Western Sydney Parklands Annual Report 2012

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Annual Report

2011-2012


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The Hon. Robyn Parker MP Minister for Environment Minister for Heritage Level 32 Governor Macquarie Tower 1 Farrer Place SYDNEY NSW 2000 31st October 2011

Dear Minister I am pleased to present the Western Sydney Parklands Trust Annual Report for the year ended 30 June 2011. The report outlines the role and responsibilities of the Trust, together with the highlights of our achievements for the year. This annual report has been prepared in accordance with Annual Reports (Statutory Bodies) Act 1984, the Public Finance and Audit Act 1983 and the Regulations under those Acts.

Yours sincerely

Contents

Suellen Fitzgerald Parklands Director

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The Hon. Robyn Parker MP Minister for Environment Minister for Heritage Level 32 Governor Macquarie Tower 1 Farrer Place SYDNEY NSW 2000

Western Sydney Parklands Trust Annual Report 2010-11

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31st October 2012 Dear Minister I am pleased to present the Western Sydney Parklands Trust Annual Report for the year ended 30 June 2012. The report outlines the role and responsibilities of the Trust, together with the highlights of our achievements for the year. This annual report has been prepared in accordance with Annual Reports (Statutory Bodies) Act 1984, the Public Finance and Audit Act 1983 and the Regulations under those Acts. Yours sincerely

Suellen Fitzgerald Parklands Director

Minister’s Foreword

02

Chairman’s report

03

Director’s report

04

Highlights of 2011-2012

06

The Organisation

07

Board Members

08

Building the Parklands

14

Financial Statements

41

Appendices


Minister’s Foreword

With visitation up 20 per cent this year, it is clear the Parklands have fast become an integral part of the fabric of Sydney’s west.

This growing popularity has been boosted by an extensive program of works, including new facilities in two key recreation areas, Lizard Log Park in Bossley Park and at Bungarribee Park in Blacktown. The Trust should be applauded for its focus on the future through community programs such as the first year of the 500 Schools Planting Program, where children from western Sydney schools are invited to ‘bring back the bush’ by participating in tree planting activities. The Parklands has a special place in western Sydney as an agricultural food base and a site for sustainable and innovative farming. In years to come it will be very rewarding to know that the tomatoes and other vegetables on our table were the result of an agreement entered into this year for a 10 ha glasshouse precinct. Our partner Village Roadshow is moving towards commencement of works for the much anticipated $115 million, 25 ha water theme park at Prospect. This exciting, world class venture will create extra leisure and tourism opportunities in western Sydney, and a new employment focus for the Parklands. The Trust continues to work closely with neighbouring councils on planning for business hubs, vital projects necessary to underpin a sound economic base for the Parklands, create new private investment and jobs close to home. Always at the heart of any plan, however, will be a commitment to ensure the Parklands remain relevant and connected to the community at every level. I look forward to working with the Trust to continue to expand delivery of this vital community asset for western Sydney.

The Hon. Robyn Parker, MP Minister for the Environment Minister for Heritage

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Chairman’s Report

As custodian of the Western Sydney Parklands, the Trust has continued to chart a course for sound management and sustainable development throughout 2011-2012.

Top of the Parklands’ priority list has been improving visitor experience with $5.2 million invested at key recreation hubs, Lizard Log and Bungarribee Park and other cycleways projects. With partners Blacktown City Council, the Trust has provided $5 million for the expansion and practical refurbishment of facilities at Nurragingy Reserve. These works have resulted in a 20 per cent increase in our visitor numbers and have also encouraged others to invest in new recreation, sport and tourism ventures, such as Village Roadshow’s $115 million water theme park at Prospect. Creating a sound financial future for the Parklands is a key priority outlined in the Plan of Management 2020. Our plans for strategically placed business hubs on two per cent of the Parklands will provide ongoing revenue to support the Parklands and underpin our financial strategy. In 2011-2012 the Trust worked closely with local Councils to identify suitable areas for business hub leases. Plans have been submitted to the NSW Government for two initial sites, an industrial park at Horsley Drive and a retail centre in Eastern Creek. It’s estimated that these hubs will attract capital investment of more than $200 million in Western Sydney and support around 1100 local full time jobs. These substantial outcomes could not have been achieved without the hard work of the Board, Parklands management and staff. I would like to thank my fellow Board members for their ongoing dedication. Finally, I would like to thank the Trust’s Director and her team for their enthusiasm and commitment to the many tasks and challenges delivering the key outcomes of the Plan of Management 2020.

Brendan Crotty Chairman Western Sydney Parklands

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Director’s Report

In 2011-2012, the Parklands Trust team reached new milestones, delivering extra services, expanding facilities and attracting 20 per cent more visitors than ever before.

Among these was significant progress on the capital works program at Lizard Log picnic playground, better walking and cycling tracks at Bungarribee Park and a makeover of facilities at the Plough and Harrow picnic grounds. In partnership with Blacktown City Council, upgrades to Nurragingy Reserve were commenced, including building new playgrounds and refurbishing ageing infrastructure. In March, Woof Fest 2012 celebrated the popularity of our dog off leash area, and later in the year we delivered on community requests to reserve picnic shelters and for more signage throughout the 27 kilometres of the Parklands. The first year of the innovative 500 Schools Planting Program brought children from 100 Western Sydney schools outdoors for practical experience as bush regenerators. New leases were entered into for an Ecoline High Ropes course at Plough and Harrow and for an urban farming glasshouse development at Pikes Lane. In addition we commenced planning and community engagements with our two priority business hubs, a 21 ha industrial business park at Horsley Park and a 17 ha retail centre at Eastern Creek. An internal restructure of resources in 2011-2012 has allowed the Trust to better service the community and we look forward to establishing strong working relationships with Councils and NSW Government colleagues in the Office of Environment and Heritage. Finally, I would like to recognise the commitment of the Trust’s team and welcome our newest members. The team has wide-ranging skills across many disciplines, but it is their professionalism, dedication to the environment and the community, and their positive spirit of which I am most proud.

Suellen Fitzgerald Director

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2011-2012

Highlights

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960,000 visitors to the Trust’s facilities (a 20 per cent increase) and a further 1.4 million people visited the venues of our partners and lessees. First biobanking credits sold as part of an ongoing involvement in the NSW Government’s Biobanking Scheme.

200 ha of bushland restored and enhanced.

Agreement for the lease of a new glasshouse development at Pikes Lane, Eastern Creek.

Submissions for Director-General’s Requirements for two priority business hub sites at Horsley Park and Eastern Creek.

Completion of the Ian Packer Junior Motorcycle Education Training Facility on a lease to Motorcycle NSW at Horsley Park.

Inaugural Woof Fest 2012 – a Dog Day Out West in March at Bungarribee Park.

Year One of the 500 Schools Planting Program launched in July 2011 at Lizard Log in Bossley Park.

Remodelling of Plough and Harrow Picnic Grounds

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The Organisation

The Western Sydney Parklands Trust is a NSW State Government statutory authority established in 2008 to plan, develop, manage and fund the Western Sydney Parklands as a multi-purpose, open space corridor to meet the needs of the Western Sydney community. The Trust is governed by the Western Sydney Parklands Act 2006 and reports to the NSW Minister for the Environment.

With its 5280 hectares largely undeveloped, the Trust is tasked with expanding public access to the Parklands and securing a strong funding base for ongoing operations, maintenance and improvements. The Trust must ensure that the Parklands remain welcoming and inclusive for all, are managed sustainably and have a long term, economically viable future.

Vision Western Sydney Parklands is a place for people of all backgrounds to meet, celebrate, learn, play and appreciate the environment. The Parklands will be a venue for communities to create and manage a new sustainable future on the Cumberland Plain.

