Parks Victoria Annual Report · 2013-09-23 · Parks Victoria Annual Report . 2012–2013 Page 3....

Parks Victoria Annual Report 2012–2013


Through their rich culture, Aboriginal Traditional Owners have been intrinsically connected to this continent – including the area now known as Victoria and the State’s parks and reserves – for tens of thousands of years. Parks Victoria recognises this connection and acknowledges the Traditional Owners of these areas.

Parks Victoria manages many different sites such as piers, waterways, ports, bays, historic buildings, trails, urban parks, small conservation reserves and large national parks. For the sake of brevity, these are collectively described in this document as ‘parks’ unless a specific type of site or park is mentioned.

People seeking further information on Parks Victoria or wishing to visit Parks Victoria parks should visit www.parks.vic.gov.au or call 13 1963.

Copyright © Parks Victoria 2013

Level 10, 535 Bourke Street, Melbourne, Australia.

ISSN 1448 – 9082 ISSN 1448 – 9090 (Online)

Published on www.parks.vic.gov.au

This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

Contents

About Parks Victoria 5

Environment, Land and Water 10

Culture and Heritage 19

Visitor and Community 22

Fire and Emergency Management 31

A Sustainable Organisation 33

Financial report

Annual financial statements 47

Cover image: Works to repair Masons Falls visitor area, Kinglake National Park, were completed in 2013. Photo James Greer.

Left: Marine monitoring at the Twleve Apostles Marine National Park with Museum Victoria and Deakin University.

After a few years of rain across the state, 2012–13 saw an above average fire season with four major fires. Parks Victoria worked with the Department of Environment and Primary Industries and the Country Fire Authority firefighters and support crews to respond to fires across Victoria including large fires impacting the Alpine National Park and surrounds in the Alpine, Grampians and Lower Glenelg national parks. This was closely followed by the largest planned burning program in 30 years.

A number of significant projects were completed such as the Kokoda Memorial Terrace and Wall project in the Dandenong

Ranges National Park and the connection of essential services for the Point Nepean National Park. Visitors were encouraged back to Kinglake National Park following the completion of the final stages of rebuilding and repairs at Masons Falls and Jehosaphat Gully after the 2009 Black Saturday fires.

Statewide efforts to reduce the impact of pest plants and animals continued exceeding on-ground targets. Scientific monitoring with research partners progressed which ensures that park management decisions continue to be based on the best evidence available. In other milestones, November 2012 marked the

10th anniversary of the establishment of Victoria’s 24 protected marine national parks and marine sanctuaries.

Significantly, it was a year in which almost 30,000 volunteers contributed to the management and care of Victoria’s parks – the largest volunteer effort in Parks Victoria’s history. I would like to thank Parks Victoria staff and supporters for all their efforts over the past year and look forward to 2013–14.

Dr Bill Jackson Chief Executive 30 June 2012

Our work this past year has presented significant challenges, which the organisation has embraced with enthusiasm. The result is a testament to the resilience, innovation and commitment of the amazing staff at Parks Victoria – there is a strong culture within our organisation to get the job done.

Following a thorough examination of Parks Victoria’s organisational structure and its performance indicators, this year has seen significant efficiencies delivered throughout the organisation. This re-structure is already paying dividends, and will continue to serve our organisation and its committed employees by

providing strength, flexibility and direction in the years ahead.

The Parks Victoria brand continues to enjoy great recognition amongst Victorian communities, and its reputation has been further enhanced this last year through many exciting initiatives. The creation of park access opportunities with disability groups, the strengthening of relationships with Traditional Owners and multi-cultural communities, and our continued contribution to developments in nature-based tourism are but some of the achievements.

Our parks are places to inspire the people who use them. The contents of this report provide a mere snap shot of the outstanding work that Parks Victoria staff do to ensure that this state’s parks and waterways are well cared for and conserved, whilst at the same time providing unique recreational opportunities. Parks Victoria is proud to continue on its journey to be a world leading parks service, managing iconic natural spaces that continue to provide inspiration to those who enjoy them.

Andrew Fairley Board Chairman

The 2012–13 year was one of achievement and reform for Parks Victoria, with significant work undertaken to build a more efficient and resilient park management organisation into the future.

CEO AND CHAIRMAN’S MESSAGE

Chief Executive’s message

It gives me great pleasure to present the 2012–13 Parks Victoria Annual Report on behalf of the Parks Victoria Board.

Chairman’s message


About Parks Victoria

Parks Victoria is committed to protecting, improving and enhancing Victoria’s parks and waterways for current and future generations.

Who we are

Parks Victoria delivers on-ground services across the state to ensure that Victoria’s parks and waterways remain healthy and resilient. This includes conserving park and waterway ecosystems, protecting cultural heritage, continuously developing opportunities for community involvement in parks and preparing for, responding to and recovering from fire, floods and other emergencies.

With a comprehensive network of protected areas stretching from Red Gum forests of the Murray River, through the mountains of the Great Dividing Range to the marine environments of the Southern Ocean, Victoria’s parks embody a precious and diverse range of landscapes which support a healthy and sustainable Victoria for all Victorians today and for generations.

Parks Victoria’s mission is to effectively manage these parks for all Victorians within the context of the broader social, economic and environmental outcomes sought by government.

We work with the Department of Environment and Primary Industries and the Department of Transport, Planning and Local Infrastructure to deliver agreed services.

Recognising and acknowledging Aboriginal heritage and connection to Country, we work in partnership with Traditional Owners in the joint management of parks. At a community level we work with volunteer organisations, private land owners, research institutes and the broader community to deliver works on the ground and promote environmental values.

Parks Victoria is a statutory authority, established under the Parks Victoria Act 1998.

The responsible Minister for the period 1 July 2012 to 30 June 2013 was the Hon Ryan Smith MP. Under the Parks Victoria Act 1998, Parks Victoria’s responsibilities are to provide services to the State and its agencies for the management of parks, reserves and other land under the control of the State.

Vision and purpose

Parks Victoria is committed to conserving the natural and cultural values of the areas we manage. Our vision is for an outstanding park and waterway system protected and enhanced, for people, forever.

Parks Victoria exists to:

• Conserve, protect and enhance natural and cultural values

• Provide quality experiences, services and information to its customers

• Provide excellence and innovation in park management

• Contribute to the environmental, social and economic wellbeing of Victorians.

The areas we manage

Parks Victoria manages a representative system of marine national parks and marine sanctuaries.

It is also the Local Port Manager for Port Phillip Bay, Western Port and Port Campbell and the Waterway Manager for the Yarra and Maribyrnong rivers.

These areas include:

• 45 national parks

• 26 state parks

• 13 marine national parks

• 11 marine sanctuaries

• 3 wilderness parks

• 30 metropolitan parks

• 60 other parks (including regional and reservoir parks)more than 2,700 natural features and conservation reserves

• more than 11,000 formally registered Aboriginal cultural heritage places

• more than 2,500 non-Indigenous historic places

Parks Victoria manages more than 28,000 assets. They include:

• 44 visitor centre buildings

• 703 shelters

• 845 toilets

• 515 viewing lookouts

• 55 playgrounds

• 14,000 kilometres of roads

• 1,213 pedestrian and vehicular bridges

• 3,700km of walking tracks

• 110 sporting facilities (e.g. golf courses, ovals and wickets)

• 217 piers and jetties

• 98 water access points (e.g. boat ramps, rowing launches and slipways), and

• 937 navigation aids

Our parks and waterways attract 95.8 million visits each year. Of these visits, 51.2 million are to parks and 44.6 million are to piers and jetties around the bays.

Organisational structure

Parks Victoria’s Chief Executive is appointed by the Board following consultation with the Minister. The Board reviews the performance of the Chief Executive on an annual basis.

During the reporting period, Parks Victoria’s Chief Executive was Dr Bill Jackson.

ABOUT US

Parks Victoria Board

(Andrew Fairley, Chairman)

Audit Risk & Compliance Committee

(Denis Cavagna, Committee Chair)

Workplace Safety & Human Resources Committee (Pru Sanderson, Committee Chair)

Finance Committee

(Andrew Vizard, Committee Chair)

Bill Jackson

Chief Executive

Office of the Chief Executive & Board Secretary

Margaret Gillespie

Chief Legal Counsel / Executive Director Corporate Governance

Peter Brennan

Executive Director Corporate Strategy

Ian Christie

General Manager Visitor Experiences

Ian Walker

General Manager Environment & Heritage

Chris Rose

General Manager Regional Services

Brian Hood

General Manager Corporate Services


Parks Victoria’s Board

The Parks Victoria Board has responsibility for the governance of Parks Victoria. On the recommendation of the Minister for Environment and Climate Change, Board members are appointed by the Governor in Council for a period not exceeding three years. Members are eligible for reappointment. The Board operates in accordance with the provisions of the Parks Victoria Act 1998.

The Board is responsible for directing and monitoring the business of Parks Victoria and is accountable to the Minister for its overall performance. It delegates day-to-day responsibility for operations and administration to the Chief Executive.

As at 30 June 2013, the Board members were:

Andrew Fairley (Chairman) Mr Andrew Fairley has had a distinguished association with ecotourism, conservation, parks and resort management over many years and was a director of the world class 5 star resort Turtle Island in the Yasawas for over 20 years. He has been a Director of the International Ecotourism Society (Washington DC) and a Director of Ecotourism Australia. Andrew is also a specialist superannuation lawyer. He is Chair of Equipsuper, a $6 billion industry fund operating in the energy and water sector, Chair of the Sir Andrew Fairley Foundation and he also currently acts as Consul General for Finland in Victoria.

Dennis Cavagna Mr Dennis Cavagna has a background in business and accountancy and is currently a part-time Commissioner of the Essential Services Commission (ESC) of Victoria. He is the former Managing Director of South East Water. He also has an extensive background in business and

financial management. Mr Cavagna is a member of the Queensland Urban Utilities Board, the Department of Environment and Primary Industries Risk and Audit Committee,and the VicRoads audit committee.

Deborah Cheetham Ms Deborah Cheetham is currently the Head of the Wilin Centre at the Victorian College of the Arts and the Music Faculty of the University of Melbourne. She is also Artistic Director of Short Black Opera Company Pty Ltd and a freelance performer, director, producer, writer, teacher and composer. Deborah has a strong understanding of Indigenous issues, which she contributes to the shared management model for many national parks. She has significant community links and community consultation experience.

Andrew Grant Mr Andrew Grant is currently the CEO of the CO2 Group Ltd and has a background in natural resource management and business. He has executive and board experience with organisations including the Royal Botanic Gardens, Earthwatch, the Cooperative Research Centre for Greenhouse Accounting and the Banksia Environmental Foundation. He has held several management positions in Parks Victoria and is a former Chair of the Port Phillip and Western Port Catchment Management Authority.

Natalie O’Brien Ms Natalie O’Brien has a background in senior management in tourism and marketing and is currently the CEO of the Melbourne Food and Wine Festival. She is a committee member on the Victorian Food, Wine and Tourism Council and a board member of the Stephanie Alexander Kitchen Garden Foundation and the City of Melbourne Hospitality Advisory

Board. She has extensive knowledge of tourism, including an understanding of increasing visitation.

Pru Sanderson Pru Sanderson is an architect and property professional who specialises in creating new benchmarks in urban planning and public infrastructure. She has served as CEO of VicUrban, held senior roles in the development of Melbourne Museum and Federation Square and has worked internationally, managing property affairs and the delivery of major infrastructure in South Africa and Malaysia. She is a member of the Federal Government’s Built Environment Industry Innovation Council (BEIIC) and a fellow of Leadership Victoria.

Andrew Vizard Professor Andrew Vizard is a part-time Associate Professor of Veterinary Epidemiology at the University of Melbourne. He is an experienced company director and has served on the board of numerous companies, statutory bodies and scientific organisations. He is currently the Chair of the Vizard Foundation, a board member of Ridley Corporation Ltd, a trustee of the Australian Wool Education Trust and a member of the Research Committee of the Hermon Slade Foundation.

Robert Wallis Professor Robert Wallis is a part-time Professor of Research Development at Ballarat University. He has a background in natural resource management, sustainable development and environmental education. Professor Wallis has held senior academic positions including Pro Vice Chancellor (Rural and Regional) and Head of School (Ecology and Environment) at Deakin University. He has extensive board and committee experience, including currently serving as the Deputy Chair and

Director of the Wannon Region Water Corporation, Deputy Chair and Director of Great South Coast Medicare Local and Chair of the Warrnambool City Council Audit and Risk Committee. He is a fellow of the Australian Institute of Company Directors.

Garry Phibbs (term ended 2 August 2012) Garry has had responsibility for the provision of high level and innovative commercial, financial and risk management advice to the Victorian Government including a focus on major infrastructure and the State’s balance sheet. Garry also has experience in the commercial governance of Victoria’s corporatised Government Business Enterprises and in providing commercial and risk management advice on business case proposals, projects that facilitate new infrastructure and major commercial transactions.

Board Committees

The Audit, Risk and Compliance Committee oversees and advises on matters of accountability and internal controls affecting the operations of Parks Victoria as required by the Standing Directions of the Minister for Finance under the Financial Management Act 1994 (FMCF). The role of the Committee is to assist the Board in the effective discharge of its responsibilities in overseeing the areas of statutory reporting, internal controls, risk management (including insurance and legal proceedings), compliance and the internal and external audit functions. The Committee which is supported by senior managers, comprises Dennis Cavagna (Committee Chair), Andrew Fairley, Andrew Grant, Natalie O’Brien, Andrew Vizard and Peter Calder (external, independent committee member) – met four times in 2012–13. The term of office of Peter Calder ended on 31 December 2012.

The Reward and Governance Committee (formerly Governance and Remuneration Committee) reviews and monitors key human resources policies and issues and determines Parks Victoria’s policy and practice for executive remuneration. The committee is supported by senior managers. The Committee members Pru Sanderson (Committee Chair), Andrew Fairley, Deborah Cheetham and Robert Wallis met twice in 2012–13. The Reward and Governance Committee went into recession on 20 February 2013.

The Workplace Safety and Human Resources Committee is the appointed remuneration committee with responsibility for determining the organisation’s policy and practice for executive remuneration and the executive remuneration packages under the State Services Authority Policy. The Committee reviews, monitors and makes recommendation to the Board on the following issues:

• workplace health and safety

• setting of performance measures and review of the performance of the Chief Executive

• compliance with executive remuneration requirements

• compliance with Board member remuneration requirements

• compliance by Board members with Board policies, and

• human resources policies.

The Committee, which is supported by senior managers, comprises Pru Sanderson (Committee Chair), Andrew Fairley, Deborah Cheetham and Robert Wallis. Members met twice in 2012–13. The Board appointed Ross Passalaqua as an external member of the Committee in May 2013.

The Finance Committee reviews, monitors and makes recommendations on performance against financial budgets and plans with the support of senior managers. The Committee’s members Andrew Vizard (Committee Chair), Andrew Fairley and Dennis Cavagna met twice in 2012–13.

Total meeting attendance in 2012–13:

Andrew Fairley 9 of 10

Dennis Cavagna 10 of 10

Deborah Cheetham 6 of 9

Andrew Grant 7 of 9

Pru Sanderson 9 of 10

Natalie O’Brien 8 of 9

Andrew Vizard 9 of 9

Robert Wallis 8 of 9

Garry Phibbs 1 of 1

ABOUT US


Area of work and goal 2012–2013 Program highlights Page

Environment, land and water

Objective: Conserve and protect park and waterway ecosystem resilience

• Undertakingextensivepestplantandpestanimalprograms,exceeding on-ground conservation targets with more than 3,300 kilometres of private land frontage and more than 1.3 million hectares of land treated for invasive animals and plants

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• Deliveringover22,000millionlitresofenvironmentalwaterto wetlands and river systems.

• Collaboratingwithuniversitiesandgovernmentresearchinstitutions in the Research Partners Program, including on a “bioscan” of the Grampians National Park

• Implementingmonitoringofprogramsforpriorityparks,environmental values and threats

• Undertakingthe2milliontreesinitiative

Cultural and Heritage

Objective: Protect culture and heritage in parks

• JointlyandcooperativelymanagingCountrywithTraditionalOwner groups

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• ProgressingculturalheritagefloodrecoveryworksintheGrampians and Wilsons Promontory national parks

• CompletingmajorprojectsatPointNepeanNationalParkand the Kokoda Memorial Terrace at the Dandenong Ranges National Park

• CelebratingVictoria’sheritagewithaseriesofheritagestories and major community events at Day’s Mill and Anderson’s Mill

Visitors and Community

Objective: To deliver opportunities for people to use and enjoy their parks and waterways

• Victoria’sparksandwaterwaysattracted95.8millionvisits in 2012–13. Of these visits, 51.2 million were to parks (including 34.8 million visitors to national and state parks) and 44.6 million were to piers and jetties around the bays

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• Providingeducationandinterpretationservicestomorethan184,854 visitors and students, exceeding the 2012–13 target by more than 84,000

• Encouragingaround30,000volunteerstocontribute219,000 volunteer hours to the maintenance of the parks estate. This represents an increase of almost 10,000 volunteers since 2012–13 and Parks Victoria’s highest number of volunteers ever engaged

• EngagingwithonlinevisitorsviatheParksVictoriawebsite,which received 2,362,171 visits

• Generating$20.8millionrevenuefromcommercialoperations, leases, licences and Parks Victoria-operated sites

Fire and emergency management

Objective: Prepare for, respond to and recover from fire and other emergencies

• SupportingtheDepartmentofEnvironmentandPrimaryIndustries to achieve the largest planned burn program in the last 30 years.

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• Deliveringfireandfloodrecoveryprogramsacrossthestate

• Respondingtomajorfiresaroundthestateincludingareasin the Alpine, Grampians and Lower Glenelg and Heyfield bushfires.

A Sustainable Organisation

Objective: Operate as a resilient, respected and effective park management agency

• Undertakingsignificantorganisationalreforms,includinga project focussed on improving organisational culture, reforming policies and procedures and making major improvements to occupational health and safety practices and information technology systems.

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The Year in Review

Parks Victoria’s 2012–13 Business Plan and 2012–15 Corporate Plan set out five areas of work and seven related strategic, long term goals. Program highlights are outlined on the following page and described in detail in the Report of Operations (pages 10 – 41).

Environment, land and water

Management planning

Management planning involves engaging with the community to understand the values and challenges to Victoria’s parks and waterways in order to develop a management strategy to restore and maintain healthy parks while providing opportunities for people to enjoy and appreciate parks.

During 2012–13, work progressed on several large planning projects involving multiple parks:

• the draft management plan for the Greater Alpine national parks (which covers the Alpine, Baw Baw, Errinundra, Mount Buffalo and Snowy River national parks, Avon Wilderness Park and Tara Range Park) was further developed pending input from the new Alpine Advisory Committee

• the draft management plan for parks and reserves in Victoria’s far south-west (including the Cobboboonee, Lower Glenelg, Mount Eccles and Mount Richmond national parks, Cape Nelson, Dergholm and Mount Napier state parks, Discovery Bay Coastal Park and Discovery Bay Marine National Park) was finalised for public consultation

• preparatory work was carried out ahead of management planning commencing for a range of parks and other areas in the River Red Gum area (including Barmah, Gunbower, Lower Goulburn, Murray-Sunset (part) and Warby-Ovens national parks, Leaghur State Park and Gadsen Bend, Kings Billabong, Murray-Kulkyne and Nyah-Vinifera parks).

Objective

Conserve and protect park and waterway ecosystem resilience

Parks Victoria manages a diverse and representative network of parks, rich in endemic plants and animals, reflecting the layers of our collective history.

Our parks contain Victoria’s most important ecosystems, landscapes, coastlines and open space.

Parks Victoria’s primary responsibility is to ensure parks are healthy and resilient in a time of climate change. Our conservation programs help to reduce threats to parks and improve the health of the natural environment.


In addition:

• the management plan for the newly named Kara Kara National Park was submitted for final approvals

• the Marine Protected Areas Program Plan 2012–2014 was completed and is guiding implementation of management activities in marine national parks, marine sanctuaries and other marine protected areas

• the master plan for Point Nepean National Park, completed last year, was finalised and released

• a discussion paper was released containing options for changes to the areas currently available for dog walking in the Mornington Peninsula National Park.

Other planning relating to parks and visitor use included:

• community consultation to assist the preparation of the Shipwreck Coast Master Plan, in partnership with Corangamite and Moyne Shires and Tourism Victoria.

