MELBOURNE & OLYMPIC PARKS TRUST ANNUAL ... & OLYMPIC PARKS TRUST ANNUAL REPORT 2012 CONTENTS...

MELBOURNE&OLYMPICPARKSTRUSTANNUALREPORT2012

MELBOURNE&OLYMPICPARKSTRUST

ANNUALREPORT2012

CONTENTS

Governance 4-5

TheChairman’sReport 6

TheCEO’sReport 7

Highlights2011-12 9

OurPartners 11

FinancialOverview 12

FinancialStatements 13-41

AdministrativeReportingRequirements 42–44

DisclosureIndex 45

ANNuAlREPORT2012 3

GOvERNANCE

EstablishmentTheMelbourneandOlympicParksTrust(MOPT)wasestablishedon5October1995pursuanttotheprovisionsofTheMelbourneandOlympicParksAct1985(asamended).ItwascreatedbythemergeroftheNationalTennisCentreTrust(established13Nov1985)andtheOlympicParkCommitteeofManagement(formedoriginallyin1909).TheActisjointlyadministeredbyboththePremierofvictoria,theHonourableTedBaillieu,andtheMinisterforSportandRecreation,theHonourableHughDelahunty.

The Melbourne and Olympic Parks Act 1985The Purpose of the Act:

ThepurposesoftheActasoutlinedinsection3are:

• TocreateaMelbourneandOlympicParksTrusttoadministertheNationalTennisCentre,OlympicParkandcertainotherlandandfacilitiesforthepurposesoftennis,othersports,recreationandentertainment

• ToprovideforthemanagementandoperationoftheNationalTennisCentreandOlympicPark

• ToprovidefortheuseandpromotionoftheNationalTennisCentreandOlympicPark

• Toprovideforthedevelopment,promotion,management,operationanduseofsports,recreationandentertainmentfacilitiesandservicesinvictoriainadditiontothoseattheNationalTennisCentreandOlympicPark.

undertheActtheTrusthasthefollowingprimaryfunctions:

• ToacceptappointmentandactasacommitteeofmanagementofCrownlands.

• Toberesponsibleforthecare,improvement,useandpromotionoftheNationalTennisCentreandOlympicParkasfacilitiesfortennis,othersports,recreationandentertainment

• TooperatetheNationalTennisCentreandOlympicParkefficientlyandeffectivelytoobtainthebestpossibleuseofthefacilities

• ToprovideplanningfortheoperationoftheNationalTennisCentreandOlympicParkwhichiscoordinatedbetweenthetwofacilities

• ToberesponsibleforproperfinancialmanagementoftheNationalTennisCentreandOlympicPark

• Toprovidefortheplanning,development,promotion,management,operationanduseofothersports,recreationandentertainmentfacilitiesandservicesinvictoria

• Toprovideforthedevelopment,promotion,management,operationanduseoffacilitiesandservicesfortheparkingofvehiclesandothernecessaryservicestobeusedinconjunctionwithanyofthefacilitiesoperatedormanagedbytheTrust

• ToprovideforthemanagementofGosch’sPaddockbytheTrustasacommitteeofmanagementundertheCrownlands(Reserves)Act1978.

The Trust’s VisionToberecognisedasbeingamongsttheworld’sbestandmostsuccessfulsportandentertainmentprecincts.

Our MissionMelbourne and Olympic Parks Trust - Managing one of the world’s leading destinations for sports, entertainment and recreation.

TheTrust:

• Providesvenues,servicesandinfrastructureofaninternationalstandardto:

– provideahomeforTennisAustraliaandtheAustralianOpen;

– attractandsupportthedeliveryoflargespectatorbasedindoorandoutdoorsportingandentertainmentevents;

– enhanceMelbourne’spublicrecreationalamenities;

– supportvictoria’smajorevents,tourismandsportsstrategies.

• Ensuresthatitearnsasufficientincomefromitsactivitiesinordertobeabletodeliverontheseobligationsinthelongterm;

• Operatesasmallbutflexiblecustomerfocussedorganisationthatdeliverssuccessfuleventsinpartnershipwithkeystakeholders;

• MaintainsanenvironmentallysustainableprecinctintegratedwiththeCityanditsparklands.

4 MElBOuRNE&OlyMPICPARkSTRuST

GOvERNANCE

TRuSTEES

BrianMorris-ChiefExecutiveOfficer

TravisMardling-ChiefFinancialOfficer

lloydFreeburn-DirectorofServicesandBuildingInfrastructure

ShaneMates–GeneralManagerAAMIPark

DonnaPrice–GeneralManagerPeopleandCulture

MarkZundans–DirectorofOperationsMelbournePark

Statement of Corporate GovernanceProcedureshavebeenestablishedattheTrustandexecutivemanagementlevel,whicharedesignedtosafeguardtheassetsandinterestsoftheTrustandtoensureintegrityofreporting.TheTrustacknowledgestheneedforandcontinuedmaintenanceofthehigheststandardsofcorporategovernancepracticeandethicalconductbyallTrusteesandemployeesoftheTrust.

Remuneration CommitteeTheTrusthasestablishedaRemunerationCommitteetogoverntheTrust’spolicyandpractiseforexecutiveremunerationandtodeterminetheindividualremunerationpackagesforitsexecutivestaff.TheCommitteemeetsasrequiredandmakesrecommendationstotheTrustonspecificissues.ThemembersoftheCommitteeduringtheyearended30June2012were:

RussellCaplan(Chair)SueNattrassGeoffPollardJohnHowieDianaNicholsonRaySmith

Finance Audit and Risk CommitteeTheTrusthasestablishedaFinanceAuditandRiskCommitteetoadvisetheTrustinrelationtomattersfallingintothebroadareasof:

• Financialreporting,accountingpoliciesandinternalcontrols

• Riskmanagement

• Governance

• Funding

TheCommitteemeetsmonthlyormoreoftenasrequiredandmakesrecommendationstotheTrustonspecificissues.

TheMembersoftheCommitteeduringtheyearended30June2012were:

RaySmith(Chair)RussellCaplanSueNattrass

JohnCainGeoffPollardDeborahBeale

AllFinance,Audit&RiskCommitteemembersareindependentfrommanagement.

Strategic Planning Committee

TheTrust’sStrategicPlanningCommitteeisestablishedtoprovideindependentandexpertadvicetoassisttheTrusttodischargeitsstrategicplanningresponsibilities.

TheMembersoftheCommitteeduringtheyearended30June2012were:

RussellCaplan(Chair)DeborahBealeTimJacobs

kateJoelRaySmithScottTanner

ExECuTIvEGROuP

RussellCaplan

TheHonourableJohnCain

JohnHowie(to24/3/2012)

kateJoel

SueNattrassAO

RaySmith

ScottTanner

DianaNicholson

GeoffreyPollardAM

DavidStobart

DeborahBeale(to26/5/2012)

TimJacobs

ANNuAlREPORT2012 5

THECHAIRMAN’SREPORT

AnotherdynamicyearofdiverseeventsgeneratedapositivefinancialresultfortheMelbourneandOlympicParksTrust.TheprecinctisundergoingextensiveredevelopmentasitimplementsthelongtermmasterplanaddressingtheneedsoftheAustralianOpenandotherprecinctstakeholders.MaintainingMOPT’sstrongfinancialresultsduringtheredevelopmentperiodwillbeachallenge,ascostswillincreasebeforethenewfacilitiesareoperationalandasignificant,albeitnecessary,portionofthenewinfrastructurewillnotberevenuegenerating.

TheyearproducedmanyhighlightsincludinganotherAustralianOpenrecordattendanceof686,006patrons,thanksinparttothewonderfulweather.ThetournamentbroketheworldwideGrandSlamonedayattendancerecordwhen80,649fansflockedtotheprecinctforthemiddleSaturday.Inthemen’sfinalNovakDjokovicwonhisthirdAustralianOpendefeatingRafaelNadalinagruellingfivesetmatchplayedover5hoursand53minutes(thelongestfinalinGrandSlamhistory).victoriaAzarenkadefeatedMariaSharapovaintheWomen’sFinalforherfirstmajortitle.

Ourextensiveredevelopmentisbeingcompletedinstagesandthisyear’sAustralianOpenusedtheimprovedpublicfacilitiesnowavailablebetweenRodlaverArena,HisenseArenaandBatmanAvenue.Additionally,significantstormwaterharvesting,treatmentandclearwaterstoragefacilitieshavebeeninstalledundertheseareastoreducetheprecinct’susageofpotablewater,whileallowingimprovedlandscapingandmaintenanceduringtimesofdrought.

InJanuary,thevictorianGovernmentunveiledthenewdesignforMargaretCourtArenawithanoperableroof,improvedpublicfacilitiesandincreasedcapacityto7,500.Theconstructionisnowunderwayandisdueforcompletionin2015.ThiswillmaketheAustralianOpentheonlyGrandSlamboastingthreefeaturecourtswithoperableroofsandwillfurtherenhanceoursuiteofsportandentertainmentfacilitiesyearround.

InMay,thevictorianGovernmentannounceda$5.5millioncommitmenttofundadetaileddesignandbusinesscase,inpreparationforthenextstageoftheMelbourneParkredevelopment.ThisnextstagewillincludeupgradingRodlaverArena,thecreationofnewpublicspacesandamenities,aswellasimprovedplayer,mediaandbroadcastfacilities.

ThenewEasternPlazaredevelopment,whichincludesanelevatedplazalinkingAAMIParkandtheMCG,parkingfor1,000carsandanewNationalTennisCentreforsportsdevelopment,iswellunderwayandremainsontargetforcompletionbyApril2013.InJune,theGovernmentannouncedthatthenewfootbridgelinkingtheEasternPlazatoAAMIParkwillbenamedafterAustralia’sfirstOlympian,EdwinFlack.ThefootbridgewillprovideapedestrianlinkbetweentheMCG,HisenseArenaandAAMIPark,reducingtrafficcongestionduringeventsandprovidingsafeaccesstoourvenues.

ThenewOlympicParkOvalanditssurroundsarecurrentlyunderredevelopmentanddueforcompletionattheendof2012.Theovalandparklandunderconstructionwillfurtherenhancetheprecinct’spublicopenspaceandrecreationalfacilities.Tohonourthesite’sathleticsandOlympicheritage,theiconicstatue‘Sportsmanship’(commemoratingJohnlandyandRonClarke’sfamousOlympicqualifyingrace)and1956Olympicinterpretivepieceswillalsobelocatedinthisarea.

AAMIParkwelcomeditsonemillionthpatroninFebruaryafterlessthantwoyearsofoperation,atestimonytothepopularityofthestadium.Acelebratory360degreeFanCamphotographwastakenofthecrowdattheMelbournevictoryvMelbourneHeartDerbyandwaswidelydistributedthroughsocialmediachannels.Thestadiumalsodelivereditsfirstconcert,theFooFighters2012Australiantour,attractingcapacity30,000attendancesbothnights.

AAMIParkcontinuestoattractworldwideattentionandwonseveralsignificantawardsduringtheyearincludingtheProfessionalFootballersAssociation‘BestPitch’awardand‘mosticonicandculturallysignificant’stadiumatthe2012WorldStadiumAwardsheldinDoha,Qatar.

InlinewithglobaltrendstherewerefewerRodlaverArenaconcertdaysthanlastyear;howeverthearenaisstillreportedbyinternationallivemusicindustrytrademagazinesasbeingamongsttheworld’stoplivemusicarenas.

OnbehalfoftheTrustees,IwouldliketorecogniseandthankretiringmemberJohnHowieforhisoutstandingcontributionandservicetothisprecinctforover30years,startingoriginallywiththeOlympicParkCommitteeofManagementin1982,andthenasaMelbourneandOlympicParksTrustee.

OnbehalfoftheTrusteesIwouldalsoliketoexpressmythankstothePremierofvictoria,TheHonourableTedBaillieu,andtheMinisterforSportandRecreation,TheHonourableHughDelahuntyfortheirunwaveringsupport.

TheMOPTteamledbyChiefExecutiveBrianMorrishasshownincredibleresilienceanddedicationtoensuretheprecinctoperatesflawlesslyduringthisdifficulttimeofredevelopmentandIthankthemandmyfellowTrusteesfortheirefforts.

InaccordancewiththeFMA1994,IampleasedtopresenttheReportofOperationsfortheMelbourne&OlympicParksTrustfortheyearending30June2012.

Russell Caplan


THECEO’SREPORT

Attendance and PerformanceTheTrustdeliveredapositiveresultwithanetprofitof$5.3million.Duringtheyearourvenuesattractedatotalof2.3millionticketedpatronswhichwasslightlydownontheprecinctrecordsetthepreviousyearduetolowernumbersofconcertdaysandattendanceatRodlaverArena.

Australian OpenTheAustralianOpenachievedarecordattendanceoverallwiththemiddleSaturdaysettinganotheronedayrecord.MelbourneParksnewlayouthandledtheincreasednum-bersextremelywell,particularlythemainpublicareassuchasGrandSlamOval,RiverTerraceandGardenSquare.

