2014/15 ANNUAL REPORTdevelopmthotham.com.au/.../Mt_Hotham_Alpine_Resort_Management_Board... · Peter has extensive experience in strategy development, programme management, ... The

2014/15ANNUAL REPORT

2 MT HOTHAM RESORT MANAGEMENT BOARD2 MT HOTHAM RESORT MANAGEMENT BOARD

In accordance with the Financial Management Act 1994, we are pleased to present the Mount Hotham Resort Management Board’s Annual Report for the year ending 31st October 2015.

Deborah Spring | Chairperson Mount Hotham Resort Management Board 13th January 2016

Jon Hutchins | Chief Executive Officer Mount Hotham Resort Management Board 13th January 2016

ANNUAL REPORT 2014/15 3

INTRODUCTION 4

Chair’s report 4

Chief Executive Officer’s report 5

Board members 6

ABOUT THE RESORT 9

Our history 9

Our vision and mission 10

Our strategy 10

Nature and scope of activities 11

Financial summary 12

Key performance indicators 14

OUR CUSTOMER AND COMMUNITY FOCUS 18

Our human resources and organisational development 18

Organisational structure 19

Ski patrol and skier safety 20

Snow play 22

Cross-country skiing 22

Transit operations 23

OUR SERVICES 24

Utilities 24

Potable water 24

Wastewater 25

Solid waste management 26

Gas operations 27

Asset management 28

Geotechnical program 28

Capital works 29

Fleet maintenance 30

OUR DEVELOPER SERVICES 31

Master Plan 31

Growth Development Plan 31

Native vegetation 32

Bushfire management 32

Leasing 33

Building services 33

Property sales 34

Statutory planning 35

Environmental health services 36

OUR YEAR ROUND RESORT 37

Visitor services 37

Resort entry and parking 37

Marketing and customer services 37

Website 38

Communications and publications 38

Events 38

Regional marketing 39

Strategic partners 39

Walking trails 39

OUR ENVIRONMENT ON THE RIDGE 40

Sustainability 40

Threatened species and biodiversity conservation 41

Environmental programs 41

Environmental education 41

Victorian Alps Nursery 42

Our strategic partnerships 42

OUR CORPORATE GOVERNANCE 43

Information and communication systems 43

Emergency management 43

Community areas 44

Risk management 44

Statutory reporting 45

INDEPENDENT AUDITOR’S REPORT 47

FINANCIAL STATEMENTS 49

DISCLOSURE INDEX 82

2014-2015 ANNUAL REPORT

4 MT HOTHAM RESORT MANAGEMENT BOARD

INTRODUCTION

CHAIR’S REPORT It has been an exciting year for us with welcoming Jon Hutchins as our new CEO in January 2015. It was sad to say goodbye to our long-standing CEO Jim Atteridge, and we wish him well with his new endeavours.

Jon has been involved in the Victorian Alpine Region since 1998 with roles at Mt Buller, Mt Stirling and as Mt Hotham Resort Management Board’s former Chief Financial Officer (2008-2013). Jon hit the ground running with his approach to engage stakeholders and work together to build the Mt Hotham brand.

Winter season 2015 saw snowmaking put to good use, allowing there to be three lifts operating over opening weekend. Natural snow fell in early July, kicking off what turned out to be a season to remember. Temperatures stayed low through August and September keeping snow on the ground until the very end of the season.

OUR UNIQUE MOUNTAIN

Mt Hotham is internationally recognised as one of the top 25 skiing mountains in the world and one of the top five cycling hill climbs in the world. The following attributes make Mt Hotham unique:

• It is the highest alpine village in Australia,

• It has spectacular 360 degree views,

• It has the most challenging terrain in Australia,

• Its topography, with the Great Dividing Range, and

• The Great Alpine Road is one of only two Great roads in Australia.

While the remote and high altitude location may have impeded development in the past, there have been tremendous innovations in the past 15 years to overcome these challenges while ensuring the marvellous natural environment is retained.

These include:

• Australia’s only Pygmy Possum Love Tunnel,

• The Swindlers Valley pipeline project to protect the resort’s major water course, and

• The wastewater treatment project, which provides Class A water for the snowmaking system.

DEVELOPMENT GROWTH PLAN

The Mt Hotham Development Growth Plan (Plan) sets out a strategy for the physical (property) development of the Mt Hotham Resort. This development is focussed upon the five-year period commencing mid-2015. The document builds upon the strategic planning, master planning and market research work previously undertaken by the Mt Hotham Resort Management Board (MHRMB) and several other Mt Hotham stakeholders.

It communicates priority property development related activities to be undertaken to contribute to the success of all resort and Mt Hotham region stakeholders.

Property development is one of many factors that will contribute to the sustainable success of Mt Hotham. It is prompted by and responds to a wide range of interrelated factors including visitation and occupancy levels, branding, marketing, cultural dynamics, physical constraints, product offering, existing conditions and competing forces. The Plan references a mix of non-property activities that we will undertake in order to stimulate future property, infrastructure and built-form requirements.

ENVIRONMENTAL MANAGEMENT PLAN

Late this year we adopted our new Environmental Management Plan, which addresses six key issues:

1. Landfill operations – impacts on surface and groundwater,

2. Diesel fuel consumption,

3. Climate change impacts,

4. Greenhouse gas emissions,

5. Biodiversity conservation and threatened species, and

6. Cultural heritage.

A calendar of activities has been set to begin addressing these issues.

MASTER PLAN

The purpose of the Master Plan is to facilitate smoother development approval but also to align the community with the strategic direction of the resort. We believe the best way to develop the resort is through alignment of all our stakeholders around a common, collective purpose.

Our stakeholders include the Mt Hotham community, our Indigenous owners the Gunaikurnai and the adjoining communities along the Great Alpine Road including Dinner Plain, Harrietville and Bright (Alpine Shire), Omeo, Swifts Creek and Ensay (East Gippsland Shire), and adjoining land managers.

The Master Plan was presented to the Minister in September 2015.

Deborah Spring | Chairperson Mount Hotham Resort Management Board


CEO’S REPORTIt has been a privilege to spend this year as the incoming Chief Executive Officer with such support from Mt Hotham stakeholders and the resort management staff and Board members.

A large part of my career has involved working in the mutual/co-operative financial sector, where smaller industry participants can compete successfully against much larger players when they are prepared to co-operate and work together. We are in a similar position at Mt Hotham where we compete not only on the mountain but also against other Australian mountains, island resorts, football, overseas snow and mountain experiences and the beach in summer.

I have been overwhelmed by the enthusiasm and co-operation we have received from the Mt Hotham community and surrounds since I started in January 2015. Mt Hotham Resort Management Board (MHRMB) has laid the foundation for this co-operation in recent times with forums to develop the resort’s Strategic Management Plan and Master Plan. The Consultative Forum has provided invaluable feedback and input on providing more effective Board services for leaseholders, commercial operators, surrounding communities and most importantly guests.

We had record numbers attend our stakeholder forum at the MCG in May 2015, and our marketing meetings with commercial operators in August led to the “Awesome Conditions Apply” promotion on key billboards in Melbourne. Other successful communications this year included our Destination Action Plan workshops and a market research presentation we held in conjunction with Tourism North East.

MHRMB management and staff have also welcomed and supported me, and shown their enthusiasm for providing the best possible service and experience for our guests.

Together, our entire workforce resolved that what drives us is: To Share The Amazing Alpine Experience at Mt Hotham.

As a management team we will:

• Lead by example in a respectful and approachable way,

• Take ownership in what we do, and

• Be outward looking and innovative in our approach.

This approach was demonstrated in several of the key achievements for the year, which include:

• Completing stage 2 of the Swindlers Valley project; ahead of schedule and below budget,

• Opening the Brabralung Trail with the Gunaikurnai, our Indigenous land owners, Parks Victoria and Dinner Plain/Alpine Shire,

• Establishing Australia’s first roundshot camera,

• Installing new entrance signage, bus stop designs and sealing our road verges,

• Reducing confusions and delays on the Great Alpine Road during extreme winter periods,

• Accommodating record numbers of vehicles within the resort on two weekends of the season,

• Recording average visitation levels despite no natural snowfalls during the peak July school holiday period,

• Establishing the foundation for the Hotham Auto Corsa event despite not being able to hold the event in 2015,

• Continuing our native revegetation program in the resort with a record 60,000 native plants produced by our Alpine Nursery,

• Trialling new hard waste collection and processing including organic waste recycling,

• Upgrading car parking facilities with lighting at Whitey’s car park, and

• Successfully working with Mt Hotham Skiing Company to secure a strategic partnership with Audi Australia including the launch of the new Q7 Quattro alpine driving experience.

I am also pleased to report that we had a low accident rate of 1.77 per thousand skier days, and that our ski patrol and medical centre performed three miraculous lifesaving operations.

• The completion of three new developments at Koomerang, The General Store/Mountain Dreaming Apartments and Lawlers car park,

• A new trail head for the Alpine Crossing between Mt Hotham and Falls Creek,

• New shared trails designation and interpretive information on our tracks and trails, and

• A fivefold participation increase in the Disabled Wintersports Association program.

We achieved best practise levels for our financial audit and compliance, gas safety, Environment Protection Authority (EPA), Department of Health and Human Services (DHHS), Emergency and Bushfire Management Plans, and a Victorian Auditor-General’s Office (VAGO) audit found MHRMB had a healthy operating surplus and was in a strong financial position.

Our 2016 budget has set annual service charges at a minimal two per cent increase and maintained resort pricing at similar rates to 2015 where possible.

Upcoming exciting challenges and opportunities:

• The construction of major facilities and car parks at the Asgaard and Tantani sites,

• A $4.4 million investment by the Mt Hotham Skiing Company in snowmaking for the Summit, Imagine and Canyon areas of Heavenly Valley,

• The redesign of the Hotham Central and Corral car park areas for safer pedestrian and vehicle flows,

• Opportunities for re-opening the Hotham Airport for commercial flights from Adelaide, Melbourne and Sydney,

• Further design and consultation on the Falls to Hotham Alpine Crossing as one of four iconic walks to attract summer trekkers from domestic and international markets,

• Working with adjoining landholders on the Great Alpine Road to deliver further guest attractions and experiences,

• Installing disabled access on the Big Spur and Dargo Loop tracks and trails.

I look forward to seeing these opportunities develop with the new Board in 2016. I would like to thank the outgoing Resort Management Board for their support and confidence in our Executive Management team and staff as we continue to work with stakeholders to provide the best outcomes for Mt Hotham.

Jon Hutchins | Chief Executive Officer Mount Hotham Resort Management Board


INTRODUCTION

BOARD MEMBERSOur Board representatives come from a diverse range of backgrounds and industry experience.

DEBORAH SPRING | CHAIRPERSON

Deb has had broad experience as both a director and as a senior executive in the private, public and semi-government sectors across a diverse range of industries. These include energy, manufacturing, recycling, rail, technology, transport and logistics. Her board positions include the Alpine Resorts Co-ordinating Council, Federation University Australia and V/Line Corporation. Deb was appointed to the Board on 28th October 2011 and became Chairperson in 2013.

Previously, Deb was Chair of Banksia Environmental Foundation and Deputy Chair of Special Olympics – Victoria. Deb has a Master of Science in Mechanical Engineering and a Master in Business Administration (MBA) from Harvard Business School. Deb is a licensed professional engineer and a Graduate Member of the Australian Institute of Company Directors. She has been skiing at Hotham for over 25 years and has watched her three daughters advance from Mighty Mites to Mary’s Slide.

RON MASON | DEPUTY CHAIR

Ron is an experienced Urban and Environmental planner having practiced for nearly 40 years in government and private organisations in Victoria including the past 18 years as a planning consultant. Ron was the principal planner at Aurecon (Melbourne), leading one of the largest planning teams in Victoria until he retired in December 2009.

Since leaving Aurecon he has continued as a planning consultant in his own planning practice. As a planner, Ron has been involved in major tourist, environmental and strategic planning projects throughout Victoria and Tasmania. Ron has also been a member of several government Boards and Committees during his career in planning. He has been skiing at Mt Hotham for the past 30 years and is a Committee Member of Asgaard Alpine Club. Ron is also Chairperson of the Audit and Risk Committee, Sub to Audit and Risk Sub Committee and Chairperson of the Mount Hotham Master Plan Working Group. Ron was appointed to the Board on 30th April 2010 and became Deputy Chair in 2013.

NICOLE FEENEY

Nicole has been a member of the Board since 13th June 2007 and was Chairperson from 2010 to 2013. Between 2010 and 2013 she was also a member of the Alpine Resorts Co-ordinating Council. Nicole is a commercial disputes and construction lawyer at Lander & Rogers; is the immediate past Chair of the Litigation Lawyers Section of the Law Institute of Victoria (LIV) and represents the LIV on the Supreme Court Rules Committee and the County Court Building Cases Users Group.

Her board experience includes having been a director of UFS Dispensaries Ltd for six years, a not for profit company which owns and operates a number of pharmacies and associated businesses in and around Ballarat in Western Victoria. Nicole is a Graduate Member of the AICD. In 2001 Nicole was introduced to skiing and Mt Hotham. She loved the experience so much she became a member of the Anton Huette lodge in 2005 and later purchased an apartment at Hotham.

TIM PIPER

Tim is the Director for Victoria for the Australian Industry Group, which is one of the most influential industry associations in the country. He is a lawyer and former journalist and holds a MBA. Tim is also Chairman of the Industry Capability Network and the Manufacturing Skills and Training Taskforce. He also sits on a number of boards including the Victorian Leadership Group, the Victorian Manufacturing Council and the Industry Skills Consultative Council. Tim was appointed to the Board on 28th April 2001.

ANNUAL REPORT 2014/15

PETER HAGENAUER

Peter is a partner at Digital Frontier Partners, a specialist advice firm that helps clients to understand the capabilities, resources and organisational structure needed to deliver their products and services in the digital economy. He has over 25 years of experience in the Banking and Finance Sector, including more than ten years building and managing digital distribution channels supporting ANZ’s Global Markets businesses.

Peter has extensive experience in strategy development, programme management, project governance and sales management. He is a member of Asgaard Ski Club Mt Hotham, and has been skiing at Mt Hotham for the past six years. Peter was appointed to the Board on 4th June 2013 and also chairs the Mt Hotham Consultative Forum Committee.

DAVID ANSTEE

David has been skiing Mt Hotham for over 25 years, and the first time his children tasted snow was on the skier’s mountain. Currently serving as the Commercial Director of GreenSync and as a lecturer in post-graduate entrepreneurial studies at the University of Adelaide, David holds an MBA from London Business School and a bachelor of commerce from Melbourne.

He has a diverse career which includes investment banking, assistant cameraman for National Geographic in the Arctic, innovation manager and entrepreneur. When not skiing, David enjoys rock climbing, diving, farming and flying. David was appointed to the Board on July 7th, 2014.

STEPHEN CLEMENT

Stephen has broad experience in property and is a passionate skier. He is currently the Project General Manager at the Queensland Investment Corporation for the $575 million upgrade of the Eastland Shopping Centre and Ringwood Town Square. Prior to that he was Project Director for ING Real Estate for the mixed-use development at Docklands and was President of the Docklands Chamber of Commerce.

Stephen has worked in the property industry for 30 years and brings strong development and planning skills to the Board. He has a Graduate Diploma in Project Management, Bachelor of Structural Engineering and is a member of the Institute of Engineers Australia. Stephen was appointed on October 28th, 2014.

7


INTRODUCTION

AUDIT AND RISK SUB COMMITTEE

The Audit and Risk Sub Committee has responsibility for Internal and External Audit, Finances, Risk Management and monitoring the compliance with the Financial Management Compliance Framework. The Board Members represented on this committee are Ron Mason (Chairperson), Stephen Clement and Peter Hagenauer. All Audit & Risk Sub Committee members are deemed independent under the Financial Management Act 1994.

REMUNERATION SUB COMMITTEE

The committee’s responsibility is to evaluate the remuneration of the CEO and oversight of remuneration of staff within the resort. The current Remuneration Sub Committee Board representatives are Tim Piper (Chairperson), Nicole Feeney, and Deb Spring.

MARKETING SUB COMMITTEE

The Marketing Sub Committee was established in September 2014 with its inaugural meeting held in October 2014. Board Representatives are Peter Hagenauer (Chairperson), Nicole Feeney, and David Anstee.

CONSULTATIVE FORUM

Mt Hotham Consultative Forum was established in July 2014. The Chair of the Forum is Peter Hagenauer with community representatives from Tourism North East (TNE), Mt Hotham Chamber of Commerce, Hotham Ski Association (HSA), Mt Hotham Skiing Company, and Alpine Shire.

ESTABLISHMENT OF BOARDS

Section 34 of the Alpine Resorts (Management) Act 1997 established The Mount Hotham Alpine Resort Management Board. The inaugural Board officially took over control of the Resort on April 30 1998. Prior to this, all Alpine Resorts were managed collectively under the jurisdiction of the Alpine Resorts Commission.

The current management structure comprises an independent seven member skill-based Board appointed by the Minister for Environment and Climate Change and Water, that reports directly to the Minister. The responsible Minister is the Hon Lisa Neville MP, Minister for Environment and Climate Change and Water.

FUNCTIONS OF THE BOARD AND CORPORATE GOVERNANCE

Section 38 of the Alpine Resorts (Management) Act 1997 specifies the functions of the Board:

• To plan for the development, promotion, management and use, of each such alpine resort in accordance with the object of the Act,

• To develop and promote or facilitate the development or promotion by others of the use of each such alpine resort in accordance with the object of the Act,

• To manage each such alpine resort in accordance with the object of the Act;

• To contribute to the development of the Alpine Resorts Strategic Plan and other strategic planning for alpine resorts as a whole;

• To undertake research into alpine resort issues;

• To contribute to and support the operation of the Council;

• To prepare and implement a Strategic Management Plan for the resort;

• To expend or apply revenue of the Board in accordance with a direction of the Minister under section 36(1A);

• To manage the Crown land in Mt Hotham by acting as a Committee of Management under the Crown Land (Reserves) Act 1978;

• To contribute, together with Tourism Victoria, established under the Tourism Victoria Act 1992, and the Council, to the overall promotion of alpine resorts;

• To develop a tourism and marketing strategy and to promote the resort;

• To provide services in the nature of: garbage disposal, water supply, gas, drainage, sewerage, electricity, roads, fire protection, snowmaking, transport for the resort and to charge user pays contributions for the provision of those services;

• To collect fees prescribed by the regulations for the resort;

• To attract investment for the improvement of the resort; and

• To carry out any other function conferred on the Board by this or any other Act.

MEETING ATTENDANCE *Attended as an observer.

Full Board Audit and Risk Remuneration Marketing Consultative Forum

TOTAL MEETINGS HELD 10 6 3 6 3

Deborah Spring 10 - 3 1*

Ron Mason 10 6 - -

Nicole Feeney 9 - 3 6

Tim Piper 9 - 3 - 1*

Peter Hagenauer 9 6 - 6 3

David Anstee 10 - - 6

Stephen Clement 9 6 - 1* 1*


Mt Hotham Alpine Resort is set in a unique and extreme natural landscape, an environment that has been largely shaped by its European history, and a history that is unique to the region.

The history of Mt Hotham has been affected by influences from both sides of the range. Mt Hotham (1861 metres) is amongst the four highest points in Victoria (Mt Bogong, Mt Feathertop, Mt Loch and Mt Hotham), atop the solid barrier that forms the spine of the Great Dividing Range. Both the Ovens Valley to the north and Gippsland to the south have played important influential roles in the history of the Mt Hotham region.

An Aboriginal presence existed in the Mt Hotham region for many thousands of years before the arrival of the first Europeans. The principal language groups in the Mt Hotham region included the Gunaikurnai, Dhudhuroa, and the Jaitmathang.

In 2012 a Land Use Agreement was signed with the Gunaikurnai under the Traditional Owners Settlement Act (VIC) and Federal Native Title Act.

In 1851 the most influential event in the history of the region occurred with the official discovery of gold. In that first year gold was discovered at Omeo, where a few small diggings were opened. The gold discoveries on each side of the divide saw a significant movement of traffic over the ranges between the new fields. Diggers travelling over the ranges in the vicinity of Mt Hotham were said to have discovered small quantities of gold, however these deposits were left in preference for the richer pickings and better climate offered by the lower valleys.

The early 1860s saw significant gold discoveries being made on the Upper Dargo and Cobungra Rivers. These new fields saw the establishment of more permanent populations in the shadow of Mt Hotham. Principal mining camps and commercial centres on the Upper Dargo included Brocket (1866), Louisville (1866), and the establishment of the Cobungra Township in 1883. This led to a population of some 400 to 500 people in the hills on the edge of what is now today’s resort.

Significant investments by lease holding companies on the Cobungra Diggings had far-reaching influences. Keen to attract business from the new gold mining boom, both Bright and Omeo shires upgraded the Alpine Road between

Harrietville and Omeo from a four-foot wide pack track to an eight-foot wide coach road in 1883. The repercussions of this road upgrading have influenced the region and resort development to present times.

The Department of Crown Lands and Survey assumed responsibility for Mt Hotham in 1962, appointing a Committee of Management to co-ordinate Crown allotments, subdivisions and provide basic services such as drinking water. During its 21-year tenure, the Committee encouraged resort development, such as lodge construction, the Zoo Cart transport system, the addition of towropes and the first chairlift, the Playground Chair installation.

In 1983 the Alpine Resorts Act saw the formation of the Alpine Resorts Commission (ARC) to manage all Victorian Alpine Resorts permanently reserved as Crown Land. Through the provision of adequate sewerage reticulation and treatment, reticulated electricity and gas and later the connection of the resort to the state grid, the ARC contributed to Mt Hotham’s development.

Other development in subsequent years saw increased parking areas, the construction of the Hull Skiers Bridge, and the sealing of the Alpine Road between Omeo and Harrietville in 1998.

In 1995 BCR Management purchased Ski Tows Ltd and further developed the Resort including new ski terrain and the Orchard, Keogh’s and Gotcha chairs in 1997 as well as a 53-chalet development of Hotham Heights.

The ARC developed a much stronger commitment to the environment during the mid-1990s, adopting the resorts’ first Environmental Management Plan in 1997. In the same year the Alpine Resorts Planning Scheme was also introduced.

In 1998 separate management boards were created for the individual resorts and the Mt Hotham Resort Management Board (MHRMB) assumed management of Mt Hotham. The Mt Hotham airport was opened in 1999.

In 2002 amendments were made to the Alpine Planning Scheme, including revising provisions for car parking and introducing an Environmental Significance Overlay for the Pygmy Possum

(Burramys parvus), and a Heritage Overlay. In 2004 the 2020 Strategy was released to guide long-term planning and management of Victoria’s alpine resorts.

In 2004 the lift company was acquired by MFS limited. In 2009 the $8.4 million wastewater recycling for snowmaking project was completed. The Merlin Entertainment Group acquired the lift company in 2011.

