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ANNUAL REPORT2013 - 2014
Contents
CHAIRMAN’S REPORT 05
DECLARATION & ATTESTATION 07
OUR ORGANISATION 08 Organisational Structure 10
SPORTS VENUES 11
MEMBERSHIP & BUSINESS DEVELOPMENT 15
OBJECTIVES & PERFORMANCE AGAINST OBJECTIVES 17
CORPORATE SERVICES 18 5 Year Performance 18
Organisational Development 20
Information Technology 22
LEGISLATIVE & GOVERNANCE POLICY COMPLIANCE 23
FINANCIAL OVERVIEW AND DISCLOSURE 25
DISCLOSURE INDEX 26
PROTECTED DISCLOSURES 28
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 5
SSCT CHAIRMAN’S ANNUAL REPORTSince the mid 1990’s the State Government has invested in
excess of $250 million of capital funds into the facilities of
the SSCT Trust to deliver on the Governments objectives of:
• Major Events – building and maintaining Victoria’s capacity to attract and retain major events
• Representative Teams – supporting state level and professional sporting teams competing in national and international competitions
• Peak of the Pathway / Elite Athletes – supporting athletic development via the provision of quality high performance and pathway facilities
• Support to the Sports System – providing access to appropriate facilities that support the management and administration of sport.
• Participation – attracting a broad user base to support financial sustainability
In order to deliver on the above objectives, the Trust managed
a capital budget of $6.6 million across the Trusts facilities of
Melbourne Sports and Aquatic Centre (MSAC), State Netball
Hockey Centre (SNHC), Lakeside Stadium and MSAC Institute
of Sport (MiT). These major works were managed with a
minimum downtime for business and were managed within
the budget allocated.
The asset management operations and maintenance of
the Trust’s suite of world class facilities is the cornerstone
of the Trusts ongoing ability in delivering the Governments
key objectives.
In relation to the key objectives the following was achieved
in the 2013-2014 financial year:
1. MAJOR EVENTS The SSCT’s suite of facilities hosted 369 sporting events
over the 2013-2014 financial year, including 156 aquatic events, 72
stadium events and 141 athletic and soccer events.
Some of the major events that the Trust hosted during
the year included:
FISAF (Federation of International Sports Aerobics and Fitness)
• AFBJJ (Australian Federation of Brazilian Jujitsu)
• Australian Athletics Championships
• Australian Little Athletics Championships
• Athletics Australia IAAF Melbourne World Challenge
• Diving Australia World Cup and Commonwealth Games Trials
• Diving Australia Age Championships
2. REPRESENTATIVE TEAMSNotable athletes who utilised the venue for training during
the year include:
Melbourne VIC Centre
Mack Horton 20th Commonwealth Games Glasgow 400m – 1500m
Kotuku Ngawati – 20th Commonwealth Games Glasgow 200m
Squash
Sarah Cardwell 20th Commonwealth Games Glasgow Team
Netball
2014 Australian Squad: Karen Bailey, Tegan Caldwell,
Bianca Chatfield, Madi Robinson, Liz Watson
2014 Commonwealth Games Team: Tegan Caldwell,
Bianca Chatfield, Madi Robinson
Athletics
Alex Rowe 800m 2013 IAAF World Championships – Moscow, Russia
2014 Commonwealth Games – Glasgow, Scotland
Josh Ross
200m & 4x100m 2013 IAAF World Championships – Moscow, Russia
Kelly Hetherington
800m 2013 IAAF World Championships – Moscow, Russia
Damien Birkinhead Shot Put 2014 Commonwealth Games – Glasgow, Scotland
Brooke Stratton Long Jump 2014 Commonwealth Games – Glasgow, Scotland
Jeff Riseley 800m & 1500m 2014 Commonwealth Games – Glasgow, Scotland
Luke Cann Javelin Throw 2014 Commonwealth Games – Glasgow, Scotland
Chairman’s Report
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 76
aSIGNATURE
ACCOUNTABLE OFFICER’S DECLARATIONIn accordance with Financial Management Act 1994,
I am pleased to present the State Sport Centres Trust
Annual Report for the year ending 30 June 2014.
Mr. Simon Weatherill CEO
28 August 2014
ATTESTATION ON COMPLIANCE WITH THE AUSTRALIAN/NEW ZEALAND RISK MANAGEMENT STANDARDI, Simon Weatherill certify that the State Sport Centres Trust
has risk management processes in place consistent with the
Australian/New Zealand Risk Management Standard.
An internal control system is in place that enables the executive
to understand, manage and satisfactorily control risk exposures.
The Audit and Risk committee verifies this assurance and
that the risk profile of the State Sport Centres Trust has been
critically reviewed within the last 12 months.
Mr. Simon Weatherill CEO
28 August 2014
Declaration & Attestation
ATTESTATION FOR COMPLIANCE WITH THE MINISTERIAL STANDING DIRECTION 4.5.5.1 - INSURANCEI, Simon Weatherill certify that the State Sport Centres Trust
has complied with Ministerial Direction 4.5.5.1 – Insurance.
Mr. Simon Weatherill CEO
28 August 2014
Richard Colman 400m, 800m & 1500m (T53) 2013 IPC Athletics World
Championships - Lyon, France
2014 Commonwealth Games – Glasgow, Scotland
Kelly Cartwright 100m & Long Jump (F42) 2013 IPC Athletics World
Championships – Lyon, France
3. SUPPORTING THE SPORTING SYSTEMAs outlined in the Trust Business Plan 2013-2014, SSCT provides
direct and indirect support to the sporting associations through
rental rates, revenue sharing and in-kind support. The quantum
of support for the 2013-2014 financial year was approximately
$2 million in cash, rent and in-kind support for sport tenancies
and broad based community sport. In addition to this, SSCT
provided training at no cost for 10 Victorian Institute of Sport
(VIS) approved sports.
The Melbourne Sports Hub consisting of MSAC, SNHC,
Lakeside Stadium and MiT has provided excellent support
to our 32 tenants and stakeholders during the year.
4. OFFERING PEAK PATHWAYS FOR DEVELOPMENT
The Melbourne Sports Hub is home to the VIS sports of
Badminton, Diving, Hockey, Netball, Squash, Swimming,
Synchronised Swimming, Table Tennis, Water Polo and
Basketball. In addition to this it houses 12 state sports
associations, 5 national associations and 10 VIS sports
tenants. This unique structure allows the centre management
team to work with the associations and the clubs to assist
in the athlete’s development.
5. PARTICIPATION TO SUPPORT FINANCIAL SUSTAINABILITY
Visitations to the Sports Hub continue to grow with 2.245 million
patrons visiting MSAC, 529,737 patrons at SNHC and 104,974
patrons at Lakeside Stadium. Lakeside Stadium been particularly
impressive with 141 sporting events for the year, with over 100
athletic events at the stadium. This has only been made possible
by housing the major athletic bodies together at Athletics House.
Total visitation for the year was 2.879 million patron making the
Melbourne Sports Hub one of the busiest multi-purpose venues
in the country. In addition to the large number of events and
visitations to the Trusts sporting facilities, MSAC Swim School
attracted 12,889 visits and children’s programs 54,988 visits.
There are currently 12,130 Melbourne Sports Hub members that
exercise regularly at MSAC.
The SSCT finances continue to be well managed with
the operating budget being managed $617,831 better than
budget. The development of the 2014-2017 Strategic Plan
during the year will cement Melbourne Sports Hub as a hub
of world class facilities that brings real value to our growing
sporting and local community.
During the year, the 8th International School of Sports
Management was held. This course has seen over 150 delegates
from all around the world attend and listen to the specialist
expertise developed by the Trust on establishing and managing
Greenfields sports sites. Due to the demand by the industry
for advice and information from key SSCT personnel, MiT is
currently expanding its consultancy service to the industry.
Finally, I wish to acknowledge the skill and teamwork of the
Executive Management Group, Chief Executive Officer, Simon
Weatherill, my fellow Trust members, Brett Moore, Andrew
Fried, Nicole Livingstone, Danni Roche, Leigh Russell and Gaye
Hamilton, The former Minister for Sport Mr Hugh Delahunty and
the current Minister for Sport Mr Damian Drum for his support,
assistance and guidance to enable the Trust to deliver first class
sporting facilities to the Victorian public.
Mr. Michael Taylor AO Chairperson
Chairman’s Report
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 98
RANGE OF SERVICES PROVIDED The Act outlines the range of services to be provided as
sporting, educational, recreational, social and entertainment.
THE STATE SPORT CENTRES TRUST VISION, PURPOSE AND VALUES ARE: Our Vision:
To develop an innovative sports hub for the Victorian
and Australian community that provides a diverse range
of programs and events for international, national and state
sporting groups as well as serving the Melbourne sporting
and recreational community.
Our Purpose:
All of our programs, services and staff will embody
a ‘Champions in Life’ philosophy which will offer our
participants the opportunity to:
• Develop skills for life
• Be the best they can be
• Develop healthy habits
• Develop social networks
Our ‘raison d’être’ is developing people through sport,
recreation and educational activities.
Our Values:
• Integrity: Behaving in a clear and consistent manner to Do the Right Thing.
• Teamwork: Share. Understand. Succeed. Grow. Together.
• Passion: Approach everything with Energy, Commitment and Enthusiasm to Make a Difference.
Our Commitment:
Our staff commitment is to be able to assist anyone at anytime
and help them with their development needs.
ESTABLISHMENT The Melbourne Sports and Aquatic Centre is a statutory
authority established pursuant to the Melbourne Sports
and Aquatic Centre Act 1994. The Centre opened for
business on 27 July 1997.
On 22 December 1999 the Melbourne Sports and Aquatic Centre
Act 1994 was amended by the Melbourne Sports and Aquatic
Centre (Amendment) Act 1999. As outlined in section 1 of the
Act, the main purpose of this Amendment was to:
a) Rename the Melbourne Sports and Aquatic Centre Trust
as the State Sport Centres Trust; and
b) Extend the powers of the Trust to enable it to manage the
State Netball Hockey Centre and other sports, recreation
and entertainment facilities and services.
As outlined in sections 14 and 15 of the Amendment, the
Melbourne Sports and Aquatic Centre and the State Netball
Hockey Centre are to be managed as independent Strategic
Business Units, each producing a Business Plan and having
separate and individual Financial Operation and Accounts.
It is the Government and Trusts policy that the Centres will
not receive any cross subsidies for operation.
The State Netball Hockey Centre opened for business on 29
January 2001 and was officially opened by the Premier of
Victoria, the Honourable Steve Bracks on 16 March 2001.
On 10 October 2004, the State Sport Centres Act was amended
by the State Sport Centres (Amendment) Act 2004. As outlined in
section 1 of the Act, the main purpose of this amendment was to
“include additional land in the land at the Melbourne Sports and
Aquatic Centre and to provide additional management powers in
relation to the Melbourne Sports and Aquatic Centre land”.
Under the Act the relevant Minister is the Honourable Damian
Drum MP, Minister for Sport and Recreation.
On 31 August 2011, State Sport Centres Trust was appointed as
the Committee of Management of the Lakeside Oval Reserve
under Section 14 (2) of the Crown Land (Reserves) Act 1978.
FUNCTIONS The key functions of the State Sport Centres Trust
are as follows:
a) The management, operation and maintenance of the
Melbourne Sports and Aquatic Centre and the State
Netball Hockey Centre;
b) The care, improvement, use and promotion of the
Melbourne Sports and Aquatic Centre and the State
Netball Hockey Centre;
c) The efficient financial management of the Melbourne Sports
and Aquatic Centre and the State Netball Hockey Centre;
d) The care, protection and management of the State Netball
Hockey Centre land, and Melbourne Sports and Aquatic
Centre land, including maintaining the Melbourne Sports
and Aquatic Centre land and the facilities on the land to
a standard that complements Albert Park;
e) Subject to the Act, the planning, development, management,
promotion, operation and use of other sports, recreation and
entertainment facilities and services in Victoria;
f) The development, management, promotion, operation
and use of facilities and services for the parking of vehicles
and other necessary services to be used in conjunction
with any of the facilities or services managed or operated
by the Trust; and
g) To accept appointment and act as a committee
of management of Crown lands.
Our Organisation
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 11 0
Organisational Structure
MINISTER FOR SPORT AND RECREATION
GENERAL MANAGER MEMBERSHIP MARKETING & COMMUNICATION
VIBEKE STISEN
GENERAL MANAGER SPORTS VENUES
TIM KALKMAN
GENERAL MANAGER CORPORATE SERVICES
DARREN RATTLE
STATE SPORT CENTRES TRUST
Environmental Initiatives
Health & WellnessStadium Operations MSAC / SNHC / LS
Finance
Major Capital Projects
Business DevelopmentAquatics, Aquatic Programs
& Swim SchoolOrganisational Development & MSAC Institute of Training
Sales & Marketing Sponsorship / Licensing
Bookings, Functions / Events IT & Telecom
MSAC Catering OperationsRisk & Contract Management Statutory Compliance
Membership Services / RetailFacilities Maintenance Admin, Contracts & Supply Rights
SNHC & LS Catering Operations
AUDIT AND RISK COMMITTEE
CHIEF EXECUTIVE OFFICER SIMON WEATHERILL
CHIEF OPERATING OFFICER PETER MURPHY
Sports Venues
Total visitations across the three venues of SSCT grew to just
under two million nine hundred thousand during the 2013/14
financial year. See below for the venue breakdown:
• 2,244,885 – MSAC
• 529,737 – SNHC
• 104,974 – LS
Total – 2,879,596
MELBOURNE SPORTS AND AQUATIC CENTRE (MSAC)Aquatics
The aquatic casual market continued to decline, finishing the
year 16% down on budget and 7% down on the previous year,
with the increase in aquatic events, periodic repair work and the
lack of available space being the main reason for this decline.
The aquatic event market performed well, exceeding budget
by 33%, which was a growth of 13% from the previous year’s
actuals. Continued strong utilisation of the facility by schools
and Victorian swimming clubs were the key drivers for this
growth. The MSAC aquatic area also hosted several key
National events which are listed below.
• Diving Australia – Australia World Cup Commonwealth Games Trials
• Diving Australia – Age Championships
• U14 Girls National Water Polo
• U16 Girls National Water Polo
• Swimming Victoria Age Championships
Swim School
The Swim School had a successful year, although falling 8%
short of the set budget, yet managed to finish 9% up on the
previous year due to the maximisation of space and improved
class structures.