Rod Laver ArenaIntotal,RodlaverArenaattracted629,842patronsto63concertdays,slightlydownonthepreviousyear.An80’sre-surgencefeaturedJanetJackson,Roxette,BackstreetBoys/NewkidsontheBlock,SteveWinwood/SteelyDan,Sadeandmostspectacularly,Prince.Oneoftheworld’sbiggesttouringacts,RogerWaters’The Wall,soldoutthreeshowsboastingoneofthelargestandmostimpressiveproductionseverinstalledinthearena.OtherhighlightsincludediconicAustralianbandColdChisel’stwosoldoutconcertsandladyGagaperformingfiveshowstoherlegionofdevoted‘monsters’.

Hisense ArenaIntotal,HisenseArenaattracted232,139patronsto53eventdays.Notably,globalphenomenonsOneDirectionandNickiMinajbothplayedpromotionalshowsforthefirsttimeatthisarena.EachwillreturntoRodlaverArenaontheirworldtours.

HisenseArenawelcomedtheworldpremiereofthearenaspectacular‘HowtoTrainyourDragon’,ahighlytechnicalandexcitinganimatronicsshowwhichisnowtouringglob-ally.

TheuCITrackCyclingWorldChampionshipsattractedsoldoutcrowdsoverfivedaysofintensecompetition,theupgradestothetrackweretestedandmettheapprovaloftheteams.MelbournevixenscementedHisenseArenaastheirhomeshowingsignificantgrowthintheirattendances.NetballisbecominganimportantcontributortotheArena’scontent.

AAMI ParkAAMIParkhadaverystrongyearwith732,806ticketedpatronsattending49eventdays.

ThetwoMelbournederbiesattheStadiumwerenearsellouts.MelbourneHeart,intheirsecondseason,improvedenoughtomaketheA-leaguefinals.TheAustraliavSaudiaArabiaWorldCupQualifyingmatchdrew24,214peopleandprovidedSocceroosfansasatisfying4-2victory.Meanwhile,GlasgowCelticsupporters’passionwasonfulldisplayattheirexhibitiongameagainstMelbournevictory.Thespec-tacularseaofgreenandwhitecladfanswasrewardedwitha1-0winoverthelocals.

Intheir15thyearofoperation,MelbourneStormproducedasuperb2011NRlseasonbeforegoingdowntoAucklandWarriorsinahomepreliminaryfinal.Theevercompeti-tiveStormsubsequentlypickedupwheretheyleftoffwithastrongstarttothe2012season.TheANZACDaygameagainsttheWarriorscontinuedtobuildmomentumwithanotherstrongcrowdconfirmingitsstatusasahighlightoftheNRlfixture.

MeanwhileinSuperRugby,theMelbourneRebels’secondseasonconsolidatedtheirsupporterbasewithimprovedon-fieldperformancesandstrongattendances.

AAMIParkstageditsfirstconcertinDecemberwithtwosoldoutFooFightersshowseachattracting30,000patrons.Theeventsweresosuccessfulthebandfeaturedtheseconcertsintheirsongvideos.Agreatdealofplanningwentintotheeventtoensurethepitchwasproperlyprotectedandpatronshadagreatexperience.Thestadiumproveditsconcertcapabilitieswiththenextgameplayedonaflawlesssurface.

AwidersectorofthepublicalsohadtheopportunitytoviewAAMIParkupcloseonMelbourneOpenHouseday;apro-gramthatprovidesfreeaccesstomanysignificantbuildingsinandaroundthecity.Aspartoftheannualevent,over800curiouspeopletookabackstagetourofthestadium.

Corporate Hospitality and EventsTheFunctionCentrebusinessenjoyedastrongyearwith191eventdays,representingasolidincreaseinrevenueandoccupancyonthepreviousyear.

ANNuAlREPORT2012 7

THECEO’SREPORT

Capital Projects and Infrastructure TheTrustcurrentlyhasassetsundermanagementof$1.1billion,thisrequiresanintensivemaintenanceandim-provementregime.Morethan$16millionwasinvestedinupgradingandreplacingfacilitiesandinfrastructureduringtheyear.TheseworksincludedtheredevelopmentofOlympicPark,improvementstotheAustralianOpenPlayerCafe,patronandtournamentfacilities,installationofnewtechnology,therelocationofadministrationfacilitiesandimprovementstoAAMIParkanditssurrounds.

ThenewPlayerCaféwaswelltestedduringtheAustralianOpenandtheimprovedpatronfacilitiesallowedforgreaterfoodchoicesandspeedofservice.Othernewplayerfacili-tiesincludedagymnasiumandwarm-uparea,aplayerloungeandanadditionaloutdoorarea.ThenewRiverTerracewithitswoodendecksandlandscapingalongBat-manAvenue,aswellasthenewOval,hasdeliveredgreatlyimprovedpublicfacilitiesfortheAustralianOpen.

Maintainingpubliclandscapedareasandplayingsurfacesremainsapriority.Weseeeverincreasingnumbersofpublicandorganisedsportutilisingourspacesforrecreationandtraining.Despiteworksundertakenbyutilitiescompaniestore-routeservicesduringtheyearonGosch’sPaddock,thearearemainedopenforpublicaccessthroughouttheyear.

Melbourne Park RedevelopmentTheredevelopmentcontinuesatarapidratewithextensiveworksalreadycompletedontheEasternPlaza.ThenewNationalTennisCentrehasalreadychangedtheskylineoftheprecinctsignificantly.TheMargaretCourtArenadevel-opments,athreeyearprojectdueforcompletionin2015,arealsowellunderwaywiththecommencementofdrillingandpilingandworksontheseatingbowl.Theactivitiesre-quiredaytodaymanagementandcommunicationbetweenallofthestakeholdersastheyimpactontheprecinct’soperations.Weappreciatethepatienceandunderstandingofourtenantsandhirerswhileweupgradeourfacilitiesforthefuture.

People and CultureSafetyisakeystrategicplatformofourbusiness.WeareverypleasedtohavegainedAS4801initiallevelaccreditationinadditiontoourSafetyMapaccreditationduringtheyear-areflectionofourongoingcommitmenttoimprovingsafetyacrossallareasofourbusiness.

Theorganisationiscurrentlyundergoingaperiodofsub-stantialchangewithimpactoftheconstructiononopera-tionsandtheincorporationofnewandexpandedvenues.TheofficerelocationwascompletedwiththreenewworkhubsbasedatHisenseArena,RodlaverArenaandAAMIPark.Duetothepermanentworkforcenowlocatedinthreeareasoftheprecinct,improvingcommunicationbetweenareaswillbeafocusforthenewyear.The“yourvoice”em-ployeeengagementsurveycapturedmorethan50%oftheworkforceinordertounderstandbetterstaffalignmentandengagementlevels.Theresultsofthissurveyarecurrentlybeingreviewed.TheEmployeeWellbeingProgram,aimedatincreasingthehealthandwellnessofourstaff,hasbeenwellutilised.

IwouldliketothanktheChairmanoftheTrust,RussellCa-planandtheTrustees,PeterHertanatSportandRecreationvictoria,andTimBamfordatMajorProjectsvictoriaandtheirrespectiveteamsfortheirsupportduringtheyear.Fi-nally,aspecialthankstotheMelbourneandOlympicParksteamwhohavecontinuedtodeliverexceptionaleventsandserviceduringaperiodofsignificantchangeanddisruption.

Brian Morris


HIGHlIGHTS2011-2012

Events

AUSTRALIAN OPEN 2012

ROd LAvER ARENAColdChiselDefleppardDisneyonIcePresentsWorldsofFantasyDollyPartonDuranDuranEltonJohnEnriqueIglesiasEvanescenceFlorence+TheMachineFrankievalliHawthornFootballClubGrandFinalDayFunctionJanetJacksonJehovah’sWitnessConventionJohnFogertykingsofleonladyGagaMeatloafMotleyCrueNitroCircusNkOTBSBPlacidoDomingoandkatherineJenkinsPrinceRodStewartRogerWaters-TheWallRoxetteSadeSlipknotSteelyDan&SteveWinwoodSystemofaDownTaylorSwiftTheFootyShowGrandFinalEditionTimMcGrawandFaithHillWinterbeatzWWE2011

HISENSE ARENA21stCenturyEducationSummitAustraliavNewZealand-NetballAustralianDancesportChampionshipBeautifulWomanConferenceCelticThunderCesarMillanCorporateSportsAustraliaAFlGrandFinalBrunchGodskitchenHowtoTrainyourDragon-AustralianTourJackyCheung1/2CenturyTour-Australialondon2012BasketballFarewellSeriesMetroTrainsFamilyDay&Concert

NickiMinajOneDirectionPlanetShakersConferenceRockEisteddfodChallengeMelbournevixens-ANZChampionship(6homegames)StateofOriginRodeoTeacher’sunionMeetinguCITrackCyclingWorldChampionshipsvictorianStateSchoolsSpectacularxFactorAuditionsyouthAlive

OLyMPIC PARk STAdIUMAGSAthleticsCarnivalAllSchoolsTrackRelayChampionshipAPSAthleticsCarnivalGSvChampionshipCarnivalsGSvFinalsEveningSchoolsknockoutvictorianRugbyleague-under12sChampionships

AAMI PARkAustraliavsSaudiArabia-WorldCupQualifierFFvMirabellaCupFFvPremierleagueGrandFinalFooFightersinConcertGlasgowCelticvsMelbournevictoryMelbourneHeart-HyundaiA-league(13homegames)MelbourneRebels-SuperRugby(10homegames)MelbourneStorm-NRl(12homegames)Melbournevictory-HyundaiA-league(8homegames)

MELbOURNE PARk FUNCTION CENTRE2012MedicalCareersExpo7ElevenFranchiseeMeetingAgedandCommunityCare2012StateCongress&ExhibitionAgedandCommunityCareConferenceAlbanianConcert2012AppitaExhibitionandConferenceAssociation&CommunicationsEvents-RoadsConferenceAssociationandCommunicationsEvents-ZeroWasteConferenceAustralianFootballleagueBanquetDinnerAustralianOpenMedia&CorporatelaunchAxARetireesChristmaslunchBDOCharteredAccountantsBanquetDinner

BeWhatyouWant’-CharityExpoBeaconhillsvaledictoryDinnerBelarusCyclingFederationCocktailPartyBillanookDinner/BanquetBlueCrossCommunityandResidentalServicesCareyBaptistGrammaryear12valedictoryDinnerColeslimitedBusinessMeetingsCollingwoodFootballClubAnzacDayluncheonConnectEntertainmentConferenceCPAExamMarkingCSlAnnualGeneralMeetingCSRlimited-AnnualGeneralMeetingDARu(DisabilityAdovacyResourceunit)ConferenceDepartmentofJusticeConferenceDepartmentofEducationConferenceDepartmentofTreasuryandFinanceConferenceElectronexExhibition2011EventMangementGroup(EMG)-SensisWhitePagesConferenceEmpowernet-WealthMasteryConferenceEssoluncheonFremantleDockersCocktailPartyFrontlineSportsfirstRangeDaysGlobalCreatures-HowtoTrainyourDragonAfterPartyHasbroEventsExhibitionHealthcertWorkshopICBBookeepersConferenceITAC2012JanetJacksonPreShowPartyJehovah’sWitnessConventionlION-leadingOurAchievementCultureConferencelION-CapabilityandDevelopmentConferenceMarketAustralialeadershipSchool2011MunicipalAssociationofvictoria(MAv)-ConferenceMunicipalAssociationofvictoria(MAv)-TheFutureoflocalGovernmentSummitMunicipalAssociationofvictoria(MAv)-WastePolicyForumMelbaSupportServices2011ConferenceMelbourneGirlsGrammarMelbourneStormAuctionNightMelbourneStormPostMatchMembersFunctionMelbourneFireBrigadeConferenceMethodistladiesCollege(MlC)year12formal2012

ANNuAlREPORT2012 9

Major Capital ExpenditureExpenditure type Amount Details

AAMIParkInfrastructure $1.1million Includesaredesignofentryturnstiles,newadministrationofficesandothermodifications

MelbourneParkInfrastructure $3.7million Includesimprovementstotennisfacilities,beingtheconstructionofanewplayergym,upgradestotheplayerlounge,changeroomfacilities,corporatesuites,tenniscourtlightingandarefurbishmentofShowCourt3.Safetyrelatedworksincludedelectricalswitchboardupgrades,HisenseArenacanopyrepairsandanupgradetocyclinginfrastructure.

