rivers and wetlands that can meet the
diverse needs of Victorian communities.
Maintaining capability in groundwater management
This initiative ensures important policy and licensing works are undertaken. Specific projects include a review of legislative
instruments to remove licensing anomalies and developing a refined planning and reporting framework to align better with new
boundaries and the Murray-Darling Basin Plan.
Securing Priority Waterways: Regional on-ground works
This program aims to improve the environmental condition of Victoria’s high priority rivers, wetlands and estuaries.
This will be achieved via two inter-linked program components: on-ground physical works across regional Victoria and statewide
policy coordination and planning.
Demonstrating waterway health outcomes
This initiative implements an adaptive management program through monitoring the condition of waterways and assessing the impact
of government investment into waterway management activities. The initiative will deliver a macroinvertebrate sampling program
concentrating on assessing key intervention sites and will assess 500 key wetland sites. A targeted research program will also be
undertaken to quantify priority areas of uncertainty to help better understand the impact of management intervention activities.
Surface water monitoring and data management
This initiative provides the core data required for transparent and accountable water resource decision making and management and
will lead to more sustainable management of water resources and better support planning for critical incidents including floods,
drought and fire.
The initiative will deliver a statewide dataset for multiple purposes and comprise data from 770 monitoring sites across the state
including 119 flood warning sites and 156 water quality monitoring sites. The information collected and maintained will underpin a
range of water sector functions including waterway management and improvement programs, the Index of Stream Condition,
environmental water management, flood warning and flood plain management, water entitlement and resource allocation models and
water accounting.
Groundwater monitoring of the State Observation Bore Network
This project continues long-term ongoing monitoring of approximately 2,500 bores across Victoria to provide core groundwater data
for decision making about management of the resource. The information gathered provides water resource managers with key data
and knowledge to enable sustainable use, helps to guard against over-extraction and ensures that reserves do not become stressed
Department of Environment and Primary Industries 2013 – 14 Annual Report
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or drop below sustainable levels. It also supports groundwater planning. Long-term groundwater information is essential for
calibration of groundwater models as well as detecting and drawing attention to changes in groundwater response. This is particularly
important in a variable climate. The analysis of changes related to floods and droughts requires specific information about extreme
events.
Improving modelling for water resource management and transitioning to the National Hydrologic Platform
This initiative will ensure Victoria’s water policy development and management of Victoria’s surface water resources and its share of
interstate systems is supported by technical knowledge, resources and up to date water resource models.
Manage risks to water availability
This initiative will deliver an improved statewide understanding of the risks to water availability (over a range of timescales) arising
from climate variability and land use change. The initiative delivers the Victorian Climate Initiative, which is managed in partnership
with the Bureau of Meteorology and CSIRO.
Water user entitlement refinement and market development
This initiative ensures delivery of important policy work refining water user entitlements and water markets, in order to meet legal and
policy obligations. Water user entitlements policy work includes: solving problems arising from the unbundling of entitlements;
improving the quality of data attached to entitlement records; ensuring that overuse is appropriately handled; continuing to improve
the management of take-and-use licences; continuing to implement and communicate carryover reforms; and better defining
entitlements and improving their administration.
Water markets policy work includes: liberalising or adjusting trading rules where necessary, including changes that flow from the
Murray-Darling Basin Plan; providing improved market information; dealing with factors having a major impact on the market, such as
the Commonwealth’s purchase program; policy work to allow further streamlining of trade processing in the Victorian Water Register;
and exploring the potential for extending market mechanisms.
Enhancing the Victorian Water Register
This initiative provides for necessary enhancements to the Victorian Water Register. The Water Register records all water-related
entitlements (more than 80,000 entitlements that are mostly water shares and take-and-use licences, and 100,000 associated
licences). This initiative will facilitate enhancements to the Register that are needed to provide benefits to irrigators, environmental
users and other Register users.
Integrated water analysis and reporting
This initiative delivers integrated reporting and analysis capability. This will ensure that Victoria continues to have access to integrated
information and knowledge on the state of its water resources and meet Victoria’s water resources assessment obligations.
Simplifying the Bulk Water Entitlements Framework
