EAST GIPPSLAND CATCHMENT MANAGEMENT AUTHORITY · 2016-09-19 · 3 EGCMA ANNUAL REPORT 2015 – 2016...

2016Snowy River

ANNUAL REPORT 2015 –2016

EAST GIPPSLANDCATCHMENTMANAGEMENTAUTHORITY

2008

Acknowledgement

Front cover photo – Snowy River - Jarrahmond – Top of Private Land - looking upstream

(Before photo taken 30/04/2008, after photo taken 16/05/2016)

Photo supplied by – East Gippsland Catchment Management Authority.

Published by East Gippsland Catchment Management Authority

574 Main Street, (PO Box 1012) Bairnsdale 3875

Phone 03 5152 0600

Fax 03 5150 3555

Email address: [email protected]

Website: www.egcma.com.au

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is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error,

loss or other consequence which may arise from you relying on any information in this publication.

© State of Victoria, East Gippsland Catchment Management Authority 2016. This publication is copyright.

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

ISSN 1837-1116 (Print)

ISSN 2205-958X (Online)

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EGCMA A NNUAL REPORT 2015 – 2016

SECTION 1 – YEAR IN REVIEW ..............................................................................................................................................................................................................3

1.1 VISION, MISSION, VALUES ........................................................................................................................................................................................................3

1.2 CHAIRPERSON’S REPORT ........................................................................................................................................................................................................3

1.3 MANNER OF ESTABLISHMENT AND RESPONSIBLE MINISTER/S ..........................................................................................................4

1.4 NATURE AND RANGE OF SERVICES PROVIDED ....................................................................................................................................................4

1.4.1 EAST GIPPSLAND REGION ......................................................................................................................................................................................4

1.4.2 WHAT DOES THE AUTHORITY DO? ....................................................................................................................................................................5

1.5 OBJECTIVES, FUNCTIONS, POWERS AND DUTIES..............................................................................................................................................5

1.5.1 STRATEGIC DIRECTION ..............................................................................................................................................................................................5

1.5.2 CATCHMENT AND LAND PROTECTION ACT 1994 ................................................................................................................................5

1.5.3 WATER ACT 1989 ..............................................................................................................................................................................................................5

1.6 PERFORMANCE AGAINST (STATUTORY) OBJECTIVES ....................................................................................................................................5

1.6.1 WATERWAY GOALS ........................................................................................................................................................................................................5

1.6.2 WILLOW CONTROL ........................................................................................................................................................................................................6

1.6.3 STOCK EXCLUSION FENCING ..............................................................................................................................................................................6

1.6.4 STABILISATION ..................................................................................................................................................................................................................7

1.6.5 PROGRESS TOWARDS ENGAGEMENT GOALS ........................................................................................................................................7

1.6.6 ACHIEVEMENT OF THE ENGAGEMENT GOALS ......................................................................................................................................8

1.6.7 KNOWLEDGE / ATTITUDE..........................................................................................................................................................................................8

1.7 EAST GIPPSLAND CATCHMENT CONDITION REPORT CARD ..................................................................................................................11

1.7.1 SUMMARY ............................................................................................................................................................................................................................11

1.7.2 WATERWAYS - THE CONDITION OF WATERWAYS IN EAST GIPPSLAND ..........................................................................12

1.7.3 BIODIVERSITY - THE CONDITION OF NATIVE HABITAT AND HEALTH OF NATIVE SPECIES ..........................13

1.7.4 COASTS - THE CONDITION OF MARINE AND COASTAL ENVIRONMENTS ....................................................................14

1.7.5 LAND - THE MANAGEMENT OF ENVIRONMENT AND LONG TERM PRODUCTIVITY..............................................16

1.7.6 COMMUNITY - THE BENEFITS THAT FLOW FROM COMMUNITY PARTICIPATION ..................................................18

1.7.7 PROGRAM OUTPUTS ................................................................................................................................................................................................19

1.8 PERFORMANCE AGAINST KEY PERFORMANCE INDICATORS ..............................................................................................................20

1.9 KEY INITIATIVES & PROJECTS ..........................................................................................................................................................................................22

1.9.1 EAST GIPPSLAND REGIONAL CATCHMENT STRATEGY CLIMATE CHANGE ADAPTATION ANDMITIGATION PLAN ........................................................................................................................................................................................................22

1.9.2 THE GIPPSLAND LAKES RAMSAR SITE MANAGEMENT PLAN ..............................................................................................22

1.9.3 THE GIPPSLAND LAKES HINTERLAND VEGETATION PLAN ......................................................................................................22

1.9.4 THE GIPPSLAND LAKES COORDINATING COMMITTEE ..............................................................................................................22

1.9.5 GUNAIKURNAI LAND AND WATERS ABORIGINAL CORPORATION (GLAWAC) ‘ON COUNTRY’ TEAM ..22

1.9.6 NRM COMMUNITY FUNDING ..............................................................................................................................................................................22

1.10 FIVE YEAR FINANCIAL SUMMARY ..................................................................................................................................................................................23

1.11 CURRENT YEAR FINANCIAL REVIEW ............................................................................................................................................................................23

1.12 SIGNIFICANT CHANGES IN FINANCIAL POSITION ............................................................................................................................................23

1.13 SIGNIFICANT CHANGES OR FACTORS AFFECTING PERFORMANCE................................................................................................23

1.14 CAPITAL PROJECTS ....................................................................................................................................................................................................................23

1.15 DISCLOSURE OF GRANTS AND TRANSFER PAYMENTS ..............................................................................................................................23

1.16 SUBSEQUENT EVENTS ............................................................................................................................................................................................................25

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EGCMA A NNUA L REPORT 2015 – 2016

SECTION 2 – GOVERNANCE & ORGANISATIONAL STRUCTURE............................................................................................................................25

2.1. ORGANISATIONAL CHART ....................................................................................................................................................................................................25

2.2. SENIOR EXECUTIVES ................................................................................................................................................................................................................25

2.3. GOVERNING BOARD ..................................................................................................................................................................................................................25

2.4. AUDIT AND RISK COMMITTEE ..........................................................................................................................................................................................26

2.5. COMMUNICATIONS AND ENGAGEMENT COMMITTEE..................................................................................................................................26

2.6. PEOPLE AND REMUNERATION COMMITTEE ........................................................................................................................................................27

2.7. WORK HEALTH AND SAFETY ..............................................................................................................................................................................................27

SECTION 3 - WORKFORCE DATA ......................................................................................................................................................................................................28

3.1 PUBLIC ADMINISTRATION VALUES AND EMPLOYMENT PRINCIPLES ............................................................................................28

3.2 COMPARATIVE WORKFORCE DATA................................................................................................................................................................................28

3.3 EXECUTIVE OFFICER DATA ..................................................................................................................................................................................................28

SECTION 4 - OTHER DISCLOSURES ..............................................................................................................................................................................................28

4.1 IMPLEMENTATION OF THE VICTORIAN INDUSTRY PARTICIPATION POLICY ..............................................................................28

4.2 CONSULTANCY EXPENDITURE ..........................................................................................................................................................................................28

4.2.1 DETAILS OF CONSULTANCIES (VALUED AT $10,000 OR GREATER)....................................................................................28

4.2.2 DETAILS OF CONSULTANCIES (VALUED AT LESS THAN $10,000) ........................................................................................28

4.2.3 DISCLOSURE OF MAJOR CONTRACTS ......................................................................................................................................................28

4.2.4 GOVERNMENT ADVERTISING EXPENDITURE........................................................................................................................................28

4.3 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) EXPENDITURE ..............................................................................29

4.4 FREEDOM OF INFORMATION ..............................................................................................................................................................................................29

4.5 COMPLIANCE WITH BUILDING ACT 1993 ..................................................................................................................................................................29

4.6 NATIONAL COMPETITION POLICY ..................................................................................................................................................................................29

4.7 COMPLIANCE WITH THE PROTECTED DISCLOSURE ACT 2012..............................................................................................................29

4.8 CHARTER OF HUMAN RIGHTS AND RESPONSIBILITIES ACT 2006 ....................................................................................................30

4.9 OFFICE-BASED ENVIRONMENTAL IMPACTS..........................................................................................................................................................30

4.10 STATEMENT OF AVAILABILITY OF OTHER INFORMATION ..........................................................................................................................30

4.11 RISK MANAGEMENT ATTESTATION ..............................................................................................................................................................................30

4.12 COMPLIANCE WITH DATAVIC ACCESS POLICY ..................................................................................................................................................31

4.13 PECUNIARY INTERESTS ..........................................................................................................................................................................................................31

4.14 PUBLICATIONS ................................................................................................................................................................................................................................31

4.15 EXTERNAL REVIEWS ..................................................................................................................................................................................................................31

4.16 INTERNATIONAL VISITS ............................................................................................................................................................................................................31

4.17 PUBLIC RELATIONS ....................................................................................................................................................................................................................31

4.18 INDUSTRIAL RELATIONS ........................................................................................................................................................................................................31

SECTION 5 - FINANCIAL STATEMENTS ......................................................................................................................................................................................33

DISCLOSURE INDEX ....................................................................................................................................................................................................................................69

LIST OF USED ACRONYMS/ABBREVIATIONS ........................................................................................................................................................................71

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1. YEAR IN REVIEW

1.1 VISION, MISSION, VALUESThe Authority’s 2023 vision is:

“We are the leaders in integratedcatchment management partnering withour communities to enhance EastGippsland’s iconic landscapes, culturalheritage and biodiversity.”

The vision and supporting strategicobjectives align with the VictorianGovernment’s Our Catchments OurCommunities and long-term goals of theRegional Catchment Strategy (RCS).

1.2 CHAIRPERSON’S REPORTIn accordance with the FinancialManagement Act 1994 (FMA), I ampleased to present the Annual Report ofOperations for the East GippslandCatchment Management Authority for theyear ending 30 June 2016.

We have been delighted to welcome anumber of new board members this year,which provided the opportunity to reviewour Vision and Strategy. The new Visionand Strategy link strongly with theVictorian Government’s Our CatchmentsOur Communities Strategy and will takeus through the next phase of theRegional Catchment Strategy. Our Visionemphasises our strong commitment tocommunity involvement while recognisingthe strength of our region’s landscapes,cultural heritage and bio-diversity.

Another important change for theAuthority this year has been theopportunity for our CEO to take asecondment at the Department ofEnvironment, Land, Water and Planning(DELWP) in a project role to enhance thegovernance and effectiveness of how allCMAs work together and align withgovernment priorities. The board tookthis opportunity to provide future CEOsfrom the local region with a secondmentto develop their skills with a meaningfulperiod of time in the role. We have beendelighted with the two six-month termsprovided and thank East GippslandWater and Southern Rural Water forworking in partnership with us.

Aboriginal engagement has been aparticular interest for the Authority thisyear, and we have embedded theAboriginal Participation Guideline into ourEngagement Plan. We are at theadvanced stages of finalising aMemorandum of Understanding with theGunaikurnai Land and Waters AboriginalCorporation, which will cement ourcommitment to the success of theirWhole of Country Plan. We are alsohosting the executive of the GunaikurnaiTraditional Land Owners ManagementBoard, providing facilities and support forthe executive and the board to do itsimportant planning work.

The Gippsland Lakes continues to be animportant focus for the Authority, and Ihave been very pleased to co-chair theGippsland Lakes Co-ordinatingCommittee alongside the chair of the

West Gippsland CMA. The importantwork of this ministerially appointedcommittee has ensured priority Ramsar-related projects are well funded, and isan excellent example of the benefits ofclose working relationships between theAuthority and partner agencies.

A number of important plans werefinalised this year, including the EastGippsland Regional Catchment StrategyClimate Change Adaptation andMitigation Plan, the Gippsland LakesRamsar Site Management Plan, and theGippsland Lakes Hinterland VegetationPlan. We have also started work on newplans including the Regional FloodplainManagement Strategy and the State ofthe Gippsland Lakes Report.

We also contributed to state strategicpriorities such as Water for Victoria, OurCatchments Our Communities andProtecting Victoria’s Environment –Biodiversity 2036.

Our board values the strong relationshipbetween ourselves, our partners, our staffand our community and thanks everyonewho was involved in the significantoutcomes achieved this year.

Dr Peter VeenkerChairperson

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1.3 MANNER OFESTABLISHMENT ANDRESPONSIBLE MINISTER/S

The East Gippsland CatchmentManagement Authority is establishedunder the Catchment and LandProtection Act 1994 (CaLP Act).The responsible Ministers for the 2015-16 reporting period were:

• from 1 July 2015 to 22 May 2016, the Hon Lisa Neville MP, Minister forEnvironment, Climate Change andWater; and

• from 23 May 2016 to 30 June 2016,the Hon Lisa Neville MP, Minister forWater and the Hon Lily D’AmbrosioMP, Minister for Energy, Environmentand Climate Change.

1.4 NATURE AND RANGE OF SERVICES PROVIDED

Figure 1. The East Gippsland Catchment Management Region

1.4.1 EAST GIPPSLAND REGION

The East Gippsland CatchmentManagement Region (Figure 1) covers2.2 million hectares of land, lakes, andcoastal waters out to 5.5 kilometres, inthe eastern-most part of Victoria. It isentirely south of the Great DividingRange and includes the catchments ofwaterways from the Mitchell Rivereastwards. The region covers about tenper cent of Victoria.

The region includes most of the EastGippsland Shire, the northern part of theWellington Shire, and that part of theAlpine Shire south of the Great DividingRange. It abuts the Rural City ofWangaratta and the New South WalesShires of Snowy River, Bombala, andEden Valley.

The Victorian Alps and mountains of theGreat Dividing Range extend from thewest to east across the northernboundary of the region. Foothills,lowland forests and coastal complexesto the south also extend from west toeast, while rivers generally run north tosouth through the region, dissectingthese landforms. Some catchments,such as the Mitchell, Tambo, Snowy andCann River include deep, mid-catchment, mountain basins which havebeen extensively cleared for dry landagriculture.

Major land uses and industries includeconservation, agriculture, tourism, nativeforestry, plantation forestry and fisheries.About 80% of the land in the region is inpublic ownership, mainly as StateForests or National Parks.

Most freehold land is used for farming,ranging from large commercialenterprises to small ‘rural residential’properties. Cities and towns occupy asmall proportion of land in the region.

Some of the important features of theEast Gippsland diverse landscapeinclude:

• The Gippsland Lakes, which have

significant environmental, social and

economic value and are a designated

site on the Ramsar Convention on

Wetlands of International Importance

• An array of streams, especially the

wild rivers, including the iconic

Snowy River and Victoria’s biggest

unregulated stream, the Mitchell River

• A long coastal reach with

undeveloped estuaries, ocean

beaches and spectacular headlands

• Mountains and forests, which provide

great scenery, clean air, clean water,

recreational opportunity and forestry

products

• Productive farming lands, especially in

the river valleys

• Living wealth in the form of native

plants and animals, some of which

occur only in this region

• Places of cultural significance for the

Gunaikurnai people, including 8 of the

10 parks and reserves appointed

under Native Title, which Gunaikurnai

will jointly manage with the Victorian

Government, through DELWP and

Parks Victoria.

The Mitchell, Tambo, and Snowy Rivershave substantial alluvial floodplains intheir lower reaches containing theregion’s highly productive irrigation areas,including the Lindenow, Bruthen andSnowy Flats which are used intensivelyfor horticulture, dairying and cattleproduction.

The Red Gum Plains are located in thesouth-west of the region, and extendfrom Bairnsdale to the Perry River in thewest. As the name suggests, the areawas originally covered by red gums andnative grasses, but is now usedpredominantly for dry land agriculture.The plains are noted for their dwindlingareas of high value remnant red gumwoodlands.

A complex of dunes and coastalvegetation extends along most of thecoastline, including some of the bestwetlands and estuarine systems in thestate. The region includes the area ofocean out to three nautical miles from thecoast, which contains significant marinenational park areas such as Beware Reef.

1.4.2 WHAT DOES THE AUTHORITYDO?

Responsibilities under the CaLP Act andWater Act 1989 (Water Act) aresummarised below:

Coordinating the RegionalCatchment Strategy andSupporting Plans

Responsibilities under the CaLP Actinclude providing government with thecollective strategic views of this region,which takes account of State and Federalpolicy under the framework of theRegional Catchment Strategy (RCS) andassociated action plans.

In delivering the RCS, the Authorityseeks to maximise the impact andcoordination of on-ground work bysupporting agencies, individuals andcommunity groups.

The Authority disseminates governmentpolicy and information to the communityof East Gippsland and acts as a conduitfor government investment into theregion for Natural ResourceManagement (NRM) activities andprojects.

Caretaker of River Health

The Water Act establishes the Authorityas caretaker for the rivers of EastGippsland. This means planning anddelivering on-grounds works designed tomaintain or improve the health of ourrivers. This is the only NRM on-groundworks area for which the Authority hasdirect responsibility; most worksundertaken within the riverbanks arecompleted under some form of Authoritysupervision or approval.

There are a number of statutory activitiesfor which the Authority is directlyaccountable, including licensing workson waterways and planning referrals onfloodplains. The Authority is alsoresponsible for establishing andmonitoring the Environmental WaterReserves for all our rivers. Advice andinformation is also provided on otherriver health related issues includingcomment on farm dam applications andinput to strategies and plans beingdeveloped by other agencies andstakeholders.

1.5 OBJECTIVES, FUNCTIONS,POWERS AND DUTIES

1.5.1 STRATEGIC DIRECTION

Our strategic direction is aligned with theRCS. The roles and responsibilities ofthe Authority in achieving the RCS visionand goals are set out in governinglegislation. The major functions are:

1.5.2 CATCHMENT AND LANDPROTECTION ACT 1994

Coordinating the RegionalCatchment Strategy andsupporting plans

We complete the RCS and associatedaction plans in partnership with regionalstakeholders and the community. Wealso oversee the implementation,monitoring and evaluation of actionplans.

Community Engagement

We help build government andcommunity cooperation in maintainingour natural resources.

1.5.3 WATER ACT 1989

On-ground river health works

We oversee river health works guidedby the Victorian Waterway ManagementStrategy and the East GippslandWaterway Strategy 2014 – 2022(EGWS) through our own contractors,partner agencies and organisations.

Statutory Functions

We authorise works on waterways via awaterway works permit and assessplanning referrals on floodplains.

Community Engagement

We help build government andcommunity cooperation in maintainingand improving the health of our rivers.

1.6 PERFORMANCE AGAINST(STATUTORY) OBJECTIVES

1.6.1 WATERWAY GOALS

Under the Water Act, the Authority hasa responsibility as the ‘caretaker of riverhealth’ for the implementation of theEGWS. The intent of the waterwaystrategy on-ground works priorities arecaptured in the Authority’s waterwaygoals. These do not describe all plannedworks, but instead sets targets formitigating the key threats to riversacross East Gippsland.

The EGWS applies for eight years 2014– 2022. The Authority has developedwaterway goals that summarise the keypoints in the EGWS and communicatethe priorities and direction of theAuthority’s works program.

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Waterway Goals

By 2022 we will have achieved the following waterway goals:

The Mitchell River catchment, above the Glenaladale Bridge, will have an additional50km of fencing constructed to exclude grazing stock; and will be free of willows.

The Nicholson River, from the headwaters to the Lakes, will be free of willows andexcluded from grazing stock.

The Tambo River, below Ramrod Creek, will have an additional 40km of fencingconstructed to exclude grazing stock; and the Tambo catchment above theBruthen Bridge will remain free of willows.

The estuaries of the Nicholson and Tambo, below the Princes Highway, will be freeof willows and poplars. The Mitchell estuary below Picnic Point will be stabilised;free of willows and poplars and excluded from grazing stock.

The Snowy catchment will remain free of willows and the freehold sections of theBuchan and Brodribb Rivers will be excluded from grazing stock.

All rivers in the Far East Gippsland catchment (Bemm, Cann, Thurra, Wingan andGenoa) will be free of willows and excluded from grazing stock.

