Western Port Biosphere Annual Report 2016 by Grendesign

2015 - 2016 ANNUAL REPORT

Western Port Biosphere Reserve is proudly supported by:

WESTERN PORT BIOSPHERE ANNUAL REPORT 2015-2016 CONTENTS Western Port Biosphere - Overview & Highlights

Chair’s Report

Executive Officer Report

Board of Directors

Projects

Photos used in this publication, unless otherwise credited, have been provided courtesy of staff members and our partner Councils.

- Growing Connections

- Water Stewardship

- Ramsar

Western Port Catchment Committee (WPCC)

Financial Statements

Contact Information

RED BROWED FINCH - JACK KROHN

WESTERN PORT BIOSPHERE RESERVE The Mornington Peninsula and Western Port Biosphere Reserve has a combined area of 2,142 square kilometres and is made up of five local government areas and French Island. It contains a mix of landscapes: national and marine parks, rural agriculture and urban-growth areas. Dotted with beautiful swimming beaches, sea-side townships and vineyards with picturesque settings, the biosphere is a tourist destination for millions of Australians and overseas visitors every year. A major draw-card of the biosphere reserve is the wonderful diversity of flora and fauna including breeding colonies of the Little Penguin, Koala, Australian Fur Seal, Hooded Plover and Short-tailed Shearwater. As well as being a key destination for tourists and those who love its unique environment, Western Port Biosphere is popular with researchers and scientists. It has numerous sites of geomorphological and historical significance and is a region of great biological diversity due to an unusually wide range of habitat types. Western Port Biosphere hosts many significant indigenous plant communities, and rare threatened and vulnerable fauna species such as the endangered Southern Brown Bandicoot. Western Port is listed under the Ramsar Convention on Wetlands of International significance

What is a Biosphere? Biospheres are sites of excellence that seek to reconcile conservation of biological and cultural diversity and economic and social development through partnerships between people and nature. Biospheres are ideal learning sites to test and demonstrate innovative approaches to sustainable development and conservation on a regional scale. They are established by countries and recognised under the United Nations Educational, Scientific and Cultural Organisation’s (UNESCO’s) Man and the Biosphere (MAB) Programme. After their designation, biosphere reserves remain under national sovereign jurisdiction, yet they share their experience and ideas nationally, regionally and internationally within the World Network of Biosphere Reserves (WNBR). The Mornington Peninsula and Western Port Biosphere reserve is one of fourteen Biosphere Reserves in Australia and 651 reserves world-wide.

The Foundation The non-profit Biosphere Foundation works with the community to create a better future for the Western Port Biosphere Reserve—environmentally, socially and economically. We do this through research, education, community engagement, partnerships and on-ground conservation efforts. The Foundation has active networks embracing conservation, sustainable development and responsible stewardship. These networks include local, state and federal government authorities, researchers and scientists, environmental and community groups and non-government organisations. Our Partners include: Bass Coast Shire, Cardinia Shire, City of Casey, Frankston City Council, Mornington Peninsula Shire Council and Parks Victoria.

2015 - 2016 ANNUAL REPORT 2015-2016 Highlights This year has been one of continued growth. Conservation

• Presentations on pest control and biodiversity activities were made by representatives of Frankston and Cardinia councils, Mornington Peninsula and Bass Coast Landcare networks, French Island Landcare Group, Birdlife Australia and Frankston Environmental Friends Network

• Growing Connections project distributed $198,186 for on ground works

Communications

• Work being done by community partners in the project includes weed control, management and re-vegetation of land which connects habitats

• Higher visitation and use of Facebook and increase in contributions to Connector E newsletter.

• A further nine contracts were signed with community partners to care for and improve habitat within the Biosphere Reserve. The contracts were with Bass Coast Landcare Network, Cardinia Catchment Landcare Group, Cardinia Environment Coalition, Cardinia Shire Council, the Habitat Restoration Fund, Mornington Railway Preservation Society, Phillip Island Nature Park, and Toomuc Creek Landcare Group • To date the Growing Connections project has overseen 901.33 hectares of habitat protection and 116.69 hectares of revegetation since 2012. In this time 126,546 individual plants, comprising over128 different species, have been planted. • Over 80 representatives from community groups, councils, state agencies and individual landholders attended the 3rd Growing Connections Biodiversity Forum held at the Royal Botanic Gardens Cranbourne on 6th May 2016..

• Coverage of projects and events in local media

• With Water Stewardship Australia, and Somerville Secondary College holding the initial Skype session between students at Zhongce Vocation School in Hangzhou, China • WPCC holding 2 Community Boat Trips to the Northern part of Western Port • Participated in Science Week August 2016 event at Coolart Homestead Governance & Operations • Four new board members appointed • Skills based Board in place • Governance processes reviewed and Committees established ·· Governance Committee

• Key note speaker on the day was Professor John Woinarski The deputy director of the Threatened Species Recovery Hub in the National Environmental Science program at Charles Darwin University

·· Fundraising and Stakeholder Engagement

• Minister for Industry, Innovation and Science, Flinders MP Greg Hunt (then Environment Minister) spoke to the forum’s general theme of pest control, outlining programs to eradicate feral cats and foxes

·· Council Liaison Committee

·· Science and Education ·· Projects Committee

• Strategy reviewed and updated • Business Plan developed

• Western Port Biosphere Biodiversity Plan online was launched

ALISON HOELZER

The substantial population growth across the Biosphere in the next 15 – 20 years will inevitably bring additional pressures on the region’s land and water resources. We are progressively building on the Water Stewardship program commenced in 2015 that promotes responsible use of water, recognising that catchment activities ultimately impact the quality of water and habitat in Western Port. We are grateful for the support of the Helen MacPherson Smith Trust, which has helped facilitate the development of this program.

CHAIR’S REPORT Following our AGM last year, the newly constituted Board, comprised of predominately skills based directors, assumed responsibility for guiding the organisation. We welcomed new board members, Ellen Kittson, Gill McDermott, Jo McCoy and Lisa Nelson. We retained the input of Councillors Neil Rankine and David Young, and Rod Anderson (DELWP), now as skills based members and Cr David Garnock, as the representative of the local government forum. We also farewelled, former directors, Cr Mick Moreland, Libby Jude (Parks Victoria) and Jeff Weir. Jeff was a long-standing director who contributed many valuable years to the Biosphere. Your Board has now completed a new strategic plan to guide the organisation as well as new committee structures to compliment previous governance and management arrangements. Both staff and Board members have actively participated in this process and I thank them. I also wish to record my thanks to Bruce Carroll who in his capacity as a professional facilitator, guided us through the process of forming our strategic plan. The Biosphere continues to deliver results and engages across a range of projects. The current iteration of the Growing Connections project is now in its fifth and final year. The core areas of native vegetation condition improvement, corridor establishment and overall vegetation protection aims of the program, continue to be met and exceeded. The community engagement and input from various individuals and groups, including Landcare, has ensured that the project has broad ownership across the region. Meanwhile, the endangered Southern Brown Bandicoot (SBB) species monitoring with fixed and variable station camera monitoring, is building a remarkable repository of images of the Bandicoot, its predator and competitor species.

2015 - 2016 ANNUAL REPORT

The images are progressively being converted to extensive data sets and information, which will grow our understanding of the factors that will lead to better habitat management and protection of this important animal. My thanks to all who contribute to Growing Connections either staff or volunteers.

At the genesis of the Mornington Peninsular and Western Port Biosphere Foundation twelve years ago, the key pledge signatories were; Mornington Peninsula Shire, Frankston City, the City of Casey, Cardinia Shire and Bass Coast Shire. Frankston unfortunately, has withdrawn its financial support, hopefully, temporarily. However, Mornington Peninsula, Casey, Cardinia and Bass Coast remain strong supporters of the Biosphere and we are most appreciative of their ongoing support and the honouring of their initial pledge. The pilot Report Card produced last year, has been a valuable aid for explaining what our values are, it provides useful statistics on indicators such as energy use, demographics, waste management, community volunteer hours contributed, work patterns across the five municipalities, catchment features, our current programs and projects, and the link between a healthy landscape and a healthy society. We hope to build on the report card model during the remainder of 2016/17. The UNESCO tag line of “Man and the Biosphere” is a simple expression of a powerful truth that, humans are dependent on and responsible for, the health of the land, water and atmospheric assets that sustain us. Many community groups within the Western Port Biosphere recognise this truth and try to manage and influence attitudes within the broader community to reflect our commonly held values. Thank you for your commitment, your support and advocacy as we collectively try balance growth and sustainability aims. The Biosphere has many challenges, but our most pressing one at present, is the need to strengthen our financial position. Your directors and staff are working hard to get additional support in this area, without success in this endeavour, our future is not assured. The Biosphere is fortunate to have a small team of dedicated professional staff who contribute over and above what could reasonably be expected of them. I especially thank Cecelia Witton for her hard work, professional expertise and dedication to her role as EO. Duncan Malcolm, AM Chair, Western Port Biosphere October 2016

Our Water Stewardship project is now expanding into other catchments, and there is considerable interest in the application of the water stewardship standard to assist landholders and agencies in working together to identify ways to improve water quality and management of the issues that impact on the condition of our waterways. The pressure of development across the Biosphere makes the success of these types of projects essential, as they improve understanding and provide ways to identify and implement critical actions to maintain and improve biodiversity and awareness of the importance of sustainable water management on a broad scale. To support these activities the Foundation has to continually find funding to cover the basic overheads required to run the organisation. Securing core funding has always been a task and the board continues to actively investigate all opportunities, without funding to support staff, our projects cannot be implemented. Our work is making a difference and bringing people together on multiple levels. We want that to continue.