Holding strong with enrolment numbers, in a market of growing
competitors, the Swim School delivered aquatic education to
12,889 people in the following groups:
• 2,235 Water Babies
• 6,298 Child Learn to Swim students
• 583 Squad members
• 243 Adult Learn to Swim students
• 470 Private Lessons for students
• 125 People with Disabilities
• 2,935 Schools Learn to Swim students
The final quarter marked a progressive move for the
Swim School, offering direct debit for all swim school lessons.
The biggest impact of direct debit will be evident next year,
stream lining the progression pathways and enrolment
processes. These key movements will keep the Swim School
as an industry leader for aquatic education in Australia.
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 31 2
Children’s Programs
Children’s Programs tracked true to budget for the
2013/14 financial year, finishing 22% or $178K better
than the previous year.
The Children’s programs team delivered a wide range
of Programs and activities for schools and families to engage
children in sport and recreation, promoting the benefits of
a healthy and active lifestyle, during the past year:
• 5,608 children enjoyed a birthday party experience
• 11,462 students participated in our SportsOut and WipeOut schools programs
• 2,441 children attended the PlanetSport school holiday program
• 35,477 enjoyed the fun and excitement of our SplashOut program
• 6,500 FlowRider participants – roughly half were first time users
Stadiums
Overall the Stadium areas had a strong year, exceeding budget by
$176K, this was an improvement of 7% on the previous year’s total.
The stadiums casual market performed well finishing the year
8% ahead of budget and 5% up on the previous year. Improved
usage within Basketball, Badminton and Table Tennis halls were
the main drivers.
Stadium bookings achieved good results finishing the year 14%
in front of budget. This was largely driven by the increased
usage within the Table Tennis and Squash halls.
MSAC Stadium Events finished the year 16% or $94K in
front of budget. This included strong usage from the State
Sporting Associations, as well as several notable events
which are listed below.
• FISAF- Federation of International Sports Aerobics and Fitness
• AFBJJ– Australian Federation of Brazilian Jiu Jitsu – Pan Pacs
• Australian Schools Volleyball Championships
• Australian Corporate Games
• World Cup Cheer and Dance
• RMIT Exams
STATE NETBALL AND HOCKEY CENTRE (SNHC)The SNHC casual market finished the year 7% in front
of budget, increased participation in Hockey and Netball
were the contributing factors.
The events and bookings market performed strongly,
closing the year 39% ahead of budget. This was largely
due to the Harlem Globetrotters events across October
and November. SNHC also hosted several other notable
events which are listed below.
• ANZ Championships Official Pre-Season Summer Shootout
• NBL Matches - Melbourne Tigers
• Victorian Gymnastics Championships
• Highland Dancing Championships
• Hockey Victoria Grand Final Weekend
• Australian School Volleyball Championships
LAKESIDE STADIUM (LS)Lakeside Stadium performed well across all areas.
Casual usage and bookings finished 39% above budget
largely due to casual school hire during the year. Tenancies
were 27% above budget, mainly due to expense recoveries
that we had not budgeted for. Events finished the year 49% or
$166K above budget, this was a further growth of 39% on
last year’s actuals. A number of notable events have been
listed below.
• Australian Little Athletics Championships
• Athletics Australia National Championships (Commonwealth Games Trials)
• Athletics Australia IAAF Melbourne World Challenge
• Lacrosse Victoria Finals
• Little Athletics Victoria Relay Championships
• Melbourne Victory Youth League games & FFV W-League games (broadcast)
• SMFC home and away season games
FACILITIESThe Facilities and Projects business units delivers both Facility
Management and Capital upgrade Improvements to MSAC,
SNHC and LS.
In partnership, SSCT contracts product suppliers and trades
to manage all aspects of the buildings performance including
the following
• Proactive and Reactive Maintenance
• Minor works
• Project Management / Capital Works
• Capital Planning
• Asset Management
• Environmental Management
• Occupational Health and Safety
• Risk Management
Asset Management
Continued audit and assessment of the building condition
and the completion of the reported reactive maintenance
items, were a main focus for the team. Improvement of
underperforming plant equipment and maximisation of
the asset life while minimising down time was the second.
Compliance with BCA, Health Department, RLSSA and other
regulatory bodies has been achieved as part of the regular
cyclical and reactive maintenance of the Venues. Continued
investment into the ongoing venue maintenance ensures that
the venues meet the expectation of the user and operator.
Sports Venues
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 51 4
A total of 94 Asset Lifecycle and 113 Capital Works projects were
delivered during the year.
Environment Management
The Trust in keeping with its published strategic objectives has
maintained its drive to be a leader in environment management
practices through continuous improvement.
At the completion of 2013/14 the Trust are 9 months into the
measurement and verification stage of the Energy Performance
Contract. We are expecting a reduction of 4,642 tons of carbon,
Energy and water savings to the value of $549,938 at the
2011 bench mark. This will be achieved through the following
improvements completed earlier in the 2013/14 financial year.
• Lighting upgrades Including new LED technology and redesign of lighting system controls;
• Heating, ventilation and air conditioning improvements;
• Building management system (BMS) upgrades including Web based unified BMS to overcome BMS communication issues;
• Water management through recycling of pool backwash water;
• Trigeneration plant providing significant reduction in greenhouse gases; and
• Solar photovoltaic cells.
Risk Management
SSCT has a Risk Management Framework, developed within
a position guided by VMIA, OH&S legislation and International
standards. This framework assists the Trust to develop
organisational wide capabilities in risk management, which
ensures consistent, efficient and effective assessment and
management of risk in the achievement of SSCT’s strategic
and business objectives. The following processes have been
implemented in align with the new framework:
• Creation of a FT Risk Manager role to oversee and work with all areas of the business. Helping to manage operational and financial risk;
• Assessment of strategic risks during annual business planning that have been supplemented to the Enterprise Risk Management Framework and management strategies recorded and monitored. This task is vital within the organisation’s increasingly complicated and expanded business activities; and
• Utilisation of risk management software (RiskSense) to record and report risks, hazards and incidents; allowing the organisation to report on the relationships between these factors and apply management strategies that can be monitored and audited to reduce the impact and rate of occurrence. This allows the organisation to manage data effectively to ensure consistency with benchmarks.
ITEM / WORKS TOTAL COMMITTED
Business Operations $80,824
OH&S $670,072
Cost Saving / Revenue Generating $127,169
Disability Action Plan $43,900
Preventative Maintenance / Life Cycle $3,803,769
Life Cycle / Revenue $58,491
Lakeside Stadium $618,084
Escalation Factor $302,450
Total $5,704,759
Capital and asset upgrade Projects
With investment to ensure sustainability of the physical asset
and meeting user requirements, during 2013/14 the amount of
$5.7 Million of Capital projects and asset upgrade works were
committed, this included:
Membership & Business Development
MEMBERSHIPMembership products and services are key components of
Melbourne Sports Hub’s offering and 2013/14 was a year of great
improvement in both our products and services. A large upgrade
to the area included a $75K renovation of the change rooms
and a further $300K upgrade to our gym strength and cardio
equipment, giving our 3,150+ gym members access to state-of-
the-art facilities. The new equipment allowed our gym members
to participate in the global Let’s Move Challenge and saw MSAC
and its members finish 6th in Australia.
Overall, the business has just over 12,000 members – 3,157
Platinum members who enjoy access to our gym, health and
wellness facilities, and 8,973 Flexi members with access to
multi passes, car parking and exclusive offers and discounts.
Melbourne Sports Hub also continues to work closely with
local community groups to offer local residents of all ages
and means access to our facilities, and the opportunity to
become Champions in Life through a healthy lifestyle.
During the year, a total of 2,379 fitness classes were held with
close to 34,000 visitations, while the wellness zone saw close
to 23,000 visitations in its 1,732 classes. The success of the
classes can be accredited to the high level of competency and
engagement by our instructors, and the quality of our facilities.
Financially, the area performed well. The health and wellness
area (including the gym) achieved the highest growth of direct
debit memberships in three years, exceeded new membership
sign-up targets by more than 100 memberships and, as a
result, exceeded its budget target by more than $70,000. Flexi
memberships performed below expectations and as a result,
this membership category is under review to ensure its
success in 2014/15.
TeamMSACMelbourne Sports Hub recognises the importance of the
social aspect of sport participation and is proud to continue
the teamMSAC program. The program is free for all members
to join and assists in allowing members to fully reach their
individual health and fitness goals. teamMSAC provides a wide
range of training session, information nights and opportunities
to participate in major events. In 2013/14, teamMSAC had 8,343
members and of those some 120 competed in major sporting
events with several podium finishes. This is a participation
increase of 18% on the previous year.
These tremendous results from our membership community
continue to demonstrate our commitment to building a vibrant
community of people centred on our Developing Champions
in Life values.
VISITOR SERVICESMelbourne Sports Hub welcomes more than 2.8 million visitors
each year from casual users to members and regular
participants in various sports. The business places great
importance on servicing those visitors with a high level
of professionalism and integrity.
In 2014/15 the business will undertake a major project to further
strengthen the customer service levels across the business.
The work is linked to Melbourne Sports Hub’s Customer Service
Promise, introduced in late 2013/14.
Sports Venues
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 71 6
MARKETING AND COMMUNICATIONSThe marketing & communications team provides support
for Melbourne Sports Hub and all its business units. The key
focus for the business unit in 2013/14 was on the strengthening
of the Melbourne Sports Hub brand across all assets. The work
undertaken included the update of the Hub brand to ensure it
remains contemporary and works across new media. The update
has included a wide range of collateral, hard and soft copy,
and is supported by a new editorial style guide.
In addition to this, a social media strategy was developed
and implemented to ensure our online presence is aligned
to our customer service promise. Work commenced on a new
online platform, set to launch in early 2014/15. It will include a
number of new features and position the business as a leader
in its space, with a much more content rich presence and the
ability to deliver sharable content.
General marketing and communications work included
a wide range of campaigns, collateral and communications
pieces aimed at driving sales and increasing retention rates.
RETAILMelbourne Sports Hub has two retail outlets at MSAC as well
as retail sales through our customer service desks. The MSAC
owned Speedo store continues to provide our aquatic patrons
with a strong range of swim wear from basic to race suits.
During the last half of the 2013/14 financial year,
the sale of merchandise through the customer service
desk was restructured and expanded, and as a result,
sales significantly increased.
The in-house managed MSAC shop closed in March 2014
after a decision was made to instead lease the retail space
out to an external retailer. A new retail tenant has been
confirmed, and the well-known, high quality brand will open
its flagship store at MSAC in September 2014. It will provide
our visitors with a range of sporting wear relevant to most
of the sports played at the facility.
SPONSORSHIP & CORPORATE PARTNERSHIPS The Business Development team maintained
sponsorship relationships during the year and
maximised our opportunities with current partners
for promotion of the Melbourne Sports Hub.
We continued to receive great support from Peters,
Coca Cola and Rip Curl for the FlowRider. They assisted
us not only with sponsorship but great giveaways and
incentives for our community.
Through our partnership with the Melbourne Bike Share
station, MSAC also continued to offer our patrons and the
local community a bike share station. We provided bicycles
for over 3,500 riders throughout the year to commute
around Melbourne or enjoy recreational cycling.
Objectives & Performance Against Objectives
Through the Vision and Mission of the State Sport Centres Trust, the following key objectives were identified in the
2013/14 Business Plan.
BUSINESS OBJECTIVE STATUS / RESULTS VARIATION / EXPLANATION
Increase catering profitability from 15% to 20% AchievedIn-House model at MSAC realized
20% return to SSCT
Achieve staff productivity savings by moving
casual staff to permanent full and part timeAchieved Net salaries under budget by $93K
Obtain government’s approval of the EBA Achieved EBA Approved 12 July 2013
Increase gymnasium membership from 3,300
to 3,534 with a 60% retention rate
3,153 members
55% retention
Change of internal policy to tenant licence
agreement resulted in lower uptake of
membership
Reduce operating deficit at Lakeside Stadium
from $1.1M to $954KAchieved Lakeside Stadium deficit reduced to $557K
Generate an operating surplus at MSAC
Institute of TrainingAchieved MIT operating Surplus of $168K
MSAC Swim School to deliver education to
10,800 students across 7 major program areasAchieved
12,889 students educated across
all areas of Swim School program
MSAC Children’s Programs to deliver programs
and services to over 54,000 childrenAchieved
54,988 children participated in
programs during year
Membership & Business Development
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 91 8
2014 2013 2012 2011 2010
Income 22,370 21,923 21,707 19,458 17,945
Expenses 22,444 20,942 19,237 17,213 16,703
Net Result -74 981 2,470 2,245 1,242
SSCT Financial History - Five Years (Cash Only)
18,000
22,000
16,000
20,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
-2,000
2014 2013 2012 2011 2010
INCOME EXPENSES NET RESULT
Corporate Services5 YEAR PERFORMANCE
SSCT Financial History - Five Years (Accrual)
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
-5,000
-10,000
-15,000
2014 2013 2012 2011 2010
$’000
2014 2013 2012 2011 2010
Income 22,370 21,923 21,707 19,458 17,945
Expenses 31,368 28,461 29,149 25,757 24,813
Net Result -8,998 -6,538 -7,442 -6,299 -6,868
INCOME EXPENSES NET RESULT
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 12 0
ORGANISATIONAL DEVELOPMENTSSCT continues to expand its human resource
management framework, strategies and practices
in line with industry standards and best practice.
To support this, the Organisational Development business
unit was formed in March 2014; comprising the key branches
of Workforce Planning and Strategy, Recruitment, Employee
Relations, Safety Management, Employee Welfare, Learning
and Development, Policy, Compliance, Payroll and
Organisational Culture.
Key achievements
• Maintaining a workforce shift from 80% casual staff to 73% permanent across Trust; a commitment made to meet financial targets in EBA 2012 negotiations;
• The implementation of an e-learning tool; scoped for compliance, induction and personal development;
• Delivery of 2 successful International Facility Management Programs;
• The development of a Front Line Management qualification for emerging leaders;
• Implementation of seasonal recruitment contracts;
• Development and implementation of a structured career pathway training program in each team;
• The continued journey in ‘Developing Champions in Life’ culture, living and promoting the values of Integrity, Teamwork and Passion; and
• Disability Action Plan for 2014-2017 developed and implemented; focus on achieving Accessible Communication symbol in 2014.
