2013 Annual Report - Parliament of Victoria - Home · 2013-09-05 · 2013 2013 Annual Report Strategies in action Telephone (03) 9546 9377 Facsimile (03) 9546 8628 Princes Highway

2013

2013 Annual ReportStrategies in action

Telephone (03) 9546 9377 Facsimile (03) 9546 8628Princes Highway Springvale – PO Box 1159, Clayton Vic 3169 Website smct.org.au Email [email protected]

The Southern Metropolitan Cemeteries Trust is a not-for-profit, community based organisation that cares for Brighton General, Bunurong Memorial Park, Cheltenham Memorial Park, Cheltenham Pioneer, Dandenong Community, Melbourne General, Springvale Botanical and St Kilda cemeteries.

Openings, open days, blessings, talks and tours, festivals, commemorations and celebrations. This was a year that exemplified SMCT’s incredible team spirit and pride in our community engagement.

Southern Metropolitan Cemeteries Trust Annual Report 2013

Introduction 2

The TrusT At a Glance 6

GOVERNANCE AND ACCOUNTABILITY 11

Strategic Priority 1 Financial Performance 17

Strategic Priority 2 Growth 23

Strategic Priority 3 External Stakeholder Engagement 26

Strategic Priority 4 People and the Organisation 31

Strategic Priority 5 Brand Development 37

Strategic Priority 6 Operational Excellence 42

Strategic Priority 7 Information Technology 46

Strategic Priority 8 Land use and Development 49

Strategic Priority 9 Social and Environmental Responsibility 54

Looking ahead 59

Financial Statements 61

Southern Metropolitan Cemeteries Trust Annual Report 2013 1

2013


It is with pleasure that we present the third Annual Report for the Southern Metropolitan Cemeteries Trust (SMCT).With the emergence of SMCT as a firmly client-centric, commercially focused organisation, the past financial year has seen a significant period of business-renewal and growth in line with our Five Year Strategic Plan (2012-2016) and our enduring commitment to our communities.

The period has also witnessed the first year of SMCT’s Annual Plan, which cascades down from the Strategic Plan and, with our nine overarching Strategic Priorities, forms the foundation of SMCT’s future growth. We have been continually focused on SMCT’s long-term objective of ensuring business sustainability, with a significant emphasis on understanding and servicing our communities and developing key stakeholder strategies, all of which contributed to achieving a higher than anticipated operating revenue result.

By continually focusing on research and consumer insights during this period, we remained relevant to our communities and provided them with more reasons to visit and memorialise. Understanding that community needs are the cornerstone of what we do, this is a key focus moving forward.

The reporting period was the first complete year of our five-year Strategic Plan and related Financial Plan, the foundations of which are now firmly established for the future. With an aligned client-centric culture at the heart of all we do, SMCT is now in a position of strength to ensure long-term viability.

Introduction

Sue Renkin Trust Chair


Significantly, during the 2012/13 financial year, SMCT achieved an income of $6.7million above budget and this outstanding result is largely attributed to our progressive cultural change, enhanced stakeholder engagement and to our vastly improved product and services offering. The highlights of the financial year included:

• A significant increase in revenue, particularly in relation to above budget sales of mausoleum crypts and grave stock.

• The consolidation of SMCT’s market position in relation to cremations.

• A continued focus on the sale of pre-need services.

• A significantly improved food and beverage function offering.

• A refurbishment of our café, function and chapel facilities.

• A determined focus on customer service and brand alignment.

SMCT’s nine overarching Strategic Priorities

1. Financial Performance

2. Growth

3. External Stakeholder Engagement

4. People and the Organisation

5. Brand Development

6. Operational Excellence

7. Information Technology

8. Land Use and Development

9. Social and Environmental Responsibility

With a focus on our key priorities, additional highlights included:

• Significant advances in our digital communications and the launch of our nine world-class websites, with each website representing the core brand identity of the location whilst providing comprehensive information and links to all stakeholders.

• The development of a best practice Stakeholder Engagement Charter following an external assessment of our performance and industry services, whereby key stakeholders (employees, government, funeral directors and clients) provided critical feedback.

Jonathan Tribe CEO

3

• Enhanced stakeholder engagement through the establishment of SMCT’s Southern Aging Forum (SAF) and extensive consultation with our Asian, Italian, Sikh, Baha’i, Hindu, Russian Orthodox and Greek communities and our continued consultation with the Sisters of St Joseph.

• The development and finalisation of the architectural plans for Springvale Botanical Cemetery’s (SBC) new Central Precinct Master Plan, which includes seven new function rooms, anchor café and administration building, enhanced client and employee amenities and the new customer-facing building, which is scheduled to be completed in November 2014.

• The construction of three new mausolea at Cheltenham Memorial Park (CMP), named Saint Mary of the Cross, Saint Francis of Assisi and Blessed Mother Teresa. The CMP mausolea project was completed on time and on budget and exceeded revenue expectationsby $1million. Archbishop Denis Hart blessed the mausolea in May 2013.

• In line with our five-year strategic objectives, the existing Necropolis Café was brought in-house, renamed Café Vita et flores (life and flowers) and the interiors and exteriors significantly refreshed. The quality of the café and function room food and beverage offering was also vastly improved, as were service levels, to align with our brand.

• Aligning with our five-year strategic plan to demystify cemeteries, Springvale Botanical Cemetery and Dandenong Community Cemetery, in collaboration with the Friends of Dandenong and community groups, held Open Days to welcome the community into our locations.

• The launch of the 6th annual Open House Melbourne was held at Melbourne General Cemetery’s lower ground level of the Saint Mary of the Cross mausoleum. This event was a huge success with over 150 invited guests meandering through the MGC’s Prime Ministers Garden, greeted by ‘Prime Ministers’, Sir Robert Menzies, Sir John Grey Gorton and Harold Holt. Tours of the heritage listed Gatehouse Lodge were conducted by our resident historian, Dr Celestina Sagazio with exceptional catering provided by our very own Café Vita et flores.

• The formation of a new Trust sub-committee to work with the Executive Team on reviewing major capital projects, including SMCT’s Central Precinct Administration Building and also the commencement of Master Planning for Bunurong Memorial Park (BMP). BMP will be the replacement for Springvale Botanical Cemetery (SBC) once SBC’s saleable life is completed.

• A more sophisticated Sales and Marketing approach across all SMCT locations, which resulted in a significant increase in revenue, with targeted interaction with the community and innovative products and services offered, aligned to specific community needs.


2013

• The facilitation of Vision and Values focus groups throughout the organisation, to reinforce the importance of our customer-centric culture and, importantly, our commitment to each other to live by our values and to keep each other accountable.

• During FY 2012/13, the Department of Heath conducted a review of the cemetery reforms that occurred in March 2010. This review was conducted by Professor Anona Armstrong, who focused on Class A Cemetery Trusts and their governance and alignment to the reforms. The review was also conducted to identify potential future reforms.

• A Ministerial Advisory Committee is being established by the Minister for Health and SMCT hopes that the Ministerial Advisory Committee will harness the impetus for reform, in line with legislative changes in Western Australia, South Australia and New South Wales.

Thank you to the Victorian Department of Health (DH), which has provided invaluable guidance and feedback on the Act and the governance of SMCT. The Trust has a strong relationship with DH, based on mutual respect, and will continue to work with the Department in charting the course forward so that long-term financial sustainability can be achieved.

We would also like to thank the outgoing Trust Members who have greatly assisted in guiding the strategic direction of SMCT over the past three years, Fiona Bennett (Former Chair of the Risk and Audit Committee), Ian Pollerd and John Saddington, who have all made a significant contribution across the business.

We thank and acknowledge our employees, who have worked tirelessly to ensure that excellent standards are maintained across the business and focus on providing an exceptional level of customer care. Your commitment to SMCT is highly valued.

In closing, we thank our current Trust Members and our executive, who have guided us in the transformation of SMCT and ensure that the products and services we offer to our communities, are world-class. We also thank you for ensuring that our client families receive the ultimate respect and consideration when entrusting their loved ones into our care.

With the past year exceeding all expectations, we embrace the new financial year with great vigour and focus, with SMCT’s ongoing commitment to honouring and celebrating life.

Sue Renkin Trust Chair

Jonathan Tribe CEO


2013


The Southern Metropolitan Cemeteries Trust (SMCT) was created under the Cemeteries & Crematoria Act, 2003 as amended. Since 1 March 2010, SMCT has been responsible for the cemeteries previously under the governance of the Trustees of the Necropolis Springvale and the Cheltenham & Regional Cemeteries Trust. SMCT’s corporate office is located within the grounds of Springvale Botanical Cemetery, Princes Highway, Springvale, Melbourne, Victoria.

SMCT is a not-for-profit organisation accountable to the Department of Health and is responsible for the care and maintenance of eight distinctive cemetery locations dedicated to:

Honouring and celebrating life

the trust at a glance

MelbourneCBD

2013


We will set the standard by providing our communities with world class services and facilities across every aspect of our business.

We will also create and nurture sustainable, beautiful, iconic and distinctive locations to honour and celebrate life.

Our Vision

PASSIONRESPECTINTEGRITYDEDICATIONEMPATHY

commitment in heart and mind

by valuing every voice

doing what is right

to the needs of our clients and our people

to listen and reflect with sensitivity

PRIDE IN OUR VALUESAt each and every cemetery within our care we pledge to each other and to our clients that we will act with PRIDE.


SMCT is governed by a board of eight committed Trust Members reporting to the Minister for Health, the Hon. David Davis MP through the Cemeteries & Crematoria Regulation Unit of the Department of Health.

Trust Members hold office for a period not exceeding 3 years and are eligible to apply for reappointment. All appointments are made by the Governor-in-Council on the recommendation of the Minister.

As all SMCT Trust Members’ terms expired in March 2013, the Department conducted a scheduled appointment process. Subsequently, three Trust Members departed and three new Trust Members were appointed for a 3-year term. The remaining Trust Members were reappointed until August 2014.

Trust Chairman, Sue Renkin was appointed for a further 3-year term.

SMCT wishes to thank and acknowledge the immense contribution, guidance and professionalism provided by outgoing Trust Members, Fiona Bennett BA (Hons), FCA, FAICD, FAIM, Ian Pollerd B.Ed.Bus.Stud., B.Ed.Admin., Grad.Dip.Ed.Admin., Dip.Crim., AICD and John Saddington.

We welcome new Trust Members, Julie Busch, Phillip Davies and Felicity Frederico who have already made significant contributions to the implementation of SMCT’s Strategic Plan and priorities.

Our Trust Members• Trust Chairman - Sue Renkin, BBS, MBA, Grad.Dip.Corp.Gov., MAICD, FCDA.

• Julie Busch, BA, Grad.Cert.Shop.Cen.Man.

• Phillip Davies, LLM (Monash), LLB (Hons), BA (Hons) Melbourne

• Felicity Frederico, BBus (Mktg), MAICD

• Susan Heron, Dip.App.Sci., B.Eco.

• Richard Jones, MBus., Grad.Dip.Bus.Tech., FCPA, ACSA, AFIN.

• Gaye Mason, MBA, Grad.Dip.App.Corp.Gov., Grad.Dip.App.Info.Sys., B.Bus. (Acct)., FCPA, FAICD, ACSA.

• Stephen Shipp, B.Ec., LL.B.

SMCT TRUST MEMBERS

2013


SMCT ORGANISATIONAL STRUCTURE

Chief Executive OfficerJonathan Tribe - BA, MAdmin.

The Southern Metropolitan Cemeteries Trust

Minister for HealthDepartment of Health

Chief Operating Officer

Jane GroverGradDip.Man Victoria University,

Dip.HospMGT. Drysdale House (Vic) GAICD

.Facility Master Planning.Design & Documentation.Horticulture.Maintenance/Trades

Infrastructure Planning, Development & Maintenance

Terry KingDip. Build. & Const Vic., PG

Dip. Proj. Man. Vic

Finance & Business Services

Vince SalvatoreB.Com. Melb.,

GradDip.Acc. Monash., ASA

Human Resources

Wendy TanseyBapsych. Monash,

GradDipHRM. Deakin, MBA. Deakin, CAHRI .Recruitment.Training.Learning & Development.Policy.ER/IR

.Sales.Marketing.Consumer Insights.Cemetery Operations- Brighton General Cemetery- Bunurong Memorial Park- Cheltenham Memorial Park- Cheltenham Pioneer Cemetery- Dandenong Community Cemetery- Melbourne General Cemetery- Springvale Botanical Cemetery- St Kilda Cemetery.Cafe Vita et flores.Events.Functions.Chapels

.Information Technology.Accounting.Finance.Telecommunications.Procurement.Records Management.Risk Management

Client Facing Services

2013

Corporate Support Departments


During the reporting period SMCT performed 12,161 services.

Services Performed during the Reporting Period 1 July 2012 – 30 June 2013

Cremation 8,917 Interment in graves 3,045 Interment in mausolea 199

Cemetery Life CycleThe eight cemetery locations within our care vary significantly in terms of size, facilities and services offered. Importantly, they also vary significantly in terms of their position within the ‘Cemetery Life Cycle’. Some locations have vast spaces with many positions available, whilst others have less space with fewer positions available and limited capacity to generate revenue. As a community oriented organisation, the Trust’s charter requires it to generate sufficient funds to ensure that all eight cemeteries will be maintained in perpetuity. In order to achieve this, a percentage of revenue generated is securely invested into a Preservation Fund.

STRATEGIC PRIORITIESSMCT’s Strategic Plan 2012 – 2016 was developed by the Trust and Management Team to provide a clear focus for the organisation and is used to establish our Annual Plans and Objectives. The Plan has nine overarching Strategic Priorities, which are identified as being critical to the successful achievement of our longer-term objectives.


2. Growth








The structure of this report follows our nine Strategic Priorities, however, due to the importance we place on strong Governance and Accountability, the first section outlines our enduring responsibilities with regard to the effective and efficient management of the cemeteries within our care.

Established 1 March 1854 1995 1933 1865 1857 1852 1901 1855 2010Hectares 379 hectares 12 hectares 101 hectares 20 hectares 3 hectares 4 hectares 43 hectares 169 hectares 7 hectares (945 acres) (30 acres) (251 acres) (50 acres) (5 acres) (11 acres) (106 acres) (422 acres) (18 acres)Employees FTE 230.1 3.6 20.2 14.7 0.0 0.0 12.7 176.9 2.0Number of Cremations 8,917 N/A 1,920 N/A N/A N/A N/A 6,697 N/ANumber of Interments 3,244 106 347 331 24 35 203 2,184 14Operating Revenue $47,781,391 $1,236,694 $6,022,791 $4,082,503 $136,652 $176,842 $5,346,929 $30,441,274 $337,706

CommunityEvents Held - Yes Yes Yes No No Yes Yes Yes

Southern Brighton Bunurong Cheltenham Cheltenham Dandenong Melbourne Springvale St Kilda Metropolitan General Memorial Memorial Pioneer Community General Botanical Cemetery Cemeteries Cemetery Park Park Cemetery Cemetery Cemetery Cemetery Trust

Profile and Performance of SMCT Locations


GOVERNANCE AND ACCOUNTABILITY

2013

Southern Metropolitan Cemeteries Trust (SMCT) is a not-for-profit, community-orientated organisation, providing burial, cremation and memorialisation services for metropolitan Melbourne and Victoria.It is responsible to the Minister for Health, the Hon. David Davis, MP, who has entrusted SMCT to govern Brighton General Cemetery, Bunurong Memorial Park, Cheltenham Memorial Park, Cheltenham Pioneer Cemetery, Dandenong Community Cemetery, Melbourne General Cemetery, Springvale Botanical Cemetery and St Kilda Cemetery.

SMCT recognises that strong governance and accountability are the cornerstones of effective and efficient management and understands its responsibility to the community in relation to the management of the cemetery locations.

The Trust is also mindful of previous reviews of the industry by the State Services Authority (June 2007) and the Victorian Auditor General’s Office (July 2006) and conscientiously ensures adherence to all governance requirements.

The Trust has an ongoing responsibility for:

• Setting the strategic future direction of the cemeteries.

• Ensuring that governance arrangements are established, including the effective and efficient management of finances and physical assets to protect the public interest.

• Ensuring its statutory and regulatory obligations are met.

• Reviewing the activities, products, services and management of the cemeteries in accordance with community expectations.

As a reflection of these responsibilities, the organisation is managed in an accountable and responsible way through an effective corporate governance framework. This ensures that SMCT’s services reflect the community’s changing needs and aspirations and are delivered in a manner that is affordable, sustainable and represent value for money.


SMCT fully recognises its perpetual maintenance obligations.

Through a corporate governance framework, SMCT:

• Understands its role and responsibilities.

• Places the customer at the forefront.

• Recognises the importance of stakeholder engagement to collaboratively build business.

• Aims to identify and minimise risks to support the drive for continuous improvement in service delivery.

• Meets legal, ethical and statutory obligations.

SMCT’s Corporate Governance Practices SMCT’s corporate governance practices include:

• Transparent and accountable management processes.

• Decision making which is ethical, fair and equitable.

• A priority on stakeholder and community engagement.

• Sustainable planning, financial management and service delivery.

• Outcome based performance management.

• Prudent management of information.

• Considered identification of risk and management of its mitigation.

• Diligent and ongoing commitment to legislative compliance and internal controls.

During the reporting period the board usually met each month to oversee the governance and strategic direction of SMCT. The Trust’s focus is on strategic planning, business development, risk management and governance. The Trust also reviewed the performance of the management team, measuring results against business plans and strategic objectives, ensured legal compliance and monitored financial performance.

Committee meetings were held separately. Trust and Committee meetings were closed to the public and minutes were confidential.

TRUST COMPOSITIONDetails of Trust Members who held office during the year are listed in this report under the section ‘Trust at a Glance’. The composition of the Trust reflects the broad expertise required to oversee SMCT’s affairs.

INDEPENDENCE OF TRUST MEMBERSEach year, Trust Members and executive management are required to complete a Declaration of Pecuniary Interest statement. There is a Code of Conduct Policy for members and employees. Declarations of conflict of interest were required at the beginning of each meeting.

TRUST COMMITTEESIn consultation with the Trust, the Chair allocated members to a number of Trust committees.

Except when given powers by the Trust, these committees help to execute Trust responsibilities in a review or advisory capacity. Meeting frequency is outlined in the committee’s respective Charters. Each committee has a Charter and self-evaluates its performance.

Audit and Risk Committee The Audit and Risk Committee, chaired by Gaye Mason, has an advisory role, assisting the Trust in fulfilling its governance and compliance responsibilities of risk management, financial reporting, legislative compliance, internal controls and audit functions.


* Trust member’s term expired 28th February 2013 **Trust member’s term commenced 1st March 2013 #The first column for each member indicates the actual number of meetings during their time on that committee. The second column reflects the number they actually attended. Trust members are welcome to - and often attend - other committee meetings.


Finance and Investment Committee The Finance and Investment Committee, chaired by Richard Jones, has an advisory role, assisting the Trust in fulfilling its financial management, planning and major financial decision making functions. The establishment of a Finance and Investment Committee does not release the Trust from its responsibilities.

Community Advisory Committee (CAC) SMCT’s Community Advisory Committee (CAC) was established in accordance with the Cemeteries and Crematoria Act 2003 and its purpose is to provide advice and guidance to SMCT in carrying out its community engagement and participation responsibilities.

The CAC meets bi-monthly and comprises 10 members. Chaired by Julie Busch, CAC’s expertise is drawn from local and state government, interfaith networks and key multicultural, religious and historical organisations.

Executive Remuneration and Appointment CommitteeThe Executive Remuneration and Appointment Committee, chaired by Julie Busch, has an advisory role assisting the Trust to fulfill its functions of executive remuneration and performance management.

Infrastructure Planning Committee As a key imperative of SMCT’s Strategic Plan (2012 – 2016) is to review SMCT’s current land holdings and to develop master plans for each location, SMCT’s Infrastructure Planning Committee was formed during the reporting period. Chaired by Stephen Shipp, the committee has an advisory role assisting the Trust in fulfilling its infrastructure planning and major capital works projects.

PERFORMANCE EVALUATIONThe Trust has a policy of regularly reviewing Trust and committee performance. A formal self-assessment is conducted annually to measure effectiveness against specific objectives. As part of a continuous improvement program, the assessment results are reported back to the Trust and relevant committee. Necessary modifications are then made to the Committee Charter or to meeting procedures.

11 11 11 10 11 9 11 11 11 11 7 6 7 6 7 3 4 4 4 4 4 41 1 1 1 1 0 1 1 1 1 1 0 1 0 1 0 1 1 1 1 1 14 4 1 1 3 3 1 1 3 3 3 3 1 1 1 1 4 3 1 1 4 4 2 2 11 10 7 5 11 8 4 5 7 6 7 6 4 3 4 4 2 2 2 2 2 1 2 2 2 1 1 1 1 0 1 1 1 130 29 27 22 25 18 21 22 22 21 11 9 19 16 13 7 11 10 10 10 7 7

S. Renkin S.Shipp S.Heron R.Jones G.Mason *I.Pollerd *J.Saddington *F.Bennett **J.Busch **F.Frederico **P.Davies

Trust

Extraordinary Trust Meeting

Audit & Risk Committee

Community Advisory Committee

Finance & Investment Committee

Executive Remuneration & Appointment Committee

Infrastructure Planning Committee

TOTALS

Participation within Scheduled Meetings# Period: July 2012 – June 2013


MANAGEMENT COMMITTEESTo ensure appropriate governance and to enhance both vertical and horizontal communication, a number of committees, comprising management and employees, met regularly during the reporting period. A copy of the minutes of the Employee Risk Management and the Workplace Heath and Safety Committees are submitted to Trust on a monthly basis.

Risk Management Committee During the reporting period, the Committee met monthly to identify, monitor and review risks and to implement mitigation strategies. The General Manager Finance and Business Services chairs this committee to escalate any new or outstanding business risks to the Executive. The Committee follows the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines.

During the period, the VMIA conducted a Risk Framework Quality Review and the Committee has subsequently implemented recommendations made.

Workplace Health and Safety Committee This Committee met eleven times during the reporting period to ensure that SMCT exceeded its obligations under the Occupational Health and Safety Act 2004 to consult with employees regarding occupational health and safety risks and controls. Please refer to Strategic Priority 4, People and the Organisation, for further WHS initiatives implemented during FY 2012/13. The General Manager Finance and Business Services chairs this committee to escalate any new or outstanding WHS risks to the Executive.