OlympicParkRedevelopment $8.7million CostsincurredfortheredevelopmentofOlympicPark-demolitionandcivilworks.ThisprojectisexpectedtobecompletedinMarch2013

EquipmentandTechnology $2.5million IncludescontinuedupgradestotheITnetworkacrosstheprecinct,intranetsystemimprovements,electronicsecurityupgrades,newretailvendingcartsandotherequipmentandtechnologyrequirements

WestpacCentreInfrastructure $0.2million Relatestoupgradestotheswimmingpool,roofmembraneanddrainage

TOTAL $16.2 million

HIGHlIGHTS2011-2012

Events (cont)NABBBQ&TennisDayNABPersonalBanking-BusinessOperationsTeamDayNiqueStewartsMindsettoMillionaireSeminarNitroCircusPreShowEventPlANAustralia-ProfessionalDevelopmentDayPlanetShakersConferencePublicSectorBusinessSolutionsShowRedMeatNetworkingClubTradeEventRockwellAutomationConferenceSchoollibrariesAssociationvictoria

(SlAv)ConferenceStkevin’sCollege2012FormalSwinburneuniveristyExamsSynnexAllianceExpo2011TennisAustraliauniformFittingsTennisAustraliaConferenceTheBuPAExperienceTicketek-EltonJohnPreShowBanquetDinnerTRuenergyChristmasPartyvictorianDanceSportsvictorianTransportAssociationConference

victoria’sSmallBusinessFestivalvMuGuserGroupExhibitionvocationalTrainingGroupGraduationDinnerWesternBulldogsBreakfastWoundManagementConferenceyouthAffairsCouncilofvictoria(yACvic)Conference

Key Statistics

2011/12 2010/11Numberofcontracteddays–MelbournePark 233 238Numberofcontracteddays–AAMIPark 55 52Numberofcontracteddays–MelbourneParkFunctionCentre 191 186RlAeventticketedattendance 629,842 942,510HisenseArenaeventticketedattendance 232,139 177,617AAMIParkeventticketedattendance 732,806 655,029MelbourneParkFunctionCentrepatrons 134,657 81,739AttendanceatAustralianOpen(grandslamrecord) 686,006 651,127CrowdatAO,day6(onedaygrandslamrecord 80,649 77,121Numberofwebsitevisitors(allMOPTsites) 893,741 841,247


OuRPARTNERS

TheTrustwouldliketothankthefollowingorganisationsfortheirsupportoverthepastyear

TenantsAthleticsvictoria

CalibreFeasts

CollingwoodFootballClub

Imaging@OlympicPark

MelbourneFootballClub

MelbourneStorm

Melbournevictory

OlympicParkSportsMedicineCentre

TennisAustralia

Tennisvictoria

victorianInstituteofSport

victorianOlympicCouncil

victorianRugbyunion

SuppliersCoca-ColaAmatil

DiageoAustralia

Carlton&unitedBreweries

HeinekenlionAustralia

kraftFoodsAustralia

lionCo(DairyandDrinks)

MarsSnackfoodAustralia

NestlePeters

PattiesFoodslimited

PernodRicardAustralia

TreasuryWineEstates

Venue PartnersAAMI

ACG

CapricornStagesandRigging

DelawareNorthCompaniesAustralia

HisenseAustralia

MichaelO’BrienCatering

Ticketek

TennisAustralia

Regular Arena HirersChuggEntertainment

DaintyGroup

FeldEntertainment

FrontierTouring

liveNationAustralia

Melbournevixens

MichaelCoppelPresents

vanEgmondGroup

AAMI Park ClubsMelbourneHeart

MelbourneRebels

MelbourneStorm

Melbournevictory

ANNuAlREPORT2012 11

FINANCIAlOvERvIEW

ThefinancialstatementsinthisreportrelatetotheactivitiesofMelbourne&OlympicParksTrustfortheyearended30June2012.

Thenetresultfor2012wasaprofitof$5.345million(2011:$7.024million).

Inthe2011/12yeartheTrustreceivedgrantsfromthevictorianGovernmenttotalling$91.300millionallofwhichwastreatedascontributedcapital(2011:$37.600millionallofwhichwastreatedascontributedcapital).Thegrantsin2012werefurthercontributionstowardstheredevelopmentoftheMelbourneParkprecinct(2011:grantstowardstheredevelop-mentoftheMelbourneParkprecinct).

Totalincomefor2011/12was$103.625million,(2011:$101.534million).Incomerelatedtothesalesofgoodsandservicesincreasedby2.6%whichwasprimarilyduetothesuccessoftheAustralianOpenwhichgenerated11%greaterincomethanthepreviousyear.

Thesignificantfactorsinreachingthisincomewere:

· ThesuccessfuldeliveryoftheAustralianOpen,includingarecordoverallattendancewhichwas5%higherthanthepreviousyear;

· RodlaverArenahosting63eventdayswithmanyhighqualityinternationalartistsperformingduringtheyearwhichresultedinstrongeventyieldsbutlessoverallattendeesthanthepreviousyear;

· HisenseArenahosting53eventdays,attracting31%moreticketedattendeesthanthepreviousyear.Theaverageattendancepershowwasatitshighestlevelformanyyearsandresultedinimprovementsinyieldsperevent;

· AAMIParkhosting49eventdays,attracting12%moreticketedattendeesthanthepreviousyear.InadditiontobeingthehomeoftheMelbourneStorm(rugbyleague),MelbourneRebels(rugbyunion),MelbournevictoryandMelbourneHeart(soccer),AAMIParkalsohostednoteableone-offeventsincludingtwoFooFightersconcerts,aWorldCupQualifier(soccer),afriendlysoccermatchbetweenGlasgowCelticandMelbournevictoryand2NRlfinals;

· TheMelbourneParkFunctionCentreachievedsignificantincomegrowthfromhostinganumberoffunctions,conferences,seminarsanddinnersandsawa65%increaseinattendancefigures.SignificanteventsincludedtheAFlGrandFinalDayDinner,SwinburneuniversityexamsandCPAexammarkingweekends.

Totalexpensesfromtransactionsin2012was$98.434million,(2011:$94.419million).Thisincreaseinexpenditurewaspredominantlyasaresultoftheincreaseineventrelatedrevenue.

Property,Plant&Equipment(lessaccumulateddepreciation)increasedby$56.435millioncomparedtolastyear,primarilyduetotheMelbourneParkredevelopmentconstructioncosts,partiallyoffsetbyadecreaseinthevalueoflandandbuildingsasaresultofarevaluation.


MElBOuRNE&OlyMPICPARkSTRuST

FINANCIAlSTATEMENTS

ComprehensiveOperatingStatementBalanceSheetStatementofChangesinEquityCashFlowStatementFinancialyearEnded30June2012

ANNuAlREPORT2012 13

NOTE 2012 $’000

2011 $’000

CONTINUING OPERATIONS

INCOME FROM TRANSACTIONSSalesofgoodsandservices (2a) 100,335 97,746Interest (2b) 1,501 643Grants (2c) 820 2,143OtherIncome (2d) 969 1,002TOTAL INCOME FROM TRANSACTIONS 103,625 101,534

EXPENSES FROM TRANSACTIONSCostofgoodssold/distributed (3a) 35,150 30,409Purchaseofservices (3b) 15,351 14,241Employeeexpenses (3c) 17,305 17,213Interestexpense (3d) - 107Depreciation (3e) 25,175 26,514Otheroperatingexpenses (3f) 5,453 5,935TOTAL EXPENSES FROM TRANSACTIONS 98,434 94,419

NET RESULT FROM TRANSACTIONS (NET OPERATING BALANCE) 5,191 7,115

Other economic flows included in net resultNetgain/(loss)onnon-financialassets (4a) (86) (77)Netgain/(loss)arisingfromrevaluationoflongserviceliability (4b) 240 (14)Total other economic flows included in net result 154 (91)

Net result 5,345 7,024

Other economic flows - other non-owner changes in equityChangesinphysicalassetrevaluationsurplus (7) (28,565) -Total other economic flows - other non-owner changes in equity (28,565) -

Comprehensive result (23,220) 7,024

Theabovecomprehensiveoperatingstatementshouldbereadinconjunctionwiththeaccompanyingnotes.

COMPREHENSIvEOPERATINGSTATEMENTFORTHEFINANCIAlyEARENDED30JuNE2012


BAlANCESHEETFORTHEFINANCIAlyEARENDED30JuNE2012

NOTE 2012 $’000

2011 $’000

ASSETS

FINANCIAL ASSETSCashandcashequivalents (5) 62,194 38,717Receivables (6) 3,251 3,060TOTAL FINANCIAL ASSETS 65,445 41,777

NON-FINANCIAL ASSETSProperty,plantandequipmentandIntangibleassets (7) 1,098,488 1,042,053Other (8) 191 392TOTAL NON-FINANCIAL ASSETS 1,098,678 1,042,445

TOTAL ASSETS 1,164,123 1,084,222

LIABILITIESPayables (9) 13,294 6,166Provisions (10) 2,619 2,398Other (11) 25,404 20,931TOTAL LIABILITIES 41,317 29,495

NET ASSETS 1,122,806 1,054,727

EQUITYAccumulatedsurplus/(deficit) 196,247 190,903Reserves 314,675 343,240Contributedcapital 611,884 520,584NET WORTH 1,122,806 1,054,727

Theabovebalancesheetshouldbereadinconjunctionwiththeaccompanyingnotes.

ANNuAlREPORT2012 15

STATEMENTOFCHANGESINEQuITyFORTHEFINANCIAlyEARENDED30JuNE2012

Notes Physical AssetRevaluation

Surplus$’000

AccumulatedSurplus

$’000

Contributions By Owner

$’000

Total$’000

Balance at 1 July 2010 343,240 183,879 482,984 1,010,103

NetResultfortheyear 7,024 7,024

Transactionswithownersintheircapacityasowners

37,600 37,600

RevaluationofAssets (7) - -

Balance at 30 June 2011 343,240 190,903 520,584 1,054,727

NetResultfortheyear 5,344 5,344

Transactionswithownersintheircapacityasowners

91,300 91,300

RevaluationofAssets (7) (28,565) (28,565)

Balance at 30 June 2012 314,675 196,247 611,884 1,122,806

Theabovestatementofchangesinequityshouldbereadinconjunctionwiththeaccompanyingnotes.


CASHFlOWSTATEMENTFORTHEFINANCIAlyEARENDED30JuNE2012

NOTE 2012 $’000

2011 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

RECEIPTSReceiptsfromcustomers 100,346 104,254Customerreceiptsonbehalfofsuppliers (1d) 130,126 152,793Interestreceived 1,501 643OtherReceipts 1,703 3,068TOTAL RECEIPTS 233,676 260,758

PAYMENTSPaymentstosuppliersandemployees (57,757) (84,417)Paymentstosuppliersonbehalfofcustomers (1d) (130,126) (152,794)GoodsandServicesTaxpaidtotheATO(i) (3,440) (3,221)TOTAL PAYMENTS (191,323) (240,432)

NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES (17b) 42,353 20,326

CASH FLOWS FROM INVESTING ACTIVITIESPaymentsfornon-financialassets (110,176) (64,133)

NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES (110,176) (64,133)

CASH FLOWS FROM FINANCING ACTIVITIESReceiptsfromGovernment(capital) 91,300 37,600Borrowingcostspaid - (107)

NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES 91,300 37,493

Netincrease/(decrease)incashandcashequivalents 23,477 (6,314)

Cashandcashequivalentsatthebeginningofthefinancialyear 38,717 45,031

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR (17a) 62,194 38,717

Theabovecashflowstatementshouldbereadinconjunctionwiththeaccompanyingnotes.(i)GoodsandServicesTaxpaidto/receivedfromtheATOispresentedonanetbasis

ANNuAlREPORT2012 17

1. SuMMARyOFSIGNIFICANTACCOuNTINGPOlICIES

(a) Statement of Compliance

Thisgeneral-purposefinancialreporthasbeenpreparedonanaccrualbasisinaccordancewiththeFinancial Management Act 1994 (FMA),applicableAustralianAccountingStandards(AAS),whichincludestheAustralianaccountingstandardsissuedbytheAustralian Accounting Standards Board (AASB). Inparticular,theyarepresentedinamannerconsistentwiththerequirementsofAASB1049Whole of Government and General Government Sector Financial Reporting.

Accountingpoliciesareselectedandappliedinamannerwhichensuresthattheresultingfinancialinformationsatisfiestheconceptsofrelevanceandreliability,therebyensuringthatthesubstanceoftheunderlyingtransactionsorothereventsisreported.

Togainabetterunderstandingoftheterminologyusedinthisreport,aglossaryoftermsandstyleconventionscanbefoundinNote23.

(b) Basis of accounting preparation and measurement

Theaccrualbasisofaccountinghasbeenappliedinthepreparationofthesefinancialstatementswherebyassets,liabilities,equity,incomeandexpensesarerecognisedinthereportingperiodtowhichtheyrelate,regardlessofwhencashisreceivedorpaid.

IntheapplicationofAASs,managementisrequiredtomakejudgements,estimatesandassumptionsaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandvariousotherfactorsthatarebelievedtobereasonableunderthecircumstance,theresultsofwhichformthebasisofmakingthejudgments.Actualresultsmaydifferfromtheseestimates.

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiodorintheperiodoftherevision,andfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.JudgementsandassumptionsmadebymanagementintheapplicationofAASsthathavesignificanteffectsonthefinancialstatementsandestimatesrelateto:

· thefairvalueofland,buildings,infrastructure,plantandequipment,(refertoNote1(i));

· superannuationexpense(refertoNote1(h));and· actuarialassumptionsforemployeebenefitprovisionsbased

onlikelytenureofexistingstaff,patternsofleaveclaims,futuresalarymovementsandfuturediscountrates(refertoNote1(j)).

ThesefinancialstatementsarepresentedinAustraliandollars,thefunctionalandpresentationcurrencyoftheTrust.

Accountingpoliciesareselectedandappliedinamannerwhichensuresthattheresultingfinancialinformationsatisfiestheconceptsofrelevanceandreliability,therebyensuringthatthesubstanceoftheunderlyingtransactionsorothereventsisreported.

Theaccountingpoliciessetoutbelowhavebeenappliedinpreparingthefinancialstatementsfortheyearended30June2012andthecomparativeinformationpresentedfortheyearended30June2011.