Risk, Safety and Compliance
SSCT staff demonstrates unwavering commitment to
safety excellence; including compliance with the legislation
and standards relating to the provision of health and safety
in public sporting facilities.
Injuries per 1000 visits
Workforce profile
The State Sport Centres Trust is committed to applying
merit and equity principles when appointing staff. The selection
processes ensure that applicants are assessed and evaluated
fairly and equitably on the basis of the key selection criteria
and other accountabilities without discrimination.
The total number of personnel employed by the State Sport
Centres Trust as at 30 June 2014 was 450.
Staff Profile by Position
Qualifications of staff who provide activity supervision
incident rate per 100 at msac 2013/2014
2014 MALE FEMALE TOTAL
Executive Officers >100k 4 1 5
Full time 31 24 55
Part time 78 75 153
Casual 74 89 163
Total paid 187 189 376
Total active 217 233 450
Full time equivalent 177
2014 2013
MSAC 0.5 0.5
SNHC 0.1 0.1
LS 0.2 0.4
2014 NO. OF STAFF
2013 NO. OF STAFF
First Aid 206 213
Pool Lifeguard 95 124
Defibrillation 234 199
2013 MALE FEMALE TOTAL
Executive Officers >100k 4 1 5
Full time 29 28 57
Part time 63 56 119
Casual 80 100 180
Total paid 176 185 361
Total active 217 222 439
Full time equivalent 167
Staff representatives from each work area form a Risk
Management Committee. The Committee meets on a regular
basis and implements reports and monitors issues of health
and safety for both staff and patrons.
No time was lost to industrial disputes in 2013/ 2014 (2013: 0)
36 days were lost due to work related injuries (2013: 66).
300
0.60
0.70
0.80
250
0.50200
0.40150
0.30100
0.20
500.10
0 0.00
JUL - 13
AUG - 13
SEP - 13
OCT - 13
NOV - 13
DEC - 13
JAN - 14
FEB - 14
MAR - 14
APR - 14
MAY - 14
JUN - 14
OFFICIAL 1000S OFFICIAL RATE/1000
Corporate Services
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 32 2
Corporate Services
INFORMATION TECHNOLOGYThe I.T. Services Manager and Jasco have maintained the
IT operating systems with server and systems availability
over 99.95%.
Major projects, upgrades and achievements within
the 2013-2014 financial year were:
• Domain Flattening - consolidate multiple network domains into a single entity, removing duplication of systems and licensing across sites;
• Migration of all servers, and primary systems and databases into the single domain;
• Email migration to Microsoft Exchange online (hosted cloud);
• Updated licensing and implementation of the latest Microsoft SQL Server database hosting platform;
• Trust-wide installation of Office 365 Microsoft Office Professional 2013 suite;
• Updated all licensing to ensure compliance for all Microsoft operating systems and software;
• Updated and centralised backup solution;
• Tender completed for provision of Telephone and Data Services, resulting in Telstra being contracted as the new supplier to SSCT;
• SSCT Internal Audit completed as a Review of Information Technology;
• Employment of 1 additional internal I.T. staff resource;
• Integrated EFTPOS for all customer service points; and
• Member Access Control via the leisure centre management system.
Other major projects were planned in the 2013-14 financial year,
and these projects have commenced and continue on into the
2014-15 financial year:
• Implementation of Telstra Data and Telephone services, including a 1GB network connection from MSAC to SNHC;
• Change of landline phone system to a VOIP system servicing all SSCT sites - Microsoft Lync Enterprise Voice;
• New website and member portal;
• Court Bookings via website;
• Member Access Turnstile lifecycle replacement for SNHC and MSAC; and
• Trust-wide Wireless Networking planning and procurement.
Legislative & Government Policy Compliance
FREEDOM OF INFORMATION The Freedom of Information Act 1982 allows for the public
a right of access to documents held by the Trust. For the
12 months to 30 June 2014 the Trust received no requests
for information pursuant to the Freedom of Information
Act 1982. (2013: 0).
Making a Request
Access to documents may be obtained through written
requests to the Chief Executive Officer - State Sport Centres
Trust, as detailed in s17 of the Freedom of Information Act 1982.
In summary, the requirements for making a request are:
• It should be in writing;
• It should identify as clearly as possible which document is being requested; and
• It should be accompanied by the appropriate application fee (the fee may be waived in certain circumstances).
Requests for documents in the possession of SSCT
should be addressed to:
The Chief Executive Officer - State Sport Centres Trust
Melbourne Sports and Aquatic Centre,
Box 1, Aughtie Drive,
Albert Park, 3206
Requests can also be lodged online at www.foi.vic.gov.au
Access to charges may also apply once documents
have been processed and a decision on access is made;
for example photocopying and search retrieval charges.
Further information regarding Freedom of Information
can be found at www.foi.vic.gov.au
Categories of Documents
The Trust maintains records and files incorporating documents
relating to general administrative matters and the operation of
SSCT facilities. All records and files are maintained at the Trust’s
premises at Albert Park and Royal Park.
Compliance with Building Act 1993
Over the past year, nothing in the Building Act 1993 applies
to the carrying out of works authorised by or in accordance
with the State Sport Centres Act or at the request of the
Trust. The Trust has however undertaken to comply with the
specifications of the Building Act 1993 wherever applicable.
National Competition Policy
The Trust applies the principles of competitive neutrality
to all commercial operations in accordance with the Victorian
Government Competitive Neutrality Policy, where it is in
competition with private sector enterprises, but where the
provision of services or facilities by the Trust is deemed to
be in the public benefit, the principles are not applied.
Implementation of the Victorian Industry Participation Policy
In October 2003, the Victorian Parliament passed the Victorian
Industry Participation Policy Act 2003, which requires the
Trust to report on the implementation of the Victorian Industry
Participation Policy (VIPP). The Trust is required to apply VIPP
in all tenders over $3 million. During 2013/2014 the Trust did not
commence or complete a contract to which the VIPP applied.
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 52 4
COMMUNITY INCLUSIVENESSThe State Sport Centres Trust is committed to ensuring
optimal access to and utilisation of the facilities by the Victorian
Community. SSCT continues to focus on growing programs
that embrace the cultural and economic diversity of the State
of Victoria and more specifically, the City of Port Phillip.
Some examples of such programs can be seen in
the following areas;
• Traineeships - The City of Port Phillip has access to wonderful career opportunities at SSCT. An extensive range of Federal and State Government endorsed traineeships are offered across all SSCT Venues and work areas
• Inner South Community Rehabilitation Programs
• Cultural awareness workshops
• Recruitment targeting Indigenous Australians
• Disability awareness workshops
• Training and promotion of the National Relay Service for the hearing imparied
• Adult Swimming Instructions for persons with a disability
• Modified Group exercise classes
• Work experience programs for students with special needs
• Strategic partnerships
CONSULTANCY SERVICES Consultancies costing in excess of $100,000:
2014 2013
Name NA NA
Description NA NA
Project NA NA
Amount $nil $nil
Future Commitment $nil $nil
2014 2013
Number 1 6
Total Amount $1,600 $85,775
ORGANISATION RECEIPT ($)
DTPLI (SRV) 1,500,000
DTPLI (SRV) 6,030,000
Total 7,530,000
ACTIVITY PAYMENT ($)
Improving operational delivery at facilities 2,895,624
Providing community subsidies 180,000
Providing rebates to Sport 777,450
Capital Projects 2013/14 5,704,759#
Total 9,557,833*
*Note – excess expenditure above grant is funded as a part of business operations or from reserves. #Note - unspent portion of capital grant rolled into 2014/15 financial year.
Legislative & Government Policy Compliance
Consultancies costing less than $100,000:
ADDITIONAL INFORMATION AVAILABLE ON REQUEST
Relevant information detailed in Financial Reporting Direction
(FRD) 22E ‘Standard Disclosures in the Report of Operations’
under the Financial Management Act 1994 Section 3 is retained
by the Trust’s Accountable Officer and is available on request,
subject to the Freedom of Information Act 1982.
DISCLOSURE OF GRANTS AND TRANSFER PAYMENTS State Sport Centres Trust – Operational Funding 2013/14
State Sport Centres Trust – Capital Funding 2013/14
Grant – Operations & Capital Funding (Grant)
Grant – Operations & Capital Funding (Disbursement)
FINANCIAL REVIEW OF OPERATIONS AND FINANCIAL CONDITION
Financial Overview & Disclosure
FIVE YEAR HISTORYThe Trust made an operating deficit of $74K, with a net deficit of $8.998M when depreciation is taken into account.
SSCT 2014 $’000
SSCT 2013 $’000
SSCT 2012$’000
SSCT 2011$’000
SSCT 2010$’000
Revenue 22,370 21,923 21,707 19,458 17,945
Operating expenses 22,444 20,942 19,237 17,213 16,703
Depreciation 8,924 7,519 9,912 8,544 8,110
Net result (8,998) (6,538) (7,442) (6,299) (6,868)
Total assets 345,767 348,490 290,998 255,990 254,183
Total liabilities 9,366 8,971 7,810 3,540 2,410
Operating Statement
The State Sport Centres Trust recorded an operating deficit
before depreciation $0.074 million in 2013/14 which included
Operational funding from government of $1.5 million for
MSAC, SNHC and Lakeside Stadium. After taking account of
a depreciation charge of $8.924 million for the year, the SSCT
recorded a deficit of $8.998 million.
Balance Sheet
Major changes to the balance sheet include the following:
• An increase in Cash Deposits from capital grants to be acquitted in 2014/15;
• A large reduction in Inventories following the closure of the MSAC Shop during the year.
Changes in Equity
The State Sport Centres Trust recorded a decrease in
equity of $3.118 million in 2013/14. This position was due
to the following key factors:
• A depreciation charge of $8.924 million offset by government capital funding of $5.880 million;
• An operating deficit of $0.074 million.
Cash Flow
The State Sport Centres Trust recorded an increase
in cash held of $1.666 million in 2013/14. This included
the following key impact:
• Reflective of a cash operating deficit of $0.074 million offset by capital funding received in 2013/14 but to be acquitted in 2014/15.
Prior Year Adjustments
The State Sport Centres Trust was appointed as the Committee
of Management of Lakeside Stadium effective 31st August 2011,
however the land was never transferred from Parks Victoria.
A Ministerial Allocation Statement for Lakeside Stadium Land
was exercised on 8th May 2014 to SSCT for $18.934 million as
contributed capital.
As such the balances sheets for 2012 and 2013 were restated to
reflect the correct contributed capital and land values following
the transfer.
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 72 6
Disclosure Index
The Annual Report of the State Sport Centres Trust is prepared in accordance with all relevant Victorian legislations.
This index has been prepared to facilitate identification of the Trust’s compliance with statutory requirements.
MINISTERIAL DIRECTIONS
MANAGEMENT AND STRUCTURE
FINANCIAL AND OTHER INFORMATION
LEGISLATION REQUIREMENTPAGE
REFERENCE
FRD 22E Manner of establishment and relevant Ministers 8
FRD 22E Objectives, functions, powers and duties 8
FRD 22E Nature and range of services provided 8
LEGISLATION REQUIREMENTPAGE
REFERENCE
FRD 22 Organisation structure 10
LEGISLATION REQUIREMENTPAGE
REFERENCE
FRD 22E Statement of workforce data 20
FRD 22E Summary of the financial results for the year 18
FRD 22E Significant changes in the financial position during the year 25
FRD 22E Major changes or factors affecting performance 25
FRD 22E Subsequent events 44
FRD 22E Application and operation of Freedom of Information Act 23
FRD 22E Compliance with building and maintenance provisions of Building Act 1993 23
FRD 22E Statement on National Competition Policy 23
FRD 22E Application and operation of the Protected Disclosure Act 2001 28
FRD 22E Details of consultancies over $100,000 and under $100,000 24
FRD 22E Statement of availability of other information 24
FRD 22E Occupational health and safety 21
FRD 15B Executive officer disclosures 62, 63
FRD 10 Disclosure index 26
FRD 25B Victorian Industry Participation Policy Disclosures 23
FRD 22E Objectives and Performance Against Objectives 17
LEGISLATION REQUIREMENTPAGE
REFERENCE
FRD 22E Merit and Equity 20
PAEC 87 Disclosure of Grants and Transfer Payments 24
SD4.5.5.1 Ministerial Standing Direction 4.5.5.1 compliance attestation 7
FINANCIAL AND OTHER INFORMATION (CONTINUED)
FINANCIAL STATEMENTS: FINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF THE FMA
LEGISLATION REQUIREMENTPAGE
REFERENCE
SD 4.2(c) Compliance with Australia accounting standards and other authoritative pronouncements 36
SD 4.2(c) Compliance with Ministerial Directions 36
SD 4.2(d) Rounding of amounts 38
SD 4.2(c) Accountable officer declaration 74
SD 4.2(f) Model Financial Report 36
SD 4.(b) Operating Statement 32
SD 4.2(b) Balance Sheet 33
SD 4.2(b) Statement of Changes in Equity 34
SD 4.2(b) Cash Flow Statement 35
LEGISLATION REQUIREMENTPAGE
REFERENCE
FRD 13 Disclosure of parliamentary appropriates 43
FRD 21B Responsible person and executive officer disclosures 62, 63
FRD 23 Superannuation liabilities and disclosures 64
OTHER DISCLOSURES IN NOTES TO THE FINANCIAL STATEMENTS
CONSIDERED ACTS:• Freedom of Information Act 1982 23
• Protected Disclosure Act 2012 28
• Building Act 1993 23
• Victorian Industry participation Policy Act 2003
• Financial Management Act 1994
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 92 8
Protected Disclosures
COMPLIANCE WITH THE PROTECTED DISCLOSURE ACT 2012 (FORMERLY, THE WHISTLEBLOWERS PROTECTION ACT 2001)The Protected Disclosure Act 2012 encourages and assists
people in making disclosures of improper conduct by public
officers and public bodies. The Act provides protection to
people who make disclosures in accordance with the Act and
establishes a system for the matters disclosed to be investigated
and rectifying action to be taken.
