Marine Rescue NSW Financial Report 2014-15 by Marine Rescue NSW

Annual Report 2014 - 2015

Contents

FINANCIAL STATEMENTS & REPORTS YEAR ENDED 30 JUNE 2015 Volunteer Marine Rescue NSW ABN: 98 138 078 092 CFN: 21153 (A company limited by guarantee)

2014-2015 at a glance

Report of the Chair 2 Report of the Commisioner 6 Operations 10 A safe, modern fleet 13 Recognising our people 14

The Registered Office of the company is: Volunteer Marine Rescue NSW (Trading as Marine Rescue NSW) Building 1, 202 Nicholson Parade Cronulla NSW 2230

Unit facilities 15 Working with our colleagues 16 Training & education 18 IT & communications 20

Phone: 02 8071 4848 Fax: 02 9544 0491 Web: mrnsw.com.au Email: admin@mrnsw.com.au

Our partnerships 21 Fundraising & grants 22 Supporting our volunteers 24 Saving lives 26

Report Design and Layout Nicole Brown

Investing in our fleet 30

Directors’ qualifications & experience 39

Directors’ Report 36

Declaration of independence by Grant Thornton 43 Independent Auditor’s Report 44 Responsible Entities’ declaration 46 Fundraising appeals declaration 47 Statement of profit & loss & comprehensive income 48 Statement of financial position 49 Statement of changes in funds 50 Condensed statement of cash flows 51 Notes to the financial statements 52 Appendix A: Submission to State Rescue Board Annual Report

2014-2015 at a glance Evans 30 returns a disabled charter boat with 10 people on board across the Evans River bar after it was stranded with a disabled motor. Photo: Steve Cooper.

Operating regions

Units

Volunteer members

3,141

Men

2,376 (76%)

Women

765 (24%)

Operational staff

New and refurbished vessels (over life of MRNSW)

63, worth more than $14m

Operational fleet

Vessels assisted

3,001

Life-endangering emergencies

775

Other assists

2,226

Radio calls

310,342

Vessels Logged On

70,243

Radio sets

335

MRNSW radio towers/masts

MarineRescue mobile App downloads (March 7 - June 30)

7,300+

MarineRescue mobile App Log Ons (March 7 - June 30)

3,146

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Report of the Chair Drummoyne MP John Sidoti, MRNSW Deputy Commissioner Dean Storey, Chair James Glissan and MR Trial Bay Unit Commander Chris Mainey celebrate our success in the 2014 NSW Water Safety Awards.

Chair James Glissan ESM, QC

t is my pleasure to present the Marine Rescue NSW Annual Report and Financial Statements for 20142015. July 1, 2014, marked the fifth anniversary of the legal formation of MRNSW, bringing together the experience of three former services into a single, independent entity. It is enormously satisfying to look back at what we have achieved together in such a short space of time. We introduced a new generation of marine rescue service in our state and over five years have more than delivered on our promise of a stronger future for our members and the boating community. The organisation was built from the keel up, carving out our singular identity with a new name and bold livery and uniforms; overhauling an ageing fleet with modern and safe vessels; introducing common training; setting down new procedures and policies; introducing a range of efficient and smart IT and communications programs and equipment; and forging a common culture based on our shared commitment to community service. We are not resting on our laurels, however, and the hard work of organisational progress and - more crucially - saving lives on the water has continued throughout 2014-15. As always, our volunteers have put othersâ&#x20AC;&#x2122; needs

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before their own security and comfort to respond to 3,001 vessels in need of assistance, including 775 in immediate peril. Our Radio Operators responded to more than 310,000 radio transmissions. This is a heavy workload for a service of resourceful and dedicated volunteers but one our members shoulder with a constructive and cheerful approach to getting the job done. The delivery of new and refurbished vessels has continued to dominate our capital expenditure this year. Another 16 new and refurbished vessels were delivered, including eight rapid response Rescue Water Craft (jet skis), which are particularly suited to work on coastal bars and up river. These craft add to our response flexibility and adaptability, while providing members with the opportunity to acquire a new capability. As I pointed out in last yearâ&#x20AC;&#x2122;s report, the modernisation of the fleet requires concentrated funding, with more than $14 million to date devoted to this program. The Board believes the provision of safe new vessels is of the greatest benefit not only to our members but also to the boaters whom we serve. We are approaching the point at which each unit will have received a new or comprehensively refurbished primary rescue vessel, which will then lead us to the

Port Hacking 30 practises precision drills with the NSW Ambulance Service’s Rescue 24 off Hungry Point at Cronulla.

delivery of new secondary vessels in coming years. We have made strides in training this year, with members earning 2,274 individual qualifications. The launch of the MarineRescue mobile App in March was well received. As well as supporting our Radio Operators by facilitating electronic Log Ons, this smart technology has the potential to save lives on the water, providing boaters with a range of safety information and resources we hope they never need to use. We could not have built MRNSW or continued to operate efficiently and successfully without the ongoing financial support of the NSW Government, in the form of direct grant funding of $1.6 million in 2014-15, and the members of the boating community, who have this year generously contributed $5.9 million to our operation through the levy on boating registrations and licences. On behalf of all our members, I again place on the record our appreciation for this vital support. For those interested in isolating the investment of this Government and levy funding in our operations, services and volunteer support programs, please refer to Appendix A on Page 67, which is a copy of the 2014-15 MRNSW financial submission to the NSW State Rescue Board Annual Report, reconciling this expenditure. Due to timeframe requirements, this submission may vary

slightly from the final audited reports. Any variations can be reconciled with the consolidated audited financial statements. Even with support of this magnitude, we continue to rely heavily on our volunteers’ fundraising efforts to help provide our vital safety services. The Board of Directors is proud to be elected to provide strategic leadership for our organisation. The Board’s responsibilities include oversight of the company’s corporate governance; setting the high-level direction and priorities for the allocation of funding, assets and resources; and monitoring the organisation’s performance and compliance with legislative and regulatory obligations. We are assisted in these duties by management and our external Board advisers, Commander of the NSW Police Force Marine Area Command, Detective Superintendent Mark Hutchings APM and NSW Roads and Maritime Services Director Corporate Services, Mr Paul Hesford. I thank them both for their assistance and expertise. The Directors are mindful of the abiding need to exercise our powers with the interests of the members and the organisation at the centre of every decision. Our focus on the volunteers and their wellbeing is cemented during our bi-monthly meetings outside

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

“We introduced a new generation of marine rescue in our state and have more than delivered on our promise of a stronger future.” 4 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

The crew of Jervis Bay 40 travelled 22nm offshore to tow this hand-built vintage vessel to safety. Photo: Lester Shute.

Sydney. The opportunity to meet our members in their “workplaces” is one of the most enjoyable aspects of the Directors’ roles and we thank all the units that have hosted our meetings for their goodwill and hospitality. This year, we have welcomed the first woman elected to the Board by her peers, Patricia Fayers ESM, from MR Central Coast. Mrs Fayers was elected as a General Director, along with David White ESM, from MR Cottage Point, as Greater Sydney Regional Director and William Carter ESM, from MR Shoalhaven, as Illawarra Regional Director. All have made considered contributions to the Board’s deliberations. On behalf of the Board, I thank the outgoing Directors - foundation General Director Michael Stringer AM, ESM, Greater Sydney Regional Director Robert Wilson and Illawarra Regional Director Doug Musker ESM, along with Howard Staples, who has retired for family reasons - for their service to the Board, robust discussion and commitment to our members and our organisation. I also thank my fellow Directors for their trust in again electing me as Chair. The Board also has the honour of awarding the highest recognition our organisation can bestow, Life Membership of MRNSW. To reach this pinnacle, a member needs to have made a significant contribution to the organisation beyond his or her own unit. At the 2014 Annual General Meeting, Life Membership was conferred upon Dr Peter Taylor, from MR Shoalhaven, Michael Seale from MR Broken Bay and John Lynch, from MR Forster-Tuncurry. As well as our own awards, it has been particularly gratifying this year to see our organisation and a number of our members win welcome public accolades for their service, skill and experience. In particular, congratulations to Mr Musker, MR Central

Coast senior Coxswain Norm Smith and MR Wooli Unit Commander and training dynamo Richard Taffs, who were awarded the prestigious Emergency Services Medal in the Queen’s Birthday honours. This medal is presented to thank individuals who have made a notable contribution and through them, their colleagues across the emergency management sector. The end of the financial year coincides with unit elections, which have seen a number of new Unit Commanders and Deputy Unit Commanders join the ranks of our local leadership. These are time-consuming and demanding positions. I thank all our outgoing leaders for their service and welcome those who are now taking on their new responsibilities. In closing, I would like to acknowledge Commissioner Stacey Tannos ESM for his enormous efforts on behalf of us all and our staff members for going above and beyond what could be expected. The Commissioner continues to provide strong leadership and a clear vision for our ongoing growth and development. Our members can be assured that the Commissioner and staff are constantly striving to improve our organisation and support our volunteers in their work. Most importantly, on behalf of the Board, I place on the record again our abiding appreciation of our volunteers and their spirit of community service. Their knowledge, resourcefulness and willingness to serve and protect the NSW boating community are beyond question, no matter the roles they undertake. They embody the best of Australian volunteerism. We can take pride that, together, we are providing a recognised world-class rescue service to the boating community of New South Wales and saving lives on the water.

James L Glissan ESM, QC Chair, Volunteer Marine Rescue NSW

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Report of the Commissioner Commissioner Stacey Tannos and the crew of Port Hacking 30 at the MR Botany Port Hacking base and MRNSW Headquarters at Cronulla.

Commissioner Stacey Tannos ESM

arine Rescue NSW could not carry out its mission to save lives on the water without the constant vigilance and skill of our volunteers. We are continually searching for ways to support our members in their core roles and increasingly, we are delivering technological solutions. The launch of the MarineRescue mobile App on March 7 was the culmination of a three-year project to deliver an integrated suite of technology - the App and the Seahawk and Radio Club member management systems - to help our volunteers work smarter, rather than harder. The App is an innovative product that enables boaters to Log On with MRNSW electronically and have their journeys tracked by a responsible safety agency. Warmly welcomed by boaters, the App was downloaded more than 7,300 times between March 7 and June 30. By yearâ&#x20AC;&#x2122;s end, 3,146 Log Ons had been made via the App, representing more than 15 per cent of the total vessels Logged On at any given point. This smart technology reduces the amount of marine radio traffic our Radio Operators need to juggle, particularly at peak times and immediately alerts us if a boater is overdue and has not Logged Off.

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In an emergency, the optional tracking service can pinpoint where to start a search for a missing boat, saving our rescue vessel crews valuable time when every minute can mean the difference between life and death. Throughout 2014-15, our crews assisted 3,001 boats in trouble, including 775 in life-endangering (notifiable) emergencies. Putting more information at their disposal through the App and Seahawk systems can help them achieve a life-saving outcome more quickly and improved boating safety. We again saw a number of operations in dangerous conditions and traumatic circumstances in 2014-15. The crew of Port Stephens 40, who headed out to rescue two men in cyclonic conditions in April, Shellharbour membersâ&#x20AC;&#x2122; mission to assist two men and a young boy in rough seas in October and the extensive search for a five-year-old boy lost from Pearl Beach in July are just some of the demonstrations of the skill, courage and resilience of our volunteers, who have again selflessly put the safety of others ahead of their own. Our boat crews are supported in their work by our Radio Operators, Watch Officers and others who gather information, keep watch over the airwaves and waterways and maintain our communication with the boating community - not least through 310,342 radio

Coffs 30 ... the new 9.5m Naiad RHIB took part in an emergency operation on its delivery voyage.

transmissions throughout the year. When trouble strikes on the water, the calm, experienced voice of an MRNSW Radio Operator telling you help is on the way is immensely reassuring. The other group essential to our success are those members who perform critical support roles: the administration and membership officers, treasurers and fundraisers, operations and IT officers, caterers, stores officers and all those who carry out the countless other important roles that sometimes can go unrecognised. I thank each of our 3,141 members for your hard work for our organisation and the boating community throughout the year. As I noted in last yearâ&#x20AC;&#x2122;s report, our emergency services volunteers are a tremendously valuable asset to our State; an asset no government or community could afford to financially recompense. Again, I extend my appreciation, as well as my congratulations, on a job tremendously well done. As the Chair has noted in his report, on July 1, 2014, MRNSW marked the fifth anniversary of its foundation. We have achieved a great deal together over this time; more so than many would have thought possible. The greatest sign of our progress has been the exponential increase in the safety and reliability of

our fleet. This has been a major factor in our arrival as a modern, professional, welll-equipped and skilled emergency service. This year we continued our capital investment in the enhancement of our fleet, with eight new and refurbished rescue vessels and eight Rescue Water Craft delivered, at a cost of $1.48 million. Thanks to the modernisation program that has been ongoing throughout the lifespan of MRNSW, 63 new and refurbished vessels, worth more than $14 million, have joined the fleet. A number of new RWCs have this year succeeded earlier vessels supplied in recent years. MRNSW is the sole owner and operator of the marine radio communications network for the NSW recreational boating community. This is an important responsibility, which requires an increasing investment of funding and resources. A comprehensive review of the operational communications infrastructure and services was completed this year. This has provided a communications blueprint for investment through to 2020. While some projects and enhancements can be undertaken within existing resources, the delivery of a comprehensive system-wide upgrade will be largely reliant on securing additional funding support.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Above: Commissioner Stacey Tannos joins MRNSW personnel at the launch of the MarineRescue mobile App at the Sydney Trailerboat and Outdoor Leisure Show in March.