EXECUTIVE OFFICER REPORT The past year saw the skills based board appointed, with four new board members joining the board . The new board quickly warmed to the task, completing a review of our Strategy and Business Plan as well as creating committees to improve governance and general operations. One of these is the Council Liaison Committee which is a mechanism to broaden interaction with our partner councils. The chair reports meeting outcomes to the Board, this facilitates discussion and also provides a way to improve our engagement with Council officers. The Foundation acknowledges the support of our Local Government Partners and looks forwarded to continued support and strengthening of this relationship in the coming years. Our Growing Connections project is going from strength to strength using technology in development of onsite monitoring and data collection applications and online story boards. With these capabilities we will over time, with input from the community, build an online map of works being undertaken in the Western Port Biosphere. The Biodiversity Plan is online with this document being referred to by community, local government and agencies.

Overall the Foundation has had a successful year however this is not reflected in the bottom line. This situation is one that a number organisations endure at different times and the board is confident the coming year will see this position change building partnerships, expanding projects and securing our future. I look forward to the coming year with anticipation and confidence in our ability to succeed. Cecelia Witton Executive Officer October 2016

2015 - 2016 ANNUAL REPORT

BOARD OF DIRECTORS Chair - Duncan Malcolm AM JP Director with 30 years’ experience on a range of boards, predominately in the public sector. A former Chair and Deputy Chair of the Rural Water Commission/Corporation of Victoria, former Commissioner East Gippsland Shire Council, former Chair Gippsland Coastal Board and East Gippsland Catchment Management Authority, Member and Chair of The Victorian Environmental Assessment Council. Currently; Director of Gippsland Medicare Local, Trustee of the Australian Landscape Trust, and the McPherson Smith Rural Fund. Made a Member of The Order of Australia in 2007, and is an Honorary Fellow at Monash University.

David Garnock Captain CSC RAN (ret’d) David’s role as a Director on the Western Port Biosphere Board is perfectly aligned with the goals he is pursuing as a Mornington Peninsula Shire Councillor - Cerberus Ward. David is keenly interested in the issues and aspirations of the community in the Western Port region. One of his most important priorities is to safeguard this unique environment, preserve and enhance the beauty of our coast and ensure responsible economic development. He takes this responsibility seriously and is honoured to dedicate his full energies to achieving the best outcomes.

Rod Anderson BSc (Hons) Rod Anderson is an Environmental Planner and Policy Analyst. He is a Senior Victorian Public Servant with experience in coastal planning, forest biodiversity, climate change adaptation and carbon policy and regional program delivery.

2015 - 2016 ANNUAL REPORT

Ellen Kittson BSc, Grad Dip Applied Science, Grad Dip Ethics and Legal Studies, FAIFST

Born and raised in the United States, Ellen completed her undergraduate science degree in the United States and shortly after began travelling with her Australian husband. A short trip to the Galapagos Islands began a lifelong fascination with the natural environment and the need for harmony with development. Arriving in Australia in 1979, Ellen’s career was built in government service, working in policy, regulation and technical fields. Ellen completed postgraduate coursework in Ethics and Legal Studies and has a strong commitment to good organisational governance and ethical decision making.

Jo McCoy BSc, Dip Ed., M Env Sci

A former secondary school teacher who taught Geography, Biology and Environmental Science in Melbourne and country Victoria for many years. Moved to DSE spending decade as a senior public servant working in conservation and natural resource management policy as well as business management roles. She worked with the Phillip Island Nature Park Board in the early 2000s, was the Project Director for the Land and Biodiversity White Paper from 2007-2009 and the Manager of the Victorian Landcare program from 20102011. Jo’s family owns a property at Flinders.

Gillian McDermott MBA Gillian is an executive program director with over 25 years experience working in large financial services organisations, including not-for-profit industry super funds. With key strengths in program management and planning, governance and risk management she brings a broad range of management knowledge and experience. Gillian also runs a small business on the Mornington Peninsula. Gillian has a masters degree in business administration.

Lisa Nelson BSc(Hons), MPM, MA Lisa’s broad work experience encompasses local and state government, mineral exploration, the environment, GIS and tourism. She has been a member of several local, state and federal government committees which focused on regional and economic development, conservation management and threatened species protection. In addition, she has been a director for a community foundation. Lisa has an abiding interest in archaeology and ancient history and has participated in excavations in Spain and the Middle East.

Neil Rankine B Sc (Hons), Dip Ed. Neil Rankine is a councillor for the Bass Coast Shire. He has a strong interest in trying to preserve the diminishing natural values that make the shire and the broader Biosphere region such a special place to live and visit. Neil believes we all lose if we allow these values to be taken away from future generations for the lack of a vision, or for short term gain.

David Young Dip. Farm Management David Young is Cardinia Shire Council’s representative on the Biosphere Board. Currently farming at Officer South, his interests include sustainable agriculture and wildlife habitat conservation. Some committees he has been involved with include Cardinia Creek Environment Working Group, Yakkerboo and Cardinia’s Environment Management Strategy. He enjoys serving the interests of the Biosphere community and region.

PROJECT GROWING CONNECTIONS Improving habitat corridors regionally across Western Port Biosphere. This project is funded by the Australian Government Along with the ongoing great work being undertaken on ground to restore remnant vegetation and undertake revegetation by our partners, the Growing Connections project has also delivered some key outcomes over the previous year. These are: • Delivery of the Western Port Biosphere Biodiversity Plan on line interactive version. • Delivery of fox control works around Tooradin in line with the priorities of the Predator Control Strategy for the Western Port Biosphere Reserve (available on our website) • Hosting of the 3rd Western Port Biosphere Biodiversity Forum. • Continued strengthening of key partnership across the region • 219.07ha of remnant vegetation restored • 43.96ha of revegetation in priority areas across the landscape • Continued broad scale monitoring of biodiversity across northern Western Port

Below I have outlined the progress of each of the key parts of the Growing Connections project over the last year and provided a brief outline of the plans for the next year.

Biodiversity Plan During the 2014/15 year the Western Port Biosphere Biodiversity Plan was released, further development of the plan has been underway over this financial year with an on line interactive map version of the plan released at the Western Port Biodiversity Forum in May 2016. Feedback about the plan has been positive. Further development is currently underway on building an online portal through which groups and individuals can enter data about works they are undertaking, or wish to undertake across the Biosphere. The intention of this portal is to act as a single record of works that have occurred and a tool to help identify potential projects across the landscape. Having this record will help facilitate future collaboration in planning and delivery of on ground works ensuring better outcomes are reached.

On ground works Revegetation and remnant vegetation restoration. During the 2015/16 financial year the Growing Connections project entered into agreements with our delivery partners to undertake the remaining on ground works for this iteration of the project. The sites chosen for works were guided by the outcomes of the mapping undertaken for the Biodiversity Plan with the major priority being to build on past investment and gains already made through the project.

• Development of in the field data collection tools for our fox control and on ground works components. • Development of a set of criteria for measuring the ‘state of biosphere’ for various environmental indicators.

