Livestock Health and Pest AuthoritiesANNUAL REPORT 2010-11

© Livestock Health and Pest Authorities State Management Council 2012

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Livestock Health and Pest Authorities State Management Council. Requests and inquiries concerning reproduction and rights should be addressed to:

Livestock Health and Pest Authorities State Management Council 161 Kite St (Locked Bag 21) Orange NSW 2800

ISSN 1832-9241

About this report

This report was prepared by the Livestock Health and Pest Authorities State Management Council in collaboration with the 14 Livestock Health and Pest Authorities throughout NSW. It reports on the activities of the LHPA for the 12 month period of 1 July 2010 to 30 June 2011.

For information about the Livestock Health and Pest Authorities visit www.lhpa.org.au.

For more information about information in this report contact the Communications Officer on 02 6391 3787.

Total external cost of production: $4111.80

Number of copies produced: 150

Cover design and desktop publishing by: Gecko Photographics, Orange LHPA Communications Unit

Printing: Land and Property Information Graphic Services, Bathurst

This report is available electronically at www.lhpa.org.au

For more information on additional publications that may be obtained contact:

Livestock Health and Pest Authorities 161 Kite St (Locked Bag 21) Orange NSW 2800 Telephone: 02 6391 3242 Email: lhpa.smc@lhpa.org.au

Important note:

The Government Information (Public Access) Act 2009 (GIPPA) replaced the Freedom of Information Act 1989 (FOI) on 1 July 2010.

Under GIPPA, certain information is required by law to be available via the LHPA website, free of charge. GIPPA also allows you to make informal requests for information, and to make formal access applications.

The GIPPA application process has replaced the application process under FOI.

To learn about obtaining information from the Livestock Health and Pest Authorities visit www.lhpa.org.au/aboutus

The Hon. Katrina Hodgkinson MP

Minister for Primary Industries

Parliament House

SYDNEY NSW 2000

Dear Minister

In accordance with the Annual Reports (Statutory

Bodies) Act 1984 and Section 36 of the Rural Lands

Protection Act 1998, we are pleased to submit

the amalgamated Annual Report for the 14

Livestock Health and Pest Authorities and the State

Management Council of Livestock Health and Pest

Authorities for the 12-month period ended 30 June

2011.

This report was prepared by the State Management

Council of Livestock Health and Pest Authorities in

collaboration with the 14 authorities.

Yours sincerely,

Hamish Holcombe

Deputy Chairman

CONTENTS

Executive Overview 4

Highlights of 2010-11 5

About the Livestock Health and Pest Authorities 6

Core functions 6

Structure and governance 7

Results 11

Delivery of core functions

• Livestock health 11

• Pest animal and insect management 14

• Travelling stock reserves 16

• Floods and other assistance 16

Financial Overview 18

Appendices 21

Financials 31

Contacting LHPA offices 60

Ian Donges

Chairman

Abbreviations used in this Annual Report: Full term Abbreviation

Livestock Health and Pest Authorities LHPAs State Management Council of Livestock Health and Pest Authorities State Council State Policy Council of Livestock Health and Pest Authorities Policy Council 14 Livestock Health and Pest Authorities authorities Rural Lands Protection Act 1998 the Act NSW Department of Primary Industries NSW DPI

4

This report covers the second period of the Livestock Health and Pest Authorities (LHPAs) which was formed following the restructure of the former Rural Lands Protection Boards and amendments to the Rural Lands Protection Act 1988 (the Act) in 2009.

It has been a time of consolidation and continued improvement to the new management structure and centralised financial system which came about from the 2009 reforms. The organisation continues to have a strong focus on service provision. Strategic planning has been a priority, with the development of a three year state-wide strategy which takes the LHPAs and State Management Council (the State Council) into 2014 and the 2011 Operational Plan which sets the framework for the organisation’s short-term key strategies.

All nine directors of the State Council continued their positions in 2010-11, providing a wealth of knowledge and experience to the organisation. The 28 directors of the State Policy Council of Livestock Health and Pest Authorities (the Policy Council) continued to provide guidance to the State Council and to determine policy. The boards of directors of the 14 Livestock Health and Pest Authorities (the authorities) governed and led their authorities, setting local priorities, budgets and service delivery and ensuring the core functions of livestock health and pest management remained their key focus.

LHPA staff allow the organisation to fulfil its purpose of safeguarding the state’s agriculture, by providing the frontline response to a range of livestock health and pest issues. In 2010-11, the organisation employed over 350 full-time employees across 65 offices in NSW. There was a slight increase in the number of veterinarians and rangers employed, continuing the organisation’s commitment to ensuring the shortage of district veterinarians which existed before 2009 was rectified. This, along with a 5% decrease in the number of customer service officers compared to 2009-10, reflects the LHPAs focus on increasing the amount of field staff compared to administrative staff as part of its ongoing commitment to delivering frontline services for livestock health and pest animal control across the state. Ongoing training and development of both LHPAs and State Council staff, improved employee engagement practices, and people and performance management were key priorities in the organisation’s human resources strategies in 2010-11.

Financial sustainability remains a major concern for the organisation. It is difficult to compare 2010-11 financial outcomes to the previous financial reporting period which was for the first 18 months of operation of the organisation following the reforms, and included 2009 and 2010 rates income against 18 months of expenditure. In 2010-11, the State Council recorded a deficit of almost $500,000.

Thirteen of the 14 authorities also recorded a deficit in 2010-11, with their overall deficit amounting to more than $3million. The application of operating restrictions and the capping of rates at CPI levels by the Minister means generating additional income is restricted at a time when expenditure has increased, particularly in the area of wages, which have increased at a higher rate than CPI. The financial performance of the organisation will continue to be compromised if this trend continues.

Statistics relating to performance in livestock health indicate significant achievements, with almost 5000 property visits, 10500 disease investigations and over 5500 general consultations carried out in 2010-11. LHPAs continued to work to minimise the risks of any disease outbreaks, to safeguard market access and to enhance livestock productivity through surveillance, monitoring and reporting of emergency and endemic animal diseases. As key partners in Australia’s National Livestock Identification System (NLIS), the national traceability system for cattle, sheep and goats, LHPAs livestock health officers continued to monitor and audit NSW saleyards and promote compliance. Residue management and certification were also carried out as part of the LHPAs commitment to delivering a high quality livestock health service.

Pest animal and insect management remained a core function of the LHPAs with group programs encouraged as the most effective and efficient way to overcome pest problems. 1825 group pest control programs covering over 9000 properties were coordinated in 2010-11. Over 6000 property inspections were carried out from which only 35 regulation notices were issued, suggesting an improved understanding in NSW landholders about the importance of compliance with the Act. Locust and mice plaques were the major pest activity, to which the LHPAs responded with rapid response and effective management, thereby protecting an estimated $963 million in agricultural production.

The LHPAs managed the state’s extensive Travelling Stock Reserve (TSR) network, issuing permits for TSR use and stock movement, monitoring usage, and maintaining TSR infrastructure. Good rainfall and decreased drought conditions across NSW during 2010-11 meant the use of the TSR network was low, therefore income generated from permits was subsequently low, and as a result capital expenditure on the TSR network was reduced. The majority of external funding received for TSR management was spent on targeted weed control. In most LHPAs there is inadequate funding to cover all costs of TSR maintenance and there is ongoing concern from ratepayers that they are subsidising the costs of managing the TSRs for the benefit of the public generally without public funding. Stable and adequate funding resources for TSRs, if shared between the traditional users of TSRs and taxpayers, would bring about a more

EXECUTIVE OVERVIEW

5

equitable solution for the costs of weed and pest control and management of travelling stock, while acknowledging the high public benefit and value placed upon these parcels of Crown land by the community.

In 2010-11, staff of the LHPAs also assisted with livestock welfare issues during several major floods throughout NSW.

2010-11 was a period of consolidation, strategic planning and many achievements in the delivery of the core functions of the LHPAs in safeguarding agriculture in NSW. The organisation heads into the next 12 months with financial sustainability remaining a key focus for all LHPAs as to the way they can achieve efficiencies and continue to deliver outcomes for their stakeholders. Comprehensive work around the financial sustainability of the organisation will continue into the next financial year, at a time when a Review into the newly formed LHPAs was announced by the Minister for Primary Industries, the Hon. Katrina Hodgkinson MP. The LHPAs welcome the Review and the opportunity it provides to fine tune the organisation two years on from major reforms. The LHPAs see this as a good time to consider their performance, both past and present, noting concerns regarding financial sustainability, and to identify some areas of potential growth and development.

Highlights of 2010-11

During the 12-month reporting period from 1 July 2010 to 30 June 2011, the LHPAs delivered a range of programs and services aimed at safeguarding agriculture in NSW. Some of the highlights from the period are listed below:

■ The 2010-11 plague locust season was one of the largest in the last decade. LHPAs rangers and support staff again provided frontline coordination and responded to approximately 5000 reports. These efforts helped to protect an estimated $963 million worth of crops and pasture. (This reference is at http://www.daff.gov.au/aqis/about/reports-pubs/biosecurity-bulletin/2011/biosecurity-bulletin-winter-2011#locust.)

■ Mice presented another major pest incursion in 2010-11. Near plague proportions were evident in the Riverina, Hume, Lachlan and Central West LHPAs and rangers issued over 100 tonnes of bait to assist landholders with their control.

■ Throughout the reporting period LHPAs reviewed seven ovine Johne’s disease (OJD) Exclusion Areas. These were conducted by the North West, Riverina, New England, Central West, Central North, Western and Darling LHPAs. These Exclusion Areas aim to minimise the risk of OJD being introduced into the area, reducing potential costs for sheep producers and providing trade advantages for

specific markets where OJD is not present.

■ Theileria was identified as an emerging disease threat by LHPAs district veterinarians. 245 cases of theileria were diagnosed, with over 65% of these by LHPAs. Further investigations to this emerging disease threat were carried out.

■ NSW experienced major flooding events in several parts of the state during 2010-11. This impacted landholders in the Riverina, Western, Darling, North West, Central West, North Coast, Hume, Lachlan and New England LHPAs. Rangers, district veterinarians and support staff assisted flood affected landholders with the initial response, through coordinating aerial surveillance, humane destruction and advice on livestock health, as well as providing support for assistance applications post the flood event.

■ Staff of the LHPAs continued the delivery of a new, simplified course for users of the poisons 1080 and Pindone. Up to June 2011, LHPAs had trained 2298 people.

■ In 2010-11, LHPAs maintained a strong media presence with regular interviews and timeslots on local and state radio, and articles and columns in local and state newspapers. This included the production and distribution of over 120 media releases which resulted in significant coverage of issues across the state. Almost 2800 references were made to the LHPAs in the media throughout 2010-11, of which almost 98% were either positive or neutral.

■ In April 2011, North Coast LHPA district veterinarian Keith Newby was honoured with the prestigious Educational Partner of the Year from The University of Sydney’s Faculty of Veterinary Science. This was the third time in four years the LHPAs have received the award which recognises the LHPAs commitment to training and mentoring veterinary science students.

State Council Chairman Ian Donges with Minister for Primary Industries Katrina Hodgkinson when she visited the Orange office shortly after her appointment in April 2011.

6

Core functions The LHPAs have a 150-year tradition of district-based delivery of livestock health and pest management programs that help safeguard agricultural production valued at over $8billion a year. Unique to NSW, the LHPAs form the only organisation in Australia that delivers expertise and effective service at a local level while forming an integral part of our national biosecurity system.

Programs delivered by LHPAs have flow-on effects by protecting human health, maintaining market access, promoting environmental outcomes, and providing an economic risk strategy on behalf of the Government for its landholders.

The organisation works cooperatively with other agencies, industry and the community to manage biosecurity threats and problems. LHPAs contribute to the NSW Department of Primary Industries (NSW DPI) Biosecurity Strategy by working to prevent the entry of biosecurity threats into the state and to contain and eradicate any biosecurity threats before they become established and spread in NSW, as well as to assist to

ABOUT THE LIVESTOCK HEALTH AND PEST AUTHORITIES

effectively manage biosecurity problems to minimise their impacts.

Every day LHPAs work hand in hand with landholders to deliver a world class disease investigation and advisory service that helps preserve the favourable status that secures international market access for NSW producers.

Funded largely by landholders and covering an area of more than 80 million hectares, LHPAs have over 350 local staff in 65 office across NSW and local producers as directors.

As a statutory organisation, LHPAs are able to independently set and implement local priorities while remaining accountable to the NSW Minister for Primary Industries (through the State Council) for its operations. The organisation has strong partnerships with industry and government, and works in close collaboration with the NSW DPI.

While not all landholders may see LHPAs staff on their properties, their work in emergency disease prevention, preparedness and response, advisory and diagnostic disease surveillance, residue management, certification, traceability

Snapshot of public benefits generated by LHPAs

■ Although private benefit versus public benefit to the wider NSW community can be difficult to quantify, there is a clear public good that results from the activities of the LHPAs.

■ Public/human health - in its surveillance role seeking to identify incursion of exotic diseases, LHPAs also identify emerging diseases including those capable of zoonoses (transmission to humans). Many of the most recent pandemics have emerged from human contact with domestic animals or human (and domestic stock) encroachments into wild ecosystems (Hendra virus, Nipah, swine flu, avian influenza, SARS (2003), AIDS). The work of the LHPAs helps protect humans from emerging zoonoses. In NSW the LHPA system provides frontline field surveillance services.

■ Food safety and supply - LHPAs work in chemical residues and zoonotic disease is helping to ensure a healthy food and fibre source for the wider community and its work to underpin export markets helps maintain returns from agricultural investment and supports continued production of food in NSW.

■ Exotic animal disease and emergency response - the economic impact of the 2007 equine influenza incident cannot be measured just against lost exports of equines from Australia, or even income lost to equine service industries and suppliers. Once again, the LHPAs provide the field services for any emergency animal disease

response in NSW.

■ Emergency response to bush fires, drought and other natural disasters – using the skills of the LHPAs rangers and district veterinarians to manage traumatised affected animals. The support given to affected producers helps them recover with less impact on the (human) public health system.

■ Animal welfare – is a national responsibility and is taken seriously by both ratepayers and non-ratepayers. The LHPAs animal welfare work satisfies a wider public expectation and benefit and its staff are well recognised for their expertise in, and commitment to, the implementation of acceptable animal welfare standards.

■ Environmental – there are clear environmental and heritage benefits from the organisation’s management of Travelling Stock Reserves (TSRs) and pest animal control programs.

■ TSRs are important habitat for various species of native fauna and flora. Often TSRs provide habitat for protected species listed under the National Parks and Wildlife Act 1974 and for threatened species listed under the Threatened Species Conservation Act 1995. The LHPAs strive to gain a balance between the need to provide pasture for livestock, and the need to conserve such native species on areas of TSRs under their control.

■ The work undertaken by LHPAs and landholders in controlling declared pest animals is not only for the protection of agriculture, but also the environment generally. For example, rabbits can cause significant damage to soils and vegetation in the areas they inhabit.

7

State Council

The State Council is accountable to the Minister for Primary Industries and comprises of nine directors, eight of whom are appointed by the Policy Council and one who is appointed by the Minister. Under the Act, the State Council is established as the independent governing body overseeing, monitoring and supervising the 14 authorities, providing them with direction, governance, and support, and representing them in industry and government policy making.

The State Council members for 2010-2011 were:

Ian Donges (chairman), independent member FAICD

State Council chairman Ian Donges is the owner-operator of a farming and grazing business specialising in lamb and cereal grain production in the Cowra area. In addition to his position on the State Council board, Ian is a member of the Cowra Show Society committee and the Rotary Club of Cowra. Other positions Ian has held include President of the NSW Farmers Association, President of the National Farmers Federation, Chairman of Horticulture Australia, Chairman of AWB International (note this is not AWB Limited), Chairman of Sheep Genetics Australia, and Chairman of Grain and Graze.

Hamish Holcombe (deputy chairman), director North West LHPA

Hamish Holcombe runs an intensive stock operation on his family’s property north of Moree in north west NSW. He is a director of the North West LHPA, previously being the board’s deputy chairman. Hamish has served on many boards and committees, including the Murray Darling Basin Community Advisory Committee, the Gwydir Catchment Management Authority Committee and the Inverell/Yolaroi Native Vegetation Committee. Hamish was also past president of the Australian Flood Plain Association.