Right: The crew of Port Stephens 40 takes under tow a 10m charter fishing boat with 12 people on board stranded near Broughton Island by mechanical problems.

The 2015-2018 Strategic Plan outlines our key priorities for the coming three years within a realistic framework of available funding, resources and personnel. This maps out a path enabling us to continue striving for excellence as we build and develop the organisation, in the context of a responsible and accountable approach to our operations and expenditure. This year we received a total of $7.5 million from the NSW Government through a direct grant and members of the boating community, who pay a modest levy on their recreational boat licences and registration to suppport our operations. We are grateful for this crucial financial support. We work closely with a number of other emergency services, government agencies and service providers. Our thanks go to the Commander of the NSW Police Force Marine Area Command, Detective Superintendent Mark Hutchings APM and his staff for their collaboration and confidence.

Stacey Tannos ESM Commissioner

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Thanks also to NSW Rural Fire Service Commissioner Shane Fitzsimmons AFSM and RFS staff and members for their cooperation and sharing of resources. I would also like to place on the record our appreciation for the support of the Minister for Emergency Services and the Minister for Roads and Freight, along with Government agencies, including the Ministry for Police and Emergency Services and NSW Roads and Maritime Services. Thanks also must go to our generous sponsors and donors, along with our suppliers of vessels, equipment and services. My personal thanks go to the members of the MRNSW Board for their continuing strategic leadership and support and to our staff members for their professional contribution and many long hours. Above all else, thank you again to each and every one of our 3,141 volunteers for always remaining vigilant and committed to our mission of saving lives on the water.

“The calm, experienced voice of an MRNSW Radio Operator telling you help is on the way is immensely reassuring.”

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Operations Trial Bay 11 and 12 operators Dylan Cameron (rear) and Josh Woodhead on the new Rescue Water Craft delivered this year. Photo: Holly Tunningley.

arine Rescue NSW services the busiest coastline and waterways in Australia and in 2014-15 our 3,141 dedicated volunteers excelled in the delivery of our life saving work, collectively contributing almost 620,000 volunteer hours to their frontline duties. Both on the water and the radio airwaves, our 45 units delivered a 24/7 safety monitoring and response capability that saw our members assist 3,001 boats in trouble, bringing more than 5,600 members of our community home safely - including those caught in 775 serious (notifiable) emergencies. The level of marine rescue activity was again at its highest over the peak of the summer boating season, testing personnel and equipment but validating the embedded pre-summer focus on Search and Rescue drills, member training and equipment maintenance across all units. Although there is less activity overall, the winter often provides greater environmental challenges and risks when emergencies do arise and 2014-15 was no different. Over the 12 month period, our Radio Operators handled 310,342 radio transmissions, and Logged On 70,243 vessels, giving their skippers the peace of mind of knowing someone responsible was watching over them while they were on the water. While the majority of

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this communication took place over VHF and to a lesser extent 27MHz radio, the release of the MarineRescue mobile App on March 7 has given boaters a new option of Logging On electronically. These safety results were not achieved with a single new piece of equipment or revised Standard Operating Procedure, however, but through the ongoing work of our dedicated and professional volunteers, day in, day out. Be it the Unit Commander crafting the near impossible duty roster that works for all, or the Vessel Master guiding the crew through testing conditions to save a life, the true value of what our people do each year cannot be measured in dollars. It is, indeed, priceless. Despite our efforts and those of our emergency service partners, a number of boating fatalities still occurred in 2014-15, reflecting an ongoing need for our services. The Royal Life Saving Society reported that 271 people drowned in Australia during the year, including 53 involved in watercraft activities. MRNSW remains committed to public education. We continued to promote safe boating practices and were a major supporter of the State Governmentâ&#x20AC;&#x2122;s Old4New lifejacket safety campaign this year, with our members involved at dozens of public events at boat ramps and other high-profile locations.

A sock in a leaking bunghole and the crews of Central Coast 20 (above) and Terrigal 30 saved these two men on a sinking runabout 13km off Terrigal in August 2014. Photo: Peter Alderton.

THREE-YEAR MRNSW OPERATIONAL TRENDS 2014-15

2013-14

2012-13

Total

Vessels assisted

3,001

3,046

3,226

9,273

Emergencies

775

749

1,062

2,586

Radio calls

310,342

364,368

369,991

1,044,701

Vessels Logged On

70,243

79,696

84,317

234,256

2014-2015 MRNSW OPERATIONS YTD

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

March April

May

June

No. of radio calls

310,342 27,827 21,784 23,843 25,462 23,412 32,743 33,784 23,778 28,147 25,228 22,409 21,907

No. of Log Ons – local

62,266

5,248

2,727

4,326

4,830

4,050

7,412

7,804

5,769

6,437

4,918

4,288

4,457

No. of Log Ons – offshore

7,977

606

341

450

484

566

948

1,113

793

558

952

656

510

No. of emergency assists

775

104

No. of assists – tows

1,581

124

143

172

194

266

146

126

116

No. of assists – jump starts

150

No. of assists – medical assist 45

No. of assists – transport assist 64

No. of assists – pump outs

No. of assists – other

361

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Operations Marine Rescue Terrey Hills Radio Operators Helen Medhurst and Robert Elvin in the unitâ&#x20AC;&#x2122;s refuburbished radio room.

2014-15 MRNSW OPERATIONAL OUTCOMES Life-endangering (notifiable) emergencies

775

Persons on Board (POB)

1,526

Other vessel assists

2,226

Persons on Board (POB)

4,102

Radio calls logged

310,324

Vessel Log Ons

70,243

Persons on Board (POB)

186,184

Volunteer duty hours (rostered shifts, excluding call-outs) Search & Rescue Coordination Centres

245,280

Marine radio bases

60,320

Marine rescue vessels

313,200

Total volunteer duty hours

618,800

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A safe, modern fleet The new Crowdy 30 was showcased at the 2014 Sydney International Boat Show before being trucked north to Taree to make its delivery run to Harrington via the Manning River.

he dominant capital works investment of 2014-15 was in the continuing modernisation of the MRNSW rescue vessel fleet. This program is delivering purposedesigned rescue boats tailor-made or substantially refurbished for their local operating conditions, ensuring our units have safe, reliable and contemporary vessels. Since the establishment of MRNSW, 63 new and refurbished vessels, worth more than $14 million, have entered the fleet, including eight new and refurbished vessels and eight Rescue Water Craft (RWC) this year, at a cost of $1.48 million. These include replacements for older model RWCs at the Nambucca and Trial Bay units and an RWC to replace a small inflatable boat at MR Port Macquarie. We have continued to upgrade on-board equipment, with Raymarine cameras progressively being fitted forward and aft on new vessels for incident review and training. Handheld UHF radios allow MRNSW crews to communicate directly with their Surf Life Saving colleagues, boosting service inter-operability. The Deputy Commissioner established the new Fleet Advisory Team to provide a source of operational advice and a discussion forum on vessels and equipment. The team is Richard Taffs, Chris Mainey, Ken Clancy, Ray Masurek, Glenn Evans and Mark Jolly.

NEW & REFURBISHED VESSELS 2014-15 Crowdy 30, 9.5m Naiad

$370,000

Coffs 30, 9.5m Naiad

$370,000

Central Coast 22, 6.8m Ocean Cylinder

$235,000

X Ray 22, 5.95m Ocean Cylinder

$124,000

X Ray 21, 5.45m Ocean Cylinder

$106,000

Point Danger 30, refurbished

$78,000

Hawkesbury 21, refurbished

$51,000

Central Coast 20, refurbished as Central Coast 21

$37,000

Port Macquarie 10, Sea-Doo RWC

$13,750

Lake Macquarie 13, Sea-Doo

$13,750

Trial Bay 11, Sea-Doo

$13,500

Trial Bay 12, Sea-Doo

$13,500

Nambucca 10, Sea-Doo

$13,500

Central Coast 11, Sea-Doo

$13,500

Tuross 13, Sea-Doo

$13,500

X Ray 10, Sea-Doo

$13,500

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Recognising our people The Governor of NSW, His Excellency General The Honourable David Hurley AC DSC (Ret’d), meets members at the launch of the 2015 Rotary Emergency Services Community Awards in March.

arine Rescue NSW members earned well-deserved praise and recognition for their commitment, skill and service throughout 2014-15. Life Membership of MRNSW is the pinnacle of the recognition we can grant to those who have made a sustained and significant contribution to our organisation. At the 2014 MRNSW Annual General Meeting, Life Membership was conferred upon John Lynch, from MR Forster-Tuncurry, Michael Seale from MR Broken Bay and Dr Peter Taylor, from MR Shoalhaven. In the Queen’s Birthday Honours, the Emergency Services Medal was awarded to MR Wooli Unit Commander Richard Taffs, MR Central Coast senior Coxswain Norman Smith and former Illawarra Regional Director and MR Ulladulla Unit Commander Doug Musker. Two members of MR Central Coast, Terry Reynolds and Dennis Byrne, received the Commissioner’s Commendation for Courage for their bravery in rescuing a 15m yacht disabled on Broken Bay in 2010. Our volunteers’ enormous efforts earned MRNSW the title of Most Outstanding Contribution to Water Safety by an Organisation at the 2014 NSW Water Safety Awards. MR Forster-Tuncurry also took out the Water Safety Event of the Year award for its January Water Expo. MR Cottage Point member David White and MR Botany

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Port Hacking also were commended in the Outstanding Contribution by an Individual and Local Community Initiative categories, respectively. MR Port Kembla Deputy Unit Commander Graeme McCrudden was named the Emergency Services Officer of the Year in a Volunteer Capacity in the Rotary Pride of the Illawarra awards, the first time a member of MRNSW has taken out the top volunteer title. Our other nominee was fellow Port Kembla member Geoff Fitzgerald. The Rotary awards are being extended to encompass the entire State in 2015. The MRNSW finalists for these awards, announced in June, are Derek Ford, of MR Port Macquarie, Eryl Thomas, of MR Port Stephens, Dennis Travers, of MR Forster-Tuncurry and Illawarra Regional Controller Bruce Mitchell. Other members acknowledged during the year included MR Narooma Unit Commander John Young, named the South Coast/Southern Inland Region’s 2014 Volunteer of the Year and Adult Volunteer of the Year, and Eden member Neville Cowgill, who was named the Region’s Senior Volunteer of the Year. MR Ulladulla members John Kennedy and Raymond Dixon were presented with Premier’s Volunteer Recognition Program awards for more than 25 years’ service to the boating community.

Unit facilities The Marine Rescue Newcastle unit was left homeless after the April 21 East Coast Low storm ripped the roof off its base. Photo: Bill Johnston.

massive storm whipped up by an East Coast Low on April 21 damaged a number of MRNSW bases, with the Marine Rescue Newcastle unit hardest hit. The unit was left homeless after the cyclonic winds ripped off a large proportion of its roof, exposing the interiors and contents of the heritage-listed cottage to extensive water damage. Across the Hunter-Central Coast Region, the Lake Macquarie unit’s Pelican base was swamped, gates and wall panels were damaged at Terrigal, the Central Coast unit’s jetty and awning were damaged and MR Norah Head maintained operations on back-up power and diminished radio equipment. In Sydney, the Middle Harbour unit was left at risk of being undermined by the severe erosion of sand and soil under its building. MR Lake Macquarie continued to provide radio coverage for Newcastle boaters while the Newcastle unit and Headquarters personnel worked to locate new premises for the unit. Members of MR Ulladulla have been operating in temporary facilities since the destruction of their base in a fire in October 2013. They moved into their new home on May 26. The new base includes a high-tech Search and

Rescue Coordination Centre, dedicated training space, amenities and equipment storage. Throughout the year, planning continued for new facilities to replace the ageing and dilapidated MR Ballina radio tower and MR Port Macquarie Search and Rescue Coordination Centre on Town Beach. On October 31, the Terrey Hills unit opened its refurbished base. The $200,000 project at the key Sydney communications centre incorporated the installation of new-generation IT and communications equipment. Mermbers of MR Merimbula celebrated a major milestone in their unit’s evolution with the opening of their new $145,000 base. The new facilities have provided the unit with a modern radio room, dedicated training facility, storage and its own amenities. A number of units also received grants to improve their facilities under the State Government’s 2014 Community Building Partnerships and the joint StateCommonwealth 2013-14 and 2014-15 Emergency Volunteer Support Scheme programs.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Working with our colleagues MRNSW volunteers ready to greet the boating public at the Sydney International Boat Show.

he NSW Police Force is the agency responsible for coordinating rescue response, both on land and water, in this State. The Police Marine Area Command and MRNSW have a strong working relationship that allows the two agencies to work cooperatively to ensure the provision of an effective and robust level of marine protection for the boating community. As well as responding to emergency calls throughout the year, MRNSW crews have supported the Marine Area Command in a number of multi-agency Search and Rescue operations. A number of these have been conducted under trying circumstances involving loss of life and our members’ professional response has been well noted by MAC. MRNSW Regional Controllers were based in the MAC over the peak summer boating season to further boost the agencies’ inter-operability. Their role was to assist the State Duty Manager to task MRNSW resources, resulting in improved service delivery for the boating community. MAC also is heavily involved in our training regime, particularly delivering both theoretical and practical training to members through our annual Regional Search and Rescue Exercise program. Commissioner Stacey Tannos is the MRNSW