(c) Reporting Entity

ThefinancialstatementscoverMelbourneandOlympicParksTrust(theTrust)asanindividualreportingentity.TheTrustisagovernmentagencyoftheStateofvictoria,establishedpursuanttotheprovisionsoftheMelbourne and Olympic Parks Act 1985.Itsprincipaladdressis:

MelbourneandOlympicParksTrustBatmanAvenueMelbournevIC3001

(d) Scope and presentations of financial statements

Comprehensive operating statement

Incomeandexpensesinthecomprehensiveoperatingstatementareclassifiedaccordingtowhetherornottheyarisefrom‘transactions’or‘othereconomicflows’.ThisclassificationisconsistentwiththewholeofgovernmentreportingformatandisallowedunderAASB101Presentation of financial statements.

‘Transactions’and‘othereconomicflows’aredefinedbytheAustralian system of government finance statistics: concepts, sources and methods2005andAmendmentstoAustralianSystemofGovernmentFinanceStatistics,2005Cat.No.5514.0publishedbytheAustralianBureauofStatistics.

‘Transactions’arethoseeconomicflowsthatareconsideredtoariseasaresultofpolicydecisions,usuallyinteractionsbetweentwoentitiesbymutualagreement.Transactionsalsoincludeflowswithinanentity,suchasdepreciationwheretheownerissimultaneouslyactingastheownerofthedepreciatingassetandastheconsumeroftheserviceprovidedbytheasset.TaxationisregardedasmutuallyagreedinteractionsbetweentheGovernmentandtaxpayers.Transactionscanbeinkind(e.g.assetsprovided/givenfreeofchargeorfornominalconsideration)orwherethefinalconsiderationiscash.

‘Othereconomicflows’arechangesarisingfrommarketre-measurements.Theyincludegainsandlossesfromdisposals,revaluationsandimpairmentsofnon-currentphysicalandintangibleassets;actuarialgainsandlossesarisingfromdefinedbenefitsuperannuationplans;fairvaluechangesoffinancialinstrumentsandagriculturalassets;anddepletionofnaturalassets(non-produced)fromtheiruseorremoval.

ThenetresultisequivalenttoprofitorlossderivedinaccordancewithAASs.

Balance sheet

Assetsandliabilitiesarepresentedinliquidityorderwithassetsaggregatedinto,financialassetsandnon-financialassets.

Currentandnon-currentassetsandliabilities(thoseexpectedtoberecoveredorsettledbeyond12months)aredisclosedinthenotes,whererelevant.

Cash flow statement

Cashflowsareclassifiedaccordingtowhetherornottheyarisefromoperatingactivities,investingactivities,orfinancingactivities.ThisclassificationisconsistentwithrequirementsunderAASB107Statement of cash flows.

Forcashflowstatementpresentationpurposes,cashandcashequivalentsincludebankoverdrafts,whichareincludedascurrentborrowingsonthebalancesheet.

NOTESTOFINANCIAlSTATEMENTSFORTHEFINANCIAlyEARENDED30JuNE2012


CustomerreceiptsonbehalfofsuppliersandPaymentstosuppliersonbehalfofcustomersrepresentscashreceivedforeventticketsaleswhichisheldinTrustfromthetimeticketsarepurchasedandpaidouttothehireraftertheeventhastakenplace.

Statement of changes in equity

Thestatementofchangesinequitypresentsreconciliationsofnon-ownerandownerchangesinequityfromopeningbalanceatthebeginningofthereportingperiodtotheclosingbalanceattheendofthereportingperiod.Italsoshowsseparatelychangesduetoamountsrecognisedinthe‘Comprehensiveresult’andamountsrecognisedin‘Othereconomicflows–othermovementsinequity’relatedto‘Transactionswithownerinitscapacityasowner’.

(e) Events after reporting date

Assets,liabilities,incomeorexpensesarisefrompasttransactionsorotherpastevents.WherethetransactionsresultfromanagreementbetweentheTrustandotherparties,thetransactionsareonlyrecognisedwhentheagreementisirrevocableatorbeforetheendofthereportingperiod.

Adjustmentsaremadetoamountsrecognisedinthefinancialstatementsforeventswhichoccurafterthereportingperiodandbeforethedatethefinancialstatementsareauthorisedforissue,wherethoseeventsprovideinformationaboutconditionswhichexistedinthereportingperiod.Notedisclosureismadeabouteventsbetweentheendofthereportingperiodandthedatethefinancialstatementsareauthorisedforissuewheretheeventsrelatetoconditionswhicharoseaftertheendofthereportingperiodandwhichmayhaveamaterialimpactontheresultsofsubsequentreportingperiods.

(f) Goods and services tax (GST)

Income,expensesandassetsarerecognisednetoftheamountofassociatedGST,unlesstheGSTincurredisnotrecoverablefromthetaxationauthority.Inthiscaseitisrecognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.

ReceivablesandpayablesarestatedinclusiveoftheamountofGSTreceivableorpayable.ThenetamountofGSTrecoverablefrom,orpayableto,thetaxationauthorityisincludedwithotherreceivablesorpayablesinthebalancesheet.

Cashflowsarepresentedonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingorfinancingactivitieswhicharerecoverablefrom,orpayabletothetaxationauthority,arepresentedasoperatingcashflows.

(g) Revenue

Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable.Amountsdisclosedasrevenuearenetofreturns,tradeallowancesanddutiesandtaxes.

Revenue from sale of goods and services

RevenuefromthesaleofgoodsandservicesisrecognisedupondeliveryofthegoodsandservicestothecustomerandwhentheTrustgainscontroloftheunderlyingassets.

Grants

GrantsfromthirdpartiesarerecognisedasincomeinthereportingperiodinwhichtheTrustgainscontroloverthecontribution.

Interest revenue

Interestincomeisrecognisedonatimeproportionatebasisthattakesintoaccounttheeffectiveyieldonthefinancialasset.

Other income

SinkingfundincomeisrecognisedasincomeinthereportingperiodinwhichtheTrustgainscontrolovertheunderlyingassets.

Anygainorlossondisposalofnon-currentassetsisrecognisedatthedatecontroloftheassetispassedtothebuyerandisdeterminedafterdeductingfromtheproceedsthecarryingvalueoftheassetatthattime.

(h) Expenses

Paymentstothirdpartiesarerecognisedasanexpenseinthereportingperiodinwhichtheyarepaidorarepayable.

Employee benefits

RefertothesectioninNote1(j)regardingemployeebenefits.

Theseexpensesincludeallcostsrelatedtoemployment(otherthansuperannuationwhichisaccountedforseparately)includingwagesandsalaries,fringebenefitstax,leaveentitlements,redundancypaymentsandWorkCoverpremiums.

DetailsofthefundswhichtheTrustmadesuperannuationcontributionstoduringtheyeararedisclosedinNote21.

Depreciation

IncompliancewithAustralianAccountingStandardAASB116,depreciationhasbeenchargedonallfixedassetsandcapitalworksdevelopments,withtheexceptionofland.Theprovisionsfordepreciationaremadeusingthestraight-linemethod,atratesappropriatetotheestimatedusefullifetotheTrustofeachindividualasset.Estimatesoftheremainingusefullivesforallassetsarereviewedannuallyandrangefromgreaterthanzerouptoseventyyears.Thetrust’spolicyistocapitaliseassetsvaluedover$1,000,whilstassetsoflessthan$1,000invalueareexpensedimmediately.

Thefollowingaretypicalestimatedusefullivesfordifferentassetclassesforbothcurrentandprioryears:

Asset Class Useful Life

Buildings 15-60years

PropertyPlant&Equipment 5years

Motorvehicles 5years

IntangibleAssets 5yearsImpairment of assetsAlloftheTrust’sassetsareassessedannuallyforindicationsofimpairment,exceptforinventories.

Ifthereisanindicationofimpairment,theassetsconcernedaretestedastowhethertheircarryingvalueexceedstheirpossiblerecoverableamount.Whereanasset’scarryingvalueexceedsitsrecoverableamount,thedifferenceiswrittenoffbyachargetothecomprehensiveoperatingstatementexcepttotheextentthatthewrite-downcanbedebitedtoanassetrevaluationreserveamountapplicabletothatclassofasset.


ANNuAlREPORT2012 19


Itisdeemedthat,intheeventofthelossofanasset,thefutureeconomicbenefitsarisingfromtheuseoftheassetwillbereplacedunlessaspecificdecisiontothecontraryhasbeenmade.Therecoverableamountofmostmajorassetsismeasuredatthehigherofthedepreciatedreplacementcostandfairvaluelesscoststosell.Thedepreciatedreplacementcostisthecurrentreplacementcostofanassetless,whereapplicable,accumulateddepreciationcalculatedonthebasisofsuchcosttoreflectthealreadyconsumedorexpiredfutureeconomicbenefitsoftheasset.

Supplies and services

Suppliesandservicesarerecognisedasanexpenseinthereportingperiodinwhichtheyareincurred.

(i) Assets

Allnon-currentassetscontrolledbythetrustarereportedinthebalancesheet.

Cash and cash equivalents

Cashanddeposits,includingcashequivalents,comprisecashonhandandcashatbank,depositsatcallandthosehighlyliquidinvestmentswithanoriginalmaturityofthreemonthsorless,whichareheldforthepurposeofmeetingshorttermcashcommitmentsratherthanforinvestmentpurposes,andwhicharereadilyconvertibletoknownamountsofcashandaresubjecttoaninsignificantriskofchangesinvalue.

Forcashflowstatementpresentationpurposes,cashandcashequivalentsincludesbankoverdrafts,whichareincludedasborrowingsonthebalancesheet.

Receivables

Receivablesconsistof:

· statutoryreceivables,whichincludepredominantlyamountsowingfromthevictorianGovernmentandGSTinputtaxcreditsrecoverable;and

· contractualreceivables,whichincludemainlydebtorsinrelationtogoodsandservices,loanstothirdparties,accruedinvestmentincomeandfinanceleasereceivables(refertoNote12Leases)

Receivablesthatarecontractualareclassifiedasfinancialinstruments.Statutoryreceivablesarenotclassifiedasfinancialinstruments.

Receivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod,lessanallowanceforimpairment.

Aprovisionfordoubtfulreceivablesismadewhenthereisobjectiveevidencethatthedebtswillnotbecollected.Baddebtsarewrittenoffwhenidentified.

Inventories

Inventoriesaremeasuredatthelowerofcostandnetrealisablevalue.

Property, plant and equipment

land,buildingsandplantandequipmentarerecognisedinitiallyatcostandsubsequentlymeasuredatfairvaluelessaccumulateddepreciation.

Revaluations of Non-Current Physical Assets

Non-currentphysicalassetsmeasuredatfairvaluearerevalued

inaccordancewithFRD103DissuedbytheMinisterforFinance.Afullrevaluationoccursatleasteveryfiveyears,basedontheasset’sgovernmentpurposeclassification,butmayoccurmorefrequentlyiffairvalueassessmentsindicatematerialchangesinvalues.IndependentvaluersareusedtoconductthesescheduledrevaluationsandanyinterimrevaluationsaredeterminedinaccordancewiththerequirementsoftheFRDs.

Revaluationincreasesordecreasesarisefromdifferencesbetweenanasset’scarryingvalueandfairvalue.

Revaluationincreasesarecrediteddirectlytoequityintherevaluationreserve,exceptthat,totheextentthatanincrementreversesarevaluationdecrementinrespectofthatclassofassetpreviouslyrecognisedasanexpenseinthenetresult,theincrementisrecognisedasincomeindeterminingthenetresult.

Revaluationdecreasesarerecognisedimmediatelyasexpensesinthenetresult,exceptthat,totheextentthatacreditbalanceexistsintherevaluationreserveinrespectofthesameclassofassets,theyaredebitedtotherevaluationreserve.

Revaluationincreasesandrevaluationdecreasesrelatingtoindividualassetswithinaclassofproperty,plantandequipmentareoffsetagainstoneanotherwithinthatclassbutarenotoffsetinrespectofassetsindifferentclasses.

(j) Liabilities

Payables

PayablesarerecognisedwhentheTrustbecomesobligedtomakefuturepaymentsresultingfromthepurchaseofgoodsandservices.

Interest bearing liabilities

Interestbearingliabilitiesareinitiallymeasuredatfairvalue,beingthecostoftheinterestbearingliabilities,netoftransactioncosts.

Subsequenttoinitialrecognition,interestbearingliabilitiesaremeasuredatamortisedcostwithanydifferencebetweentheinitialrecognisedamountandtheredemptionvaluebeingrecognisedinprofitandlossovertheperiodoftheinterestbearingliabilityusingtheeffectiveinterestratemethod.

Provisions

ProvisionsarerecognisedwhentheTrusthasapresentobligation,thefuturesacrificeofeconomicbenefitsisprobableandtheamountoftheprovisioncanbemeasuredreliably.

Theamountrecognisedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatreportingdate,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.Whereaprovisionismeasuredusingthecashflowsestimatedtosettlethepresentobligation,itscarryingamountisthepresentvalueofthosecashflows,usingadiscountratethatreflectsthetimevalueofmoneyandrisksspecifictotheprovision.