Business Continuity Management Steering Committee The Business Continuity Management Steering Committee met quarterly during the period to review the currency of the Business Continuity Management Plans.

Furthermore, the Risk Management Committee has included Business Continuity Management as a permanent agenda item at its meetings, with particular emphasis on disaster recovery plans and tests. These form part of SMCT’s obligations to the Minister for Finance’s Directions under the Financial Management Act 1994 relating to Risk Management and I.T. Business Continuity.

Emergency Planning Committee SMCT complies with the Australian Standard AS 3745-2010 - Planning for emergencies in facilities.

During the period, the Emergency Planning Committee reviewed Emergency Planning procedures and arranged evacuation exercises. The Committee considered training requirements for the Emergency Control Organisation, including First Aiders and Wardens and relevant employees from all occupied locations were trained accordingly.

The Committee consulted with relevant employees and adopted a ‘buddy’ system to account for and assist staff with disabilities during an evacuation.

IT Steering Committee The IT Steering Committee convened quarterly during the reporting period. The committee reviewed the progress of planned IT projects and initiatives identified within the five-year IT Strategy and the subsequent Annual Plan. It also provided a forum for, and considered updates on, any significant IT issues or risks with an impact on business operations.

Consultative Committees SMCT’s four Consultative Committees provided forums for open communication between management and employees and facilitated Enterprise Agreement negotiations. In total, the Consultative Committees met 35 times during the reporting period.

MANAGING RISK

COMPLIANCEThe principle guiding Act for the cemeteries sector is the Cemeteries and Crematoria Act 2003. The Department of Health published the revised Manual for Victorian Class A Cemeteries Trusts in April 2013 that explains the Act and details practical guidelines for staff.

Relevant Procedural documents cross reference the Act to ensure compliance.

Building Act 1993 All new work and redevelopment of existing properties conform to the Building Act 1993, the Building Regulations 2006 and the Building Code of Australia (BCA). Management reviewed and signed the Annual Safety Measures Compliance Report in June 2013.

Freedom of Information Gillian Kearns (Risk, Compliance and WHS Manager) was the Principal Officer for FOI requests during the reporting period. There were no Freedom Of Information (FOI) requests or responses from July 2012 to June 2013 and the FOI annual report was submitted to the Victorian FOI Commissioner in June accordingly.

National Competition Policy SMCT complies with the Code of Practice Relating to the sale and supply of memorialisation goods and services by cemetery trusts and other alternative suppliers in Victorian public cemeteries, facilitated by the Department of Human Services. This Code promotes a fair and equitable environment for the supply of such goods and services and ultimately benefits purchasers.

Victorian Industry Participation Policy (VIPP) SMCT is required to comply with the provisions of the VIPP relating to considering competitive local suppliers, including SME’s, when awarding contracts valued at $3 million or more in metropolitan Melbourne. During the period there was one such contract, which was awarded in March 2012. Please refer to the table below for details.


No. of Value of Area Local FTE Jobs FTE Apprenticeships Skills/Technology Contracts Contracts Content Committed Committed Commitment

1 $3,957,121 (3 year

agreement)

Metropolitan 100% 5 retained 1 Contractor has made commitments to up skill workforce, which is clearly demonstrated by the Apprenticeship/Trainee staff addition.

Southern Metropolitan Cemeteries Trust

Risk Management Attestation

For the 12 month period ended 30 June 2013

I, Sue Renkin, certify that the Southern Metropolitan Cemeteries Trust has risk management

processes in place consistent with the Australian/New Zealand Risk Management Standard and

an internal control system is in place that enables the executive to understand, manage and

satisfactorily control risk exposures.

The SMCT Trust verifies this assurance and that the risk profile of the Southern Metropolitan

Cemeteries Trust has been critically reviewed within the last 12 months ending 30 June 2013.

Sue Renkin

Trust Chairman

23 July 2013


Procurement SMCT’s purchasing policy and associated purchasing procedures are consistent with the Victorian Government Purchasing Board rules and comply with the Victorian Public Sector values, principles, codes and standards. To ensure risk mitigation in relation to procurement at all levels, SMCT assesses relevant specifications within SMCT’s Financial Delegation Authority structure.

In delivery of purchasing services, SMCT business transactions are fair, open and demonstrate the highest levels of integrity and probity, consistent with the public interest.

Privacy Legislation SMCT reviews it practices and implements and maintains privacy training programs in accordance with The Victorian Information Privacy Act 2000.

Whistleblowers No disclosures as defined by the Whistleblowers Protection Act 2001 were made during the reporting period.

Declarations of Pecuniary Interests Trust Members and the executive staff have completed declarations of pecuniary interests.

No shares are held by Trust Members or executive employees as nominees or held beneficially in a statutory authority or subsidiary.

There are specific disclosures in the financial statements (see index).

INFORMATION CATEGORIES SMCT manages two categories of information in both hardcopy and electronic formats; corporate and client. Client information is comprehensively managed in a client relationship management system and includes burial, cremation and memorial information. Corporate information is currently managed through networked drives and includes governance, financial and administrative information.

Access to Information Client information held by SMCT is made available to the public under the provisions of the Cemeteries and Crematoria Act 2003.

Corporate information held by SMCT is made available to the public subject to the provisions of the Freedom of Information Act 1982.

All information requests are subject to the Information Privacy Act (Vic) 2000.


Strategic priority 1 Financial Performance

2013

Following the formation of the Southern Metropolitan Cemeteries Trust (SMCT) in March 2010, SMCT went through a year of transition (FY 2010/11), followed by a year of significant organisational change and consolidation (FY 2011/12).The outstanding results of the FY 2012/13 period are a direct reflection of SMCT’s progressive cultural change, with a client-centric focus to business and incorporating commercial principles into decision making processes. Key drivers of this success are also attributed to the core strategic objectives of generating pre-need sales, enhanced vision and values, improved brand awareness and enhanced stakeholder engagement.

In addition to the long-term financial viability of SMCT, the Trust continues its obligation to provide innovative products and services that meet the diverse needs of the multicultural communities that we serve. This comes from the realisation that a sustainable financial platform will be dependent on a sustainable revenue base derived from innovation and cultural relevance.

Financial Report

The financial report covers a 12 month reporting period 1 July 2012 to 30 June 2013 with last year’s comparative numbers covering a 12 month period from 1 July 2011 to 30 June 2012.

Financial PerformanceRevenue from cemetery operations generated $52.2 million, with expenditure from cemetery operations amounting to $31.1 million, thereby generating an operating result of $21.1 million. This is after the impact of the payment of the 3% cemetery levy to the Victorian Government of $1.7 million.SMCT investments have increased by $24.2 million to $174.4 million, largely due to the improving current economic climate. Even with this improvement, there is still an element of uncertainty. The unstable nature of the share market has led to SMCT deeming it prudent to hold larger than usual cash reserves to invest in short term deposits.


In terms of cemetery operations, revenue during the period was $41.8 million (after Cost of Goods Sold) with major revenue streams being:• Sales of graves contributing around 34.2% or $14.3 million of total income.• Mausoleum sales representing 22.7% of total income ($9.5 million).• Cremation revenue contributing $6.1 million, reflecting that the cremators at Bunurong Memorial Park (BMP) and Springvale Botanical Cemetery (SBC) performed nearly 59% of metropolitan Melbourne’s cremations during the year.

• During the period of operations, the continued focus on the sale of pre-need services has resulted in unearned income increasing by $3.0 million to $24.4 million. The operating expenses (excluding cemetery levy and investment management fees) amounted to $28.2 million, of which nearly 40% is represented by salaries and wages. During the financial year the expenditure on capital works and projects amounted to $6.6 million. Major capital works during the period included the new Mausoleum at Cheltenham Memorial Park (CMP), the continued works at SBC’s Song He Yuan and further works in the Fushou Yuan area at BMP.


Summary of Financial Results for the Past Two Financial Periods ($’000)

2012/13 2011/12

Operating Statement Income from Transactions $47,781 $46,979Cost of Goods Sold ($5,995) ($6,451)Resources received free of Charge $0 $0Investment Income $10,428 $7,539Expenses from Transactions ($29,375) ($28,092)Cemetery Levy ($1,737) ($1,642)Operating Result $21,103 $18,333Other Comprehensive Income/(Loss)* $17,334 ($20,520)Comprehensive Result for the Period $38,437 ($2,187)Balance Sheet Assets Investments/Investment Property $177,091 $152,873All Other Assets $107,100 $91,326Total Assets $284,191 $244,199Liabilities Unearned Income $24,408 $21,354All other Liabilities $8,677 $10,176Total Liabilities $33,085 $31,530Equity Perpetual Maintenance Reserves $175,767 $155,671Other Equity $75,339 $56,998Total Equity $251,106 $212,669

*Comprehensive Income/(Loss) in 2011/12 includes impairment losses on for sale investments and on the revaluation of non-financial assets.


Financial Performance Objectives

Cemetery operations income was $6.75 million higher than budget. The main driver for this result was the sale of mausoleum crypts, especially at the newly opened mausolea at CMP. The other major impact on revenue has been grave sales at Melbourne General Cemetery (MGC) and at SBC.

This excellent sales result has in turn led to a higher than budget cost of goods sold.

Investment income reflects interest ($1.4 million), franking credits ($0.9 million) and the distributions received from SMCT’s investment portfolio ($6.6 million).

Comparison of Actual vs. Budget for the 12 month period ending 30 June 2012 ($000)

Actual Budget Variance

Cemetery Operations Revenue $47,781 $41,029 $6,752Cost of Goods sold ($5,995) ($5,009) ($986)Resources received free of Charge $0 $0 $0Investment Income $10,428 $5,500 $4,928Total Revenue $52,214 $41,620 $10,694 Operating Expenses ($29,374) ($28,499) ($875)Operating Result before Cemetery Levy $22,840 $13,021 $9,819 Cemetery Levy ($1,737) ($1,402) ($335)Operating Result $21,103 $11,619 $9,484

CremationsSMCT performed almost 0.8% more (an additional 69) cremations than target, which is believed to be due to positive working relationships with our industry partners.

IntermentsInterments were 1.4% higher (an additional 44) compared to the performance target objective.

Budget/TargetActual Variance

8,848

69

8,917

Operational Performance Objectives

8,552

289

2012- 2013 2011 - 2012

8,841 3,2403,200 3,916

44 (676)

2012- 2013 2011 - 2012

3,244


Cremation Memorial Sales Cremation memorial sales were 1.5% below the budgeted revenue target, however exceeded actual revenue from the FY 2011/12 period by $125K. Encouraging client families to memorialise within cemetery grounds will be a key focus moving forward.

Cremation Conversion Rate The cremation conversion rate is a percentage measure of the number of memorials arranged against the total number of cremations performed during the year. For the FY 2012/13 period the conversion rate was 24.4% (2.3% below budget). Given cremation numbers have increased and cremation memorial revenue is almost at budget, the decrease in the conversion rate may be due to:• SMCT capturing additional market from outside it geographic boundaries.• The notable increasing trend in public cremations.• SMCT cremating the remains of people who have left their bodies to science. In all three of the above situations, the likelihood of families memorialising within a cemetery is minimal. Extracting the above cremation numbers out of the conversion equation, results in a conversion rate of 25.5% for the period.

Mausoleum Crypt Sales Crypt sales were 52.3% ahead of the budgeted revenue target. This significant result was due to:• The opening and successful release of three new mausolea at CMP.• The sale of exclusive Mausolea Family Rooms at SBC.• Improved sales techniques across all relevant sites, which, combined with the limited stock at SBC, particularly increased sales at BMP.The significant result for FY 2011/12 was due to the release of the Saint Mary of the Cross Mausoleum at Melbourne General Cemetery (MGC).

Grave Sales Graves were 13.8% above the budgeted revenue performance objective as a result of improved sales techniques, which resulted in excellent results at SBC and the historic MGC where an additional 46 graves over the budgeted quantity were sold.

Southern Metropolitan Cemeteries Trust Annual Report 201320 Southern Metropolitan Cemeteries Trust Annual Report 2013

Operational Performance Objectives (cont)

26.7%

-2.3%

24.4%

2012- 2013 2011 - 2012


$5.1M$5.0M

2012- 2013 2011 - 2012


$4.1M

$768K

$4.9M

($0.1M)

28.1%

(0.2%)

27.9%

$3.3M

2012- 2013 2011 - 2012

$6.3M$9.6M


$5.4M

$6.6M$12M

$12.6M

$1.7M

2012- 2013 2011 - 2012

$14.3M


$9.9M

$3M

$12.9M

Southern Metropolitan Cemeteries Trust Annual Report 2013 Southern Metropolitan Cemeteries Trust Annual Report 2013 21

Consultant Nature of services Start Date End Date Total Expenditure Approved

01/07/12 30/06/13 $27,780 $27,780

01/07/12 30/06/13 $23,015 $23,015

01/07/12 30/06/13 $11,300 $11,300

01/07/12 30/04/13 $28,636 $28,636

01/07/12 30/05/13 $16,048 $16,048

01/07/12 30/06/13 $23,920 $23,920

01/07/12 30/06/13 $67,350 $67,350

01/07/12 30/06/13 $16,580 $16,580

01/07/12 30/06/13 $10,500 $10,500

01/07/12 31/05/13 $11,000 $11,000

01/07/12 30/06/13 $75,722 $75,722

01/07/12 30/04/13 $18,825 $18,825

01/07/12 30/06/13 $29,400 $29,400

01/07/12 30/06/13 $20,180 $20,180

01/07/12 30/06/13 $12,400 $12,400

01/07/12 30/06/13 $17,975 $17,975

$410,631 $410,631

Achieve IT

Beveridge Williams & Co.

Blue Connections

B Mohr Consulting & Training

Catch Recruitment

Document Management Consultants

Ellis Jones Consulting

Harwood Andrews

HR Accent

Interface Recruitment

Jo Fisher Recruitment

Loss Prevention Group

National Safety Council

NEM Australia

RSM Bird Cameron

Thomas Duryea Consultants

Total

IT Support & Review

Hydrological Assessment

IT Support & Review

Customer Service & Operations Training

Recruitment Services

Record Management Policy Development

PR/Design

ATO Specific Advice

KPI’s/ Benchmarking Services

Recruitment of Senior Management and Other Specialised Positions

Recruitment of Senior Management and Other Specialised Positions

Security Audit

OHS Audit & Advice

Superannuation & Tax Advice

Accounting

IT Support & Review

Other issues:Ex-Gratia paymentsDuring the reporting period no ex-gratia payments were made.Subsequent EventsThere have been no significant events subsequent to balance date and prior to authorisation for release that require disclosure in the annual report.

Consultants During the 12 months ended 30 June 2013, SMCT engaged a total of 26 consultants where the total fees payable to the consultants were less than $10,000, with total expenditure of $95,242 (excl. GST). Furthermore, the following table outlines where expenditure on a consultant exceeded $10,000.


The Future

To ensure long-term viability, SMCT has a five-year Strategic Plan detailing nine Strategic Priorities and an associated Financial Plan.

The first Strategic Priority, Financial Performance, has the objective of strengthening SMCT’s financial performance and stability by ensuring that the revenue and margins generated by the organisation exceed ongoing operating costs, as well as adequately provide for pre-need commitments and perpetual maintenance obligations.

To achieve this priority in the next 12 months SMCT will:

• Develop a deeper understanding of the relationships between service and maintenance standards, their associated costs and their implications on product pricing.

• Further develop IT and financial capabilities to accurately model current and future financial requirements.

• Conduct ongoing reviews of expenditure to identify cost savings and efficiency gains.

• Continue key engagement strategies to ensure SMCT is able to provide for the changing needs of the community and is positioned to identify future opportunities.

• Utilise its IT and financial capabilities to develop interactive financial modelling software. This software will allow the development of comprehensive five year financial plans by analysing the inter-relationships of capital and recurrent expenditure, stock development, pricing and revenue.

A key strategic priority for the Southern Metropolitan Cemeteries Trust (SMCT) is to research, develop and generate future revenue streams through the introduction of new and innovative products and services, targeting both ‘at-need’ and ‘pre-need’ clients.SMCT recognises that, to grow and evolve our product service offering, we need to invest in ongoing engagement and research to build a deeper understanding of our communities and their changing needs in relation to burial, cremation and memorialisation products and services.

Key to the success of SMCT during the FY 2012/13 period was a continual focus on research and consumer insights and a significantly enhanced level of stakeholder engagement. This led to the provision of improved, innovative and relevant products and services to meet the needs of our diverse communities.

During the reporting period we have successfully engaged and consulted with key community groups and made modifications to existing product and services to meet their needs, for example:

• The planting of culturally significant Birch trees within the Russian Orthodox monumental grave area at Dandenong Community Cemetery (DCC).

• The change in function catering options at Bunurong Memorial Park (BMP) to meet the needs of BMP’s Greek community.

• The introduction of alternative payment plans, under certain circumstances, to meet the needs of some client families.

These seemingly small changes to our current offering have made a significant difference to our client families. However, moving forward, we also aim to launch new and innovative products and services into the market to meet their ever changing needs.

SMCT has made significant in-roads in terms of becoming a client-centric organisation and has dedicated resources to ensure we regularly engage with our key community groups to clearly


Strategic priority 2 growth

2013

The Very Reverend Michael Protopopov, OAM and Father Barnabas of the Russian Ortodox Church at the Dandenong Community Cemetery Open Day, 2013.

understand what is important to them. Key findings have been disseminated throughout the organisation and, where possible, changes made to meet needs.

During FY 2012/13 SMCT began to implement more sophisticated growth strategies. In addition to remaining customer-centric, we are also becoming more marketing-centric. Through our improved understanding of our communities, we not only want to meet their communicated needs but also their latent needs, with the aim of continuously recognising and leveraging opportunities that will generate revenue and ensure the long-term sustainability of SMCT.

During FY 2012/13 there were two clear examples of SMCT beginning to operate in a marketing-centric way.

Launch of SMCT’s New Websites. The launch of the SMCT’s nine world-class websites was crucial in bringing all cemetery locations in line with SMCT’s new brand identity and positioning.

However, we also recognised that the project provided a significant opportunity for us to meet the unexpressed needs of our client families and, therefore, add value. For example, we not only provide online information regarding funeral services for each cemetery each day, we also list the services for the following two days and allow people

to register for updates. When an online visitor registers by supplying their mobile phone number, we will send a text message to them should any key information about the service change. This is a perfect example of providing our community with additional valuable information that was not necessarily requested.

We have also created a comprehensive online product catalogue on each cemetery website that logically groups products into categories, provides pricing and, where possible, provides map references and also allows direct comparison of like products across all SMCT locations. This powerful tool not only provides extensive information to our clients, who are increasingly searching online (24 hours a day, 7 days a week), but also provides our employees with a useful tool to be able to accurately quote any product across any SMCT location, regardless of where they are based.

By taking full advantage of the opportunity to launch a new suite of websites, we have successfully created a powerful lead generation tool that has resulted in significant revenue for the organisation.

In FY 2013/14 we will take the next step in our online strategy by further developing e-commerce opportunities to meet the needs of other key stakeholders, including funeral directors, more effectively.

The Creation of SMCT’s Cafe Vita et flores In order to ensure that the Springvale Botanical Cemetery (SBC) café/florist complemented the new SMCT brand positioning, a decision was made to bring the running of the facility in-house. SMCT saw this as an opportunity to, not only take over the daily running of the facility, but to take full advantage of the opportunity to maximise results.

A new name, Café Vita et flores (‘life and flowers’) and impactful brand identity was created for the new café/florist concept and designs were drawn up to give it a contemporary look and feel, both inside and out.


Over one weekend the entire café, florist and two adjacent function rooms were refurbished to bring them into line with our new brand positioning. In addition we have also:

• Improved the food and beverage offering within both the cafe and function rooms.

• Improved the service levels and up-skilled the Café Vita et flores team.

• Employed a highly qualified head chef to ensure the quality and consistency of the food is maintained.

• Extended seating, both inside and outside into the gardens.

• Modified the offering within the florist to more effectively and efficiently meet visitors needs.

Most importantly we have implemented SMCT’s vision and values into this new area of the business and have seen significant growth in terms of employee engagement and pride in the work they are doing. The team working within Café Vita et flores have taken on a client-centric approach and Café Vita et flores is reaping the rewards. The positive feedback from visitors has been overwhelming.

Moving forward we will continue to refine operations within Café Vita et flores and to invest in the team, in preparation for the completion of the new Central Precinct building, which will house multiple function rooms, a larger cafe and staff dining area.

Generation of Pre–need Revenue Another key area of focus for SMCT has been capturing pre-need revenue. Significant resources have been allocated to educating the community about the advantages of pre-paying with a not-for-profit, community focused cemetery trust, compared to alternative options. Strategies have included key messages clearly displayed on websites, new ‘Planning Ahead’ printed collateral and delivering key messages during community presentations and conducted tours of SMCT locations. Home visits have also been arranged for potential clients who are unable to attend our locations and initiatives have been implemented with the Sales Teams to ensure they are aware of targets and of the importance of leveraging opportunities. Continuing to capture pre-need revenue will be a key focus in FY 2013/14 as it is a vital part of SMCT’s sustainability strategy, as it is a clear demonstration of future commitment and allows for funds to be invested.

The Future Moving forward SMCT will continue to challenge the status quo of the industry by assessing the viability of new and innovative revenue streams and alternative options for potential clients. We believe that it is only through progressive strategic thinking and by maintaining a strong commercial focus that SMCT will identify future growth strategies.

The focus for FY 2013/14 will be on further community engagement, research, assessment and analysis. It is vital that appropriate resources are allocated to gain valuable insights that will guide key decision-making regarding the future growth and ultimately, success of SMCT.

We will also invest in fostering the correct culture within the organisation to ensure that we are nimble enough to respond to opportunities. Through nurturing a positive culture of inclusion and collaboration, SMCT will attract and retain high calibre employees who are fully engaged, living the values and working as a team for the long-term sustainability of SMCT.



The Southern Metropolitan Cemeteries Trust (SMCT) is committed to developing meaningful and enduring relationships through a participatory process with client families, community groups, business partners, government and industry. As a client-centric organisation, we understand that, only by strengthening relationships through open communication and consultation, are we able to provide the best possible service to all stakeholders.