Five priority wetlands fringing the Gippsland Lakes or Snowy River will be excludedfrom grazing stock.

1.6.2 WILLOW CONTROL

Willow infestations are a key threat towaterways in East Gippsland affectingriver stability, flows, water quality andthe condition of the riparian vegetation.They have a major impact on reducingbiodiversity values both in-stream andriparian.

This year the program focused onmaintaining natural areas as willow-freesystems. There are only a few remainingpatches of willows that have not beentreated across East Gippsland andthese areas will be targeted over thenext eight years. The Authoritycontinues to work with landholders tocontrol willows on priority waterwaysusing a staged approach, transforminga willow-dominated riverbank to nativevegetation.

New waterway goals including willowremoval were established in 2014. TheAuthority has made good progresstowards the goals this year.

Table 1: Progress towards the Waterway Goals 2014 – 2022 for willow treatments.

Waterway Goal Total Primary Secondary Maintenance Total length Goallength treatment treatment treatment treated achieved(km) (km) (km) (km) (km) (%)

Mitchell River catchment above

Glenaladale Bridge will be free of willows 1132 126 260 29 415 37

Nicholson River from the headwaters to

the Lakes will be free of willows 106 - - - - -

The Tambo River above the Bruthen Bridge

will remain free of willows 640 98 123 71 292 46

The Nicholson and Tambo estuaries below

the Princes Highway and the Mitchell below

Picnic Point will be free of willow and poplars 55 4 - - 4 7

The Snowy catchment will remain

free of willows 1250 7 223 406 636 51

All rivers in the Far East catchment will be

free of willows 1200 120 57 42 219 18

1.6.3 STOCK EXCLUSION FENCING

Stock exclusion fencing is required toremove the threat of stock impacting onthe condition of riparian areas and in-stream habitats. Stock exclusion is oftenfollowed up with revegetation torehabilitate riverbanks and riparianhabitat.

This year the Authority has focused onfencing the Mitchell and Dargo Rivers.This has continued to link frontages toareas already fenced and areasprotected in public land. The Authoritywill continue to work towards thewaterway goals with a focus on fencingthe priority areas identified in table 2.

Achievement towards the fencing goalshas commenced along waterways. TheAuthority is working closely with partnersto prioritise wetlands on the Snowy Riverand those fringing the Gippsland Lakes.

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Table 2: Progress towards the Waterway Goals 2014 – 2022 for fencing.

Waterway goal Goal length (km) Length fenced (km) Goal achieved (%)

The Mitchell River above Glenaladale Bridge will have an additional 50km completed 50 18 36

The Nicholson River will be excluded from grazing stock 30 2 7

The Tambo River, below Ramrod will have an additional 40km of fencing constructed 40 3 8

The Mitchell estuary below Picnic Point will be excluded from grazing stock 9 5 56

Freehold sections of the Buchan and Brodribb Rivers will be fenced 12.5 1 8

All rivers in the Far East catchment will be excluded from stock 60 5 8

Five priority wetlands fringing the Gippsland Lakes or Snowy will be excluded from stock (No.) 5 - -

1.6.4 STABILISATION

Stabilising the banks of rivers and estuaries reduces the likelihood of major erosion and bank slumping. The most commontechnique used to stabilise banks is rock beaching. This involves placing rock along the bottom of the riverbank and continuing upthe riverbank for approximately a third of the bank. This year the Authority commenced bank stabilisation works on the MitchellRiver estuary above the Bairnsdale township.

Table 3: Progress towards the Waterway Goals 2014 – 2022 for bank stabilisation.

Waterway goal Goal length (km) Length stabilised (km) Goal achieved (%)

The Mitchell estuary below Picnic Point will be stabilised; free of willows and poplars and excluded from grazing stock. 9 1 11

1.6.5 PROGRESS TOWARDS ENGAGEMENT GOALS

Each year the Authority reviews andrenews the engagement plan to helpguide activities for the following year. Theplan contains a number of goals to helpsteer progress

• Increase community awareness andsatisfaction

• Conduct effective engagementactivities

• Increase participation withstakeholders

• Manage enquiries promptly andaccurately

• Stimulate knowledge and behaviouralchange

• Identify key NRM issues to informstrategies.

The engagement activities and eventsconducted by the Authority that areachieving the engagement goals arereported in Graph 1.

The Engagement Plan incorporates theCommunity Engagement andPartnerships Framework for Victoria’sCatchment Management Authorities thatstates five key principles that underpinour approach to community engagementand the establishment and managementof our partnerships. The principles are asfollows:

1. We will embed communityengagement and build partnerships inall that we do.

2. Our people will be actively supportedto engage communities and to buildpartnerships.

3. Our community engagement andpartnership approaches will beplanned, tailored, targeted andevaluated.

4. We will provide meaningfulopportunities for our communities andpartners to contribute to strategiesand initiatives.

5. We will work transparently andrespectfully with our communities andpartners, and establish clear roles andexpectations.

The Authority recognises that achievingour waterway goals will require significantlevels of engagement to ensure thecommunity and the Authority canunderstand and decide our strategicdirection and are given a chance to getinvolved. The Authority utilises theBennett’s Hierarchy approach (Bennett,C and Rockwell, K, 1995) to measure

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how we are progressing (Figure 2). TheBennett’s Hierarchy approach assumesinputs such as investment and skillscontribute to the conduct of a widerange of activities.

The 2015/16 engagement datameasures the first four levels of thehierarchy and reflects our focus andeffort in this area of our activities. TheAuthority places greater emphasis on thequality of our engagement activities(Graph 2), rather than the quantity(Graph 1). This year the Authority hasfocused on a lot of one-on-onelandholder engagement.

We have continued to report onlandholders views of the waterway goalsand (Graph 4) capturing the perceptionsof landholders. The perceptions oflandholders can change for a myriad ofreasons, for example, seeing thechanges and benefits the rehabilitationworks have on river health.

NRM Outcomes

Knowledge/Attitudes

Engagement Goals

Activities

Inputs

1.6.6 ACHIEVEMENT OF THEENGAGEMENT GOALS

Over the past twelve months, theAuthority has conducted over 800engagement activities involving over1,000 people.

Some of the engagement activitiesundertaken by the Authority include:

• Communicating and liaising with

government agencies

• One-on-one engagement with

landholders

• Community education and

promotional events.

The spread of activities demonstrated inthe following series of graphs representthe continued focus on broadparticipation with our stakeholders. TheAuthority has continued to gather data

that demonstrates improved landholderand community attitudes towards riverhealth through targeted engagement.

Each activity is rated poor to excellentbased on evidence of participant’ssatisfaction and the perceived success indelivering the Authority’s goals (Graph 2).The ratings are designed as a learningtool in review processes with individualstaff and functional areas. There aremore excellent ratings this year due tosmaller scale and focused engagementactivities.

1.6.7 KNOWLEDGE / ATTITUDE

The waterway goals were developedfrom the targets in the EGWS. TheAuthority has captured the views ofindividual landholders to understand theirperception of the waterway goals.

Figure 2:A Bennett’s Hierarchy framework for the Authority’s achievement of outcomes

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Graph 1: Events conducted by the Authority aimed to achieve the engagement goals in 2015/16. The type ofevents held by the Authority has included training, workshops, presentations and key community events.

Graph 2: The quality of engagement activities conducted by the Authority during 2015/16. This graph shows a significant increase in participant satisfaction rated as excellent.

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Graph 3: The number of events conducted, and the individuals engaged by the Authority from 2012/13 to2015/16. There has been little reduction in the number of events, just the number of participants at these events.A reduction in participants is primarily due the Authority having more focus on one on one conversations withlandholders and community members.

Graph 4: Landholder perceptions of the waterways within each basin for 2015/16. The landholder perceptionson the waterway goals is encouraging, with many landholders agreeing with the proposed work outlined in thegoals.

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1.7 EAST GIPPSLANDCATCHMENT CONDITIONREPORT CARD

This is the first year of the East GippslandCatchment Condition Report Card. Thereport card was developed by VictorianCatchment Management Authorities(CMAs), with the aim of providing aconsistent approach to the annualrequirement for CMAs to report on thecondition of catchments. The report cardprovides a simple format for reporting onEast Gippsland’s waterways, biodiversity,land, coasts and community.

East Gippsland contains a wealth of

significant natural assets including rivers,wetlands, and many national parks andreserves. It is one of the only places onmainland Australia where the continuity ofnatural ecosystems from the alps to thesea still exists.

The natural resources of the region areused to generate wealth in many ways.The region supports major economicdrivers such as tourism, agriculture andhorticulture.

The annual catchment conditionassessment for East Gippsland isdescribed in Table 4. The 2015-2016

financial year proved to be a successfulyear for East Gippsland. The seasonsprovided fairly consistent rainfall acrossthe catchments, with flooding acrossmajor rivers in June. Additional fundingreceived from the Victorian Governmentwas put to good use on prioritywaterways to implement the EGWS andthe Regional Riparian Action Plan (RRAP).The implementation of the RCS is wellunderway; the Authority partners withmany Government agencies andcommunity groups to deliver on-groundworks that align with the delivery of theRCS priorities.

2015-2016 Annual Catchment Condition Assessment

Table 4

1.7.1 SUMMARY

The overall condition assessment for each of the themes for 2015-16 is described below.

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1.7.2 WATERWAYS - THECONDITION OF WATERWAYS INEAST GIPPSLAND

East Gippsland’s waterways areremarkable natural assets of Victoria.The region contains the GippslandLakes and Lake Tyers, a Ramsar listedwetland system, six declared HeritageRivers and many national parks andreserves. A large proportion of EastGippsland is public land, approximately83%.

In 2015-2016, the works program forwaterways focused on implementingworks to deliver the EGWS. The worksfocussed on maintaining waterways in‘good condition’, these works primarilyinvolve woody weed control (mostlywillows) in the upper catchment of theMitchell and Tambo Rivers, the SnowyRiver and all rivers in the Far East basin.Fencing and revegetation works still play

a significant role in the works programfor waterways; this year theWonnangatta, Dargo and Mitchell riverswere targeted.

A major project commenced this yearon the Mitchell River estuary, just abovethe township of Bairnsdale. The projectinvolved bank stabilisation, willowcontrol and removal, fencing andrevegetation. The landholders along thissection of the river are excited to seethe changes over time. Estuarymanagement has included artificialopenings to Sydenham Inlet and LakeTyers. The Authority works closely withParks Victoria to undertake these works.

The Authority is continuing work withGreening Australia and West GippslandCMA to prioritise wetlands in theGippsland Lakes catchment. This workwill continue to inform the delivery of on-ground works.

Benchmark Condition StatementThe Authority undertakes monitoring ofriparian sites based on a three yearcalendar. The monitoring follows amethod developed by the VictorianGovernment called the WorksMonitoring Method. The monitoringmethod contains data to supportchannel physical form, riparianvegetation and instream health. Thereare 131 monitoring sites across theregion.

The riparian sites condition for 2015-16for East Gippsland is represented inGraph 5.

Graph 5

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The Works Monitoring Method datasupports an improvement in thecondition of riparian sites across EastGippsland. The consistent rainfall for theyear has provided a good growingseason for revegetation. The ongroundworks have continued to focus oncontrolling willows in the uppercatchments and primary treatment onthe lower river reaches has commenced.Bank stabilisation on the Mitchell estuarywill improve the condition in this reach.Planning and prioritising the wetlandssurrounding the Gippsland Lakes andSnowy estuary has commenced, thiswork will lead to targeted ongroundworks.

EvidenceThe 2015-2016 annual conditionassessment for waterways is based onthe following evidence:

• the on-ground works undertaken inriparian areas to control woodyweeds, revegetate with nativevegetation together with areassecured under binding managementagreements with private landholders.

• consolidated recovery works fornatural disasters (fires summer 2014,floods winter 2016)

• increased resilience and resistance ofriver channels, reduced damage towaterways following high flows

• the data from the Works MonitoringMethod supports an improvement incondition for most sites re-visited in2015-2016

• photo point monitoring supports animprovement in condition

• Collaborative approach to deliveringmanagement actions in alpinepeatlands and associated fens(NECMA, WGCMA, EGCMA, PV andMt Hotham Resorts)

• The development of the GippslandLakes Ramsar Site ManagementPlan.

2015-2016 Annual Waterway Condition Assessment

Table 6

1.7.3 BIODIVERSITY - THECONDITION OF NATIVE HABITATAND HEALTH OF NATIVE SPECIES

The East Gippsland regionencompasses significant biodiversityassets, in particular a large amount ofpublic forest which contain and supportmany native species. 83% of the regionis public land; the majority of which iseither state forest, national or coastalparks. In addition to the sheer extent ofnative vegetation it is the continuity ofvegetation that provides importanthabitat for a significant assemblage ofspecies. The region is unique withinmainland Australia for its continuousvegetation from Alpine regions throughto the coast. The geographical locationof East Gippsland also contributes to itsimportance as a hot spot for Victorianbiodiversity, situated at the nexus of thesouthern cool temperate and easternwarm temperate zones1. There are 89species which have more than 50% oftheir range within the East Gippsland

region and of these 37 species have100% of their range within EastGippsland2.

The Authority has supported a range ofbiodiversity protection works during2015-16 including:

• Reducing the impact of foxes and

wild dogs in public forests and parks

through the Southern Ark project

• Habitat enhancement activities on

freehold land to revegetate and

restore threatened ecological

vegetation communities

• Revegetation of rivers, wetlands and

estuaries

• Additional threat mitigation activities

such as weed, rabbit and deer

control activities

• Collaborative landscape scale

projects including the Gippsland

Plains Grassy Woodlands, Littoral

Rainforest and Alpine Peatlands and

Associated Fens.

Benchmark Condition Statement

The biodiversity condition statementuses the strategic biodiversity scoremapping generated by DELWP. Thismapping provides modelled informationprioritising the importance of locations interms of biodiversity. It takes intoaccount rarity and level of depletion ofvegetation type, rare and threatenedspecies habitats and condition of nativevegetation. The ranking is based on ascore between 0 to 1.0, with the highervalues representing a higher biodiversityscore.

The benchmark condition assessmentfor biodiversity in East Gippsland isrepresented in the following map (Figure 3).

1 NRE (1997a). Victoria’s Biodiversity: Directions in Management. Department of Natural Resources & Environment, Victoria.

2 DSEWPaC (2011) Biodiversity Summary for NRM regions : East Gippsland.

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Figure 3. Strategic biodiversity scores for East Gippsland region.

2015-2016 Annual Biodiversity Condition Assessment

Table 7

The condition of biodiversity in EastGippsland has remained stable for2015-16. The works programs aremaintaining the current state ofbiodiversity. There have been no majordisturbances to biodiversity in EastGippsland for the year.

Evidence

• Small gains due to community and

agency habitat enhancement

activities

• Small gains due to habitat

enhancement to support migratory

birds

• Small losses due to urban expansion

and other development

• No major disturbances to biodiversity

throughout the year, such as fires and

floods

• Ongoing government investment in

threat mitigation e.g. Southern Ark

(landscape scale fox control

program), Littoral Rainforest

restoration, White Box Woodlands

protection and Gippsland Plains

Grassy Woodland rehabilitation.

1.7.4 COASTS - THE CONDITION OFMARINE AND COASTALENVIRONMENTS

The East Gippsland coasts includesome of Victoria’s most picturesquelandscapes including systems of dunes,rocky headlands, cliffs, marshes andsandy beaches. The coast and itshinterland support a variety of vegetationcommunities. Most of the coastline isformed from mobile sand dunes shifting

gradually eastward. However, in the FarEast the coastline is punctuated byrocky headlands and outcrops.

The natural landscapes and seascapesand unspoilt wild beauty of the region’scoastal environment provide manyrecreational opportunities and tourism isgrowing at a modest rate.

The significance of the region’s marineenvironment has been recognised withthe establishment of representativemarine national parks including PointHicks and Cape Howe, and the marinesanctuary, Beware Reef. The EastGippsland marine environment is amixing point for the warm EastAustralian current, temperate southernwaters that wash over Bass Strait andcool waters form deep sea upwellings.

15


These upwellings are known to providenutrients to inshore ecosystems,contributing to a very productiveecosystem. The region thereforecontains a rich diversity of plant andanimal species, with about 90 – 95% ofthe marine species in the regionendemic to southern Australia.

In 2015-2016 the major work completedon East Gippsland’s coastal and marineenvironments have included:

• The completion of the coastal hazard

assessment

• The renewal of the Gippsland Coastal

Strategy

• The development and implementation

of the Coastal Invasive Plant and

Animal Strategy (including targeted

pest and weed control in priority

areas – sea spurge, bitou bush, deer

and fox control).

Benchmark Condition StatementThe coastline of East Gippsland is madeup of approximately 125,000ha ofnational parks, coastal parks and hasmarine national parks and a marinesanctuary. The map below (Figure 4)shows the extent of these natural areasacross the East Gippsland coastline.

Figure 4. Coastal Parks and Reserves

16


The overall condition of the coast in EastGippsland has remained stable. Therehave been no major disturbances alongthe coast. Plans and assessments havebeen completed over the past year;these will be considered into the futurefor implementation and development ofEast Gippsland’s coasts.

Evidence

• Development of the Gippsland Lakes

Coastal Hazard Assessment

• Development and implementation of

the Coastal Invasive Plant and Animal

Plan

• Development of the East Gippsland

Regional Catchment Strategy Climate

Change Adaptation and Mitigation

Plan

• Collaboration between partners to

successfully respond to the Northern

Pacific Sea Star incident in the

Gippsland Lakes

• Collaboration between partners to

control invasive plants and animals,

including sea spurge, bitou bush and

foxes along East Gippsland’s

coastline


the Gippsland Regional Coastal Plan

2015-20

• Over 100 different marine species

found and recorded at Beware Reef,

by Friends of Beware Reef

• Collaboration between partners at the

quarterly Coastal Liaison Committee

meetings.

1.7.5 LAND - THE MANAGEMENT OFENVIRONMENT AND LONG TERMPRODUCTIVITY

In East Gippsland, cleared agriculturallands are concentrated on theGippsland Plains, the Mitchell andTambo River valleys and the MonaroTablelands, where the original opengrassy woodland lent itself to grazing;and in the fertile river valleys where richalluvial soil has supported thedevelopment of intensive agriculture.

Soils in the eastern part of the EastGippsland region are well structured andfertile with high organic matter content.In the west of the region, soils aregenerally low in organic matter content,are lightly textured and prone to erosion.

In 2015-2016 the land health programfocused on implementing the EastGippsland TopSoils project. The projectaddresses the soil health objective of theRCS “maintenance of the productivevalues and stability of agricultural landand soils”. The project is based onaddressing 2015 soil benchmarkingfindings.


In 2014-2015, the Authority funded theestablishment of over 200 soilbenchmarking sites in partnership withAgriculture Victoria, to characterise thecondition of farming soils across EastGippsland and identify indicators of soilhealth decline. As well as establishingcurrent condition, Agriculture Victoriaundertook a historical analysis of EastGippsland soil data (from 1974), tounderstand temporal changes in soil pH(a parameter that affects soil fertility). Upto 1987, the Department of Agriculture,a predecessor of Department ofEconomic Development, Jobs, Transportand Resources (DEDJTR), provided aroutine soil testing service to farmers. A proportion of these paddocks were re-tested using the same methods aswhen first sampled.

The benchmark condition assessmentfor agricultural soils can be summarisedby the following 2015 key findings:

• Erosion (sheet, rill, gully and tunnel)

was observed on 31 sites across

East Gippsland. Areas included the

Ensay, Swifts Creek and Tambo

Crossing areas and the Glenaladale

and Lindenow areas

• Soil pH is generally acidic to strongly

acidic. There are parts of the region

that have soils that are highly limiting

for pasture growth

• Soil Potassium fertility was

inadequate for pasture growth in a

larger proportion of paddocks on the

Red Gum Plains near Bairnsdale

• Across the region, soil Phosphorous

was inadequate for pasture growth in

145 sites and needlessly high in 24

others

• Data also suggests an inadequate

supply of molybdenum (Mo) and

marginal supply for Boron in many

paddocks across the region.