Since the first travellers over the ranges strapped timber planks onto their boots at the Mt St Bernard Hospice during the 1880s, the Mt Hotham area has been a skiing destination for tourists for over 130 years. The area today still has a strong association with early heritage in providing a unique recreational destination for visitors all year round.

In 2012, the Alpine Resorts Strategic Management Plan was adopted and forms the foundation for the Mt Hotham Strategic Management Plan 2013-2018.

In 2014, MHRMB commenced community consultation to develop a Master Plan for the resort. This plan is in the final stages of completion and serves as the basis for the future development of the resort.

ABOUT THE RESORT

OUR HISTORY


ABOUT THE RESORT

OUR VISION AND MISSION

OUR STRATEGY

OUR VISION

‘To share an amazing alpine experience’

OUR VALUES

We will:

• Lead by example in a respectful and approachable way,

• Take ownership in what we do, and

• Be outward looking and innovative in our approach.

OUR MISSION

To deliver Australia’s premier alpine resort through optimal management of this unique crown asset.

Focusing on customer service and effective communication, MHRMB will achieve this mission through providing quality services to:

THE CROWN

By maintaining and managing the public assets of the resort, attracting investment for the development and improvement of the resort, administering the crown leases and licences within the resort, and ensuring legislative obligations are met;

OUR ENVIRONMENT

By managing the rare and valuable biodiversity of the resort;

OUR CUSTOMERS

By delivering quality transport, ski patrol, resort entry sales, visitor information, traffic and parking control, snow clearing, cross country trails and urban amenities;

OUR PROPERTY

By providing contemporary urban services of water supply, sewerage, drainage, gas supply and solid waste management;

OUR STAKEHOLDERS, INVESTORS AND DEVELOPERS

Delivering consistency, certainty and confidence in Mt Hotham by undertaking quality resort planning and development, reliable utility services, effective business and product development, clear and unambiguous land and lease management, and efficient revenue collection;

OUR CORPORATE PERFORMANCE

By measuring our performance against a set of indicators as reported in this Annual Report.

We are committed to achieve the purpose of the Victorian Alpine Resorts (Management) Act 1997, and the vision for the resort as outlined in the Alpine Resorts Strategic Plan 2012 and reiterated in the our Strategic Management Plan 2013-2018.

The following seven program areas are the conduit between Mt Hotham’s operations, the governing legislation and our strategic documents.

OUR CUSTOMER AND COMMUNITY FOCUS

We will be the best in every dimension of customer service through motivated, highly trained and competent staff.

OUR YEAR ROUND RESORT

We will identify and realise opportunities and experiences that attract visitors to Mt Hotham, and the associated private and public investments, throughout the year.

OUR SERVICES

We will provide services at a low, sustainable cost, whilst ensuring a positive customer experience. Our infrastructure will support the resort’s strategic direction of an incremental build-out of accommodation to a sustainable 7,500 beds over the next ten years.

OUR DEVELOPER SERVICES

We will have the shortest planning and development cycle at lowest cost in the Alps.

OUR ENVIRONMENT ON THE RIDGE

We will set the standard and be recognised for our environmental excellence and unique location.

OUR STRATEGIC PARTNERSHIPS

We will enter strategic partnerships to access cost effective services and grow the resort in a sustainable manner.

OUR CORPORATE GOVERNANCE

We will ensure that strategic management, planning, and resort management is delivered through streamlined processes while meeting all statutory obligations.


NATURE AND SCOPE OF ACTIVITIESMt Hotham Alpine Resort is one of Victoria’s premier alpine recreation destinations. It holds the unique position of being the highest ski field alpine village in Australia with a summit elevation of 1861 metres.

Mt Hotham is located toward the southern end of the Great Dividing Range, approximately 365 km north east of Melbourne and 520 km south west of Canberra. The resort currently has 4,804 beds and 85 Lessees.

Access from Melbourne to Mt Hotham is generally by the Great Alpine Road, either from the west via Wangaratta and Harrietville or from the east via Bairnsdale and Omeo. Hotham commercial airport at Horsehair Plain, approximately 20 km south east of Mt Hotham, provides an alternative to road travel. The airport, until recently, greatly increased the accessibility of the resort to Victorian, interstate and overseas visitors. It has the capacity to provide commuter jet links with major Australian capital cities during the ski season.

Mt Hotham is located at the headwaters of four major rivers. Terrain in the resort area ranges in elevation from 1060 to 1861 metres. The resort covers an area of approximately 3450 hectares, the majority of which is Crown Land and is bounded on all sides by the Alpine National Park.

The ski field comprises 320 hectares, or seven per cent of the total resort area. The urban area of the village covers approximately 15 hectares, and is in area less than 0.003 per cent of the adjoining National Park.

The primary attraction of Mt Hotham is as a tourist destination during winter months. The resort has developed historically as a resort for “serious” skiers with a total of 13 lifts servicing 76 runs of which six are green; 34 are blue; 25 are black and 11 are double black.

Summer events are also growing in popularity in the green season and include walking and mountain bike tracks, cycling, ascend running, four wheel driving, music festivals and outdoor adventures for kids. With the Falls to Hotham Alpine Crossing track now completed, it joins the Australian Alps Walking Track. Mt Hotham is also part of the 7 Peaks Ride and the Audax cycling events.

The Brabralung Trail (Mt Hotham to Dinner Plain), Cobungra Ditch Trail, and the Three Huts Walk, when combined with the iconic Razorback/Mt Feathertop Walk, offer guests the full social spectrum of walks for all abilities and levels of fitness. The Brabralung Trail is an excellent example of the Board working closely with the Alpine Shire and Parks Victoria to create a quality non-winter alpine product.

Mine sites have been rediscovered within Hotham Village that have the potential to be developed into a fully integrated tourism product including walks, tours and interpretation. This development has the potential to add to the suite of green season products available at Mt Hotham.

Ensuring the consistent and reliable delivery of core services is necessary to maintain the ongoing daily viability of Mt Hotham and to provide the foundation on which all other businesses operating within the resort rely. The level of these services is determined annually in the budget process.

MHRMB facilitates the following activities at Mt Hotham:

UTILITIES

Water, sewerage, drainage, waste management, snowmaking infrastructure, plant/vehicles and workshops.

LAND MANAGEMENT AND ENVIRONMENTAL SERVICES

Property development, environmental stewardship, property and leasing, licences, planning, building, health, capital works and operations.

CORPORATE SERVICES

Strategic, business and resort master planning, administration, stakeholder management, emergency management, human resources, board administration, compliance, corporate governance, risk management facilitation, OH&S, financial management and information technology.

RISK MANAGEMENT

Risk register, asset maintenance and risk management.

BUSINESS UNDERTAKINGS

Gas supply and the Victorian Alpine Nursery.

BUSINESS AND PRODUCT DEVELOPMENT

Product development, business development, weather and snow reporting, walking trail products and the website.

PUBLIC ACCESS, SAFETY AND EDUCATION

Ski patrol, public infrastructure, visitor safety, village maintenance, car parks and roads, resort entry and visitor information, traffic control, transport, trails and snow play, snow clearing, cross-country trails and public liability insurance.


ABOUT THE RESORT

FINANCIAL SUMMARY2015 resulted in a surplus of $496,546 (2014 $1,032,892). MHRMB focused on creating an amazing alpine experience through marketing initiatives and service deliverables during the year. Investment in the resort increased with the completion of two major developments during 2015 indicating an increase in consumer confidence in the resort. Net assets have increased in 2015, mainly attributable to the $7 million of capital contributions received on the Swindlers Valley project. The pipe works were completed during the year and capitalised with the inlet structure scheduled for completion in 2016.

2010/11 2011/12 2012/13 2013/14 2014/15OPERATIONS Property revenue/FECA* $58.59 $64.14 $63.81 $66.62 $68.08

Infrastructure and admin costs/FECA* $70.01 $80.50 $79.10 $78.33 $77.05

Village, visitor and marketing costs/visitor day $9.18 $7.19 $10.07 $9.03 $11.15

RESORT INVESTMENT Total village size (FECA) 84,177 84,068 84,228 84,270 84,941

Total CAPEX (‘000) includes Geotech and WIP $2.39m $0.62m $1.02m $3.34m $5.19m

FINANCIAL Outstanding debtors as % of revenue 5.55% 9.35% 7.51% 8.29% 6.47%

Closing cash (‘000) (includes term deposits) $1,774 $3,021 $3,665 $9,657 $6,338

Operating cash flow/total assets 1.50% 2.21% 2.17% 2.70% 2.12%

Current assets/current liabilities 1.84 2.49 3.16 5.47 3.40

FINANCIAL SUMMARY ($,000)Total assets 79,305 79,891 80,179 88,443 88,666

Total liabilities 3,309 3,576 3,311 3,562 3,288

Net assets 75,996 76,315 76,868 84,881 85,378

ASSETS ARE COMPRISED BY DATE Land 41,815 41,815 41,815 41,815 41,815

Financial 2,288 4,009 4,424 10,559 7,036

Other non-financials 35,202 34,067 33,940 36,069 39,815

Total assets 79,305 79,891 80,179 88,443 88,666

FIVE YEAR REVENUE AND EXPENDITURE OVERVIEW ($,000) - REVENUE Site rental 1,644 1,733 1,512 1,421 1,440

Annual service charges 3,288 3,659 3,863 4,193 4,343

Capital ingoings 42 143 24 177 134

Visitors 2,254 2,785 2,334 2,665 2,731

Grants 100 134 65 60 74

Other sources 1,941 2,112 2,293 2,362 2,065

Total revenue 9,268 10,566 10,091 10,878 10,787

EXPENDITURE ($,000) Operating expenses 7,711 8,311 7,975 8,146 8,414

Depreciation 991 1,355 1,240 1,233 1,373

Finance expenses 114 120 115 110 105

Support payments 252 181 210 356 398

Total expenditure 9,068 9,967 9,540 9,845 10,290

NET OPERATING RESULT 200 599 551 1,033 497

*FECA – fully enclosed covered area (m2)


There were 32 consultants engaged in projects with MHRMB for 2014-15. We engaged 16 consultancies (each valued less than $10,000), for a total of $61,928. The following table lists the 16 consultants where total remuneration was $10,000 or above.

MAJOR CONTRACTS

MHRMB did not enter into any contracts greater than $10 million during the reporting period.

DISCLOSURE OF GOVERNMENT ADVERTISING EXPENDITURE

MHRMB did not have any advertising campaigns with a media spend of $150,000 or greater.

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CONSULTANCIES Project Expenditure ($)

Somerset Capital Financial comparison presentation 10,000

Surface Consulting Swindlers Valley project consulting 84,525

Rose & Barton Legal advice 14,388

Yabbie Pond Pty Ltd Potable water compliance 23,050

On Tap Consulting Pty Ltd Leasing and property consultant 120,594

Shabbadu Pty Ltd Marketing audit 37,350

Solutions H2O Sewerage consultant 48,527

Alpine Building Permits & Consultants Building permits/survey and consulting 31,207

Hansen Master Plan consultant 66,469

Fish & Nankivell CEO appointment 30,199

Blizzard Consulting Development Plan 15,000

Ecowise (ASL Laboratory Group) Potable water and sewerage testing and monitoring compliance 27,493

GoCreative Website hosting 38,336

Getting to Next Hotham Regional Development Growth Plan 10,000

Norton Rose Fulbright Award modernisation 23,520

Biosis Research Environmental survey across resort 23,089

Subtotal (greater than $10,000) 16 603,746

Subtotal (less than $10,000) 16 61,928

TOTAL CONSULTANTS 32 665,674


ABOUT THE RESORT

KEY PERFORMANCE INDICATORSMHRMB’s overall performance has continued to be strong.

2010/11 2011/12 2012/13 2013/14 2014/15CUSTOMER SERVICE Total visitor days (Winter) 318,311 411,495 264,527 332,281 313,341

Market share (Victorian majors visitor days) 28.81% 32.39% 25.07% 28.52% 26.95%

Accident rate/’000 visitor days (Hotham Historical average) 1.25 1.06 0.95 1.51 1.77

OPERATIONS Property revenue/FECA* $58.59 $64.14 $63.81 $66.62 $68.08

Infrastructure and admin costs/FECA* $70.01 $80.50 $79.10 $78.33 $77.05

Village, visitor and marketing costs/visitor day $9.18 $7.19 $10.07 $9.03 $11.15

ENVIRONMENTAL MANAGEMENT Potable water quality (compliance with Australian Drinking Water Guidelines as reported to DHHS) 98.1% 96% 100% 100% 100%

Wastewater quality (compliance with Licence Limits as reported to EPA) Compliant 75% 100% 62.5% 89%

Solid waste – kilograms (winter period) per visitor day 0.53 0.62 0.68 0.54 0.5

RESORT INVESTMENT Total village size (FECA)* 84,177 84,068 84,228 84,270 84,941

Total CAPEX (‘000) (includes Geotech and WIP) $2.39m $0.62m $1.02m $3.34m $5.19m

FINANCIAL Outstanding debtors as % of revenue 5.55% 9.35% 7.51% 8.29% 6.47%

Closing Cash (‘000) (includes term deposits) 1,774 3,021 3,665 9,657 6,338

Operating cash flow/total assets 1.50% 2.21% 2.17% 2.70% 2.12%

Current assets/current liabilities 1.84 2.49 3.16 3.47 3.40

*FECA – fully enclosed covered area (m2)


15

ECONOMIC KEY PERFORMANCE INDICATORS

2012/13 2013/14 2014/15E.1 NET CASH FLOW Net operating cash flow plus net investing cash flow as reported in cash flow statement (81,401) (3,414,660) (4,234,193)

E.2 NET ACCRUAL SURPLUS Net profit before allocation to reserves as reported in the Statement of Financial Performance 551,362 1,032,892 496,546

E.3 BUSINESS CYCLE SUSTAINABILITY Ratio of total financial assets less net accounts payable less total accrued employee entitlements

to snow drought reserve target 4.610 3.789 4.336

E.4 ASSET CYCLE SUSTAINABILITY Ratio of total financial assets less net accounts payable less total accrued employee entitlements

less snow drought fund to total accumulated depreciation of all assets. 0.42 0.26 0.25

E.5 ALL SEASON RESORT Ratio of non-winter visitors to winter visitors 0.82 0.79 0.90

E.6 AVERAGE VISITOR SPEND Ratio of total revenues to total visitors (winter and non-winter) 56.92 49.84 48.2


ABOUT THE RESORT

ECONOMIC KEY PERFORMANCE INDICATORS

Theme, indicator and measurements.

VALUING CULTURE AND HERITAGE S1 Indigenous employment opportunities. Indigenous capacity building, engagement, training and/or employment targets.

2015 actions – Close continued working relationship with Gunaikurnai including opening Brabralung Trail.

CULTURAL HERITAGE MANAGEMENT INITIATIVES S2 Respect for culture and heritage. Cultural heritage management initiatives.

2015 actions – Interpretive Indigenous signage on the tracks and trails continued.

COMMUNITY STRENGTH S3a Supporting community participation – events. Community participation in resort sponsored events, programs and activities.

2015 actions – Volunteer ski patrol, 3rd annual Camp Quality fundraiser and sponsorship and donations.

S3b Supporting community participation – consultation. Opportunities provided to the community to contribute to decisions that affect them.

2015 actions – Consultation for strategic planning, Resort Master Plan, ESTA street numbering project, lodge managers’ annual workshop, head lessees briefing, and annual stakeholder meeting at MCG plus follow up/debrief meeting.

S4 Accessible on-mountain key community services. Summer and winter presence of key community services, emergency services, medical services and grocery store.

2015 actions – Medical centre (fully subsidised accommodation), subsidy to police station and emergency services. Subsidised after hours medical services and equipment purchases for medical centre.

WORKPLACE QUALITY S5 On-mountain worker accommodation. Number of beds provided by major employers.

2015 actions – Subsidy on worker housing, staff choice of housing, flexible working hours, staff training for multi-skilling and capacity building, worker transport (summer), staff training program, alpine ecology course training and subsidised staff passes.

VISITOR FULFILMENT S6 Equitable access for Victorians. Enabling actions that facilitate culturally diverse patronage and access for disabled, socially disadvantaged and economically disadvantaged Victorians.

2015 actions – Locals’ ski pass, free guides for people with visual disability, free gate entry to local school students, tertiary student subsidy, free skidoo and other transport for people with mobility issues or a disability, free inter-village bus service, two entries – servicing east and west mountain, free resort entry in summer, graphic signage system throughout village, Omeo to Bright Alpine Bus Link and development of continuing development summer products. Increase in participation in Disabled Wintersport Australia.

S7 Availability of a range of accommodation. Publicly bookable beds per accommodation type.

2015 actions – Broad range of accommodation types: 2 to 5-star.


ENVIRONMENTAL KEY PERFORMANCE INDICATORS

2012/13 2013/14 2014/15N1. COMPLIANCE WITH WATER LICENCE CONDITIONS a) Safe Water Drinking Act standards 100% 100% 100%

b) EPA licence conditions 100% 62.5% 89%

c) GMW licence conditions 100% 100% 100%

N2. POTABLE WATER CONSUMPTION a) Winter total potable water usage 47.3 ML 57.0 ML 61 ML

b) Annual total potable water usage 79.9 ML 97.1 ML 102 ML

c) Winter total potable water usage/visitor 0.18 kl/vol 0.17 kl/vol 0.20 kl/vol

N3. RENEWABLE ENERGY CONSUMPTION BY BOARD Renewable energy as a proportion of total energy consumption (Joules) by Board related activities per annum Unit: % (Joules/Joules) 0% 0% 0%

N4. GREENHOUSE GAS EMISSIONS Greenhouse gas emissions from electricity, diesel and ULP consumption by MHRMB activities 1909.66 t 1992.77 t 2262.0 t

N5. SOLID WASTE DISPOSED TO LANDFILL Solid waste disposed to landfill based on truck tonnage figures

a) Annual tonnage 221.5 t 232.6 t 180.9 t

b) Winter tonnage 179.8 t 181.2 t 155.7 t

c) Winter tonnage/visitor days 0.68 kg/vol 0.54 kg/vol 0.50 kg/vol

N6. ACTIVITIES IMPLEMENTED THAT PROTECT THREATENED SPECIES POPULATION AND COMMUNITIES

Activities implemented within threatened species action management plans to protect threatened species populations and communities 100% 100% 100%

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OUR HUMAN RESOURCES AND ORGANISATIONAL DEVELOPMENT MHRMB’s aim is to provide effective ongoing management of organisational development, OH&S, WorkCover, human resource management, emergency management, administrative systems and processes. It is also essential that we organise our human resources in a way that delivers the most effective service to the community and our visitors, whilst recognising our obligations to staff.

EQUAL EMPLOYMENT OPPORTUNITY

MHRMB is an equal opportunity employer and all appointments and promotions are merit-based and based on the principles of the Public Administration Act 2004.

MHRMB has fulfilled its obligations under section 7, public sector values, of the Public Administration Act 2004, upholding responsiveness, integrity, impartiality, accountability, respect, leadership and human rights.

INDUSTRIAL RELATIONS

There were no industrial disputes during the reporting period.

The MHRMB’s Enterprise Agreement 2013 was ratified by Fair Work Australia on September 4, 2013 and will end in September 2016.

The Agreement is premised on recognising Mt Hotham as a remote, hazardous and isolated work environment. The need to attract and retain the best, most competent, flexible, willing staff is essential in providing a seamless customer service that enhances the visitor experience.

OCCUPATIONAL HEALTH AND SAFETY (OH&S)

OH&S is a significant component of our Risk Management policy and we are totally committed to establishing a healthy and safe work environment for our staff, contractors and visitors by:

• Encouraging individuals to practice work safety by providing information, instruction and training;

• Provide safe plant and systems of work; and

• Ensure compliance with legislative requirements and current industry standards.

OCCUPATIONAL HEALTH AND SAFETY COMMITTEE

There were no days lost due to injury. There were no major OH&S issues in this reporting period.

The OH&S Committee held 10 meetings during the 2014/2015 reporting period and has been actively engaged in:

• Writing policy and procedures, including management and action plans;

• Conducting workplace inspections;

• Facilitating training sessions;

• Reviewing the OH&S Management System.

GIFTS, BENEFITS AND HOSPITALITY ATTESTATION

I, Jon Hutchins of Mt Hotham Resort Management Board (MHRMB) certify that MHRMB has policies and procedures in place that are consistent with the minimum requirements and accountabilities outlined in the Gifts, Benefits and Hospitality Policy Framework issued by the Public Sector Standards Commissioner; staff are informed about these gifts, benefits and hospitality policies and procedures; and the Audit and Risk Committee reviews the operation of the policies and procedures at least once a year to ensure transparent reporting of accepted gifts, benefits and hospitality.

Jon Hutchins | Chief Executive Officer Mount Hotham Resort Management Board

RESORT MANAGEMENT TEAM

The day to day running of the organisation is undertaken by the CEO and a small year round work force, which is supplemented by seasonal staff and volunteer ski patrollers. All staff members are employed under the Mt Hotham Resort Management Enterprise Agreement 2013. The CEO is contracted under Government Sector Executive Remuneration Panel guidelines.

TRAINING AND DEVELOPMENT

MHRMB encourages staff to keep up to date with their knowledge and skills in a variety of work areas. Staff members undertook the following training and courses in 2014-15:

• First Aid Level II;

• Annual CPR updates;

• Hazardous area authority training for bus and heavy vehicle drivers;

• Safety Management Course for bus operators;

• Water Treatment modules;

• Payroll, Superannuation and Taxation update seminars;

• Australian CFO Leadership Program training;

• CPA and Payroll Management course modules;

• Apprentice Mechanic TAFE course training;

• Emergency and Risk Management training;

• Equipment Operator Competency training;

• Fork Lift Training;

• OH&S Training;

• Annual Ski Patrol refresher units; and

• Fire Warden training.

A number of these courses were either held onsite, locally or via online training. Other organisations including on mountain businesses and other Victorian alpine resorts were involved.

FULL TIME WORKFORCE

2013-14 2014-15Management administration 8F/4M 9F/4M

Resort operations 2F/9M 1F/9M

ORGANISATIONAL STRUCTUREThe Alpine Resort Management Boards act on behalf of the Crown [S35] in carrying out its functions and powers. A Board may employ any persons it considers necessary for the purposes of the Act [S41]. This year a comprehensive review of the organisation was undertaken to ensure the most effective, efficient and safe delivery of Mt Hotham’s services. This resulted in a new organisational structure being adopted for permanent staff. As at October 2015 the organisation had the following structure:

BOARD

CHIEF EXECUTIVE

OFFICER

Chief Financial & Accounting

Officer

General Manager

FT Staff 2 PT Staff 1 FT Staff 3

Manager Technical &

Environmental Services

Manager Innovation and Guest Services

FT Staff 9 PT Staff 5

FT Staff 1 PT Staff 2




SKI PATROL AND SKIER SAFETYSNOWFALL AND LIFT OPERATIONS

After a slow start, season 2015 turned into a decent winter with good snow cover across much of the resort from mid-July onwards. Snowmaking really proved its’ worth this year, as there was virtually no natural snow until early July. Major areas on Imagine and the Summit were unavailable until significant natural snow fell however there were lifts open from opening weekend. The season received less snowfall than the 10-year average (298 cm) but with little rain, and good overnight freezes during spring, the snowpack maintained and many lifts operated until the official closing on 27th September.