This initiative promotes the sustainable management of water through improvements to the statewide Bulk Water Entitlement
Framework. The project’s key objectives are to clarify roles and responsibilities for aspects of water management, introduce
consistent legal rights for alternative water sources, and assist in transitioning smoothly to Water Resource Plans under the Basin
Plan.
Improved integrity in water savings assessment and management
This initiative will maintain and review the Water Savings Protocol and Technical Manual. For the Goulburn Murray Connections
Program, the initiative will provide for an annual audit of water savings and undertake a review of the Baseline water balance and
undertake up to two other water balances throughout the period of the project. The initiative will also provide for required reporting to
Government and support the determination of water entitlements attributable to water savings.
Water Law Review
This initiative will review Victoria’s water legislation and develop a streamlined Water Act 1989 that: provides for integrated and
sustainable water resource management and use in Victoria; gives effect to the Government’s water policies; and provides for the
implementation of the Murray-Darling Basin Plan while maintaining the integrity of Victoria’s entitlement regime.
Coordination of Murray-Darling Basin Plan activities
This project will help to implement new water management arrangements in northern Victoria required to ensure that Victoria can
meet its obligations under the Commonwealth Government’s Murray-Darling Basin Plan, approved in late 2012 to take full effect from
mid-2019. This project provides policy, legal and community engagement support and coordination to enable a smooth transition to
the new arrangements under the Plan.
Linking Farms and Catchments to Modernisation II (Whole Farm Planning in the GMID)
This initiative funds incentives for irrigators to complete property management planning and, if eligible, fund on-farm systems
upgrades to improve water use efficiency along with natural resource management improvements on-farm. This initiative will also
ensure alignment of farm business decision making and changes with large scale water reform to deliver optimal water resource use
and environmental benefits.
Goulburn Murray Connections Program Project Management - ensuring governance and accountability
This initiative funds project management and governance of the Goulburn Murray Connections Program. This will ensure that the
program will be delivered in accordance with the Stage 1 and Stage 2 business cases.
Flood resilient communities and catchments
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This initiative provides the state’s contribution towards flood mitigation works for urban communities, develop the State Flood
Management Strategy and commences better flood information mapping for priority rural areas.
The initiative will promote more effective emergency response and safer communities, better flood information and community
awareness, better land use planning and better mitigation strategies.
Kananook Creek
This initiative delivered a program of dredging of 600 millimetres of silt (approximately 2,700 cubic metres)
from the bed of Kananook Creek to enable the return
of watercraft in the lower section of the creek.
Basin Plan Modelling
This initiative provides for the modelling required to develop Victoria’s proposal for adjustments to the Basin Plan’s Sustainable
Diversion Limits.
Living Victoria
This initiative will fund work to embed generational water cycle reform in Victoria as articulated by the Living Melbourne, Living
Victoria policy.
The government’s commitment to this reform was reiterated in its recent Economic Action Plan.
Macalister Irrigation District 2030
This initiative provides for the modernisation of the Macalister Irrigation District. The project will achieve approximately 12.3 gigalitres
in water savings and will also increase on-farm productivity.
Groundwater Monitoring Bores
This initiative provides a program of works to repair, maintain and replace groundwater monitoring bores to enable effective and efficient
management of groundwater resources.
Current inadequacies in the groundwater resource monitoring network limits the ability of resource managers to assess the state of
groundwater resources and enforce sustainable resource use. This initiative will commence a program of capital works to better align
the state’s network with the location and patterns of use of our groundwater resources, thus enabling better understanding of these
resources and enhancing our capability to manage them sustainably.
Murray-Darling Basin Authority
This initiative provides part of Victoria’s 2013-14 annual contribution towards Joint Programs delivered on behalf of the Basin
Governments by the Murray-Darling Basin Authority. As a signatory to the Murray-Darling Basin Agreement 2008, Victoria is required
to make an annual contribution to the operating costs of the Murray-Darling Basin Authority (MDBA) (previously known as the
Murray-Darling Basin Commission). These contributions are made by the department under a Payment on Behalf of the State
(POBOS) arrangement.
Further information on the progress and achievements of initiatives funded by the Environmental Contribution can be found at the
DEPI website.
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Appendix 6: Ministerial statements of expectations
Biosecurity Victoria 2013-14 annual report against Ministerial Statement of Expectations
On 27 October 2011, the Minister for Agriculture and Food Security signed the Ministerial Statement of Expectations for Biosecurity
matters.
The three key areas of focus were:

Government policy and objectives

Stakeholder relationships and engagement

Accountability and transparency.
This is the final report against the Statement published in 2011. Consistent with Department of Treasury and Finance guidelines, the
Minister for Agriculture and Food Security issued a new Statement of Expectations for biosecurity matters in June 2014, which
replaces the 2011 Statement of Expectations.
Snapshot of regulatory performance
Refer to page 51-54 for a report of regulatory performance against output performance measures for Biosecurity.
Actions
Government policy and objectives
The commencement of the Department of Environment and Primary Industries (DEPI) on 1 July 2013, bringing together the former
Departments of Primary Industries (DPI) and Sustainability and Environment (DSE) provides a significant opportunity to deliver on
biosecurity objectives. Ensuring that Victoria has contemporary and efficient legislation that enables the management of known and
emerging biosecurity risks remains a priority for the Biosecurity Division.
In 2013-14, DEPI implemented the government policy of regionalising biosecurity operations. On 23 June 2014, 240 staff transferred
to DEPI Regional Services. It is anticipated in line with government policy that this will result in a more consistent stakeholder
experience and deliver localised regulatory solutions.
In addition, over the last 12 months, several significant pieces of legislative reform have been delivered including:

amendments to the Plant Biosecurity Act 2010 to assist with cost recovery for biosecurity responses conducted on
abandoned properties, or where the owner cannot afford to manage pests or diseases that may spread to neighbouring
properties

introduction of the Domestic Animals Amendment Act 2014 (which commenced on 1 July 2014) introducing two of the three
recommendations made by the Coroner in relation to restricted breed dogs, as well as further requirements on the
management of declared dogs

gazettal of the mandatory Code of Practice for the Operation of Breeding and Rearing Businesses, introducing significant
changes to protect and enhance the welfare of dogs and cats in breeding establishments

introduction of the Drugs Poisons and Controlled Substances (Poppy Cultivation and Processing) Amendment Act 2014
which provides for the Minister for Agriculture and Food Security to establish a licit alkaloid poppy industry in Victoria.
In addition to legislative reform, DEPI has continued to:

pursue co-regulatory arrangements for a number of established plant pests, including Queensland Fruit Fly and potato cyst
nematode

deliver education programs, including the successful Responsible Pet Ownership Program, weed spotter training, private
veterinary training, and information sessions with landholder and community groups affected by cypress decline

deliver training to assist with the enforcement of legislation, for example, training local government enforcement officers on
the mandatory legislation of the breeding code, the Domestic Animals Amendment Act 1994 and the restricted breed dog
standard

maintain a collaborative partnership with state-wide community-led weed groups such as the Victorian Blackberry
Taskforce, Victorian Gorse Taskforce and Victorian Serrated Tussock Working Party to expand the community-led approach
to widespread weed management.
Regulatory responses
DEPI aims to ensure that regulatory responses are fit-for-purpose and that enforcement focuses on the failure of individuals and
entities to meet their regulatory obligations, especially where that failure impacts on the rights of others.
A summary of major compliance activity for the last 12 months is shown below.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Compliance
activity
Weeds and pest
animals
Detail
Activity
Outcome

Targeted compliance
activities for regionally
controlled weeds and
rabbits
Compliance and
treatment programs for
regionally prohibited
weeds
2,047 properties were inspected across
Victoria, covering 244,899 hectares
494 property owners were issued
with compliance notices; 30
property owners were issued with
infringement notices; 27 offences
across 11 properties were
prosecuted and one property
owner was issued official warning
letters
Response to reports
Trapping and baiting
807 incident reports were received from
Gippsland and North Eastern Victoria.
DEPI laid over 21,000 baits through
strategic 1080 ground baiting and aerial
baiting programs. A further 33,000 baits
were deployed by community wild dog
groups
In 2013-14, more than 1,000 wild
dogs were removed across
Victoria. This was managed
through the work of DEPI’s wild
dog control team, who trapped and
despatched 480 wild dogs, and
members of the public who
submitted more than 580 dog pelts
to the Victorian Fox and Wild Dog
Bounty
1,700 investigations/ activities
being conducted
Seizure and destruction of all
livestock from three properties due
to ongoing cruelty issues
Two infringement notices issued
due to breaches of Prevention of
Cruelty to Animal regulations
Nine successful prosecutions
relating to offences against the
Prevention of Cruelty to Animals
Act 1986 which resulted various
fines, a seven month prison term,
costs of $40,000 being awarded
and banning orders being handed
down
Attendance at eight livestock
transport rollovers across the state