The temporal condition assessment foragricultural soils can be summarised bythe following:

• Strong acidity in some soils appears

to have ameliorated (it is not known

which management practice change

this can be attributed to)

• Paddocks that were once moderately

to slightly acidic (5.9 to 6.1 pH in

water) are all more acidic.

2015-2016 Annual Coasts Condition Assessment

Table 5

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East Gippsland’s farming soils remainproductive. Soils in the Plains continueto require ongoing nutrientmanagement, due to the underlyingsandy soil type. Soils in the Far Eastremain generally more fertile and stable.Acid sulfate soils in the coastal areasremain largely undisturbed. Acidificationis a primary concern across the regionand may be inhibiting optimalgroundcover.

Evidence

The 2015-2016 annual conditionassessment for land is based on thefollowing evidence:

• The 2015 soil nutrient survey

provides baseline data for the East

Gippsland region. While the data has

identified parameters that limit

pasture growth, there is no significant

evidence soils are in ‘poor’ condition

• As found in the temporal condition

assessment, previous soil health

issues have been ameliorated in

some instances, and have declined in

others

• Soil health condition is largely

dependent on farmer management

practices, and is therefore hard to

quantify, as it changes over time.

Soils in the eastern part of the EastGippsland region are well structured andfertile with high organic matter content.In the west of the region, soils aregenerally low in organic matter content,are lightly textured and prone to erosion.The lowlands in this part of the regionare characterised by soils of uniformtexture contrast. These lowlands, whichrepresent the majority of freehold land inthe region, are mainly used for broadscale grazing of sheep and cattle, withintensive horticulture and cropping beinglimited to the more fertile soils found inriver valleys and on the Redgum Plains.

2015-2016 Annual Land Condition Assessment

Table 9

Figure 5 Source: Agriculture Victoria, Agricultural Services and Biosecurity Operations Division

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The works completed on soils this yearhas included the continuation of theTopSoils project. The TopSoils project isoverseen by the Authority, in partnershipwith the TopSoils Project Groupincluding GA, Southern FarmingSystems (SFS), the East GippslandLandcare Network (EGLN), Far EastVictoria Landcare (FEVL) and DEDJTR.This project helps implement regionalplanning and prioritisation, brokerpartnerships, and build community andindustry engagement, skills and capacityin sustainable agriculture.

1.7.6 COMMUNITY - THE BENEFITSTHAT FLOW FROM COMMUNITYPARTICIPATION

Within the East Gippsland region,natural resource management isundertaken as a partnership betweengovernment agencies and thecommunity. The size of the region, itslarge areas of remote and inaccessible

public land and its relatively smallpopulation have highlighted partnershipsas being the most effective approach.

Aboriginal people have a strong culturalassociation with the natural resourcesand landscape of the East Gippslandregion. Protecting cultural heritage andmaintaining ‘connection to Country’ arefundamental to retaining cultural links forpresent and future generations ofAboriginal people.

In 2015-16 the Authority has conducted804 engagement activities involving over1,000 people. Some of the keyengagement activities the Authority hasundertaken have included:

• The development of the Landcare

Strategic Plan to support Landcare

across the region

• The renewal and implementation of

the Authority’s Engagement Plan that

aligns with the Victorian CMA

Engagement and Partnership

Framework

• The adoption of the Victorian CMA

Aboriginal Participation Guideline and

stronger links working directly with

GLaWAC and other Traditional Owner

Groups


The Authority undertakes various typesof engagement activities with a range ofcommunity and stakeholders.Measurement of engagement activitiesincluding number of events, satisfactionratings, participation and landholderperceptions of waterway goals has beenprovided earlier in section 1.

Table 102015-2016 Annual Community Condition Assessment

In 2015/16 the community engagementundertaken by the Authority was lessthan previous years, however the type ofengagement was more individualised andtargeted this year. The Authoritycontinues to use the principles in theCommunity Engagement andPartnerships Framework for Victoria'sCMAs.

Evidence

• Adoption of the Aboriginal

Participation Guideline for Victorian

CMAs and stronger links working

directly with Gunaikurnai Land and

Waters Aboriginal Corporaton

(GLaWAC) and other Traditional

Owner Groups


the Authority’s 2015/16 Engagement

Plan

• 804 community events held /

attended by the Authority

• The Authority launched social media

(Facebook & Twitter) and revamped

the website with new features and

content.

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1.7.7 PROGRAM OUTPUTS

Table 11: East Gippsland Region Victorian Water Group Investment Framework (VWGIF, Gippsland Lakes Environment Fund(GLEF) and Victorian Landcare Grants (VLG) Outputs for 2015/16*

Output Unit of Measure Target Actual % Complete

Approvals and advice Number 342 304 89%

Assessments Number 76 76 100%

Earthworks Kilometre 3 1 33%

Engagement Event Number of participants 4162 3153 76%

Fencing Kilometre 41 31 76%

Management Agreement Number 30 23 77%

Monitoring Structure Number 3 3 100%

Partnership Number 25 26 104%

Plan Number 7 5 71%

Publication Number 43 48 112%

Revegetation Hectares 81 138 170%

Water Storage Number 14 10 71%

Weed control Hectares 1254 2037 162%

Note: Targets have increased from those published in 2015/16 Corporate Plan due to receipt of additional fund sources throughoutthe year and inclusion of VLP and GLEF Targets.

The variations of target versus actual outputs for the Victorian Water Group Investment Framework funding include:

• The target earthworks output was

over estimated, the lower section of

the Mitchell River stabilised was

deeper than first thought. More rock

was required and fewer kilometres

were achieved

• Fewer participants were engaged in

events, there was an overestimation in

the outputs for the Gippsland Lakes

funding

• There are still several fences to be

constructed from the 2015/16

funding; these outputs were not

included as the projects are not

completed

• Additional revegetation was achieved

surrounding the Gippsland Lakes,

landholders were willing to sign

agreements and fence off lake

frontage

• Additional weed control was achieved

as part of the Gippsland Lakes

projects and along the lower Mitchell

River.

Output Unit of Measure Target Actual % Complete

Assessment Number 34 16 47%

Engagement event Number 29 30 103%

Fence Kilometres 4.4 6 136%

Fire regime Number 4 1 25%

Partnership Number 5 5 100%

Pest animal control Hectares 74,815 142,782 191%

Plan Number 5 5 100%

Vegetation Hectares 44 141 320%

Weed control Hectares 911 713 78%

Note: Target increased from those published in 2015/16 Corporate Plan due to confirmation of Regional Community Grantsprojects.

Table 12: East Gippsland National Landcare Programme (NLP) Outputs for 2015/16

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The variations of target versus actual

outputs for the National Landcare

Programme funding include:

• Fewer assessments and fire regimes

were completed due to delay in

receiving funding

• Additional hectares of pest animal

control was completed, DELWP were

able to undertake baiting along the

coast and behind the coastal dunes

system, nearly doubling the target

output

• Additional hectares were revegetated

as additional outputs were included

from the community grants in

October.

1.8 PERFORMANCE AGAINST KEY PERFORMANCE INDICATORS

Performance Area Performance Indicators Targets Achievement Reporting

Business managementand governance

By 31 August annually Completed

A risk management strategy /plan approved by the Boardand being implemented

State if the strategy /The riskmanagement plan is approved bythe board and being implemented

OR

If the strategy / plan is notapproved by the Board and beingimplemented, explain thereason/s

A revised Enterprise RiskManagement Frameworkapproved by the board andis being implemented

100% of the CMA’s policiesand procedures reviewedevery three financial years

100% reviewed every three years Policies – 100%

Procedures – 90%

Full compliance with allapplicable Standing Directionsunder the FinancialManagement ComplianceFramework Checklist

Full Compliance Achieved

A regional floodplain strategyapproved by the Board

Describe the status of the strategyat the end of the last financial year

A draft strategy is underdevelopment by theAuthority working withDELWP and will align withthe Victorian FloodplainManagement Strategy

A regional waterways strategyapproved by the Minister

Describe the status of the strategyat the end of the last financial year

East Gippsland WaterwayStrategy for the periodfrom 2014 to 2022 wascompleted in 2013

Regional planning andcoordination

A regional catchment strategy(RCS) approved by theMinister

Describe the status of the RCS atthe end of the last financial year

RCS in place coveringperiod from 2013 to 2019

A stakeholder and communityengagement framework / planapproved by the Board

Describe the status of theframework / plan at the end of thelast financial year

Engagement Plan reviewedannually. Approved by theBoard in February 2016

A regional Landcare supportplan approved by the Board

Describe the status of the plan atthe end of the last financial year

The Regional LandcareSupport Plan for the periodfrom 2015 to 2019 wascompleted in April 2015

Submit annually, a Boardperformance assessmentreport according to anyguidelines issued

21


Performance Area Performance Indicators Targets Achievement Reporting

Regional delivery State if progress onimplementation was reviewed bythe Board by the end of the lastfinancial year

OR

If the progress on implementationwas not reviewed by the Board,explain the reason/s

RCS ImplementationProgress Reportspresented to the Boardevery six months

Projects / activities toimplement the RCS aredelivered and reportedaccording to associatedfunding agreements

State if the projects / activitieswere delivered and reportedaccording to associated fundingagreements

OR

If the projects / activities were notdelivered and reported accordingto the funding agreements,explain the reason/s

All required reportingpursuant to fundingagreements have been met

Progress with implementationof the RCS (and its major sub-strategies) is reviewed by theBoard annually

Projects / activities toimplement the regionalwaterways strategy and theregional floodplainmanagement strategydelivered and reportedaccording to associatedfunding agreements

State if the projects / activitieswere implemented and reportedaccording to associated fundingagreements

OR

If the projects / activities were notdelivered and reported accordingto associated funding agreements,explain the reason/s

All required reportingpursuant to fundingagreements have been met

Statutory functions underPart 10 of the Water Act

90% of statutory requirements(permits, referrals, advice andlicences) associated withwaterway and floodplainmanagement are respondedto within the prescribed period

State the percentage of responsesthat were within the prescribedperiod

OR

If the percentage of responseswithin the prescribed period wasless than 90%, explain thereason/s

AND

Identify if waterways and / orfloodplain related responses wereaffected

100%

Statutory functions underPart 11 of the Water Act

90% of statutory requirements(permits, referrals, advice andlicences) associated irrigationmanagement are respondedto within the prescribed period

State the percentage of responsesthat were within the prescribedperiod

OR

If the percentage of responseswithin the prescribed period wasless than 90%, explain thereason/s

Nil received

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1.9 KEY INITIATIVES &PROJECTS

1.9.1 THE EAST GIPPSLANDREGIONAL CATCHMENT STRATEGYCLIMATE CHANGE ADAPTATIONAND MITIGATION PLAN

The East Gippsland Regional CatchmentStrategy Climate Change Adaptationand Mitigation Plan was released. Theplan describes what farmers,communities and organisations in EastGippsland are currently doing to adaptto seasonal variability; highlights thelikely impacts from climate change andvariability across East Gippsland;identifies potential opportunities arisingfrom the projected changes; and offers arange of practical options to supportadaptation and carbon sequestration onfreehold land and associated primaryindustries. The plan also identifiessignificant opportunities forsequestration of ‘blue carbon’ in theregion’s significant aquatic ecosystems.

1.9.2 THE GIPPSLAND LAKESRAMSAR SITE MANAGEMENT PLAN

The Authority coordinated thedevelopment of the Gippsland LakesRamsar Site Management Plan onbehalf of the Victorian Government. ThePlan was approved by the Minister forEnvironment, Climate Change and Waterin October 2015. The VictorianGovernment has now forwarded thePlan to the Australian Government forapproval. When approval is granted, theAustralian Government will present thePlan to the International RamsarConvention for final approval.

The Plan provides a framework toprotect the environmental values of theGippsland Lakes and Lake Tyers overthe next eight years, in order to maintainthe ecological character of the Ramsar

site, as required under the RamsarConvention on Wetlands.

During the development of the plan, theAuthority and the West GippslandCatchment Management Authority, otheragencies, Traditional Owners and thecommunity, demonstrated theirwillingness to work together to set themanagement priorities for the Ramsarsite. This provides a strong foundationfor continuing to work together toimplement the plan and achieve realoutcomes over the next eight years.

1.9.3 THE GIPPSLAND LAKESHINTERLAND VEGETATION PLAN

The Gippsland Lakes Hinterland (GLH)Vegetation Plan was prepared by theAuthority with extensive involvementfrom representatives of stakeholdergroups including the East GippslandLandcare Network, Gippsland PlainsConservation Management Network,GA, Trust for Nature, PV, DELWP, andthe East Gippsland Shire Council.

The plan draws on an analysis of thestatus of native vegetation and thethreats to vegetation condition. It setspriorities for the management of nativevegetation across the GLH for the next10 years. Since much of the areacovered by the plan is private land, theplan recognises that its implementationcan only occur with the participation ofwilling landowners. A key focus of theplan is to protect and improve existingvegetation remnants. The plan alsoidentifies areas that are priorities forestablishment of new vegetation.

1.9.4 THE GIPPSLAND LAKESCOORDINATING COMMITTEE

The Gippsland Lakes CoordinatingCommittee (GLCC) was announced bythe then Minister for Environment,Climate Change and Water Lisa Neville.The GLCC includes five communityrepresentatives with skills in aquaticscience, waterway management andenvironmental science and conservation.It also includes five members whorepresent Victorian public sectoragencies with waterway managementresponsibilities.

The Committee makesrecommendations regarding allocation ofthe funding announced in the 2015-16Victorian Budget to improve the healthof the lakes. The allocation is guided bythe existing regional waterway strategiesfor East and West Gippsland and thenew Gippsland Lakes Ramsar SiteManagement Plan.

1.9.5 GUNAIKURNAI LAND ANDWATERS ABORIGINALCORPORATION (GLAWAC) ‘ONCOUNTRY’ TEAM

Throughout 2015/16, the GLaWAC OnCountry Team worked with multiple EastGippsland agencies and communitygroups to deliver a range ofenvironmental projects. For example, theClimate Change Adaptation andMitigation Plan projects included workson Ramsar sites and fox baiting toprotect EPBC listed species.

1.9.6 NRM COMMUNITY FUNDING

Each year the Authority receives anoversubscription of applications forcommunity funding. Over $400,000 wasprovided to community groups in2015/16 from over $700,000 inapplications.

23


1.11 CURRENT YEAR FINANCIALREVIEW

The Authority is financially sound, withadequate provisions in place to fulfil ourobligations to staff and replacement ofplant and equipment. Sufficientresources are now allocated to deliverthe Corporate Plan objectives for2016/17.

1.12 SIGNIFICANT CHANGES INFINANCIAL POSITION

There were no significant changes whichchanged our financial position during thereporting period.

1.13 SIGNIFICANT CHANGESOR FACTORS AFFECTINGPERFORMANCE

There were no significant changes orfactors which affected our performanceduring the reporting period.

1.14 CAPITAL PROJECTS

The Authority did not manage anycapital projects.

1.15 DISCLOSURE OF GRANTSAND TRANSFER PAYMENTS

The Authority has provided grants topartners in natural resourcemanagement including communitygroups and organisations in the EastGippsland region. Grants were providedin 2015/16 for the purposes ofsupporting the administration ofLandcare groups and implementing on-ground natural resource managementprojects.

1.10 FIVE YEAR FINANCIAL SUMMARY2016 2015 2014 2013 2012$000 $000 $000 $000 $000

Operating Revenue

State Government 8,869 8,616 10,871 10,396 7,437

Federal Government 1,098 2,267 2,549 2,336 2,335

Other Revenue 690 722 449 368 506

Total Operating Revenue 10,657 11,605 13,869 13,100 10,278

Operating Expenses

Governance and Corporate 1,000 1,007 915 960 954

Project Expenditure 9,879 9,178 10,766 13,655 10,112

Total Operating Expenses 10,879 10,185 11,681 14,615 11,066

Total Assets 11,373 11,254 9,923 8,120 9,360

Total Liabilities 706 639 715 1,091 723

24


East Gippsland Landcare Grants Program recipients for 2015/16 included:

Landcare Support Grants to 23 Landcare groups – each group received $500 $ 11,500

Marlo Landcare Group Old Marlo Tip Littoral Rainforest $8,300

East Gippsland Landcare Network Landcare adopting best practices for agriculture and the environment $76,360.00

Friends of Picnic Point Reducing erosion and improving public safety at Picnic Point $8,206.00

Eastwood Landcare 2015-16 revegetation project $9,975.00

BULG Mitchell River Riparian Restoration $8,970.00

Far East Victoria Landcare Improving Soil Health and Biodiversity in Far East Gippsland $18,725.00

Bruthen Landcare Group Bruthen Rail Trail rehabilitation and enhancement $4,454.00

Raymond Island Landcare Group Glenn's Garden $4,284

Deddick River Landcare Group Wongadell Poplars $9,780

Lakes Entrance Community Landcare National Tree Day Initiative $1,554

Lakes Entrance Community Landcare Sea Spurge Weeding Activity $ 1,400

Total $163,508

In addition to the above Landcare groups, the following grant amounts were paid:

Not-for-profit organisations (excluding Landcare) $895,331

Landholders $307,295

Local Government $258,167

Partner Agencies $2,052,017

Total grants paid during the 2015/16 year was $3.67 million.

1.16 SUBSEQUENT EVENTS

There were no events occurring after balance date which may significantly affect the Authority’s operations in subsequent reportingperiods.

25


SECTION 2 – GOVERNANCE &ORGANISATIONAL STRUCTURE

2.1 ORGANISATIONAL CHART

2.2 SENIOR EXECUTIVES

Executive Function

Manages the Authority day to dayoperations on behalf of the Board and isresponsible to the Board for delivery ofthe Corporate Plan.

Chief Executive Officer: GraemeDear – 1/07/2015 – 9/08/2015

Acting Chief Executive Officer: BrettMillington – 10/08/2015 – 5/02/2016

Acting Chief Executive Officer: CraigParker – 8/02/2016 – 30/06/2016

Corporate Services Unit

This unit is responsible for providingCorporate Services to the Authority.Corporate Services includes financialmanagement, risk managementincluding enterprise risk andoccupational health and safety, humanresources and payroll, informationtechnology and management, corporatecommunications, board and executiveadministrative support.

Manager: Peter Quilligan

Strategy Unit

This unit provides leadership in thenatural resource management strategyand plan development responsibilities ofthe Authority. Central to the unit isdevelopment of the RCS and all linking

strategies and plans required to beprepared by the Authority from time totime.

The unit is the focal point for provision oftechnical support to the Board, Authoritystaff and other government agencies,principally on matters relating to theRCS and is responsible for the statutoryand licensing functions referred to theAuthority under the Water Act and CaLPAct.

Manager: Rex Candy

Programs Unit

This unit coordinates theimplementation, monitoring, evaluationand reporting of the RCS and the EastGippsland Waterway Strategy (EGWS).The unit implements the Authority’sprogram of waterway works and fulfilsits responsibilities as Caretaker of RiverHealth. The unit also coordinates projectactivities with partner agencies to deliveractions in the RCS. Monitoring,evaluation and reporting is undertakenat various levels, including site specificmonitoring, progress towards targets,mid-term evaluations and final reporting.The Gippsland Lakes CoordinatingCommittee is also supported within thisunit. The Gippsland Lakes projectsdeliver actions in the Gippsland LakesRamsar Site Management Plan.

Manager: Bec Hemming

2.3 GOVERNING BOARD

Authority Board

The Board is responsible for:

• Setting the strategic goals, objectives

and performance targets of the

Authority in conjunction with

management and government

(Corporate Plan)

• Ensuring resources are available to

achieve these goals, including

approving annual budgets and long

term financial and capital

management plans

• Appointing the Chief Executive Officer

(CEO), setting CEO remuneration,

assessing CEO performance annually

and providing for CEO succession

• Reviewing the performance of the

Authority

• Identifying and monitoring major risks

as well as reviewing and ratifying

systems of risk management and

internal compliance and control

• Establishing and reviewing the Terms

of Reference of all Committees of the

Board

• Ensuring appropriate delegation of

authority.