16 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

representative on the NSW State Rescue Board and State Emergency Management Committee. This year the State Rescue Policy was reviewed to better reflect contemporary marine rescue arrangements, including MRNSW’s role as the sole recognised volunteer marine rescue service; the accreditation of units rather than vessels; and recognition of our own Standard Operating Procedures as the protocols that enable us to deliver our services in accordance with our operational tasking relationship with MAC. We are proud to be good neighbours and support our community both on and off shore. MRNSW units have again provided on-water, communications and logistical support for a range of celebrations, competitions and other community events. These included the start of the Sydney to Hobart Yacht Race on Boxing Day, New Year’s Eve fireworks, Australia Day activities, Anzac Day ceremonies, the Easter Fishing Classic and Hot Current Game Fishing Tournament at Coffs Harbour, Emerald Beach Fair, Offshore Superboat Series, Ulladulla Blessing of the Fleet, Mullum to Bruns Paddle, Sydney to Gold Coast yacht race, Hawkesbury Bridge to Bridge Water Ski Race and Canoe Classic and the Merchant Mariners Memorial Service. Members again gave their time to talk to thousands

A beautiful morning for a SAREX ... NSW Police and MRNSW vessels ready for a search and rescue exercise off Ballina in November 2014.

of people at the Boating Industry Association of NSW’s 2014 Sydney International Boat Show and 2015 Sydney Trailerboat and Outdoor Leisure Show about MRNSW’s boating safety net, our services and recruitment. Units also took part in NSW Roads and Maritime Services’ Boating Safety Day ahead of the start of the summer boating season and strongly supported the Old4New lifejacket campaign, a NSW Government initiative to encourage boaters to wear modern, comfortable lifejackets on the water, especially when in smaller vessels. Units also brought together a range of other services and agencies to promote boating safety at events such as MR Forster-Tuncurry’s Water Expo in January. As well as working to support our marine colleagues, MRNSW members also again demonstrated the emergency services cooperation that is the hallmark of the State’s emergency management procedures. The April 21 storms whipped up by an East Coast Low caused widespread destruction, particularly across the Hunter/Central Coast and Sydney. MRNSW Greater Sydney Region volunteers supported the storm response and recovery operations, answering public calls for information and assistance at the Public Information Inquiry Centre at the NSW Police Centre in

Sydney and queries to the Disaster Welfare Information Line operating from the NSW Rural Fire Service Headquarters at Lidcombe. More than 30 of our volunteers were among emergency services personnel who received free tickets to the first State of Origin match on May 27 as a gesture of thanks from the NRL for their response to assist the community in the storms’ aftermath. Members of the Port Stephens, Lake Macquarie, Newcastle, Central Coast, Hawkesbury, Cottage Point, Terrey Hills, Port Jackson and Botany Port Hacking units attended, with 10 members joining a lap of honour to rousing applause. Thirty MRNSW volunteers also gave their time in November to undertake additional training to support bushfire emergency operations. Our members’ professional, calm and friendly approach led the RFS to seek a core group to assist with communications support in answering public inquiries for information. Thanks must go to our volunteers’ families and employers, without whose support they would not be able to leave their homes and workplaces to undertake their duties with MRNSW to assist, support and protect the people of NSW. They are also part of our wide emergency services community.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Training & education Members from all eight HunterCentral Coast Region units and MRNSW staff gather at Newcastle for the first Regional SAREX of 2015.

major investment of resources and personnel has been channelled into the ongoing development of the MRNSW training program throughout 2014-15. The training curriculum, delivered by the MRNSW Registered Training Organisation, is custom-designed to provide members with the skills and knowledge required for MRNSWâ&#x20AC;&#x2122;s specific operational activities and environments. It is aligned with educational regulations and requirements set by the Federal Government and training authorities such as the Australian Skills Quality Authority (ASQA). Over the past year, existing training and assessment material has been validated, new high-quality resources created and MRNSW operational requirements cemented at the forefront of the curriculum. Building on the release of the new Crew Rating training package in 2013, new resources, including Skills Logs and Operational Assessments, are being finalised for the Radio Operator, Leading Crew, Coxswain, Watch Officer, Search and Rescue Support Officer and Rescue Water Craft Operator ratings. The number of validated trainers and assessors has increased to more than 200 to help meet vounteer demand for training.

18 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Throughout 2014-15, this enabled us to continue to build capability, with members gaining nationallyrecognised qualifications in a range of courses. Our continuous improvement processes rely on feedback from members on the training they receive, with a survey of trainees revealing a high satisfaction rating. The Commissioner has continued to work with the Australian Maritime Safety Authority and volunteer rescue services in other jurisdictions to ensure the requirements of the Marine Safety (Domestic Commercial Vessel) National Law Act 2012 are appropriate and relevant to the needs and operations of the volunteer marine rescue sector around Australia, without placing a more onerous and unnecessary burden on our volunteers. This has culminated in the agreement between AMSA and the National Volunteer Marine Search and Rescue Committee to develop the Scheme R (Rescue) training and qualification requirements for our sector. We also continued to harness technology to better deliver training and creatively increase and maintain skills and knowledge. An online training calendar, allowing volunteers to book places in training and education courses, was launched in May.

Members of Marine Rescue Forster-Tuncurry prepare to take to the water during a Sea Survival course led by Regional Training Manager Rodney Page.

This will be expanded to enable members of the community to enrol in units’ boating safety, marine radio and other public education courses. New navigation training aids were developed this year in conjunction with our electronics supplier Raymarine. A suite of six mobile navigation and radar equipment training simulators, replicating the electronic equipment installed on newer rescue vessels in the fleet, allows members to undertake off-water training to fine-tune their skills via realistic navigational scenarios for all local waters on the eastern seaboard. A series of coordinated multi-agency marine Search and Rescue Exercises (SAREX) was staged at Batemans Bay (October), Ballina (November), Newcastle (March) and Port Macquarie (June). Units put a great deal of effort into hosting and participating in these exercises, which not only test agencies’ response protocols and practices but also allow us to build stronger working relationships with our search and rescue partners. As part of our commitment to preventing marine emergencies through boating education, a number of MRNSW units conduct Safe Boating and Personal Water Craft (jet ski) courses and licence testing. In the 2014 calendar year, 21 units conducted 226

courses. A total of 1,008 adults and 187 young adults took a boat driver’s licence course and licence test, with a further 142 adults and 12 young adults undertaking a PWC course/test. TRAINING QUALIFICATIONS ISSUED IN 2014-15 Provide First Aid

725

Provide Advanced Resuscitation

689

Radio Operator

420

Crew

202

Watch Officer

107

Leading Crew

Coxswain

Rescue Water Craft Operator

Search & Rescue Support Officer

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

IT & communications The new MarineRescue mobile App was launched on March 7, 2015.

he launch of the new MarineRescue mobile App on March 7 was the culmination of our integrated project to harness contemporary communications technology to support our volunteers and improve boating safety. The free App is the only one on the market that connects boaters directly to MRNSW, allowing them to Log On and Log Off electronically via their smartphone or tablet device. Suitable for both Apple and Android products, it also provides boaters with a range of information and resources that could help save lives in an emergency. The App is the third in the integrated suite of IT tools, building on the introduction of the Seahawk vessel tracking system and the Radio Club member management system. The overall system was developed by Alive Mobile, with the assistance of $280,000 in NSW Government Water Safety Black Spots Fund grants. The MRNSW e-shop opened on March 6, stocking a range of safety and boating products. The shop is open to the public, with discounts available as a gesture of thanks to MRNSW volunteers and Radio Club members. MRNSW owns, operates and funds the State’s only marine radio communications network for recreational boaters and is responsible for the maintenance and development of the infrastructure to support this

20 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

“Triple Zero of the sea” system. The major Operational Communications Review of infrastructure and services was completed in 2014-15, including an independent technical evaluation financed by a $25,000 Water Safety Black Spots Fund grant. The Review sets out a communications blueprint to 2020, largely reliant on future funding support. An Operational Communications Strategy has enabled the prioritisation of the existing communications budget to achieve the greatest value to improve boating safety. Goals include improving radio coverage and quality along the coastline, greater operational support and training for MRNSW radio operators and improved joint agency communication and emergency response. Throughout the year, the Radio over Internet Protocol (RoIP) system was expanded to incorporate the Point Danger and Port Macquarie units, in addition to MR Narooma, Merimbula and Eden. This web-based system provides additional support to these units, enabling their marine radio communications to be seamlessly monitored from a central location. Radio operators from MR Terrey Hills, which operates around the clock, support their regional colleagues by monitoring and responding to their radio traffic overnight or during operator absences.

Our partnerships Michael Guest, the host of Reel Action TV, which features a series of ‘infomercials’ taking Marine Rescue’s safety messages to the boating community.

ur network of preferred suppliers was extended in 2014-15 to incorporate a communications network management agreement with Karera. The focus of this three-year agreement, signed on November 3, 2014, is on preventative maintenance of the radio network and equipment. It covers the unit radio facilities and repeater sites that form the backbone of the marine communications network that is solely owned, operated and maintained by MRNSW to provide essential communications for the recreational boating community. The Karera agreement follows the two preferred supplier arrangements established in 2013-14. Under the two-year Power of Choice agreement, Suzuki Marine is our preferred supplier of outboard motors for the rescue fleet. Raymarine supplies our onboard electronic navigation and search equipment. We are always looking for new and innovative ways to take our safety messages to the boating community. This year we re-signed our initial two-year agreement with Michael Guest, the producer and host of Reel Action TV, which attracts a weekly audience of 200,000 keen fishers and boaters to Network Ten’s One HD channel. MRNSW features in a number of ‘infomercials’ on Reel Action. Our involvement now extends to the 2017 series.

In December 2012, we announced a new partnership with one of Australia’s leading retailers, BCF. In the 30 months to June 2015, MRNSW received $182,770 from a program enabling BCF customers to round up the cost of their purchases to the dollar amount of their choice, with the additional amount donated to MRNSW (donations over $2 being tax deductible). Customers can now contribute through MRNSW donation collection boats located on BCF store counters. Thanks must go to the organisations that advertise in our quarterly journal, Soundings, showcasing our work and their products and services. We also have established valued relationships with the following businesses that support our work: • Alive Mobile, developer of the Seahawk system and MarineRescue mobile App, • NetBit, which developed the Otter system and online training calendar, • HP, which provides discounts on computer equipment for our organisation, units, volunteers and Radio Club members through the MRNSW e-shop, which can be accessed via shopmrnsw.com.au and • AnchorBridle and BlueBottle Fishing, which also give generous discounts on their products to our volunteers and Radio Club members through the e-shop.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Fundraising & grants The lucky winners of the MR Point Danger boat-motor-trailer raffle, Greg Kearney, Mary Mew and Nathan Oliver with member Gary Ashby.

his was the third year of our successful State raffle fundraising campaign to supplement our core funding with additional revenue to maintain our vital safety services. We again supported our units by providing them with an attractive prize package, each valued at $8,900, to raffle: a Quintrex 390 Explorer family runabout fitted with a 9.9hp Mercury 4-stroke outboard on a registered Quintrex trailer, along with a safety kit comprising two lifejackets, anchor rope and chain, torch, bailing kit, V sheet and oars. Aside from some limited administrative costs, units retained the funds they raised. This year’s raffles have raised approximately, $400,000, with some campaigns still under way at year’s end. Thank you to all who supported our units’ efforts. Planning is now under way for an innovative new fundraising campaign in 2015-16. MRNSW benefited from more than $800,000 in grants, including funds from the State Government Community Building Partnership and Water Safety Black Spots Fund programs, the joint Commonwealth-State Emergency Volunteer Support Scheme and others, including Clubs NSW and local councils. Twelve units received a total of $303,281 under the

22 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

2014 Community Building Partnerships grants program. Projects funded by these grants include work on the slipway at MR Lake Macquarie’s Pelican base, access for people with disabilities at MR Port Stephens, new jetties for MR Cottage Point and Middle Harbour, upgraded security on the MR Iluka Yamba tower and further works on the MR Shellharbour base. MR Terrigal will put its funding under the program towards a new tender vessel and MR Port Macquarie and Ulladulla towards their redeveloped radio bases. Ten units were successful in their applications for 2014-15 Emergency Volunteer Support Scheme grants. These grants are to help upgrade training equipment for MR Botany Port Hacking, Camden Haven, Cottage Point, Crowdy Harrington, Point Danger, Shellharbour, Terrigal and Ulladulla. MR Broken Bay and Port Stephens also received funding for training programs and MRNSW Headquarters to help produce new member induction and training tools and volunteer recruitment kits. MRNSW acquitted grants from 2013-14 programs during the year, including more than $90,000 under the Emergency Volunteer Support Scheme. This funding included a total of $44,000 for training facility fit-outs or equipment at the Woolgoolga, Terrey Hills, Ballina, Port Jackson and Shellharbour units and

