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NORTH EAST VICTORIAN REGIONAL WASTE MANAGEMENT GROUP

TRADING AS

13th

ANNUAL REPORT

FOR THE YEAR ENDING JUNE 2010

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TABLE OF CONTENTS

TABLE OF CONTENTS.......................................................................................................................................... 21 EXECUTIVE SUMMARY ........................................................................................................................... 3

1.1 From the Chairman................................................................................................................................ 31.2 From the Executive Officer .................................................................................................................... 4

2 ESTABLISHMENT/ RESPONSIBLE MINISTER/ ROLE/ FUNCTIONS..................................................... 52.1 Manner of Establishment and the Relevant Ministers ............................................................................ 52.2 NevRwaste Functions, Powers and Duties ............................................................................................ 52.3 Organisational Structure ........................................................................................................................ 72.4 Nature and Range of Services Provision ............................................................................................... 8

3 Management & Governance...................................................................................................................... 83.1 Directors’ Roles...................................................................................................................................... 83.2 Officers of the Board .............................................................................................................................. 93.3 Sub Committees .................................................................................................................................. 103.4 Statement of Workforce Data............................................................................................................... 103.5 Management team............................................................................................................................... 11

4 OPERATIONS AND FINANCIALS........................................................................................................... 114.1 Performance against Operational and Budgetary Objectives .............................................................. 114.2 Five Year Financial Summary.............................................................................................................. 124.3 Strategic Direction and Authority Development ................................................................................... 12

5 Implementation of 2009-2010 business plan ........................................................................................... 135.1 Municipal Services and Facilities Program .......................................................................................... 135.2 Community Engagement Program....................................................................................................... 145.3 Strategy and Performance Monitoring ................................................................................................. 145.4 Organisational Systems and Operations Program............................................................................... 155.5 Public Affairs and Communications Program....................................................................................... 165.6 Performance against Budget ............................................................................................................... 165.7 Significant Changes in Financial Position during the Year................................................................... 175.8 Consultancies Undertaken During the Reporting Period Over $100,000 ............................................. 175.9 Consultancies Undertaken During the Reporting Period Under $100,000 ........................................... 175.10 Major Contracts.................................................................................................................................... 175.11 Major Changes or Factors Affecting Performance ............................................................................... 175.12 Subsequent Events.............................................................................................................................. 17

6 DISCLOSURES AND LEGISLATIVE COMPLIANCE.............................................................................. 186.1 Victorian Industry Participation Policy Disclosures............................................................................... 186.2 Information privacy............................................................................................................................... 186.3 Merit and Equity ................................................................................................................................... 186.4 Application and Operation of Freedom of Information Act 1982 .......................................................... 186.5 Whistleblowers Protection.................................................................................................................... 196.6 Compliance with Building and Maintenance Provisions of the Building Act 1993 ................................ 196.7 National Competition Policy ................................................................................................................. 196.8 Occupational Health and Safety .......................................................................................................... 206.9 Office Based Environmental Impacts ................................................................................................... 206.10 Cultural Diversity - Aged, Youth, Koories, NESb ................................................................................. 206.11 Availability of other Information............................................................................................................ 206.12 Disclosure Index .................................................................................................................................. 22

7 Risk Management attestation .................................................................................................................. 238 FINANCIAL REPORT.............................................................................................................................. 24

8.1 Accountable Officers Declaration......................................................................................................... 248.2 Report on the Utilisation of Landfill Levy Funds Received................................................................... 24

8.3 Audited Financial Statements and Notes.................................................................................................25 8.4 Independent Auditors Report...................................................................................................................36

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1 EXECUTIVE SUMMARY

1.1 From the Chairman

The last twelve months has seen NevRwaste go through a number of changes, however we have still managed to work with our members to produce valuable outcomes which progress the region Towards Zero Waste.

During this time NevRwaste has continued to build and strengthen partnerships with other statutory authorities, state agencies, local government and the broader community.

We have continued to work on a cross regional basis with the Goulburn Valley Regional Waste Management Group on television advertising encouraging the diversion of household recyclables from garbage bins. We are proud to say that this program was awarded a National award for Innovation in Local Government at the 2010 Coffs Harbour Waste Conference, taking the prize from 70 national entries.

In partnership with other regional waste management groups, councils and industry, NevRwaste has finally established what appears to be a long term recycling solution to agricultural silage wrap. NevRwaste will continue to support the promotion and involvement of the agricultural community in this resource recovery opportunity.

We have strengthened our relationships with the local community through the training of 32 community leaders as waste advocates through an innovative training program call the North East Victorian Environment Leaders course.

We also continue to operate a partnership program with the North East Catchment Management Authority and North East Water providing schools with access to environmental curriculum resources, training and information. This project resulted in face to face contact with over 22 schools and 508 students throughout the North East in 2009-2010 as well as many other positive outcomes.

Close relationships have also been maintained with state agencies such as Sustainability Victoria and DSE and our council and resort management board membership.