Prue Bondfield, independent member LLB, GAICD

Prue is the internationally recognised owner of one of Australia’s largest beef cattle seedstock operations. She has many years experience on statutory, private company and industry boards, including serving as a director on the Board of Australian Agricultural College Corporation, Charolais Society of Australia and Beef Improvement Association Australia.

systems such as NLIS, regulation and extension ensures continued market access.

The pest management programs which rangers strategically coordinate with thousands of landholders across NSW reduce the impact of pest species predation on agricultural production.

The skills, knowledge and experience of 150 years of successful operation underpin the organisation’s connection to the rural community in which its people live and work.

The personal contact customer service staff have with local landholders in areas such as drought assistance, travelling stock reserve access or advice on stock movement has helped build the LHPAs reputation as the local, ‘go to’ organisation for producers.

Structure and governance The LHPA system consists of three levels:

■ State Management Council of Livestock Health and Pest Authorities (the State Council);

■ State Policy Council of Livestock Health and Pest Authorities (the Policy Council); and

■ 14 Livestock Health and Pest Authorities (authorities) across NSW, identified as the Darling, Western, North West, Central West, Central North, Lachlan, New England, Tablelands, Riverina, Hume, North Coast, Mid Coast, Cumberland and South East LHPAs.

8

Geoff Davis, director Western LHPA

A sheep and cattle grazier from Tibooburra, Geoff has over 25 years experience in the agricultural industry. He has held various roles on agricultural boards, including the Milparinka Rural Lands Protection Board and currently the Western LHPA, for which he is vice chairman. Geoff has a specific interest and significant experience in pest animal management, particularly wild dog destruction campaigns.

Ian Denney, Ministerial appointment B V Sc, Dip Ed (Tech)

Ian Denney is a veterinarian who spent the first 14 years of his professional life in private veterinary practice. He is currently Deputy CEO of Animal Health Australia (AHA) and before that Ian’s positions included Director Surveillance and Biosecurity Operations, Director Elizabeth Macarthur Agricultural Institute and Deputy Chief Division of Animal Industries with NSW DPI. He also was President of the Board of Veterinary Surgeons of NSW for a number of years, national President of the Australian Veterinary Association (AVA) in 2000 and an AVA Board member for five years. Ian and his wife are now small landholders near Crookwell where they breed Belted Galloway cattle and Welsh Mountain Ponies.

John Stranack, director Mid Coast LHPA MBus (Agribusiness), Dip Conservation and Land Management, GAICD

John Stranack is an agribusiness specialist with experience extending from hands-on farm management to running agribusiness companies. John is a member of the State Council Audit and Risk Management Committee and is also Chairman of the State Council’s Planning Committee. In 2009 he was appointed to the Noxious Weeds Advisory Council NSW.

Jim Swales, director New England LHPA

Jim has been a producer of merino wool, mutton, lamb and beef on his family’s farm for over 50 years. He has been a member of many organisations dealing with primary industry, vegetation management and educational access, including the Armidale Rural Lands Protection Board for 14 years, the NSW Farmers Association, and the Kingstown Bushfire Brigade. Jim is the chairman of the “Save New England Action Group”, a community based organisation which successfully blocked a Defence Department proposal to resume 250,000ha of agricultural land in western New England for an artillery range. He also spent 11 years lobbying for improved rural student educational opportunities as a Councillor of the Isolated Children’s Parents’ Association.

Peter Wallace, director Hume LHPA B Econ, M Admin

Peter currently operates a mixed farm near Albury. He was previously a senior executive in the Statutory Bodies oversighting the Australian Wool Industry. Peter is a member of the State Council Audit and Risk Management Committee.

Victoria Weekes, director Cumberland LHPA BComm LLB, FAICD, SFFinsia

Victoria Weekes has 25 years experience in the financial services sector and has held senior executive positions at Citigroup and Westpac. Victoria is a risk consultant and professional non-executive director, as well as a part-time cattle farmer on the NSW mid north coast. Victoria is on the board of the Cumberland LHPA, the Sydney Local Health District, the Audit and Risk Committee of the Sydney Metropolitan Development Authority and the State Council’s Audit and Risk Management Committee.

State Management Council members: Back, L to R: Prue Bondfield, Ian Denney, Geoff Davis, Ian Donges (chairman), Peter Wallace. Front, L to R: John Stranack, Hamish Holcombe (deputy chairman), Victoria Weekes and Jim Swales

9

State Council staff

The centralised office of the State Council is based in Orange, NSW and is operated by staff employed by the Chief Executive Officer (CEO). The Orange office serves as the headquarters for the LHPAs. While the State Council operates as the independent governing body of the 14 authorities under the Act, support staff work in partnership with the authorities to assist them to achieve the organisation’s objectives, providing them, the State Council and the Policy Council with technical expertise and guidance, support and service. This structure provides for efficient and effective financial accounting and reporting under a centralised model and the provision of support services enabling authorities to focus on safeguarding agriculture in NSW.

In 2010-11, there were 35 full-time, part-time and casual State Council staff working in five service units at the Orange office: Executive and support, Financial, Information technology, Landholder, and Human Resources management.

During the period State Council undertook a restructure of corporate services to provide a more service oriented and efficient structure. The Executive and support services unit provides executive support to the State Council and its committees, the Policy Council, the CEO, the Chief Operating Officer and a Senior Executive Team consisting of authority general managers. It provides State Council and the 14 authorities with efficient regulatory and compliance advice and support and project management services, as well as general administrative and communication support to the four other units. This unit comprises a communications team, which is responsible for internal and external communication strategies which promote a positive and accurate organisational profile to the public and among staff and directors of the organisation, and managing the LHPAs’ public profile by developing and implementing a strategic approach to media and communications management, increasing public awareness of the organisational outcomes and effectively managing controversial publicity.

The Financial services unit provides professional and efficient financial accounting services, including accounts payable, accounts receivable, treasury, payroll and financial reporting services to the LHPAs. Financial services provide a high level of compliance, quality information and drive to reduce expenditure on administrative overheads.

Information and technology services manage and maintain the organisation’s Information Technology (IT) infrastructure, databases, applications and business systems whilst coordinating the effective implementation and operation of these to best meet current and future IT

requirements of the LHPAs. The business systems include FARMS (land, occupier and rating data) and GP (Great plains finance and accounting software).

The Landholder Services unit manages the annual rating process and Land and Stock return process for each authority, as well as administering and supporting the authorities’ landholder databases ensuring currency and accuracy. Landholder services also provide landholder data management support to the 14 authorities.

The Human Resources management services unit works for the 14 authority general managers and the CEO, developing and implementing human resource management strategies, policies and practices and providing strategic and operational advice to better enable the LHPAs to achieve their objectives and to bring about cultural and behavioural alignment with the organisation’s objectives.

Policy Council

The Policy Council provides guidance to the State Council in the provision of its core functions of livestock health, pest management and stock identification.

As defined by the Act the Policy Council’s primary roles are the determination of general policies to be implemented by the 14 authorities and the determination of primary policies to guide the State Council in carrying out its functions. The Policy Council is also responsible to select and appoint members of the State Council and to provide advice on matters from the Minister, the State Council or an authority. It also carries out any functions relating to the administration of the Act as may be conferred or imposed on it by the Minister.

The Policy Council comprises of 28 elected directors, with two representatives from each of the 14 authorities.

The Policy Council members for 2010-2011 were: Note: this list contains all Policy Council members who served at any time in the 2010-2011 period

Graeme Alitt Regina Buchanan Ian Coles Geoff Cruickshank Lawrie Donoghue (Chair) John Francis Bruce Gordon Stuart Green Robert Greenaway Cletus Heffernan Graham Hillyer John Holland

Robyn Jackson Ian Kemp Bernard Lane Charlie McCowen Sue McGinn Don Mudford Bill Munton Tim Nicholl Christopher Noonan Bill O’Halloran Tim Oldfield Debbie Paton-

Blackwell Malcolm Roth Alan Russell John Seaman Jo Slack-Smith Peter Smith Chris Sweeney Neil Summerville Brian Thomas Robert Wason Peter Williamson Mac Wilson (Deputy Chair)

10

14 Livestock Health and Pest Authorities (the authorities)

Each of the 14 authorities is accountable to its own Board of Directors which is made up of local representatives who decide upon local service delivery priorities and local policies. They are independent and accountable for their operations and activities in accordance with any guidelines and specific orders of the State Council, and are subject to the control and direction of the State Council under the Act.

There are eight directors on each authority Board, with the exception of Darling and Western, which have 10 and 12 directors respectively due to their geographic size. Staff numbers vary across each of the authorities, but the structure typically includes a general manager, a senior district veterinarian, a senior ranger, district veterinarians and rangers, an office coordinator, customer service staff and field assistants.

The authorities’ boards of directors are listed on p23 of this report.

Funding

While the State Council and authorities receive some limited government funding in the form of national, state and departmental grants, including an annual operating grant from the NSW DPI to provide centralised services, its primary source of income is generated from rates charged to landholders.

The charging of rates by the LHPAs is required under the Rural Lands Protection Act 1998, with rates charged on all parcels of land deemed to be rateable under the Act. Each authority district has a minimum rating area for properties, which is generally 10 hectares on the coast and tablelands, and larger in more western districts of the state.

Rates are charged on a two-tier basis, including a general rate paid by all landholders and a supplementary animal health rate, which is payable in prescribed circumstances. Under the Act, each authority determines the rates for its district based

on local operational needs. Special purpose rates are charged for specified purposes, and for those liable to pay the animal health rate, such as the meat industry levy which is collected on behalf of the NSW Food Authority. The Minister for Primary Industries approves all rates.

As in the previous two years, in 2011 the LHPAs were directed by the Minister to cap total rate income at the current Consumer Price Index (CPI) of 2.8% and to cap individual landholder rate increases to less than 10%. In early 2011, the Policy Council formed a working party to review the current rating system and consider other options of rate assessment due to ratepayer concerns with currrent rating methodology. The work of this group is not yet finalised.

11

RESULTS

Delivery of core function areas – livestock healthKey result areas

The results achieved by the LHPAs in the following key areas during 2010-11 reflect their commitment to delivering a high quality livestock health service:

■ Emergency disease prevention, preparedness and response

■ Compliance with NSW animal health programs

■ Disease surveillance and reporting

■ Advisory and diagnostic services

■ Residue management

■ Certification

■ Traceability systems such as the National Livestock Identification System (NLIS)

LHPAs deliver the frontline public livestock health service in NSW. One of its great strengths is the ability of its district veterinarians and livestock health rangers to deliver state and national government programs, as well as more specific programs focussed on local issues, all aimed at safeguarding market access and enhancing livestock productivity. The knowledge, experience and expertise of LHPAs district veterinarians are held in high regard in the industry.

LHPAs also assist animal welfare agencies with livestock welfare issues when requested, and have various roles during emergencies such as drought, bushfires and floods. In 2010-11, staff of the LHPAs assisted with livestock welfare issues during several major floods throughout NSW.

Emergency disease prevention, preparedness and response

An emergency animal disease (EAD) can have significant effects on the state’s agricultural industry, potentially resulting in livestock deaths, production loss, and in some cases, impacts on human health and the environment.

In 2010-2011, LHPAs continued to work in partnership with the NSW DPI (known as Industry and Investment NSW prior to April 2011) with producers and the community to minimise the risks of any disease outbreaks, to safeguard market access and to enhance livestock productivity.

Many of the activities undertaken to ensure early detection of an EAD occur as part of standard surveillance activity, including Transmissible Spongiform Encephalopathies (TSE) samples from sheep and cattle, and piggery inspections. The National TSE Program is required to access European Union markets. The LHPA system is the single largest national

contributor to this program - without LHPAs NSW would not meet its national obligations, threatening export markets. In 2010-11:

■ LHPAs livestock health staff across NSW reported almost 258 EAD exclusions, with 7 EAD confirmations.

■ A total of 138 piggery inspections were conducted and there were 122 swill feeding investigations.

■ There were 132 TSE submissions, with 97 sheep and 61 cattle brains submitted by LHPAs.

■ LHPAs played a pivotal role in the response to the increase in Hendra disease outbreaks in northern NSW in the winter of 2011, with the first Hendra case reported in June 2011 and subsequent incidences and LHPAs response to these after June 30. This will be reported on at length in the 2011-12 Annual Report, which will cover the period of the majority of the outbreaks and subsequent response by the LHPAs.

■ District veterinarians and rangers received regular and ongoing training and preparedness skills in EAD.

Disease surveillance and reporting

By conducting field investigations into local livestock health issues, district veterinarians are able to collate surveillance results at a regional level which assists to identify trends and issues in livestock health. They also undertake field work for the National Arbovirus Monitoring Program (NAMP), by testing and bleeding herds over the insect spread period from October to July.

NSW Emergency Animal Disease Activity July 2010 - June 2011:

12

During 2010-2011, district veterinarians and rangers carried out:

■ 4870 property visits

■ 10332 disease investigations

■ 5612 general consultations

During 2010-11 endemic disease activities investigated by the LHPAs included footrot, anthrax, ovine Johne’s Disease (OJD), bovine Johne’s Disease (BJD), bovine tuberculosis, lice, and theileria, with the following results:

■ 172 herds were tested under the NAMP.

■ There were 55 new cases of footrot reported, with 36 new quarantines imposed and 15 quarantines still in place from the previous reporting period. 13 quarantines were released during the year, leaving a total of 23 quarantines at the end of the reporting period.

■ BJD was reported in 69 cattle and OJD was reported in 33 sheep.

■ Theileria was identified as an emerging disease threat by district veterinarians. 160 cases of theileria were diagnosed by LHPAs and further investigations carried out. (See Performance Story on this page).

■ In 2010 Enzootic bovine leucosis (EBL) was eradicated from NSW dairy herds. This was achieved through a close working relationship between staff of the LHPAs, the NSW dairy industry and NSW DPI.

NSW Endemic Animal Disease Activity July 2010 - June 2011:

South East LHPA district veterinarian Dr Ian Lugton investigating a theileria case

Performance story: Emerging disease investigations – theileria in cattle

In 2010-11, theileria emerged as a notable disease threat when significant production loss and mortality was confirmed due to theileria on 12 properties in the Hume LHPA.

In almost all cases, a link to contact with cattle from coastal or northern areas was confirmed. However, the presence of ticks associated with the transmission of the disease was only confirmed on one property.

A total of 245 cases of theileria were diagnosed in NSW throughout 2010-11, with over 65% of these reported by LHPAs. More regional information was required to identify the novel aspects of the epidemiology of this disease in the non-endemic regions, including how this disease was transmitted locally.

To better understand the critical aspects of the epidemiology of the disease, a surveillance project with Meat and Livestock Australia (MLA) and NSW DPI was established. This involved local LHPAs testing small mobs of cattle prior to them developing the illness to better enable them to advise local producers about risk factors and treatment options. Data and information gained from the surveillance and survey research will be vital to facilitate the development of management strategies for producers who have the disease diagnosed on their properties as pharmaceutical treatment options available in Australia are currently limited and expensive.

13

Advisory and diagnostic services

One of the key roles of district veterinarians is to advise on and diagnose herd and flock problems such as ill-thrift, poor reproductive rates and mortality. They work closely with producers to keep them up-to-date on current practices and management tools in parasite control, feeding and nutrition issues and changes to livestock programs.

In addition to direct one-on-one advisory services, publicity in the form of media exposure is used to provide current information and advice to landholders and the general public. In 2010-11, LHPAs maintained a strong media presence with regular interviews and timeslots on local and state radio, and articles and columns in local and state newspapers.

■ During 2010-11, LHPAs conducted 993 advisory activities throughout the 14 LHPAs including public awareness and education campaigns, producing publications (including newsletters and brochures), attending agricultural field days, and organising producer group activities.

Traceability systems

LHPAs are a key partner in Australia’s National Livestock Identification System (NLIS), the national traceability system for cattle, sheep and goats. During 2010-11 staff of the LHPAs were very proactive in promoting the importance of complying with NLIS requirements.

■ From July 2010 to June 2011, livestock health officers audited for compliance almost 75% of cattle, sheep, goat and pig sales held at NSW saleyards.

Residue management

Part of the LHPAs core functions in livestock health is ensuring chemical and antibiotic residues stay out of the food chain. This is achieved through a number of programs, including the National Organochlorine Management Program (NORM), aimed at managing chemical residues in animals and soil. Animal health staff play an ongoing role in surveillance, certification and education in this area, including carrying out on-farm investigations to identify sources of residues and working with landholders to either eliminate the source of the residue or mitigate its effects. They also investigate residue detections reported from abattoirs.