26


2.4 AUDIT AND RISK COMMITTEE

The committee consists of the followingmembers:

Mr Ken Jones (Former IndependentMember & Convenor – 1/07/2015 –31/01/2016)

Mr John Groom (Former board member– 1/07/2016 – 30/09/2015)

Mr Arthur Allen (Former board member –1/07/2016 – 30/09/2015)

Mr Ross Ingram (Convenor)

Mr William Bulmer

Mr Ewan Waller

Dr Peter Veenker (Ex-officio member)

Mr Mathew Scott (Independent Member)- Appointed 18/02/2015 – 31/07/2017

The committee assists the Board infulfilling its governance and oversightresponsibilities. The Committee’sresponsibilities include:

• Financial performance and the

effectiveness of the financial reporting

process, including performance

against the annual budget, the annual

financial statements and all other

internal controls

• The scope of work, performance and

independence of the independent

external internal audit function

• Recommend to the Board the

engagement and dismissal of internal

auditors

• The scope of work and performance

of the External Auditor

• Review the operation and

implementation of the risk

management framework

• Review and endorsement of finance,

risk and related policies for board

approval

• The effectiveness of management

information systems and other

systems of internal control

• The Authority’s process for

monitoring compliance with

legislation, regulations, ministerial

directions and other compliance

obligations.

In performing its duties, the Committeewill maintain effective workingrelationships with the Board,management, and the internal andexternal auditors.

2.5 COMMUNICATIONS ANDENGAGEMENT COMMITTEE

The Committee consists of the followingmembers:

Ms Christine Wrench (Convenor)

Mrs Kate Young (Former board member– 1/07/2015 – 30/09/2015)

Mr Richard Robertson

Ms Glenys Watts

Dr Nicola Watts

Dr Peter Veenker (Ex-officio member)

Ms Emma Langres (Independentmember – 7/03/2016 – 31/01/2018)

Mr Ken Skews (Permanent invitee –7/03/2016 – 6/03/2017)

The committee’s responsibilities include:

• coordinate and oversee the

implementation of Board-level

communication and engagement

activities

• oversee the annual review of the

Board Engagement Plan including

performance against KPIs, and

recommend the completed plan to

the Board for endorsement

• oversee implementation of the Board

Engagement Plan

• oversee production of the Authority’s

Annual Report

• review reports on and oversee

implementation of the Authority’s

program communication and

engagement activities

• review relevant communications and

engagement policies for Board

approval.

Board Members

Member Term of Appointment Meeting Attendance

Dr Peter Veenker (Chairperson) 01-10/2013 – 30/09/2017 6 of 6

Mr Arthur Allen 01-10/2014 – 30/09/2015 1 of 1

Mr William Bulmer 01/10/2011 – 30/09/2015 1 of 1

27/10/2015 – 30/09/2019 3 of 5

Ms Jennifer Fraser 27/10/2015 – 30/09/2017 3 of 5

Mr John Groom 01/10/2011 – 30/09/2015 1 of 1

Mr Ross Ingram 14/10/2013 – 30/09/2017 4 of 6

Mr Richard Robertson 14/10/2013 – 30/09/2017 6 of 6

Mr Ken Skews 01/10/2014 – 30/09/2015 1 of 1

Mr Ewan Waller 27/10/2015 – 30/09/2017 3 of 5

Ms Glenys Watts 27/10/2015 – 30/09/2019 3 of 5

Dr Nicola Watts 27/10/2015 – 30/09/2019 4 of 5

Ms Christine Wrench 27/10/2015 – 30/09/2019 4 of 5

Mrs Kate Young 01/10/2011 – 30/09/2015 1 of 1

The following Committees report to the Board

27


2.6 PEOPLE AND REMUNERATIONCOMMITTEE

The committee consists of the followingmembers

Dr Peter Veenker (Convenor)

Ms Jennifer Fraser

Dr Nicola Watts

Mr John Groom (Former board member– 1/07/2016 – 30/09/2015)

Mr Ross Ingram (1/07/2015 –23/11/2015)

The committee’s responsibilities include:

• To ensure that the Board has a

strategic, sustainable long-term

approach to issues relating to the

people working for the Authority,

including:

- People resources, strategic policy

and planning

- Organisational culture

- Organisational structure

- Industrial relations matters

- Development and training

- Remuneration and contracting

strategies

- Succession planning for key

management positions

- Recruitment and retention.

• To review the Chief Executive Officer’s

(CEO) performance for the purpose of

annual performance review and to

recommend any annual increments in

accordance with GSERP guidelines

and current employment contract

terms

• In conjunction with the CEO, to

review and to recommend to the

Board, in line with organisational and

government policy, remuneration

levels for executive management

• Provide facilitation and oversight for

preparation of Board Performance

Reviews/Board member self-

assessments and recommend any

actions to the Board

• Provide advice to the Board in

respect of the recruitment of external

members to board sub-committees.

2.7 WORK HEALTH AND SAFETY

The safety of Authority employees andour contractors is our highest priorityand one of our core values. The WorkHealth & Safety (WHS) managementsystem underpins our policy which aimsto build a culture that provides aworking environment, resources andsupport to make safety, health andwellbeing everyone’s responsibility.

During the 2015/16 financial yearmanagement and the WHS Committeehave strived, in consultation withstakeholders, to deliver the objectives ofthe WHS Action Plan which includedrevamping the WHS Risk Register,

evaluating and improving the WHSTraining Matrix, compiling a ContractorSafety Management Manual and thedevelopment of a new set of WHSPerformance Measures for the 2016/17year.

Safety-related indicators measure theAuthority’s performance in WHS anddemonstrate a commitment to achievingbest practice with a focus on continuousimprovement, recognising that healthand safety contributes to overallorganisational and business successthrough a reduction in workplace injuriesand ill health.

2015/16 2014/15 2013/14

Incidents

Contractor time lost to injuries/accidents (days) 0 2 20.5

Contractor hazards/incident notifications 4 2 7

Staff time lost to injuries/accidents (days) 0* 5* 0*

Staff hazard/incident notifications 14* 15* 14*

Incidents reported to WorkSafe 0 1 0

WorkCover claims 1 0 0

Average cost per claim $5,620** 0 0

WHS Performance Reporting

* These statistics have been reportedper 100 full-time equivalent staffmembers. The full-time equivalent staffmembers of the Authority as at 30 June2016 was 20.8 (2015: 20). Thesestatistics therefore do not reflect theactual number of staff injuries or staffincident notifications.

** This claim related to a claim forimpairment benefits - injury date July2002.

A culture of safety awareness for all staffbegins at induction and continuesthroughout the duration of employment,via formal accredited training programs,robust project management practicesincluding project audits, contractorperformance reviews, incident andhazard reporting and promoting anongoing commitment to continuousimprovement in WHS.

Training Program Number of Participants

First Aid (including annual CPR refresher) 16

Fire Warden & Emergency Response 2

Health & Safety Representative annual refresher 1

Initial Health & Safety Representative Training 1

Snake & Spider Awareness 11

WHS training completed in the reporting period

28


3. WORKFORCE DATA

3.1 PUBLIC ADMINISTRATIONVALUES AND EMPLOYMENTPRINCIPLESThe Public Administration Act 2004 (PAAct) specifies a number of employmentand conduct principles that must beobserved by public sector organisationsand their employees.

The Authority is committed to applyingmerit and equity principles whenappointing staff. The selectionprocesses ensure that applicants areassessed and evaluated fairly andequitably on the basis of the keyselection criteria and otheraccountabilities without discrimination.

3.2 COMPARATIVEWORKFORCE DATAThe Authority’s philosophy of costcontrol and project delivery throughpartners is further demonstrated in ourworkforce data. Total staff numbers at30 June 2016 was 20.8 Full TimeEquivalent (FTE).

Employees have been correctlyclassified in workforce data collections.

The breakdown of staff for the Authorityat the end of 2015/16 compared to2014/15 is as follows:

3.3 EXECUTIVE OFFICER DATAFor reporting purposes consistent withthe PA Act, the Authority has oneexecutive officer who is employed andremunerated in accordance with GSERand government executive employmentpolicy.

4. OTHER DISCLOSURES

4.1 IMPLEMENTATION OF THEVICTORIAN INDUSTRYPARTICIPATION POLICYThe Authority had Nil (0) tenders over$1M during the reporting period.

4.2 CONSULTANCYEXPENDITURE

4.2.1 DETAILS OF CONSULTANCIES(VALUED AT $10,000 OR GREATER)

In 2015-16, there were 12 consultancieswhere the total fees payable to theconsultants were $10,000 or greater.The total expenditure incurred during2015-16 in relation to theseconsultancies is $672,648 (excl. GST).Details of individual consultancies canbe viewed at www.egcma.com.au.

4.2.2 DETAILS OF CONSULTANCIES(VALUED AT LESS THAN $10,000)

In 2015-16 there were 11 consultancieswhere the total fees payable to theconsultants was less than $10,000. Thetotal expenditure incurred during 2015-16 in relation to these consultancies is$50,221 (excl. GST).

4.2.3 DISCLOSURE OF MAJORCONTRACTS

The Authority did not award any majorcontracts (valued at $10M or more)during 2015-16.

4.2.4 GOVERNMENT ADVERTISINGEXPENDITURE

The Authority’s expenditure in the2015/16 reporting period ongovernment campaign expenditure didnot exceed $100,000.

Full Time Equivalent 2015/16 2014/15

Executive Officers 4 4

Managers 1 2

Corporate Services 4 4.4

Program Staff 10.8 8.6

Hosted Employees 1 1

TOTAL 20.8 20

Full Time Equivalent

Male 11.6 12.8

Female 9.2 7.2

TOTAL 20.8 20

Full Time Equivalent

Ongoing 13.8 18

Fixed Term 7* 2

TOTAL 20.8 20

* Fixed term employees have increased due to the reclassification of executive staffon longer fixed term contracts.

29


4.3 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) EXPENDITURE

For the 2015-16 reporting period, the Authority had a total ICT expenditure of $320,062, with the details shown below:

4.4 FREEDOM OF INFORMATION

The Freedom of Information Act 1982(FOI Act) allows the public access todocuments held by governmentagencies, which includes right of accessto documents held by the Authority. Inthe reporting period there were norequests for information.

The Freedom of Information (FOI) Officeris the Finance, Business & WHSCoordinator. A decision to releaseinformation is made by an AuthorisedOfficer. Requests for information madeunder the FOI Act should be directed to:

The FOI Officer East Gippsland Catchment ManagementAuthority PO Box 1012Bairnsdale, Vic 3875 Phone: 03 5150 3585Email: [email protected]

The current application fee of $27.90applies to all requests at the time ofpublication of this report.

4.5 COMPLIANCE WITHBUILDING ACT 1993

The Authority owns and operates threeregional depots in Bairnsdale, Orbostand Genoa.

The Authority complies with the BuildingAct 1993, the Building Regulations 2006and associated statutory requirementsand amendments. Either an OccupancyPermit or a Certificate of Final Inspectionis obtained for new facilities or forupgrades to existing facilities endorsedby a Municipal Building Surveyor or aRegistered Building SurveyorPractitioner.

The Authority did not commence orcomplete any major projects or workson buildings owned by it greater than$50,000 in 2015/16.

The Authority’s depots in Bairnsdale,Orbost and Genoa conformed tobuilding standards during 2015-16.

There have been no cases of registeredbuilding practitioners becomingderegistered following work on buildingsowned by the Authority.

4.6 NATIONAL COMPETITIONPOLICY

Competitive neutrality seeks to enablefair competition between governmentand private sector businesses. Anyadvantages or disadvantages thatgovernment businesses mayexperience, simply as a result ofgovernment ownership, should beneutralised. The Authority continues toimplement and apply this principle in itsbusiness undertakings.

Where appropriate, competitively neutralprice adjustments have been made fromJuly 1, 1997.

4.7 COMPLIANCE WITH THEPROTECTED DISCLOSURE ACT2012

The Protected Disclosure Act 2012 (PDAct) enables people to make disclosuresabout improper conduct by publicofficers and public bodies. The PD Actaims to ensure openness andaccountability by encouraging people tomake disclosures and protecting themwhen they do.

What is a protected disclosure?

A protected disclosure is a complaint ofcorrupt or improper conduct by a publicofficer or a public body.

The Authority is a public body for thepurposes of the PD Act.

What is ‘improper or corruptconduct’?

Improper or corrupt conduct involvessubstantial

• mismanagement of public resources

or

• risk to public health or safety or the

environment or

• corruption.

The conduct must be criminal in natureor a matter for which an officer could bedismissed.

How do I make a protecteddisclosure?

You can make a protected disclosureabout the Authority or its Boardmembers, officers or employees bycontacting IBAC on the contact detailsprovided below.

Please note that the Authority is not ableto receive protected disclosures.

How can I access the Authority’sprocedures for the protection ofpersons from detrimental action?

The Authority has establishedprocedures for the protection of personsfrom detrimental action in reprisal formaking a protected disclosure about theAuthority or its employees. You can

($ ’000)

Business As Usual Non-Business As Usual Non-BAU ICT expenditure Non-BAU ICT expenditure(BAU) ICT Expenditure (non-BAU) ICT expenditure

(Total = Operational expenditure • Operational expenditure • Capital expenditureand Capital Expenditure (OPEX) (Capex)

310 10 10 0

30


access the Authority’s procedures on itswebsite at:http://www.egcma.com.au/about-us/303/.

Contacts

Independent Broad-Based Anti-Corruption Commission (IBAC)Victoria

Address:Level 1, North Tower, 459 Collins Street,Melbourne Victoria 3000.

Mail:IBAC, GPO Box 24234, MelbourneVictoria 3001

Internet:www.ibac.vic.gov.au

Phone:1300 735 135

Email:see the website above for the secureemail disclosure process, which alsoprovides for anonymous disclosures.

4.8 CHARTER OF HUMANRIGHTS AND RESPONSIBILITIESACT 2006

The Authority is required to actcompatibly with the Charter of HumanRights and Responsibilities Act 2006(the Charter) and gives properconsideration to human rights whenmaking decisions. This responsibility isset out in the Charter and also the PAAct and the Code of Conduct forVictorian Public Sector Employees. TheAuthority ensures that human rights aretaken into account when makingdecisions, providing advice anddelivering services. The Authorityensures that changes made toguidelines, policies or the legalframework take human rights intoaccount. The Authority also ensuresthat its grievance processes comply withthe Charter and are consistent with thePA Act.

In the reporting period, there have beenno complaints related to the Charter.

4.9 OFFICE-BASEDENVIRONMENTAL IMPACTS

As part of the Authority’s continuedcommitment to reducing itsenvironmental impacts, the Authority’sGreen Team Committee continues tomonitor the implementation of theAuthority’s EnvironmentalResourceSmart Strategy.

During the year, the committee metperiodically to review and discuss theAuthority’s progress against originaltargets set in the strategy. The strategyhas been updated to reflect theAuthority’s progress in containingresource consumption and capturingenvironmental reporting data.

4.10 STATEMENT OFAVAILABILITY OF OTHERINFORMATION

Additional information available onrequest

In compliance with the requirements ofthe Standing Directions of the Ministerfor Finance, details in respect of theitems listed below have been retained bythe Authority and are available (in full) onrequest, subject to the provisions of theFOI Act:

a) Details of publications produced bythe Authority about itself, and howthese can be obtained

b) Details of any major external reviewscarried out on the Authority

c) Details of major research anddevelopment activities undertaken bythe Authority

d) Details of major promotional, publicrelations and marketing activitiesundertaken by the Authority todevelop community awareness ofthe entity and its services; and

e) Details of changes in prices, fees,charges, rates and levies charged.

The information is available on requestfrom:

Chief Executive OfficerEast Gippsland Catchment ManagementAuthorityPhone: 03 5152 0600Email: [email protected]

Additional information included inannual report

Details in respect of the following itemshave been included in the Authority’sannual report, on the pages indicatedbelow:

f) Assessments and measuresundertaken to improve theoccupational health and safety ofemployees (page 27)

g) A statement on industrial relationswithin the Authority (page 31)

h) A list of the Authority’s majorcommittees; the purposes of eachcommittee; and the extent to whichthe purposes have been achieved(page 25); and

i) A statement of completion ofdeclarations of pecuniary interests byrelevant officers (page 31)

Information that is not applicable

The following information is not relevantto the Authority for the reasons set outbelow:

j) A declaration of shares held bysenior officers (No shares have everbeen issued in the Authority’s name).

k) Details of overseas visits undertaken(No Board members or seniorexecutives took overseas work-related trips.)

4.11 RISK MANAGEMENTATTESTATION

I, Dr Peter Veenker, certify that the EastGippsland Catchment ManagementAuthority has complied with theMinisterial Standing Direction 4.5.5 –Risk Management Framework andProcesses. The East GippslandCatchment Management Authority’sAudit and Risk Committee has verifiedthis.

Signed:

Dr Peter VeenkerChairpersonEast Gippsland CatchmentManagement AuthorityDate: 30th August 2016

31


4.12 COMPLIANCE WITHDATAVIC ACCESS POLICY

In August 2012 the VictorianGovernment released the DataVicAccess Policy, which enables thesharing of Government data at no, orminimal, cost to users. Governmentdata from all agencies will beprogressively supplied in a machine-readable format that will minimiseaccess costs and maximise use andreuse. The Authority is progressivelyworking towards compliance with thispolicy.

4.13 PECUNIARY INTERESTS

All Board Members and Senior Officerscompleted the required declarations ofpecuniary interest. These are available toany persons who apply according tosection 18M (2) of the CaLP Act.

4.14 PUBLICATIONS

A range of publications is readilyavailable on the Authority’s web site.

4.15 EXTERNAL REVIEWS

Nil.

4.16. INTERNATIONAL VISITS

Nil.

4.17 PUBLIC RELATIONS

The Authority has continued its publicrelations activities during the year asdocumented in Section 1 of this report.

4.18 INDUSTRIAL RELATIONS

Time lost because of disputes: Nil

32


33

EGCMA F INA NC IA L S TATEMENTS 2015 – 2016

General Purpose Financial Report

Year Ended 30 June 2016

The attached financial report for the East Gippsland Catchment Management Authority has been prepared in accordance withStanding Directions 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian AccountingStandards including Interpretations and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet,Statement of Changes in Equity, Cash Flow Statement and accompanying notes, presents fairly the financial transactions duringthe year ended 30 June 2016 and financial position of the Authority as at 30 June 2016.

At the time of signing, we are not aware of any circumstances which would render any particulars included in the financialstatements to be misleading or inaccurate.

We authorise the attached financial statements for issue on 30th August 2016.