Bass Coast Activity

Project Partners

Area covered

Revegetation

Bass Coast Landcare Network

10.8ha

Remnant restoration

Bass Coast Landcare Network

10.8ha

Activity

Project Partners

Area covered

Revegetation

Cardinia Catchment Landcare Group

20ha

Remnant restoration

Cardinia Catchment Landcare Group

60ha

Activity

Project Partners

Area covered

Revegetation

Cardinia Environment Coalition

1.2ha

Remnant restoration

Cardinia Environment Coalition

3.5ha

City of Casey

Cardinia Shire Council

Mornington Peninsula Shire Council Activity

Project Partners

Area covered

Revegetation

Mornington Railway Preservation Society

2.2ha

Remnant restoration

Habitat Restoration Fund Mornington Railway Preservation Society

35.45ha

Activity

Project Partners

Area covered

Revegetation

French Island Landcare Group

3.76ha

Remnant restoration

French Island Landcare Group Parks Victoria

12.12ha

Activity

Project Partners

Area covered

Revegetation

5 partners undertaking revegetation

43.96ha

Remnant restoration

7 partners undertaking remnant vegetation protection

219.07ha

French Island

Totals

7 partners all together

ALISON HOELZER

2015 - 2016 ANNUAL REPORT

Pest control During the 2014/15 year Ecology Australia prepared the Western Port Predator Control Strategy which defines priority areas in the landscape for predator control works and outlines best practice in how to undertake these works. In line with the priorities of this plan the Growing Connections project has commenced a fox control program in the areas surrounding Tooradin. Mal’s Ecological and Environmental Services Pty Ltd was engaged to undertake this fox control program which began in April 2015.

This work is happening predominantly on private land however some public land is also being treated. Thus far 34 1080 baits have been deployed at 16 sites and results clearly show that 19 foxes have been eliminated. This fox control forms an important part of our monitoring program providing data around the effects of the removal of foxes has on the native wildlife. On Ground works also been continued in the area surrounding the Royal Botanic Gardens Cranbourne, focussing on Foxes and Cats. This work concluded at the end of December 2015.

Pest Control Activity

Project Partners

Area covered

Pest Control

Royal Botanic Gardens Cranbourne Ecology Australia

330ha

Pest Control

Internal Pest control around Tooradin

1,500ha

Western Port Biosphere Biodiversity Forum In May 2016 we held the third annual Western Port Biosphere Biodiversity Forum at the Royal Botanic Gardens in Cranbourne. The day was attended by over 80 people representing various levels of government, organisations, community groups, and individuals. The key note speaker for the day was John Woinarski from the threatened species recovery hub who spoke about the decline in small mammals across Australia. His presentation was both depressing and inspirational. The Hon. Greg Hunt, then Minister for the Environment also spoke at the forum about the initiatives of the Federal Government and held a question and answer sessions about all topics. During this Mr Hunt announced that the Southern Brown Bandicoot would remain on the endangered list, one of the few times there would be cheers for something staying endangered, and he announced that French Island was one of five islands chosen around Australia where the Federal Government will be working towards making the island cat free. The day was well received by all who attended. The fourth annual Biosphere Biodiversity Forum is planned for April/May 2017.

Monitoring Work on our monitoring program continued through this year with up to 65 motion sensing cameras being deployed at any one time across the target area. The area around Tooradin was a key focus during this year due to the need to gather as much base line data as possible before the start of our fox control program. This area continues to be a key focus while the fox control is taking place and will continue to be until the end of the project. The key targets for this monitoring are the endangered Southern Brown Bandicoot, and their predators in foxes and cats. We have collected a lot of raw data on other species and are currently exploring ways to include this in the final analysis and report. We are working with our Project Implementation Committee and Ecology Australia to formulate the final design of the data analysis and report that will be produced, this may include more species than the initially intended Southern Brown Bandicoot, fox, and cat. The Biosphere is managing the data collection and initial analysis with assistance from volunteers and the Royal Botanic Gardens Cranbourne and Bass Coast Landcare Network. We are also engaging Ecology Australia to provide advice to overall experimental design, undertake the occupancy analysis, and write up the final report.

Monitoring Activity

Project Partners

Monitoring

Ecology Australia Royal Botanic Gardens Cranbourne Bass Coast Landcare Network

Enabling Systems The Cooperative research centre for Spatial Information continues to produce high quality outcomes for the Growing Connections Project. During this financial year they have delivered: • The online line interactive version of the Western Port Biosphere Biodiversity Plan. • A ‘State of the Biosphere’ report which defines the outcomes across the 5 council areas of the Biosphere against set measurable criteria. This report also provides a template that will allow this report can be produced again in future years with more ease. • In field data collection tools for our pest control and revegetation and remnant protection activities. These tools will also facilitate carbon calculations. • A dvice on many technical aspects of the project and ideas for future enhancement of our activities in future. CRCSI are currently working on the portal for collecting on ground works activities which will form part of the Western Port Biosphere Biodiversity Plan on line version. Enabling Systems Activity

Project Partners

Monitoring

Cooperative Research Centre for Spatial Information

Supporting Tootgarook Wetland Ramsar Nomination Western Port Biosphere is a member of the Government and Agency Working Group, working with stakeholders to assess the Tootgarook Wetland against the Ramsar criteria. Consultants were engaged and an Ecological Character Description of the wetland has recently been completed and further studies are to be undertaken. Mornington Peninsula Shire with Wetlands Care Australia worked with the community in development of the Tootgarook Wetlands Management Plan. The project and the Western Port Biosphere continue to play a supportive role in community activities relating to the wetland. Chris Chambers - Project Co-ordinator 17

PROJECT WATER STEWARDSHIP Building a Water Stewardship Community in Western Port. The International Water Stewardship Standard was developed during the Millennium drought. The Standard is designed to achieve a sustainable water balance, good water quality, good water governance and healthy ecosystems and cultural sites (e.g. wetlands and riparian zones). Water Stewardship Plans can be easily developed and implemented from scratch (or built upon existing plans and works) and can be externally accredited. Our Water Stewardship Project led by the Western Port Biosphere is in collaboration with the Alliance for Water Stewardship, Ingham Enterprises and a group of regional stakeholders, is aiming to build collaboration between major water users, the community, water agencies, local government and other stakeholders around the framework of the International Water Stewardship Standard. The Watson Creek Catchment, stretching from Baxter to the internationally significant Yaringa Marine National Park was the initial focus of the project. A Reference Group supporting the project includes representatives from the Western Port Biosphere Reserve, Mornington Peninsula Shire Council, Port Phillip and Westernport Catchment Management Authority, Parks Victoria, Melbourne Water, South East Water, Southern Rural Water, and EPA Victoria. Funding from the Helen Macpherson Smith Trust enabled good progress in the first two years of our 3 year program with 15 Site Water Stewardship Plans currently being produced. We are developing these Site Water Stewardship Plans with a deliberate mixture of landholders, organisations and businesses. Our water stewards include a chicken processor, horticulture farms, plant nurseries, livestock producers, grazing properties, horse agistment properties, schools, a camp, a wetland reserve, and a golf course. We have learned valuable lessons about the water stewardship process and its value in water, stream and catchment management.

The role of schools in the program, as well as businesses, are important in linking together the rural landholders in a community of participants. The Biosphere provides water stewards with the assistance and training to develop a Site Water Stewardship Plan including site visits, templates, information on catchment conditions, field days to see how other Water Stewardship plans are being developed and benefiting landholders, and information on how other existing or planned site work can be integrated with an individual plan. In addition to working with landholders, the project is also working with industry and agency staff to build a network of supporters to promote water stewardship to their communities and contacts. We are doing this through meetings with staff, presentations to groups and conferences and press articles. Landholders are developing Site Water Stewardship Plans to address their specific site risks and protect site or catchment values. They have been planning and implementing works such as (but not limited to) the following: • Riparian zone fencing (& off stream watering points) • Riparian zone revegetation • Improved soil and pasture management and erosion control (e.g. using native grasses to bind soil) • Installation of wetlands to treat water quality onsite before release and/or create wildlife habitat • Use of alternative water sources (recycled water via purple pipe) • Local capture and recycling of water • Monitoring of water levels and water quality These actions result in water and costs savings. Inghams for instance have reduced water usage by two-thirds and have reduced their charges for trade waste discharge by well over half of previous costs. Water Stewardship provides a framework for continual improvement. Further, the development and implementation of site water stewardship plans on properties and businesses will create environmental benefits, including protection of native vegetation, enhancing natural pest control predators, creating wildlife habitat and corridors, treating water quality and quantity issues on site, preventing erosion and sedimentation, and enhancing ecosystem quality in stream and wetland environments.

2015 - 2016 ANNUAL REPORT

The mix of landholders we have recruited has proved valuable in developing a scalable framework for water stewardship. While horticulture companies have been difficult to recruit, we are persisting with this group as we see these are important land use category within our catchments. Landcare groups and government agencies have been very useful in identifying Water Stewards as has our publicity and press articles. Direct contact is also an important way to recruit potential water stewards (but is much more resource intensive).