Opening weekend saw three lifts operating on machine-made snow (Big D, Playground and Summit Trainer) while the Village Chair opened on 27th June during the school holidays. Heavenly Valley Chair opened for Snake Gully ski run only (due to snowmaking) on 6th July. The first significant natural snowfall began on 10th July and delivered 73 cm of fresh snow, which allowed the Summit and Road Runner to open, along with many other non-snowmaking runs. The Drift, Gotcha, and Keogh’s/Orchard opened in late July, while Blue Ribbon opened on 8th August for the resort to become100 per cent operational.

There were three substantial snowfalls before 7th August and three significant but smaller events before the end of August. The total snowfall was 248 cm while the highest recorded base was 112 cm on 12th August. Although not a huge base, the temperature remained cold during the peak season, which helped maintain the snowpack and delivered great surface conditions for the busiest part of the winter. Classic spring conditions prevailed throughout September. Cold nights, sunny days, light winds and softening snow being the norm.

Blue Ribbon closed on 28th August. Gotcha, Keoghs/Orchard closed on 14th September, while all other lifts remained open until the end of the season.

THE PATROL

The Hotham Ski Patrol is made up of paid and volunteer members. For the winter 2015 season there were: 23 paid patrollers (13 full time, 10 part-time), 39 volunteer patrollers (35 qualified plus 4 trainees), and 4 trail crew (volunteers).

ACCIDENTS

The patrol attended to approximately 940 callouts, with 441 (66 per cent) requiring further treatment at the medical centre. The accident rate per thousand skier days was 1.77 per thousand skier days, which is above previous years but well below the accepted international average of 2.4 per thousand skier days.

Most accidents attended were for minor injuries at the beginner areas of the Summit and Big D, followed by the high traffic area of Slalom Gully however there were also more major trauma events than we have attended to for some years. Several of these occurred in our more challenging terrain and some required rope extrication from difficult-to-access locations.

The two most significant events for the winter were medical condition collapses where the casualties ceased breathing. On both occasions there was a patroller on scene within seconds, CPR was commenced immediately, and extra personnel and equipment arrived within a minute. The cause of the collapse of one of the gentlemen is unknown but the other had suffered an acute myocardial infarction (heart attack). Both casualties resumed breathing at the scene, regained consciousness while being transported to the medical centre, and have now made full recoveries.

SCHOOL HOLIDAYS

The June/July school holidays proved very challenging with many guests and limited open terrain causing congested runs. With the Summit being closed there were many lower level riders mixing with others of higher ability on the Village Loop and Snake Gully. During this time the ski patrol maintained a high presence in the busy areas and extra personnel were tasked with mountain awareness shifts.

SEARCH AND RESCUE

Although there were no extended searches beyond the resort boundary, there were three significant events this season. One involved an eight-year-old who had split from his lesson on The Cornice in very poor visibility, became disorientated, and was later located in the trees between Joyce Brockhoff Hut and Lindsay’s Bridge.

Another involved a five-party team who had deliberately gone out of bounds near Golden Point but had drifted too far to the east and rang the ski patrol when they realised they were lost.

The third was in the Dargo bowl area where a male snowboarder had ridden into an icy gully and was unable to climb out without the assistance of the patrol using crampons, ice axes and ropes. All three incidents were resolved within an hour of the ski patrol being notified.

In recent years there have been fewer patrons accidently leaving the ski area than in the past. Enhanced boundary lines and more stringent visibility criteria for the opening of certain lifts and runs may have contributed to this reduction.

AVALANCHE HAZARD

Small to moderate sized overnight snowfalls throughout winter meant there was minimal risk of avalanche. Control work was only necessary on three mornings.

SCHOOL TALKS

Patrol continued the School Education program with weekly presentations delivered to visiting school groups. The focus was on snow safety and accepted/expected slope use.

JUNIOR OPEN DAY

The junior open day program proved very popular in its second year of operation. Three groups of up to 12 school children from the Dinner Plain School (and other local children) spent four hours learning about all things ski patrol.

They were shown several skills throughout the day and participated in the sweep of the mountain on closing. The children loved the experience, and it was great public relations for the patrol.


TRAINING

There were three new trainees and nine trainees in total at the start of the season. The recently overhauled training program proved very effective and trainees progressed at a faster rate than past years.

Four patrollers attended the Steep Snow and Ice Rescue Course facilitated by the Victoria Police and held at Mt Hotham. Two patrollers attended the New Zealand Avalanche Safety Stage One course in Wanaka NZ.

TRAIL CREW

The volunteer Trail Crew program again proved enormously helpful with on slope equipment maintenance. It is also a great stepping-stone into the volunteer ski patrol. There were four Trail Crew members in 2014-15.

SNOW STAKE READS

Reading of the snow stakes at 5.30 each morning after snowfalls continued, resulting in accurate reporting for the lift company’s marketing department.

VOLUNTEER PATROL

The Volunteer Patrol contributed a total of 418 shifts for the winter (including trainee and cross country shifts). The 300 qualified patroller shifts account for approximately 20 per cent of all patrol shifts. Four people passed the ski patrol induction this year and will begin training next winter.

SNOWMOBILES

The purchase of a new four-stroke snowmobile mid season was much needed. Mt Hotham now has three snowmobiles capable of performing all tasks.

WINTER 2012/13 2013/14 2014/15

Days for winter 107 114 113

Night skiing nights 24 20 30

Maximum natural snow depth (cm) 128 149 112

Total accumulated snowfall (cm) 299 286 248

Visitor days 264,527 332,281 313,341

Skier days (approximate) 224,116 246,684 250,276

Accident rate per 1000 skier days 0.95 1.18 1.77

Incidents attended by ski patrol 599 841 940

Incidents referred to medical centre by ski patrol 301 471 441

SKI PATROL

Paid ski patrol staff 19 20 22

Paid ski patrol shifts 942 1167 1193

Volunteer ski patrol staff 33 33 31

Volunteer ski patrol shifts 234 347 289

Volunteer ski patrol trainees 8 6 8

Ski patrol trainee shifts 155 128 118

Cross country ski patrol shifts 12 14 11



SNOW PLAY

CROSS-COUNTRY SKIING

The snow play and toboggan area located at Wire Plain has proved to be a very popular attraction for families of all ages. First time visitors come from far and wide to experience this fun alpine recreation. It is an activity that anyone can enjoy and at a low cost. The site at Wire Plain is protected from extreme weather conditions and provides a beautiful area for families and non-skiers who are enjoying the snow for the first time.

MHRMB supports a private operator hiring toboggans; kid’s snowmobiles and delivering a safe environment for other related snow play activities. Two of the many services the Board provides are grooming of the toboggan area (weather permitting) and providing an intra village bus system for transporting visitors.

2015 saw the introduction of Husky Sled Dog Tours operating out of the Wire Plain area. Howling Husky Sled Dog Tours were conducted on both the Dargo Loop and Possum Flat Trails. The ever-increasing demand for non-skiing/boarding activities ensured good patronage of this exciting new snow based experience.

MHRMB provides a free cross-country trail system. With this year’s late snowfall, the cross-country trails held up extremely well for the rest of the season. Our groomers utilised a variety of tactics including snow farming and harvesting to ensure the best coverage of the trails throughout the season.

Mt Hotham boasts Australia’s only Snowsports Competition Biathlon range. This year saw the Japanese team training at the range. At this stage they are looking forward to returning in 2016 along with the Korean and USA team. After spending winter 2015 training at Mt Hotham, Damon Morton from the Australian team has now qualified for the World Championships and Darcie Morton has qualified for the Winter Olympics.

We had good levels of cross-country skier participation over the seasons’ racing calendar. The Hotham to Dinner Plain “Pub to Pub” cross-country ski race was one of many events utilising the extensive trail network.

SHARED MULTI-USE TRAIL NETWORK

A complete re-branding of the cross-country trail network was undertaken during the summer prior to the 2015 winter season. This project involved renewing all trail signage infrastructure, maps and communications. Key areas and trails had been identified for additional activities including snow shoeing, fat biking, sled dog and snowmobile tours complementing the traditional cross-country skiing trail usage.

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TRANSIT OPERATIONSThe topographical layout of the resort requires the provision of an efficient and effective transport and car parking service. The resort transport and parking service is provided between the hours of 6:30 am and 2:00 am (3:00 am Friday, for late Friday night arrivals). The service is provided for both day and overnight visitors with peak loads being influenced by lift opening times, Friday night arrivals, and increased weekend visitation. The bus transport network extends from Hotham Central to Whiskey Flat with parking services extending to Loch car park and at Ski Patrol request providing transport from Loch car park to the village precinct.

With the addition of a nine seater Volkswagen transporter fitted with a wheel chair lift, MHRMB was better positioned to provide contemporary ambulant services to an increasing number of mobility impaired visitors.

Working closely with Disabled Wintersport Australia and a number of accommodation operators, we were able to provide transport to

and from the ski area and other venues within the resort.

A number of changes were made to bus stopping points throughout the village bus route during the 2015 winter with a view to improving visitor safety and guest service. Whilst not all improvements were received with full support, the majority of feedback received was positive. The operations team will continue to review transport and parking services with a view to increasing guest safety whilst providing the best possible service.

A prototype bus shelter was trialled at bus stop number six outside the General Store and feedback was sought prior to rolling out the shelters throughout the village. The shelter proved very popular with guests and more shelters will be installed as part of the summer capital works.

The transit operations team consists of more than twenty (returning and new) seasonal employees. Our staff members bring a wide range of experiences from varied backgrounds. All staff are inducted in house and require as a minimum: a

Medium Rigid Licence, Victorian Taxi Directorate Drivers Accreditation and Hazardous Area Driving Authority.

A number of our employees completed the Hazardous Area Bus Driving Course at the commencement of the winter season with in-house training conducted prior to the commencement of the season. A further seven staff worked closely with transit operations staff to provide extra guest information and ensure compliance with permit and parking regulations.

No major incidents or breakdowns were reported this season, reflecting the skill of the drivers, management systems and the high level of maintenance provided by the workshop mechanics.

MHRMB’s bus service was accredited under Part 2 of the Public Transport Competition Act 1995 (Vic) that ceased on 31st December 2010, and is now ‘deemed to be’ accredited under Part 4 of the Bus Safety Act 2009.



OUR SERVICES

UTILITIES

POTABLE WATER

Key utility services provided by MHRMB include:

• A reliable supply of potable water that conforms to Australian Drinking Water Guidelines,

• The collection and processing of wastewater to comply with EPA licence conditions,

• DHHS Risk Management Plan, the disposal of putrid-rotting waste at the Cobungra landfill in accordance with the EPA best practise guidelines for Landfills Exempt from Licencing (LEFL) and the storage and supply of Liquid Petroleum Gas (LPG) throughout the village in compliance with the Gas Safety Act 1997.

The source of the village water supply is the upper reaches of Swindlers Creek. A catchment area of 177 hectares with a number of small spring fed tributaries flowing into a raw water weir. Water flows under gravity from the weir to the raw water pump house. It is then pumped up the rising main to storage tanks on the summit of Mt Higginbotham. The stored raw water flows to one of two ultra violet (UV) facilities for disinfection immediately prior to distribution for customer use.

To ensure the supply of safe, high quality drinking water to consumers and to meet regulatory compliance, weekly drinking water samples are collected and tested for E. coli and turbidity. Samples are taken at two points: immediately after

UV treatment and at two of several designated consumer tap points throughout the resort.

Monthly sampling is also taken from the raw water weir prior to UV treatment. No E. coli was detected in any samples collected during the reporting period achieving 100 per cent compliance with the drinking water quality standards. A copy of the 2014-2015 Drinking Water Annual Report can be found on the website at www.mthotham.com.au

MHRMB holds an annual diversion licence with Goulburn Murray Water (GMW) for the extraction of water from Swindlers Creek. MHRMB consumed an annual total of 102 megalitres of water for the reporting period, 60 megalitres during the period

June 1 to September 30 2015. This equates to 0.20 kL per visitor day.

As part of the proposed construction of the an inlet structure associated with the replacement of the Swindlers Valley pipeline replacement project, MHRMB was successful in gaining a licence from GMW to conduct works for the inlet. The inlet structure comprises of a headwall five metres in height within the streambed, which will effectively work as a dam with a holding capacity of approximately two megalitres. MHRMB will work with GMW to review our current diversion license to reflect the new raw water supply and diversion point in the future.

POTABLE WATER CONSUMPTION

Nov-14

Dec-14

Jan-15

Feb-15

Mar-15

Apr-15

Jun-15

May-15Jul-1

5

Aug-15

Sep-15

Oct-14

0 kL

5000 kL

10000 kL

15000 kL

20000 kL

25000 kL


WASTEWATERThere have been several changes and upgrades at the Mt Hotham Wastewater Treatment Plant (WWTP) during 2015, which have led to an overall improvement in plant performance.

The aeration system saw a major upgrade with the installation of actuated valves to control air delivery to the bioreactor tanks that are controlled by dissolved oxygen probes in the tanks. The three PDA blowers now all feed into the one manifold with the air being distributed by the actuated valves. Before this upgrade the system was split with two blowers feeding different parts of the aeration system.

As a result of the upgrade we now have 100 per cent duty back up with the blowers, which means that in the event of a major breakdown, processes will not be disrupted. One blower running the whole plant during the peak winter load as opposed to the previous system of two blowers also achieves improved overall power efficiency.

The Return Activated Sludge (RAS) well also saw a major upgrade with new pumps installed in the well; new variable speed drives to run the pumps; pipework and a new flow meter installed outside the RAS well. Historically the RAS has run on a timer pin system that involves a lot of calculated estimates.

This new system now runs in a continuous RAS flow mode through winter where the RAS return can be set as a percentage of the WWTP in-flow and the flows matched to each other. This means the biology is being returned more during peak loads and less on lower loads improving overall treatment efficiency.

A second dosing point was installed for alum and caustic to improve flocculation and settling in the clarifier. This will improve the feedwater quality for the ultrafiltration plant and lead to longer run time and less down time.

As part of the annual maintenance program all the aeration tanks, digester and the gravity thickener were cleaned and inspected.

The biosolids dewatering program (waste sludge from the treatment process) at the Cobungra evaporation pan continued with a complete drying of all biosolids from season 2013. Biosolids from season 2014 are currently in the evaporation pan. Dewatering involves treating the biosolids to a stage where they are greater-than 65 per cent solids and sterilised through application of lime and UV radiation. This dry product will then be mixed with soil and utilised for landfill cell capping.

The key objectives of Mt Hotham WWTP are to continually work towards improving overall operational efficiency, effluent quality and biosolids reuse in compliance with our EPA licence.

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OUR SERVICES

SOLID WASTE MANAGEMENTMHRMB is responsible for the collection and disposal of household putrescible waste generated within the resort boundaries, from Wangaratta Ski Club (near Dargo Road) through to and including the Mother J’s snow clearing station.

The 2015 winter season saw a number of changes to the waste collection service including the relocation of a number of garbage hutches to facilitate safer access and the conducting a trial daily wheelie bin collection service in the Davenport Village Precinct. This trial saw the installation of wheelie bins in a number of hutch locations. Wheelie bins were then transported by snow mobile to the road for handling by MHRMB waste compactor vehicle. The trial was well received by operators in the Davenport area and has provided valuable insight into future collection options for the resort.

We put an emphasis on community education. Winter 2015 started with our staff participating in the lodge manager’s meeting held at the Mt Hotham CFA station. Staff provided information on all aspects of the waste collection service with particular attention to the recycling and organics collection, as well as support and ongoing information to both lodges and commercial operators throughout the resort.

MHRMB again held an open day at the transfer station, for the general public, during the winter season.

The solid waste staff demonstrated the recycling procedures conducted by MHRMB on the mountain and explained where the final product is transported.

MHRMB continues to improve its waste management systems and would like to acknowledge the efforts of the community in support of our waste collection and recycling initiatives. During 2015 winter MHRMB undertook a number of surveys through both the collection and sorting of the waste streams within the resort.

The community and MHRMB have again diverted more than 38 tonnes of organic material from landfill with 11 new participants in the program from previous years. 30 tonnes of organics was collected and transported to Western Composting Technologies in Shepparton for processing. Further to MHRMB’s commitment to the reduction of waste to Landfill, a new initiative for 2015 saw MHRMB divert a further two tonnes from landfill by the recycling of polystyrene and recycling collection bags. Whilst the total tonnage diverted is not large, the m³ reduction is quite significant with an estimated 20m³ of polystyrene and 25m³ of recycling collection bags being removed from landfill.

Our ongoing collection of comingled recyclables saw a further 4.5 tonnes of aluminium cans, P.E.T plastics and H.D.P.E plastics baled, 79 tonnes of co-mingled recyclables collected for processing and 37 tonnes of cardboard collected and baled for the year.

Total waste to landfill for the 2014/15 year was 181.2 tonnes. This is a reduction on previous years and a great result considering the increased visitation for the 2015 winter and is representative of MHRMB and the community’s commitment to waste minimisation.

To assist the community in the coming year, two hard waste and green waste collections will be conducted during the green season.

LITTER REDUCTION PROGRAM

During May 2015, MHRMB commissioned an external contractor to assist with the recovery of rubbish from the Dargo River catchment below the resort. The exposed ridgetop location of the village along with prevailing northerly winds has historically seen litter and dumping of rubbish into the remote Dargo catchment. A crew of eight spent five days collecting and bagging resort rubbish into stockpiles before a helicopter was used over an afternoon to lift it out. Significant items collected included an old rusted fridge, a large truck tyre, ski field equipment including padding and broken conducts and signage.

Regular roadside litter collections and maintenance of the public place bins continued for winter and immediately following the snowmelt. A large amount of litter was collected minimising the impact on the environment. Further to this the annual community “Clean-up Hotham day” was conducted on the 20th October, with support coming from MHRMB, Mt Hotham Skiing Company and a number of other stakeholders.

During winter, 13 kilograms of cigarette butts collected from public place bins were sent to TerraCycle where they will be recycled into shipping pallets. Every kilogram sent by MHRMB attracts points towards our nominated charity, Camp Quality.

PERCENTAGES OF RECYCLED AND WASTE 2015

Putricible waste 59% Co-mingled 24%

Organics 9%

Cardboard 8%


LANDFILL OPERATIONS

Cobungra Landfill is situated approximately 30 kilometres from the resort along the Great Alpine Road. It is approximately two hectares in size and has been operating since the early 1980s. It is also the only landfill operated by a resort management board. The site receives putrescibles and inert waste from general and commercial resort operations. Hard waste and hazardous materials are not received at the landfill, which is closed to the public. An area of the site is used for receiving and treating bio-solids from operations at the sewerage treatment plant. The site is exempt, under the small towns exemption, from stringent licensing requirements with the EPA.

The site is located on land with a Segment A groundwater table. A 50 metre groundwater monitoring observational bore was installed at the site in 2012 with initial sampling for groundwater quality conducted. In November 2014, MHRMB commissioned a second round of sampling which yielded results similar to 2012. Slightly elevated levels of heavy metals and nitrates were recorded against ANZECC water quality guidelines for Segment A groundwater. Further works is required to determine if these elevated levels can be attributing to contamination or naturally occurring background levels.

Since 2010, MHRMB has collected organic food waste generated at the resort with increasing

levels. To date organics have been transported to Western Composting in Shepparton for processing. In July 2015 MHARMB staff attended an open day at a community composting facility in Mallacoota by East Gippsland Shire. In September, MHRMB held approximately three tonnes of organic material and established a trial at Cobungra Landfill utilising a windrow technique. The aim of the trial is to establish the requirements for composition of materials and time considerations with regards to the environmental constraints of the site if a permanent facility was to be established.

TONNES OF LPG USED ACROSS THE RESORT

GAS OPERATIONSLPG is a clean, efficient and cost effective energy source. MHRMB owns, operates and maintains the LPG system at Mt Hotham. As a provider of gas, we are required to meet obligations under the Gas Safety Act and associated Regulations. Energy Safe Victoria acts as regulator and conducts an annual audit of the facilities and operations requiring MHRMB to develop and implement a gas safety case as the central mechanism in acquitting safety obligations.

A regulator malfunction occurred during May 2015; an unforeseen and isolated incident that resulted in the loss of commercial supply to some customers within the resort for a period of five to six hours. Customers were kept informed by staff of the situation. There were access constraints to some properties to arrange for re-supply, however staff were able to ensure all affected customers were resupplied by the following day. The malfunctioning regulator was replaced with no further incidents during the reporting period.

We received 558.28 tonnes of LPG to service customers across the resort under contract with Origin Energy during the reporting period. In comparison, 512 tonnes was delivered in 2014 and 642 tonnes in 2013.

The price of the supply to Mt Hotham’s LPG consumers fell by 26 per cent as the world price for petroleum products decreased. Our price is set against the world price with a fixed margin.

TONNES 100 200 300 400 500 600 700

2013

2014

2015


OUR SERVICES

ASSET MANAGEMENT

GEOTECHNICAL PROGRAM

The provision of compliant and well-maintained infrastructure and equipment is a critical success factor for the resort, particularly given the resort’s geographic and climatic profile.

Key objectives of our capital works programs have been to augment infrastructure to meet development demand and provide enhancement to village aesthetics, guest services and operational capacity through improvement to long-term

infrastructure and development.

As much infrastructure is underground, we are conscious of providing a sense of progress for stakeholders through balanced provision of visible community facility or aesthetic improvements.

MHRMB is responsible for key utility services and infrastructure including potable water, sewerage, LPG and stormwater systems. These systems have

been installed over the past 35 years to various standards. In the previous ten years much work has been undertaken on locating, identifying, undertaking inspections and logging these key infrastructure elements.

Since 1998, MHRMB has been working cooperatively with the Department of Environment, Land, Water and Planning (DELWP) to manage land stability risks across the resort. The land stability program has identified and mitigated a range of risks identified through the land stability survey conducted by Snowy Mountain Engineering Corporation in 1997.

The latest geotechnical project follows on from the corrugated iron pipeline to divert water in Swindlers Valley. This had been installed in the 1980s diverting Swindlers Creek underground within the vicinity of the Heavenly Valley ski field area and was severely degraded.

The Swindlers Valley pipeline replacement project saw MHRMB receive $6.02 million dollars in funding from the Victorian Government with a total project budget of $7.6 million.

We sought expert judgement and consultation in the design development of the pipeline and inlet control structure to ensure a 100-year lifespan and to accommodate flows from Slalom/Snake Gully and Upper Swindlers catchments for current and future extreme hydrological events.

We undertook comprehensive catchment analysis calculating total peak flows at the Upper Swindler’s catchment output location (36m3/second). Taking into account additional flows from Slalom Gully catchment, the overall pipeline has been

designed to have a hydraulic flow capacity of 46m3/second.

