MOP0157 MOPT Annual Report 2014 15 WEB

Transcription

ANNUAL REPORT 2015
Cover photo supplied by Peter Bennetts.
This report has been printed on 100% post consumer recycled stock.
© State of Victoria, Melbourne & Olympic Parks Trust 2015.
This publication is copyright. No part may be reproduced by any process
except in accordance with the provisions of the Copyright Act 1968.
CONTENTS
Governance4
The Chairman’s Report 6
The CEO’s Report
7
Highlights 2014-15
9
Our Partners
11
Financial Overview
12
Financial Statements
13
Administrative Reporting Requirements
56
Disclosure Index
59
GOVERNANCE
Establishment
The Melbourne and Olympic Parks Trust (MOPT) was established
on 5 October 1995 pursuant to the provisions of the Melbourne
and Olympic Parks Act 1985 (as amended). It was created by the
merger of the National Tennis Centre Trust (established 13 Nov
1985) and the Olympic Park Committee of Management (formed
originally in 1909). The Act is jointly administered by both the
Premier of Victoria, the Honourable Daniel Andrews, and the
Minister for Tourism and Major Events, the Honourable John Eren.
The Melbourne and Olympic Parks Act 1985
The Purpose of the Act:
The purposes of the Act as outlined in Section 3 are:
• To create a Melbourne and Olympic Parks Trust to administer
Melbourne Park, Olympic Park and certain other land and
facilities for the purposes of tennis, other sports, recreation
and entertainment.
• To provide for the management and operation of Melbourne
Park and Olympic Park.
• To provide for the use and promotion of Melbourne Park and
Olympic Park.
• To provide for the management of Gosch’s Paddock by the
Trust as a committee of management under the Crown Lands
(Reserves) Act 1978.
Melbourne & Olympic Parks’ Formula for Success
Melbourne & Olympic Parks' strategic direction is outlined by the
following purpose, vision and goals:
Purpose
To administer, manage and promote the use of Melbourne &
Olympic Park lands for the purposes of tennis, other sports,
recreation and entertainment (Melbourne and Olympic Parks Act).
Vision
Melbourne & Olympic Parks – a world class business delivering
world class customer experiences.
Our Goals
1.Maintain our financial sustainability.
Under the Act, the Trust has the following primary functions:
3.Ensure the customer experience is at the heart of everything
we do.
• To be responsible for the care, improvement, use and
promotion of Melbourne Park and Olympic Park as facilities for
tennis, other sports, recreation and entertainment.
• To operate Melbourne Park and Olympic Park efficiently and
effectively to obtain the best possible use of the facilities.
• To provide planning for the operation of Melbourne Park and
Olympic Park, which is coordinated between the two facilities.
• To be responsible for proper financial management of
Melbourne Park and Olympic Park.
MELBOURNE & OLYMPIC PARKS TRUST
• To provide for the development, promotion, management,
operation and use of facilities and services for the parking
of vehicles and other necessary services to be used in
conjunction with any of the facilities operated or managed by
the Trust.
• To provide for the development, promotion, management,
operation and use of sports, recreation and entertainment
facilities and services in Victoria in addition to those at
Melbourne Park and Olympic Park.
• To accept appointment and act as a committee of
management of Crown lands.
4
• To provide for the planning, development, promotion,
management, operation and use of other sports, recreation
and entertainment facilities and services in Victoria.
2.Increase benefits to the people of Victoria.
4.Grow by expanding into new markets.
5.Transform our business processes to deliver cost effective
services.
6.Build an integrated team of talented people who consistently
strive to achieve.
GOVERNANCE
TRUSTEES
Mr Russell Caplan (Chairman)
Ms Sharelle McMahon
Mr Raymond Smith
Ms Deborah Beale
(to 12 November 2014)
Ms Diana Nicholson
Ms Mikaela Stafrace
(from 22 July 2014)
Mr Steve Healy
Mr Kenneth Roche AO
Mr Scott Tanner
Mr David Stobart
EXECUTIVE TEAM
Mr Brian Morris – Chief Executive Officer
Mr Travis Mardling – Chief Financial Officer
Mr Russell Fakira – Director of People & Operations
Mr Shane Mates – General Manager AAMI Park
Mr Greg George – Director of Commercial & Strategy
Mr Geoff McDonald – Director of Infrastructure
Ms Enna Giampiccolo – Corporate Communications Manager
Statement of Corporate Governance
Finance Audit and Risk Committee
Procedures have been established at the Trust and executive
management level, which are designed to safeguard the assets
and interests of the Trust and to ensure integrity of reporting.
The Trust acknowledges the need for and continued maintenance
of the highest standards of corporate governance practice and
ethical conduct by all Trustees and employees of the Trust.
The Trust has established a Finance Audit and Risk Committee to
provide advice in relation to matters falling into the broad areas of:
Remuneration Committee
• funding.
Mr Russell Caplan (Chair)
Ms Diana Nicholson
Mr Kenneth Roche AO
Mr Raymond Smith
• risk management
• governance, and
The Committee meets monthly, or more often as required, and
makes recommendations to the Trust on specific issues.
The members of the Committee during the year ended 30 June
2015 were:
Mr Raymond Smith (Chair)
Ms Deborah Beale
Mr Russell Caplan
Ms Diana Nicholson
Mr Kenneth Roche AO
Ms Mikaela Stafrace
All Finance, Audit and Risk Committee members are independent
from management.
Strategic Planning Committee
The Trust’s Strategic Planning Committee is established to provide
independent and expert advice to assist the Trust to discharge its
strategic planning responsibilities.
The Members of the Committee during the year ended 30 June
2015 were:
Mr Russell Caplan (Chair)
Ms Deborah Beale
Mr Raymond Smith
Ms Mikaela Stafrace
Mr Scott Tanner
The Trust has established a Remuneration Committee to govern
the Trust’s policy and practice for executive remuneration and
to determine the individual remuneration packages for its
executive staff. The Committee meets as required and makes
recommendations to the Trust on specific issues. The members of
the Committee during the year ended 30 June 2015 were:
• financial reporting, accounting policies and internal controls
5
THE CHAIRMAN’S REPORT
The Melbourne & Olympic Parks precinct continues to serve our
patrons and stakeholders well, while at the same time delivering
world class new and expanded facilities in a comprehensive
redevelopment set out in the Melbourne Park Master Plan.
The Trust produced positive financial results in FY2015, reporting
a net profit of $745,000. This is despite the significant increase in
depreciation stemming from the major investment in facilities and
non-revenue earning infrastructure and a cyclical downturn in the
number of events at Rod Laver Arena, partly offset by an increase
in new local music events at Margaret Court Arena and a strong
focus on cost control.
Our earnings are reinvested into the precinct, so that it is
operated and maintained at a level that enhances its reputation in
Melbourne and around the world.
The redevelopment of Melbourne Park continued throughout
the year. Stage 1 of the Master Plan was completed with
the opening of the refurbished Margaret Court Arena, now a
genuine, multi-purpose venue with a distinctive retractable roof.
Melbourne Park is the only tennis Grand Slam venue in the world
with three operable roofs, allowing play to continue regardless
of the weather - an important contributor to the ongoing success
of the Australian Open.
In February, construction began on a new building that will
house meeting rooms, production spaces, a media centre for
events and offices for Tennis Australia and for the Melbourne
& Olympic Parks team. Design work also began on the new
footbridge connecting Melbourne Park and Birrarung Marr,
Flinders Street Station and the CBD.
Rod Laver Arena is nearing its 30th birthday and as part of the
Master Plan will undergo a comprehensive refurbishment to
benefit patrons, players and performers and to ensure it retains
its preeminent global standing. In June, the Victorian Government
unveiled the designs prepared by Cox Architects and work will
begin following the 2016 Australian Open. The refurbishment is
part of the already announced Stage 2 funding of the Melbourne
Park redevelopment, to which the Trust is contributing $40
million. The Trust appreciates the support provided by successive
Victorian Governments to ensure that Melbourne & Olympic Parks
maintains its world class venue status.
6
The 2015 Australian Open was again a great success, attended by
a record 703,899 patrons. Margaret Court Arena was acclaimed
as a wonderful new addition to the tournament, thrilling fans with
its superior comfort and up-close-and-personal viewing. Hisense
Arena with its more than 10,000 seats was opened up this year to
the public as a general admission area. This along with increased
external court seating and shade areas provided tennis fans with
more options and opportunity to view outstanding tennis for the
price of a ground pass. Both Tennis Australia and M&OP staff
deserve congratulations for conducting yet another outstanding
tournament and ensuring the safety, comfort and enjoyment of
all attendees.
AAMI Park also had an unforgettable year. It hosted the biggest
football tournament ever played in Australia - the Asian Cup.
More than 125,000 soccer fans attended AAMI Park throughout
January to witness first class football. AAMI Park in all its glory
was beamed into hundreds of millions of homes across the world,
delivering the most incredible advertisement for our venue and
its award-winning pitch. In May, the stadium hosted the A-League
Grand Final which resulted in Melbourne Victory defeating Sydney
FC. This was the perfect way to cap off an incredible year for the
AAMI Park team.
Hisense Arena continues to cement its reputation as an
outstanding venue for indoor sports. This year saw the
introduction of a centre hung video cube and enhanced
audio capability, improving the game experience in-line with
international trends. Both home teams, the Melbourne Vixens and
Melbourne United continue to grow. The velodrome was also in
action this year with the hosting of the 117th Austral Wheelrace.
Construction is now well advanced on the new Collingwood
Football Club Community Facility at Olympic Park. The centre will
provide new public amenities, sports change rooms and a health
and wellness facility. As a part of the ongoing enhancement of
Melbourne & Olympic Parks, these facilities will provide greater
recreational opportunities for the public, for schools and for
sporting and community groups.
I would like to express my thanks to the Premier of Victoria,
the Honourable Daniel Andrews, and the Minister for Tourism
and Major Events, the Honourable John Eren, for their strong,
continued support for Melbourne & Olympic Parks. The Trust deeply
appreciates the bipartisan backing of the precinct in the Parliament.
I would like also to record the Trust’s appreciation to CEO Brian
Morris and the team at Melbourne & Olympic Parks for their
expertise and their commitment to delivering exceptional guest
experiences, despite the ongoing challenges presented by the
major redevelopment works.
Finally, thanks to my fellow Trustees for their contribution
and support and, in particular, thanks to Deborah Beale who
completed her term as a Trustee in the last year. She made an
outstanding contribution as a member of the Finance Audit and
Risk Committee and the Strategic Planning Committee, and I
thank her very much for all her hard work and drive.
In accordance with the Financial Management Act 1994, I am
pleased to present the Report of Operations for the Melbourne and
Olympic Parks Trust for the year ending 30 June 2015.
Russell Caplan
THE CEO’S REPORT
Overall Performance
The Trust reported a positive result with a net profit after
depreciation of $745,000. The year ended with earnings
(EBITDA) of $31.617 million which was 2 per cent down on the
prior year due mainly to a slowdown in the international live
music touring market. This had a significant impact on Rod
Laver Arena earnings, which were partly offset by the strong
performance of AAMI Park, Margaret Court Arena and Hisense
Arena. A concentration on cost management also helped to
maintain profitability.
The precinct total of 194 stadium and arena event days was
slightly up on the prior year figure of 191. Total number of
contracted days ie, the number of days our venues were booked by
hirers increased from 213 last year to 237 in 2014/15.
Australian Open
A record 703,899 patrons broke the attendance record at the
2015 Australian Open. The Melbourne weather provided perfect
conditions, helping to lure almost 70,000 more fans to the event
than the prior year. Margaret Court Arena made its debut at the
Australian Open as a new venue and received high praise for its
stylish design and exceptional patron amenities. Hisense Arena
was opened to the public this year to allow ground passes to
witness some of the biggest stars in action. During the second
week, Hisense Arena was transformed into a Disney activation,
providing families with a great new option as part of the tennis
experience.
Rod Laver Arena
In total Rod Laver Arena attracted 597,045 patrons over 52 event
days. Katy Perry performed eight capacity shows, providing
delighted fans with a series of fun, energetic and thoroughly
entertaining concerts. This year we also saw the return of music
legends, The Eagles, John Farnham and Olivia Newton-John, Rod
Stewart and the ever-popular, Kylie Minogue.
As set out in the Melbourne Park Master Plan, the next phase
of the $700 million transformation of our site includes a
comprehensive refurbishment of our much-loved Rod Laver
Arena. Early designs were released to the public in June and
were met with much excitement from industry and the general
public. Rod Laver Arena was opened in 1988 and at the time
was seen as ground breaking with its opening roof and modern
facilities. However, the needs of patrons and the entertainment
landscape have changed considerably since then and we welcome
refurbishments that will ensure Rod Laver Arena remains in the
top echelon of multi-purpose arenas worldwide.
