2015 Annual Report - Parliament of Victoria - Home · Southern Metropolitan Cemeteries Trust 2015 Annual Report visionary ‘garden rooms’ for burial and cremation memorialisation

2015 Annual

Report

Honouring and celebrating choice

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Southern Metropolitan Cemeteries Trust 2015 Annual

Report

strategies in action 2

the trust at a glance 6

goVernance anD accountaBilitY 11

Strategic Priority 1 Financial Performance 17

Strategic Priority 2 Growth 22

Strategic Priority 3 External Stakeholder Engagement 26

Strategic Priority 4 People and the Organisation 33

Strategic Priority 5 Brand Development 39

Strategic Priority 6 Operational Excellence 44

Strategic Priority 7 Information Technology 47

Strategic Priority 8 Land Use and Development 49

Strategic Priority 9 Social and Environmental Responsibility 52

SMct Looking ahead 57

FinanciaL StateMentS 59

Strategies

in action

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It is with pleasure that we present the fifth Annual Report for the Southern Metropolitan Cemeteries Trust (SMCT).

FY 2014/15 has been a year of outstanding achievements, with SMCT significantly transforming our assets and firmly acknowledged as an industry innovator.

Our strategic approach to growth has been informed by a deep understanding of community attitudes and beliefs and we have invested significantly in research and community engagement practices to achieve a predictive analysis capability that helps inform our strategic decisions.

SMCT’s success is reflective of the value we place on serving our community and our absolute commitment to listening and responding to the beliefs, needs and expectations of our diverse customer base. Our extensive stakeholder engagement continues to facilitate the provision of innovative products and services to meet the ever changing needs of the communities we serve.

In FY 2014/15 we further consolidated our business strategy, as outlined in our 2012 - 2016 Strategic Plan, and placed considerable emphasis on the master planning of infrastructure at both Springvale Botanical Cemetery (SBC) and Bunurong Memorial Park (BMP).

Throughout the reporting period we continued to maintain a keen focus on the implementation of the Strategic Plan, across its nine overarching Strategic Priorities:

1. Financial Performance 2. growth 3. external Stakeholder engagement 4. People and the organisation 5. Brand development 6. operational excellence 7. information technology 8. Land Use and development 9. Social and environmental responsibility

SMCT’s 2012-2016 Strategic Plan focused on cementing strong foundations and strengthening the organisation’s fundamental capabilities. Through the successful implementation of this plan, we have established stakeholder engagement frameworks, consolidated SMCT as a strong, innovative and progressive brand, established a robust Information and Communication Technology platform, embedded a customer centric culture, strengthened financial performance and grown our Perpetual Maintenance Fund.

We understand that for SMCT to grow, we need to focus on creating ‘added value’ for our entire stakeholder network. To this end, SMCT has been intent on adding value to all stakeholders, including Government, communities, industry partners, funeral directors, service providers, other cemeteries in the sector and our employees.

SMCT’s flagship locations have steadily evolved as multi-purpose destinations, designed for wider community use and enjoyment. Our intent is to further develop our key locations as multi-asset memorial parks, in support of our key objectives

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of demystifying cemeteries and responding to community needs.

In keeping with our embedded customer centric culture, a significant focus for SMCT during the reporting period was providing our customers with choice and flexibility in the way they wish to honour and celebrate life.

SMCT believes that every person, regardless of religion, culture or personal preferences, needs to be treated with genuine respect and be given the opportunity to pause, reflect and make their own choices.

Recognising that our people are our greatest assets, a key objective of FY 2014/15 has also been to focus on growing our employees’ capabilities to enable a creative, innovative, agile and high-performance culture. This will enable the achievement of strategic objectives and the realisation of the Trust’s goals and aspirations.

In FY 2014/15 we have again placed emphasis on our long-term objective of ensuring business sustainability, whilst balancing this objective with the need to continually enhance our understanding of our communities and the ever-changing landscape we operate within. As Australian demographic trends move towards an increasing ageing population, and with significant changes in migration patterns resulting in highly diverse communities, it is vital that SMCT remains agile in order to anticipate changing needs and is responsive in our service offerings.

during Fy 2014/15, SMct achieved an income of $59.5M, which is $4.6M above budget (8.4%).