A three-phase low risk approach had been adopted for the project; stage one design and preliminary works were completed during 2013-14. Stage two works included:

• Removal of utility services (optic fibre; copper communications; low voltage electrical; potable water and snow making water),

• Replacement of the main pipeline with a 2.1 metre reinforced concrete pipeline with rubber ring joints, commencing from the outlet and progressing upstream towards the inlet location,

• Replacement of valley services in a progressive manner behind the newly placed pipeline,

• Construction of a temporary inlet and permanent outlet structure for the pipe, and

• Re-establishment of the site with native vegetation.

Extons Pty Ltd was awarded the contract to complete pipe-laying works with our project team completing remaining site works. A specially purchased six-wheel drive Mack truck and modified forklift were used to lift and transport the concrete pipes to the job site. The construction consisted of four 3000 mm diameter pipes tapering to a further 208, 2100 mm diameter pipes including eight which were fabricated with five

degree bends, that were installed creating a new pipeline almost 500 metres in length.

Pipes were bedded, haunched and backfilled in a progressive nature with additional considerations and works conducted to ensure sufficient support was given to structures associated with the village chairlift surface and groundwater management in the excavation areas. Works included the construction of a temporary inlet, permanent outlet structure and reconnection of services including reinstatement and final grading to the valley floor for winter 2015. Straw and jute mesh were laid to stabilise earthworks. Works associated with sealing, public lighting and revegetation works at Whitey’s car park was also completed.


CAPITAL WORKSEach year MHRMB adopts a capital works program, which is prioritised from a comprehensive 10-year program. The value of the annual program depends on available surplus, previous year’s depreciation and availability of external funding grants, as from time to time the Board secures third party funds for specific projects.

Projects are selected to meet the highest priorities based on seven key drivers:

1. Asset replacement;

2. Infrastructure maintenance and development;

3. Opportunistic;

4. Regulatory;

5. Village aesthetics;

6. Geotech/land stability; and

7. Risk management.

During the current reporting period a focus on village aesthetics saw Australia’s first 360-degree roundshot web camera commissioned on the Hull Skier Bridge just prior to winter 2015 and a prototype bus shelter design was tested at the General Store where verge sealing to the bus stop was also completed. New signage and rock wall at Hull skier’s bridge and a trail head sculpture installed at Loch car park. Works commenced on improving ski field safety by upgrading the

boundary pole line in areas and improved signage.

Utility services were installed or upgraded to Slatey’s Shed including drainage works along the Great Alpine Road and sealing the verge from the workshop to Slatey’s shed, improving car parking facilities and reduce stormwater sedimentation runoff. Several fire hydrants were upgraded in the Davenport Village area.

The fleet asset replacement program continued, the skid steer loader was replaced, the coaster bus was replaced by an AWD 12 seater Volkswagon Transporter and we purchased a new three tonne forklift.

Capex Allocation at 1 Nov 2014 Funding Received 2014 Expenditure Expenditure YTDASSET REPLACEMENTS Office Systems & Equipment $18,000 $- $3,485 $17,342

Fire Hydrants $7,000 $- $- $9,183

Fleet, Plant & Equipment Replacement $438,000 $- $- $475,111

Medical Centre Equipment $30,000 $- $- $30,340

Gas Regulator Train $- $- $- $12,074

Nursery Hot House Evaporative Units $- $- $- $8,579

Minor Items under 10k $10,000 $- $- $13,045

Sub Total for Asset Replacements $503,000 $- $3,485 $565,674

STRATEGIC INITIATIVES Trail Design & Concepts $35,000 $- $- $27,066

Digital Tour Guide $10,000 $- $- $7,045

Trail Head Signs $20,000 $- $- $11,618

Lock Trail Head signs $15,000 $12,432 $3,484

Short Walks $10,000 $- $- $8,554

Hotham DP Trail Indigenous Interps $10,000 $- $- $7,831

Sub Total Strategic Initiatives $100,000 $- $12,432 $65,599

INFRASTRUCTURE DEVELOPMENT Bus Shelters $45,000 $- $- $26,505

Slatey Shed Utilities &Services Connections $160,000 $- $- $98,744

Village Aesthetics including Welcome to Hotham Signage & Round Shot Web Camera $190,000 $- $- $148,045

Verge Sealing along the Great Alpine Road $400,000 $- $- $538,627

Ski Field & Safety Infrastructure $18,000 $- $- $17,271

Deferred Projects $153,000 $- $- $1,482

Sub Total Infrastructure Developments $966,000 $- $- $830,674

GEO-TECHNICAL GAR Batter Works Fountains $50,000 $(50,000) $- $-

Swindlers Valley Drainage $7,526,544 $(7,154,544) $2,707,925 $3,699,690

Total Geo-Technical Expenditure $7,576,544 $(7,204,544) $2,707,925 $3,699,690

TOTAL CAPITAL EXPENDITURE $9,145,544 $(7,204,544) $2,723,842 $5,161,637


FLEET MAINTENANCEMHRMB workshop mechanics maintain a large fleet of vehicles, plant and equipment in full readiness for a variety of tasks throughout the year.

The MK4 0305 Mercedes Benz buses that were commissioned for winter 2015 performed well this season. Weekly safety checks and preventative maintenance on buses and other fleet vehicles continued to be successful in reducing breakdowns and increased reliability. Record car numbers in the resort over August weekends saw all buses operating smoothly accommodating guests transport needs. Periodic maintenance was carried out on heavy plant and light vehicles to prevent unscheduled breakdowns and ensure reliability throughout winter.

MHRMB has a fleet upgrade program to replace items on a regular schedule to reduce maintenance

costs, unplanned breakdowns and ensures better trade in prices before it depreciates past its optimum replacement value. This year saw the purchase of a new electric forklift for the garbage recycle shed. The forklift has seen an increase in movability in the shed and has a zero per cent emission. Another new addition was a replacement track system to the garbage collection oversnow vehicle. The track system is to improve traction over bitumen surfaces and provide minimal impact to areas of poor snow levels.

An external audit is conducted annually on the buses, where tests include dynamic, break rolling resistant and visual inspections. All buses passed, receiving their roadworthy certificate. This is a testament to the effective summer works program that the workshop staff members carry out every year.

OUR SERVICES



Mt Hotham has significant recreational attributes afforded by its unique location and environment. It also has substantial future development opportunities, including available land for ski area expansion, opportunity for enhanced and augmented snowmaking capabilities and potential to further develop winter and summer amenities.

MHRMB’s approach to sustainable growth and development of the resort is founded on the vision “to share an amazing alpine experience” and a strategy that will:

• Maintain and build upon its functional role as a preeminent winter tourist destination through

the provision of a diversity of winter activities and experiences,

• Focus on expanding opportunities for summer/non-winter season activities and experiences in a sustainable way,

• Encourage new commercial development opportunities, which builds upon substantial asset investment,

• Facilitate a new ‘village heart’ at Mt Hotham Village to accommodate new commercial, leisure and recreational hub for the resort,

• Ensure Davenport Village, Wire Plain and Whiskey Flat precincts perform supporting

roles, based on expectations of resort users and visitors, and

• Ensure visitors are seamlessly directed to their intended destination to reduce travel time, thereby increasing their recreational enjoyment of the resort.

During this reporting period the focus has been on the preparation of a Master Plan and the resolution of the planning impediments associated with Bushfire Management Overlay and native vegetation offset provisions.

MASTER PLAN

GROWTH DEVELOPMENT PLAN

Hansen Partnership was engaged to develop the Master Plan for Mt Hotham in January 2014. The aim of the plan is to ensure future development of Mt Hotham proceeds within the context of a clearly documented and strategically supported policy framework. Once finalised the Mount Hotham Master Plan will provide certainty for stakeholders and investors and confidence for government that Mt Hotham’s functional role and future opportunities are appropriately managed and coordinated.

The Master Plan will guide and facilitate future development and the ongoing evolution of Mt Hotham as one of Victoria’s premier alpine resorts. This includes a continued winter season focus and expanded, as well as economically sustainable, year round activity.

The work completed so far has resulted in the development of:

• An overall vision for Mt Hotham’s development,

• An analysis of the existing conditions of Mt Hotham and the designation of five activity node precincts: Hotham Central, Over Snow, Davenport, Wire Plain and Whiskey Flat,

• An overall Mt Hotham Resort Framework Plan to guide the functional roles of designated precincts within the resort, and

• Specific vision statements and Framework Plans for each of the five designated precincts.

In the development of the Mt Hotham Master Plan, public comment and feedback was sought through a series of workshops in Melbourne and on the mountain. Specific agency consultation sessions

were also conducted. The outcomes of these consultation sessions were synthesized and have been incorporated into the plan development.

This work now forms the basis of, and is contained within the draft Prescient Development Plan which was presented to the Minister in September 2015. The final Master Plan will not seek to nominate fixed or mandatory outcomes, rather provide a flexible ‘road map’ to guide future development initiatives.

As prescribed by the Alpine Resorts Strategic Plan 2012, other elements of the Master Plan deal with an Infrastructure Plan, Environmental Management Plan, Native Vegetation Provisions, and a Fire and Emergency Management Plan.

In response to the first area of focus, the Board developed a Development Growth Plan, which centred on a common vision, direction and purpose in the form of an authentic belief statement, which is:

“To share an amazing alpine experience”

The Development Growth Plan has been prepared to outline the parameters, timelines and processes

to implement the Master Plan. Underpinning the Development Growth Plan is the concept of co-creation with stakeholders.



NATIVE VEGETATION

BUSHFIRE MANAGEMENT

In Victoria, a permit is required to remove, destroy or lop native vegetation. The removal of native vegetation is primarily regulated by the Victoria Planning Provisions. These regulations are known as the native vegetation permitted clearing regulations. The Permitted clearing of native vegetation – Biodiversity assessment guidelines (the Guidelines) are an incorporated document within all Victorian Planning Schemes and outline how impacts on Victoria’s biodiversity are assessed when an application to remove native vegetation is lodged.

The Guidelines are applied alongside other requirements of the planning scheme when the responsible authority considers an application for a permit to remove native vegetation. A permit to remove native vegetation does not replace any requirements under the Flora and Fauna Guarantee Act 1988 and the Commonwealth Environment Protection and Biodiversity Conservation Act 1999. If a permit to remove native vegetation is granted, an offset that makes an equivalent contribution to Victoria’s biodiversity will be required. Offset requirements are determined in accordance with the Guidelines.

The establishment of arrangements to assist the securing of offsets for development in alpine areas continues to be the subject of ongoing discussions between the DELWP and the resort management boards. Due to the highly localised occurrence of many native species in alpine resorts a range of options is being explored to enable species specific offsets to be secured. A review of the native vegetation permitted clearing regulations was announced earlier this year. MHRMB has participated in targeted consultations as part of the review.

MHRMB continues to maintain the Mt Hotham Community Bushfire Emergency Management, which was endorsed by the CFA on 28th May 2014. The endorsement of this plan gave practical effect to the modified standards of the Schedule to the Bushfire Management Overlay.

The modified standards apply where an application to construct a building or carry out works is accompanied by a letter from the CFA stating that, in its view, MHRMB has implemented satisfactory emergency management arrangements aimed at prioritising the protection of human life. The modified requirements then provide that construction of works must be one of the following:

1. BAL-40 construction in accordance with AS3959.

2. Determined by a fire safety engineer that the building will be capable of withstanding an equivalent level of predicted bushfire attack and levels of exposure. (The definition of fire safety engineer under the Building Regulations means a registered building practitioner in the category of engineer, class of fire safety engineer).

3. Determined using an alternative methodology to the satisfaction of the relevant fire authority.

Buildings must also be provided with defendable space to the satisfaction of the CFA.


BUILDING SERVICES

LEASINGThe Alpine Resorts Leasing Policy, including the standardised lease documentation, provides the framework for the leasing of Crown Land in alpine resorts. The policy takes into account probity, conflict of interest, public interest and competition requirements and is based on the principles of demonstrated public and economic benefit, transparent lease allocation and process, appropriate lease terms and conditions, consistent lease documentation and approval processes.

Since the adoption of the Alpine Resorts Leasing Policy in 2002, 35 new leases have been issued in the Alpine Standard Lease form with an average lease term of 26 years. This represents 40 per cent of the leased or occupied sites within the resort.

MHRMB has a legislative obligation under s212 of the Building Act 1994 to administer the provisions of the Act, the Building Regulations 2006 and the Building Code of Australia within its area of jurisdiction. During the last reporting period we continued the engagement of the services of Mr Phillip Davern to fulfil the role of Municipal Building Surveyor in order to carry out its responsibilities under the legislation.

The inspection program continued its focus on ensuring existing buildings achieve a satisfactory level of fire and life safety. Providing guidance on the administrative obligations imposed on owners and managers to maintain nominated essential safety measures within their building has also been a priority. During the inspection process the Fully Enclosed Covered Area (FECA) of all buildings was measured for rating purposes.

A total of 14 buildings were inspected with the majority of issues identified relating to minor deficiencies in exit signage, door furniture and smoke alarm/detector coverage.

Building Permits were issued for five premises:

• Gravbrot – fire system upgrade

• Blue Ribbon – escape stairs

• Wangaratta – minor internal works

• General Store – new apartments

• Hotham Central – new fit out of One Tree Sports.



PROPERTY SALESReal estate sales turnover has declined since the peak in 2005, which produced an annual sales volume of $18.3 million. In the eleven years since to 2015 sales volume has ranged from $3.8 million to $14 million per calendar year. The 2015 year-to-date total of $6.4 million compares to $3.8 million

for the same period last year.

Turnover in real estate sales for the last 18 years is shown graphically below.

The median price for property transactions for the previous ten years from 2005 to 2014 has

been in the $175,500 to $290,000 price bracket and the year to date median price of 2015 sales is $143,000, which represents an average unit price per square metre of $3,193. The number of sales for 2015 has made a recovery and is up compared to previous years.

HOTHAM SALES VOLUME 1998-2015

HOTHAM PROPERTY SALE NUMBERS

0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

1998

1999

20002001

20022003

20042005

20062007

20082009

20102011

20122013

20142015

0

50000

100000

150000

200000

250000

300000

0

10

20

30

40

50

60

70

80

1998

1999

20002001

20022003

20042005

20062007

20082009

20102011

20122013

20142015

MEDIAN NUMBER OF SALES


STATUTORY PLANNINGThe Alpine Resorts Planning Scheme sets out the policies and requirements for the use, development and protection of land at Mt Hotham. The Minister for Planning is both the planning authority and responsible authority for the scheme, which is administered on the Minister’s behalf by the DELWP. We have referral authority powers in relation to servicing and land stability and can also provide comments on planning applications more generally as the land manager.

There were five amendments to the Alpine Resorts Planning Scheme this year:

AMENDMENTS TO THE ALPINE RESORTS PLANNING SCHEME

AMENDMENT NUMBER DATE DESCRIPTION

VC124 2 Apr 15 Changes to the responsible authority for all new planning permit applications for use and development of land for the purpose of wind energy facilities to Minister for Planning.

VC119 30 Apr 15 Applies to all planning schemes to extend 2009 bushfire recovery planning permit timeframes for continued use buildings for temporary accommodation to 30 September 2018.

2009 bushfire replacement buildings to extend the timeframe for submitting a site plan to 30 September 2017

VC125 11 Jun 15 Amending wind energy facility to reference guidelines and updating the application requirements to address the electricity transmission or distribution system.

Amending land use terms to change the definition of wind energy facility to include the use of the transmission or distribution system of power lines to connect the wind energy facility to the electricity network.

VC128 8 Oct 15 Applies to all planning schemes and reference to the updated policy and planning guidelines for development of wind energy facilities in regards to renewable energy in Victoria.

VC101 29 Oct 15 Makes changes to the Victoria Planning Provisions (VPP) and all planning schemes. The amendment updates reference and incorporated documents, ensuring that up to date policy is reflected in the planning system and removing ambiguity about the status of some policies; ensures that the VPP and planning schemes are up to date and correct by removing expired provisions, clarifying the wording of other provisions and correcting errors and omissions; ensures the VPP and all planning schemes include the correct names of government departments where their titles have changed, and ensures that referral and notice requirements to bodies under sections 55 and 52(1)(c) of the Planning and Environment Act 1987 are accurate.



ENVIRONMENTAL HEALTH SERVICESMHRMB continues its contract with the Indigo Shire Council’s Environmental Health Officers to carry out regulatory duties under the Food Act 1984, Public Health and Wellbeing Act 2008, Public Health and Wellbeing Regulations 2009 and Tobacco Act 1987. This service requires full compliance and a high standard of public health within the resort with assessments and inspections undertaken on food premises, accommodation facilities, health premises, educational visits to ensure tobacco compliance and the investigation of received complaints. Their report is outlined below.

FOOD PREMISES

During the 2015 season 21 food premises were registered with MHRMB via Indigo Shire falling either into a Class 1, Class 2, Class 3 or Class 4 risk category.

MOUNT HOTHAM FOOD PREMISES

Category 1 1

Category 2 18

Category 3 0

Category 4 2

TOTAL 21

NON-REGISTERED FOOD PREMISES

Ten lodges were informed that they could require an additional food registration in future if they keep on providing food to their guests.

ROUTINE INSPECTIONS

All 21 registered food premises were inspected and five follow up inspections were conducted for the premises that did not comply. Additionally a mobile/temporary premises (Café Play), registered with another municipality was also inspected with the results to be entered on the statewide electronic Streatrader system for this type of food business.

Throughout the season the majority of food premises inspected were found to be satisfactory and we are of the opinion that the standard of food safety has improved during the last 12 months.

The issue of food catering for school groups was streamlined last year and all lodges and caterers complied with all food safety (program) requirements. Two premises were identified, (the General Store and Isobar) which require structural improvements. Renovations are already planned for these premises during the coming off-season.

COMPLAINTS

We did not receive a food related complaint during this season.

FOOD SAMPLING

No food sampling was conducted this year.

TOBACCO ACT COMPLIANCE

Tobacco education visits were provided to tobacco retailers, licensed premises and eating establishments. Two retailers were educated on sales to minors, signage and visibility of tobacco products. Both premises had to be re-inspected to address a signage non-compliance issue. Both premises addressed the non-compliance issue during the season.

PRESCRIBED ACCOMMODATION REGISTRATION

Accommodation facilities are required to be registered under the Public Health and Wellbeing Act 2008 as prescribed accommodation if payment is made for a person or persons to be accommodated. For the 2015 season there were a total of 52 accommodation facilities registered. There are still some inconsistencies with regards to the registration of members’ only lodges.

NON-REGISTERED PRESCRIBED ACCOMMODATION PREMISES

Two lodges, which may require a prescribed accommodation registration, were identified and inspected during the 2015 season. Both clubs have been officially informed that they require a registration if they continue to operate the way they are operating (i.e. accepting school groups). These lodges will be contacted prior to the 2016 season to verify if they require a prescribed accommodation registration.

INSPECTIONS

In total 54 accommodation facilities were inspected for overcrowding, maintenance and cleanliness of facilities, number of fixtures available and refuse collection and disposal.

Throughout the season the majority of accommodation facilities inspected were found to be satisfactory. The only premise that requires follow up is the one used for staff accommodation and was accommodating more staff than what was approved.

COMPLAINTS

One complaint was received during this season; an overcrowding issue was reported in a ski lodge. It was not possible to inspect the lodge after the complaint was received, but we managed to discuss the complaint with the manager and consequently a letter was issued. This issue will be followed up when the lodge applies for the 2016 registration.

GASTRO OUTBREAKS

No outbreaks were reported this year.

HEALTH PREMISES

The Public Health and Wellbeing Regulations 2009 control potential infectious diseases that may occur in the above premises. These regulations set out the requirements that proprietors of premises registered under the Public Health and Wellbeing Act 2008 must observe. All premises are required to be maintained in a clean hygienic manner.

Two premises were registered in 2015. Both premises were visited and were found to comply. No complaints were received during this season.



VISITOR SERVICES

RESORT ENTRY AND PARKING

MARKETING AND CUSTOMER SERVICES

THE GREAT ALPINE ROAD

MHRMB’s staff again played an active role in the assistance of managing the Great Alpine Road during the winter season. Staff members were stationed in chain fitting bays during peak traffic times to welcome guests, provide visitor information and ensure visitor vehicles were ready to safely begin their journey up the mountain.

MHRMB additionally contracted the services of a Road Safety Patrol Officer, to ensure that visitors

requiring assistance with breakdowns, accidents and snow chain issues were able to continue on their journey. The Officer also coordinated vehicle recovery in a timely manner with guests being transported to their destination. This proactive approach ensured visitors were prepared and well informed for entering and exiting the resort whilst successfully preventing road closures along the Great Alpine Road.

AFTER HOURS GUEST SERVICES HUT

MHRMB operated a new after hours visitor information service from the hut located in the Corral Day car park for winter 2015. It operated from 4pm until late (midnight on busy nights) allowing visitors to be directed to a central point for all of their enquiries. The hut enjoyed good patronage in its first year providing a concierge type service, directing arriving visitors to their accommodation and answering any enquiries they had.

‘Alpine Easy Access’ is the resort’s online resort entry payment system, and is in its fifth year of deployment. With the customisation of the system being the focus of the previous years, the focus for the 2015 winter season had been on revising the village car parking. Continuing the complete overhaul of car parking signage and communication implemented in 2014, we focused on reworking some of the existing parking zones

for greater customer utilisation. The creation of additional disabled spaces closer to ski field and additional bus zones saw strong usage throughout the ski season.

Major car park upgrades had been carried out over the summer period with Whitey’s car park gaining an additional 80 spaces. Further bitumen sealing of roadside parking and installation of additional street lighting were also completed prior to winter.

Record vehicle numbers were encountered on multiple weekends during the season in the car parks for 2015. The resort has approximately 1500 designated car spaces within the village transport area. Numbers of in excess of 1850 vehicles had been recorded with additional areas being cleared of snow and managed as car parks on these peak weekends.

MHRMB marketing team enjoyed a busy year with many new marketing incentives undertaken throughout the year. The Board formed a Marketing Sub Committee to steer the strategic direction of marketing within MHRMB. The first undertaking of the committee was to commission an extensive audit of the marketing activities undertaken by the mountain as a whole. This independent report identified areas of improvement and opportunities to be undertaken by MHRMB in its strategic marketing.

Tourism Victoria and the Alpine Resorts Coordinating Council (ARCC) have recently completed a Victorian Snow Resort Segmentation Study to understand the mindset and decision-making behaviours and perceptions of Victoria as a snow destination in the domestic market.

The project was undertaken by Sweeney E&Y Research and included 2,000 online interviews of 18-69 year olds located in Victoria, New South Wales, Queensland and South Australia, and six focus groups conducted in Melbourne and Sydney.

The research revealed three core segments (recent visitors, lapsed and new visitors) and three segments that represent an opportunity to grow visitation to Victorian snow resorts.

We have been working closely with Tourism North East (TNE) to run information sessions and workshops based on this market research. TNE facilitated two Destination Action Plan workshops for winter and summer product development with input from many stakeholders.