Employee Benefits

(i) Wages, Salaries and Annual Leave

liabilitiesforwagesandsalaries,includingnon-monetarybenefitsandannualleaveexpectedtobesettledwithin12monthsofthereportingdatearerecognisedintheprovisionforemployeebenefitsinrespectofemployeeservicesuptothereportingdate,classifiedascurrentliabilitiesandmeasuredattheirnominalvalues.


Thoseliabilitiesthatarenotexpectedtobesettledwithin12monthsarerecognisedintheprovisionforemployeebenefitsascurrentliabilities,measuredatpresentvalueoftheamountsexpectedtobepaidwhentheliabilitiesaresettledusingtheremunerationrateexpectedtoapplyatthetimeofsettlement.

(ii) Long Service Leave

Aliabilityforlongserviceleaveisrecognised,andismeasuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdate.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodofservice.Allunconditionalvestedlongserviceleaverepresenting7yearsorgreaterofcontinuousserviceisdisclosedinaccordancewithAASB101,asacurrentliability.Expectedfuturepaymentsaremeasuredatnominalvaluewhereacomponentofthiscurrentisexpectedtofallduewithin12monthsaftertheendoftheperiodanddiscountedwheretheTrustdoesnotexpecttosettleacomponentofthisliabilitywithin12months.DiscountratesarebasedoninterestratesonnationalGovernmentguaranteedsecuritieswithtermstomaturitythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.

liabilityforlongserviceleave(lSl)isrecognisedintheprovisionforemployeebenefits.

•CurrentliabilityunconditionallSl(representingsevenormoreyearsofcontinuousserviceforstaff)isdisclosedasacurrentliabilityevenwheretheTrustdoesnotexpecttosettletheliabilitywithin12monthsbecauseitwillnothavetheunconditionalrighttodeferthesettlementoftheentitlementshouldanemployeetakeleavewithin12months.

ThecomponentsofthiscurrentlSlliabilityaremeasuredat:

–Presentvalue–componentthattheTrustdoesnotexpecttosettlewithin12months;and

–Nominalvalue–componentthattheTrustexpectstosettlewithin12months.

•Non-currentliability–conditionallSl(representinglessthansevenyearsofcontinuousserviceforstaff)isdisclosedasanon-currentliability.Thereisanunconditionalrighttodeferthesettlementoftheentitlementuntiltheemployeehascompletedtherequisiteyearsofservice.

Thisnon-currentlSlliabilityismeasuredatpresentvalue.

(iii) Termination benefits

Terminationbenefitsarepayablewhenemploymentisterminatedbeforethenormalretirementdate,orwhenanemployeeacceptsvoluntaryredundancyinexchangeforthesebenefits.TheTrustrecognisesterminationbenefitswhenitisdemonstrablycommittedtoeitherterminatingtheemploymentofcurrentemployeesaccordingtoadetailedformalplanwithoutpossibilityofwithdrawalorprovidingterminationbenefitsasaresultofanoffermadetoencouragevoluntaryredundancy.Benefitsfallingduemorethan12monthsafterbalancesheetdatearediscountedtopresentvalue.

Employee Benefit On-costs

Employeebenefitson-costs(payrolltax,workerscompensation,superannuation,annualleaveandlSlaccruedwhileonlSltakeninservice)arerecognisedandincludedwhendeterminingemployeebenefitliabilities.

(k) Income taxes

TheAustralianTaxationOfficehasdeemedtheTrusttobea“PublicAuthority”withinthetermsofSection50-25oftheIncomeTaxAssessmentAct1997andthereforeanyincomeshallbeexemptfromincometax.TheTrustisnotsubjecttotheStateEquivalentIncomeTaxSystem.Noprovisionsforincometaxespayablehavebeenraised.

(l) Contingent assets and contingent liabilities

Contingentassetsandcontingentliabilitiesarenotrecognisedinthebalancesheet,butaredisclosedbywayofanoteand,ifquantifiable,aremeasuredatnominalvalue.

(m) Cash flow statement

Forthepurposesofthecashflowstatement,cashcomprisespettycash,cashfloats,depositsinbankaccounts,cashheldintrust(ticketsalesforfutureevents)andshort-termdeposits.

(n) Rounding of Amounts

Amountsinthefinancialreporthavebeenroundedtothenearestthousanddollars,orinothercases,tothenearestdollar.

(o) Contributed Capital

TransfersfromtheDepartmentforPlanningCommunity&Development(DPCD)thatareinthenatureofcontributionsordistributionsofcapitalhavealsobeendesignatedascontributedcapital.Othertransfersthatareinthenatureofcontributionsordistributionshavealsobeendesignatedascontributionsbyowners.

(p) Intangible Assets

Intangibleassetsrepresentidentifiablenon-monetaryassetswithoutphysicalsubstance.Intangibleassetsarerecognisedatcost.CostincurredsubsequenttoinitialacquisitionarecapitalisedwhenitisexpectedthatadditionalfutureeconomicbenefitswillflowtotheTrust.

(q) Leased Assets

leasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardstothelessee.Allotherleasesareclassifiedasoperatingleases.AssetsheldunderfinanceleasesarerecognisedasassetsoftheTrustattheirfairvalueor,iflower,atthepresentvalueoftheminimumleasepayments,eachdeterminedattheinceptionofthelease.Thecorrespondingliabilitytothelessorisincludedinthebalancesheetasafinanceleaseobligation.

(r) Australian Accounting Standards issued that are not yet effective

CertainnewAASshavebeenpublishedthatarenotmandatoryforthe30June2012reportingperiod.DTFassessestheimpactofthesenewstandardsandadvisestheTrustoftheirapplicabilityandearlyadoptionwhereapplicable.

Asat30June2012,thefollowingstandardsandinterpretationshadbeenissuedbutwerenotmandatoryforthefinancialyearending

30June2012.TheTrusthasnotearlyadoptedthesestandards.


ANNuAlREPORT2012 21


Standard/Interpretation Summary Applicable for annual reporting periods beginning on

Impact on public sector entity financial statements

AASB9Financial instruments ThisstandardsimplifiesrequirementsfortheclassificationandmeasurementoffinancialassetsresultingfromPhase1oftheIASB’sprojecttoreplaceIAS39Financial Instruments: Recognition and Measurement(AASB139Financial Instruments: Recognition and Measurement).

Beginning

1Jan2013

Detailofimpactisstillbeingassessed.

AASB13Fair Value Measurement

ThisStandardoutlinestherequirementsformeasuringthefairvalueofassetsandliabilitiesandreplacestheexistingfairvaluedefinitionandguidanceinotherAASs.AASB13includesa‘fairvaluehierarchy’whichranksthevaluationtechniqueinputsintothreelevelsusingunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilities;otherobservableinputs;andunobservableinputs.

1Jan2013 Disclosureforfairvaluemeasurementsusingunobservableinputsarerelativelyonerouscomparedtodisclosureforfairvaluemeasurementsusingobservableinputs.Consequently,theStandardmayincreasethedisclosuresforpublicsectorentitiesthathaveassetsmeasuredusingdepreciatedreplacementcost.

AASB119Employee Benefits InthisrevisedStandardfordefinedbenefitsuperannuationplans,thereisachangetothemethodologyinthecalculationofsuperannuationexpenses,inparticularthereisnowachangeinthesplitbetweensuperannuationinterestexpense(classifiedastransactions)andactuarialgainsandlosses(classifiedas‘Othereconomicflows–othermovementsinequity’)reportedonthecomprehensiveoperatingstatement.

1Jan2013 Not-for-profitentitiesarenotpermittedtoapplythisStandardpriortothemandatoryapplicationdate.

Whilethetotalsuperannuationexpenseisunchanged,therevisedmethodologyisexpectedtohaveanegativeimpactonthenetresultfromtransactionsofthegeneralgovernmentsectorandforthosefewvictorianpublicsectorentitiesthatreportsuperannuationdefinedbenefitplans.

AASB1053Application of Tiers of Australian Accounting Standards

ThisStandardestablishesadifferentialfinancialreportingframeworkconsistingoftwotiersofreportingrequirementsforpreparinggeneralpurposefinancialstatements.

Beginning1July2013

ThevictorianGovernmentiscurrentlyconsideringtheimpactsofReducedDisclosureRequirements(RDRs)forcertainpublicsectorentitiesandhasnotdecidedifRDRswillbeimplementedtothevictorianPublicSector.

2012-1Amendments to Australian Accounting Standards - Fair Value Measurement - Reduced Disclosure Requirements

[AASB 3, AASB 7, AASB 13, AASB 140 & AASB 141]

ThisamendingStandardprescribesthereduceddisclosurerequirementsinanumberofAustralianAccountingStandardsasaconsequenceoftheissuanceofAASB13FairvalueMeasurement.

1July2013 Asthevictorianwholeofgovernmentandthegeneralgovernment(GG)sectoraresubjecttoTier1reportingrequirements(refertoAASB1053 Application of Tiers of Australian Accounting Standards),thereduceddisclosurerequirementsincludedinAASB2012-1willnotaffectthefinancialreportingforvictorianwholeofgovernmentandGGsector.

Thereareanumberofnon-mandatorystandardsat30June2012notlistedwhichhavebeenassessedtohaveminimalornoimpacttotheTrust.



2. INCOME FROM TRANSACTIONS

2012$’000

2011$’000

(a) Sales of goods and services

Saleofgoods 38,174 36,101Renderingofservices 58,388 58,045Royalties 3,773 3,600

100,335 97,746

(b) InterestInterestonbankdeposits 1,501 643

1,501 643

(c) GrantsOtherpublicbodies 820 2,143

820 2,143

(d) Other incomeDelawareNorthSinkingFund 429 435TennisAustraliaSpecialPurposeAccount 540 567

969 1,002

ANNuAlREPORT2012 23


3. EXPENSES FROM TRANSACTIONS

2012$’000

2011$’000

(a) Cost of goods/sold distributedvenueHire 2,553 1,893Catering 32,414 28,220Other 183 296

35,150 30,409

(b) Purchase of services

Purchaseofservices 15,351 14,241

15,351 14,241

(c) Employee expenses

Definedcontributionsuperannuationexpense 1,293 1,317Terminationbenefits 17 38Salaries,wagesandlongserviceleave 15,995 15,858

17,305 17,213

(d) Interest expenseInterestongovernmentloans - 107

- 107

(e) DepreciationDepreciationofnon-currentassets 25,175 26,514

25,175 26,514

(f) Other operating expensesMaintenance 4,104 4,355Operatingleaseexpenses 264 251Purchaseofsuppliesandconsumables 867 935Baddebtsfromtransactions - 5Other 218 389

5,453 5,935



4. OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT

2012$’000

2011$’000

(a) Net gain/(loss) on non-financial assets

Netgain/(loss)ondisposalofpropertyplantandequipment (86) (77)

(includingintangibleassets)

(86) (77)

(b) Net gain/(loss) arising from revaluation of long service liability

Netgain/(loss)arisingfromrevaluationoflongserviceliability 240 (14)

240 (14)

5. CASH AND CASH EQUIVALENTS

2012$’000

2011$’000

Cashfloatsheld 42 43Cashonhand 36,412 18,289Termdeposits 2,000 2,000Bankdeposits(restricteduse) 1,565 1,453Cashheldintrust(notavailableforuse) 22,175 16,932

62,194 38,717

6. RECEIVABLES

2012$’000

2011$’000

CurrentContractualOtherreceivables(ii) 1,872 2,789

1,872 2,789StatutoryAmountowingfromvictorianGovernment(i) 364 276TaxesRecoverable 1,020 -Provisionfordoubtfuldebts(iii) (5) (5)

1,379 271

Total current receivables 3,251 3,060

(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.

ANNuAlREPORT2012 25


(a) Movement in the allowance for doubtful debts

2012$’000

2011$’000

Balanceatbeginningoffinancialyear 5 -Increase/(decrease)inallowancerecognisedinprofitorloss - 5Balance at end of financial year 5 5

(b) Ageing analysis of receivables PleaserefertoTable16.2inNote16forageinganalysisofreceivables.

(c) Nature and extent of risk arising from receivablesPleaserefertoNote16forthenatureandextentofcreditriskarisingfromreceivables.