■ In 2010 -11, 20 new cases of residues were detected, with 15 property management plans developed.

Certification

Certification and education is carried out by livestock health staff to ensure livestock are healthy when being sold, exported or moved interstate. During 2010-2011:

■ 793 certificates were issued for export

■ 1736 certificates were issued for interstate movement

■ 461 certificates were issued for shows and sales

NLIS compliance at sheep sales and cattle sales:

14

Delivery of core function areas - pest animal and insect management

Key result areas

During 2010-11, the LHPAs continued to work with NSW landholders to lessen the impact of certain animal and insect pests in agricultural production and the environment. Key areas of work during the reporting period included:

■ Coordination of group control programs as the most effective way to manage pests

■ Property inspections and regulatory control

■ Effective management of increased locust and mice activity, thereby protecting an estimated $963 million in agricultural production

■ Establishment and coordination of training courses for landholders in use of 1080 and Pindone for pest control

Under the Act, all land managers in NSW, whether on private or public lands, are required to eradicate a declared pest species on their land. LHPAs assist managers to control these pests throughout NSW.

Declared pest animals in NSW are wild rabbits, feral pigs and wild dogs. The Australian plague, migratory and spur-throated locusts are all declared pest insects. LHPAs also assist land managers to control nuisance animals such as foxes, mice and goats.

Role of the local authority

The role of the 14 authorities with regard to pest management and control are to:

■ be the principal regulatory body at the local level

■ provide advice on the most suitable and best practice methodologies for pest control

■ promote stronger working relationships between all stakeholders involved in pest control

■ provide some materials used in pest control, including baits

Group control

The LHPAs continue to promote pest management on a group basis. Rangers coordinated a number of group programs in 2010-11, and landholders were encouraged to participate through direct contact, newsletters, field days and other promotions. These programs are often multi-agency involving the National Parks and Wildlife Service, State Forests, Crown land as well as private landholders.

Animal No. of Groups No. of properties

Rabbit 172 1024

Wild dog 430 2363

Feral pig 306 1134

Fox 917 4498

Total 1825 9019

Regulatory action

The 14 authorities undertook a total of 6318 inspections on properties to confirm compliance with the RLP Act 1998. There were only three authorities that were required to use their regulatory powers, which involved the issuing of 35 notices under Section 169 to enter and carry out work for rabbits, two individual eradication orders for feral pigs, and one individual eradication order for rabbits under section 157 of the Act.

Locust campaign

There was significant locust activity throughout the 2010 spring and early summer period. Rangers were kept busy following up reports and issuing insecticide to over 4500 affected landholders. The activity was anticipated with the known egg beds in the central and southern slopes and plains areas from autumn 2010.

The campaigns were managed locally by the senior rangers with the new structure of larger authority districts allowing more flexibility and cost efficiencies in assisting landholders. LHPAs were involved in assessing and supporting aerial control of 47,000ha of banding locusts.

High numbers of spur-throated locust nymphs were evident through late summer and autumn in the central west and north west of the state. These caused some isolated damage to crops with individual landholders undertaking control. These populations dispersed and did not develop into swarms as anticipated.

Mice

Mice activity was first evident in the Riverina district in late spring 2010, with some reports of damage in rice crops. Over the summer period numbers increased rapidly with the higher than normal quantities of grain left in paddocks as a result of the wet spring.

There was a shortage of rodenticides, mainly zinc phosphide, to effectively control mice when crops were sown in autumn. This resulted in significant losses in some areas which necessitated an emergency use permit to allow another supplier into the market.

RESULTS

15

LHPAs applied for and were issued a minor use permit by the Australian Pesticides and Veterinary Medicines Authority (APVMA) to allow the supply of Coumatetralyl bait to assist landholders in control around farm buildings. This in conjunction with the existing Bromadiolone permit and registered products provided landholders with a complete arsenal for managing future mice plagues.

1080/Pindone training

The roll-out of the 1080/Pindone training course was well received by landholders. The Office of Environment and Heritage and LHPAs believe the course is achieving its goal of ensuring landholders who want to use Pindone or 1080 can legally acquire and use them. 2298 people had been trained up to 30 June 2011.

Funding

LHPAs received just under $1,000,000 in external funding for pest control programs. The Catchment Management Authorities (CMAs) were the main contributor with $855,000 to predominantly assist in reducing environmental damage. The funding was primarily for feral pigs, with $780,000 allocated to their control. Wild dog control received $80,000 and $55,000 was used in rabbit control.

Population trends

Wild dogs: an increase in wild dog activity was reported. The continuing good season saw an increase in native prey, especially macropods, which sustained higher dog numbers and improved pup survival through the non-stocked timbered areas that maintain populations in eastern NSW. However, stock losses remained relatively constant despite increased numbers of wild dogs, due to effective local programs implemented by local landholders, crown land

managers and the LHPAs.

Rabbits: there was an increase in rabbit activity during the reporting period, again as a result of the improved seasonal conditions across most of the state. There was minimal impact by Myxomatosis despite the increase in vectors to assist with its spread. The introduction of Rabbit Haemorrhagic Disease (RHD) also assisted where immune levels were low.

Feral pigs: the improved season resulted in the remnant feral pig population spreading and breeding profusely resulting in substantial increases in infestation levels. With plenty of feed available, management was difficult in the broader area.

Foxes: the improved season saw more favourable conditions for foxes with increases in ground cover. There was also a reduction in fox control in some districts with the tighter restrictions on landholders obtaining 1080 baits.

Wild deer: there was an increase in wild deer activity across most of the eastern authorities. Effective control was very difficult in some areas due to their mobility across fenced boundaries and property sizes around the urban fringe. A pilot program is now being trialled in the Illawarra area utilising professional shooters in peri-urban areas.

Mice: became evident in the Riverina in the spring of 2010 with some damage to rice crops. Populations increased and spread with highest numbers in the Riverina, Hume, Lachlan and Central West districts.

Wingless grasshoppers: the improved conditions across the tablelands resulted in a significant decline in wingless grasshopper activity. It is not anticipated populations will increase to levels that will impact on productivity until there are consecutive poor seasons.

Locusts swarming around a vehicle during the locust plaque

16

RESULTS

Performance story: frontline in locust campaign During recent years, rangers provided frontline coordination for plague locust control, as part of a campaign overseen by the Plague Locust Management Group comprising LHPA, NSW DPI, Australian Plague Locust Commission (APLC) and NSW Farmers Association.

In 2009-10, rangers responded to more than 2000 reports of locust sightings and in 2010-11 they responded to approximately 5000 reports.

2010-11 was one of the largest locust seasons in the last decade - ten of the 14 LHPAs had landholders with significant locust activity. Staff were key personnel on the frontline. Of the LHPAs which did not see locust activity, a number sent rangers to locust-affected areas to assist with control.

Rangers collated reports from landholders, carried out on-ground inspections, mapped locust activity and distributed chemical to eligible landholders.

Senior rangers were instrumental in running the Forward Command Posts. This involved the coordination of resources and staff, forward planning, reporting, training and monitoring of the campaign as it progressed. This role was carried out by only one or two people. In the past, these functions had required four or five people for the same outcome.

The role played by the LHPAs was crucial in protecting an estimated $844 million worth of agricultural production for NSW, Victoria and South Australia. However, recent figures released by the APLC (Winter 2011 Biosecurity Bulletin) indicate that about $963 million worth of crops and pastures were protected.

Delivery of core function areas – Travelling stock reserves and flood assistance

Key activity areas

During 2010-11 Livestock Health and Pest Authorities continued to manage the travelling stock reserves network (TSRs) throughout NSW. With floods replacing drought as an issue of priority, LHPAs also provided assistance in those LHPA districts affected by floods. Key activities during the reporting period included:

■ Issuing permits for TSR use and stock movement, and monitoring usage

■ Maintaining TSR infrastructure

■ Targeted weed control

LHPAs manage the NSW TSR network, which covers almost 600,000 hectares of crown land. These parcels of land create a traditional network for stock movement and also the important role of providing fodder reserves in times of drought, flood and bushfire. TSRs are also significant social, cultural and historical spaces. Improvements to infrastructure

As the use of TSRs has been low in 2010-11 (see Usage figures on page 17), income generated from permits has subsequently been low, meaning capital expenditure on the TSR network has been reduced in the reporting period. However, LHPAs still built or upgraded five windmills and bores, 40km of fencing was erected, and two new sets of holding yards were constructed.

Staff from the Hume LHPA carrying out maintenance work on TSRs.

17

Flood assistance

There was significant flooding in the Hume, Riverina, Central West, North West, Darling, Lachlan, Western, Mid Coast and North Coast LHPA districts within the 2010-11 period. Staff assisted landholders with coordinating aerial surveillance to identify stock in trouble and fodder drops where stock were on isolated islands with insufficient feed. Specially trained rangers were also involved in 13 situations where stock was stranded in flood water and landholders requested they be euthanised by aerial shooting on welfare grounds.

TSR usage

As the seasonal conditions remained reasonably good across NSW during 2010 -11, the use of the TSR network was low, which resulted in the retention of good ground cover that allowed the routes to fully recover from the preceding drought years.

Stock usage of TSRs by district The analysis of district usage of TSRs indicates that usage was largely confined to the slopes and plain regions with 96% of sheep and 91% of cattle in these regions.

Monthly usage May-June was the peak period for TRS usage, with October – March recording less use.

Annual usage comparison Increased rain and a decrease in drought conditions saw less usage of TSRs in the reporting period compared to previous years where drought conditions prevailed.

Funding

LHPAs received a total of $475,000 of external funding to assist with management of TSRs, a significant reduction on previous years. Of this funding $280,000 was spent on targeted weed control to prevent the continued spread of weeds along stock routes and onto adjoining private land. With the ongoing recognition of the conservation value of many TSRs, funding from Catchment Management Authorities and other sources continued to assist in maintaining areas of medium and high conservation value.

18

RESULTS

Financial Overview

Key reporting areas

The Rural Lands Protection Amendment Act 2008, which enacted the reforms to the former RLPB organisation, also brought about changes to the financial reporting year, from the calendar year to the fiscal year. Section 47 of the Act states that the financial period for the newly formed LHPAs was for an eighteen month period. The comparative information presented in this report relates to the eighteen month period, and is reported against the twelve month period ended 30 June 2011.

The NSW Government provided $3million in funding for implementation of the reforms. During the year ended 30 June 2011, $502,717 of expenditure was attributable to activities in connection with the reform process. At year end, $109,092 remains of the original grant funding.

The key financial reporting areas covered in this overview are:

■ Financial performance of the authorities

■ Appointment of auditors and the financial audit

■ Significant accounting events, changes in accounting policies and subsequent events

During the year, work continued in relation to the refinement of processes, improvement in financial reporting, and focus on improving the annual financial audit process. This work consolidated and built on efforts commenced during the previous financial period.

Financial performance of the LHPAs

The LHPAs recorded an operating deficit for the financial year of $3.1million. It should be noted that this result included the effect of revaluation decrements against land, buildings and investment properties of $941,000. Revaluations of these classes of assets are performed periodically in line with stated policy.

An overview of consolidated performance and result appears on page 19 of this report.

Appointment of auditors and financial audit

In accordance with Section 55 of the Rural Lands Protection Act 1998, each authority facilitated the appointment of an auditor to conduct the financial audit each reporting year.

On recommendation of State Council, LHPAs appointed a single auditor for the organisation for the 18-month reporting period of 2009–10 to achieve standardisation of process, reporting and interpretation of accounting standards and gain cost savings.

Audit costs in for the former RLPBs in connection with the 2008 audit exceeded $385,000, in aggregate. By comparison, audit fees in connection with the 2011 audit amounted to $131,000.

Deloitte Touche Tohmatsu (Deloitte) was appointed, selected from four firms who responded to a request for quotation under the pre-qualified scheme for performance and management services, operated by NSW Procurement.

At the time of preparing this report, the audit of the 14 authorities’ financial statements was finalised, and the financial information presented in this report, relevant to the authorities, is extracted from the audited financial statements of the authorities.

The Audit and Risk Management Committee (ARMC)

The ARMC was established by State Council to assist the State Council Board fulfill its financial reporting, risk management, control frameworks and compliance responsibilities. It consists of three members appointed by the State Council Board, all of whom are members of the Board. ARMC members are selected by merit, and represent a broad range of skills and experience relevant to the operation of the State Council and the authorities.

Significant accounting events, changes in accounting policies and subsequent events

The comparative financial information presented for the 14 authorities represents the first reporting period since amalgamation, and covers an eighteen month period. Information relating to the current reporting period is for a twelve month period.

Individual authority financial results

Consolidated individual authority financial results appear on page 19. The information in these summaries were derived from the financial statements prepared by the authorities in accordance with Section 55 of the Rural Lands Protection Act 1998 and in accordance with Australian Accounting Standards. Audit opinions have been issued on the 2010-11 financial reports prior to the time of publication. State Council will report to the Minister for Primary Industries and the Treasurer on the performance of the 2010-11 authority audits.

Salary rates for authority employees appear on page 27 of this report.

19

Time for payment of accounts

Below is the schedule of consolidated payments (ordinary trade payables) made during the twelve month reporting

period and the time they were paid. The schedule also indicates the average percentage of payments paid on time as compared to authority targets set. Penalty interest paid during the reporting period was negligible.

Consolidated financial performance and result:Statement of Comprehensive Income 18 months ended 30

June 2010 (audited) 12 months ended 30

June 201118 months

ended 30 June 2010 (audited)

$

12 months ended 30 June

2011 $

Total Income 89,572,865 48,447,101

Total Expenditure 78,989,572 51,552,684

Total Operating Surplus 10,583,293 -3,105,583

Sources of funds Proportion of total Proportion of total

General Rate 41% 38% 36,906,637 18,508,705

Animal Health Rates 23% 21% 20,301,016 10,361,845

Special Purpose Rate: Pest Insects 13% 12% 11,800,073 5,895,709

Grant Income 3% 3% 2,392,915 1,257,864

Other Income 20% 26% 18,172,224 12,422,978

Total Income 100% 100% 89,572,865 48,447,101

Major expense categories Proportion of total Proportion of total

Personnel services and associated expenses 44% 46% 34,831,659 23,861,005

Core services and reserve maintenance 23% 21% 18,466,839 10,582,065

General operating costs 20% 23% 16,157,772 11,672,580

Non cash items: Depreciation and asset write-downs 10% 7% 7,744,868 3,850,222

Director fees and associated costs 2% 3% 1,788,434 1,586,812

Total Expenditure 100% 100% 78,989,572 51,552,684

Statement of financial position

Total Assets 95,417,460 94,526,298

Total Liabilities 15,910,594 16,088,244

Equity $79,506,866 $78,438,053

Trade Payables

Current (within due date)

Target Actual Less than 30 days overdue

Target Actual Between 30 & 60 days

Target Actual Over 60 days Target Actual

Quarter $ % % $ % % $ % % $ % %

Sep-10 5,536,434 85 96 251,777 10 4 21,618 5 0 - 0 0

Dec-10 4,626,692 85 81 775,398 10 14 233,171 5 4 81,880 0 1

Mar-11 2,710,691 85 69 1,066,007 10 27 86,607 5 2 81,380 0 2

Jun-11 5,326,385 85 59 2,500,980 10 28 989,382 5 11 208,233 0 2

Total / Average

18,200,202 85 76 4,594,162 10 18 1,330,778 5 4 371,493 0 1

Schedule of consolidated payments:

20

21

Governance and management 22

Attendance at meetings 22

LHPA board membership 23

Principal Officers 23

Human resources 25

Statistical snapshots 28

Stock figures in NSW 28

Holdings and rates 29

Stakeholder relationships 30

Legislative changes 30

Complaints management 30

Financials 31

Authorities’ financial position 32

Authorities’ financial performance 32

State Council financial report 34

APPENDICES

22

GOVERNANCE AND MANAGEMENT

State Council meetings are usually held each quarter, with additional meetings scheduled as required, via teleconference where possible.