2015 - 2016 ANNUAL REPORT

One of our school’s has created links with a school in China also developing a site water stewardship plan and have met over skype with plans to jointly develop programs which will have benefits for the school site as well as their catchment. Our schools are involved with various groups within their catchments planting trees, undertaking catchment improvement works and developing plans for water quality monitoring through the catchment to monitor improvements over time as a result of the works employed.

The project is now entering its second phase, incorporating other catchments within the Biosphere’s region and is seeking further landholders, business and organisation to develop their Site Water Stewardship Plans. We are working through the government agencies, landcare groups and industry associations to create a core of water stewards in each catchment throughout the Western Port Biosphere. Expansion of the program will proceed catchment by catchment within the Biosphere, using a number of criteria to identify the best areas for the current phase of the project. The criteria used to select catchments as priorities within the Biosphere region, included: • where they were adjacent to Watson Creek; • had good data sets and information available; • had interested landholders or landcare groups; • had high value receiving waters values – e.g. Ramsar site, national park, high value species, etc; • had high value industries, that are large water users or may have significant impact on water values; and, • had interested industry associations to support landholders. Our project is currently working in the catchments of Watson, Merricks, Langwarrin, Balcombe, & Sweetwater Creeks as well as Cardinia Creek/Bunyip River, Bass River, Chinamans/ Tootgarook and Hastings North catchments. In 2017, we have plans to expand the program further into Cape Schanck/Main Creek, Cannons Creek, Lang Lang River catchments, and possibly the catchments on Phillip Island and French Islands. The project’s goal is to continually increase the number of water stewards across all catchments of the Biosphere, in order to improve water management in the region and to protect and enhance significant water-related assets such as our magnificent Ramsar wetlands. The project hopes to develop a self-sufficient program in which water stewards can support other water stewards within a catchment, as the implementation of multiple plans will be required to achieve significant on-ground improvements. We are also working ensuring several plans are verified against the international standard and we hope to facilitate many more plans to be implemented and ensure land and water practices improved across the Biosphere. For more information see www.biosphere.org.au/biosphere-projects/water-stewardship Lance Lloyd - Project Officer

PROJECT RAMSAR Protecting the ecological values of the Western Port Ramsar site. The Australian Government funded Port Phillip and Westernport Catchment Authority to manage the â&#x20AC;&#x153;Protecting the ecological values of the Western Port Ramsar siteâ&#x20AC;? project. The aims of this project are to reduce threats, such as pest plants and animals, and increase community understanding of the importance of wetlands and how to protect them. The Western Port Biosphere Reserve is a partner in this project with the role of engaging community members in northern Western Port to strengthen their knowledge and understanding of wetland values and the threats to those values. Thus far, workshops and one-on-one support for landholders on their private properties in this region have been provided in weed control techniques, plant identification and native and pest fauna identification and monitoring. Aims of this project are to reduce threats, such as pest plants and animals, and increase community understanding of the importance of wetlands and how to protect them. In July 2015, to understand and appreciate our wildlife and better manage the impact of feral animals on native wildlife, we asked residents of the northern Western Port coastal communities to help us by recording what they have seen on a fauna survey. This provided valuable information to add to our camera monitoring in coastal reserves and on 5 private properties. The results of the survey and the camera monitoring were presented at a Wildlife Discovery Workshop at the Blind Bight Community Centre in October 2015.

Jim Greenwood installing a Sugar Glider nest box.

Brushtail and Ringtail possums and Swamp (Black) Wallabies were the main native animals captured on camera and foxes starred at most sites. While there were not enough survey returns to provide relevant statistical data, it is interesting to note that Koalas and Sugar Gliders appear to be more prevalent in areas where few feral and domestic animals were reported, whereas possums still thrive. Also at the workshop, our citizen science project, Lifesearch, was explained and attendees were encouraged to take part. Jim Greenwood demonstrated how he makes nest boxes for various animals and how to put them up in trees to provide much needed homes for wildlife. During a nocturnal wildlife spotting walk in the coastal bushland around the community centre, we observed Ringtail and Brushtail possums and a Tawny Frogmouth family. Sally Jacka - Project Officer

WESTERN PORT CATCHMENT COMMITTEE (WPCC) The Western Port Catchment Committee is an independent community/agency liaison group with an interest in the sustainability of the greater Western Port catchment. Dr Mary Cole (AGPATH Pty Ltd) who was appointed Chair mid 2014 held that position until recently when pressures of business forced her to step down. We acknowledge her contribution and dedication during her time as Chair. Supported by the Biosphere Foundation, its secretariat is community-based with links to the Biosphere Foundation’s office in Hastings. The WPCC provides a networking forum to: • promote an exchange of information and ideas between agencies, authorities and community. • help identify new and emerging issues and contribute to problem solving processes. • provide constructive feedback and comments on issues of local, regional and international importance.

• advocate, support and help facilitate programs for the protection and enhancement of the Western Port environment. • assist Melbourne Water and the Port Phillip & Western Port Catchment Management Authority to identify priorities within the catchment. • help initiate, facilitate, promote and maximize locally important on-ground projects. 2015-2016 marked the 13th year of activity for the Western Port Catchment Committee. Keeping with popular recent tradition, a key focus was the annual boat trip. This year’s venture to the Eastern Arm of Western Port attracted such a substantial interest that two days were arranged on eastern French Island before returning across the water-shed at Palmer Point in north Western Port. Close examination occurred of the mud flat distribution, sea-grass distribution, channels, Harewood homestead, cliff erosion, mangrove re-vegetation, sedimentation loads, cultural history plus potential effects of climate change. The level of knowledge-sharing and resultant learning was widely acclaimed by all involved. Less than a handful of passengers had ever inspected this part of Western Port in the past. ¬Other areas of activity for WPCC included community invitation to share phenomena affecting the local environment of Western Port. Links to HMAS Cerberus, French Island, Phillip Island, Port of Hastings Authority took place resulting in proposed inspections by WPCC to each site in 2016/17. For further information or membership interest (complimentary), please contact Ian Stevenson at ian@biosphere.org.au or call the office on 0359 792 167.

2015 - 2016 ANNUAL REPORT

MORNINGTON PENINSULA AND WESTERN PORT BIOSPHERE RESERVE FOUNDATION LIMITED (TRADING AS WESTERN PORT BIOSPHERE RESERVE) ACN 107 484 408

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

CONTENTS (Financial Statements) Directors Report

Auditor’s Independence Declaration

Financial Statements - Profit or Loss & Other Comprehensive Income

- Financial Position

- Changes in Equity

- Cash Flows

Notes to the Financial Statements

Director’s Declaration

Independent Auditors Report

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 DIRECTORS REPORT Western Port Biosphere Reserve

Directorsʼ Report

(ACN 107 484 408)

DIRECTORSʼ REPORT Your directors present their report on the Company for the financial year ended 30 June 2016. Directors The names of the directors in office at any time during, or since the end of, the year are: Director Duncan Malcolm Rodney Stuart Anderson David Lindsay Garnock Libby Jude Ellen Kittson Joanne McCoy Gillian McDermott Mick Morland Lisa Nelson Neil Rankine Jeffrey Weir David Livingstone Young

Alternate

Appointment Date

19/11/2015 19/11/2015 19/11/2015 19/11/2015 Peter Woodgate

Cessation Date

19/11/2015

19/11/2015 19/11/2015

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal Activity The principal activity of the Company during the financial year was conservation, scientific research and education. Objectives The Companyʼs short-term objectives are to: • Develop and implement communications strategy, working with stakeholders and partners to build the profile of the organisation and Biosphere brand; • Identify and secure funding opportunities and increase annual discretionary budget; and • Implement existing programs to improve sustainable development outcomes. The Companyʼs long-term objectives are to: • Achieve the strategic objectives detailed in the Living Strategy; o Natural Environment and Biodiversity Conservation; o Sustainable Development on a Regional Scale; o Logistical Support including targeted research, monitoring, evaluation of progress in sustainability; and o Partnerships and Governance to enable effective delivery of Biosphere objectives. Strategies To achieve its stated objectives, the Company has adopted the following strategies: • Implementation of the Living Strategy through targeted business plans directed at specific objectives Key Performance Measures The Company measures its performance through the use of both quantitative and qualitative benchmarks. The benchmarks will be used by the Directors to assess the financial sustainability of the Company and whether the Companyʼs short-term and long-term objectives are being achieved. The Company has a range of measures required by its Funders. These measures apply to all programs and services funded.