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What we do The Western Sydney Parklands Trust is responsible for strategic planning of the Parklands, to build capacity, improve amenities and increase accessibility to public lands. In particular the Trust is focussed on providing access to the natural environment for children and families, opportunities to be involved in the restoration of the environment and to better understand the natural world. This includes establishing a sustainable income stream to fund operations and improvements to picnic areas, playgrounds, cycling and walking track networks and sporting facilities, as well as help restore and expand natural habitat throughout the Parklands. The Trust continues to facilitate public and private investment in the Parklands to develop and promote sport, recreation and tourism. Through managing its own ventures and making land available for private lease, the Trust creates momentum for economic sustainability.

Services to the community under the State Plan The Western Sydney Parklands Trust supports two key goals of the NSW Government’s 2020 State Plan. These are:

Goal 22: Protect our natural environment, and

Goal 27: Enhance cultural, creative, sporting and recreation opportunities. Targets under Goal 27 are to increase participation in sport, recreational, arts and cultural activities in Sydney from 2010 to 2016 by 10 per cent. As the largest single urban parkland system in Australia, the Parklands provide facilities for people of all ages, cultural groups and backgrounds. In 2011-12 Parklands visitation increased by 20 per cent to approximately 1,000,000 visitors for the year. A unique ecological resource for Western Sydney, its habitat is a haven for flora and fauna found on the Cumberland Plain and in the Western Sydney Parklands Dry Rainforest site. Restoring natural bushland brings new life as well as additional jobs to this key environmental corridor. The Parklands support employment and training opportunities in tourism, recreation and the environment.


Board Members

Member

Appointment

Brendan Crotty (Chairman)

Reappointed 1 January 2011

Professor Suzanne Benn

Appointment concluded 23 Aug 2011

Julie Bindon

Appointed 1 January 2011

Martin Butterworth

Appointed 1 January 2011

Chris Lawlor

Appointed 1 January 2011

Mike Patrick (Representative of the Chief Executive of the Office of Environment and Heritage)

Reappointed 1 January 2011

Norma Shankie-Williams (Representative of the Director-General of the Department of Planning and Infrastructure)

Reappointed 1 January 2011

Suellen Fitzgerald (Parklands Director)

Appointed July 2008

Current Board member profiles can be accessed at www.westernsydneyparklands.com. au/page/about-us/board-staffstructure on the Trust’s website. Board meetings are held every six weeks.

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Building the Parklands

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Building Recreation and Parklands Infrastructure

With more than 2.2 million Sydneysiders living within a 25 minute drive of the Parklands, our focus in 2011-2012 has been to build new facilities and expand popular amenities. Through a combination of public and private investment and innovative lease arrangements, the Parklands will be able to provide a vibrant mix of activities at different locations for a wide cross section of the community. With a large growing population in close proximity to the Parklands comes added pressure on open space and recreational facilities. Public demand for improved facilities and amenities has driven much of the building activity in the Parklands this year. The Trust has been dedicated to meeting these demands, especially at popular picnic and playgrounds such as Lizard Log in Bossley Park where $3.3 million in 2011-12 has been invested in extra car parking and other services.

At Bungarribee Park, improvements in the much loved off leash area for dogs include new shade structures, pathways and a bridge linking to the new community at Bunya. In partnership with Blacktown City Council, upgrades to playgrounds and ageing infrastructure at Nurragingy Reserve are underway. Expanded car parking and improved traffic control measures at the Plough and Harrow picnic grounds are keeping pace with the growing popularity of this area. Plough and Harrow will also be home to a new high ropes course in coming years, following the signing of a licence agreement with Ecoline for the Tree Top Adventure Park. The roll out of new signage and furniture is making it easier for people to get around the length and breadth of the Parklands and find their favourite spot. The Trust

With more than 2.2 million Sydneysiders living within a 25 minute drive of the Parklands, our focus in 2011-2012 has been to build new facilities and expand popular amenities

has also provided land at Eastern Creek for Blacktown City Council’s $5 million regional football grounds. The Parklands is now home to Motorcycle NSW’s (MNSW) Ian Packer Junior Motorcycle Education Training Facility, built by volunteers on land leased from the Trust. This significant facility has been recognised nationally as the most sophisticated, advanced junior motorcycle training facility in Australia.

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Building 10 and Protecting the Natural Environment and Conservation Lands

This year saw completion of the first program of monitoring the state of the environment in the Parklands. Data collected from 127 monitoring sites across the whole of the Parklands set a baseline for floristics, measuring native and exotic vegetation for each layer of the bushland structure. And a new monitoring program for the next three years has been prepared and tendered. A major environmental milestone reached in 2011-2012 was completion of the first three year contract for bio-restoration works. This year’s works from the $2.3 million total project provided positive impacts to 200 ha of bushland with new planting and extensive weeding, and conserved existing core habitat corridors along creeks, waterways and woodlands. This work will continue into the future with tenders prepared for a new set of bio-restoration contracts. These stipulate that the very latest monitoring techniques must be used to ensure the Trust meets environmental targets.

$250,000 spent on new and upgraded fire trails throughout the Parklands to protect bushland and public recreation areas

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With partners Conservation Volunteers Australia, the Parklands established a bush regeneration group to help rehabilitate bushland around the Plough and Harrow picnic grounds. The generous contribution of 142 community volunteers over 15 days has made a huge difference to the timely repair of this prime location. In 2011-12 the Trust faced the significant threat of psyllid induced die back affecting eucalypts across Western Sydney, including the Parklands. The Trust in liaison with the Cumberland Plain Woodland Recovery Team, investigated techniques to control the outbreak and minimise the impact on Grey Box eucalypts in particular across its native vegetation corridor. Another first for the Trust this year has been facilitating the release of land for new homes in western Sydney by providing vegetation offsets for development in the north and south west land release areas. The Trust entered into a Biobanking agreement with the Minister for the Environment for 23 ha at Cecil Park and 19 ha in Horsley Park. The Transport Construction Authority

(TCA) purchased 243 credits from the Cecil Park Biobank site allowing the TCA to commence construction of the South West Rail Line which will service future residential communities in south west Sydney. In partnership with the Sydney Catchment Management Authority, the Trust has spent $250,000 on new and upgraded fire trails throughout the Parklands to protect bushland and public recreation areas.


Building Community’s Access to the Parklands

At the heart of the Trust’s works and services program is ensuring this Western Sydney ‘backyard’ is accessible, welcoming and inclusive for all. Building strong community connections and relationships will guarantee a secure and viable future for the Parklands for generations to come. Across the board, visitors to the Parklands have increased substantially, up 20 per cent this year. Visitation peaked at around 960,000, with a further 1.6 million people using the sporting and other facilities provided by Parklands’ tenants and partners. In total, 2.5 million people visited the Parklands in 2011-2012. Statistics show the major attractions are the picnic playgrounds, the new off leash area for dogs at Bungarribee Park and the comprehensive network of walking and cycling tracks, with usage of the latter up more than five per cent on the previous year. A large number of schools and community groups use the Parklands for a variety of activities such as sports events, community walks and picnic days. About 7500 people in these groups use Parklands facilities mid-week, generally free of charge or for a nominal fee, including schools, orienteering clubs, learn to cycle clubs, activity days for disability groups and walking clubs.

children, who planted 20,000 native trees during the program’s 12 months of operation. Immensely popular with children and teachers alike, demand for places in the program quickly grew to take up all available planting dates.

variety of birds in the Parklands has become a pastime favoured by everyone from novice ornithologists to the most experienced of twitchers. This program was delivered in partnership with the Cumberland Bird Observers Club.

Our community ‘big day out’ for dogs in Sydney’s west, Woof Fest 2012, was the first of its type in the Parklands at the Bungarribee Park dog off leash area. With competitions, stalls and demonstrations of canine skills, Woof Fest 2012 was so successful it has a guaranteed place in next year’s events calendar.