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COMMUNICATIONS AND PUBLICATIONS

EVENTS

MHRMB operates the website www.mthotham.com.au in collaboration with the Mount Hotham Skiing Company and other mountain stakeholders. The website had an increase of 90,000 visits from the previous year with extensive upgrading of pages based on a newly created style guide for 2015.

Mt Hotham was the first Australian ski resort to install a high definition 360 degree Roundshot web camera. The camera uploads images to the website at varying intervals throughout the day giving a complete overview of the resort from the Hull Skier Bridge on the Summit. The camera was very popular, receiving a total of 144,000 visits since we installed it on the site in June.

Statistics for www.mthotham.com.au

Annual Visits 1,169,633

Highest Visitation Day 23,723 on 12th July

We undertook a number of new initiatives for 2015. These include:

• Multicultural Visitor Guides in Hindi and Simplified Chinese,

• Disabled Winter Visitor Guides,

• Multi-Use Shared Trail Guides,

• Coming to Hotham Visitor Guides,

• Quarterly Stakeholder News Letters,

• Tracks and Trail Summer Guides,

• A weekly “What’s On” Flyer,

• Ski Patrol Talks - provided throughout the winter season to schools and organised groups,

• Environmental Talks - provided throughout the year to schools and organised groups,

• Guided Bushwalks - with Andrew Swift’s wealth of knowledge he recites tales of the gold rush era, and

• “Awesome Conditions Apply” billboards displayed on two major freeways in Melbourne for the month of September. A joint initiative in collaboration with Mt Hotham Skiing Company.

BEYOND HOTHAM

An eight-day program was delivered for 2015 with a revised format consisting of two days of daytrips and a six-day camping tour. Participation numbers were down on previous years due to limited tours being on offer. Major capital works programs being carried out saw limited staffing resources available to act as tour guides. A static delivery model is being adopted for future participants allowing four-wheel driving enthusiasts to partake in self-guided tours of the region with monthly Tag Along Tours being offered.

COOL SUMMER FESTIVAL

The General Store entertained the crowds far and wide with an event that encapsulates the mountain’s atmosphere. The festival ran for three days over two stages showcasing the best in Australian music, both local and interstate. The sun shone the entire weekend to the comfort of close to 600 patrons and campers. Many local accommodation providers were involved as well as a camping ground located at

Whiskey Flat car park. We congratulate The General Store for hosting a fantastic event and look forward to supporting it into the future.

ADVENTURE KIDS FESTIVAL

In its first year at Mt Hotham, adventure-seeking kids and their families converged on the Big D Kids Snowzone over the Australia Day long weekend (24-26 January) for a nature-based active getaway. With the aim of promoting outdoor activity and adventure play among kids aged 4 to 12, the festival proved that the iPad generation still enjoys the best of the outdoors.

AUDI SPONSORSHIP

A touch of red was added to Hotham Central through our new sponsorship with Audi. The sponsorship saw the renaming of the Village Quad Chair to Quattro Chair and part of the car park allocated to Audi vehicles. Audi also introduce the new Q7 at Mt Hotham with snow and mud drive experiences.

HOTHAM AUTO CORSA

MHRMB is deeply disappointed that event organisers had to postpone the anticipated Hotham Auto Corsa Alpine Tarmac Rally, scheduled to take place on 14th November 2015. The 241-corner tarmac trek has an elevation gain of around 1300 metres finishing at the summit of Mount Hotham, totalling 171 competitive kilometres.

Recognising the needs of the regulatory authorities and local communities, event organisers Auto Corsa Group expended considerable time, effort and resources planning for the event, particularly towards developing a rigorous safety process to meet the unique requirements of the event. Despite the efforts of VicRoads, the Australian Auto Sport Alliance (AASA) and Auto Corsa Group, the event’s insurance and sanctioning approval was unable to be in place in time. We look forward to hosting the event in 2016.


WALKING TRAILS

REGIONAL MARKETING

Many organisations with an association to Mt Hotham have contributed to the resort. We appreciate the support of Audi, Smith, and K2.

With a growing range of uses, in winter and summer, Mt Hotham’s track and trail network is undergoing significant upgrades to cater for a broader range of activities across both the green and white seasons. A number of improvements in maintenance and upgrades have been undertaken in this area.

TRAIL MARKETING

The free, guided bushwalking program has continued for the fourth year in a row. Tours have been conducted over long weekends, offering attendees further historical insight into Mt Hotham’s iconic tracks and trails. Continuing under the banner of “Gold, Graves and Perilous Journeys”, a diverse range of participants have gleamed an insight into the remarkable history of the region.

Track Notes and Track and Trails Guides continue to be published and updated with new content and are made available on the mountain and at regional visitor information centres.

TNE’s promotion of the resort for The 7 Peaks Trail Running has seen a number of the tracks upgraded for use by trail runners. Three routes (green, blue and black) have been chosen, using the existing track and trail network, with 7 Peaks directional signage placed along the routes.

Sections of the track and trail network have also been upgraded to become more suitable to trail running, including the Cobungra Ditch and The Big Spur trails.

The Dinner Plain Mile High Trail running event saw over 90 competitors from across Victoria utilising some of the resorts’ tracks and trails including the Brabralung trail and The Cobungra Ditch.

BRABRALUNG TRAIL

The 2014/15 construction season saw the introduction of interpretive signage along the Brabralung Trail (former Hotham-Dinner Plain Trail), as part of an Aboriginal signage plan that was undertaken with the Traditional Owners and registered Aboriginal parties to provide content and design for the trail.

The Brabralung Trail was officially opened with a traditional smoking ceremony on the 25th March at the Dinner Plain trailhead. The Gunaikurnai Land and Waters Aboriginal Corporation (GLaWAC) approved the name Brabralung Trail in December 2014. Brabralung is the name of the Gunaikurnai Clan for this region of Gippsland, translated as Male, Berry Worcat (female), meaning ‘the people’.

The 12 km surfaced trail provides cycling, walking and trail running in the summer months and cross-country skiing during the winter. The Brabralung

trail now crowns the suite of heritage based iconic tracks and trails that Mount Hotham has completed in recent years. The project received funding from Alpine Shire and assistance from Parks Victoria and GLaWAC.

SHARED TRAIL NETWORK

This season all old cross-country trail signs on The Big Spur, Wire plain and Whiskey Flat areas were replaced with the cypress post track markers, (as introduced to the summer trail network in recent years). These markers have included updated directional, advisory and locality information; also ‘Share the Snow’ has been placed on signage at key locations for the multi-use of the trail network during the heavy visitor use. The role-out of the Shared Track and Trails Signage Plan will form the basis of a consistent winter and summer standard across all shared tracks and trails network.

Improvements have also begun at trailhead locations with the introduction of sculptural picnic tables to enhance the environment. Fabricated by Richard Walker of High Country Forge, Smoko, they are of similar design style to the interpretive signage along the Cobungra Ditch.

In association with the other Victorian alpine resorts, we have contributed to promotion of the alpine region and the snow industry through ARCC, Snow Victoria and TNE.

STRATEGIC PARTNERS


In order to achieve the functions outlined within the Alpine Resorts (Management) Act 1997 as well as environmental regulatory compliance; we sought to implement a revised Environmental Management System (EMS) in late 2014.

A Statement of the Environment (SoE) Report was developed outlining existing regulatory frameworks, using readily available operational data and existing knowledge of environmental values within MHRMB.

Based on information contained within the SoE, we identified six key issues:

1. Landfill management,

2. Diesel fuel consumption,

3. Climate change,

4. Greenhouse gas emissions,

5. Threatened species management, and

6. Cultural heritage values.

An Environmental Management Plan (Plan) was developed and endorsed by the Board. The Plan lists prescribed targets and actions until 2018. We will report annually against the Plan and review the SoE and Plan targets and actions in 2018.

SUSTAINABILITY MHRMB remains committed to investigating opportunities to reduce the impact of activities and operations on the sensitive alpine environment. Emphasis is placed on wastewater discharge, water consumption, waste minimization and reducing electricity and fuel consumption.

Wastewater discharge is monitored for quality and quantity and we seek to improve Class A water reclamation each year. Water consumption is real time monitored within the SCADA system. We

are working to improve waste recycling rates for cardboard, co-mingled and organic material to minimise the waste sent to landfill at Cobungra.

During the 2014-15 reporting period MHRMB consumed 1,130,922 kWh of electricity, 14,529 litres unleaded fuel, 170,727 litres diesel fuel and 3,814 tonnes of LPG. This resulted in 2,262 tonnes of greenhouse gas emissions being emitted by MHRMB activities. A comparison for consumption figures for recent years is shown below.

Year Electricity (kWh) Diesel fuel (litres) Unleaded fuel (litres) Greenhouse Gas Emissions (tonnes) LPGas (GJ)

2014-15 1,130,922 170,727 14,529 2,262 3,814

2013-14 957,778 165,268 21,174 1,993 3,153

2012-13 941,476 143,448 16,791 1,910 3,255



THREATENED SPECIES AND BIODIVERSITY CONSERVATION The Victorian Alps is of special ecological value due to the restricted geographical occurrence of alpine areas in Australia and the high biodiversity values found in these areas. Alpine ecosystems contain a significant number of threatened and endemic species protected by the Flora and Fauna Guarantee Act 1988 and Commonwealth Environment Protection and Biodiversity Conservation Act 1999. The resort and village area contain known habitat for a number of listed endangered species including the Mountain Pygmy-possum, Alpine Tree Frog and Alpine She-Oak Skink. We work to preserve threatened species and biodiversity through funding annual monitoring programs and environmental works

programs including ongoing invasive weed and predator control programs.

MHRMB continues to support ongoing scientific research to annually monitor the Mountain Pygmy-possum (Burramys parvus) population. Conducted by wildlife biologist Dean Heinze three sites are regularly monitored within the resort, Mt Little Higginbotham and the east of Mt Higginbotham, both above and below the Great Alpine Road. The west Mt Higginbotham site in the adjacent Alpine National Park is also monitored. In 2010, the east Mt Higginbotham site recorded the lowest population numbers in nearly 30 years of monitoring. While numbers have improved slightly, the population estimates in November 2014 were

still below average. The Board are working in collaboration with DELWP to implement actions to reverse this trend.

During December 2014, we commissioned a snapshot resort wide targeted survey to assess the status of the Alpine Tree Frog population within the resort. The survey used the same sites targeted in a 2008 survey effort and added several new locations. A total of 22 sites of artificial and natural water bodies were actively searched for adults and tadpoles, adults were identified at 13 of these sites. Tadpoles occurred at four sites, three with adults and one site without the presence of an adult.

ENVIRONMENTAL PROGRAMS

ENVIRONMENTAL EDUCATION

Ongoing programs to improve the condition of the alpine environment include revegetation of works areas, general weed control within the village areas and targeted control of invasive species across the resort.

Monitoring of predator species using remote sensing cameras informs co-ordination of control works. We continue to support the 1080-baiting program in collaboration with Parks Victoria both within the resort and the surrounding Alpine National Park. During the reporting period 13

cats and 3 foxes were removed using traps and shooting techniques.

Environmental staff undertook weed control and revegetation works at the batter created during the extension of Whitey’s car park. More than 5,400 grasses, forbs and shrubs were initially planted, watered in and mulched with snow gum chips sourced from the Hotham area. A further 864 plants were put into this site in April and prior to snowfalls the site was thriving and putting on good growth. Additional planting of 927 grasses,

forbs and shrubs was conducted at various sites within Davenport Village to help delineate parking areas. The Cobungra Spoil site underwent further supplementary planting of 360 shrubs. We carried out ongoing weed control during summer with oxeye daisy, blackberry, English broom, apples and willows targeted. Staff members GPS the treated sites continually to build a database of control works.

Environmental staff members value the opportunity to share knowledge and experiences with interested school groups and the wider community. In March 2015 staff hosted a community service morning with the students from The Alpine School to collect Pimelea ligustrina (tall rice flower) seed. A favourite in the diet of the Mountain Pygmy-possum, the seed is sent to Healesville Sanctuary for possum members

of the captive breeding program. Tasmania zerophilia berries, or mountain pepperbush was also collected and sent to the Victorian Alps Nursery for propagation and eventual replanting in our revegetation sites.

“Fairy Bread with the Garbos” was held again during winter. Members of the community with a focus on kids are annually invited to visit solid

waste staff at the recycle shed and a peek into the organics storage skips to see what really happens to collected recycle and food waste. In addition, staff members make themselves available to interested groups visiting Mount Hotham. A number of talks were given to a range of groups, from primary school to TAFE students.



VICTORIAN ALPS NURSERYThe Victorian Alps Nursery propagates a large variety of alpine and sub-alpine species for rehabilitation and restoration projects at all major Victorian ski resorts, Mt Buffalo, Kosciuszko National Park and NSW National Parks. Specialising in the production and propagation of alpine flora makes the nursery unique in Australia. Staff at the nursery can provide assistance to clients to obtain information on species and advise on rehabilitation projects.

Highlights for the year include propagation and planting of 4000, trees, shrubs and grasses for beautification/revegetation works at Happy Valley Creek at Jubilee Park in Myrtleford funded by the Alpine Shire; provision of plants to establish native alpine gardens at Tawonga Primary, Porepunkah Primary and Myrtleford High School funded by Community For Nature grants; provision of plants

to Landcare/DELWP for an ongoing project at Reform Hill, Myrtleford and other projects around Bright; provision of plants to Tronoh Dredge Committee for community works at Harrietville and the MHRMB for Whitey’s car park revegetation works at Mount Hotham; and provision of plants and advise to the Australian National University and Tawonga Zoo for studies and a breeding program related to the Mountain Katydid (grasshopper).

In September 2015, a Native Seed Forum was held at the Ovens DELWP Conference Centre focusing on seed collection and the importance of having a seed bank. Guest speaker Owen Bassett, a forest scientist, discussed his studies around Alpine Ash direct seeding projects post recent fires and toured the nursery informing staff the Victorian Alps Nursery holds the only seed bank

for the Ovens, Kiewa and Alpine areas. The forum was attended by people from Wangaratta and Yackandandah through to Harrietville and was a great promotional vehicle to inform the local community of the work the nursery does.

As a result of the growing profile of the Victorian Alps Nursery within the community there has been increasing enquires and sales from local customers purchasing plants for garden, farm and river restoration projects. In addition nursery staff attended two local markets for further exposure and sales of excess stock. With a lack of store front for commercial operations, staff will look to enhance the website to improve opportunities of online sales by pre-arranged collection or postal options within the coming year.

OUR STRATEGIC PARTNERSHIPSThe Board has been creating partnerships with on mountain stakeholders along with surrounding communities to build awareness of all activities and open communication between us all.

The Consultative Forum has created an opportunity for major stakeholders, Dinner Plain and Alpine Shire to communicate and share knowledge. The Forum meets three times a year to keep everyone up to date as to what is happening.

Discussions and agenda items:

• Master Plan update

• Hotham Corsa event progress

• Hotham Central pedestrian safety project

• Motor Neuron Disease Fundraiser

• Tracks and Trails for Mt Hotham, Dinner Plain, Harrietville and Falls Creek

• Destination Action Plan meetings with Tourism North East for both summer and winter

MHRMB has enhanced communications with stakeholders to create an open platform to help build visitation to Mt Hotham for both winter and green season.

During the year, Audi Australia with the Mt Hotham Skiing Company and MHRMB formed a partnership in regard to advertising, signage and promotion within the resort and on the resort digital platforms.

This partnership extended to an Audi Snow Drive Experience to coincide with the launch of the new Audi Q7 – Quattro. This entailed daily flights, demonstration driving, lunch, and snow activities for up to 40 guests of Audi Australia.



INFORMATION AND COMMUNICATION SYSTEMSEffective information systems are vital in operating a modern and efficient resort. Our information technology function includes:

• Communication systems including voice, data and internet,

• Electronic data storage and backup,

• Information system software, hardware maintenance and upgrades,

• General system controls,

• Data security, and

• Mobile systems management.

SYSTEM DOWNTIME

All systems operated with sufficient back-ups, maintenance and service routines to enable a 100 per cent operating capability throughout the year.

EMERGENCY MANAGEMENTMHRMB’s Municipal Emergency Management Plan (MEMP), as required under the Emergency Management Act 1986, continues to meet the needs of the Mt Hotham community. The resort Municipal Emergency Management Committee (Committee) conducts formal meetings twice a year and assists with the planning and coordination of emergency services for response and recovery within the resort. The Committee comprises MHRMB staff, Victoria Police, Victorian State Emergency Service (SES), CFA, DHHS, resort stakeholders and other agencies as required. The Committee has a Memorandum of Understanding with the Alpine Shire (Dinner Plain) and Mt Hotham Airport for the sharing of resources for during an emergency.

Committee members reviewed and reprioritised major emergency risks in line with the new Community Emergency Risk Assessment Guidelines facilitated by the SES. The application of the MEMP was also tested during 2014/2015. The Mount Hotham Airport conducted a field test

of the municipal response to an aircraft crash landing, in which MHRMB staff participated.

MUNICIPAL FIRE MANAGEMENT PLAN

Mt Hotham Municipal Fire Management Planning Committee (MFMPC) was formally established in 2011. It is a subcommittee of the MEMP its terms of reference are based on Part 6A of the Emergency Management Manual of Victoria. Members are: MHRMB, CFA, DELWP and Parks Victoria.

The Resort’s Municipal Fire Management Plan (MFMP) was developed through the risk-based planning process described by ISO 3100: 2009 Risk Management – Principles and Guidelines. As a subset of the MFMP, the Community Bushfire Emergency Management Plan (BEMP) draws on the risk assessment and risk analysis process already undertaken through the broader fire management planning process.



COMMUNITY AREASACCESS AND DIVERSITY INDIGENOUS AFFAIRS

MHRMB is committed to working closely with the local Indigenous community in developing partnerships to achieve Aboriginal aspirations for land, culture, heritage, family and community. We liaise with various leaders and councils in both capital works and planning projects within the resort. There is also an opportunity to explore the development of Indigenous cultural tourism through interpretation of walks and sites. We look forward to working closely with the Mt Hotham Indigenous community on our future projects.

CULTURAL DIVERSITY

MHRMB has maintained the signage systems, which use graphic symbols to advise resort users of important features about resort use. This has been particularly appropriate in alerting non-English speaking visitors to the existence of safety hazards and to any limitations on the use of particular areas within the resort and is in

line with the government’s multicultural policy. Visitor welfare has been further enhanced with the introduction of Hindi and Mandarin versions of the Mount Hotham Village Guide.

DISABLED VISITORS

In collaboration with Disabled Wintersport Australia (DWA) the resort has increased visitor access with the production of a village guide specifically for disabled users, the increase of disabled parking facilities, and the purchase of a modern wheelchair-friendly VW transporter for on-mountain use. These initiatives resulted in a fivefold increase in visitation by disabled visitors during the 2015 season.

WOMEN

Our executive management team has a gender balance of 50 per cent female and 50 per cent male. We are committed to providing equal opportunity advancement for all employees and have adopted a recruitment structure on

a merit-based selection process. We are also committed to facilitate balance between work and family responsibilities for all employees. This is consistent with the government’s Office of Women’s Policy.

YOUTH

MHRMB employs a work experience youth as the opportunity arises and actively encourages participation by the Alpine Leadership School. We also provide regular environmental and safety student talks throughout the winter season. We seek trade-based apprentices in line with the government’s vision for young people.

RECORDS MANAGEMENT

MHRMB is committed to cataloguing and filing records according to the Public Records Act 1973.

RISK MANAGEMENTRISK MANAGEMENT POLICY

Our aim is to ensure visitors and staff members have a safe and enjoyable experience. We do this by providing operational services including fleet management and maintenance, transport, car parking and traffic control, snow clearing, cross country and ski field safety, public amenities, visitor safety, resort entry, snow play, insurance (public liability) and plant/vehicle workshops.

RISK MANAGEMENT REVIEW

The Audit and Risk Subcommittee has initiated a full review of the Risk Management Framework during the year and as a result management are taking actions to ensure that the practices of risk identification and management are consistent with Australian/New Zealand Standard ISO 31000-2009.

Outcomes of the review highlighted the safety of visitors in the hazardous alpine environment along with other risk areas in regard to water supply, treatment of waste products, bush fires and management information systems. The risk management plan is also being incorporated into the annual financial reporting process to ensure adequate resources are allocated and prioritised for the secure management of the resort.

The Audit and Risk Subcommittee has endorsed the risk management program for the Chair’s attestation in this annual report of operations.

I, Deborah Spring certify that Mt Hotham Resort Management Board (MHRMB) has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard AS/NZS ISO 31000-2009 and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Audit

and Risk Subcommittee verifies this assurance and that the risk profile of the MHRMB has been critically reviewed within the last 12 months.

Deborah Spring | Chairperson Mount Hotham Resort Management Board 31st October 2015

I, Jon Hutchins certify that the Mt Hotham Resort Management Board has complied with Ministerial Direction 4.5.5.1—Insurance.

Jon Hutchins | Chief Executive Officer Mount Hotham Resort Management Board 31st October 2015


STATUTORY REPORTING CORPORATE PLAN

Section 53 of the Alpine Resorts (Management) Act 1997 requires MHRMB to prepare an annual Corporate Plan. The Minister must approve the Corporate Plan each year.

The Corporate Plan must include:

1. A statement of corporate intent in accordance with Section 54 of the Act;

2. A Business Plan containing the information required by the Minister;

3. Estimates of the receipts and expenditure of the Board for the period of the plan.

The Business Plan is also developed on an annual basis to specify objectives and to measure the performance of the organisation against the objectives identified within the plan. Our Corporate Plan is structured on a set of core responsibilities:

• Our Customer and Community Focus;

• Our Year Round Resort;

• Our Services;

• Our Developer Services;

• Our Environment of the Ridge;

• Our Strategic Partnerships; and

• Our Corporate Governance.

OBLIGATIONS OF THE BOARD

As a Committee of Management under the Crown Lands (Reserves) Act 1978, we have obligations to manage the land in accordance with the purpose for which the land has been reserved and may exercise the powers conferred to Committees of Management under that Act.

MHRMB’s obligations under the Alpine Resorts (Management) Act 1997 are to discharge its functions effectively and efficiently.

Additionally; - section 34(7) imparts to the Board the following attributes and authorities:

a. Is a body corporate with perpetual succession; and

b. Has a common seal; and

c. May sue and be sued in its corporate name; and

d. May acquire hold and dispose of real and personal property; and

e. May do and suffer all acts and things that a body corporate may by law do or suffer.

S.35 of the Alpine Resorts (Management) Act 1997: In carrying out its functions and powers, each Board acts on behalf of the Crown.