The Trust does not tolerate improper conduct by employees,
nor the taking of reprisals against those who come forward
to disclose such conduct. It is committed to ensuring
transparency and accountability in its administrative and
management practices and supports the making of disclosures
that reveal corrupt conduct, conduct involving a substantial
mismanagement of public resources, or conduct involving a
substantial risk to public health and safety or the environment.
The Trust will take all reasonable steps to protect people who
make such disclosures from any detrimental action in reprisal
for making the disclosure. It will also afford natural justice to the
person who is the subject of the disclosure to the extent it is
legally possible.
REPORTING PROCEDURESDisclosures of improper conduct or detrimental action by the
Trust or its employees may be made to the following officer:
The Protected Disclosure Coordinator and Officer:
Darren Rattle General Manager Corporate Services
Box 1 Aughtie Drive
Albert Park Victoria 3206
Email: [email protected]
Tel: (03) 9926 1506
DISCLOSURES UNDER THE PROTECTED DISCLOSURE ACT 2012 Alternatively, disclosures of improper conduct or detrimental
action by the Trust or its employees may also be made directly
to the Independent Broad-based Anti-corruption Commission:
Level 1, 459 Collins Street (North Tower)
Melbourne VIC 3000
Telephone: 1300 735 135
Internet: www.ibac.vic.gov.au
Email: (refer website above)
FURTHER INFORMATIONThe Protected Disclosure Policy and Procedures, which outline
the system for reporting disclosures of improper conduct or
detrimental action by the Trust or any of its employees are
available for public perusal.
2013/2014 NUMBER 2012/2013 NUMBER
The number of disclosures made by an individual to the Trust and
notified to the Independent Broad-based Anti-corruption Commission:
Assessable Disclosures 0 n/a
Contents
COMPREHENSIVE OPERATING STATEMENT 01
BALANCE SHEET 02
STATEMENT OF CHANGES IN EQUITY 03
CASH FLOW STATEMENT 04
NOTES TO THE FINANCIAL STATEMENTS 1. Summary of significant accounting policies 05
2. Going concern 15
3. Income from transactions 15
4. Expenses from transactions 16
5. Cash and deposits 17
6. Receivables 17
7. Inventories 18
8. Property, plant & equipment 19
9. Other non-financial assets 23
10. Payables 24
11. Provisions 25
12. Other liabilities 28
13. Leases 28
14. Reserves 29
15. Commitments 29
16. Cash flow information 30
17. Responsible persons 31
18. Superannuation 33
19. Remuneration of auditors 33
20. Contingent assets and contingent liabilities 33
21. Financial instruments 34
CERTIFICATION 43
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 21
BALANCE SHEET - AS AT 30 JUNE 2014
($ THOUSAND) NOTES SSCT 2014SSCT 2013 (restated)
SSCT 2012 (restated)
ASSETS
FINANCIAL ASSETS
Cash and deposits 5 7,032 5,366 6,088
Receivables 6 835 1,007 2,593
Total financial assets 7,867 6,373 8,681
NON-FINANCIAL ASSETS
Inventories 7 132 292 248
Property, plant and equipment 8, 1(t) 337,498 341,584 281,911
Other non-financial assets 9 270 241 158
Total non-financial assets 337,900 342,117 282,317
Total assets 345,767 348,490 290,998
LIABILITIES
Payables 10 2,961 2,834 2,226
Provisions 11 849 755 631
Other liabilities 12, 15, 1(t) 5,556 5,382 4,953
Total liabilities 9,366 8,971 7,810
Net assets 336,401 339,519 283,188
EQUITY
Accumulated deficit 1(t) (55,609) (46,611) (40,073)
Physical asset revaluation surplus 14 117,776 117,776 117,776
Contributed capital 1(t) 274,234 268,354 205,485
Total equity 336,401 339,519 283,188
Commitments for expenditure 15
Contingent assets and contingent liabilities 20
The balance sheet should be read in conjunction with the notes to the financial statements.
COMPREHENSIVE OPERATING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
($ THOUSAND) NOTES SSCT 2014SSCT 2013 (restated)
INCOME FROM TRANSACTIONS
Sale of goods and services 3(a), 1(t) 20,586 19,207
Grants 3(b) 1,652 2,497
Interest 3(c) 132 219
Total income from transactions 22,370 21,923
EXPENSES FROM TRANSACTIONS
Employee expenses 4(a), 1(t) (11,004) (9,907)
Depreciation 4(b) (8,924) (7,519)
Other operating expenses 4(c), 1(t) (11,440) (11,035)
Total expenses from transactions (31,368) (28,461)
Net result from transactions (net operating balance) (8,998) (6,538)
OTHER ECONOMIC FLOWS - OTHER COMPREHENSIVE INCOME
Changes in physical asset revaluation surplus 14 - -
Total other economic flows - other comprehensive income
- -
Comprehensive result (8,998) (6,538)
The comprehensive operating statement should be read in conjunction with the notes to the financial statements.
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 43
STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
($ THOUSAND) NOTESPHYSICAL ASSET
REVALUATION SURPLUS
ACCUMULATED DEFICIT
CONTRIBUTED CAPITAL
TOTAL
BALANCE AT 1 JULY 2012 1(t) 117,776 (40,073) 205,485 283,188
Net result for the year - (6,538) - (6,538)
Other comprehensive income for the year 14, 1(t) - - - -
Capital appropriations - - 62,869 62,869
BALANCE AT 30 JUNE 2013 117,776 (46,611) 268,354 339,519
Net result for the year - (8,998) - (8,998)
Other comprehensive income for the year 14 - - - -
Capital appropriations - - 5,880 5,880
BALANCE AT 30 JUNE 2014 117,776 (55,609) 274,234 336,401
The statement of changes in equity should be read in conjunction with the notes to the financial statements. The above cash flow statement should be read in conjunction with the notes to the financial statements.
CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
($ THOUSAND) NOTES SSCT 2014 SSCT 2013
CASH FLOWS FROM OPERATING ACTIVITIES
RECEIPTS
Receipts from customers 21,624 22,112
Receipts from Government 1,652 2,497
Goods and Services Tax recovered from the ATO 1,154 959
Interest received 146 192
Total receipts 24,576 25,760
PAYMENTS
Payments to suppliers and employees (21,836) (21,074)
Goods and Services Tax paid to the ATO (1,501) (1,085)
Total payments (23,337) (22,159)
Net cash flows from operating activities 16(b) 1,239 3,601
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for non-financial assets (5,453) (6,323)
Net cash flows (used in)/from investing activities (5,453) (6,323)
CASH FLOWS FROM FINANCING ACTIVITIES
Owner contributions by State Government 5,880 2,000
Net cash flows from financing activities 5,880 2,000
Net increase / (Decrease) in cash and cash equivalents 1,666 (722)
Cash and cash equivalents at end of financial year 5,366 6,088
Cash and cash equivalent at end of financial year 16(a) 7,032 5,366
Annual Financial Statements
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 65
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThese annual financial statements represent the audited
general purpose financial statements for State Sport Centre
Trust (SSCT) for the period ending 30 June 2014. The purpose
of the report is to provide users with information about the
SSCT’s stewardship of resources entrusted to it.
A. STATEMENT OF COMPLIANCEThese general purpose financial statements have been prepared
in accordance with the Financial Management Act 1994 (FMA)
and applicable Australian Accounting Standards (AAS) which
include Interpretations, issued by the Australian Accounting
Standards Board (AASB). In particular, they are presented in a
manner consistent with the requirements of the AASB 1049 Whole
of Government and General Government Sector Financial Reporting.
Where appropriate, those AASs paragraphs applicable to
not-for-profit entities have been applied.
Accounting policies are selected and applied in a manner which
ensures that the resulting financial information satisfies the concepts
of relevance and reliability, thereby ensuring that the substance of
the underlying transactions or other events is reported.
To gain a better understanding of the terminology used in this
report, a glossary of terms and style conventions can be found
in Note 22.
These annual financial statements were authorised for
issue by Mr. Michael Taylor, Chairman of SSCT and Mr. Simon
Weatherill, Chief Executive Officer and Accountable Officer of
SSCT, on 28th August 2014.
B. BASIS OF ACCOUNTING PREPARATION AND MEASUREMENTThe accrual basis of accounting has been applied in the
preparation of these financial statements whereby assets,
liabilities, equity, income and expenses are recognised in the
reporting period to which they relate, regardless of when cash
is received or paid.
Judgements, estimates and assumptions are required to be
made about the carrying values of assets and liabilities that
are not readily apparent from other sources. The estimates and
associated assumptions are based on professional judgements
derived from historical experience and various other factors that
are believed to be reasonable under the circumstances. Actual
results may differ from these estimates.
Revisions to accounting estimates are recognised in the period
in which the estimate is revised and also in future periods that
are affected by the revision. Judgements and assumptions made
by management in the application of AASs that have significant
effects on the financial statements and estimates relate to:
• The fair value of land, buildings, infrastructure, plant and equipment; and
• Actuarial assumptions for employee benefit provisions.
These financial statements are presented in Australian dollars,
and prepared in accordance with the historical cost convention
except for:
• Non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value; and
• The fair value of an asset other than land is generally based
on its depreciated replacement value.
Consistent with AASB 13 Fair Value Measurement, SSCT
determines the policies and procedures for both recurring fair
value measurements such as property, plant and equipment, in
accordance with the requirements of AASB 13 and the relevant
Financial Reporting Directions.
All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets
for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input
that is significant to the fair value measurement is directly or
indirectly observable; and
Level 3 – Valuation techniques for which the lowest level input
that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, SSCT has
determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy as explained above.
In addition, SSCT determines whether transfers have occurred
between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
The Valuer-General Victoria (VGV) is the SSCT’s independent
valuation agency.
SSCT, in conjunction with VGV, monitors changes in the fair
value of each asset and liability through relevant data sources
to determine whether revaluation is required.
C. REPORTING ENTITYThe financial statements cover SSCT as an individual reporting entity.
The financial statements include all the controlled activities of
the SSCT, which is a statutory authority established under the
State Sport Centres (Amendment) Act 2004 No. 70 (“Act”).
Its principal address is:
State Sport Centres Trust
Box 1, Aughtie Drive,
Albert Park VIC 3206
The following statutory bodies are included in the SSCT’s
reporting entity:
• Melbourne Sports and Aquatic Centre (MSAC), incorporating MSAC Institute of Training is independent Strategic Business Unit of SSCT. The unit is headed by the Director of SSCT, established under s14 of the Act.
• State Netball Hockey Centre (SNHC), is independent Strategic Business Unit of SSCT .The unit is headed by the Director of SSCT, established under s15 of the Act.
• Lakeside Stadium, At the time of reporting, the Act has not been amended to include Lakeside Stadium; however, the SSCT was appointed as the committee of management of the Lakeside Oval Reserve on 31 Aug 2012 under section 14(2) of the Crown Land (Reserves) Act 1978. Therefore, details on the Lakeside Stadium financials have been incorporated into MSAC.
MSAC and SNHC produce a Business Plan and operate
independently with separate and individual financial operations
and accounts. It is the Government and SSCT’s policy that the
Centres will not receive any cross subsidies for operation.
SSCT is deemed a not-for-profit entity by being excluded
from “FRD 108 – Classification of Entities as For-Profit”
issued by the Department of Treasury and Finance.
A description of the nature of the SSCT’s operations and
its principal activities is included in the report of operations,
which does not form part of these financial statements.
D. SCOPE AND PRESENTATION OF FINANCIAL STATEMENTSComprehensive operating statement
The comprehensive operating statement comprises three
components, being ‘net result from transactions’ (or termed as
‘net operating balance’), ‘other economic flows included in net
result’, as well as ‘other economic flows – other comprehensive
income’. The sum of the former two, together with the net result
from discontinued operations, represents the net result.
The net result is equivalent to profit or loss derived in
accordance with AASs.
This classification is consistent with the whole of government
reporting format and is allowed under AASB 101 Presentation
of Financial Statements.
Balance sheet
Assets and liabilities are presented in liquidity order with assets
aggregated into financial assets and non-financial assets.
Current and non current assets and liabilities (non current being
those assets or liabilities expected to be recovered or settled
more than 12 months after the reporting period) are disclosed
in the notes, where relevant.
Cash flow statement
Cash flows are classified according to whether or not they
arise from operating, investing, or financing activities. This
classification is consistent with requirements under AASB 107
Statement of Cash Flows.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 87
Statement of changes in equity
The statement of changes in equity presents reconciliations
of non-owner and owner changes in equity from opening
balances at the beginning of the reporting period to the
closing balances at the end of the reporting period. It also
shows separately changes due to amounts recognised in the
‘Comprehensive result’ and amounts related to ‘Transactions
with owner in its capacity as owner’.
Rounding of amounts
Amounts in the financial statements have been rounded to the
nearest $1 000, unless otherwise stated. Figures in the financial
statements may not equate due to rounding. Please refer to the
end of Note 22 for a style convention for explanations of minor
discrepancies resulting from rounding.
E. CHANGES IN ACCOUNTING POLICIESSubsequent to the 2012-13 reporting period, the following new
and revised Standards have been adopted in the current period
with their financial impact detailed as below.
AASB 13 Fair Value Measurement
AASB 13 establishes a single source of guidance for all fair
value measurements. AASB 13 does not change when SSCT is
required to use fair value, but rather provides guidance on how
to measure fair value under Australian Accounting Standards
when fair value is required or permitted. SSCT has considered
the specific requirements relating to highest and best use,
valuation premise, and principal (or most advantageous)
market. The methods, assumptions, processes and procedures
for determining fair value were revisited and adjusted where
applicable. In light of AASB 13, SSCT has reviewed the fair value
principles as well as its current valuation methodologies in
assessing the fair value, and the assessment has not materially
changed the fair values recognised.
However, AASB 13 has predominantly impacted the disclosures
of SSCT. It requires specific disclosures about fair value
measurements and disclosures of fair values, some of which
replace existing disclosure requirements in other standards,
including AASB 7 Financial Instruments: Disclosures.
The disclosure requirements of AASB 13 apply prospectively
and need not be applied in comparative information before
first application. Consequently, the 2012-13 comparatives of
these disclosures have not been provided, except for financial
instruments, of which the fair value disclosures are required
under AASB 7 Financial Instruments: Disclosures.
AASB 119 Employee benefits
In 2013-14, SSCT has applied AASB 119 Employee benefits
(September 2011, as amended) and the related consequential
amendments for the first time.