Numerous requests from the public prompted the introduction of a new picnic shelter booking system to help visitors plan their family celebrations. The booking system was launch in the second half of 2011 and almost 250 family and community celebrations and events were booked using the system throughout the year. It is proving to be an increasingly popular way to enjoy the Parklands.

Other community events such as native wildlife tours continued to attract much public support. Watching the amazing

With ecological education a major curriculum activity, over 100 schools took part in this year’s calendar of environmental events in the Parklands. The main focus was bringing back the bush to Western Sydney. The first year of the 500 Schools Planting Program was launched in 2011 and quickly surpassed all expectations. This unique Parklands program provided buses, plants and trained supervisors for more than 4000 school

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Building Urban Farming in the Parklands

increase the total land available for urban farming to 520 ha in the future. This equates to about 10 percent of the total land available within the Parkland. The Trust is committed to helping maintain agricultural production in the Sydney basin for the long term, as well as providing a venue for new, sustainable farming practices.

Education is a strong focus of the urban farming program in the Parklands. Central to delivering this is the ongoing collaboration with our lessee at Calmsley Hill City Farm. The Farm provides visits for school children, bringing an understanding of farming and its importance to our life in the city.

To this end, the Trust entered into an agreement to lease 16 ha for a glasshouse precinct with Western Sydney Urban Farm Pty Ltd. This step into 21st century farming will eventually provide Sydney’s tables with truss tomatoes and other vegetables.

Increasing the amount of land available for urban farming is one of the five Strategic Directions in the Parkland’s Plan of Management 2020 that will help contribute to a diversity of future land uses. To achieve our goal, the Trust has set an ambitious target to

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Direction for these initiatives was provided by the Trust’s Future Farming Partners Group, which brings together expertise on agriculture in the Sydney Basin from the NSW Department of Primary Industries, the University of Western Sydney and the University of Sydney and the NSW Farmers Association.

The Trust is committed to helping maintain agricultural production in the Sydney basin for the long term, as well as providing a venue for new, sustainable farming practices.


Building the Parklands Business

To provide a sustainable funding base, two per cent of the Parklands has been allocated for business hubs to create a recurrent income stream to fund the operations, management and improvement in the Parklands in perpetuity. The Trust has spent the past year working with Blacktown City, Fairfield City and Liverpool City Councils, assessing sites for business hubs in the Parklands, against key criteria to maximise the economic potential of each site, while ensuring that only land that is of low conservation and recreational value is considered. The aim is to provide a framework that identifies about 100 ha for future business development across each of the three council areas. The Trust has developed detailed plans for two priority sites, Horsley Drive Business Park in Fairfield and Eastern Creek Retail Centre in Blacktown. In developing these, the Trust will invest around $27 million in infrastructure and traffic upgrades. It is expected that the two sites will attract an additional $200 million in private capital investment creating around 1100 local full time jobs and around 650 construction jobs.

The proposed business hubs will be assessed following lodgement of plans which include a detailed Environmental Impact Statement. An Expressions of Interest for lease opportunities will then be sought from the private sector. The Trust has provided ongoing support to Prospect Aquatic Investments to progress planning applications and preparation for construction of the $120 million water theme park for Western Sydney. The Trust undertook several major management initiatives in 2011-2012 to streamline operations and sharpen the focus of activities. These included creating a full Workplace Health and Safety Risk Management Strategy to support staff and visitors.

This year has seen the Trust reach beyond its geographic boundaries to contribute to the planning of new housing areas and communities in Western Sydney. A draft Precinct Plan for the southern part of the Parklands in Liverpool was prepared, in response to NSW Department of Planning and Infrastructure’s work on the South West Land Release Area. Contributing to what will be new communities for future generations of Sydneysiders is a special privilege of which the Trust is proud to be a part. The Trust completed a strategic assessment of residential cottages, as a major Trust asset which will support the building of revenue in the long term.

The Trust’s staffing structures were realigned and new positions introduced to provide additional community and business services.

In March 2012 we received DirectorGeneral’s Requirements from the NSW Department of Planning and Infrastructure, which set out requirements that need to be addressed to assess future development on each site. Substantial progress investigating the suitability of each of these business hubs has since been made by the Trust and we are committed to getting the best outcome for the Trust and our stakeholders. To this end, engagement with the business community, environmental and heritage groups, along with liaison with local Aboriginal organisations has been a key part of our investigations.

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Financial Statements For the year ended 30 June 2012

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Statement by Members of the Board

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Independent Auditor’s Report

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Western Sydney Parklands Trust

Statement of Comprehensive Income

for the year ending 30 June 2012

Actual 2012 $’000

Notes

Budget 2012 $’000

Actual 2011 $’000

Expenses excluding losses Operating expenses

Personnel services

2(a)

2,006

2,396

1,921

Other operating expenses

2(b)

3,990

4,281

3,865

Depreciation and amortisation

2(c)

1,177

1,084

708

TOTAL EXPENSES EXCLUDING LOSSES

7,173

7,761

6,494

Revenue

Investment revenue

3(a)

487

374

455

Grants and contributions

3(b)

7,063

6,542

6,850

Other revenue

3(c)

6,410

7,713

12,326

Total Revenue

13,960

14,629

19,631

167

-

(6)

6,954

6,868

13,131

Gain / (loss) on disposal

4

Net result

Other comprehensive income

Net increase / (decrease) in property, plant and equipment revaluation surplus

-

-

190

Total other comprehensive income

-

-

190

TOTAL COMPREHENSIVE INCOME

6,954

6,868

13,321

The accompanying notes form part of these financial statements.

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Western Sydney Parklands Trust

Statement of Financial Position

as at 30 June 2012

Notes

Actual 2012 $’000

ASSETS

Current Assets

Cash and cash equivalents

5

13,096

6,621

8,290

Receivables

6

534

495

4,847

13,630

7,116

13,137

-

-

Total Current Assets Non-Current Assets Receivables

7

Property, plant and equipment

8

1,983

Budget 2012 $’000

Actual 2011 $’000

487,820

492,664

483,476

673

614

661

37,736

33,633

32,407

526,229

526,911

516,544

1,233

-

Total Non-Current Assets

529,445

526,911

516,544

Total Assets

543,075

534,027

529,681

- Land and buildings - Plant and equipment - Infrastructure systems Total property, plant and equipment Intangible assets

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LIABILITIES

Current Liabilities

Payables

10

2,755

961

3,486

Provisions

11

150

137

137

2,905

1,098

3,623

Total Current Liabilities Non-Current Liabilities Provisions

3,468

-

-

Total Non-Current Liabilities

12

3,468

-

-

Total Liabilities

6,373

1,098

3,623

536,702

532,929

526,058

53,493

53,303

53,493

Accumulated funds

483,209

479,626

472,565

Total Equity

536,702

532,929

526,058

Net Assets EQUITY Reserves

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The accompanying notes form part of these financial statements.