• finalising the Lower Ferntree Gully Picnic Area Precinct Plan, which proposes modifications to the car park and entry points to resolve critical traffic circulation and congestion issues

• commencing the Grampians Peaks Trail Master Plan in partnership with Grampians Tourism, local councils and Tourism Victoria

• finalising traffic management and visitor safety planning at Point Addis and Urquharts Bluff, Great Otway National Park site planning for the Pink Lakes precinct, Murray-Sunset National Park, with the aim of better managing the increasing number of large camper trailers and RVs which

are placing pressure on the fragile vegetation on the lake shores

• Merri Creek Marran Baba Parklands – publishing a final management plan

• continuing work on draft management plans for Yarra Bend Park and the Pines Flora and Fauna Reserve.

Invasive plant and animal management

Management of invasive plants and animals to protect natural and cultural assets continues to be a major area of work.

Invasive plants

In 2012–13, Parks Victoria implemented around 200 invasive plant programs across the parks estate, treating 104,000 hectares. Examples of works around the state are outlined on the following page.

Invasive animals

In 2012–13, around 150 invasive animal projects were implemented across the parks estate, treating around 1,104,000 hectares of the conservation estate. The species targeted included cats, rabbits, goats, pigs, foxes, deer, horses and feral cattle.

Parks Victoria coordinated statewide pest programs with the Australian Deer Association and Sporting Shooters Association Australia in the Alps, East Gippsland and along the Murray River. These programs have provided both opportunities for hunters and the effective delivery of control programs to meet mutual outcomes.

In 2012–13, several innovative projects commenced in collaboration with key partners including the development of an aerial shooting program with New South Wales Parks and Wildlife Service and engaging with the Sporting Shooters Association to a develop a more strategic approach to invasive animal control.

The Good Neighbour Program continued to deliver benefits at the interface between parks and private land and delivered outcomes in the interests of private land by implementing 43 projects across 245,000 hectares with a strong focus on rabbit and fox control.

Strategies to manage the impacts of horses in the Alpine and Barmah National Parks progressed. Parks Victoria commenced community consultation on wild horse management strategies in the Alps and with co-chair Yorta Yorta Nation Aboriginal Corporation, worked with the community-based Barmah Horses Advisory Committee to implement a Barmah Horse Management Program, which included furthering the understanding of the social and heritage values of Barmah Horses and the impact horses have on environmental and cultural values. The work will aid the development of a strategy to manage the impact of horses in Barmah National Park.

Projects in the Alps, Grampians and Mallee continue to improve habitats. The Mallee Rangeland

Parks Victoria works towards long-term, landscape-scale strategies informed by the most effective control methods. Our invasive pest management programs aim to improve the condition of high value environments and ensure the survival of critical flora and fauna.

Recovery rabbit control program treated 108,443 hectares in the Hattah Kulkyne, Murray-Sunset and Wyperfeld national parks.

The Grampians Ark landscape scale fox baiting program was implemented across 240,000 hectares of public land (national park, state park and state forest) and 30,000 hectares of adjoining rural land in the Victoria Valley. Close to 1,700 fox baits have been taken from 1,048 bait stations across the project area.

At the Cobboboonee, Lower Glenelg and Mount Richmond national parks and Discovery Bay Coastal Park over 71,000 hectares

were baited for foxes as part of the multi-partner Glenelg Ark initiative.

Parks Victoria and the Sporting Shooters Association undertook pig control and commenced a project to better understand and implement the effective use of volunteer hunters in Barmah National Park.

Parks Victoria worked with the Port Phillip & Westernport Catchment Management Authority to protect wetland values in Western Port and Port Phillip Bay (Western Shoreline) and Bellarine Peninsula Ramsar sites. The four year project was

completed through the federally-funded Caring for our Country program. The project focussed on pest plant and pest animal threats to Ramsar values. The outcomes are encouraging, with increased sightings of Southern Brown Bandicoots and Agile Antechinus for the first time in over ten years.

Partner agencies and stakeholders were engaged to progress the development of a transparent approach to the management of the impact of deer that balances the need to address environmental impacts of deer while continuing to provide deer hunting opportunities.

ENVIRONMENT, LAND AND WATER

Invasive plants

Region Project

Statewide • TheGoodNeighbourPrograminvestedin49projectscovering20,000hectarestocontrol invasive species in parks across land tenures. The program focussed on the highly invasive weeds Serrated Tussock, Blackberry and Broom, which have the potential to impact agriculture.

Melbourne • IntheDandenongRangesNationalParkandArthursSeatStateParktherewasaninitiativeto control a range of weeds – Sweet Pittosporum, English Holly, Ivy and Blackberry.

Northern Victoria • InKooyooraandStArnaudstateparks,thethreatenedJerichoWire-Grasswasprotectedfrom Horehound infestations and a new weed for Victoria, the Dandelion Crepis. In the other Box-Ironbark parks of Chiltern-Mount Pilot National Park, Castlemaine Diggings National Heritage Park and Paddy’s Ranges State Park, 700 hectares were treated for Blackberry, Bridal Creeper, Broom and Gorse.

Eastern Victoria • TheProtectingtheBestco-operativeinitiativewiththeEastGippslandCatchmentManagement Authority focussed on eliminating priority weeds that threaten high value areas of Victoria’s Eastern Highlands, Far East Gippsland and New South Wales. In 2012–13, the program treated Cape Broom/Montpellier Broom, Blackberry, Greater Lotus, Ragwort, St John’s Wort, Hawthorn, Slender Thistle and Beach Daisy in the Alpine, Coopracambra, Croajingolong, Errinundra, Mitchell River and Snowy River national parks.

• IntheAlpineNationalPark8,236hectaresweretreatedforinfestationsofBlackberry,English Broom, Grey Sallow, Soft Rush, Spear Thistle, Sycamore Maple and Water Forget-Me-Not.

• TheEnglishBroomprojectprovidedongoingcontrolofisolatedinfestationsintheAlpineNational Park. The project is working towards the eradication of these infestations once seed sources have been depleted.

• Willowwastreatedacross1,300hectaresofAlpinepeatlandswiththehelpofvolunteers.In the creeks flowing off the Bogong High Plains, 250 hectares of outlier infestations were also treated.

Western Victoria • IntheGrampiansNationalPark,ConservationVolunteersAustraliaandParksVictoriacollaborated on a project to eliminate satellite populations of introduced Sallow Wattle in the Grampians National Park. The project was facilitated by the dedication of 8,708 volunteer hours this year.

• AspartofheOtwayEdenproject,653weedinfestationscovering463hectaresweretreated in the Anglesea Heath, Great Otway National Park and Port Campbell national parks, Otway Forest Park and other Crown land reserves.

• AspartoftheGlenelgEdenproject,87hectaresofnewandemergingweedsweretreated in the Cobboboonee, Lower Glenelg and Mount Richmond national parks and Discovery Bay Coastal Park.


Native animal management

Programs to manage the impact of kangaroo and koala populations continued in several parks with the support of key stakeholders, including independent technical advisory committees.

At French Island, a contraceptive implant program has replaced relocation practices. This year 222 female koalas were implanted with contraceptives and released. A tree condition assessment program started with the University of Melbourne. Signs of recovery are now being seen in Manna Gum habitat.

At Mount Eccles National Park, Parks Victoria staff caught 160 female koalas, treating 137 with contraceptive implants before releasing them back into the park. The annual population survey has shown that the population of 4,873 koalas has remained relatively stable since 2006. Ongoing monitoring activities show that the trees remain in poor condition.

Monitoring in areas of the Great Otway National Park continued showing that koala populations in parks and private land are causing severe canopy defoliation.

Foot and aerial surveys of kangaroos have been completed in woodland habitat in Mallee parks. Population densities remain below target densities as an ongoing effect of the previous drought conditions.

Threatened species management

Parks Victoria works with the Department of Environment and Primary Industries, research partners and community organisations to protect threatened species in the four regions under Parks Victoria’s jurisdiction. Examples of some projects undertaken are outlined below.

Threatened species management

Region Project

Melbourne • WoodlandsHistoricPark–24EasternBarredBandicootswerereleasedtoapredator-proof enclosure within the park. This project was in partnership with Zoos Victoria and Conservation Volunteers Australia.

• MorningtonPeninsulaNationalParkoceanbeaches–ParksVictoriaconductedmonitoring and protected nesting sites of Hooded Plovers with Birds Australia and the Friends of the Hooded Plover.

Northern Victoria • Murray-SunsetandHattah-Kulkynenationalparks–inpartnershipwiththeVictorianMalleefowl Recovery Group, Parks Victoria continued the monitoring of the level of breeding activity of the Malleefowl. Malleefowl are currently unusually abundant following several years of good rainfall

• WyperfeldNationalPark–theMajorMitchellCockatooanditsnestsitesarebeingmonitored. The decline of hollow-bearing in Callitris pines is a key threat to this species. Four purpose-built nest boxes have been installed as a trial.

• Chiltern-MountPilotNationalPark–Around40captive-bredRegentHoneyeaterswerereleased into the park in April 2013. These birds will provide another boost to the Regent Honeyeater population which travel large distances seeking forest flowering events for their food. Radio transmitters were attached to about 25 of the birds.

Eastern Victoria • AcollaborativesurveyhasfoundtheMarch2011floodsintheUpperMurrayregion,including in Mount Lawson State Park, has benefited, the Booroolong Frog (Litoria booroolongensis). Populations have recovered including into sites from which they had disappeared during the previous drought.

• AlpineNationalPark–AcollaborativeprojecttoprotectthetinyShawGalaxias(one of the rarest fish in Australia) was undertaken in the upper reaches of the Macalister River, including installation of a temporary barrier and the removal of more than 700 trout from above the barrier.

Western Victoria • LittleDesertNationalPark–undertheWimmeraCatchmentManagementAssociation’sOrchid Conservation Project, volunteers from the Friends of the Little Desert and Australasian Native Orchid Society planted more than 400 Metallic Sun-orchids (Thelymitra epipactoides)

• GrampiansNationalPark–inNovember2012alargepopulationofSmokyMicewasfound in the Victoria Range. There were concerns that the February 2013 bushfire that burnt through 35,000 hectares of the Grampians, including 80 per cent of the Victoria Range may have impacted on the population. A study of the post-fire distribution and ecology of the Smoky Mouse is being studied in partnership with University of Melbourne and Museum Victoria.

Habitat restoration

The 2012–13 habitat restoration program delivered approximately 52 kilometres of direct seeding line, 188 hectares of manual revegetation planting, 3 kilometres of habitat protection fencing and four river mouth openings. The flagship Mallee restoration project contributed an additional 110 hectares of revegetation in Wyperfeld National Park and with Trust for Nature saw the revegetation of 100 hectares of Ned’s Corner Station.

The first helicopter surveys for goats in the Mallee occurred in 2012–13. The surveys aim to gather more information to improve goat control efforts and better protect semi-arid woodlands.

The conservation outcomes of habitat restoration activities include focussing on improved habitat for threatened species such as Helmeted Honey Eater and Leadbeater’s Possum (Yellingbo Nature Conservation Reserve), Southern Brown Bandicoot (Bunyip State Park), Grey Headed Flying Fox (Yarra Bend Park), Eltham Copper Butterfly (Pauline Toner Butterfly Nature Conservation Reserve), Powerful Owl (Mornington Peninsula National Park), Major Mitchell

Cockatoo (Wyperfeld National Park) and Spiny Peppercress (Lakes Beeac and Cundare Wildlife reserves).

Further conservation achievements in 2012–13 include the remediation of sites following weed and pest control (Castlemaine Diggings National Heritage Park, Point Nepean National Park and You Yangs Regional Park), revegetation of important heritage and riparian sites (Coolart Historic Reserve and The Pines Flora and Fauna Reserve), river mouth openings to improve water quality (Great Otway national parks and Port Campbell) and habitat manipulation to restore wetlands and frog habitat (Plenty Gorge Parklands). The habitat restoration program contributed to the protection and enhancement of significant cultural sites such as the Corroboree Tree Area at Albert Park Reserve and nationally significant areas such as Hattah Ramsar site. There were also successful habitat restoration projects at Wilsons Promontory National Park, Cape Liptrap Coastal Park, Western District Lakes Ramsar site, and Lower Maribyrnong River Land.

Australian Alps Cooperative Management Program

The Memorandum of Understanding in relation to the cooperative management of the Australian Alps national parks (MOU) covers eleven parks and reserves in the Australian Capital Territory, New South Wales and Victoria. In Victoria, these are the Alpine, Baw Baw, Mount Buffalo and Snowy River national parks and Avon Wilderness Park. The purpose of the MOU is to promote cross-border cooperation in the protection and management of this highly significant conservation area.

The Australian Alps Cooperative Management Program operates under the auspices of the Australian Alps Liaison Committee. The committee seeks to provide land managers with appropriate technical tools and sound scientific advice in management reports and strategies to assist in achieving the objectives of the MOU in delivering best practice land management across the region. Parks Victoria represents Victoria on the committee.


(Left to right) Image 1: Eastern Pygmy Possum, photographed as part of the Grampians Bioscan. Photo David Paul, Museum Victoria

Image 2: The Eastern-barred bandicoots program with Conservation Volunteers Australia, Zoos Victoria and Parks Victoria saw the release of 24 animals at Woodlands Historic Park.


Highlights of the program during the year included:

• a forum involving scientists and managers to share the work of academic research with operational challenges relating to management of biodiversity at a landscape scale

• a two-day gathering of field staff to consider the latest issues in invasive plant management with the focus on control techniques for Ox-eye Daisy, an emerging threat to the Alps

• the preparation of a statement on the cultural and spiritual values of the Australian Alps commenced in collaboration with Traditional Owners, to support the Australian Alps National Heritage listing

• the development of a suite of Australian Alps e-publication tools, including on-line touring maps and iPad service displays at three alps visitor centres

• the gathering of technical experts in walking track management from government agencies and external stakeholders to help deliver best practice.

River Red Gum parks – Active Forest Health Program

The Active Forest Health Program is an initiative developed as part of the creation of River Red Gum parks in 2009.

Parks Victoria is working with the New South Wales National Parks and Wildlife Service and the Department of Environment and Primary Industries to implement an ecological thinning trial in Barmah and Murray Valley (NSW) National Parks. Arising from the Victorian Environmental Advisory Council River Red Gum recommendations, the trial is seeking to assess whether ecological thinning can maintain or improve forest health and suitable habitat characteristics. The partners collaborated on a detailed scientific rationale, developed a monitoring program and completed pre-thinning monitoring. The project has been referred for further assessment under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999.

A number of planned burns in Red Gum Forest areas were undertaken in spring, late summer and autumn. The burns were conducted for both strategic and environmental outcomes.

Domestic firewood collection by the community was again permitted from several River Red Gum areas managed by Parks Victoria, including five sites in Barmah National Park.

Catchment and water management

Parks Victoria works in partnership with other agencies, catchment management authorities, local government and industry to deliver programs to protect and enhance Victoria’s parks and waterways.

Some systems experienced natural flooding, providing the opportunity for the recovery of plant and animal populations following the severe drought experienced since 1997.

In 2012–13, over 22,000 million litres of environmental water was delivered to wetlands and river systems that are part of, or adjoining, Parks Victoria-

Image 3: Living Murray Barge pumpstation at Hattah-Kulyne National Park. Photo Brendan Rodgers.

During 2012–13 the majority of Victoria’s rivers, wetlands and floodplains were subject to a year of average to wet conditions.

managed areas. Sites that received environmental water included Boals Deadwood in Barmah Forest, Gunbower Creek and wetlands within the North Central and Mallee Catchment Management Authority regions.

The watering was coordinated by the Victorian Environmental Water Holder, which works in partnership with waterway managers to integrate environmental watering with river, wetland and catchment management activities to achieve the best ecological outcomes.

After years of planning, Parks Victoria delivered major structural works at Hattah Lakes (Hattah-Kulkyne National Park) during 2012–13 to enable the efficient use of environmental water and maximise ecological benefits. These works form part of the Living Murray initiative and constitute Victoria’s largest environmental project. Works also commenced at Lindsay–Wallpolla Islands (Murray Sunset National Park) and Hipwell Road (Gunbower National Park), with all site-specific infrastructure funded through the Murray Darling Basin Authority’s Living Murray Environmental Works and Measures Program.

Work associated with the phase-out of grazing from streamsides in the new River Red Gum parks continued, in particular the negotiation of agreements with various licensees to erect fences and off-stream water systems.

Parks Victoria delivered the third year of works in accordance with a three-year agreement with the Port Phillip and Western Port Catchment Management Authority to protect and improve the environmental values within the Western Port Catchment.

In the Alpine National Park, from the Bogong High Plains to Davies Plain, Parks Victoria participated in the control of peatland weeds.

Protecting marine values

A number of established projects continue to improve the knowledge base that underpins the management of Victoria’s marine national parks and sanctuaries. Using new information gathered through research, monitoring programs and other sources, Parks Victoria updated the original marine natural values reports developed in 2003 for all marine national parks and sanctuaries, which were released in 2012–13.

The underwater “bioscan” surveyed 20 kilometres of coastline, extending from the Twelve Apostles Marine National Park to the Arches Marine Sanctuary. The survey revealed rare sightings of hundreds of species including rich fish life, crayfish, Port Jackson sharks and colourful coral gardens. Scientists documented this diverse underwater world with thousands of images and hundreds of hours of spectacular video footage.

Parks Victoria and Deakin University completed a research project to carry out hydroacoustic mapping of Wilsons Promontory Marine National Park. This research provided invaluable data to complete marine mapping of the marine national parks and sanctuaries. A study of one of the largest Australian fur seal breeding populations in Victoria on Kanowna Island at Wilsons Promontory National Park.

Responses to marine pests continue to forms a major part of Parks Victoria’s research focus. Over the past year, the organisation continued to engage in activities to control populations of Northern Pacific Seastars (Asterias amurensis). Research was undertaken to inform management of the species in Tidal River Estuary, Wilsons Promontory National Park, including a genetic analysis of Seastar populations in the river for comparison with populations in Port Phillip Bay. Parks Victoria conducted monitoring surveys for the species in Tidal River in the Wilsons Promontory National

In June, scientists from Museum Victoria, Deakin University and Parks Victoria undertook a comprehensive biological survey of the Twelve Apostles Marine National Park.

Image 4: Parks Victoria staff joined tour operators and stakeholders to remove Northern Pacific Seastars at Pope’s Eye, Port Phillip.



Research program

Region Project

Statewide • AreviewofthreatsandmanagementneedsfortheprotectionofHoodedPloveracrossthe state

Melbourne • Astudytoimproveunderstandingofhabitatuseandmanagementoftheimpacts of predation by Little Ravens on other native bird species in the Port Phillip Bay (Western Shoreline) and Bellarine Peninsula Ramsar Site

• AstudyoffactorsassociatedwithchangesinthesizeandstructureoftheEasternGreyKangaroo population at Serendip Sanctuary

Northern Victoria • ResearchtoexaminetheresilienceoffloraandfaunaintheBarmah,Gunbower, Hattah-Kulkyne and Murray-Sunset national parks during major drought periods

• ResearchtobetterunderstandhowfireandfloodpatternsinGunbowerNationalParkhave changed following European settlement

Eastern Victoria • TwoprojectsintheAlpineNationalPark,whichfocussedonimprovingsurveillanceandmanagement for Hawkweeds and Willows, which pose a major threat to biodiversity in alpine and sub-alpine ecosystems across Victoria

• Aprojecttoprovideabetterunderstandingoftheabundanceofgrazingspeciesandhow they influence vegetation recovery following fire on Yanakie Isthmus in Wilsons Promontory National Park

Western Victoria • TwoprojectsintheGrampiansNationalParktoexaminetheresponsesofaquaticandterrestrial fauna to fire and flood and identify critical refuge habitats to enable recovery of fauna. A further project in Grampians National Park examined the Sallow Wattle expansion and what this means for other vegetation

• AcollaborationbetweenParksVictoriaandtheMuseumofVictoriatoundertakeabioscan of sections of the Grampians National Park.

Park, Shallow Inlet Marine and Coastal Park, Wilsons Promontory Marine National Park and Wilsons Promontory Marine Park.

Parks Victoria worked with Fisheries Victoria in 2012–13 to assess marine compliance issues and opportunities and to develop an integrated compliance plan. Parks Victoria contributed to the Victorian Recreational Fishing Guide App, which includes a new feature to allow users to locate the nearest marine national park or marine sanctuary, when out on the water.

Parks Victoria reviewed signs and other tools to communicate the boundaries of all marine national park sanctuaries to the public,

particularly boaters and fishers. This has resulted in the development of improved signage for boat ramps and other key access points and, in sheltered waters, the installation of in-water piles to better mark the boundaries of protected areas.