These programs are just a few of the many achievements that are outlined within this plan. In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for the North East Victorian Regional Waste Management Group (NevRwaste) for the year ending 30 June 2010.

Peter Graham, OAM

Chairperson

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1.2 From the Executive Officer

During the 2009-2010 financial years NevRwaste has continued to work to bring effect to state waste minimisation goals on a regional level.

We would like to thank our members, their officers and our partner organisations for their strong and continued support of NevRwaste during 2009-2010.

Through these relationships NevRwaste has worked to deliver a comprehensive set of programs aimed at increasing the resource efficiency of North East Victoria. The Chairman’s summary has highlighted some of NevRwaste key partnership projects, some other key achievements include:

A kerbside municipal audit of 390 household bins

A comprehensive research program into the effectiveness of behaviour change tools in changing householder behaviours that lead to food waste

The development of a flexible standard tender package for future collaborative procurement between members

Provided funding through the Sustainability Fund to assist members undertake the rehabilitation of two closed sites in North East Victoria

In addition to these key projects NevRwaste continues to maintain effective systems for the governance of the organisation. These systems include an active audit committee who meet 5 times per annum providing guidance to the Board on risk management and governance issues.

A more detailed explanation of the outcomes achieved in 2009-2010 can be found within this report.

NevRwaste officers are looking forward to building onto the great partnerships we have developed in 2009-2010 and implementing the state’s policies and strategies at a regional and local level in 2010-2011.

Brooke Hermans

Executive Officer

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2 ESTABLISHMENT/ RESPONSIBLE MINISTER/ ROLE/ FUNCTIONS

2.1 Manner of Establishment and the Relevant Ministers

The North East Victorian Regional Waste Management Group is a Statutory Agency, established under the section 50F of the Environment Protection Act 1970. The Responsible Minister for the financial year 1/07/2008 – 30/06/2009 was the Honourable Gavin Jennings, Minister for Environment and Climate Change.

Objectives

In partnership with its members NevRwaste develops regional plans to give effect to state-wide policies, strategies and programs at a local level.

NevRwaste’s members play a key role in the provision of infrastructure and community programs, and in implementing the regional plans developed by NevRwaste.

In their waste planning and management role, NevRwaste’s members add value to regional initiatives through the operation of regionally facilitated contracts, service delivery, and provision of infrastructure and facilities. They also assist NevRwaste to deliver education programs through events, schools, and organisations in local communities.

NEVRWASTE’S MISSION/VISION

NevRwaste’s Vision: Our community practicing more efficient use of materials in their lifestyles & activities.

NevRwaste’s Mission: Work with our community to instil a growing awareness, capacity and passion for materials efficiency in their lifestyles and activities.

NEVRWASTE’S GOALS

Strategic planning and evaluation: Regional waste programs planned and evaluated to pursue state and regional priorities in the context of community needs, expectations and resources.

Infrastructure and facilities: The regional community having access to best practice waste management infrastructure and services.

Community awareness and involvement: The regional community possessing extensive knowledge of the range of waste management infrastructure and services available to them and participating in waste reduction activities.

2.2 NevRwaste Functions, Powers and Duties

NevRwaste’s functions, according to section 50H of the Environment Protection Act 1970, are to:

(a) plan for the management of municipal waste in its region, working in partnership with the councils in its region;

(b) co-ordinate the activities of its members in its region to give effect in its region to State policies, strategies and programs relating to waste; and,

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(c) facilitate and foster best practices in waste management.

(1A) In carrying out its functions the Group is to:

(a) plan for municipal waste management in its region including-(i) preparing and keeping up to date a regional waste management plan;(ii) implementing and promoting the plan;(iii) setting performance targets for municipal waste reduction programs;(iv) developing, implementing, supporting and promoting municipal waste reduction and recycling programs;

(b) co-ordinate the waste management activities of its members including-(i) introducing measures that lead to conformity of standards for waste reduction, waste management and litter prevention and control between its members;(ii) investigating and advising on landfill disposal costs and charges in the region;(iii) encouraging the training of staff involved in municipal waste management;

(c) promote, commission and undertake research into waste management;(d) advise its members on best practices in municipal waste management;(e) promote improved waste management technologies;(f) promote and co-ordinate relevant community education in its region; and(g) to mediate disputes between its members.

(1) A regional waste management group may do anything that is necessary or convenient to enable it to perform its functions.