Hisense Arena
In total, Hisense Arena attracted 259,325 patrons to 54 event
days, six event days up on 2013/14. Sport continues to be
a primary focus for this arena with ongoing investments in
improving the team and patron experience.
Netball and basketball again proved the major drawcard; with
the Melbourne Vixens and Melbourne United each continuing to
draw good crowds throughout their seasons. During the year
the venue team introduced patrons to the “Cube”, a four-sided
viewing and entertainment platform designed to improve the
game experience. The pilot proved successful and the Trust will
now invest in new technology to add an exciting dimension to the
viewing experience of indoor sports at Hisense Arena.
In December, the world’s best cyclists returned to the velodrome
at Hisense Arena to compete in the 117th Austral Wheelrace while
in May, following a successful first year in FY2014, we saw the
return of the Australian Gymnastics Championships.
The arena’s versatility was brought to the fore throughout the
year with: electronic dance music events, Disney on Ice and
Dancesports also adding to the long list of varied events at
Hisense Arena.
AAMI Park
A total of 84 event days drew 855,872 patrons to AAMI Park in a
year where the stadium hosted the Asian Cup, an A-League Grand
Final and two Monster Jam events.
The transformation of AAMI Park to a monster truck obstacle
course captured the imagination of many, with more than 40,000
people attending the two shows. Meticulous preparation ensured
the stadium’s award-winning pitch was well-equipped to handle
the 3.5-metre tall, five-tonne machines. Dedicated crews worked
around the clock to build a custom-designed racetrack from 3,000
cubic metres of dirt, dropped into the stadium specifically for the
event.
In November, the AAMI Park pitch was replaced – the first time
since the stadium opened in 2010. The refurbishment ensured the
pitch was in optimum condition for the seven Asian Cup games at
AAMI Park in January.
AAMI Park hosted the Asian Cup opening ceremony, where a
sold-out sea of yellow and green football fans cheered on the
Socceroos to victory. More than 125,000 fans attended the seven
matches at the stadium – an outstanding result and an excellent
advertisement for the game.
The A-League Grand Final was also hosted at AAMI Park, with
a thrilling premiership win by home club, Melbourne Victory.
Congratulations to Ian Robson, Kevin Muscat and all of the team
at Melbourne Victory.
Our other stadium teams, Melbourne City, Melbourne Storm and
Melbourne Rebels also enjoyed strong performances and growing
game attendances.
In January, Melbourne & Olympic Parks was front and centre on
the world’s stage as we simultaneously delivered two international
sporting tournaments, each generating priceless global broadcast
coverage and cementing our reputation as an unbeatable sport
and entertainment precinct. A record-breaking Australian Open,
the fortnight-long Asian Cup (football) as well as the opening of
Margaret Court Arena as a sport and entertainment venue, made
for an unforgettable 2015 financial year.
7
THE CEO’S REPORT
Margaret Court Arena
This year saw the opening of Margaret Court Arena as a venue
in its own right, following its stunning transformation from an
outdoor showcourt to an arena in its own right. A number of test
events were held in October, followed by the first commercial
event in November – an NBL game between Melbourne United and
the Cairns Taipans. Australian hip-hop pioneers the Hilltop Hoods
were the first ticketed act to grace the stage when they brought
their ‘Cosby Sweater Tour’ to the arena in late 2014.
A total of 101,075 patrons attended 16 event days at Margaret
Court Arena, which was well above expectations and an excellent
indication the arena is an exciting new addition to Melbourne’s
live music scene. The boutique arena provides an intimate
atmosphere and world-class sound, and can accommodate
around 6,500 people when in concert mode.
Melbourne United and Melbourne Vixens have also played a
selection of matches from their respective fixtures at Margaret
Court Arena, which again proves the flexibility of our venues in
hosting a wide range of sport and entertainment events.
Community Activities
The Trust continues to strengthen its connection to the
community both through the provision of quality parkland, public
open space and support for community activities.
This year Rod Laver Arena featured in Open House Melbourne
which provided a rare and exclusive behind the scenes tour of
the arena, taking in backstage areas, green rooms and Australian
Open change rooms. Staff who acted as guides provided visitors
with personal anecdotes, which added to the unique experience.
Some significant projects undertaken by the Trust during the year
included:
•
upgrades to the concourse, lifts, plant, catering and the
operable roof at Rod Laver Arena
•
improvements to the Hisense Arena concourse and patron
amenities
•
significant improvements to plant and lifts in Rod Laver
Arena
•
AAMI Park pitch replacement and retail improvements, and
•
amenity refurbishments at the Melbourne Park Function
Centre.
Works began on the Stage 2 of the Melbourne Park Master
Plan with all three significant projects underway. Construction
of the new administration building to the north of the site is
advancing well, so too is the design and planning for the new
bridge connecting Birrarung Marr to Melbourne Park and for the
extensive upgrades to Rod Laver Arena.
Gosch’s Paddock
Gosch’s Paddock continues to be used for training by Melbourne
Football Club, Melbourne Victory and Melbourne Storm, as well
as a variety of other organisations. Its fields and surrounds are
open for public use when not used for formal training. Annual
renovations were carried out on all the pitches to ensure they
were maintained to a high standard. Except for the small areas
under maintenance, Gosch’s Paddock was not closed to the public
during the year.
Three other community events were supported by Melbourne &
Olympic Parks, including the Great Amazing Race (raising money
for the Royal Children’s Hospital Foundation), the Seven Parks
Walk (mass participation event, raising funds for the Cancer
Council Victoria) and the Rapid Ascent CityTrail (participation
event utilising the unique footprint of the precinct).
Health & Safety
M&OP continues its strong commitment to health and safety, this
year maintaining its AS4801 accreditation for Safety Management
Systems. Employee, patron and tenant safety continues to be
an important focus in event planning, event delivery and in the
workplace.
Two charity partnerships were signed this year. Melbourne &
Olympic Parks continued to strengthen its relationship with its
charity partner Alkira, delivering programs in support of those
with an intellectual disability. An Alkira student completed an
eight-week work placement with M&OP’s Horticulture team in
FY2015, helping to build work-ready skills. A new partnership with
Whitelion – an organisation working to support at-risk youth –
was also started this year.
Finally, my deep appreciation to the Chairman of the Trust,
Russell Caplan and all of the Trustees, Dr Peter Hertan from Major
Sporting Events at the Department of Economic Development,
Jobs, Transport and Resources, Tim Bamford at Major Projects
Victoria, and their respective teams, for their support during the
year. A special thanks to the Melbourne & Olympic Parks team
who should feel very proud of the role they are playing at this very
significant time in the history of the precinct.
Capital Projects & Infrastructure
8
The Trust currently has assets under management of $1.3 billion,
requiring an intensive maintenance and capital replacement
regime. During the year the more than $17.9 million was spent or
committed by the Trust on capital works to improve and upgrade
facilities and infrastructure. The Trust also committed $40 million
to the Stage 2 Master Plan Redevelopment.
Brian Morris
HIGHLIGHTS 2014-2015
Events
Rod Laver Arena
International Ice Hockey
WWE 2014
Lady Gaga
Queen + Adam Lambert
Kanye West
Robbie Williams
Gabriel Iglesias
Andrea Bocelli
The Footy Show Grand Final Edition
Miley Cyrus
The Rolling Stones
Mariah Carey
Katy Perry
The Wiggles
Sting & Paul Simon on Stage Together
Roxette
Guy Sebastian
The Eagles
Drake
Lady Antebellum
Kylie Minogue
Rod Stewart
Russell Peters
Ed Sheeran
John Farnham & Oliva Newton-John
The Script
Ricky Martin
Backstreet Boys
Alt – J
Motley Crue
Nickelback
Spandau Ballet
2015 Ice Hockey Classic
5 Seconds of Summer
Hisense Arena
Disney on Ice Presents – Treasure Trove
The Voice Live
Story Night
Victorian State School Spectacular 2014
Australia v New Zealand International
Test Match
The Madden Brothers
Mundine v Rabchenko
69th Australian DanceSport
Championship 2014
The Austral Wheelrace
A State of Trance
Walking with Dinosaurs
Planetshakers Conference 2015
2015 Australian Gymnastic
Championships
Atlantis
X-Factor Auditions 2015
Melbourne United – NBL
(7 home games)
Vixens – ANZ Championships
(4 home games)
AAMI Park
Melbourne City – Hyundai A-League
(13 home matches)
Melbourne Rebels – Super Rugby
(8 home matches)
Melbourne Rising – National Rugby
Championship
(4 home matches and 1 final)
Melbourne Storm – NRL
(11 home matches and 1 final)
Melbourne Victory – Hyundai A-League
(8 home matches)
Monster Jam
(2 shows)
Rugby League 4 Nations – Australia v
England
AFC Asian Cup 2015
(7 matches)
Hyundai A-League Grand Final –
Melbourne Victory v Sydney FC
Mushroom Free for All
Hilltop Hoods
Laura Pausini
Angus & Julia Stone
Billy Idol
Amplify
Demi Lovato
Ben Howard
Harlem Globetrotters
Melbourne United – NBL
(4 home games)
Vixens – ANZ Championships
(3 home games)
Melbourne Park
Australian Open 2015
(19 Jan - 1 Feb 2015)
Number of contracted days - Melbourne Park arenas
Number of contracted days - AAMI Park Number of contracted days - Melbourne Park Function Centre Total ticketed patronage
Rod Laver Arena event ticketed attendance Hisense Arena event ticketed attendance
AAMI Park event ticketed attendance
Margaret Court Arena (opened in November 2014)
Melbourne Park Function Centre patrons Attendance at Australian Open Number of website visitors (all M&OP sites) *including 125,368 at the Asian Cup
2014/15
237
84
123
2,518,843
597,045
259,325
855,872*
101,075
67,994
703,899
1,139,786
2013/14 213
58
159
2,431,567
914,387 202,667 674,059 N/A
89,532
640,454 1,086,694
Key Statistics
9
HIGHLIGHTS 2014-2015
Major Capital Expenditure
Expenditure Type
Amount
Details
Melbourne Park
$4.3 million
Lift upgrades, improvements to tennis facilities, works to medical suites and
the Player Café extension. Also included refurbishments to the Davis Cup
Room and the Melbourne Park Function Centre bathrooms.
Rod Laver Arena
$4.4 million
Included upgrades to the concourse, amenities, chiller plant and initial works
on the operable roof upgrade project.
$0.5 million
Margaret Court Arena fixtures, fittings and equipment.
Equipment and Technology
$3.0 million
Included works relating to upgrade of the CCTV access and control system,
IPTV servers and encoders; catering equipment and office furniture relating to
office relocations.
Hisense Arena
$4.4 million
Included upgrades to concourse, amenities and scoreboards.
Olympic Park Precinct
$1.3 million
Included audio visual upgrades to the AAMI Park control room, retail bar
improvements and artificial turf replacement.
TOTAL
$17.9 million
Note: The ongoing Melbourne Park redevelopment continues to be managed and undertaken by Major Projects Victoria.
10
OUR PARTNERS
The Trust would like to thank the following organisations for their support over the past year
Tenants
Venue Partners
Calibre Feasts
AAMI
Collingwood Football Club
Capricorn Stages and Rigging
Imaging @ Olympic Park
Delaware North
Melbourne Football Club
Hisense Australia
Melbourne Storm
O’Brien Catering Group Australia
Melbourne Victory
Microhire
Olympic Park Sports Medicine Centre
TechGuard Security
Tennis Australia
Tennis Australia
Tennis Victoria
Ticketek
Regular Arena Hirers
Suppliers
Chugg Entertainment
Carlton & United Breweries
Dainty Consolidated Entertainment
Coca-Cola Amatil
Feld Entertainment
Diageo Australia
Frontier Touring
Heineken Lion Australia
Live Nation Australasia
Mondelez
Melbourne United
Patties Foods Limited
Melbourne Vixens
Pernod Ricard Australia
Nine Live
Peters
Treasury Wine Estates
AAMI Park Clubs
Melbourne City
Melbourne Rebels
Melbourne Storm
Melbourne Victory
Victorian Olympic Council
11
FINANCIAL OVERVIEW
The financial statements in this report relate to the activities of Melbourne and Olympic Parks Trust for the year ended 30 June 2015.
The net result for 2015 was a profit of $0.745 million (2014: $3.596 million).
In the 2014/15 year the Trust received grants from the Victorian Government totalling $28.390 million all of which was treated as
contributed capital (2014: $85.330 million). The grants in 2015 were further contributions towards the redevelopment of the Melbourne
Park precinct. The grants in 2015 and 2014 were contributions towards the redevelopment of the Melbourne Park precinct.