The marine monitoring program aimed to provide information on the status of natural values and the effects of threatening processes. Monitoring programs spanned many of the marine national parks and marine sanctuaries including Point Addis Marine National Park and Jawbone and Ricketts Point marine sanctuaries.

Staff developed new monitoring methods and guidelines for the Sea Search community-based monitoring program. This program was conducted in eight marine national parks and sanctuaries.

Research program

Parks Victoria’s Research Partners Program aims to gather information to ensure evidence-based decision-making. Collaborative applied research with universities and other research institutions continues to provide valuable information for park managers.

During the year, new research was initiated to address a number of important park management questions. Projects included:

This new research adds to a number of established projects that are designed to improve management of Victoria’s parks and reserves by building understanding of the areas. Some on-going projects include:

• three projects assessing the impacts of fire on examination of biodiversity and vegetation structure in the Alpine, Great Otway and Heathcote-Graytown national parks

• evaluation of the effectiveness of techniques for preventing the spread of Phytophthora cinnamomi in Brisbane Ranges National Park

• a multi-partner project to build a greater understanding of the genetic connectivity of populations of different species of birds among patches of remnant vegetation in fragmented landscapes across Victoria

• research to evaluate the feasibility and application of adaptive management approaches for restoration of semi-arid woodland vegetation in Wyperfeld National Park and other environments in Murray-Sunset and Wyperfeld national parks

• a study of the ecology and habitat use of insectivorous bats in the Greater Melbourne area to identify areas of critical habitat and inform how best to preserve Melbourne’s bat fauna.

Monitoring

Monitoring is essential to understanding, evaluating and improving the management of Victoria’s parks and reserves. Parks Victoria’s Signs of Healthy Parks monitoring program achieves this through the establishment and implementation of systematic monitoring of biodiversity assets

and threats at targeted locations across parks and reserves.

Monitoring undertaken through this program included assessments of the condition of native vegetation to better understand the level of pest plant infestation and the identification of selected species of threatened and other native wildlife.

Ecological fire

In 2012–13, progress was made towards determining appropriate long-term ecological fire regimes through the development of landscape-scale fire ecology assessments and risk assessments. This information is used throughout Victoria as part of integrated fire management and to inform fire operations plans. A significant number of parks across the state are now assessed.

A risk-based landscape-scale fire management modelling case study, which has been undertaken in the Otways, is being rolled out across the state through the Department of Environment and Primary Industries-led bushfire risk landscape teams. This provides strategic-level ecological input into fire management planning.

Planned burning guides for the 2003 Alpine fires and the 2006–07 Great Divide fires are also informing fire management planning.

Ongoing monitoring programs examining the effects of fire regimes on biodiversity are applied in parks and reserves across Victoria. Programs such as “HawkEye”, Landscape Mosaic Burn monitoring and pre and post-fire monitoring continue to guide efforts to improve fire preparedness, while reducing impacts on biodiversity. The key areas for the HawkEye program include the East Gippsland, Mallee and Otways parks and reserves.

Parks Victoria’s conservation objectives are being incorporated into fire ecology planning in the Greater Grampians landscape, including Grampians National Park, and Black Range State Park and Barwon-Otway landscape, including Great Otway National Park.



Culture and Heritage

The ecological landscape captures and reflects a rich cultural landscape. Creating and celebrating spiritual or emotional connections with this cultural heritage has a significant community benefit.

Parks Victoria manages places with a rich and diverse Aboriginal history that continue to form part of living Aboriginal culture. We also manage places with significance to more recent European history. Our approach is integrated and inclusive and reflects the shared nature of Victoria’s heritage.

Caring for Country

Parks Victoria is privileged to work with many Victorian Traditional Owner organisations to manage their Country on behalf of the community. Some of these organisations are currently in native title mediation. Parks Victoria will continue to play a critical role in working with Victoria’s First People to care for Country together.

Traditional Owner Partnerships

In 2012–13, Parks Victoria met its legislative obligations by completing assessments required under the Aboriginal Heritage Act 2006 and Native Title Act 1993 completed emergency works as required by the Heritage Act 1995, and made significant progress to complete 2010–11 cultural heritage flood recovery works in the Grampians and Wilsons Promontory national parks.

Objective

Protect culture and heritage in parks

Image 5: NAIDOC week at Barmah National Park. Photo by Tracey O’Keefe.

Working together to establish strategic direction and the formation of Traditional Owner Land Management Boards has been the main focus for 2012–13. The Yorta Yorta, Dja Dja Wurrung and Gunaikurnai peoples are in joint management with Parks Victoria following outcomes under the Traditional Owner Settlement Act 2010. The Barengi Gadjjin and Gunditjmirring peoples are in cooperative management with Parks Victoria.

In East Gippsland, the Gunaikurnai Traditional Owner Land Management Board was established. This will govern the joint management arrangements for Mitchell River, Tarra-Bulga, The Lakes and Snowy River (New Guinea Caves) national

parks, Lake Tyers State Park and Gippsland Lakes Coastal Park. Four indigenous cultural rangers were appointed to work on jointly managed land. The Gunaikurnai and Parks Victoria developed a works plan to jointly manage the Tara Bulga and Morwell nationals parks.

Key projects implemented during 2012–13 with Traditional Owners include the development of the Ngootyoong Gunditj Ngootyoong Mara South West Draft Management Plan, involving the Budj Bim Council and Gunditj Mirring Traditional Owners. This plan covers Indigenous Protected Areas, Indigenous-owned land and parks and reserves.

The strong partnership continues at Mount Eccles National Park with the re-appointment of the Budj Bim Council in 2012–13. Works in the park this year include upgrades of visitor facilities construction of two new gas barbecues and shelters, improvements to the shower and toilet blocks, the sealing walking of tracks and maintenance of the Budj Bim Trail.

Parks Victoria supported the work to establish of the Yorta Yorta The Yorta Yorta Traditional

Owner Land Management Board, which is the second board of its type to be established in Victoria, following establishment of the Gunaikurnai Traditional Owner Land Management Board in 2012.

Co-operative management arrangements are being implemented in north-western Victoria, where Parks Victoria continued to work with the Barengi Gadjin Land Council Aboriginal Corporation (the representative body of the Wotjobaluk, Jaadwa, Jadawadjali, Wergaia and Jupagalk Peoples) in the co-operative management of Little Desert and Wyperfeld national parks and Lake Albacutya Park.

Parks Victoria continued to work with other Traditional Owner groups across the state in the management of various parks. These included:

• in the Alps, Parks Victoria worked with the Traditional Owners on a range of management issues associated with various parks

• in southern Victoria, the Wurundjeri, Bunurong and Boonwurrung Peoples were engaged in cultural heritage assessments at

CULTURE AND HERITAGE

A highlight of the year was the signing of the Dja Dja Wurrung Clans native title settlement agreement on 28 March 2013. This provides for the granting of Aboriginal title over, and for joint management of, Greater Bendigo National Park, most of Kara Kara National Park, and Kooyoora and Paddys Ranges state parks in north central Victoria.


Living heritage

Region Project

Melbourne • Completionofthe$1.5millionKokodaMemorialTerraceandWallprojectattheDandenong Ranges National Park. Parks Victoria worked with members of the 39th, 2/14th, 2/16th Battalions Associations to establish a Kokoda memorial.

• After140yearstheroofoftheWerribeeParkMansionwasreplacedusingmatchingmaterials and traditional workmanship. Solar panels were installed in the roof to offset some of the power requirements of the mansion.

• ParksVictoriainstalledavintagetramatWattleParkinMarch2013,replacingthe one burnt by vandals in 2011. The Bendigo Tramways Trust reconditioned the tram with a fresh coat of paint and new fittings to suit its outdoor home. The number 861 “W-Class” tram, which was first used in the World War 2, was donated by the Victorian Government.

Northern Victoria • ParksVictoriacompletedalandusehistoryresearchprojectintheRiverRedGumparks.

• AspartofAustralianHeritageWeek,ParksVictoriahostedacommunityfaironSunday14 April 2013 to celebrate the 150th Anniversary of Day’s Mill, Murchison. Two thousand visitors attended the Explore the Past: Live the Present: Day’s Mill and Farm 150th Anniversary celebration.

• AculturallandscapemappingprojectintheCastlemaineDiggingsNationalHeritageParkhas identified and mapped a number of historic features in the park. This project will inform future park and fire management.

Eastern Victoria • Tomark150yearsoftheGaboIslandLighthouse,ParksVictoriaandtheAustralianMaritime Safety Authority (AMSA) unveiled a commemorative plaque on the island.

• ReconstructionofthehistoricentrancearchtotheBuchanCavesReservewascompleted.

• ParksVictoriaandtheVictorianHighCountryHutsAssociationcompletedrepairsandmaintenance to historic huts at Moroka Hut and Wallace Hut in the Alpine National Park and Frys Hut in the Howqua Hills Historic Area.

Western Victoria • SixadvancedtreeswerereplacedintheAvenueofHonourtocommemoratethe1882mining disaster at the Australasian No.2 Mine Historic Area near Creswick. Fencing works around the mine were also undertaken.

• AtCapeNelsonLighthouseReserve,ParksVictoriaoversawtherepairofstoneworkandpaths and the extensive plumbing works to upgrade both the potable water and fire service supplies.

• AtCapeOtwayLightstation,arangeofconservationandrepairworkswerecompleted on the historic buildings including rust treatment and repainting of the exterior of the lighthouse lantern, roof plumbing repairs to the lightkeeper’s cottages and telegraph station and repairs and painting of timber fences.

various locations as part of the Melbourne Bushfire Protection Program

• at Wilsons Promontory National Park – the Boon Wurrung, Bunurung and Gunaikurnai Peoples, under a memorandum of understanding between Parks Victoria and the Traditional Owners.

Parks Victoria established an Aboriginal Leadership Team in 2012–13, which provides a skill-based, high level of support and advice to the Chief Executive and Executive Team on Aboriginal Values and how they relate to management of Country.

Living heritage

In 2012–13, Parks Victoria began a number of significant living heritage works and completed several important projects around Victoria.

CULTURE AND HERITAGE

Visitor and Community

Visitor monitoring and research

The Visitor Number Monitor is a biennial survey that estimates and then reports on trends relating to the number of visits to Victorian national and state parks, metropolitan parks as well as piers and jetties around the bays.

In 2012–13 Victoria’s parks and waterways attracted 95.8 million visits. Of these visits, 51.2 million were to parks (including 34.8 million visitors to national and state parks) and 44.6 million were to piers and jetties around the bays.

During the year, Parks Victoria undertook monitoring of visitor numbers across the parks estate and conducted more detailed site-based monitoring at Wattle, Braeside and Lysterfield parks, Cardinia Reservoir, Dandenong Valley Parklands and Croajoingalong and Yarra Ranges national parks. As part of the assessment of visitor numbers to parks, monitoring included the level of use of the Port Phillip and Western Port bays and the use of marine national parks.

Objective

To deliver opportunities for people to use and enjoy their parks and waterways

Parks and waterways play an important role in enhancing and improving quality of life in both urban and regional areas.

Access to open spaces and the natural environment can significantly influence levels of physical activity. As the social and economic challenges created by increasing levels of lifestyle-related illnesses continue to rise, creating connections between parks and people is an important part of the preventative health solution.

The connection between community health and wellbeing and a resilient park system is expressed by Parks Victoria as Healthy Parks Healthy People.


Improving and developing facilities

A particular focus in 2012–13 was implementing the Government’s commitment to encourage more people to visit and enjoy our world-class natural tourism attractions while maintaining important environmental safeguards.

The Minister for Environment and Climate Change released guidelines for tourism investment of significance in national parks, following the Government’s response to the Victorian Competition and Efficiency Commission’s inquiry into Victorian tourism. Legislation was introduced into Parliament to provide for leases of up to 99 years for sensible and sensitive tourism proposals. The Government announced a $7 million investment in the Mount Buffalo Chalet to refurbish the original building and provide a day visitor centre and potentially a café and to make the site ready for future investment as the opportunity arises

Significant essential services works were undertaken at the Quarantine Station in Point Nepean National Park, and an expressions of interest process commenced for appropriate

private sector investment in the Quarantine Station. The works program included upgraded roads, car parks and essential services and infrastructure to give visitors better access to the historic Quarantine Station. An ongoing buildings maintenance program to preserve the Quarantine Station’s many historic buildings has continued alongside the completion of conservation projects to the 1840’s Shepherds Hut, Quarantine cemetery fence, quarantine boundary fence and crematorium.

Parks Victoria’s major works program comprised approximately 147 projects. Major asset repair and renewals during 2012–13 included:

• renewal of the Mason Falls and Jehosaphat Gully Picnic Areas in Kinglake National Park following the 2009 wildfires, including picnic tables provided by the local branch of Men’s Shed

• upgrades to toilets at Johanna Beach, Parker River and Aire River in the Great Otway National Park and an upgrade of the waste water treatment system at the summit toilet in the Arthurs Seat State Park

• safety compliance upgrade to the historic Upper Teddington Reservoir dam wall in the Kara Kara National Park

• repairs to the One Tree Hill Lookout at the Greater Bendigo National Park

• road repairs at various locations including the Mitchell River and Lake Eildon national parks and the Sky High access road in the Dandenong Ranges National Park

• completion of an upgrade to Lyrebird Track at the Dandenong Ranges National Park to form a loop walk with the Memorial Walk (The 1000 Steps).

New asset works included:

• completion of new visitor facilities, a fishing pontoon and access at the Devilbend Natural Features Reserve on the Mornington Peninsula

• extension of the Clarke Shields Pavillion at Albert Park to provide improved change rooms, toilets, a kitchen and clubroom, undertaken with funding contributions from sporting clubs

Image 6: A new car park built as part of significant works undertaken at Point Nepean National Park.

• construction of a new toilet along the Great Ocean Walk at Cape Otway Light Station

• establishment of the Kokoda Memorial Terrace and Wall at the Dandenong Ranges National Park.

Improving and maintaining bays and waterways

Parks Victoria is responsible for the management of the recreational use of Port Philip, Western Port and Port Campbell, including the management of piers, jetties, moorings, dredging and the placement and maintenance of navigation aids for recreational boating to agreed standards and in accordance with the Port Management Act 1995 and the Marine Safety Act 2010.

Works carried out in 2012–13 to improve the infrastructure of the bays included:

• renewal of the Point Lonsdale Jetty, including replacement of handrails and new fishing rod holders

• upgrade of the Hastings Pier, including refurbishment of the heritage timber sections and replacement of the lower landing with a floating pontoon for safer access and

improved access for people with disabilities

• upgrade works to boat launching and berthing facilities at Patterson River near Carrum

• progress in a major project to renew and improve the Mornington Pier breakwater.

• commencing works to St Kilda Pier precinct to improve public access and build breakwater infrastructure.

Other achievements included:

• supporting and providing advice to the Department of Transport, Planning and Local Infrastructure for the development of a Local Ports Strategy

• completing new boating zones for Port Phillip between Mount Martha and Portsea on the Mornington Peninsula.

Central to Parks Victoria’s functions as local port manager is the maintenance and improvement of marine assets for commercial and recreational users. Parks Victoria worked closely with the Department of Transport, Planning and Local Infrastructure in 2012–13 to communicate the asset condition

status of local port infrastructure it manages and the priorities for remedial works.

A priority in the 2012–13 year was the delivery of safe bays and access to critical ferry services and recreational vessels. Parks Victoria removed 141,662 m³ of sand in order to maintain safe charted depths at seven locations across Port Phillip and Western Port.

In its role as manager of many of the piers and jetties around Port Phillip and Western Port, Parks Victoria continued to promote the dangers of diving off piers with a targeted media campaign over the summer.

Swim Safe, a partnership with Life Saving Victoria and Parks Victoria, enabled the delivery of aquatic education programs to teach the community about safety in inland and coastal waterways. More than 1000 culturally and linguistically diverse community members participated.

VISITOR AND COMMUNITY

Image 7: The safety on piers campaign. Parks Victoria Ranger Mark Morrisy and Para-Olympian Nazim Erdem, who became a paraplegic as a result of a pier diving accident in his 20s.


Asset Management

Parks Victoria’s asset portfolio consists of over 28,000 terrestrial and maritime assets. Asset management continues to be a significant challenge. Asset management activities in 2011–12 were targeted at meeting risk management objectives and maintaining critical services in high priority parks and waterways. Assets on land managed by Parks Victoria as Committee of Management are recognised in the financial statements of this report. Assets management by Parks Victoria on behalf of the Crown are recognised by DEPI in its financial statements.

Tracks and trails

To protect the integrity of tracks across public land, Parks Victoria and DEPI again worked closely with Four Wheel Drive Victoria to implement seasonal road closures. These measures serve to protect the environment and catchments from runoff and protect visitors from using tracks that can get dangerous in winter weather conditions.

Volunteers

Each year, friends, corporate and special interest groups, individuals, educational institutions and partner organisations provide invaluable support to Parks Victoria by dedicating time to improving the parks network. This year 218,970 volunteer hours were recorded across 180 parks and reserves. This translates to 29,751 volunteer days and is the equivalent to Parks Victoria employing an additional 123 full time staff members.

Friends, community and recreational user groups made up 77 per cent of all volunteer hours. Partner organisations contributed 7 per cent of the volunteer effort and individual volunteers accounted for 6 per cent of all volunteer hours.

The remaining 10 per cent was contributed by educational institutions, corporate groups and others.

Fifty-six per cent of volunteering occurred within the Melbourne Region, with the remaining 44 per cent spread across the Eastern (23 per cent), Northern (12 per cent) and Western (9 per cent) regions.

Campground Host

Parks Victoria welcomed 28 Campground Host volunteers in 2012–13. These volunteers were placed in peak visitation campgrounds in 11 national and state parks during the summer and Easter holiday periods. The hosts provided assistance to field staff and campers. This year the Victorian program

Volunteer contribution: 2007–2013 (hours)

2007–08 191,000

2008–09 161,094

2009–10 192,645

2010–11 190,819

2011–12* 149,521

2012–13 211,640

* Recorded volunteer hours in 2011–12 did not truly reflect actual volunteer hours due to protected industrial action halting the recording of volunteer hours in some park locations.

Image 8: The Tarrengower Cactus Control Committee contributed 1,331 hours to the removal and treatmnent of Wheel Cactus in the Maldon Historic area and surrounds. Across 10,000 hectares of infected land, the group has reduced the impact by around a third since being established around 6 years ago.


provided two hosts to assist with the New South Wales Campground Host program. This further strengthened Parks Victoria’s partnership with the New South Wales Parks & Wildlife Service.

Parks Victoria and Deakin University students worked together on the Roving Campground Hosts initiative, a pilot program in the Great Otway National Park. As part of the pilot, six students applied and spent time with Great Ocean

Walk field staff, hikers and campers, providing information and assistance.

Parks Victoria once again partnered with Four Wheel Drive Victoria to run the highly successful 4WD Camp Host program. Four Wheel Drive Victoria members participated in the program in the Alpine, Barmah, Brisbane Ranges, Croajingolong, Grampians, Great Otway, Lake Eildon and Snowy River national parks and other parks.

Healthy Parks Healthy People Grants

Parks Victoria’s Healthy Parks Healthy People Grants were again available to community groups to develop and implement environmental projects in parks with the help of local Parks Victoria staff. In 2012–13, 122 Healthy Parks Healthy People grants were issued, totalling $385,000. These included:

Healthy Parks Healthy People Grants

Region Project

Melbourne • KinglakeNationalPark–FriendsofLyrebirds–tocollectimagesandfootageofthe2013Lyrebird survey for display at the park office visitor centre to encourage future patronage of the survey and produce an entrance sign to head the recently rebuilt Lyrebird Circuit Track at the Masons Falls picnic area

• YellingboNatureConservationReserve–FriendsoftheHelmetedHoneyeater–torestoredegraded sections of Woori Yallock Creek important to the Helmeted Honeyeater as future alternative breeding sites

• ThePinesFlora&FaunaReserve–FriendsofThePinesFloraandFaunaReserve– to remove woody weeds and plantings of local flora which will encourage endemic species to re-colonise areas

Northern Victoria • GunbowerNationalPark–FourWheelDriveVictoria–topromotesustainablefourwheel driving in Gunbower National Park through developing a four wheel drive guide to the park, hosting an event to launch promotional material and organising a 2013–14 Campground Host program in the park

Eastern Victoria • MitchellRiverSiltJetties–FriendsofParksandReservesoftheGippslandLakes–torestorethe Mitchell River Silt Jetties by revegetating areas and controlling unrestricted vehicle access while still allowing pedestrian access

Western Victoria • GreatOtwayNationalPark–CapeOtwayConservationEcologyCentre–tosurveyabundant koala populations and monitor tree canopy condition

• Southwestcoastalparksandreserves–FriendsoftheGreatSouthWestWalk– to repair track surface, slash track, trim trackside vegetation and maintain campsites, water supplies, directional and interpretive signs, equipment and tools in liaison with volunteers and the community

• GrampiansNationalPark–SummerdayValley–Cliffcare(VictorianClimbingClub)– to repair tracks with boardwalks and dry stonework to combat severe erosion and protect tree roots on highly trafficked track sections

Health Partnership success in the Barwon Region – Active In Parks

Active In Parks provides physical activity programs and promotes parks as settings for better health. Supporting and encouraging health and community leaders to enhance their services through physical activity in parks, the program was initiated by the People and Parks

Foundation in partnership with Parks Victoria and is sponsored by Medibank Community Fund.