3 28

Western Port Biosphere Reserve

Directorsʼ Report

(ACN 107 484 408)

Details of the directors Directorʼs Name: Position held: Special responsibilities: Qualifications: Experience:

Duncan Malcolm, AM Chairperson Chair of the Board, Member of Executive Honorary Fellow at Monash University 30 yearsʼ experience on a range of boards, predominately in the public sector. He is a former Chair and Deputy Chair of the Rural Water Commission/Corporation of Victoria, a former Commissioner with East Gippsland Shire Council, a former Chair of the Gippsland Coastal Board and the East Gippsland Catchment Management Authority. Other roles include; former national Chair of the Irrigation Association of Australia Ltd., former Chair of The Australian Irrigation Council, Member and Chair of The Victorian Environmental Assessment Council and several other former board memberships including East Gippsland Water and Gippsland Water. Current roles include; Director of Gippsland Primary Health Network, Trustee of the Australian Landscape Trust, Trustee of the McPherson Smith Rural Fund and Chair of the Gippsland Vehicle Collection. Duncan is a long-time resident of Biosdale in Victoria, where he has an irrigation property on which he previously dairy farmed and grew vegetables. He was made a Member of The Order of Australia in 2007, had been an Honorary Justice of the Peace since 1984.

Directorʼs Name: Position held: Special responsibilities: Qualifications: Experience:

Rodney Stuart Anderson Director None BSc (Hons) Environmental Planner and Policy Analyst. Senior Victorian Public Servant with experience in coastal planning, forest biodiversity, climate change adaptation and carbon policy, and regional program delivery.

Directorʼs Name: Position held: Special responsibilities: Qualifications: Experience:

David Lindsay Garnock Director None Captain CSC RAN (retʼd) Son of grazier; long-serving decorated Naval Officer; training consultant; experienced coordinator of emergency response, relief and recovery operations and policies; now Councillor for the Cerberus Ward in the Mornington Peninsula Shire

Directorʼs Name: Position held: Special responsibilities: Qualifications:

Ellen Kittson Director None BSc, Grad Dip Applied Science, Grad Dip Ethics and Legal Studies, FAIFS Born and raised in the United States, Ellen Kittson completed her undergraduate science degree in the United States and shortly after began travelling the world with her Australian husband. A short trip to the Galapagos Islands began a lifelong fascination with the natural environment and the need for harmony with development. Arriving in Australia in 1979, Ellen's career was built in government service, working in policy, regulation and technical fields. Ellen completed postgraduate coursework in Ethics and Legal Studies and has a strong commitment to good organisational governance and ethical decision making. Now a resident of Mount Martha, Ellen is semi-retired and keen to ensure a healthy future for the Peninsula, its surrounds and its residents and visitors.

Experience:

4 29

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 DIRECTORS REPORT cont. Western Port Biosphere Reserve

Directorsʼ Report

(ACN 107 484 408)

Details of the directors (Continued) Directorʼs Name: Position held: Special responsibilities: Qualifications: Experience:

Joanne McCoy Director Honorary Treasurer, Member of Executive BSc, Dip Ed., M Env Sci Jo is a former secondary school teacher who taught Geography, Biology and Environmental Science in Melbourne and country Victoria for many years. She then moved to DSE and spent more than a decade as a senior public servant working in conservation and natural resource management policy as well as business management roles. While there, she worked with the Phillip Island Nature Park Board in the early 2000s, was the Project Director for the Land and Biodiversity White Paper from 2007-2009 and the Manager of the Victorian Landcare program from 2010-2011. Jo's family owns a property at Flinders to which she loves to escape at every opportunity. Now semi-retired, Jo volunteers as a guide at Melbourne Zoo and is the area coordinator for the Welcome Dinner Project in Melbourne's east.

Directorʼs Name: Position held: Special responsibilities:

Gillian McDermott Director Deputy Chair of the Board, Member of Executive MBA Gillian is an executive program director with over 25 years experience working in large financial services organisations, including not-for-profit industry super funds. With key strengths in program management and planning, governance and risk management she brings a broad range of management knowledge and experience. Gillian also runs a small business on the Mornington Peninsula. Gillian has a masters degree in business administration

Qualifications: Experience:

Directorʼs Name: Position held: Special responsibilities: Qualifications: Experience:

Lisa Nelson Director None BSc(Hons), MPM, MA Lisaʼs broad work experience encompasses local and state government, mineral exploration, the environment, GIS and tourism. She has been a member of several local, state and federal government committees which focused on regional and economic development, conservation management and threatened species protection. In addition, she has been a director for a community foundation. Lisa has an abiding interest in archaeology and ancient history and has participated in excavations in Spain and the Middle East

Directorʼs Name: Position held: Special responsibilities: Qualifications: Experience:

Neil Rankine Director None B Sc (Hons), Dip Ed. Councillor with the Bass Coast Shire Council Interests include; environmental, economic and social sustainability

Directorʼs Name: Position held: Special responsibilities: Qualifications: Experience:

David Livingstone Young Director None Diploma Farm Management Farmer, Councillor Cardinia Shire, Victorian Farmers Federation, Trust for Nature Covenanter 5

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 AUDITORâ&#x20AC;&#x2122;S INDEPENDENCE DECLARATION

Crowe Horwath Vic ABN 27 621 602 883

MemberHorwath Crowe Horwath Crowe Vic International ABN 27 621 602 883 Audit and Assurance Services Member Crowe Horwath International

Suiteand 3-5Assurance Level 1, 11Services John Street Audit Pakenham VIC 3810 PO Box Suite 3-5 183 Level 1, 11 John Street PakenhamVIC VIC3810 3810 Pakenham Australia PO Box 183 Pakenham VIC 3810 Tel 03 5940 2033 Australia Fax 03 5940 2042 Tel 03 5940 2033 www.crowehorwath.com.au Fax 03 5940 2042 www.crowehorwath.com.au

AUDITORS INDEPENDENCE DECLARATION UNDER SUBDIVISION AUDITORS INDEPENDENCE DECLARATION SUBDIVISION 60-40 OF THE AUSTRALIAN CHARITIES ANDUNDER NOT-FOR-PROFITS 60-40 OF THE AUSTRALIAN NOT-FOR-PROFITS COMMISSION ACT 2012 TO CHARITIES THE BOARDAND OF THE MORNINGTON COMMISSION ACTWESTERN 2012 TO THE BOARD OF THERESERVE MORNINGTON PENINSULA AND PORT BIOSPHERE PENINSULA AND WESTERN PORT BIOSPHERE RESERVE FOUNDATION LIMITED FOUNDATION LIMITED I declare that, in relation to our audit of the financial report of Mornington Peninsula and Western Port Biosphere Reserve Foundation Limited for the financial year ended 30 June 2016, to the best of my I declare that, in relation to our audit of the financial report of Mornington Peninsula and Western Port knowledge and belief, there have been: Biosphere Reserve Foundation Limited for the financial year ended 30 June 2016, to the best of my knowledge and belief, there have been: (a) No contraventions of the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and (a) No contraventions of the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and (b) No contraventions of any applicable code of professional conduct in relation to the audit. (b)

No contraventions of any applicable code of professional conduct in relation to the audit.

CROWE HORWATH VIC CROWE HORWATH VIC

GORDON ROBERTSON Partner GORDON ROBERTSON Date: 23 September 2016 Partner Date: 23 September 2016

Crowe Horwath Vic is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees. Crowe Horwath Vic is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 FINANCIAL STATEMENTS Western Port Biosphere Reserve (ACN 107 484 408)

Western Port Biosphere Reserve (ACN 107 484 408) STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016

Note

STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2016

30 June 2016 $

Note

Continuing operations Revenue from operating activities

CASH FLOW FROM OPERATING ACTIVITIES Other income Grants received Membership fees received Depreciation expense Other income received Employee benefits expense Payments to suppliers and employees Occupancy expenses Interest received Project expenses Net cash used in operating activities Other expenses Deficit before income tax expense CASH FLOWS FROM INVESTING ACTIVITIES Purchases of plant and equipment Income tax expense Net cash used in investing activities Deficit for the year

2 3

11(b)

1(a) 3

Net decrease in cash and cash equivalents Other comprehensive income, net of income tax Cash and cash equivalents at beginning of year Other comprehensive income for the year, net of income tax Cash and cash equivalents at end of year Total other comprehensive income for the year

11(a)

30 June 2015 $

30 June 2016 $ 586,286

30 June 2015 $ 513,925

1,014 537,375 1,318 (2,179) 55,484 (86,206) (621,792) (31,466) 944 (454,847) (26,671) (36,827) (24,225)

2,193 514,718 1,178 (2,357) 38,861 (87,729) (584,221) (26,978) 2,093 (414,877) (27,371) (37,948) (53,771)

(1,188) (1,188) (53,771)

(26,671) 195,923 169,252 -

(28,559) 224,482 195,923 -

(24,225)

Total comprehensive deficit for the year

(24,225)

(53,771)

Deficit attributable to: Members of the company Deficit for the year

(24,225) (24,225)

(53,771) (53,771)

Total comprehensive deficit attributable to: Members of the company Total comprehensive deficit for the year

(24,225) (24,225)

(53,771) (53,771)

The accompanying notes form part of these financial statements. 8

The accompanying notes form part of these financial statements.