2010 – 2011 Attendance at State Council board meetings:

No. meetings held

No. meetings attended

Ian Donges 7 7

Hamish Holcombe 7 6

Peter Wallace 7 7

John Stranack 7 7

Victoria Weekes 7 7

Prue Bondfield 7 7

Ian Denney 7 6

Geoff Davis 7 6

Jim Swales 7 7

2010 – 2011 Attendance at Policy Council board meetings:

No. meetings held

No. meetings attended

Lawrie Donoghue (Chairman)

3 3

Mac Wilson (Deputy Chairman

3 3

Alan Russell 3 3

Stuart Green 3 3

Sue McGinn 3 3

Don Mudford 3 3

Chris Noonan 3 3

Debbie Paton 3 2

John Francis 3 3

Alan Coles 3 2

Chris Sweeney 3 3

Robyn Jackson 3 2

Charlie McCowen 3 3

Peter Williamson 3 3

Butch Lane 3 3

Bruce Gordon 3 3

Brian Thomas 3 3

Ian Kemp 3 2

Graham Hillyer 3 3

Neil Summerville 3 3

Tim Nicole 3 1

Robert Wason 3 3

Graeme Allitt 3 3

Tim Oldfield 3 3

Cletus Heffernan 3 3

Bill Munton 3 3

Jo Slack-Smith 3 2

Malcolm Roth 3 2

Peter Smith 3 1

Geoff Cruickshank 3 1

John Holland 3 1

23

Directors of the 14 LHPAs

Central North

Malcolm Roth – Chairman, Lawrie Donoghue – Deputy Chairman, Ron Campbell, David Gowing, Joe Harley, Ray Hynes, Denis Yeo, Jan Hahn

Central West

Don Mudford – Chairman, Chris Noonan - Deputy Chairman, Gloria Brown, Lindy Carney, John Holland, David Lister, Brian Mockler, William Sims

Cumberland

Mark Honey – Chairman, Stuart Yeatman – Deputy Chairman, Tony Bowe, Rodney Chevis, Bill Munton, Alan Russell, Peter Williams, Victoria Weekes

Darling

Robert Wason – Chairman, Paul Evans, Jamie Fisher, Susan Maree Glover, Mark Johnson, Kerri Jane Mooring, Joan Myors, Tim Oldfield, Phillip Ridge, William Turnbull

Hume

Debbie Paton-Blackwell – Chairman, John Francis – Deputy Chairman, John Davey, Alan Eldridge, Kel Harpley, Philip Julian, Peter Wallace, Roger Wilkinson

Lachlan

Christopher Sweeney – Chairman, Peter Smith - Deputy Chairman, Alan Coles, William Clarke, James Maslin, Alan McGufficke, Gail Moxey, Thomas Murdoch

Mid Coast

John Stranack – Chairman, Greg Rogers - Deputy Chairman, Paul Cameron, Stuart Green, Susan McGinn, Dezohn Murley, Lyn Rayward, John Willey

New England

Robyn Jackson – Chairman, Jim Swales - Deputy Chairman, Hugh Cordingley, Charles McCowen, Bill O’Halloran, Nigel Scott, Annabel Sides, Brian Tomalin.

North Coast

Neil Summerville – Chairman, Peter Williamson – Deputy Chairman, Adam Chapman, Ron Chittick, Phillip Doyle, Neil Farquhar, Jackie Geraghty, Allan Jarrett, Stewart Kerr

North West

Robert Greenaway – Chairman, Steve Bradshaw – Deputy Chairman, Geoffrey Cruickshank, Ian Falkiner, Hamish Holcombe, Graeme McNair, Tim Nicolle, Jo Slack-Smith

Riverina

Bernard Lane – Chairman, Jane McKindlay – Deputy Chairman, Graham Allitt, Leslie Borland, Ian Bryce, Regina Buchanan, John Burge, Terry Gorman

South East

Ellen Green – Chairman, Winston Phillips – Deputy Chairman, John Clarke, Cletus Heffernan, Graham Hillyer, John Reardon, John Rolfe, Martin Sims

Tablelands

John Seaman – Chairman, Nerida Cullen – Deputy Chairman, Nigel Baines, Bruce Gordon, John Mendl, Howard Sinclair, Garry West, Mac Wilson

Western

Brian Thomas – Chairman, Geoff Davis – Deputy Chairman, Ron Hoare, Terry Huntly, Ian Kemp, Steve Leslie, Anny O’Connor, Paul Roberts, William Ryan, Darrel Sue, Charles Townsing

2010-11 Principal Officers

Steve Orr (to January 2011) Chief Executive OfficerState CouncilBApplSc (Hons), MBA, GAICD

Bob Kotic (from January 2011)Interim Chief Executive OfficerState Council

Nigel Milan AM (from June 2011)Chief Executive OfficerState Council

Central North LHPADaryl PaullGeneral ManagerDiploma of Financial Planning

Central West LHPANarelle RodwayGeneral ManagerAssociate Diploma of Vocational Instruction

Cumberland LHPAGreg WoodGeneral Manager Bachelor of Commerce

24

Darling LHPACec DorringtonGeneral ManagerAssociate in Local Government Administration

Hume LHPAJohn KnightGeneral ManagerRay Willis Bachelor of Applied Science (Env)

Lachlan LHPAPeter BrownGeneral Manager

Mid Coast LHPA Rick Matts General Manager

Garry West Acting General Manager

New England LHPAMelissa McLeodGeneral ManagerBachelor of Business - Marketing/Management

North Coast LHPABrian McInnesGeneral Manager Graduate Certificate - Business Administration

North West LHPAJane EdwardsGeneral Manager Bachelor of Commerce

Riverina LHPAGeoff CorboyGeneral Manager

South East LHPAThomas RossGeneral ManagerBachelor of Engineering, Bachelor of Science, Master of Business Administration

Tablelands LHPATim Johnston General Manager

Western LHPAAnn DuryeaGeneral Manager

Senior officers (State Council)Joe Sullivan (to April 2011)Policy ManagerBApplSc, MAS (Ag & Rural Dev)

Helen Gosper (to June 2011)Communications ManagerB.A (Communications)

Dominica Williams (to June 2011)Chief Financial OfficerB.Bus (Accounting)

Robert Staveley (to April 2011)IT ManagerDip IT (Network Engineering)

Kyleah Hayes (to January 2011)Human Resources ManagerB.Econ, GradDpiBusMgt, GradDipPsych

Tamara James (to June 2011)Interim Human Resources ManagerB.Bus (Human Resources Marketing & Management)

Tim Johnston (from June 2011)Chief Operating Officer

Renai McArdle (whole period)Operations Manager

25

HUMAN RESOURCES

Introduction The Human Resource unit is committed to supporting the organisation to provide a workforce that has the necessary skills, flexibility and diversity to meet the LHPAs current and future objectives.

The Human Resources unit plays an internal consultancy role to support the human resources functions of the 14 authorities and the State Council. In 2010-11, Human Resources continued to place strong emphasis on coaching and training general managers and other senior staff to ensure the full ambit of people management issues were dealt with effectively and in accordance with policies.

People priorities Employees at the LHPAs provide the frontline response to a range of livestock health and pest issues. Without its employees, the organisation would be unable to fulfil the organisational objective of “Safeguarding Agriculture”.

The LHPAs Code of Conduct outlines expectations of employees with regards to a range of workplace requirements including public employment expectations and behaviour, conflicts of interest, dealing with external stakeholders, gifts and hospitality, in addition to the responsible and efficient use of LHPAs resources. All employees at the LHPAs are inducted annually reinforcing these standards. All policy, including the Code of Conduct, is available on the LHPAs intranet.

LHPAs do not tolerate unacceptable conduct in the workplace. Its policies specifically address discrimination, harassment, bullying and victimisation and cover all employees, applicants for employment, customers, contractors and agency employees.

Employment The LHPAs are committed to providing a flexible workplace which focuses on employee wellbeing and work/life balance. This is achieved through a leave in lieu system enabling employees to bank excess hours and take these hours at a time mutually convenient to the employee and the organisation. Additionally, the organisation provides opportunities for job share arrangements and part time work where operationally feasible. A breakdown of employment status is reflected below.

LHPA Employment Status

Full-time 77.75%

Part-time 17.32%

Casual 4.93%

An employee assistance program continues to be utilised by staff across the state for a range of issues with staff accessing both face to face counselling in addition to telephone counselling for employees in remote areas.

Employee engagement The geographical dispersion of staff across the state of NSW necessitates a systematic forum for communication to employees. Regular communication with employees occurs via team meetings, email and the organisation’s intranet. In addition, on a monthly basis the communications unit facilitates an internal employee newsletter called LHPA Connect. This communiqué provides up-to-date and relevant information to employees about what’s happening within the organisation.

People and performance management A manager performance appraisal program is in place where all authority general managers and managers of the State Council staff identify business unit objectives and KPIs for the planning year. The performance appraisal process is based on a balanced score card approach where managers, and their supervisors nominate objectives and determine KPIs. The performance appraisal process is a three stage process where the manager and their supervisor have an initial meeting to discuss and establish objectives, followed by a midterm and final review.

Employee relations The LHPAs are committed to resolving workplace issues quickly and fairly. This is achieved through a dispute settling procedure, which is based on procedural fairness and permits an escalation process within the organisation for unresolved issues.

Staff profile The LHPAs employs 353 FTE employees across 65 offices over the state of NSW. The organisation has focused on increasing the field staff/ administrative staff ratio as a reflection of its ongoing commitment to landholders delivering frontline services for livestock health and pest animal control across the state.

A breakdown of the staff by workgroup and FTE staff movement trends over the past three years is reflected in the table below.

Workgroup trends 2008-2011 2008 2009-2010 2010-2011

Office coordinators 12.00 12.00 12.00

General managers 44.70 14.00 14.00

Senior district vets/district vets

34.90 41.71 43.74

Senior rangers/rangers 131.40 134.10 137.31

Customer service officers 101.01 84.40 79.75

Field assistants 31.73 26.52 26.05

State Council staff 18.50 37.50 40.01

TOTAL 374.24 350.25 352.86

26

Equity and diversity within the workplace The LHPAs encourage diversity in the workplace. The organisation offers paid maternity leave and unpaid parental leave for employees to access. The table below shows the breakdown of staff by gender across the various workgroups within the organisation. The LHPAs are an equal opportunity employer. This commitment is reflected in the recruitment and selection procedure where the principles of merit selection are firmly embedded into the process.

LHPA staff classification by gender

Classification % Male % Female

Customer service officers 0.79 99.21

District veterinarians 63.83 36.17

Field assistants 96.42 3.57

General managers 71.43 28.57

Rangers 90.58 9.42

Office coordinators 8.33 91.67

State Council staff 37.84 62.16

LHPA Diversity Statistics (FTE)

Aboriginal Language Disability

2 1 0

Staff development The State Council is committed to continuous development of its staff. This is ensured through required training at various barrier points. With consideration of the diversity of the employees within the organisation in addition to the geographical isolation of many employees, flexibility with regard to learning and development has been a priority. This flexibility has been achieved through a capacity for employees to seek recognition of Prior learning (RPL) for workplace learning.

LHPAs staff training

Nature of training Number of days

OHS 245.0

Award Training 373.5

Other Training 580.0

Total Training 1198.5

LHPAs Manager Qualifications

Location Title Name Tertiary (University)QualificationCentral North General manager Daryl Paull Dip FS(Financial Planning)Central West General manager Narelle Rodway AssDipVocEd & TrainCumberland General manager Greg Wood B.Com.Darling General manager Cec Dorrington N/AHume General manager John Knight BBus Hume General manager Ray Willis BSc Lachlan General manager Peter Brown N/AMid Coast General manager Rick Matts N/ANew England General manager Melissa McLeod BBus (Hons), GradCert GPPNorth Coast General manager Brian McInnes GCBANorth West General manager Jane Edwards BComRiverina General manager Geoff Corboy N/ASouth East General manager Thomas Ross MBA, BSc, BEng.Tablelands General manager Tim Johnston N/AWestern General manager Ann Duryea N/AState Council staff CEO Steve Orr BApplSc (Hons), MBA, GAICDState Council staff Communications

managerHelen Gosper B.A. (Communications)

State Council staff Chief Operating Officer Tim Johnston N/AState Council staff CEO Nigel MilanState Council staff Chief financial officer Dominica Williams B.Bus (Accounting)State Council staff Human resources

managerKyleah Hayes B.Econ, GradDipBusMgt,

GradDipPsychState Council staff IT manager Robert Staveley Dip IT (Network Engineering)State Council staff Policy manager Joe Sullivan BApplSc, MAS (Ag & Rural Dev) State Council staff Operations manager Renai McArdle N/A

27

Employment agreements

All authority employees are covered by the LHPAs Salaries and Conditions Award. The terms and conditions of staff within the State Council are specified in an extract of conditions and entitlements contained within a terms and conditions of employment. Exceptional movements in salaries have been in line with the agreed LHPAs Salaries and Conditions Award. Award movements for 2008, 2009 and 2010 were 4% per annum.

Salary rates for authority employees as of 1 July 2010 are reflected in the table below.

Work Group Salary Range

General managers $ 73,549 - $113,568

Senior veterinarians $109,782

Veterinarians $ 63,515- $100,070

Customer service officers $ 38,819 - $ 48,031

Office coordinators $ 59,488

Senior rangers $ 61,651 - $ 75,712

Rangers $ 45,919 - $ 58,649

Field assistants $ 39,632 - $ 45,919

Occupational health and safety

The LHPAs are committed to providing a safe workplace for all employees, contractors and visitors. During 2010-11 the organisation applied systematic OHS consultation practices across the organisation. As a result 12 of the 14 authorities have an OHS committee that has completed the mandatory Work Cover accredited training, are meeting on a regular basis and actively consulting with employees on potential occupational health and safety matters.

Additionally, all employees have been trained through the induction process in their mandatory obligations under section 20 of the NSW OHS Act and Managers section 8 of the NSW OHS Act. In addition, all staff where exposed to the essential elements of the NSW Workplace Injury Management and Workers Compensation Act.

LHPA Workers Compensation/Injury Statistics

Total number of claims 1 July 2010 to 30 June 2011 32

Total claims open as of 30 June 2011 18

Nature of claim Number of claims

Trip/Fall same level 9

Hit by/caught between object 7

Manual handling 8

Foreign body in eye 2

Stress/Psychological 4

Vehicle accident 2

Total 32

28

STATISTICAL SNAPSHOTS

Stock figures

Authority Alpacas Beef cattle Camels Dairy cattle Deer Emus Goats Horses Llamas Ostrich Pigs Sheep

Central North 1644 655611 456 17353 1461 166 18927 12664 303 8 9074 1273234

Central West 953 293897 430 10779 46 120 17974 4418 36 58 12089 1994169

Cumberland 4418 119980 131 34608 1095 210 6258 23812 42 5 4177 17766

Darling 52 68393 87 1225 0 0 99735 372 0 0 128 832069

Hume 2014 444890 19 13232 1363 113 6858 7007 123 25 8306 2105770

Lachlan 1621 190787 32 13853 242 36 14082 4500 25 28 80289 2962139

Mid Coast 1935 461393 488 62372 1042 27 6916 23621 209 170 3510 75919

New England 1325 686939 1262 12822 1611 65 13307 6749 177 55 1290 1904808

North Coast 897 366005 160 26580 320 40 2353 9174 177 16 15347 5913

North West 219 379489 438 5651 21 894 11982 4769 27 2 11176 849970

Riverina 981 207562 14 42966 926 265 6772 2573 22 191 60764 1871092

South East 2599 166020 342 26920 439 1019 11487 6463 71 8 1438 944648

Tablelands 7624 355994 526 9626 2711 12 20096 12397 516 22 3868 2619713

Western 15 113948 564 109 449 1 68623 560 0 1 143 1669270

 Total 26297 4510908 4949 278096 11726 2968 305370 119079 1728 589 211599 19126480 These stock figures are as at 30 June 2011 and are collated from the information landholders provide when they complete their annual Land and Stock returns. Note: A cattle herd refers to a holding with five or more head of cattle, a flock is 50 or more head of sheep and a pig herd comprises one or more pigs.

For comparative reasons please note that the 2010 stock figures listed in the 2009-10 Annual Report contained significant errors that overstate stock figures.