Total income for 2014/15 was $91.390 million, (2014: $92.557 million). Income related to the sales of goods and services decreased by
1.2 per cent which was primarily due to the shortfall of 26 event days at Rod Laver Arena compared to the prior year (2013/14 including the
run of 18 P!nk shows). This was partially offset by additional revenue from Margaret Court Arena’s early commencement in November 2014
attributing to a positive impact on Melbourne & Olympic Parks’ primary revenue stream (venue rental) and further uplifts to secondary
revenue streams including ticketing, catering and merchandise. There was also an increase in ticketing royalties in 2014/15 which was
attributed to the new ticketing services agreement with Ticketek ($3.2 million).
The significant factors in reaching Melbourne & Olympic Parks’ income for 2014/15 were:
•
Australian Open and tennis was $0.638 million better than the prior year due to catering and venue rental receipts from a higher public
attendance than the previous year (2015: 703,899 and 2014: 640,454).
•
Rod Laver Arena hosted 52 event days which was considerably down on the previous year due to the 18 P!nk shows in 2014.
•
Hisense Arena hosted 54 event days, which was higher than the prior year, with the 2014 figures affected by the venue being
unavailable for four months due to tennis court resurfacing works. Event-related income was higher than the previous year due to
the mix of events which resulted in higher yields (particularly Walking with Dinosaurs; five event days) and higher corporate sales
income.
•
The construction of Margaret Court Arena was completed in October of 2014 and hosted a total of 16 event days, which was well above
expectations.
•
AAMI Park hosted 58 event days, which was 14 per cent more than the previous year. In addition to being the home of the Melbourne
Storm (rugby league), Melbourne Rebels (rugby union), Melbourne Victory and Melbourne City (football), AAMI Park also hosted
notable events including Monster Jam and Asian Cup (football) matches.
•
The Trust again made a $3 million financial transfer to government (2014:$3 million), which is used to support the Victorian
Government’s sport and recreation programs and facilities.
Total expenditure in 2015 was $90.712 million, (2014: $88.987 million). This increase in expenditure was due to the increasing cost of
depreciation (an increase of $2.1 million from 2014) because of the completion of building upgrades and the new Margaret Court Arena.
This was slightly offset by decreased cost of staff and lower event related costs.
Property, Plant and Equipment (less accumulated depreciation) increased by $33.780 million compared to last year, primarily due to the
Melbourne Park redevelopment construction costs.
12
MELBOURNE & OLYMPIC
PARKS TRUST
FINANCIAL STATEMENTS
Comprehensive Operating Statement
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Financial Year Ended 30 June 2015
13
COMPREHENSIVE OPERATING STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
NOTE
2015
$’000
2014
$’000
INCOME FROM TRANSACTIONS
Sales of goods and services
Interest
Grants
Other Income
TOTAL INCOME FROM TRANSACTIONS
(2a)
(2b)
(2c)
(2d)
87,874
1,456
2,061
91,391
88,505
1,708
8
1,912
92,133
EXPENSES FROM TRANSACTIONS
Cost of goods sold/distributed
Purchase of services
Employee expenses
Depreciation & amortisation
Other operating expenses
Government financial transfer
TOTAL EXPENSES FROM TRANSACTIONS
(3a)
(3b)
(3c)
(7)
(3d)
(3e)
14,444
19,684
17,357
29,451
6,777
3,000
90,713
14,523
19,985
17,827
27,334
5,895
3,000
88,564
678
3,569
67
67
5
21
26
Net result
745
3,595
Comprehensive result
745
3,595
CONTINUING OPERATIONS
NET RESULT FROM TRANSACTIONS (NET OPERATING BALANCE)
Other economic flows included in net result
Net gain/(loss) on non-financial assets
Net gain/(loss) arising from revaluation of long service liability
Total other economic flows included in net result
(4a)
(4b)
The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes.
14
BALANCE SHEET
NOTE
2015
$’000
2014
$’000
FINANCIAL ASSETS
Cash and cash equivalents
Cash held on behalf of customers
Receivables
TOTAL FINANCIAL ASSETS
(5)
(1d)
(6)
58,110
46,590
4,748
109,448
60,177
42,972
2,775
105,924
NON-FINANCIAL ASSETS
Property, plant and equipment and intangible assets
Other
TOTAL NON-FINANCIAL ASSETS
(7)
(8)
1,326,829
255
1,327,084
1,293,051
301
1,293,352
1,436,532
1,399,276
17,068
3,070
58,195
78,333
12,471
2,909
54,832
70,212
NET ASSETS
1,358,199
1,329,064
EQUITY
Accumulated surplus/(deficit)
Reserves
Contributed capital
NET WORTH
203,540
314,675
839,984
1,358,199
202,795
314,675
811,594
1,329,064
ASSETS
TOTAL ASSETS
LIABILITIES
Payables
Provisions
Other
TOTAL LIABILITIES
Commitments for expenditure
Contingent assets and contingent liabilities
(9)
(10)
(11)
(13)
(14/15)
The above balance sheet should be read in conjunction with the accompanying notes.
15
STATEMENT OF CHANGES IN EQUITY
NOTE
Balance at 30 June 2013
Physical Asset
Revaluation
Surplus
$’000
Accumulated
Surplus
$’000
Contributions
by Owner
$’000
Total
$’000
314,675
199,200
726,264
1,240,139
Net Result for the Year
3,595
Transactions with owners in their
capacity as owners
314,675
Net Result for the Year
202,795
314,675
203,540
The above statement of changes in equity should be read in conjunction with the accompanying notes.
16
85,330
85,330
811,594
1,329,064
745
Transactions with owners in their
capacity as owners
3,595
745
28,390
28,390
839,984
1,358,199
CASH FLOW STATEMENT
NOTE
2015
$’000
2014
$’000
85,692
1,456
5,939
2,061
95,148
86,023
1,708
5,313
1,920
94,964
(49,209)
(9,530)
(3,000)
(61,739)
(53,415)
(9,209)
(3,000)
(65,624)
33,409
29,340
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for non-financial assets
Receipts on sale of non-financial assets
(63,866)
-
(110,262)
5
NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
(63,866)
(110,257)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts from government (capital)
28,390
85,330
NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES
28,390
85,330
Net increase/(decrease) in cash and cash equivalents
(2,067)
4,413
60,177
55,765
58,110
60,177
CASH FLOWS FROM OPERATING ACTIVITIES
RECEIPTS
Receipts from customers
Interest received
Goods and Services Tax received from the ATO
Other receipts
TOTAL RECEIPTS FROM OPERATING ACTIVITIES
PAYMENTS
Payments to suppliers and employees
Goods and Services Tax paid to the ATO
Payments to government (financial transfer)
TOTAL PAYMENTS FROM OPERATING ACTIVITIES
NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES
(17b)
Cash and cash equivalents at the beginning of the financial year
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
(17a)
The above cash flow statement should be read in conjunction with the accompanying notes.
17
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)Statement of Compliance
These general-purpose financial statements have been prepared
in accordance with the Financial Management Act 1994 (FMA),
applicable Australian Accounting Standards (AAS), which
includes the Australian accounting standards 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 AASs paragraphs applicable to not-forprofit 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, a glossary of terms and style conventions can be found
in Note 23.
(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.
• Level 2 – Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable; and
• Level 3 – Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.
For the purpose of fair value disclosures, the Trust has
determined classes of assets and liabilities based on the nature,
characteristics and risks of the asset or liability and the level of
the fair value hierarchy as explained above.
In addition, the Trust 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 Trust’s independent
valuation agency. VGV has utilised the services of Napier &
Blakeley, a third party valuer to determine fair value of the Trust’s
assets.
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.
The Trust, in conjunction with VGV (and Napier & Blakeley),
monitors changes in the fair value of each asset and liability
through relevant data sources to determine whether revaluation
is required.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision, and future
periods if the revision affects both current and future periods.
Judgements and assumptions made by management in the
application of AASs that have significant effects on the financial
statements and estimates relate to:
The accounting policies set out below have been applied in
preparing the financial statements for the year ended 30 June
2015 and the comparative information presented for the year
ended 30 June 2014.
• the fair value of land, buildings, infrastructure, plant and
equipment, (refer to Note 1(j)), and
18
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;
• actuarial 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(k)).
Consistent with AASB 13 Fair Value Management, Melbourne
and Olympic Parks Trust (the Trust) determines the policies and
procedures for recurring fair value measurements for property,
plant and equipment, in accordance with the requirements of
AASB 13 and the relevant Financial Reporting Directions.
These financial statements are presented in Australian dollars,
the functional and presentation currency of the Trust.
(c)Reporting entity
The financial statements cover the Trust as an individual
reporting entity. The Trust is a government agency of the State of
Victoria, established pursuant to the provisions of the Melbourne
and Olympic Parks Act 1985. Its principal address is:
Melbourne and Olympic Parks Trust
Batman Avenue
Melbourne VIC 3001
(d)Scope and presentations of financial statements
The Comprehensive Operating Statement comprises three
components, being ‘net result from transactions’ (or termed as
‘net operating balance’), ‘other economic flows included in net
result’, as well as ‘other economic flows – other comprehensive
income’. The sum of the former two, together with the net result
from discontinued operations, represents the net result.
‘Other economic flows’ are changes arising from market
remeasurements. They include:
• gains and losses from disposals of non-financial assets
• revaluations and impairments of non-financial physical and
tangible assets
• remeasurement arising from defined benefit superannuation
plans
• fair value changes of financial instruments and agricultural
assets, and
• depletion of natural assets (non-produced) from their use or
removal.
This classification is consistent with the whole of government
reporting format and is allowed under AASB 101 Presentation of
Financial Statements.
Refer to Note 23 Glossary for the definitions of ‘net result from
transactions, ‘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.
Current and non-current assets or liabilities (those expected to
be recovered or settled beyond 12 months) are disclosed in the
notes, where relevant.
Cash held on behalf of customers represents cash received for
event ticket sales which is held at bank from the time tickets are
purchased and paid out to the hirer after the event has taken
place.
Cash flow statement
Cash flows are classified according to whether or not they
arise from operating activities, investing activities, 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 include bank overdrafts, which are included as
current borrowings on the balance sheet.
Statement of changes in equity
The statement of changes in equity presents reconciliations of
non-owner and owner changes in equity from 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 recognised in ‘other economic flows – other
movements in equity’ related to ‘transactions with owner in its
capacity as owner’.
(e)Changes in accounting policies
Subsequent to the 2013-14 reporting period, the following new
and revised Standards have been adopted for the first time in the
current period with their financial impacts disclosed.
AASB 10 Consolidated Financial Statements
AASB 10 provides a new approach to determine whether an
entity has control over an entity, and therefore must present
consolidated financial statements. The new approach requires
the satisfaction of all three criteria for control to exist over an
entity for financial reporting purposes:
(a)The investor has control over the investee
(b)The investor has exposure, or rights to variable returns from
its involvement with the investee, and
(c)The investor has the ability to use its power over the investee
to affect the amount of the investor’s returns.
Based on the new criteria prescribed in AASB 10, the Trust has
reviewed the existing arrangements to determine if there are any
additional entities that need to be consolidated into the group.
The Trust has concluded that no additional entities have met the
control criteria.
(f) Events after reporting date
Assets, liabilities, income or expenses arise from past
transactions or other past events. Where the transactions
result from an agreement between the Trust and other parties,
the transactions are only recognised when the agreement is
irrevocable at or before the end of the reporting period.
Adjustments are made to amounts recognised in the financial
statements for events which occur after the reporting period and
before the date the financial statements are authorised for issue,
where those events provide information about conditions which
existed in the reporting period. Note disclosure is made about
events between the end of the reporting period and the date the
financial statements are authorised for issue where the events
relate to conditions which arose after the end of the reporting
period and which may have a material impact on the results of
subsequent reporting periods.
(g)Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount
of associated GST, unless the GST incurred is not recoverable
from the taxation authority. In this case it is recognised as part of
the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of
GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other
receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components
of cash flows arising from investing or financing activities which
are recoverable from, or payable to the taxation authority, are
presented as operating cash flows.
The net result is equivalent to profit or loss derived in accordance
with AASs.
19
(h)Income from transactions
Income is measured at the fair value of the consideration
received or receivable. Amounts disclosed as income are net of
returns, trade allowances and duties and taxes.
Sale of goods and services
Sale of goods and services is recognised upon delivery of the
goods and services to the customer and when the Trust gains
control of the underlying assets.
Interest
Interest income is recognised on a time proportionate basis that
takes into account the effective yield on the financial asset.
Grants
Grants from third parties are recognised as income in the reporting
period in which the Trust gains control over the contribution.
Other income
Sinking fund income is recognised as income in the reporting
period in which the Trust gains control over the underlying assets.
(i) Expenses from transactions
Payments to third parties are recognised as an expense in the
reporting period in which they are paid or are payable.