The program won the 2013 National Preventative Health Award, which encourages leadership in the area of preventive health, and recognises sectors of the Australian community that work to promote health and well-being.

Healthy Parks Healthy People, Active in Parks

The Healthy Parks Healthy People Active in Parks initiative continued to deliver programs to improve the physical and mental wellbeing of communities with more than 2,000 participants. The program focuses on improving access and increasing visitation to parks by groups and individuals that are underrepresented in


parks such as the aged, the economically disadvantaged, culturally and linguistically diverse communities, people with a disability and youth.

Park access for visitors with disabilities

The initiative to make all-terrain wheelchairs available in parks for visitors with disabilities continued this year. Children’s beach wheelchairs were provided in December to the Wilsons Promontory National Park and Cape Conran Coastal Park.

Trailrider chairs are also now available at Lysterfield Park and due to partnerships with local government, in parks in the areas around the Hepburn, Moorabool and Surf Coast shires.

Eleven group walks were held with Blindsports Victoria in parks around Melbourne and Geelong for visitors who are blind or vision impaired, accompanied by trained volunteer park companions. As part of the program, a camp at Tidal River, Wilsons Promontory National Park, was held for eight visitors who are blind or vision impaired.

In partnership with carer support organisation Brainlink, Parks Victoria held four group activities in parks around Melbourne for carers of family members with dementia. Activities provided in the parks included laughter yoga, park walks and art therapy sessions. A volunteer conservation program was established in the Grampians National Park for 14 adults with intellectual disabilities in partnership with community organisation McGregor House. The aim of the program was to provide volunteer opportunities in parks such as Sallow Wattle weed removal and other park maintenance projects.

Among the many other programs in 2012–13, Parks Victoria and Eastern Access and Community Health worked together to establish a volunteer program at Maroondah Reservoir Park

for five unemployed adults with disabilities. The aim of the program was to provide practical experience in horticulture that may lead to paid employment.

Engaging with culturally and linguistically diverse communities

This year saw the revival of the historic Werribee Kitchen Garden, which is once again full of thriving vegetables and herbs thanks to a group of volunteers from the ethnic community of the Wyndham area. A registered training organisation is providing on-site classes in vocational English and horticulture accreditation. The project is partnership between the Adult Multicultural Education Service, Parks Victoria and the Werribee Mansion Hotel, the latter of which will have a share of the fresh produce for its restaurant. Additional funding through Skills Australia is supporting the formal training component of the project. Should this project prove successful there are plans to replicate it in other parks across the Western Melbourne District in line with Parks Victoria’s Healthy Parks Healthy People philosophy.

(Left to right) Image 9: Engaging with culturally and linguistically diverse communities at Brimbank Park

Image 10: A new children’s beach wheelchair at Wilson Promontory National Park proved popular

Parks Victoria entered two teams in the 2013 Trailwalker event in April. The purpose of the team entries was to raise public awareness of the all-terrain wheelchairs in parks and to support Oxfam in its fundraising efforts.

Parks Victoria provided Discover Parks grants to 12 small community organisations, enabling more than 322 people from culturally and linguistically diverse communities, seniors and people with a disability to participate in recreational and social activities in 24 parks.

In partnership with Springvale Community Aid and Advice Bureau, Parks Victoria held two park visits for 42 newly-arrived culturally and linguistically diverse communities in South East Melbourne. A group camp was also held in the Upper Yarra Reservoir Park as part of the program. The aim of the program was to introduce new arrivals to the health benefits and pleasure of visiting Victoria’s parks.

Engaging younger and older members of the community was the focus of other programs this year. Parks Victoria and the YMCA Victoria held a camp at Point Nepean Quarantine Station with 14 disadvantaged youth from the Mornington Peninsula Shire.

Youth Discover Parks grants were provided to eight youth-focussed community organisations. One of these grants enabled young people, inspired by Parks Victoria managed parks, to write creative writing pieces, which were then printed on posters to inspire others.

Parks Victoria and the Council of the Aging held nine outdoor recreation sessions at Braeside Park for 25 older adults. The aim of the program was to get older adults physically active in parks and to provide social opportunities for older people feeling isolated in the community. Activities provided in the park included bocce, T-ball, gym and Tai Chi.

Building staff capacity to engage with communities was a focus for the year with diversity training to assist staff engaging multicultural communities and persons with a disability. Approximately 85 staff have attended the courses across all regions, with 15 staff trained

under the “Train the Trainer program” now set to deliver courses in the future.

Tourism

Supporting licensed tour operators

As at 30 June 2013, 350 tour operators were licensed. Of these, 77 per cent held a one-year licence, 20 per cent held a three-year licence and three per cent held a ten-year licence. Of the 350 licensed operators, 73 were new operators. Revenue generated from licensed tour operators for 2012–13 was $184,442 in application and use fees.

Tour operators provided activities for 84,941 people during the year – 26,539 adults and 58,402 children. Bushwalking remains the most common activity offered by operators, with 44 per cent offering it. Other activities include bus tours (offered by 31 per cent), bird watching (offered by 21 per cent) and coastal walking (offered by 16 per cent).

(Left to right) Image 11: Parks Victoria’s TrailRider team in the OXFAM Trailwalker. Photo courtesy OXFAM.

Image 12: The Werribee Kitchen Garden sprang back to life with the help of volunteers.

“ It was beautiful and the walks were wonderful. It gave me an inner peace. The environment was so soothing and therapeutic.”

Participant, Gippsland Multicultural Services trip to Tarra Bulga



Walk Victoria’s Icons

Parks Victoria continues to lead the promotion and development of the Walk Victoria’s Icons initiative. Achievements include:

• completion of approximately 30 kilometres of track upgrades and new walking track on the Great Ocean Walk and commencement of the Great Ocean Road pedestrian underpass and link track to extend the walk to finish at the Twelve Apostles Visitor Centre. These works are part of a $4.2 million project funded by Regional Development Victoria, including upgrades of 23 kilometres of existing track, re-alignment of 4.7 kilometres of track in 2012–13.

• significant progress has been made on the first stage of the Grampians Peaks Trail, with upgrades to 13.5 kilometres of walking tracks between Halls Gap to Borough Huts Campground via Rosea Hiker Campsite.

• completion of walking track upgrade works and new camping facilities at two sites on Falls to Hotham Alpine Crossing. The development of the multi-day walk was

co-funded by the Australian Government and the Victorian Bushfire Recovery Fund

• completion of the Mallacoota Coastal Walk, as part of the East Gippsland Short Walks project, funded by Regional Development Victoria. The project was a joint initiative between Parks Victoria and East Gippsland Shire.

NatureWise

NatureWise is a program owned and operated by Conservation Volunteers Australia (CVA) which provides certified ecotourism products that combine nature-based tourism experiences with conservation activities. Currently there are two NatureWise products operating in Victoria as part of the CVA-Parks Victoria partnership: Victorian Alps Owls monitoring in Baw Baw National Park and Tiger Quoll monitoring in the Great Otway National Park.

Education

Parks Victoria delivered face-to-face education and interpretation programs to approximately 19,220 visitors, including 7,653 school students.

Additional resources were uploaded to the online student learning resource, EnviroActive, which focus on marine and alpine habitats and provide information and photos to help students to learn about these habitats.

Parks Victoria organised a Kids Teaching Kids event at Point Nepean National Park with 230 students from the Mornington Peninsula area. The event involved students studying a chosen topic in the months leading up to the event and then preparing and delivering a presentation to schools at Point Nepean.

Image 13: The popular “Kids teaching kids” event at Point Nepean National Park

The Junior Ranger program continued in 2012–13. Targeted at primary school aged children, these activities attracted 9,529 children and parents to 24 parks.

Visitor advice and bookings

Parks Victoria provides information, advice and bookings services to visitors to parks under its management. Achievements in 2012–13 were:

• receiving 2,362,171 visits to the Parks Victoria website

• involving staff in 63 events around the state, with Ranger Roo appearing at 14 events

• responding to 108,751 calls and 9,646 emails received at the Information Centre (13 1963).

Commercial operations

Parks Victoria engages in a range of commercial activities that produce revenue to support the agency.

During the year, Parks Victoria began a comprehensive review of its user fees and charges using the Department of Environment and Primary Industries’ Pricing Framework for cost-recovery pricing of permits and fees for service activities on public land. Fine weather over peak holiday periods this year resulted in high occupancy in campgrounds across the state, particularly at Wilsons Promontory, Lake Eildon and Cape Conran. Lake Eildon

National Park recorded its highest occupancy ever, with more than 16,000 people staying overnight in 2012–13 – an increase of 16 per cent from last year.

Online bookings for camping and accommodation increased by 49 per cent in 2012–13. Twelve parks are now available to be booked online.

Albert Park and Melbourne’s bays and waterways were popular venues for events again this year. In November, the Taste of Melbourne festival moved lakeside to Albert Park and was re-launched as an alfresco fine dining event.

Parks Victoria continued to work with the selected a consortia led by Simon McKeon (The Arthurs Seat Tourism Group) as the preferred tenderer to redevelop and operate the closed Arthurs Seat ChairIift. The consortia is finalising its concepts for a contemporary all weather gondola in preparation for a planning permit application.

Parks Victoria has continued to work with preferred proponents as they progress planning for tree-based adventure facilities at Yarra Flats and Toolangi.

Parks Victoria continued to support the Department of Environment and Primary Industries’ planning for the re-opening of Mount Buffalo Chalet. Works on-site included the removal of asbestos and the cataloguing of heritage items.

Leases and licences

Parks Victoria finalised 86 agreements, including leases, licences and various consents, in 2012–13, and provided ongoing management support for more than 450 lease and licence agreements across the state.

Image 14: Visitors to the State Coal Mine Visitor Centre.



Bushfire response

Parks Victoria supported the Department of Environment and Primary Industries and the Country Fire Association during what was as an above average fire season. In 2012–13, fires affected the Alpine National Park and reserves, Lower Glenelg National Park and the Grampians National Park.

Over the season there were 866 bushfires that burnt an area of 201,630 hectares. Parks Victoria contributed 126 full time equivalent staff to support the bushfire response. The organisation also deployed staff to Tasmania and New South Wales to support agencies responding to bushfires around Hobart and Shoalhaven.

Bushfire prevention

To support bushfire prevention activities, Parks Victoria employed 177 seasonal firefighters to complete bushfire prevention works such as slashing, clearing roads and tracks and preparing infrastructure for the fire season.

Parks Victoria plays a significant role in supporting the Department of Environment and Primary Industries to deliver Victoria’s annual planned burn program. For 2012–13, the Department of Environment and Primary Industries’ planned burn program target was 250,000 hectares; 255,121 hectares was eventually treated. Of the treated areas, 108,344 hectares was under Parks Victoria’s statutory control.

Fire and Emergency Management

Helping parks and waterways and their surrounding communities to prepare for, respond to and recover from bushfires, floods and other emergencies is a key focus of Parks Victoria.

Working with the Department of Environment and Primary Industries, Parks Victoria will continue to develop its fire and emergency management systems as climate change increases the severity and frequency of emergency events.

Objective

Prepare for, respond to and recover from fire and other emergencies.

Melbourne Bushfire Protection Program

Parks Victoria leads the Melbourne Bushfire Protection Program on behalf of the Victorian Government, an initiative established in 2009 to improve bushfire preparedness in Melbourne’s urban areas.

Parks Victoria worked closely with the Department of Environment and Primary Industries on the East Central Strategic Bushfire Risk Landscape planning across the broader Melbourne area.

Work also included collaborations with Cardinia, Mornington Peninsula, Nillumbik and Yarra Ranges shires to undertake works in shire-managed land adjoining parks to enhance the broader fuel break network and reduce risk across tenures.

Flood Recovery

In addition to completing fire recovery projects from the 2009 fires, considerable effort was dedicated to the planning and execution of the second year of the two-year flood recovery program.

In the 2012–13, works commenced on 85 projects, with 80 projects of these completed and five carried over into 2013–14.

The focus of the recovery program was to reopen the highest priority sites and address those sites that posed an unacceptable public safety risk.

Work at Wilsons Promontory National Park consisted of the repair and reinstatement of retaining structures, drainage, road formation and associated works to repair the damage caused by the storm event of March 2011. Repairs were completed at the Mount Oberon Road, Telegraph Track and Summit Road at Wilsons Promontory National Park. This two-year, $7 million project required the application of innovative and cost-effective solutions at this remote and challenging site. The Loo-Errn Boardwalk and pedestrian bridge at Tidal River were also repaired after being almost completely destroyed during the 2011 flood.

Significant works were also undertaken at the Grampians National Park. The Wonderland Loop Walk was repaired, which consisted of works to complete the Venus Baths Loop Walk and the re-opening of the Five Cascades Walk, linking Venus Baths to Wonderland Carpark.

The past year has seen cultural and heritage surveys and assessments of all flood-affected areas and the implementation of priority rehabilitation projects at the Grampians and Wilsons Promontory national parks and along the Murray parks and reserves. This involved detailed consultation with Traditional Owner groups, many of which were engaged to undertake the surveys and rehabilitation works.

Traditional Owners and Parks Victoria staff inspected 70 Aboriginal heritage sites in the Grampians National Park to determine the impact of the January 2011 floods. From the assessments, a program of works was developed and implemented in April 2013 involving five Traditional Owner groups and Parks Victoria cultural heritage staff.

In February 2012, floods in north-eastern Victoria caused significant damage to park infrastructure, roads and tracks. To date, 86.5 per cent of damaged asset works are complete, including the repair or replacement of 13 buildings, seven campgrounds, ten pedestrian bridges, two vehicle bridges and kilometres of walking trails and roads.

Heavy rain and strong winds caused damage to parks and reserves in Gippsland in June 2012. In the past year, 66 per cent of works – repair or replacement of nine campgrounds, eight car parks, 13 pedestrian bridges, one vehicle bridge, three toilet blocks, 56 roads and 32 trails – have been completed and many other projects are underway.

FIRE AND EMERGENCY MANAGEMENT

Under the program, 62 kilometres of fuel break works, including 27 kilometres of new fuel breaks, have been completed to improve the network in the past financial year. Thirty-five kilometres of roads and tracks have also been upgraded to improve access to fire vehicles.


Parks Victoria prides itself on equity, diversity and merit and aims to ensure a safe and healthy environment for its staff. The organisation has undergone significant reform including a voluntary departure package program over the past financial year.

A Sustainable Organisation

Objective

Operate as a resilient, respected and effective park management agency

Parks Victoria plans for, monitors, delivers and reviews its operations to ensure effective on-ground services across the state.

Parks Victoria works accountably within given resources and continues to drive business improvement through sound governance, risk management and business system development.

Workforce profile

Ongoing Fixed term Casual Total employees

Employee (headcount) FTE Employee

(headcount) FTE Employee (headcount) FTE Total FTE Total

headcount

June 2013 969 911.3 52 50.6 15 4.1 966.0 1,036

June 2012 1,025 967.9 68 66.5 16 2.6 1,036.9 1,109

JUNE 2012 JUNE 2013

Ongoing employees

Fixed term & casual

employees

Ongoing employees

Fixed term & casual

employees

Employee (headcount) FTE FTE Employee

(headcount) FTE FTE

Gender

Male 715 709.5 48.8 684 678.6 34.5

Female 310 258.4 20.2 285 232.7 20.2

Age

Under 25 14 14.0 4.4 9 9.0 10.0

25–34 133 124.6 28.8 130 118.8 18.7

35–44 300 273.2 19.2 278 254.0 13.8

45–54 298 288.0 10.7 288 277.4 9.8

55–64 245 236.6 3.9 228 219.9 2.2

Over 64 35 31.6 2.1 36 32.3 0.1

Classification

Grade 1 2 1.2 0.9 1 1.0 3.0

Grade 2.1 64 61.1 31.0 54 51.9 27.8

Grade 2.2 145 130.8 4.0 145 130.2 2.0

Grade 2.3 176 166.4 4.5 177 166.9 1.8

Grade 3 123 120.0 3.0 125 119.9 3.0

Grade 4 154 146.5 6.6 147 139.3 5.0

Grade 5 95 85.0 4.3 92 82.7 4.8

Grade 6 129 121.7 5.8 114 107.2 2.3

Grade 7 52 51.2 5.0 44 43.0 2.0

Grade 8 73 72.0 4.0 54 53.3 3.0

Executives 12 12.0 – 16 16.0 –

Notes:

• AllfiguresreflectemploymentlevelsduringthelastfullpayperiodinJuneofeachyear.

• Excludedarethoseonleavewithoutpay(16.2FTE)orabsentonsecondment,externalcontractors/consultants and temporary staff engaged through employment agencies.

• Ongoingemployeesincludespeopleengagedonanopenendedcontractofemploymentandexecutivesengaged on a standard executive contract who were active in the last full pay period of June.

• Reductioninfemaleheadcountlevelsiscomparabletothereductioninmaleheadcountlevels.

• Asat30June2013,ParksVictoriaemployed966fulltimeequivalent(FTEs)employees.Thisincluded734employees delivering field based services, of which 59 were Aboriginal staff. To meet summer peak seasonal visitor attendance at high visitation locations, Parks Victoria employed 38 seasonal rangers to run visitor services programs across the state. This included ten marine rangers servicing the bay and coastal areas. Additionally, 185 project firefighters were employed for planned burning and wildfire management. These seasonal programs greatly enhance Parks Victoria’s capacity to maintain visitor services during the summer and peak fire season..

• Attritionhasgrownfrom7percentto10percentmainlyduetothetakeupofthefirstroundofvoluntarydeparture packages in December 2012.

• Ofallemployees,6percentareAboriginaland28percentarefemale.Fiveofthe16Executivesarefemale.Increasing opportunities for women in senior positions and non-traditional roles and the development and retention of Aboriginal staff are ongoing commitments for Parks Victoria.

• Aspartoftheorganisationalrestructure,therewasareductionof18seniormanagersandanincreaseoffour executive directors. The four new executive directors is based on new criteria reflecting the changed organisational structure.

A SUSTAINABLE ORGANISATION


Merit, equity and diversity

Parks Victoria is committed to maintaining a workplace free of harassment, discrimination and bullying. These principles are documented in the Victorian Government’s merit and equity standards and embodied in the Public Administration Act 2004. Parks Victoria communicates and adheres to the principles set out in the Act.

As an employer, Parks Victoria ensures that:

• decisions are based on merit

• staff are treated fairly and reasonably

• equal employment opportunity is provided

• there are reasonable avenues of redress against unfair or unreasonable treatment.

All Parks Victoria staff are required to abide by the Victorian public sector code of conduct, which requires staff to:

• act with impartiality

• display integrity and avoid conflicts of interest

• show accountability for their actions, and

• provide responsive service.

Disability Action Plan

Parks Victoria continued to deliver its objectives as outlined in its Disability Action Plan. Changes in practices, services and infrastructure are designed to improve accessibility and increase inclusiveness for people with disabilities. In 2012–13 these included the:

• continuing provision of all-terrain wheelchairs in parks across Victoria

• provision of comprehensive park access information for the public on the Parks Victoria website

• development and use of an accessibility evaluation manual to assist park staff in compiling park access information for visitors with special needs.

Occupational Health and Safety

Parks Victoria is committed to the continued improvement of workplace safety and making the health, safety and wellbeing of our staff a business-wide priority. Parks Victoria also recognises that sound occupational health and safety (OHS) performance contributes to our agency’s overall success.

The focus in 2012–13 has been on reviewing and improving Parks Victoria’s OHS procedures and systems. To achieve this, Parks Victoria’s reviewed and updated its OHS policies and procedures. The revised documents clearly articulate the OHS roles and responsibilities of all personnel and accountabilities at each level. As each process was revised, the procedures for that area of safety were also reviewed to ensure these were streamlined and efficient.