29

Holdings and rates levied 2010-11

Authority General rates levied Animal health rates levied Pest rates levies Total rates levied

Central North 1,894,327 905,069 623,401 3,422,797

Central West 1,369,599 723,524 411,262 2,504,385

Cumberland 1,110,342 380,200 276,100 1,766,642

Darling 331,340 131,235 125,646 588,221

Hume 1,365,317 1,131,352 574,590 3,071,259

Lachlan 1,503,064 1,082,879 529,818 3,115,761

Mid Coast 1,521,340 826,769 514,022 2,862,131

New England 1,371,656 981,094 519,856 2,872,606

North Coast 1,219,632 622,797 360,555 2,202,984

North West 1,491,343 710,044 443,140 2,644,527

Riverina 1,419,039 868,830 478,314 2,766,183

South East 1,490,963 655,222 260,173 2,406,358

Tablelands 1,859,257 1,213,476 623,005 3,695,738

Western 561,486 129,354 155,827 846,667

TOTAL 18,508,705 10,361,845 5,895,709 34,766,259

Holding and carrying capacity by authority district

Authority District Area (ha)

No. of rateable holdings

No. animal health ratepayers

Notional carrying capacity

Minimum rateable area (ha)

Central North 4,630,141 12,146 8,360 12,383,447 10

Central West 5,117,203 6,903 5,090 8,336,551 10

Cumberland 2,142,067 14,051 8,831 2,917,050 10

Darling 11,628,392 877 736 3,068,297 40

Hume 3,149,592 8,207 6,494 12,276,922 10

Lachlan 4,334,441 7,952 6,100 11,135,819 10

Mid Coast 3,523,674 17,854 10,030 9,178,087 10

New England 3,645,102 6,895 5,605 11,568,428 10

North Coast 2,287,654 14,064 6,792 7,400,750 10

North West 6,917,238 5,692 3,914 9,971,771 10

Riverina 6,527,790 7,370 5,012 10,316,008 20

South East 3,339,446 10,316 5,915 5,252,226 10

Tablelands 3,188,482 15,186 10,339 11,608,195 10

Western 19,709,072 899 749 3,857,537 40

30

STAKEHOLDER RELATIONSHIPS

Legislative changes impacting on LHPAs

The most important new legislation affecting LHPAs is the Rural Lands Protection Regulation 2010, which commenced on 1 September 2010, replacing the former Rural Lands Protection (General) Regulation 2001. The new Regulation was prepared under the requirements of the Subordinate Legislation Act 1989.

The amendments in the new Regulation were aimed at better cost recovery for LHPAs, improved management of travelling stock reserves, addressing issues raised about the previous year’s election process and allowing for the alteration of divisional boundaries to ensure fair and representative future elections.

The commencement of the Government Information (Public Access) Act 2009 (GIPPA) from 1 July 2010 also has had an impact on LHPAs operations. That Act replaced the former Freedom of Information Act 1989. The new Act required various actions by LHPAs in fulfilling its requirements. For example, the mandatory proactive release of certain information held by LHPAs was a new initiative to be addressed.

Complaints management

A complaints register is kept by each authority and by the State Council. The LHPAs are committed to responding to complaints and other inquiries in a timely and satisfactory manner and use feedback from landholders and other community members to improve service delivery and communication.

During 2010-11 the organisation responded to 535 complaints – 361 at authorities and 174 at State Council (see table at right for summary of complaints). This is significantly lower than the 2009-10 period. Over 90% of complaints related to rates. Of the 134 complaints to the State Council about rating, 96 of them involved correspondence to the NSW Minister for Primary Industries. Most of these complaints were from landholders who objected to the requirement to pay rates under the Act.

In response to such complaints the Policy Council established a working party to review the rating system. The working party’s activities were suspended because of a fundamental review of LHPAs conducted by Mr Terry Ryan in the second half of 2011. At the time of writing, the outcome of Mr Terry Ryan’s review is yet to be announced.

Written complaints received by authorities and the State Council during 2010-2011:

LHPA Number of complaints and topic

Central North

15 concerning rates

Six concerning a range of other issues

Central West Nil concerning rates

One complaint about stock on a TSR

Cumberland 133 concerning rates

Darling Nil concerning rates

Two concerning various other issues

Hume 14 concerning rates

Nine concerning TSR fencing and annual returns

Lachlan One concerning rates summons

One concerning sheep lice policy

Mid Coast

89  concerning rates

24 concerning pest animal control, cattle’s right of way on roads, stock diseases and other matters

New England

Seven concerning rates

Five (from one person) concerning a TSR fence

North Coast 35 concerning rates

13 concerning a range of other issues

North West Eight concerning rates

Two concerning sheep disease issues

Riverina Seven concerning rates

Five concerning a range of other issues  

South East 54 concerning rates

48 concerning a range of other issues

Tablelands Nil complaints

Western Two concerning rates

One about sheep from Western Australia

State Council

134 concerning rates

40 concerning other topics, mainly involving TSR fencing, wild dog problems and stock on roads.

31

Financial performance and position of authorities 32

Financial performance 32

Financial position 32

State Council Financial Report 34

Introduction 34

Consultants 35

Consolidated financial report 36

Statement of comprehensive income 36

Statement of changes in equity 37

Statement of financial position 38

Statement of cash flows 39

Notes to the Financial Statements Note 1. Significant Accounting Policies 40

Note 2. Revenue 47

Note 3. Gain/Loss on Sale of Assets 47

Note 4. Expenditure 47

Note 5. Cash and Other Financial Assets 49

Note 6. Receivables 50

Note 7. Other Current Assets 51

Note 8. Property, Plant and Equipment 51

Note 9. Intangible Assets 53

Note 10. Payables 53

Note 11. Provisions 54

Note 12. Commitment of Expenditure and Receivables 54

Note 13. Related Party Transactions 55

Note 14. Consolidated Entities 55

Note 15. Statement of Cash Flow Reconciliation 56

Note 16. Financial Instruments 57

Note 17. NSW Government Operating Grant 58

Note 18. Remuneration of Auditor 58

Note 19. Key Management and Directors’ Remuneration 59

Note 20. Retained Earnings 59

Note 21. Contingent Liabilities 59

Note 22. Subsequent Events 59

FINANCIALS

32

FINANCIAL PERFORMANCE AND POSITION

Financial performance of the LHPAs

Authority Income 2011 Expenditure 2011 Net result 2011

Central North 4,475,193 4,474,305 888

Central West 3,522,519 3,950,436 -427,917

Cumberland 2,400,433 2,445,655 -45,222

Darling 1,046,320 1,549,569 -503,249

Hume 4,076,286 4,275,949 -199,663

Lachlan 4,019,307 4,272,157 -252,850

Mid Coast 3,881,881 4,065,939 -184,058

New England 3,907,567 4,233,304 -325,737

North Coast 2,952,885 2,665,764 287,121

North West 4,557,485 4,568,598 -11,113

Riverina 4,112,043 4,685,121 -573,078

South East 3,292,165 3,326,189 -34,024

Tablelands 4,808,362 5,355,231 -546,869

Western 1,394,655 1,684,467 -289,812

Total 48,447,101 51,552,684 -3,105,583

Financial position of the LHPAs

Authority Total Assets June 2011 ($)

Total Assets June 2010 ($)

Total Liabilities June 2011 ($)

Total Liabilities June 2010 ($)

Equity June 2011 ($)

Equity June 2010 ($)

Central North 9,698,217 8,892,175 1,405,813 1,008,320 8,292,404 7,803,855

Central West 6,306,792 6,607,324 952,489 786,715 5,354,303 5,820,609

Cumberland 3,716,623 3,777,037 723,875 724,332 2,992,748 3,052,705

Darling 3,535,331 3,856,594 413,430 254,494 3,121,901 3,602,100

Hume 7,476,411 7,382,942 1,363,314 1,000,135 6,113,097 6,382,807

Lachlan 7,180,118 7,252,475 2,053,692 1,542,701 5,126,426 5,709,774

Mid Coast 7,376,950 7,721,056 1,171,343 1,417,858 6,205,607 6,303,198

New England 7,909,995 8,285,052 1,413,377 1,326,509 6,496,618 6,958,543

North Coast 5,665,827 5,006,958 842,337 818,605 4,823,490 4,248,353

North West 12,902,567 12,629,886 1,430,766 1,367,758 11,471,801 11,262,128

Riverina 7,986,704 8,231,089 1,483,620 1,275,918 6,503,084 6,955,171

South East 4,713,821 3,870,251 838,274 938,771 3,875,547 2,931,480

Tablelands 6,696,965 7,582,331 1,559,419 1,905,107 5,137,546 5,677,224

Western 3,359,976 3,655,854 436,495 501,229 2,923,481 3,154,625

Total 94,526,297 94,811,024 16,088,244 14,948,452 78,438,053 79,862,572

33

Restricted components of the total cash reserves ($38.92 million) include:

■ $14.43 million rates in advance to fund expenditure from July to December 2011;

■ $7.7 million in eligible staff entitlements; and

■ $1.9 million in unspent grants.

This leaves approximately $15 million for other provisions, including capital asset renewal projects whereby the depreciation charges alone are approximately $20 million (majority relating to TSR capital asset renewal). This position is expected to change should the defined benefits superannuation holiday cease.

Points to note include:

■ Thirteen of the 14 authorities have total expenditure (including depreciation) exceeding income. This reflects a growing issue where deficits are becoming increasingly common as expenditure growth continues to outpace revenue growth.

■ The total rates income for Animal Health and General has remained virtually static over the last three years.

■ Most authorities are spending between 85-90% of their Animal Health and General rates income on staff costs plus motor vehicles, and three are spending more than their rates income on these costs.

■ If the Pest Insect Levy (PIL) expenditure is excluded LHPAs expenditure on staff costs plus motor vehicles represents between 38-70% of total expenditure.

■ If the PIL expenditure and income is excluded Animal Health and General rates income account for 64% of total expenditure.

■ Total cash reserves for LHPAs at 30 June 2011 were $38.92 million.

34

STATE COUNCIL FINANCIAL REPORT

Introduction

This overview of the financial performance and position of the State Council is based on the information as presented in the accompanying unaudited financial report for the year ended 30 June 2011.

The reporting period

The report covers the twelve month period ended 30 June 2011.

Financial performance of State Council

The State Council’s net operating result for the financial period was a deficit of $481,000. For the prior 18 month period, State Council recorded a deficit of $1.12 million. The deficit recorded for the 2011 year includes redundancy costs associated with the restructure of the corporate services functions. These costs amounted to $178,500.

In the 2010-11 year the State Council resolved to cap increases in charges to authorities to CPI given authority rate capping. This contributed to the State Council deficit operating result.

Income for the year was $4.72 million. Sources of funds include subscriptions from the 14 authorities, revenue from providing shared services to the authorities ($1.85 million and $1.48 million respectively), and government grants ($675,000). Together, these sources make up a significant proportion (85%) of State Council’s income for the reporting year.

State Council sets the budget and the subscriptions are allocated annually by the Policy Council, through a system by which subscriptions are charged to the authorities and fund the operations of the office of the State Council. Grant revenue was attributed to the operating grant received from Industry and Investment NSW (now the NSW DPI).

State Council’s revenues and expenditure is reported in the Statement of Comprehensive Income on page 36 of this report.

Overall financial position

State Council reports a net worth of $1.23 million.

The balance sheet shows that the overall cash position has decreased from $2.39 million in June 2010 to $1.89 million at June 2011 and that State Council holds $1.2 million in funds unrestricted by external commitments. Internal restrictions on these funds include:

■ employee entitlements

■ 2011-12 planned operating deficit

■ maintenance of adequate working capital.

State Council reports no contingent liabilities or after balance date events that may affect its financial position.

Investment performance

State Council has $861,000 in secured funds invested with IMB Banking and Financial Services and Tcorp at year end, returning an average of 5 per cent per annum. Total return on investments for the financial year was $124,810.

35

ConsultantsThe following tables outline consultants engaged by State Council during this and the previous reporting period:

Consultants less than $30,000

Nature of consultancy

Number of consultants 2009-10 $

2010-11 $

Media Monitoring 1 46 ,118 10,680

Human Resource Management 3 7,949 60,663

RLPB Reform Initiatives 1 52,757 11,520

Process Review 2 - 8,642

Legal 3 14,901 3,922

Total number of consultancies less than $30,000 10 121,725 95,427

Consultants above $30,000 Consultant Nature of consultancy No. 2009-10

$ 2010-11

$

Price Waterhouse Coopers Project management 1 377, 116

Gurango IT software and development 1 498, 529

Watermark Search International* Interim CEO Services 1 - 200,700

Watermark Search International CEO Recruitment Services 1 - 32,636

Red River System development 1 113,050 31,500

GQ-AAS IT network architecture 1 80,645

Internal Audit Bureau of NSW Compliance Review 1 - 69,362

Mercer Staffing structure 1 57,386

Inspirational Workplaces Change management 1 55,045

Saatchi and Saatchi LHPA branding 1 43,542

Tamara James Interim HR Manager Services 1 - 33,915

Total number of consultants above $30,000 11 1,225,313 368,113

* The nature of this consultant related to the continuation of the RLPB reform process.

State Council audit

The State Council is scheduled under the Public Finance and Audit Act 2001 and the Auditor General conducts the financial audit. At the time of completion of the 2010-11 Annual Report the audit was yet to occur.

36

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2011

State Management Council

Note Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Revenue from Continuing Operations

Recoveries from Authorities and other Agencies 2(a) 2 030 297 2 276 257 2 030 297 2 276 257General Subscriptions from Authorities 995 984 1 377 948 995 984 1 377 948IT Subscriptions from Authorities 850 500 1 167 805 850 500 1 167 805NSW Government Operating Grant 17 675 305 655 636 675 305 655 636Interest 124 810 138 786 124 810 138 786Capital Grant-Stock Routes Capital Works Fund - 78 000 - 78 000Other Income 2(b) 14 666 28 355 14 666 28 355Government Grant- Rural Lands Protection Board Reform - 780 846 - 780 846Government Grant- 1080 and Pindone Landholder Training - 22 300 - 22 300Profit on Sale of Assets 31 278 1 614 31 278 1 614

4 722 840 6 527 546 4 722 840 6 527 546

Expenditure from Continuing Operations

Personnel Services Expenses - - 3 158 308 3 986 450 Employee Related Expenses 4(a) 3,158,308 3 986 450 - - Outside Services 4(b) 393,453 275 153 393 453 275 153 RLPB Reform 4(c) 502,717 1 612 255 502 717 1 612 255 Other 4(d) 302,608 444 333 302 608 444 333 Information Technology 478,488 762 166 478 488 762 166 Industry/State Council Committees - 3 928 - 3 928 State Council Meetings 177,809 207 244 177 809 207 244 Sitting Fees - 37 578 - 37 578 Depreciation 49,217 91 502 49 217 91 502 Telephone and Printing 42,399 58 489 42 399 58 489 Motor Vehicle costs 13,537 30 838 13 537 30 838 Chairman and Deputy Chairman Allowances 40,000 54 000 40 000 54 000 Stationery & Office Supplies 17,233 49 373 17 233 49 373 Audit Fees 18 26,000 35 000 26 000 35 000 Loss on Sale of Assets 3 1,700 - 1 700 -

5,203,470 7 648 309 5 203 470 7 648 309

( 480 630) (1 120 763) ( 480 630) (1 120 763)Deficit from ordinary activities attributable to the entity

Consolidated Entity

The accompanying notes form part of these financial statements

Statement of comprehensive Income for the year ended 30 June 2011

37

State Management Council

Note Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $

Deficit for the period ( 480 630) (1 120 763) ( 480 630) (1 120 763)Total recognised income and expense for the period ( 480 630) (1 120 763) ( 480 630) (1 120 763)

Attributable to Equity ( 480 630) (1 120 763) ( 480 630) (1 120 763)

Effects of changes in accounting policy - - - -

Changes in Equity

State Management Council

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $

Balance at the beginning of the period 1 713 810 2 834 573 1 713 810 2 834 573Deficit for the period ( 480 630) (1 120 763) ( 480 630) (1 120 763)

Balance at the end of the period 1 233 180 1 713 810 1 233 180 1 713 810

Consolidated Entity

Consolidated Entity

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2011

The accompanying notes form part of these financial statements.