This result reflects SMCT’s commitment to stakeholder engagement, the provision of innovative products and services, together with proactive sales, consumer insights and marketing strategies and our diligent review of expenditure.

The strategic decision to bring catering in-house, followed by the FY 2014/15 opening of SBC’s Clarence Reardon Centre, with its expanded function capacity, has proven an outstanding

success. Catering and retail revenue generated by SBC’s Café Vita et flores exceeded budget, with the result also driven by our expanded multi-cultural function menu offerings, which further embraced community preferences. Cafe Vita et flores revenue represented an increase in revenue of 24% over FY 2013/14.

Mausolea sales exceeded expectations, following the construction of SBC’s Saint Padre Pio Mausoleum, with all positions sold within the reporting period. Overall mausolea sales contributed 21% of SMCT’s consolidated revenue.

The focus on the sale of pre-need graves packages continued in FY 2014/15, with overall grave package revenue grown by $3.7m, from which 70% has been achieved through pre-need sales. This result was particularly driven by progressive marketing strategies, which promoted the risk-free advantages of planning ahead with a not-for-profit community cemetery, as opposed to alternative pre-need products in the marketplace.

SMCT understands that the value we generate extends beyond our financial performance. Accordingly, the following summary outlines FY 2014/15 achievements that have added shared value to SMCT and to our extended stakeholder network:

•The successful completion of construction of SBC’s world-class Clarence Reardon Centre (CRC), with the official opening conducted by Ms. Elizabeth Miller MP in August 2014. Built to meet the growing needs of our communities well into the future, the CRC provides seven multi-purpose function rooms, full in-house catering by Cafe Vita et flores, state-of-the-art audio visual equipment, a contemporary cafe-florist concept, a children’s playground, administration offices and an employee training centre. This progressive facility has been embraced by the community, with function numbers exceeding expectations. The introduction of innovative initiatives such as

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Sunday Jazz and special luncheon events has seen ever-increasing members of the community visiting SBC for recreational purposes.

•The complete refurbishment of SBC’s original function and cafe building into a state-of-the-art Customer Service Centre designed and equipped for client comfort and support.

•The unveiling of SMCT’s new Returned Services Memorial at SBC, fulfilling the vision of former Trust member, John Saddington, to make provision for expired tenure veterans’ remains to be transferred into perpetuity. The memorials, comprising two granite walls, were unveiled before dignitaries, including the then State Opposition Leader, and now Premier of Victoria, The Hon Daniel Andrews MP.

•The completion of Song He Yuan’s Feng Shui designed lakeside development at SBC, providing our Buddhist community with a range of new contemporary burial and cremation memorial opportunities positioned in beautifully landscaped waterside settings.

•The completion of construction of SBC’s long- awaited Saint Padre Pio Mausoleum, with sales initiated ‘off the plan’ prior to SMCT’s commitment to construction. The Italian community clearly demonstrated their acceptance of this prestigious 256-casket space mausoleum, with all positions sold in FY 2014/15.

•The major restoration of SBC’s contemporary and visionary Luculia Memorial Garden, featuring sandstone burial walls, striking sculptures and interments within unique ‘botanical rooms’.

•In collaboration with Victoria’s Jewish community, the restoration, re-dedication and re-consecration of Metaher House at SBC, which was the first denominational building constructed at SBC.

•The completion of several heritage restoration projects at Melbourne General Cemetery (MGC), supported by government funding assistance.

•The continued implementation of our digital communications strategy, with additional innovations including the development and launch of our dedicated Cafe Vita et flores website, robust e-commerce solutions, the development of an SMCT smartphone app and the enhancement of existing interactive digital screens, which allow SMCT to capture key client data to increase engagement through digital channels.

•Enhanced stakeholder engagement, involving extensive community presentations and consultations with peak bodies, local governments and various community, faith and cultural groups. This engagement has provided SMCT with invaluable insights and provided our stakeholders with ongoing opportunities to input into the development of our locations.