During the reporting period SMCT appointed a consultant to facilitate an external assessment of our performance and industry services. This assisted in framing SMCT’s External Stakeholder Engagement Strategy and provided an impartial review to the Trust. As a result, in December 2012, SMCT’s Stakeholder Engagement Service Charter was developed.

Key to the success of SMCT during the FY 2012/13 period was a significantly enhanced level of stakeholder engagement, which led to the provision of innovative and relevant products and services to meet the needs of our diverse communities.

Increased community engagement was facilitated by the expansion of SMCT’s Consumer Insights Department. This expansion allowed SMCT to conduct community surveys, additional focus groups and further research to understand client purchasing preferences and was used to improve our target marketing.

Additionally, an internal Steering Committee was formed in January 2013, to oversee SMCT’s engagement strategies. The committee’s contribution helps to shape future direction and ensures shared responsibility.

SMCT’s engagement strategies not only focus on the traditional aspects of our organisation but also on encouraging wider community engagement with our eight cemetery locations. With the objective of demystifying our industry and making our

Strategic priority 3 external stakeholder engagement

2013


CAC Committee - Helen Bnads, Jane Grover, Julie Busch (CAC Chair), Jasbir Singh Suropada, Lois Comeadow, Biljana Komnenovic, Michelle Blyth, Narinderpal Singh Bhalla. Absent: Gaye Mason, Susan Parsons, Helen Heath, Maha Sukkar.

cemeteries a focal point for community activity, we have actively encouraged the community to participate in our events and to enjoy our grounds for passive recreation.

Community Advisory Committee (CAC) SMCT’s Community Advisory Committee’s (CAC) purpose is to provide advice and guidance to SMCT in carrying out its community engagement and participation responsibilities and to enable the development of networks with our communities.

The CAC meets regularly and comprises 10 members. CAC expertise is drawn from local and state government, interfaith networks and key multicultural, religious and historical organisations. SMCT greatly appreciates the contributions made by our voluntary members and understands that their invaluable networking capabilities have been pivotal to our success.

During the FY 2012/13 period CAC projects have included Sikh, Baha’i and Hindu Tours of Springvale Botanical Cemetery (SBC) and Bunurong Memorial Park (BMP), regular interfaith workshops for SMCT employees and the production of SMCT’s Multi-Faith Hand Book.

Enhanced community engagement During FY 2012/13, SMCT laid the foundation for a stronger platform of external stakeholder engagement to deliver long-term value to our communities. We subsequently forged relationships with primary peak bodies and numerous communities and industry sectors.

To meet the diverse needs of our communities, SMCT also significantly enhanced engagement with key community stakeholders by:

• Conducting extensive research with members of the Italian community, as primary purchasers of mausolea, to investigate the various nexuses of community life.

• Collaborating with the Sisters of St Joseph in the naming of the Saint Mary of the Cross, Saint Francis of Assisi and Blessed Mother Teresa mausolea at Cheltenham Memorial Park and in the further planning for the provision of graves for the Sisters.

• Consulting with Dandenong’s Russian Orthodox community via the invaluable insights provided by Father Michael Protopopov, head of Dandenong’s Russian Orthodox Church. This was to ensure that Dandenong Community Cemetery’s Russian grave area is reflective of their cultural preferences.

• Conducting focus groups with members of the Asian community, including Sri Lankan, Vietnamese, Cambodian and Chinese Buddhist communities regarding the future development of SBC’s dedicated Asian style cemetery, Song He Yuan.

• Actively engaging with BMP’s Greek Orthodox community who attend weekly services at BMP’s Resurrection of Saint Lazarus Church.

• Conducting tours and presentations for Sikh and Hindu faith leaders and priests at both SBC and BMP to further assist us in understanding their cultural needs.

We continue to make progress in identifying customer satisfaction levels through the analysis of client and visitor feedback surveys. These insights have allowed us to craft a Client Care Charter, which is due for completion in FY 2013/14.

Southern Ageing Forums SMCT’s Southern Ageing Forum (SAF) is a platform for networking and engaging with seniors groups, local government municipalities and aged care providers. It is a podium for the discussion of various age-related issues and provides SMCT with an opportunity to explore and understand the needs of the community’s ageing population.

During the reporting period, SMCT organised two Southern Ageing Forums in August 2012 and February 2013, with the third SAF to be held in August 2013.

Employee training – cultural and religious awareness During the reporting period SMCT’s Consumer Insights Department, in conjunction with several peak bodies, conducted internal multi-faith workshops across all locations with a focus on the Sikh, Hindu and Baha’i faiths. The key objective of these workshops was to make employees more culturally aware so that they are equipped to effectively deliver customised client services to meet our community’s cultural and religious needs.

Community Events and Open Days With the aim of further engaging our community and demystifying our industry, SMCT staged 19 events and two Open Days during the 12-month reporting period. Through positive working relationships with Funeral Directors, Friends Groups and the community, SMCT was able to provide a comprehensive schedule of community events. These included our annual Mother’s Day, Father’s Day, All Souls Day, Police Remembrance and Christmas Remembrance services, including SBC’s moving Children’s Christmas Remembrance service. In addition, the Buddhist community again hosted their annual Ching Ming (Spring) Festival at SBC’s Song He Yuan in May 2013.

SMCT’s ever-popular rose pruning demonstrations were again conducted at both SBC and BMP.

To celebrate Springvale Botanical Cemetery’s diverse communities, SBC hosted a Community Day in October 2012, which showcased an array of multicultural and historical activities for all ages.

In addition, Friends of Dandenong Cemeteries collaborated with SMCT and the community to conduct the inaugural Dandenong Community Cemetery Open Day in February 2013.

It is estimated that approximately 4,620 people attended events conducted by SMCT during the 12-month period.


Ching Ming Festival at Springvale Botanical Cemetery’s Song He Yuan

Old hearse displays at Dandenong Community Cemetery’s Open Day

Melbourne General Cemetery - Open House Melbourne For the first time in 2012, Melbourne General Cemetery (MGC) successfully participated in the fifth annual Open House Melbourne (OHM), a wider community event that showcases Melbourne’s most significant buildings and architecture. Over two days in July, tours were conducted and MGC’s heritage-listed Gate Lodge opened to the general public. In 2013 MGC will again participate and, significantly, MGC’s Saint Mary of the Cross Mausoleum was the chosen venue for OHM’s 2013 launch event in June of this year. With over 150 guests attending, this event provided SMCT with an ideal opportunity to showcase both MGC and also the quality catering offered by SMCT’s Café Vita et flores.

Cemetery Tours During the reporting period, SMCT conducted a total of 40 tours within SMCT locations, including the highly popular night tours of Melbourne General Cemetery and the Historical and Botanical Tours of Springvale Botanical Cemetery.

Each tour conducted by SMCT is tailored to meet the needs of specific community and industry groups. These include high school and tertiary students, local government, funeral directors, celebrants, palliative care providers, Probus groups, local residents, professionals from various industries and interstate and international visitors.

It is estimated that 1,420 people participated in SMCT tours during the period.

Community Recreation In an attempt to further demystify our industry, SMCT actively encourages the community to enjoy our grounds for passive recreation. On any given day you may encounter walking and jogging groups, family picnics, bird watching or horticultural and historical groups enjoying the environment.

Springvale Botanical Cemetery also provides a magnificent backdrop for photography and is often used for wedding photography or filming.

To further encourage clients and visitors to enjoy our facilities, we recently refurbished Springvale Botanical Cemetery’s café and florist, Café Vita et flores, with extended seating and umbrellas into the grounds. This inviting alfresco café/florist concept provides quality food and refreshments seven days a week.

A children’s recreational playground area has also been carefully integrated into the A.J. A.Gardner Children’s Lawn area to provide children with a focal point and to allow parents additional time to reflect and remember.

SMCT Friends Groups SMCT now has four active Cemetery Friends groups, including the Brighton Cemetorians, the Friends of St Kilda Cemetery, Friends of Dandenong Cemetery and the Friends of Cheltenham & Regional Cemeteries.

These groups are made up of committed volunteers who generously donate their time to cemetery related research and initiatives and, in partnership with the community, promote our locations. The work of these groups helps our communities to gain an appreciation of the historical and botanical significance of our distinctive cemetery locations.


The magnificent grounds of Springvale Botanical Cemetery

Launch of Open House Melbourne at Melbourne General Cemetery’s Saint Mary of the Cross Mausoleum

Industry Relationships SMCT continues to strive to achieve strong social, ethical and effective industry relationships by communicating regularly with other Class A Trusts, Class B Trusts, the Department of Health, the Cemeteries and Crematoria Association of Victoria (CCAV) and the Australian Funeral Directors Association (AFDA). The Trust is a member of the Australasian Cemeteries & Crematoria Association (ACCA), attending quarterly meetings and is also a member of CCAV, where we are represented on the committee. In addition, SMCT’s Consumer Insights Manager also participated in the Department of Consumer Affair’s Funeral Industry Round Table.

SMCT’s CEO, Jonathan Tribe conducts annual Class B Forums and we continued to provide assistance to other Cemetery Trusts, including the sharing of research and knowledge, including the distribution of SMCT’s Multi-Faith handbook.

Through SMCT’s involvement with the Australian Funeral Directors Association (AFDA) and the National Funeral Directors Association (NFDA), we also provided guidance and tours to a number of funeral directors throughout the year. SMCT values its working relationships with industry partners and is open to exchanging information and sharing ideas. We have an ongoing commitment to enhance relationships with funeral directors through shared events, regular meetings and meaningful consultation.

During the reporting period both SMCT’s General Manager of Finance and Business Services and SMCT’s Finance Manager were members of the Cemeteries Financial Policy Committee along with representatives from other cemeteries, the Department of Health and the Victorian Auditor-General’s Office. The committee reviews accounting and finance related issues that impact on the cemetery sector.

SMCT’s open and collaborative relationships with industry partners allows for the sharing of best practice knowledge and improved benchmarking, providing SMCT with valuable insights.

The Future SMCT takes pride in comprehensive and in-depth community research projects and understands the importance of gathering further vital information to allow frameworks and models to be developed to meet the objectives for the FY 2013/14 period.

As a client-centric organisation, SMCT recognises the need to drive more investment into our communities and looks forward to further enhancing our engagement with all stakeholders to more effectively deliver long term value to the communities we serve.



The Southern Metropolitan Cemeteries Trust (SMCT) recognises that our people are crucial to our success and acknowledge that this success depends on having motivated, high performing employees, working together to deliver our vision through the achievements of our strategic goals.

During the past 12 months a decision was made to restructure the Human Resources Department and to increase the staffing levels within it. With salaries and wages representing approximately 40% of expenditure, a need to develop a new human resource strategic framework was identified.

With the appointment of Ms Wendy Tansey as General Manager of Human Resources, progress has been made in line with our objectives of fostering our client-centric culture and building SMCT’s reputation as an employer of choice. SMCT is progressively building a culture that is inclusive, empowering and responsive to new ideas, with high levels of autonomy and accountability. This culture aligns with our key strategic focus of attracting and retaining the highest quality employees through ensuring our policies covering recruitment, engagement, reward/recognition and professional development are reflective of SMCT’s priorities.

In order to bring these objectives and strategic focus to reality, a number of initiatives have been put into effect in FY 2012/13. These can be summarised as follows:

1. Bringing Our Values to Life During the reporting period, SMCT conducted a series of Values Workshops to identify what our values really meant to our team and to ensure organisational and cultural alignment. A key element was defining behaviours that would bring our values to life.

Strategic priority 4 People and the organisation

2013

Springvale Botanical Cemetery’s memorial installation team -Chris Gelley Cremation Services Manager, Paul Craig, Mark Ferguson, Rohan Marshall and Trevor Baptist.

Consultation workshops conducted during August 2012 aimed to:

• Identify those behaviours we needed to adopt to ensure we deliver on values.

• Allow employees to have their say regarding what is deemed acceptable behaviour when dealing with colleagues and client families.

The initial workshops were followed by the executive team’s rollout of SMCT’s Vision and Values during a series of road shows conducted during September 2012. Further workshops were then conducted in October and November 2012. These were co-facilitated by managers and HR with 81% of employees attending. Team commitments were identified and ways to ‘measure behaviours’ were agreed. Follow-up conversations with managers indicated a positive commitment to our values and that they are being successfully integrated into the organisation.

2. Diversity Diversity involves recognising the value of individual difference in the workplace. SMCT is committed to building a socially sensitive and responsible organisational culture in which individual differences are valued, respected and understood and, to creating and maintaining a workforce which is representative of our customers and communities.

Over the next three years, SMCT will actively incorporate the principles of diversity within the workplace in all of our practices, embracing the uniqueness of each individual by focusing on cultural diversity, generational differences, disability and flexibility.

Understanding that SMCT clients and stakeholders are from diverse cultural and religious backgrounds, SMCT has completed a workforce profile and surveyed employees to better understand the cultural and religious knowledge held within the organisation. During this process it was discovered that the SMCT workforce reflects this diversity and

many of our employees were willing to put their names on a data register to assist with clients, if needed.

SMCT’s Consumer Insights Department have also conducted multi-faith workshops across all locations, with the key objective of assisting employees to further understand the religious and cultural diversity of our communities and to equip them to more effectively deliver customised client service.

3. Training and Development SMCT understands that, to be successful, we need the right people with the right skills and capabilities in the right positions. In order to achieve this objective we committed to investing in training and development in a number of ways.

a) In May 2013, SMCT appointed its first Organisational Development Manager, Patty Holten, who has commenced work on a skills gap analysis, the development of a leadership capability framework, design of a leadership development program for the next leadership layer and future functional training plans.

b) During the past 6 months, a long-term Leadership Development Program was established. The first group completed their course in May 2013 with a presentation to the executive team. The participants are continuing to embed their learnings with ongoing coaching and mentoring.

c) During the reporting period SMCT developed online induction training to provide a more flexible and adaptable training offer to meet the needs of our growing organisation. Feedback regarding the online module has been positive and the move to online training has been successful.


d) With the assistance of the National Safety Council of Australia, SMCT also increased the variety of WHS training and development given to employees. Compared to the previous reporting period, we have significantly increased the amount of WHS & License training from 330 to 371, as well as increased Risk & Compliance training from 10 to 39 and Privacy training from 38 to 92 occurrences.

e) In 2012 SMCT enjoyed another year of successful partnership with Holmesglen TAFE, with the successful completion of Certificate III Horticulture and Certificate III Gravedigging. Both courses were held with exceptional numbers and we are looking forward to continuing this relationship.

4. Conditions of Employment SMCT is committed to offering employment conditions to employees which are fair, equitable and sustainable for the organisation. Accordingly, individuals are employed under an Enterprise Agreement (EA), Award or Government Business Enterprise (GBE) Contract basis.

During the reporting period, negotiations were held to combine The Southern Metropolitan Cemeteries Trust, Bunurong, Brighton & Cheltenham Enterprise Agreement 2010, The Southern Metropolitan Cemeteries Trust Melbourne & St Kilda Enterprise Agreement 2010 and The Southern Metropolitan Cemeteries Trust Springvale Enterprise Agreement 2010. Negotiations are still on going as at 30 June 2013.

5. Workplace Health and Safety During the year, SMCT engaged the National Safety Council of Australia to review its WHS Framework that was conducted in consultation with management and staff. A comprehensive Safety Management System was implemented, WHS Awareness training was rolled out and all documents made available to staff on the Intranet. These are under constant review as staff utilise the system in their daily work activities. Their feedback provides a measure for continuous improvement as required under Strategic Priority 6, Operational Excellence, within the Strategic Plan. A revamped WHS Committee utilises this framework to oversee the WHS program across all sites.


Award 21The Southern Metropolitan Cemeteries Trust, Bunurong, Brighton & Cheltenham Enterprise Agreement 2010 20GBE Contract 69The Southern Metropolitan Cemeteries Trust Indoor Enterprise Agreement 2011 56The Southern Metropolitan Cemeteries Trust Melbourne & St Kilda Enterprise Agreement 2010 12The Southern Metropolitan Cemeteries Trust Springvale Enterprise Agreement 2010 77Total 255

Terms Of Employment Number of EmployeesTraining FocusJuly 2012 to June 2013

Area of Study Number of Participants

Computer Applications 35WHS & Licences 371Professional Development 26Risk & Compliance 39Workplace Responsibilities, 215Compliance (Privacy, Sustainability) 92

A further obligation imposed on SMCT by the Occupational Health and Safety Act 2004 is to ensure that all contractors and service providers working at SMCT locations do so in a safe manner and do not place themselves, members of the public, other contractors or SMCT employees at risk.

Prior to engagement, all service providers are required to submit evidence that safety management systems are in place, including appropriate insurances. Once completed, SMCT performs site inductions and any hazards and controls associated with the proposed work are identified and documented. There is an obligation for one audit at a minimum to be conducted during the course of the service engagement. Contracts spanning more than one year are to be audited annually, including confirmation that insurances remain current.

6. Staff Recognition SMCT’s annual Bill Harry Employee of the Year Awards was held on 14 June 2013.

Bill harry was a previous member of The Necropolis Trust, 1998-2003, who took a particular interest in employees and their development. His service is recognised in these awards.

Consistent with previous years, these awards give SMCT employees the opportunity to nominate their peers in a number of categories, with special awards given, recognising outstanding employees who have demonstrated SMCT values. The award categories are:

• Behind the Scenes – recognises a hard working employee who may not necessarily be in a prominent position, but gets the job done well, which in turn assists others in their roles. • Dedication and Commitment – recognises an employee who consistently displays these highly valued attributes. • Optimism – recognises an employee who has been particularly optimistic and who influences other employees. • Chairman’s Award – recognises an employee who demonstrates the SMCT values and regularly goes “above and beyond”.


OH&S Performance Indicators* July 2012 to June 2013

Number of Lost Time Injuries 9 8

Number of Lost Time Days 328 347

Wages Paid to Injured Employees $54,313 $55,266

SMCT Worksafe Insurance Premium Rate 1.81% 1.86%

SMCT Indicative Performance Rating 0.61 0.66

Worksafe Average Industry Premium Rate 2.95% 2.82%

SMCT Performance Rating Compared with the Industry Average 38.63% 34.01%

better better

* data includes lost time days or wages paid for injuries occurring in previous periods

# before Workcover reimbursement

#*


Behind the Scenes Adam Royans Plumbing Coordinator Springvale Botanical Cemetery

Dedication and Commitment Nadine Slattery Client Services Consultant Springvale Botanical Cemetery

Dedication and Commitment Melissa Alexander Online Communications Coordinator SMCT

Optimism Ashlea Browne Client Services Consultant Springvale Botanical Cemetery

The Chairman’s Award Phil Marriner Gardener Springvale Botanical Cemetery

Winners of the Bill Harry Employee of the Year 2013

7. Employee Composition A major competitive advantage within the industry is the fact that our employees represent a diverse set of skills and expertise and as a result, we are able to provide world-class services to our clients.

Part-time, Casual and Fixed Term Employment

As at 30 June 2013, SMCT employs 16 Permanent Part-time employees (6.3%), 13 Limited Tenure Contract employees (2.7%) and 23 Casual employees (9%). 204 employees at SMCT are hired as full time permanent (82.3%). SMCT presently has two employees on maternity leave.

Service Milestones At SMCT we value our people and this is demonstrated through the long term service of many employees.


Service Milestones reached between July 2012 to June 2013

0

15

5

20

10

25

30 years 15 years25 years 10 years 5 years

Num

ber o

f Em

ploy

ees

Casual 23Contract (Limited Tenure) 13Full Time (Permanent) 204Part Time (Permanent) 16

Employment across SMCT As at June 2013

Under 25 18 25-34 2525-44 46.345-54 68.655-64 45.2Over 65 2.6

Age Distribution(Headcount not Full Time Equivalent)

Location Male Female Total

Brighton 3 0.6 3.6 Bunurong 11 9.2 20.2Cheltenham 11 3.7 14.7 Melbourne 11 1.7 12.7Springvale 106.4 75.3 181.7St Kilda 0 0 0

Employee Gender Number by Cemetery Locations(Full Time Equivalent)June 2013


Strategic priority 5 Brand development

2013

During FY 2012/13, the Southern Metropolitan Cemeteries Trust (SMCT) made significant in-roads into building our brand by further evolving our client-centric culture and by enhancing our stakeholder engagement. This focus, together with improved product and service delivery, strengthened our stakeholder relationships and was a key contributor to SMCT’s outstanding financial success during the reporting period. We made significant in-roads into achieving our objective of developing our brand architecture and progressively imbedding our brand across all internal and external touch points, which include:

• Our culture.

• Our communications.

• Our products and services.

• Our facilities.

• Our environments.

SMCT’s BRAND ARCHITECTUREIn FY 2012/13 SMCT’s key strategic imperative was to develop a meaningful brand platform that reflected our vision, values, culture, personality and purpose. From this platform we aimed to develop individual sub-brand platforms for each of our eight distinctive cemetery locations, which sat comfortably and harmoniously within SMCT’s overall brand positioning.

To establish our brand architecture, and in line with SMCT’s collaborative and inclusive approach, teams from each cemetery location and from various working groups were invited to actively participate in a series of branding workshops, facilitated by an experienced branding professional.

During the course of the workshops, it was recognised that it was essential to promote each site as a unique destination with individual characteristics, personalities, appeal and benefits. As such, it became very clear that the most appropriate brand architecture was to position SMCT as the ‘endorser’ (or supporting) brand for each of our cemetery locations.

Whilst clients choose a cemetery location, rather than a cemetery Trust, it is SMCT’s credibility that further validates that choice. Equally, SMCT’s credibility enables enhanced relationships with all stakeholders, including industry partners.

SMCT’s Brand Proposition – Honouring and celebrating life

Whilst SMCT’s core proposition clearly articulates the organisation’s commitment to our communities, it intentionally focuses on the distinctive nature of our eight cemetery locations.

“Historic and iconic, the cemeteries and memorial parks within our care are beautiful, tranquil and distinctive destinations to honour and celebrate life”.

Cemetery brand positionings As people choose cemeteries as opposed to Trusts, SMCT’s branding workshops also clearly highlighted the need to identify the distinctive nature and potential appeal of each of our locations.

Whilst all cemeteries within our care are unified by their commitment to Honouring and celebrating life, each cemetery has something different to offer the community and is, therefore, a brand in itself. Core cemetery characteristics, were identified as follows:

Brighton General Cemetery A most historically significant cemetery in the heart of Brighton. The prestigious final resting place of eminent Victorians.