Consolidated statement of changes in equity for the year ended 30 June 2011

38

STATE MANAGEMENT COUNCIL OF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011

State Management Council

Note 30 June 2011 30 June 2010 30 June 2011 30 June 2010Assets $ $ $ $Current AssetsCash and Cash Equivalents 5 1 735 669 997 938 1 735 669 997 938Other Financial Assets 5 150 000 1 400 000 150 000 1 400 000Trade and other Receivables 6 101 841 305 747 101 841 305 747Other Current Assets 7 3 149 21 701 3 149 21 701

Total Current Assets 1 990 659 2 725 386 1 990 659 2 725 386

Non-Current AssetsProperty, Plant and Equipment 8 82 745 119 866 82 745 119 866Intangible Assets 9 32 419 11 256 32 419 11 256

Total Non-Current Assets 115 164 131 122 115 164 131 122

Total Assets 2 105 823 2 856 508 2 105 823 2 856 508

LiabilitiesCurrent liabilitiesTrade and other Payables 10 616 685 724 149 616 685 724 149Provisions 11 255 958 418 549 255 958 418 549

Total Current Liabilities 872 643 1 142 698 872 643 1 142 698

Total Liabilities 872 643 1 142 698 872 643 1 142 698

Net Assets 1 233 180 1 713 810 1 233 180 1 713 810

EquityRetained Earnings 1 233 180 1 713 810 1 233 180 1 713 810Total Equity 1 233 180 1 713 810 1 233 180 1 713 810

Consolidated Entity

The accompanying notes form part of these financial statements

Statement of financial position as at 30 June 2011

39

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2011

State Management Council

Note Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $

Cash flows from operating activitiesReceiptsSubscriptions from Boards 1 984 003 2 545 753 1 984 003 2 545 753Interest received 137 739 122 235 137 739 122 235Grants and Contributions 919 131 3 806 281 919 131 3 806 281Recoveries (incl.NLIS) 1 530 304 2 287 177 1 530 304 2 287 177Other income 261 333 28 355 261 333 28 355

4 832 510 8 789 801 4 832 510 8 789 801

PaymentsEmployee Related 3 534 966 3 817 264 3 534 966 3 817 264Payments to Suppliers 1 806 133 3 695 054 1 806 133 3 695 054

5 341 099 7 512 318 5 341 099 7 512 318

Net cash flows from / (used in) operating activities 15(b) ( 508 589) 1 277 483 ( 508 589) 1 277 483

Cash flows from investing ativitiesReceiptsProceeds from sale of assets 89 629 26 200 89 629 26 200

89 629 26 200 89 629 26 200

PaymentsPurchase of Property, Plant and Equipment 93 309 76 924 93 309 76 924

93 309 76 924 93 309 76 924

Net cash used in investing activities ( 3 680) ( 50 724) ( 3 680) ( 50 724)

Cash flows from financing activities - - - - Net cash provided from financing activities - - - -

( 512 269) 1 226 759 ( 512 269) 1 226 759

2 397 938 1 171 179 2 397 938 1 171 179

Cash and Cash Equivalents at the end of the period 15(a) 1 885 669 2 397 938 1 885 669 2 397 938

Consolidated Entity

Net increase/(decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents at the beginning of the period

The accompanying notes form part of these financial statements

Statement of cash flows for the year ended 30 June 2011

40

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 30 JUNE 2011

1. SIGNIFICANT ACCOUNTING POLICIES

The Reporting Entity

The State Management Council of Livestock Health and Pest Authorities (State Management Council) is a statutory body constituted under the Rural Lands Protection Act 1998 (RLP Act). State Management Council's main office is located at 161 Kite Street, Orange NSW 2800. Management has applied its judgement and has assessed that State Management Council meets the definition of a not for profit entity for the purposes of accounting standards.

The reporting period for State Management Council has been aligned with that adopted by the Livestock Health and Pest Authorities from their formation on 1 January 2009. The comparative information presented in this report refers to the eighteen month period from 1 January 2009 to 30 June 2010.

Statement of Compliance

State Management Council has prepared financial statements in accordance with AIFRS. Australian Standards include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial statements and notes of State Management Council comply with the International Financial Reporting Standards (IFRS) except for exemptions allowed under AASB 1 and options provided for not for profit entities.

Basis of Preparation

The financial statements are general purpose financial statements which have been prepared in accordance with the: (i) applicable Australian Accounting Standards which include Australian equivalents to International Financial Reporting Standards (AIFRS) (ii) other authoritative pronouncements of the Australian Accounting Standards Board (AASB); (iii) requirements of the Rural Lands Protection Act 1998 (iv) requirements of the State Management Council accounting policies (v) requirements of the Public Finance and Audit Act 1983 and the Public Finance and Audit Regulation 2010 (vi) specific directions issued by the Treasurer.

Where there are inconsistencies between the above requirements, the legislative provisions have prevailed.

The following is a summary of the material accounting policies adopted by State Management Council in the preparation of the financial statements. The accounting policies have been consistently applied unless otherwise stated.

Reporting Basis and Conventions

The financial statements have been prepared on an accrual basis and are based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities to which the fair value basis has been applied.

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

The financial statements are expressed in Australian currency and do not take into account changing monetary values.

Assets class: Useful life: Motor Vehicles 5 years Office Furniture and Fittings 6 years Office Plant and equipment 5 years

AASB 9 Financial Instruments (December 2009), AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9

AASB 124 and AASB 2009-12 regarding related party transactions AASB 13 Fair Value Measurement AASB 10 Consolidated Financial Statements AASB 11: Joint Arrangements AASB 12 :Disclosure of Interests in Other Entities AASB 127: Separate Financial Statements AASB 128:Investments in Associates and Joint Ventures

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

AASB 1054 Australian Additional Disclosures, AASB 2009-14 Amendments to Australian Interpretation –Prepayments of a Minimum Funding Requirement AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual

Improvements Project AASB 2010-5 Amendments to Australian Accounting Standards AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial

Assets AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying

Assets

AASB 2010-9 Amendments to Australian Accounting Standards – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters

AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project and AASB 2011-2 Amendments to Australian

AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

AASB 2011-5 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other

Comprehensive Income AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure

Notes to and forming part of the accounts for the year ended 30 June 2011

41

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 30 JUNE 2011

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

The accounting policies have been consistently applied, unless otherwise stated.

Accounting Policies

a) Revenue Recognition

Revenue is recognised when it is probable that the economic benefits will flow to State Management Council, and the amount of revenue can be reliably measured. Additional comments regarding the accounting policies for the recognition of revenue are discussed below:

(i) Sale of Goods and Services

Revenue from the sale of goods and services comprises of revenue from the provision of products and services, i.e., user charges.

Revenue from the sale of goods is recognised when all the following conditions are satisfied:

* State Management Council has transferred to the buyer the significant risks and rewards of ownership of the goods * State Management Council retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold * the amount of revenue can be measured reliably * it is probable that the economic benefits associated with the transaction will flow to State Management Council * the costs incurred or to be incurred in respect of the transaction can be reliably measured.(ii) Rendering of services

Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract.

(iii) Investment IncomeInterest revenue is recognised as it accrues.

(iv) Grant Income

Grants are not recognised until there is reasonable assurance that State Management Council will comply with the conditions attaching to them and that the grants will be received.

Grants that have conditions attached to them are recognised as revenue over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis.

Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving financial support to State Management Council with no future related costs are recognised in the profit and loss in the period in which they become receivable.

Grants that relate to future periods are represented as unspent, and recorded as a liability in the Statement of Financial Position.

(v) Subscriptions

Subscriptions are contributions from the 14 Livestock Health and Pest Authorities to fund the operating costs of State Management Council and are recognised as revenue when invoiced.

Assets class: Useful life: Motor Vehicles 5 years Office Furniture and Fittings 6 years Office Plant and equipment 5 years

AASB 9 Financial Instruments (December 2009), AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9

AASB 124 and AASB 2009-12 regarding related party transactions AASB 13 Fair Value Measurement AASB 10 Consolidated Financial Statements AASB 11: Joint Arrangements AASB 12 :Disclosure of Interests in Other Entities AASB 127: Separate Financial Statements AASB 128:Investments in Associates and Joint Ventures

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

AASB 1054 Australian Additional Disclosures, AASB 2009-14 Amendments to Australian Interpretation –Prepayments of a Minimum Funding Requirement AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual

Improvements Project AASB 2010-5 Amendments to Australian Accounting Standards AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial

Assets AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying

Assets

AASB 2010-9 Amendments to Australian Accounting Standards – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters

AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project and AASB 2011-2 Amendments to Australian

AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

AASB 2011-5 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other

Comprehensive Income AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure

Notes to and forming part of the accounts for the year ended 30 June 2011

42

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 30 JUNE 2011

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

b) Cash and Financial Assets

(i) Financial Assets and LiabilitiesFinancial instruments give rise to a financial asset or liability. For State Management Council these financial instruments include cash and cash equivalents, investments, receivables, payables and borrowings. The information provided in the Notes discloses risks associated with the financial instruments. The accounting policy for each class of financial instruments is stated below.

(ii) Cash and Cash Equivalents

Cash and cash equivalents comprise of cash on hand, cash in banks, term deposits maturing within three months and investments in money market instruments. Bank overdrafts are shown within borrowings in current liabilities in the Statement of Financial Position.(iii) Financial Assets at Fair Value through to Profit or Loss

Financial assets are initially recognised at fair value. Gains or losses emanating from mark to market on these assets are recognised in the Statement of Comprehensive Income.

The management of these investments is in accordance with documented risk management strategy and the information about these assets is provided on that basis to key management personnel.

c) Property, Plant and EquipmentProperty, plant and equipment costing $2,000 and above is capitalised. Items of Property, Plant and Equipment are recorded within asset classes.

The cost method of accounting is used for the initial recording of all acquisition of assets controlled by State Management Council. Cost is determined as the fair value of the assets given as consideration plus the costs incidental to the acquisition.

Fair value means the amount for which an asset (at its highest and best use) could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm’s length transaction.

Land and buildings which have been revalued will continue to be valued at fair value.

The carrying amount of Plant and Equipment is reviewed annually by State Management Council to ensure that it is not in excess of fair value.

d) Depreciation of Non-Current Assets

Depreciation is provided for on a straight line basis for all depreciable assets so as to write-off the depreciable amount of each asset as it is consumed over its useful life to State Management Council.

Assets class: Useful life: Motor Vehicles 5 years Office Furniture and Fittings 6 years Office Plant and equipment 5 years

AASB 9 Financial Instruments (December 2009), AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9

AASB 124 and AASB 2009-12 regarding related party transactions AASB 13 Fair Value Measurement AASB 10 Consolidated Financial Statements AASB 11: Joint Arrangements AASB 12 :Disclosure of Interests in Other Entities AASB 127: Separate Financial Statements AASB 128:Investments in Associates and Joint Ventures

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

AASB 1054 Australian Additional Disclosures, AASB 2009-14 Amendments to Australian Interpretation –Prepayments of a Minimum Funding Requirement AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual

Improvements Project AASB 2010-5 Amendments to Australian Accounting Standards AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial

Assets AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying

Assets

AASB 2010-9 Amendments to Australian Accounting Standards – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters

AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project and AASB 2011-2 Amendments to Australian

AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

AASB 2011-5 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other

Comprehensive Income AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure

Notes to and forming part of the accounts for the year ended 30 June 2011

43

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 30 JUNE 2011

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)e) Intangible Assets

Computer software and licences are classified as intangibles. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.

The useful life of intangible assets is assessed to be finite.

State Management Council’s intangible assets are amortised using the straight line method at 33.3%.

Fair value is assessed as the amount for which an asset (at its highest and best use) could be exchanged between a willing buyer and a knowledgeable, willing seller in an arm’s length transaction less selling costs.

Finite life intangible assets are tested for impairment where an indicator of impairment exists. For a not-for-profit entity with no cash generating units, the value in use, is the depreciated replacement cost of the asset.

f) Investments

Investments are recognised at cost with interest revenues recognised as they accrue. It is management’s judgement that the financial assets and investments of State Management Council will be held to maturity.

g) Inventories

Inventories are valued at the lower of cost and net realisable value.

h) Receivables

Receivables are recognised and carried at cost, based on the original invoice amount less a provision for any uncollectable debts.

Included within receivables and revenue are recoveries from other agencies that represents work undertaken by State Management Council on behalf of another NSW Government agency (including Livestock Health and Pest Authorities) for which State Management Council has invoiced reimbursement.

i) Provision for Doubtful Debts

An estimate of doubtful debts is made when State Management Council believes collection of the full amount is no longer possible.

Bad debts are written off as incurred.

j) Impairment of AssetsAt each reporting date, State Management Council reviews the carrying values of its assets to determine whether there is any indication that those assets have been impaired. Impairment losses are recognised in the Statement of Comprehensive Income.

Impairment loss is the amount by which the carrying amount exceeds the asset's recoverable amount. State Management Council estimates the assets recoverable amount to be the higher of fair value less selling cost and the value of the asset in use. For assets that are not part of a cash generating unit, the value in use, is the depreciated replacement cost of the asset.

k) PayablesThese amounts represent liabilities for goods and services provided to State Management Council and other amounts, including interest.

Interest is accrued over the period it becomes due.

Assets class: Useful life: Motor Vehicles 5 years Office Furniture and Fittings 6 years Office Plant and equipment 5 years

AASB 9 Financial Instruments (December 2009), AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9

AASB 124 and AASB 2009-12 regarding related party transactions AASB 13 Fair Value Measurement AASB 10 Consolidated Financial Statements AASB 11: Joint Arrangements AASB 12 :Disclosure of Interests in Other Entities AASB 127: Separate Financial Statements AASB 128:Investments in Associates and Joint Ventures

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

AASB 1054 Australian Additional Disclosures, AASB 2009-14 Amendments to Australian Interpretation –Prepayments of a Minimum Funding Requirement AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual

Improvements Project AASB 2010-5 Amendments to Australian Accounting Standards AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial

Assets AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying

Assets

AASB 2010-9 Amendments to Australian Accounting Standards – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters

AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project and AASB 2011-2 Amendments to Australian

AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

AASB 2011-5 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other

Comprehensive Income AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure

Notes to and forming part of the accounts for the year ended 30 June 2011

44

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 30 JUNE 2011

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

l) Leases

A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor effectively retains all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is recognised at its fair value at the inception of the lease or if lower, at the present value of the minimum lease payments. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are charged as expenses on a straight line basis over the life of the lease. Contingent lease rentals are expensed in the period in which they are incurred.

m) Principles of Consolidation

The subsidiary of State Management Council is State Management Council of Livestock Health and Pest Authorities Division of the Government of NSW (State Management Council Division). StateManagement Council Division is a special purpose entity established under the Public Sector Employment Legislation Amendment Act 2006 (PSELAA) on 17 March 2006. State Management Council exercised control over the State Management Council Division from this date. The consolidated financial statements are comprised of the results of the State Management Council (parent entity) and the State Management Council Division from the date control commenced.

n) Operation of State Management Council under the Public Sector Employment Legislation Amendment Act (PSELAA)

Following the establishment of State Management Council Division under PSELAA, existing staff of State Management Council became employed by the Government in Service of the Crown (instead of State Management Council).

A Memorandum of Understanding (MOU) between the State Management Council Division and State Management Council, in line with direction provided under Treasury Circular TC06/17 has been adopted. The directions contained in the Treasury Circular have been constructively applied by both parties throughout the reporting period. Operational policies and procedures are governed by State Management Council circulars.

As a result of the implementation of PSELAA the State Management Council does not report employment expenses and associated liabilities.

Amounts equalling employment expenses and liabilities are brought to account as 'personnel services' expenses and associated liabilities.

o) Personnel Services Liabilities - Employee Benefits(i) Personnel Services - Wages and SalariesLiabilities for personnel services are recognised and are measured as the amount unpaid at balance date.

(ii) Personnel Services - LeavePersonnel Services employee benefit liabilities are accrued on a pro-rata basis for annual and long service leave and are calculated using expected employee costs.

Assets class: Useful life: Motor Vehicles 5 years Office Furniture and Fittings 6 years Office Plant and equipment 5 years

AASB 9 Financial Instruments (December 2009), AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9

AASB 124 and AASB 2009-12 regarding related party transactions AASB 13 Fair Value Measurement AASB 10 Consolidated Financial Statements AASB 11: Joint Arrangements AASB 12 :Disclosure of Interests in Other Entities AASB 127: Separate Financial Statements AASB 128:Investments in Associates and Joint Ventures

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

AASB 1054 Australian Additional Disclosures, AASB 2009-14 Amendments to Australian Interpretation –Prepayments of a Minimum Funding Requirement AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual

Improvements Project AASB 2010-5 Amendments to Australian Accounting Standards AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial

Assets AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying

Assets

AASB 2010-9 Amendments to Australian Accounting Standards – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters

AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project and AASB 2011-2 Amendments to Australian

AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

AASB 2011-5 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other

Comprehensive Income AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure

Notes to and forming part of the accounts for the year ended 30 June 2011

45

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 30 JUNE 2011

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Personnel Services employee benefit liabilities are assessed at balance date, having regard to the expected liability and are calculated by the State Management Council Division using the short-hand method in accordance with Treasury Circular TC 07/04.

Personnel Services sick leave is not payable on termination of employment and therefore is not provided for.