Useful Life
Buildings
50 - 110 years
Property Plant & Equipment
5 - 60 years
Motor Vehicles
5 years
Intangible Assets
5 years
Other operating expenses
Other operating expenses generally represent the day-to-day
running costs incurred in normal operations and are recognised
as an expense in the reporting period in which they are incurred.
Government financial transfers
Government financial transfers represents payment made by
the Trust to the Government for support of sport and recreation
programs.
(j) Other economic flows included in the net result
Cost of goods sold/distributed
Purchase of cost of goods sold/distributed are recognised as an
expense in the reporting period in which they are incurred.
Purchase of services
Purchase of services are recognised as an expense in the
reporting period in which they are incurred.
(ii) Impairment of non-financial assets
All of the Trust’s assets are assessed annually for
indications of impairment.
Employee expenses
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.
If there is an indication of impairment, the assets
concerned are tested as to whether their carrying
value exceeds their possible recoverable amount.
Where an asset’s carrying value exceeds its
recoverable amount, the difference is written-off by
a charge to the Comprehensive Operating Statement
except to the extent that the write-down can be
debited to an asset revaluation reserve amount
applicable to that class of asset.
Details of the funds which the Trust made superannuation
contributions to during the year are disclosed in Note 21.
Asset Class
(i) Net gain/(loss) on disposal of non-financial assets
Any gain or loss on disposal of non-current assets is
recognised at the date control of the asset is passed to
the buyer and is determined after deducting from the
proceeds the carrying value of the asset at that time.
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.
20
The following are typical estimated useful lives for different asset
classes for both current and prior years:
Depreciation and amortisation
In compliance with Australian Accounting Standard AASB116
Property, Plant and Equipment, depreciation and amortisation
has been charged on all fixed assets and capital works
developments, with the exception of Land. The provisions for
depreciation are made using the straight-line method, at rates
appropriate to the estimated useful life to the Trust of each
individual asset. Estimates of the remaining useful lives for all
assets are reviewed annually and range from greater than zero
up to 110 years. The Trust’s policy is to capitalise assets valued
over $5,000, whilst assets of less than $5,000 in value are
expensed immediately.
It is deemed that, in the event of the loss of an asset,
the future economic benefits arising from the use of
the asset will be replaced unless a specific decision to
the contrary has been made. The recoverable amount
of most major assets is measured at the higher of the
depreciated replacement cost and fair value less costs
to sell. The depreciated replacement cost is the current
replacement cost of an 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.
Net gain/(loss) arising from revaluation of long service leave
liability
Net gain/(loss) from the revaluation of long service
leave liability arises due to changes in the bond
interest rates;
(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
Trust’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
penalties do not meet the definition of financial instruments as
they do not arise under contract.
transaction costs. Subsequent to initial recognition held-tomaturity financial assets are measured at amortised cost using
the effective interest method, less any impairment losses.
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 held-to-maturity category includes certain term deposits and
debt securities for which the entity concerned intends to hold to
maturity.
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 effective interest method, less any impairment.
Loans and receivables category includes cash and cash
equivalents (refer to Note 1 (l)), term deposits with maturity
greater than three months, trade receivables, loans and other
receivables, but not statutory receivables.
Available-for-sale financial assets
Available-for-sale financial instrument assets are those
designated as available-for-sale or not classified in any other
category of financial instrument asset.
Such assets are initially recognised at fair value. Subsequent
to initial recognition, they are measured at fair value
with gains and losses arising from changes in fair value,
recognised in ‘other economic flows – other comprehensive
income’ until the investments are disposed.
Movements resulting from impairment and foreign currency
changes are recognised in the net result as other economic
flows. On disposal, the cumulative gain or loss previously
recognised in ‘other economic flows – other comprehensive
income’ is transferred to other economic flows in the net
result.
Available-for-sale category includes certain equity
investments and those debt securities that are designated as
available-for-sale.
Held-to-maturity financial assets
If the Trust has the positive intent and ability to hold nominated
investments to maturity, then such financial assets may be
classified as held-to-maturity. Held-to-maturity financial assets
are recognised initially at fair value plus any directly attributable
Financial assets and liabilities at fair value through profit
and loss
Financial assets are categorised as fair value through profit
or loss at trade date if they are classified as held for trading or
designated as such upon initial recognition. Financial instrument
assets are designated at fair value through profit or loss on the
basis that the financial assets form part of a group of financial
assets that are managed by the entity concerned based on their
fair values, and have their performance evaluated in accordance
with documented risk management and investment strategies.
Financial instruments at fair value through profit or loss are
initially measured at fair value and attributable transaction costs
are expensed as incurred. Subsequently, any changes in fair
value are recognised in the net result as other economic flows.
Any dividend or interest on a financial asset is recognised in the
net result from transactions.
Financial liabilities amortised at 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 interest-bearing liability,
using the effective interest rate method.
Financial instrument liabilities measured at amortised cost
include all of the Trusts contractual payables, deposits held and
advances received, and interest-bearing arrangements other
than those designated at fair value through profit or loss.
Derivative financial instruments
Derivative financial instruments are classified as held for trading
financial assets and liabilities. They are initially recognised at
fair value on the date on which a derivative contract is entered
into. Derivatives are carried as assets when their fair value
is positive and as liabilities when their fair value is negative.
Any gains or losses arising from changes in the fair value
of derivatives after initial recognition, are recognised in the
consolidated comprehensive operating statement as another
economic flow included in the net result.
The following refers to financial instruments unless otherwise
stated.
The Trust makes limited use of this classification because any
sale or reclassification of more than an insignificant amount of
held-to-maturity investments not close to their maturity, would
result in the whole category being reclassified as availablefor-sale. The Trust would also be prevented from classifying
investment securities as held-to-maturity for the current and the
following two financial years.
21
Offsetting financial instruments
Financial instrument assets and liabilities are offset and the net
amount presented in the consolidated balance sheet when, and
only when, the Trust concerned has a legal right to offset the
amounts and intend either to settle on a net basis or to realise
the asset and settle the liability simultaneously.
Some master netting arrangements do not result in an offset of
balance sheet assets and liabilities. Where the Trust does not
have a legally enforceable right to offset recognised amounts,
because the right to offset is enforceable only on the occurrence
of future events such as default, insolvency or bankruptcy, they
are reported on a gross basis.
Reclassification of financial instruments
Subsequent to initial recognition and under rare circumstances,
non-derivative financial instruments assets that have not been
designated at fair value through profit or loss upon recognition
may be reclassified out of the fair value through profit or loss
category, if they are no longer held for the purpose of selling or
repurchasing in the near term.
Financial instrument assets that meet the definition of loans
and receivables may be reclassified out of the fair value
through profit and loss category into the loans and receivables
category, where they would have met the definition of loans
and receivables had they not been required to be classified as
fair value through profit and loss. In these cases, the financial
instrument assets may be reclassified out of the fair value
through profit and loss category, if there is the intention and
ability to hold them for the foreseeable future or until maturity.
A provision for doubtful receivables is made when there is
objective evidence that the debts will not be collected. Bad debts
are written-off when identified.
Property, Plant and Equipment
Land, buildings and plant and equipment are recognised
initially at cost and subsequently measured at fair value, less
accumulated depreciation and impairment.
Revaluations of non-current physical assets
Non-current physical assets measured at fair value are revalued
in accordance with the new FRD 103F issued by the Minister
for Finance. A full revaluation occurs at least every five years,
based on the asset’s government purpose classification, but may
occur more frequently if fair value assessments indicate material
changes in values. Independent valuers are used to conduct
these scheduled revaluations and any interim revaluations are
determined in accordance with the requirements of the FRDs.
Revaluation increases or decreases arise from differences
between an asset’s carrying value and fair value.
Revaluation increases are credited directly to equity in the
revaluation reserve, except that, to the extent that an increment
reverses a revaluation decrement in respect of that class of
asset previously recognised as an expense in the net result, the
increment is recognised as income in determining the net result.
Available-for-sale financial instrument assets that meet the
definition of loans and receivables may be reclassified into the
loans and receivables category if there is the intention and ability
to hold them for the foreseeable future or until maturity.
Revaluation decreases are recognised immediately as expenses
in the net result, except that, to the extent that a credit balance
exists in the revaluation reserve in respect of the same class of
assets, they are debited to the revaluation reserve.
(l) Assets
All assets controlled by the Trust are reported in the balance sheet.
Revaluation increases and revaluation 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.
Cash and cash equivalents, 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 which are readily convertible
to known amounts of cash and are subject to an insignificant risk
of changes in value.
22
Receivables are recognised initially at fair value and
subsequently measured at amortised cost, using the effective
interest method, less an allowance for impairment.
Receivables
Receivables consist of:
• statutory receivables, which include predominantly
amounts owing from the Victorian Government and GST
input tax credits recoverable, and
• contractual receivables, which include mainly debtors in
relation to goods and services and accrued investment
income.
Receivables that are contractual are classified as financial
instruments. Statutory receivables are not classified as financial
instruments.
Other
Prepayments
Other non-financial assets include prepayments which represent
payments in advance of receipts of goods and services or that
part of expenditure made in one accounting period covering a
term extending beyond that period.
(m) Liabilities
Payables
Payables consist of:
• contractual payables, such as accounts payable, and
unearned income including deferred income from
concession notes. Accounts payable represent liabilities for
goods and services provided to the Trust prior to the end of
the financial year that are unpaid, and arise when the Trust
becomes obliged to make future payments in respect of the
purchase of those goods and services, and
• statutory payables, such as goods and services tax and
fringe benefits tax payables.
The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at reporting
date, 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 a discount rate that
reflects the time value of money and risks specific to the provision.
Employee Benefits
(i) Wages, salaries and annual leave
Liabilities for wages and salaries, including non-monetary
benefits and annual leave are recognised in the provision
for employee benefits as ‘current liabilities’ because
the Trust does not have an unconditional right to defer
settlements of these liabilities.
Depending on the expectation of the timing of the
settlement, liabilities for wages and salaries and annual
leave are measured at:
•undiscounted value – if the Trust expects to wholly
settle within 12 months, or
•present value – if the Trust does not expect to wholly
settle within 12 months.
(ii) Long Service Leave
A liability for Long Service Leave (LSL) is recognised, and is
measured as the present value of expected future payments
to be made in respect of services provided by employees
up to the reporting date. Consideration is given to expected
future wage and salary levels, experience of employee
departures and period of service. All unconditional vested
LSL representing seven years or greater of continuous
service is disclosed in accordance with AASB 101
Presentation of Financial Statements, as a current liability.
Liability for LSL is recognised in the provision for employee
benefits.
•Current liability unconditional LSL (representing
seven or more years of continuous service for staff)
is disclosed as a current liability even where the Trust
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:
–present value – component that the Trust does not
expect to settle within 12 months, and
–nominal value – component that the Trust expects to
settle within 12 months.
•Non-current liability – conditional LSL (representing
less than seven years of continuous service for
staff) 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 non-current LSL liability is measured at present value.
Any gain or loss following revaluation of the present value of
non-current LSL liability is recognised in the ‘net result from
transactions’, except to the extent that a gain or loss arises due
to changes in bond interest rates for which it is then recognised
in the net result as another economic flow.
(iii) Termination benefits
Termination benefits are payable when employment is
terminated before the normal retirement date, or when an
employee accepts voluntary redundancy in exchange for
these benefits. The Trust 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 balance sheet date are
discounted to present value.
Employee Benefit On-Costs
Employee benefits on-costs such as Payroll Tax and workers
compensation are recognised separately from the provision for
employee benefits.
(n) Income taxes
The Australian Taxation Office has deemed the Trust to be a
“Public Authority” within the terms of Section 50-25 of the Income
Tax Assessment Act 1997 and therefore any income shall be
exempt from income tax. The Trust is not subject to the National
Tax Equivalent Regime. No provisions for income taxes payable
have been raised.
(o) Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised
in the balance sheet, but are disclosed by way of a note and, if
quantifiable, are measured at nominal value.
(p) Cash flow statement
For the purposes of the cash flow statement, cash comprises
petty cash, cash floats, deposits in bank accounts, cash at bank
and short-term deposits.
(q) Rounding of Amounts
Amounts in the financial statements have been rounded to the
nearest $1,000 unless otherwise stated.
(r) Contributed Capital
Transfers from the Department of Economic Development,
Jobs, Transport and Resources (Ecodev) that are in the nature
of contributions or distributions of capital have also been
designated as contributed capital. Other transfers that are
in the nature of contributions or distributions have also been
designated as contributions by owners.
(s) Intangible assets
Intangible assets represent identifiable non-monetary assets
without physical substance. Intangible assets are recognised
at cost. Cost incurred subsequent to initial acquisition are
capitalised when it is expected that additional future economic
benefits will flow to the Trust.
Provisions
Provisions are recognised when the Trust has a present
obligation, the future sacrifice of economic benefits is probable
and the amount of the provision can be measured reliably.