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2.3 Organisational Structure

NORTH EAST VICTORIAN REGIONAL WASTE MANAGEMENT GROUP

BOARD OF MANAGEMENTIndigo: Peter Graham O.A.M (Chair)

Falls Creek: Ben Derrick (Deputy Chair)Alpine: Daryl Pearce

Benalla: Bill HillTowong: Phillip CoyshMansfield: Jeff Whyte

Wodonga: Lisa MahoodWangaratta: Anthony Griffiths/Ron Webb

Mt Buller- Stirling: Louise PerrinMt Hotham: Nicole Epema

PROJECT SUB-COMMITTEES (CHAIRS) EXECUTIVE OFFICERS EXECUTIVE COMMITTEEAudit Committee: (Frank Smith) Brooke Hermans (1/04/2010 to 30/06/2010)

Kevin Hince (1/07/2009 to 31/03/2010)Indigo: Peter Graham

Falls Creek: Ben DerrickOfficer Representative:

Dimitri Scordalides

REGIONAL EDUCATION OFFICERElsie Nielsen (1/07/2009 – 19/04/2010)Kim Mueller (19/04/2010 – 30/06/2010)

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2.4 Nature and Range of Services Provision

NevRwaste develops and applies regional strategies and initiatives in the context of State policy, through the State’s regional waste management framework under the Environment Protection Act 1970. As such NevRwaste plans for municipal waste management at a regional level and facilitates and fosters best practice in waste management within the North East Victorian Waste Management Region, comprising the member municipalities of Alpine, Indigo, Mansfield, Towong, Benalla and Wangaratta and Wodonga.

Under enabling legislation in the Alpine Resorts Management Act 1997, Falls Creek, Mt Hotham and Mt Buller-Mt Stirling Alpine Resort Management Boards have taken the opportunity to initiate resort specific municipal waste initiatives, through membership of NevRwaste.

NevRwaste prepares and implements environmental (waste management) plans and reports, as part of its core functions and statutory obligations. In doing so NevRwaste works in partnership with other government agencies to promote and to maintain the principles of sustainability.

NevRwaste articulates its long-term strategic position on the environment through the regional waste management plan, which is implemented through the business plan and reported on through this annual report.

More specifically NevRwaste operates in partnership with the Environment Protection Authority (EPA), Sustainability Victoria and local authorities to implement state policies and strategies, relating to solid waste management and resource efficiency, in a regional and local setting.

NevRwaste has a primary role in setting the regional strategic context for current and future waste management and resource recovery facilities.

The strategic regional context informs statutory planning processes undertaken by Local Government, EPA, and the State Government around the siting and establishment of waste management and resource recovery facilities.

3 MANAGEMENT & GOVERNANCE

3.1 Directors’ Roles

NevRwaste Directors undertake a number of responsibilities including:

(a) approving, where appropriate, policy and other recommendations received from the Group, its sub-committees and staff

(b) monitoring all Group policies; reviewing and recommending changes to the Group’s internal strategies and policies manual

(c) reviewing the Board’s structure, approving changes, and preparing amendments (d) participating in the development of the Group’s business plan, waste management plan,

constitution and annual report

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(e) considering and approving the Group’s annual budget(f) approving the hiring and release of the Executive Officer(g) assisting in developing and maintaining positive relations among the Board, committees,

staff, and the community to enhance the Group’s mission3.2 Officers of the Board

NevRwaste’s Board is composed of ten directors representing each of the ten members. It met on five occasions in the 2009/2010 financial year. Each Director’s term of appointment and attendance record is shown below.

MEETING NUMBER AND DATE 1 2 3 4 5

Director Period of Appointment Appointed By

Augu

st 5

, 20

09

Sept

embe

r 10

, 20

09

Nov

embe

r 26

, 20

09

Mar

ch 4

, 20

10

May

13,

201

0

Daryl Pearce 01/07/09 30/06/10 Alpine Shire

Bill Hill 01/07/09 30/06/10 Benalla Rural City

Peter Graham 01/07/09 30/06/10 Indigo Shire

Jeff Whyte 01/07/09 30/06/10 Mansfield Shire

Phillip Cosyh 01/07/09 30/06/10 Towong Shire

Anthony Griffiths 01/07/09 4/03/10 Rural City of Wangaratta

Ron Webb 4/03/10 30/06/10 Rural City of Wangaratta

Lisa Mahood 01/07/09 30/06/10 City of Wodonga

Nicole Epema 01/07/09 30/06/10 Mount Hotham Resort

Louise Perrin 01/07/09 30/06/10 Mount Buller/Mt Stirling Resort

Ben Derrick 01/07/09 30/06/10 Falls Creek Resort

The Board appointed an Executive Committee composed of the following:

Chairman: Peter Graham

Deputy Chairman: Ben Derrick

Officer Representative: Dimitri Scordalides (Benalla Rural City)

Executive Officer: Brooke Hermans (1/04/2010 – 30/06/2010)

Acting Executive Officer: Kevin Hince (01/07/09 – 31/03/2010)

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3.3 Sub Committees

Under its constitution and underlying Charter of Corporate Governance, NevRwaste establishes sub-committees according to its need and resources. In 2009/10 NevRwaste retained a permanent Audit Committee to ensure it met its obligations to the Financial Management Act 1994. The make-up, role, and output of that Committee is set by legislation and underlying Ministerial Directives.

3.3.1 Audit committee membership

In 2009/2010 period NevRwaste’s Audit Committee met six times. NevRwaste has appointed an internal auditor, Mr Terry Lant, to undertake internal activities and reporting to the Committee.