The revised AASB 119 changes the accounting for defined
benefit plans and termination benefits. The most significant
change relates to the accounting for changes in defined benefit
obligation and plan assets. As the current accounting policy is
for the Department of Treasury and Finance to recognise and
disclose the State’s defined benefit liabilities in its financial
statements, changes in defined benefit obligations and plan
assets will have limited impact on SSCT.
The revised standard also changes the definition of short-term
employee benefits. These were previously benefits that were
expected to be settled within twelve months after the end of
the reporting period in which the employees render the related
service, however, short-term employee benefits are now defined
as benefits expected to be settled wholly within twelve months
after the end of the reporting period in which the employees
render the related service. As a result, accrued annual leave
balances which were previously classified by SSCT as short-term
employee benefits no longer meet this definition and are now
classified as long-term employee benefits. This has resulted in
a change of measurement for the annual leave provision from
an undiscounted to discounted basis.
However, the change in classification has not materially
altered SSCT’s measurement of the annual leave provision.
As per the direction of SSCT Audit & Risk Committee, SSCT
monitors employee’s annual leave and the balance of benefits
expected to be settled wholly within twelve months after the
end of the reporting period in which the employees render
the related service. The impact of applying AASB 119 in the
Comprehensive Operating Statement for 2012 2013 is increasing
profit by $2000.00. Due to the immaterial change, SSCT has not
adjusted the closing balance of Annual Leave and the employee
expense for 2012 2013.
F. INCOME FROM TRANSACTIONSIncome is recognised to the extent that it is probable that the
economic benefits will flow to the entity and the income can be
reliably measured at fair value.
Sale of goods and services
Income from sale of goods and services
Income from the sale of goods and services is recognised when:
• SSCT no longer has any of the significant risks and rewards of ownership of the goods and services transferred to the buyer;
• SSCT no longer has continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold and services provided;
• The amount of income, and the costs incurred or to be incurred in respect of the transactions, can be reliably measured;
• It is probable that the economic benefits associated with the transaction will flow to the SSCT
Sale of goods and services includes rental income which
are recognised at the time the rent is billed.
Interest
Interest includes interest received on bank term deposits
and other investments and the unwinding over time of the
discount on financial assets. Interest income is recognised
using the effective interest method which allocates the
interest over the relevant period.
Grants
Income from grants (other than contributions by owners) is
recognised when SSCT obtains control over the contribution.
G. EXPENSES FROM TRANSACTIONSExpenses from transactions are recognised as they are incurred,
and reported in the financial year to which they relate.
Employee expenses
Refer to the section in Note 1(K) regarding employee benefits.
These expenses include all costs related to employment
(other than superannuation which is accounted for separately)
including wages and salaries, fringe benefits tax, leave
entitlements, redundancy payments and WorkCover premiums.
Superannuation
The amount recognised in the comprehensive operating
statement is the employer contributions for members of both
defined benefit and defined contribution superannuation plans
that are paid or payable during the reporting period.
Depreciation
All infrastructure assets, buildings, plant and equipment
and other non-financial physical assets (excluding items
under operating leases, assets held for sale and land)
that have finite useful lives are depreciated. Depreciation
is generally calculated on a straight-line basis, at rates that
allocate the asset’s value, less any estimated residual value,
over its estimated useful life. Refer to Note 1 (J) for the
depreciation policy for leasehold improvements.
The estimated useful lives, residual values and depreciation
method are reviewed at the end of each annual reporting
period, and adjustments made where appropriate.
The following are typical estimated useful lives for the
different asset classes for both current and prior years:
ASSET USEFUL LIFE
2014 2013
Buildings 15 - 110 years 15 - 110 years
Plant and Equipment 5 – 40 years 5 – 40 years
Office Furniture 5 – 15 years 5 – 15 years
Computer Equipment 3 – 5 years 3 – 5 years
Gym Equipment 5 – 10 years 5 – 10 years
Other Equipment 2 – 40 years 2 – 40 years
Leasehold Improvements 5 - 40 years 5 - 40 years
Land is considered to have an indefinite life, and is not
depreciated. Depreciation is not recognised in respect
of this asset because its service potential has not, in any
material sense, been consumed during the reporting period.
Other operating expenses
Other operating expenses generally represent the day-to-day
running costs incurred in normal operations and include:
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 09
Supplies and services
Supplies and services costs which are recognised as an expense
in the reporting period in which they are incurred. The carrying
amounts of any inventories held for distribution are expensed
when distributed.
Bad and doubtful debts
Bad and doubtful debts are assessed on a regular basis.
Those bad debts considered as written off by mutual consent
are classified as a transaction expense. Those written off
unilaterally and the allowance for doubtful receivables, are
classified as other economic flows (refer to Note 1(I) Financial
assets – Impairment of financial assets).
Fair value of assets and services provided free of charge or for nominal consideration
Contributions of resources provided free of charge or for nominal
consideration are recognised at their fair value when the transferee
obtains control over them, irrespective of whether restrictions or
conditions are imposed over the use of the contributions, unless
received from another government department or agency as a
consequence of a restructuring of administrative arrangements.
In the latter case, such a transfer will be recognised at its carrying
value. Contributions in the form of services are only recognised
when a fair value can be reliably determined and the services
would have been purchased if not donated.
H. OTHER ECONOMIC FLOWS INCLUDED IN THE NET RESULTOther economic flows measure the change in volume or value
of assets or liabilities that do not result from transactions.
Net gain/(loss) on non-financial assets
Net gain/(loss) on non-financial assets includes realised
and unrealised gains and losses as follows:
Revaluation gains/(losses) of non-financial physical assets
Refer to accounting policy on Property, plant and equipment,
provided in Note 1(J) Revaluation of Non-financial assets.
Net gain/(loss) on disposal of non financial assets
Any gain or loss on the disposal of non financial assets is
recognised at the date of disposal and is the difference between
the proceeds the carrying value of the asset at that time.
Impairment of non-financial assets
All of SSCT’s non-financial assets are assessed annually
for indications of impairment, except for inventories.
If there is an indication of impairment, the assets concerned are
tested as to whether their carrying value exceeds their possible
recoverable amount. Where an assets carrying value exceeds
its recoverable amount, the difference is written off as an other
economic flow, except to the extent that the write-down can be
debited to an asset revaluation surplus amount applicable to
that class of asset.
It is deemed that, in the event of the loss or destruction of an
asset, the future economic benefits arising from the use of the
asset will be replaced unless a specific decision to the contrary
has been made. The recoverable amount for most assets is
measured at the higher of depreciated replacement cost and
fair value less costs to sell. Recoverable amount for assets
held primarily to generate net cash inflows is measured at the
higher of the present value of future cash flows expected to be
obtained from the asset and fair value less costs to sell.
Other gains/(losses) from other economic flows
Other gains/(losses) from other economic flows include
the gains or losses from:
• The revaluation of the present value of the long service leave liability due to changes in the bond interest rates; and
• Transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition or reclassification.
I. FINANCIAL ASSETSCash and deposits
Cash and deposits recognised on the balance sheet comprise
cash on hand and cash at bank, deposits at call and those highly
liquid investments (with an original maturity of three months or
less), which are held for the purpose of meeting short term cash
commitments rather than for investment purposes, and readily
convertible to known amounts of cash with an insignificant risk
of changes in value.
For cash flow statement presentation purposes, cash and
cash equivalents include bank overdrafts, which are included
as borrowings on the balance sheet.
Receivables
Receivables consist of:
• Contractual receivables, such as debtors in relation to goods and services, loans to third parties, and accrued investment income; and
• Statutory receivables, such as amounts owing from the Victorian Government and Goods and Services Tax (GST)
input tax credits recoverable.
Contractual receivables are classified as financial instruments
and categorised as loans and receivables. Statutory receivables,
are recognised and measured similarly to contractual receivables
(except for impairment), but are not classified as financial
instruments because they do not arise from a contract.
Receivables are subject to impairment testing as described
below. A provision for doubtful receivables is recognised when
there is objective evidence that the debts may not be collected,
and bad debts are written off when identified.
The average credit period for sales of goods and services and
for other receivables is 30 days. No interest is charged on other
receivables for outstanding balances.
Impairment of financial assets
At the end of each reporting period, SSCT assesses whether
there is objective evidence that a financial asset or group of
financial assets is impaired. All financial instrument assets,
except those measured at fair value through profit or loss,
are subject to annual review for impairment.
Receivables are assessed for bad and doubtful debts on
a regular basis. Those bad debts considered as written off
by mutual consent are classified as a transaction expense.
Bad debts not written off by mutual consent and the allowance
for doubtful receivables are classified as other economic flows
in the net result.
The amount of the allowance is the difference between the financial
asset’s carrying amount and the present value of estimated future
cash flows, discounted at the effective interest rate.
In assessing impairment of statutory (non-contractual) financial
assets, which are not financial instruments, professional
judgement is applied in assessing materiality using estimates,
averages and other computational methods in accordance with
AASB 136 Impairment of Assets.
J. NON-FINANCIAL ASSETSInventories
Inventories include goods and other property held either
for sale, or for distribution at zero or nominal cost, or for
consumption in the ordinary course of business operations.
Inventories held for distribution are measured at the lower
of cost and net realisable value.
Property, plant and equipment
All non-financial physical assets are measured initially at cost
and subsequently revalued at fair value less accumulated
depreciation and impairment.
The fair value of the Crown lands are measured with regard to
the property’s highest and best use after due consideration is
made for any legal or physical restrictions imposed on the asset,
public announcements or commitments made in relation to the
intended use of the asset. Theoretical opportunities that may be
available in relation to the asset are not taken into account until
it is virtually certain that the restrictions will no longer apply.
Therefore, unless otherwise disclosed, the current use of these
non financial physical assets will be their highest and best uses.
The fair value of plant, equipment and vehicles,
is normally determined by reference to the asset’s
depreciated replacement cost.
The cost of constructed non-financial physical assets includes the
cost of all materials used in construction, direct labour on the project,
and an appropriate proportion of variable and fixed overheads.
Leasehold improvements
The cost of leasehold improvements is capitalised as an asset
and depreciated over the shorter of the remaining term of the
lease or the estimated useful life of the improvements.
Revaluations of non financial physical assets
Non-financial physical assets are measured at fair value on
a cyclical basis, in accordance with the Financial Reporting
Directions (FRDs) issued by the Minister for Finance. A full
revaluation normally occurs every five years, based upon the
asset’s government purpose classification but may occur more
frequently if fair value assessments indicate material changes in
values. Independent valuers are generally used to conduct
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 21 1
Revaluations of non financial physical assets (continued)
these scheduled revaluations. Certain infrastructure assets are
revalued using specialised advisors. Any interim revaluations
are determined in accordance with the requirements of the
FRDs. Revaluation increases or decreases arise from differences
between an asset’s carrying value and fair value.
Net revaluation increases (where the carrying amount of a class
of assets is increased as a result of a revaluation) are recognised
in ‘Other economic flows – other comprehensive income’, and
accumulated in equity under the asset revaluation surplus.
However, the net revaluation increase is recognised in the net
result to the extent that it reverses a net revaluation decrease
in respect of the same class of property, plant and equipment
previously recognised as an expense (other economic flows) in
the net result.
Net revaluation decreases are recognised in ‘Other economic
flows – other comprehensive income’ to the extent that a credit
balance exists in the asset revaluation surplus in respect of the
same class of property, plant and equipment. Otherwise, the
net revaluation decreases are recognised immediately as other
economic flows in the net result. The net revaluation decrease
recognised in ‘Other economic flows – other comprehensive
income’ reduces the amount accumulated in equity under the
asset revaluation surplus.
Revaluation increases and decreases relating to individual
assets within a class of property, plant and equipment, are
offset against one another within that class but are not offset
in respect of assets in different classes. Any asset revaluation
surplus is not normally transferred to accumulated funds on
derecognition of the relevant asset.
Other non-financial assets
Other non financial assets include accrued income and
prepayments. Prepayments which represent payments
in advance of receipt of goods or services or that part of
expenditure made in one accounting period covering a term
extending beyond that period.
K. LIABILITIESPayables
Payables consist of:
• Contractual payables, such as accounts payable, accrued expenses and unearned income including deferred income
from concession notes. Accounts payable represent liabilities for goods and services provided to SSCT prior to the end of the financial year that are unpaid, and arise when SSCT becomes obliged to make future payments in respect of the purchase of those goods and services; and
• Statutory payables, such as goods and services tax and fringe
benefits tax payables.
Contractual payables are classified as financial instruments and
categorised as financial liabilities at amortised cost. Statutory
payables are recognised and measured similarly to contractual
payables, but are not classified as financial instruments and not
included in the category of financial liabilities at amortised cost,
because they do not arise from a contract.
Provisions
Provisions are recognised when SSCT has a present obligation,
the future sacrifice of economic benefits is probable, and the
amount of the provision can be measured reliably.
The amount recognised as a liability is the best estimate of
the consideration required to settle the present obligation at
reporting period, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using
the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows, using
discount rate that reflects the time value of money and risks
specific to the provision.
When some or all of the economic benefits required to settle
a provision are expected to be received from a third party, the
receivable is recognised as an asset if it is virtually certain that
recovery will be received and the amount of the receivable can
be measured reliably.
Employee benefits
Provision is made for benefits accruing to employees in respect
of wages and salaries, annual leave and long service leave for
services rendered to the reporting date.
(i) Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non monetary
benefits annual leave and accumulating sick leave, are all
recognised in the provision for employee benefits as ‘current
liabilities’, because SSCT does not have an unconditional right
to defer settlements of these liabilities.
Depends on the expectation of the timing of settlement,
liabilities for wages and salaries, annual leave and sick leave
are measured at:
• Undiscounted value if SSCT expects to wholly settle within 12 months; or
• Present value if SSCT does not expect to wholly settle within
12 months.
(ii) Long service leave
Liability for long service leave (LSL) is recognised in the
provision for employee benefits.
Unconditional LSL is disclosed in the notes to the financial
statements as a current liability, even where SSCT does not
expect to settle the liability within 12 months because it will
not have the unconditional right to defer the settlement of the
entitlement should an employee take leave within 12 months.
The components of this current LSL liability are measured at:
• Undiscounted value if SSCT expects to wholly settle within 12 months; and
• Present value if SSCT does not expect to wholly settle within
12 months.