23
(t) Leased assets
All leased assets are classified as operating leases.
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.
(u)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 13 Commitments
for expenditure) at their nominal value and inclusive of the GST
payable. In addition, where it is considered appropriate and
24
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.
(v)Australian Accounting Standards issued that are not yet
effective
Certain new AASs have been published that are not mandatory for
the 30 June 2015 reporting period. The Department of Treasury
and Finance assesses the impact of these new standards and
advises the Trust of their applicability and early adoption where
applicable.
As at 30 June 2015, the following standard and interpretation had
been issued but was not mandatory for the financial year ending
30 June 2015. The Trust has not early adopted this standard.
Standard/Interpretation
Summary
Applicable for annual
reporting periods
beginning on
Impact on public sector entity
financial statements
AASB 9 Financial
Instruments
The key changes include the
simplified requirements for the
classification and measurement
of financial assets, a new hedging
accounting model and a revised
impairment loss model to recognise
impairment losses earlier, as
opposed to the current approcah
that recognises impairment only
when incurred.
Beginning
1 Jan 2018
The assessment has identified
that the financial impact of
available for sale (AFS) assets will
now be reported through other
comprehensive income (OCI) and no
longer recycled to the profit and loss.
While the prelimary assessment has
not identified any material impact
arising from AASB 9, it will continue to
be monitored and assessed
AASB 15 Revenue from
Contracts with Customers
The core principle of AASB 15
requires an entity to recognise
revenue when the entity satisfies
a performance obligation by
transferring a promised good or
service to a customer.
1 Jan 2017
The changes in revenue recognition
requirements in AASB 15 may result
in changes to the timing and amount
of revenue recorded in the financial
statements. The Standard will also
require additional disclosures
on service revenue and contract
modifications.
A potential impact will be the upfront
recognition of revenue from licenses
that cover multiple reporting periods.
Revenue that was deferred and
amortised over a period may now
need to be recognised immediately
as a transitional adjustment against
the opening returned earnings if
there are no former performance
obligations outstanding.
(Exposure Draft 263
– potential deferral to
1 Jan 2018)
AASB 2014 1 Amendments
to Australian Accounting
Standards [Part E
Financial Instruments]
Amends various AASs to reflect
the AASB's decision to defer the
mandatory application date of
AASB 9 to annual reporting periods
beginning on or after 1 January
2018 as a consequence of Chapter
6 Hedge Accounting, and to amend
reduced disclosure requirements.
1 Jan 2018
This amending standard will defer
the application period of AASB 9
to the 2018-19 reporting period
in accordance with the transition
requirements.
AASB 2014 4 Amendments
to Australian Accounting
Standards – Clarification
of Acceptable Methods
of Depreciation and
Amortisation
[AASB 116 & AASB 138]
Amends AASB 116 Property, Plant
and Equipment and AASB 138
Intangible Assets to:
• establish the principle for
the basis of depreciation and
amortisation as being the
expected pattern of consumption
of the future economic benefits
of an asset, and
• prohibit the use of revenue
based methods to calculate the
depreciation or amortisation
of an asset, tangible or
intangible, because revenue
generally reflects the pattern
of economic benefits that
are generated from operating
the business, rather than the
consumption through the use
of the asset.
1 Jan 2016
The assessment has indicated that
there is no expected impact as the
revenue-based method is not used
for depreciation and amortisation.
There are a number of non-mandatory standards at 30 June 2015 not listed which have been assessed to have minimal or no impact to
the Trust.
25
2. INCOME FROM TRANSACTIONS
(a) Sales of goods and services
Sale of goods
Rendering of services
Royalties
(b) Interest
Interest on bank deposits
(c) Grants
Other public bodies
(d) Other income
Delaware North Sinking Fund
Delaware North Capital Contribution
Tennis Australia Special Purpose Account
Cancelled event ticket income
26
2015
$’000
2014
$’000
11,622
63,635
12,617
87,874
11,869
67,466
9,170
88,505
1,456
1,456
1,708
1,708
-
8
8
455
843
537
226
2,061
443
929
540
1,912
3. EXPENSES FROM TRANSACTIONS
2015
$’000
2014
$’000
1,814
10,433
2,197
14,444
2,310
10,490
1,723
14,523
3,951
19,684
4,951
8,981
2,619
3,434
19,985
1,394
48
15,915
17,357
1,347
73
16,407
17,827
5,390
199
990
198
6,777
4,634
206
967
88
5,895
3,000
3,000
3,000
3,000
Venue hire
Catering
Other
(b) Purchase of services
Administration
Event contractors
Utilities
Other
(c) Employee expenses
Defined contribution superannuation expense
Termination benefits
Salaries, wages and Long Service Leave
(d) Other operating expenses
Maintenance
Operating lease expenses
Purchase of supplies and consumables
Other
(e) Government financial transfers
Payment to government for support of sport and recreation programs
9,807
2,580
3,346
(a) Cost of goods/sold distributed
27
4. OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT
(a) Net gain/(loss) on non-financial assets
Net gain/(loss) on disposal of Property Plant and Equipment
(including intangible assets)
2015
$’000
2014
$’000
-
5
-
5
67
67
21
21
2015
$’000
2014
$’000
(b) Net gain/(loss) arising from revaluation of long service liability
Net gain/(loss) arising from revaluation of long service liability
5. CASH AND CASH EQUIVALENTS
Cash floats held
Cash at bank
Term deposits
Bank deposits (restricted use)
Total cash and cash equivalents
104
11,020
44,800
2,186
58,110
78
11,320
47,000
1,779
60,177
6. RECEIVABLES
Current
Contractual
Other receivables (ii)
Provision for doubtful debts (iii)
Statutory
Amount owing from Victorian Government (i)
Taxes recoverable
Total current receivables
28
2015
$’000
2014
$’000
3,272
(5)
3,267
1,959
(5)
1,954
302
1,179
1,481
52
769
821
4,748
2,775
(i)The amounts receivable from the Victorian Government represent monies owing from Victorian Government departments/agencies relating to contributions
towards capital projects, tenancies and redevelopment costs.
(ii)Receivables are carried at nominal amounts due. The average credit period on settling of monies owed is 7 days. No interest is charged on other
receivables for outstanding balances.
(iii)A provision has been made for amounts where collection is considered no longer probable, determined by reference to issues relating to individual
accounts.
2015
$’000
2014
$’000
5
5
5
5
2015
$’000
2014
$’000
(a)Movement in the allowance for doubtful debts
Balance at beginning of financial year
Balance at end of financial year
(b) Ageing analysis of receivables
Please refer to Table 16.3 in Note 16 for ageing analysis of receivables.
(c) Nature and extent of risk arising from receivables
Please refer to Note 16 for the nature and extent of credit risk arising from receivables.
Land at fair value 2012 (i)
387,600
387,600
387,600
387,600
Buildings and improvements at revaluation 2012 (ii)
458,158
458,158
Buildings at fair value
290,480
113,442
Less accumulated depreciation
(44,750)
(27,582)
Written down value
703,888
544,018
93,074
93,074
145,131
86,668
(40,330)
(28,248)
197,875
151,494
Plant and equipment at revaluation 2012 (ii)
Plant and equipment at fair value
Written down value
Work in progress
37,021
209,369
37,021
209,369
Total Property, Plant and Equipment
1,411,464
1,348,311
(85,080)
(55,830)
1,326,384
1,292,481
1,606
1,532
(1,161)
(962)
445
570
1,326,829
1,293,051
Written down value
Intangible assets
Less accumulated amortisation
Written down value
Written down value property, plant, equipment and intangible assets
7. PROPERTY, PLANT, EQUIPMENT AND INTANGIBLE ASSETS
29
(i) Land at fair value 30 June 2012
Land was last independently revalued at 30 June 2012 as required by the Financial Management Act 1994 and was conducted by the Valuer-General Victoria. Due to
restrictions on the usage of the land, a notional discount of 40% known as ‘Community Service Obligation’ has been applied to the Unrestricted Land Value.
(ii) Buildings and Improvements and Plant and Equipment at revaluation 2012
Buildings, Plant & Equipment was last independently revalued at June 30 2012 as required by the Financial Management Act 1994 and was conducted by Napier
& Blakeley on behalf of the Valuer-General Victoria who have provided replacement cost and depreciated replacement cost on the inspected properties (Rod Laver
Arena and surrounding grounds, Hisense Arena, AAMI Park and Westpac Centre). Works in Progress relating to the redevelopment have not been included in the
revaluation.
RECONCILIATIONS
Classification by ‘Public safety and environment’ purpose group – Movements in carrying amounts
Land
Buildings
Plant &
Equipment
Intangibles
Work in
Progress
Total
$’000
$’000
$’000
$’000
$’000
$’000
387,600
544,018
151,494
570
209,369
1,293,051
Year ended 30 June 2015
Carrying amount at start of year
Additions
-
-
6,844
27
56,369
63,240
Transfers
-
177,038
51,633
46
(228,717)
-
Disposals
-
-
(13)
-
-
(13)
Revaluations/Impairments
-
-
-
-
-
-
Depreciation expense
-
(17,168)
(12,083)
-
-
(29,251)
Amortisation expense
387,600
703,888
197,875
(198)
445
37,021
(198)
1,326,829
Carrying amount at end of year
Land
Buildings
Plant &
Equipment
Intangibles
Work in
Progress
Total
$’000
$’000
$’000
$’000
$’000
$’000
387,600
576,502
98,395
661
143,215
1,206,373
-
-
1,920
47
112,045
114,012
Year ended 30 June 2014
Carrying amount at start of year
Additions
Transfers
-
(18,946)
64,776
61
(45,891)
-
Disposals
-
-
-
-
-
-
Revaluations/Impairments
-
-
-
-
-
-
Depreciation expense
-
(13,538)
(13,597)
-
-
(27,135)
Amortisation expense
-
-
-
(199)
-
(199)
387,600
544,018
151,494
570
209,369
1,293,051
Carrying amount at end of year (i)
(i) Carrying amount at end of year
Work in Progress at June 30 2014 contained $184.5m relating to Stage 1 of the Melbourne Park redevelopment (Margaret Court Arena redevelopment), which was
completed in 2015.
Aggregate depreciation & amortisation recognised as an expense during the year
30
Plant, equipment and vehicles at fair value
Intangibles at fair value
2015
$'000
17,168
12,083
198
29,449
2014
$'000
13,538
13,597
199
27,334
Fair value measurement hierarchy for assets
Carrying amount
as at 30 June
2015
Fair Value Measurement at end of reporting period using:
Level 1
Level 2
Level 3
$’000
$’000
$’000
$’000
Specialised land
387,600
-
-
387,600
Total of land at fair value
387,600
-
-
387,600
Land at fair value
Specialised buildings
703,888
-
-
703,888
Total of buildings at fair value
703,888
-
-
703,888
Vehicles
Plant and equipment
Total of plant, equipment and vehicles at fair value
298
-
-
298
197,577
-
-
197,577
197,875
-
-
197,875
Carrying amount
as at 30 June
2014
Fair Value Measurement at end of reporting period using:
Level 1
Level 2
Level 3
$’000
$’000
$’000
$’000
Specialised land
387,600
-
-
387,600
Total of land at fair value
387,600
-
-
387,600
Specialised buildings
544,018
-
-
544,018
Total of buildings at fair value
544,018
-
-
544,018
349
-
-
349
Land at fair value
Vehicles
Plant and equipment
Total of plant, equipment and vehicles at fair value
151,145
-
-
151,145
151,494
-
-
151,494
Specialised land and specialised buildings
The market approach is also used for specialised land, although is adjusted for the Community Service Obligation (CSO) to reflect the
specialised nature of the land being valued.
For the Trust’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 Trust’s specialised land and specialised buildings was performed by the Valuer-General Victoria. The
effective date of the valuation is 30 June 2012.
The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent
that 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.
31
Vehicles
Vehicles are valued using the depreciated replacement cost method. The Trust acquires new vehicles and at times disposes of
them before the end of their economic life. The process of acquisition, use and disposal in the market is managed within the Trust.
Depreciation rates are set to reflect the utilisation of the vehicles.
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 replacement cost method.
There were no changes in valuation techniques throughout the period to 30 June 2015.
For all assets measured at fair value, the current use is considered the highest and best use.