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Western Sydney Parklands Trust

Statement of Changes in Equity

for the year ended 30 June 2012

Notes

Accumulated Funds $’000

Asset Revaluation Surplus $’000

Total $’000

Balance at 1 July 2011

472,565

53,493

526,058

Net result for the year

6,954

-

6,954

Other comprehensive income:

Net increase / (decrease) in property, plant and equipment revaluation surplus)

-

-

-

Total other comprehensive income

-

-

-

Total comprehensive income for the year

6,954

-

6,954

Transactions with owners in their capacity as owners

13

3,690

-

3,690

Balance at 30 June 2012

483,209

53,493

536,702

Balance at 1 July 2010

444,984

53,303

498,287

Net result for the year

13,131

-

13,131

Other comprehensive income:

Net increase / (decrease) in property, plant and equipment revaluation surplus

-

190

190

Total other comprehensive income

-

190

190

Total comprehensive income for the year

13,131

190

13,321

13

14,450

-

14,450

472,565

53,493

526,058

Increase / (decrease) in net assets from equity transfers

Transactions with owners in their capacity as owners Increase / (decrease) in net assets from equity transfers Balance at 30 June 2011

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Western Sydney Parklands Trust

Statement of Cash Flows

for the year ended 30 June 2012

Notes

Actual 2012 $’000

Budget 2012 $’000

Actual 2011 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Personnel services

2,039

2,306

1,847

Suppliers and others

4,623

6,896

5,368

Total Payments

6,662

9,202

7,215

Receipts

Interest received

487

374

455

Grants and contributions

7,063

6,542

6,850

Rent received

2,378

-

2,209

Compensation for easement

1,053

-

137

Sale of biobanking credits

928

-

-

Offset and environmental fee

929

-

236

Other

5,382

12,063

5,888

Total Receipts

18,220

18,979

15,775

15

11,558

9,777

8,560

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of land and buildings, plant and equipment and infrastructure systems

179

-

-

Purchases of land and buildings, plant and equipment and infrastructure systems

(6,931)

(11,446)

(10,109)

NET CASH FLOWS FROM INVESTING ACTIVITIES

(6,752)

(11,446)

(10,109)

CASH FLOWS FROM FINANCING ACTIVITIES

-

-

-

NET CASH FLOWS FROM FINANCING ACTIVITIES

-

-

-

NET INCREASE / (DECREASE) IN CASH

4,806

(1,669)

(1,549)

Opening cash and cash equivalents

8,290

8,290

9,839

CLOSING CASH AND CASH EQUIVALENTS

5

13,096

6,621

8,290

NET CASH FLOWS FROM OPERATING ACTIVITIES

The accompanying notes form part of these financial statements

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Western Sydney Parklands Trust

Notes to the Financial Statements

for the year ending 30 June 2012

Accounting Policy Note 1. Summary of Significant Accounting Policies (a) Reporting entity The Western Sydney Parklands Trust, as a reporting entity, is responsible for coordinating the development and management of 5,280 ha of conservation, destination and community parklands in the western suburbs of Sydney. The Western Sydney Parklands Trust is a NSW government entity. The Trust is a not-for-profit entity (as profit is not its principal objective) and it has no cash generating units. The reporting entity is consolidated as part of the NSW Total State Sector Accounts. These financial statements for the year ended 30 June 2012 have been authorised for issue by the Board of the Trust for issue by the Chairman on 28 September 2012.

(b) Basis of preparation The Trust’s financial statements are general purpose financial statements which have been prepared in accordance with: -- applicable Australian Accounting Standards (which include Australian Accounting Interpretations) -- the requirements of the Public Finance and Audit Act 1983 and Regulation. -- the Financial Reporting Directions published in the Financial Reporting Code for NSW General Government Sector Entities or issued by the Treasurer. Property, plant and equipment, and financial assets are at fair value. Other financial statement items are prepared in accordance with the historical cost convention.

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Judgements, key assumptions and estimations that management has made are disclosed in the relevant notes to the financial statements. All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

(c) Statement of compliance The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

(d) Insurance

(f ) Income recognition The Trust recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the activities as described below. The amount of revenue is not considered to be reliably measured until all contingencies relating to the sale have been resolved. The entity bases its estimates on historical results, taking into consideration the type of customer, the type of transaction, and the specifics of each arrangement.

The Trust’s insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self insurance for Government agencies. The expense (premium) is determined by the Fund Manager based on past claims experience.

Revenue is measured at the fair value of the consideration or contribution received or receivable. Additional comments regarding the accounting policies for the recognition of revenue are discussed below.

(e) Accounting for the Goods and Services Tax (GST)

Lease revenue from operating leases is recognised in accordance with AASB 117 Leases on a straightline basis over the lease term.

Income, expenses and assets are recognised net of the amount of GST, except that: -- The amount of GST incurred by the Trust as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense and; -- receivables and payables are stated with the amount of GST included. -- Cash flows are included in the statement of cash flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities which is recoverable from or payable to the Australian Taxation Office are classified as operating cash flows.

(i) Lease revenue

(ii) Long term leases of land Long term prepaid leases of land are usually classified as finance leases the risks and rewards incidental to ownership of the land are substantially transferred to the lessees. Where lessees make up-front lease payments, this arrangement is accounted for as a sale and the leased assets are de-recognised (iii) Investment revenue Interest revenue is recognised on an accrual basis using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. (iv) Grants and contributions


Grants and contributions from other bodies (including donations) are generally recognised as revenue when the Trust obtains control over the assets comprising the grants / contributions. Control over grants and contribution is normally obtained upon the receipt of cash. (v) Interface land proceeds The Trust’s entitlement to 25% of the lands proceeds was established by the NSW Cabinet Standing Committee decision on 25th September 2006; the Trust recognises revenue from Interface land proceeds in accordance with its Deed with the Office of Strategic Lands (“OSL”). Revenue is recognised at the end of 3 months period of receipt of funds by OSL or upon the receipt of cash. (vi) Bio-banking Trust Fund income Payments from the Trust Fund are recognised as income in the period in which the cash is received.

(g) Assets (i) Acquisitions of assets The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the Trust. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of Australian Accounting Standards. Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition. Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.

Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. deferred payment amount is effectively discounted at an asset-specific rate. (ii) Capitalisation thresholds Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network or a group costing more than $5,000) are capitalised. (iii) Revaluation of property, plant and equipment Physical non-current assets are valued in accordance with NSW Treasury policy outlined in “Valuation of Physical Non-Current Assets at Fair Value” (TPP 07-1). This policy adopts fair value in accordance with AASB 116 Property Plant and Equipment. Property, plant and equipment is measured on an existing use basis, where there are no feasible alternative uses in the existing natural, legal, financial and socio-political environment. However, in the limited circumstances where there are feasible alternative uses, assets are valued at their highest and best use. Fair value of property, plant and equipment is determined based on the best available market evidence, including current market selling prices for the same or similar assets. Where there is no available market evidence, the asset’s fair value is measured at its market buying price, the best indicator of which is depreciated replacement cost. The Trust revalue’s each class of property, plant and equipment at least every five years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at statement date. The last revaluation was completed on 30 June 2010 and was based on an independent assessment.

Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value When revaluing non-current assets by reference to current prices for assets newer than those being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated. For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements. Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the surplus / deficit, the increment is recognised immediately as revenue in the net result. Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation surplus As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise. Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds.

23


24

Western Sydney Parklands Trust

Notes to the Financial Statements

(iv) Impairment of property, plant and equipment As a not-for-profit entity with no cash generating units, the Trust is effectively exempted from AASB 136 Impairment of Assets and impairment testing. This is because AASB 136 modifies the recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. This means that, for an asset already measured at fair value, impairment can only arise if selling costs are material. Selling costs are regarded as immaterial. (v) Depreciation of property, plant and equipment Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to the Trust. All material separately identifiable components of assets are depreciated over their shorter useful lives. Land is not a depreciable asset, depreciation rates of other assets are: Buildings

- 2% to 2.5%

Infrastructure systems

- 2% to 20%

Plant and equipments

- 2.5% to 20%

Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated. (vi) Maintenance Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated (vii) Leased assets