•Extensive in-house training, together with the introduction of SMCT’s information-sharing platform, The Listening Post, which supported our shift to greater customer centricity and ensured the customer experience remains the central focus for all employees.

•In FY 2014/15, customer feedback surveys resulted in a Net Promoter Score (NPS) of 68 for SMCT. We are delighted to have more than doubled the feedback from FY 2013/14, which is again testament to our focus on customer centricity.

•The commencement of Stage One construction of BMP’s major redevelopment. Designed to become Victoria’s memorial park of the future, BMP will be a timeless, transformational, multi-purpose community asset. This visionary development will deliver new administration facilities, three chapels, five function rooms, a customer care centre, a contemporary café/ florist concept, a children’s playground, two Multifaith solace rooms and a memorial bridge, all set within a contemporary Australian landscape. It will also feature a series of

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visionary ‘garden rooms’ for burial and cremation memorialisation and a number of dedicated burial areas for specific cultural groups. Transitioning this development to operations and activating the community spaces will be a key focus moving forward.

With SMCT’s foundations solidly in place and given the changing environmental conditions in which we operate, the Trust has reviewed its ‘rolling’ 2012-2016 Strategic Plan. With the need to remain agile, innovative, outward looking and dynamic across all levels of the organisation, the Trust, together with the Executive Leadership Team, has now developed SMCT’s 2016-2020 Strategic Plan.

We again extend our formal thanks to the Victorian Department of Health and Human Services (DHHS) for the ongoing provision of invaluable guidance and feedback on the Act and the governance of SMCT. The Trust has a strong relationship with DHHS, based on mutual respect, and we are committed to continuing to work collaboratively in charting the course forward to enable sustainability value generation for the communities that we serve.

We thank and acknowledge our employees, whose tireless efforts are enormously appreciated, especially during this milestone year of intensive activity. Strong employee engagement has ensured that excellent standards have been maintained across the organisation and that our ongoing commitment to customer care is highly valued.

We would also like to thank Mr Jonathan Tribe who resigned as the CEO in September 2014. Jonathan was appointed in March 2011 and his contribution over this period at SMCT has left a strong legacy, including the establishment of SMCT’s Five-Year Strategic Plan and the Master Planning of SBC and BMP. Jonathan’s experience and commitment to the development of the organisation has been highly valued.

With the farewell of Jonathan Tribe, the role of CEO was advertised externally and a recruitment and selection process was undertaken. This process was led by the Chairman and involved

the Executive Remuneration and Appointment Committee making a final recommendation to the Trust and Government. Following their endorsement, Ms Jane Grover was appointed as CEO in December 2014.

In closing, we thank our current Trust Members and our Executive Leadership Team, who have guided us in fostering a dedicated customer centric culture and have ensured that the products and services we offer remain responsive to the communities we serve. We also thank them for ensuring that our client families receive the ultimate respect and consideration when entrusting their loved ones into our care.

Our commitment to customer care was exemplified during this year, with SMCT deeply honoured when the family of Australia’s 22nd Prime Minister, The Right Honourable Malcolm Fraser, AC, CH, GLC, chose to memorialise this notable Australian within MGC’s Prime Ministers’ Garden.

This report reflects on the commitment the organisation has to our people in building capability and being an innovator of choice. SMCT’s targeted Strategies in Action have been pressure tested by our Community Advisory Committee, overwhelmingly embraced by the community and delivered strong revenue growth. SMCT is excited about our future and is committed to delivering ethical products and services that reinforce the organisations Values with a clear sense of Purpose.

Sue renkin Trust Chairman

Jane GroverCEO

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The Southern Metropolitan Cemeteries Trust (SMCT) was formed under the Cemeteries and Crematoria Act 2003 (Vic).

SMCT’s corporate office is located within the grounds of Springvale Botanical Cemetery, Princes Highway, Springvale, Melbourne, Victoria.