Reconciliation of level 3 fair value
2015
Opening balance
Purchases (sales)
Transfers in (out) of
Level 3
Specialised land
$'000
387,600
-
Specialised
buildings
$'000
544,018
177,038
-
Vehicles
$'000
349
88
-
Plant and
equipment
$'000
151,145
58,376
-
-
(17,168)
(17,168)
(139)
(139)
(11,944)
(11,944)
387,600
-
703,888
-
298
-
197,577
-
Specialised land
$'000
387,600
-
Specialised
buildings
$'000
576,502
(18,946)
-
Vehicles
$'000
329
155
-
Plant and
equipment
$'000
98,066
66,542
-
-
(13,538)
(13,538)
(135)
(135)
(13,462)
(13,462)
387,600
-
544,018
-
349
-
151,145
-
Gains or losses recognised in net result
Depreciation
Impairment loss
Subtotal
Gains or losses recognised in other economic
flows - other comprehensive income
Revaluation
Subtotal
Closing balance
Unrealised gains/(losses) on non-financial assets
2014
Opening balance
Purchases (sales)
Transfers in (out) of
Level 3
Gains or losses recognised in net result
32
Depreciation
Impairment loss
Subtotal
Gains or losses recognised in other economic
flows - other comprehensive income
Revaluation
Subtotal
Closing balance
Unrealised gains/(losses) on non-financial assets
Description of significant unobservable inputs to Level 3 valuations
Valuation
Technique
Significant unobservable
inputs
Range (weighted
average) at 30
June 2015
Range (weighted
average) at 30
June 2014
Land
Market value
adjusted for
Community
Service
Obligation
(CSO)
- Land price per square metre.
- CSO obligation.
$1,600 /m²
(40%)
$1,600 /m²
(40%)
A significant increase
or decrease in the CSO
adjustment would result
in a significantly lower
(higher) fair value.
Rod Laver
Arena /
Melbourne
Park
Depreciated
replacement
cost
- Useful lives of structure / shell
/ building fabric, site engineering
services and central plant, fit-outs
and trunk reticulated building
systems.
50 - 70 years (60
years)
50 - 70 years
(60 years)
or decrease in the
estimated useful life of
the asset would result in
a significantly higher or
lower valuation.
- Replacement cost per m² and
per unit of plant. This reflects the
cost of replacing Rod Laver Arena/
Melbourne Park to its current
condition taking into account its
age (27 years).
$2,300 - $2,500 /
m² ($2,430)
$2,300 - $2,500 /
m² ($2,430)
or decrease in direct
cost per square metre
in a significantly higher
or lower fair value.
systems.
50 - 70 years (60
years)
50 - 70 years (60
years)
or decrease in the
lower valuation.
per unit of plant. This reflects the
cost of replacing Hisense Arena
to its current condition taking into
account its age (15 years).
$3,800 - $4,200 /
m² ($4,000)
$3,800 - $4,200 /
m² ($4,000)
systems.
50 - 70 years (60
years)
not applicable
or decrease in the
lower valuation.
- Replacement cost per m² and per
unit of plant. This reflects the cost
of replacing Margaret Court Arena
account its age (1 year).
$4,800 - $5,300 /
m² ($5,100)
not applicable
systems.
60 - 80 years (70
years)
60 - 80 years
(70 years)
or decrease in the
lower valuation.
per unit of plant. This reflects
the cost of replacing AAMI Park to
its current condition taking into
$4,800 - $5,300 /
m² ($5,100)
$4,800 - $5,300 /
m² ($5,100)
Hisense
Arena
Margaret
Court Arena
AAMI Park
Depreciated
replacement
cost
Depreciated
replacement
cost
Depreciated
replacement
cost
Sensitivity of fair
value measurement
to changes
in significant
unobservable inputs
33
Westpac
Centre
Vehicles
Plant and
equipment
34
Depreciated
replacement
cost
Depreciated
replacement
cost
Depreciated
replacement
cost
systems.
90 - 110 years
(100 years)
90 - 110 years
(100 years)
or decrease in the
lower valuation.
- Replacement cost per m² and per
unit of plant. This reflects the cost
of replacing the Westpac Centre
$2,000 - $2,500 /
m² ($2,300)
$2,000 - $2,500 /
m² ($2,300)
- Cost per unit.
$9,500-$10,500
per unit
($10,000 per unit)
$12,500-$13,500
per unit
($12,900 per unit)
or decrease in cost per
unit would result in a
significantly higher or
lower valuation.
- Useful life of vehicles.
4 - 6 years (5
years)
4 - 6 years (5
years)
- Cost per unit.
$4,000-$6,000
per unit
($5,000 per unit)
$4,000-$6,000
per unit
($5,000 per unit)
or decrease in cost per
unit would result in a
significantly higher or
lower valuation.
- Useful life of plant and
equipment.
5 - 30 years (15
years)
5 - 30 years (15
years)
8. OTHER ASSETS
Current
Prepayments
2015
$’000
2014
$’000
255
255
301
301
2015
$’000
2014
$’000
150
1,803
15,051
17,004
6
1,189
11,210
12,405
64
66
17,068
12,471
9. PAYABLES
Current
Contractual
Trade creditors (i)
Other payables
Accrued expenses
Statutory
Taxes payable
Total current payables
(i) The average credit period is 30 days. No interest is charged on other payables for the first 30 days from the date of invoice. Payables are generally paid within
the payment period thereby avoiding any interest charges that may be incurred on late payments.
(a) Maturity analysis of payables
Please refer to Table 16.5 in Note 16 for the ageing analysis of payables.
(b) Nature and extent of risk arising from payables
Please refer to Note 16 for the nature and extent of risks arising from payables.
35
10. PROVISIONS
2015
$’000
2014
$’000
292
307
279
294
794
855
2,248
773
725
2,071
182
194
376
175
170
345
2,624
2,416
385
426
61
67
446
493
3,070
2,909
Current provisions
Employee benefits
Annual Leave
Unconditional and expected to be settled within 12 months (i)
Unconditional and expected to be settled after 12 months (ii)
Long Service Leave
Provisions for on-costs
Total current provisions
Non-current provisions
Employee benefits
Long Service Leave (ii)
On-costs
Total non-current provisions
Total provisions
(i) The amounts disclosed are nominal amounts.
(ii) The amounts disclosed are discounted to present values.
36
(a) Employee benefits and on-costs
2015
$’000
2014
$’000
599
1,649
573
1,498
385
426
2,633
2,497
376
61
437
345
67
412
3,070
2,909
Current employee benefits
Annual Leave
Long Service Leave
Non-current employee benefits
Long Service Leave
Total employee benefits
Current on-costs
Non-current on-costs
Total on-costs
Total employee benefits and on-costs
(b) Movement in provisions
On-costs
2015
$'000
412
184
(143)
(27)
11
Closing Balance
437
Current
Non-current
376
61
Closing Balance
437
11. OTHER LIABILITIES
Income received in advance
Ticket sales for future events held in trust
2015
$’000
2014
$’000
11,606
46,589
58,195
11,860
42,972
54,832
Opening Balance
Additional provisions recognised
Reductions arising from payments/other sacrifices of future economic benefits
Reductions resulting from re-measurement or settlement without cost
Unwind of discount and effect of changes in the discount rate
37
12. LEASES
Operating lease payables
Leasing arrangements
Operating lease payables relate to plant and office equipment with lease terms between one and two years.
Non-cancellable operating leases
Total lease expenditure contracted for at balance date but not provided for in the accounts:
Payable no later than one year
Later than one year and not later than five years
2015
$’000
2014
$’000
84
4
88
165
88
253
Operating Lease Receivables
Leasing arrangements
Operating lease receivables relate to 11 tenancies (12 in 2013-14) within the Trust’s precinct with lease terms between one and 21
years.
Receivable no later than one year
Later than five years
2015
$’000
2014
$’000
4,007
16,315
35,773
56,095
4,099
13,881
39,828
57,808
13. COMMITMENTS FOR EXPENDITURE
The following commitments have not been recognised as liabilities in the financial statements. All amounts shown in the commitments
note are nominal amounts inclusive of GST.
(a)Capital expenditure commitments
The Trust has $25.6m in commitments for capital works relating to Stage 2 of the Melbourne Park redevelopment project at the date of this
report (2014: $34.9m). All other capital commitments relating to the Melbourne Park redevelopment project sit with Major Project Victoria,
which is the project manager.
38
2015
$’000
2014
$’000
25,647
25,647
32,743
4,173
36,916
(b)Operating expenditure commitments
The Trust has $0.9m in commitments for operating expenditure relating to the supply of service agreements for mechanical services
and lifts at the date of this report (2014: $1.5m).
2015
$’000
2014
$’000
657
237
894
652
894
1,546
(c) Lease commitments
Non-cancellable operating lease commitments are disclosed in Note 12 of the financial statements.
14. CONTINGENT LIABILITIES
The Trust has no contingent liabilities at the date of this report.
15.CONTINGENT ASSETS
There is a contingent asset in relation to Collingwood Football Club’s ground lease at Olympic Park. In December 2013, the Collingwood
Football Club was granted permission by the Trust for the construction of the Olympic Park Community Facility on the Trust’s land.
Ownership of improvements to the land and any buildings will transfer to the Trust upon expiration of the current lease on 31 May 2033.
16. FINANCIAL INSTRUMENTS
(a)Significant accounting policies
The Trust’s principal financial instruments comprise:
•
cash assets
•
term deposits
•
receivables (excluding statutory receivables), and
•
payables (excluding statutory payables).
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement,
and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity
instrument are disclosed in Note 1 to the financial statements.
The main purpose in holding financial instruments is to prudentially manage the Trust’s financial risks in the government policy
parameters.
The Trust’s main financial risks include credit risk, liquidity risk and interest rate risk. The Trust manages these risks in accordance
with its Treasury Policy.
Primary responsibility for the identification and management of financial risks rests with the Finance, Audit and Risk Committee of the
Trust.
39
(b)Table 16.1: Categorisation of financial instruments
Note
Contractual financial assets
Contractual
financial
assets - loans
and receivables
$'000
Contractual
financial
liablilities at
amortised cost
$'000
$'000
13,310
46,589
-
13,310
46,589
59,899
-
59,899
6
3,272
-
3,272
5
44,800
-
44,800
107,971
-
107,971
-
17,004
46,589
17,004
46,589
-
63,593
63,593
5
Total cash
Receivables: (i)
Other receivables
Total
Investments and other contractual financial assets:
Term deposits
Total contractual financial assets
Contractual financial liablities
Payables: (i)
Supplies and services
Other payables
Total contractual financial liabilities
9
11
(i)The amount of receivables and payables disclosed exclude statutory amounts (e.g.: amounts owing from Victorian
Government and GST input tax credit recoverable and taxes payable)
40
(c) Credit risk exposure
Credit risk arises when there is the possibility of the Trust’s debtors defaulting on their contractual obligations resulting in financial loss
to the Trust. The Trust measures credit risk on a fair value basis and monitors risk on a regular basis.
The Trust does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar
characteristics. The Trust has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral
or credit enhancements where appropriate, as a means of mitigating the risk of financial loss from defaults. Credit risk in trade
receivables is managed by payment terms of seven days and sound debt collection policies and procedures.
In addition, the Trust does not engage in any hedging for its financial assets. The credit risk on liquid funds is limited because the
counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Provision of impairment for financial assets is calculated based on past experience, and current and expected changes in client credit ratings.
The carrying amount of financial assets recorded in the Financial Report, net of any allowances for losses, represents the
Trust’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
Financial assets that are either past due or impaired
Currently the Trust does not hold any collateral as security nor credit enhancements relating to any of its financial assets.
As at the reporting date, there is no event to indicate that any of the financial assets are impaired.
There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired and they
are stated at the carrying amounts as indicated. The following table discloses the ageing only of financial assets that are past due but
not impaired:
Table 16.2: Credit quality of contractual financial assets that are neither past due nor impaired
2015
Receivables (i)
Investments and other financial assets
Government agencies
(triple-A credit rating)
8,229
445
42,800
51,474
Other (min triple-B
credit rating)
5,081
46,144
3,272
2,000
56,497
Total
13,310
46,589
3,272
44,800
107,971
2014
Receivables (i)
Investments and other financial assets
9,048
29,599
45,000
83,647
4,129
13,373
1,959
2,000
21,461
13,177
42,972
1,959
47,000
105,108
(i)The amount of receivables and payables disclosed exclude statutory amounts (eg, amounts owing from Victorian
Government and GST input tax credit recoverable and taxes payable).
41
Table 16.3: Ageing analysis of contractual financial assets
Carrying
amount
Not past
due & not
impaired
Past due but not impaired
Less
than 1
month
1-3
months
3
months
- 1 year
1-5
years
30 June 2015
$'000
$'000
$'000
$'000
$'000
$'000
Receivables (i)
3,272
2,906
349
17
-
-
3,272
2,906
349
17
-
-
30 June 2014
$'000
$'000
$'000
$'000
$'000
$'000
Receivables (i)
1,959
1,773
185
1
-
-
1,959
1,773
185
1
-
-
(i)Ageing analysis of financial assets excludes statutory financial assets (eg, amounts owing from Victorian Government and
GST input tax credits recoverable).