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 FINANCIAL STATEMENTS cont. Western Port Biosphere Reserve (ACN 107 484 408)

Western Port Biosphere Reserve (ACN 107 484 408) STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 Note

STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2016

Note

ASSETS CURRENT ASSETS Cash and cash equivalents CASH FLOW FROM OPERATING ACTIVITIES Trade and other receivables Grants received Other assets Membership fees received TOTAL CURRENT ASSETS Other income received Payments to suppliers and employees NON-CURRENT Interest receivedASSETS Property, plant and equipment Net cash used in operating activities TOTAL NON-CURRENT ASSETS

4 5

6 11(b)

TOTAL CASHASSETS FLOWS FROM INVESTING ACTIVITIES Purchases of plant and equipment LIABILITIES Net cash used in investing activities CURRENT LIABILITIES Trade and other payables Net decrease in cash and cash equivalents Unexpended grant revenue Cash and cash equivalents at beginning of year Provisions Cash and cash equivalents at end of year TOTAL CURRENT LIABILITIES

30 June 2016 $

30 June 2015 $

169,252 17,846 537,375 1,929 1,318 189,027 55,484 (621,792) 944 3,364 (26,671) 3,364

195,923 7,288 514,718 1,855 1,178 205,066 38,861 (584,221) 2,093 5,543 (27,371) 5,543

192,391

7 8 9 11(a)

TOTAL LIABILITIES NET ASSETS

(1,188) (1,188)

63,896 (26,671) 81,084 195,923 22,903 169,252 167,883

70,958 (28,559) 73,163 224,482 17,755 195,923 161,876

167,883

161,876

24,508 24,508

48,733 48,733

The accompanying notes form part of these financial statements.

9 The accompanying notes form part of these financial statements.

210,609

24,508

EQUITY Retained surplus TOTAL EQUITY

30 June 2015 $

48,733

Western Port Biosphere Reserve (ACN 107 484 408)

Western Port Biosphere Reserve (ACN 107 484OF 408) STATEMENT CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2016 STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2016 Note

Balance at 1 July 2014 CASH FLOW FROM OPERATING ACTIVITIES Deficit for the year Grants received Other comprehensive income for the year Membership fees received Total comprehensive deficit for the year Other income received Payments to suppliers and employees Balance at 30 June 2015 Interest received Net cash used in operating activities Balance at 1 July 2015

11(b)

CASH FLOWS FROM INVESTING ACTIVITIES Deficit for the year Purchases of plant and equipment Other comprehensive income for the year Net cash used in investing activities Total comprehensive deficit for the year

Retained Surplus $ 30 June 2016 $ 102,504

Total $ 30 June 2015 $ 102,504

(53,771) 537,375 1,318 (53,771) 55,484 (621,792) 48,733 944 (26,671) 48,733

(53,771) 514,718 1,178 (53,771) 38,861 (584,221) 48,733 2,093 (27,371) 48,733

(24,225) -

(24,225) (1,188) (1,188) (24,225)

(26,671) 24,508 195,923 169,252

(28,559) 24,508 224,482 195,923

(24,225)

Net decrease in cash and cash equivalents Balance 30cash Juneequivalents 2016 Cash at and at beginning of year Cash and cash equivalents at end of year

11(a)

The accompanying notes form part of these financial statements.

10 The accompanying notes form part of these financial statements.

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 FINANCIAL STATEMENTS cont. Western Port Biosphere Reserve (ACN 107 484 408)

Western Port Biosphere Reserve (ACN 107 484 408) STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2016 Note

STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2016

Note

CASH FLOW FROM OPERATING ACTIVITIES Grants received Membership fees received CASH FLOW FROM OPERATING ACTIVITIES Other income received Grants received Payments to suppliers and employees Membership fees received Interest received Other income received Net cash used in operating activities Payments to suppliers and employees Interest received CASH FLOWS FROM INVESTING ACTIVITIES Net cash used in operating activities Purchases of plant and equipment Net cash used in investing activities CASH FLOWS FROM INVESTING ACTIVITIES Purchases of plant and equipment Net decrease in cash and cash equivalents Net cash used in investing activities Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

11(b) 11(b)

11(a) 11(a)

30 June 2016 $ 30 June 2016 $ 537,375 1,318 55,484 537,375 (621,792) 1,318 944 55,484 (26,671) (621,792) 944 (26,671) -

30 June 2015 $ 514,718 1,178 38,861 514,718 (584,221) 1,178 2,093 38,861 (27,371) (584,221) 2,093 (27,371) (1,188) (1,188)

(26,671) 195,923 169,252 (26,671) 195,923 169,252

(1,188) (28,559) (1,188) 224,482 195,923 (28,559) 224,482 195,923

The accompanying notes form part of these financial statements.

30 June 2015 $

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 NOTES TO THE FINANCIAL STATEMENTS Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are for Mornington Peninsula and Western Port Biosphere Reserve Foundation Limited trading as Western Port Biosphere Reserve (Western Port Biosphere Reserve) as an individual entity, incorporated and domiciled in Australia. Western Port Biosphere Reserve is a not-for-profit company limited by guarantee. Statement of Compliance The financial report is general purpose financial statements that have been prepared in accordance with Australian Accounting Standards â&#x20AC;&#x201C; Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Australian Charities and Not-for-profits Commission Act 2012. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial statement containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of this financial statement are presented below. They have been consistently applied unless otherwise stated. Basis of Preparation The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement of fair value of selected non-current assets, financial assets and financial liabilities. Historical cost is generally based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. Accounting Policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements, except as explained under changes in accounting policies. (a) Income Tax The company is considered to be exempt from income tax under Subdivision 50-B of the Income Tax Assessment Act 1997 as a charitable institution. (b) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. (c) Plant and Equipment Plant and equipment, other than plant and equipment acquired at incorporation, are brought to account at cost less, where applicable, any accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the assets. Subsequent costs are included in the assetĘźs carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit and loss during the financial period in which they are incurred. The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the estimated replacement cost of the asset. The cost of plant and equipment constructed within the company includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads. Depreciation The depreciable amount of all plant and equipment are depreciated over their useful lives to the company commencing from the time the asset is held available for use.

12 37

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 NOTES TO THE FINANCIAL STATEMENTS cont. Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (c) Plant and Equipment (continued) The depreciation method and rates used for each class of depreciable asset are: Class of Plant and Equipment Furniture and fittings Office equipment Computer equipment

Depreciation rates 33.33% 33% 33.33%

Depreciation method Straight line Straight line Straight line

The assetsʼ residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial performance date. An assetʼs carrying amount is written down immediately to its recoverable amount if the assetʼs carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the profit and loss. (d) Impairment of Assets At each reporting date, the company reviews the carrying values of its assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the assetʼs fair value less costs to sell and replacement cost, is compared to the assetʼs carrying value. Any excess of the assetʼs carrying value over its recoverable amount is expensed, unless the asset is carried at a revalued amount, the impairment loss is then treated as a revaluation decrease. (e) Financial Instruments Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified at fair value through profit or loss in which case transaction costs are expensed to profit or loss immediately. Classification and Subsequent Measurement Finance instruments are subsequently measured at fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as: (i) the amount at which the financial asset or financial liability is measured at initial recognition; (ii) less principal repayments; (iii) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and (iv) less any reduction for impairment. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

13 38

Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (e) Financial Instruments (continued) i. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost. ii. Financial liabilities, including trade and other payables Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent armĘźs length transactions, reference to similar instruments and option pricing models. Impairment At each reporting date, the company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment loss has arisen. Impairment losses are recognised immediately in profit and loss. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. (f)

Employee Benefits Provision is made for the companyĘźs liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. Contributions are made by the company to an employee superannuation fund and are charged as expenses when incurred.