Conditional LSL is disclosed as a non-current liability. There is
an unconditional right to defer the settlement of the entitlement
until the employee has completed the requisite years of service.
This non-current LSL liability is measured at present value.
Any gain or loss following revaluation of the present value of
non-current LSL liability is recognised as a transaction, except
to the extent that a gain or loss arises due to changes in bond
interest rates for which it is then recognised as an ‘other
economic flow’ refer to Note 1(H).
(iii) Termination benefits
Termination benefits are payable when employment is terminated
before the normal retirement date, or when an employee decides
to accept an offer of benefits in exchange for the termination of
employment. SSCT recognises termination benefits when it is
demonstrably committed to either terminating the employment
of current employees according to a detailed formal plan without
possibility of withdrawal or providing termination benefits as
a result of an offer made to encourage voluntary redundancy.
Benefits falling due more than 12 months after the end of the
reporting period are discounted to present value.
On-costs
Provisions for on costs such as payroll tax, workers
compensation and superannuation are recognised
separately from the provision for employee benefits.
L. LEASESA lease is a right to use an asset for an agreed period of
time in exchange for payment.
Leases are classified at their inception as either operating
or finance leases based on the economic substance of the
agreement so as to reflect the risks and rewards incidental
to ownership. Leases of property, plant and equipment are
classified as finance infrastructure leases whenever the terms
of the lease transfer substantially all the risks and rewards of
ownerships from the lessor to the lessee. All other leases are
classified as operating leases.
Finance Lease
SSCT does not hold any finance leases. Operating lease
payments are recognised as an expense in the comprehensive
operating statement on a straight-line basis over the lease term.
The leased asset is not recognised in the balance sheet.
Operating Lease
Rental income from operating leases is recognised on
a straight-line basis over the term of the relevant lease.
All incentives for the agreement of a new or renewed operating
lease are recognised as an integral part of the net consideration
agreed for the use of the leased asset, irrespective of the
incentive’s nature or form or the timing of payments.
In the event that lease incentives are given to the lessee, the
aggregate cost of incentives are recognised as a reduction of rental
income over the lease term, on a straight-line basis unless another
systematic basis is more representative of the time pattern over
which the economic benefit of the leased asset is diminished.
M. EQUITYContributions by owners
Additions to net assets which have been designated as
contributions by owners are recognised as contributed capital.
Other transfers that are in the nature of contributions or
distributions have also been designated as contributions by owners.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 41 3
N. COMMITMENTSCommitments for future expenditure include operating and
capital commitments arising from contracts. These commitments
are disclosed by way of a note (refer to Note 15) at their nominal
value and inclusive of the goods and services tax (GST) payable.
O. CONTINGENT ASSETS AND CONTINGENT LIABILITIESContingent assets and contingent liabilities are not recognised
in the balance sheet, but are disclosed by way of a note (refer
to Note 20) and, if quantifiable, are measured at nominal value.
Contingent assets and liabilities are presented inclusive of GST
receivable or payable respectively.
P. ACCOUNTING FOR THE GOODS AND SERVICES TAX (GST)Income, expenses and assets are recognised net of the
amount of associated goods and services tax (GST), except
where GST incurred is not recoverable from the taxation
authority. In this case, the GST payable is recognised as part
of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of
GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other
receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components
of cash flows arising from investing or financing activities which
are recoverable from, or payable to the taxation authority, are
presented as operating cash flow.
Commitments and contingent assets and liabilities are also
stated inclusive of GST.
Q. INCOME TAXThe Australian Taxation Office has deemed the SSCT to be a
“Public Authority” within the terms of Section 50-25 of the Income
Tax Assessment Act 1997 and as such is exempt from income tax.
No provisions for income taxes payable have been raised.
R. EVENTS AFTER THE REPORTING PERIODThere has not arisen in the interval between the end of the
financial year and the date of signing these financial statements,
any item, transactions or event of a material and unusual
nature likely to affect significantly the operations of the SSCT,
the results of those operations, or the state of affairs of the
SSCT, in subsequent financial years.
S. FOREIGN CURRENCYAll foreign currency transactions during the financial year are
brought to account using the exchange rate in effect at the date
of the transaction.
T. CORRECTION OF PRIOR PERIOD ERRORSSCT was appointed as the Committee of Management of
Lakeside Stadium effective 31st August 2011. However, the land
was not transferred as of the effective date and therefore was
not reported at year end 2011 and 2012. A Ministerial Allocation
Statement for Lakeside Stadium Land was exercised on 8th may
2014 and was transferred to the Trust at $18,934,996 as
a Contributed Capital.
Lakeside land should have been capitalized as at year ending
30th June 2012. As such, SSCT Balance Sheet for year ending
2012 needs to be restated by increasing the total Property,
plant and equipment from $262,976,962 to $281,911,958 to reflect
the Contributed capital of a total $18,934,996. Therefore, the
opening balance of Contributed capital as at 1st July 2012 is
restated to $205,484,996 from $186,550,000.
The opening balance of Employee expense and Operating
expense in SSCT Comprehensive Operating Statement have
been restated from $9,515,000 and $11,427,000 to $9,907,000
and $11,035,000 respectively, due to SSCT incorrectly classed
the movements of accrued leave entitlements and accrued
salaries into the Operating expense instead of employee
expense in 2012 2013.
The opening balance of Sales of Goods and Service in SSCT
Comprehensive Operating Statement and Other Liabilities in
SSCT Balance Sheet have been restated from $19,030,000 and
$5,559,000 to $19,207,000 and $5,382,000 respectively, due to
SSCT recognising the $177,000 insurance claim from Prepaid
Income to Incom for 2012 2013.
STANDARD/ INTERPRETATION
SUMMARYAPPLICABLE TO ANNUAL REPORTING PERIOD BEGINNING ON
AASB 2013
3 Amendments to AASB 136Recoverable Amount Disclosures for Non-Financial Assets
1 Jan 2014
AASB 9 Financial Instruments
Revisions to the classification and measurement of financial assets and financial liabilities
1 Jan 2017
AASS ISSUED THAT ARE NOT YET EFFECTIVE:
U. AASS ISSUED THAT ARE NOT YET EFFECTIVECertain new AASs have been published that are not mandatory
for the 30 June 2014 reporting period. DTF assesses the
impact of all these new standards and advises SSCT of their
applicability and early adoption where applicable.
As at 30 June 2014, the following standards and interpretations
that are applicable to SSCT had been issued but are not
mandatory for the financial year ending 30 June 2014. Standards
and Interpretations that are not applicable to SSCT have been
omitted. SSCT has not early adopted these standards.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 61 5
NOTE 2. GOING CONCERN
The financial statements of SSCT have been prepared on a going concern basis. The trustees of the State Sport Centres Trust are of the
opinion that SSCT will be able to pay its debts as and when they fall due; this is supported by the provision of Letter of Comfort from the Minister.
The Victorian Government recently confirmed its ongoing support for the SSCT as part of its 2014/2015 Budget by committing over the next four
years $6 million in operational funding and $16.2 million for necessary capital works.
NOTE 3. INCOME FROM TRANSACTIONS
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
(A) SALE OF GOODS AND SERVICES
Sale of goods and services 17,572 3,014 20,586 16,370 2,837 19,207
Total sale of goods and services 17,572 3,014 20,586 16,370 2,837 19,207
(B) GRANTS
Specific purpose grants 1,582 70 1,652 2,497 - 2,497
Total grants 1,582 70 1,652 2,497 - 2,497
(C) INTEREST
Interest from cash and deposits 113 19 132 204 15 219
Total interest 113 19 132 204 15 219
NOTE 4. EXPENSES FROM TRANSACTIONS
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
(A) EMPLOYEE EXPENSES
Salaries, wages and long service leave expenses 8,696 763 9,459 7,792 700 8,492
Defined contribution superannuation expense 788 56 844 637 45 682
Other employee expenses 643 58 701 601 132 733
Total employee expenses 10,127 877 11,004 9,030 877 9,907
(B) DEPRECIATION
Depreciation of property, plant & equipment 7,512 1,412 8,924 6,116 1,403 7,519
Total depreciation 7,512 1,412 8,924 6,116 1,403 7,519
(C) OTHER OPERATING EXPENSES
Cleaning and chemical expenses 1,515 429 1,944 1,451 412 1,863
Other operating supplies expenses 1,797 115 1,912 1,843 118 1,961
Utilities and energy expenses 1,817 247 2,064 1,925 224 2,149
Cost of goods sold expenses 1,540 430 1,970 1,392 411 1,803
Maintenance expenses 1,061 198 1,259 903 170 1,073
IT & Telecommunication expenses 581 95 676 496 28 524
Insurance expenses 420 69 489 459 39 498
Sports rebate expenses 729 - 729 755 - 755
Security expenses 363 34 397 368 41 409
Total other operating expenses 9,823 1,617 11,440 9,592 1,443 11,035
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 81 7
NOTE 6. RECEIVABLES (CONTINUED)
(A) MOVEMENT IN THE PROVISION FOR DOUBTFUL CONTRACTUAL RECEIVABLES
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Balance at beginning of the financial year (29) - (29) (17) - (17)
Reversal of provision for receivables written off during the year as uncollectible
- - - - - -
Reversal of unused provision recognised in operating statement
10 - 10 - - -
Increase in provision recognised in operating statement
(7) - (7) (12) - (12)
Balance at end of the financial year (26) - (26) (29) - (29)
(B) AGEING ANALYSIS OF CONTRACTUAL RECEIVABLES
Please refer to Note 21 (Table 21.4) for the ageing analysis of contractual receivables.
(C) NATURE AND EXTENT OF RISK ARISING FROM CONTRACTUAL RECEIVABLES
Please refer to Note 21 for the nature and extent of risk arising from contractual receivables.
NOTE 7. INVENTORIES
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
CURRENT
Supplies and consumables - at cost 113 19 132 274 18 292
Total 113 19 132 274 18 292
NOTE 5. CASH AND DEPOSITS
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Cash at bank and on hand 3,805 1,027 4,832 2,479 287 2,766
Term deposits 1,600 600 2,200 2,300 300 2,600
Total cash and deposits 5,405 1,627 7,032 4,779 587 5,366
NOTE 6. RECEIVABLES
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
CURRENT CONTRACTUAL
Trade debtors 338 17 355 485 31 516
Provision for doubtful contractual receivables (a) (26) - (26) (29) - (29)
Interest receivable 12 4 16 29 1 30
Total current contractual 324 21 345 485 32 517
STATUTORY
GST input tax credit receivable 448 42 490 443 47 490
Total 772 63 835 928 79 1,007
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 01 9
NOTE 8. PROPERTY, PLANT & EQUIPMENT
(B) GROSS CARRYING AMOUNT AND ACCUMULATED DEPRECIATION
LAND
At fair value (a) 54,935 24,390 79,325 54,935 24,390 79,325
Total 54,935 24,390 79,325 54,935 24,390 79,325
BUILDINGS
At fair value (b) 235,105 36,898 272,003 231,257 36,830 268,087
Less: Accumulated depreciation (16,133) (3,338) (19,471) (9,726) (2,147) (11,873)
Total 218,972 33,560 252,532 221,531 34,683 256,214
PLANT AND EQUIPMENT
At fair value 14,556 2,944 17,500 14,079 2,878 16,957
Less: Accumulated depreciation (9,844) (2,496) (12,340) (9,090) (2,275) (11,365)
Total 4,712 448 5,160 4,989 603 5,592
CAPITAL WORK IN PROGRESS
At cost 474 7 481 424 29 453
Total 474 7 481 424 29 453
Total property, plant and equipment 279,093 58,405 337,498 281,879 59,705 341,584
(A) An independent valuation of SSCT land was performed by Napier & Blakeley as appointed by Valuer General Victoria, to determine the fair
value of the land. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the observable market price
with a notional discount of 80% known as ‘Community Service Obligation’. The effective date of the valuation is 30 June 2012.
(B) An independent valuation of SSCT building, plant and equipment was performed by Napier & Blakeley as appointed by Valuer General Victoria,
to provide replacement cost and depreciated replacement cost on the inspected properties. Work in progress has not been included in the revaluation.
(A) CLASSIFICATION BY ‘PUBLIC SAFETY AND ENVIRONMENT’ PURPOSE GROUP - CARRYING AMOUNT
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Land at fair value 54,935 24,390 79,325 54,935 24,390 79,325
Buildings at fair value 218,972 33,560 252,532 221,531 34,683 256,214
Plant & equipment at fair value 4,712 448 5,160 4,989 603 5,592
Work in Progress at cost 474 7 481 424 29 453
Net carrying amount of PPE 279,093 58,405 337,498 281,879 59,705 341,584
(C) MOVEMENTS IN CARRYING AMOUNT OF PROPERTY PLANT AND EQUIPMENT FOR SSCT (I)
LAND AT FAIR VALUE
BUILDINGS AT FAIR VALUE
PLANT & EQUIPMENT AT FAIR VALUE
WORK IN PROGRESS AT COST
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
Opening Balance 54,935 24,390 221,531 34,683 4,989 603 424 29
Fair value of assets received free of
charge or for nominal considerations - - - - - - - -
Additions - - 3,862 68 822 66 50 (22)
Disposals - - (8) - - - - -
Revaluation of PPE - - - - - - - -
Impairment of assets - - - - - - - -
Depreciation - - (6,413) (1,191) (1,099) (221) - -
Closing balance 54,935 24,390 218,972 33,560 4,712 448 474 7
LAND AT FAIR VALUE
BUILDINGS AT FAIR VALUE
PLANT & EQUIPMENT AT FAIR VALUE
WORK IN PROGRESS AT COST
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
Opening Balance 54,935 24,390 160,663 35,716 4,885 698 618 6
Fair value of assets received free of
charge or for nominal considerations - - 60,869 - - - - -
Additions/Deductions - - 5,135 160 1,085 114 (194) 23
Transfer/Disposals - - - - - - - -
Revaluation of PPE - - - - - - - -
Impairment of assets - - - - - - - -
Depreciation - - (5,136) (1,193) (981) (209) - -
Closing balance 54,935 24,390 221,531 34,683 4,989 603 424 29
(i) Fair value assessments have been performed for all classes of assets in this purpose group and the decision was made that movements were not
material (less than or equal to 10 per cent) for a full revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2017.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 22 1
NOTE 8. PROPERTY, PLANT & EQUIPMENT (CONTINUED)
(D) AGGREGATE DEPRECIATION RECOGNISED AS AN EXPENSE DURING THE YEAR
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Buildings (6,413) (1,191) (7,604) (5,136) (1,193) (6,329)
Plant and equipment (1,099) (221) (1,320) (981) (209) (1,190)
Total (7,512) (1,412) (8,924) (6,117) (1,402) (7,519)
RESTRICTED ASSETS
The SSCT holds $337,017 million worth of properties listed as specialised land and specialised buildings. These specialised land and specialised buildings cannot be disposed of without formal ministerial approval.