____________________________

Dr Peter VeenkerChairperson

____________________________

Graeme DearCEO and Accountable Officer

____________________________

Peter QuilliganChief Finance & Accounting Officer

34

EGCMA F INANC IA L S TATEMENTS 2015 – 2016

EAST GIPPSLAND CATCHMENT MANAGEMENT AUTHORITY

ACCOUNTABLE OFFICER'S AND CHIEF FINANCE AND ACCOUNTING OFFICER'S DECLARATION

NOTES 2016 2015$ $

Income from Operating ActivitiesGovernment contributions 4(a) 9,967,488 10,882,568

Income from Non-Operating ActivitiesInterest 4(b) 245,438 281,991

Other income 4(b) 444,115 440,735

Total Income 10,657,041 11,605,294

Expenses from Operating ActivitiesDepreciation 7 132,211 158,233

Employee benefits 5 2,396,960 2,441,633

Materials, consultants, contractors and grants paid 6 7,573,572 6,770,229

Other 776,530 814,774

Total Expenses from Operating Activities 10,879,273 10,184,869

Other Economic Flows included in Net ResultNet gain / (loss) on disposal of non-financial assets 4(c) 7,390 (13,421)

Net Result for the financial year (214,842) 1,407,004

Other Comprehensive IncomeItems that will not be classified to net result

Gain on revaluation of property, plant and equipment 266,166 -

Total Comprehensive Result for the year 51,324 1,407,004

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

35



COMPREHENSIVE OPERATING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016

NOTES 2016 2015$ $

ASSETS

Current assets

Cash and cash equivalents 9 4,556,440 1,523,360

Receivables 10 363,279 683,384

Prepayments 65,261 67,466

Other financial assets 11 5,200,000 8,000,000

Total current assets 10,184,980 10,274,210

Non-current assets

Property, plant and equipment 12 1,187,972 979,860

Total non-current assets 1,187,972 979,860

TOTAL ASSETS 11,372,952 11,254,070

LIABILITIES

Current liabilities

Payables 13, 16 190,573 170,364

Employee benefits 14 485,867 413,950

Total current liabilities 676,440 584,314

Non-current liabilities

Employee benefits 14 29,915 54,483

Total non-current liabilities 29,915 54,483

TOTAL LIABILITIES 706,355 638,797

NET ASSETS 10,666,597 10,615,273

EQUITY

Contributed capital 15 6,987,366 6,987,366

Reserves 15 842,443 576,277

Accumulated funds 15 2,836,788 3,051,630

TOTAL EQUITY 10,666,597 10,615,273

Commitments for expenditure 17

Contingent assets and contingent liabilities 19

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

36



BALANCE SHEET AS AT 30 JUNE 2016

Notes Accumulated Contributed Reserves TotalFunds Capital

$ $ $ $

Balance at 1 July 2014 1,644,626 6,987,366 576,277 9,208,269

Net result for the financial year 1,407,004 - - 1,407,004

Other comprehensive income for the year - - - -

Comprehensive result for the financial year 1,407,004 - - 1,407,004

Balance at 30 June 2015 15 3,051,630 6,987,366 576,277 10,615,273

Net result for the financial year (214,842) - - (214,842)

Other comprehensive income for the year - - 266,166 266,166

Comprehensive result for the financial year (214,842) - 266,166 51,324

Balance at 30 June 2016 15 2,836,788 6,987,366 842,443 10,666,597

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

EAST GIPPSLAND CATCHMENT MANAGEMENT AUTHORITY CASH FLOW STATEMENT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016

NOTES 2016 2015$ $

Cash Flows from Operating Activities

ReceiptsInterest received 297,094 243,159

Net goods & services tax received from the Australian Taxation Office 612,705 725,356

Other income 494,027 480,360

Receipts from Government 10,260,826 10,230,970

11,664,652 11,679,845

PaymentsPayments to suppliers and employees (11,364,804) (10,699,321)

(11,364,804) (10,699,321)

Net cash (outflow) / inflow from operating activities 22 299,848 980,524

Cash Flows from Investing ActivitiesPayments for property, plant & equipment (253,561) (140,706)

Proceeds from sale of non-current assets 186,793 77,602

Proceeds from sale of investments 2,800,000 -

Payments for investments - (2,800,000)

Net cash (outflow) / inflow from investing activities 2,733,232 (2,863,104)

Net increase / (decrease) in cash and cash equivalents held 3,033,080 (1,882,580)

Cash and cash equivalents at the beginning of the financial year 1,523,360 3,405,940

Cash and cash equivalents at the end of the financial year 9 4,556,440 1,523,360

The cash flow statement should be read in conjunction with the accompanying notes.37


EAST GIPPSLAND CATCHMENT MANAGEMENT AUTHORITYSTATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016

38


NOTE 1 SUMMARY OFSIGNIFICANT ACCOUNTINGPOLICIES

(a) Basis of accounting

(i) GeneralThis financial report includes separatefinancial statements for the EastGippsland Catchment ManagementAuthority (Authority) as an individualreporting entity. This financial report is ageneral purpose financial report thatconsists of a Comprehensive OperatingStatement, Balance Sheet, Statementof Changes in Equity, Cash FlowStatement and notes accompanyingthese statements. The general purposefinancial report complies with AustralianAccounting Standards (AASs),Interpretations and other authoritativepronouncements of the AustralianAccounting Standards Board and therequirements of the FinancialManagement Act 1994 and applicableMinisterial Directions. The Authority is anot-for-profit entity for the purpose ofpreparing the financial statements.

Where appropriate, those AASsparagraphs applicable to not- for- profitentities have been applied.

The financial statements have beenprepared on a going concern basis.The accrual basis of accounting hasbeen applied in the preparation of thisfinancial report whereby assets,liabilities, equity, income and expensesare recognised in the reporting periodto which they relate, regardless of whencash is received or paid.

The annual financial report wasauthorised for issue by the Authority'sBoard on 30th August 2016.

The principal address is:

East Gippsland CatchmentManagement Authority574 Main StreetBairnsdale Vic 3875

(ii) Accounting policiesAccounting policies are selected andapplied in a manner which ensures thatthe resulting financial informationsatisfies the concepts of relevance andreliability, thereby ensuring that the

substance of the underlyingtransactions or other events isreported.

Unless otherwise stated, all accountingpolicies applied are consistent withthose of the prior year.

(iii) Functional and presentationcurrencyItems included in this financial reportare measured using the currency of theprimary economic environment in whichthe Authority operates (‘the functionalcurrency’). The financial statements arepresented in Australian dollars, which isthe Authority’s functional andpresentation currency.

(iv) Classification between currentand non-currentIn the determination of whether anasset or liability is current or non- current, consideration is given to thetime when each asset or liability isexpected to be realised or paid. Theasset or liability is classified as current ifit is expected to be turned over withinthe next twelve months, being theAuthority's operational cycle – see 1(o)for a variation in relation to employeebenefits.

(v) RoundingUnless otherwise stated, amounts inthe report have been rounded to thenearest dollar. Figures in the financialreport may not equate due to rounding.

(vi) Historical cost conventionThese financial statements have beenprepared under the historical costconvention, as modified by therevaluation of financial assets andcertain classes of property, plant andequipment.

Property, plant and equipment ismeasured, subsequent to acquisition,at their fair value (refer to note (h)).Revaluations are made with sufficientregularity to ensure that the carryingamounts do not materially differ fromtheir fair value.

Consistent with AASB 13 Fair ValueMeasurement (“AASB 13”), theAuthority determines the policies andprocedures for recurring fair value

measurements such as plant andequipment in accordance with therequirements of AASB 13 and therelevant Financial Reporting Directions.The Authority does not hold any assetthat is within the non- recurring fairvalue measurements category.

When measuring fair value of any assetor liability, the Authority uses marketobservable data as far as possible. Fairvalues are categorised into differentlevels in a fair value hierarchy based onthe lowest level of inputs that issignificant to the fair valuemeasurement as a whole:

• Level 1 — fair value is determinedby using quoted prices (unadjusted)in active markets for identical assetsor liabilities;

• Level 2 — valuation techniques forwhich the lowest level input that issignificant to the fair valuemeasurement is determined byusing inputs are observable for theasset or liability, either directly (i.e. asprices) or indirectly (i.e. derived fromprices); and

• Level 3 — fair value is determinedby using inputs for the asset orliability that are not based onobservable market data (i.e.unobservable inputs).

For the purpose of fair valuedisclosures, the Authority hasdetermined classes of assets andliabilities on the basis of the nature,characteristics and risks of the asset orliability and the level of the fair valuehierarchy as explained above. TheValuer- General Victoria (VGV) is theAuthority’s independent valuationagency. The Authority, in conjunctionwith VGV, monitors changes in the fairvalue of each asset and liability throughrelevant data sources to determinewhether revaluation is required.

In addition, the Authority determineswhether transfers have occurredbetween levels in the hierarchy by re- assessing categorisation (based on thelowest level input that is significant tothe fair value measurement as a whole).

EAST GIPPSLAND CATCHMENT MANAGEMENT AUTHORITYNOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016

39



(vii) Accounting estimates

The preparation of financialstatements in conformity with AAS’srequires the use of certain accountingestimates that affect the application ofaccounting policies and the reportedamounts of assets, liabilities, incomeand expenses. Actual results maydiffer from these estimates. It alsorequires management to exercise itsjudgement in the process of applyingthe entity’s accounting policies.

The most significant accountingestimates undertaken in thepreparation of this financial reportrelate to:

* estimation of useful lives

* the impairment of assets

* doubtful debts

* provisions.

(viii) Financial statementpresentation

The Authority has applied the revisedAASB 101 Presentation of FinancialStatements which became effectivefor reporting periods beginning, on orafter, 1 July 2014, and AASB 1054Australian Additional Disclosureswhich became effective for reportingperiods beginning on, or after, 1 July2014.

(b) Changes in accounting policies

The Authority has reviewed andapplied all new accounting standardsand amendments applicable for thefirst time in their annual reportingperiod commencing 1 July 2015, anddetermined that there was no materialimpact on its financial statements inthe current reporting year.

(c) Revenue Recognition

(i) Fees and Charges

Revenue is recognised when theservices to which they relate havebeen provided.

(ii) Government grants and othercontributions

Government grants and contributionsare recognised as income fromtransactions on receipt or when theAuthority obtains control of the

contribution and meets certain othercriteria as outlined in AASB 1004Contributions, whichever is thesooner, and disclosed in theComprehensive Operating Statementas government grants and othercontributions. However, grants andcontributions received from theVictorian State Government, whichwere originally appropriated by theParliament as additions to net assetsor where the Minister for Finance andthe Minister for Environment, ClimateChange and Water have indicated arein the nature of owners’ contributions,are accounted for as Equity –Contributions by Owners inaccordance with FRD119A Transfersthrough Contributed Capital (refer toNOTE 1 (p)).

Grants from the government arerecognised at their fair value wherethere is a reasonable assurance thatthe grant will be received and theAuthority will comply with all attachedconditions.

(iii) Interest

Interest Income is recognised usingthe effective interest rate method inthe period in which it is earned.

(d) Expenses

(i) Depreciation and amortisationof non- current assets

All non ‐current physical assets thathave a limited useful life aredepreciated. Where assets haveseparate identifiable components thathave distinct useful lives and/orresidual values, a separatedepreciation rate is determined foreach component.

Land is not depreciated. Depreciationon other assets is calculated using thediminishing value method to allocatetheir cost or revalued amounts, net oftheir residual values, over theirestimated useful lives, commencingfrom the time the asset is held readyfor use. The assets residual valuesand useful lives are reviewed andadjusted if appropriate, at eachbalance sheet date.

Management is of the view that thisbest reflects the actual pattern ofconsumption.

Major depreciation periods used arelisted below and are consistent withthe prior year, unless otherwise stated:

2016 2015% %

Buildings 10 10

InformationTechnology 50 50

Plant, equipmentand fittings 15 15

Furniture & officeequipment 15 15

Motor vehicles 15-20 15 ‐20

(ii) Employee Benefits

These expenses include all costsrelated to employment includingwages and salaries, superannuation,fringe benefits tax, leave entitlements,redundancy payments and WorkCoverpremiums.

(iii) Superannuation

The amount charged to theComprehensive Operating Statementin respect of superannuationrepresents the contributions made ordue by the Authority to the relevantsuperannuation plans in respect to theservices of Authority staff (both pastand present). Superannuationcontributions are made to the plansbased on the relevant rules of eachplan and any relevant compulsorysuperannuation requirements that theAuthority is required to comply with.

(iv) Repairs and maintenance

Routine maintenance, repair costs andminor renewal costs are expensed asincurred. Where the repair relates tothe replacement of a component of anasset and the cost exceeds thecapitalisation threshold, the cost iscapitalised and depreciated.

(v) Other expenses

Other costs which are recognised asan expense in the reporting period inwhich they are incurred. The carryingamounts of any inventories held fordistribution are expensed whendistributed.

40


(e) Cash and cash equivalentsCash and cash deposits recognised onthe Balance Sheet comprise cash onhand and cash at bank, deposits at calland those highly liquid investments (withan original maturity of three months orless), which are held for the purpose ofmeeting short term cash commitmentsrather than for investment purposes,and readily convertible to knownamounts of cash with an insignificantrisk of changes in value.

(f) ReceivablesReceivables consist of:

• contractual receivables, such as

debtors in relation to goods and

services and accrued investment

income; and

• statutory receivables, such as

amounts owing from the Victorian

Government and Goods and Services

Tax (GST) input tax credits

recoverable.

Contractual receivables are classified asfinancial instruments and categorised asloans and receivables.

Statutory receivables, are recognisedand measured similarly to contractualreceivables (except for impairment), butare not classified as financial instrumentsbecause they do not arise from acontract.

Contractual receivables are recognisedinitially at fair value and subsequentlymeasured at amortised cost, less anallowance for impaired receivables.Trade receivables are due for settlementno more than 30 days from the date ofrecognition.

Collectability of contractual receivablesis reviewed on an ongoing basis. Debtswhich are known to be uncollectible arewritten off. A provision for doubtful debtsis established when there is objectiveevidence that the Authority will not beable to collect all amounts dueaccording to the original terms ofreceivables. The amount of the provisionis the difference between the asset’scarrying amount and the present valueof estimated future cash flows,discounted at the original effectiveinterest rate. The amounts credited tothe provision are recognised as anexpense in the ComprehensiveOperating Statement.

(g) PrepaymentsPrepayments represent payments inadvance of receipt of goods or servicesor that part of expenditure made in oneaccounting period covering a termextending beyond that period.

(h) Recognition and measurement of assetsProperty, plant and equipmentrepresents non-current physical assetscomprising land, buildings,infrastructure, plant and equipment,furniture and office equipment andmotor vehicles, used by the Authority inits operations. Items with a cost or valuein excess of $1,000 and a useful life ofmore than one year are recognised asan asset. All other assets acquired areexpensed.

(i) AcquisitionThe purchase method of accounting isused for all acquisitions of assets. Costis measured as the fair value of theassets given or liabilities incurred orassumed at the date of exchange pluscosts directly attributable to theacquisition.

Where assets are constructed by theAuthority, the cost at which they arerecorded includes an appropriate shareof fixed and variable overheads.

Assets acquired at no cost or fornominal consideration by the Authorityare recognised at fair value at the dateof acquisition.

(ii) Leasehold improvementsLeasehold improvements are measuredat cost and amortised over theunexpired period of the lease or theestimated useful life of the improvement,whichever is the shorter.

(iii) Non-current physical assets

All non-current physical assets arerecognised initially at cost andsubsequently revalued at fair value lessaccumulated depreciation andimpairment in accordance with therequirements of Financial ReportingDirection (FRD)103F Non-CurrentPhysical Assets.

The Infrastructure assets are valued atdepreciated replacement cost.

Plant, equipment and motor vehicles aremeasured at fair value. For the plant,equipment and vehicles asset class,

where the Authority is able todemonstrate that there is no evidencethat a reliable market-based fair value (orother fair value indicators) exist for theseassets, depreciated replacement costcould represent a reasonableapproximation of fair value.

Gains and losses on disposals aredetermined by comparing proceeds withcarrying amount. These are included inthe Comprehensive Operating Statement.When revalued assets are sold, it is theAuthority's policy to transfer the amountsincluded in other reserves in respect ofthose assets to accumulated funds.

(iv) Revaluations

Revaluations are conducted inaccordance with FRD 103F. Scheduledrevaluation is undertaken every five yearswith an annual assessment of fair value todetermine if it is materially different to thecarrying value. A revaluation of assets tofair value has been completed this yearas at 30 June 2016. The next revaluationis due in 2020/21. If the difference tocarrying value is greater than 10 per cent,a management revaluation is undertakenwhile a movement greater than 40 percent will normally involve an ApprovedValuer (usually the Valuer General ofVictoria) to perform a detailedassessment of the fair value. If themovement in fair value since the lastrevaluation is less than or equal to 10 percent, then no change is made to carryingamounts.

Revaluation increments are crediteddirectly to equity in the asset revaluationreserve surplus/(deficit), except that, tothe extent that an increment reverses arevaluation decrement in respect of thatclass of asset previously recognised asan expense in determining the net result,the increment is recognised as revenue indetermining the net result.

Revaluation decrements are recognisedimmediately as an expense in the netresult, except that, to the extent that acredit balance exists in the assetrevaluation reserve in respect of the sameclass of assets, they are debited to theasset revaluation reserve.

Revaluation increases and revaluationdecreases relating to individual assetswithin a class of infrastructure, property,plant and equipment are offset againstone another within that class but are notoffset in respect of assets in differentclasses.


41


Revaluation reserves are not transferredto accumulated surplus/(deficit) onderecognition of the relevant asset.

(v) Impairment of assets

Intangible assets with indefinite usefullives are tested annually as to whethertheir carrying value exceeds theirrecoverable amount.

All other assets are assessed annuallyfor indicators of impairment.

If there is an indication of impairment,the assets concerned are tested as towhether their carrying value exceedstheir recoverable amount. Where anasset’s carrying amount exceeds itsrecoverable amount, the difference iswritten-off by a charge to theComprehensive Operating Statementexcept to the extent that the write-downcan be debited to an asset revaluationreserve amount applicable to that classof asset.

The recoverable amount for most assetsis measured at the higher of depreciatedreplacement cost and fair value lesscosts to sell. It is deemed that, in theevent of the loss of an asset, the futureeconomic benefits arising from the useof the asset will be replaced unless aspecific decision to the contrary hasbeen made.

An impairment loss on a revalued assetis recognised directly against anyrevaluation reserve in respect of thesame class of asset to the extent thatthe impairment loss does not exceedthe amount in the revaluation reserve forthat same class of asset.

A reversal of an impairment loss on arevalued asset is credited directly toequity under the heading assetrevaluation reserve. However, to theextent that an impairment loss on thesame class of asset was previouslyrecognised in the ComprehensiveOperating Statement, a reversal of thatimpairment loss is also recognised in theComprehensive Operating Statement.

(i) Intangibles

Intangible assets represent identifiablenon-monetary assets without physicalsubstance. Intangible assets arerecognised at cost. Costs incurredsubsequent to initial acquisition arecapitalised when it is expected that

additional future economic benefits willflow to the Authority.

Intangible assets consist of softwareand licences. These assets areamortised over 2 years.

(i) Web site costs

Costs in relation to web sites controlledby the Authority are charged asexpenses in the period in which they areincurred unless they relate to theacquisition of an asset, in which casethey are capitalised and amortised overtheir period of expected benefits.Generally, costs in relation to feasibilitystudies during the planning phase of aweb site, and ongoing costs ofmaintenance during the operating phaseare considered to be expenses. Costsincurred in building or enhancing a website, to the extent that they representprobable future economic benefitscontrolled by the entity that can bereliably measured, are capitalised as anasset and amortised over the period ofthe expected benefits, which vary fromthree to five years.

(j) Finance leases

The Authority does not have any financeleases.

(k) Operating leases

The Authority does not have anyOperating Leases.

(l) Financial instruments /investments

(i) Recognition

Financial instruments are initiallymeasured at fair value, plus in the caseof a financial asset or financial liabilitynot at fair value through profit and loss,transaction costs that are directlyattributable to the acquisition or theissue of the financial asset or liability.Subsequent to initial recognition, thefinancial instruments are measured asfollows:

(ii) Held to maturity investments

Held to maturity investments are non- derivative financial assets with fixed ordeterminable payments and fixedmaturities that the Authority’smanagement has the positive intentionand ability to hold to maturity. If theAuthority were to sell other than aninsignificant amount of held to maturityfinancial assets, the whole categorywould be tainted and reclassified asavailable for sale. Held to maturityfinancial assets are included in non- current assets, except for those withmaturities less than 12 months from thereporting date, which are classified ascurrent assets. Any held to maturityinvestments held by the Authority arestated at amortised cost.