Wild dog control


Animal welfare
Alleged cases of cruelty,
disease-related welfare
issues, and emergency
events such as livestock
transport rollovers and
bushfires
800 allegations or complaints received
relating to cruelty
Traceability and
disease
investigations
Protect and enhance
productivity and market
access by minimising the
impact of animal diseases
and animal welfare,
improving livestock
identification and traceability
and promoting appropriate
agricultural chemical use
40 intensive national livestock identification
system (NLIS) audits at saleyard (sheep
and cattle)
2,190 desktop and onsite abattoir audits
Buyer audits conducted for 12 saleyards
83 investigations relating to NLIS (Sheep,
Cattle and Pig) legislation
50 high risk swill properties audited
Provision of 835 advisory/warning letters for
NLIS breaches
Five infringement notices issued for NLIS
breaches
Four prosecutions for offences relating to
the Livestock Disease Control Act
(including swill feeding and NLIS offences)
Risk-based approaches
DEPI continues to use risk-based approaches to guide the delivery of regulatory outcomes and continually seeks to reduce the
regulatory burden on groups and individuals. This approach underpins decisions to pursue co-regulation where appropriate, is
essential in emergency planning and preparedness and guides enforcement activity.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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DEPI continued collaboration with the Commonwealth in national residue and industry generated surveys provides intelligence for follow-up
on possible breaches of chemical use and assists with focused, risk-based targeted residue monitoring. In addition to this national
approach, DEPI also conducts the Victorian Produce Monitoring Program and the Targeted Agricultural Residue Program, information
from which guides corrective practices in industry and, if necessary, compliance actions.
Systems and continuous improvement
DEPI is actively encouraging the uptake of Property Identification Codes (PICs) for plant-based industries. PICs have now been
allocated within the viticulture industries and there have been more than 750 issued across all plant types. The chestnut industry has
formally written to the Minister for Agriculture and Food Security to have the industry prescribed for PICs, which would make PICs for
commercial chestnut growers compulsory.
DEPI is continuing work with industry on the development of an electronic National Livestock Identification System (NLIS) for sheep
and goats. Where possible, commercial applications for electronic NLIS (Sheep and Goats) technology will be developed.
A review of the Victorian Declared Dog Register was completed and enhancements implemented to ensure currency and accuracy of
data on dogs declared as dangerous, menacing or of a restricted breed.
Emergency preparedness and management
Planning is underway to develop and implement a nationally accredited qualification framework for biosecurity emergency response
training. Implementation of this framework will ensure DEPI is developing the staff capability required for effective and efficient
emergency responses. The framework will integrate with Victoria’s emergency management capability development arrangements.
Emergency preparedness activities undertaken in 2013-14 include:

Exercise Odysseus (Foot-and-Mouth Disease)

Exercise Tortrix (False Codling Moth)

Workshop Acari (Varroa Mite).
Plant pest and disease incursion responses in 2013-14 include:

Green Snail, Chestnut Blight, Queensland Fruit Fly, Myrtle Rust, Red Tomato Spider Mite, Little Cherry Virus, Asian
Longicorn Beetle, Potato Spindle Tuber Viroid, Mulberry Longicorn, Pine Sawyer Beetle Pine Wilt Nematode.
Invasive species incursion responses in 2013-14 include:

Asian Black Spine Toad, Water Hyacinth, Hawkweed, Horsetails, Knotweed, Alligator Weed, Mexican Feather Grass,
Blackbuck Antelope, Red-Eared Slider Turtles, Boa Constrictors, Western Hognose Snakes, Corn Snakes, Cane Toads
There were no animal disease responses required in 2013-14, however there were a number of disease surveillance programs
implemented, including:

National Sentinel Hive Program

National Significant Disease Investigations

Livestock Disease Surveillance Program

Enhanced Transmissible Spongiform Encephalopathy (TSE) Surveillance.
DEPI staff also participated in the emergency response program for banana freckle in the Northern Territory and avian influenza in
New South Wales. This assists with preventing the spread of the disease to other jurisdictions and is also an important component in
developing staff capability to respond to future biosecurity threats in Victoria.
Biosecurity staff are working on a national basis to incorporate animal welfare and management into emergency management planning at
all levels of government and recognition of the need to include animals in panning by the Australian and New Zealand Emergency
Management Committee.
Influencing a national approach to policy development, regulation and standards
Victoria continues to actively participate in national reform activities to create a more unified and focused national biosecurity system. For
example, the Victorian Government, through the National Biosecurity Committee, contributes to a number of working groups established
to address matters associated with the Intergovernmental Agreement on Biosecurity and the National Environmental Biosecurity
Response Agreement. DEPI has continued to lead and inform national policy development through its active representation on the
Vertebrates Pest Committee, the Australian Weeds Committee, Animal Health Committee and Plant Health Committee and their
associated working groups.
Victoria continues to lead the development of a draft Regulatory Impact Statement (RIS) for the proposed Australian Animal Welfare
Standards and Guidelines – Livestock in Saleyards (Saleyard Welfare Standards) that will replace the Code of Practice for the
Welfare of Animals at Saleyards, allowing for the regulation of standards in state and territory legislation. The RIS is expected to be
finalised in December 2014. DEPI actively participates in the development of national animal welfare standards for sheep and cattle,
and exhibited animals.
DEPI continues to pursue the improvement and harmonisation of regulatory policy for the control and use of agricultural and veterinary
(agvet) chemicals and actively participates in the national AgVet Chemical Regulation Committee.
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Stakeholder relationships and management
DEPI convenes or contributes to a number of Ministerial, statutory and departmental committees in relation to operational, policy and
strategic issues across the biosecurity portfolio, including Victoria’s Cattle, Sheep and Goat, Apiary and Swine Compensation Fund
Advisory Committees, animal welfare advisory committees and the Wild Dog Control Advisory Committee.
Other significant relationships and arrangements include:

A formal working agreement with the Victorian Department of Health (DH) for the surveillance and management of zoonotic
diseases

Partnership approach established with New South Wales (NSW) Environment Protection Authority and NSW Local Land
Services to facilitate interstate supply of 1080 pest animal bait products between Victoria and NSW

Partnership approach established with DH regarding a number of 1080 pest animal bait regulatory reform projects

More than 3,000 registered Weed Spotters supporting the detection of State prohibited weeds

Partnerships with industry that result in the adoption of invasive pest and animal prevention, eradication or containment
practices

Progress in building the capacity of municipal councils to manage roadside issues