(F) RECONCILIATION OF LEVEL 3 FAIR VALUE
2014 SPECIALISED LANDSPECIALISED
BUILDINGSPLANT & EQUIPMENT
Opening Balance 79,325 256,214 5,592
Purchases (sales) - 3,930 888
Gains or losses recognised in net result - (8) -
Depreciations - (7,604) (1,320)
Impairment loss - - -
Subtotal 79,325 252,532 5,160
Gains or losses recognised in other economic flows – other comprehensive income - - -
Revaluation - - -
Closing Balance 79,325 252,532 5,160
Unrealised gains/ (losses) on non-financial assets - - -
(E) FAIR VALUE MEASUREMENT HIERARCHY FOR ASSETS AS AT 30 JUNE 2014
($ THOUSAND)CARRYING AMOUNT AS
AT 30-JUN-14FAIR VALUE MEASUREMENT AT END OF
REPORTING PERIOD USING:
Level 1 (i) Level 2 (i) Level 3 (i)
LAND AT FAIR VALUE
Specialised land 79,325 - - 79,325
Total of land at fair value 79,325 - - 79,325
BUILDINGS AT FAIR VALUE
Specialised buildings 252,532 - - 252,532
Total of buildings at fair value 252,532 - - 252,532
PLANT & EQUIPMENT AT FAIR VALUE
Plant and equipment 5,160 - - 5,160
Total of plant, equipment and vehicles at fair value
5,160 - - 5,160
(i) Classified in accordance with the fair value hierarchy, see Note 1(B).
SPECIALISED LAND AND SPECIALISED BUILDINGS
The market approach is also used for specialised land, although is adjusted for the community service obligation
(CSO) to reflect the specialised nature of the land being valued.
The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent
that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required
for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and
financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified
as Level 3 assets. For SSCT’s majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the
associated depreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised
buildings are classified as Level 3 fair value measurements.
An independent valuation of the SSCT’s specialised land and specialised buildings was performed by the Valuer General Victoria.
The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2014.
PLANT AND EQUIPMENT
New Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other
than as part of a going concern, fair value is determined using the depreciated replacement cost method.
There were no changes in valuation techniques throughout the period to 30 June 2014.
For all assets measured at fair value, the current use is considered the highest and best use.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 42 3
NOTE 8. PROPERTY, PLANT & EQUIPMENT (CONTINUED)
(G) DESCRIPTION OF SIGNIFICANT UNOBSERVABLE INPUTS TO LEVEL 3 VALUATIONS
Valuation technique
Significant unobservable inputs
Range (weighted
average) (i)
Sensitivity of fair value measurement to changes in significant unobservable inputs
Specialised land Market approach Community Service
Obligation (CSO) adjustment
75-80% (i)A significant increase or decrease in
the CSO adjustment would result in a significantly lower (higher) fair value
Specialised buildingsDepreciated
replacement costDirect cost
per square metre$3,200 -
$4,000/ m2
A significant increase or decrease in direct cost per square metre adjustment would re-
sult in a significantly higher or lower fair value
Useful life of specialised buildings
15-110 years
A significant increase or decrease in the estimated useful life of the asset
would result in a significantly higher or lower valuation.
Plant & equipmentDepreciated
replacement cost Cost per unit
$8,000–$10,000 per unit
A significant increase or decrease in cost per unit would result in a significantly
higher or lower fair value
Useful life of vehicles3–5 years (3 years)
A significant increase or decrease in the estimated useful life of the asset
would result in a significantly higher or lower valuation.
(i) CSO adjustments ranging from 75% to 80% were applied to reduce the market approach value for SSCT specialised land
NOTE 9. OTHER NON-FINANCIAL ASSETS
Current other assets
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Accrued income 131 - 131 120 - 120
Prepayments 126 13 139 105 16 121
Total 257 13 270 225 16 241
NOTE 10. PAYABLES
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
CURRENT PAYABLES CONTRACTUAL
Trade creditors 1,213 73 1,286 857 56 913
Accrued expenses 928 78 1,006 1,242 122 1,364
Total 2,141 151 2,292 2,099 178 2,277
STATUTORY
Taxes payable 379 69 448 336 61 397
Superannuation payable 221 - 221 160 - 160
Total 600 69 669 496 61 557
Total current payables 2,741 220 2,961 2,595 239 2,834
(A) MATURITY ANALYSIS OF CONTRACTUAL PAYABLES
Please refer to Note 21 (Table 21.5) for the maturity analysis of contractual payables.
(B) NATURE AND EXTENT OF RISK ARISING FROM CONTRACTUAL PAYABLES
Please refer to Note 21 for the nature and extent of risk arising from contractual payables.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 62 5
NOTE 11. PROVISIONS
MSAC
2014 $ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
CURRENT
Employee benefits (a)
Annual leave
Unconditional and expected to settle within 12 months 265 20 285 232 11 243
Unconditional and expected to settle after 12 months 59 - 59 43 9 52
Long service leave
Unconditional and expected to settle within 12 months 160 - 160 136 - 136
Unconditional and expected to settle after 12 months 95 11 106 79 5 84
Provisions for on-costs
Unconditional and expected to settle within 12 months 77 3 80 70 4 74
Unconditional and expected to settle after 12 months 28 2 30 17 - 17
Life memberships 5 - 5 5 - 5
Total current provisions 689 36 725 582 29 611
NON-CURRENT
Employee benefits (b) 96 2 98 112 1 113
Employee benefit on-costs 17 - 17 20 - 20
Life memberships 9 - 9 11 - 11
Total non-current provisions 122 2 124 143 1 144
Total provisions 811 38 849 725 30 755
(A) CURRENT EMPLOYEE BENEFITS
MSAC
2014 $ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Annual leave 324 20 344 275 20 295
Long Service Leave 255 11 266 215 5 220
(B) NON-CURRENT EMPLOYEE BENEFITS
Long service leave entitlements 96 2 98 112 1 113
Total employee benefits 675 33 708 602 26 628
Current Employee benefit on-costs 105 5 110 87 4 91
Non-current Employee benefit on-costs 17 - 17 20 - 20
Total on-costs 122 5 127 107 4 111
Total employee benefits and on- costs 797 38 835 709 30 739
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 2 82 7
NOTE 11. PROVISIONS (CONTINUED)
(C) MOVEMENT IN PROVISIONS
($ THOUSANDS) ON-COSTS 2014 TOTAL 2014
Opening balance 111 111
Additional provisions recognised 16 16
Reductions arising from payments/other sacrifices of future economic benefits - -
Unwind of discount and effect of changes in the discount rate - -
Closing balance 127 127
Current 19 19
Non-current (3) (3)
Total 16 16
(D) PROVISIONS FOR ANNUAL LEAVES AS AT 30 JUNE 2014
CURRENT PROVISIONSOLD
MEASUREMENT NEW
MEASUREMENT
Employee benefits – annual leave:
Unconditional and expected to be paid within 12 months 285 285
Unconditional and expected to be paid after 12 months 62 59
Total 347 344
NOTE 12. OTHER LIABILITIES
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Deferred revenue 990 44 1,034 822 38 860
Security deposits - - - - - -
Advancement 4,522 - 4,522 4,522 - 4,522
Total 5,512 44 5,556 5,344 38 5,382
NOTE 13. LEASES
DISCLOSURE OF OPERATING LEASES
Operating lease receivablesOperating lease receivables relate to 19 tenants (20 in 2012-13) within the Trust's precinct with lease terms between 2 years to 20 years
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Receivable no later than one year 199,295 - 199,295 234,063 - 234,063
Later than one year and not later than five years 438,194 - 438,194 853,635 - 853,635
Later than five years 564,265 - 564,265 600,625 - 600,625
Total 1,201,754 - 1,201,754 1,688,323 - 1,688,323
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 3 02 9
NOTE 14. RESERVES
PHYSICAL ASSET REVALUATION SURPLUS
The physical asset revaluation surplus is used to record increments and decrements
on the revaluation of non-financial assets, as described in Note 1 (i).
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Balance at beginning of financial year 78,732 39,044 117,776 78,732 39,044 117,776
Revaluation increments during the year - - - - - -
Balance at end of financial year 78,732 39,044 117,776 78,732 39,044 117,776
NOTE 15. COMMITMENTS
CAPITAL
The following commitments have not been recognised as liabilities in the financial statements. All amounts shown in the commitments note
are nominal amounts inclusive of GST. SSCT has $668,195 commitments for capital works at the date of this report. These commitments will
be paid within one year period.
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Not later than one year 667 1 668 424 29 453
Total 667 1 668 424 29 453
NOTE 16. CASH FLOW INFORMATION
(A) RECONCILIATION OF CASH AND CASH EQUIVALENTS CASH FLOWS, CASH INCLUDES:
MSAC 2014
$ ‘000
SNHC 2014
$ ‘000
SSCT 2014
$ ‘000
MSAC 2013
$ ‘000
SNHC 2013
$ ‘000
SSCT 2013
$ ‘000
Cash at bank and on hand 3,805 1,027 4,832 2,479 287 2,766
Term deposits 1,600 600 2,200 2,300 300 2,600
Total 5,405 1,627 7,032 4,779 587 5,366
(B) RECONCILIATION OF NET RESULT FOR THE PERIOD
Net result for the period (8,195) (803) (8,998) (5,667) (871) (6,538)
NON-CASH MOVEMENTS:
Depreciation of property, plant & equipment 7,512 1,412 8,924 6,116 1,403 7,519
Net loss on disposal of property, plant & equipment
8 - 8 - - -
Net loss on disposal of investment - - - - - -
MOVEMENTS IN ASSETS AND LIABILITIES:
Decrease in receivables 156 16 172 1,568 18 1,586
Decrease/(Increase) in inventories 161 (1) 160 (53) 9 (44)
(Increase)in other assets (32) 3 (29) (71) (12) (83)
Increase in provisions 86 8 94 122 2 124
Increase in payables 146 (19) 127 687 (79) 608
Increase in other liabilities 774 7 781 421 8 429
Net cash flows from operating activities 616 623 1,239 3,123 478 3,601
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 3 23 1
NOTE 17. RESPONSIBLE PERSONS
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994,
the following disclosures are made regarding responsible persons for the reporting period.
The persons who held the positions of Minister, Board Members and Accountable Officer of SSCT at any time during the
reporting period were as follows:
Responsible Minister:
The Honourable Damian Drum, MP (appointed 17 March 2014)
The Honourable Hugh Delahunty, MP (until 17 March 2014)
Minister for Sport, Recreation and Veterans’ Affairs
Members of the SSCT:
Mr. Michael Taylor – Chairman (appointed Chairman 17 September 2013)
Mr. Bruce Mildenhall Chairman (until 20 August 2013)
Mr. Brett Moore
Mr. Andrew Fried
Ms. Nicole Livingstone
Ms. Gaye Hamilton
Ms. Leigh Russell
Ms. Danni Roche (appointed 01 July 2013)
Remuneration relating to the Minister is included in the financial statements of the Department of Premier and Cabinet. Remuneration of
Board Members and Accountable Officer are included below in the remuneration of responsible persons.
Remuneration received or receivable by the accountable officer in connection with the management of the Department during the reporting
period was in the range: $300,000 – $400,000 ($300,000 – $400,000 in 2012-13)
Accountable Officer:
Mr. Simon Weatherill Chief Executive Officer
(B) REMUNERATION OF EXECUTIVE OFFICERS
The number of executive officers, other than the Minister, Board Members and Accountable Officer who are included in remuneration
of responsible persons, and their total remuneration during the reporting period are shown in the table below in their relevant income
bands, where greater than $100,000. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy
payments and retirement benefits.
TOTAL REMUNERATION BASE REMUNERATION
REMUNERATION RANGE: 2014 2013 2014 2013
<$100,000 2 - 2 -
$110,000 - $119,999 - - - -
$120,000 - $129,999 - 1 - 1
$130,000 - $139,999 - - - 1
$140,000 - $149,999 - 1 1 -
$150,000 - $159,999 1 1 1 1
$160,000 - $169,999 - - - -
$170,000 - $179,999 1 - - -
$180,000 - $189,999 - - - 1
$200,000 - $209,999 - 1 1 -
$230,000 - $239,999 1 - - -
Total numbers 5 4 5 4
Total remuneration $661,069 $626,334 $611,863 $594,849 (A) REMUNERATION OF RESPONSIBLE PERSONS
The number of responsible persons whose income from the SSCT during the reporting period falls within the following bands is:
REMUNERATION RANGE: 2014 2013
$0 - $9,999 1 1
$10,000 - $19,999 7 5
$20,000 - $29,999 - 1
$310,000 - $ 319,999 - 1
$320,000 - $ 329,999 1 -
Total numbers 9 8
Total remuneration received, or due and receivable by Responsible Persons
Total remuneration $412,847 $393,817
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 3 43 3
PAID CONTRIBUTIONS FOR THE YEAR
CONTRIBUTIONS OUTSTANDING FOR THE YEAR
TOTAL
DEFINED CONTRIBUTION PLANS:2014
$ ‘0002013
$ ‘0002014
$ ‘0002013
$ ‘0002014
$ ‘0002013
$ ‘000
VicSuper 500 342 139 105 639 447
Hostplus Super 67 32 22 12 89 44
AustralianSuper 46 21 18 7 64 28
Rest Superannuation 37 28 11 2 48 30
Other funds 180 102 31 31 211 133
Total superannuation 830 525 221 157 1,051 682
NOTE 18. SUPERANNUATION
Employees of the SSCT are entitled to receive superannuation benefits. Contributions are made to the VicSuper Fund as the SSCT’s default
fund, and to other funds elected by employees under Super choices legislation. Superannuation contributions paid or payable for the
reporting period are included as part of employee expenses in the comprehensive operating statement of SSCT.