Bunurong Memorial Park A contemporary and progressive memorial park. Distinctively Australian and beautifully landscaped, with an abundance of lakes and calming water features.

Cheltenham Memorial Park A distinctive, community focused Bayside cemetery, characterised by stately palms and elegant gazebos.

Cheltenham Pioneer Cemetery An intimate and historic pioneer cemetery, characterised by towering trees and closeness to the community.

With individual brand positionings established, SMCT developed distinctive visual identities for each destination, which were consistent with the overall look and feel of the corporate endorser SMCT brand.

Significantly, by positioning our locations as beautiful, iconic and distinctive destinations, SMCT is further supporting our key objective of demystifying cemeteries. By showcasing our cemeteries in this way, we aim to change public perceptions, so that our locations will be embraced as integral to our communities and recognised as dignified and special places to be enjoyed.

BRAND CULTUREWith our site personalities clearly defined, it was critical to develop and align SMCT’s internal brand and supporting culture. As our people are our brand ambassadors, SMCT’s strategic focus is to develop a culture that embraces our brand by living our values.

During SMCT’s executive road shows with employees, which were held during March 2013, a key priority was to communicate and facilitate an understanding of the intrinsic links between our brand, our vision and values, our commitment to stakeholder engagement and ultimately our client-centric culture.


Dandenong Community Cemetery A peaceful, rustic pioneer cemetery, serving the local community with affordable opportunities.

Melbourne General Cemetery A most iconic, exclusive, prestigious and historically significant cemetery, characterised by its prime location, Prime Minister’s Garden and notable interments.

Springvale Botanical Cemetery Australia’s world-class botanical cemetery. Magnificent, diverse and historically and culturally rich.

St Kilda Cemetery An intimate, tranquil and historic cemetery, prominently located and featuring iconic memorials in a garden oasis setting.

To further imbed our brand and our values, SMCT has continued to hold workshops, team meetings and intra-departmental team meetings, particularly for customer facing employees.

Our ongoing objective is to instill a sense of employee ownership and PRIDE in our brand, as our success will ultimately be dependent upon our people embracing the SMCT brand in its totality.

BRAND COMMUNICATIONSOnce SMCT’s brands, positionings and visual identities were established, the focus was on implementation across key collateral and communication channels.

Launch of New Websites During FY 2012/13, the most significant implementation was the February 2013 launch of SMCT’s nine world-class websites, providing yet another defining moment in SMCT’s brand development and execution.

The focus was to be consistent to the brand, to communicate meaningful information clearly and succinctly and to leverage the beautiful imagery of each cemetery location.

With our consumers top of mind, the websites were specifically designed to be user friendly and helpful and to provide quick and easy access to our products, services and prices.

Consistency of Communications In line with SMCT’s brand strategy, all forms of external communications were brought into line with the brand positioning, with a slavish focus on the correct tone, style, look and feel. This included targeted press advertising and all forms of print collateral, including product and event flyers and the comprehensive range of site specific and general information booklets that were produced throughout the period.

During the reporting period, a digital screen was installed within Springvale Botanical Cemetery’s reception area, which carries consistent brand imagery and key messages. To improve the customer experience, an interactive kiosk was also installed, providing information about daily services, deceased search information and an interactive map.

Products and ServicesFurther brand touch points include the products and services that SMCT provides to our diverse communities. These are constantly being reviewed in line with consumer insights, to ensure that we are meeting ever-changing client needs and adding value wherever possible. During the reporting period, our communities embraced SMCT’s product offering, which included:

• Monumental grave opportunities at Springvale Botanical Cemetery’s (SBC) dedicated Asian style cemetery, Song He Yuan.

• Crypt opportunities within the newly completed Saint Mary of the Cross, Saint Francis of Assisi and Blessed Mother Teresa mausolea at Cheltenham Memorial Park (CMP).

• Prestigious crypt opportunities at Melbourne General Cemetery’s (MGC) Saint Mary of the Cross Mausoleum.

• Culturally specific monumental grave opportunities within Dandenong Community Cemetery.



Our brand and our environmentsA strategic imperative is to ensure that all SMCT environments reflect our brand identity by representing excellence in customer service and visitation experiences.

During FY 2012/13, the two areas identified as requiring improvement in order to be consistent with our brand were Dandenong Community Cemetery (DCC) and the SBC café, florist and function facility.

Dandenong Community Cemetery DCC was identified as a relatively unknown cemetery that required an improvement in its aesthetic appeal. As a result, resources were allocated to clean up the site, establish boundary gardens, install monumental grave foundations, improve drainage, establish clear entry and exit points and plant a significant number of trees.

As a result of these improvements and through extensive community engagement and proactive sales strategies, the revenue performance of DCC for FY 2012/13 exceeded all expectations.

The Creation of SBC’s Café Vita et flores SBC’s leased café, florist and function room facility was also recognised as not consistent with SMCT’s brand and client-centric culture. As a result, a decision was made to bring the operation in-house.

During the reporting period, the facility was rebranded Café vita et flores (‘life and flowers’) and was extensively refurbished with contemporary décor and extended seating both inside and out. The service levels and food and beverage offerings were also significantly improved.

Now firmly in line with our brand, Café Vita et flores has been embraced by our community, evidenced by patronage and sales results.

Further Environmental Touch Points To further enhance the customer experience in line with our brand, SMCT also invested in the refurbishment of SBC’s reception area and two chapels and BMP’s chapel and function rooms.All now provide a far higher level of amenity for all stakeholders. Moving forward we will also be updating the two larger chapels at SBC to remain modern and relevant to client families.

The construction of SBC’s new Central Precinct during FY 2013/14 will also significantly improve the experience for our client families, industry partners and employees alike. This development is pivotal and, we believe, will further enhance our clients’ perceptions of our services, our industry partners perceptions of our professionalism and our employees pride in the organisation.

SMCT is committed to improving our environments to enhance the stakeholder experience and to be recognised and respected as a brand of quality.

The future. With SMCT’s brand strategy firmly in place and considerable progress made on our external brand portfolio development, we will continue to focus on our key strategic objective of working as an organisation with a unified vision to embrace our brand.

By strongly aligning our internal culture with the external brand, we will continue to build SMCT’s reputation as a credible, professional client focused organisation and our flagship locations as highly desirable destinations in which to honour and celebrate life.


The Southern Metropolitan Cemeteries Trust (SMCT) is developing and implementing a common standard of excellence for operational activities, service delivery, facilities and grounds management across all of our cemetery locations. Key strategic imperatives are to achieve these standards within a safe working environment and by fostering a culture of risk management.

During the reporting period there have been significant improvements in SMCT’s service delivery and infrastructure management to ensure SMCT’s financial sustainability including:

• The consolidation of maintenance operations for St Kilda Cemetery (STK), Brighton General Cemetery (BGC), Cheltenham Pioneer Cemetery (CPC) and Cheltenham Memorial Park (CMP), to a central maintenance facility at CMP. Apart from operational efficiencies, the restructuring has also made land available for grave and memorial stock at BGC and CMP. Previously used for maintenance and storage, this land is currently being redeveloped to deliver monumental and lawn graves, with completion of the projects due in late 2014.

• The overhaul of horticulture management practices across all cemetery locations, with innovative work practices implemented to complement existing ‘tried and true’ techniques. Some changes have been subtle, delivering modest efficiencies, while other new practices are proving to deliver game changing efficiencies. All practices have improved our grounds and, in turn, our communities’ visitation experience.

• Centralising the management of asset replacement to the SBC Infrastructure Department has streamlined procurement processes, maximised savings and standardised equipment across all locations.

Strategic priority 6 operational excellence

2013



Additionally, the establishment and centralisation of several multi-site service contracts has allowed for greater efficiencies and has freed up valuable time for individual site managers.

• The progressive organisational restructuring of the Infrastructure Planning Development and Maintenance department to improve efficiency and provide better service levels and quality outcomes for our customer base. As part of the restructure, due for completion in 2013, working groups have been reviewed and are in the process of realignment to best fit business needs and the work performed.

Maintenance Standards In 2011, The Department of Health, prepared a report ‘Development of Options for Minimum Perpetual Maintenance Standards’ with the aim of providing cemetery Trusts with a framework to assist them to identify, measure and report on their perpetual maintenance obligations.

The report tabled a conceptual model ‘Phases of Cemetery Maintenance’ which identified the three phases in a cemetery’s life cycle as active, transitional and perpetual. As a different level of maintenance will apply for each phase that a cemetery moves through, the report states that each cemetery Trust should develop a maintenance plan outlining its approach to managing the sites for which it is responsible.

SMCT oversees the maintenance of all cemetery assets including cemetery grounds, infrastructure, official structures, plant and equipment but, in order to understand the perpetual maintenance costs for each site, it needed to establish a way of determining the expected service level of each precinct within each cemetery, from the present day until the end of its expected life.

To achieve this, SMCT developed a Condition Index System for precinct and asset groups at each cemetery.

Similar to a hotel rating system, condition ratings range from Category 1 to Category 5. Each site was rated according to its brand, reputation, sales opportunities, visitation level, historical significance, operational importance and risk profile.

With ratings established, we now have a better understanding of the required inspection and maintenance regimes for precincts within each cemetery and are able to determine the perpetual maintenance costs for each site as it moves through the cemetery life cycles. The ratings also assist SMCT in terms of pricing new products, evaluating existing products and understanding our future obligations.

Workplace Health and Safety (WHS) With the key objective of implementing operational excellence within a safe working environment, FY 2012/13 saw considerable progress made in the implementation of the WHS Framework. Significantly, a dedicated WHS Coordinator was appointed in September 2012.

During the reporting period, employees were consulted in the preparation of 98 procedures and forms, including risk management, contractor management, asbestos management, WHS communications and issue resolution, performance planning, training, manual tasks, plant and equipment, chemical substances and hazardous materials, permits to work, working outdoors, Personal Protective Equipment (PPE), purchasing, workplace inspection and surveillance, emergency management and incident reporting and investigation. All related documents are readily accessible on SMCT’s intranet and employees are utilising those appropriate to their needs.

WHS awareness training was made available to all employees and more specific training was provided where required.

An increase in consultation and communication has seen a significant increase in WHS awareness. Over and above SMCT’s obligations to provide a safe workplace, employees now understand their own obligation to look after each other whilst at work. This has been a considerable cultural shift for the organisation and there have been a number of WHS champions who have exceeded their legal obligations.

The WHS Committee has been re-trained, both as a working committee and as individual workgroup representatives. As a result, regular workplace inspections have been implemented and the reports are being consolidated to provide action plans for the next quarter. Any immediate hazards are addressed promptly as required. Committee minutes are made available on both the intranet and notice boards and progress on action plans reported monthly.

Another layer of consultation has been added to the WHS Framework rollout with outdoor staff briefings held monthly or fortnightly, should particular issues require discussion. Anecdotal evidence suggests that employees are appreciative of the additional forums to discuss WHS matters.

Also during FY 2012/13, a training matrix was drafted, which will list every employee and their WHS training requirements for the following year. This further improvement will be rolled out in FY 2013/14.

Although still in its infancy, the matrix will ensure that all WHS training needs are captured and rolled out progressively to ensure SMCT not only meets, but exceeds its WHS obligations.

Developing a Client-Centric Culture A key strategic imperative is to train all SMCT employees to deliver excellent customer service in all that they do, ensuring that they possess the necessary skills and knowledge to perform their duties to the highest standards. To achieve this objective, SMCT is committed to investing in employee training and development.

During FY 2012/13, SMCT conducted a series of Values Workshops in order to define behaviour and bring our vales to life in the workplace and, during the past 6 months, a long-term Leadership Development Program was established. Online induction training was also introduced and, with the appointment of SMCT’s Organisational Development Manager, work has commenced on:

• A skills gap analysis.

• The development of a leadership capability framework.

• The design of a leadership development program for the next leadership layer.

During the reporting period, SMCT’s Consumer Insights Department also conducted multi-faith workshops across all locations, with the key objective of assisting employees to further understand the religious and cultural diversity of our communities and to equip them to more effectively deliver customised client service.

Risk Management SMCT’s strategic objective is to build a culture of risk management and, following a Risk Framework Quality Review (RFQR) by our insurers and risk advisors, risk management became a particular focus during the reporting period.

The RFQR is based on a seven-element maturity model informed by the Australian Standard for Risk Management AS/NZS ISO 31000:2009. Overall, SMCT’s risk management framework was rated ‘integrating’, as it was recognised that the organisation had developed sound risk management practices and controls and that further work would enhance the framework to ensure that it is targeted and effective.

The Executive Management team review both the Employee Risk Management and the WHS Committee Minutes, which ensures senior management is made aware of emerging risks. In turn, they can address any action plans required to mitigate or manage such risks. During the period



there was a focus on strategic risks, resulting in the consolidation of the Risk Register from 156 risks (primarily operational) to 18 current and strategic risks. The consolidation ensured that appropriate controls were developed for priority risk areas to the business.

During the period, the Cemetery and Crematoria Enterprise Management System (CCEMS) software was modified to suit the improved Risk Framework and a Supplier Management Module was implemented to track risks relating to supplier performance.

A further outcome of the Risk Framework review and the WHS Framework rollout has been the enhancement of an existing CCEMS module to address risks relating to our contractors’ Safety Management Systems, including ensuring the currency of their insurances. SMCT’s purchasing and tendering process has also been enhanced to include WHS and Environmental Risk Management.

Asbestos Management In October 2012 asbestos containing mastic (ACM) was identified in niche walls at SBC. All plaque removal work was immediately discontinued, samples sent for analysis and subsequent confirmation communications sent to all stakeholders, including other cemeteries. In consultation with an occupational hygienist, management and staff, the union and WorkSafe Victoria, an Asbestos Management Plan was developed. Employees have now been trained to identify and work with ACM and a temporary facility has been constructed to safely remove it from the plaques. SMCT has now been granted a Type B Asbestos Removal License from WorkSafe and work has recommenced. The facility and the Asbestos Management Plan is the first of its kind in Victoria.

The Future Looking ahead, SMCT will continue to develop a documented set of standards of excellence across all activities, facilities and locations, which are understood by all employees, including benchmarks for service delivery.

SMCT will also continue to build a culture of risk management that recognises the need to manage reputational, business and operational risks, including WHS. This will require a determination of critical risk factors associated with each risk area, defining opportunities to mitigate these wherever possible and a continuous review of processes and procedures to ensure the improved management of risks where mitigation is not reasonably practicable.

SMCT will continue to invest in market research and stakeholder engagement to ensure we are providing the most innovative products and services to meet our community’s current and future needs. We will also continue to invest in the training and development of our people to ensure we provide an exceptional level of customer service to all stakeholders.


A key priority of the Southern Metropolitan Cemeteries Trust (SMCT) is to develop and implement an integrated Information Technology platform that will support future growth and enable the organisation to achieve its long-term objectives. A strategic approach has been adopted by SMCT’s IT Department to identify and deliver appropriate infrastructure and IT solutions to meet our business needs, both current and future.

The reporting period saw the delivery of SMCT’s 5-year IT Strategy with the identification of a range of key IT initiatives and projects that support this strategy. The key focus is delivering high quality solutions, mitigating risk and adopting appropriate standards and processes across all areas.

Commencement of the program of works identified for the FY 2012/13 period, saw significant investment in replacing aging core IT infrastructure with enterprise-grade equipment and services, bringing our cemetery locations under a single integrated data network and IT platform, capable of supporting future needs.

The result of these efforts has provided SMCT with a robust, high capacity, high performance IT environment and a solid foundation whereby new customer and business solutions may be deployed in the upcoming periods.

An additional three Full Time Equivalent employees were recruited during the period to increase the capacity and skill-set of the IT team. The engagement of these additional resources ensured the timely delivery of IT projects and that an appropriate level of IT services was maintained.

IT Projects and Initiatives During the reporting period, all IT network, server and storage infrastructure were replaced across six active locations. This included replacing data cabling and implementing a new Wide Area Network (WAN) to provide high-capacity connectivity

Strategic priority 7 information technology

2013


between SMCT locations. In addition, IT undertook a complete refurbishment of the data-centre located at Springvale Botanical Cemetery to provide a world-class, highly resilient environment for housing core SMCT equipment.

Beyond delivering this new infrastructure, a range of projects were undertaken to replace or upgrade a number of critical software solutions and services utilised in SMCT operations. These included upgrading the Cemetery and Crematoria Enterprise Management System (CCEMS), corporate anti-virus and Internet gateway.

Digital signage and interactive kiosks were also delivered to improve the customer experience when visiting our sites. It is expected that this solution will be expanded during the next financial period.

Risk Management SMCT recognises the reliance placed on the availability and performance of IT services to conduct core operations. As such, additional investment has been made in deploying appropriate IT backup and recovery facilities. Risk associated with the storage and handling of SMCT’s electronic assets has been mitigated through the implementation of industry standard disk-to-disk and disk-to-tape systems at two SMCT locations. Off-site tape storage service arrangements have been implemented to further mitigate risk. Notably, the organisation has also deployed redundant server and storage infrastructure at secondary locations and Disaster Recovery (DR) services to provide appropriate contingencies in the event of significant data or system loss.

Service Levels and System Access Whilst there continues to be additional improvements identified in the IT services offered to employees and customers, the outcome of works undertaken in FY 2012/13 has seen a vast improvement in the performance of IT services at SMCT locations and an increase in the availability of these services.

The IT Department has also provided the opportunity for all SMCT employees to now access IT equipment and services. This includes the provision of login credentials and email for all staff, shared computer kiosks at key locations, as well as upgrades to smart phones and portable tablet devices for outdoor employees.

Policies and Standards In order to maintain the new IT environment and ensure a high level of availability and performance, a range of new IT policies and standards have been adopted. These include:

• Identification of business-grade equipment brands and models.

• Establishment of appropriate maintenance and support contracts with key vendors.

• Deployment of system maintenance standards.

• Development of new IT policies and change management frameworks.

• Deployment of a centralised IT Service Desk for the management of employee service requests.

IT Steering Committee The IT Steering Committee convened quarterly during the reporting period. The committee reviewed the progress of planned IT projects and initiatives identified within the five-year IT Strategy and the subsequent Annual Plan. It also provided a forum for, and considered updates on, any significant IT issues or risks with an impact on business operations. The committee will continue to meet on a quarterly basis, however with the IT strategic focus now moving towards implementing robust business solutions, the agenda will be modified accordingly, to ensure that members are able to provide input into IT direction, based on their respective department needs.

The Future With a strong foundation now in place, SMCT remains committed to further advancing the level of IT services and the performance of IT systems available for employees and customers. The FY 2013/14 period is expected to leverage the new environment delivered in FY 2012/13 and deliver both employee and customer-focused IT solutions that improve business efficiency and, ultimately, the customer experience.

Our primary focus for FY 2013/14 will be refreshing the user desktop environment, replacing the standard operating environment and many of the aging desktop devices, including laptops, thin clients and print devices.

In order to maintain a high level of system performance and availability within the new IT environment, we will deploy an integrated system management platform with appropriate alert thresholds and reporting capabilities. Further enhancing the security of our systems and sites will also be considered via a range of projects planned for the upcoming period.

Additional digital signage, refurbishment of chapel audio/visual systems, free Wi-Fi internet and enhancements to the SMCT websites are all expected to deliver further improved customer service across our cemetery locations.



The Southern Metropolitan Cemeteries Trust (SMCT) is committed to meeting the long-term needs of our communities for burial, cremation and memorialisation services. This is achieved by building a deep understanding of future community needs and by effectively managing our land and facilities. A key strategic imperative of SMCT’s Strategic Plan (2012–2016) is to review SMCT’s current land holdings and to develop master plans for each location that are supported by commercially viable business cases and also a robust structural framework to guide future design, development and management of our sites.

Springvale Botanical Cemetery (SBC) - Central Precinct Master Plan SBC’s current administration and function infrastructure is unable to meet current demand. Employee accommodation is currently insufficient and function facilities are failing to meet increasing market demand. As a result, SBC is losing market share to other facilities in the area. The flow on effect of this restricts our ability to communicate directly with clients in the community and, in turn, impacts on our sales opportunities and, therefore, our long-term financial viability.

To address the issue of inadequate infrastructure, a working group, framework and set of assumptions were established. The working group presented several recommendations to the Trust, which were subsequently approved in September 2012. The Trust has also appointed an Infrastructure Planning Committee to provide governance and guidance in progressing this and other major projects going forward. Chaired by Trust Member Stephen Shipp and attended by the Trust Chair, the committee has oversight, reports and makes recommendations to the Trust and is monitoring this project’s progression. Detailed plans were completed for the Central Precinct, which incorporates a new administration hub, a function centre, café, florist, gift shop, reception, training rooms and staff dining facilities. The plans also incorporated the conversion of the current café/florist and function room building into a customer-

Strategic priority 8 land use and development

2013

facing centre. In June 2013 tenders were called to appoint the construction contractor.

With escalating sales at SBC and land becoming an increasingly scarce resource on the site, the Central Precinct project has also focused on minimising the building footprint. The project will provide reclaimed land for stock development by returning the land used for the current administration building. The complex will also include:

• Modern function facilities to cater for community needs.

• A contemporary customer-facing centre that represents excellence in customer service.

• A new administration building, incorporating the function centre, which incorporates sustainability in the design (carbon neutral in energy consumption).

• A progressive café/florist/gift shop concept with seating for 64 internally and 36 externally.

• Reduction in our overall administration footprint.

• An innovative design that incorporates a training facility and a staff/dining area.

• An administration hub, designed to provide an office environment that is inclusive, open and fosters efficient business practices.

Envisioned as a leading edge example of sustainable design, SBC’s new Central Precinct will provide an environment that is reflective of our brand identity and will facilitate excellence in customer service across all of our client touch-points.

Construction is due to commence in August 2013 and due for completion in late 2014.


Artists impression new Function Centre (Ground floor) and Administration (first floor) building.


Bunurong Memorial Park (BMP) – Master Plan Established in 1995, BMP is the newest SMCT property and is largely undeveloped, with less than 26 hectares of a 100-hectare site currently utilised as an operational cemetery. The underdeveloped land at BMP represents the majority of SMCT’s available interment capacity across the portfolio.

In June 2012 the Trust commissioned a third party to commence the initial phase of master planning on the BMP site (Stage 1). This work involved the performance of a feasibility review of the site through the investigation of existing site conditions and development potential.

The Master Plan represents a natural progression and improvement of former site planning and provides a roadmap for staged development across the location. The key elements of the plan include:

• Establishing a detailed Environmental Management Plan for the entire site.