24

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor effectively retains all such risks and benefits. Where a non-current asset is acquired by means of a finance lease, the asset is recognised at its fair value at the commencement of the lease term. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense. Operating lease payments are charged to the statement of comprehensive income in the periods in which they are incurred. (viii) Residential dwellings There are 80 residential dwellings within the parklands that generate rental income and contribute toward Trust’s revenue streams. The Trust considers the value of the properties based on condition assessment report to be nil due to the age of the dwellings, and have not recorded these in the financial statements. These dwellings were acquired as an attachment to the land parcel by the Office of Strategic Lands and its predecessor departments over the 30 year period to convert these parcels of land into parklands for community use. The properties are not held for the primary purpose to generate rental income, neither are they held for capital appreciation. The Trust considered the dwellings on the lots and rental revenue as incidental to the broader strategic purpose of Western Sydney Parklands Trust (ix) Intangible assets The Trust recognises intangible assets only if it is probable that future economic benefits will flow to the entity and the

for the year ending 30 June 2012

cost of the asset can be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition. All research costs are expensed. Development costs are only capitalised when certain criteria are met. The useful lives of intangible assets are assessed to be finite. The Trust carried intangible assets at cost less any accumulated amortisation and any accumulated impairment losses in accordance with (AASB 138 para74) Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its carrying amount, the carrying amount is reduced to recoverable amount and the reduction is recognised as an impairment loss. (x) Biobanking Credits Biobanking Credits are recognises as an intangible asset upon signing the Biobanking agreement with Office of Environment and Heritage. The credits are initially recognised ‘at cost’. The ‘cost’ of the asset is considered to be the value of the Biobanking Liability. Biobanking Liability is the environmental obligations to maintain the biodiversity of the land in accordance with the terms and conditions of the Biobanking Agreement. (xi) Biobanking Trust Fund Receivable The Biobanking Agreement requires that a pre-determined portion of proceeds from the sale of Credits to be deposited into the Biobanking Trust Fund. The balance of the Biobanking Trust Fund represents amounts that will be made available to WSPT in order to fund the performance of the environmental works required under the Biobanking Agreement.


(xii) Loans and receivables

(i) Revaluation surplus

Loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are accounted for in the statement of comprehensive income when impaired, derecognised or through the amortisation process.

The revaluation surplus is used to record increments and decrements on the revaluation of non-current assets. This accords with the entity’s policy on the revaluation of property, plant and equipment as discussed in note 1(g) (iii).

Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(i) Liabilities (i) Payables These amounts represent liabilities for goods and services provided to the Trust and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. (ii) Personnel Services and other provisions Personnel services are acquired from the Department of Premier and Cabinet as Trust’s staffs are employed by Department of Premier and Cabinet. Personnel services including related on-cost expense and liabilities are recognised in accordance with Treasury Guidelines (NSWTC 06/13) and AASB 119. (j) Equity and reserves

(ii) Accumulated Funds The category ‘Accumulated Funds’ includes all current and prior period retained funds. (iii) Separate reserve accounts are recognised in the financial statements only if such accounts are required by specific legislation or Australian Accounting Standards (e.g. revaluation surplus and foreign currency translation reserve (l) Equity Transfers The transfer of net assets between entities as a result of an administrative restructure, transfers of programs / functions and parts thereof between NSW public sector entities and ‘equity appropriations’ are designated or required by Accounting Standards to be treated as contributions by owners and recognised as an adjustment to ‘Accumulated Funds’. This treatment is consistent with AASB 1004 Contributions and Australian Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities. Transfers arising from an administrative restructure involving not-for-profit and for-profit government entities are recognised at the amount at which the assets and liabilities were recognised by the transferor immediately prior to the restructure. Subject to below, in most instances this will approximate fair value. All other equity transfers are recognised at fair value, except for intangibles. Where an intangible has been recognised at (amortised) cost by the transferor

because there is no active market, the entity recognises the asset at the transferor’s carrying amount. Where the transferor is prohibited from recognising internally generated intangibles, the entity does not recognise that asset

(l) Financial Reporting Code The Financial Reporting Code (the Code) has been extended to apply to all New South Wales general government sector (GGS) entities commencing with financial years ending on or after 30 June 2012. Extending the Code to GGS entities more accurately reflects the current focus of financial reporting in New South Wales. The Consolidated Financial Statements of New South Wales report on the GGS and the total state sector. The classification of entities in the Budget no longer distinguishes between budget dependent and non-budget dependent entities as in prior years. The Code sets out the financial reporting framework for NSW GGS entities. It outlines the form and content of the financial statements, including the note disclosures. The Code incorporates the disclosure requirements of Australian Accounting Standards applicable to NSW GGS entities The Trust does not consider any impact on the relevance, reliability and comparability of financial statements from the adoption of the code at 30 June 2012 to the prior year’s reporting format. Where the presentation or classification of items in the financial statements is amended, comparative amounts has been be reclassified unless impracticable.

(m) Budgeted amounts The budgeted amounts are drawn from the original budgeted financial statements presented to Parliament in respect of the reporting period, as adjusted for section 24 of the Public Finance and Audit Act 1983

25


26

Western Sydney Parklands Trust

Notes to the Financial Statements

where there has been a transfer of functions between departments. Other amendments made to the budget are not reflected in the budgeted amounts.

-- AASB 2010-10 regarding removal of fixed dates for first time adopters

(n) Comparative information

-- AASB 2011-3 regarding orderly adoption of changes to the ABS GFS Manual

Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements.

(o) Accounting Standards issued but not yet effective Following New Australian Accounting Standards and Interpretations have recently been issued but are not yet effective and have not been adopted by the Trust for the year ended 30 June 2012 in accordance with Treasury guidelines (NSW TC 12/04). The Trust does not anticipate any material impact of these accounting standards on the financial statements of the Trust. -- AASB 9 and AASB 2010-7 regarding financial instruments -- AASB 10 Consolidated Financial Statements -- AASB 11 Joint Arrangements -- AASB 12 Disclosure of Interests in Other Entities -- AASB 13 and AASB 2011-8 regarding fair value measurement -- AASB 119 , AASB 2011-10 and AASB 2011-11 regarding employee benefits -- AASB 127 Separate Financial Statements -- AASB 128 Investments in Associates and Joint Ventures -- AASB 1053 and AASB 2010-2 regarding differential reporting -- AASB 2010-8 regarding deferred tax

26

-- AASB 2011-2 regarding Trans Tasman Convergence – RDR

-- AASB 2011-4 removing individual KMP disclosure requirements -- AASB 2011-6 regarding RDR and relief from consolidation -- AASB 2011-7 regarding consolidation and joint arrangements -- AASB 2011-9 regarding presentation of items of other comprehensive income -- AASB 2011-12 regarding Interpretation 20 -- AASB 2011-13 regarding AASB 1049 and GAAP/GFS harmonisation

for the year ending 30 June 2012


Note 2 ・Expenses Excluding Losses

2012

2011

$’000

$’000

1,796

1,731

120

113

(a) Personnel Services Expense: Personnel Services including services acquired from Department of Premiers and Cabinet: Salaries and wages (including recreation leave) Superannuation - defined contribution plans Long service leave

-

-

Workers’ compensation insurance

13

-

Payroll tax and fringe benefit tax

77

77

2,006

1,921

(b) Other operating expenses include the following:

Maintenance - Grounds & Garden **

1,009

842

Repair and Maintenance – Property **

217

183

Property Management

421

392

Repair and Maintenance - Other **

118

70

Services Fee

909

762

Consultancies

133

497

Legal

147

126

Office Accommodation

171

212

Marketing/Promotion/ Advertising

477

425

Audit Auditor’s remuneration - audit of the financial statements

42

31

Insurance

38

38

Motor Vehicle

57

46

251

241

3,990

3,865

Other

(c) Depreciation and amortisation expense

Land and buildings

297

17

Infrastructure systems

816

632

Plant and equipments

64

59

1,177

708

** Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated in accordance with TPP06-06. There were no personnel services related maintenance expenses during the year.