SECTION 38 OF THE ALPINE RESORTS (MANAGEMENT) ACT 1997 SPECIFIES THE FUNCTIONS OF THE BOARD:

• To plan for the development, promotion, management and use, of each such alpine resort in accordance with the object of the Act,

• To develop and promote or facilitate the development or promotion by others of the use of each such alpine resort in accordance with the object of the Act,

• To manage each such alpine resort in accordance with the object of the Act;

• To contribute to the development of the Alpine Resorts Strategic Plan and other strategic planning for alpine resorts as a whole;

• To undertake research into alpine resort issues;

• To contribute to and support the operation of the Council;

• To prepare and implement a Strategic Management Plan for the resort;

• To expend or apply revenue of the Board in accordance with a direction of the Minister under section 36(1A);

• To manage the Crown land in Mt Hotham by acting as a Committee of Management under the Crown Land (Reserves) Act 1978;

• To contribute, together with Tourism Victoria, established under the Tourism Victoria Act 1992, and the Council, to the overall promotion of alpine resorts;

• To develop a tourism and marketing strategy and to promote the resort;

• To provide services in the nature of: garbage disposal, water supply, gas, drainage, sewerage, electricity, roads, fire protection, snowmaking, transport for the resort and to charge user pays contributions for the provision of those services;

• To collect fees prescribed by the regulations for the resort;

• To attract investment for the improvement of the resort; and

• To carry out any other function conferred on the Board by this or any other Act.

FAIR TRADING ACT

From 1st June 2004 new regulations under the Fair Trading Act 1999 came into effect.

The Fair Trading (Recreational Services) Regulations 2004 make it possible for suppliers of recreational services to obtain consent from customers to waive their rights under the Act, including their right to take legal action against the supplier if they die or are injured while using the services.

In compliance with the Fair Trading (Recreational Services) Regulations 2004 MHRMB has installed warning signs at both resort entry gates to alert visitors to the fact that they are being asked to agree to waive their rights under the Fair Trading Act 1999.

PRIVACY ACT 1988 (COMMONWEALTH)

The Federal Government introduced the Privacy (Private Sector) Amendment Act 2000, which amends the Privacy Act 1988 (Commonwealth). The main aim of this legislation, which came into effect on 21st December 2001, is to give more control over the way private organisations collect, use, disclose and store information.

MHRMB prides itself in handling personal information with extreme care and diligence. In order to comply with the Privacy (Private Sector) Amendment Act, we have adopted the MHRMB Privacy Policy.

NATIONAL COMPETITION POLICY

Competitive neutrality seeks to enable fair competition between government and private sector businesses. Any advantages or disadvantages that government businesses may experience, simply as a result of government ownership, should be neutralised. MHRMB continues to implement and apply this principle in its business undertakings.



We are one of five independent alpine resort management boards within Victoria. We have established our own pricing regime within the ceiling prescribed by the Alpine Resort (Management) Regulations 2009. MHRMB, as the independent manager of the resort’s assets, purchases services and goods in line with Government Board Purchasing guidelines. We comply with the Government’s National Competition Policy.

VICTORIAN INDUSTRY PARTICIPATION POLICY (VIPP)

The VIPP was established in 2001 to actively encourage greater local industry participation in major Victorian Government procurement contracts, projects and infrastructure, investment attraction and community facilities grants.

The Victorian Industry Participation Policy Act 2003 (VIPP Act) was introduced in October 2003. Under the Act, MHRMB implements policies to tenders over $1 million as required for Regional Victoria. The Minister for Manufacturing Exports and Trade is responsible for introducing the strengthened VIPP, which took effect from 1st July 2009. There was one contract that commenced in 2013/14 that met the regional threshold of over $1 million. A VIPP Plan was not required due to nil to limited contestability. The local content is 90 per cent.

FREEDOM OF INFORMATION

MHRMB is considered to be a ‘Government Agency’ under the terms of the Freedom of Information Act 1982. Accordingly, it is required to comply with the procedures that have been prescribed under which members of the public may gain access to information held by agencies.

A decision to release information is made by either the principal officer or an authorised officer. An application fee of $26.50 applies at the time of publication. MHRMB has determined that the Authorised Officer for the resort is the General Manager.

Freedom of Information Officer Ms Jenny Molloy PO Box 188, Bright 3741 Ph: 03 5759 3550 Fax: 03 5759 3693 Email: [email protected]

RELEVANT INFORMATION

The following is retained by the accountable officer and is available to the relevant Minister, Members of Parliament and the public on request:

FRD 22E Statement of Availability of other information:

• Statement declaring pecuniary interests completed by all relevant officers;

• Details of publications produced and where available;

• Details of changes in prices, fees, charges, rates and levies;

• Details of any major external reviews;

• Details of major research and development activities;

• Details of overseas visits;

• Details of major promotional, public relations and marketing activities;

• Details of assessments and measures undertaken to improve occupational health and safety of employees;

• General statement on industrial relations and details of time lost through industrial accidents and disputes; and

• Major committees sponsored, purposes of committees and achievements.

HOW TO MAKE A ‘PROTECTED DISCLOSURE’

MHRMB is committed to the aims and objectives of the Act and values integrity and accountability in its administrative and management practices. We fully support the processes of disclosure that reveal corrupt conduct, mismanagement of public resources or conduct involving a substantial risk to public health and safety, or the environment.

You can make a protected disclosure about MHRMB, its Board members, officers or employees by contacting the MHRMB Protected Disclosure Coordinator, DELWP or IBAC on the contact details provided below.

Protected disclosure contacts Mt Hotham Resort Management Board (MHRMB) Jenny Molloy - General Manager PO Box 188, Bright 3741 Ph: 03 5759 3550 Fax: 03 5759 3693 Email: [email protected]

Independent Broad-Based Anti-Corruption Commission (IBAC) Victoria Level 1, North Tower, 459 Collins Street, Melbourne Victoria 3001 GPO Box 24234, Melbourne Victoria 3000 www.ibac.vic.gov.au Ph: 1300 735 135 Email: see the website above for the secure email disclosure process, which also provides for anonymous disclosures.

DISCLOSURES UNDER THE PROTECTED DISCLOSURE ACT 2012

In 2014-15 no disclosures were received.

DATAVIC ACCESS POLICY

In August 2012 the Victorian Government released the DataVic Access Policy, which enables the sharing of government data at no, or minimal, cost to users. Government data from all agencies will be progressively supplied in a machine-readable format that will minimise access costs and maximise use and reuse.


INDEPENDENT AUDITOR’S REPORT


INDEPENDENT AUDITOR’S REPORT

text


FINANCIALS

Mt Hotham Alpine Resort Management Board

COMPREHENSIVE OPERATING STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2015

Note 2015 2014CONTINUING OPERATIONS $ $

INCOME FROM TRANSACTIONSGovernment Contributions 2 74,239 59,951

Site rental 1,307,329 1,291,433

Service charges 4,343,392 4,193,066

Transport Contribution 133,154 130,002

Gas trading operations 1,107,706 1,386,981

Gate entry 2,731,048 2,665,100

Horticultural supplies 111,999 106,675

Interest 185,435 163,051

Other Revenue 2 723,960 845,058

Total income from transactions 10,718,262 10,841,317

EXPENSES FROM TRANSACTIONSInfrastructure services 2,259,531 2,533,283

Village operations 1,727,767 1,601,947

Visitor services 974,595 830,658

Administration 3,199,954 3,024,530

Marketing 484,826 327,443

Board costs 146,907 132,317

Depreciation 1,372,785 1,233,267

Interest Expense 104,733 110,127

Total expenses from transactions 3 10,271,099 9,793,572

Net result from transactions (net operating balance) 447,164 1,047,745

OTHER ECONOMIC FLOWS INCLUDED IN NET RESULTNet gain/(loss) on non financial assets 68,764 36,332

Net gain/(loss) arising from revaluation of long service liability (i) (19,382) (51,185)

Total other economic flows included in net result 49,382 (14,853)

Net result from continuing operations 496,546 1,032,892

Other economic flows - other comprehensive income - -

Total other economic flows - other comprehensive income 496,546 1,032,892

COMPREHENSIVE RESULT 496,546 1,032,892

(i) Revaluation gain/(loss)due to changes in bond rates.

The above Comprehensive Operating Statement should be read in conjunction with the notes to the financial statements.


FINANCIALS


BALANCE SHEET AS AT 31 OCTOBER 2015

Note 2015 2014ASSETS $ $

FINANCIAL ASSETSCash and Cash Equivalents 4,19 2,038,019 6,356,883

Receivables 5,19 697,913 902,181

Other Financial Assets 6,19 4,300,000 3,300,000

Total Financial Assets 7,035,931 10,559,064

NON FINANCIAL ASSETSInventories 7 95,241 155,074

Prepayments (Current) 238,993 245,821

Property, Plant & Equipment 8 81,295,639 77,483,040

Total Non Financial Assets 81,629,872 77,883,935

TOTAL ASSETS 88,665,803 88,442,999

LIABILITIESPayables 9,19 922,593 1,057,917

Borrowings 10,19 1,544,880 1,629,551

Provisions 11 820,525 874,270

TOTAL LIABILITIES 3,287,997 3,561,738

NET ASSETS 85,377,806 84,881,261

EQUITYAccumulated surplus/(deficit) 8,745,284 8,248,739

Physical Asset Revaluation Surplus 36,785,194 36,785,194

Contributions by Owner 39,847,328 39,847,328

NET WORTH 85,377,806 84,881,261

Capital and forward Commitments 13

Contingent assets and contingent liabilities 14

The above Balance Sheet should be read in conjunction with the notes to the financial statements.



STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2015

Physical Asset Accumulated Contributions Total

Revaluation Surplus Surplus by Owner

Balance at 1 November 2013 36,785,194 7,215,847 32,866,328 76,867,369

Contributions or Transfers by Owners 6,981,000 6,981,000

Net result for the year - 1,032,892 1,032,892

Balance at 31 October 2014 36,785,194 8,248,739 39,847,328 84,881,261

Contributions or Transfers by Owners - - -

Net result for the year - 496,546 - 496,546

Balance at 31 October 2015 36,785,194 8,745,284 39,847,328 85,377,806

The above Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2015

Note 2015 2014 $ $CASH FLOWS FROM OPERATING ACTIVITIESReceipts from Government 74,239 35,020

Receipts from customers and other entities 10,662,857 10,499,534

Payments to suppliers and employees (8,970,172) (8,111,269)

Net GST received/(payable) 34,802 (81,092)

Interest received 185,435 161,356

Interest paid (104,733) (111,088)

Net Cash provided by Operating Activities 12 1,882,428 2,392,460

CASH FLOWS FROM INVESTING ACTIVITIESCash invested in Term Deposits (1,000,000) (2,500,000)

Payments for non-financial assets (5,191,637) (3,343,452)

Proceeds from sale of non-financial assets 75,017 36,332

Net Cash used in Investing Activities (6,116,621) (5,807,120)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from Capital contributions - 6,981,000

Repayment of Borrowings from Treasury Corporation Victoria (84,671) (74,956)

Net Cash (used in)/provided by Financing Activities (84,671) 6,906,044

Net Increase/(Decrease) in Cash Held (4,318,865) 3,491,384

Cash at the beginning of the Financial Year 6,356,883 2,865,499

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 4 2,038,019 6,356,883

The above Cash Flow Statement should be read in conjunction with the notes to the financial statements.


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2015

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Mount Hotham Alpine Resort Management Board (MHRMB) is constituted under the Alpine Resorts (Management) Act 1997 and has its principal place of business located at Mount Hotham, Victoria, Australia.

These annual financial statements represent the audited general-purpose financial statements for the Mount Hotham Alpine Resort Management Board for the year ending 31st October 2015. The purpose of the report is to provide users with information about MHRMB’s stewardship of resources entrusted to it.

The reporting period covered in the financial statements is 1st November 2014 to 31st October 2015.

a) STATEMENT OF COMPLIANCE

These general financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Where applicable, those AAS paragraphs applicable to not-for-profit entities have been applied.

Accounting policies are selected and applied in a manner, which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

These annual financial statements were authorised

for issue by the Chairperson of Mount Hotham Resort Management Board on 11th December 2015.

In the determination of whether an asset or liability is financial or non-financial, consideration is given to the extent of the asset’s ability to be converted into liquid (cash) funds.

Under the AASs, there are requirements that apply specifically to not-for-profit entities that are not consistent with IFRS requirements.

b) BASIS OF ACCOUNTING PREPARATION AND MEASUREMENT

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

Judgements, estimates and assumptions are required to be made about the carrying value of assets and liabilities, income and expenses that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates relate to:

- The fair value of land, buildings, infrastructure, plant and equipment (Refer Note 1(i))

- Actuarial assumptions for employee benefit

provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (Refer Note 1(j)); and

- The value of infringement revenues in particular the amounts likely to be collected in future periods and the amounts to be provided for under the bad debt provision (Refer Note 1(h)).

These financial statements are presented in Australian dollars and prepared in accordance with the historical cost convention except for:

- Non-financial physical assets which, subsequent to acquisition, are measured at a re-valued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31st October 2015 and the comparative information presented for the year ended 31st October 2014.

AASB 13 Fair Value Measurement

Consistent with AASB 13 Fair Value Measurement, the MHRMB determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment and financial instruments and for non-recurring fair value measurements such as non-financial physical assets classified as held for sale, in accordance with the requirements of AASB 13 and the relevant Financial Reporting Directions.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy,


b) BASIS OF ACCOUNTING PREPARATION AND MEASUREMENT CON’T

described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For the purpose of fair value disclosures, the MHRMB has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

In addition, the MHRMB determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Valuer-General Victoria (VGV) is the MHRMB’s independent valuation agency.

MHRMB, in conjunction with VGV, monitors changes in the fair value of each asset through relevant data sources to determine whether revaluation is required.

A fair value assessment is conducted annually to ensure that property, plant and equipment reflects the fair value at the end of the year. The assessment considers all fair value indicators, including land and building indices, the highest and best use indicators and other relevant indicators.

In the event that the assessment triggers a change in value, adjustments are made to reflect the fair value of the asset.

MHRMB has assessed Accounting Standard 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-For-Profit Public Sector Entities and have decided to early adopt the reduced disclosure requirements.

c) REPORTING ENTITY

The financial statements cover the Mount Hotham Resort Management Board (MHRMB) as an in individual reporting entity.

The MHRMB is an entity established under the Alpine Resorts (Management) Act 1997.

Its principal address is: Mount Hotham Resort Management Board Great Alpine Road Mount Hotham VIC 3741

MHRMB is a public body acting on behalf of the Crown, and reporting to the Department of Environment, Land, Water and Planning (DELWP).

A description of the nature of the MHRMB’s operations and its principal activities is included in the nature and scope of activities on page 12, which does not form part of these financial statements.

d) SCOPE AND PRESENTATION OF FINANCIAL STATEMENTS

Comprehensive operating statement

The comprehensive operating statement comprises three components, being ‘net result from transactions’ (or termed as ‘net operating balance’), ‘other economic flows included in net result’, as well as ‘other economic flows – other comprehensive income’. The sum of the former two, together with the net result from discontinued operations, represents the net result.

The net result is equivalent to profit or loss derived in accordance with AASs.

‘Other economic flows’ are changes arising from market measurements. They include:

• Gains and losses from disposals of non-financial assets; and

• Revaluations and impairments of non-financial physical and intangible assets.

This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements.

Balance sheet

Assets and liabilities are presented in liquidity order with assets aggregated into financial assets

and non-financial assets.

Current and non-current assets and liabilities (non-current being those assets or liabilities expected to be recovered or settled more than 12 months) are disclosed in the notes, where relevant.

The net result is equivalent to profit or loss derived in accordance with AASs.

Cash flow statement

Cash flows are classified according to whether or not they arise from operating, investing, or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows.

Statement of changes in equity

The statement of changes in equity presents reconciliations of non-owner and owner changes in equity from opening balances at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘comprehensive result’ and amounts related to ‘transaction with owners in the capacity as owners’.

Rounding of amounts

Amounts in the financial statements (including the notes) have been rounded to the nearest dollar, unless otherwise stated. Figures in the financial statements may not equate due to rounding.

e) INCOME FROM TRANSACTIONS

Income is recognised in accordance with AASB 118 Revenue. Income is recognised as revenue to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured at fair value.

Grants

Income from grants (other than contribution by owners) is recognised when the MHRMB obtains control over the contribution. MHRMB is deemed to have assumed control when the grant is receivable or received.



e) INCOME FROM TRANSACTIONS CON’T

Contributions

Any grants and contributions received from the Victorian Government that are deemed as being in the nature of owner’s contributions are accounted for as Equity - Contributed Capital in accordance with FRD119A Transfers Through Contributed Capital.

Rendering of Services

Site rental is recognised under the terms and conditions of each lease and in accordance with the MHRMB’s role as a Committee of Management of any Crown Land deemed to be permanently reserved under the Crown Lands Reserve Act 1978.

Service Charge revenue is brought to account when a rate/tariff is levied or determined for service charges leviable under Section 13 of the Alpine Resorts (Management) Act 1997.

Gate entry revenue (including from the sale of season passes) is recognised when received and when the entitlement is in the current financial year. Season pass receipts received for an entitlement to resort entry in current and/or subsequent financial years are proportioned to the year of entitlement.

Gas revenue is recognised when LPG has physically been delivered through a meter and the meter is read, invoiced to the customer and collectability is reasonably assured and revenue can be measured reliably.

Interest revenue is recognised using the effective interest method, which allocates the interest over the relevant period.

Revenue from the sale of rights to lease and develop Crown Land is recognised upon granting the right to commence works from MHRMB, or on the execution of a contract of sale, following approval by the Minister of Environment, Land, Water and Planning, whichever occurs first.

Infringement notices are recognised as revenue when the penalty has been imposed.

f) EXPENSES FROM TRANSACTIONS

Expenses from transactions are recognised as they are incurred, and reported in the financial year to which they relate.

Employee Expenses

Refer to Note 3 regarding employee benefits.

These expenses include all costs related to employment (other than superannuation which is accounted for separately) including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments and WorkCover premiums.

Superannuation

The amount recognised in the comprehensive operating statement is the employer contributions for members of both defined benefit and defined contribution superannuation plans that are paid or payable during the reporting period.

MHRMB does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefit liabilities in its disclosure for administered items.

Depreciation

All infrastructure assets, buildings, plant and equipment and other non-financial physical assets (excluding assets held for sale and land) that have finite useful lives are depreciated. Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments made where appropriate.

Depreciation 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.

Depreciation rates currently applied to each class of asset are as follows:

Buildings 1.67%- 20%

Community and Village Infrastructure 1.25%- 20%

Roads and car parks 1.25%- 10%

Water 1%- 30%

Sewerage 1.25%- 5 %

Gas 2%-6.67%

Plant, Equipment and Motor Vehicles 5%- 50%

The above rates for buildings, community and village infrastructure, roads and car parks, water, sewerage, gas and plant and equipment assets have remained unchanged from the previous year, however rates been updated to reflect the additional classification of assets.

Interest Expense

Interest expenses are recognised as expenses in the period in which they are incurred.

Other operating expenses

Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include:

Supplies and services

Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.

Bad and doubtful debts

Refer to Note 1(h) for further description of Bad and doubtful debts.


g) OTHER ECONOMIC FLOWS INCLUDED IN THE NET RESULT

Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions.

Net gain/(loss) on non-financial assets

Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:

Revaluation gains/(losses) of non-financial physical assets

Refer to Note 1(i) Revaluations of non-financial physical assets.

Net gain/(loss) on disposal of non-financial assets

Any gain or loss on the sale of non-financial assets is recognised at the date of disposal and is determined after deducting from the proceeds the carrying value of the asset at that time.

Impairment of non-financial assets

All assets are assessed annually for indications of impairment, except for:

• Financial assets

• Inventories

• Non-financial physical assets held for sale

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off as another economic flow, except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that class of asset.

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 increased to its recoverable amount. The impairment loss is reversed 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.

h) FINANCIAL ASSETS

Cash and cash equivalents

Cash and deposits recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and those highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and readily convertible to known amounts of cash with an insignificant risk of changes in value.

Receivables

Receivables consist of;

- Contractual receivables, which include mainly debtors in relation to goods and services and accrued investment income; and

- Statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable.

Debtors are carried at amounts due. Where necessary, interest is charged on overdue debts in accordance with the Penalty Interest Rates Act 1983 or in accordance with relevant legislation and/or lease terms.

MHRMB’s stated terms in respect of amounts receivable are payment in full within 30 days.

Bad and Doubtful Debts

Receivables are subject to impairment testing as described below.

At the end of each reporting period, MHRMB assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

Receivables are assessed for bad and doubtful debts on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful receivables are classified as other economic flows in the net result.

A provision for doubtful debts is recognised when

there is objective evidence that the debts may not be collected and bad debts written off when identified.

A provision for doubtful debts is recognised when collection in full for Infringement penalties is no longer probable.

A provision is made for any doubtful debts, based on a review of all outstanding receivables at balance date. Bad debts are written off in the period in which they are identified. MHRMB considered that an $88,919 provision was necessary for bad or doubtful debts as at 31st October 2015 (2014: $72,398).

i) NON-FINANCIAL ASSETS

Inventories

Inventories comprise goods for resale and goods for use. All inventories are valued at the lower of cost and net realisable value.

Goods for resale - comprise goods procured or developed for resale and include LPG gas and horticultural products.

Goods for use - comprise goods procured or stored for use in operations and include diesel and unleaded fuel.

Property, Plant and Equipment

Acquisition

Property, plant and equipment include land, buildings, roads and car parks, community and village infrastructure, water, sewerage, gas, plant, equipment, furniture and motor vehicles. Items with a cost or value in excess of $1,000 and a useful life to MHRMB of more than one year are capitalised. All other assets acquired are expensed.

All non financial physical assets are measured initially at cost and subsequently re-valued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition.

The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.


i) NON-FINANCIAL ASSETS CON’T

Valuation of Property, Plant and equipment

Non financial physical assets are measured at fair value on a cyclical basis, in accordance with the Financial Reporting Directions (FRDs) issued by the Minister for Finance. A full revaluation normally occurs every five years, based upon the asset’s government purpose classification but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are generally used to conduct these scheduled revaluations. Certain infrastructure assets are re-valued using specialised advisors. Any interim revaluations are determined in accordance with the requirements of the FRDs.

Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.

The most recent valuation was undertaken as at 31st October 2011. The fair value of buildings, roads and infrastructure has been determined by reference to the assets depreciated replacement cost recognising the residual value apparent in the valuation.

Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are recognised in ‘other economic flows – other comprehensive income’, and accumulated in equity under the asset revaluation surplus. However, the net revaluation increase is recognised in the net result to the extent that it reverses a net revaluation decrease in respect of the same class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result.

Net revaluation decrease is recognised in ‘other economic flows – other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment. Otherwise, the net revaluation decreases are recognised immediately as other economic flows in the net result. The net revaluation decrease recognised in ‘other economic flows – other comprehensive income’ reduces the amount accumulated in equity under the asset revaluation surplus.

Revaluation increases and decreases relating to

individual assets in a class of property, plant and equipment, are offset against one another in that class but are not offset in respect of assets in different classes. The asset revaluation surplus is not transferred to accumulated funds on derecognition of the relevant asset.