• Alignment with BMP’s brand identity and market positioning.

• Identifying a short-term landscaping regime, in particular, staged perimeter screening.

• Identifying short-medium stock options for all product types.

Key additional features of the developed BMP Master Plan layout include:

• A flexible framework, maximising the ability of BMP to respond to current community needs and future revenue streams. This meets our key strategic objectives for Growth.

• Maximising site yield potential through efficient layout and design, meeting our strategic objectives for Land Use and Development.

• Staging and phasing that allows for the deferral of infrastructure costs and minimisation of ongoing operational and maintenance costs.

Bunurong Memorial Park Master Plan

• Reinforcement of SMCT’s reputation as an employer of choice through the provision of high quality facilities and exceptional workplace experiences, meeting our objectives for People and the Organisation.

• Development of new water features to create value through premium product offerings and to mitigate the deleterious effects of current overland flow and inundation on portions of the site.

• Ensuring robustness in structure to allow BMP to respond to the needs of its clients, business partners, government and industry.

Cheltenham Memorial Park (CMP) - Mausoleum Works for the construction of stages seven, eight and nine of mausolea at CMP were completed in May 2012 providing 386 new crypts. Community acceptance of the additional mausolea was evident with sales far exceeding expectations.

After significant community consultation, the three stages of the mausoleum were named: Saint Mary of the Cross, Saint Francis of Assisi and Blessed Mother Teresa.

The official opening and blessing was held on 22 May 2013, officiated by Archbishop, Denis J Hart DD and attended by members of the Trust and the local community.

CMP Maintenance Consolidation Design, planning and tender documentation was completed for the construction of a new central maintenance facility at CMP, which will consolidate maintenance operations for CMP, St Kilda (STK) and Brighton General (BGC) cemeteries. The project will be tendered in FY 2013/14 and will subsequently provide maintenance cost savings, a reduction in payroll costs and return land for burial, which in turn will provide SMCT with additional stock for sale and revenue growth.

Springvale Botanical Cemetery - Song He Yuan During the reporting period, in line with the Master Plan concept of 2003, progressive development has continued within SBC’s Feng Shui designed Asian style cemetery, Song He Yuan. A total of 229 monumental sites were constructed in FY 2012/13 and further planning work was also completed for new projects in FY 2013/14.

Consolidated Burial Stock During the FY 2012/13 a total of 4,034 burial sites were constructed across all locations.


Site Monumental Lawn Headstone Total

BGC 60 74 0 134

BMP 20 1,188 20 1,228

CMP 0 200 0 200

CPC 0 0 0 0

DCC 215 0 0 215

STK 0 0 0 0

SBC 756 809 266 1,831

MGC 40 0 0 40

1,091 2,271 286 3,648

New Graves Stock FY 2012/13

The Official Opening and BlessingSaint Mary of the Cross, Saint Francis of Assisi

and Blessed Mother Teresa Mausolea 1.30 pm, Wednesday 22 May 2013


Dandenong Community Cemetery (DCC) Enhancements During the reporting period, in line with SMCT’s Strategic Plan, DCC’s maintenance standards were greatly improved in order to enhance the visitation experience. Sales revenue significantly increased as a direct result of landscaping, improved infrastructure, culturally appropriate plantings and the installation of monumental grave foundations.

In February 2013 an Open Day was held to showcase DCC’s improved amenity and to increase community awareness of this historic cemetery.

Extensive consultation with Dandenong’s Russian Orthodox Community ensured that the Russian Orthodox monumental grave area was reflective of their cultural preferences, including the planting of Birch trees. This community has subsequently embraced DCC and, in March 2013, the head of Dandenong’s Russian Orthodox Church, Father Michael Protopopov, blessed the Russian grave area.

Children’s Playground at Springvale Botanical Cemetery After considerable thought and planning a special children’s recreational playground was carefully integrated into the grounds, adjacent to SBC’s A.J.A. Gardner Children’s lawn area.

Specifically designed to ensure that it complements this special landscape, the purpose of the playground is to provide children with a safe and enjoyable focal point after they have paid their respects. With younger children safely occupied, it is hoped that parents and older family members have additional time to reflect and remember.

The installation of the children’s recreational playground also meets our objective of demystifying our cemeteries by welcoming all members of our community, including children, to enjoy the beauty and tranquility of our grounds.

The future. Understanding that land is one of our most precious resources, SMCT will continue to allocate resources to ensure the most effective use of our land in order to meet the current and future needs of the communities we serve.

We will also continue to build a deep understanding of the needs of our communities and to establish the facilities required to effectively meet these needs.

The Very Reverend Michael Protopopov, OAM within Dandenong Community Cemetery’s Russian Orthodox monumental grave area.


The Southern Metropolitan Cemeteries Trust (SMCT) is committed to ensuring that all activities undertaken by the Trust are managed in a socially and environmentally responsible manner for the long-term benefit of the communities we serve.Critical to our five-year Strategic Plan is building an organisational culture that is socially and environmentally sensitive and lives by its values –

At each and every cemetery within our care we pledge to each other and our clients that we will act with:

Passion, Respect, Integrity, Dedication and Empathy – to always act with PRIDE.

SMCT’s employees demonstrate these values through their day-to-day behaviours and attitudes to fellow employees, customers and business partners alike. It is these daily interactions that create and reinforce SMCT’s brand essence and client-centric culture.

SOCIAL RESPONSIBILITYSMCT is focused on growing the business responsibly and recognises the need for complete fairness and transparency in dealings with all stakeholders.

Stakeholder relationships, including those with clients, community groups, governments, associations, regulators, business partners and employees are based on trust and this is particularly important given the sensitivity and nature of our industry.

We have clear governance structures and continuously aim to identify and minimise risks to support our drive for improvement in service delivery.

SMCT is managed in an accountable and responsible way through an effective corporate governance framework. This ensures our services to the community are delivered in a manner that is affordable, sustainable and represent value. We ensure that management practices and services to consumers are epitomised by the highest ethical standards and regularly review policies, guidelines and procedures.

SMCT is also completely transparent in terms of pricing, with the cost of products and services clearly listed in our collateral and on our websites.

We also understand the need to drive even more investment into our communities. During the reporting period, SMCT has significantly enhanced

Strategic priority 9 Social and environmental responsibility

2013

our community engagement to ensure that we are meeting the diverse cultural needs of the communities we serve. We have also focused on contributing to our communities through our Southern Ageing Forums, wellness programs, provision of talks and tours and by recognising the many significant cultural and religious dates and providing services to commemorate them. These have included hosting the annual Ching Ming Festival at Springvale Botanical Cemetery’s (SBC) dedicated Asian style cemetery, Song He Yuan, Mother’s and Father’s Day memorial services, All Souls Day services and the annual Children’s Christmas Memorial Service. For a full list of services, tours and events held at our cemetery locations during FY 2012/13 please refer to our websites at www.smct.org.au

SMCT also understands our social responsibility to our employees and this includes recognising the value of individual difference in the workplace. We are committed to building a socially sensitive and responsible organisational culture in which individual differences are valued. Over the next three years we will actively incorporate the principles of diversity into our workplace.

ENVIRONMENT

SMCT is committed to developing and fostering a culture of environmental responsibility through education, communication and strong leadership. Our strategic imperatives include:

• Understanding the current environmental impact of each location and ensuring that all standards and regulations are met.

• Developing and implementing sustainability programs in the delivery of all services, with particular consideration given to the design of buildings, carbon emitting products, horticulture, water use and the operation of crematorium services (carbon emitting utilities).

Current Environmental Impact Since FY 2010/11, SMCT has enlisted the services of the National Centre for Sustainability, Swinburne (NCSS) to assist in the calculation of greenhouse gas emissions (CO2) produced and to report on the environmental impact of cemetery operations across all SMCT locations. This data provides a benchmark and basis for measuring the long-term success of SMCT’s sustainability strategies and action plans.

As the above table and graph show, the total CO2 emission for FY 2012/13 reduced by 0.1% and the CO2 emission reduced by 13.7% per full time staff member, due to a 17% increase in staff numbers across all sites. The factors associated with the above results are detailed in the following sections.


Emissions(tonnes CO2

equivalent)

Var(%)

Emissions(tonnes CO2

per FTE)

Var(%)

CommentYear

5,420 5,673 5,671

4.7

(0.1)

24.93

26.70

23.04

(8.5)

(7.1)

(13.7)

All SMCT locationsAll SMCT locationsAll SMCT locations

2010/11

2011/12

2012/13

0

3000

1000

4000

2000

5000

6000

2010/11 2011/12 2012/13

24

22

25

23

26

27

21

tonnes CO2 equivalent

tonnes CO2 per FTE

Energy Electricity, natural gas and LPG are the main sources of energy consumed by SMCT for general power, cremation facilities and commercial catering for funeral service functions. Electricity consumption increased by 2.8% in FY 2012/13 as a result of increased employee numbers and a change in operation of the Springvale Botanical Cemetery (SBC) café, which was previously operated by external contractors. Natural gas and LPG consumption reduced by 19% due to several efficiency programs and the installation of efficient cremator infrastructure at SBC.

Water SMCT has four main sources of water, including potable mains water, dammed storm water for irrigation, recycled water for irrigation and rainwater tanks for toilets and water features. The overwhelming majority of water consumed is sourced from dammed storm water and is used for controlled irrigation and water feature management at SBC.

Potable Mains Water Although SMCT has been progressively reducing its dependency on potable mains water over the last few years, FY 2012/13 resulted in an increase of 26% due to increased employee numbers and inaccuracies in measuring consumption at Melbourne General Cemetery during FY 2011/12. This increase is not expected to be repeated in FY 2013/14.

Dammed Storm Water Dammed storm water consumption increased by 25% due to an increase in irrigation use at SBC. This was due to the repair of several irrigation systems, which were re-commissioned during the year.

Rainwater Tanks Rainwater consumption reduced by 60% during the reporting period, due to reduced rainfall, resulting in extended periods where the water tanks remained empty.

Transport (fuel, flights and taxis) The consumption of fuel, including petrol, diesel, and LPG for transport reduced by 5.7% in FY 2012/13, due to a reduction in the use of company cars by executives and senior managers. An overseas study tour was taken by the executive during the period resulting in air flights increasing significantly as there were no overseas trips in the previous reporting period.

Construction and other materials A large amount of concrete is used for construction projects across several locations, including monumental grave foundations, mausoleum, paving and general construction. Due to the energy required to produce cement, this presents a significant factor when calculating the overall CO2 emission figure.

Although concrete use is down by 40% for FY 2012/13 it is expected to increase significantly over the next few years due to several major construction projects at SBC and Bunurong Memorial Park (BMP).

Waste to landfill Although there are several recycling programs in place to reduce the amount of waste being sent to landfill, SMCT sites produced 462 tonnes of waste during FY 2012/13. This includes general office and catering waste, flower arrangements, garden waste and hard waste.

The Future SMCT’s sustainability program is being embedded into our culture. As a result we will be better placed to adopt burial and cremation practices that are more environmentally sympathetic. We will also continually review our carbon footprint in order to identify improvements in relation to traditional services.



With a focus on our environment, we will continue to reduce our carbon footprint through energy and water reduction programs and considered plant selections for the future. Imperatives to be met during FY 2013/14 include:

• Further understanding the environmental impact of each cemetery location, including quantifying the carbon footprint of each and ensuring all standards and regulations are met.

• Procuring and installing Tree Management Software that identifies all tree assets, conditions and maintenance requirements. This will also be used to consider carbon abatement offsets.

• Constructing the new SMCT Central Precinct administration and function building to be a ‘carbon neutral’ complex.

• Reporting against all impact areas.

CUSTODIANS OF HISTORYAs a key custodian of history, SMCT’s strategic imperative is to foster community understanding of the historical significance of our cemeteries and to source separate funding that allows for historic monuments to be maintained and protected.

A critical issue is that there is a general lack of appreciation of the historical significance of cemeteries, resulting in thousands of deteriorating monuments and insufficient funding for their maintenance. There is also little or no funding for historical interpretation, such as signage and exhibitions.

Based on our role as custodians of history, our key objectives in FY 2013/14 are to:

• Develop heritage and conservation plans for Melbourne General Cemetery (MGC) and Cheltenham Memorial Park (CMP) to be incorporated under the Heritage Act, which will guide preservation and give more certainty in development planning.

• Develop a Heritage Policy for the cemetery locations within the ‘Perpetual’ phase of the cemetery lifecycle, which define how to balance the maintenance of the historical nature of these cemeteries with the drive to generate revenue.

• Establish a program for SMCT, in which the priority is to foster community awareness of our role as custodians of history.


HISTORICAL EVENTS AND INITIATVES2013 marked the 160th anniversary of MGC and the FY 2012/13 saw an increase in the number of participants taking the popular night tours of the cemetery, with a total of 570 people attending. There was also growing interest in day tours of MGC, with 223 people attending.

For the first time MGC’s heritage-listed Gate Lodge was opened, free of charge, to the community as part of the 5th annual Open House Melbourne (OHM) event in July 2012. This attracted 457 visitors. Historical information panels were installed in the Gate Lodge and a notable interments sign, featuring 77 historic graves and sites, was installed within the cemetery grounds. An accompanying notable interments brochure was also produced.

A coup for SMCT was OHM’s decision to stage their 2013 launch event at MGC’s Saint Mary of the Cross Mausoleum on 18 June 2014, with SBC’s café Vita et flores chosen to cater the event. This well attended and highly successful event generated further community awareness of the historically significant MGC.

During FY 2012/13 a number of historical walking tours of SBC also took place. Additionally, notable interments signs were produced for both SBC

and St Kilda Cemetery. Historical panels of SBC were displayed during the 2012 Open Day and an historical plaque was installed, marking the grave of the first person to be cremated in the cemetery, Edward Davies (1905). SMCT also sponsored a commissioned history of Brighton General Cemetery (BGC) booklet that was published by the Friends Group, the Brighton Cemetorians.

During the reporting period, SMCT successfully conducted numerous community presentations on historical and heritage issues. These were well received, with 650 people attending.

SMCT also supervised the restoration of the iron railing of the monument of famous judge Sir Redmond Barry at MGC and the Federal Government awarded SMCT a grant of $10,000 to commission a maintenance plan for the restoration of the historically significant Septimus Miller family vault at BGC.

Looking ahead, SMCT aims to establish a Heritage Advisory Committee to promote the historical significance of our cemetery locations and to fund the restoration of historic graves and monuments.

58

The Septimus Miller family vault at BGC.


With our enduring commitment to honouring and celebrating life, we are conscious of our ongoing responsibilities to our communities and of continuing to meet their diverse cultural, personal and religious needs.

We also fully realise our perpetual maintenance obligations and the need to further strengthen SMCT’s financial performance and stability.

FY 2013/14 will be the second year of our Strategic Plan, which forms the basis of our Annual Plan and objectives and our nine strategic priorities:


2. Growth








In the development of our Annual Plan for FY 2013/14, we will focus on structural reforms, enhanced stakeholder engagement and further embedding our client-centric culture. From this platform we will ensure that SMCT is in a sustainable position to fulfil its perpetual maintenance obligations for future generations.

An internal communications strategy will be further developed to create a well-informed and engaged workforce, who clearly understands the direction of the organisation and the rationale behind decisions. By fostering an environment that encourages open communication and information sharing, SMCT will continue to attract and retain high calibre employees.

SMCT will also continue to identify opportunities to acquire new land and work with Class B cemeteries and will focus on our inventory requirements and infrastructure development.

During FY 2013/14, master planning for Bunurong Memorial Park (BMP) will continue. Comprising land of approximately 100 hectares, with only 26 hectares currently active as an operational cemetery, the underdeveloped land at BMP represents the majority of SMCT’s available interment capacity across SMCT’s portfolio. BMP is clearly the future focus of SMCT and will be designed with environmental principles that support SMCT’s vision for the organisation, with a distinctive brand personality.


looking ahead

2013

Our strategic plan will further embed SMCT’s Vision and Values into our client-centric culture so that exceptional customer service is at the heart of everything we do. Results will be seen through an enhanced client experience and increased levels of customer satisfaction.

The success of this Plan will be achieved through mobilising our people with the best mix of skills, knowledge and behaviours and the support of the Trust in our commitment to honouring and celebrating life.

Projects FY 2013/14 The new financial year will see a number of projects that will deliver both earnings and growth and enhance the SMCT culture. These will include:

• The delivery of a Communications Strategy including e-commerce capabilities.

• Deeper Consumer Insights through further activating our Stakeholder Engagement Strategy.

• The delivery of phase one of our Human Resource Strategy and the inclusion of a Leadership Development Program.

• The first stages of construction of the new Central Precinct at Springvale Botanical Cemetery (SBC). Envisioned as a leading edge example of sustainable design, the new Central Precinct will facilitate excellence in customer service and meet the future demands of the community.

• Further enhancing the suite of websites by developing e-commerce opportunities to more effectively meet the needs of other key stakeholders, including funeral directors.

• The development of a records management strategy to ensure the continued effective management of information within the regulatory framework.

During FY 2013/14, SMCT will also continue to educate the community regarding the benefits of planning ahead by pre-paying for burial, cremation and memorialisation with a not-for-profit, community orientated organisation in comparison to alternative planning options with other organisations.

SMCT is forging a reputation for delivering world-class services and facilities. We have a clear understanding of future trends and the changing competitive landscape, which, in turn, will benefit the future sustainability of the organisation and the communities we serve.



smct financial statements 2013

2013

Southern Metropolitan Cemeteries Trust

Trust Member’s, Accountable Officer’s

and Chief Finance & Accounting Officer’s Declaration

We certify that the Financial Statements for Southern Metropolitan Cemeteries Trust have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions (FRD’s), Australian Accounting Standards, Interpretations and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, presents fairly the financial transactions during the year ended 30 June 2013 and the financial position of Southern Metropolitan Cemeteries Trust as at 30 June 2013.

At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

We authorise the attached financial statements for issue on this day.

Sue Renkin Jonathan Tribe Vincenzo Salvatore Trust Chairman Accountable Officer GM Finance & Business Services

Springvale Springvale Springvale15 August 2013 15 August 2013 15 August 2013





Note 2013 2012 $000 $000 Income Cemetery Operations Income 2(a) 47,781 46,979Cost of Sales 3(a) (5,995) (6,451) 41,786 40,528 Investment Income 2(c) 10,428 8,915 Total Income 52,214 49,443 Expenses Employee Expenses 3(c) (16,426) (17,655)Depreciation and Amortisation 4 (3,188) (3,140)Maintenance and Operating Costs 3(c) (3,289) (3,254)Administrative Costs 3(c) (3,159) (2,529)Other Operating Expenses 3(c) (2,066) (1,438)Audit Fees: Auditor General 23 (84) (75)Impairment of Non Financial Assets 3(c) 0 (7,700)Investment Management Fees 3(c) (1,162) (1,066)Cemetery Levy 3(b) (1,737) (1,642) Total Expenses from Transactions (31,111) (38,500) Operating Result for the Year 21,103 10,943 Other Comprehensive Income Items that may be reclassified subsequently to net result Net Fair Value Gains/(Losses) on Available for Sale Investments 16.2 17,334 (13,130) Total other comprehensive income 17,334 (13,130) Comprehensive Result for the Year 38,437 (2,187) The Comprehensive Operating Statement should be read in conjunction with the accompanying notes.

Comprehensive Operating Statementfor the financial year ended 30 June 2013

FINANCIAL STATEMENTS Southern Metropolitan Cemeteries Trust


Note 2013 2012 $000 $000 Current Assets Cash and Cash Equivalents 5 27,667 15,741Receivables 6 12,057 10,932Prepayments 59 20Inventories 8 10,614 5,854Total Current Assets 50,397 32,547 Non-Current Assets Available for Sale Investments 7 174,381 150,163Inventories 8 7,098 10,612Investment Property 9 2,710 2,710Intangible Assets 10 1,119 855Property, Plant & Equipment 11 48,486 47,312Total Non-Current Assets 233,794 211,652 Total Assets 284,191 244,199 Current Liabilities Payables 12 4,662 3,213Unearned Income 13(a) 24,408 21,354Unfunded superannuation liability 12 0 2,996Provision for Employee Benefits 14 2,698 2,831Provision for Onerous Contract 13(b) 565 593Total Current Liabilities 32,333 30,988 Non-Current Liabilities Provision for Employee Benefits 14 752 542Total Non-Current Liabilities 752 542 Total Liabilities 33,085 31,530 Net Assets 251,106 212,669 Equity Contributed Capital 16 61,464 61,464Accumulated Surplus 16 5,691 4,684Property, Plant & Equipment Revaluation Surplus 16 914 914Available for Sale Investment Surplus 16 7,270 (10,064)Perpetual Maintenance Reserve 16 175,767 155,671Total Equity 251,106 212,669 Commitments 19 Contingent Assets and Contingent Liabilities 20 The Balance Sheet should be read in conjunction with the accompanying notes

Balance Sheet as at 30 June 2013


Note 2013 2012 $000 $000 Cash Flows from Operating Activities Receipts from Customers 52,867 50,656Goods and Services Tax refund from the ATO 1,979 2,006Investment Income Receipts 2,481 2,266Total Receipts 57,327 54,928Payments to Suppliers and Employees (38,679) (34,810)Goods and Services Tax paid to the ATO (2,083) (1,913)Total Payments (40,762) (36,723)Net Cash Flow from Operating Activities 17 16,565 18,204 Cash Flows from Investing Activities Payment for Property, Plant and Equipment (4,919) (5,710)Proceeds from the Sale of Assets 280 265Net Cash Flows used in Investing Activities (4,639) (5,445) Net Increase in Cash and Cash Equivalents 11,926 12,759 Cash and Cash Equivalents at the Beginning of the Period 5 15,741 2,982 Cash and Cash Equivalents at the End of the Period 5 27,667 15,741 The Cash Flow Statement should be read in conjunction with the accompanying notes.