7. PROPERTY, PLANT, EQUIPMENT AND INTANGIBLE ASSETS.

2012$’000

2011$’000

landatfairvalue2012(i) 387,600 440,525

387,600 440,525

Buildingsandimprovements(lastindependentvaluation2012(ii) 458,158 423,637

Buildingsatcost 58 292,619

lessaccumulateddepreciation (4) (248,207)

Writtendownvalue 458,212 468,049

Plantandequipment(lastindependentvaluation2012(ii) 93,074 102,285

Plantandequipmentatcost 15,821 49,870

lessaccumulateddepreciation (6,952) (67,812)

Writtendownvalue 101,943 84,343

Workinprogress 150,428 48,940

150,428 48,940

Totalproperty,plantandequipment 1,105,139 1,357,876

lessaccumulateddepreciation (6,956) (316,019)

Writtendownvalue 1,098,183 1,041,857

IntangibleAssets 898 697

lessaccumulatedamortisation (594) (501)

Writtendownvalue 304 196

Writtendownvalueproperty,plant,equipmentandintangibleassets 1,098,488 1,042,053



RECONCILIATIONSClassificationby‘Publicsafetyandenvironment’purposegroup–Movementsincarryingamounts

Land Buildings Plant &Equipment

Intangibles Work inProgress

Total

$’000 $’000 $’000 $’000 $’000 $’000

Year ended 30 June 2012

Carryingamountatstartofyear 440,525 468,049 84,343 196 48,940 1,042,053

Additions - - - - 109,680 109,680

Transfers - 756 7,235 202 (8,192) -

Disposals - 496 - - - 496

Revaluations/Impairments (52,925) 7,650 16,709 - - (28,565)

DepreciationExpense - (18,739) (6,343) - - (25,082)

AmortisationExpense - - - (93) - (93)Carryingamountatendofyear 387,600 458,212 101,943 304 150,428 1,098,488

Land Buildings Plant &Equipment

Intangibles Work inProgress

Total

$’000 $’000 $’000 $’000 $’000

Year ended 30 June 2011

Carryingamountatstartofyear 440,525 483,149 72,848 144 7,768 1,004,434

Additions - - - - 64,315 64,315

Transfers - 5,527 17,516 100 (23,143) -

Disposals - - (182) - - (182)

Revaluations/Impairments - - - - - -

DepreciationExpense - (20,628) (5,838) - - (26,466)

AmortisationExpense - - - (48) - (48)Carryingamountatendofyear 440,525 468,049 84,343 196 48,940 1,042,053

(i) Land at fair value June 30 2012landwaslastindependentlyrevaluedatJune302012asrequiredbytheFinancialManagementAct1994andwasconductedbythevaluer-Generalvictoria.Duetorestrictionsontheusageoftheland,anotionaldiscountof40%knownas‘CommunityServiceObligation’hasbeenappliedtotheunrestrictedlandvalue.

(ii) BuildingsandImprovementsandPlantandEquipmentatrevaluation2012Buildings,Plant&EquipmentwaslastindependentlyrevaluedatJune302012asrequiredbytheFinancialManagementAct1994andwasconductedbyNapier&Blakeleyonbehalfofthevaluer-Generalvictoriawhohaveprovidedreplacementcostanddepreciatedreplacementcostontheinspectedproperties(RodlaverArenaandsurroundinggrounds,HisenseArena,AAMIParkandWestpacCentre).WorksinProgressrelatingtotheredevelopmenthavenotbeenincludedintherevaluation.

(iii)CarryingamountatendofyearWorkinProgressatJune302012includes$140.5mrelatingtoStage1oftheMelbourneParkRedevelopment(EasternPlazaandMargaretCourtArenaredevelopment),whichisdueforcompletionin2015.

(iv) Accumulated DepreciationThereportingrequirementsofFRD103D (4.18) Non-Current Physical Assets requiresaccumulateddepreciationonrevaluedassetstobeeliminatedagainstthegrosscarryingamountoftheasset.Thereforetheaccumulateddepreciationinthecurrentyearrelatestoassetsatcostonly.TheaccumulateddepreciationfortheprioryearincludesrevaluedassetswhoseaccumulateddepreciationhasbeeneliminatedasrequiredbyFRD103D (4.18).

ANNuAlREPORT2012 27


8. OTHER ASSETS

2012$’000

2011$’000

CurrentPrepayments 191 392

191 392

9. PAYABLES

2012$’000

2011$’000

CurrentContractual

Tradecreditors(i) 692 946Otherpayables 2,706 513Accruedexpenses 9,843 4,392

13,241 5,851StatutoryTaxespayable 53 315

Total current payables 13,294 6,166

(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 payablesPleaserefertoTable16.3inNote16fortheaginganalysisofpayables.

(b) Nature and extent of risk arising from payables PleaserefertoNote16forthenatureandextentofrisksarisingfrompayables.

10. PROVISIONS

2012$’000

2011$’000

CurrentEmployeebenefits-unconditionalandexpectedtobesettledwithin12months(i) 1,497 1,443Employeebenefits-unconditionalandexpectedtobesettledafter12months(ii) 660 590

2,157 2,033

Non-currentEmployeebenefits-longserviceleave(ii) 462 365

Total Provisions 2,619 2,398

(i) The amounts disclosed are nominal amounts.(ii) The amounts disclosed are discounted to present values.


11. OTHER LIABILITIES

2012$’000

2011$’000

Incomereceivedinadvance 3,229 3,999Ticketsalesforfutureeventsheldintrust 22,175 16,932

25,404 20,931

12. LEASES

Disclosure of operating leases

Operating Lease Payables

Leasing arrangementsOperatingleasepayablesrelatetoplantandofficeequipmentwithleasetermsbetween1and7years.

Non-cancellable operating leasesTotalleaseexpenditurecontractedforatbalancedatebutnotprovidedforintheaccounts:

2012$’000

2011$’000

Payablenolaterthanoneyear 180 207laterthanoneyearandnotlaterthanfiveyears 355 499laterthanfiveyears - -

535 706

Operating Lease Receivables

Leasing arrangementsOperatingleasereceivablesrelateto12tenancies(13in2010-11)withintheTrust’sprecinctwithleasetermsbetween2and24years.

2012$’000

2011$’000

Receivablenolaterthanoneyear 4,005 3,836laterthanoneyearandnotlaterthanfiveyears 14,975 14,317laterthanfiveyears 47,119 24,735

66,099 42,888

13. COMMITMENTS FOR EXPENDITUREThefollowingcommitmentshavenotbeenrecognisedasliabilitiesinthefinancialstatements.AllamountsshowninthecommitmentsnotearenominalamountsinclusiveofGST.

(a) Capital expenditure commitmentsAtthedateofthisreport,theTrusthad$0.950millionincommitmentsforcapitalworks(2011:$0.950m).

(b) Lease commitmentsNon-cancellableoperatingleasecommitmentsaredisclosedinNote12tothefinancialstatements.

14. CONTINGENT LIABILITIESTheTrusthasnocontingentliabilitiesatthedateofthisreport.


ANNuAlREPORT2012 29


15. CONTINGENT ASSETSTheTrusthasnocontingentassetsatthedateofthisreport.

16. FINANCIAL INSTRUMENTS

(a) Significant accounting policiesDetailsofthesignificantaccountingpoliciesandmethodsadopted,includingthecriteriaforrecognition,thebasisofmeasurement,andthebasisonwhichincomeandexpensesarerecognised,withrespecttoeachclassoffinancialasset,financialliabilityandequityinstrumentaredisclosedinNote1tothefinancialstatements.

(b) Table 16.1: Categorisation of financial instruments

notes Carrying amount2012

$’000

Carrying amount2011

$’000

(i) Financial assets

Cashandcashequivalents 5 62,194 38,717

Receivables(i) 6 1,872 2,789

(ii) Financial liabilities

Payables(i) 9 13,241 5,851

Otherliabilities 11 25,404 20,931

(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)

(c) Credit risk exposure

CreditriskariseswhenthereisthepossibilityoftheTrust’sdebtorsdefaultingontheircontractualobligationsresultinginfinanciallosstotheTrust.TheTrustmeasurescreditriskonafairvaluebasisandmonitorsriskonaregularbasis.

TheTrustdoesnothaveanysignificantcreditriskexposuretoanysinglecounterpartyoranygroupofcounterpartieshavingsimilarcharacteristics.TheTrusthasadoptedapolicyofonlydealingwithcreditworthycounterpartiesandobtainingsufficientcollateralorcreditenhancementswhereappropriate,asameansofmitigatingtheriskoffinanciallossfromdefaults.Creditriskintradereceivablesismanagedbypaymenttermsofsevendaysandsounddebtcollectionpoliciesandprocedures.

Inaddition,theTrustdoesnotengageinanyhedgingforitsfinancialassets.Thecreditriskonliquidfundsislimitedbecausethecounterpartiesarebankswithhighcredit-ratingsassignedbyinternationalcredit-ratingagencies.

Provisionofimpairmentforfinancialassetsiscalculatedbasedonpastexperience,andcurrentandexpectedchangesinclientcreditratings.

ThecarryingamountoffinancialassetsrecordedintheFinancialReport,netofanyallowancesforlosses,representstheTrust’smaximumexposuretocreditriskwithouttakingaccountofthevalueofanycollateralobtained.

Financial assets that are either past due or impaired CurrentlytheTrustdoesnotholdanycollateralassecuritynorcreditenhancementsrelatingtoanyofitsfinancialassets.Asatthereportingdate,thereisnoeventtoindicatethatanyofthefinancialassetsareimpaired.

Therearenofinancialassetsthathavehadtheirtermsrenegotiatedsoastopreventthemfrombeingpastdueorimpairedandtheyarestatedatthecarryingamountsasindicated.Thefollowingtabledisclosestheageingonlyoffinancialassetsthatarepastduebutnotimpaired:



Table 16.2: Interest rate exposure and ageing analysis of financial assets

Carryingamount

Interest rate exposure

Not pastdue &

notimpaired

Past due but not impaired

Variableinterestrate

Non-interestbearing

Lessthan 1month

1-3months

3months- 1 year

1-5years

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

30 June 2012

Receivables(i) 1,872 - 1,872 1,635 116 58 62 1

1,872 - 1,872 1,635 116 58 62 1

30 June 2011

Receivables(i) 2,789 - 2,789 1,924 263 364 237 -

2,789 - 2,789 1,924 263 364 237 -

(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

liquidityriskariseswhentheTrustisunabletomeetitsfinancialobligationsastheyfalldue.TheTrustoperatesundertheGovernmentfairpaymentspolicyofsettlingfinancialobligationswithin30daysandintheeventofadispute,makespaymentswithin30daysfromthedateofresolution.Italsocontinuouslymanagesriskthroughmonitoringfuturecashflowsandmaturitiesplanningtoensureadequateholdingofhighqualityliquidassetsanddealinginhighlyliquidmarkets.

TheTrust’sexposuretoliquidityriskisdeemedinsignificantbasedonpriorperiods’dataandcurrentassessmentofrisk.Cashforunexpectedeventscouldbesourcedfromearlyliquidationofcashheldondepositifrequired.

Maximumexposuretoliquidityriskisthecarryingamountsoffinancialliabilities.

Table 16.3: Interest rate exposure and maturity analysis of financial liabilities

Carryingamount

Interest rate exposure

Nominalamount

Maturity dates (i)

Variableinterestrate

Non-interestbearing

Lessthan 1month

1-3months

3months- 1 year

1-5years

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

30 June 2012

Payables(ii) 13,241 - 13,241 13,241 13,232 3 6 -

Other 25,404 - 25,404 25,404 6,946 4,768 6,446 7,244

38,645 - 38,645 38,645 20,178 4,771 6,452 7,244

30 June 2011

Payables(ii) 5,851 - 5,851 5,851 5,647 102 102 -

Other 20,931 - 20,931 20,931 3,141 2,516 14,000 1,274

26,782 - 26,782 26,782 8,789 2,618 14,102 1,274

(i) 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).

ANNuAlREPORT2012 31


(e) Market risk

TheTrust’sexposurestomarketrisk,includinginterestrateriskandforeigncurrencyareinsignificant.Objectives,policiesandprocessesusedtomanageeachoftheserisksaredisclosedintheparagraphsbelow.

Foreign currency riskTheTrustisexposedtoinsignificantforeigncurrencyriskthroughitspayablesrelatingtopurchasesofsuppliesandconsumablesfromoverseas,duetothelimitedamountofpurchasesdenominatedinforeigncurrenciesandtheshorttimeframebetweencommitmentandsettlement.

TheTrustmanagesitsriskthroughcontinuousmonitoringofmovementsinexchangeratesagainsttheuSDollarandensuresavailabilityoffundsthroughcashflowplanningandmonitoring.Basedonpastandcurrentassessmentofeconomicoutlook,itisdeemedunnecessaryfortheTrusttoenterintoanyhedgingarrangementstomanagetherisk.

TheTrust’sexposuretoforeigncurrencyriskissetoutinTable16.4.

Interest rate riskTheTrustisexposedtoinsignificantinterestrateriskasitdoesnothaveanyloansandmoneyontermdepositiswithfinancialinstitutionswithhighcreditratings.

TheTrust’sexposuretointerestrateriskissetoutinTable16.4.

Table 16.4: Market risk

Foreign exchangerisk

Interest raterisk

Carryingamount

-10% Profit

10% Equity

-1%(100 basis points)

+1%(100 basis points)

Profit Equity Profit Equity

30 June 2012 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial Assets:

Cashandcashequivalents(i) 62,194 - - (622) (622) 622 622

30 June 2011

Financial Assets:

Cashandcashequivalents(i) 38,717 - - (387) (387) 387 387

(i) Sensitivity of cash and cash equivalents to a +1% movement in rates: ($62,194k x 0.055)-($62,194k x 0.045) = $621k. Similarly for a -1% movement in interest rate, impact = ($621k). Source: TCV Monthly Economic & Interest Rate Update – June 2012 (Forecast cash rate Jun-13: 3.25%, Actual cash rate Jun-12 3.50%).

(f) Fair value

TheTrustconsidersthatthecarryingamountoffinancialassetsandfinancialliabilitiesrecordedinthefinancialreporttobeafairapproximationoftheirfairvalues,becauseoftheshort-termnatureofthefinancialinstrumentsandtheexpectationthattheywillbepaidinfull.