MEETING NUMBER AND DATE 1 2 3 4 5 6

Director Period of Appointment Role

28/0

7/09

25/0

8/09

28/1

0/09

16/0

2/10

28/0

4/10

16/ 06

/10

Frank Smith 01/07/09 30/06/10 Independent Chairman

Roy Baird 01/07/09 30/06/10 Independent Member

Terry Forrest 1/07/09 30/06/10 Independent Member

Phillip Coysh 01/07/09 4/03/10 NevRwaste DirectorRon Webb 4/03/10 30/06/10 NevRwaste Director

3.4 Statement of Workforce Data

In 2009/2010 NevRwaste employed between 3-5 people. The breakdown of staff for the Group is as follows:

ITEM (as at 1/07/09) (as at 30/6/10)

Total Employees 5 3Male 1 0Female 4 3Part Time 3.5 2Full Time 2 1Equivalent Full Time (EFT) 4 2Senior Management (salary less than $120,000) 1 1Age: up to 34 4 3Age: 35-plus 0VPS 4 3 2VPS 2 2 1

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3.5 Management team

In implementing regional strategies, NevRwaste relies on both internal and external human resources. In 2009/10 NevRwaste employed a part time Executive Officer, a full time Regional Education Officer and a part time Administration Officer.

Throughout the course of the year NevRwaste also employed 2 fixed term employees to deliver projects.

(a) Executive Officer Role

The main purpose of the Executive Officer position is to support the Group in the development and implementation of its plans, budgets, programs, projects and activities for waste management in the region, in accordance with relevant legislation, policy and guidelines, and consistent with regional needs and priorities.

A key objective of the position is to ensure the Group develops and maintains a vision of continuous improvement in the management of waste and litter in the region, and makes progress towards the achievement of state wide policy goals and regional objectives for waste reduction.

(b) Regional Education Officer

The main purpose of the Regional Education Officer position is to support the development and delivery of community education programs and actions in the region. The strategic basis for these programs is defined in the Group’s waste management plan and business plan and reflected in the corresponding plans or strategies developed by Councils at the local level.

A key objective of the position is to assist stakeholders in the region to develop the necessary understanding, capacity and commitment to change practices and undertake activities to reduce waste and litter, and hence support the Group’s progress towards the achievement of state wide policy goals and regional objectives.

NevRwaste’s programs also rely upon the support of Directors and officers of members and other external organisations.

(c) External Support

The officers of NevRwaste members attend board and special project group meetings as well as other project based activities from time to time. Officers of the EPA, Sustainability Victoria and other Government and private sector organisations take part in regional activities.

4 OPERATIONS AND FINANCIALS

4.1 Performance against Operational and Budgetary Objectives

Under the landfill levy distribution NevRwaste received $317,068 in direct funding.

Sustainability Victoria provided the opportunity for additional funding to NevRwaste through project based grants which totalled $71,387; other project funds received from NevRwaste’s members comprise $119,882.

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4.2 Five Year Financial Summary

Table 4.3: Five-Year Financial Summary

2009-2010

2008-2009

2007-2008

2006-2007

2005-2006

$ $ $ $ $Landfill Levy Revenue (Note 1) 260,288 237,314 232,405 226,651 225,550Government contributions (Note 2)

150,777 254,285 232,770 121,193 83,994

Member contributions 119,882 119,420 80,410 119,327 106,150Other revenue (Note 3) 18,951 36,326 36,364 25,847 51,879TOTAL REVENUE 549,898 647,345 581,949 493,018 467,573

Administration 355,909 372,255 310,076 364,453 369,710Project Expenditure 162,397 282,382 161,843 94,492 84,165TOTAL EXPENDITURE 518,306 654,637 471,919 458,945 453,875

Current Assets 399,871 428,822 424,987 312,650 281,326Non-current assets 61,589 62,751 71,842 108,673 98,950TOTAL ASSETS 461,460 491,573 496,829 421,323 380,276

Current Liabilities 26,374 85,863 79,681 66,090 45,827Non-current liabilities 8,313 10,529 14,674 74,888 47,001TOTAL LIABILITIES 34,687 96,392 94,355 140,978 92,828

Note 1 – Includes Landfill Levy and Government Grant (REO Funding)

Note 2– TZW and Sustainability Fund grants for various projects and SV Gap funding and EPA gap fundingNote 3 – Miscellaneous incomes from involvement in various projects.

4.3 Strategic Direction and Authority Development

NevRwaste prepares and implements policies, strategies and programs that are articulated through its regional waste management plan and then implemented through the annual business planning and reporting process.

EPA approves the waste management plans prepared by NevRwaste.

DSE formally reviews NevRwaste’s annual report and advises the Minister on presentation of those reports to Parliament.

Sustainability Victoria provided the opportunity for additional funding to NevRwastethrough tied grants and informally reviewed NevRwaste’s business plan.