Personnel Services employee benefit liabilities include on-costs such as superannuation and expenses that are consequential to the payment of employee leave entitlements such as payroll tax and workers' compensation insurance.

Both short-term and long-term provisions for Personnel Services employee benefits are recognised as current liabilities on the Statement of Financial Position. This is accordance with AASB 101 as State Management Council does not have an unconditional right to defer the settlement for a period of more than 12 months.

(iii) Personnel Services- Superannuation

The superannuation expense for the reporting period is the amount of the statutory contributions paid by State Management Council to the State Management Council Division for payment to the complying superannuation plan/s providing benefits employees. Staff are employed by the State Management Council Division, with State Management Council retaining the responsibility for funding the obligations arising from the employment relationship.

Liabilities for defined contribution superannuation schemes are recognised and are measured as the amount of outstanding statutory contributions unpaid at balance date.

p) Provisions

Provisions are made for liabilities that are of an uncertain amount or uncertain timing of settlement. State Management Council recognises provisions when there exists a present obligation, the future sacrifice of economic benefits is probable and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

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

Provisions are classified as short-term (expected to be settled within twelve months) and long term (not expected to be settled within twelve months from the reporting date).

q) Accounting for the Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except:

(i) the amount of GST incurred by State Management Council as a purchase that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense

(ii) Receivables and payables are stated with the amount of GST included.

Assets class: Useful life: Motor Vehicles 5 years Office Furniture and Fittings 6 years Office Plant and equipment 5 years

AASB 9 Financial Instruments (December 2009), AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9

AASB 124 and AASB 2009-12 regarding related party transactions AASB 13 Fair Value Measurement AASB 10 Consolidated Financial Statements AASB 11: Joint Arrangements AASB 12 :Disclosure of Interests in Other Entities AASB 127: Separate Financial Statements AASB 128:Investments in Associates and Joint Ventures

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

AASB 1054 Australian Additional Disclosures, AASB 2009-14 Amendments to Australian Interpretation –Prepayments of a Minimum Funding Requirement AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual

Improvements Project AASB 2010-5 Amendments to Australian Accounting Standards AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial

Assets AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying

Assets

AASB 2010-9 Amendments to Australian Accounting Standards – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters

AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project and AASB 2011-2 Amendments to Australian

AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

AASB 2011-5 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other

Comprehensive Income AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure

Notes to and forming part of the accounts for the year ended 30 June 2011

46

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 30 JUNE 2011

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

r) Accounting Standards and interpretations issued but not yet effectiveCertain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2011 reporting period. The following new Accounting Standards and Interpretations have not yet been adopted and are not yet effective:

It is considered that the impact of these new Standards and Interpretations in future periods will not materially impact on the financial statements of State Management Council.

s) Significant EventsOn 21 July 2011, the Minister for Primary Industries, Katrina Hodgkinson, announced a comprehensive review of the Livestock Health and Pest Authorities model. The review will examine the objectives of the Rural Lands Protection Act 1998 and whether the provisions of the Act and the associated Rural Lands Protection Regulation 2010 are the best way to achieve those objectives. The review is being conducted by an independent consultant, Mr Terry Ryan, and a final report is expected to be presented to the NSW Minister for Primary Industries in the first half of the 2012 calendar year. As at the date of these financial statements the outcome of the review is unknown and accordingly these financial statements do not include the adjustments, if any, that may be required if the review recommends a restructure of the Livestock Health and Pest Authorities model.

Assets class: Useful life: Motor Vehicles 5 years Office Furniture and Fittings 6 years Office Plant and equipment 5 years

AASB 9 Financial Instruments (December 2009), AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9

AASB 124 and AASB 2009-12 regarding related party transactions AASB 13 Fair Value Measurement AASB 10 Consolidated Financial Statements AASB 11: Joint Arrangements AASB 12 :Disclosure of Interests in Other Entities AASB 127: Separate Financial Statements AASB 128:Investments in Associates and Joint Ventures

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

AASB 1054 Australian Additional Disclosures, AASB 2009-14 Amendments to Australian Interpretation –Prepayments of a Minimum Funding Requirement AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual

Improvements Project AASB 2010-5 Amendments to Australian Accounting Standards AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial

Assets AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying

Assets

AASB 2010-9 Amendments to Australian Accounting Standards – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters

AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project and AASB 2011-2 Amendments to Australian

AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

AASB 2011-5 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other

Comprehensive Income AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure

Notes to and forming part of accounts for the year ended 30 June 2011

47

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

State Management Council

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $2. Revenue

(a) Recoveries from Authorities and other AgenciesAuthorities - Shared Services Fee* 1 483 931 1 900 000 1 483 931 1 900 000Authorities - IT Recoveries 277 776 358 041 277 776 358 041LHPA Division: Contract Labour 1 781 12 621 1 781 12 621Authorities, II NSW, Fisheries, Natural Res. 22 983 5 000 22 983 5 000Other Recoveries 243 826 595 243 826 595

2 030 297 2 276 257 2 030 297 2 276 257

* Centralised administration and the provision of shared services commenced on 1 January, 2009. Under the arrangementState Management Council provides accounting, treasury, payroll and land administrative services and support to theauthorities. The cost of the service (approximately $1.5M for the 12 month period) was allocated on a usage basis, and recovered from the 14 authorities.

(b) Other Income

Additional Administration Fees - 12 143 - 12 143Sundry 14 666 16 212 14 666 16 212

14 666 28 355 14 666 28 355

3. Profit / Loss on Sale of AssetsProceeds from sale of Plant & Equipment 89 629 26 200 89 629 26 200Written Down Value of Assets Sold ( 60 051) ( 24 586) ( 60 051) ( 24 586)Profit / (Loss) on disposal 29 578 1 614 29 578 1 614

4. Expenditure

(a) Personnel Services / Employee Related Labour Hire (Salaries and Wages) - - 2 664 384 3 302 654 Labour Hire (Superannuation) - - 247 013 291 352 Labour Hire (Payroll Tax and FBT) - - 137 102 123 937 Labour Hire (Workers Compensation) - - 2 579 20 398 Labour Hire (Other Costs) - - 107 230 248 109 Employee Related Expenses 3 158 308 3 986 450 - -

3 158 308 3 986 450 3 158 308 3 986 450

(b) Outside Services RedRiver: Software Development 46 139 142 914 46 139 142 914 Media Services 22 239 46 119 22 239 46 119 Employment Agency Services 155 078 66 426 155 078 66 426 Recruitment Expenses 49 734 - 49 734 - Human Resources 87 941 7 949 87 941 7 949 Other 32 322 11 745 32 322 11 745

393 453 275 153 393 453 275 153

Consolidated Entity

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)Notes to and forming part of the financial statements for the year ended 30 June 2011

48

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

State Management Council

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $

Consolidated Entity

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

4. Expenditure (Continued)

(c) RLPB Reform Expenditure Software Development & Implementation 11 520 428 222 11 520 428 222 Price Coopers Waterhouse - Project Mgt. - 377 116 - 377 116 IT Network Infrastructure 63 753 260 498 63 753 260 498 Internal / External Communications - 211 912 - 211 912 Staffing Structure - 108 500 - 108 500 Governance Structure - 89 191 - 89 191 LHPA Branding - 53 507 - 53 507 Staff Recruitment & Exit Costs - 38 905 - 38 905 Review of Centralised Function / Structure 200 700 - 200 700 - Redundancy Costs 216 645 - 216 645 - Centralised Service Startup Costs - 37 787 - 37 787 Other 10 099 6 617 10 099 6 617

502 717 1 612 255 502 717 1 612 255

(d) Other Property and Rent Expenses 185 305 267 874 185 305 267 874 Salary Reimbursements to Authorities 2 600 36 838 2 600 36 838 Legal Costs - 14 905 - 14 905 Doutbful Debts 24 894 - 24 894 - Sundry 61 131 73 727 61 131 73 727 Insurance 18 946 22 812 18 946 22 812 Advertising 9 732 28 178 9 732 28 178

302 608 444 333 302 608 444 333

Notes to and forming part of the financial statements for the year ended 30 June 2011

49

State Management Council

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $5. Cash and Other Financial Assets

Cash and Cash EquivalentsCash on hand 200 200 200 200Cash at bank 1 023 724 353 461 1 023 724 353 461

Cash at call 711 745 644 277 711 745 644 277Total Cash 1 735 669 997 938 1 735 669 997 938

Other Financial Assets Held to maturity 150 000 1 400 000 150 000 1 400 000Total Other Financial Assets 150 000 1 400 000 150 000 1 400 000

Total Cash and Other Financial Assets 1 885 669 2 397 938 1 885 669 2 397 938

Restrictions

External Restrictions

Grant- Stock Routes Capital Works Fund 1 148 249 148 249 78 249 78 249RLPB Reform 2 109 092 611 809 109 092 611 809

Total Restrictions 257 341 760 058 187 341 690 058

Unrestricted 1 628 328 1 637 880 1 698 328 1 707 880

Total Cash and Other Financial Assets 1 885 669 2 397 938 1 885 669 2 397 938

1 State Management Council holds $148,249 received from NSW DPI provided for the Stock Routes CapitalWorks Fund (SRCWF). This is the remainder of total grants of $630,000 and will be expended in 2011/12.

2 State Management Council received a $3millon dollar grant from the NSW Government to reform the RuralLands Protection Boards. Of this initial grant, $2.89million has been spent.

Consolidated Entity

FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

STATE MANAGEMENT COUNCIL OF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSNotes to and forming part of the financial statements for the year ended 30 June 2011

50

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

State Management Council

Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $6. Trade and other Receivables

Sundry Debtors 85 123 250 922 85 123 250 922Other Debtors 24 895 21 382 24 895 21 382PAYG, FBT & Payroll Tax 16 718 - 16 718 -GST Receivable - 33 444 - 33 444

126 736 305 747 126 736 305 747

less: Provision for Doubtful Debts ( 24 895) - ( 24 895) -

101 841 305 747 101 841 305 747

Receivables disclosed above include amounts (see below for aged analysis) that are past due at the endof the reporting period, against which State Management Council has recognised an allowance for doubtful receivables. There has not been a significant change in credit quality in connection with the sundry receivables, and the amounts are still considered recoverable. Amounts included in other debtors, due to their age may present some difficulties in terms of recovery. Ageing of past due but not impaired Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Sundry Debtors 31 days to 60 days 2 574 - 2 574 -61 days to 90 days 27 606 27 924 27 606 27 924

30 180 27 924 30 180 27 924

Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010$ $ $ $

Other Debtors: Charges31 days to 60 days - - - -61 days to 90 days - 21 382 - 21 382

- 21,382 - 21,382

Ageing of impaired trade receivables Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Sundry Debtors 18 months to less than 2 years - - - -

- - - -

Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010$ $ $ $

Other Debtors: Charges6 months to less than 1 year - - - -1 year to less than 2 years 20 995 - 20 995 -

20 995 - 20 995 -

FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Consolidated Entity

Notes to and forming part of the financial statements for the year ended 30 June 2011

51

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

State Management Council

Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $

FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Consolidated Entity

7. Other Current Assets

Accrued Income 812 21 701 812 21 701Prepayments 2 337 - 2 337 -

3 149 21 701 3 149 21 701

8.(a) Property, Plant and Equipment

Office Plant & Equipment - at Fair Value 69 899 69 899 69 899 69 899Accumulated depreciation ( 59 613) ( 46 374) ( 59 613) ( 46 374)

10 286 23 525 10 286 23 525

Office Furniture & Fitting - at Fair Value 33 700 33 700 33 700 33 700Accumulated depreciation ( 22 242) ( 11 121) ( 22 242) ( 11 121)

11 458 22 579 11 458 22 579

Motor Vehicles - at Fair Value 68,418 140 746 68 418 140 746Accumulated depreciation ( 7 417) ( 66 984) ( 7 417) ( 66 984)

61 001 73 762 61 001 73 762

Total Plant and Equipment - at Fair Value 172 017 244 344 172 017 244 344Less: Total Accumulated Depreciation ( 89 272) ( 124 479) ( 89 272) ( 124 479)

Total Plant & Equipment at Net Book Value 82 745 119 866 82 745 119 866

Notes to and forming part of the financial statements for the year ended 30 June 2011

52

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

8.(b) PROPERTY, PLANT AND EQUIPMENT - Reconciliations

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current reporting period are set out below.

Year Ended 18 Months to Year Ended 18 Months to Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010 30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $ $ $ $ $

Opening Balance 1 January 22 579 - 73 762 127 313 23 525 38 423 119 866 165 736Additions - 33 700 68 418 23 723 - 8 205 68 418 65 628Disposals - - ( 60 050) ( 24 586) - - ( 60 050) ( 24 586)Other Movement - - - - - - - -Depreciation for year ( 11 121) ( 11 121) ( 21 129) ( 52 688) ( 13 239) ( 23 103) ( 45 489) ( 86 912)

Balance at End of Period 11 458 22 579 61 001 73 762 10 286 23 525 82 745 119 866

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Motor Vehicles Plant/ Equipment TotalOffice Furniture & Fittings

Notes to and forming part of the financial statements for the year ended 30 June 2011

53

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

8.(b) PROPERTY, PLANT AND EQUIPMENT - Reconciliations

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current reporting period are set out below.

Year Ended 18 Months to Year Ended 18 Months to Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010 30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $ $ $ $ $

Opening Balance 1 January 22 579 - 73 762 127 313 23 525 38 423 119 866 165 736Additions - 33 700 68 418 23 723 - 8 205 68 418 65 628Disposals - - ( 60 050) ( 24 586) - - ( 60 050) ( 24 586)Other Movement - - - - - - - -Depreciation for year ( 11 121) ( 11 121) ( 21 129) ( 52 688) ( 13 239) ( 23 103) ( 45 489) ( 86 912)

Balance at End of Period 11 458 22 579 61 001 73 762 10 286 23 525 82 745 119 866

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Motor Vehicles Plant/ Equipment TotalOffice Furniture & Fittings

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

State Management Council

Note Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $9.(a) Intangible Assets

Intangible Assets -at Fair Value 191 307 166 416 191 307 166 416Accumulated depreciation ( 158 888) ( 155 160) ( 158 888) ( 155 160)

32 419 11 256 32 419 11 256

9.(b) Intangible Assets - ReconciliationsReconciliations of the carrying amounts of intangibles at the beginning and end of the currentreporting year are set out below.

Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $

Opening Balance 11 256 4 550 11 256 4 550Additions 24 891 11 296 24 891 11 296Depreciation for year ( 3 728) ( 4 590) ( 3 728) ( 4 590)

Closing Balance 32 419 11 256 32 419 11 256

Year Ended 18 Months to Year Ended 18 Months to

30 June 2011 30 June 2010 30 June 2011 30 June 2010

10. Trade and other Payables $ $ $ $

Trade Creditors 9 538 458 517 9 538 458 517GST Payable 97 571 - 97 571 - Unspent Grant Funds 148 249 78 249 148 249 78 249Accrued Charges 328 896 91 117 328 896 91 117PAYG, FBT & Payroll Tax - 63 835 - 63 835Personnel Services 32 431 32 431 32 431 32 431

616 685 724 149 616 685 724 149

FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Consolidated Entity

Notes to and forming part of the financial statements for the year ended 30 June 2011

54

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

State Management Council

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

11. Provisions $ $ $ $

Short-term Provision Recreation Leave 174 109 280 396 - -

174 109 280 396 - -Long-term ProvisionLong Service Leave 81 849 138 153 - -

81 849 138 153 - -

Provision for Employee Entitlement 255 958 418 549 - -

Personnel Services Provision - - 255 958 418 549

255 958 418 549 255 958 418 549

Aggregate employee benefits and related on-costsRecreation Leave 174 109 280 396 - -Long Service Leave 81 849 138 153 - -Accrued Salary, Wages and ELE Oncosts 10 32 431 32 431 - -

288 390 450 980 - -

12. Commitments for Expenditure

a) Capital Commitments

The consolidated entity has no capital expenditure committed at balance date.

b) Lease/Hire Commitments

The consolidated entity has leases/ hire expenditure committed at balance date.

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Not later than one year 9 303 104 710 9 303 104 710Later than one year but not later than five years 6 522 14 979 6 522 14 979

15 825 119 689 15 825 119 689

Lease commitments relate to computer equipment (servers, PC's and laptops) held under operating lease withDell Financial Services Australia. Lease equipment is returned upon expiration of the lease and includes GSTinput tax credits of $1 439 which are expected to be recoverable from the ATO.

c) Other Operating CommitmentsThere is no other operating expenditure committed at balance date.

d) Income ReceivableThe consolidated entity has no income receivable at balance date no appearing in the financial statements.