SMCT is a not-for-profit organisation accountable to the Department of Health and Human Services (DHHS) and is responsible for the care and maintenance of eight distinctive cemetery locations dedicated to honouring and celebrating life.

oUr PUrPoSeWe believe that every person, regardless of their religion, culture or personal preference, should be able to honour and celebrate their loved one in a way that they choose.

oUr ViSionWe will set the standard by providing our communities with world-class services and facilities across every aspect of our business. We will also create and nurture sustainable, beautiful, iconic and distinctive locations to honour and celebrate life.

Pride in oUr VaLUeSAt each and every cemetery within our care we pledge to each other and to our clients that we will act with PRIDE.

commitment in heart and mind

by valuing every voice

doing what is right

to the needs of our clients and our people

to listen and reflect with sensitivity

PASSION

RESPECT

INTEGRITY

DEDICATION

EMPATHY

The Trust

at a glance

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the ceMeterieS Within oUr care

Melbourne cBd

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SMCT is currently governed by a board of eight highly skilled and experienced Trust members who bring a balance of not-for-profit, public and private sector experience. The Trust, led by Chairman Ms Sue Renkin, report to the Minister for Health, The Hon. Jill Hennessy MP, through the Cemeteries and Crematoria Unit of the Department of Health and Human Services (DHHS).

The Trust is responsible for setting the overall strategic direction of the organisation and the Trust members bring a great deal of breadth and depth in their respective fields of expertise to addressing emergent strategic conditions.

Trust members hold office for a maximum tenure of three years and are eligible to apply for reappointment. All appointments are made by the Governor-in-Council on the recommendation of the Minister for Health.

In August 2014 terms expired for three Trust members; Richard Jones, Gaye Mason and Stephen Shipp.

The DHHS subsequently conducted interviews, in conjunction with SMCT Chairman Ms Sue Renkin, for potential new Trust appointments. All three Trust members were reappointed for 17 month terms.

SMCT welcomes new Trust member, Matthew Mills MAICD, who was appointed for a three year term commencing 1 September 2014.

During the reporting period the Trust built on strong foundations to further drive the development of the organisation’s capabilities. The Trust’s strategic approach to growth is based on stakeholder engagement and understanding the current and future needs of Victorians to ensure that we continue to serve our diverse communities

oUr trUSt MeMBerS• Trust Chairman - Sue Renkin, BBS, MBA, Grad. Dip.Corp.Gov., MAICD, FCDA.

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

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

• Stephen Shipp, B.Ec., LL.B.

• Julie Busch, BA, Grad.Cert.Shop.Cen.Man., Grad. Dip. Bus, MAICD.

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

• Felicity Frederico, BBus. (Mktg), MAICD.

• Matthew Mills, MAICD.

SMCT Trust

members


Report

SMct’S organiSationaL StrUctUre

Chief Executive Officer

The Southern Metropolitan Cemeteries Trust

Minister for HealthDepartment of Health and Human Services

Director-Capability, Communication & Engagement

GeneralManagerCustomer

&IndustryIntelligence

GeneralManagerMarketing,PR

&Communications

GeneralManagerPeople&Capability

Health,Safety&WellbeingCoordinator

Director - Finance & Business

Services

FinancialController

ITManager

ProcurementManager

RecordsManager

Risk&ComplianceManager

FinancialAnalyst

Director -Customer

Experience

OperationsManagerEasternRegionSBC,

BMP&DCC

OperationsManagerWesternRegionCMP,CPC,BGC,STK&MGC

Sales&CustomerServiceManagerSBC

Sales&CustomerServiceManagerBMP,CMP,BGC,MGC&STK

Food&BeverageManager

Director -Infrastructure

LandUtilisation&PlanningManager

ProjectManager

SeniorProjectManager

AssetDivisionManager

Manager - Strategy Formulation

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Established 1 March 1854 1995 1933 1865 1857 1852 1901 1855

2010

Hectares 379 hectares 12 hectares 101 hectares 20 hectares 3 hectares 4 hectares 43 hectares 169 hectares 7 hectares

(945 acres) (30 acres) (251 acres) (50 acres) (5 acres) (11 acres) (106 acres) (422 acres) (18 acres)