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5 IMPLEMENTATION OF 2009-2010 BUSINESS PLAN

The following report describes the progress on initiatives that were incorporated into the2009/10 Business Plan.

5.1 Municipal Services and Facilities Program

The Municipal Program is the fundamental connection between RWMG’s, local government and Sustainability Victoria for programs and activities related to the provision of waste management services to the community.

2009/2010 Objective Summary of Achievements

To reduce waste and increase resource recovery to a diversion rate of 41% by June 2010

Coordinated large scale behaviour change program around the avoidance of food waste. Resulting in decrease in food waste in household garbage bins in the trial community and collection of valuable information around household behaviours.

Coordinated cross regional television and newspaper advertising campaign (Don’t be a Ronnie) to encourage the diversion of recyclables from household garbage bins.

Wodonga extended kerbside recycling to 98-100% of households in municipality

Benalla extended recycling service to additional 1,541 households, resulting in 100% of residents with a waste service now receiving a recycling service

Adoption of Plasback program at appropriate transfer stations throughout region to facilitate the collection and recycling of silage wrap

Region wide Tyre Recycling contract advertised and awarded

Flexible standard region wide tender package developed for the future regional contracts

To provide best practice waste management at 80% of facilities by end of 2010

Assessment of the asbestos disposal needs of sites throughout North East Victoria

Assisted Councils to undertake landfill rehabilitation on two closed sites as part of Stage 3 of Affordable Site Analysis Project

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5.2 Community Engagement Program

The focus of the Community Engagement Program is on building partnerships with key local groups including councils, organisations, schools and venues to encourage them not only to improve their waste management practices.

2009/2010 Objective Summary of Achievements

3% increase in the diversion of recyclables from schools, businesses and government agencies in the region based on 2009-2010

Leadership Program (NEVEL), training 31 community members to advocate on environmental issues. Resulted in over 30 projects being coordinated by community members in North East Victoria.

Partnered in the coordination of the Schools Environmental Education Directory (SEED) in North East Victoria with the following outcomes:

Maintained online Schools Environmental Education Directory (SEED) to provide local contacts, information and curriculum resources to North East Schools

3 Schools Environment Days held in the region, attracting 22 schools and 508 students

5 SEED E-Newsletters distributed to over 700 recipients with above 20% opening rate

Development of 6 one hour e-learning professional development sessions for teachers including one on waste

SEED website averaging 165 hits per month Ongoing partnership maintained with North East Water and North

East Catchment Management Authority including an agreed approach for the delivery of environmental education to North East Victorian Schools

Promotion of Sustainable Schools Resource Smart Program to schools through SEED program.

Provided support to 5 medium to large businesses to develop waste management plans.

5.3 Strategy and Performance Monitoring

The purpose of the Strategy and Performance Monitoring Program is to provide strategic data regarding regional performance including progress towards achieving the targets established in the Towards Zero Waste Strategy and reflected in the Regional Waste Management Plan.

2009/2010 Objective Summary of Achievements

To monitor progress of the Regional Waste Management plan

Kerbside municipal garbage audit conducted of 390 households in four municipalities

Undertook detailed analysis with the assistance of Charles Sturt University of the use of behaviour change tools to reduce food

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waste in households

Provided feedback and information for the review of Regional Waste Management Groups

To achieve corporate governance requirements by June 2010

Regular reporting to Board on implementation of the business plan

Conducted internal evaluation of major projects

Organics Strategy for the planning and management of organic waste developed

Draft strategy developed

5.4 Organisational Systems and Operations Program

2009/2010 Summary of achievements

To facilitate professional development needs of regional personnel (Directors & NevRwaste staff)

Quarterly performance and professional development review of staff conducted

To maintain regular liaisons with partners and key stakeholders across the region and state via verbal and electronic communications over the next 12 months

5 Technical Advisory Committee Meetings held

5 Meetings of the NevRwaste Audit Committee held

4 Internal Audits conducted by external contractor

Annual review of Audit Committee Performance conducted

Review of 9 Charter of Corporate Governance documents in line with 3 year review schedule

Annual review and update of Risk Management Register conducted

5 Board Meetings held

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5.5 Public Affairs and Communications Program

Communication is a key element in all waste minimisation and materials efficiency programs which supports member councils and the community to effectively engage in programs and activities.