(d) Liquidity risk
Liquidity risk arises when the Trust is unable to meet its financial obligations as they fall due. The Trust operates under the
government's fair payments policy of settling financial obligations within 30 days and in the event of a dispute, makes payments
within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities
planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets.
The Trust’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.
Cash for unexpected events could be sourced from early liquidation of cash held on deposit if required.
Maximum exposure to liquidity risk is the carrying amounts of financial liabilities.
42
Table 16.4: Interest rate exposure of financial assets
Weighted
average
interest
rate
Carrying
amount
Interest rate exposure
Fixed
interest
rate
30 June 2015
%
Variable
interest
rate
Noninterest
bearing
$’000
$’000
$’000
$’000
104
-
-
104
1.92%
11,020
-
11,020
-
Term deposits
2.19%
44,800
-
44,800
-
1.93%
2,186
-
2,186
-
Cash at bank (ticket sales for future events - not available for use)
2.90%
46,589
-
46,589
-
3,272
-
-
3,272
107,971
-
104,595
3,376
$'000
$'000
$'000
$'000
78
-
-
78
Cash and cash equivalents:
Cash floats held
Cash at bank
Receivables (i)
30 June 2014
%
Cash and cash equivalents:
Cash floats held
Cash at bank
2.16%
11,320
-
11,320
-
Term deposits
2.73%
47,000
-
47,000
-
2.44%
1,779
-
1,779
-
Cash at bank (ticket sales for future events - not available for use)
2.90%
42,972
-
42,972
-
Receivables (i)
1,959
-
-
1,959
105,108
-
103,071
2,037
(i)Ageing analysis of financial assets excludes statutory financial assets (eg, amounts owing from Victorian Government and GST
input tax credits recoverable).
43
Table 16.5: Interest rate exposure and maturity analysis of financial liabilities
Carrying
amount
Interest rate
exposure
Variable
interest
rate
30 June 2015
Payables (ii)
Other
30 June 2014
Payables (ii)
Other
(i)
Nominal
amount
Maturity dates (i)
Less
than 1
month
Noninterest
bearing
1-3
months
3
months
- 1 year
1-5
years
$’000
$'000
17,004
46,589
63,593
$’000
$'000
-
$’000
$'000
17,004
46,589
63,593
$’000
$'000
17,004
46,589
63,593
$’000
$'000
17,004
3,694
20,698
$’000
$'000
4,590
4,590
$’000
$'000
38,305
38,305
$’000
$'000
-
$'000
12,405
42,972
55,377
$'000
-
$'000
12,405
42,972
55,377
$'000
12,405
42,972
55,377
$'000
12,405
8,876
21,281
$'000
13,379
13,379
$'000
20,717
20,717
$'000
-
The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities.
(ii)The carrying amounts disclosed exclude statutory amounts (eg, amounts payable to Victorian Government and taxes
payable).
(e) Market risk
The Trust’s exposures to market risk, including interest rate risk and foreign currency are insignificant. Objectives, policies
and processes used to manage each of these risks are disclosed in the paragraphs below.
Foreign currency risk
The Trust is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from
overseas, due to the limited amount of purchases denominated in foreign currencies and the short timeframe between commitment
and settlement.
The Trust’s exposure to foreign currency risk is set out in Table 16.6.
Interest rate risk
The Trust is exposed to insignificant interest rate risk as it does not have any loans. Additionally, monies on term deposits are with
financial institutions with high credit ratings.
The Trust’s exposure to interest rate risk is set out in Table 16.6.
44
Table 16.6: Market risk
Foreign exchange
risk
Interest rate risk
30 June 2015
Financial Assets:
Cash held on behalf of
customers
Investments and other
contractual financial assets
Carrying
amount
$'000
Profit
Equity
+1%
(100 basis points)
Profit
Equity
Profit
Equity
$'000
$'000
$'000
$'000
$'000
$'000
13,310
46,589
-
-
(133)
(466)
(133)
(466)
133
466
133
466
44,800
-
-
(448)
(448)
448
448
-
-
(1,047)
(1,047)
1,047
1,047
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Total Impact
30 June 2014
Contractual financial assets:
Cash held on behalf of
customers
13,177
-
-
(132)
(132)
132
132
42,972
-
-
(430)
(430)
430
430
Investments and other
contractual financial assets
47,000
-
-
(470)
(470)
470
470
-
-
(1,031)
(1,031)
1,031
1,031
Total Impact
-1%
(100 basis points)
-10% / 10%
45
(f) Fair value
The Trust considers that the carrying amount of financial assets and financial liabilities recorded in the financial report 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.
17. CASH FLOW INFORMATION
(a)Reconciliation of cash and cash equivalents
Total cash and cash equivalents disclosed in note 5
Balance as per cash flow statement
2015
$’000
2014
$’000
58,110
58,110
60,177
60,177
2015
$’000
2014
$’000
745
3,596
29,451
27,334
-
(5)
(1,972)
(617)
46
(101)
5,234
680
(b)Reconciliation of net result for the period to net cash flows from operating activities
Net Result for the financial year
Add/(less) non-cash movements:
Depreciation and amortisation of non-current assets
Movements in assets and liabilities:
(Increase)/decrease in current receivables
(Increase)/decrease in other current assets
(Decrease)/increase in current payables
208
120
(Decrease)/increase in other current liabilities
(Decrease)/increase in current provisions
(256)
(1,765)
(Decrease)/increase in non-current provisions
(47)
99
33,409
29,340
Net cash flows from/(used in) operating activities
46
18. 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 for the Trust are as follows:
Premier
The Honourable Denis Napthine, Premier of Victoria (to 03/12/14)
The Honourable Daniel Andrews, Premier of Victoria (from 04/12/14)
Minister
The Honourable Damian Drum, Minister for Sport and Recreation (to 03/12/14)
The Honourable John Eren, Minister for Sport, Minister for Tourism and Major Events and Minister for Veterans Affairs (from 04/12/14)
Trust
Mr Russell Caplan (Chairman)
Ms Deborah Beale (to 12/11/14)
Mr Stephen Healy
Ms Sharelle McMahon
Ms Diana Nicholson
Mr Kenneth Roche, AO
Mr Raymond Smith
Ms Mikaela Stafrace (from 22/07/14)
Mr David Stobart
Mr Scott Tanner
Trust Secretary and Chief Executive Officer
Mr Brian Morris
Remuneration
Total remuneration (including incentive payments) received or receivable by the Accountable Officer in connection with the management
of the Trust during the reporting period was in the range of $450,000 - $459,999 ($420,000 - $429,999 in 2013-14).
Trustees did not receive any remuneration from the Trust during the financial year. (2013-14: $0).
Related party transactions
Commercial dealings were undertaken during the reporting period with Tennis Australia and Tennis Victoria, both of which have
representatives holding positions as Trustees on the Melbourne and Olympic Parks Trust.
During 2014-15, the Trust invoiced Tennis Australia $30,077,095 ($28,432,448 in 2013-14) and as at 30 June 2015, Tennis Australia owed
the Trust $640,400 ($560,764 at 30 June 2014). Mr Stephen Healy and Mr Scott Tanner hold positions on the Melbourne and Olympic
Parks Trust and also hold positions at Tennis Australia (President and Director respectively). Tennis Australia is the promoter of the
Australian Open event, runs a court hire business on the Trust’s premises and rents office space from the Trust.
During 2014-15, the Trust invoiced Tennis Victoria $199,062 ($132,343 in 2013-14) and at 30 June 2015, Tennis Victoria owed the Trust
$11,731 ($0 at 30 June 2014). Mr David Stobart holds a position on the Melbourne and Olympic Parks Trust and also holds the position of
President of Tennis Victoria. Tennis Victoria rents office space on the Trust’s premises and purchase related services from the Trust.
There are no other receivable amounts or loans outstanding in relation to related parties, as at 30 June 2015.
47
19. R
EMUNERATION OF EXECUTIVES AND PAYMENTS TO OTHER PERSONNEL
(a) Remuneration of executives
The number of Executive Officers and employees with management responsibilities, other than the Accountable Officer, and their total
remuneration during the reporting period are shown in the first two columns in the tables below in their relevant income bands. The base
remuneration of is shown in the third column and a comparative to the prior year in the fourth column. Base remuneration is exclusive of bonus
payments, long service leave payments, redundancy payments and retirement benefits.
Income band
< $99,999
$110,000 - $119,999
$120,000 - $129,999
$140,000 - $149,999
$150,000 - $159,999
$160,000 - $169,999
$220,000 - $229,999
$230,000 - $239,999
$240,000 - $249,999
$250,000 - $259,999
$240,000 - $249,999
$250,000 - $259,999
Total numbers of executives
Total Remuneration
2014
No.
1
3
2
1
1
1
8
2015
No.
2
3
2
1
1
1
1
10
2014
No.
1
3
2
1
1
1
8
10
8
10
8
$’000
$’000
$’000
$’000
1,742
1,345
1,736
1,279
Total annualised employee equivalents (i)
Total remuneration
Base Remuneration
2015
No.
1
1
3
2
1
1
1
1
10
Note: (i) Annualised employee equivalent is based on paid working hour of 38 ordinary hours per week over the 52 weeks for a
reporting period.
(b) Remuneration of employees with management responsibilities
Income band
< $99,999
$100,000 - $109,999
$110,000 - $119,999
$120,000 - $129,999
$130,000 - $139,999
$140,000 - $149,999
$150,000 - $159,999
Total numbers
48
Total remuneration
Total Remuneration
Base Remuneration
2015
No.
4
4
1
3
1
13
2014
No.
4
1
3
3
1
12
2015
No.
4
4
1
3
1
13
2014
No.
1
4
2
2
3
12
$’000
$’000
$’000
$’000
1,559
1,480
1,555
1,408
(c) Payments to other personnel (i.e. contractors with significant management responsibilities)
The following disclosures are made in relation to other personnel of Melbourne and Olympic Parks Trust, i.e. contractors charged with
significant management responsibilities.
Payments have been made to a contractor with significant management responsibilities, which are disclosed in the $10,000 expense
band. This contractor is responsible for planning, directing or controlling, directly or indirectly, the Trust’s activities.
The change in the total expenses from 2014 to 2015 was driven by a contractor with significant management responsibilities being
formally employed by the Trust during the 2015 reporting period.
Expense band
Total Expenses (exclusive of GST)
2015
2014
No.
No.
$100,000 - $109,999
-
1
$170,000 - $179,999
1
-
$240,000 - $249,999
-
1
Total numbers
1
2
$’000
$’000
172
345
Total expenses (exclusive of GST)
20. REMUNERATION OF AUDITORS
Audit fees paid or payable to the Victorian Auditor-General’s Office for the audit of the Trust’s financial report and KPMG for the Trust’s
internal audit program:
2015
2014
$’000
$’000
56
81
137
54
105
159
Audit or review of the financial statements
Internal audit services
49
21. EMPLOYEE SUPERANNUATION
Superannuation contributions for the reporting period are included as part of employee benefits and on-costs in the comprehensive
operating statement of the Trust.
The name and details of the major employee superannuation funds and contributions (above $10,000) made by the Trust during the
reporting period are as follows:
AustralianSuper
HOSTPLUS
NAVIGATOR Super Solutions
CARE Super
VicSuper Pty Ltd
RETAIL Employees Superannuation Pty Ltd
Colonial First State First Choice Personal Super
First State Super
OnePath MasterFund
AMP Flexible Lifetime Super (901245955)
BT Super for Life
C+BUS
Optimum Corporate Super
Others
Emergency Services Superannuation Scheme
Others
TOTAL
At the reporting date, superannuation contributions outstanding were $0 (2014 $0).
22. SUBSEQUENT EVENTS
No material or significant events occurred after the reporting date.
50
2015
$’000
2014
$’000
860
105
78
35
34
34
24
22
20
16
14
14
13
126
11
125
1,394
847
89
104
22
36
29
16
22
6
12
5
15
2
144
4
139
1,347
Cash and cash equivalents is petty cash, cash floats, deposits in
bank accounts, bank overdrafts and short-term deposits
(up to 90 days).
Comprehensive result
Total comprehensive result is the change in equity for the period
other than changes arising from transactions with owners. It is the
aggregate of net result and other non-owner changes in equity.
Commitments
Commitments include those operating, capital and other
outsourcing commitments arising from non cancellable
contractual or statutory sources.
Delaware North Sinking Fund
Refers to an account managed jointly by the Trust and the Trust’s
caterer (Delaware North) and is used for the replacement or
improvement of catering equipment or infrastructure.
Employee benefits expense
Employee benefits expenses include all costs related to
employment including wages and salaries, leave entitlements,
redundancy payments, defined benefits superannuation plans,
and defined contribution superannuation plans.