Kiama Leagues Club Operations Manager Peter Wright presents MR Port Kembla Unit Commander Peter Purnell with a cheque for $3,500 to assist with the cost of the unit’s AirBerth for Port Kembla 30.

another $6,500 for Port Kembla to upgrade its Ski Park base at Oak Flats. Another $40,000 was provided to assist with the cost of an audio-visual production and other materials to promote MRNSW and boating safety and recruit new members. This audio-visual package was produced by Reel Action TV producer and host Michael Guest and released on March 7 to coincide with the launch of the MarineRescue smartphone App. A number of other grants were gratefully received, including: • $80,000 in NSW Government Water Safety Black Spots Fund grants to provide three regional education and recruitment trailers and towards the Operational Communications Review. • MR Hawkesbury received $20,000 from the Mooney Mooney Club to supply and install electronic equipment on Hawkesbury 21 and buoyancy material worth $2,500 from Excel Marine. • MR Kioloa and Ulladulla received $2,500 each in combined funds from Milton Ulladulla Ex Servos Club, Milton Ulladulla Bowling Club and Mollymook Golf Club for a fire cabinet and training room computers, respectively. • MR Port Kembla benefited from grants worth a total

of $14,000 from Club Windang, the Illawarra Master Builders Club, Corrimal RSL Club and the Kiama Leagues Club. • Smithfield RSL Fishing Club donated $25,000 to MR Shoalhaven, the Veolia Mulwaree Trust presented the unit $11,420 toward the cost of installing the new Point Perpendicular VHF remote station to enhance marine radio coverage and Greenwell Point Bowling and Sport Club also handed over $4,000. Thank you to all the organisations and bodies allocating grants funding and also to our sponsors and donors, including the many local businesses and community groups that support our units’ operations through generous donations, both financial and in-kind. This support extends to members of the community, who continue to give generously to our many fundraising endeavours, whether it be our boat-trailer-motor raffles, a meat raffle at the club or the monthly beachside markets. Each one contributes to our mission to save lives on the water.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Supporting our volunteers Above: MRNSW on the world stage ... personnel attending the International Association for Volunteer Effort World Volunteering Conference.

Right: Safe travels ... Ulladulla 30 plays a pivotal role in the Easter Blessing of the Fleet ceremony. Photo: Lisa Hardwick.

arine Rescue NSW volunteers have this year had the opportunity to broaden their learning experiences at a number of conferences and emergency management courses. Thirteen members from seven units represented our organisation at the 23rd International Association for Volunteer Effort World Volunteering Conference on the Gold Coast, with another six members from five units attending the World Youth Conference. The Commonwealth Attorney Generalâ&#x20AC;&#x2122;s Department provided funding for the volunteers to attend the conferences, with MRNSW supplementing this amount to enable more members to attend to share their experience with volunteers from around the globe. Two members from Newcastle and Cottage Point took part in the Volunteer Leadership Program conducted at the Australian Emergency Management Institute. The program aims to enhance volunteer agency capacity through developing the leadership skills of middle to senior level emergency management volunteers. Member Services Manager Mat Smith was appointed in August 2014, joining MRNSW from the Emergency Services Division of the Australian Red Cross. Mr Smith has focused on supporting unit leaders

24 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

and members, Work Health and Safety and volunteer recognition, recruitment and retention. In 2014/15, financial support totalling approximately $1.2 million was provided to our units. This included annual budget allocations to assist our units with their routine operational expenses, fuel and rescue vessel repairs and maintenance; telephone and data payments; and the cost of the boat-motor-trailer raffle prizes provided free of charge to units to support their fundraising efforts.

“We are proud to be good neighbours and support our community, both on and off shore.”

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Saving lives The crew of Port Stephens 40 battled through driving rain and wind gusts up to 140km/h whipped up by an East Coast Low to rescue two boaters whose catamaran (above) was smashed on rocks in Fame Cove.

he evening of April 21 was a night to remember for the crew of Port Stephens 40, with an East Coast Low off the Hunter coast whipping up huge seas and destructive winds. As darkness approached, Port Stephens 40 embarked with Rob Johnson, Richard Pizzuto, Barney Pinney, Laurie Nolan, Barbara Cole, Peter Merlino and Paul Sullivan on board, pitching and rolling violently in a very short and steep 3-4 metre sea churned up by a howling wind from the south-west registering 45-55 knots (92+ km/h) and gusting to 78 knots (140 km/h). Visibility was restricted to barely 50m in the driving rain and sea spray. Radio Operators Tony Oâ&#x20AC;&#x2122;Donnell, Angela Tilling and Colin Foote established that the sole occupant of a boat aground on Corlette Point was reasonably comfortable, although two men on board a grounded vessel at Pindamar were concerned about their situation. A large sailing catamaran had dragged its mooring in Fame Cove and was on the rocks. As PS 40 passed the Anchorage, the catamaranâ&#x20AC;&#x2122;s crew reported that the boat was starting to break up and they were preparing to abandon ship. PS 40 proceeded at best speed to Fame Cove, with the Skipper driving blind down the heading provided by the navigator. Rounding Fame Point at 5.41pm, PS 40

26 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

discovered the catamaran crew had made landfall on the rocky finger of land that had claimed their boat. The deck crew worked quickly to launch the small inflatable Y-boat with some difficulty. Laurie Nolan and Barney Pinney climbed aboard as it was buffeted and tossed about.They edged their way towards the survivors, manoeuvring up the creek on the eastern side where there was some shelter from the wind. They took the two men aboard and headed back to PS 40 as fast as the Y-boat and conditions would allow. The wind and rain were shooting in from the westsouth-west as the crew turned into the marina and the navigator noted an apparent wind speed reading of 68 knots (126km/h). PS 40 made cautious progress down the main channel, with the vessel continuing to be hammered by storm force winds and horizontal rain as it attempted to berth. The deck crew could barely stand and picking up a line with a boat hook was nigh on impossible. On the eighth approach, the skipper drove the bow forward and one of the crew managed to jump from the bow to the berth. A second crewman alighted on the next approach, lines were passed and the vessel was finally brought alongside. Richard Pizzuto

Crews keep careful watch from on board Broken Bay 30 and Central Coast 20, two of the five MRNSW vessels that joined the search for a missing five-yearold boy on Broken Bay. Photo: David White.

mergency crews were quick to respond when a fiveyear-old boy was swept by a large wave from Pearl Beach out into the surf about 2pm on July 9, 2014. With his family unable to reach him, the NSW Police Brisbane Water Local Area Command began a search along the beach from land and air, calling in the Broken Bay Marine Area Command (MAC) and Marine Rescue Central Coast vessels to search nearby waters. Central Coast 20 and police vessels were on scene within an hour, searching until the light faded. Additional MRNSW support was requested to join the search the next morning, with Acting Greater Sydney Regional Controller David White activating all local units. Hawkesbury 22, Cottage Point 20, Cottage Point 30, Broken Bay 30 and CC 20 were on scene at first light. A coordinated line search was planned to search Broken Bay from West Head and Barrenjoey to the south and Umina and Ocean Beach to the north. Conditions were good with light to moderate breezes from the west. Vessel spacings were set at 20m to ensure the area was combed thoroughly. Surf Life Saving craft covered the beach and surf zone and police divers scoured inshore waters, with the POLAIR and Westpac helicopters above. After a fruitless search inside Broken Bay, the line search was extended several miles eastwards to

Maitland Bay and three miles southwards before an inshore line search from Pearl Beach began. CC 20 was despatched to search the Brisbane Water Channel to Ettalong and HW 22 to the Broken Bay foreshores from Juno Point on the north and south sides of Broken Bay. Vessels were stood down in the late afternoon. At 8am the next day, MRNSW vessels again rendezvoused with police. CC 20 was tasked to search beach areas to the east of Broken Bay and CP 30 beaches to the south. Remaining vessels conducted a line search through the northern section of Broken Bay, with dozens of Surf Life Saving vessels also involved, combing the white water beach areas and shoreline. MAC stood down all MRNSW vessels at noon, with the overall search scaled down. MR Hawkesbury and Cottage Point vessels undertook additional searches in the area on the following day and weekend. Sadly, the little boyâ&#x20AC;&#x2122;s body was finally found on July 22, washed up on Pearl Beach after some very high seas. Acting RC White said all vessels and crews had performed in an exemplary manner, both in their readiness to support the search at short notice and their focus and professionalism, earning much praise from the police and other supporting agencies.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Saving lives Shellharbour 30 ... ‘it gives you confidence to go to sea in such a great vessel’.

ctober 5, Rugby League Grand Final Day. At 2.30pm, two men and a 12-year-old boy left Gerringong boat harbour in a 4m tinnie for an afternoon’s fishing, without logging on to a Marine Rescue base and wearing only light clothing. The weather forecast was for 15-20 knot north to north-east winds, turning southerly up to 25 knots in the evening. At 5.15pm, as I was eagerly awaiting the Grand Final kick off on TV, I received a phone call from the frightened boy asking for help as their boat had run out of fuel 1km east of Gerringong boat harbour. The wind had already turned from the south and their anchor would not hold. Skipper Shane Gallaty, Geoff Troth, Matt Vann and I headed out on board Shellharbour 30 at 6.05pm to assist the distressed vessel 12nm to the south. Shoalhaven 30 was also tasked from the south to help. Once round Bass Point, SH 30 steered south but could not make any greater speed than 10 knots, pushing into wind gusts of 60 knots and short steep seas up to 4m. We kept in regular touch with the tinnie passengers by mobile phone as their radio was out of service with a broken antenna. They had no GPS. Just after sunset a sea fog reduced visibility to 2nm. The trio informed us that they were taking on water.

28 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

By then it was total darkness. SH 30 was lit by navigation and strobe lights to increase its visibility to the distressed crew, who were also asked to switch on their navigation lights. Their boat was low in the water and not detected by radar but once they could see our lights they talked us towards them via the phone. Only when we were no more than 100m away could we see their lights. With much difficulty due to the wind and seas, a line was attached and all three passengers were taken aboard SH 30. Wet and very cold, they were wrapped in blankets inside the closed cabin. In a long, slow trip, the tinnie was towed into Kiama Harbour. The boy did an exceptional job to keep a cool head, as he was the only person communicating with us by phone until the last few minutes when his father took over. In 10 years, I have been in some rough conditions but nothing anywhere near as bad as that night. The 10m Naiad handled the conditions beautifully. It gives you confidence to go to sea in such a great vessel, along with a well trained and professional crew. SH 30 returned to its mooring at 9.30pm, when I receive a phone call from my eight-year-old grandson to say Souths had won. Peter Keft

The crew of Bermagui 30 performed two marathon operations within two days.

n a marathon operation, a crew of volunteers from Marine Rescue Bermagui rescued a group of five adults and two children stranded at sea when their large cruiser ran out of fuel off the Continental Shelf on July 24. Acting Monaro Regional Controller Glenn Sullivan said the operation took more than 10 hours to complete, given the distance the rescue crew had to travel to reach the fishing boat and return it to safety. “This vessel was trawling a long way offshore. This would be one of the longest operations, over the largest distance, that our crews have mounted in this region,” Mr Sullivan said. The skipper of the 10 metre Bertram flybridge cruiser alerted the Bermagui unit at 10.51am that he had run out of fuel while trawling more than 34 nautical miles (about 63 km) offshore, on the edge of the Shelf. The NSW Police Force Marine Area Command at Eden subsequently tasked the unit to respond in the prevailing conditions. The crew, Steven Angelo, Ray McLeod, Mark Donnelly and Caron Parfitt, had Bermagui 30, the unit’s 38-foot Steber, under way by 11.50am and was able to make good speed, travelling at 21 knots. The crew located the vessel at its last known position and took it under tow for the long trip home, which was

necessarily much slower at only 5 knots, towing a vessel of the cruiser’s size. Two days later, the unit’s volunteers were called out to rescue a fishing boat stranded far offshore by a fault with the vessel’s fuel pump. MAC at Eden tasked the crew at 10.30am to rescue the 8.3m boat adrift 24 nautical miles (40km) out to sea with four people on board. Bermagui 30 reached the disabled vessel in just over an hour after leaving harbour. The return journey was successfully completed in around three and a half hours.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Investing in our fleet T

he fleet modernisation program has seen 63 new and refurbished vessels join our fleet since the creation of MRNSW in 2009, including eight new and refurbished boats and eight Rescue Water Craft in 2014-15 (including replacement RWCs at MR Trial Bay, Nambucca and Port Macquarie). All have been funded through the support of the NSW Government and boating community and unitsâ&#x20AC;&#x2122; fundraising. Point Danger 30, above, was refurbished this year.