A monthly OHS report which contains data on the performance of the organisation’s safety systems at district, regional and divisional levels enables senior managers to regularly monitor their safety systems and maintain a focus on better performance outcomes.

In late 2012–13, Parks Victoria purchased and developed an online OHS incident/hazard reporting to replace the organisation’s paper-based OHS reporting system. The new system will streamline OHS reporting and provide a greater level of transparency, with all staff able to monitor the progress and status of OHS reports.

The 2013 People Matter Survey reported that 97 per cent of respondents are aware for the need to report OHS hazards, near misses and injuries. This is reflected in more than a 60 per cent increase in OHS reporting over the last two years. The number of injuries reported for the same period is trending down and this is also reflected in the numbers of WorkCover claims and time lost due to injuries.

Staff health and wellbeing

Parks Victoria continued to deliver a health and wellbeing program to:

• provide staff, and in some cases immediate family members, with access to health and wellbeing information and a range of short, medium and long-term support programs, including access to a free professional counselling and support service

• monitor staff health and wellbeing

• support staff during and following critical incidents

• enable the healthy recovery of staff

• develop and implement policies, procedures and practices to assist staff to balance their work and family responsibilities.

Learning and development

Learning and development programs are monitored and evaluated for relevance and alignment with organisational service needs. Achievements for 2012–13 are outlined below.

• 840 staff participated in the Bullying and Harassment Awareness program and attended complementary training.

• Parks Victoria maintained a strong focus on operational training for field staff. This included a specific focus on compliance training and the use of new technology solutions for the field.

• Parks Victoria registered high levels of completion of induction learning modules, mainly by project fire staff and summer rangers. The organisation continues to roll out innovative training solutions to address the geographic spread of our workforce.

Organisational performance

Parks Victoria’s Corporate Services branch supports the work of staff and the maintenance of Victoria’s natural spaces by managing the agency’s work locations, vehicles and equipment and by providing the legal, business, information technology, corporate and other services.

Measure2007–

082008–

092009–

102010–

112011–

122012–

13Annual

Report result

Total area of estate managed by Parks Victoria

Target Hectares ('000)

nm nm nm nm 4,084 4,084Met

Actual Hectares ('000)

nm nm 4,040 4,084 4,086 4,116

Number of visits to Parks Victoria managed estate

Target Number (millions)

nm nm nm nm 88–92 88–92Exceeded

Actual Number (millions)

nm nm 88.5 85.9 85.9 95.8

Park assets rated in average to excellent condition

Target % 75–80 80Met

Actual % 78 85 79.6 80.3

Bays assets rated in average to excellent condition

Target % 65–70 65–70Met

Actual % 66 64 65 66

Number of hectares treated to minimise the impact of pest plants, pest animals and overabundant native animals in parks managed by Parks Victoria

Target Hectares ('000) 1,100 1,309

ExceededActual Hectares

('000) 1,200 964 1,387

*nm = new measure **n/a = not available (biennial measure)

Corporate performance measures



Measure2007–

082008–

092009–

102010–

112011–

122012–

13Annual

Report result

Lost time injuries reported Target Number nm nm nm nm nm 43Exceeded

Actual Number nm nm nm nm nm 34

Provision of agreed resources to the DEPI and DTPLI (bushfire preparedness, suppression and other emergency response).

Target %100

MetActual %

100

Manage labour and operating costs within budget

Target Met or Not Met

nm nm nm nm nm MetMet

Actual Met or Not Met

nm nm nm nm nm Met

*nm = new measure **n/a = not available (biennial measure)

New organisational measures for inclusion in the Annual Report.

Overall financial performance

During a year of reform, Parks Victoria achieved an operating performance that was significantly better than budget targets. The result reflects a continued, disciplined approach to cost management and improved effectiveness in commercial operations.

The net result from transactions is a deficit of $1.4 million, which is $9 million better than the budgeted deficit of $10.4 million. The primary reason for the improvement was a reduction in labour costs, compared to the budget forecast. This measure

excludes revaluations and changes in market prices that are reflected as other economic flows in the comprehensive operating statement.

Both total income and expenses from transactions have been trending upwards over the years. The major factor contributing to increases in both income and expenditure in 2012–13 is fire suppression activity, which rose by $5 million compared to last year. Fire suppression costs are fully reimbursed, so the impact on overall financial performance is neutral. Commercial income is up approximately $3 million compared to 2011–12, due largely to the increased

demand for camping and accommodation. This increase was offset by one-off costs associated with assets destroyed during floods for which insurance income has not yet been received ($4.1 million). Excluding one-off costs, the underlying net result from transactions is a surplus of $2.7 million.

Five year financial summary

($thousand) 2013 2012 2011 2010 2009

Revenue from Government 120,865 122,055 110,455 92,089 83,067

Total income from transactions 257,933 251,999 219,000 199,551 184,535

Total expenses from transactions 259,327 249,743 230,040 204,476 184,807

Net result from transactions (1,394) 2,256 (11,040) (4,925) (273)

Net result for the period (1,896) (803) (12,361) (7,726) (1,452)

Net cash flow from operating activities (18,263) 12,367 9,468 35,859 17,926

Total assets 1,822,467 1,851,560 1,830,609 1,569,068 1,283,020

Total liabilities 117,708 149,585 138,799 128,066 87,494

Financial Position – balance sheet

The total assets at the end of the year were $1.8 billion. Of that $1.7 billion is property, plant and equipment and reflects land and associated assets where Parks Victoria is appointed Committee of Management (COM). On behalf of the Crown, Parks Victoria also manages a significant portfolio of public land and associated assets that are recorded in the Department of Environment and Primary Industries’ financial statements.

The net liability to Vision Super towards defined benefit superannuation fell by $3.3 million as the fund’s performance improved. The fund registered a return of 12.4% for 2012–13.

Cash flows

The net cash flow from operating activities is a deficit of $18.3 million. This reflects the timing difference between the receipt of cash in prior periods and its drawdown for project delivery in 2012–13. Total cash and investments at the end of the year were $87.3 million, of which $80.6 million is tied to specific projects.

Non-committed cash of $6.7 million is not tied to any specific projects and provides Parks Victoria with a small buffer against unexpected events.

Governance and compliance

Governance and compliance ensures that Parks Victoria fulfils its responsibilities under the Parks Victoria Act 1998 and meets its requirements under other state and Commonwealth laws.

Legislative framework

Under the Parks Victoria Act 1998, Parks Victoria’s responsibilities are to provide services to the state and its agencies for the management of parks, reserves and other land under the control of the state together with waterways land (within the meaning of the Water Industry Act 1994) for the purposes of conservation, recreation, leisure, tourism or water transport. Parks Victoria’s responsibilities also extend to recreational boating in Port Phillip and Western Port as a local port manager under the Port Management Act 1995 and as waterways manager under the Marine Safety Act 2010.

With the approval of the Minister, Parks Victoria may also provide services for the management of land to the owner of any other land used for public purposes. The Act requires that Parks Victoria must not act in a way that is not environmentally sound in carrying out its functions. Parks Victoria is appointed as a committee of management of various reserves pursuant to the Crown Land (Reserves) Act 1978.

Currently Parks Victoria is the committee of management for a range of reserves including Albert Park, Werribee Park, Yarra Bend, several gardens in the Dandenong Ranges and piers and jetties in Port Phillip and Western Port. It also manages:

• all areas under the National Parks Act 1975 – approximately 3.45 million hectares

• reserved and unreserved Crown land including conservation and other reserves, metropolitan parks, regional parks and historic areas

• recreational and other activities on waterways land in the metropolitan area as defined in the Water Industry Act 1994

• a number of other areas under leases or other arrangements (including reservoir parks).

Parks Victoria’s responsibilities for the provision of services to the state are set out in a Management Services Agreement (MSA) between Parks Victoria, the Secretary to the Department of Environment and Primary Industries (DEPI) and the Minister for Environment and Climate Change. Parks Victoria’s services are delivered within state policy and contractual agreements and in accordance with statutory responsibilities and statutory delegations. The MSA sets out the principles for the delivery of park management services, lists the land to be managed and sets out the key functions of Parks Victoria and the Department of Environment and Primary Industries. The current MSA includes a commitment to engage strategically and work in partnership. DEPI is the designated lead for fire on public land.



Changes to areas managed

Under the Management Services Agreement, the Minister for the Environment and Climate Change advises Parks Victoria of any changes to the land managed by Parks Victoria. In August 2012, Parks Victoria was advised of the assignment of an additional 79 reserves (from 2994 to 3073) and changes to existing reserves through Version 17 of the Register of Land, resulting in an addition of 27,963 hectares to the total area managed. These reserves included major additions that Parks Victoria was directed to manage as part of the River Red Gum outcomes, such areas of the proposed Murray River Park not already being managed by Parks Victoria (19, 417 hectares).

This brings the total area of land assigned to Parks Victoria via direct assignment to approximately 4.105 million hectares.

Freedom of Information

The Freedom of Information Act 1982 gives the public the right to access information contained in documents held by Parks Victoria. In the reporting period, Parks Victoria received 29 requests: 23 external requests for documents and information under the Act and six interdepartmental requests.

Of the 23 external requests:

• none were transferred to other agencies for processing

• 12 were decided by Parks Victoria

• three did not meet the requirement under the Act and were refused or rejected

• four did not proceed, and

• four are yet to be finalised

Whistleblowers protection

The Protected Disclosures Act 2012 replaced the Whistleblowers Protection Act 2001 as of 10 February 2013.

The Acts were designed to protect people who disclose information about serious wrongdoing within the Victorian Public Sector and to provide a framework for the investigation of these matters. Parks Victoria does not tolerate improper conduct by employees or the taking of reprisals against those who come forward to disclose such conduct. Parks Victoria is in the process of establishing a new procedure to reflect the new regime instituted by the Act as well as the new Independent Broad-Based Anti-Corruption Commission (IBAC) Act 2011. Parks Victoria can no longer accept disclosures and must refer all complaints directly to IBAC.

Since the commencement of the Whistleblowers Protection Act in January 2002, Parks Victoria has received nine disclosures. Disclosures for the period 1 July 2012 to 10 February 2013 (when Parks Victoria ceased receiving complaints) are as follows:

• number and type of disclosures made to Parks Victoria – no public interest disclosures

• number and type of disclosures referred to the Ombudsman for public interest determination – no public interest disclosures

• number and type of disclosed matters referred to Parks Victoria from the Ombudsman – no public interest disclosures to be investigated

• number and type of disclosed matters referred to the Ombudsman for investigation – no public interest disclosures

• number and type of investigations of disclosed matters taken over by the Ombudsman – none

• number of requests made to the Ombudsman to investigate matters – none

• number and type of disclosed matters Parks Victoria has declined to investigate – none.

Parks Victoria no longer has a Protected Disclosure Coordinator. However, any queries concerning the new Acts may be directed to:

Chief Legal Counsel Parks Victoria Level 10, 535 Bourke Street, Melbourne 3000 Telephone 13 1963

Any complaints which may qualify as a protected disclosure should be made directly to:

IBAC GPO Box 24234 Melbourne, VIC 3000 Phone 1300 735 135

A copy of Parks Victoria’s new Protected Disclosure Procedure will be available after August 10, 2013 by contacting Parks Victoria on 13 1963.

Statement of availability of other information

The following information is available on request, subject to the Freedom of Information Act 1982:

• a statement that declarations of pecuniary interests have been duly completed by all relevant officers

• details of publications produced by Parks Victoria about itself and how these can be obtained

• details of changes in prices, fees, charges, rates and levies charged

• details of any major external reviews carried out on Parks Victoria

• details of major research and development activities undertaken

• details of overseas visits undertaken, including a summary of the objectives and outcomes of each visit

• details of major promotional, public relations and marketing activities undertaken to develop community awareness of Parks Victoria and its services

• details of assessments and measures undertaken to improve the occupational health and safety of employees

• A general statement on industrial relations within Parks Victoria and details of time lost through industrial accidents and disputes

• a list of Parks Victoria’s major committees, the purposes of each committee and the extent to which the purposes have been achieved.

Building Act

All works associated with buildings are managed in accordance with the Building Act 1993, including obtaining all permits as required.

Victorian Industry Participation Policy

Departments and public bodies are required to comply with the Victorian Industry Participation Policy Act 2003 requires in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria. In 2012–13, Parks Victoria was fully compliant with the policy.

During the financial year ending 30 June 2013, Parks Victoria entered into three contracts to which the Victorian Industry Participation Policy applied, the value of these contracts being $8.3 million. During the financial year ending 30 June 2013, Parks Victoria entered into three contracts to which the VIPP applied, the value of these contracts being $8.3 million.

Two of these contracts were within metropolitan Melbourne to the value of $6.3 million, which:

• include 100 per cent commitment to local content

• retain the equivalent of 18 full time jobs

• retain seven apprenticeships/traineeships, and

• provide the economy with further training and skills.

One contract was in regional Victoria, valued at $2.1 million. This contract:

• includes 100 per cent commitment to local content

• retains the equivalent of 12 full time jobs, and

• provides the economy with further training and skills.

During the year, Parks Victoria

completed one contract to the value of $4.6 million in metropolitan Melbourne which:

• included a 100% level of local content

• created the equivalent of eight full time jobs

• created four apprenticeships/traineeships, and

• provided the Victorian economy with benefits in terms of skills and technology transfer increases and opportunities to provide experience (through higher duties) in the areas of concreting, demolition, structural works and road construction.

National competition policy

Competitive neutrality seeks to enable fair competition between government and private sector businesses. Any advantages or disadvantages that government businesses may experience as a result of government ownership should be neutralised.

Parks Victoria continues to implement and apply this principle in its business undertakings.



Major contracts

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

Government advertising expenditure

Parks Victoria did not have an advertising buy of $150,000 or greater (exclusive of GST) during the reporting period.

Smaller and greener motor vehicle fleet

There are now 23 Australian-made Toyota Hybrid Camry vehicles in Parks Victoria’s fleet. These vehicles have the

maximum Five Green Star rating. The organisation has also moved to replace 20 of the traditional 6-cylinder vehicles with smaller fuel efficient 4-cylinder passenger vehicles. Around 84 per cent of Parks Victoria’s passenger vehicle fleet (this category excludes operational utility vehicles and fire fighting vehicles) now has a Green Star rating of 3.5 stars or more. Parks Victoria has also reduced the overall number of vehicles in its vehicle fleet as part of a rationalisation program. These measures are assisting Parks Victoria in its efforts to reduce greenhouse gas emissions and operating costs.

In other programs, Parks Victoria continues to support Zoos Victoria’s efforts to save the world’s last remaining mountain gorillas by ensuring retired mobile phones are recycled as part of the Zoos Victoria’s “They’re Calling on You” campaign. Money raised from donated phones helps support rangers in the Democratic Republic of Congo who are fighting to protect the last remaining mountain gorillas.

Parks Victoria Organisational Environmental Performance Report 2012–13

2010–11 Per FTE 2011–12 Per FTE 2012–13 Per FTE

Electricity (megawatts) 4,6264,194

Kilowatt hours 4,806

4,639 Kilowatt hours

3,959*4,098

Kilowatt hours

Water (megalitres) 190 172 Kilolitres 194 187 Kiloliters 203 210 Kilolitres

Greenhouse Gas emissions (Tonnes C02-e)

11,059 10 10,307 9.9 9,943 10.3

FTE/Full-time equivalent (meaning equal to full time position)

* In 2012–13 Parks Victoria changed the manner in which electricity consumption is recorded. A further 12 months of data should reveal if the observed reduction in electricity use in 2012–13 is actual or related to the change in process.

Consultancies engaged over $10,000

ConsultantPurpose of consultancy

Total approved project fee

($‘000 excluding GST)Expenditure 2012–13

($’000 excluding GST)Future expenditure

($’000 excluding GST)

ARUP Management advice $95 $15 $80

Futureye Pty Ltd Management advice $67 $67 $ nil

Snow Gum Consulting Pty Ltd

Management advice $45 $45 $ nil

McGregor & Coxall Pty Ltd

Coastal Master Plan $450 $65 $385

Consultancies engaged under $10,000

There were no consultancies engaged under $10,000.

Risk management attestation

TO BE SUPPLIED



Insurance attestation

Gifts, Benefits and Hospitality Framework Attestation



Legislation Requirement Page

SD 4.2(j) Sign off requirements 3

FRD 22D Objectives, functions, powers and duties 5–6

FRD 22D Manner of establishment and responsible Minister 5

FRD 22D Nature and range of services provided 5–6

FRD 22D Operational and budgetary objectives 36–37

FRD 22D Summary of the financial results 37

FRD 22D Major changes or factors affecting performance 4

FRD 22D Subsequent events 4

FRD 22D Significant changes in financial position during the year 38

FRD 22D & SD2.2(f) Organisational structure 6

FRD 22D Occupational health and safety policy 35

FRD 22D Employment and conduct principles 35

FRD 29 & 22D Workforce Data disclosures 34

FRD 15B Executive officer disclosures 34

FRD 10 Disclosure index 45

FRD 25 & 22D Victorian Industry Participation Policy disclosures 40

FRD 22C Details of consultancies in excess of $10 000 41

FRD 22C Details of consultancies under $10 000 41

FRD 22D Disclosure of government advertising expenditure 41

FRD 12A Disclosure of major contracts 41

FRD 22D Application and operation of Freedom of Information Act 1982 39

FRD 22D Compliance with Building Act 1993 40

FRD 22D Statement on National Competition Policy 40

FRD 22D Application and operation of Protected Disclosures Act 2012 39

FRD 24C Reporting of office-based environmental impacts 41

FRD 22D Statement of availability of other information 40

SD 4.5.5 Risk management compliance attestation 42

SD 4.5.5.1 Insurance attestation 43

PC 2012/02 Gifts, benefits and hospitality attestation 44

SD 4.2(g) General information requirements Entire document

Parks Victoria Act 1998 5

Building Act 1983 52

Financial Management Act 1994 37

Freedom of Information Act 1982 39

Protected Disclosures Act 2012 39

Victorian Industry Participation Policy Act 2003 40

FRD 30 Standard requirements for the design and print of annual reports Entire document


Financial Report

Comprehensive Operating Statement 48

Balance Sheet 49

Statement of Changes in Equity 50

Cash Flow Statement 51

Table of Contents 52

Notes to Financial Statements 53–87

Statutory Certificate 88

Auditor’s Report 89–90

Comprehensive Operating StatementFor the Financial Year ended 30 June 2013

Notes2013 $’000

2012 $’000

Continuing operations

Income from transactions

Parks and reserves trust funding 3 88,276 80,331

Government funding 4 120,865 122,055

Interest 5 4,363 5,327

Fair value of assets received free of charge 6 429 3,422

Insurance claims 7a 10,021 15,085

Other income 7b 33,979 25,779

Total income from transactions 257,933 251,999

Expenses from transactions

Employee benefits expenses 8 109,094 93,849

Depreciation and amortisation 9 10,878 10,276

Contracts and external services 10 107,101 113,721

Other operating expenses 11 32,254 31,897

Total expenses from transactions 259,327 249,743

Net result from transactions (net operating balance) (1,394) 2,256

Other economic flows included in net result

Net gain/(loss) on non-financial assets 12(a) (1,390) –

Net gain/(loss) on financial instruments 12(b) 153 (257)

Other gains/(losses) from other economic flows 12(c) 735 (2,802)

Total other economic flows included in net result (502) (3,059)

Net result (1,896) (803)

Other economic flows – other comprehensive income

Items that will not be reclassified to net result

Changes in physical asset revaluation surplus – –

Items that may be reclassified subsequently to net result

Changes to financial assets available-for-sale revaluation surplus – –

Total other economic flows – other comprehensive income – –

Comprehensive result (1,896) (803)

The comprehensive operating statement should be read in conjunction with the accompanying notes.

FINANCIAL REPORT


Balance SheetAs at 30 June 2013

Notes2013 $’000

2012 $’000

Assets

Financial assets

Cash and deposits 13 87,340 58,423

Receivables 14 10,921 14,557

Investments and other financial assets 15 – 50,000

Total financial assets 98,261 122,980

Non-financial assets

Inventories 16 175 159

Property, plant and equipment 17 1,719,187 1,722,830

Intangible assets 18 4,824 5,575

Other non-financial assets 19 20 16

Total non-financial assets 1,724,206 1,728,580

Total assets 1,822,467 1,851,560

Liabilities

Payables 20 22,278 28,597

Provisions 21 34,073 34,659

Provision for Superannuation defined benefits obligation 29(c) 2,939 6,216

Deferred revenue 22 58,418 80,113

Total liabilities 117,708 149,585

Net assets 1,704,759 1,701,975

Equity

Accumulated surplus/(deficit) (59,748) (57,218)

Physical asset revaluation surplus 23 1,129,315 1,128,678

Contributed capital 24 635,191 630,515

Total equity 1,704,759 1,701,975

Contingent liabilities and contingent assets 26

Commitments 27

The balance sheet should be read in conjunction with the accompanying notes.