27


28

Western Sydney Parklands Trust

Notes to the Financial Statements

for the year ending 30 June 2012

Note 3 ・Revenue

2012 $’000

2011 $’000

(a) Investment revenue

Interest received

487

455

487

455

(b) Grants and contributions

Grants/contributions received

7,063

6,850

7,063

6,850

(c) Other revenue

Share of Land proceeds - Office of Strategic Lands(i)

1,040

9,367

Rental Income

2,354

2,031

Compensation for easement

1,053

137

Sale of Bio-banking credits

928

-

Offset and Environmental Services

677

236

Management action fee - biobanking

251

-

Other

107

555

6,410

12,326

(i) The Trust’s entitlement to 25% of the lands proceeds was established by the NSW Cabinet Standing Committee decision on 25th September 2006; Revenue is recognised at the end of 3 months period from the receipt of funds by OSL or upon the receipt of cash.

28


2012 $’000

Note 4 - Gain/(Loss) on Disposal Gain on disposal of Land

2011 $’000

Proceeds from disposal

179

-

Carrying value of assets disposed

(12)

(6)

Net gain on disposal of land

167

(6)

Note 5. Current Assets – Cash and Cash Equivalents

Cash at bank and on hand

13,096

8,290

13,096

8,290

For the purposes of the statement of cash flows, cash and cash equivalents include cash at bank, cash on hand, short-term deposits and bank overdraft

Cash and cash equivalent assets recognised in the statement of financial position are reconciled at the end of the financial year to the statement of cash flows as follows:

Cash and cash equivalents (per Statement of Financial Position)

13,096

8,290

Closing cash and cash equivalents (per statement of cash flows)

13,096

8,290

Refer Note 18 for details regarding credit risk, liquidity risk and market risk arising from financial instruments

29


30

Western Sydney Parklands Trust

Notes to the Financial Statements

Note 6. Current - Receivables

for the year ending 30 June 2012

2012 $’000

2011 $’000

Trade and other Receivable

286

4,842

Goods and services tax

248

5

534

4,847

Note 7. Non-Current - Receivables

Bio-banking Trust Fund Deposit

1,983

-

1,983

-

Bio-banking Trust Fund Deposit represents net present value of the amounts that will be made available to the Trust through the fund to perform the environmental works required under the Biobanking Agreement.

30


Note 8 - Non-Current Assets – Property, Plant and Equipment At 1 July 2011 - fair value Gross carrying amount Accumulated depreciation and impairment Net carrying amount

At 30 June 2012 - fair value Gross carrying amount Accumulated depreciation and impairment Net carrying amount At 1 July 2010 - fair value Gross carrying amount Accumulated depreciation and impairment Net carrying amount

At 30 June 2011 - fair value Gross carrying amount Accumulated depreciation and impairment Net carrying amount

Land and Buildings $’000

Plant and Equipment $’000

Infra- structure Systems $’000

Total $’000

468,892

740

24,305

493,938

(39)

(115)

(1,279)

(1,433)

468,853

625

23,027

492,504

488,035

852

39,831

528,718

(215)

(179)

(2,095)

(2,488)

487,820

673

37,736

526,229

468,875

688

23,674

493,237

(23)

63

647

687

468,852

751

24,321

493,924

483,515

783

33,686

517,984

(39)

(122)

(1,279)

(1,440)

483,476

661

32,407

516,544

During the year, additional parcels of lands and buildings were transferred from the Corporation Sole, Minister Administering the Environmental Planning and Assessment Act 1979 to the Trust as a result of amendments to the Western Sydney Parklands Trust Act 2006. The increase in Infrastructure Systems relates to the development and commissioning of additional recreation facilities that have been completed or are under construction at 30 June 2012.

31


32

Western Sydney Parklands Trust

Notes to the Financial Statements

Reconciliation A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the prior reporting period is set out below: Period ended 30 June 2012

Land and Buildings $’000

for the year ending 30 June 2012

Plant and Equipment $’000

Infrastructure Systems $’000

Total $’000

483,476

661

32,407

516,544

Additions

148

77

6,960

7,185

Disposals

(12)

-

(0)

(12)

assets transferred in - Corporation Sole EPA 1979

3,690

-

-

3,690

Depreciation expense

(176)

(64)

(816)

(1,056)

487,125

674

38,551

526,351

Net carrying amount at start of year

Other movements:

Net carrying amount at end of year Year ended 30 June 2011

468,853

625

23,027

492,505

Additions

-

101

10,012

10,113

Disposals

-

(6)

-

(6)

Other movements:

14,450

-

-

14,450

190

-

-

190

(17)

(59)

(631)

(708)

483,476

661

32,407

516,544

Net carrying amount at start of year

assets transferred in - ARDC Net revaluation increment less revaluation decrements Depreciation expense Net carrying amount at end of year

Included in property, plant and equipment are the following amounts of work in progress which will not commence to be depreciated until construction is completed or the items are installed ready for use

2012 $’000

Work in progress Plant and Equipment Infrastructure Systems

2011 $’000

77

-

9,722

9,204

9,798

9,204

Included in the work in progress total above is $142,000, which relates to capital works at Nurrangingy reserve. The reserve is under the care control and management of Blacktown City Council (“BCC”). The Trust will consider transferring improvement to BCC at the completion of the project.

32


Note

9. Intangible Assets

At 30 June 2012 Cost (gross carrying amount) Accumulated amortisation and impairment Net carrying amount

Bio-banking Credits $’000 1,233 1,233

Year ended 30 June 2012

Net carrying amount at start of year

-

Additions Amortisation (recognised in ‘depreciation and amortisation’) Disposal Net carrying amount at end of the year

3,468 (2,235) 1,233

33


34

Western Sydney Parklands Trust

Notes to the Financial Statements

Note 10. Current Liabilities - Payables

for the year ending 30 June 2012

2012 $’000

2011 $’000

73

50

2,602

3,091

80

48

-

297

2,755

3,486

Personnel Services Creditors Unearned revenue Goods and services tax

Note

11. Current Liabilities - Provisions

Personnel Services and related on- costs

Recreation leave current

150

137

150

137

Note 12 - Non-Current Liabilities – Provisions

Bio-banking Liability

3,468

-

3,468

-

Bio-Banking liability above represents the Trust’s commitmentss to a number of environmental obligations to maintain the biodiversity of the land in accordance with the terms and conditions of the Bio-Banking Agreement

34


Note 13. Increase in Net Assets from Equity Transfers Assets transferred from:

2012 $’000

Office of Sport Recreation and Communities

2011 $’000

-

14,450

3,690

-

3,690

14,450

(a) Capital Commitments

Aggregate capital expenditure for the development of Lizard Log picnic ground, Nurringingy reserve and Biorestoration Programs contracted for at balance date and not provided for:

Corporation Sole, Minister Administering the Environmental Planning and Assessment Act 1979

All equity transfers are recognised at fair value, except for intangibles.

Note 14. Commitments for Expenditure

Not later than one year

990

426

Total (including GST)

990

426

(b) Operating Lease Commitments

Future non-cancellable motor vehicle operating lease rentals not provided for and payable:

Not later than one year

24

19

Later than one year and not later than five years

2,531

24

Total (including GST)

4,955

43

Consistent with NSWTC 10/15, commitments are stated with the amount of GST included of $95,000 ($42,636 in 2011)

Note 15. Reconciliation of Cash Flows from Operating Activities to Net Result Net cash used on operating activities

11,558

8,560

Depreciation

(1,177)

(708)

(13)

(21)

(4,257)

3,856

Decrease / (increase) in creditors

676

1,444

Net gain / (loss) on sale of plant and equipment

167

-

6,54

13,131

Decrease / (increase) in provisions Increase / (decrease) in prepayments and other assets

Net result

35


36

Western Sydney Parklands Trust

Notes to the Financial Statements

for the year ending 30 June 2012

16. Related party disclosure (a) Board of the Trust The Board of the trust during the financial year were: Name Brendan Crotty – Chairman Julie Bindon Chris Lawlor Martin Butterworth Prof. Suzanne Benn (resigned 23 August 2011) Norma Shankie Williams – (Representative of DG Department of Planning and Infrastructure) Mike Patrick – (Representative of CE Office of Environment and Heritage) Suellen Fitzgerald (Director, Western Sydney Parklands Trust)

(b) Board Members Remuneration The total remuneration of Board Members who were not government employees, including compulsory superannuation entitlements for the financial year was:

$0 - $10,000

4

$50,000 - $60,000

1

17. Contingent Assets and Contingent Liabilities (a) Contingent Assets The Western Sydney Parklands Trust is not aware of any contingent asset at the date of this statement.