Statement of Changes in Equity for the financial year ended 30 June 2013

Balance as at 1 July 2011 61,464 (1,017) 0 3,066 150,430 213,943 Net result for the period 0 10,943 0 0 0 10,943Other Comprehensive Income for the period 0 (1) 0 (13,130) 0 (13,131)Transfer from Accumulated Surplus/(Deficit) 0 (5,241) 0 0 5,241 0Transfer to Revaluation Reserve 0 0 914 0 0 914 Balance as at 30 June 2012 61,464 4,684 914 (10,064) 155,671 212,669 Net result for the year 0 21,103 0 0 0 21,103Other Comprehensive Income for the period 0 0 0 17,334 0 17,334Transfer from Accumulated Surplus/(Deficit) 0 (20,096) 0 0 20,096 0 Balance as at 30 June 2013 16 61,464 5,691 914 7,270 175,767 251,106

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Contributed Capital

Accumulated Surplus/(Deficit)

Property Plant and Equipment

Revaluation Reserve

Available for Sale Investment

Reserve

Perpetual Maintenance

Reserve

Total

Note $000 $000 $000 $000 $000 $000

Cash Flow Statement for the year ended 30 June 2013



Table of Contents1 Summary of Significant Accounting Policies 69

2 Revenue 83

3 Expenses 84

4 Depreciation and Amortisation 85

5 Cash and Cash Equivalents 85

6 Receivables 85

7 Available for Sale Investments 86

8 Inventories 86

9 Investment property - Land 87

10 Intangible Assets 87

11 Property, Plant & Equipment 87

12 Payables 89

13 Unearned Income 89

14 Provisions 90

15 Superannuation 91

16 Equity 91

17 Reconciliation of Net Cash Inflow from Operating Activities to Operating Result 93

18 Financial Instruments 93

19 Commitments 103

20 Contingent Assets and Contingent Liabilities 103

21 Responsible Persons & Executive Officers 104

21a Responsible Persons 104

21a Related Party Transactions 105

21b Executive Officer Disclosures 106

22 Ex-Gratia Payments 106

23 Remuneration of auditors 107

notes to the FINANCIAL STATEMENTS for the period ended 30 June 2013


1 Summary of Significant Accounting Policies 69

2 Revenue 83

3 Expenses 84

4 Depreciation and Amortisation 85

5 Cash and Cash Equivalents 85

6 Receivables 85

7 Available for Sale Investments 86

8 Inventories 86

9 Investment property - Land 87

10 Intangible Assets 87

11 Property, Plant & Equipment 87

12 Payables 89

13 Unearned Income 89

14 Provisions 90

15 Superannuation 91

16 Equity 91

17 Reconciliation of Net Cash Inflow from Operating Activities to Operating Result 93

18 Financial Instruments 93

19 Commitments 103

20 Contingent Assets and Contingent Liabilities 103

21 Responsible Persons & Executive Officers 104

21a Responsible Persons 104

21a Related Party Transactions 105

21b Executive Officer Disclosures 106

22 Ex-Gratia Payments 106

23 Remuneration of auditors 107

Southern Metropolitan Cemeteries Trust, Notes to the Financial Statements for the year ended 2013

1. Summary of Significant Accounting Policies

These annual financial statements represent the audited general purpose financial statements for Southern Metropolitan Cemeteries Trust (SMCT) for the year ended 30 June 2013. The purpose of the report is to provide users with information about the Cemetery Trusts’ stewardship of resources entrusted to it.

(a) Statement of ComplianceThese financial statements of Southern Metropolitan Cemeteries Trust (SMCT) are general purpose financial statements which have been prepared in accordance with the Financial Management Act 1994, applicable Australian Accounting Standards (AAS), which includes the interpretations issued by the Australian Accounting Standards Board (AASB).They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements.The financial statements also comply with relevant Financial Reporting Directions (FRD) issued by the Department of Treasury and Finance, and relevant Standing Directions (SD) authorised by the Minister for Finance.In complying with AAS, the SMCT has, where relevant, applied those paragraphs applicable for not-for-profit entities.The financial statements were authorised for issue by the Trust of on 15 August 2013.

(b) Basis of Accounting Preparation and MeasurementAccounting 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.The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2013, and the comparative information presented in these financial statements for the 12 months ended 30 June 2012. The going concern basis was used to prepare the financial statements.The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is they are recognised in the reporting

period to which they relate, regardless of when cash is received or paid.The financial statements are prepared in accordance with the historical cost convention, except for the revaluation of certain non-financial assets and financial instruments, as noted. Particularly, exceptions to the historical cost convention include:• Non-current physical assets, which subsequent to acquisition, are measured at valuation less any subsequent depreciation and subsequent losses and are re-assessed with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;• Investment properties after initial recognition, which are measured at fair value through profit and loss; and• Available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised.

Historical cost is based on the fair values of the consideration given in exchange for assets.In the application of AAS management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments. Actual results may differ from these estimates.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements and assumptions made by management in the application of AAS that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period, relate to:- The fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(k))- superannuation expense ( refer to Note 1 (g))- fair value of available for sale financial assets (refer to Note 1 (j))



(c) Reporting Entity The financial statements include all the controlled activities of the Southern Metropolitan Cemeteries Trust. SMCT was established under the Cemeteries and Crematoria Act 2003 and the operations are governed by the same Act. The financial statements’ of SMCT includes Brighton General Cemetery, Bunurong Memorial Park, Cheltenham Memorial Park, Cheltenham Pioneer Cemetery, Dandenong Community Cemetery, Melbourne General Cemetery, Springvale Botanical Cemetery and St Kilda Cemetery. The objective of SMCT is to provide cemetery, crematorium and memorialisation services to the public. The principal address is:Springvale Botanical CemeteryPrinces HighwaySpringvale, Victoria, 3171

(d) Scope and Presentation of Financial StatementsComprehensive operating statementThe comprehensive operating statement presents the operating result of SMCT. It presents significant categories of income and expenses included in the operating result to enhance the understanding of the financial performance of SMCT. It also shows other comprehensive income included in the comprehensive result for the year.

Balance SheetAssets and liabilities are categorised either as current or non-current (non-current being those assets or liabilities expected to be recovered more than 12 months after the reporting period), and are disclosed in the notes where relevant.

Statement of Changes in EquityThe Statement of Changes in Equity presents reconciliations of equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income related to other changes in equity. Cash Flow StatementCash flows are classified according to whether or not they arise from operating activities, investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.

Rounding All amounts shown in the financial statements are expressed to the nearest $1,000 unless otherwise stated.Minor discrepancies in tables between totals and sums of components are due to rounding. Comparative InformationWhere necessary the previous year’s figures are reclassified to facilitate comparisons. Functional and Presentation CurrencyThese financial statements are presented in Australian dollars, the functional and presentation currency of SMCT.

(e) Change in Accounting PoliciesThere is no change in accounting policies during this reporting period.

(f) Income RecognitionIncome is recognised in accordance with AASB 118 Revenue and is recognised to the extent that it is probable that the economic benefits will flow to SMCT and the income can be reliably measured. Amounts disclosed as revenue are where applicable, net of returns, allowances and duties and taxes. Unearned income at reporting date is reported as unearned income, in accordance with the guidance below. Cemetery Operations IncomeFees received for the rights of interment for graves, cremation memorials and mausoleum crypts are recognised as revenue at the time of purchase except for the memorialisation portion which is recognised at the time of interment. Fees received for interment, cremation and certain memorialisation products such as granite and plaques are recognised as revenue in the period that the goods or services are provided. Fees received in advance of service provision are recorded as unearned income in accordance with Note 1(l).

Dividend RevenueDividend revenue is recognised when the right to receive payment is established.

Interest RevenueInterest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset and allocates the interest over the relevant period.



Sale of InvestmentsThe gain/loss on the sale of investments is recognised when the investment is realised.

Fair Value of Assets and Services / -resources provided and received free of charge or for nominal considerationResources provided or received 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 cemetery or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer will be recognised at 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 received as donation.

(g) Expense RecognitionExpenses generally represent cost of goods sold, services provided and day to day running costs, including maintenance and administrative costs incurred in the normal operations of SMCT. Expenses are recognised as they are incurred and reported in the financial year to which they relate. Cost of Goods SoldCosts of goods sold are recognised when the sale of an item or right of interment occurs which includes costs directly incurred in providing the item and/or transferring the cost or value of the item/s or value of land related to the right of interment from inventories. Employee expensesEmployee expenses include:• wages and salaries;• annual leave; • sick leave; • long service leave; and• superannuation expenses which are reported differently depending upon whether employees are members of the defined benefit or defined contribution plans. SuperannuationIn relation to defined contribution (i.e.accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting

period. Contributions to defined contribution superannuation plans are expensed when incurred.In relation to defined benefit superannuation plans, the amount charged to the comprehensive operating statement represents contributions made by SMCT to the Superannuation plans in respect of the services of current SMCT staff. Superannuation contributions are based on the rules of each plan and based on actuarial advice.

DepreciationAssets with a cost in excess of $3,000 (2012: $3,000) are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives. Depreciation is calculated on a straight line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. Estimates of the remaining useful lives and depreciation method for all assets are reviewed at least annually and adjustments made where appropriate. Depreciation is provided on infrastructure assets, property, plant and equipment, including freehold buildings, but excluding land and investment properties (refer to Note 1(j)). Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management.

The following table indicates the depreciation rates in use: 2013 2012Buildings 2% to 7% 2% to 7% Plant and Equipment 4% to 50% 4% to 20% Infrastructure and Improvements 1% to 20% 1% to 7% Office Equipment, Furniture and Fittings 4% to 33% 4% to 25%

Intangible produced assets with finite lives are depreciated as an expense on a systematic basis over the asset’s useful life.

AmortisationIntangible assets with a cost in excess of $3,000 (2012: $3,000) are capitalised. Amortisation is allocated to non-produced intangible assets with finite useful lives on a straight-line basis over the asset’s useful life, and is recognised as an expense. Amortisation begins when the asset is



available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually or whenever there is an indication that the asset may be impaired by comparing its recoverable amount with its carrying amount. The useful lives of intangible assets that are not being amortised are reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. Any excess of the carrying amount over the recoverable amount is recognised as an impairment loss.Intangible assets with finite useful lives are amortised over 4-5 year period. (2012: 4-5 years)

Cemetery Levy In accordance with section 18Q of the Cemeteries and Crematoria Act 2003, SMCT is required to pay a percentage of gross earnings, as defined by the Department of Health, to the Consolidated Fund held by the State of Victoria. Gross earnings is defined as cemetery operations income and investment income, excluding donations, government grants, profit/loss on the sale of investments and other assets and assets received free of charge. The levy for this reporting period is 3% (2012: 3%).

(h) Other comprehensive incomeOther comprehensive income measures the change in volume or value of assets or liabilities that do not result form transactions.

Net gain/(loss) on non-financial assetsNet gain/ (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:- revaluation gains/(losses) on non-financial physical assets (refer note 1(k))- any gain/loss on disposal of non-financial

assets which is recognised at the date of disposal and is determined after deducting from the proceeds the carrying value of the asset at that time.

Net gain/(loss) on financial instrumentsNet gain/ (loss) on financial instruments includes:- realised and unrealised gains and losses from revaluations of financial instruments at fair value;- impairment and reversal of impairment for financial instruments at amortised cost (refer Note 1(j))- disposal of financial assets and de-recognition of financial liabilities

Other gains/(losses) from other comprehensive incomeOther gains/ (losses) 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;- transfer of amounts from the reserves to accumulated surplus or net result due to disposal or de-recognition or reclassification.

(i) Financial instrumentsFinancial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of SMCT’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract.

Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not.

The following refers to financial instruments unless otherwise stated. Loans and receivablesLoans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs.



Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less statutory receivables.

Loans and receivables category includes cash and deposits, term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables.

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Available–for-sale financial assetsAvailable-for-sale financial instrument assets are those designated as available-for-sale or not classified in any other category of financial instrument asset. Such assets are initially recognised at fair value. Subsequent to initial recognition, gains and losses arising from changes in fair value are recognised directly in equity until the investment is disposed of or it is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in the net result for the period.Fair value is determined in the manner described in Note 18.

(j) AssetsCash and Cash EquivalentsCash and cash equivalents comprise cash on hand and cash at bank, deposits at call and 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 which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

ReceivablesReceivables consist of:- Contractual receivables, which includes mainly debtors in relation to goods and services, loan’s to third parties, accrued investment income, and finance lease receivables; and- Statutory receivables, which includes predominantly amounts owing from the Victorian Government and GST input tax credits recoverable.

Receivables that are contractual 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 recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less any accumulated impairment.Trade debtors are carried at nominal amounts due and the default is for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectable are written off. A provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Other Financial AssetsInvestments and other financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. Investments are classified in the following categories:- financial assets at fair value through profit & loss- loans and receivables, and- available-for-sale financial assets

SMCT classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition.

SMCT assesses at each balance sheet date whether a financial asset or group of financial assets is impaired. All financial assets except those measured at fair value through profit and loss are subject to annual review for impairment.



Available-for-Sale Financial AssetsAvailable-for-sale financial assets are measured at fair value. Gains and losses arising from changes in fair value are recognised directly in equity until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in profit or loss for the period. Fair value is determined in the manner described in Note 18.

Impairment of Financial AssetsAt the end of each reporting period, SMCT 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 are classified as an expense. Financial assets including available for sale investments have been assessed for impairment in accordance with Australian Accounting Standards. Where the fair value of an investment at balance date has reduced by 20 per cent or more than its cost price; or where its fair value has been less than its cost price for a period of 12 or more months, the investment is treated as impaired.In order to determine an appropriate fair value as at 30 June 2013 for its portfolio of financial assets, SMCT obtained a valuation by independent investment advisors and compared it to the purchase price/valuation of the financial asset. This process was used to quantify the level of impairment on the portfolio of financial assets as at the end of the period.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.

Net Gain/ (Loss) on Financial InstrumentsNet gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost and disposals of financial assets.

Revaluations of Financial Instruments at Fair ValueThe revaluation gain/ (loss) on financial instruments at fair value excludes dividends or interest earned on financial assets.

Derecognition of financial assetsA financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:- the rights to receive cash flows from the asset have expired; or- the Cemetery retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement or- the Cemetery has transferred its rights to receive cash flows from the asset and either:• has transferred substantially all the risks and rewards of the asset; or• has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.Where the Cemetery has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Cemetery’s continuing involvement in the asset.

(k) Non-Financial AssetsInventoriesInventories include goods and other property held either for sale or for distribution at zero or nominal consideration, or for consumption in the ordinary course of business operations. It excludes depreciable assets. Inventories include land allocated for interment purposes held for sale. Inventory of land allocated for interment purposes is measured at the lower of cost and net realisable value on the basis of weighted average cost and includes adjacent land and landscaping that add to the amenity of the land for interment. Inventories are classified as either works in progress or finished goods. Works in progress includes undeveloped land and expenditure on inventories partially constructed, but not available for sale. Finished goods represent inventories available for sale to customers including land to be used for interment purposes. Inventories also include stock held in maintenance stores, stocks of pre-cast concrete lined graves, pre-poured foundations for graves, memorial wall niches, mausoleum crypts



and granite. These inventories are measured at the lower of cost and net realisable value. Cost for these inventories is determined on the basis of weighted average cost.

Inventories acquired for no cost or nominal consideration, are measured at current replacement cost at the date of acquisition.

Inventories expected to be sold/utilised within 12 months are recorded as current, with the balance as non-current assets.

Property, Plant and EquipmentAll non-current physical assets are measured initially at cost and subsequently re-valued at fair value less accumulated depreciation and impairment. Whare an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a merger/machinery of government are transferred at their carrying amount.

Crown Land controlled by SMCT has two primary purposes: use for right of interments and use for infrastructure (e.g. roads, chapels, buildings etc) supporting the cemetery and crematorium operations. Land used for rights of interments is accounted for as inventory in accordance with the inventories note as outlined above, whereas land used for infrastructure purposes is accounted for as part of property, plant and equipment as outlined in this note.

Crown land which has been reserved for cemetery and crematoria purposes, is measured at fair value with regard to the land’s highest and best use after due consideration is made for legal and/or constructive restrictions imposed on the land, public announcements or commitments made in relation to the intended use of the land. 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.

Land and Buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment.

Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.

Revaluations of Non-Current Physical Assets Non-current physical assets measured at fair value are re-valued in accordance with FRD 103D Non-Current Physical Assets. A full revaluation normally occurs at least 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 used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRD’s. Revaluation increments or decrements arise from differences between an asset’s carrying value and fair value. Revaluation increments are recognised in other comprehensive income and accumulated in the property, plant and equipment revaluation surplus, except that to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in the operating result, the increment is recognised as income in the operating result.Revaluation decrements are recognised immediately as expenses in the operating result, except that, to the extent that a credit balance exists in the property, plant and equipment revaluation surplus in respect of the same class of assets, they are debited directly to the property, plant and equipment revaluation surplus.

Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes.

Revaluation surplus relating to an asset is normally not transferred to accumulated funds on de-recognition of the relevant asset.

Cemetery land was formally valued as at 30 June 2012 by the Valuer-General of Victoria in accordance with the requirements of FRD 103D Non-Current Physical Assets, issued pursuant to the Financial Management Act 1994. The next scheduled revaluation under FRD 103D is set for the year ending 30 June 2017 or earlier if there is an indication that fair values have moved materially since the last valuation.



Investment PropertyInvestment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the State of Victoria.

Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the cemetery.

Subsequent to initial recognition at cost, investment properties are re-valued to fair value by independent valuation. Changes in the fair value are recognised as income or expenses in the period that they arise. Investment properties are neither depreciated nor tested for impairment.

Rental revenue from leasing of investment properties is recognised in the comprehensive operating statement on a straight line basis over the lease term.

Intangible AssetsIntangible assets represent identifiable non-monetary assets without physical substance, and include computer software and development costs. Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Intangible assets with indefinite useful lives are not amortised but are assessed for impairment annually or whenever there is indication that the intangible assets may be impaired. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the cemetery.

PrepaymentsPrepayments 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.

Disposal of Non-Financial AssetsAny gain or loss on the sale of non-financial assets is recognised in the operating result at the date that control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time.

Impairment of Non-Financial AssetsGoodwill and intangible assets with indefinite lives (and intangible assets not yet available for use) are tested annually for impairment (as described below) and whenever there is an indication that the asset may be impaired.Apart from intangible assets with indefinite useful lives (and intangible assets not yet available for use), all other assets are assessed annually for indications of impairment, except for:• inventories;• financial assets; and• investment properties that are measured at fair value. 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 asset’s carrying value exceeds its recoverable amount, the difference is written-off as an expense except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that same class of asset.

If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be changed to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

It is deemed that, in the event of the loss 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.

(l) LiabilitiesPayablesPayables consist of:- contractual payables which consist predominantly of accounts payable representing liabilities for goods and services provided to the Trust prior to



the end of the financial year that are unpaid, and arise when the Trust becomes obliged to make future payments in respect of the purchase of these goods and services- the normal credit terms for accounts payable are usually Nett 30 days

Statutory payables include payables such as goods and services tax and fringe benefits tax payable.

Contractual payables are classified as financial instruments and initially recognised at fair value, and then subsequently carried 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.

ProvisionsProvisions are recognised when the Trust 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 the 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 the 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 BenefitsThis provision arises for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.

Wages and Salaries, Annual Leave, Sick Leave and Rostered Days OffLiabilities for wages and salaries, including non-monetary benefits, annual leave, accumulating sick leave and rostered days

off which are expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee’s services up to the reporting date, classified as current liabilities and measured at their nominal values.

Those liabilities that are not expected to be settled within 12 months are also recognised in the provision for employee benefits as current liabilities, but are measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

Long Service LeaveThe liability for long service leave (LSL) is recognised in the provision for employee benefits.

Current Liability – unconditional Long Service Leave (LSL) (representing seven or more years of continuous service) is disclosed in the notes to the financial statements as a current liability even where SMCT 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:• present value: component that SMCT does not expect to settle within 12 months; and• nominal value: component that SMCT expects to settle within 12 months.

Non-Current Liability – conditional LSL (representing less than seven years of continuous service) 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. Conditional LSL is required to be measured at present value.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates of Commonwealth Government guaranteed securities in Australia.



Continuity of Service entitlement was introduced at the former Necropolis in the year 2000, for recognition of service by employees who had served 10 years or more The continuity of service benefit is accrued by employees employed under certain enterprise agreements and/or employment contracts from commencement of employment. This benefit is being progressively phased out.

The components of continuity of service are accounted for in a manner consistent with long service leave, other than the qualifying period of employment is 10 years rather than seven years and it is only payable upon resignation or retirement from employment.

Termination BenefitsTermination benefits are payable when employment is terminated before the normal retirement date or when an employee accepts voluntary redundancy in exchange for these benefits.

Liabilities for termination benefits are recognised when a detailed plan for the termination has been developed and a valid expectation has been raised with those employees affected that the terminations will be carried out. The liabilities for termination benefits are recognised in other creditors unless the amount or timing of the payments is uncertain, in which case they are recognised as a provision.

On-CostsEmployee benefits on-costs, such as workers compensation premiums and superannuation, are recognised separately from provision for employee benefits.

SuperannuationEmployees of SMCT are entitled to receive superannuation benefits and SMCT contributes to both defined benefit and defined contribution plans.

Defined Contribution Superannuation PlanThe defined contribution funds receives both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings in accordance with the Superannuation Guarantee Legislation (9%). SMCT’s current contribution ranges between 9% and 10%. No further liability accrues to the employer as the superannuation benefits accruing to employees are represented by their share of the net assets of the Superannuation Fund.

Defined Benefit Superannuation PlanThe defined benefit plans provide benefits to employees based on years of service and final average salary. SMCT makes employer contributions to the defined benefits category of the Superannuation Fund at a minimum of the rate determined by the Fund’s Trustee (9.25%), on the basis of the results of the most recent full actuarial investigation conducted by the Fund’s actuary as at 31 December 2011. SMCT’s current contribution ranges between 9.25% to 12.75% of superannuation salary, plus any difference between the resignation and retrenchment benefits paid to any retrenched employees, plus contribution tax.

Unfunded Defined Benefit Superannuation LiabilityThe Local Authorities Superannuation Fund (LASF), known as Vision Super since 2002, is a not-for-profit industry fund for cemeteries and certain other agencies. Vision Super is the Trustee of both the defined benefit plan (closed since 1993) and the Super Saver (accumulation) fund.In accordance with regulations, the Fund’s Trustees are required to complete an actuarial review of superannuation funds at least every three years to ensure the current assets are adequate to meet the benefits that have previously been promised to member. In early 2012, Vision Super wrote to all participating cemeteries and other agencies regarding the results of their actuarial investigation into the LASF defined benefit plan. The result was a $453m shortfall for the total LASF plan.