The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by SSCT are shown
in the table below. Other funds represent all other employee funds with a total contribution made below $10,000 for the year.
NOTE 19. REMUNERATION OF AUDITORSAudit fees paid or payable to the Victorian Auditor-General’s Office (VAGO) for the audit of the SSCT’s financial report is set out below in the
following table:
SSCT 2014 $ ‘000 SSCT 2013 $ ‘000
Audit of the financial report 37 36
Total 37 36
NOTE 20. CONTINGENT ASSETS AND CONTINGENT LIABILITIESa. Contingent assets.
There were no contingent assets as at 30th June 2014 (2013: nil).
b. Contingent liabilities.
SSCT has $203,001 contingent liabilities at the date of this report, due to the retainer of the Energy Performance contract project.
The payments will be based on the conditions as outlined in the contract.
NOTE 21. FINANCIAL INSTRUMENTS
(A) FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
SSCT’s principal financial instruments comprise of:
• cash and deposits
• receivables (excluding statutory receivables)
• payables (excluding statutory receivables)
• other liabilities.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement,
and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity
instrument are disclosed in Note 1 to the financial statements.
The main purpose in holding financial instruments is to prudentially manage the SSCT’s financial risks within the Government policy
parameters. The SSCT’s main financial risks include credit risk, liquidity risk, interest rate risk, foreign currency risk and equity price risk.
The SSCT manages these financial risks in accordance with its financial risk management policy.
The carrying amounts of the SSCT’s contractual financial assets and liabilities by category are shown below in table 21.1.
CONTRACTUAL FINANCIAL ASSETS LOANS AND RECEIVABLES $’000
CONTRACTUAL FINANCIAL LIABILITIES AT AMORTISED
COST $’000 TOTAL $‘000
2014
CONTRACTUAL FINANCIAL ASSETS
Cash and deposits 7,032 - 7,032
Receivables 345 - 345
Total contractual financial assets 7,377 - 7,377
CONTRACTUAL FINANCIAL LIABILITIES
Payables - 2,292 2,292
Other liabilities - 5,556 5,556
Total contractual financial liabilities - 7,848 7,848
Table 21.1: Categorisation of financial instruments
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 3 63 5
Table 21.1: Categorisation of financial instruments (Continued)
CONTRACTUAL FINANCIAL ASSETS LOANS AND RECEIVABLES $’000
CONTRACTUAL FINANCIAL LIABILITIES AT AMORTISED
COST $’000 TOTAL $‘000
2013
CONTRACTUAL FINANCIAL ASSETS
Cash and deposits 5,366 - 5,366
Receivables 517 - 517
Total contractual financial assets 5,883 - 5,883
CONTRACTUAL FINANCIAL LIABILITIES
Payables - 2,277 2,277
Other liabilities - 5,382 5,382
Total contractual financial liabilities - 7,659 7,659
The net holding gains or losses disclosed below in table 21.2 are determined as follows:
• For cash and cash equivalents, loans and receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the
interest income, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment
recognised in the net result;
• For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign
exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost; and
• For financial assets and liabilities that are held-for-trading or designated at fair value through profit or loss, the net gain or loss is
calculated by taking the movement in the fair value of the financial asset or liability.
NET HOLDING GAIN / (LOSS)
$’000
TOTAL INTEREST INCOME/(EXPENSE)
$’000
FEE INCOME/(EXPENSE)
$’000
IMPAIRMENT LOSS $’000
TOTAL $’000
2014 CONTRACTUAL FINANCIAL ASSETS
Financial assets - Loans and receivables
- 132 - - 132
Total contractual financial assets - 132 - - 132
2013 CONTRACTUAL FINANCIAL ASSETS
Financial assets - Loans and receivables
- 219 - - 219
Total contractual financial assets - 219 - - 219
(B) CREDIT RISK
Credit risk arises on the contractual financial assets of the SSCT, which comprises cash and deposits, non-statutory receivables,
available-for-sale contractual financial assets and derivative instruments. Credit risk exposure in relation to each class of recognised
financial asset arises from the potential default of counter party on their contractual obligations resulting in financial loss to the SSCT.
Credit risk is measured at fair value and is monitored on a regular basis.
Credit risk associated with contractual financial assets is deemed insignificant as it is policy of the SSCT to only deal with major banking
institutions and entities with high credit ratings, and to obtain collateral or credit enhancements where appropriate. Credit risk in trade
debtors is managed by payment terms of 30 days and sound debt collection policies and procedures. The SSCT does not engage in
hedging for its financial assets.
Provision for impairment of financial assets is calculated based on past experience, and current and expected changes in
client credit ratings. As at reporting date there is no event to indicate that any of the financial assets were impaired.
Currently SSCT does not hold any collateral as security nor credit enhancements relating to its financial assets, nor have any
financial assets had their terms renegotiated so as to prevent them from being past due or impaired.
The following table 21.3 discloses the credit quality of contractual financial assets and table 21.4 discloses the ageing analysis
of contractual financial assets:
NOTE 21. FINANCIAL INSTRUMENTS (CONTINUED)
Table 21.2: Net holding gain/(loss) on financial instruments by category
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 3 83 7
FINANCIAL INSTITUTION (AA- CREDIT
RATING)
GOVERNMENT AGEN-CIES (AAA CREDIT
RATING) $’000
GOVERNMENT AGENCIES
(BBB CREDIT RATING) $’000
OTHER (MIN BBB CREDIT
RATING) $’000
TOTAL $’000
2014 CONTRACTUAL FINANCIAL ASSETS
Cash and deposits 2,132 2,900 - 2,000 7,032
Receivables - Trade debtors
- - - 329 329
Receivables - Interest receivable
12 4 - 16
Total contractual financial assets 2,144 2,904 - 2,329 7,377
2013 CONTRACTUAL FINANCIAL ASSETS
Cash and deposits 3,319 2,000 - 47 5,366
Receivables - Trade debtors
- - - 487 487
Receivables - Interest receivable
29 1 - - 30
Total contractual financial assets 3,348 2,001 - 534 5,883
Table 21.3: Credit quality of contractual financial assets that are neither past due nor impaired
NOTE 21. FINANCIAL INSTRUMENTS (CONTINUED)
Table 21.4: Ageing analysis of contractual financial assets
PAST DUE BUT NOT IMPAIRED
CARRYING AMOUNT
$’000
NOT PAST DUE AND NOT IMPAIRED
$’000
LESS THAN 1 MONTH
$’000
1 -3 MONTHS $’000
3 MONTHS - 1 YEAR
$’000
1 - 5 YEARS $’000
2014
Cash and deposits 7,032 7,032 - - - -
Receivables - Trade debtors
329 - 257 29 43 -
Receivables - Interest receivable
16 - 16 - - -
Total 7,377 7,032 273 29 43 -
2013
Cash and deposits 5,366 5,366 - - - -
Receivables - Trade debtors
487 - 352 109 26 -
Receivables - Interest receivable
30 - 30 - - -
Total 5,883 5,366 382 109 26 -
(C) LIQUIDITY RISK
Liquidity risk is the risk that SSCT would be unable to meet its financial obligations as and when they fall due. The SSCT’s exposure
to liquidity risk is deemed insignificant as it is policy of the SSCT to settle financial obligations within 30 days, and in the event of a
dispute, make payments within 30 days from the date of resolution. Exposure to liquidity risk is assessed based on past experience,
and current assessment of risk, through monitoring future cash flows and maturities planning to ensure adequate holdings of high
quality liquid assets are available and dealing in highly liquid markets. Cash for unexpected events is generally sourced from liquidation
of available financial investments.
The following table 21.5 discloses the contractual maturity analysis of contractual financial liabilities.
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 4 03 9
Table 21.5: Maturity analysis of contractual financial liabilities
PAST DUE BUT NOT IMPAIRED
CARRYING AMOUNT
$’000
NOMINAL AMOUNT $’000
LESS THAN 1 MONTH
$’000
1 -3 MONTHS $’000
3 MONTHS - 1 YEAR
$’000
1 - 5 YEARS $’000
2014
Payables 2,292 2,292 - - - -
Other liabilities 5,556 5,556 - - - -
Total 7,848 7,848 - - - -
2013
Payables 2,277 2,277 - 2,277 - -
Other liabilities 5,382 5,382 - 860 400 4,122
Total 7,659 7,659 - 3,137 400 4,122
(D) MARKET RISK
The SSCT’s exposures to market risk, including interest rate risk and foreign currency risk are insignificant.
Objectives, policies and processes used to manage each of these risks are disclosed below.
Foreign currency risk
The SSCT is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and
consumables from overseas. This is because of the limited amount of purchases denominated in foreign currencies
and the short timeframe between commitment and settlement. The SSCT manages its risk through cash flow planning
and monitoring on a foreign currency transaction basis. Based on past and current assessment of economic outlook,
it is deemed unnecessary for the SSCT to enter into any hedging arrangements to manage the risk.
The SSCT has no exposure to foreign currency risk as at 30 June 2014.
NOTE 21. FINANCIAL INSTRUMENTS (CONTINUED)
WEIGHTED AVERAGE
EFFECTIVE INTEREST RATE %
FIXED INTEREST RATE
$’000
VARIABLE INTEREST RATE
$’000
NON-INTEREST BEARING
$’000
CARRYING AMOUNT
$’000
2014 FINANCIAL ASSETS
Cash and deposits 3% 2,200 4,791 41 7,032
Receivables N/A - 16 329 345
Total financial assets N/A 2,200 4,807 370 7,377
FINANCIAL LIABILITIES
Payables - - - 2,292 2,292
Other liabilities - - - 5,556 5,556
Total financial liabilities N/A - - 7,848 7,848
Table 21.6: Interest rate exposure of financial instruments
(D) MARKET RISK (CONTINUED)
Interest rate risk
The SSCT’s exposure to interest rate risk arises through financial asset holdings held at variable interest rates. The SSCT has minimal
exposure to cash flow interest rate risks through its cash and deposits, and investments that are held at floating rate.
The SSCT manages this risk by monitoring movements in interest rates on a regular basis and has concluded that due to the amounts,
financial assets can be left at floating rate without necessarily exposing the SSCT to significant bad risk.
Taking into account past performance, future expectations, economic forecast and management’s knowledge and experience of the
financial markets, the SSCT believes the following movements are reasonably possible over the next 12 months, assuming a parallel shift
of one percent (100 basis points) in market interest rates from year-end.
The SSCT’s exposure to interest rate risk is disclosed in the following tables 21.6 and 21.7:
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
Annual Financial Statements
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 4 24 1
WEIGHTED AVERAGE
EFFECTIVE INTEREST RATE %
FIXED INTEREST RATE
$’000
VARIABLE INTEREST RATE
$’000
NON-INTEREST BEARING
$’000
CARRYING AMOUNT
$’000
2013 FINANCIAL ASSETS
Cash and deposits 5% - 5,319 47 5,366
Receivables N/A - 30 487 517
Total financial assets N/A - 5,349 534 5,883
FINANCIAL LIABILITIES
Payables N/A 2,292 - 2,277 2,277
Other liabilities N/A - - 5,382 5,382
Total financial liabilities N/A 2,292 - 7,659 7,659
Table 21.6: Interest rate exposure of financial instruments (Continued)
NOTE 21. FINANCIAL INSTRUMENTS (CONTINUED)
Table 21.7: Market risk exposure – Interest rate
INTEREST RATE RISK
CARRYING AMOUNT $’000
-1% NET RESULT $’000
-1% EQUITY $’000
+1% NET RESULT $’000
+1% EQUITY $’000
2014
Cash and deposits 7,032 (70) (70) 70 70
Total (decrease)/increase
7,032 (70) (70) 70 70
2013
Cash and deposits 5,366 (54) (54) 54 54
Total (decrease)/increase
5,366 (54) (54) 54 54
(E) FAIR VALUE
The fair values and net fair values of financial instrument assets and liabilities are determined as follows:
• Level 1 - the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are determined
with reference to quoted market prices;
• Level 2 - the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either
directly or indirectly; and
• Level 3 - the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis
using unobservable market inputs.
SSCT considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to
be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they
will be paid in full. The following table 21.8 shows that the fair value of the contractual financial assets and liabilities are the same as the
carrying amounts.
CARRYING AMOUNT 2014 $’000
FAIR VALUE 2014 $’000
CARRYING AMOUNT 2013 $’000
FAIR VALUE 2013 $’000
CONTRACTUAL FINANCIAL ASSETS
Cash and deposits 7,032 7,032 5,366 5,366
Receivables 345 345 517 517
Total contractual financial assets
7,377 7,377 5,883 5,883
CONTRACTUAL FINANCIAL LIABILITIES
Payables 2,292 2,292 2,277 2,277
Other liabilities 5,556 5,556 5,382 5,382
Total contractual financial liabilities
7,848 7,848 7,659 7,659
Table 21.8: Comparison between carrying amount and fair value
STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT4 3
aSIGNATURE
In accordance with a resolution of the Trustees of the State Sport Centres Trust, we state that in our opinion:
a) the information set out in the Comprehensive Operating
Statement, Balance Sheet, Statement of Changes in Equity,
Cash Flow Statement and notes forming part of the financial
statements, presents fairly the financial transactions of the Trust
during the financial year ended 30 June 2014 and the financial
position of the Trust as at 30 June 2014;
b) the attached financial statements for the Trust have been
prepared in accordance with Standing Direction 4.2 of the
Financial Management Act 1994, applicable Financial Reporting
Directions, Australian accounting standards and other mandatory
professional reporting requirements; and
c) at the date of this report we are not aware of any circumstances
which would render any particulars included in the financial
statements to be misleading or inaccurate.
Mr. Michael Taylor
Chairman
State Sport Centres Trust
Mr. Simon Weatherill
Chief Executive Officer and Accountable Officer
State Sport Centres Trust
Mr. Darren Rattle
Chief Finance and Accounting Officer
State Sport Centres Trust
Melbourne
Date: 28th August 2014
Certification
STATE SPORT CENTRES TRUST Box 1, Aughtie Drive Albert Park VIC 3206
T +61 3 9926 1555 F +61 3 9926 1666
www.ssct.com.au
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