Employees FTE 256.13 2 24.4 19.2 0.0 0.0 2.5 208.3 0.0

Number of Cremations 9,127 N/A 2,129 N/A N/A N/A N/A 6,998 N/A

Number of Interments 3,281 134 377 366 22 27 221 2,123 11

Operating Revenue $59,507,262 $1,453,724 $7,021,049 $3,157,695 $200,357 $497,746 $5,691,222 $40,848,071 $637,429

Community Events Held -- Yes Yes Yes Yes No Yes Yes Yes

ProFiLe and PerForMance oF SMct LocationS

Strategic PrioritieSSMCT’sStrategicPlan2012–2016wasdevelopedbytheTrustandExecutiveLeadershipTeamtoprovideaclearfocusfortheorganisationandisusedtoestablishourAnnualPlansandObjectives.TheStrategicPlanhasnineoverarchingStrategicPriorities,whichareidentifiedasbeingcriticaltothesuccessfulachievementofourlonger-termobjectives.

OurnineStrategicPrioritiesformthestructureofthisreport,asfollows:

1. Financial Performance 2. Growth 3. External Stakeholder Engagement 4. People and the Organisation 5. Brand Development 6. Operational Excellence 7. Information Technology 8. Land Use and Development 9. Social and Environmental Responsibility

ThisreportwillstartwithGovernanceandAccountability,whichoutlinesourenduringresponsibilitiesinrelationtotheeffectiveandefficientmanagementofthecemeterylocationswithinourcare.SubsequentsectionswillcovertheStrategicPrioritieslistedabove.

during the reporting period SMct performed 12,208 services.

Services Performed during the Reporting Period 1 July 2014 – 30 June 2015

Cremation 8,931

Interment in graves 3,045

Interment in mausolea 232

Southern Brighton Bunurong cheltenham cheltenham dandenong Melbourne Springvale St kilda Metropolitan general Memorial Memorial Pioneer community general Botanical cemetery cemeteries cemetery Park Park cemetery cemetery cemetery cemetery trust

Governance and

accountability

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Southern Metropolitan Cemeteries Trust (SMCT) is a not-for-profit, community focused organisation, providing burial, cremation and memorialisation services for metropolitan Melbourne and Victoria. SMCT’s locations will continue to evolve as multi-purpose destinations, designed to support broader community needs. We are responsible to the Minister for Health, the Hon. Jill Hennessy MP, who has entrusted SMCT to manage the locations for which we are responsible.

Corporate governance is at the core of the Trust’s approach to the effective and efficient management of our cemetery locations in the public interest.

The Trust has an ongoing responsibility for:

• Steering the strategic direction of the organisation. • Ensuring that governance arrangements are maintained, together with sound financial management and best practice asset management. • Ensuring statutory and regulatory obligations are met and that the organisation’s risk management systems are active and effective. • Overseeing and appraising the performance of the organisation.

SMCT also fully recognises its perpetual maintenance obligations and ensures that funds are set aside for our cemetery locations to be maintained in perpetuity for future generations. To fulfil these responsibilities, and to ensure SMCT is governed and managed in an accountable and responsible way, the organisation maintains a robust corporate governance framework.

This corporate governance framework ensures that we: • Recognise the importance of consulting and engaging with the community. • Act in a truly customer centric manner in everything we do. • Understand our current and future roles and responsibilities.

SMCT’s Corporate Governance Practices include:

• Transparent and accountable management processes. • Decision making which is ethical, fair and equitable. • Oversight of stakeholder and community engagement. • Sustainable planning, financial management and service delivery. • Outcome and value based performance management. • Prudent management of information. • Considered risk identification and mitigation. • Diligent and ongoing commitment to legislative compliance and internal controls.

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

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trUSt coMPoSition Details of Trust members who held office during the year are listed in this report under the section ‘Trust at a Glance’. The composition of the Trust reflects the broad expertise required to oversee SMCT’s obligations.

indePendence oF trUSt MeMBerS Each year, Trust members and the Executive Leadership Team are required to complete a Declaration of Pecuniary Interest statement. There is a Code of Conduct Policy for Trust members and employees. Declarations of conflict of interest were required at the beginning of each Trust and committee meeting in line with the Code of Conduct and Conflict of Interest policies.

trUSt coMMitteeS In consultation with the Trust, the Chair allocated members to a number of Trust Committees.