Partnerships with local government, animal welfare and industry groups to ensure a coordinated approach to animal welfare
emergencies under the Victorian Emergency Animal Welfare Plan.
Accountability and transparency
DEPI reports against nine output measures and our programs are regularly subjected to review by the Victorian Auditor-General’s
Office (VAGO).
DEPI continues its active participation in the Forum of Environment and Primary Industries Regulators, which includes agriculture,
environment and water portfolios. This Forum is important in strengthening relationships with other key regulators and identifying
opportunities to improve regulatory practices.
Performance indicators for biosecurity
DEPI worked with other areas of the Regulation and Compliance Group during 2013-14 to finalise the DEPI Compliance Policy, which
is the overarching compliance framework for the department. The policy is committed to developing a Compliance Performance
Management System (CPMS) for all DEPI regulators to provide greater assurance and oversight of compliance and enforcement
activities for the department and will seek to address recommendations of the recent VAGO performance audit of the Effectiveness of
Compliance Activities (former DPI and DSE).
DEPI has completed draft risk based compliance strategies for invasive species, animal health and welfare, plant biosecurity and
chemical biosecurity. It is anticipated that these will be completed in 2014-15.
DEPI is in the initial stages of developing the Biosecurity Evidence Framework (BEF), which will provide a consistent approach to
monitoring, evaluating and reporting performance against desired outcomes. The BEF will be aligned to the CPMS and will require
biosecurity regulators to report against regulatory better practice performance indicators. This work will be undertaken during
2014-15.
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Fisheries Victoria 2013-14 annual report against Ministerial Statement of Expectations
The Minister for Agriculture and Food Security signed the first Ministerial Statement of Expectations (SOE) for Fisheries and
Aquaculture on 21 November 2011.
The four key areas of focus were:
1. Government policy and objectives
2. Regulatory independence
3. Stakeholder relationships and management
4. Accountability and transparency.
The Victorian Government committed to issue new Statements of Expectations to regulators in 2014. These new ‘stage two’
statements have been prepared in accordance with Department of Treasury and Finance guidelines that state ‘Departments and
regulators will collaborate to develop a 2014-15 SOE that focuses on a broad range of governance and performance objectives to
improve regulatory outcomes, with two-year targets for performance improvement in priority areas’.
The Minister for Agriculture and Food Security signed the second stage SOE for the Regulation of Fisheries and Aquaculture Under
Victorian Legislation on 25 June 2014. This new statement replaces the earlier SOE. The new Statement and accompanying DEPI
response can be viewed on the DEPI website.
Snapshot of regulatory performance
Refer to page 51-54 for a report of regulatory performance against 2013-14 output performance measures for fisheries.
Actions
Government policy and objectives
DEPI, in its role as the regulator of Victoria’s wild harvest fisheries and aquaculture industry, delivers programs under the broad
objective of optimising the value gained from the current use of Victoria’s fishery resources while also securing future access.
DEPI programs include operational policy, licence and quota administration, regulatory science, fisheries management services and
education and enforcement programs. Fisheries programs that support the commercial fishing sector are delivered under a cost
recovery arrangement.
DEPI continued an approach through 2013-14 to improve the performance of selected fisheries in line with the above objective. This
approach is guided by broad principles such as improving resource access, improving allocation certainty, strengthening governance
and increasing stakeholder participation in fisheries management. Decisions are supported by evidence-based science.
A new commercial fishing entitlement to dive for scallops in Port Phillip Bay was successfully allocated by public auction in February
2014.
This is the first new wild catch fishery to be established in Victoria since the opening of the giant crab fishery in 2001. The new fishery
will be managed under a conservative Total Allowable Commercial Catch and divers will only be allowed to collect scallops by hand.
The licence holder is expected to focus on supplying premium live scallops for both the local restaurant market and to satisfy strong
national and international demand.
A process to transition the sea urchin fishery from a permit-based arrangement to a licence structure using quota allocation is nearing
completion, with arrangements expected to be finalised in July 2014. DEPI also worked closely with Victorian eel fishers during
2013-14 on granting access to additional waters, completing a review of Crown Land eel licence conditions and issuing new licences,
establishing protected species interaction reporting including an amnesty and securing Commonwealth Government eel export
accreditation until 2019.
A new prospective system of cost recovery for the provision of government services to the commercial fishing sector commenced on
1 April 2014. This new system delivers greater transparency and accountability for government service provision in commercial
fishery research, management and compliance. Industry has input into the design and specification of these services through the
Fisheries Cost Recovery Standing Committee. Ongoing consultation with industry occurs through fishery-specific cost recovery
forums.
A new agreement signed in 2013-14 granted an industry consortium access to the Queenscliff hatchery facility for a further seven
years beyond the initial three year agreement. The hatchery is producing blue mussels, Angasi (native) oysters, Sydney rock oysters
and scallops. This new agreement provides added certainty to an industry that is contributing strongly to the local economy through
direct employment as well as through product sales to local, Melbourne and wider consumers.
Red tape reduction
DEPI is working with the Victorian Competition and Efficiency Commission (VCEC) on a regulatory improvement study, including a
case study on the sea urchin fishery. The study is exploring the application of contemporary regulatory approaches to new or
emerging fisheries to achieve sustainability objectives using a cost-effective and flexible regime that facilitates ongoing development
of the fishery. The VCEC study is expected to identify opportunities to improve regulation in other Victorian fisheries. The study is
expected to be finalised in August 2014.
Regulatory independence
The Executive Director of Fisheries Victoria exercises the delegated responsibility for Ministerial and Secretarial powers under the
Department of Environment and Primary Industries 2013 – 14 Annual Report
230
Fisheries Act 1995.
DEPI continued to consult widely through 2013-14 on statutory decisions with sector representative bodies VRFish, Seafood
Industries Victoria (SIV), industry participants, the statewide recreational fishing forum and other interested parties, as relevant.
Specific examples of the application of DEPI’s regulatory independence in 2013-14 are:

Setting Total Allowable Commercial Catches for the abalone, rock lobster, giant crab and scallop fisheries

Implementation of an interim closure for the pipi fishery at Discovery Bay in Western Victoria in December 2013, designed to
protect the long term sustainability of this fishery

Amendments to the Fisheries Regulations 2009, which included regulations for the new Port Phillip Bay dive scallop fishery,
annual adjustment to fees, royalties and levies and changes to some Fisheries Notice administrative arrangements

Fisheries Notices implemented to address particular fisheries management matters, for example introducing a new limit on
the number of abalone and the amount of shellfish that can be possessed in vehicles in south-west Victoria

A review of size limits for the Murray cod fishery that culminated in the completion of a consultation paper on the use of slot
size limits to improve Victoria’s Murray cod fishery. The process also involved an extensive engagement process with key
recreational stakeholders to develop the proposal to reduce the current slot limit of 60-100cm to 50-70cm, and reduce the
bag limit from 2 to 1 in rivers.
A 60-day public consultation process on the draft Abalone Fishery Management Plan concluded on 9 June 2014. Submissions are
being considered by a working group that will provide advice to the Minister for Agriculture and Food Security in advance of the
Minister’s declaration of the new plan, expected early in 2014-15.
Statutory decisions take account of evidence based science including quantitative information such as stock assessment and catch
and effort data as well as relevant legislative provisions and management plans.
Stakeholder relationships and management
DEPI invests in building and maintaining effective working relationships with its many stakeholders across the fishing sectors within its
core role as the regulator of Victorian wild catch fisheries and aquaculture industry.
In August 2013 an interim, non-statutory Fisheries Advisory Council was established to provide advice on strategic issues relevant to
the management of Victoria’s fisheries. The Council is currently transitioning to a statutory body, following the completion of legislative
amendments to the Fisheries Act 1995, which took effect on 1 March 2014. Processes to appoint members to the new statutory body
are underway. Issues that may be considered by the new Council could include:

Improving the content and operation of management plans

Stakeholder engagement and co-management

Resource allocation

Service provision and contestability.
Work continued during 2013-14 with the abalone sector to improve governance arrangements for both the Western and Central
Zones. A new four-year funding agreement with Seafood Industry Victoria was signed in 2013-14.
DEPI continues to consult with recreational fishers through statewide and regional round table meetings, via surveys and through key
representative bodies. Angler suggestions gathered from round table meetings are published on DEPI’s external website and inform
future infrastructure and facilities development as well as fisheries management planning.
DEPI also connects directly with the recreational fishing community via a re-invigorated fortnightly Fish-E-Fax bulletin, information and
articles published in fishing publications, attendance at fishing and boating shows, angling club meetings and special events such as
the annual Goulburn Fishing Festival held at Eildon in North East Victoria.
The Fisheries Facebook page has nearly 7,000 active supporters and is an important and growing method of reaching Victorian
fishing stakeholders. More than 160 posts on a variety of fisheries subjects were posted on Fisheries Facebook during 2013-14,
attracting more than one million views. The most popular post, viewed by over 71,000 people is shown below.
Fisheries uses digital technology to deliver an extensive range of information on recreational fishing rules and practices to fishers. The
VicFishing smart phone application now has more 90,000 subscribers. Fisheries Victoria also distributed 300,000 copies of the 2014
Victorian Recreational Fishing Guide through over 900 outlets throughout Victoria, and further engaged with the recreational fishing
community via a range of educational products such as fish length rulers and plastic measuring tools for species such as rock lobster.
Fisheries education plays a vital role in ensuring Victorians understand and voluntarily comply with the rules and regulations that are in
place to ensure we sustainably manage fish resources. Fisheries education and engagement activities encourage the adoption of
responsible fishing behaviours, including the reporting of illegal activity to the 13FISH Fisheries Intelligence Reporting Line.
DEPI connects with children, at-risk communities, recreational fishers and the wider community through activities conducted at the
Marine and Freshwater Discovery Centre (MFDC) and an outreach program delivered through schools, community centres and at
locations where fishing activities occur. In 2013-2014, around 40,000 people were engaged directly by Fisheries Education staff.
Targeted education and engagement messages were also delivered to around a further 40,000 recreational fishers by Fisheries
Officers in the course of their duties.
A summary of Fisheries Victoria’s engagement with different groups over recent years is provided in the table below:
Department of Environment and Primary Industries 2013 – 14 Annual Report
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At risk communities
MFDC general
community
Schools total number
Grand total
2009-10
4 050
6 702
26 605
37 357
2010-11
7 500
7 580
31 219
46 399
2011-12
8 385
11 543
28 457
48 385
2012-13
6 500
11 724
26 551
44 775
2013-14
9 363
6 938
23 600
39 901
Year
Fisheries staff worked closely with other DEPI staff, catchment management authorities and recreational fishing stakeholders in the
latter part of 2013 through a series of regional workshops that identified local scale fishery management priorities and associated
priority actions. These have now been incorporated into new Regional Waterway Strategies and will inform future investment
decision-making on habitat improvement works and other natural resource management development activities.
Accountability and transparency
DEPI continues to publish a range of material on the DEPI external website in relation to the discharge of its regulatory obligations.
Examples include decisions by the Translocation Evaluation Panel, new or amended Fisheries Notices, decisions on the allocation of
Total Allowable Commercial Catch and annual statistics on commercial fish production.
DEPI once again published its strategic compliance priorities on the DEPI external website in 2013-14. Information on enforcement
outcomes including compliance performance statistics, major compliance operations and court prosecutions was also published on
the external website during the year.
Fisheries Officers conducted 40,567 inspections during 2013-14. A table detailing the number of inspections and enforcement
outcomes summaries by fishing sector is below.
Inspections
conducted
Offenders
detected
Verbal
warnings
issued
Official
(written)
warnings
issued
Infringement
notices issued
Briefs
written
Commercial
665
108
72
24
27
10
Recreational
39 253
3 647
1 664
1 236
1 430
55
Unlicensed/Take
For Sale
170
29
1
3
1
10
Marine Parks
438
177
62
63
65
5
Aquaculture
41
7
6
1
0
0
Fishing Sector
Department of Environment and Primary Industries 2013 – 14 Annual Report
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Appendix 7: Acronyms
AAS
Australian Accounting Standards
AIIMS
Australasian Inter-service Incident Management System
ARI
Arthur Rylah Institute for Environmental Research
CFA
Country Fire Authority
CMA
Catchment Management Authority
CSC
Customer Service Centre
DEPI
Department of Environment and Primary Industries
DPC
Department of Premier and Cabinet
DPCD
Department of Planning and Community Development
DPI
Department of Primary Industries
DSDBI
Department of State Development Business and Innovation
DSE
Department of Sustainability and Environment
DTF
Department of Treasury and Finance
DTPLI
Department of Transport, Planning and Local Infrastructure
EMS
Environmental Management System
EPA
Environment Protection Authority
EWR
Environmental Water Reserve
FMCF
Financial Management Compliance Framework
FOI
Freedom of Information
FRD
Financial Reporting Direction
FTE
Full Time Equivalent
ISO
International Organisation for Standardisation
MFB
Metropolitan Fire Brigade
MW
Melbourne Water
NA
Not Applicable
NEO
Networked Emergency Organisation
OHS
Occupational Health and Safety
OLV
Office of Living Victoria
PFF
Project Firefighter
PPP
Public Private Partnership
PV
Parks Victoria
SCC
State Coordination Centre
SES
State Emergency Service
SGV
Surveyor-General Victoria
SV
Sustainability Victoria
VBRC
Victorian Bushfires Royal Commission
VGV
Valuer-General Victoria
VGPB
Victorian Government Purchasing Board
VIPP
Victorian Industry Participation Policy
Units of measure
L
Litre
G
Gigalitre
ML
Megalitre
Ha
Hectare
Department of Environment and Primary Industries 2013 – 14 Annual Report
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