Brunswick 30 (BR 30)

Ballina 30 (BA 30)

Evans 30 (EH 30)

Iluka Yamba 30 (IY 30)

Wooli 30 (WI 30)

Woolgoolga 30 (WO 30)

Coffs 30 (CO 30)

Nambucca 20 (NH 20)

Nambucca 10 (NH 10) - replacement

Trial Bay 11 & Trial Bay 12 (TB 11 & TB 12) - 1 replacement

Trial Bay 30 (TB 30)

Former Port Macquarie 10 (PM 10)

Port Macquarie 10 (PM 10) - replacement

Camden Haven 30 (CH 30)

Crowdy 20 & Crowdy 30 (CB 20 & CB 30)

Forster 30 (FO 30)

Port Stephens 30 (PS 30)

Lemon Tree 30 (LT 30)

Newcastle 30 (NC 30)

Lake Macquarie 30 (LM 30)

Lake Macquarie 13 (LM 13)

Tuggerah Lakes 20 (TL 20)

Tuggerah Lakes 21 (TL 21)

Central Coast 21, 22 & 11 (CC 21, CC22 & CC 11)

Broken Bay 20 (BB 20)

Hawkesbury 21 (HW 21)

Hawkesbury 22 (HW 22)

Middle Harbour 30 (MH 30)

Port Jackson 20 & Port Jackson 30 (PJ 20 & PJ 30)

Botany 30 (BY 30)

Port Hacking 30 (PH 30)

Port Kembla 20 (PK 20)

Port Kembla 30 (PK 30)

Shellharbour 30 (SH 30)

Shoalhaven 30 (SA 30)

Jervis Bay 40 (JB 40)

Jervis Bay 20 (JB 20)

Sussex Inlet 30 (SI 30)

Ulladulla 30 (UL 30)

Kioloa (KL 20)

Batemans 30 (BM 30)

Batemans 21 (BM 21)

Batemans 20 (BM 20)

Tuross 13 (TU 13)

Narooma 30 (NA 30)

Narooma 11 (NA 11)

Narooma 12 (NA 12)

Bermagui 30 (BG 30)

Merimbula 30 (MA 30)

Alpine Lakes 20 (AL 20)

Alpine Lakes 21 (AL 21)

Moama 20 (MO 20)

X Ray 21 & X Ray 22 (X 21 & X 22)

X Ray 10 (X 10)

Directorsâ&#x20AC;&#x2122; Report New General Director Patricia Fayers ESM, Illawarra Regional Director William Carter ESM and Greater Sydney Regional Director David White ESM after the 2014 Board elections.

he Directors of MRNSW submit the annual financial report of the company for the year ended 30 June 2015. The Directors consider the reference to responsible persons and entities in the Australian Charities and Not-for-profits Commission Act 2012 has the same meaning as the role of Director as defined by the Corporations Act 2001. To comply with the Australian Charities and Not-for-profits Commission Act 2012, the Directors report as follows: DIRECTORS The Directors during the year until the date of this report and the number of meetings held and attended are: Name

Date Appointed/ Elected

Status

No of meetings Meetings while director attended

Mr J L Glissan ESM, QC

3/7/2009

Current

Mr J M A Stringer AM, ESM 3/7/2009

Term ended 29/11/2014 2

Mr A Drover

11/12/2010

Current

Mr R A Wilson

11/12/2010

Term ended 29/11/2014 2

Mr H Staples

11/12/2010

Resigned 18/4/2015

Mr J Lynch

3/12/2011

Current

Mr D Musker ESM

24/11/2012

Term ended 29/11/14

Mr A Long BM VA

23/11/2013

Current

Mr B Gabriel ESM

23/11/2013

Current

Mrs P Fayers ESM

29/11/2014

Current

Mr D White ESM Mr W Carter ESM

29/11/2014 29/11/2014

Current Current

6 6

6 5

36 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Between Board meetings, Directors met with unit Members in regional locations. COMPANY SECRETARY Mr Robert Wilson continued as Company Secretary until 8 February 2015, when Chief Financial Officer, Mr Alan Skelley, was appointed as his replacement. PRINCIPAL ACTIVITY Marine Rescue NSW provides a volunteer marine search and rescue service and radio safety service for boaters on NSW waters. The company operates in accordance with the requirements of relevant legislation and authorities, including the State Rescue Board and the NSW Police Force Marine Area Command. The company’s members also work to promote boating safety by providing a range of public boating education and engagement activities. FINANCIAL RESULTS The net surplus of the company for the year was $2,595,172 before Other Comprehensive Income (2014 $2,605,191). DIVIDENDS The Marine Rescue NSW Constitution does not permit any payment of dividends to members. SUBSEQUENT EVENTS There are no significant events subsequent to the end of the financial year. FUTURE DEVELOPMENTS The company has an Operational Funding Agreement from 2011 to 2017 with the State Government through the Ministry for Police and Emergency Services (formerly Emergency Management NSW). This agreement secures a future funding stream, provided by a direct Government grant and a levy on recreational boat registrations and licences, to assist the company with the cost of providing its core services, volunteer training and administration. MRNSW gratefully acknowledges this support from the State Government and the boating community. SHORT AND LONG-TERM OBJECTIVES AND STRATEGIES FOR ACHIEVING THOSE OBJECTIVES The core roles of the organisation are to: • Provide a volunteer marine search and rescue service and radio safety service, operating in accordance with the requirements of relevant legislation and authorities, for the boating community on NSW waters and • Promote boating safety, including through public education and engagement programs. The strategies for meeting these core responsibilities and the company’s other short and long-term objectives are set out in the MRNSW Strategic Plan 2015-2018. During 2014-2015, the company has taken steps to achieve results in key areas through its: • Response to 3,001 incidents on the water, including 775 serious (notifiable) emergencies. • Logging On 70,243 inshore and offshore vessels. This service is unique in NSW, providing skippers with the peace of mind of knowing someone responsible is watching out for them, knowing where they’re headed and when they’re due to return and can quickly activate a search if they’re not back safely on shore as expected. • Response to 310,342 marine radio transmissions. • Members’ commitment to boating safety education, including conducting 226 Safe Boating Courses and boat and Personal Water Craft licence tests for more than 1,349 people in the 2014 calendar year. • Members’ operational, logistical and crowd safety control assistance at numerous events, including the start of the Sydney to Hobart yacht race, New Year’s Eve fireworks, Australia Day festivities, Hot Current Game Fishing Tournament, Coffs Coast Triathlon, Easter Fishing Classic, Australian Offshore Superboat Series, Mullum2Bruns Paddle, Hawkesbury Canoe Classic, Sydney to Gold Coast yacht race and Ulladulla Blessing of the Fleet. • Members’ promotion of boating safety and the MRNSW safety net at events including the Boating Industry Association of NSW’s Sydney Trailerboat and Outdoor Leisure Show and Sydney International Boat Show and a range of other local boating and community events, as well as through activities such as boating safety days at boat ramps and other high-traffic boating locations. • Representation at various forums at State, national and international levels, including the State Rescue Board, State Emergency Management Committee, Australian Emergency Management Volunteer Forum, the National Volunteer Marine Search and Rescue Committee (reporting directly to the National Search and Rescue Council), the 23rd

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

International Association for Volunteer Effort (IAVE) World Volunteering Conference and World Youth Conference and the International Marine Rescue Federation Congress in Bremerhaven, Germany. • Representatives’ operational, training and off-water collaboration and cooperation with key partners, stakeholders and third parties, including the NSW Police Force Marine Area Command, NSW Roads and Maritime Services, the Ministry for Police and Emergency Services, the NSW Rural Fire Service, NSW Ambulance Service, State Emergency Service, the Water Safety Advisory Council and other State Government bodies, the Australian Maritime Safety Authority, Australian Communications Media Authority and other Commonwealth agencies and the Boating Industry Association of NSW and Boat Owners’ Association of NSW. PERFORMANCE MEASUREMENT The company achieved short-term objectives in 2014-2015: • Membership of 3,141 at year end. • E ight new or substantially refurbished boats and eight Rescue Water Craft were delivered. • The new MarineRescue smartphone App was launched, with the benefit of a Water Safety Black Spots Fund Grant. • The new MRNSW online shop was launched, offering discounts to MRNSW volunteers and Radio Club members. CHANGES IN STATE OF AFFAIRS There have been no other significant changes in the business affairs of the company that have not been covered in this report. INDEMNIFICATION OF OFFICERS AND AUDITORS The company has not otherwise, during or since the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer or auditor of the company or of any related body corporate against a liability incurred as such an officer or auditor. RISK MANAGEMENT The Board is responsible for ensuring that risks, as well as opportunities, are identified on a timely basis and that the objectives and activities of the company are aligned with the risks and opportunities identified by the Board. LIMITED BY GUARANTEE The company does not have share capital. The Members’ liability is limited by guarantee. Each Member’s liability is limited to $2. ENVIRONMENTAL REGULATION AND PERFORMANCE The company complies with all relevant environmental regulations to the best of its ability. PROCEEDINGS ON BEHALF OF THE COMPANY No person has applied for leave of court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings. The company was not a party to any such proceedings during the year. AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICE The Directors have received an independence declaration from the auditor in accordance with the requirements of section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012, which is included on page 43. The auditor did not provide any non-audit services during the year. Signed in accordance with a resolution of the Directors made pursuant to the Australian Charities and Not-for-profits Commission Act 2012.

James L Glissan ESM, QC David White Director Director Sydney, 23 October 2015

38 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Directors’ qualifications & experience Name and status

Directors’ qualifications and experience

Mr James Glissan ESM, QC

• Member of Marine Rescue Botany Port Hacking, after joining the Australian Volunteer Coast Guard Association (AVCGA) Botany Bay in 2008.

Appointed as Original Director 3 July 2009 – 11 December 2010 Elected General Director 11 December 2010, 3 year term 23 November 2013, 3 year term

• Barrister since 1971, QC since 1985. Extensive practice in Company and Commercial law. Public Defender NSW 1981-1984. Associate Judge, District Court of NSW, 1989-1991. • Served on Boards of numerous companies, including the Firearms Safety Awareness Council NSW.

Mr Michael Stringer AM, ESM Appointed as Original Director 3 July 2009 - 11 December 2010 Elected General Director 11 December 2010, 1 year term 3 December 2011, 3 year term

• Member of Marine Rescue Middle Harbour. Forty years in marine search and rescue and emergency management, eight as Chair of the Royal Volunteer Coastal Patrol (RVCP), a company limited by guarantee. Life Member Marine Rescue NSW. • Officer Commanding eight years. • Government liaison officer 14 years. • Member State Rescue Board of NSW seven years and Volunteer Marine Rescue Council of NSW 13 years. • Operational coxswain; 900 rescue operations.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Name and status

Directors’ qualifications and experience

Mr Anothony Drover

• Member of Marine Rescue Jervis Bay.

Elected General Director 11 December 2010, 2 year term 24 November 2012, 3 year term

• Joined the AVCGA in 2003, holding roles including Skipper and Team Leader, Purser, Training Officer, Commander and Squadron Deputy Commodore. • Moved to Queensland and Coast Guard Southport, serving as Skipper and Team Leader, Deputy Commander and Commander. • Career as a Royal Australian Navy Officer: Seaman Officer and Helicopter Pilot (1969-1989), Helicopter Instructor (1989-1993), Building Manager (1994-2007), Sales Manager (2008-2009) and Naval Officer (2010-2012). • Professional skills include ATPL Helicopter and Commercial fixed wing pilot and flight instructor, Master 5 and Cert 4 TAA.

Mr Howard Staples Elected Regional Director (Monaro) 11 December 2010, 2 year term 24 November 2012, 2 year term 29 November 2014, 2 year term Resigned 18 April, 2015

Mr Robert Wilson Elected Regional Director (Greater Sydney) 11 December 2010, 2 year term 24 November 2012, 2 year term

• Member of Marine Rescue Batemans Bay, after joining the RVCP in 2007. • Has held positions of Administration Officer, Division Commander and Training and Education Officer. • Level One skipper and Master Class 5. • A retired computer industry Service Delivery Manager and a qualified and experienced coach captain.

• Member of Marine Rescue Botany Port Hacking, after joining the AVCGA Botany Bay Flotilla in 2008. • Roles have included Boat and Radio Duty Crew, Vice-Captain, BIA Representative for the Sydney Squadron, Deputy Commander Botany Bay Flotilla and Deputy Commander Botany Bay Unit, as well as the BIA representative and Boat Show coordinator for MRNSW. • Company Secretary, MRNSW to February 2015. • Has worked as a teacher, TAFE lecturer, auditor in the ANZ Bank and Australian Taxation Office, a director of the tax practice within a Chartered Accounting firm and his own consultancy.

Mr John Lynch Elected Regional Director (Mid North Coast) 3 December, 2011, 2 year term 23 November 2013, 2 year term

• Member of Marine Rescue Forster-Tuncurry, after becoming an active volunteer in the RVCP in 1995. Life Member Marine Rescue NSW. Former member of the Royal Australian Navy. • Positions held include Administration Officer, Secretary and Treasurer for 12 years and Unit Commander for six years, along with Senior Regional Officer North Coast for three years. • Qualified offshore skipper, Watchkeeper and Certificate IV TAA Member, State Rescue Board Accreditation Team for three years, Delegate Mid North Coast Marine Advisory Committee for 12 years and Delegate Great Lakes Emergency Management Committee for 15 years. • Professional background in accounting, finance and banking.

40 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Name and status

Directors’ qualifications and experience

Mr Doug Musker ESM

• Member of Marine Rescue Ulladulla. Active member of RVCP since 2002. Soon after, completed the NSW Maritime Coxswain Certificate.

Elected Regional Director (Illawarra) 24 November 2012, 2 year term

• Qualifications and experience include Skipper III, Radio Operator, Unit Administration Officer and Unit Commander of Marine Rescue Ulladulla for five years until standing down in 2012. • Professional background as accountant and financial controller.