(m) Trade and other payables

Payables consist of:

• contractual payables, such as

accounts payable and unearned

income. Accounts payable represent

liabilities for goods and services

provided to the Authority prior to the

end of the financial year that are

unpaid, and arise when the Authority

becomes obliged to make future

payments in respect of the purchase

of those goods and services; and

• statutory payables, such as goods

and services tax and fringe benefits

tax payables.

Contractual payables are classified asfinancial instruments and categorised asfinancial liabilities at amortised cost.Statutory payables are recognised andmeasured similarly to contractualpayables, but are not classified asfinancial instruments and not included inthe category of financial liabilities atamortised cost, because they do notarise from a contract.

The contractual payables are unsecuredand are usually paid within 14 days ofrecognition.

(n) Provisions

Provisions are recognised when theAuthority has a present obligation, thefuture sacrifice of economic benefits isprobable, and the amount of theprovision can be measured reliably.


42



The amount recognised as a provision isthe best estimate of the considerationrequired to settle the present obligationat reporting date, taking into accountthe risks and uncertainties surroundingthe obligation. Where a provision ismeasured using the cash flowsestimated to settle the presentobligation, its carrying amount is thepresent value of those cash flows, usingdiscount rate that reflects the time valueof money and risks specific to theprovision.

When some or all of the economicbenefits required to settle a provision areexpected to be received from a thirdparty, the receivable is recognised as anasset if it is virtually certain that recoverywill be received and the amount of thereceivable can be measured reliably.

(o) Employee benefits

Provision is made for benefits accruingto employees in respect of wages andsalaries, annual leave and long serviceleave (LSL) for services rendered to thereporting date.

(i) Wages and salaries and annualleave

Liabilities for wages and salaries,including non monetary benefits andannual leave, are all recognised in theprovision for employee benefits as‘current liabilities’, because the Authoritydoes not have an unconditional right todefer settlements of these liabilities.

Depending on the expectation of thetiming of settlement, liabilities for wagesand salaries, and annual leave aremeasured at:

• undiscounted value if the Authority

expects to wholly settle within 12

months; or

• present value if the Authority does

not expect to wholly settle within 12

months.

(ii) Long service leave

Liability for long service leave (LSL) isrecognised in the provision for employeebenefits.

Unconditional LSL is disclosed in thenotes to the financial statements as acurrent liability, even where the Authoritydoes not expect to settle the liabilitywithin 12 months because it will nothave the unconditional right to defer thesettlement of the entitlement should anemployee take leave within 12 months.

The components of this current LSLliability are measured at:

• undiscounted value if the Authority

expects to wholly settle within 12

months; and

• present value if the Authority does

not expect to wholly settle within 12

months.

Conditional LSL is disclosed as a noncurrent liability. There is an unconditionalright to defer the settlement of theentitlement until the employee hascompleted the requisite years of service.This non current LSL liability ismeasured at present value.

Any gain or loss following revaluation ofthe present value of non current LSLliability is recognised as a transaction.

(iii) Termination benefits

Termination benefits are payable whenemployment is terminated before thenormal retirement date, or when anemployee decides to accept an offer ofbenefits in exchange for the terminationof employment. The Authorityrecognises termination benefits when itis demonstrably committed to eitherterminating the employment of currentemployees according to a detailedformal plan without possibility ofwithdrawal or providing terminationbenefits as a result of an offer made toencourage voluntary redundancy.Benefits falling due more than 12months after the end of the reportingperiod are discounted to present value.

(iv) Employee benefit on-costs

Employee benefit on- costs, includingpayroll tax, superannuation and worker'scompensation are recognised andincluded in employee benefit liabilitiesand costs when the employee benefitsto which they relate are recognised asliabilities.

(v) Performance payments

Performance payments for theAuthority’s Executive Officers are basedon a percentage of the annual salarypackage provided under the contract(s)of employment. A liability is recognisedand is measured as the aggregate ofthe amounts accrued under the terms ofthe contract to balance date. Noperformance payments were made orprovided for during the year.

(p) Contributions by Owners

Additions to net assets which have beendesignated as contributions by ownersare recognised as contributed capital.Other transfers that are in the nature ofcontributions or distributions have alsobeen designated as contributions byowners. Transfers of net assets arisingfrom administrative restructurings aretreated as distributions to orcontributions by owners.

Grants and contributions received fromthe Victorian State Government, whichwere originally appropriated by theParliament as additions to net assets orwhere the Minister for Finance and theMinister for Environment, ClimateChange and Water have indicated are inthe nature of owners’ contributions, areaccounted for as Equity – Contributionsby Owners.

(q) Taxation

The Authority is not liable for Income Tax.

(r) Commitments

Commitments for future expenditureinclude operating and capitalcommitments arising from contracts.These commitments are disclosed byway of note (refer to 17) at their nominalvalue and inclusive of the goods andservices tax (GST) payable. These futureexpenditures cease to be disclosed ascommitments once the related liabilitiesare recognised in the balance sheet.

(s) Contingent assets andcontingent liabilities

Contingent assets and contingentliabilities are not recognised in thebalance sheet, but are disclosed by wayof a note (refer to Note 19) and, ifquantifiable, are measured at nominalvalue. Contingent assets and contingentliabilities are presented inclusive of GSTpayable.

(t) Goods and services tax

Revenues, expenses and assets arerecognised net of goods and servicestax (GST), except where the amount ofGST incurred is not recoverable fromthe Australian Taxation Office (ATO). Inthese circumstances, the GST isrecognised as part of the cost ofacquisition of the asset or as part of an

item of expense.

Receivables and payables are statedinclusive of GST. The net amount ofGST recoverable from, or payable to,the ATO is included as a current assetor liability in the Balance Sheet.

Cash flows arising from operatingactivities are disclosed in the Cash FlowStatement on a gross basis – i.e.,inclusive of GST. The GST componentof cash flows arising from investing andfinancing activities which is recoverableor payable to the taxation authority isclassified as operating cash flows.

(u) Objective and funding

The Authority is responsible for thecoordinated control of natural resourcemanagement within the broader

catchments of East Gippsland. The roleof the Authority is to ensure effectiveimplementation of the RegionalCatchment Strategy. Associated withthis role the Authority carries outstrategic planning and advisesGovernment.

(v) New accounting standards andinterpretations

Certain new accounting standards andinterpretations have been published thatare not mandatory for the 30 June 2016reporting period. As at 30 June 2016,the following standards andinterpretations had been issued butwere not mandatory for financial yearending 30 June 2016. The Authority hasnot, and does not intend to, adoptthese standards early.

43



Standard / Interpretation Summary Applicable forannual reportingperiods beginning on or after

Impact on the Authority’sfinancial statements

AASB 9 Financial Instruments The key changes include the simplified requirementsfor the classification and measurement of financialassets, a new hedging accounting model and arevised impairment loss model to recogniseimpairment losses earlier, as opposed to the currentapproach that recognises impairment only whenincurred.

1 Jan 2018 The assessment has identified that thefinancial impact of available for sale (AFS)assets will now be reported through othercomprehensive income (OCI) and nolonger recycled to the profit and loss.

While the preliminary assessment has notidentified any material impact arising fromAASB 9, it will continue to be monitoredand assessed.

AASB 2010- 7Amendments to AustralianAccounting Standards arisingfrom AASB9 (December 2010)

The requirements for classifying and measuringfinancial liabilities were added to AASB 9. Theexisting requirements for the classification of financialliabilities and the ability to use the fair value optionhave been retained. However, where the fair valueoption is used for financial liabilities the change in fairvalue is accounted for as follows:

• The change in fair value attributable to changes incredit risk is presented in other comprehensiveincome (OCI); and

• Other fair value changes are presented in profit andloss. If this approach creates or enlarges anaccounting mismatch in the profit or loss, the effectof the changes in credit risk are also presented inprofit or loss.

1 July 2018 The assessment has identified that theamendments are likely to result in earlierrecognition of impairment losses and atmore regular intervals.Changes in own credit risk in respect ofliabilities designated at fair value throughprofit and loss will now be presentedwithin other comprehensive income(OCI).

44




AASB 2014- �5Amendments to AustralianAccounting Standards arisingfrom AASB 15

Amends the measurement of trade receivables andthe recognition of dividends.Trade receivables, that do not have a significantfinancing component, are to be measured at theirtransaction price, at initial recognition.Dividends are recognised in the profit and loss onlywhen:• the entity’s right to receive payment of the dividendis established;• it is probable that the economic benefits associatedwith the dividend will flow to the entity; and• the amount can be measured reliably.

1 Jan 2017,exceptamendments toAASB 9 (Dec2009) and AASB9 (Dec 2010)apply from 1Jan 2018

The assessment has indicated that therewill be no significant impact for theAuthority.

AASB 2014- �1 Amendments toAustralian Accounting Standards[Part E Financial Instruments]

Amends various AASs to reflect the AASB’s decisionto defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 as a consequence of Chapter6 Hedge Accounting, and to amend reduceddisclosure requirements.

1 Jan 2018 This amending standard will defer theapplication period of AASB 9 to the 2018-19 reporting period in accordancewith the transition requirements

AASB 2014- �7 Amendments toAustralian Accounting Standardsarising from AASB 9

Amends various AASs to incorporate theconsequential amendments arising from the issuanceof AASB 9.

1 Jan 2018 The assessment has indicated that therewill be no significant impact for theAuthority.

AASB 2015- �8 Amendments toAustralian Accounting Standards– Effective Date of AASB 15

This Standard defers the mandatory effective date ofAASB 15 from 1 January 2017 to 1 January 2018.

1 Jan 2018 This amending standard will defer theapplication period of AASB 15 to the2018- 19 reporting period in accordancewith the transition requirements.

AASB 2016- �3 Amendments toAustralian Accounting Standards– Clarifications to AASB 15

This Standard amends AASB 15 to clarify therequirements on identifying performance obligations,principal versus agent considerations and the timingof recognising revenue from granting a licence. Theamendments require:• A promise to transfer to a customer a good orservice that is ‘distinct’ to be recognised as aseparate performance obligation;• For items purchased online, the entity is a principalif it obtains control of the good or service prior totransferring to the customer; and• For licences identified as being distinct from othergoods or services in a contract, entities need todetermine whether the licence transfers to thecustomer over time (right to use) or at a point in time(right to access).

1 Jan 2018 The assessment has indicated that therewill be no significant impact for theAuthority, other than the impact identifiedin AASB 15.


45




AASB 15 Revenue from Contractswith Customers

The core principle of AASB 15 requires an entity torecognise revenue when the entity satisfies aperformance obligation by transferring a promisedgood or service to a customer.

1 Jan 2018 The changes in revenue recognitionrequirements in AASB 15 may result inchanges to the timing and amount ofrevenue recorded in the financialstatements. The Standard will also requireadditional disclosures on service revenueand contract modifications.

A potential impact will be the upfrontrecognition of revenue from licenses thatcover multiple reporting periods. Revenuethat was deferred and amortised over aperiod may now need to be recognisedimmediately as a transitional adjustmentagainst the opening returned earnings ifthere are no former performanceobligations outstanding.

AASB 16 Leases The key changes introduced by AASB 16 include therecognition of most operating leases (which arecurrently not recognised) on balance sheet.

1 Jan 2019 The assessment has indicated that asmost operating leases will come onbalance sheet, recognition of lease assetsand lease liabilities will cause net debt toincrease.

Depreciation of lease assets and intereston lease liabilities will be recognised inthe income statement with marginalimpact on the operating surplus.

The amounts of cash paid for theprincipal portion of the lease liability willbe presented within financing activitiesand the amounts paid for the interestportion will be presented within operatingactivities in the cash flow statement.

AASB 2014 4 Amendments toAustralian Accounting Standards– Clarification of AcceptableMethods of Depreciation andAmortisation [AASB 116 & AASB138]

Amends AASB 116 Property, Plant and Equipmentand AASB 138 Intangible Assets to:• establish the principle for the basis of depreciationand amortisation as being the expected pattern ofconsumption of the future economic benefits of anasset;• prohibit the use of revenue based methods tocalculate the depreciation or amortisation of anasset, tangible or intangible, because revenuegenerally reflects the pattern of economic benefitsthat are generated from operating the business,rather than the consumption through the use of theasset.

1 Jan 2016 The assessment has indicated that thereis no expected impact as the revenue- �based method is not used fordepreciation and amortisation.


46




AASB 2015- �1 Amendments toAustralian Accounting Standards– Annual Improvements toAustralian Accounting Standards2012- �2014 Cycle [AASB 1,AASB 2, AASB 3, AASB 5, AASB7, AASB 11, AASB 110, AASB119, AASB 121, AASB 133, AASB134, AASB 137 & AASB 140]

Amends the methods of disposal in AASB 5 Non- current assets held for sale and discontinuedoperations. Amends AASB 7 Financial Instruments byincluding further guidance on servicing contracts.

1 Jan 2016 The assessment has indicated that whenan asset (or disposal group) is reclassifiedfrom ‘held to sale’ to ‘held fordistribution’, or vice versa, the asset doesnot have to be reinstated in the financialstatements.

The Authority will be required to discloseall types of continuing involvement theAuthority still has when transferring afinancial asset to a third party underconditions which allow it to derecognisethe asset.

AASB 2015 6 Amendments toAustralian Accounting Standards– Extending Related PartyDisclosures to Not- for- ProfitPublic Sector Entities[AASB 10, AASB 124 & AASB1049]

The Amendments extend the scope of AASB 124Related Party Disclosures to not- �for- �profit publicsector entities. A guidance has been included toassist the application of the Standard by not- �for- �profit public sector entities.

1 Jan 2016 The amending standard will result inextended disclosures on the Authority'skey management personnel (KMP), andthe related party transactions.

AASB 2016- �4 Amendments toAustralian Accounting Standards– Recoverable Amount of Non- �Cash- �Generating SpecialisedAssets of Not- for- Profit Entities

The standard amends AASB 136 Impairment ofAssets to remove references to using depreciatedreplacement cost (DRC) as a measure of value in usefor not- �for- �profit entities.

1 Jan 2017 The assessment has indicated that thereis minimal impact. Given the specialisednature and restrictions of public sectorassets, the existing use is presumed to bethe highest and best use (HBU), hencecurrent replacement cost under AASB 13Fair Value Measurement is the same asthe depreciated replacement cost conceptunder AASB 136.


NOTE 2 FINANCIAL RISKMANAGEMENTThe Authority's activities expose it to avariety of financial risks, but primarily risksof market risk (interest rate risk), creditrisk and liquidity risk. The Authority'soverall risk management program focuseson the unpredictability of financial marketsand seeks to minimise potential adverseeffects on the financial performance ofthe Authority. The Authority uses differentmethods to measure different types ofrisk to which it is exposed. Thesemethods include sensitivity analysis in thecase of interest rate and ageing analysisfor credit risk. The Authority does notenter into derivative financial instrumentsand does not speculate in any type offinancial instrument

The board and senior management areresponsible for monitoring and managingthe financial risks of the Authority. Theymonitor these risks through bi-monthlyboard meetings where managementreports are presented and analysed.

The main risks the Authority is exposedto through its financial instruments are asfollows:

(a) Market risk

Market risk is the risk that changes inmarket prices will affect the fair value orfuture cash flows of the Authority'sfinancial instruments. Market riskcomprises of foreign exchange risk,interest rate risk and other price risk. TheAuthority's exposure to market risk isprimarily through interest rate risk withsignificant surplus funds held in termdeposits and deposits at call. TheAuthority has no exposure to foreignexchange risk or other price risk.

(i) Interest rate risk

The Authority’s exposure to marketinterest rates relates primarily to theAuthority’s funds invested term depositsand deposits at call. The interest rate onthe Authority’s term deposits is fixed andtherefore the Authority is not exposed toany material interest rate risk.

At balance date term deposits totalled$7,000,000, with a weighted averageinterest rate of 2.32% (2015: termdeposits totalled $8,000,000, with aweighted average interest rate of 2.62%)

At balance date $2,750,640 was held indeposits at call with a weighted averageinterest rate of 1.91% (2015: 2.08%)

All trade creditors and accruals are non- interest bearing.

Interest rate sensitivity analysis

A change of 1% in interest rates wouldhave increased/(decreased) the net resultby the amounts detailed below. Theanalysis assumes that all other variablesremain constant.

(b) Credit riskCredit risk is the risk of financial loss tothe Authority as a result of a customer orcounterparty to a financial instrumentfailing to meet its contractual obligations.Credit risk arises principally from theAuthority’s receivables and financialassets available for sale.

The Authority has adopted a policy ofonly dealing with creditworthycounterparties and obtaining sufficientcollateral where appropriate, as a meansof mitigating the risk of financial loss fromdefaults. The Authority measures creditrisk on a fair value basis.

The Authority does not have anysignificant credit risk exposure to anysingle counterparty or any group ofcounterparties having similarcharacteristics other than theGovernment. The credit risk on liquidfunds is limited because thecounterparties are banks with high credit- ratings assigned by international credit- rating agencies.

Interest Rate Risk

–1% +1%

Result Equity Result Equity

$ $ $ $

2016Cash and cash equivalents 4,556,440 (45,564) (45,564) 45,564 45,564

Other financial assets 5,200,000 (52,000) (52,000) 52,000 52,000

9,756,440 (97,564) (97,564) 97,564 97,564

2015Cash and cash equivalents 1,523,360 (15,234) (15,234) 15,234 15,234

Other financial assets 8,000,000 (80,000) (80,000) 80,000 80,000

9,523,360 (95,234) (95,234) 95,234 95,234 47



In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are noteffective for the 2015/16 reporting period (as listed below). In general, these amending standards include editorial and referenceschanges that are expected to have insignificant impacts on public sector reporting.

• AASB 1057 Application of Australian Accounting Standards

• AASB 2014-1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments arising from AASB 14Regulatory Deferral Accounts only]

• AASB 2015- 2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7,AASB 101, AASB 134 & AASB 1049]

• AASB 2015-9 Amendments to Australian Accounting Standards – Scope and Application Paragraphs [AASB 8, AASB 133 &AASB 1057]

• AASB 2015- 10 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128

• AASB 2016- 2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

48



(c) Liquidity riskLiquidity risk is the risk that the Authoritywill not be able to meet its financialobligations as they fall due. The Authoritymanages its liquidity risk by maintainingadequate cash reserves and continuallymonitoring the Authority's expenditurecommitments and cash flow needs.

(d) Fair value

The fair value of financial assets and

financial liabilities has been estimated for

recognition, measurement and for

disclosure purposes.

Management consider that the carrying

amount of financial assets and financial

liabilities recorded in the financial

statements approximates their fair values.

The carrying amount of creditors and

accruals at 30 June 2016 approximates

market value.

The fair values and net fair values of

financial assets and financial liabilities

are determined as follows:

• the fair value of financial assets and

financial liabilities with standard terms

and conditions and traded on active

liquid markets are determined with

reference to quoted market prices; and

• the fair value of other financial assets

and financial liabilities are determined in

accordance with generally accepted

pricing models based on discounted

cash flow analysis.

NOTE 3 CRITICAL ACCOUNTINGESTIMATES AND JUDGEMENTS Estimates and judgements are continuallyevaluated and are based on historicalexperience and other factors, includingexpectations of future events that mayhave a financial impact on the entity andthat are believed to be reasonable underthe circumstances.

The Authority makes estimates andassumptions concerning the future. Theresulting accounting estimates will, bydefinition, seldom equal the related actualresults (refer Note 1(a) (vii)).