Statement of Changes in EquityFor the Financial Year ended 30 June 2013

Notes

Physical Asset Revaluation

Surplus $’000

Accumulated Surplus / (Deficit)

$’000

Contributed Capital

$’000Total $’000

Balance at 1 July 2011 1,128,678 (56,415) 619,546 1,691,809

Net result for the year – (803) – (803)

Other comprehensive income for the year – – – –

Transfer to accumulated surplus – – – –

Contributed capital 24 – – 10,969 10,969

Balance at 30 June 2012 1,128,678 (57,218) 630,515 1,701,975

Net result for the year – (1,896) – (1,896)

Other comprehensive income for the year – – – –

Transfer to accumulated surplus 23 637 (637) – –

Contributed capital 24 – – 4,676 4,676

Balance at 30 June 2013 1,129,315 (59,748) 635,191 1,704,759

The statement of changes in equity should be read in conjunction with the accompanying notes.

FINANCIAL REPORT


Cash Flow StatementFor the Financial Year ended 30 June 2013

Notes2013 $’000

2012 $’000

Cash Flows from operating activities

Receipts

Receipts from parks charges 85,568 79,186

Receipts from government for operations 91,570 111,344

Receipts from government for Base Funding Review 5,721 14,356

Receipts from customers/other sources 50,088 35,098

Interest received 4,761 5,246

Receipts relating to goods and services tax 18,074 18,056

Total receipts 255,782 263,286

Payments

Payments to suppliers and employees (249,919) (227,043)

Payments to government for revenue collected from national parks (6,491) (5,452)

Payments relating to Goods and Services Tax (17,635) (18,424)

Total payments (274,045) (250,919)

Net cash flows from/(used in) operating activities 25(c) (18,263) 12,367

Cash Flows from investing activities

Payments for property, plant and equipment (2,820) (7,333)

Proceeds on sale of property, plant and equipment – –

Payments for other financial assets (45,000) (90,000)

Proceeds from other financial assets 95,000 90,000

Net cash flows from/(used in) investing activities 47,180 (7,333)

Cash flows from financing activities

Receipts from government – contributed capital – 5,741

Net cash flows from/(used in) financing activities 0 5,741

Net increase/(decrease) in cash and cash equivalents 28,917 10,775

Cash and cash equivalents at beginning of financial year 58,423 47,648

Cash and cash equivalents at the end of the financial year 13 & 25(a) 87,340 58,423

Consisting of:

Committed cash and investments 34 80,653 101,661

Non-committed cash (cash reserved for short term liabilities) 6,687 6,762

Total Funds 87,340 108,423

The above cash flow statement should be read in conjunction with the accompanying notes.

Table of Contents

Note 1 Background

Note 1.1 Reporting entity

Note 1.2 Objectives and funding

Note 2 Summary of significant accounting policies

Note 2.1 General

Note 2.2 Basis of accounting preparation and measurement

Note 2.3 Asset recognition and measurement

Note 2.4 Scope and presentation of financial statements

Note 2.5 Financial assets

Note 2.6 Non-financial assets

Note 2.7 Impairment of non-financial assets

Note 2.8 Leased assets

Note 2.9 Liabilities

Note 2.10 Contributed capital

Note 2.11 Income recognition

Note 2.12 Interest income

Note 2.13 Resources provided and received free of charge or for nominal consideration

Note 2.14 Grants and other payments

Note 2.15 Depreciation and amortisation

Note 2.16 Finance costs

Note 2.17 Commitments

Note 2.18 Contingent assets and contingent liabilities

Note 2.19 Goods and Services Tax

Note 2.20 Rounding of amounts

Note 2.21 New accounting standards and interpretations

Note 3 Parks and reserves trust funding

Note 4 Government funding

Note 5 Interest

Note 6 Fair value of assets received free of charge

Note 7 Insurance income / other income

Note 8 Employee benefits expenses

Note 9 Depreciation and amortisation

Note 10 Contracts and external services

Note 11 Other operating expenses

Note 12 Other economic flows included in net result

Note 13 Cash and deposits

Note 14 Receivables

Note 15 Other financial assets

Note 16 Inventories

Note 17 Property, plant and equipment

Note 18 Intangible assets

Note 19 Other non-financial assets

Note 20 Payables

Note 21 Provisions

Note 22 Deferred revenue

Note 23 Physical asset revaluation surplus

Note 24 Contributed capital

Note 25 Cash flow information

Note 26 Contingent liabilities and contingent assets

Note 27 Commitments

Note 28 Superannuation

Note 29 Defined superannuation benefit

Note 30 Volunteer resources provided free of charge

Note 31 Auditor's remuneration

Note 32 Responsible person and executive officer disclosures

Note 33 Financial instruments

Note 34 Committed funds

Note 35 Post balance date events

FINANCIAL REPORT


Notes to the Financial Statements For the Financial Year ended 30 June 2013

1 Background

1.1 Reporting entity

Parks Victoria is a not-for-profit individual reporting entity. Parks Victoria was formed as a public authority on 3 July 1998 under the Parks Victoria Act 1998. The Parks Victoria Act 1998 was given Royal Assent on 26 May 1998 and was proclaimed on 3 July 1998.

The principal address is: Level 10/ 535 Bourke Street, Melbourne, VIC 3000

1.2 Objectives and funding

The objective of Parks Victoria is to provide an outstanding park and waterway system, protected and enhanced, for people, forever.

Parks Victoria receives the majority of its funding from the Victorian Government for the management of Victoria’s National/State Parks and Reserves and from the Parks and Reserves Trust for the management of metropolitan parks and waterways. The Trust is funded by a Parks charge levied on properties within the Melbourne metropolitan area.

2 Summary of significant accounting policies

2.1 General

These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards, including Interpretations (AASs). AASs include Australian equivalents to International Financial Reporting Standards.

Statement of compliance

The financial statements comply with the relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance and relevant Standing Directions (SD) authorised by the Minister for Finance.

Under Australian Accounting Standards (AASs), there are requirements that apply specifically to not-for-profit entities. Parks Victoria has analysed its purpose, objectives, and operating philosophy and determined that it does not have profit generation as a prime objective. Where applicable, the AASs that relate to not-for-profit entities have been applied.

The financial statements were authorised for issue by the board of Parks Victoria on 15 August 2013.


2.2 Basis of accounting preparation and measurement

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

These financial statements are presented in Australian dollars, the functional and presentation currency of Parks Victoria.

In the application of AASs, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

These financial statements have been prepared in accordance with the historical cost convention except for:

• non-current physical assets which, subsequent to acquisition, are measured at a re-valued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value;

• the fair value of an asset other than land, plant and equipment, antiques and work in progress is based on its depreciated replacement cost;

• available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised.

Historical cost is based on the fair values of the consideration given in exchange for assets.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2013 and the comparative information presented for the year ended 30 June 2012.

2.3 Asset recognition and measurement

Parks Victoria only recognises assets on land it controls as the committee of management. Parks Victoria also manages other assets on behalf of the Crown. Those assets and any new assets constructed by Parks Victoria on behalf of the Crown are recognised in the asset register of the Department of Environment and Primary Industries.

FINANCIAL REPORT



2.4 Scope and presentation of financial statements

(i) Comprehensive operating statement

Income and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of financial statements.

‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash.

‘Other economic flows’ are changes arising from market re-measurements. They include gains and losses from disposals, revaluations and impairments of non-current physical assets and intangible assets; fair value changes of financial instruments and revaluation of certain employee benefit liabilities.

The net result is equivalent to profit or loss derived in accordance with AASs.

(ii) Balance sheet

Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets.

Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the notes, where relevant.

(iii) Statement of changes in equity

The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘Comprehensive result’ and amounts recognised in ‘Other economic flows – Other non-owner changes in equity’ related to transactions with owner in its capacity as owner.

(iv) Cash flow statement

Cash flows are classified according to whether or not they arise from operating activities, investing activities or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows.


2.5 Financial assets

(i) Cash and deposits

Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments subject to an insignificant risk of changes in value with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes.

For the purpose of the Cash Flow Statement, cash assets include cash on hand and highly liquid investments with short periods to maturity that are readily convertible to cash on hand at Parks Victoria’s option and are subject to insignificant risk of changes in values, net of outstanding bank overdrafts.

(ii) Receivables

Receivables consist of:

• statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and

• contractual receivables, which include mainly debtors in relation to goods and services, and accrued investment income.

Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments.

Receivables are recorded initially at fair value and subsequently measured at amortised cost, using the effective interest method, less impairment.

Compensation from third parties for items of property, plant and equipments that were impaired, lost or given up are recognised as a receivable when the receipt of the reimbursement becomes “virtually certain.”

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is established when there is objective evidence that Parks Victoria will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the Comprehensive Operating Statement. A provision for doubtful debts is recognised to the extent that recovery of the outstanding receivable balance is considered less than likely. Bad debts are written off in the period in which they are recognised.

The average credit period on sales of goods or provision of services is 30 days.

(iii) Other financial assets

Other financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.

Parks Victoria classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition.

Parks Victoria assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

All investments held by Parks Victoria are classified as being available-for-sale and are stated at fair value. Gains and losses arising from changes in fair value are recognised directly in equity, until the investment is disposed of or is determined to be impaired, at which time to the extent appropriate, the cumulative gain or loss previously recognised in equity is included in the Comprehensive Operating Statement for the period.

FINANCIAL REPORT



2.6 Non-financial assets

(i) Inventories

Inventories comprise stores and materials and are valued at the lower of cost and net realisable value. Costs are assigned to inventory on hand at balance date on a first in, first out basis. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling distribution.

(ii) Property, plant and equipment

All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a machinery of government change are transferred at their carrying amount.

Property, plant and equipment represent non-current assets used by Parks Victoria, comprising:

• Crown land, land and land improvements.

• Buildings and building improvements.

• Piers, jetties and river improvements.

• Plant, equipment, machinery and vehicles.

• Antiques.

• Works in progress.

Items with a cost or value of $5,000 (2012 $5,000) or more, and a useful life of more than one year are recognised as an asset. All other assets acquired are expensed. Non-current physical assets such as national parks, other Crown land, and heritage assets are measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply.

The fair value of cultural depreciated assets and collections, heritage assets and other non-current physical assets that the State intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset and any accumulated impairment.


Revaluations of non-current physical assets

Non-current physical assets measured at fair value are revalued in accordance with FRD 103D Non Current Physical Assets issued by the Minister for Finance. This revaluation process normally occurs every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in value. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.

Revaluation increases are credited directly to equity in the physical asset revaluation surplus, except to the extent that an increase reverses a revaluation decrease in respect of that class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result.

Revaluation decreases are recognised immediately as expenses (other economic flows) in the net results, except to the extent that a credit balance exists in the physical asset revaluation surplus in respect of the same class of property, plant and equipment in which case they are debited to the physical asset revaluation surplus.

Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes.

A full revaluation of non-financial physical assets was conducted in June 2011 in accordance with the Financial Reporting Directions (FRDs) issued by the Minister of Finance. The useful lives and residual values of the respective assets were adjusted to reflect the most recent assessment performed by the Valuer General Victoria (VGV). The next scheduled full revaluation will be conducted in 2016.

The Valuer General provides guidance to asset valuers on the valuation rational and appropriate level of “Community Service Obligation” (2010–11: 70%) discount to apply to the asset.

(iii) Crown land

Crown land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the land, public announcements or commitments made in relation to the intended use of the land. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply.

The financial statements list the location and values of Crown land over which Parks Victoria is the committee of management (refer note 17c). This Crown Land remains the property of the State of Victoria.

Crown Land is used for heritage and environmental conservation, recreation, leisure, tourism and navigation.

Restrictive nature of cultural and heritage assets, Crown land and infrastructures

During the reporting period, Parks Victoria held cultural assets, heritage assets, Crown land and infrastructures.

Such assets are deemed worthy of preservation because of the social rather than financial benefits they provide to the community. The nature of these assets means that there are certain limitations and restrictions imposed on their use and/or disposal.

(iv) Intangible assets

Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Parks Victoria. Intangible assets include business systems and IT software.

FINANCIAL REPORT



2.7 Impairment of non-financial assets

All non-financial assets are assessed annually for indications of impairment, except for:

• Inventories (refer note 2.6 (i)).

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by charge to the Comprehensive Operating Statement except to the extent that the write-down can be debited to the physical asset revaluation surplus account.

The recoverable amount for most assets is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future asset will be replaced unless a specific decision to the contrary has been made.

2.8 Leased assets

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Operating lease payments are recognised as an expense in the Comprehensive Operating Statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2.9 Liabilities

(i) Payables

Payables are recognised when Parks Victoria becomes obliged to make future payments resulting from goods and services provided prior to the end of the financial year, which are unpaid at financial year end.

Payables are non-interest bearing and have an average credit period of 30 days.

(ii) Employee benefits

(a) Wages and salaries and sick leave

Liabilities for wages and salaries that are expected to be settled within 12 months of the reporting date are measured at their nominal amounts in respect of employees’ services up to the reporting date. The nominal basis of measurement uses employee remuneration rates that the entity expects to pay as at each reporting date and does not discount cash flows to their present value. Non-vesting sick leave is not expected to exceed current and future sick leave entitlements, and accordingly, no liability has been recognised.

(b) Annual leave and long service leave

Annual leave and long service leave entitlements expected to be settled within 12 months of the reporting date are recognised as a provision for employee benefits in the Balance Sheet at their nominal values.

Annual leave and long service leave entitlements not expected to be settled within 12 months of the reporting date are recognised at the present value of the estimated future cash outflows to be made by Parks Victoria in respect of services provided by employees up to reporting date. Consideration is given to expected future employee remuneration rates, employment related on-costs and other factors including experience of employee departures and periods of service. In the determination of the long service leave entitlement liabilities, Parks Victoria use the wage inflation and discount rates released by the Department of Treasury and Finance.


(c) Classification of employee benefits as current and non-current liabilities

Employee benefit provisions are reported as current liabilities where Parks Victoria does not have an unconditional right to defer settlement for at least 12 months. Consequently, the current portion of the employee benefit provision can include both short-term benefits (those benefits expected to be settled within 12 months of the reporting date), which are measured at nominal values, and long-term benefits (those benefits not expected to be settled within 12 months of the reporting date), which are measured at present values.

Employee benefit provisions that are reported as non-current liabilities also include long-term benefits such as non-vested long service leave (i.e. where the employee does not have a present entitlement to the benefit) that do not qualify for recognition as a current liability, and are measured at present values. The non-current liability for long service leave represents entitlements accrued for employees with less than 7 years of continuous service, where Parks Victoria has the right to defer the liability.

(d) Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. Parks Victoria recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

(e) Performance payments

Performance payments for Parks Victoria’s Executive Officers are based on a percentage of the annual salary package provided under their contracts of employment. A liability is recognised and is measured as the aggregate of the amounts accrued under the terms of the contracts at balance date. Since the performance payments earned are paid upon completion of annual performance reviews, the total amount is classified as a current liability.

(f) Superannuation

Defined accumulation plans

Contributions are made by Parks Victoria to employee superannuation funds and are charged as expenses when incurred.

Defined benefit plans

A liability or asset in respect of defined superannuation benefit plans is recognised in the balance sheet and is measured as the difference between the present value of employees accrued benefits at the end of the reporting period and the net market value of the superannuation plan’s assets at that date. The present value of benefits as accrued benefits is based on expected future payments which arise from membership of the plans at the end of the reporting period. Consideration is given to expected future salary levels, resignation and retirement rates. Expected future payments are discounted using rates of Commonwealth Government bonds with terms to maturity that match, as closely as possible the estimated future cash outflows.

The amount brought to account in the Comprehensive Operating Statement in respect of superannuation represents the contributions made to the superannuation plan, adjusted by the movement in the defined benefit plan liability or asset.

Parks Victoria only recognises the liability for Vision Super defined benefit plans. Parks Victoria does not recognise the defined benefit liability in respect of any other plans because the entity has no legal or constructive obligation to pay future benefits relating to its employees.

Disclosure of superannuation contributions by Parks Victoria is provided in Note 28.

FINANCIAL REPORT



(iii) Provisions

Provisions are recognised when Parks Victoria has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows, using a discount rate that reflects the time value of money and risks specific to the provision.

When some or all of the economic benefits required to settle a provision are expected to be recognised from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

(iv) Deferred revenue

Deferred revenues represent the portion of reciprocal government and external grants/funding for conditions which at the end of financial year had not been performed (see Note 2.11).

2.10 Contributed capital

Consistent with Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners , appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributed capital.

2.11 Income recognition

Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes.

Parks Charge income is recognised when invoiced by Parks Victoria. Other income, including external grants/funding, is recognised when earned or on receipt, depending on which occurs earlier.

Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up are recognised in profit or loss when the receipt of the reimbursement becomes “virtually certain.”

Where government and external grants/funding are reciprocal, income is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as income when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant. Where the grants/funding received has not been expended and a reciprocal agreement exists (reciprocal agreement is whereby the external revenue is required to be repaid if not used or an asset transfer to the external party is to occur upon completion of the asset) Parks Victoria records this revenue as deferred revenue.

2.12 Interest income

Interest income includes unwinding over time of discounts on financial assets and interest received or receivable on bank term deposits and other investments.

Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

2.13 Resources provided and received free of charge or for nominal consideration

Contributions of resources (including volunteer resources and assets received free of charge or for nominal consideration) and assets provided free of charge or for nominal consideration are recognised at their fair value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.


2.14 Grants and other payments

Grants and other payments to third parties are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as: grants, subsidies, other transfer payments made to State owned agencies, local government, non-government schools and community groups.

2.15 Depreciation and amortisation

Depreciation is applied to completed fixed assets including buildings and building improvements, piers, jetties and river improvements, land improvements and plant, equipment, machinery, and vehicles. Land and antiques are not depreciated.

Works in Progress is valued at cost and depreciation commences on completion of the works.

Depreciation is calculated on a straight-line basis to systematically write off the cost or revalued amount of each non-current asset over its expected useful life to the entity.

Depreciation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets.

Where assets have separate identifiable components that have distinct useful lives and/or residual values, a separate depreciation rate is determined for each component.

The expected useful life of each asset category is as follows:

Amortisation is calculated on a straight-line basis to systematically write off the cost or revalued amount of each intangible asset over its expected useful life to the entity.

Amortisation rates are reviewed annually and, if necessary, adjusted to reflect the most recent assessments of the useful lives and residual values of the respective assets.

The expected useful life of each Intangible assets category (computer software) is 10 years (2012: 10 years).

2013 2012

Asset categoryExpected Life

(Years) Expected Life

(Years)

Buildings and building improvements 5 to 100 5 to 100

Piers, jetties and river improvements 6 to 100 6 to 100

Land improvements 1 to 100 1 to 100

Plant, equipment, machinery and vehicles 1 to 10 1 to 10

FINANCIAL REPORT



2.16 Finance costs

Finance costs (mainly bank charges) are recognised as expenses in the period in which they are incurred.

2.17 Commitments

Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to Note 27) at their nominal value and inclusive of the Goods and Services Tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.

2.18 Contingent assets and contingent liabilities

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

2.19 Goods and Services Tax

Revenues, expenses and assets are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense.

Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the ATO, is classified as operating cash flows and disclosed therein.

2.20 Rounding of amounts

Amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Figures in the financial statements may not equate due to rounding.


2.21 New accounting standards and interpretations

Certain new AASs have been published that are not mandatory for the 30 June 2013 reporting period. Parks Victoria assesses the impact of these new standards, their applicability and early adoption, where applicable.

As at 30 June 2013, the following standards and interpretations (applicable to agencies) had been issued but were not mandatory for the financial year ending 30 June 2013. Parks Victoria has not early adopted these standards.

Standard/Interpretation Summary

Applicable for annual reporting periods beginning on

Impact on Parks Victoria's financial statements

AASB 9 Financial instruments This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).

1 Jan 15 Detail of impact is still being assessed.

AASB 10 Consolidated Financial Statements

This Standard establishes principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities and supersedes those requirements in AASB 127 Consolidated and Separate Financial Statements and Interpretation 112 Consolidation – Special Purpose Entities.