17. CASH FLOW INFORMATION

(a) Reconciliation of cash and cash equivalents

2012$’000

2011$’000

Totalcashandcashequivalentsdisclosedinnote5 62,194 38,717Balance as per cash flow statement 62,194 38,717

(b) Reconciliation of net result for the period to net cash flows from operating activities

2012$’000

2011$’000

Operatingprofit/(deficit)forthefinancialyear 5,345 7,024

Add/(less) non-cash movements:

Depreciationandamortisationofnon-currentassets 25,175 26,515

Movements included in investing and financing activities:

Borrowingcostspaid - 107

Movements in assets and liabilities:

(Increase)/decreaseincurrentreceivables (191) 6,687

(Increase)/decreaseinothercurrentassets 202 (179)

(Decrease)/increaseincurrentpayables 7,128 (4,765)

(Decrease)/increaseincurrentprovisions 124 209

(Decrease)/increaseinothercurrentliabilities 4,473 (15,256)

(Decrease)/increaseinnon-currentprovisions 97 (15)

Net cash flows from/(used in) operating activities 42,353 20,327


ANNuAlREPORT2012 33

18. RESPONSIBLE PERSONSInaccordancewiththeMinisterialDirectionsissuedbytheMinisterforFinanceundertheFinancialManagementAct1994,thefollowingdisclosuresaremaderegardingresponsiblepersonsforthereportingperiod.

NamesThepersonswhoheldthepositionsofMinistersandAccountableOfficersfortheTrustareasfollows:

PremierTheHonourableTedBaillieu,Premierofvictoria

MinisterTheHonourableHughDelahunty,MinisterforSportandRecreation

TrustMrRussellCaplan(Chairperson)MsDeborahBeale(to26/05/12)MrJohnHowie(to24/03/12)MrTimJacobsMskateJoelMsElizabeth(Sue)Nattrass,AOMsDianaNicholsonMrGeoffreyPollard,AMMrRaymondSmithMrDavidStobartMrScottTannerTheHonourableJohnCain

Chief Executive OfficerMrBrianMorris

RemunerationTotalremuneration(includingincentivepayments)receivedorreceivablebytheAccountableOfficerinconnectionwiththemanagementoftheTrustduringthereportingperiodwasintherangeof$390,000-$399,999($390,000-$399,999in2010-11).

TrusteesdidnotreceiveanyremunerationfromtheTrustduringthefinancialyear.(2010-11:$0).

Related party transactionsCommercialdealingswereundertakenduringthereportingperiodwithTennisAustraliaandTennisvictoria,bothofwhichhaverepresentativesholdingpositionsasTrusteesontheMelbourne&OlympicParksTrust.

During2011-12,theTrustinvoicedTennisAustralia$26,107,031($25,534,055in2010-11)andasat30June2012,TennisAustraliaowedtheTrust$598,021($567,781at30June2011).MrScottTannerholdsapositionontheMelbourne&OlympicParksTrustandalsoholdsapositionatTennisAustralia(Director).TennisAustraliaisthepromoteroftheAustralianOpenevent,runsacourthirebusinessontheTrust’spremisesandrentsofficespacefromtheTrust.

During2011-12,theTrustinvoicedTennisvictoria$169,561($152,469in2010-11)andat30June2012,TennisvictoriaowedtheTrust$630($0at30June2011).MrDavidStobartholdsapositionontheMelbourne&OlympicParksTrustandalsoholdsthepositionofPresidentofTennisvictoria.TennisvictoriarentsofficespaceontheTrust’spremisesandpurchaserelatedservicesfromtheTrust.

Therearenootherreceivableamountsorloansoutstandinginrelationtorelatedparties,asat30June2012.



19. REMUNERATION OF EXECUTIVESThenumberofExecutiveOfficers,otherthantheAccountableOfficer,andtheirtotalremunerationduringthereportingperiodareshowninthefirsttwocolumnsinthetablebelowintheirrelevantincomebands.ThebaseremunerationofExecutiveOfficersisshowninthethirdcolumnandacomparativetotheprioryearinthefourthcolumn.Baseremunerationisexclusiveofbonuspayments,longserviceleavepayments,redundancypaymentsandretirementbenefits.

Income band Total Remuneration Base Remuneration

2012 2011 2012 2011No. No. No. No.

<$99,999 - - - 1$100,000-$109,999 1 2 1 3$110,000-$119,999 4 2 5 1$120,000-$129,999 3 - 2 1$130,000-$139,999 2 3 2 1$140,000-$149,999 2 1 2 2$150,000-$159,999 1 - 1 1$160,000-$169,999 1 2 1 -$190,000-$199,999 - 1 - 1$200,000-$209,999 1 1 1 1

$220,000-$229,999 1 - 1 -Total numbers 16 12 16 12

Total remuneration 2,243 1,699 2,233 1,619

20. REMUNERATION OF AUDITORS

AuditfeespaidorpayabletothevictorianAuditor-General’sOfficefortheauditoftheTrust’sfinancialreportandErnstandyoung(uptoDec-11)andkPMG(fromJan-12)fortheTrust’sinternalauditprogram:

2012$’000

2011$’000

Auditorreviewofthefinancialstatements 52 51Internalauditservices 83 84Othernon-auditservices - 18

135 153


ANNuAlREPORT2012 35


21. EMPLOYEE SUPERANNUATION

Superannuationcontributionsforthereportingperiodareincludedaspartofemployeebenefitsandon-costsinthecomprehensiveoperatingstatementoftheTrust.

Thenameanddetailsofthemajoremployeesuperannuationfundsandcontributions(above$10,000)madebytheTrustduringthereportingperiodareasfollows:

2012$’000

2011$’000

AustralianSuper 918 959NavigatorSuperSolutions 139 165Hostplus 68 74vicSuper 37 31RetailEmployeesSuperannuation 26 26ColonialFirstStateSuper 18 17MummeFreeburnExecutiveSuperFund 18 17CombinedFundPtyltd 16 20AMPSignatureSuper 14 2universalSuperScheme 14 14C+BuS 14 15GenerationsPersonalSuper 13 14

CareSuper 12 2

Others 138 148

TOTAL 1,445 1,504

22. SUBSEQUENT EVENTS

TheTrusthasnomaterialorsignificanteventsoccurringafterthereportingdate.

23. GLOSSARY OF TERMS

Cash and cash equivalentsCashandcashequivalentsispettycash,cashfloats,depositsinbankaccountsandshort-termdeposits(upto6months).

Comprehensive resultTotalcomprehensiveresultisthechangeinequityfortheperiodotherthanchangesarisingfromtransactionswithowners.Itistheaggregateofnetresultandothernon-ownerchangesinequity.

CommitmentsCommitmentsincludethoseoperating,capitalandotheroutsourcingcommitmentsarisingfromnoncancellablecontractualorstatutorysources.

Delaware North Australia Sinking FundReferstoanaccountmanagedjointlybytheTrustandtheTrust’scaterer(DelawareNorthAustralia)andisusedforthereplacementorimprovementofcateringequipmentorinfrastructure.

Employee benefits expenseEmployeebenefitsexpensesincludeallcostsrelatedtoemploymentincludingwagesandsalaries,leaveentitlements,redundancypayments,definedbenefitssuperannuationplans,anddefinedcontributionsuperannuationplans.


Financial assetAfinancialassetisanyassetthatis:

(a) cash;

(b) anequityinstrumentofanotherentity;

(c) acontractualorstatutoryright:

• toreceivecashoranotherfinancialassetfromanotherentity;or

• toexchangefinancialassetsorfinancialliabilitieswithanotherentityunderconditionsthatarepotentiallyfavourabletotheentity;or

(d) acontractthatwillormaybesettledintheentity’sownequityinstrumentsandis:

• anonderivativeforwhichtheentityisormaybeobligedtoreceiveavariablenumberoftheentity’sownequityinstruments;or

• aderivativethatwillormaybesettledotherthanbytheexchangeofafixedamountofcashoranotherfinancialassetforafixednumberoftheentity’sownequityinstruments.

Financial instrumentAfinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.Financialassetsorliabilitiesthatarenotcontractual(suchasstatutoryreceivablesorpayablesthatariseasaresultofstatutoryrequirementsimposedbygovernments)arenotfinancialinstruments.

Financial liabilityAfinancialliabilityisanyliabilitythatis:

(a) Acontractualorstatutoryobligation:(i) Todelivercashoranotherfinancialassettoanotherentity;or(ii) Toexchangefinancialassetsorfinancialliabilitieswithanotherentityunderconditionsthatare

potentiallyunfavourabletotheentity;or(b) Acontractthatwillormaybesettledintheentity’sownequityinstrumentsandis:

(i) Anon-derivativeforwhichtheentityisormaybeobligedtodeliveravariablenumberoftheentity’sownequityinstruments;or

(ii) Aderivativethatwillormaybesettledotherthanbytheexchangeofafixedamountofcashoranotherfinancialassetforafixednumberoftheentity’sownequityinstruments.Forthispurposetheentity’sownequityinstrumentsdonotincludeinstrumentsthatarethemselvescontractsforthefuturereceiptordeliveryoftheentity’sownequityinstruments.

Financial statementsDependingonthecontextofthesentencewheretheterm‘financialstatements’isused,itmayincludeonlythemainfinancialstatements(i.e.comprehensiveoperatingstatement,balancesheet,cashflowstatements,andstatementofchangesinequity);oritmayalsobeusedtoreplacetheoldterm‘financialreport’undertherevisedAASB101(September2007),whichmeansitmayincludethemainfinancialstatementsandthenotes.

GrantsGrantscanbepaidasgeneralpurposegrantswhichrefertograntsthatarenotsubjecttoconditionsregardingtheiruse.Alternatively,theymaybepaidasspecificpurposegrantswhicharepaidforaparticularpurposeand/orhaveconditionsattachedregardingtheiruse.


ANNuAlREPORT2012 37

Intangible assetsIntangibleassetsrepresentidentifiablenon-monetaryassetswithoutphysicalsubstance.

Interest expenseCostsincurredinconnectionwiththeborrowingoffundsinterestexpensesincludeinterestonbankoverdraftsandshorttermandlongtermborrowings,amortisationofdiscountsorpremiumsrelatingtoborrowings,interestcomponentoffinanceleasesrepayments,andtheincreaseinfinancialliabilitiesandnonemployeeprovisionsduetotheunwindingofdiscountstoreflectthepassageoftime.

Interest incomeInterestincomeincludesinterestreceivedonbanktermdeposits,interestfrominvestmentsandotherinterestreceived.

Net acquisition of non-financial assets (from transactions)Purchases(andotheracquisitions)ofnonfinancialassetslesssales(ordisposals)ofnonfinancialassetslessdepreciationpluschangesininventoriesandothermovementsinnonfinancialassets.Itincludesonlythoseincreasesordecreasesinnonfinancialassetsresultingfromtransactionsandthereforeexcludeswriteoffs,impairmentwritedownsandrevaluations.

Net resultNetresultisameasureoffinancialperformanceoftheoperationsfortheperiod.Itisthenetresultofitemsofincome,gainsandexpenses(includinglosses)recognisedfortheperiod,excludingthosethatareclassifiedasothernonownerchangesinequity.

Net result from transactions (net operating balance)Netresultfromtransactionsornetoperatingbalanceisakeyfiscalaggregateandisincomefromtransactionsminusexpensesfromtransactions.Itisasummarymeasureoftheongoingsustainabilityofoperations.Itexcludesgainsandlossesresultingfromchangesinpricelevelsandotherchangesinthevolumeofassets.Itisthecomponentofthechangeinnetworththatisduetotransactions.

Non-financial assetsNon-financialassetsareallassetsthatarenot‘financialassets’.

Other economic flowsOthereconomicflowsarechangesinthevolumeorvalueofanassetorliabilitythatdonotresultfromtransactions.Itincludesgainsandlossesfromdisposals,revaluationsandimpairmentsofnoncurrentphysicalandintangibleassets;actuarialgainsandlossesarisingfromdefinedbenefitsuperannuationplans;fairvaluechangesoffinancialinstrumentsandagriculturalassets;anddepletionofnaturalassets(nonproduced)fromtheiruseorremoval.Insimpleterms,othereconomicflowsarechangesarisingfrommarketremeasurements.

PayablesIncludesshortandlongtermtradedebtandaccountspayable,grants,taxesandinterestpayable.

ReceivablesIncludesamountsowingfromgovernmentthroughappropriationreceivable,shortandlongtermtradecreditandaccountsreceivable,accruedinvestmentincome,grants,taxesandinterestreceivable.

Sales of goods and servicesReferstorevenuefromdirectprovisionofgoodsandservicesandincludesfeesandchargesforservicesrenderedandsalesofgoodsandservices.

Tennis Australia Special Purpose AccountReferstoaseparatetrustaccountestablishedbyMOPTfortennis-relatedcapitalimprovementstoMelbournePark.

TransactionsTransactionsarethoseeconomicflowsthatinteractbetweentwoentitiesbymutualagreement.



CERTIFICATIONJ

InaccordancewitharesolutionofthemembersoftheMelbourneandOlympicParksTrustandinouropinion:

(a) theaccompanyingfinancialreportoftheTrust,comprisingoperatingstatement,balancesheet,cashflowstatementandstatementofchangesinequityreadinconjunctionwiththenotestheretopresentfairlythefinancialoperationsoftheTrustfortheyearended30June2012andtheStateofAffairsoftheTrustonthatdate;

(b) theseaccountshavebeenpreparedinaccordancewiththeFinancialManagementAct1994,AustralianAccountingStandardsandothermandatoryprofessionalreportingrequirements;and

(c) atthedateofthisstatementwearenotawareofanycircumstanceswhichwouldrenderanyparticularsincludedinthestatementtobemisleadingorinaccurate.