NOTE 4: REVENUE 2016 2015$ $

(a) Government contributionsContributions to operations:

State Government

River Health/Healthy Waterways 6,903,900 3,468,000

Gippsland Lakes Environment Fund - 2,932,040

Catchment Planning/Corporate Governance 987,205 802,331

Flood Recovery Program - 94,549

Second Generation Landcare 386,500 278,000

Water Statutory Functions 572,000 572,000

Bush Fire Recovery - 268,255

Recreational Fishing Grants 20,000 200,000

Commonwealth Government

Caring for Our Country - 1,125,843

National Landcare Program 1,080,809 1,125,842

Other Commonwealth 17,074 15,708

Total Government contributions shown as operating revenue 9,967,488 10,882,568

Total Government contributions 9,967,488 10,882,568

(b) Other revenuesInterest 245,438 281,991

Other:

Miscellaneous 444,115 440,735

Total other revenues 689,553 722,726

(c) Profit and/or loss on sale of non-current assets

Proceeds from sale of fixed assets 186,793 77,601

Less written down value (179,403) (91,022)

Net profit/(loss) on disposal of non-current assets 7,390 (13,421)

Total revenue 10,664,431 11,591,873

49



NOTE 5 EMPLOYEE BENEFITS 2016 2015$ $

Salaries & Wages 1,737,371 1,805,778

Annual Leave 146,952 144,372

Long Service Leave 48,398 36,413

Other Leave 129,844 120,748

Superannuation 194,330 193,663

Salary On Costs (excluding superannuation) 140,065 140,659

2,396,960 2,441,633

NOTE 6 EXPENSES - MATERIALS, CONSULTANTS, CONTRACTORS AND GRANTS PAID

Materials 270,872 226,099

Consultants 651,713 557,138

Contractors 2,974,669 2,625,977

Grants Paid 3,676,318 3,361,015

7,573,572 6,770,229

NOTE 7 EXPENSES - DEPRECIATION

Information technology 29,096 53,189

Plant, equipment & fittings 7,292 8,811

Furniture & office equipment 1,779 1,952

Motor vehicles 82,002 80,515

Buildings 12,042 13,766

132,211 158,233

NOTE 8 REMUNERATION OF AUDITORS

Audit fees paid or payable to the Victorian Auditor-General’s Officefor audit of the Authority’s financial report:

Audit Fees 10,500 10,250

(amounts are exclusive of GST) 10,500 10,250

50



NOTE 9 CASH AND CASH EQUIVALENT ASSETS 2016 2015$ $

Cash and cash equivalent assets

Cash on hand 800 800

Cash at bank 5,000 5,000

Deposits at call 2,750,640 1,517,560

Investments

Term Deposits - Treasury Corporation of Victoria 1,800,000 -

The deposits at call are bearing floating interest rates between

1.99% and 2.95% (2015: 1.50% and 2.35%) 4,556,440 1,523,360

NOTE 10 RECEIVABLES

Current

Trade debtors 300,051 643,301

Less provision for doubtful debts (65,791) (65,791)

234,260 577,510

GST Paid 87,114 12,313

Accrued interest on term deposits 41,905 93,561

Total receivables 363,279 683,384

These amounts generally arise from the usual operating activities of the Authority.

The ageing analysis of these receivables is as follows:

Up to 6 months 363,279 683,383

Over 6 months 65,791 65,791

429,070 749,175

Movements in the provision for doubtful debts are as follows:

At 1 July (65,791 (65,791)

Provision for doubtful debts recognised during the year - -

Receivables written off during the year as uncollectable - -

Unused amount reversed - -

(65,791) (65,791)

The creation and release of the provision for doubtful debts has been included as an expense in the Comprehensive OperatingStatement. Amounts charged to the provision account are generally written off when there is no expectation of recoveringadditional cash.

The Authority has no exposure to changes in the foreign exchange rate, and the carrying amounts of the Authority’s currentreceivables are denominated in Australian dollars.

Due to the short- term nature of the current receivables, their carrying value is assumed to approximate their fair value. TheAuthority does not hold any collateral as security. Refer to Note 2 for more information of the risk management policy of theAuthority.

51



NOTE 11 OTHER FINANCIAL ASSETS 2016 2015$ $

Term deposits with terms greater than 3 months

Term Deposits - Treasury Corporation of Victoria 3,200,000 6,000,000

Term Deposits - National Australia Bank 2,000,000 2,000,000

5,200,000 8,000,000

NOTE 12 PROPERTY PLANT & EQUIPMENT

(a) Classes of property, plant and equipment

Land

At fair value 575,000 358,000

575,000 358,000

BuildingsAt fair value 160,000 130,367

Accumulated depreciation - (13,766)

160,000 116,601

Information technologyAt fair value 53,446 106,635

Accumulated depreciation (29,096) (53,189)

24,350 53,446

Plant, equipment and fittingsAt fair value 51,547 56,134


44,255 47,323

Furniture and office equipmentAt fair value 13,927 13,959


12,148 12,007

Motor vehiclesAt fair value 454,221 472,998

Accumulated depreciation (82,002) (80,515))

372,219 392,483

Total property, plant and equipment 1,187,972 979,860

Basis of valuation

Land and Buildings were independently valued as at 30 June 2016 by the Valuer-General Victoria. The basis of valuation is fairvalue as defined under the Australian Accounting Standard AASB116 Property, Plant and Equipment and FRD103F with emphasison the depreciated replacement cost approach and direct comparison.

52



(b) Movements during the reporting periods

Land Buildings Information Plant, Furniture Motor TotalTechnology Equipment and Office Vehicles

and Fittings Equipment

$ $ $ $ $ $ $

Carrying Amount

Balance as at

1 July 2014 358,000 144,849 104,520 66,653 10,759 403,627 1,088,408

Additions - - 2,115 - 3,200 135,391 140,706

Disposals - (14,482) - (10,519) - (66,020) (91,021)

Revaluations - - - - - - -

Depreciation - (13,766) (53,189) (8,811) (1,952) (80,515) (158,233)

Balance as at

30 June 2015 358,000 116,601 53,446 47,323 12,007 392,483 979,860

Additions - 6,276 - 4,514 1,920 240,851 253,561

Disposals - - - (290) - (179,113) (179,403)

Revaluations 217,000 49,166 - - - - 266,166

Depreciation - (12,042) (29,096) (7,292) (1,779) (82,002) (132,211)

Balance as at30 June 2016 575,000 160,000 24,350 44,255 12,148 372,219 1,187,972

Refer Note 1 for the accounting policy relating to disclosure of the fair value measurement hierarchy.The Authority has no assets or liabilities measured at fair value on a non- recurring basis in the current reporting period.The fair value measurement hierarchy for assets as at 30 June 2016 is presented below. Please note this does not reconcile to thetables presented above as this only includes those assets measured at fair value.

53


(c) Fair value measurement hierarchy for assets as at 30 June 2016.

Carrying amount Fair Value measurement at end ofas at reporting period using:

30 Jun 16Level 1(i) Level 2 (i) Level 3 (i)

Land at Fair Value

Non-specialised land - - - -

Specialised land 575,000 575,000 -

Total Land at Fair Value 575,000 - 575,000 -

Buildings at Fair Value

Specialised buildings - - - -

Non-specialised buildings 160,000 - 160,000 -

Total Buildings at Fair Value 160,000 - 160,000 -

Plant, equipment and fittings at Fair Value

Plant, equipment and fittings 44,255 - - 44,255

Total Plant, equipment and fittings at Fair Value 44,255 - - 44,255

Information technology, furniture and office equipment at Fair Value

Information technology, furniture and

office equipment 36,498 36,498

Total information technology, furniture and office equipment at Fair Value 36,498 - - 36,498

Motor vehicles at Fair Value

Motor vehicles (ii) 372,219 - - 372,219

Total Motor Vehicles at Fair Value 372,219 - - 372,219

Note:

(i) Refer Note 1(a)(vi) for the accounting policy relating to disclosure of the fair value measurement hierarchy.

(ii) Vehicles are categorised to Level 3 assets if the depreciated replacement cost is used in estimating the fair value. There havebeen no transfers between levels during the year.

Specialised Land

The market approach is also used for specialised land, although is adjusted for the community service obligation (CSO) to reflectthe specialised nature of the land being valued.

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extentthat is also equally applicable to market participants. This approach is in light of the highest and best use consideration required forfair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and financiallyfeasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3assets.

Non-Specialised Buildings

Non specialised buildings are valued also using the market approach. Under this valuation method, the assets are compared torecent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value.

To the extent that non specialised land and buildings do not contain significant, unobservable adjustments, these assets areclassified as Level 2 under the market approach.


54


Plant and equipment

Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other than aspart of a going concern, fair value is determined using the depreciated replacement cost method.

There were no changes in valuation techniques throughout the period to 30 June 2016.

Vehicles

Vehicles are valued using the depreciated replacement cost method. The Authority acquires new vehicles and at times disposes ofthem before the end of their economic life. The process of acquisition, use and disposal in the market is managed by experiencedfleet managers in the Authority who set relevant depreciation rates during use to reflect the utilisation of the vehicles.

For all assets measured at fair value, the current use is considered the highest and best use.

Reconciliation of Level 3 Fair Value


2016 Specialised Plant, equipment Information VehiclesLand and fittings technology,

furniture andoffice equipment

$ $ $ $

Opening Balance 358,000 47,323 65,453 392,483

Purchases (sales) - 4,514 1,920 240,851

Transfers in (out) of Level 3 (358,000) (290) - (179,113)

Gains or losses recognised in net result - - - -

Depreciation - (7,292) (30,875) (82,002)

Subtotal (358,000) (3,068) (28,955) (20,264)

Revaluation - - - -

Subtotal - - - -

Closing Balance - 44,255 36,498 372,219

Unrealised gains/(losses) on non-financial assets - - - -

2015 Specialised Plant, equipment Information VehiclesLand and fittings technology,

furniture andoffice equipment

$ $ $ $

Opening Balance 358,000 66,653 115,279 403,627

Purchases (sales) - 5,315 135,391

Transfers in (out) of Level 3 - (10,519) - (66,020)

Gains or losses recognised in net result - - - -

Depreciation (8,811) (55,141) (80,515)

Subtotal - (19,331) (49,826) (11,144)

Revaluation - - - -

Subtotal - - - -

Closing Balance 358,000 47,323 65,453 392,483

Unrealised gains/(losses) on non-financial assets - - - -

55



Description of significant unobservable inputs to Level 3 valuations

2016 Valuationtechnique

Significantunobservableinputs

Sensitivity of fair value measurement to changes insignificant unobservable inputs

Specialised land Marketapproach

Community ServiceObligation (CSO)adjustment

A significant increase or decrease in the CSO adjustmentwould result in a significantly lower (higher) fair value.

Information technology,furniture and officeequipment

Depreciatedreplacementcost

Cost per unit

Useful life ofinformationtechnology, furnitureand office equipment

A significant increase or decrease in cost per unit wouldresult in a significantly higher or lower fair value.

A significant increase or decrease in the estimated usefullife of the asset would result in a significantly higher orlower valuation.

Vehicles Depreciatedreplacementcost

Cost per unit

Useful life of vehicles



Plant, equipment andfittings


Cost per unit

Useful life of plantand equipment



56



Description of significant unobservable inputs to Level 3 valuations

2015 Valuationtechnique

Significantunobservableinputs

Sensitivity of fair value measurement to changes insignificant unobservable inputs

Specialised land Marketapproach

Community ServiceObligation (CSO)adjustment

A significant increase or decrease in the CSO adjustmentwould result in a significantly lower (higher) fair value.

Information technology,furniture and officeequipment


Cost per unit

Useful life ofinformationtechnology, furnitureand office equipment



Vehicles Depreciatedreplacementcost

Cost per unit

Useful life of vehicles



Plant, equipment andfittings


Cost per unit

Useful life of plantand equipment



57



NOTE 13 PAYABLES 2016 2015$ $

Current payables

Trade payables 131,025 141,458

Other 59,548 28,906

Total payables 190,573 170,364

The carrying amounts of the Authority’s trade and other payables are denominated in Australian Dollars.

Due to the short-term nature of the current payables, their carrying value is assumed to approximate their fair value.

NOTE 14 EMPLOYEE BENEFITS

Current

Annual leave and unconditional long service leave entitlements, representing 7 years of continuous service, measured at Nominal Value

Annual leaveUnconditional and expected to settle within 12 months 77,555 75,373

Unconditional and expected to settle after 12 months - measured at present value 50,836 25,112

Long service leave

Unconditional and expected to settle within 12 months 45,537 40,099Unconditional and expected to settle after 12 months 248,246 218,724

Other - Time in Lieu

Unconditional and expected to settle within 12 months 748 1,177

Provisions for on-costsUnconditional and expected to settle within 12 months 18,352 17,182

Unconditional and expected to settle after 12 months 44,593 36,283

Total Current 485,867 413,950

Non-Current

Conditional long service leave entitlements, measured at Present Value

Long service leave 26,040 47,426

On-costs 3,875 7,057

Total Non-Current 29,915 54,483

Aggregate carrying amount

Current 485,867 413,950

Non-Current 29,915 54,483

Total Employee Benefits 515,782 468,433

Full Time Equivalent Employee numbers at end of financial year: 20.80 19.80

The following assumptions were adopted in measuring the present value of

long service leave entitlements:

Weighted average increase in employee costs 4.13% 4.44%

Weighted average discount rates 1.59% 3.03%

Weighted average settlement period 7 years 7 years

58



NOTE 15 CONTRIBUTED CAPITAL, RESERVES AND ACCUMULATED FUNDS 2016 2015$ $

(a) Contributed capital

Balance at beginning of year 6,987,366 6,987,366

Balance at end of year 6,987,366 6,987,366

(b) Reserves

Asset revaluation reserve

Balance at beginning of year 576,277 576,277

Transfer of increments/decrements on disposal of non-current assets - -

Net transfers (to)/from accumulated funds 266,166 -

Asset revaluation reserve 842,443 576,277

Total Reserves 842,443 576,277

(c) Accumulated funds

Balance at beginning of year 3,051,630 1,644,626

Net result for the period (214,842) 1,407,004

Transfer from Asset Revaluation Reserve - -

Transfer (to)/from Committed Funds Reserve - -

Balance at end of year 2,836,788 3,051,630

NOTE 16 FINANCIAL INSTRUMENTS

The following table sets out the Authority’s exposure to interest rate risk and the effective weighted average interest rate bymaturity periods. Exposures arise predominantly from liabilities bearing fixed interest rates.

Interest rate exposures and maturities

Weighted Weighted Non Floating Fixed Interest TotalAverage Average Interest Interest Maturing lessFloating Fixed Bearing than 1 year

Interest Rate Interest Rate2016

Financial asset

Cash and cash equivalents 2.32% 1.91% 800 2,755,640 1,800,000 4,556,440

Other financial assets 2.32% 1.91% - - 5.200,000 5,200,000

Receivables N/A N/A 276,165 - - 276,165

Financial Liabilities

Payables N/A N/A (190,573) - - (190,573)

Net financial assets/liabilities 86,392 2,755,640 7,000,000 9,842,032

2015

Financial asset

Cash and cash equivalents 2.08% 2.86% 800 1,522,560 - 1,523,360

Other financial assets 2.08% 2.86% - - 8,000,000 8,000,000

Receivables N/A N/A 671,071 - - 671,071

Financial Liabilities

Payables N/A N/A (170,364) - - (170,364)

Net financial assets/liabilities 501,507 1,522,560 8,000,000 10,024,067

59


NOTE 16: FINANCIAL INSTRUMENTS (cont.)

The fair value of financial instruments must be estimated for recognition and measurement or for disclosure purposes.

Refer to Note 1(a)(vi) for accounting policy relating to disclosure of fair value measurement hierarchy.

The following tables present the Authoritys' financial assets and financial liabilities measured and recognised at fair value at 30 Jun 2016 and 2015. It also shows the comparison between the carrying amount of the asset or liability and its fair value.

Fair value of financial instruments Carrying amount Fair Value Carrying amount Fair Valuemeasured at amortised cost as at as at as at as at

30 June 2016 30 June 2016 30 June 2015 30 June 2015$ $ $ $

AssetsCash and cash equivalents and receivables 4,832,605 4,832,605 2,206,744 2,206,744

Other financial assets 5,200,000 5,200,000 8,000,000 8,000,000

Total Assets 10,032,605 10,032,605 10,206,744 10,206,744

LiabilitiesPayables 190,573 190,573 (170,364) (170,364)

Total Liabilities 190,573 190,573 (170,364) (170,364)

The carrying amounts of receivables and payables are assumed to approximate their fair values due to their short-term nature.

NOTE 17 COMMITMENTS 2016 2015$ $

Non-Capital commitments

As at 30 June 2016 the Authority had $465,113(2015: $143,926) in non-capital expenditure commitments. All Outstanding Commitments are to be expensed in the 2015/16 Financial Year.

Within one year 261,648 81,592

Later than one year but not later than five years 203,465 62,334

Later than five years - -

465,113 143,926


60



NOTE 18 CARRY FORWARD FUNDING

Catchment Management Authorities are responsible for the facilitation and coordination of catchments in an integrated andsustainable manner. This is achieved by undertaking projects primarily funded by Victorian and Australian Government programs.The Authority receives funding for specific projects which are guided by the Regional Catchment Strategy and delivered in line withthe Authority’s Corporate Plan approved by the Minister for Environment, Climate Change and Water.

The projects funded by the State and Commonwealth Governments can be undertaken over multiple financial years and funding isreceived at various stages of the project life based on contractual agreements. At the end of the financial year there are someprojects that have not reached completion but will be completed within the contractual terms in future financial periods. At balancedate the Authority has cash and cash equivalents that will be utilised to complete these projects in future financial years.

Refer Note 9 - Cash and Cash Equivalent assets.

NOTE 19 CONTINGENT ASSETS AND LIABILITIES

Contingent Assets

As at 30 June 2016, the Authority has no contingent assets ($nil 2015).

Contingent Liabilities

As at 30 June 2016, the Authority has no contingent liabilities ($nil 2015).

NOTE 20 SUPERANNUATION

Accumulation and Defined Benefits

The Authority makes the majority of its employer superannuation contributions in respect of its employees to the Local AuthoritiesSuperannuation Fund (the Fund). This Fund has two categories of membership, accumulation and defined benefit, each of whichis funded differently. The defined benefit category provides lump sum benefits based on years of service and final average salary.In certain circumstances a defined benefit member may be eligible to purchase a lifetime pension with up to 50% of their lumpsum benefit. The accumulation category receives fixed contributions from the Authority and the Authority’s legal or constructiveobligation is limited to these contributions.

Obligations for contributions to the Fund are recognised as an expense in the Comprehensive Operating Statement when they aremade or due.

Accumulation

The Fund's accumulation category, Vision MySuper/Vision Super Saver, receives both employer and employee contributions on aprogressive basis. Employer contributions are normally based on a fixed percentage of employee earnings. For the year ended 30 June 2016, this was 9.5% (9.5% in 2014/15) as required under Superannuation Guarantee legislation. Our commitment toaccumulation plans is limited to making contributions in accordance with our minimum statutory requirements. No further liabilityaccrues to the employer as the superannuation benefits accruing to employees are represented by their share of the net assets ofthe Fund.

The Superannuation Guarantee (SG) rate will remain at 9.5% for the next 5 years, increasing to 10% from 1 July 2021, andeventually to 12% from 1 July 2025.

Defined Benefit

As provided under Paragraph 34 of AASB 119, the Authority does not use defined benefit accounting for its defined benefitobligations under the Fund's Defined Benefit category. This is because the Fund's Defined Benefit category is a multi-employersponsored plan.

As a multi- employer sponsored plan, the Fund was established as a mutual scheme to allow for the mobility of the workforcebetween the participating employers without attaching a specific liability to particular employees and their current employer.Therefore, there is no proportional split of the defined benefit liabilities, assets or costs between the participating employers as thedefined benefit obligation is a floating obligation between the participating employers and the only time that the aggregateobligation is allocated to specific employers is when a call is made. As a result, the level of participation of the Authority in theFund cannot be measured as a percentage compared with other participating employer. While there is an agreed methodology toallocate any shortfalls identified by the Fund Actuary for funding purposes, there is no agreed methodology to allocate benefitliabilities, assets and costs between the employers for the purposes of AASB 119 because of the pooled nature of the Fund’sdefined benefit category.

61



NOTE 20: SUPERANNUATION (cont.)

Funding Arrangements

The Authority makes employer contributions to the defined benefit category of the Fund at rates determined by the Trustee on theadvice of the Fund's Actuary.