The accounting treatment for contributions to defined contributions and defined benefit plans has been outlined in Note 1(g).

Unearned IncomeUnearned income represents monies received in advance of service provision for items including interment, cremation and certain memorialisation products such as granite and plaques. These monies are recorded as revenue in the year that the goods or services are provided and unearned income at reporting date.

As SMCT does not have an unconditional right to defer settlement, the liability for prepaid fees is recorded as a current liability. Prepaid fees are recorded at their nominal contractual value.



Onerous Contracts (on Unearned Income)Provisions are recognised when either a legal or constructive obligation, as a result of a past event, exists at the balance sheet date and where the amount of the obligation can be reliably estimated and the future sacrifice of economic benefits is probable. A provision will also be recognised for onerous contracts where the unavoidable costs of meeting the contractual obligations exceed the economic benefits that are expected to be received under the contract.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. 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.

A provision is recognised in relation to prepaid fees where the current cost of providing the purchased goods and/or services is expected to be greater than the amount received/revenue to be recognised, and the current costs can be reliably measured. The provision represents the value of the expenditure required to provide the goods and/or service, less the amount of revenue to be recognised.

At this time, SMCT is aware that there will be ongoing significant cash outflows for future expenditure on perpetual maintenance of the public cemetery but is unable to calculate a sufficiently reliable estimate of any related present obligation which may arise under the accounting standards and accordingly has not recognised a value for this obligation in these financial statements. De-recognition of financial liabilitiesA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised as an expense in the estimated consolidated comprehensive operating statement.

(m) 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.Leases of property, plant and equipment are classified at their inception as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.SMCT is not currently a party to any operating or finance leases.

(n) EquityContributed CapitalConsistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions that have been designated as contributed capital are treated as contributed capital.

Property, Plant and Equipment Revaluation SurplusThe property, plant and equipment revaluation surplus is used to record increments and decrements on the revaluation of non-current physical assets.

Available-for-Sale Investment Revaluation SurplusThe available-for-sale investment revaluation surplus arises on the revaluation of available-for-sale financial assets. Where a re-valued financial asset is sold, the portion of the surplus which relates to that financial asset is effectively realised, and is recognised in the operating result. Where an available-for-sale financial asset is impaired, the cumulative loss that had been recognised in other comprehensive income is reclassified from equity to operating result.

Perpetual Maintenance ReserveUnder section 12 of the Cemeteries and Crematoria Act 2003, SMCT must have regard to the perpetual maintenance obligations of cemeteries entrusted within its care. Fees received in respect of the rights of interments for cremation memorials, graves and mausoleum crypts include amounts for perpetual maintenance to be carried out in future years.



Such amounts are transferred to the relevant reserve and released in equal amounts over the periods for which the maintenance has been contracted. SMCT sets aside monies into the reserve from the sale of each right of interment as follows:• Cremation Memorials: 60%• Graves: 90%• Mausoleum Crypts: 70%

These funds are amortised equally over 100 years, other than cremation memorials with limited tenure, which are amortised over the period of the tenure.

(o) Commitments Commitments are for future expenditure including operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to note 19) at their nominal value and are inclusive of the goods and services tax (GST) payable. In addition, where it is considered appropriate and it provides additional information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.

(p) Contingent Assets and Contingent LiabilitiesContingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.

(q) Goods and Services Tax Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the 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.

(r) AASs issued that are not yet effectiveCertain new Australian accounting standards and interpretations have been published that are not mandatory for the 30 June 2013 reporting period.

As at 30 June 2013, the following standards and interpretations have been issued but were not mandatory for the reporting period 30 June 2013. SMCT has not and does not intend to adopt these standards early.



Standard/Interpretation

AASB 9 Financial instruments

AASB 13 Fair Value Measurement

AASB 119 Employee Benefits

AASB 1053 Application of Tiers of Australian Accounting Standards

AASB 1055 Budgetary Reporting

Applicable for annual reporting periods beginning on

1 Jan 2015

1 Jan 2013

1 Jan 2013

1 Jan 2013

1 Jan 2014

Summary

This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).

This Standard outlines the requirements for measuring the fair value of assets and liabilities and replaces the existing fair value definition and guidance in other Australian accounting standards. AASB 13 includes a ‘fair value hierarchy’ which ranks the valuation technique inputs into three levels using un-adjusted quoted prices in active markets for identical assets or liabilities; other observable inputs; and unobservable inputs.

In this revised Standard for defined benefit superannuation plans, there is a change to the methodology in the calculation of superannuation expenses, in particular there is now a change in the split between superannuation interest expense (classified as transactions) and actuarial gains and losses (classified as ‘Other economic flows – other movements in equity’) reported on the comprehensive operating statement. This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.

This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.

AASB 1055 extends the scope of budgetary reporting that is currently applicable for the whole of government and general govern-ment sector (GGS) to NFP entities within the GGS, provided that these entities present separate budget to the parliament.

Impact on public sector entity financial statements

Subject to AASB’s further modifications to AASB 9, together with the anticipated changes resulting from the staged projects on impairments and hedge accounting, details of impacts will be assessed.

Disclosure for fair value measurements using unobservable inputs are relatively detailed compared to disclosure for fair value measurements using observable inputs. Consequently, the Standard may increase the disclosures required assets measured using depreciated replacement cost.

Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. While the total superannuation expense is unchanged, the revised methodology is expected to have a negative impact on the net result from transactions a few Victorian public sector entities that report superannuation defined benefit plans.

The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) for certain public sector entities, and has not decided if RDRs will be implemented in the Victorian public sector.

The entity will be required to restate in the financial statements the budgetary information in accordance with the presentation format prescribed in Australian Accounting Standards and explain the significant variances from the original budget.



In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2012-13 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting.

• AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9. • AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. • AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). • AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements. • AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13. • AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011). • AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements. • 2012-1 Amendments to Australian Accounting Standards - Fair Value Measurement - Reduced Disclosure Requirements. • 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities. • 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities. • 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011 Cycle. • 2012-7 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. • 2012-9 Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039. • 2012-10 Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments. • 2012-11 Amendments to Australian Accounting Standards – Reduced Disclosure Requirements and Other Amendments. • 2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements. • 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets.



Note 2013 2012 $000 $000

Cemetery Operations Income Mausoleum Income 9,549 12,037Interment Income 3,954 3,823Grave Income 14,318 12,896Cremation Income 6,135 5,842Cremation Memorial Income 5,040 4,915Memorialisation 4,767 4,546Government Grants 0 174Other Income 3,932 2,855Profit/(Loss) on Disposal of Property, Plant and Equipment 2(b) 86 (109) Total Cemetery Operations Income 47,781 46,979

2b Profit/(Loss) on Disposal of Property,

Plant & Equipment

Profit/(Loss) on Disposal of Property, Plant and Equipment Proceeds 280 265Written Down Value of Property, Plant and Equipment disposed (194) (374) Total Profit/(Loss) on Disposal of Property, Plant and Equipment 86 (109)

2c Investment Income

Investment Income Interest income Interest from Cash and Cash Equivalents 435 352Interest from Available for Sale Investments 1,095 649 1,530 1,001Distributions 7,947 6,737Net Gain due to Fair Value Adjustment of Investment Property 0 310Other Investment Income 951 867 Total Investment Income 10,428 8,915

2. Revenue2a Cemetery Operations Income



2013 2012 $000 $000

Cost of Sales Rights of Interment 3,686 4,233Memorialisation 1,810 1,996Other 499 222Total Cost of Sales 5,995 6,451

3b Cemetery Levy

Cemetery Levy 1,737 1,642Total Cemetery Levy 1,737 1,642

3c Expenses

Expenses Employee Expenses 16,426 17,655Maintenance and Operating Costs 3,289 3,254Administrative Costs 3,159 2,529Other operating costs 2,066 1,438Investment management fees 1,162 1,066 Other expenses Impairment of Non Financial Assets 0 7,700 Total Expenses 26,102 33,642

The impairment of Non Financial Assets in 2012 is due to the revaluation performed by the Valuer General and represents changes to the valuation of Cemetery Land ($1.85m) and Buildings & Infrastructure ($5.85m) as contained in Note 11.1.

3. Expenses3a Cost of Sales



Note 2013 2012 $000 $000

Depreciation Buildings, Infrastructure and Improvements 1,471 2,046Plant and Equipment 1,038 584Office Equipment, Furniture and Fittings 206 81Total Depreciation 11.1 2,715 2,711 Amortisation Computer Software 10 473 429Total Amortisation 473 429 Total Depreciation and Amortisation 3,188 3,140

5. Cash and Cash Equivalents Cash and Cash Equivalents

Cash on Hand 6 4 Cash at Bank 27,661 15,737

Total Cash and Cash Equivalents 27,667 15,741

For the purposes of the Cash Flow Statement, cash assets includes cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in value.

6. Receivables Receivables Trade Debtors 1,482 1,462

Sundry Debtors 5,865 4,735 Accrued Interest and Distributions 4,710 4,734

Total Receivables 12,057 10,932

No impairment for credit losses has been recorded in a separate account during the financial period. The nature and extent of risk arising from receivables (excluding statutory receivables such as GST) and ageing of receivables is contained in Note 18.

4. Depreciation and Amortisation



Note 2013 2012 $000 $000

Available for Sale Investments Non-Current Interest Bearing Investments 12,151 10,538Managed Units Investments 162,230 139,625Total Available for Sale Investments 1(i) 174,381 150,163

8. Inventories

Inventories Current Work in Progress Land: Interment Purposes 2,331 2,368 Grave Foundations/Beams 2,107 0 Mausoleum Crypts 2,045 86 6,483 2,454

Finished Goods Consumables/Maintenance Stores 122 102 Land: Interment Purposes 95 104 Grave Foundations/Beams 977 1,009 Mausoleum Crypts 2,774 2,011 Cremation Memorials 44 46 Other 119 128 4,131 3,400 Total Current Inventories 10,614 5,854

Non-Current Finished Goods Land: Interment Purposes 364 382 Grave Foundations/Beams 941 1,260 Mausoleum Crypts 4,505 7,644 Cremation Memorials 1,288 1,326 Total Non-Current Inventories 7,098 10,612

Total Inventories 17,712 16,466

Represented by: Consumables/Maintenance Stores 122 102 Land: Interment Purposes 2,790 2,854 Grave Foundations/Beams 4,024 2,269 Mausoleum Crypts 9,325 9,741 Cremation Memorials 1,333 1,372 Other 118 128 Total Inventories 17,712 16,466

7. Available for Sale Investments



Note 2013 2012 $000 $000

Investment Property Balance at the Beginning of the Period 2,710 2,400Net Gain from Fair Value Adjustments 0 310Balance at the End of the Period 2,710 2,710

The fair value of the investment property as at 30 June 2012 has been arrived at using an independent valuation carried out at that date by Ray Buckley, Certified Practising Valuer on behalf of the Valuer-General of Victoria. The valuation, which conforms to Australian Valuation Standards, was arrived at by reference to market evidence of transaction prices for similar properties

10. Intangible Assetss

Capitalised Computer Software 2,463 1,727 Accumulated Amortisation (1,344) (872) Total Intangible Assets 1,119 855

Intangible Assets Movement Reconciliation Balance at the Beginning of the Period 855 1,273 Additions 737 11 Amortisation 4 (473) (429) Balance at the End of the Period 1,119 855

11. Property, Plant & Equipment Cemetery Land Infrastructure 2,923 2,975

Total Land 2,923 2,975

Buildings, Infrastructure and Improvements at Fair Value 39,682 39,224 Less Accumulated Depreciation (1,518) (23) Total Buildings, Infrastructure and Improvements 38,164 39,201

Plant and Equipment at Fair Value 5,655 5,190 Less Accumulated Depreciation (1,640) (899) Total Plant and Equipment 4,015 4,291

Office Equipment, Furniture and Fittings at Fair Value 1,489 616 Less Accumulated Depreciation (464) (218) Total Office Equipment, Furniture and Fittings 1,025 398

Capital Works in Progress at cost 2,359 447 Total Property, Plant & Equipment 48,486 47,312

9. Investment Property



Balance as at 1 July 2011AdditionsCompleted WorksDisposalsDepreciationRevaluation of Non-Financial assets (i)Impairment of assetsBalance as at 30 June 2012

Balance as at 1 July 2012AdditionsExpenditure on Capital WorksCompleted WorksDisposalsDepreciationTransfers Balance as at 30 June 2013

Cemetery Land Infrastructure

$000

4,82500000

(1,850)2,975

2,9750

(52)0000

2,923

Buildings, Infrastructure

and Improvements

$000

45,112334

1,736(85)

(2,046)0

(5,850)39,201

39,20170

2570

(1,471)170

38,164

Total

$000

54,4022,768

(11)(350)

(2,711)914

(7,700)47,312

47,3126,222

(1,405)(736)(192)

(2,715)(0)

48,486

11.1 Reconciliation of Property, Plant and EquipmentReconciliation of the carrying amounts of each class of asset for SMCT at the beginning and end of the current financial period is set out below.

Plant and Equipment

$000

3,46414

748(265)(584)914

04,291

4,291292

0915

(192)(1,038)

(253)4,015

Office Equipment,

Furniture and Fittings

$000

3259

1450

(81)00

398

398150

7340

(206)83

1,024

Capital Works

in Progress

$000

6762,411

(2,641)0000

447

4475,908

(1,353)(2,643)

000

2,359

(i) A full revaluation was completed in accordance with FRD 103D Non-Current Physical Assets for the year ended 30 June 2012.



2013 2012 $000 $000

Payables Current Contractual

Trade Creditors 1,420 782 Accruals 2,846 2,301 Other Creditors 369 71 Statutory Net GST Payable 28 59 Total Payables 4,663 3,213 Unfunded Superannuation Liability Unfunded superannuation liability 0 2,996 0 2,996

The nature and extent of risk arising from payables and ageing of payables is contained in Note 18.

13. Unearned Income

13a Unearned Income

Current Income received in advance 24,408 21,354

Unearned Income 24,408 21,354

13b Provision for Onerous Contracts

Balance at the beginning of period 593 644 Amount taken to operating statement (28) (51)

Provision for Onerous Contract 565 593

12. Payables



Note 2013 2012 $000 $000

Current Provisions Employee benefits (i)

Annual Leave (unconditional and expected to be settled within 12 months) (ii) 977 888

Rostered Days Off (unconditional and expected to be settled within 12 months) (ii) 58 58

Long Service Leave (unconditional and expected to be settled within 12 months) (ii) 235 206

Long Service Leave (unconditional and expected to be settled after 12 months) (iii) 1,123 1,347

Continuity of Service (conditional and expected to be settled within 12 months) (ii) 31 35

2,423 2,534Provision relating to employee benefit On-Costs Annual Leave (unconditional and expected to be settled within 12 months) (ii) 112 106

Rostered Days Off (unconditional and expected to be settled within 12 months) (ii) 7 7

Long Service Leave (unconditional and expected to be settled within 12 months) (ii) 156 184

Total Current 2,698 2,831Non-Current

Long Service Leave (conditional and expected to be settled after 12 months) (iii) 275 247Continuity of Service (conditional and expected to be settled after 12 months) (iii) 436 266On-costs Long Service Leave (conditional and expected to be settled after 12 months) (iii) 32 29On-costs Continuity of Service (conditional and expected to be settled after 12 months) (iii) 9 0

Total Non-Current 752 542Total Provision for Employee Benefits 1(l) 3,450 3,373 Movement in Provision for Long Service Leave Balance at the Beginning of the Period 2,013 1,857Provisions made during the Period

Revaluations due to Change in Discount Rates (201) (85)Expense Recognising Employee Service 446 505

Payments for Long Service Leave (438) (265)Balance at the End of the Period 1,820 2,013 Movement in Provision for Annual Leave Balance at the Beginning of the Period 994 962Provisions made during the Period Expense Recognising Employee Service 1,039 1,005 Payments for Annual Leave (944) (973) Balance at the End of the Period 1,089 994

(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued to the employees, not including on-costs. (ii) The amounts disclosed are nominal amounts (iii) The amounts disclosed are discounted to present values.

14. Provision for Employee Benefits



15. SuperannuationEmployees of SMCT are entitled to receive superannuation contribution benefits and SMCT contributes to both defined benefit and defined contribution plans as outlined in Note 1(i). The name and details of the major superannuation funds and contributions made by SMCT are as follows:

Contribution for Contribution Contribution for Contribution the Period Ending Outstanding the Period Ending Outstanding 30/06/2013 at the Period End 30/06/2012 at the Period End 30/06/2013 30/06/2012 $000 $000 $000 $000Defined Benefits LASB/Vision Super 413 0 384 3,000Defined Contributions Vision Super 747 69 907 0Other 304 32 341 0Total 1,464 101 1,632 3,000

The amount shown as defined benefits as at 30 June 2012 includes an accrual of $3.0 million due to unfunded superannuation liabilities as disclosed in Note 1(l).

16. Equity 2013 2012

$000 $000

Equity Contributed Capital 61,464 61,464Accumulated Surplus 5,691 4,684Property, Plant and Equipment Revaluation Surplus 914 914Available for Sale Investment Surplus 7,270 (10,064)Perpetual Maintenance Reserve 175,766 155,671Total Equity 251,105 212,669

16.1 Accumulated Surplus

The movement in Accumulated Surplus during the reporting period is outlined in the following table:

Movement in Retained Earnings Balance at the Beginning of the Period 4,684 (1,017)Net Result for the Period 21,103 10,943Other comprehensive income for the period 0 (1)Transfer to Perpetual Maintenance Reserve (20,095) (5,241)Balance at the End of the Period 5,692 4,684



Note 2013 2012 $000 $000

The movement in Available for Sale Investment Revaluation Surplus during the reporting period is outlined in the following table:

Movement in Available for Sale Investment Surplus Balance at the Beginning of the Period (10,064) 3,066Valuation Gain/(Loss) Recognised 17,334 (13,130)Balance at the End of the Period 7,270 (10,064)

16.3 Perpetual Maintenance Reserve

The Perpetual Maintenance Reserve is represented by:

Represented by Cremation Memorials 29,697 27,537Graves 93,597 81,680Mausoleum Crypts 52,472 46,454Balance at the End of the Period 175,766 155,671 Movement in Perpetual Maintenance Reserve Balance at the Beginning of the Period 155,671 150,430Additional Funds transfer to the Reserve due to sales 22,415 6,112Funds amortised to provide for perpetual maintenance (2,320) (871)Balance at the End of the Period 175,766 155,671

The perpetual maintenance reserve relates funds set aside for SMCT to meet its obligations under the Cemeteries and Crematoria Act 2003 to maintain cemeteries entrusted within its care into perpetuity. Additional information is contained in Note 1(n) and Note 20.

16.4 Property Plant & Equipment Surplus

The Property Plant & Equipment Surplus is represented by:

Property, Plant & Equipment Surplus Plant & Equipment 914 914Balance at the End of the Period 914 914 Represented by Plant & Equipment Balance at beginning of the period 914 0Revaluation increment 0 914Balance at end of the period 914 914

16.2 Available for Sale Investment Revaluation Surplus



Note 2013 2012 $000 $000

Result for the Period 21,103 10,943 Non-Cash Flows in Operating Result Depreciation/Amortisation 4 3,188 3,140Impairment of Non Financial Assets 0 7,700Profit/(Loss) on Disposal of Property, Plant and Equipment (86) 109Fair value gain on investment properties 0 (310)Investment income that has no cash movement (6,785) (6,737) Changes in Assets and Liabilities (Increase)/Decrease in Receivables (1,125) 641(Increase)/Decrease in Prepayments (39) 26(Increase)/Decrease in Inventories (1,247) (1,618)Increase/(Decrease) in Payables (1,546) 1,920Increase/(Decrease) in Provisions 49 (88)Increase/(Decrease) in Unearned Income 3,054 2,476Net Cash Flows from/(used in) Operating Activities 16,565 18,204

18. Financial Instruments

18.1 Financial Management Objectives and Policies

SMCT’s principal financial instruments comprise: • Cash assets• Receivables (excluding statutory receivables)• Available for Sale Investments• Payables (excluding statutory payables)

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 SMCT’s financial risk within the government policy parameters.

17. Reconciliation of Net Cash Inflow from Operating Activities to Operating Result



(i) Categorisation of Financial Instruments*

Account Balance Note Category Carrying Carrying Amount Amount 2013 2012 $000 $000

Financial Assets Cash and Cash Equivalents 5 Cash 27,667 15,741Receivables 6 Receivables (at amortised cost) 12,057 10,932Available for Sale Investments 7 Available for Sale Investments (at fair value through equity) 174,381 150,163Total Financial Assets 214,105 176,836 Financial Liabilities Payables 12 Financial Liabilities (at amortised cost) 4,635 6,150Total Financial Liabilities 4,635 6,150 Net Holding Gain/(Loss) on Financial Instruments by Category Financial Assets Cash and Cash Equivalents 435 352Available for Sale Investments (at fair value through equity) 26,651 (6,592)Total Financial Assets 27,086 (6,240)

*The total amount of financial assets and liabilities disclosed here excludes statutory receivables (e.g. GST input tax credits receivable) and statutory payables (e.g.tax payable).For cash and cash equivalents, receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result.

18.2 Credit RiskCredit risk arises from the financial assets of SMCT which comprise cash and cash equivalents, trade and other receivables and available for sale investments. The exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to SMCT. Credit risk is measured at fair value and is monitored on a regular basis.Provision of impairment for financial assets is calculated based on past experience, and current and expected changes in client credit ratings.

(i) Policy in Managing Credit RiskSMCT does not have any material credit risk exposure to a single debtor or group of debtors. In respect to trade and sundry receivables, SMCT minimises concentrations of credit risk by undertaking transactions with a large number of customers. Trade debtors are normally paid within 30 days of end of month. Sundry debtor terms are normally up to a maximum of five months.In addition, management reviews on an ongoing basis the age analysis of receivables to assess the quality of them and apply any action required to ensure the collectability of the debt. According to successful past experience in managing the credit risk on receivables, SMCT has assessed this risk as low.