Mr Anthony Long BM VA Elected Regional Director (Hunter-Central Coast) 23 November 2013, 2 year term

Mr Bernard Gabriel ESM Elected Regional Director (Northern Rivers) 23 November 2013, 2 year term

• Member of Marine Rescue Central Coast. Active member of the RVCP since 2008. Held the position of Deputy Unit Commander. • Professional background as a NSW Police Officer since 1983 and currently a Staff Officer to Commander Special Services Group, who has the responsibility for the Marine Area Command. Has attained significant Search and Rescue experience in these fields of policing.

• Member of Marine Rescue Point Danger. Active member since 1965 and inception of Volunteer Rescue Association. Former Unit Commander. • Life Member Marine Rescue NSW. • Qualifications and experience include Chief of Operations and Chief Skipper VRA, delegate for VMR Queensland and NSW. • Professional background as owner-operator of marina and boat building business. Area manager NSW of large Queensland marine accessories distribution company.

Mrs Patricia Fayers ESM

• Member of Marine Rescue Central Coast.

Elected General Director 29 November 2014, 3 year term

• The first woman elected to the Board of MRNSW. • Served more than 16 years in volunteer marine rescue since joining the Central Coast Division of the RVCP in 1998. • Appointed Divisional Commander from 2006 to 2010. Following the transition to MRNSW, served as Watch Officer from 2010 to 2014 and was elected Unit Commander from 2012 to 2014. • A Skipper One, she has participated in many assists and rescues and has been integral to managing the delivery of new rescue vessels to the Central Coast unit. • Other positions have included Assistant Quartermaster, radio invigilator and Boat Licence tester.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Name and status

Directors’ qualifications and experience

Mr David White ESM

• Member of Marine Rescue Cottage Point.

Elected Regional Director (Greater Sydney) 29 November 2014, 2 year term

• Joined the AVCGA in 2004 at the completion of his service career as a Commander in the Royal Australian Navy. • Served as the unit’s Training Officer and Training Systems Officer for two years and Unit Commander for five years. • A vessel Master and active Coxswain, has developed and delivered cross-unit training within the Sydney Region, as well as supporting organisation-wide training initiatives and joining a working group to develop the new Constitution.

Mr William Carter ESM Appointed Original Director 3 July 2009 – 11 December 2010 Elected Regional Director (Illawarra) 11 December 2010, 2 year term 29 November 2014, 2 year term

• Member of Marine Rescue Shoalhaven and a Life Member of Marine Rescue NSW. • An original director of MRNSW, he has held numerous positions in the State’s volunteer marine rescue sector, including the NSW Volunteer Rescue Association Marine Committee Chair, Volunteer Marine Rescue Council Chair, VRA Vice President, State Rescue Board member, Shoalhaven Marine Rescue Association President and Marine Rescue Shoalhaven Unit Commander. • Skipper, NSW commercial coxswain and licensed automotive engineer.

42 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Level 17, 383 Kent Street Sydney NSW 2000 Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au

Auditor’s Independence Declaration To the Responsible Entities of Volunteer Marine Rescue NSW

In accordance with the requirements of section 60-40 of the Australian Charities and Notfor-profits Commission Act 2012, as lead auditor for the audit of Life Education Limited for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been: 1. no contraventions of the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and 2. no contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

Neville Sinclair Partner - Audit & Assurance Sydney, 23 October 2015 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

Level 17, 383 Kent Street Sydney NSW 2000 Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au

Independent Auditor’s Report To the Members of Volunteer Marine Rescue

We have audited the accompanying financial report of Volunteer Marine Rescue (the “Company”), which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the responsible entities’ declaration of the entity. Responsibility for the financial report

The Responsible Entities of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and, the Australian Charities and Not-forprofits Commission Act 2012, and the Charitable Fundraising Act 1991. The Responsible Entities’ responsibility also includes such internal control as the Responsible Entities determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s responsibility

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 us to comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance 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 financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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 Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Responsible Entities, 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 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. Auditor’s opinion

In our opinion: 1. the financial report of Volunteer Marine Rescue is in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including: a.

giving a true and fair view of the entity’s financial position as at 30 June 2015 and of its performance for the year ended on that date;

b. complying with Australian Accounting Standards- Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Regulation 2013; 2. the financial report agrees to the underlying records of Volunteer Marine Rescue, that have been maintained, in all material aspects, in accordance with the Charitable Fundraising Act 1991 and its regulations, for the year ended 30 June 2015; and 3. monies received by Volunteer Marine Rescue, as a result of fundraising appeals conducted during the year ended 30 June 2015, have been accounted for and applied, in all material aspects, in accordance with the Charitable Fundraising Act 1991 and its regulations.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

Neville Sinclair Partner - Audit & Assurance Sydney, 23 October 2015

Responsible Entitiesâ&#x20AC;&#x2122; declaration Middle Harbour 30 crew member Colin Crawford passes a tow line to the crew of a 40foot yacht stranded between North and South Heads by a jammed rudder. Photo: Brian Roberts.

n the opinion of the Responsible Entities of Volunteer Marine Rescue NSW: a. The financial statements of Volunteer Marine Rescue NSW are in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including: i. Giving a true and fair view of its financial position as at 30 June 2015 and of its performance for the financial year ended on that date; and ii. Complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Comission Regulation 2013. b. There are reasonable grounds to believe that Volunteer Marine Rescue NSW will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the Responsible Entities:

James L Glissan ESM, QC David White ESM Director Director Sydney, 23 October 2015

46 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Fundraising appeals declaration Operator Tony Long and crew member Geoff Hawes undertake rescue drills on the nimble new Central Coast 11.

eclaration on behalf of responsible entitites in respect of fundraising appeals:

We, James Glissan and David White, Directors of Volunteer Marine Rescue NSW, declare that, in our opinion: (a) the financial statements give a true and fair view of all income and expenditure of the company with respect to fundraising appeals; (b) the Statement of Financial Position gives a true and fair view of the state of affairs with respect to fundraising appeals; (c) the provisions of the Charitable Fundraising Act (NSW) 1991 and the regulations under the Act and the conditions attached to the authority have been complied with; and (d) the internal controls exercised by the company are appropriate and effective in accounting for all income received.

James L Glissan ESM, QC David White ESM Director Director Sydney, 23 October 2015

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Statement of profit & loss & comprehensive income FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

Note

2015 $

2014 $

NSW recreational boat registration & licence levy

5,900,000

6,309,920

NSW Government core grant

1,601,780

1,562,560

Donations

927,787

974,954

425,712

443,630

Interest

175,691

158,702

Other income

1,720,180

1,814,205

Proceeds from insurance claims

1,427,513

547,146

Profit on sale of assets

53,188

Activities income

504,930

540,606

Total revenue and other income

12,736,781

12,351,723

2,218,575

2,033,702

Depreciation

2,427,280

2,107,127

Grant expenditure

207,396

320,729

Maintenance and development of assets

2,283,212

1,709,468

Loss on disposal on assets

229,140

Marketing

99,065

134,088

Membership

573,855

615,025

IT expenditure

260,969

284,200

Games of chance

371,791

374,627

Fundraising

119,282

140,531

124,651

141,270

1,455,533

1,656,625

10,141,609

9,746,532

2,595,172

2,605,191

2,595,172

2,605,191

Revenue and other income

Other grant income

Expenditure Staff costs

Training expenses

Administration

Total expenses

Net surplus Other comprehensive income

Other comprehensive income for the year Total comprehensive income for the year

Notes to the financial statements are included on pages 52 - 66.

48 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Statement of financial position AS AT 30 JUNE 2015

Note

2015 $

2014 $

Cash and cash equivalents

14(a)

8,625,236

7,184,961

Trade and other receivables

964,628

786,393

Inventories

500,060

565,022

10,089,924

8,536,376

18,298,187

16,978,934

Total non-current assets

18,298,187

16,978,934

Total assets

28,388,111

25,515,310

Current assets

Total current assets Non-current assets

Property, plant and equipment

Current liabilities

Trade and other payables

952,419

795,134

Borrowings from non-related entity

861,333

828,242

1,813,752

1,623,376

1,676,151

1,588,898

Total non-current liabilities

3,489,903

3,212,274

Total liabilities

3,489,903

3,212,274

24,898,208

22,303,036

9,849,267

Retained Earnings

15,048,941

12,453,769

Total membersâ&#x20AC;&#x2122; funds

24,898,208

22,303,036

Total current liabilities Non-current liabilities

Borrowings from non-related entity

Net assets

Membersâ&#x20AC;&#x2122; funds Transferred Assets Reserve

Notes to the financial statements are included on pages 52 - 66.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Statement of changes in funds AS AT 30 JUNE 2015 Transferred Assets Retained Earnings Reserve Balance at 1 July 2013

9,849,267

Total

9,848,578

19,697,845

2,605,191

Total comprehensive income for the year Net surplus for the year Total comprehensive income for the year Balance at 30 June 2014

9,849,267

12,453,769

22,303,036

Balance at 1 July 2014

9,849,267

12,453,769

22,303,036

2,595,172

15,048,941

24,898,208

Total comprehensive income for the year Net surplus for the year Total comprehensive income for the year Balance at 30 June 2015

9,849,267

Notes to the financial statements are included on pages 52 - 66.

50 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Condensed statement of cash flows FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015 2015 $

2014 $

Cash received from levies, grants, donations and other income

10,612,283

10,668,806

Cash paid to suppliers and employees

(7,262,729)

(7,629,366)

Amount received from insurance claims

1,498,963

704,923

4,848,517

3,744,363

Proceeds from property, plant and equipment

241,077

810,052

Interest received

175,691

158,702

Payments for purchases of property, plant and equipment

(3,746,533)

(4,638,996)

Net cash used by investing activities

(3,329,765)

(3,670,242)

Payment of interest on leases (Westpac)

(128,410)

(25,979)

Repayment of capital on leases (Westpac)

(462,987)

(110,612)

Repayment of borrowings

(600,000)

Proceeds of borrowing

1,112,920

1,660,388

(78,477)

923,796

Net increase/(decrease) in cash and cash equivalents

1,440,275

997,917

Cash and cash equivalents at the beginning of the financial year

7,184,961

6,187,044

8,625,236

7,184,961

Note Cash flows from operating activities

Net cash provided by operating activities

14(b)

Cash flows from investing activities

Cash flows from financing activities

Net cash proceeds from financing activities

Cash and cash equivalents at the end of the financial year

14(a)

Notes to the financial statements are included on pages 52 - 66.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Notes to the financial statements MR Batemans Bay members Keith Wrench, Richard Charles, MIke Dolan and Richard Blundell complete a tabletop exercise during October’s Monaro SAREX.

1. CORPORATE INFORMATION The financial statements of Volunteer Marine Rescue NSW, operating as Marine Rescue NSW (MRNSW), for the year ended 30 June 2015 were authorised for issue in accordance with a resolution of the Directors on 23 October 2015. MRNSW is a company limited by guarantee, incorporated and domiciled in Australia. The nature of the operations and principal activities of the company are described in the Directors’ Report (page 36) of these financial statements. 2. SUMMARY OF ACCOUNTING POLICIES a. Basis of Preparation General Purpose Financial Statements These General Purpose Financial Statements have been prepared in accordance with the requirements of the Australian Charities and Not-for-profits Commission Act 2012, Australian Accounting Standards – Reduced Disclosure Requirements, other authoritative pronouncements of the Australian Accounting Standards Board and Urgent Issues Group interpretations. The company is a ‘Not for profit’ entity. Historical cost convention and currency The financial statements have been prepared on the basis of historical cost, except for the revaluation of certain noncurrent assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. b. Significant accounting judgments, estimates and assumptions The preparation of financial statements requires the Directors to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other various factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that

52 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

period or in the period of the revision and future periods if the revision affects both current and future periods. Significant accounting estimates and assumptions The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are: Fair value of assets acquired Refer Note 2(k) for assets acquired as part of the amalgamation in July 2009. Make good provisions Provisions for future costs to return certain leased premises to their original condition are based on the companyâ&#x20AC;&#x2122;s experience with previous premises and estimates of likely restoration costs determined by management. These estimates may vary from the actual costs incurred as a result of conditions existing at the date the premises are vacated. Management has estimated that the lease make good provisions will be negligible. Provisions for employee benefits Provisions for employee benefits payable after 12 months from the reporting date are based on future wage and salary levels, experience of employee departures and periods of service, as discussed in Note 2(m). The amount of these provisions would change should any of these factors change in the next 12 months. Useful lives of depreciable assets Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical obsolescence that may change the utility of certain software and IT equipment. Inventories Management estimates the net realisable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realisation of these inventories may be affected by future technology or where they no longer meet the requirements of the company through changes in design or equipment redunancy. No provision for impairment has been recognised at the date of this financial report. Long Service Leave The liability for Long Service Leave is recognised and measured at the present value of the estimated cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account. Fair value on borrowings Refer Note 2(o) relating to the advance from the NSW Government of $3,000,000 and the effect of the discounted value. This is a non-cash effect over the term of the loan. c. Revenue recognition Revenue is recognised when the company is legally entitled to the income and the amount can be quantified with reasonable accuracy. Revenues are recognised net of the amounts of Goods and Services Tax (GST) payable to the Australian Taxation Office. Income from a contribution is recognised when the company obtains control of the contribution or right to receive the contribution, it is probable the economic benefits comprising the contribution will flow to the entity and the amount can be measured reliably. (i) Government funding Under an agreement with the NSW Ministry for Police and Emergency Services (formerly Emergency Management NSW), the companyâ&#x20AC;&#x2122;s services are supported by funding received from the NSW Government in the form of a core Government grant and through NSW Roads and Maritime Services as a portion of recreational boating registrations and licences. These contributions are recognised as non-reciprocal contributions and recognised as revenue on receipt since the use of the funds is at the discretion of management and applied to acquire assets in the form of vessels and for operational expenditure over varying periods. (ii) Interest revenue Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assetâ&#x20AC;&#x2122;s net carrying amount. (iii) Donations and fundraising Donations collected, including cash, in kind donations, donations of vessels and equipment and goods for resale, are recognised as revenue when the company gains control, economic benefits are probable and