2009/2010 Summary of achievements

To implement the goals and objectives in the Regional Communication Plan on Waste and Litter over the next 12 months

Distribution of 3 electronic newsletter to stakeholders throughout the region

Maintenance of up to date website for the community and members

Newspaper used to promote the Plasback program for the recovery of silage wrap

5.6 Performance against Budget

INCOME Budget Actual NotesMember Contributions $119,882 $119,882

Landfill levy $218,624 $257,068 1

Regional Projects $51,999 $93,997 2Government Grants $60,000 $60,000 3Interest Income $14,000 $13,189

Other Income $11,001 $5,762 4

TOTAL INCOME $475,506 $549,898

EXPENSES Budget ActualAdministration $105,622 $88,230 5

Employee Costs (core employees) $181,362 $187,308 6

Regional Program costs $171,882 $220,364 7Depreciation and amortisation $18,102 $18,746

Finance costs $1,013 $1,013

Loss on disposal of property plant & equipment $0 $2,645TOTAL EXPENSES $477,981 $518,306

Notes1) Includes additional gap funding from Sustainability Victoria and EPA (shown in ‘regional projects’ in income

statement) and standard landfill levy funding2) Additional grant funding received for regional projects, including $25,000 grant for 2010-20113) REO grant funding from EPA – considered income from landfill levy4) No personal use of vehicles resulting in reduced other income for the organisation5) Savings through numbers of project staff being reduced mid financial year

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6) Additional costs incurred due to maternity leave payments. Only includes core salaries, not those associated with projects

7) Additional project implementation using reserve project funds, this includes project salaries.

5.7 Significant Changes in Financial Position during the Year

NevRwaste received Landfill Levy funds totalling $317,068. The utilisation of these are summarised in 8.2.

5.8 Consultancies Undertaken During the Reporting Period Over $100,000

There were no consultancies in excess of $100,000 entered into during the reporting period.

5.9 Consultancies Undertaken During the Reporting Period Under $100,000

During the reporting period there were a total of three consultants engaged on projects of less than $100,000, these included:

Wastemin for the completion of the kerbside waste audits ($35,090)

Trent McCarthy & Assoc. to facilitate the North East Environmental Leaders Program ($25,800)

Charles Sturt University to assist in the research and analysis of the Household Food Avoidance Program ($19,861)

NevRwaste also utilised the services of bookkeeper, an accountant and an internal auditor at a total cost of $17,077.

5.10 Major Contracts

NevRwaste did not enter into any contracts greater than $10 million in value during the reporting period.

5.11 Major Changes or Factors Affecting Performance

A number of staff changes have occurred at NevRwaste in 2009-2010, including the Executive Officer returning from leave and the Regional Education Officer taking leave without pay.

These changes have resulted in some projects not being delivered in the 2009-2010 financial year. A majority of these projects were funded by contributions from our local government and resort management board members. These members have been consulted and these funds are planned for expenditure in 2010-2011.

5.12 Subsequent Events

Other than those events disclosed below, there have been no other events that have occurred subsequent to 30 June 2010 which would, in the absence of disclosure, cause the financial statements to become misleading.

Regional Waste Management Group Review The government has completed a review of the 12 regional waste management groups. The reforms will result in 7 regional waste management groups. The Department of Sustainability and Environment will lead the legislative change process to implement the reforms, which are anticipated to be completed by 1 July 2011.

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The financial impact of the review cannot be reliably measured as at balance date.

6 DISCLOSURES AND LEGISLATIVE COMPLIANCE

6.1 Victorian Industry Participation Policy Disclosures

The Victorian Industry Participation Policy (VIPP) aims to ensure that local suppliers can participate in procurement and industry assistance activities across Government, wherever they offer the best value for money.

The VIPP applies when the Victorian Government’s funding or provision of a grant exceeds $3 million in Metropolitan Melbourne and $1 million in regional Victoria. There were no contracts over $1 million awarded by NevRwaste during the reporting period.

6.2 Information privacy

The Information Privacy Act 2000 established a regime for the responsible collection and handling of personal information in the Victorian public sector. NevRwaste complies with the ten Information Privacy Principles set out in the Act.

6.3 Merit and Equity

NevRwaste is committed to the principles of equal employment opportunity and the establishment and maintenance of a non-discriminatory work environment. NevRwaste aims to ensure that all persons are assessed solely on the basis of merit with respect to recruitment, promotion and access to training and other programs and facilities. This approach reflects NevRwaste’s desire to have a work place free from discrimination, where each person has the opportunity to progress to the extent of their ability and the needs of the organisation.

NevRwaste is committed to the principles of merit and equity as covered under the Public Administration Act 2004, including:

EMPLOYERS MUST ENSURE EMPLOYEES MUST

Decisions are based on merit. Act impartially.

Employees are treated fairly and reasonably. Display integrity including avoiding real or apparent conflict of interests.

Equal Employment Opportunity is provided. Show accountability for actions.

Reasonable avenues of redress against unfair or unreasonable treatment.

Provide responsive service.

6.4 Application and Operation of Freedom of Information Act 1982

NevRwaste is a State Statutory Agency under the Environment Protection Act 1970, and so is a ‘Government Agency’ under the terms of the Freedom of Information Act 1982. Accordingly, it is required to comply with the procedures that have been prescribed under which members of the public may gain access to information held by Agencies.