(b) Contingent Liabilities The Western Sydney Parklands Trust is not aware or any contingent liability at the date of this statement.

36


18. Financial Instruments The Trust’s principal financial instruments are outlined below. These financial instruments arise directly from the Trust’s operations or are required to finance the Trust’s operations. The Trust does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Trust’s main risks arising from financial instruments are outlined below, together with the Trust’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout this these financial statements. The Director has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Trust, to set risk limits and controls to monitor risks. Compliance with policies is reviewed by the Audit Audit and Risk and Compliance Committee on a regular basis.

(a) Financial instrument categories

Financial Assets

Note

Category

Carrying Amount 2012

Carrying Amount 2011

Class: Cash and cash equivalents

5

N/A

13,096

8,260

Receivables1

6

Loans and receivables (at amortised cost)

2,269

4,842

Carrying Amount 2012

Carrying Amount 2011

2,755

3,141

Financial Liabilities

Note

Category

Class:

Payables2

8

Financial liabilities measured at amortised cost

Notes: 1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). 2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).

(b) Credit Risk Credit risk arises when there is the possibility of the Trust’s debtors defaulting on their contractual contributions, resulting in a financial loss to the Trust. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the financial assets of the Trust, including cash, receivables, and authority deposits. No collateral is held by the Trust. The Trust has not granted any financial guarantees. Cash comprises cash on hand and bank balances. Interest is earned on daily bank balances.

37


38

Western Sydney Parklands Trust

Notes to the Financial Statements

for the year ending 30 June 2012

Receivables – trade debtors All trade and other debtors are recognised as amounts receivable at balance date. Collectability of all debtors is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. An allowance for impairment is raised when there is objective evidence that the entity will not be able to collect all amounts due. The credit risk is the carrying amount (net of any allowance for impairment). No interest is earned on trade debtors. The carrying amount approximates net fair value. Sales are generally made on 30 day terms. The Trust is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. Based on past experience, debtors that are not past due and not less than three months past due are not considered impaired and together these represent 100% of the total trade debtors. There are no debtors which are currently not past due or impaired whose terms have been renegotiate.

2012 < 3 months overdue

Total1,2 $’000

Past due but not impaired1,2 $’000

Considered impaired1,2 $’000

286

-

-

4,842

-

-

3 months – 6 months overdue > 6 months overdue 2011 < 3 months overdue 3 months – 6 months overdue > 6 months overdue

Notes: 1. Each column in the table Statements “gross receivables” 2. The ageing analysis excludes statutory receivables, as these are not within the scope of AASB 7 and excludes receivables that are not past due and not impaired. Therefore, the “total” will not reconcile to the receivables total recognised in the statement of financial position.

(c) Liquidity Risk Liquidity risk is the risk that the Trust will be unable to meet its payment obligations when they fall due. The Trust continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. No assets have been pledged as collateral. The Trust’s exposure to liquidity risk is deemed insignificant based on current assessment of risk. The liabilities are recognised for amounts due to be paid in the future for goods and services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in Treasurer’s Direction 219.01. If trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or statement is received. Treasurer’s Direction 219.01 allows the Minister to award interest for late payment. No Interest was applied during the financial year. The table below summarises the maturity profile of the Trust’s financial liabilities, together with the interest rate exposure.

38


Maturity analysis and interest rate exposure of financial liabilities Maturity Dates

Interest Rate Exposure

Weighted Average Effective Int. Rate $’000

Nominal Amount1 $’000

Fixed Interest Rate $’000

Variable Interest Rate $’000

Noninterest bearing $’000

< 1 yr $’000

1-5 yrs $’000

> 5 yrs $’000

-

-

-

2,755

-

-

2,755

-

-

3,141

-

-

3,141

-

-

2012

Payables

2,755

2,755

2011

Payables

3,141

3,141

-

-

-

Notes: The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities based on the earliest date on which the entity can be required to pay.

(d) Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Trust has no exposure to foreign currency risk and does not enter into commodity contracts or interest rate swaps. The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the Trust operates and the time frame for the assessment (i.e. until the end of the next statement period). The sensitivity analysis is based on risk exposure in existence at the financial position date. The analysis assumed that all other variables remain constant.

39


40

Western Sydney Parklands Trust

Notes to the Financial Statements

for the year ending 30 June 2012

(e) Interest Rate Risk The Trust does not account for any fixed rate financial instruments at fair value through profit or loss or as available-for-sale. Therefore, for these financial instruments, a change in interest rates would not affect profit or loss or equity. A reasonably possible change of +/1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is a structural change in the level of interest rate volatility. The Trust’s exposure to interest rate risk is set out below. Carrying Amount $’000

2012

Financial assets Cash and cash equivalents Receivables

-1% Profit $’000

-1% Equity $’000

1% Profit $’000

13,096

(130.96)

(130.96)

130.96

2,269

-

-

-

2,755

-

-

-

2011

Financial liabilities Payables

Financial assets

Cash and cash equivalents

8,260

(82.60)

(82.60)

82.60

Receivables

4,842

-

-

-

3,141

-

-

-

Financial liabilities Payables

1% Equity $’000

130.96

82.60

19. Events after the Reporting Period The Western Sydney Parklands Trust entered into an Agreement for Lease with Prospect Aquatic Investments (PAI) in September 2010 for a water theme park on a 25ha site within the Parklands at Prospect. On the 9th September 2012 the Premier announced the commencement of construction works on site. PAI anticipate that works will complete in September 2013 and a 50 year lease of the site and lease payments will start from the date of operational opening.

End of Audited Financial Statements

40


Appendices

Agreements with the Community Relations Commission There were no agreements made with the Community Relations Commission during the 2011-2012 period.

Annual Report Availability

Committees

The Western Sydney Parklands Trust Annual Report 2011-2012 is available online at www.westernsydneyparklands. com.au/page/corporate/

Audit Risk and Compliance Committee The committee addressed financial, accounting, reporting and internal controls, risk management and compliance issues.

Appointment

Jim Mitchell, Chair (appointment expired on 30/10/2011)

Brendan Crotty (Chairman)

Reappointed 1 January 2011

Brendan Crotty

Julie Bindon

Appointed 1 January 2011

Chris Lawlor

Martin Butterworth

Appointed 1 January 2011

Code of Conduct

Professor Suzanne Benn

Appointment concluded 23 Aug 2011

Chris Lawlor

Appointed 1 January 2011

Mike Patrick (Representative of the Chief Executive of the Office of Environment and Heritage)

Reappointed 1 January 2011

Norma Shankie-Williams (Representative of the Director General of the Department of Infrastructure and Planning)

Reappointed 1 January 2011

Suellen Fitzgerald (Parklands Director)

Reappointed 1 July 2011

Member

Current Board member profiles can be accessed at www.westernsydneypa. com.au/page/about-us/board-staff-structure/ on the Trust’s website. Board meetings are held every six weeks.

Western Sydney Parklands Trust staff are bound by the requirements of the Public Sector Employment and Management Act 2002, the Department of Premier and Cabinet Code of Conduct and other relevant legislation applying to public employment.

Consultants’ Fees The Trust engages consultants for specialised work only where there is no in-house expertise. The Trust has used consultants in specialist areas such as engineering, management services, community consultation, planning, design and sustainability. There were six consultants used during the year whose fees were $30 000 or more. Nine consultants whose fees were up to $30 000 were engaged with their fees totalling $133,000.