Valuation of Land

MHRMB undertook a revaluation of its land assets for 31st October 2011 using the ‘fair value’ methodology. The Valuer-General Victoria performed the revaluation. Under fair value the MHRMB’s interest in the Crown’s leasehold land is measured based on a direct market comparison approach, whereby the subject properties are compared to recent land sales. Broad area land values have been applied to the other values areas of MHRMB’s controlled area based on comparable sales evidence methodology. The addition of these represents the fair value of the land assets under MHRMB’s control. The figures do not include any improvement values.

Sale of Property, Plant and Equipment

Any gain or loss on the disposal of non financial assets is recognised at the date of disposal and is the difference between the proceeds and the carrying value of the asset at the time.

For the accounting policy on impairment of non-financial physical assets, refer to impairment of non-financial assets under Note 1(g).

More details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 8.2 Property, Plant and Equipment.

In MHRMB’s view, asset values do not exceed their recoverable amount from their continued use and their subsequent disposal and as such, no adjustment to these values was made in the reporting period.

Other non-financial assets

Prepayments

Other non-financial assets include prepayments, which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.

j) LIABILITIES

Payables

Payables consist of:

- Contractual payables, such as accounts payable and unearned income including deferred income from concession arrangements. Accounts payable represent liabilities for good and services provided to MHRMB prior to the end of the financial year that are unpaid, and arise when MHRMB becomes obliged to make future payments in respect of the purchase of those goods and services; and

- Statutory payables, such as goods and services tax and fringe benefits tax payables.

Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost (Refer Note 1 (k)). 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.

Borrowings

All interest bearing liabilities are initially measured at fair value of the consideration received, being the cost of the borrowings, net of directly attributable transaction costs. The measurement basis subsequent to initial recognition depends on whether MHRMB has categorised its interest-bearing liabilities as either financial liabilities designated at fair value through profit or loss, or financial liabilities at amortised costs.

Subsequent to initial recognition, borrowings are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in net result over the period of the borrowing using the effective interest method.

Provisions

Provisions are recognised when MHRMB 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 provision is the best estimate of the consideration required to



j) LIABILITIES CON’T

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, using discount rate that reflects the time value of money and risks specific to the provision.

Employee Benefits

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave (LSL) for services rendered to the reporting date.

(i) Wages and salaries, annual leave and time in lieu leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating time in lieu leave, are all recognised in the provision for employee benefits as ‘current liabilities’, because MHRMB does not have an unconditional right to defer settlements of these liabilities.

Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and time in lieu leave are measured at:

• Nominal value – if MHRMB expects to wholly settle within 12 months: or

• Present value – if MHRMB does not expect to wholly settle within 12 months.

(ii) Long service leave

Liability for long service leave (LSL) is recognised in the provision for employee benefits.

Unconditional LSL (representing five or more years of continuous service for VPS staff) is disclosed in the notes to the financial statements as a current liability, even where the MHRMB 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:

• Nominal value if MHRMB expects to wholly settle within 12 months; and

• Present value if MHRMB does not expect to wholly settle within 12 months.

Conditional LSL (representing less than five years of continuous service for VPS staff) is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value.

Any gain or loss following revaluation of the present value of non current LSL liability is recognised in the ‘net result from transactions’, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised in the net result as an –‘other economic flow’.

(iii) Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee decides to accept an offer of benefits in exchange for the termination of employment. MHRMB recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

(iv) Employee benefits on-costs

Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and LSL accrued while on LSL taken in service) are recognised separately from provision for employee benefits.

k) FINANCIAL INSTRUMENTS

Financial 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 MHRMB’s activities, certain financial assets and financial liabilities arise under statute rather than contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation.

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 receivables

Loans 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 any impairment.

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

Held-to-maturity financial assets

If MHRMB has the positive intent and ability to hold nominated investments to maturity, then such financial assets may be classified as held-to-maturity. Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition held-to-maturity financial assets are measured at amortised cost using the effective interest method, less any impairment losses.

MHRMB makes limited use of this classification because any sale or reclassification of more than an insignificant amount of held-to-maturity investments not close to their maturity would result in the whole category being reclassified as available-for-sale. MHRMB would also be prevented from classifying investment securities as held-to-maturity for the current and the following two financial years.


l) GOODS AND SERVICES TAX

Income, expenses and assets are recognised net of the amount of associated goods and services tax (GST), except where the amount of GST is not recoverable from the taxation authority. In this case, the GST payable is recognised as part of the cost of acquisition of the asset or as part of the expense.

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

Cash flows are presented on a gross basis. The GST component of cash flows arising from investing and financing activities, which are recoverable from, or payable to the taxation authority, are presented as an operating cash flow.

Commitments and contingent assets and liabilities are also stated inclusive of GST (refer to Note 1 (o) and Note 1 (p).)

m) CONTRIBUTED CAPITAL

Contributions to MHRMB are recognised as contributed capital with the approval of the Minister for Finance and when the transfer satisfies the definition of contribution by owners as per FRD119A Transfers through Contributed Capital. Contributed capital is disclosed in the Statement of changes in Equity.

n) LEASES

A lease is a right to use an asset for an agreed period of time in exchange for payment.

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership

There are no finance leases.

Operating leases are charged to the comprehensive operating statement in the period in which they are incurred, as this represents the pattern of benefits derived from the leased assets.

MHRMB AS LESSOR

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.

o) COMMITMENTS

Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of note (refer to Note 13 Capital and forward Commitments) at their nominal value and inclusive of GST payable.

In addition, where it is considered appropriate and provides additional relevant 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 in the balance sheet.

p) CONTINGENT ASSETS AND CONTINGENT LIABILITIES

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer to Note 14 Contingent Assets and Liabilities) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

q) COMPARATIVES

Where necessary, comparative amounts have been reclassified to comply with presentation in the current year.

There have been five occurrences where it was necessary to reclassify the comparative amounts from prior year audited financial report. These include:

1. The Comprehensive Operating Statement amended to include the net gain/(loss) arising from revaluation of long service liability; this has also affected the Administration expenses from transactions and Note 2 Employee Benefits Expense.

2. The Comprehensive Operating Statement has been amended to include government tax rebates.

3. Note 8.1 Reconciliation of the carrying amounts of each class of asset has been reclassified Plant, Equipment and Motor Vehicles transfers to additions.

4. Note 8.2 Fair value measurement hierarchy for assets and associated reconciliation of Level 3 assets has been further disaggregated to provide users with a greater understanding of the class of assets for water, sewerage and gas.

5. Note 18(b) Payments to other personnel (i.e. contractors with significant management responsibilities) has been amended to reflect the exclusive of GST figure.



r) AASS ISSUED THAT ARE NOT YET EFFECTIVE

Certain new AASs have been published that are not mandatory for the 31 October 2015 reporting period. MHRMB assesses the impact of these new standards and advises of their applicability and early adoption where applicable.

As at 31st October 2015, the following standards and interpretations had been issued but were not mandatory for the financial year ending 31st October 2015. MHRMB has not early adopted these standards.

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2014-15 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 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010).

• AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments

• AASB 2014-1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments arising from AASB 14 Regulatory Deferral Accounts only] #

• AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations [AASB 1 & AASB 11]

• AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15

• AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants [AASB 101, AASB 116, AASB 117, AASB 123, AASB 136, AASB 140 & AASB 141]

• AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)

• AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)]

• AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049]

• AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality

• AASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent [AASB 127, AASB 128] #

• AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception [AASB 10, AASB 12, AASB 128] #

Standard/Interpretation Summary Applicable for annual reporting periods beginning on

Impact on public sector entity financial statements

AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation

[AASB 116 & AASB 138]

Amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets to:

• Establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset;

• Prohibit the use of revenue based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.

1 Jan 2016 The assessment has indicated that there is no expected impact as the revenue-based method is not used for depreciation and amortisation.

AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities

[AASB 10, AASB 124 & AASB 1049]

The Amendments extend the scope of AASB 124 Related Party Disclosures to not-for-profit public sector entities. Guidance has been included to assist the application of the Standard by not-for-profit public sector entities.

1 Jul 2016 The amending standard will result in extended disclosures on the entity’s key management personnel (KMP), and the related party transactions.


NOTE 2 INCOME FROM TRANSACTIONS 2015 2014 $ $REVENUE GOVERNMENT GRANTSSustainability Victoria 5,000 20,000

Government tax rebates 33,948 24,931

Alpine Shire Council contribution to Hotham Dinner Plain Trail 35,291 15,020

74,239 59,951

RENDERING OF SERVICESSite rental 1,307,329 1,291,433

Service charges 4,343,392 4,193,066

Transport Contribution 133,154 130,002

Gas trading operations 1,107,706 1,386,981

Gate entry 2,731,048 2,665,100

Horticultural supplies 111,999 106,675

9,734,628 9,773,257

Interest 185,435 163,051

OTHER REVENUEInfringement Revenue 240,870 231,643

Service Charges - Infrastructure fee 134,191 176,828

Marketing Revenue 175,090 115,742

Other Income 173,808 320,845

723,960 845,058

TOTAL INCOME FROM TRANSACTIONS 10,718,262 10,841,317



NOTE 3 EXPENSES 2015 2014 $ $

INCLUDED IN EXPENSES ARE:

DEPRECIATION CHARGE FOR THE PERIODBuildings 221,804 218,724

Infrastructure 811,022 748,388

Plant, equipment and motor vehicles 339,960 266,155

1,372,785 1,233,267

EMPLOYEE BENEFITS EXPENSESalaries, wages and other on costs 3,506,576 3,412,588

Superannuation 303,053 312,970

3,809,630 3,725,558

AUDIT FEESAudit of Financial Statements -Victorian Auditor-General’s Office 30,000 25,300

Internal Auditor 13,749 17,272

43,749 42,572

OTHER COSTS INCLUDINGMaintenance 589,508 647,338

Energy 554,347 537,242

Cost of Goods Sold - Gas operations 505,566 765,133

Cost of Goods Sold - Horticultural operations 16,626 22,433

Marketing 93,761 125,811

Consultants and Contractors 807,256 533,330

Communications 66,861 58,959

Accommodation - Staff 137,604 104,989

Support Payments (Alpine Resorts Co-ordinating Council) 398,398 355,783

Insurance 315,713 308,920

Interest 104,733 110,126

Legal 89,385 90,774

Licenses, monitoring and testing 132,651 134,819

Training related costs 205,479 155,074

Equipment and safety related costs 184,606 138,609

Consumables 81,373 92,112

Bad and doubtful debts 63,151 34,504

Other 697,919 576,218

5,044,935 4,792,175

TOTAL EXPENSES FROM TRANSACTIONS 10,271,099 9,793,572


NOTE 4 CASH AND CASH EQUIVALENTS 2015 2014 $ $

Current Cash at bank 2,038,019 6,356,883

19 2,038,019 6,356,883

NOTE 5 RECEIVABLES 2015 2014 $ $

Current Trade debtors 497,596 718,648

Infringement debtors 241,924 211,232

Less provision for doubtful debts (88,919) (72,398)

Other receivables 47,312 44,699

19 697,913 902,181

Where necessary interest is charged on overdue debts in accordance with the Penalty Interest Rates Act 1983 or in accordance with relevant legislation

and/or lease terms. At 31 October 2015 the Penalty Interest Rate was 9.5% (2014 10.5%). The carrying value of debtors approximates fair value.

Ageing analysis of contractual receivable Please refer to Table 19.2 in Note 19 for the ageing analysis of contractual receivables.

Movement in doubtful debts Balance at the beginning of the year (72,398) (39,086)

New provisions recognised (62,923) (34,216)

Amounts written off as uncollectible 46,402 904

BALANCE AT THE END OF THE YEAR (88,919) (72,398)

All debtors have been reviewed by management at period end and a provision for doubtful debts has been raised to reflect collectability of infringement debtors of $88,919 (2014 $72,398).

NOTE 6 OTHER FINANCIAL ASSETS 2015 2014 $ $

Current Term Deposits 1,000,000 3,000,000

19 1,000,000 3,000,000

Non-Current Term Deposits 19 3,300,000 300,000

TOTAL OTHER FINANCIAL ASSETS 19 4,300,000 3,300,000



NOTE 7 INVENTORIES 2015 2014 $ $

Current Supplies and consumables:

Fuel 19,327 49,995

Inventory 15,008 15,008

34,335 65,003

Inventories held for sale:

Gas 11,188 65,884

Plants 49,718 24,187

60,906 90,071

TOTAL INVENTORIES 95,241 155,074


NOTE 8 PROPERTY, PLANT & EQUIPMENT 2015 2014 $ $

Land At Fair Value 41,815,000 41,815,000

41,815,000 41,815,000

Land held for resale Right to lease and develop land parcel at Fair Value 42,208 42,208

42,208 42,208

Buildings At Fair Value 6,835,466 6,801,437

Less accumulated depreciation (880,655) (658,851)

5,954,811 6,142,586

Village and Community Infrastructure At Fair Value 4,281,308 4,134,383


3,863,197 3,845,915

Roads and carparks At Fair Value 11,341,076 10,298,947


10,630,695 9,764,639

Water At Fair Value 11,003,180 5,781,862


10,127,851 5,116,181

Sewerage At Fair Value 6,882,284 6,882,284


5,923,442 6,164,151

Gas At Fair Value 1,165,815 1,153,740


965,762 1,004,815

Plant, Equipment and Motor Vehicles At Fair Value 3,852,181 3,733,265

Less accumulated depreciation (2,447,064) (2,594,396)

1,405,117 1,138,869

Capital Works in Progress at cost 567,556 2,448,676

TOTAL 81,295,639 77,483,040



NOTE 8.1 PROPERTY, PLANT AND EQUIPMENT

Reconciliations of the carrying amounts of each class of asset at the beginning and end of the current financial year are set out below.

2015 Carrying amount Additions Disposals at Cost Disposals Transfers Depreciation Carrying at start of year Accumulated Expense amount at end Depreciation of year

Land 41,815,000 - - - - - 41,815,000

Land held for sale 42,208 - - - - - 42,208

Buildings 6,142,586 - - - 34,030 (221,804) 5,954,811

Village and Community

Infrastructure 3,844,107 - - - 148,733 (129,644) 3,863,197

Roads and carparks 9,764,639 - - - 1,042,129 (176,074) 10,630,695

Water 5,116,181 - - - 5,221,319 (209,648) 10,127,851

Sewage 6,164,151 - - - - (240,708) 5,923,442

Gas 1,004,815 - - - 12,074.17 (51,128) 965,762

Plant , Equipment & Motor Vehicles 1,140,679 614,472 (497,364) 491,111 - (343,779) 1,405,117

Capital Works in Progress 2,448,676 4,577,165 - - (6,458,286) - 567,556

77,483,040 5,191,637 (497,364) 491,111 - (1,372,785) 81,295,639

2014 Carrying amount Additions Disposals at Cost Disposals Transfers Depreciation Carrying at start of year Accumulated Expense amount at end Depreciation of year

Land 41,815,000 - - - - - 41,815,000

Land held for sale 42,208 - - - - - 42,208

Buildings 6,203,787 - - - 157,523 (218,724) 6,142,586

Village and Community

Infrastructure 3,849,665 - - - 96,442 (102,000) 3,844,107

Roads and carparks 9,899,247 - - - 37,363 (171,971) 9,764,639

Water 5,289,411 - - - 10,124 (183,354) 5,116,181

Sewage 6,318,708 - - - 85,584 (240,141) 6,164,151

Gas 1,055,737 - - - - (50,922) 1,004,815

Plant , Equipment & Motor Vehicles 692,903 719,965 (6,035) - - (266,155) 1,140,679

Capital Works in Progress 212,222 2,623,488 - - (387,034) - 2,448,676

75,378,888 3,343,453 (6,035) - - (1,233,267) 77,483,040


NOTE 8.2 PROPERTY, PLANT AND EQUIPMENT

Fair value measurement hierarchy for assets as at 31 October 2015

Carrying amount as Fair value measurement at end of at 31 October 2015 reporting period using:

Level 1 (i) $ Level 2(i) $ Level 3(i) $Land at fair value

Specialised land 41,857,208 - - 41,857,208

TOTAL OF LAND AT FAIR VALUE 41,857,208 - - 41,857,208

Buildings at fair value

Specialised buildings 5,954,811 - - 5,954,811

TOTAL OF BUILDINGS AT FAIR VALUE 5,954,811 - - 5,954,811

Village & Community Infrastructure at fair value

Village & Community Infrastructure at fair value 3,863,197 - - 3,863,197

TOTAL OF VILLAGE & COMMUNITY INFRASTRUCTURE AT FAIR VALUE 3,863,197 - - 3,863,197

Roads & carparks at fair value

Roads & carparks at fair value 10,630,695 - - 10,630,695

TOTAL OF ROADS & CARPARKS AT FAIR VALUE 10,630,695 - - 10,630,695

Water Assets at fair value

Headworks - - - -

Distribution works 937,906 - - 937,906

Treatment 112,920 - - 112,920

Water Storage 2,551,799 - - 2,551,799

Water Reticulation 897,911 - - 897,911

Drains 5,627,315 - - 5,627,315

TOTAL OF WATER ASSETS AT FAIR VALUE 10,127,851 - - 10,127,851

Sewerage Assets at fair value

WWTP 2,368,134 - - 2,368,134

Sewer Pump wells 361,924 - - 361,924

Sewer Reticulation 867,784 - - 867,784

Ultra Filtration 2,325,600 - - 2,325,600

TOTAL OF SEWERAGE ASSETS AT FAIR VALUE 5,923,442 - - 5,923,442



NOTE 8.2 PROPERTY, PLANT AND EQUIPMENT CON’T

Carrying amount as Fair value measurement at end of at 31 October 2015 reporting period using:

Level 1 (i) $ Level 2(i) $ Level 3(i) $Gas Assets at fair value

Gas Storage 523,959 - - 523,959

Gas Reticulation 401,268 - - 401,268

Customer Supply 40,535 - - 40,535

TOTAL OF GAS ASSETS AT FAIR VALUE 965,762 - - 965,762

Plant, Equipment & Vehicles at fair value

Vehicles 650,543 - - 650,543

Plant & equipment 754,574 - - 754,574

TOTAL OF PLANT, EQUIPMENT & VEHICLES AT FAIR VALUE 1,405,117 - - 1,405,117

Notes: (i) Classified in accordance with the fair value hierarchy, see note 1 (b) Assets under construction are excluded from the table above as they are measured at cost.

There have been no transfers between levels during the period.

SPECIALISED LAND AND SPECIALISED BUILDINGS

The market approach is used for specialised land, although is adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued.

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and financially feasible. As adjustments of CSO are considered significant unobservable inputs in nature, specialised land are classified as Level 3 fair value measurements.

All the Board’s specialised buildings use the depreciated replacement cost method, adjusting for the associated depreciations. As depreciation

adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified as Level 3 fair value measurements.

An independent valuation of the Boards specialised land and specialised buildings was performed by the Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO, The effective date of the valuation is 31 October 2011.

VILLAGE AND COMMUNITY INFRASTRUCTURE, ROADS AND CAR PARKS, WATER, SEWERAGE AND GAS

All village & community infrastructure, roads & car parks, water, sewage & gas assets are valued using the depreciated replacement cost method. This cost represents the replacement cost of the building/component after applying depreciation rates on a useful life basis. Replacement costs relate to costs to replace the current service capacity of the asset.

Economic obsolescence has also been factored into the depreciated replacement cost calculation.

Where it has not been possible to examine hidden works such as structural frames and floors, the use of reasonable materials and methods of construction have been assumed bearing in mind the age and nature of the buildings, roads and carparks, water, sewerage and gas infrastructure assets.

An independent valuation of the Boards infrastructure, roads and car parks was performed by Cosgraves & Eastoe Pty Ltd on behalf of the Valuer-General Victoria.

The valuation was performed based on the depreciated replacement cost of the assets. The effective date of the valuation is 31 October 2011.


8.2 PROPERTY, PLANT AND EQUIPMENT CON’T

VEHICLES

Vehicles are valued using the depreciated replacement cost method. The Board acquires new vehicles and at times disposes of them before the end of their economic life. The process of acquisition, use and disposal in the market is managed by experienced fleet managers in the Board who set relevant depreciation rates during use to reflect the utilisation of the vehicles.

PLANT AND EQUIPMENT

Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using the depreciated replacement cost method.

There were no changes in valuation techniques throughout the period to 31 October 2015.

For all assets measured at fair value, the current use is considered the highest and best use.

RECONCILIATION OF LEVEL 3 FAIR VALUE ($)

2015 Opening balance Purchase (sales) Transfers in (out) Gains or losses Depreciation Impairment loss Subtotal Gains or losses recognised Subtotal Closing balance Unrealised gains/ of Level 3 recognised in net result in other economic flows- (losses) on non other comprehensive income -financial assets

Specialised land 41,857,208 - - - - - 41,857,208 - - 41,857,208 -

Specialised buildings 6,142,586 34,030 - - (221,804) - 5,954,810 - - 5,954,810 -

Village and Community Infrastructure 3,844,107 148,733 - - (129,644) - 3,863,197 - - 3,863,197 -

Roads and car parks 9,764,639 1,042,129 - - (176,074) - 10,630,694 - - 10,630,694 -

Headworks - - - - - - - - - - -

Distribution works 973,260 - - - (35,354) - 937,906 - - 937,906 -

Treatment 124,690 - - - (11,770) - 112,920 - - 112,920 -

Water Storage 2,626,600 - - - (74,800) - 2,551,800 - - 2,551,800

Water Reticulation 936,227 9,183 - - (47,499) - 897,911 - - 897,911

Drains 455,404 5,212,136 - - (40,225) - 5,627,316 - - 5,627,316 -

WWTP 2,446,301 - - - (78,166) - 2,368,134 - - 2,368,134 -

Sewer Pump wells 369,800 - - - (16,194) - 353,606 - - 353,606 -

Sewer Reticulation 911,850 - - - (35,748) - 876,102 - - 876,102 -

Ultra Filtration 2,436,200 - - - (110,600) - 2,325,600 - - 2,325,600 -

Gas Storage 547,902 - - - (23,943) - 523,959 - - 523,959 -

Gas Reticulation 415,300 12,074 - - (26,106) - 401,267 - - 401,267 -

Customer Supply 41,614 - - - (1,079) - 40,535 - - 40,535 -

Plant, Equipment & Vehicles 1,140,679 614,472 - - (343,779) - 1,411,370 (6,253) (6,253) 1,405,117 -



8.2 PROPERTY, PLANT AND EQUIPMENT CON’T

RECONCILIATION OF LEVEL 3 FAIR VALUE ($)

2015 Opening balance Purchase (sales) Transfers in (out) Gains or losses Depreciation Impairment loss Subtotal Gains or losses recognised Subtotal Closing balance Unrealised gains/ of Level 3 recognised in net result in other economic flows- (losses) on non other comprehensive income -financial assets

Specialised land 41,857,208 - - - - - 41,857,208 - - 41,857,208 -

Specialised buildings 6,142,586 34,030 - - (221,804) - 5,954,810 - - 5,954,810 -

Village and Community Infrastructure 3,844,107 148,733 - - (129,644) - 3,863,197 - - 3,863,197 -

Roads and car parks 9,764,639 1,042,129 - - (176,074) - 10,630,694 - - 10,630,694 -

Headworks - - - - - - - - - - -

Distribution works 973,260 - - - (35,354) - 937,906 - - 937,906 -

Treatment 124,690 - - - (11,770) - 112,920 - - 112,920 -

Water Storage 2,626,600 - - - (74,800) - 2,551,800 - - 2,551,800

Water Reticulation 936,227 9,183 - - (47,499) - 897,911 - - 897,911

Drains 455,404 5,212,136 - - (40,225) - 5,627,316 - - 5,627,316 -

WWTP 2,446,301 - - - (78,166) - 2,368,134 - - 2,368,134 -

Sewer Pump wells 369,800 - - - (16,194) - 353,606 - - 353,606 -

Sewer Reticulation 911,850 - - - (35,748) - 876,102 - - 876,102 -

Ultra Filtration 2,436,200 - - - (110,600) - 2,325,600 - - 2,325,600 -

Gas Storage 547,902 - - - (23,943) - 523,959 - - 523,959 -

Gas Reticulation 415,300 12,074 - - (26,106) - 401,267 - - 401,267 -

Customer Supply 41,614 - - - (1,079) - 40,535 - - 40,535 -

Plant, Equipment & Vehicles 1,140,679 614,472 - - (343,779) - 1,411,370 (6,253) (6,253) 1,405,117 -


NOTE 9 PAYABLES 2015 2014 $ $

Current Trade creditors 125,187 581,759

Statutory payable 300,307 50,585

Accrued expenses 364,127 239,939

Other payables 132,971 185,634

19 922,593 1,057,917

All trade and other creditors are non-interest bearing. The carrying amount of creditors approximates fair value.