Financial asset
A financial asset is any asset that is:
(a) cash and cash equivalents,
(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 or statutory 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
Depending on the context of the sentence where the term ‘financial
statements’ is used, it may include only the main financial
statements (i.e. Comprehensive Operating Statement, balance
sheet, cash flow statements, and statement of changes in equity);
or it may also be used to replace the old term ‘financial report’
under the revised AASB 101 (September 2007), which means it
may include the main financial statements and the notes.
Grants
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.
Intangible assets
Intangible assets represent identifiable non monetary assets
without physical substance.
Interest expense
Costs incurred in connection with the borrowing of funds interest
expenses include 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 interest received on bank term
deposits, interest from investments and other interest received.
23. GLOSSARY OF TERMS
51
Net acquisition of non-financial assets (from transactions)
Purchases (and other acquisitions) of non financial assets less
sales (or disposals) of non financial assets less depreciation
plus changes in inventories and other movements in non
financial assets. It includes only those increases or decreases
in non financial assets resulting from transactions and therefore
excludes write-offs, impairment write-downs and revaluations.
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 non owner changes
in equity.
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.
Non-financial assets
Non financial assets are all assets that are not ‘financial assets’.
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
•gains and losses arising from revaluation of long service
liability.
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:
• changes in physical asset revaluation surplus.
Payables
Includes short and long term trade debt and accounts payable,
grants, taxes and interest payable.
52
Receivables
Includes amounts owing from government through appropriation
receivable, short and long term trade credit and accounts
receivable, accrued investment income, grants, taxes and
interest receivable.
Sales of goods and services
Refers to revenue from direct provision of goods and services
and includes fees and charges for services rendered and sales of
goods and services.
Tennis Australia Special Purpose Account
Refers to a separate account established by the Melbourne and
Olympic Parks Trust for tennis-related capital improvements to
Melbourne Park.
Transactions
Transactions are those economic flows that interact between two
entities by mutual agreement.
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 notion used in the tables is as follows:
- zero, or rounded to zero
(xxx) negative numbers
20xxyear
20xx-xx year period
CERTIFICATION
In accordance with a resolution of the members of the Melbourne
and Olympic Parks Trust and in our opinion:
(a) the accompanying financial report of the Trust, comprising
operating statement, balance sheet, cash flow statement and
statement of changes in equity read in conjunction with the
notes thereto present fairly the financial operations of the
Trust for the year ended 30 June 2015 and the State of Affairs
of the Trust on that date;
(b) these accounts have been prepared in accordance with the
Financial Management Act 1994, Australian Accounting
Standards and other mandatory professional reporting
requirements; and
(c) at the date of this statement we are not aware of any
circumstances which would render any particulars included
in the statement to be misleading or inaccurate.
Russell Caplan
Member of Responsible Body
Chairman
Brian Morris
Accountable Officer
Chief Executive Officer
Melbourne 7 September 2015
Travis Mardling
Chief Financial Officer
53
INDEPENDENT AUDIT REPORT
54
INDEPENDENT AUDIT REPORT
55
ADMINISTRATIVE REPORTING REQUIREMENTS
Competitive Neutrality Policy compliance
Disability Act (2006)
The Trust regularly reviews whether its activities are subject to
the requirements of the National Competition Policy, including
compliance with the requirements of the policy statement
‘Competitive Neutrality Policy Victoria’, and takes necessary
action to implement competitive neutrality measures where
required.
M&OP is committed to providing equitable, dignified access to
goods and services to premises used by the public. A key focus
of the $700 million redevelopment of Melbourne Park has been
the inclusion of universal design principles. This proactive work
ensures the design of new buildings or upgraded infrastructure
are centred around improved access for all Victorians.
Statement of compliance with the
Building Act 1993.
Throughout the course of this financial year, M&OP continued
to implement its Diversity and Inclusion Plan, setting short,
medium and long term goals to improve the guest experience for
people with a disability. A copy of the plan is available at
www.mopt.com.au
The Trust complies with the relevant guidelines, pursuant to
Section 220 of the Building Act 1993.
Occupational Health and Safety (OH&S)
Implementation of the Victorian Industry
Participation Policy
In October 2003, the Victorian Parliament passed the Victorian
Industry Participation Policy Act 2003 which required public
bodies and departments to report on the implementation of
the Victorian Industry Participation Policy (VIPP). The Trust is
required to apply the VIPP where Trust funding exceeds $3 million
in metropolitan Melbourne and $1 million in regional Victoria.
There were no projects undertaken by the Trust in 2014/15 to
which the VIPP applied.
Financial and other information retained
by the accountable officer
Relevant information detailed in Financial Reporting Direction
(FRD) 22D ‘Standard Disclosures in the Report of Operations’
under the Financial Management Act 1994 Section 3 is retained
by the Trust’s Accountable Officer and is available on request,
subject to the Freedom of Information Act 1982.
Protected Disclosure Act 2012
56
Melbourne & Olympic Parks is committed to the aims and
objectives of the Protected Disclosure Act. It recognises the value
of transparency and accountability in its administrative and
management practices, and supports the making of disclosures
that reveal improper conduct. It does not tolerate improper conduct
by the organisation, its employees, officers or members, nor the
taking of detrimental action in reprisal against those who come
forward to disclose such conduct. According to the Independent
Broad-based Anti-corruption Commission (“IBAC”), M&OP is not
permitted to receive disclosures made under the Act. Therefore,
those wishing to make a disclosure about M&OP, its officers,
members or employees, will need to make that disclosure directly
to the IBAC. If M&OP believes a disclosure may be a protected
disclosure made in accordance with the Act, it will ask for that
disclosure to be made to the IBAC. The IBAC will deal with the
disclosure. Procedures in relation to the Protected Disclosure Act
2012 are available on the M&OP website.
M&OP is committed to providing and maintaining an environment
that is safe for all who visit and work within the precinct or who
may be affected by its business operations. M&OP aspires to
eliminate risks to health and safety, and where elimination is not
reasonably achievable, to reduce risks to health and safety so
far as is reasonably practicable. As part of delivering world class
customer experience, M&OP is commited to the safety of the
multitude of guests who step into the precinct grounds each year.
M&OP maintained AS4801 accreditation for Safety Management
Systems (AS4801). This achievement is underpinned by M&OP’s
leadership-driven safety culture, which encourages collaboration,
consultation and ownership throughout all of the organisation
levels. M&OP’s commitment to continuous improvement,
is reflected in its updated Health and Safety Policy, which
highlights the accountabilities shared across the workforce. The
importance of Toolbox meetings continues to be reinforced with
177 meetings held across the precinct during the financial year.
In addition, 282 workplace inspections were carried out, which
ensures a proactive approach to safety is adopted.
Key achievements for the year included a 38 per cent
improvement in the number of injuries sustained across the
precinct compared to 13/14 results, which includes a 36 per
cent reduction in guest injuries. An organisation-wide training
program targeted at incident, hazard and injury management
was completed. A strong consultative approach to safety is
reflected in Toolbox meetings, workplace inspections, audits,
training, hazard reporting and incident investigation. An engaged
OHS Committee have also helped produce positive OH&S
outcomes this year.
A full copy of the Trust’s OHS policy is available on M&OP’s
website – www.mopt.com.au
Statement of Workforce Data
Melbourne and Olympic Parks Trust employed 106 full time and
part time staff as at 30 June 2015 (2014:100). The number
of Full Time Equivalent (FTE) staff at 30 June 2015 was 100
(2014:96). The number of fixed term and casual employees
at 30 June 2015 was 706 (2014:904) and a large number of
contractors provided by our key partners also contribute to
M&OP’s workforce (TechGuard Security, Capricorn Stages and
Rigging, Delaware North, O’Brien Catering Group Australia and
Ticketek).
The breakdown of staff is as follows:
Fixed Term
& Casual
Employees
Employees
(Headcount)
Full time
(Headcount)
Part time
(Headcount)
FTE
June 2015
106
88
18
100
706
June 2014
100
84
16
96
904
June 2015
June 2014
Employees
(Headcount)
FTE
Fixed Term
& Casual
Employees
Employee
(Headcount)
FTE
Fixed Term
& Casual
Employees
1
6
99
64
42
1
6
93
63
37
1
6
699
360
346
1
5
94
56
44
1
5
90
55
41
1
4
899
457
447
Accountable Officer
Executive Officers
Administration Staff
Males
Females
Freedom of information
The Freedom of Information Act 1982 allows the public a right of access to documents held by Melbourne and Olympic Parks Trust. For
the 12 months ending June 2015, the Trust received one FOI request.
The Chief Financial Officer is the contact officer in relation to all Freedom of Information requests. Access to documents may be
obtained through written request to the Chief Financial Officer, addressed as follows:
Freedom of Information
GPO Box 4611, Melbourne VIC 3001
Requests can also be lodged via email to [email protected].
All requests must be accompanied by the application fee ($27.20 from 1 July 2015 but may be waived in certain circumstances)
and must provide such information concerning the document as is reasonably necessary to enable M&OP to identify the document.
Charges may also apply once documents have been processed and a decision on access is made; for example photocopying and
search and retrieval charges.
57
Consultants
Details of consultancies over $10,000
Consultant
Purpose of consultancy
Start date
End date
Iouriv Water
Solutions
Advice in relation to AAMI Park rainwater
harvesting
April 2015
June 2015
Total expenditure
2014/15
(excluding GST)
$25,750
Future
commitments
Nil
Details of consultancies less than $10,000
Number: 3
Total Amount: $11,000
Gosch’s Paddock
Gosch’s Paddock remained open at all times throughout the 2014/15 year.
Risk Attestation Statement
I, Chair of the Trust, certify that the Melbourne and Olympic Parks Trust has risk management processes in place consistent with the
Australian/New Zealand Risk Management Standard (AS/NZS ISO 31000:2009) and an internal control system is in place that enables
the executive to understand, manage and satisfactorily control risk exposures. The Trust verifies this assurance and that the risk
profile of the Melbourne and Olympic Parks Trust has been critically reviewed within the last 12 months.
Melbourne and Olympic Parks Trust has complied with the Ministerial Standing Direction 4.5.5 – Risk Management Framework and Processes.
Russell Caplan
Chairman
58
DISCLOSURE INDEX
The Annual Report of Melbourne and Olympic Parks Trust is prepared in accordance with all Victorian Legislation.
This index has been prepared to facilitate identification of compliance with statutory disclosure requirements.
Ministerial Directions
Charter and Purpose
FRD 22D
FRD 22D
FRD 22D
Manner of establishment and the relevant Minister
Objectives, functions, powers and duties
Nature and range of services provided
4
4
4
Management and structure
FRD 22D
Organisational Structure
5
Financial and other information
FRD 10
FRD 15B
FRD 22D
FRD 22D
FRD 22D
FRD 22D
FRD 22D
FRD 22D
FRD 22D
SD 4.5.5
FRD 22D
FRD 22D
FRD 22D
FRD 22D
FRD 22D
FRD 25A
FRD 29
Disclosure index
Executive officer disclosures
Application and operation of Freedom of Information Act 1982
Application and operation of the Protected Disclosure Act 2012
Compliance with building and maintenance provision of Building Act 1993
Details of consultancies over $10,000
Details of consultancies under $10,000
Major changes or factors affecting performance
Occupational Health and Safety
Risk Management Compliance
Statement of availability of other information
Statement on Competitive Neutrality Policy
Summary of financial results for the year
Summary of major activities
Subsequent events
Victorian Industry Participation Policy disclosures
Statement on Workforce Data
59
48
57
56
56
58
58
12
56
58
56
56
12
9-10
N/A
56
57
Other disclosures in notes to the financial statements
FRD 9A
Departmental disclosure of administered assets and liabilities
FRD 11
Disclosure of ex-gratia payments
FRD 13
Disclosure of parliamentary appropriations
FRD 21B
Responsible person and executive officer disclosures
Legislation
Audit Act 1994
Building Act 1993
Crown Land (Reserves) Act 1978
Disability Act 2006
Financial Management Act 1994
Freedom of Information Act 1982
Melbourne and Olympic Parks Act 1985 (amended)
Occupational Health and Safety Act 2004
Protected Disclosure Act 2012
Public Administration Act 2004
Victorian Industry Participation Policy Act 2003
Victorian Managed Insurance Authority Act 1996
13-55
15
17
14
19
53
18
44
52
N/A
N/A
N/A
47, 48
Financial Statements required under Part 7 of the FMA
SD 4.2 (a)
Financial Statements
SD 4.2 (b)
Balance Sheet
SD 4.2 (b)
Cash Flow Statement
SD 4.2 (b)
SD 4.2 (b)
Statement of Changes in Equity
SD 4.2 (c)
Accountable officer’s declaration
SD 4.2 (c)
Compliance with Australian accounting standards and other authoritative
pronouncement
SD 4.2 (c)
Compliance with Ministerial Directions
SD 4.2 (d)
Rounding of amounts
59

MOP0157 MOPT Annual Report 2014 15 WEB

Transcription

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