(g) Provisions Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at reporting date. (h) Revenue Grant revenue is recognised in the profit and loss when the company obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably. If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

14 39

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 NOTES TO THE FINANCIAL STATEMENTS cont. Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (h) Revenue (continued) When grant revenue is received whereby the company incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. Where the entity receives a non-reciprocal contribution of assets from the government and other parties for zero or a nominal value, these assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the profit and loss. A liability for unexpended grants is recognised where there is a condition in the funding terms that unspent grants will be required to be repaid and the organisation has not received formal notification that they are entitled to retain this funding at balance date; or where the grantor of the funding (being the other party to the contract) has created an expectation that unspent funds should be treated as a current liability. Revenue from the rendering of a service, including membership revenue is recognised upon the delivery of the service to the customers. Interest revenue is recognised using the effective interest rate method. Donations are recognised as revenue when received. All revenue is stated net of the amount of goods and services tax (GST). (i)

Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the Statement of Financial Position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.

(j)

Leases Lease payments under operating leases, where substantially all the risk and benefits remain with the lessor, are charged as expenses on a straight line basis over the period of the lease.

(k) Critical Accounting Estimates and Judgments The Board of Directors evaluates estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company. Key estimates i. Impairment The company assesses impairment at each reporting date by evaluation of conditions and events specific to the company that may be indicative of impairment triggers. No impairment has been recognised in respect of property, plant and equipment at reporting date. Key judgments i. Provision for impairment of receivables The Board of Directors believe that receivables of $165 (2015: $165) included in trade receivables amounting are not recoverable and no amount has been regarded as doubtful. 15 40

Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (l)

Adoption of new and revised accounting standards The company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the company.

(m) Standards and Interpretations affecting the reported results or financial position There are no new and revised Standards and Interpretations adopted in these financial statements affecting the reporting results or financial position. (n) Going Concern The Foundations operations are reliant on grant funding and the contributions from its five local councils. Currently four councils contribute toward the overhead costs and the Directors are not aware, at this time, of any changes to that arrangement. The contributions are determined as part of the council budgeting process and the Foundation makes representation for a continuance of the arrangement that has been in place since establishment of the Foundation. Of the Foundations current grants, Growing Connections will finish at 30th June 2017, Water Stewardship 31st December 2017 and Ramsar 30th June 2018. The Foundation is in the process of preparing submissions for additional grants and has implemented a process to identify and secure sponsors to raise additional funding. The Board consider it reasonable to assume that the Foundation will be successful in its funding submissions but can implement expenditure cuts if deemed necessary. Due to the above the financial statements have been prepared on a going concern basis.

16 41

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 NOTES TO THE FINANCIAL STATEMENTS cont. Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

Note NOTE 2: REVENUE Revenue from government grants and other grants Grant revenue – Commonwealth government Grant revenue – State government Biodiversity fund Local government contributions Other grant revenue Other operating revenue - Administration costs recouped - Membership revenue - Donations

30 June 2016 $

30 June 2015 $

8,972 386,555 72,000 61,927

17,969 1,297 360,480 70,000 18,827

529,454

468,573

55,439 1,318 75

43,784 1,178 390

56,832

Total operating revenue Other income - Interest income - Sundry income

Total other income Total revenue and other revenue

45,352

586,286

513,925

944 70

2,093 100

1,014

2,193

587,300

516,118

1,399 272 508

407 1,008 942

22,412

19,800

169,082 170

195,753 170

NOTE 3: DEFICIT FOR THE YEAR Deficit for the year, before income tax, is arrived at after taking into consideration the following expenses: Depreciation expense: - Computer equipment - Office equipment - Furniture and fittings

2,179

Operating lease expenses: - Office rental NOTE 4: CASH AND CASH EQUIVALENTS Cash at bank Cash on hand

The effective interest rate on cash at bank was 1.15% (2015: 1.00%). Cash at bank is available on call.

17 42

169,252

2,357

195,923

Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

Note NOTE 5: TRADE AND OTHER RECEIVABLES Trade receivables Less: Provision for impairment of receivables

(a)

Other receivables

30 June 2016 $

30 June 2015 $

5,764 (165)

5,664 (165)

17,846

7,288

5,599 12,247

5,499 1,789

(a) Current trade and term receivables are unsecured and generally on 14 day terms. A provision for impairment is recognised when there is objective evidence that an individual trade or term receivable is impaired. The movement in the provision for impairment of receivables at reporting date are set out in the table below: Balance at 1 July Reversal of provision

165 -

250 (85)

NOTE 6: PROPERTY, PLANT AND EQUIPMENT Office equipment: At cost Accumulated depreciation

3,000 (2,217)

3,000 (1,945)

Computer equipment: At cost Accumulated depreciation

9,466 (8,259)

9,466 (6,860)

Furniture and fittings: At cost Accumulated depreciation

4,672 (3,298)

4,672 (2,790)

3,364

5,543

Balance at 30 June

165

783

1,207

1,374

Total property, plant and equipment

165

1,055

2,606

1,882

18 43

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 NOTES TO THE FINANCIAL STATEMENTS cont. Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

NOTE 6: PROPERTY, PLANT AND EQUIPMENT (Continued) Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Office Computer Furniture equipment equipment and fittings Total $ $ $ $ Balance at 1 July Depreciation

Balance at 30 June

1,055 (272) 783

2,606 (1,399) 1,207

Note NOTE 7: TRADE AND OTHER PAYABLES Current Unsecured Trade payables Payroll liabilities

Net GST payable

NOTE 8: UNEXPENDED GRANT REVENUE Current Biodiversity fund grant PPWCMA Ramsar Protection Western Port Helen Macpherson Smith Trust & Project Partners

5,543 (2,179)

30 June 2016 $

30 June 2015 $

45,876 7,783

46,898 9,768

1,374

53,659 10,237

3,364

56,666 14,293

63,896

70,959

5,254 75,830

7,388 2,559 63,216

22,903

17,755

81,084

NOTE 9: PROVISIONS Current Annual leave

1,882 (508)

73,163

Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

NOTE 9: PROVISIONS (Continued) Movement in provisions

Balance at 1 July 2015 Revaluations and provisions raised during year Amounts used

Balance at 30 June 2016

Annual leave $

Total $

17,755 15,303 (10,155)

22,903

Provision for Employee Entitlements A provision has been recognised for employee entitlements relating to annual leave for employees. The measurement and recognition criteria for employee benefits have been included in Note 1. NOTE 10: MEMBERSĘź GUARANTEE The Company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the Company is wound up the constitution states that each member is required to contribute a maximum of $10 towards meeting any outstanding obligations of the Company. At 30 June 2016 the total amount that members of the company are liable to contribute if the Company is wound up is $520 (2015 $610). Note NOTE 11: CASH AND CASH EQUIVALENTS (a) Reconciliation of cash and cash equivalents Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows: Cash at bank Cash on hand Total cash and cash equivalents

(b) Reconciliation of net cash used in operating activities with deficit for the year Deficit for the year Non-cash flows included in the deficit for the year Depreciation Changes in assets and liabilities: (Increase)/decrease in trade and other receivables Increase in other assets Increase in trade and other payables Increase in unearned grant income Increase in provisions

30 June 2016 $

30 June 2015 $

169,082 170

195,753 170

(24,225)

(53,771)

2,179

2,357

(10,558) (74) (7,062) 7,921 5,148

(5,418) (71) (23,802) 46,145 7,189

169,252

(26,671)

195,923

(27,371)

20 45

WESTERN PORT BIOSPHERE RESERVE ACN 107 484 408 NOTES TO THE FINANCIAL STATEMENTS cont. Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

Note

30 June 2016 $

30 June 2015 $

NOTE 12: KEY MANAGEMENT PERSONNEL COMPENSATION Any person(s) having authority or responsibility for planning and controlling the activities of the company, directly or indirectly, including any director (whether executive or otherwise) of that entity is considered key management personnel (KMP). The totals of remuneration paid to KMP of the company during the financial year are as follows: KMP compensation

The directors are the key management personnel and did not receive remuneration. NOTE 13: RELATED PARTY TRANSACTIONS Related parties include close family members of KMP and entities that are controlled or jointly controlled by those KMP individually or collectively with their close family members. Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other persons unless otherwise stated. There were no related party transactions during the year. NOTE 14: FINANCIAL RISK MANAGEMENT Financial Risk Management Policies The companyĘźs financial instruments consist mainly of deposits with banks, short-term deposits and accounts receivable and payable. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Financial Assets Cash and cash equivalents Receivables (excluding statutory assets)

4 5

169,252 17,846

195,923 7,288

Financial Liabilities Financial liabilities at amortised cost: - Trade and other payables (excluding statutory liabilities)

53,659

56,666

Total Financial Assets

Total Financial Liabilities

187,098

53,659

203,211

56,666

NOTE 15: EVENTS AFTER REPORTING DATE No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years. NOTE 16: CONTINGENT LIABILITIES There are no contingent liabilities as at 30 June 2016 (2015: $nil).