Ageing analysis of contractual payables Please refer to Table 19.2 in Note 19 for the ageing analysis of contractual payables

NOTE 10 TCV BORROWINGS 2015 2014 $ $

Current Fixed interest loan from TCV 90,378 84,669

Non-Current Fixed interest loan from TCV 1,454,502 1,544,882

TOTAL FIXED INTEREST LOAN FROM TCV 19 1,544,880 1,629,551

NOTE 11 PROVISIONS 2015 2014 $ $

Current provisions Employee Benefits (i) (note 11(a))

Annual leave

Unconditional and expected to be settled within 12 months (ii) 201,331 167,171

Unconditional and expected to be settled after 12 months (iii) 69,464 71,449

Long service leave



Provisions related to employee benefits on-costs



Total current provisions 759,927 786,509

Non-Current Employee Benefits (i) 52,282 75,789

Provisions related to employee benefits on-costs 8,316 11,972

Total non-current provisions 60,598 87,761

TOTAL PROVISIONS 820,525 874,270



NOTE 11 PROVISIONS CON’T

11(A) EMPLOYEE BENEFITS AND RELATED ON-COSTS 2015 2014 $ $

Current Employee Benefits

Annual Leave entitlements 265,460 218,214

Time off in Lieu entitlements 5,336 20,406

Unconditional Long Service Leave Entitlements 386,868 403,777

Non-current employee benefits

Conditional Long Service Leave entitlements 52,282 75,789

Total Employee Benefits 709,945 718,186

Current on-costs 102,264 144,112

Non-current on-costs 8,316 11,972

Total on-costs 110,580 156,084

TOTAL EMPLOYEE BENEFITS AND RELATED ON-COSTS 820,525 874,270

(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs.

(ii) The amounts disclosed are nominal amounts.

(iii) The amounts disclosed are discounted to present values.

11(B) MOVEMENT IN PROVISIONS 2015 $

Opening balance 874,270

Additional provisions recognised 36,467

Reductions arising from payments/other sacrifices of future economic benefits 21,109

Reductions resulting from re-measurement or settlement without cost 69,103

Closing balance 820,525

Current 759,928

Non-current 60,598

820,525


NOTE 12 RECONCILIATION OF NET RESULT TO NET 2015 2014CASH FLOWS FROM OPERATING ACTIVITIES $ $

Net Results for the reporting period 496,546 1,032,892

Depreciation 1,372,785 1,233,267

Sale / Write down of Assets (68,764) (36,332)

Change in operating assets and liabilities

Decrease/(increase) in receivables 204,268 (143,712)

Decrease/(increase) in inventories 59,833 (15,224)

Decrease/(increase) in prepayments 6,828 (9,815)

Increase/(decrease) in payables (206,850) 496,344

Increase/(decrease) in accrued expenditure 71,525 (301,898)

Increase/(decrease) in employee entitlements (53,745) 136,939

NET CASH INFLOW FROM OPERATING ACTIVITIES 1,882,428 2,392,460

NOTE 13 CAPITAL AND FORWARD COMMITMENTS 2015 2014 $ $

The Board has signed agreements for the construction and replacement of Swindlers Valley Pipe replacement project, walking trails and geo-technical work. The forward commitments on these works totals $1,272,259

Walking trails and geo-technical works

Not later than one year 50,000 50,000

Later than one year but not later than five years 65,000 -

115,000 50,000

Swindlers Valley Pipe Replacement Project

Not later than one year 1,157,259 4,535,474

Later than one year but not later than five years - 432,640

1,157,259 4,968,114

RMB 2016 capital works program

Not later than one year 1,696,000 1,569,000

1,696,000 1,569,000

TOTAL CAPITAL AND FORWARD COMMITMENTS 2,968,259 6,587,114

The MHRMB and the Bright Medical Centre have an ongoing relationship to provide essential medical services in Mt Hotham. To aid this service the RMB provide adequate consulting rooms and the provision of essential assets to ensure Mt Hotham can provide an adequate medical service to its guests and residence.



NOTE 14 CONTINGENT ASSETS AND LIABILITIES

There are no unquantifiable contingent liabilities. (2014-Nil). There are no contingent assets (2014 Nil).

NOTE 15 FUTURE SITE RENT LEASE REVENUE 2015 2014 $ $

Crown Land is recorded in the accounts of the Board at the Valuer-General’s valuation. The Board has brought to account the rental revenue in relation to the leased sites and does not account for depreciation since the class of assets is defined as land. The Board, acting as a Committee of Management under Section 38 of the Alpine Resorts (Management) Act 1997, manages 87 Crown leases with site holders. The leases cover periods up to 75 years.

Non-cancellable operating lease receivables

Not longer than 1 year 1,288,684 1,306,434

Longer than 1 year and not longer than 5 years 5,339,021 5,560,612

Longer than 5 years 16,793,325 16,559,831

23,421,029 23,426,877

NOTE 16 SUPERANNUATION

Employees of MHRMB are entitled to receive superannuation benefits and Mt Hotham Resort Management contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary. There were no unfunded liabilities in regard to the Board’s membership of defined benefit superannuation schemes. The Mt Hotham Resort Management Board has no responsibility for any unfunded superannuation liability in respect to the below defined benefit scheme. The Board does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefit liabilities in its disclosure for administered items. Contribution details are shown in the following table:

Type of Scheme Rate 2015 2014 % $ $

State Superannuation fund - New/Revised Scheme (Defined Benefits) 9.4 - 10.2 21,839 11,675

State Superannuation fund (SERBS) (Defined Benefits) 10 11,377 12,112

AUSTSUPER (Accumulated Benefits) 9.5 39,830 33,454

VICSUPER (Accumulated Benefits) 9.5 247,983 161,391

OTHER FUNDS (Accumulated Benefits) 9.5 152,815 100,170

473,844 318,802

At reporting date there were outstanding contributions of $nil (2014 $27,540) payable to the above funds. No loans have been made to the Board from these funds.


NOTE 17 RESPONSIBLE PERSONS

Responsible Persons

The names of persons who were Responsible Persons during the financial year were:

Responsible Minister

Ryan Smith, MP Minister for Environment and Climate Change from 1 Nov 2014 to 3 Dec 2014Lisa Neville, MP Minister for Environment, Land, Water and Property from 4 Dec 2014 to 31 Oct 2015

BoardDeborah Spring, Board Member. Chairman of the Board from 1 Nov 2014 to 31 Oct 2015.Ronald Mason, Board Member. Deputy Chairman of the Board from 1 Nov 2014 to 31 Oct 2015.Nicole Feeney, Board Member from 1 Nov 2014 to 31 Oct 2015.Timothy Piper, Board Member from 1 Nov 2014 to 31 Oct 2015.Peter Hagenauer, Board Member from 1 Nov 2014 to 31 Oct 2015.David Anstee, Board Member from 1 Nov 2014 to 31 Oct 2015.Stephen Clement, Board Member from 1 Nov 2014 to 31 Oct 2015.

Accountable Officer

James Atteridge, Chief Executive Officer and Accountable Officer from 1 Nov 2014 to 31 Dec 2014.Jonathan Hutchins, Chief Executive Offer and Accountable Officer from 19 Jan 2015 to 31 Oct 2015.

Remuneration of Responsible Persons

Remuneration received, or due and receivable by Responsible Persons in connection with the management of the Board for the financial period ended 31 October 2015 was $424,417 (2014 - $323,849)

The number of Responsible Persons whose remuneration from the Board was within the specified bands are as follows:

Total Remuneration

Remuneration Bands 2015 2014 No. No.

$ 0 - $ 9,999 6 7

$ 10,000 - $ 19,999 1 1

$ 150,000 - $159,999 1 -

$ 210,000 - $219,999 1 -

$ 270,000 - $279,999 - 1

Total Responsible persons 9 9

TOTAL REMUNERATION $424,417 $323,849

The relevant Minister’s remuneration is reported separately in the financial statements of the Department of Premier & Cabinet.

Retirement Benefits of Responsible Persons

There were no retirement benefits paid by the Board in connection with the retirement of Responsible Persons of the Board during the financial year.



NOTE 17 RESPONSIBLE PERSONS CON’T

Loans

At 31 October 2015 there were no loans in existence that have been made, guaranteed or secured by the Board to a Responsible Person of the Board or a related party of a Responsible Person.(2014 - nil)

OTHER TRANSACTIONS:

Property Interests

Nicole Feeney has property interests at Chalet Hotham and is a member of Anton Huette (Hotham Heights) Inc.Ronald Mason is a member of Asgaard Alpine Club Inc. and is a committee member of the club.Peter Hagenauer is a member of Asgaard Alpine Club Inc. and is a committee member of the club.Deborah Spring, Timothy Piper, Helen Moran, and Stephen Clement held no interest in property at Mt Hotham.James Atteridge (CEO) has interests in property at Razorback Apartments and Arlberg Hotel, Mt Hotham.Jonathan Hutchins (CEO) has interests in property at Moritz, Mt Hotham and is the secretary of the body corporate.

All transactions are conducted on an arms length commercial basis between the Board and the organisations listed below. During the year, the Board received/paid the following amounts: The following additional transactions have been entered into with related party entities:

Revenue Expenditure Outstanding debtors at 31/10/2015 $ $ $

Alpine Resort Coordinating Council - 388,818 -

Anton Huette (Hotham Heights) Inc. 47,201 - 276

Arlberg Apartments (Habitat Apartments Aust Pty Ltd) 801,855 870 171,022

Asgaard Alpine Club Inc. 64,014 7,300 1,219

Chalet Hotham Body Corporate 97,264 - 449

Chalet Hotham # 22 405 - 58

Moritz Mt Hotham Pty Ltd 250,352 29,712 -

Razorback Apartments 87,170 - -

Razorback #1 307 2,343 -

TOTAL 1,348,568 429,043 173,024


NOTE 18 REMUNERATION OF EXECUTIVES AND PAYMENT TO OTHER PERSONNEL (I.E. CONTRACTORS WITH SIGNIFICANT MANAGEMENT RESPONSIBILITIES)

(a) Remuneration of executives

The number of executive officers, other than responsible persons, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, allowances, vehicles, redundancy payments and retirement benefits. The total annualised equivalent provides a measure of full time equivalent executive officers over the reporting period.

Remuneration bands Total Remuneration Base Remuneration

2015 2014 2015 2014 No. No. No No.

$0 - $99,999 1 - 1 -

$100,000 - $109,999 - - 1 1

$110,000 - $119,999 1 1 - -

$120,000 - $129,999 1 - 2 -

$130,000 - $139,999 1 1 - 2

$140,000 - $149,999 - 2 1 1

$150,000 - $159,999 1 - - -

Total number of executives 5 4 5 4

Total annualised employment equivalents (AEE) 1 4.4 4 4.03 4

TOTAL AMOUNT $624,644 $544,007 $527,194 $512,504

1. Annualised employee equivalent is based on working 38 hours per week over the reporting period.

(b) Payments to other personnel (i.e. contractors with significant management responsibilities)

Payments have been made to one contractor with significant management responsibilities, which are disclosed in the $10,000 expense band. This contractor is responsible for planning, directing or controlling, directly or indirectly, of the Boards Property Planning and Crown leasing department.

Expense band 2015 2014 No No

$110,000 - $119,999 1 1

TOTAL EXPENSES (EXCLUSIVE OF GST) $109,304 $109,659



NOTE 19 FINANCIAL INSTRUMENTS

(a) Financial risk management objectives and policies

Mount Hotham Alpine Resort Management Board’s principal financial instruments comprise of:

• cash assets; • term deposits; • receivables;

• payables; and • borrowings.

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 and financial liability above are disclosed in Note 1 to the financial statements.

The main purpose in holding financial instruments is to prudentially manage the MHRMB’s financial risks in the government policy parameters.

The MHRMB’s main financial risks include credit risk, liquidity risk and interest rate risk. The MHRMB manages these financial risks in accordance with its financial risk management policy. The MHRMB uses different methods to measure and manage the different risks to which it is exposed.

Categorisation of financial instruments Contractual financial assets Contractual financial liabilities Total - loans and receivables at amortised cost

2015 $ $ $

Contractual financial assets

Cash and deposits 2,038,019 - 2,038,019

(i) Receivables 497,596 - 497,596

Other receivables 47,312 - 47,312

Term Deposits 4,300,000 - 4,300,000

TOTAL CONTRACTUAL FINANCIAL ASSETS 6,882,927 - 6,882,927

Contractual financial liabilities

(i) Accounts Payable - 622,286 622,286

Fixed Rate Borrowings - TCV - 1,544,880 1,544,880

TOTAL CONTRACTUAL FINANCIAL LIABILITIES - 2,167,166 2,167,166

2014

Contractual financial assets

Cash and deposits 6,356,883 - 6,356,883

(i) Receivables 718,648 - 718,648

Other receivables 44,699 - 44,699

Term Deposits 3,300,000 3,300,000

TOTAL CONTRACTUAL FINANCIAL ASSETS 10,420,230 - 10,420,230

Contractual financial liabilities

(i) Accounts Payable - 1,015,741 1,015,741

Fixed Rate Borrowings - TCV - 1,629,551 1,629,551

TOTAL CONTRACTUAL FINANCIAL LIABILITIES - 2,645,292 2,645,292

(i) The total amount disclosed here exclude statutory amounts (e.g. amounts owing from Infringements, Victorian government and GST input tax credit recoverable, and taxes payable)


NOTE 19 FINANCIAL INSTRUMENTS CON’T

(b) Interest Rate Risk Exposure

The MHRMB’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets and financial liabilities is set out below:

Interest Rate Exposure

Table 19.1 Weighted Average Carrying amount Fixed Interest Variable Non-Interest Interest Rate ($) ($) ($) Interest ($) Bearing ($)2015

Financial Assets

Cash 1.59% 2,038,019 - 2,036,691 1,327

(i) Receivables 544,909 - - 544,909

Other financial assets 2.56% 4,300,000 4,300,000 - -

6,882,927 4,300,000 2,036,691 546,236

Financial Liabilities

(i) Accounts Payable 622,286 - - 622,286

Fixed Rate Borrowings - TCV 6.58% 1,544,880 1,544,880 - -

2,167,166 1,544,880 - 622,286

2014

Financial Assets

Cash 2.16% 6,356,883 - 6,354,512 2,371

(i) Receivables 763,347 - - 763,347

Other financial assets 3.24% 3,300,000 3,300,000 - -

10,420,230 3,300,000 6,354,512 765,718


(i) Accounts Payable 1,015,741 - - 1,015,741

Variable Rate Borrowings - TCV 6.58% 1,629,551 1,629,551 - -

2,645,292 1,629,551 - 1,015,741




Table 19.2 Maturity Dates

2015 Weighted Average Nominal Amount Not past due & Less than 1-3 months More than 1-5 years > 5 years Interest Rate not impaired 1 month 3 months - 1 $ $ $ $ $ $ $ $

Financial Assets

Cash 1.59% 2,038,019 - - - - - -

(i) Receivables 544,909 544,909 544,909 - - - -

Other financial assets 2.56% 4,300,000 - 1,000,000 1,300,000 1,500,000 - -

6,882,927 544,909 1,544,909 1,300,000 1,500,000 - -


(i) Accounts Payable 622,286 622,286 622,286 - - - -

Fixed Rate Borrowings - TCV 6.58% 1,544,880 - - 22,045 68,333 528,391 926,112

2,167,166 622,286 622,286 2,045 68,333 528,391 926,112

2014

Financial Assets

Cash 2.16% 6,356,883 - - - - - -

(i) Receivables 763,347 763,347 763,347 - - - -

Other financial assets 3.24% 3,300,000 - 500,000 500,000 2,000,000 300,000 -

10,420,230 763,347 1,263,347 500,000 2,000,000 300,000 -


(i) Accounts Payable 1,015,741 1,015,741 1,015,741 - - - -

Variable Rate Borrowings - TCV 6.58% 1,629,551 - - 20,652 64,017 517,064 1,027,818

2,645,292 1,015,741 1,015,741 20,652 64,017 517,064 1,027,818

(i) The total amount disclosed here exclude statutory amounts (e.g. amounts owing from Infringements, Victorian government and GST input tax credit recoverable, and taxes payable)



(c) Credit Risk Exposures

The credit risk on financial assets of the MHRMB which have been recognised on the balance sheet is the carrying amount, net of any provision for doubtful debts.

The Board’s maximum exposure to credit risk at reporting date in respect to financial assets is limited to the carrying amount in the balance sheet.

(d) Net fair values of financial assets and liabilities

The fair values and net fair values of financial assets and financial liabilities are determined as follows:

(i) The fair value of financial assets and financial liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; and

(ii) The fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis.

The Board considers that the carrying amount of financial assets and financial liabilities recorded in the financial report to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.

(e) Liquidity Risk

Liquidity risk arises when the MHRMB is unable to meet its financial obligations as they fall due. The MHRMB operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, make payments within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets. The Board’s maximum exposure to credit risk at reporting date in respect to financial assets is limited to the carrying amount in the balance sheet.

(f) Interest Rate Risk

Exposure to interest rate risk is insignificant and might arise primarily through the MHRMB’s interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or noninterest bearing financial instruments. For financial liabilities, the MHRMB mainly undertake financial liabilities with relatively even maturity profiles.

(g) Sensitivity disclosure analysis

The following table details the sensitivity to movements in interest rates based on a parallel shift of -1% and +1% from market rates at year end.

Financial Assets Carrying Amount $ -1.0% Surplus -1.0% Equity 1.0% Surplus 1.0% Equity

2015

Cash exposed to variable interest rates and short term deposits 2,036,691 (20,367) (20,367) 20,367 20,367

2014

Cash exposed to variable interest rates and short term deposits 6,354,512 (63,545) (63,545) 63,545 63,545



NOTE 20 EX GRATIA EXPENSES

2015 2014

Forgiveness or waiver of debt $2,186 -

Compensation for economic fees $44,915 -

TOTAL $47,101 -

There were two ex grata payments which related to termination payments

NOTE 21 SUBSEQUENT EVENTS

The MHRMB was not aware of any subsequent events

ACCOUNTABLE OFFICERS AND CHIEF FINANCIAL AND ACCOUNTING OFFICERS

Accountable officer’s and Chief Financial and Accounting officer’s declaration.

The attached financial statements for the MHRMB have been prepared in accordance with Standing Directions 4-2 of the Financial Management Act 1994, applicable

Financial Reporting Directions, Australian Accounting Standards including 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 accompanying notes, presents fairly the financial transactions during the year ended 31 October 2015 and financial position of the MHRMB at 31 October 2015.

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

We authorise the attached financial statements for issue on 11th December 2015.

Deborah Spring | Chairman Jonathon Hutchins | Chief Executive Officer Fiona Hammond | Chief Financial and Accounting Officer

11th December 2015 11th December 2015 11th December 2015


DISCLOSURE INDEX

LEGISLATION REQUIREMENT PAGE NO

Accountable Officers Declaration

SD 4.2 (j) Sign off requirements 2

Charter and Purpose

FRD 22F Objectives, functions, powers and duties 8

FRD 22F Manner of establishment and responsible Minister 8

FRD 22F Nature and range of services provided 11

Financial Information

FRD 22F Operational and budgetary objectives 14-17

FRD 22F Summary of financial results 12

FRD 22F Major changes or factors affecting performance 12

FRD 22F Subsquent events 12

FRD 22F Significant changes in financial positionduring the year 12

Governace and organisational structure

FRD 22F & SD 2.2(f) Organisational structure 19

FRD 22F Occupational health and safety policy 18

FRD 22F Employment and conduct principles 18

FRD 29 & 22F Workforce data disclosures 18

Other Information

FRD 10 Disclosure index 84

FRD 25 Victorian Industry Participation Policy disclosures 46

FRD 22F Details of consultancies in excess of $10,000 13

FRD 22F Details of consultancies under $10,000 13

FRD 22F Disclosure of government advertising expenditure 13

FRD 12A Disclosure of major contracts 13

FRD 22F Application and operation of Freedom of Information Act 1992 46

FRD 22F Compliance with Building Act 1993 33

FRD 22F Statement on National Competition Policy 45

FRD 22F Application and operation of Protected Disclosures Act 2012 46

FRD 22F Summary of environmental performance 40-42

FRD 22F Statement of availabilty of other information 46

SD 4.5.5 Risk management compliance attestation 44

MRO Compliance with VicData access policy 46

SD 4.5.5.1 Insurance attestation 44

PC 2012/02 Gifts, benefits and hospitality attestation 18

SD 4.2(g) General Information requirements Entire Document

Legislation

Alpine Resorts (Management) Act 1997 8

Building Act 1993 33

Financial Management Act 1994 2

Freedom of Information Act 1982 46

Protected Disclosures Act 2012 46

Victorian Industry Participation Policy Act 2003 46

Print and Design

FRD 30B Standard requirements for the design and print of the annual report Entire Document

Acronyms FRD - Financial Reporting Direction SD - Standing Direction MRO - Model Report of Operations PC - Premier’s Circular

Cover 300gsm Ecostar Uncoated Text 140gsm Costar

An electronic copy of this document is available at www.mthotham.com.au

Designed by JDdesign

Printed by PMI

Copyright State of Victoria, Mt Hotham Resort Management Board, 2015. This publication is copyright. No part may be reproduced by any process except in accordance with the provision of the Copyright Act 1968.

Print ISSN 2201-3482

Online ISSN 2201-3512

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