Consolidated Entity

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Notes to and forming part of the financial statements for the year ended 30 June 2011

55

STATE MANAGEMENT COUNCIL OF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

13. Related Party TransactionsIn accordance with the Rural Lands Protection Act, the affairs of State Management Council are managedby nine State Management Council Board Directors. The remuneration paid to Directors is set out in Note 19 Key Management and Director's Remuneration.

Other Related Party Transactions State Management Council has a related party relationship with State Management Council Division. State Management Council Division has a related party relationship with State Management Council.During the reporting period State Management Council Division provided personnel services to StateManagement Council. The expenses incurred by the State Management Council Division in providingthese services have been charged to State Management Council for the exact value of the costs incurredfor the period of $3 374 954.

The amount outstanding at the end of the year which was owed to the State Management CouncilDivision by State Management Council was $271 672.

14 Consolidated Entities Country of Incorporation Ownership

Subsidiaries 2011 2010State Management Council Division Australia 100% 100%

State Management Council Division was established as a special purpose entity under PSELAA on17 March 2006 and is controlled by State Management Council. Refer Note 1. Significant AccountingPolicies.

FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Interest

Notes to and forming part of the financial statements for the year ended 30 June 2011

56

STATE MANAGEMENT COUNCILOF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

15. Notes to the Statement of Cash Flows

(a) Reconciliation of Net Cash

State Management Council

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Cash at Bank 1 023 724 353 461 1 023 724 353 461Cash on hand 200 200 200 200Cash Management 711 745 644 277 711 745 644 277Other financial assets 150 000 1 400 000 150 000 1 400 000

1 885 669 2 397 938 1 885 669 2 397 938

(b) Reconciliation of Surplus/ (Deficit) to Year Ended 18 Months to Year Ended 18 Months to

net cash used in operating activities 30 June 2011 30 June 2010 30 June 2011 30 June 2010$ $ $ $

Operating Deficit ( 480 630) (1 120 763) ( 480 630) (1 120 763)Adjustment to Non-Current AssetDepreciation 49 217 91 502 49 217 91 502Doutbful Debts Expense 24 894 - 24 894 -(Gain)/Loss on Sale of Assets ( 29 578) ( 1 614) ( 29 578) ( 1 614)(Increase)/decrease in receivables 179 011 2 199 074 179 011 2 199 074(Increase)/decrease in other current assets 18 552 959 18 552 959

(Decrease)/increase in sundry payables ( 107 464) ( 60 860) ( 107 464) ( 60 860)(Decrease)/increase in provisions ( 162 591) 169 186 ( 162 591) 169 186

Net cash from (used in) operating activities ( 508 589) 1 277 483 ( 508 589) 1 277 483

For the purposes of the Statement of Cash Flows, cash includes cash and deposits with banks, net of bank overdrafts.Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in theBalance Sheet as follows:

FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Consolidated Entity

Notes to and forming part of the financial statements for the year ended 30 June 2011

57

16. Financial Instruments and Financial Risk Managementa) Accounting Policies and Methods

Financial Instruments give rise to situations that create a financial asset of State Management Council and a financial liability(or equity instrument) of the other party, or vice versa. For State Management Council, these financial instruments include cash,receivables, investments and payables.

All financial instruments, including revenues and expenses are recognised on an accrual basis.

All receivables and payables are unsecured and do not incur interest.

Subscriptions, Grants and Investment IncomeSubscriptions, Grants and Investment Income are recognised in accordance with the policy detailed in Note 1 (a).

Other ReceivablesSundry and other debtors are brought to account on an accrual basis.

Related Party TransactionsGroup transactions do not bear any risk exposure and have not been included within this note.State Management Council's principal financial instruments are outlined below. These financial instruments arise directly from theCouncil's operations or are requred to finance the Council's operations. The Council does not enter into or trade financial instrumentsfor speculative purposes.

b) Fair ValueAll carrying values approximate fair value for all recognised financial assets and financial liabilities.

c) Market Risk Sensitivity analysisState Management Council's financial assets which are subject to interest rate risk comprise cash on hand, at bank, and on call, and term deposits which are generally short term and are held to maturity. Therefore State Management Council does not considerthat a reasonably possible change in risk variable (interest) would have a significant effect on profit or equity.

d) Credit Risk ExposureCredit Risk represents the loss that would be recognised if the counterparties fail to perform as contracted. The maximum credit risk on financial assets of the State Management Council is the carrying amount, net of any provision for doubtful debts.

State Management Council does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments.

State Management Council has unsecured debtors (classified as sundry in Note 6) which include grants from Industry and Investment NSW and recoveries from Boards and other government departments. These are managed by management monitoring outstanding debt and employing debt recovery policies. Credit Risk on recoveries is minimised as State Management Council has the power under theRLPB Act to direct Boards to pay debts owed to the State Management Council.

The profile of State Management Council's credit risk at balance date was:

2011 2010 Percentage of sundry debtors (unsecured only): - Current 65% 82% - Overdue 35% 18%

e) Cash and Cash equivalentsCash and cash equivalents comprise of cash on hand, cash in banks and investments in money market instruments. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

STATE MANAGEMENT COUNCIL OF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Notes to and forming part of the financial statements for the year ended 30 June 2011

58

STATE MANAGEMENT COUNCIL OF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

f) Liquidity RiskPrudent liquidity risk management implies maintaining sufficient cash or credit facilities to meet the operating requirementsof State Management Council. This is managed through committed undrawn facilities and prudent cash flow management.

State Management Council's financial liabilities and net settled derivative financial instruments at the reporting date are due within 3 months and therefore discounting is not significant.

Total

2011 2010 2011 2010 2011 2010 2011 2010 2011 2010% % $ $ $ $ $ $ $ $

Financial Assets:Cash 3.00 3.00 1 023 724 353 461 - - 200 200 1 023 924 353 661 Cash Mgmt 4.25 4.25 711 745 644 277 - - - - 711 745 644 277 Held to maturity 6.00 6.00 - - 150 000 1 400 000 - - 150 000 1 400 000 Total Financial Assets 1 735 469 997 738 150 000 1 400 000 200 200 1 885 669 2 397 938 Receivables:Sundry & Other Debtors - - - - - - 110 017 272 303 110 017 272 303 GST Receivable - - - - - - - 33 444 - 33 444 Total Receivable - - - - - - 110 017 305 747 110 017 305 747

Total Assets - - 1 735 469 997 738 150 000 1 400 000 110 217 305 947 1 995 686 2 703 685

Financial Liabilities:Payables - - - - - - 616 685 724 149 616 685 724 149

- - - - - - 616 685 724 149 616 685 724 149

17. NSW Government Operating Grant Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $ 675 305 655 636 675 305 655 636

18. Remuneration of Auditor

The auditor of State Management Council is The Audit Office of New South Wales. Total of all remuneration received or due and receivable byauditors in connection with:

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Audit of annual financial statements 26 000 35 000 26 000 35 000

In recognition of the additional costs to be incurred as a result of the restructuring of Rural Lands Protection Boards and in particular the increase in StateManagement Council's administrative costs, the Minister provided grant funds of $250 000 annually for a period of 5 years. This funding expired 30 June2001 and was replaced with operating funding of $425 000 annually and is subject to review. In 2005, CPI increases were awarded and backdated to 2001and this year the Minister increased the grant to $675 305. This grant recognises and contributes to State Management Council's increased operatingexpenditure associated with carrying out additional functions included in the new Rural Lands Protection Act 1998.

Total Liabilities

Effective Interest Rate Rate Within 1 yearWeighted Average Floating Interest

Fixed Interest Rate Maturing

Non Interest Bearing

Within 1 year

Notes to and forming part of the financial statements for the year ended 30 June 2011

59

19. Key Management and Director's Remuneration

Total remuneration received or receivable by Directors ofState Management Council and the key management:Personnel Services:

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Directors' Remuneration 120 000 91 577 120 000 91 577Chief Executive Officers' Remuneration * 142 699 180 000 142 699 180 000

262 699 271 577 262 699 271 577* Chief Executive Officers' remuneration includes entitlements paid upon termination. The amount disclosed does notnot include amounts paid in connection with consulting services paid in connection with interim CEO - these amountsare disclosed in Note 4 (c) RLPB Reform Expenditure.

Number of Directors who held office during thereporting period and whose income from State Year Ended 18 Months to Year Ended 18 Months toManagement Council was within the following bands: 30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $$0 - $19,999 8 8 8 8$20,000 - $39,999 - 1 - 1$40,000 - $59,999 1 - 1 -

TOTAL 9 9 9 9Directors are not entitled to post employment benefits or termination payments.Chief Executive Officers': Short-term Provisions that are expected to be paid within the next 12 months

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Personnel Services - Annual Leave 853 41 905 853 41 905

853 41 905 853 41 905

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Personnel Services - Long Service Leave - 30 373 - 30 373

- 30 373 - 30 37320. Retained Earnings

Year Ended 18 Months to Year Ended 18 Months to30 June 2011 30 June 2010 30 June 2011 30 June 2010

$ $ $ $Balance at start of period 1 713 810 2 834 573 1 713 810 2 834 573Surplus for the period ( 480 630) (1 120 763) ( 480 630) (1 120 763)Balance at end of period 1 233 180 1 713 810 1 233 180 1 713 810

21. Contingent LiabilitiesOther then the commitments mentioned eleswhere in these notes, State Management Council is notaware of the existence of any contingent liabilities associated with its operations as at balance date.

22. After Balance Date EventsState Management Council is not aware of any after balance date events that would impact on thepresentation of this financial report.

End of Financial Statements

Consolidated Entity State Management Council

Consolidated Entity State Management Council

Chief Executive Officers': Long-term Provisions expected to be paid after 12 months

STATE MANAGEMENT COUNCIL OF LIVESTOCK HEALTH AND PEST AUTHORITIES

OF NSW

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2011 (Cont.)

Notes to and forming part of the financial statements for the year ended 30 June 2011

60

CONTACTING LIVESTOCK HEALTH AND PEST AUTHORITIES

Central North admin.central.north@lhpa.org.au

33-35 Gunnedah Road, (PO Box 500), TAMWORTH NSW 2340Ph 02 6762 2900

89 John Street, (PO Box 108), COONABARABRAN NSW 2357Ph 02 6842 1300

181 Bettington Street, (PO Box 9) MERRIWA NSW 2329Ph 02 6548 2175

112 Market Street, (PO Box 31), MUDGEE NSW 2850Ph 02 6372 1866

Central West admin.central.west@lhpa.org.au

96 Victoria Street, (PO Box 6082), DUBBO NSW 2830Ph 02 6882 2133

15 Tooloon Street, (PO Box 40), COONAMBLE NSW 2829Ph 02 6822 1588

58 Cobar Street, (PO Box 45), NYNGAN NSW 2825Ph 02 6832 1008

Cumberland admin.cumberland@lhpa.org.au

61 John Street (PO Box 141), CAMDEN NSW 2570Ph 02 4655 9165

52 Kyle Street, RUTHERFORD NSW 2320Ph 02 4932 8866

Darling admin.darling@lhpa.org.au

36 Mitchell Street, (PO Box 24), BOURKE NSW 2840Ph 02 6872 2322

24 Bathurst Street, (PO Box 3), BREWARRINA NSW 2839Ph 02 6839 2047

Broomfield Street, (PO Box 52), COBAR NSW 2835Ph 02 6836 2081

Vicary Street, WANAARING NSW 2840Ph 02 6874 7749

Hume admin.hume@lhpa.org.au

17 Trail Street, (PO Box 513), WAGGA WAGGA NSW 2650Ph 02 6923 0900

87 Sheridan Street, (PO Box 21), GUNDAGAI NSW 2722Ph 02 6944 1588

2 Hay Street, HOLBROOK NSW 2644 Ph 02 6036 2733

462 Wagga Road, LAVINGTON NSW 2641Ph 02 6040 4210

Lachlan admin.lachlan@lhpa.org.au

46 Sherriff Street, (PO Box 897), FORBES NSW 2871Ph 02 6852 1688

32 Bathurst Street, (PO Box 100), CONDOBOLIN NSW 2877Ph 02 6895 2152

93-93a Main St, (PO Box 46), YOUNG NSW 2594Ph 02 6382 1255

Mid Coast admin.mid.coast@lhpa.org.au

15 Isabella Street, (PO Box 76), WINGHAM NSW 2429Ph 02 6553 4233

83 Belgrave Street, (PO Box 108), KEMPSEY NSW 2440Ph 02 6562 7822

196 Kelly Sreet (PO Box 250), SCONE NSW 2337Ph 02 6545 1311

98 John Street, SINGLETON NSW 2330Ph 02 6572 2944

Tocal Agricultural Centre, 815 Tocal Road, PATERSON NSW 2421Ph: 02 4939 8967

New Englandadmin.new.england@lhpa.org.au

1 Greenaway Street, (PO Box 108), GLEN INNES NSW 2370Ph 02 6732 1200

142 High Street, TENTERFIELD NSW 2372Ph 02 6736 1355

126-130 Taylor Street, ARMIDALE NSW 2350Ph 02 6772 2366

North Coast admin.north.coast@lhpa.org.au

79 Conway Street, (PO Box 16), LISMORE NSW 2480Ph 02 6621 2317

147 Barker Street, (PO Box 158), CASINO NSW 2470Ph 02 6662 3166

24-26 Mulgi Drive, SOUTH GRAFTON NSW 2460Ph 02 6642 3699

North West admin.north.west@lhpa.org.au

101 Barwan Street, (PO Box 18), NARRABRI NSW 2390Ph 02 6792 2533

8 Evans Street, (PO Box 44), INVERELL NSW 2360Ph 02 6722 3091

203 Balo Street, (PO Box 253), MOREE NSW 2400Ph 02 6752 8012

75 Fox Street, (PO Box 32), WALGETT NSW 2832Ph 02 6828 1047

19 Stephen Street, (PO Box 13), WARIALDA NSW 2402Ph 02 6729 1528

Riverina admin.riverina@lhpa.org.au

74 Short Street, COROWA NSW 2646 Ph 02 6033 1196

394 Hay Road, (PO Box 61), DENILIQUIN NSW 2710Ph 03 5881 1055

56 Lachlan Street, (PO Box 21), HAY NSW 2711Ph 02 6993 1403

6 Jerilderie Street, (PO Box 117), JERILDERIE NSW 2716Ph 03 5886 1203

34 Sainsberry Street (PO Box 16), MOULAMEIN NSW 2733 Ph 03 5887 5006

8 Bolton Street, (PO Box 11), NARRANDERA NSW 2700Ph 02 6959 2322

South East admin.south.east@lhpa.org.au

34 Auckland Street, (PO Box 16), BEGA NSW 2550Ph 02 6492 1283

106 Maybe Street, (PO Box 23), BOMBALA NSW 2632Ph 02 6458 3055

170 Wallace Street, (PO Box 97), BRAIDWOOD NSW 2622Ph 02 4842 2536

5 Dawson Street, (PO Box 29), COOMA NSW 2630Ph 02 6452 1122

Tablelands admin.tablelands@lhpa.org.au

66 Corporation Avenue, (PO Box 20), BATHURST NSW 2795Ph 02 6331 1377

181 Bourke Street, (PO Box 67), GOULBURN NSW 2580Ph 02 4821 2522

36 Bank St, (PO Box 15), MOLONG NSW 2866Ph 02 6366 8505

13 Mitchell Street, (PO Box 10), YASS NSW 2582Ph 02 6226 1155

Westernadmin.western@lhpa.org.au

82 Market Street, (PO Box 9), BALRANALD NSW 2715Ph 03 5020 1691

Adelaide Road, (PO Box 279), BROKEN HILL NSW 2880Ph 08 8087 3378

180 High Street, (PO Box 33), HILLSTON NSW 2675Ph 02 6967 2507

Briscoe Street, (Post Office), TIBOOBURRA NSW 2880Ph 08 8091 3306

1 Silver City Highway, (PO Box 70) WENTWORTH NSW 2648 Ph 03 5027 3064

43 Woore Street, (PO Box 11), WILCANNIA NSW 2836Ph 08 8091 5070

State Councillhpa.smc@lhpa.org.au 161 Kite Street (Locked Bag 21)Orange NSW 2800 Ph 02 6391 3242

www.lhpa.org.au