1 Jan 14 As a not-for-profit entity, Parks Victoria is not permitted to apply this Standard prior to the mandatory application date. The AASB is assessing the applicability of principles in AASB 10 in a not-for-profit context. As such, impact will be assessed after the AASB’s deliberation.

AASB 11 Joint Arrangements This Standard requires entities that have an interest in arrangements that are controlled jointly to assess whether the arrangement is a joint operation or joint venture. AASB 11 shall be applied for an arrangement that is a joint operation. It also replaces parts of requirements in AASB 131 Interests in Joint Ventures.

1 Jan 14 As a not-for-profit entity, Parks Victoria is not permitted to apply this Standard prior to the mandatory application date. As such, impact will be assessed after the AASB’s deliberation.

AASB 12 Disclosure of Interests in Other Entities

This Standard requires disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB 127 and AASB 131.


AASB 13 Fair Value Measurement This Standard outlines the requirements for measuring the fair value of assets and liabilities and replaces the existing fair value definition and guidance in other AASs. AASB 13 includes a ‘fair value hierarchy’ which ranks the valuation technique inputs into three levels using unadjusted quoted prices in active markets for identical assets or liabilities; other observable inputs; and unobservable inputs.

1 Jan 13 Disclosure for fair value measurements using unobservable inputs are relatively onerous compared to disclosure for fair value measurements using observable inputs. Consequently, the Standard may increase the disclosures for public sector entities that have assets measured using depreciated replacement cost. Detail of impact is still being assessed.

AASB 119 Employee Benefits In this revised Standard for defined benefit superannuation plans, there is a change to the methodology in the calculation of superannuation expenses, in particular there is now a change in the split between superannuation interest expense (classified as transactions) and actuarial gains and losses (classified as ‘Other economic flows – other movements in equity’) reported on the comprehensive operating statement.

1 Jan 13 As a not-for-profit entity, Parks Victoria is not permitted to apply this Standard prior to the mandatory application date. Detail of impact is being assessed.

While the total superannuation expense is unchanged, the revised methodology is expected to have a negative impact on the net result from transactions of the general government sector and for those few Victorian public sector entities that report superannuation defined benefit plans.

AASB 127 Separate Financial Statements

This revised Standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.


FINANCIAL REPORT






AASB 128 Investments in Associates and Joint Ventures

This revised Standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.


AASB 2009–11 Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12]

This Standard gives effect to consequential changes arising from the issuance of AASB 9.

1 Jan 13 No significant impact is expected from these consequential amendments on entity reporting.

AASB 2010–2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

This Standard makes amendments to many Australian Accounting Standards, including Interpretations, to introduce reduced disclosure requirements to the pronouncements for application by certain types of entities.

1 Jul 13 The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) for certain public sector entities and has not decided if RDRs will be implemented in the Victorian public sector.

AASB 2010–7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127]

These consequential amendments are in relation to the introduction of AASB 9.


AASB 2010–10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters [AASB 2009–11 & AASB 2010-7]

The amendments ultimately affect AASB 1 First-time Adoption of Australian Accounting Standards and provide relief for first-time adopters of Australian Accounting Standards from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards.

1 Jan 13 No significant impact is expected on entity reporting.

AASB 2011–2 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements [AASB 101 & AASB 1054]

The objective of this amendment is to include some additional disclosure from the Trans-Tasman Convergence Project and to reduce disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards – Reduced Disclosure Requirements.

1 Jul 13 The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) and has not decided if RDRs will be implemented in the Victorian public sector.

AASB 2011–4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements [AASB 124].

This Standard amends AASB 124 Related Party Disclosures by removing the disclosure requirements in AASB 124 in relation to individual key management personnel (KMP).

1 Jul 13 No significant impact is expected from these consequential amendments on entity reporting.

AASB 2011–6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements [AASB 127, AASB 128 & AASB 131].

The objective of this Standard is to make amendments to AASB 127 Consolidated and Separate Financial Statements, AASB 128 Investments in Associates and AASB 131 Interests in Joint Ventures to extend the circumstances in which an entity can obtain relief from consolidation, the equity method or proportionate consolidation.


AASB 2011–7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17]

This Standard outlines consequential changes arising from the issuance of the five ‘new Standards’ to other Standards. For example, references to AASB 127 Consolidated and Separate Financial Statements are amended to AASB 10 Consolidated Financial Statements or AASB 127 Separate Financial Statements, and references to AASB 131 Interests in Joint Ventures are deleted as that Standard has been superseded by AASB 11 and AASB 128 (August 2011).






AASB 2011–8 Amendments to Australian Accounting Standards arising from AASB 13[AASB 1, 2, 3, 4, 5, 7, 9, 2009–11, 2010–7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132]

This amending Standard makes consequential changes to a range of Standards and Interpretations arising from the issuance of AASB 13. In particular, this Standard replaces the existing definition and guidance of fair value measurements in other Australian Accounting Standards and Interpretations.

1 Jan 13 Disclosures for fair value measurements using unobservable inputs is potentially onerous, and may increase disclosures for assets measured using depreciated replacement cost. Details of the impact is still being assessed.

AASB 2011–10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) [AASB 1, AASB 8, AASB 101, AASB 124, AASB 134, AASB 1049 & AASB 2011-8 and Interpretation 14]

This Standard makes consequential changes to a range of other Australian Accounting Standards and Interpretation arising from the issuance of AASB 119 Employee Benefits.


AASB 2011–11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements

This Standard makes amendments to AASB 119 Employee Benefits (September 2011), to incorporate reduced disclosure requirements into the Standard for entities applying Tier 2 requirements in preparing general purpose financial statements.


AASB 2011–12 Amendments to Australian Accounting Standards arising from Interpretation 20 AASB 1

This Standard makes amendments to AASB 1 First-time Adoption of Australian Accounting Standards, as a consequence of the issuance of IFRIC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine. This Standard allows the first-time adopters to apply the transitional provisions contained in Interpretation 20.

1 Jan 13 There may be an impact for new agencies that adopt Australian Accounting Standards for the first time. No implication is expected for existing entities in the Victorian public sector.

2012–1 Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure Requirements [AASB 3, AASB 7, AASB 13, AASB 140 & AASB 141]

This amending Standard prescribes the reduced disclosure requirements in a number of Australian Accounting Standards as a consequence of the issuance of AASB 13 Fair Value Measurement.

1 Jul 13 As the Victorian whole of government and the general government (GG) sector are subject to Tier 1 reporting requirements (refer to AASB 1053 Application of Tiers of Australian Accounting Standards), the reduced disclosure requirements included in AASB 2012-1 will not affect the financial reporting for Victorian whole of government and GG sector. No significant impact is expected from these consequential amendments on entity reporting.

AASB Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine

This Interpretation clarifies when production stripping costs should lead to the recognition of an asset and how that asset should be initially and subsequently measured.

1 Jan 13 No significant impact is expected on entity reporting.

AASB 1053 Application of Tiers of Australian Accounting Standards

This standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purposes financial statements.


AASB 1055 AASB 1055 extends the scope of budgetary reporting that is currently applicable for the whole of government and general government sector (GGS) to not-for-profit entities within the GGS, provided that these entities present separate budget to the parliament.

1 Jan 14 [If separate budget is presented to the parliament]: The entity will be required to restate in the financial statements the budgetary information in accordance with the presentation format prescribed in Australian Accounting Standards and explain the significant variances from the original budget. [If separate budget is not presented to the parliament] This Standard is not applicable as no budget disclosure is required.

FINANCIAL REPORT



2013 $’000

2012 $’000

3 Parks and reserves trust funding

Park charges 83,276 80,331

Additional funding from parks and reserves trust 5,000 –

Total parks and reserves trust funding 88,276 80,331

The parks and reserves trust funding is a charge levied on commercial and domestic properties throughout the Melbourne and metropolitan area, the majority of which is paid to Parks Victoria. This funding is then invested into the management and control of parks and waterways within the metropolitan area for the purposes of conservation, recreation, leisure, tourism and navigation.

4 Government funding

National / state parks and reserves funding 58,263 58,852

Additional funding from state appropriations – 1,562

Parks Victoria Base Review Funding 5,721 14,356

Government grants for special projects 15,681 14,316

Program Initiatives (including tracks and trails and Good Neighbour programs) 1,081 843

Major works funding provided by the Department of Environment and Primary Industries (formally known as Department of Sustainability and Environment) 32,134 26,378

Major works funding provided by the Department of State Development Business and Innovation (formally known as Department of Business and Innovation) – 6

Major works funding provided by the Department of Transport, Planning and Local Infrastructure (formally known as Department of Planning and Community Development) 29 2

Major works funding provided by the Department of Transport, Planning and Local Infrastructure (formally known as Department of Transport) 7,956 5,740

Total government funding 120,865 122,055

5 Interest

Interest from financial assets categorised as available for sale:

Interest on bank deposits and other financial assets 4,363 5,327

Total interest 4,363 5,327

6 Fair value of assets received free of charge

Australian Grand Prix Corporation (AGPC) assets transferred from the

Department of State Development, Business and Innovation 429 3,422

Total fair value of assets received free of charge 429 3,422


2013 $’000

2012 $’000

7a Insurance income

Insurance claims 10,021 15,085

Total Insurance income 10,021 15,085

7b Other income

Accommodation/camping fees 5,271 4,159

Funding sponsored by external parties 1,512 1,063

Rent, leases and licences 7,748 7,510

External sales 2,805 2,222

Berthing/mooring fees 392 344

Cave tour fees 869 705

Fire suppression costs, recovered from DEPI (note 8) 10,626 5,618

Other 4,756 4,158

Total Other Income 33,979 25,779

8 Employee benefits expenses

Salaries, wages, termination benefits, annual leave and long service leave* 79,651 74,067

Fire suppression costs (note 7b) 10,626 5,618

Termination payments associated with restructuring 6,610 –

Superannuation – defined and accumulation plan** 5,950 7,748

Fringe Benefits Tax and payroll taxes 5,066 5,151

Other on-costs 1,191 1,265

Total Employee Benefits 109,094 93,849

* Salaries and wages include a 4.5% increase from 1 Oct 2012 and a further 3.0% from 1 Mar 2013 arising from the Fair Work determination.

** Parks Victoria contributions, in respect of its employees (including salary sacrifice) refer note 28.

9 Depreciation and amortisation

Land improvements 2,164 1,679

Buildings and building improvements 3,641 3,959

Piers, jetties and river improvements 4,024 3,569

Plant and equipment 298 318

Intangibles 751 751

Total depreciation and amortisation 10,878 10,276

10 Contracts and external services

Core operational services 81,245 89,113

Other external services 25,856 24,608

Total contracts and external services 107,101 113,721

FINANCIAL REPORT



2013 $’000

2012 $’000

11 Other operating expenses

Materials 5,606 6,465

Transport 6,049 5,863

Payments to government for revenue collected from national parks* 6,892 6,037

Payments to local government, other agencies, community groups and for program operating costs 21 417

Insurance premiums 10,442 8,732

Payments for works sponsored by external parties 1,661 1,018

Other 1,583 3,365

Total other operating expenses 32,254 31,897

* The revenue is included in note 7b Other Income under Accommodation/camping fees and Rent, leases and licences.

12 Other economic flows included in net result

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

Disposal of property, plant and equipment (1,390) –

(b) Net gain/(loss) on financial instruments

Provision for doubtful debts (145) (257)

Reversal of unused provision 298 –

(c) Other gains/(losses) from other economic flows

Net gain/(loss) arising from revaluation of long service liability due to changes in the bond interest rates 735 (2,802)

Total other economic flows included in net result (502) (3,059)

13 Cash and deposits – current

Cash and deposits 87,340 58,423

Total cash and deposits 87,340 58,423

(a) Risk exposure

Park Victoria’s exposure to interest rate risk is discussed in note 33 (f). The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and deposits mentioned in note 33 (d).


2013 $’000

2012 $’000

14 Receivables

Receivables – current

Debtors* 11,345 15,177

Provision for doubtful debts (500) (704)

Total receivables – current 10,845 14,473

Receivables – non-current

Other receivables 76 84

Total receivables – non-current 76 84

Total receivables 10,921 14,557

(a) Movement in the provision for doubtful receivables

Balance at beginning of the year (704) (449)

Reversal of unused provision recognised in the net result 298 –

Increase in provision recognised in the net result (145) (257)

Reversal of provision written off during the year as uncollectible 51 2

Balance at the end of the year (500) (704)

(b) Ageing analysis of contractual receivables

Refer to note 33 (d) table 33.3 for the ageing analysis of receivables (except statutory receivables).

(c) Nature and extent of risk arising from contractual receivables

Refer to note 33 (d) for the nature and extent of risks arising from contractual receivables.

* Debtors include $2.0m of VMIA insurance claims (2012 – $7.6m)

15 Other financial assets

Available for sale financial assets

Australian dollar term deposit > 3 months – 50,000

Total Other Financial Assets – current – 50,000

(a) Ageing analysis of financial assets

Please refer to note 33 (d) table 33.3 for the ageing analysis of financial assets.

(b) Nature and extent of risk arising from other financial assets

Please refer to note 33 (d) for the nature and extent of risks arising from investments and other financial assets.

16 Inventories – current

Stock on Hand (at cost) 175 159

Total Inventories 175 159

FINANCIAL REPORT



2013 $’000

2012 $’000

17 Property, plant and equipment – non-current

17a Classification by public safety and environment – carrying amounts

Crown land, land and land improvements

At fair value 1,542,743 1,543,129

Less: accumulated depreciation (3,130) (1,694)

1,539,613 1,541,435

At cost 24,832 14,644

Less: accumulated depreciation (811) (118)

24,021 14,526

Net book value – Crown land, land and land improvements 1,563,634 1,555,961

Buildings and building improvements

At fair value 79,520 80,666


71,890 76,551

At cost 3,130 434

Less: accumulated depreciation (18) –

3,112 434

Net book value – Buildings and building improvements 75,002 76,985

Plant, equipment, machinery and vehicles

At cost 7,720 7,692


Net book value – Plant, equipment, machinery and vehicles 853 1,122

Piers, jetties and river improvements



57,745 60,987

At cost 17,715 12,151

Less: accumulated depreciation (1,091) (308)

16,624 11,843

Net book value – Piers, jetties and river improvements 74,369 72,830

Antiques


Closing balance – antiques 1,278 1,278

Works in progress

At cost 4,051 14,654

Closing balance – works in progress 4,051 14,654

Net carrying amount of property, plant and equipment 1,719,187 1,722,830


17b Classification by public safety and environment – carrying amounts

Crown land, land & land improvements

Buildings and building improvements

2013 $’000

2012 $’000

2013 $’000

2012 $’000

Opening balance 1,555,961 1,542,997 76,985 80,510

Additions 10,189 14,643 2,696 434

Disposals (352) – (1,038) –

Acquisitions through administrative restructure – – – –

Transfer to assets classified as held for sale – – – –

Net revaluation increments/ decrements – – – –

Depreciation expense (2,164) (1,679) (3,641) (3,959)

Impairment loss – – – –

Asset transfer – – – –

Other adjustments – – – –

Closing balance 1,563,634 1,555,961 75,002 76,985

Crown land, land and land improvements

Fair value assessments based on the indices supplied by the Department of Treasury and Finance have been performed for all classes of assets within this purpose group. Management has decided that movements were not material (less than or equal to 10 per cent) to record revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2016.

Buildings and improvements, piers, jetties and river improvements

Fair value assessments based on the indices supplied by the Department of Treasury and Finance have been performed for all classes of assets within this purpose group. Management has decided that movements were not material (less than or equal to 10 per cent) to record revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2016.

Antiques

For and on behalf of the office of the Valuer-General Victoria, the valuers for Colliers International Consultancy and Valuation Pty Limited, one a government approved valuer, the other a member of the Australian Property Institute of Certified Practising Valuers, determined that the most appropriate methodology for the revaluation of Antiques at fair value, was to assess the dollar value, with reference to the active and liquid antiques’ auction market, having regard to the highest and best use of the asset, for which market participants would be prepared to pay. These assets were revalued during a systematic three-year progressive revaluation process, conducted over the financial years ended 30 June 2003 to 30 June 2005.

The William Ricketts Sanctuary is located in the Dandenong Ranges Gardens and contains over 70 in-ground aboriginal sculptures created by the late William Ricketts. The assets are of cultural and heritage significance. A valuation of these assets is not able to be determined.

FINANCIAL REPORT


Plant, equipment, machinery & vehicles

Piers, jetties and river improvements Antiques Works in progress Total

2013 $’000

2012 $’000

2013 $’000

2012 $’000

2013 $’000

2012 $’000

2013 $’000

2012 $’000

2013 $’000

2012 $’000

1,122 1,412 72,830 64,246 1,278 1,278 14,654 28,591 1,722,830 1,719,034

29 28 5,563 12,153 – – 2,739 4,641 21,216 31,899

– – – – – – – – (1,390) –

– – – – – – – – – –

– – – – – – – – – –

– – – – – – – – – –

(298) (318) (4,024) (3,569) – – – – (10,127) (9,525)

– – – – – – – – – –

– – – – – – (13,342) (18,578) (13,342) (18,578)

– – – – – – – – – –

853 1,122 74,369 72,830 1,278 1,278 4,051 14,654 1,719,187 1,722,830


17c Crown land, land and land improvements at fair value, where Parks Victoria is a Committee of Management.

2013 2012

Crown land2013 Area (Hectares)

2013$’000

2012 Area (Hectares)

2012$’000

Location

You Yangs Regional Park 1,960 5,880 1,960 5,880

Devilbend Reservoir 1,005 39,990 1,005 39,990

Eildon Water Reserve 533 1,280 533 1,280

Dandenong Police Paddocks 499 164,670 499 164,670

Bays Assets* 498 Not Valued 498 Not Valued

Lighthouse Reserves 329 2,170 329 2,170

Dandenong Ranges Gardens 278 2,670 278 2,670

Buchan Caves Reserve 260 390 260 390

Yarra Bend Park 260 210,600 260 210,600

Albert Park 229 858,750 229 858,750

Serendip Sanctuary 227 1,670 227 1,670

Plenty Gorge 222 9,484 222 9,484

Yarra Valley 139 111,010 139 111,010

Werribee Park 130 15,600 130 15,600

Vaughan Springs 100 180 100 180

Coolart 79 9,480 79 9,480

Mt Dandenong Observatory Reserve 72 2,160 72 2,160

Olinda Golf Course 34 510 34 510

Westgate 34 26,950 34 26,950

Maribyrnong Valley 22 6,090 22 6,090

Dandenong Valley 6 3,420 6 3,420

Peach Tree Creek 4 60 4 60

Point Cook / Cheetham 4 720 4 720

Herring Island 3 9,600 3 9,600

Queenscliff (not including Bays Assets * component) 3 1,800 3 1,800

Rosebud 1 600 1 600

San Remo 1 450 1 450

Point Gellibrand Heritage Park 17 27,967 17 27,967

Hopkins River, Willaura SS.R 4 38 4 38

Sandringham Boat Harbor 8 5,180 8 5,180

Princess Wharf 1 10 1 10

Total crown land 6,962 1,519,379 6,962 1,519,379

* Represents sea beds located at Swan Bay (220 Ha), Queenscliff (137 Ha) and 141 Ha being sea beds under 31 piers located within Port Phillip Bay and Western Port Bay.

Land and land improvements

2013 2012

Total land and land improvements at fair value 44,255 36,582

Total crown land, land and land improvements 1,563,634 1,555,961

FINANCIAL REPORT



18 Intangible assets – non-current

Computer software Total

2013 $’000

2012 $’000

2013 $’000

2012 $’000

Gross carrying amount

Opening balance 7,510 7,510 7,510 7,510

Additions – – –

Closing balance 7,510 7,510 7,510 7,510

Accumulated amortisation and impairment

Opening balance 1,935 1,184 1,935 1,184

Amortisation expense 751 751 751 751

Closing balance 2,686 1,935 2,686 1,935

Net book value at end of financial year 4,824 5,575 4,824 5,575

2013 $’000

2012 $’000

19 Other non-financial assets – current

Prepayments 20 16

Total other non-financial assets 20 16

20 Payables

Unsecured creditors and accruals 22,278 28,597

Total payables 22,278 28,597

(a) Maturity analysis of contractual payables

Please refer to note 33 (e) table 33.4 for the maturity analysis of contractual payables.

(b) Nature and extent of risk arising from contractual payables

Please refer to note 33(e) for the nature and extent of risks arising from contractual payables.