RussellCaplanMemberofResponsibleBodyChairmanMelbourneandOlympicParksTrust

BrianMorrisAccountableOfficerChiefExecutiveOfficerMelbourneandOlympicParksTrust

TravisMardlingChiefFinancialOfficerMelbourneandOlympicParksTrust

Melbourne23August2012

ANNuAlREPORT2012 39

INDEPENDENTAuDITREPORT


INDEPENDENTAuDITREPORT

ANNuAlREPORT2012 41

Competitive Neutrality Policy complianceTheTrustregularlyreviewswhetheritsactivitiesaresubjecttotherequirementsoftheNationalCompetitionPolicy,includingcompliancewiththerequirementsofthepolicystatement‘CompetitiveNeutralityPolicyvictoria’,andtakesnecessaryactiontoimplementcompetitiveneutralitymeasureswhererequired.

Statement of compliance with the Building Act 1993.

TheTrustcomplieswiththerelevantguidelines,pursuanttoSection220oftheBuilding Act 1993.

Implementation of the Victorian Industry Participation PolicyInOctober2003,thevictorianParliamentpassedthevictorianIndustryParticipation Policy Act 2003whichrequiredpublicbodiesanddepartmentstoreportontheimplementationofthevictorianIndustryParticipationPolicy(vIPP).TheTrustisrequiredtoapplythevIPPwhereTrustfundingexceeds$3millioninmetropolitanMelbourneand$1millioninregionalvictoria.TheTrustcommencedoneprojectduring2011/12towhichthevIPPapplies,totalling$6.3millioninmetropolitanMelbourne.TheoutcomesexpectedfromtheimplementationofvIPPtothisprojectare:

• localcontentof40%;

• 15fulltimeequivalentjobs,includingthecreationof2newjobsandtheretentionof13existingjobs;

• 1existingapprentice/traineeutilised;and

• Expectedbenefitsincludedevelopingandmaintainingaskilledworkforcefortheconstructionindustryaswellasthepotentialtoinvestigateinnovations,researchanddevelopmentoftechnologybyalternativepavementdesignmeans.

Financial and other information retained by the accountable officerRelevantinformationdetailedinFinancialReportingDirection(FRD)22B‘StandardDisclosuresintheReportofOperations’undertheFinancialManagementAct1994Section3isretainedbytheTrust’sAccountableOfficerandisavailableonrequest,subjecttotheFreedom of Information Act 1982.

Whistleblowers Protection Act 2001ThissectionofthereportcontainsinformationthatisrequiredtobepublishedannuallyundertheWhistleblowers Protection Act2001Section104.

TheTrusthasestablishedwrittenproceduresforhandlingdisclosuresmadeundertheWhistleblowers Protection Act 2001inaccordancewiththeguidelinesissuedbytheOmbudsmanvictoria.AfullcopyoftheprocedureisavailableinMelbourne&OlympicParkswebsitehttp://www.mopt.com.au.

Contact:GeneralManagerPeopleandCulture

Theproceduresincludedetailedinformationabout;

• rolesandresponsibilitiesoftheDisclosureOfficerandtheDisclosureCoordinator;

• confidentialityprovisions;

• proceduresfortheconductofinvestigations;

• actiontobetakenafteraninvestigation;

• managingthewelfareofthewhistleblower;

• managementofthepersonagainstwhomadisclosurehasbeenmade.

a) ThecurrentproceduresestablishedbyMelbourneandOlympicParksTrustunderPart6oftheActcanbefoundonwww.mopt.com.au;

b) TheTrusthasreceivednodisclosuresduringtheyear.

c) TheTrusthasnotreferredanydisclosurestotheOmbudsmanfordeterminationastowhethertheyarepublicinterestdisclosuresduringtheyear;

d) TheOmbudsmanhasnotreferredanydisclosedmatterstotheTrustduringtheyear;

e) TheTrusthasnotreferredanydisclosedmatterstotheOmbudsmantoinvestigateduringtheyear;

f) TheOmbudsmanhasnottakenoveranyinvestigationofdisclosedmattersfromtheTrustduringtheyear;

g) TheTrusthasmadenorequestundersection74oftheActtotheOmbudsmantoinvestigatedisclosedmattersduringtheyear;

h) TheTrusthasnotdeclinedtoinvestigateadisclosedmatterduringtheyear;

i) Therehavebeennodisclosedmattersthatweresubstantiatedoninvestigation.Therehasbeennoactionrequiredtobeundertakenarisingfromaninvestigation,sincetherehavebeennoinvestigations;and

j) TheOmbudsmanhasnotmadeanyrecommendationsundertheActthatrelatestotheTrust.

Disability Act (2006)MOPTiscommittedtoprovidingequitable,dignifiedaccesstogoodsandservicesandtopremisesusedbythepublic.AnumberofinitiativeshavebeenundertakenoverthepastthreeyearstoensurecompliancewiththeActandworkiscurrentlyunderwaytodevelopanewthreeyearplanwhichtakesintoaccountthemanychangesoccurringaroundtheprecinct.

ADMINISTRATIvEREPORTINGREQuIREMENTS



Occupational Health and Safety (OH&S)InDecember2011,MOPTreceivedcertificationofitsSafetyManagementSystemtoAS4801level.Thiscertificationisindicativeofanorganisationthathasworkpracticesandproceduresthatareequaltoorexceedthenationalcertificationstandard.MOPTiscommittedtoacontinuousimprovementapproachtoitsSafetyManagementSystem.

Theimportanceoftoolboxmeetingscontinuestobereinforcedwith127meetingsheldacrosstheprecinctduringthefinancialyear.Inaddition,285workplaceinspectionswerecarriedoutwhichensuresaproactiveapproachtosafetyisadopted.WorksafeWeekcontinuestobeahighlight,raisingtheprofileofsafetyacrosstheorganisationandthenewEmployeeWellbeingProgramhasbeenwellutilisedthroughouttheyear.Committeemeetingattendanceshavebeenexcellentandthenatureofdiscussionsimprovedsignificantly.

AfullcopyoftheTrust’sOHSpolicyisavailableonMOPT’swebsite:http://www.mopt.com.au.

Statement of Workforce DataMelbourneandOlympicParkTrustiscommittedtotwocodesissuedbythePublicSectorStandardsCommissioner(PSSC),beingtheDirectorCodesofConductandGuidanceNotesandtheCodeofConductofvictorianPublicSectoremployees.

EnterpriseBasedAgreementsareinplaceandtheTrustcontinuesitsongoingcommitmenttothePSSCstandardsonequalopportunity,fairandreasonabletreatment,meritinemploymentandreasonableavenuesofredress.

Melbourne&OlympicParksTrustemployed107fulltimeandparttimestaffasat30June2012(2011:106).ThenumberofFullTimeEquivalent(FTE)staffat30June2012was103(2011:101).Thenumberoffixedtermandcasualemployeesat30June2012was1,091(2010:1,106)andalargenumberofcontractorsprovidedbyourkeypartnersalsocontributetoMOPT’sworkforce(ACG,CapricornStagesandRigging,DelawareNorthCompanies,MichaelO’BrienCateringandTicketek).

Thebreakdownofstaffisasfollows;

Employees (Headcount)

Full time

(Headcount)

Part time

(Headcount)

FTE Fixed Term & Casual

Employees

June2012 107 88 19 103 1,091

June2011 106 88 18 101 1,106

June 2012 June 2011

Employee (Headcount)


Employees

Employees (Headcount)


Employees

Accountableofficer 1 1 - 1 1 -

Executiveofficers(remunerationgreaterthan$100k) 15 15 - 14 14 -

Administrationstaff(remunerationlessthan$100k) 91 87 1,091 91 86 1,106

Males 58 57 549 58 57 547

Females 49 46 542 48 44 559

Freedom of information TheFreedom of Information Act 1982allowsthepublicarightofaccesstodocumentsheldbyMelbourneandOlympicParksTrust.Duringthe12monthstoJune2012,theTrustreceived1FreedomofInformationrequest.Theprocessingofthisrequestwasinprogressasat30June2012.

TheChiefFinancialOfficeristhecontactofficerinrelationtoallFreedomofInformationrequests.AccesstodocumentsmaybeobtainedthroughwrittenrequesttotheChiefFinancialOfficer,addressedasfollows:

FreedomofInformationMelbourneandOlympicParksTrustGPOBox4611,MelbournevIC3001

[email protected]. Accesschargesmayalsoapplyoncedocumentshavebeenprocessedandadecisiononaccessismade;forexamplephotocopyingandsearchandretrievalcharges.

MOPT Workforce Data

ANNuAlREPORT2012 43


Consultants

Detailsofconsultanciesover$10,000

Consultant Purpose of consultancy Start date End date Total expendi-ture 2011/12 (excluding GST)

Future commitments

TheMaytrixGroup

ExpertadviceinrelationtothecateringtenderfortheBenchcafe

Sept2011 Feb2012 $20,772 Nil

1stExecutive FunctionCentreandSuperboxsalesprocessadvice

Nov2011 Feb2012 $19,172 Nil

DavidPayne&Associates

ExpertadviceinrelationtothecateringtenderforMelbournePark

Jan2012 Mar2013 $40,909 $25,000

DavidPayne&Associates

One-offreviewwithrecommendationsforthestructureofthecleaningdepartment

Dec2011 May2012 $13,636 Nil

Details of consultancies less than $10,000

Number:4

TotalAmount: $6,384(excludingGST)

Gosch’s PaddockWearepleasedtoreportthatGosch’sPaddockwasnotclosedtothepublicatallthroughouttheyear.

Risk Attestation StatementI,ChairoftheTrust,certifythatMelbourne&OlympicParksTrusthasriskmanagementprocessesinplaceconsistentwiththeAustralian/NewZealandRiskManagementStandard(AS/NZSISO31000:2009)andaninternalcontrolsystemisinplacethatenablestheexecutivetounderstand,manageandsatisfactorilycontrolriskexposures.TheTrustverifiesthisassuranceandthattheriskprofileofMelbourne&OlympicParksTrusthasbeencriticallyreviewedwithinthelast12months.

RussellCaplanChairmanMelbourneandOlympicParksTrust


DISClOSuREINDEx

TheAnnualReportofMelbourne&OlympicParksTrustispreparedinaccordancewithallvictorianlegislation.Thisindexhasbeenpreparedtofacilitateidentificationofcompliancewithstatutorydisclosurerequirements.

Ministerial Directions

Charter and PurposeFRD22C MannerofestablishmentandtherelevantMinister 4FRD22C Objectives,functions,powersandduties 4FRD22C Natureandrangeofservicesprovided 4

Management and structureFRD22C OrganisationalStructure 5

Financial and other informationFRD10 Disclosureindex 45FRD15B Executiveofficerdisclosures 35FRD22C ApplicationandoperationofFreedomofInformationAct1982 43FRD22C ApplicationandoperationoftheWhistleblowers

ProtectionAct2001 42FRD22C Compliancewithbuildingandmaintenanceprovisionof

BuildingAct1993 42FRD22C Detailsofconsultanciesover$10,000 44FRD22C Detailsofconsultanciesunder$10,000 44FRD22C Majorchangesorfactorsaffectingperformance 12FRD22C OccupationalHealthandSafety 43SD4.5.5 RiskAttestationStatement 44FRD22C Statementofavailabilityofotherinformation 42FRD22C StatementonCompetitiveNeutralityPolicy 42FRD22C Summaryoffinancialresultsfortheyear 12FRD22C Summaryofmajoractivities 9-10FRD22C Subsequentevents N/AFRD25A victorianIndustryParticipationPolicydisclosures 42FRD29 StatementonWorkforceData 43

Financial Statements required under Part 7 of the FMASD4.2(a) FinancialStatements 13-41SD4.2(b) BalanceSheet 15SD4.2(b) CashflowStatement 17SD4.2(b) ComprehensiveOperatingStatement 14SD4.2(b) StatementofChangesinEquity 16SD4.2(c) Accountableofficer’sdeclaration 39SD4.2(c) CompliancewithAustralianaccountingstandardsandotherauthoritative

pronouncement18

SD4.2(c) CompliancewithMinisterialDirections 39SD4.2(d) Roundingofamounts 21

Other disclosures in notes to the financial statementsFRD9A Departmentaldisclosureofadministeredassetsandliabilities N/AFRD11 Disclosureofex-gratiapayments N/AFRD13 Disclosureofparliamentaryappropriations N/AFRD21B Responsiblepersonandexecutiveofficerdisclosures 34,35

LegislationFreedomofInformationAct1982BuildingAct1993FinancialManagementAct1994Crownland(Reserves)Act1978MelbourneandOlympicParksAct1985

AuditAct1994WhistleblowersProtectionAct2001victorianIndustryParticipationPolicyAct2003DisabilityAct2006

ANNuAlREPORT2012 45

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© State of Victoria, Melbourne & Olympic Parks Trust 2012. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

This report has been printed on 100% post consumer recycled stock.

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