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

the amount of the donation can be measured reliably. Volunteer Marine Rescue NSW, in common with most organisations dependent upon such contributions, is unable to establish control over voluntary donations prior to their initial entry in the accounting records. (iv) Other grants Grants received for a specific project not yet completed are only recognised as income when the project occurs or the terms and conditions are met as these amounts are repayable if not fully utilised on the specific project. Grants received for general operational funding and which are not repayable are brought to account as income when received. Revenue from sales of goods comprises revenue earned (net of returns, discounts and allowances) from the sale of goods purchased for resale and gifts donated for resale. Sales revenue is recognised when the control of goods passes to the customer. (v) Asset sales The gain or loss on disposal of all non-current assets and available-for-sale financial investments is determined as the difference between the carrying amount of the asset at the time of the disposal and the net proceeds on disposal. Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up shall be included in profit or loss when the compensation becomes receivable. The impaired or lost assets shall be written off. The cost of items of property, plant and equipment restored, purchased or constructed as replacements is capitalised as capital assets. (vi) Investment income Investment income comprises interest. Interest income is recognised as it accrues, using the effective interest method. d. Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular category they have been allocated to activities on a basis consistent with use of the resources. Fundraising costs are those incurred in seeking voluntary contributions by donation and do not include costs of disseminating information relating to the activities carried on by the company. Management and administration costs are those incurred in connection with the administration of the company and compliance with constitutional and statutory requirements. Other costs comprise investment management fees, information and education costs. e. Income Tax The company is exempted from paying income tax due to it being a charitable institution in terms of Section 50â&#x20AC;&#x201C;5 of the Income Tax Assessment Act 1997, as amended. f. Cash and cash equivalents Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value or term deposits longer than three months in duration that may be broken without prejudice and are subject to an insignificant risk of change in value at call. g. Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except: (i) where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of the asset or as part of an item of expense; or (ii) for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are included in the cash flow statement on a gross basis. The GST component of the cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. h. Financial Assets Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. These are measured at amortised cost using the effective

54 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

interest method less impairment. Interest is recognised by applying the effective interest rate. Impairment of financial assets Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that as a result of one or more events that occurred after the initial recognition of the financial asset the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the financial assets including uncollectible trade receivables is reduced by the impairment loss through the use of an allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. With the exception of available-for-sale equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. i. Impairment of long-lived assets At the end of each reporting period the company assesses whether there is any indication that individual assets are impaired. Where impairment indicators exist, a recoverable amount is determined and impairment losses are recognised in profit or loss where the asset’s carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where it is not possible to estimate recoverable amount for an individual asset, recoverable amount is determined for the cash-generating unit to which the asset belongs. j. Inventories Inventories comprise goods for distribution and goods for resale at no or nominal consideration as part of the company’s charitable activities. Inventories may be purchased or received by way of donation. Inventories are carried at the lower of cost or net realisable value. The cost is the purchase price of the items. The inventory is made up of supplies purchased for members and units, consisting of uniform items, items for the vessels, promotional and educational materials. Goods for resale No value is prescribed to goods for resale that have been donated to the company where the fair value cannot be reliably determined. The cost of bringing each item to its present location and condition is determined on a first-in, first-out basis. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale. k. Property, plant and equipment Fair value and cost As part of the amalgamation of the Australian Volunteer Coast Guard Association, Royal Volunteer Coastal Patrol and Volunteer Rescue Association marine flotillas, assets have been transferred to MRNSW in accordance with the deeds. These assets include the vessels and equipment on board, other land-based communications equipment, furniture and fittings, IT equipment and motor vehicles and trailers. These items have been valued on the basis of fair value at the date acquired. Items of property, plant and equipment donated to the company are brought to account at fair value less accumulated depreciation. Any accumulated depreciation at revaluation date will be eliminated against the gross carrying amount of the asset and the net amount will be restated as the revalued amount of the asset. A revaluation surplus is credited to other comprehensive income (asset revaluation surplus) unless it reverses a revaluation decrease on the same asset previously recognised in profit or loss. A revaluation deficit is recognised in profit or loss unless it directly offsets a previous revaluation surplus on the same asset in the asset revaluation surplus. An annual transfer is made from

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

the asset revaluation surplus to retained earnings for the depreciation charge recognised in profit or loss (net of tax) relating to the revaluation surplus. On disposal, any revaluation surplus relating to sold assets is reclassified to retained earnings. Independent valuations are performed regularly to ensure that the carrying amounts of land and buildings does not differ materially from the fair value at the end of the reporting period. Valuation of vessels The company’s fleet was initially transferred from previous entities at the vessels’ current fair value as at the date of transfer. This represents the cost to the company. The transferred vessels and new vessels are recorded at the value acquired and not measured at the fair value after acquisition. All other plant and equipment is stated at historical cost, including costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, less depreciation and any impairment. Depreciation Land is not depreciated. Depreciation on other assets is calculated on a straight-line basis over the estimated useful life, or in the case of leasehold improvements and certain leased plant and equipment, the shorter lease term, as follows: (i) Communications equipment – over 4 years (ii) Furniture and fittings – over 4 years (iii) IT and office equipment – over 3 years (iv) Motor vehicles – over 5 years (v) Rescue vessels – over 10 years The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. Gains and losses on disposals are calculated as the difference between the net disposal proceeds and the asset’s carrying amount and are included in profit or loss in the year that the item is derecognised. l. Trade and other payables Trade payables are recognised initially at their fair value, which is the amount expected to be paid, and subsequently at amortised cost. These amounts represent liabilities for services provided to the company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 60 days of recognition. m. Employee benefits Employee benefits comprise wages and salaries, annual, non-accumulating sick and long service leave and contributions to superannuation plans. Liabilities for wages and salaries expected to be settled within 12 months of balance date are recognised in other payables in respect of employees’ services up to the reporting date. Liabilities for annual leave in respect of employees’ services up to the reporting date which are expected to be settled within 12 months after the end of the period in which the employees render the related services are recognised in the provision for annual leave. Both liabilities are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for nonaccumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable. The company pays contributions to certain defined contribution superannuation plans. Contributions are recognised in the income statement when they are due. The company has no obligation to pay further contributions to these plans if the plans do not hold sufficient assets to pay all employee benefits relating to employee service in current and prior periods. Other long-term employee benefits The company’s liabilities for annual leave and long service leave are included in other long-term benefits as they are not expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. They are measured at the present value of the expected future payments to be made to employees. The expected future payments incorporate anticipated future wage and salary levels, experience of employee departures and periods of service and are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate bonds (2014: government bonds) that have maturity dates that approximate the timing of the estimated future cash outflows. Any re-measurements arising from experience adjustments and changes in assumptions are recognised in profit or loss in the periods in which the changes occur. The company presents employee benefit obligations as current liabilities in the statement of financial position if the company does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting period, irrespective of when the actual settlement is expected to take place.

56 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Post-employment benefits plans The company provides post-employment benefits though defined contribution plans. n. Business combinations The purchase method of accounting is used to account for all business combinations. Cost is measured as the fair value of the assets given, shares issued or liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition. The transaction costs of acquiring the business other than for the issue of equity instruments, such as due diligence costs legal and accounting fees, are expensed as incurred by the company as part of operating expenses. Prior to 2010, these were recognised in the balance sheet as an offset to the net goodwill or gain on acquiring the company. Identifiable assets acquired and liabilities and contingent liabilities assumed in business combinations are initially measured at their fair values at acquisition date. The excess of the cost of acquisition over the fair value of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets acquired, the difference is recognised in equity as prescribed by the guidance in B 47 Special Considerations in applying the acquisition method to combinations of mutual entities (application of paragraph 33) to AASB3 Business Combinations. o. Loan from NSW Government Financial Year Principal paid Interest expenses Instalments paid

2011

2012

2013

2014

2015

2016

2,382,591

250,000

372,213

420,442

472,571

529,589

337,777

617,409

227,787

179,558

127,429

70,411

12,223

3,000,000

250,000

600,000

350,000

In February 2011, the company received $3 million in advance funding from the NSW Government, to be repaid from the companyâ&#x20AC;&#x2122;s monthly receipts from boat registration and boating licences over five years, at the rate of $50,000 per month. The loan bears no interest. Under accounting standards, the discounted value of the amount payable beyond 12 months needs to be recorded as the liability. This creates an immediate revenue item in the year of receipt and an annual interest expense for the next five years to unwind the discount. If a commercial interest rate were charged, no discount would be required. The amount of the discount is $617,409. The table above shows the value of the discount and the year it is to be unwound as an expense. This discount and its unwinding is not a cash entry. The amount of the loan outstanding and the respective discount amount to be recognised is show in Note 11. p. Economic dependence The company is dependent upon the ongoing receipt of Federal and State Government grants and community and corporate donations to ensure the ongoing continuance of its programs. At the date of this report, management has no reason to believe this financial support will not continue. q. Finance and operating leases i. Finance leases The economic ownership of a leased asset is transferred to the lessee if the lessee bears substantially all the risks and rewards of ownership of the leased asset. Where the company is a lessee in this type of arrangement, the related asset is recognised at the inception of the lease at the fair value of the leased asset or, if lower, the present value of the lease payments plus incidental payments, if any. A corresponding amount is recognised as a finance lease liability. Leases of land and buildings are classified separately and are split into a land and a building element, in accordance with the relative fair values of the leasehold interests at the date the asset is recognised initially. See Note 2 (k) for the depreciation methods and useful lives for assets held under finance lease. The corresponding finance lease liability is reduced by lease payments net of finance charges. The interest element of lease payments represents a constant proportion of the outstanding capital balance and is charged to profit or loss, as finance costs over the period of the lease. In July 2013, the company entered into an agreement with Westpac Banking Corporation to finance new vessels worth $5 million. To date, seven vessels worth $2,773,307 have been leased. Each agreement will run for 60 months. Each of the agreements is secured with a first registered specific security agreement over 24 vessels in favour of the Westpac Banking Corporation.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

ii. Operating leases All other leases are treated as operating leases. Where the company is a lessee, payments on operating lease agreements are recognised as an expense on a straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as incurred. r. Adoption of new or revised standards A number of new and revised standards are effective for annual periods beginning on or after 1 January 2014. The standards that have not had any significant impact on the company reporting include AASB 10 Consolidated Financial Statements; AASB 11 Joint Arrangements; and AASB 12 Discsosure of interests in Other Entities. The standards that may impact the organisation are: AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities. AASB 2012-3 adds application guidance AASB 132 to address inconsistencies identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of â&#x20AC;&#x153;currently has a legally enforceable right of set-offâ&#x20AC;? and that some gross settlement systems may be considered equivalent to net settlement. AASB 2013-6 Amendments to AASB 136 arising from Reduced Disclosure Requirements. AASB 2013-6 makes amendments to AASB 136 Impairment of Assets to establish reduced disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards - Reduced Disclosure Requirements arising from AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for NonFinancial Assets. AASB 2013-3 made narrow scope amendments to AASB 136, addressing disclosure of informaation about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal. AASB 203-6 became applicable to annual reporting periods beginning on or after 1 January 2013. The adoption of these amendments has not had a material impact on the company. 3. LIQUIDITY RISK MANAGEMENT Marine Rescue NSW receives an annual grant from the NSW Government and funds collected by NSW Roads and Maritime Services from small levies applied to NSW recreational boating registrations and licences. These levies are raised from annual boating registrations and a combination of one-year, three-year and five-year licence fees, the annual amount of which will vary depending on the take-up of each term by boat licence holders. As set out in the accounting policies, the contributions from the licences are recognised as revenue in the year of receipt. Until January 2015, revenue and cash inflow would fluctuate from year to year depending on the cycle of three- and five-year licence receipts. As a result, the net operating profits were likely to be higher in years one, two and three and fall in years four and five of the five-year cycle. During the course of the 2014-15 year, an agreement was made with NSW Roads and Maritime Services to flatline the amounts received based on an estimate of the total levies over the five-year period from July 2015 to July 2020 of $29.5 million. The amount received during 2015 was $491,666 per month or $5,900,000 for the year. 4. STATE RESCUE BOARD FINANCIAL SUBMISSION Marine Rescue NSW reports on its investment of the annual funding received from the State Government via a direct Government grant and the levy on recreational boat licences and registrations in its submission to the NSW State Rescue Board Annual Report. This submission excludes funding from other sources such as fundraising and other grants and expenditure that relates to unit operations. A copy of the 2014-15 MRNSW State Rescue Board financial submission, reconciling this expenditure, is at Appendix A (page 67). Due to timeframe requirements, this submission may vary slightly from the final audited reports, which are on an accrual basis.