2013 $’000

2012 $’000

21 Provisions

(a) Current provisions

Employee benefits

Annual leave entitlements 6,794 6,510

*Long service leave – unconditional and expected to be settled within 12 months 1,609 2,061

*Long service leave – unconditional and expected to be settled after 12 months 18,459 18,677

26,862 27,248

Provisions related to employee benefit on-costs

Annual leave entitlements 1,151 1,284

* Long service leave – unconditional and expected to be settled within 12 months 283 363

* Long service leave – unconditional and expected to be settled after 12 months 3,251 3,290

4,685 4,937

Total current provisions 31,547 32,185

(b) Non-current provisions

# Employee benefits – long service leave 2,148 2,103

2,148 2,103

Provisions related to employee benefit on-costs

Provisions related to employee benefit on-costs – long service leave 378 371

378 371

Total non-current provisions 2,526 2,474

Total employee benefits and related on-costs 34,073 34,659

Total provisions 34,073 34,659

* The current liability for long service leave represents entitlements accrued for employees with more than 7 years of continuous service.

# The non-current liability for long service leave represents entitlements accrued for employees with less than 7 years of continuous service.

FINANCIAL REPORT



2013 $’000

2012 $’000

22 Deferred revenue

Current 31,060 54,107

Non-current 27,358 26,006

Total deferred revenue 58,418 80,113

23 Physical asset revaluation surplus

Movement in physical asset revaluation surplus

Opening balance 1,128,678 1,128,678

Revaluation of Parks Victoria assets:

Crown land, land and land improvements – –

Buildings and building improvements 637 –

Piers, jetties and river improvements – –

Net revaluation increment on Parks Victoria assets 637 –

Total physical asset revaluation surplus 1,129,315 1,128,678

24 Contributed capital

Opening balance 630,515 619,546

Cash transferred – DEPI * – 5,741

Hopkins River assets transferred from DEPI – 38

Sandringham Boat Harbor assets transferred from DEPI – 5,180

Princess Wharf assets transferred from DEPI – 10

Albert Park assets transferred from DPCD 4,676 –

Net movement in Contributed Capital 4,676 10,969

Total contributed capital 635,191 630,515

* The cash transferred for State appropriations – Asset replacement and renewal, Parks Reserve

Trust Asset replacement and renewal, and Office accommodation / depot for fire fighters.


2013 $’000

2012 $’000

25 Cash flow information

(a) Reconciliation of cash and deposits

Total cash and deposits disclosed in the balance sheet 87,340 58,423

Bank overdraft – –

Balance as per cash flow statement 87,340 58,423

(b) Non-cash financing and investing activities

Restructuring of administrative arrangements

Transfer of Assets – Sandringham Boat Harbor (2012) – 5,228

(c) Reconciliation of net results for the period to net cash flows from operating Activities

Net result for the period (1,896) (803)

Non-cash movements:

Depreciation and amortisation for the year 10,877 10,276

Provision for doubtful debts (152) 257

Net assets (received) / provided free of charge (429) (3,422)

Loss / (gain) on sale, retirement and / or revaluation of assets 1,390 –

Change in assets and liabilities:

Decrease/(increase) in receivables 3,841 (7,647)

Decrease/(increase) in inventories (16) (45)

Decrease/(increase) in other non-financial assets (5) 307

Increase/(decrease) in provisions (3,861) 3,252

Increase/(decrease) in payables (6,317) 11,040

Increase/(decrease) in deferred revenue (21,695) (848)

Net Cash from/(used in) operating activities (18,263) 12,367

(d) Credit card and merchant facilities

Total credit card facility 2,000 2,000

Total credit card facility used/(Liability) (213) (241)

Total merchant facility (daily limit) 370 370

26 Contingent liabilities and contingent assets

(a) Contingent liabilities – other outstanding claims

There are no material claims against Parks Victoria arising out of matters connected with its operating activities.

(b) Contingent assets

Floods have caused significant damage to Parks Victoria’s parks, reserves, natural environment and visitor infrastructure. During the year Parks Victoria spent $12.4m, funded under its insurance policy, with Victorian Managed Insurance Authority (VMIA) in restoring assets destroyed by floods. To date it has been reimbursed $8.3m from the insurer, including $2m in July 2013, with the remaining $4.1m expected to be recovered once all claims have been fully processed by VMIA.

FINANCIAL REPORT



2013 $’000

2012 $’000

27 Commitments

(a) Capital commitments

Value of commitments for capital expenditure at 30 June 2013 for the supply of works, services and materials not provided for in the financial statements:

Not later than one year 1,352 6,557

Later than one year and not later than five years – –

Later than five years – –

Total capital commitments (inclusive of GST) 1,352 6,557

Less GST recoverable from Australian Tax Office (123) (596)

Total capital commitments (exclusive of GST) 1,229 5,961

(b) Lease commitments

Total expenditure contracted for at balance date but not provided for in the financial statements in relation to non-cancellable operating leases is as follows:

Not later than one year 11,334 12,000

Later than one year and not later than five years 20,846 20,295

Later than five years 4,544 7,642

Total non-cancellable operating leases (inclusive of GST) 36,725 39,937

Less GST recoverable from Australian Tax Office (3,339) (3,631)

Total non-cancellable operating leases (exclusive of GST) 33,386 36,306

Leasing arrangements

Operating leases relate to building facilities with lease terms of between three to seven years, with an option to extend for a further three years. All operating lease contracts contain market review clauses in the event that Parks Victoria exercises its option to renew. Parks Victoria does not have an option to purchase the leased asset at the expiry of the lease period.

28 Superannuation

Parks Victoria contributes, in respect of its employees (including salary sacrifice), to the superannuation schemes as follows:

Scheme Type of scheme2013 $’000

2012 $’000

Defined benefit plans:

Vision Super Defined 1,153 1,118

Other Defined 1,804 1,762

Accumulation plans:

Vision Super Accumulation 2,834 2,928

Vic Super Accumulation 1,781 1,900

Other Accumulation 1,493 2,022

Total contributions to all funds 9,065 9,730

Employees engaged from 1 January 1994 are entitled to benefits under accumulation funds. Employees have the opportunity to make personal contributions to the funds at a self-nominated rate or amount. The minimum employer contribution to the fund, pursuant to the Superannuation Guarantee Charge was 9.0 per cent in 2012/13 (2011/12: 9.0 per cent).

As at the reporting date, there were no outstanding contributions payable to the above funds. However there is a separate provision made in regards to defined benefits plan (refer note 29(c)).


29 Defined superannuation benefit

Defined benefit superannuation

The Vision Super superannuation fund provides lump sum benefits based on length of service and final superannuable salary for employees engaged up until 31 December 1993. Employees contribute at rates between 0 to 7.5 per cent of their superannuation salary. Parks Victoria contributes to the fund based on its commitments under the Employee Participation Agreement and Contribution Policy with the trustee of the fund.

2013 $’000

2012 $’000

(a) Reconciliation of the present value of the defined benefit obligation

Balance at the beginning of the year 35,733 35,203

Current service cost 1,200 1,215

Interest cost 1,040 1,501

Contributions by plan participants – –

Actuarial (Gain)/Loss 544 522

Benefits paid (4,450) (2,513)

Taxes and premiums paid (242) (195)

Transfers in – –

Present value of the defined benefit obligation at the end of the year 33,825 35,733

(b) Reconciliation of the fair value of plan assets

Balance at the beginning of the year 29,517 29,894

Expected return on plan assets 2,144 2,449

Actuarial Gain/(Loss) 1,953 (1,536)

Employer contributions 1,879 1,297

Contributions by plan participants 349 353

Benefits paid (4,450) (2,513)

Plan expenses (264) (232)

Taxes and premiums paid (242) (195)

Transfers in – –

Fair value of plan assets at the end of the year 30,886 29,517

(c) Reconciliation of the assets and liabilities recognised in the balance sheet

Present value of the defined benefit obligation 33,825 35,733

Less: fair value of plan assets (30,886) (29,517)

Plus: on-costs – –

Net superannuation liability/(asset) 2,939 6,216

Defined contribution superannuation

Parks Victoria has recognised a liability in the Balance Sheet in respect of its defined superannuation benefit arrangements at 30 June 2013. If a surplus exists in the plan, Parks Victoria may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the plan’s actuary. If a deficit exists in the plan, Parks Victoria may be required to increase the required contribution rate, depending on the advice of the plan’s actuary consistent with the plan’s deed. Parks Victoria made a contribution of $976k in 2012–13 ($450k 2011–12).

FINANCIAL REPORT



2013 $’000

2012 $’000

(d) Expense recognised in the comprehensive operating statement

Service cost 1,200 1,215

Member contribution (349) (353)

Interest cost 1,040 1,500

Expected return on plan assets (2,144) (2,449)

Plan expense 264 232

Actuarial (gain)/loss recognised in year (1,409) 2,058

Total superannuation expense/(income) (Note 8) (1,398) 2,203

(e) Fair value of plan assets

The fair value of plan assets includes no amounts relating to:

a) any of Parks Victoria's own financial instruments;

b) any property occupied by, or other assets used by, Parks Victoria.

(f) Expected rate of return on plan assets

The expected return on plan assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each asset class and allowing for the correlations of the investment returns between asset classes. The returns used for each asset class are net of investment tax and investment fees. An allowance for administration expenses has also been deducted from the expected return.

(g) Principal actuarial assumptions at the balance sheet date

Discount rate (gross of tax) 3.76% p.a 3.00% p.a

Expected return on assets 7.50% p.a 7.50% p.a

Average salary increase rate 3.00% p.a 3.00% p.a


30 Volunteer resources provided free of charge

In 2012–13 volunteers contributed in excess of 29,751 days of voluntary labour on Parks Victoria managed land.

Volunteers including friends groups, individuals, schools, corporate volunteers and special interest groups, provided valuable support to Parks Victoria through their voluntary participation in a range of park management projects and ongoing maintenance across approximately 180 parks and reserves.

No estimate of the value of these resources has been included in the financial report as there is no practical way of determining an appropriate valuation basis.

2013 $’000

2012 $’000

31 Auditor's remuneration

Amounts paid/payable to:

Victorian Auditor-General’s Office for the audit of the financial statements 69 67

32 Responsible persons and executive officer disclosures

(a) Responsible persons

The names of persons who were board members at any time during the financial year ended 30 June 2013 were: D Cavagna, D Cheetham, A Fairley, A Grant, N O’Brien, G Phibbs (term ended 2 August 2012), P Sanderson, A Vizard, and R Wallis.

The name of the responsible Minister from 1 July 2012 to 30 June 2013 was Ryan Smith MP, Minister for Environment and Climate Change.

The name of the accountable officer for the whole of the financial year ended 30 June 2013 was B Jackson.

(b) Accountable Officer remuneration

Remuneration received or receivable by the Accountable Officer in connection with the management of Parks Victoria during the reporting period was in the range:

$350,000 to $359,999 (2012–13)

$320,000 to $329,999 (2011–12)

2013 $’000

2012 $’000

(c) Board members remuneration

Total remuneration received or due and receivable by Board Members from the reporting entity was: 187 135

Number Number

The number of Board Members of the reporting entity included in this figure is as below:

Income of:

$0 to $9,999 1 2

$10,000 to $19,999 3 –

$20,000 to $29,999 4 5

$30,000 to $39,999 1 –

FINANCIAL REPORT



(d) Executive officers remuneration

The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits. The total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period.

A number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts only include the payment of bonuses on the successful completion of the full term of the contract.

Total Remuneration Base Remuneration

2013 Number 2012 Number 2013 Number 2012 Number

$140,000 to $149,999 5 3 6 5

$150,000 to $159,999 1 3 – 3

$160,000 to $169,999 1 4 3 4

$170,000 to $179,999 2 3 1 3

$180,000 to $189,999 2 3 4 2

$190,000 to $199,999 3 – 4 1

$200,000 to $209,999 3 2 – –

$210,000 to $219,999 1 – – –

$220,000 to $229,999 – – – 1

$230,000 to $239,999 – 1 – –

$260,000 to $269,999 – – – 1

$290,000 to $299,999 – 1 – –

Total number of executives 18 20 18 20

Total annualised employee equivalent (AEE) (a) 18 20 18 20

Total amount ($ ‘000) 3,175 3,574 3,059 3,428

Note:

(a) Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period.

(b) Total Remuneration includes performance pay, payments made on termination such as long service leave, annual leave & redundancy.

(c) Base Remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.

* This table includes those officers who’s annual remuneration exceed $141,667.

* The comparatives for 2012 have been amended to comply with the new reporting requirements FRD 21B.

(e) Other transactions of board members and board member-related entities

2013 $’000

2012 $’000

Other transactions of board members and board member-related entities conducted at arm’s length.

Zoos Victoria 46 8

Zoological Parks and Gardens Board 2 3

People and Parks Foundation 1 123

GHD Consultants 576 403

Earthwatch 4 –

University of Ballarat 48 –

Wannon Water 12 –

University of Melbourne 431 –

Total 1,120 537


33 Financial instruments

(a) Financial risk management objectives

Parks Victoria’s activities expose it primarily to the financial risks of changes in interest rates. Parks Victoria does not enter into derivative financial instruments to manage its exposure to interest rate risk.

Parks Victoria does not enter into or trade financial instruments, including derivative financial instruments for speculative purposes as per the Victorian Governments Borrowing and Investment Powers Act 1987 and subsequent amendments.

The policies for managing this risks is discussed in more detail below.

(b) Significant accounting policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements.

The carrying amounts of Park Victoria's financial assets and financial liabilities by category are in Table 33.1 below.

Table 33.1: Categorisation of financial instruments

Note Category2013 $’000

2012 $’000

Financial assets

Cash and deposits 13 Loans and receivables (at amortised cost) 87,340 58,423

Receivables 14 Loans and receivables (at amortised cost) 1,929 2,101

Other financial assets 15 Available-for-sale financial assets (at fair value) – 50,000

Financial liabilities

Payables 20 At amortised cost 22,278 28,597

Note:

(a) The amount of receivables disclosed here exclude statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). For 2013 this was $9.0M (2012 $12.5M).

(c) Significant terms and conditions

There are no other significant terms and conditions applicable to Parks Victoria, in respect of each class of financial asset, financial liability and equity instrument, except those required by FRD 114A Financial Instruments.

(d) Credit risk

Credit risk arises from the financial assets of Parks Victoria, which comprise cash and cash equivalents, trade and other receivables, and available-for-sale financial assets. Parks Victoria’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the agency. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with the agency’s financial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, it is Parks Victoria’s policy to only deal with entities with high credit ratings and to obtain sufficient collateral or credit enhancements where appropriate.

In addition, the agency does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest. The agency’s policy is to only deal with banks with high credit ratings.

Provision for doubtful debts is recognised when there is objective evidence that Parks Victoria will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtors default payments, debts which are more than 90 days overdue and changes in debtor’s credit ratings.

Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents Parks Victoria’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

FINANCIAL REPORT



Table 33.2: Credit quality of contractual financial assets that are neither past due nor impaired

Financial institutions

Double-A credit rating $’000

Government agencies

Triple-A credit rating$’000

Government agencies

Triple-B credit rating$’000

Other $’000

Total $’000

2013

Cash and deposits 87,340 – – – 87,340

Receivables – 1,216 – – 1,216

Investments and other financial assets – – – – –

Total contractual financial assets 87,340 1,216 – – 88,556

2012

Cash and deposits 58,433 – – – 58,433

Receivables – 1,083 – – 1,083

Investments and other financial assets – 50,000 – – 50,000

Total contractual financial assets 58,433 51,083 – – 109,516

Note:

(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

Financial assets that are neither past due nor impaired

Currently Parks Victoria does not hold any collateral as security nor credit enhancements relating to any of its financial assets.

As at the reporting date, there is $500k of receivables that have been assessed as impaired.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of financial assets that are past due but not impaired, and impaired financial assets.

Table 33.3: Ageing analysis of financial assets(a)

Past due but not impaired

Carrying amount $’000

Not past due and not impaired

$’000

Less than 1 Month

$’0001–3 months

$’0003 months – 1 year

$’0001–5 years

$’000

2013

Other receivables 1,929 1,216 238 130 – 345

1,929 1,216 238 130 – 345

2012

Other receivables 2,101 1,083 310 244 – 464

2,101 1,083 310 244 – 464

Note:

(a) Ageing analysis of financial assets excludes statutory receivables (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).


(e) Liquidity risk

Liquidity risk arises when the Park Victoria is unable to meet its financial obligations as they fall due. Park Victoria operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. It also continuously manages risks through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets.

Parks Victoria’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Cash for unexpected events is generally sourced from liquidation of available-for-sale financial investments.

The following table discloses the contractual maturity analysis for the Park Victoria’s financial liabilities.

Table 33.4: Interest rate exposure and maturity analysis of financial liabilities

Maturity dates

Carrying amount $’000

Non Interest Bearing

$’000

Less than 1 month

$’0001–3 months

$’0003 months–1 year

$’0001–5 years

$’000

2013

Amounts payable to other government agencies

2,564 2,564 2,564 – – –

Other payables 19,714 19,714 19,714 – – –

22,278 22,278 22,278 – – –

2012

Amounts payable to other government agencies

1,669 1,669 1,669 – – –

Other payables 26,928 26,928 26,928 – – –

28,597 28,597 28,597 – – –

(f) Market risk

Parks Victoria’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency risk. A sensitivity analysis has been prepared for interest rate risk, as it is deemed as a significant market risk on the return to Parks Victoria. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below.

Interest rate risk

The fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates.

The carrying amount of financial assets that are exposed and its sensitivity to interest rates is set out in table 33.5.

Table 33.5: Interest rate market risk exposure

Interest rate risk

Net Result $’000

Net Result $’000

Financial assets: 2013 -50 basis points +50 basis points

Other financial assets – based on actual 2012–13 closing balance

Carrying amount $87.3M @ 30 June 2013 (436) 436

Financial assets: 2012 -50 basis points +50 basis points

Other financial assets – based on budgeted 2011–12 closing balance

Carrying amount $108.4M @ 30 June 2012 (542) 542

FINANCIAL REPORT



The interest rate risk analysis has been applied on the total of $87.3M, on the estimate that the minimum interest rate decrease will be 0.50 % and the maximum increase will be 0.50 % .

Exposure to interest rate risk is reduced as funds are held in fixed interest term deposits. The weighted average cash interest rate earned for 2012–13 was 3.54% (2011–12 4.74%).

Foreign currency risk

Parks Victoria is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement.

(g) Fair value

The fair values and net fair values of financial assets and financial liabilities are determined as follows:

• thefairvalueoffinancialassetsandfinancialliabilitieswithstandardtermsandconditionsandtradedinactiveliquidmarketsaredeterminedwithreference to quoted market prices; and

• thefairvalueofotherfinancialassetsandfinancialliabilitiesaredeterminedinaccordancewithgenerallyacceptedpricingmodelsbasedondiscounted cash flow analysis.

Parks Victoria considers that the carrying amount of financial instruments assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid or received in full.

The carrying values and fair values of financial assets and liabilities at balance date are:

Total carrying amount as per balance sheet Aggregate fair value

2013 $’000

2012 $’000

2013 $’000

2012 $’000

Cash and cash equivalents 87,340 58,423 87,340 58,423

Receivables 1,929 2,101 1,929 2,101

Other financial assets – 50,000 – 50,000

Total financial assets 89,269 110,524 89,269 110,524

Payables 22,278 28,597 22,278 28,597

Total financial liabilities 22,278 28,597 22,278 28,597

34 Committed funds

2013 $’000

2012 $’000

Total funds 87,340 108,423

Committed cash and Investments

Government asset and initiative funding 37,364 47,299

Point Nepean park establishment 8,327 16,731

Fire and flood programs (incl. insurance) 15,353 21,003

Sponsored works 10,589 16,628

Restructuring costs 4,730 –

Defined Benefits Superannuation obligation 4,290 –

Total committed cash 80,653 101,661

These commitments are for complex projects that span greater than one financial year. Parks Victoria receives significant funding in advance from many sources and manages its cash to ensure its capacity to meet immediate financial commitments as they arise.

35 Post balance date events

Parks Victoria is unaware of any events subsequent to the reporting date that will have a material impact on its financial position or future financial performance.

Statutory Certificate

FINANCIAL REPORT


Auditor’s Report

Auditor’s Report

FINANCIAL REPORT

Parks Victoria Level 10, 535 Bourke Street, Melbourne, Australiawww.parks.vic.gov.au or call 13 19 63

Parks Victoria Annual Report · 2013-09-23 · Parks Victoria Annual Report . 2012–2013 Page 3....

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