(ii) Maximum Exposure to Credit Risk

SMCT’s maximum exposure to credit risk at balance date in relation to each class of financial asset is represented below:

Note 2013 2012 $000 $000

Financial Assets Cash and Cash Equivalents 5 27,667 15,741Receivables 6 12,057 10,932Available for Sale Investments 7 174,381 150,163Total Financial Assets 214,105 176,836

(iii) Credit Quality of Contractual Financial Assets that are Not Past Due, Nor Impaired as at 30 June 2013 ($000)



Cash and Cash Equivalents Cash on Hand 0 0 6 6 Cash at Bank 27,661 0 0 27,661Receivables 0 0 12,057 12,057Available for Sale Investments Interest Bearing 0 12,151 0 12,151 Managed Units 0 0 162,230 162,230Total financial assets 27,661 12,151 174,293 214,105

Financial Institutions Financial Institutions Other Total (AAA Credit Rating) (A Credit Rating) (Not Rated)

Management has assessed the credit risk associated with the cash and cash equivalents as minimal. The amounts are allocated to reputable financial institutions which have a high credit rating.Investments are managed in accordance with our investment policy, which stipulates, where applicable minimum credit ratings. The vast majority of investments are managed unit funds, which are not explicitly rated, although, the underlying investments within each fund may have a higher credit rating than the applicable minimum required. The investment policy is reviewed regularly by management in conjunction with independent investment advisors. SMCT uses external advisers to manage most of the funds allocated as available for sale financial assets. The total funds invested are diversified across a range of reputable and experienced external managers and financial institutions. This mitigates the credit risk on this class of financial assets. Investments are managed within the parameters of SMCT’s investment policy.



(iv) Ageing Analysis of Financial Assets as at 30 June 2013 ($000)

Financial Assets

Cash and Cash Equivalents Cash on Hand Cash at Bank Receivables Available for Sale Investments Interest Bearing Managed Units

Ageing Analysis of Financial Assets as at 30 June 2012 ($000)

Financial Assets

Cash and Cash Equivalents Cash on Hand Cash at Bank Receivables Available for Sale Investments Interest Bearing Managed Units

Currently SMCT does not hold any collateral as security nor credit enhancements relating to any of its financial assets. The total amounts disclosed here exclude statutory amounts (e.g. GST input tax credits receivable)

Not Past Due and Not

Impaired

627,66111,575

12,151162,230213,623

Not Past Due and Not

Impaired

415,73710,763

10,538139,625176,667

Less Than 1 Month

00

373

00

373

Less Than 1 Month

0 0 131

0 0 131

1-3 Months

0069

0069

1-3 Months

0 0 38

0 0 38

3-12 Months

0040

0040

3-12 Months

000

000

1-5 Years

000

000

1-5 Years

000

000

Impaired Financial

Asset

000

000

Impaired Financial

Asset

000

000

Carrying Amount

627,66112,057

12,151162,230214,105

Carrying Amount

415,73710,932

10,538

139,625176,836

Past Due but Not Impaired

Past Due but Not Impaired

Credit Quality of Contractual Financial Assets that are Not Past Due, Nor Impaired as at 30 June 2012 ($000)

Cash and Cash Equivalents Cash on Hand 0 0 4 4 Cash at Bank 15,737 0 0 15,737Receivables 0 0 10,932 10,932Available for Sale Investments Interest Bearing 5,663 4,875 0 10,538 Managed Units 0 0 139,625 139,625Total financial assets 21,400 4,875 150,561 176,836

Financial Institutions Financial Institutions Other Total (AAA Credit Rating) (A Credit Rating) (Not Rated)



18.3 Liquidity Risk

Liquidity risk arises when SMCT is unable to meet obligations associated with financial liabilities when they fall due.

(i) Policy in Managing Liquidity RiskSMCT’s objectives in managing liquidity risk is to ensure that all obligations will be met as they fall due, while ensuring maximum funds are available for investment to meet longer term perpetual maintenance requirements.SMCT manages liquidity risk by monitoring cash flows to ensure sufficient funds are maintained in the transactional bank account to meet liabilities as they fall due. This is done while ensuring that surplus funds are transferred for investment. Daily monitoring occurs, with monthly reports delivered to management regarding the cash flow position and cash flow forecasts. SMCT believes that this policy ensures sufficient funds are held to allow for the proper administration of the Trust.SMCT has assessed this risk as minimal considering the current positive position of cash flow from operations and nature of the current assets, available for sale investments and current liabilities.

(ii) Maximum Exposure to Liquidity RiskThe maximum exposure to liquidity risk is the carrying amounts of financial liabilities as follows:

Note 2013 2012 $000 $000

Financial Liabilities Payables 12 4,635 6,150Total Financial Liabilities 4,635 6,150

(iii) Maturity Analysis of Financial Liabilities as at 30 June 2013 ($000)The following table discloses the contractual maturity analysis for SMCT’s financial liabilities:

Financial Liabilities

Payables

Maturity Analysis of Financial Liabilities as at 30 June 2012 ($000)The following table discloses the contractual maturity analysis for SMCT’s financial liabilities:

Financial Liabilities

Payables

The amounts disclosed above are the contractual undiscounted cash flows of each class of financial liabilities.

Past Due but Not Not Past

Due and Not Impaired

4,0994,099

Less Than 1 Month

271271

1-3 Months

249249

3-12 Months

1616

1-5 Years

00

Carrying Amount

4,6354,635

Past Due but Not Not Past

Due and Not Impaired

00

Less Than 1 Month

5,9935,993

1-3 Months

155155

3-12 Months

22

1-5 Years

00

Carrying Amount

6,1506,150



18.4 Market Risk Exposure

SMCT has diversified investments across a range of investments, including investments in the Australian and International share market, in order to fund prepaid fees and long-term perpetual maintenance obligations. These markets are subject to volatility. It is accepted that the share market is cyclical and that there is inherent volatility.Investments are managed in accordance with our investment policy which stipulates, asset allocation ranges to diversify and mitigate risk. The investment policy is reviewed regularly by management in conjunction with independent investment advisors. Management has appointed external investment advisors to manage our investment portfolio. The performance of investments and investment managers is regularly monitored by management and the Trust.SMCT’s exposure to market risk is through currency risk, interest rate risk and other price related risks. Objectives, policies and processes used to manage each of these risks are disclosed as follows:

(i) Currency Risk and Policy in Managing Currency RiskSMCT’s exposure to foreign currency risk arises mainly from the investments held in overseas shares and listed property trusts.SMCT manages its currency risk by appointing experienced external managers to manage these investments on its behalf and diversifying the allocation of the investment in shares of overseas companies, which operate in stable economies throughout Europe, the United States of America and Asia.

(ii) Interest Rate Risk and Policy in Managing Interest RiskFinancial LiabilitiesExposure to interest rate risk is minimal as SMCT does not hold interest bearing liabilities.

Available for Sale InvestmentsThe objective of managing interest rate risk is to minimise and control the risks of losses due to interest rate changes and to take advantage of potential profits.Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. SMCT has minimal exposure to cash flow interest rate risks through its cash and deposits, term deposits and bank overdrafts that are at floating rate.SMCT manages this risk by mainly undertaking fixed rate or non-interest bearing financial instruments with relatively even maturity profiles, with only insignificant amounts of financial instruments at floating rate. Management has concluded for cash at bank and bank overdraft, as financial assets that can be left at floating rate without necessarily exposing the Cemetery Trust to significant bad risk, management monitors movement in interest rates on a daily basis.Interest risk is managed by diversifying investment in a range of securities including investments with fixed interest rate, floating interest rates and CPI linked bonds.

(iii) Interest Rate Exposure of Financial Assets and Liabilities as at 30 June 2013 ($000)

Financial Assets

Cash and Cash Equivalents Cash on Hand Cash at BankReceivablesAvailable for Sale Investments Interest Bearing Managed Units

Financial LiabilitiesPayables

Interest Rate Exposure of Financial Assets and Liabilities as at 30 June 2012 ($000)

Financial Assets

Cash and Cash Equivalents Cash on Hand Cash at BankReceivablesAvailable for Sale Investments Interest Bearing Managed Units

Financial LiabilitiesPayables

(iv) Other Market Risk and Policy in Managing Other Market RiskExposure to other price risk arises due to the inherent risk associated with the possibility of a fall in the market value of investments. SMCT’s objective of managing other price (primarily equity market) risk is to minimise negative impacts on investment value due to the volatility of the stock markets.SMCT has appointed external, independent investment managers to monitor the value and volatility of stock market investments. The investment manager is expected to manage this risk, through the appropriate diversification of specific stocks and diversification through different sectors within the market in accordance with our investment parameters (including ethical guidelines).



Weighted Average Effective Interest Rate %

0.0%4.5%0.0%

4.8%0.0%

0.0%

Carrying Amount

6

27,66112,057

12,151

162,230214,105

4,6354,635

Fixed Interest Rate

016,000

0

4,2320

20,232 00

Variable Interest

Rate

011,661

0

7,9190

19,580

00

Non-Interest Bearing

60

12,057 0

162,230174,293

4,6354,635

Interest Rate Exposure

Weighted Average Effective Interest Rate %

0.0%4.6%0.0%

5.5%0.0%

0.0%

Carrying Amount

4

15,73710,932

10,538

139,625176,836

6,1506,150

Fixed Interest Rate

010,000

0

3,0680

13,068 00

Variable Interest

Rate

05,737

0

7,470 0

13,207

00

Non-Interest Bearing

40

10,932 0

139,625150,560

6,1506,150

Interest Rate Exposure



(v) Sensitivity Analysis on Other Price Risk

Based on advice from independent investment managers who have taken into consideration past performance, future expectations, economic forecasts and management’s knowledge and experience of the financial markets, SMCT has estimated that the movements presented below are reasonably possible in the forthcoming 12 months. This sensitivity analysis has been prepared for the next 12 months. Management does not believe that it is possible to reasonably estimate the variables used further than for 12 months.- A shift of 15% in foreign currency rate and 1.25% in market interest rates(AUD) from year end rates of 2.75%- A movement of 15% up and down for the relevant stocks index

The following table discloses the impact on net operating result and equity for each category of financial instrument held by SMCT at year end as presented to key management personnel, if changes in the relevant risk occur.

(vi) Sensitivity Analysis of Other Price Risk as at 30 June 2013 ($000)

Financial Assets

Cash and Cash EquivalentsCash on HandCash at BankReceivablesAvailable for Sale InvestmentsInterest BearingManaged UnitsFinancial LiabilitiesPayables

(a) overseas shares and listed property trusts are subject to foreign currency. The amount subject to foreign currency risk as at balance date is $14.8 million.(b) Interest bearing investments as at balance date comprise fixed interest rate investments ($4.2 million) and variable interest rate investments ($7.9 million). (c) Domestic and international shares and other investments are subject to other price risk amounting to $162.2 million as at balance date.

Carrying Amount

6 27,661 12,057

12,151 162,230

4,635 209,470

Net Result

000

00

00

Net Result

000

00

0 0

Net Result

0 (160) 0

(99) 0

0 (259)

Net Result

0 160 0

99 0

0 259

Net Result

000

00

00

Net Result

000

00

00

Equity

0 0 0

0 (2,220)

0 (2,220)

Equity

0 0 0

0 2,220

0 2,220

Equity

0 (160) 0

(99) 0

0 (259)

Equity

0 160 0

99 0

0 259

Equity

0 0 0

0 (24,334)

0 (24,334)

Equity

0 0 0

0 24,334

0 24,334

Foreign Currency Risk Interest Rate Risk Other Price Risk-15% +15% -1.25% +1.25% -15% +15%

Sensitivity Analysis of Other Price Risk as at 30 June 2012 ($000)

Financial Assets

Cash and Cash EquivalentsCash on HandCash at BankReceivablesAvailable for Sale InvestmentsInterest BearingManaged UnitsFinancial LiabilitiesPayables



Carrying Amount

4 15,737 10,932

10,538 139,625

6,150 170,686

Net Result

000

00

0 0

Net Result

000

00

00

Net Result

0 (131) 0

(43) 0

0 (174)

Net Result

0 131 0

43 0

0 174

Net Result

000

00

00

Net Result

000

00

00

Equity

0 0 0

0 (2,320)

0 (2,320)

Equity

0 0 0

0 2,320

0 2,320

Equity

0 (131) 0

(43) 0

0 (174)

Equity

0 131 0

43 0

0 174

Equity

0 0 0

0 (23,108)

0 (23,108)

Equity

0 0 0

0 23,108

0 23,108

Foreign Currency Risk Interest Rate Risk Other Price Risk-20% +20% -1% +1% -20% +20%

18.5 Fair Value

The fair values and net fair values of financial instrument assets and liabilities are determined and classified as follows:• Level 1: the fair value of financial instruments 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.

Management is of the opinion that there are no differences between the fair values and the carrying amounts of financial assets and financial liabilities as at balance date because of the short term nature of the financial instruments and the expectation that they will be paid in full. The following table shows that the fair values of most of the contractual financial assets and liabilities are the same as the carrying amounts.



(i) Comparison Between Carrying Amount and Fair Value as at 30 June 2013 2013 Carrying Amount 2013 Fair Value 2012 Carrying Amount 2012 Fair Value $000 $000 $000 $000 Financial Assets Cash and Cash Equivalents Cash on Hand 6 6 4 4 Cash at Bank 27,661 27,661 15,737 15,737Receivables 12,057 12,057 10,932 10,932Available for Sale Investments Interest Bearing 12,151 12,151 10,538 10,538 Managed Units 162,230 162,230 139,625 139,625 214,105 214,105 176,836 176,836Financial Liabilities Payables 4,635 4,635 6,150 6,150 4,635 4,635 6,150 6,150

(ii) Financial Assets Measured at Fair Value as at 30 June 2013 ($000)

Carrying Fair value measurement at end of reporting period Amount Level 1 Level 2 Level 3Financial Assets Available for Sale Investments Interest Bearing 12,151 3,180 8,971 0 Managed Units 162,230 0 162,230 0 174,381 3,180 171,201 0

Financial Assets Measured at Fair Value as at 30 June 2012 ($000)

Carrying Fair value measurement at end of reporting period Amount Level 1 Level 2 Level 3Financial Assets Available for Sale Investments Interest Bearing 10,538 3,146 7,392 0 Managed Units 139,625 0 139,625 0 150,163 3,146 147,017 0



Note 2013 2012 $000 $000

Capital Commitments Intangible assets 0 218Other 0 175Total Capital Commitments 0 393 Operating Expenditure Commitments Computer equipment 37 73Total Operating Expenditure Commitments 37 73 Capital Commitments Not Longer than 1 Year 0 393Longer than 1 Year and Not Longer than 5 Years 0 0Longer than 5 Years 0 0Total Capital Commitments 0 393 Operating Expenditure Commitments Not Longer than 1 Year 37 0Longer than 1 Year and Not Longer than 5 Years 0 73Longer than 5 Years 0 0Total Operating Expenditure Commitments 37 73

*The operating expenditure commitment relates to a maintenance agreement for the newly designed website which commenced in the 2012/2013 year. The first year of this agreement is considered a capital commitment as it relates to the implementation of the website and is included in the capital commitments.

20. Contingent Assets and Contingent LiabilitiesQuantifiable There are no quantifiable contingent assets and liabilities as at June 30 2013 (2012: nil)Non-Quantifiable Perpetual MaintenanceSMCT has an obligation under the Cemeteries and Crematoria Act 2003 to manage and maintain each public cemetery for which it is responsible. As stated in section 12 of the Act in exercising its functions SMCT must have regard to its obligations in relation to the funding of the perpetual maintenance of the public cemetery. At this time the SMCT is aware that there will be ongoing significant cash outflows for future expenditure on perpetual maintenance of the public cemetery but is unable to calculate a sufficiently reliable estimate of any related present obligation which may arise under the accounting standards and accordingly has not recognised a value for this obligation in these financial statements. SMCT engaged an actuary to attempt to quantify the perpetual maintenance obligation but has not implemented the model at this stage and is consulting with other stakeholders. SMCT has nevertheless created a reserve, which is funded by cash and investments, as a source of future contributions towards perpetual maintenance obligations, which is disclosed as a Perpetual Maintenance Reserve in Note 1(n) and 16.

19. Commitments



21. Responsible Persons & Executive Officers

21a. 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.

Responsible MinisterThe following was the Responsible Minister during the reporting period• Hon David Davis, MLC Minister for Health and Ageing: 1 July 2012 to 30 June 2013

Governing BoardThe following were Trust Members during the reporting period:

• Sue Renkin (Chairman) 01/07/12 – 30/06/13• Fiona Bennett 01/07/12 – 28/02/13• Julie Busch 01/03/13 – 30/06/13• Phillip Davies 01/03/13 – 30/06/13• Felicity Frederico 01/03/13 – 30/06/13• Susan Heron 01/07/12 – 30/06/13• Richard Jones 01/07/12 – 30/06/13• Gaye Mason 01/07/12 – 30/06/13• Ian Pollerd 01/07/12 – 28/02/13• John Saddington 01/07/12 – 28/02/13• Stephen Shipp 01/07/12 – 30/06/13

Accountable OfficersThe following was the Accountable Officer during the reporting period:• Jonathan Tribe: 1 July 2012 to 30 June 2013



1/7/2012 to 30/6/2013 1/7/2011 to 30/6/2012Income Band Base Total Base Total Remuneration Remuneration Remuneration Remuneration No. No. No. No.

$1 to $10,000 6 6 0 0 $10,001 to $20,000 4 4 7 7 $20,001 to $30,000 1 1 1 1 $220,001 to $230,000 1 0 0 0 $250,001 to $260,000 0 0 0 0 $260,001 to $270,000 0 0 1 1 $290,001 to $300,000 0 1 0 0Total Numbers 12 12 9 9 Total Remuneration $336,758 $414,503 $330,882 $380,913

Remuneration of Responsible PersonsRemuneration paid to Ministers is reported in the financial statements of the Department of Premier and Cabinet. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits. Total remuneration includes all payments. The following table discloses remuneration paid to Responsible Persons, other than Ministers during the year ended 30 June 2013.

Note 2013 2012 $000 $000

Other Transactions of responsible persons and their related parties

F Frederico is a partner in Nem Australia Pty Ltd 22 0 which provides professional consulting services



21b. Executive Officer Disclosures

Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits. Total remuneration includes all payments. The following table discloses remuneration paid to Executive Officers during the year ended 30 June 2013.

22. Ex-Gratia Payments

During the reporting period no ex-gratia payments were made.

1/7/2012 to 30/6/2013 1/7/2011 to 30/6/2012Income Band Base Total Base Total Remuneration Remuneration Remuneration Remuneration No. No. No. No.

$100,000 to $110,000 1 5 2 4$110,001 to $120,000 4 3 1 3$120,001 to $130,000 1 3 2 1$130,001 to $140,000 2 2 0 1$140,001 to $150,000 0 1 2 0$150,001 to $160,000 0 1 0 1$160,001 to $170,000 0 0 0 0$170,001 to $180,000 1 0 0 0$180,001 to $190,000 0 1 0 1$190,001 to $200,000 0 1 0 0$200,001 to $210,000 0 0 0 1$220,001 to $230,000 1 1 0 1Total Numbers 10 18 7 13Total annualised employee equivalents(i) 10.0 16.6 6.3 12.2Total Remuneration $2,254,414 $2,707,423 $1,807,083 $2,232,187

(i) Annualised employee equivalent is based on paid working hours of 37.4 ordinary hours per week over the 52 weeks for the reporting period.



23. Remuneration of Auditors

Victorian Auditor-General’s Office Audit of financial statement 84 75Total Remuneration of Auditors 84 75

Note 2013 2012 $000 $000


disclosure index

The Annual Report of the Southern Metropolitan Cemeteries Trust is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Southern Metropolitan Cemeteries Trust’s compliance with statutory disclosure requirements.

Ministerial Directions and Financial Reporting Directions (FRD) Page Reference Charter and purpose FRD 22C Manner of establishment and the relevant Ministers 11, 69, 104FRD 22C Objectives, functions, powers and duties 69, 70FRD 22C Nature and range of services provided 70Management and structure FRD 22C Organisational structure 9Financial and other information FRD 10 Disclosure index 108FRD 11 Disclosure of ex gratia payments 21, 106FRD 15B Executive officer disclosures 106FRD 21B Responsible person and executive officer disclosures 104-105FRD 22C Application and operation of Freedom of Information Act 1982 15FRD 22C Application and operation of Whistleblowers Protection Act 2001 16FRD 22C Compliance with building and maintenance provisions of Building Act 1993 15FRD 22C Details of consultancies over $10,000 21FRD 22C Details of consultancies under $10,000 21FRD 22C Major changes or factors affecting performance 17, 22FRD 22C Occupational health and safety 33FRD 22C Operational and budgetary objectives and performance against objectives 19-20FRD 22C Significant changes in financial position during the year 18-19FRD 22C Statement of availability of other information 16FRD 22C Statement on National Competition Policy 15FRD 22C Subsequent events 21FRD 22C Summary of the financial results for the year 18FRD 22C Workforce Data Disclosures including a statement on the application of employment and conduct principles 13, 33, 36FRD 25A Victorian Industry Participation Policy disclosures 15SD 4.2(j) Sign-off requirements 5, 62SD 4.5.5 Attestation on Compliance with Australian/New Zealand Risk Management Standard 15SD 4.5.5.1 Attestation on VMIA insurance Financial statements required under Part 7 of the FMA SD 4.2(a) Statement of changes in equity 67SD 4.2(b) Comprehensive operating statement 65SD 4.2(b) Balance sheet 66SD 4.2(b) Cash flow statement 67Other requirements under Standing Directions 4.2 SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements 69SD 4.2(c) Accountable officer’s declaration 62SD 4.2(c) Compliance with Ministerial Directions 62, 69SD 4.2(d) Rounding of amounts 70Legislation Freedom of Information Act 1982 15Whistleblowers Protection Act 2001 16Victorian Industry Participation Policy Act 2003 15Building Act 1993 15Financial Management Act 1994 62, 69Audit Act 1994 63, 64

Telephone (03) 9546 9377 Facsimile (03) 9546 8628Princes Highway Springvale – PO Box 1159, Clayton Vic 3169 Website smct.org.au Email [email protected]

The Southern Metropolitan Cemeteries Trust is a not-for-profit, community based organisation that cares for Brighton General, Bunurong Memorial Park, Cheltenham Memorial Park, Cheltenham Pioneer, Dandenong Community, Melbourne General, Springvale Botanical and St Kilda cemeteries.

Documents

2013 Annual Report - Parliament of Victoria - Home · 2013-09-05 · 2013 2013 Annual Report Strategies in action Telephone (03) 9546 9377 Facsimile (03) 9546 8628 Princes Highway