21 46

Western Port Biosphere Reserve

Notes to the Financial Statements For the Year Ended 30 June 2016

(ACN 107 484 408)

Note NOTE 17: LEASING COMMITMENTS Operating Lease Commitments Payable - minimum lease payments - not later than one year - later than one year and not later than five years Present value of minimum lease payments

30 June 2016 $

30 June 2015 $

21,226 -

24,572 21,226

21,226

45,798

Operating leases comprise: (a) An office lease for Unit 2/184 Salmon Street, Hastings which is a non-cancellable operating lease contracted for but not capitalised in the financial statements with a 36-month term expiring in May 2017. NOTE 18: COMPANY DETAILS The registered office and principal place of business of the company is: Western Port Biosphere Reserve Unit 2/184 Salmon Street HASTINGS VIC 3915

22 47

WESTERN PORT BIOSPHERE PORT BIOSPHERE RESERVE ACN RESERVE 107 484 408ACN 107 484 408 DIRECTORS DECLARATION REPORT

WESTERN PORT BIOSPHERE RESERVE ACN ACN 107 107 484 484 408 408 DIRECTORS REPORT INDEPENDENT AUDITORS REPORT

Crowe Horwath Vic ABN 27 621 602 883Vic Crowe Horwath ABN 27 621 602 883 Member Crowe Horwath International Member Crowe Horwath International

Audit and Assurance Services

Audit and Assurance Services Suite 3-5 Level 1, 11 John Street Pakenham VIC1,3810 Suite 3-5 Level 11 John Street PO Box 183 Pakenham VIC 3810 Pakenham VIC 3810 PO Box 183 Australia VIC 3810 Pakenham

INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT

Australia Tel 03 5940 2033 Fax03035940 59402033 2042 Tel www.crowehorwath.com.au Fax 03 5940 2042 www.crowehorwath.com.au

To the Members of Mornington Peninsula and Western Port Biosphere Reserve Foundation Limited To the Members of Mornington Peninsula and Western Port Biosphere Reserve Foundation Limited We have audited the accompanying financial report of Mornington Peninsula and Western Port Biosphere Reservethe Foundation Limited, which comprises statementPeninsula of financial position as at 30 We have audited accompanying financial report of the Mornington and Western Port June 2016,Reserve the statement of profit or loss and comprises other comprehensive income, statement of changes in Biosphere Foundation Limited, which the statement of financial position as at 30 equity2016, and statement of cash flowsor forloss the and yearother then ended, notes comprising a summaryofofchanges significant June the statement of profit comprehensive income, statement in accounting policies and otherflows explanatory information, and the directors’ declaration. equity and statement of cash for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. Directors’ Responsibility for the Financial Report Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true directors and fair ofview in accordance with Australian – Reduced Disclosure The the company are responsible for the Accounting preparation Standards of the financial report that gives a Requirements and the Australian Charities and Not-for-profits 2012 and for such Disclosure true and fair view in accordance with Australian Accounting Commission Standards –ActReduced internal controland as the determine is necessary to enableCommission the preparation the financial Requirements thedirectors Australian Charities and Not-for-profits Actof2012 and for report such that gives a true view and is free from material to misstatement, whether due or error. internal control asand thefair directors determine is necessary enable the preparation of to thefraud financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our responsibility audit in accordance with Australian Auditing Those standards we comply Our is to express an opinion on theStandards. financial report based on our require audit. that We conducted withaudit relevant ethical requirements relating to audit engagements plan and perform audit to our in accordance with Australian Auditing Standards. Thoseand standards require that the we comply obtain reasonable assurance aboutrelating whethertothe financial report is free misstatement. with relevant ethical requirements audit engagements and from planmaterial and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the The procedures procedures toselected depend on theabout auditor’s judgement, the An auditfinancial involvesreport. performing obtain audit evidence the amounts andincluding disclosures assessment of the risks The of material misstatement the financial whether due to fraud or error. in the financial report. procedures selected ofdepend on thereport, auditor’s judgement, including the In making those the auditor considers internal control relevant company’s assessment of therisk risksassessments, of material misstatement of the financial report, whether due to to the fraud or error. preparation of therisk financial report that a true and fair view incontrol order to designtoaudit In making those assessments, thegives auditor considers internal relevant the procedures company’s that are appropriate in the report circumstances, not and for the of expressing opinion on the preparation of the financial that gives but a true fair purpose view in order to design an audit procedures effectiveness of the association’s internal control. auditof also includes evaluating the that are appropriate in the circumstances, but not for the An purpose expressing an opinion on the appropriateness accounting policiesinternal used andcontrol. the reasonableness accounting estimates madethe by An audit ofalso includes evaluating effectiveness of ofthe association’s the directors, as of well as evaluating the used overall presentation of the financial report. estimates made by appropriateness accounting policies and the reasonableness of accounting the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditthat opinion. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence Independence In conducting our audit, we have complied with the independence requirements of the Australian Charities and our Not-for-profits Actwith 2012. confirm thatrequirements the independence In conducting audit, we Commission have complied the We independence of the declaration Australian required by Australian Charities and Not-for-profits Commission Act the 2012, which has been given to Charities andtheNot-for-profits Commission Act 2012. We confirm that independence declaration the directors Mornington Peninsula and WesternCommission Port Biosphere Reserve Foundation Limited, required by theofAustralian Charities and Not-for-profits Act 2012, which has been given to would be in the terms ifPeninsula given to the committee at the time of the auditor’sFoundation report. the directors of same Mornington and WesternasPort Biosphere Reserve Limited, would be in the same terms if given to the committee as at the time of the auditor’s report.

Crowe Horwath Vic is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial Crowe Horwath Vic is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent services licensees. legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

PORT BIOSPHERE RESERVE ACN 107 484 408 DIRECTORS REPORT

Crowe Horwath Vic ABN 27 621 602 883 Member Crowe Horwath International

Audit and Assurance Services

Opinion

Suite 3-5 Level 1, 11 John Street Pakenham VIC 3810 PO Box 183 Pakenham VIC 3810 Australia Tel 03 5940 2033 Fax 03 5940 2042

In our opinion the financial report of Mornington Peninsula and Western www.crowehorwath.com.au INDEPENDENT AUDITOR’S REPORT Port Biosphere Reserve Foundation Limited has been prepared in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, To the Members of Mornington Peninsula and Western Port Biosphere Reserve Foundation Limited including: (a) giving a true and fair view of Mornington Peninsula and Western Port Biosphere Reserve We Foundation have audited the accompanying financial of2016 Mornington Peninsula and Westernand Port Limited’s financial position as at report 30 June and of its financial performance Biosphere Reserve Foundation Limited, the statement of financial position as at 30 cash flows for the year ended on thatwhich date; comprises and June 2016, the statement of profit or loss and other comprehensive income, statement of changes in and statement of cash flows for the year then ended, notes comprising a summary of significant Disclosure Requirements and (b)equity complying with Australian Accounting Standards – Reduced accounting policies and other explanatory information, and the directors’ declaration. Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Directors’ofResponsibility for the Financial Report Emphasis Matter The directors of our the opinion, companywe aredraw responsible the financial that report gives a Without qualifying attentionfor to the Notepreparation 1(n): GoingofConcern in thereport financial true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure which indicates the company’s operations are reliant on grant funding and the contributions from its Requirements and the Australian Charities and Not-for-profits Commission Act 2012 and for such five local councils. internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair viewinand is free from material misstatement, due to fraud error. These conditions disclosed Note 1(n): Going Concern indicate whether the existence of aormaterial uncertainty that may impact on the ability of the company to continue as a going concern should the Auditor’s disclosed Responsibility processes in Note 1(n): Going Concern not be successful.

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures CROWE HORWATH VIC The procedures selected depend on the auditor’s judgement, including the in the financial report. assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the association’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by GORDON ROBERTSON the directors, as well as evaluating the overall presentation of the financial report. Partner Pakenham We 29 believe that the2016 audit evidence we have obtained is sufficient and appropriate to provide a basis Date: September for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Australian Charities and Not-for-profits Commission Act 2012. We confirm that the independence declaration required by the Australian Charities and Not-for-profits Commission Act 2012, which has been given to the directors of Mornington Peninsula and Western Port Biosphere Reserve Foundation Limited, would be in the same terms if given to the committee as at the time of the auditor’s report.

Mornington and Peninsula and Western Port Biosphere Reserve Foundation Ltd Unit 2, 184 Salmon street (Postal: PO Box 261) Hastings VICTORIA 3915 Australia P 03 59792 167 E info@biosphere.org.au