Consumer response and effect of functions on members of the general public The Trust has a direct effect on the public by encouraging the use and enjoyment of Western Sydney Parklands. The Trust maintains and improves Trust lands and encourages their use. Members of the general public who wish to provide the Trust with feedback, comments or a complaint are encouraged

41


42

Appendices

to contact the Western Sydney Parklands Trust office directly or to leave feedback on the general enquiries email enquiries@wspt.nsw.gov.au

Contacting Western Sydney Parklands Trust

Electronic Service Delivery

Human Resources

The Trust continues to focus on increasing the information and services available electronically on our website www.westernsydneyparklands.com.au

Employees of the Trust are employees of the Department of Premier and Cabinet in accordance with the Public Sector Employment Legislation Amendment Act 2006.

Equal Employment Opportunity

Western Sydney Parklands Trust Level 4, 10 Valentine Avenue Parramatta NSW 2150 Tel

02 9895 7500

Fax

02 9895 7580

Email

enquiries@wspt.nsw.gov.au

Online www.westernsydneyparklands.com.au Office hours 9.00am to 5.00pm, Monday to Friday

Credit card certification Credit card use within the Trust has been in accordance with the Premier’s Memoranda and Treasurer’s Directions.

The Trust strives to ensure that its work place is free of discrimination and harassment, and that the Trust’s practices and behaviour do not disadvantage people because they belong to a particular group. Staff members are encouraged to take advantage of flexible working arrangements and leave options to help them maintain an effective work life balance.

Industrial Relations There were no industrial relations disputes during the year. Salary award increases for the Trust in the year were in line with the Crown Employees (Public Sector Salaries 2008) Award.

Government Information (Public Access) Act 2009 (GIPAA) The Trust received no applications under the GIPAA Act. Grants to non-government organisations There were no grants to non-government organisations during 2011-2012.

Disclosure of controlled entities and subsidiaries

The Trust is committed to attracting, developing and retaining a professional workforce and providing a safe, productive and healthy workplace. As at June 2012, the Trust had a total of 13 permanent and one casual staff.

Leave entitlements Value of recreation and long service leave entitlements as at 30 June 2012 was $150,000. Legal change

The Trust has no controlled entities or subsidiaries.

There were no significant judicial decisions in the 2011-2012 year.

Trends in the representation of EEO groups as at 30 June 2012

Total no of employees

% of total employees

Number of men

Number of women

People from racial, ethnic, ethno religious minority groups

People whose first language is not English

13

65%

6

7

5

5

Casual

1

5%

-

1

1

1

Board Members

6

30%

4

2

-

-

20

100%

10.0

10.0

6.0

6.0

100%

-

50%

50%

30%

30%

Employment Basis Permanent full-time

Total Percentage

42


Multicultural Policies and Services Program (formerly EAPS) Western Sydney Parklands Trust remains sensitive to the cultural, racial, religious and linguistic traditions of communities in NSW and the Trust ensures that all people are considered and have full access to appropriate information and services. The Trust continues to develop and implement initiatives to cater to people from culturally and linguistically diverse backgrounds.

Payment of Accounts Current Less than 30 days (within due date)

Between 31 & 60 days (over due)

Between 61 & 90 days(over due)

More than 90 days (over due)

Quarter ended

$’000

$’000

$’000

$’000

At 30 September 2011

248

-

10

-

At 31 December 2011

72

23

2

-

At 31 March 2012

15

-

-

-

At 30 June 2012

122

-

-

-

Workplace Health and Safety (WHS) No significant injuries were recorded during the year and no formal return to work program was required to be developed. An Employee Assistance Program is in place to provide staff and members of their family with access to a no cost, confidential counselling service on a 24 hour day / seven days a week basis. Influenza vaccinations were made available to all staff expressing an interest in receiving the vaccination. The vaccination program was viewed as a preventative strategy to protect employee heath and minimise disruptions to the workplace through absenteeism. The Trust’s Workplace Health and Safety Committee met regularly during the year and addressed a range of matters. There has been no prosecution for breach of Work Health and Safety Act 2011.

98 per cent of the trade creditors were paid on time within each quarter. No suppliers requested or were reasonably entitled to penalty interest for the year. Privacy and Personal Information Protection During 2011-2012 the Trust received no applications under the Privacy and Personal Information Protection Act 1998. The Trust continues to monitor compliance with this Act. Publications

Reviews and Appeals There were no reviews or appeals conducted by either the NSW Ombudsman or the Administrative Decisions Tribunal. Insurance Western Sydney Parklands Trust participates in the NSW Treasury Managed Fund, a self-insurance scheme which provides workers’ compensation, motor vehicles, property, public liability and miscellaneous cover.

Throughout the year, Western Sydney Parklands Trust produced and distributed a range of publications, newsletters and brochures. Key publications are available on our website www. westernsydneyparklands.com.au

Overseas visits by employees There were no overseas visits by employees during the reporting period.

43


44

Appendices

Internal Audit and Risk Management Attestation for the 20011-2012 Financial Year for The Western Sydney Parklands Trust

Internal Audit and Risk Management Statement

I, Suellen Fitzgerald Director of the Western Sydney Parklands Trust, am of the opinion that the Western Sydney Parklands Trust has internal audit and risk management processes in place that are, excluding the exception described below, compliant with the core requirements set out in Treasury Circular NSW TC 09/08 Internal Audit and Risk Management Policy.

The Trust is of the opinion that the Trust has internal audit and risk management processes in place that, in all material respects, comply with the core requirements set out in Treasury Circular NSW TC 09/08 Internal Audit and Risk Management Policy.

I, Suellen Fitzgerald, am of the opinion that the internal audit and risk management processes for the Western Sydney Parklands Trust depart from the following core requirement set out in Treasury Circular NSW TC 09/08 and that (a) the circumstances giving rise to this departure have been determined by the Portfolio Minister (Attachment A) and (b) the Western Sydney Parklands Trust has implemented the following practicable alternative measures that will achieve a level of assurance equivalent to the requirement: Ministerially Determined Departure

Reason for Departure and Description of Practicable Alternative Measures Implemented

Core Requirement: An Independent Chair of the Audit and Risk Committee and three Committee members

The reason for the departure is that the Trust has yet to receive notification from the NSW Government of the appointment of a suitably qualified Board member to chair the Audit and Risk Committee. The Trust has advertised and interviewed potential candidates for the role and is seeking a conclusion to the matter. In the interim the Trust has continued to operate an Audit and Risk Committee and its processes to understand, manage and satisfactorily control risk exposures, including full external and internal audit functions.

The Members of the Audit and Risk Committee are: •

rendan Crotty independent member B (appointed 1 January 2008, re-appointed 1 January 2011; and

•

Chris Lawlor, independent member (appointed 1 January 2011).

These processes, including the practicable alternative measures being implemented, provide a level of assurance that enables the senior management of the Western Sydney Parklands Trust to understand, manage and satisfactorily control risk exposures. Yours faithfully

Suellen Fitzgerald Parklands Director

44

The Trust is of the opinion that the Audit Risk and Compliance Committee is constituted and operates in accordance with the independence and governance requirements of Treasury Circular NSW TC 09-08.

Shared Services The Trust’s corporate services including finance, human resources and information technology are outsourced to Service First. Training Staff attended a variety of training courses, seminars and conferences during the year, reflecting the occupational and functional diversity within the organisation.

Acknowledgements Editor: KJA Pty Ltd Design Production: Tonic Connective Printing: Colours Digital Availability: westernparklands.com.au


45


Contact Us General Enquiries Western Sydney Parklands Trust Level 4, 10 Valentine Avenue Parramatta 2150 PO Box 404 Parramatta 2124 Phone: 9895 7500 Fax: 9895 7580 Email: enquiries@wspt.nsw.gov.au

www.westernsydneyparklands.com.au

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