As at 30 June 2015, an interim actuarial investigation was held as the Fund provides lifetime pensions in the Defined Benefitcategory. It was determined that the Vested Benefit Indexed (VBI) of the Defined Benefit category of which the Authority is acontributing employer was 105.8% (103.4% at 30 June 2014).

The Australian Prudential Regulation Authority (APRA) has introduced a prudential standard (SPS 160 - Defined Benefit Matters) todetermine the funding requirements of a defined benefit (DB) arrangement. Under this standard:

• the VBI is the measure to determine whether there is an unfunded liability; and

• any unfunded liability that arises must be paid within three years.

Under SPS 160, the VBI is to be used as the primary funding indicator. Because the VBI was above 100%, the actuarial

investigation determined the defined benefit category was in a satisfactory financial position under SPS 160. As a result, the Fund

Actuary determined that no change was necessary to the defined benefit category’s funding arrangements from prior years.

The Fund’s employer funding arrangements comprise of three components (which are detailed below) are:

1. Regular contributions - which are ongoing contributions needed to fund the balance of benefits for current members and

pensioners;

2. Funding calls – which are contributions in respect of each participating employer’s share of any funding shortfalls that arise; and

3. Retrenchment increments – which are additional contributions to cover the increase in liability arising from retrenchments.

The Authority is also required to make additional contributions to cover the contribution tax payable on the components 2 and 3referred to above.

Employees are also required to make member contributions to the Fund. As such, assets accumulate in the Fund to meetmember benefits, as defined in the Trust Deed, as they accrue.

Employer contributions - regular contributions

On the basis of the results of the 2015 interim actuarial investigation conducted by the Fund Actuary, the Authority makesemployer contributions to the Fund’s Defined Benefit category at rates determined by the Fund’s Trustee. For the year ended 30June 2016, this rate was 9.5% of members' salaries (9.5% in 2014/2015). This rate will increase in line with the SG increases.

In addition, the Authority reimburses the Fund to cover the excess of the benefits paid as a consequence of retrenchment abovethe funded resignation or retirement benefit (the funded resignation or retirement benefit is calculated as the VBI multiplied by thebenefit).

Funding calls

The Fund is required to comply with the superannuation prudential standards. Under the superannuation prudential standard SPS160, the Fund is required to target full funding of its vested benefits. There may be circumstances where:

• a fund is in an unsatisfactory financial position at an actuarial investigation (i.e. its vested benefit index (VBI) is less than 100%at the date of the actuarial investigation); or

• a fund’s VBI is below its shortfall limit at any time other than at the date of the actuarial investigations.

If either of the above occur, the fund has a shortfall for the purposes of SPS 160 and the fund is required to put a plan in place sothat the shortfall is fully funded within three years of the shortfall occurring. There may be circumstances where the AustralianPrudential Regulation Authority (APRA) may approve a period longer than three years.

The Fund monitors its VBI on a quarterly basis and the Fund has set its shortfall limit at 97%.

In the event that the Fund Actuary determines that there is a shortfall based on the above requirement, the Fund’s participatingemployers (including the Authority) are required to make an employer contribution to cover the shortfall. The methodology used toallocate the shortfall was agreed in 1997 to fairly and reasonably apportion the shortfall between the participating employers.

Using the agreed methodology, the shortfall amount is apportioned between the participating employers based on the pre-1 July 1993 and post-30 June 1993 service liabilities of the Fund’s defined benefit category, together with the employer’spayroll at 30 June 1993 and at the date the shortfall has been calculated.


The pre-1 July 1993 and post-30 June 1993 service liabilities of the Fund are based on:

• The service periods of all active members split between the active members pre-1 July 1993 and post-30 June 1993 service

period; and

• The pensioner (including fixed term pension) liabilities which are allocated to the pre-1993 period.

The pre-1 July 1993 component of the shortfall is apportioned between the participating employers based on the employer’sshare of the total participating employer payroll at 30 June 1993.

The post ‐30 June 1993 component of the shortfall is apportioned between the participating employers based on the employer’sshare of the total participating employer payroll at the date the shortfall has been calculated.

Due to the nature of the contractual obligations between the participating employers and the Fund, and that the Fund includeslifetime pensioners and their reversionary beneficiaries, it is unlikely that the Fund will be wound up. In the unlikely event that theFund is wound up and there is a surplus in the Fund, the surplus cannot be applied for the benefit of the defined benefitemployers where there are on-going defined benefit obligations. The surplus would be transferred to the fund accepting thosedefined benefit obligations (including the lifetime pension obligations) of the Fund.

In the event that a participating employer is wound- up, the defined benefit obligations of that employer will be transferred to thatemployer’s successor.

Differences between calculations

The Fund surplus or deficit (i.e. the difference between fund assets and liabilities) is calculated differently for funding purposes (i.e.calculating required contributions), for the calculation of accrued benefits as required in AAS 25 and for the values needed for theAASB 119 disclosure in the Authority's financial statements. AAS 25 requires that the present value of the defined benefit liabilitybe calculated based on benefits that have accrued in respect of membership of the plan up to the measurement date, with noallowance for future benefits that may accrue.

Retrenchment increments

During 2015-16, the Authority was not required to make payments to the Fund in respect of retrenchment increments ($nil in2014/15). The Authority’s liability to the Fund as at 30 June 2016, for retrenchment increments, accrued interest and tax is $nil($nil in 2014/15).

Latest actuarial investigation surplus amounts

The 2015 interim actuarial investigation identified the following in the Defined Benefit category of which the Authority is acontributing employer:

• A VBI surplus of $130.8 million; and

• A total service liability surplus of $239 million.

The VBI surplus means that the market value of the fund’s assets supporting the defined benefit obligations exceed the vestedbenefits that the defined benefit members would have been entitled to if they had all exited on 30 June 2015.

The total service liability surplus means that the current value of the assets in the Fund’s defined benefit category plus expectedfuture contributions exceeds the value of expected future benefits and expenses.

The Authority was notified of the 30 June 2015 VBI during August 2015.

The 2014 full actuarial investigation

The Fund’s actuarial investigation as at 30 June 2014 identified the following in the defined benefit category of which the Authorityis a contributing employer:

• A VBI surplus of $77.1 million; and

• A total service liability surplus of $236 million

62




Accrued benefits

The Fund's liability for accrued benefits was determined in the 2015 interim actuarial investigation pursuant to the requirements ofAustralian Accounting Standard Board AAS25 as follows:

2015 2014$M $M

Net Market Value of Assets 2,379.2 2,354.9

Accrued Benefits(per accounting standards) 2,083.1 2,061.9

Difference between Assets and Accrued Benefits 296.10 293.00

Vested Benefits(Minimum sum which must be paid to members when they leave the fund) 2,277.8 2,277.8

The financial assumptions used to calculate the Accrued Benefitsfor the defined benefit category of the Fund were:

Net Investment Return 7.00% p.a. 7.50% p.a.

Salary Inflation 4.25% p.a. 4.25% p.a.

Price Inflation 2.50% p.a. 2.75% p.a.

Vision Super has advised that the estimated VBI at 30 June 2016 was 102.0%. The VBI is to be used as the primary fundingindicator. Because the VBI was above 100%, the 2015 interim actuarial investigation determined the Defined Benefit category wasin a satisfactory financial position and that no change was necessary to the Defined Benefit category’s funding arrangements fromprior years.

Fund Type of Scheme Rate 2016 2015% $ $

Vision Super Defined benefits 9.50% 6,356 6,280

Vic Super New Scheme Accumulation 9.50% 36,049 46,896

Vision Super Saver Accumulation 9.50% 51,710 58,389

All Other funds Accumulation 9.50% 100,215 82,098

Total contributions to all funds 194,330 193,663

There were $13,295 contributions outstanding to the above schemes as at 30 June 2016 ($Nil 2015).No balances were repayable in respect of loans made to the Authority from any fund.

The expected contributions to be paid to the defined benefit category of Vision Super for the year ending 30 June 2017 is $11,285.

63



64


NOTE 21 RESPONSIBLE PERSONS RELATED DISCLOSURES

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, thefollowing disclosures are made regarding responsible persons for the reporting period.

The persons who were responsible persons at anytime during the financial year were:

Honourable Lisa Neville MP, Minister for Environment, 1st July 2015 22nd May 2016

Climate Change and Water

Honourable Lisa Neville MP, Minister for Water 23rd May 2016 30th June 2016

Honourable Lily D'Ambrosio MP Minister for Energy, Environment 23rd May 2016 30th June 2016

and Climate Change

Peter Veenker Chair 1st July 2015 30th June 2016

John Colin Groom Board Member & Deputy Chair 1st July 2015 30th September 2015

Graeme James Dear Chief Executive Officer 1st July 2015 30th June 2016

Ross Anthony Ingram Board Member 1st July 2015 30th June 2015

William Ernest Bulmer Board Member 1st July 2015 30th June 2016

Deputy Chair 24th February 2016 30th June 2016

Kate Louise Young Board Member 1st July 2015 30th September 2015

Richard Geoffrey Robertson Board Member 1st July 2015 30th June 2016

Arthur Allen Board Member 1st July 2015 30th September 2015

Ken Skews Board Member 1st July 2015 30th September 2015

Nicola Watts Board Member 27th October 2015 30th June 2016

Ewan Waller Board Member 27th October 2015 30th June 2016

Jennifer Fraser Board Member 27th October 2015 30th June 2016

Christine Wrench Board Member 27th October 2015 30th June 2016

Glenys Watts Board Member 27th October 2015 30th June 2016

Remuneration of responsible persons

Remuneration paid to Ministers is reported in the Annual Report of the Department of Premier and Cabinet. Other relevantinterests are declared in the Register of Members’ Interests which each member of the Parliament completes.

Remuneration received or receivable from the Authority in connection with the management of the Authority during the reportingperiod was:

Band 2016 2015

$0–$9,999 4 2

$10,000–$19,999 8 5

$20,000–$29,999 1 1

$190,000–$199,999 1 1

Total Remuneration $ 343,768 311,043

Responsible Persons - related partiesThere were no other transactions conducted with responsible persons or their related parties during the financial year ended 30 June 2016 (2014/15: Nil).


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EGCMA F INA NC IA L S TATEMENTS 2015 – 20 16

Remuneration of executive officers

The number of executive officers, other than responsible persons, whose total remuneration falls within the specified bands above$100,000 are as follows:

Total Remuneration Base Remuneration

Band 2016 2015 2016 2015

$110,000- ‐$119,999 - - 1 -

$120,000- ‐$129,999 1 - 1 2

$130,000- ‐$139,999 1 2 1 -

$140,000- ‐$149,999 1 - - -

$190,000–$199,999 - - -

Total number of Executive Officers 3 2 3 2

Total Annualised Employee Equivalent (*) 3 2 3 2

Total Remuneration $ 405,125 262,561 369,977 239,782

(*) Annualised Employee Equivalent is based on working 38 ordinary hours per week over the reporting period.

The number of executive officers, other than ministers and accountable officers, and their total remuneration during the reportingperiod are shown in the first two columns in the table above in their relevant income bands. The base remuneration of executiveofficers is shown in the third and fourth columns. Base remuneration is exclusive of superannuation guarantee contributions andbonus payments. No bonus payments were made during the 2015/16 year (2014/15 $nil).The total annualised employeeequivalent provides a measure of full time equivalent executive officers over the reporting period.

Payments to contractors with significant management responsibilities

The number of contractors charged with significant management responsibilities is disclosed within the $10,000 expense bandbelow. These contractors were responsible for planning, directly or controlling, directly or indirectly, the Authority's activities.

The change in total expenses from the 2015 to 2016 reporting period was driven by 2 Acting CEO secondments beingundertaken in the 2016 reporting period.

Band 2016 2015

$110,000-$119,999 2 0

Total expenses (exclusive of GST) 229,774 0


NOTE 22 RECONCILIATION OF NET RESULT FOR THE PERIOD TO NET CASH FLOWS FROM OPERATING ACTIVITIES 2016 2015

$ $

Net result for the period (214,842) 1,407,004

Add/(less) Non-Cash Flows in Net Result

(Profit) / loss on disposal of non-current assets (7,390) 13,421

Depreciation and amortisation 132,211 158,232

(90,021) 1,578,657

Changes in Assets and Liabilities

Decrease/(increase) in trade receivables 320,107 (532,631)

Decrease/(increase) in prepayments 2,205 10,750

(Decrease)/Increase in payables 20,208 (107,508)

(Decrease)/increase in employee benefits 47,349 31,256

Net Cash flows from Operating Activities 299,848 980,524

NOTE 23 SUBSEQUENT EVENTS

No matters or circumstances have arisen since the end of the reporting period which significantly affected or may significantlyaffect the operations of the Authority, the results of those operations, or the state of affairs of the Authority in future financial years.

NOTE 24 CORRECTION OF ERROR

During the 2015 financial year, the Authority incorrectly classified term deposits as Cash and cash equivalents rather than as Otherfinancial assets. The term deposits were for a total of $8,000,000 and their term of investment was for greater than three months.This error had the effect of understating Other Financial Assets by $8,000,000 and overstating Cash and Cash Equivalents by thesame amount.

The error has been corrected by restating each of the affected financial statement line items for the year in which the erroroccurred.

Balance sheet extract

Current assets 2015 Correction 2015 Restated

$ $ $

Cash and cash equivalents 9,523,360 (8,000,000) 1,523,360

Other financial assets - 8,000,000 8,000,000

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APPENDIX 1

DISCLOSURE INDEX

The Annual Report of the East Gippsland Catchment Management Authority is prepared in accordance with all relevant Victorianlegislation. This index has been prepared to facilitate identification of the Authority’s compliance with statutory disclosurerequirements.

LEGISLATION REQUIREMENT PAGE REFERENCE

Ministerial Directions

Report of operations – FRD guidance

Charter and purpose

FRD 22F Manner of establishment and the relevant Ministers 4

FRD 22F Objectives, functions, powers and duties 5

FRD 22F Performance against (statutory) objectives, functions, powers, duties 5

FRD 22F Initiatives and key achievements 22

FRD 22F Nature and range of services provided 4-5

Management and structure

FRD 22F Organisational structure 25

Financial and other information

FRD 8C, SD 4.2(k) Performance against output performance measures n/a

FRD 8C Budget portfolio outcomes n/a

FRD 10 Disclosure index 69

FRD 12A Disclosure of major contracts 28

FRD 15B Executive officer disclosures 28

FRD 22F Employment and conduct principles 28

FRD 22F Occupational health and safety policy 27

FRD 22F Five year financial summary 23

FRD 22F Significant changes in financial position during the year 23

FRD 22F Significant changes or factors affecting performance 23

FRD 22F Performance against operational and budgetary objectives n/a

FRD 22F Subsequent events 25

Financial Report

FRD 22F Application and operation of Freedom of Information Act 1982 29

FR 22F Compliance with building and maintenance provisions of Building Act 1993 29

FRD 22F Statement on National Competition Policy 29

FRD 22F Application and operation of the Protected Disclosure 2012 29

FRD 22F Application and operation of the Carers Recognition Act 2012 n/a

FRD 22F Details of consultancies over $10,000 28

FRD 22F Details of consultancies under $10,000 28

FRD 22F Statement of availability of other information 30

FRD 24C Reporting of office based environmental impacts 30

FRD 25B Victorian Industry Participation Policy disclosures 28

FRD 29A Workforce Data disclosures 28

SD 4.5.5 Risk management compliance attestation 30

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LEGISLATION REQUIREMENT PAGE REFERENCE

Ministerial Directions (continued)

Financial Report

SD 4.2(g) Specific information requirements 34

SD 4.2(j) Sign off requirements 34

Financial statements required under Part 7 of the FMA

SD4.2(a) Statement of changes in equity 37

SD4.2(b) Operating statement 35

SD4.2(b) Balance sheet 36

SD4.2(b) Cash flow statement 37

Other requirements under Standing Directions 4.2

SD4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements 38

SD4.2(c) Compliance with Ministerial Directions

SD4.2(d) Rounding of amounts 38

SD4.2(c) Accountable officer’s declaration 34

SD4.2(f) Compliance with Model Financial Report 38

Other disclosures as required by FRDs in notes to the financial statements

FRD 9A Departmental Disclosure of Administered Assets and Liabilities by Activity n/a

FRD 11A Disclosure of Ex gratia Expenses n/a

FRD 13 Disclosure of Parliamentary Appropriations n/a

FRD 21B Disclosures of Responsible Persons, Executive Officers and other Personnel

(Contractors with Significant Management Responsibilities) in the Financial Report 64

FRD 102 Inventories n/a

FRD 103E Non Financial Physical Assets (Pending revision) 39

FRD 104 Foreign Currency n/a

FRD 106 Impairment of Assets 41

FRD 109 Intangible Assets 41

FRD 107A Investment Properties n/a

FRD 110 Cash Flow Statements 37

FRD 112D Defined Benefit Superannuation Obligations 60

FRD 113 Investments in Subsidiaries, Jointly Controlled Entities and Associates (Pending revision) n/a

FRD 114A Financial Instruments – General Government Entities and Public Non Financial Corporations 41

FRD 119A Transfers through Contributed Capital n/a

Legislation

Freedom of Information Act 1982 29

Building Act 1993 29

Protected Disclosure Act 2001 29

Carers Recognition Act 2012 n/a

Victorian Industry Participation Policy Act 2003 28

Financial Management Act 1994 64

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LIST OF USED ACRONYMS/ABBREVIATIONS

BAU Business as Usual

CaLP Act Catchment and Land Protection Act 1994

CEO Chief Executive Officer

Charter Charter of Human Rights and Responsibilities Act 2006

CMAs Catchment Management Authorities

DEDJTR Department of Development, Jobs, Transport and Resources

DELWP Department of Environment, Land, Water and Planning

EGCMA East Gippsland Catchment Management Authority

EGLN East Gippsland Landcare Network

EGWS East Gippsland Waterway Strategy

EPBC Environment Protection and Biodiversity Conservation

FEVL Far East Victoria Landcare Network

FMA Financial Management Act 1994

FOI Freedom of Information

FOI ACT Freedom of Information Act 1982

FTE Full Time Equivalent

GA Greening Australia

GLaWAC Gunaikurnai Land and Waters Aboriginal Corporation

GLCC Gippsland Lakes Coordinating Committee

GLEF Gippsland Lakes Environmental Fund

GLH Gippsland Lakes Hinterland

GSERP Government Sector Employment Remuneration Panel

Ha or ha Hectare

IBAC Independent Broad-based Anti-corruption Commission

ICT Information and Communication Technology

Km Kilometre

Mo Molybdenum

N/A Not Applicable

NECMA North East Catchment Management Authority

No. Number

Non BAU Non Business as Usual

NLP National Landcare Programme

NRM Natural Resource Management

PA Act Public Administration Act 2004

PD Act Protected Disclosure Act 2012

PV Parks Victoria

RRAP Regional Riparian Action Plan

RCS Regional Catchment Strategy

SFS Southern Farming Systems

The Authority East Gippsland Catchment Management Authority

The Charter The Charter of Human Rights and Responsibilities Act 2006

VWGIF Victorian Water Group Investment Framework

Water Act Water Act 1989

WGCMA West Gippsland Catchment Management Authority

WHS Workplace Health and Safety

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NOTES

EAST GIPPSLANDCATCHMENTMANAGEMENTAUTHORITY

574 Main Street,(PO Box 1012) Bairnsdale 3875

Phone 03 5152 0600Fax 03 5150 3555

Email address: [email protected]: www.egcma.com.au

EAST GIPPSLAND CATCHMENT MANAGEMENT AUTHORITY · 2016-09-19 · 3 EGCMA ANNUAL REPORT 2015 – 2016...

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Transcript of EAST GIPPSLAND CATCHMENT MANAGEMENT AUTHORITY · 2016-09-19 · 3 EGCMA ANNUAL REPORT 2015 – 2016...