58 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

5. SURPLUS FROM REVENUE, OTHER INCOME AND EXPENSES

2015 $

2014 $

Activities income

504,930

540,607

Donations

927,787

974,954

Fundraising income

586,123

600,966

Games of chance

800,329

830,437

7,501,780

7,872,480

Grants

425,712

443,630

Sales

259,022

316,447

Interest

175,691

158,702

1,427,513

547,146

Profit on sale of assets

53,188

Other

74,706

66,354

12,736,781

12,351,723

Activities

150,922

170,256

Administration

644,567

926,218

Staff cost

2,218,575

2,033,702

Maintenance of assets

2,283,212

1,709,468

229,140

Cost of sales

408,268

431,440

Depreciation

2,427,280

2,107,127

Training

124,651

141,270

Grant expenditure

207,396

320,729

Fundraising and games of choice

491,073

515,158

70,411

127,429

Interest expense (on finance loans)

128,410

25,979

IT expenses

260,969

284,200

Insurances

181,085

132,860

Marketing

99,065

134,088

Membership

14,665

13,329

431,060

444,139

10,141,609

9,746,532

Note Revenue

Government funding

Net insurance proceeds received

Expenses

Loss on disposal of assets

Interest expense (unwinding discount on RMS loan)

Utilities

2(o)

6. REMUNERATION OF AUDITORS Audit of the financial statements - Grant Thornton

32,137

34,400

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

7. TRADE AND OTHER RECEIVABLES

2015 $

2014 $

Trade receivables (i)

832,131

684,710

Other receivables

132,497

101,683

964,628

786,393

(i) Trade receivables represent balances owed for licence courses, radio base fees, sales of uniforms, grant instalments and ATO BAS refunds outstanding. There are no material trade receivables that are past due but not impaired at the end of the reporting period.

8. INVENTORIES Stock on hand - uniforms

397,762

484,793

Stock on hand - ratings and ranks

35,037

31,429

Stock on hand - Unit items/equipment

67,261

48,800

500,060

565,022

151,792

At Cost post merger

3,119,757

1,135,332

Less: Accumulated depreciation

(129,856)

(75,864)

3,141,693

1,211,260

200,940

200,941

At Cost post merger

1,154,102

708,817

Less: Accumulated depreciation

(669,866)

(423,422)

685,176

486,336

At Fair value on acquisition from merger

153,726

153,784

At Cost post merger

273,452

224,737

(308,668)

(224,516)

118,510

54,005

At Fair value on acquisition from merger

245,425

240,575

At Cost post merger

742,471

604,312

(765,260)

(635,313)

222,636

209,574

9. PROPERTY, PLANT AND EQUIPMENT Buildings/leasehold improvements At Fair value on acquisition from merger

Communications equipment At Fair value on acquisition from merger

Furniture, fixtures and fittings

Less: Accumulated depreciation

IT, office, plant and equipment

Less: Accumulated depreciation

60 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

2015 $

2014 $

At Fair value on acquisition from merger

140,645

143,645

At Cost post merger

557,998

311,735

(312,015)

(210,396)

386,628

244,984

3,597,310

3,845,409

At Cost post merger

13,333,340

11,857,948

Under construction

493,845

1,223,240

(4,637,590)

(3,033,220)

12,786,905

13,893,377

83,517

94,553

At Cost post merger

1,152,325

893,044

Less: Accumulated depreciation

(279,203)

(208,199)

956,639

779,398

18,298,187

16,978,934

Motor vehicles

Less: Accumulated depreciation

Rescue vessels At Fair value on acquisition from merger

Less: Accumulated depreciation

Rescue vessel equipment At Fair value on acquisition from merger

Total property, plant and equipment

Reconciliations Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current and previous financial year are set out below: Buildings/leasehold improvements Carrying amount at the beginning of the financial year

1,211.260

666,222

Additions at cost

1,984,425

578,806

(53.992)

(33,768)

3,141,693

1,211,260

Carrying amount at the beginning of the financial year

486,336

480,534

Additions at cost

444,850

214,326

(20,244)

(246,010)

(188,280)

685,176

486,336

Depreciation Carrying amount at the end of the financial year

Communications equipment

Disposals Depreciation Carrying amount at the end of the financial year

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

2015 $

2014 $

154,005

182,677

50,411

84,357

(26,869)

Depreciation

(85,906)

(86,160)

Carrying amount at the end of the financial year

118,510

154,005

Carrying amount at the beginning of the financial year

209,574

278,242

Additions at cost

145,408

132,304

(5,147)

(22,723)

(127,199)

(178,249)

222,636

209,574

Carrying amount at the beginning of the financial year

244,984

287,843

Additions at cost

268,408

64,271

Disposals

(12,869)

(14,231)

(113,895)

(92,899)

386,628

244,984

13,893,377

11,958,647

Additions at cost

745,997

2,531,374

Assets under construction

493,845

1,223,240

(615,656)

(866,800)

Depreciation

(1,730,658)

(953,084)

Carrying amount at the end of the financial year

12,786,905

13,893,377

Carrying amount at the beginning of the financial year

799,398

592,900

Additions at cost

259,281

299,096

Disposals

(12,420)

Depreciation

(69,620)

(112,598)

Carrying amount at the end of the financial year

956,639

779,398

18,298,187

16,978,934

Furniture, fixtures and fittings Carrying amount at the beginning of the financial year Additions at cost Disposals

IT, office, plant and equipment

Disposals Depreciation Carrying amount at the end of the financial year

Motor vehicles

Depreciation Carrying amount at the end of the financial year

Rescue vessels Carrying amount at the beginning of the financial year

Disposals

Rescue vessel equipment

Total Property, Plant and Equipment

The written down value of assets under finance lease was $2,408,809. The depreciation of leased assets was $360,906.

62 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Members of Marine Rescue Ulladulla moved into their newly-built base in May, after the destruction of their original premises in a fire in October 2013. Photo: Lisa Hardwick

10. TRADE AND OTHER PAYABLES

2015 $

2014 $

Trade payables (i)

695,449

624,618

Employee liabilities

256,970

170,516

952,419

795,134

Government loan

337,777

529,589

Bank loan (Westpac Leasing Facility)

523,556

298,653

861,333

828,242

4,600

337,775

1,671,551

1,251,123

1,676,151

1,588,898

(i) The average period for payment of creditors is 14 days. No interest is charged on the outstanding balance.

11. BORROWINGS a) Current

b) Non-current Government loan Bank loan (Westpac Leasing Facility)

Refer to note 2(o) for further information on the Government loan.

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

12. MEMBERSâ&#x20AC;&#x2122; LIABILITIES AND NUMBERS The liability of the Members is limited. Every Regular and Provisional Member of the company undertakes to contribute to the assets of the Company, in the event of the same being wound up while s/he is a Member, or within one year after s/he ceases to be a Member, for payment of the debts and the liabilities of the company (contracted before he ceases to be a Member) and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributors among themselves, such amount as may be required not exceeding two dollars ($2.00). The numbers of Members were: Ordinary Members 2,508 Provisional 586 Other 47 Total 3,141

13. KEY MANAGEMENT PERSONNEL COMPENSATION No emoluments were received or due and receivable by the Directors of the company. The names and positions of those having authority for planning, directing and controlling the companyâ&#x20AC;&#x2122;s activities, directly or indirectly (other than Directors) are: S. Tannos, Commissioner; D. Storey, Deputy Commissioner; A. Skelley, Chief Financial Officer; C. Woods, Corporate Services Director; and F. Glajcar, IT and Business Development Director

2015 $

2014 $

784,404

756,331

2015 $

2014 $

8,625,236

7,184,961

Surplus for the year

2,595,172

2,605,191

Interest income received and receivable

(175,691)

(158,702)

Depreciation charged

2,427,280

2,107,128

(53,188)

(810,052)

70,411

127,429

Movement in receivables

(178,235)

(23,617)

Movement in inventories

64,962

122,803

Movement in payables

97,806

(225,817)

4,848,517

3,744,363

The compensation paid to the key management personnel noted above is as follows:

Short-term employee benefits

14. CASH FLOW INFORMATION (a) Reconciliation of cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows: Cash and cash equivalents (b) Reconciliation of surplus for the year to net cash flows from operating activities

Gain on sale of property, plant & equipment Present value adjustment for borrowings Changes in net assets and liabilities

Net cash from operating activities

64 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

15. SUBSEQUENT EVENTS There have been no signifcant subsequent events.

16. REGISTERED OFFICE AND PRINCIPAL PLACES OF BUSINESS The Registered Office of the company is: Volunteer Marine Rescue NSW (Trading as Marine Rescue NSW) Building 1, 202 Nicholson Parade Cronulla NSW 2230 Phone: 02 8071 4848 Fax: 02 9544 0491 Web: www.marinerescuensw.com.au Email: admin@marinerescuensw.com.au The Principal Places of Business are located at the following Marine Rescue NSW bases (from north to south): 1

Point Danger

Port Stephens

Port Kembla

Brunswick

Lemon Tree Passage

Shellharbour

Cape Byron

Newcastle

Shoalhaven

Ballina

Lake Macquarie

Jervis Bay

Evans Head

Norah Head

Sussex Inlet

Iluka Yamba

Tuggerah Lakes

Ulladulla

Wooli

Central Coast

Kioloa

Woolgoolga

Terrigal

Batemans Bay

Coffs Harbour

Hawkesbury

Tuross

Nambucca

Cottage Point

Narooma

Trial Bay

Broken Bay

Bermagui

Port Macquarie

Terrey Hills

Merimbula

Camden Haven

Middle Harbour

Eden

Crowdy Harrington

Port Jackson

Alpine Lakes

Forster-Tuncurry

Botany Port Hacking

Moama

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

“Our emergency services volunteers are a tremendously valuable asset to our State.”

66 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

APPENDIX A: MRNSW submission NSW State Rescue Board Annual Report 2014-15

Total funding made available:

7,501,780

Represented by: NSW recreational boat registration & licence levy

5,900,000

NSW Government grant

1,601,780

Amount expended by Marine Rescue NSW Unit reimbursement - Radio Bases/SARCC-R&M

1,350

Direct Unit funding

727,311

Funding Advance repayment

600,000

Administration

365,557

Staff cost Activities expenses

2,081,425 42,960

Buildings

176,465

Uniforms and stores costs

276,844

Training

81,844

208,438

Insurance

179,884

Marketing

61,047

Membership

12,763

Motor vehicles

247,325

Radio facilities

188,555

Rescue vessels

63,304

Trailers

2,992

Utilities

148,231

Raffle boats

217,314

Subtotal

5,683,609

New vessels

1,315,194

Other vessel capital expenditure

69,804

Other capital expenditure

349,173

Total capital expenditure

1,734,171

Funds carried forward to 2015/16 Total Expenditure

84,000 7,501,780

Note: This data represents the acquittal of funding provided to Marine Rescue NSW from the NSW Government through a direct grant and the proceeds of the levy on NSW recreational boat registrations and licences. Full Marine Rescue NSW financial reports are available in the MRNSW Financial Statements and Reports (Annual Report) at mrnsw.com.au

MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

APPENDIX A: MRNSW submission NSW State Rescue Board Annual Report 2014-15 continued

New vessels (note)

10m Naiad RHIB*, Shellharbour Unit (part)

21,795

9.5m Naiad RHIB, Crowdy Harrington Unit (part)

68,506

Eight Sea-Doo Rescue Water Craft **

139,963

9.5m Naiad RHIB, Coffs Harbour Unit (part)

295,593

11.5m Sailfish catamaran, Cottage Point Unit (part)

254,900

5.45m Ocean Cylinder vessel, Operational Reserve (part)

76,384

5.95m Ocean Cylinder vessel, Operational Reserve (part)

89,803

6.8m Ocean Cylinder vessel, Central Coast Unit (part) 7.5m Naiad RHIB, Point Danger Unit (part) Subtotal Other vessel capital expenditure

315,240 53,010 1,315,194 69,804

Other capital expenditure Buildings/leasehold improvements Furniture and fittings IT equipment

14,108 7,034 23,166

Communication equipment

190,279

Motor vehicles

114,586

Subtotal

349,173

Total

1,734,171

Note: Funding allocations against new vessels represent the amount paid during the financial year and may not reflect the total cost of the vessel. * Rigid Hull Inflatable Boat (RHIB) ** Sea-Doo Rescue Water Craft were delivered to the Lake Macquarie, Nambucca, Trial Bay (2), Port Macquarie, Central Coast and Tuross units and Headquarters.

68 MARINE RESCUE NSW | ANNUAL REPORT 2014-2015

Marine Rescue NSW Operational Regions and Unit locations

MARINE RESCUE NSW Volunteers saving lives on the water Volunteer Marine Rescue New South Wales ABN 98 138 078 092 PO Box 579, Cronulla NSW 2230 Phone: 02 8071 4848 | Fax: 02 9544 0491 Web: www.marinerescuensw.com.au Email: admin@marinerescuensw.com.au