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A decision to release information is made by either the Principal Officer or an Authorised Officer. The Board of NevRwaste has determined that the Authorised Officer is the Executive Officer. There was no request received under the Freedom of Information Act 1982 during the reporting period. For fee of $22.70 the public can make written application for copies of information held by NevRwaste to the following:

Mrs. Brooke HermansAuthorised OfficerNorth East Victorian Regional Waste Management GroupWangaratta Government Centre62-68 Ovens St, WANGARATTA VIC 3677

Telephone: 5722 9433

Facsimile: 5722 9655

Email: brooke.hermans@nevrwaste.vic.gov.au

6.5 Whistleblowers Protection

The Whistleblowers Protection Act 2001 came into effect on 1 January 2002. The Act is designed to protect people who disclose information about serious wrong doing within the Victorian Public Sector and to provide a framework for the investigation of these matters. The protected disclosure coordinator for DSE acts as an agent for the NevRwaste to receive disclosures under the Act to which they apply DSE procedures.

There were no disclosures under the Act, in relation to NevRwaste, during the year.

Disclosures of improper conduct by NevRwaste or its employees may be made to the following:

Jennifer BerensenProtected Disclosure CoordinatorDept of Sustainability and EnvironmentPO Box 500, East Melbourne Vic 3002Telephone: 9637 8697Facsimile: 9637 8128Email: jennifer.berensen@dse.vic.gov.au

The Ombudsman VictoriaLevel 9 459 Collins Street MELBOURNE VIC 3000Telephone: 9613 6222 Toll free: 1800 806 314

6.6 Compliance with Building and Maintenance Provisions of the Building Act 1993

NevRwaste did not undertake any building works that fall within the provisions of the Building Act 1993, as its premises are leased and contractors provide any waste management services. NevRwaste complies with the building maintenance provisions of the Building Act 1993.

6.7 National Competition Policy

The national competition reform agenda has resulted in a greater emphasis on the encouragement of competition in the community. Competitive neutrality is a principle of

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the National Competition Policy and requires that, as far as practicable, government owned businesses compete with private sector businesses on the same footing. NevRwaste, as the independent manager of, and investor in, NevRwaste’s assets, purchases services and goods in line with the Victorian Government Purchasing Authority’s guidelines. In doing this, NevRwaste applies the following principles:

Value for Money

Open and Fair Competition

Accountability

VIPP policy

NevRwaste adheres to the principles of the National Competition Policy to ensure that any business competition with private entities takes place in an environment where NevRwaste has no competitive advantage. The Environment Protection Act 1970 specifically precludes NevRwaste from undertaking waste management activity that is being carried out on a commercial basis anywhere in Victoria. NevRwaste strictly adheres to relevant provisions of the Environment Protection Act 1970 in relation to this issue.

6.8 Occupational Health and Safety

NevRwaste provides programs to ensure that the human and financial costs of occupational injury and illness to staff are prevented or reduced, including improvements to safety of contractors. No WorkCover claims were lodged during the period.

6.9 Office Based Environmental Impacts

NevRwaste employs three officers that operate from leased premises in Wangaratta and has made a commitment to lead by example in promoting and maintaining the principles of sustainability within its office environment. As such NevRwaste participates in the Wangaratta Government Centre Eco-leader Committee.

6.10 Cultural Diversity - Aged, Youth, Koories, NESb

All NevRwaste’s programs, services and strategies are planned to ensure that they reflect the needs of NevRwaste and its member’s community base and any of their particular cultural needs. NevRwaste is committed to policies, programs and strategies aimed at delivering culturally appropriate services to all North East Victorian’s.

6.11 Availability of other Information

Any information on the following, not included in the report of operations, is available on request, subject to subject to the Freedom of Information Act 1982, from NevRwaste’s Executive Officer either by phone on 5722 9433 or in writing to Wangaratta Government Centre, 62-68 Ovens St, WANGARATTA VIC 3676.

Declarations of pecuniary interest including details of shares held, which have been duly completed by relevant officers.

Publications produced by NevRwaste Changes in prices, fees, charges, rates and levies charged Major external reviews carried out on NevRwaste Major research and development activities undertaken

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Overseas travel undertaken including a summary of the objectives and outcomes of each visit

Major promotional, public relations and marketing activities undertaken by NevRwaste to develop community awareness of NevRwaste and its services

Assessments and measures undertaken to improve the OHS of employees A general statement on IR within NevRwaste and details of time lost through

industrial accidents and disputes A list of major committees sponsored by NevRwaste, the purposes of each

committee and the extent to which the purposes have been achieved

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6.12 Disclosure Index

Clause Disclosure PageReport of OperationsCharter & purposeFRD22B Manner of establishment and Relevant Minister 5FRD22B Objectives, functions, powers and duties 5FRD22B Nature and range of services provided 8Management & structureFRD22B Names of board members (major committees – objectives and achievements) 9FRD22B Chart setting out organisational structure 7FRD22B Workforce data 10FRD22B Merit and Equity 18FRD22B Application and operation of FOI Act 1982 18Financial and other informationFRD22B Five year summary of the financial results 12FRD22B Significant changes in financial position during the year 17FRD22B Operational & budgetary objectives for the year and performance against those objectives 13-16FRD22B Major changes or factors affecting performance 17FRD22B Subsequent events which will affect operations in future years 17FRD22B Consultancies > $100,000 17FRD22B Consultancies – total No. and cost < $100,000 17FRD12A Disclosure of major contracts 17FRD22B Compliance with building and maintenance provisions of Building Act 1993 19FRD22B Statement on implementation and compliance with National Competition Policy 19FRD22B A statement of Occupational Health and Safety (OHS) matters 20FRD22B Application and operation of the Whistleblowers Protection Act 2001 19FRD24C Reporting of Office-based environmental impacts 20FRD25B Victorian Industry Participation Policy Act 2003 18FRD22B Statement that information listed in Part 9.1.3 (iv) is available on request 21FRD10 Disclosure Index 22

Cultural Diversity 20Information Privacy 18

Financial StatementsPreparationSD 4.( c) Statement of preparation on an accrual basis 30

SD 4.2( c) Statement of compliance with Australian Accounting Standards and authoritative pronouncements

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SD 4.2( c) Statement of compliance with accounting policies issued by the Minister for Finance 30Operating Statement SD 4.2(b) Operating Statement for the year 25SD 4.2(b) Operating revenue by class 25

SD 4.2(b) Depreciation 29SD 4.2(b) Bad and doubtful debts 29SD 4.2(b) Auditor-General’s fees 29

Balance SheetSD 4.2(b) Balance Sheet for the year 27

AssetsSD 4.2(b) Cash at bank or in hand 29SD 4.2(b) Receivables, including trade debtors, loans and other debtors 29SD 4.2(b) Other assets, including prepayments 29SD 4.2(b) Property, plant & equipment 29

LiabilitiesSD 4.2(b) Trade and other creditors 29SD 4.2(b) Provisions, including employee benefits 31

EquitySD 4.2(b) Reserves (Retained surplus) 27

Cash Flow Statement SD 4.2(b) Cash Flow Statement for the year 28

Notes to the financial statementsFRD9A Notes to Financial Statements 30-35FRD13 Government grants received or receivable and source 11&25FRD23A Employee superannuation funds 31

Transactions with responsible persons and their related parties 34FRD21A Responsible person and executive officer disclosure 35SD 4.2(a) Statement of Recognised Income and Expenditure 25SD 4.2(j) Accountable officer’s declaration 24SD 4.5.5 Attestation on Risk Management 23

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7 RISK MANAGEMENT ATTESTATION

I, Peter Graham OAM the Chairperson of the Board certify that the North East Victorian Waste Management Group has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures.

The audit committee verifies this assurance and that the risk profile of the North East Victorian Regional Waste Management Group has been critically reviewed within the last 12 months.

Peter Graham OAM

Chairperson

26/08/2010

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8 FINANCIAL REPORT

8.1 Accountable Officers Declaration

FINANCIAL AUDITING

Financial auditing is under the control of the Victorian Auditor-General’s Office. That Office appointed Hugh McKenzie McHarg of Johnsons MME as the Auditor of the Group’s financial statements for the period ended June 30, 2009.

DECLARATION UNDER DIRECTION 9.1.3(IV) OF THE FINANCIAL MANAGEMENT ACT 1994

In accordance with Direction 9.1.3(iv) of the Financial Management Act 1994, NevRwaste will make all relevant information, such as declarations of pecuniary interest and details of overseas visits etc, available to the Minister on request.

8.2 Report on the Utilisation of Landfill Levy Funds Received

NevRwaste received $317,068 in funding from the landfill levy funding, this includes $299,413 funding for 2009-2010 including:

$60,000 from EPA for the Regional Education Officer employment

$20,790 from EPA for Enterprise Bargaining Agreement increases

$35,990 from Sustainability Victoria as gap funding

$182,633 in landfill levy funding

Also included in the total amount received is a payment from the EPA for Enterprise Bargaining Agreement costs for the 2008-2009 financial year totalling $17,655.

The expenditure of these funds is outlined below:

Expense

Administration Expense $88,230

Employee costs (Not including non-core project staff)

$187,308

Depreciation and amortisation $18,746

Finance costs $1,013

Loss and disposal of property, plant & equipment $2,645

Total $297,942

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NORTH EAST VICTORIAN REGIONAL WASTE MANAGEMENT GROUPABN: 97 060 945 266

Statutory Certification

We certify the attached financial statements for North East Victorian Regional Waste Management Group have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Australian Accounting Standards, Interpretationsand other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, statement of financial position, cash flow statement, statement of changes in equityand notes to the financial statements, presents fairly the financial transactions of the North East Victorian Regional Waste Management Group for the period ended 30 June 2010 and the financial position of the Group as at 30 June 2010.

We are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.

Peter Graham O.A.M

Chairperson, North East Victorian Regional Waste Management Group

Brooke Hermans

Executive Officer, North East Victorian Regional Waste Management Group

Dated this 26th day of August 2010

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