These help to execute Trust responsibilities in a review or advisory capacity unless given other powers by the Trust. Meeting frequency is outlined in the committee’s respective Charters. Each committee has a Charter and self-evaluates its performance annually.

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

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

Finance and inVeStMent coMMittee The Finance and Investment Committee, chaired by Mr Richard Jones, has an advisory role, assisting the Trust in fulfilling its financial management, planning and major financial decision making functions. It also provides direction and oversight of SMCT investments.

Community Advisory Committee (CAC) The Community Advisory Committee (CAC) performs a highly valued advisory role for the Trust with respect to its community engagement commitments and priorities. The CAC meets bi-monthly and comprises 10 members. Chaired by Cr Felicity Frederico, the CAC’s expertise is drawn from local and state government, interfaith networks and key multicultural and religious organisations. CAC members offer a truly diverse perspective providing the organisation with key insights into the evolving requirements and expectations of the communities we serve.

Trust

Audit & Risk Committee

Community Advisory Committee

Finance & Investment Committee

Executive Remuneration & Appointment Committee

Infrastructure Planning Committee

Combined Infrastructure & Finance Investment Committee meeting

totaLS

12 11 12 12 12 11 12 11 12 11 12 11 12 11 10 9

5 2 5 5 5 5 1 1 5 4 1 1 5 5

6 6 6 5

11 10 11 11 9 7 9 9 2 2 2 2 9 9

1 1 1 1 1 1

2 1 1 1 2 2 1 1 2 2 2 1

1 0 1 1 1 1 1 1 0 1 1 1 1 1 1 1

32 25 30 30 27 24 25 24 26 25 23 21 21 20 22 20

S.renkin r.Jones g.Mason S.Shipp J.Busch F.Frederico P.davies M.Mills*

ParticiPation Within SchedULed MeetingS# Period: July 2014 – June 2015

#The first column for each member indicates the actual number of meetings during their time on that committee. The second column reflects the number they actually attended. Trust members are welcome to - and often attend - other committee meetings. * Matthew Mills commenced as a Trust member on 1st September 2014

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execUtiVe reMUneration and aPPointMent coMMittee The Executive Remuneration and Appointment Committee, chaired by Ms Julie Busch, has an advisory role, supporting the Trust and providing expertise in the areas of executive remuneration, performance management and the organisation’s human resource framework.

inFraStrUctUre PLanning coMMittee A key imperative of SMCT’s Strategic Plan (2012 – 2016) is to review SMCT’s current land holdings and to develop master plans for each location. SMCT’s Infrastructure Planning Committee, chaired by Mr Phillip Davies, has an advisory role, assisting the Trust in fulfilling its infrastructure planning and major capital works projects, including the delivery of the major development of Bunurong Memorial Park.

PerForMance eVaLUation The Trust is committed to maintaining the highest standards of governance and has a policy of regularly reviewing the Trust and its committees’ performance. A formal self-assessment is conducted each year to assess the effectiveness against specific objectives of the Trust and sub-committee Charters.

ManageMent coMMitteeS A number of management committees met regularly to promote good governance, maximise operational efficiency and enhance cross-functional communication.

eMPLoyee riSk ManageMent coMMittee The Employee Risk Management Committee (RMC) comprises representatives from all functional areas of the business. It met monthly to consider the organisation’s risk profile and to review all controls to assess their effectiveness.

At each stage of the risk management process, the RMC is responsible for communicating and consulting with stakeholders. All employees are responsible for identifying and reporting risk.

The RMC’s monthly agenda included regular reviews and ‘desk top’ testing of the Business Continuity Management and Disaster Recovery Plans, as required under the Minister’s Directions under the Financial Management Act 1994. The Director of Finance and Business Services chairs the RMC and escalates any emerging high risks to the Executive Leadership Team.

Risk Registers of all high and strategic risks are submitted to the Audit and Risk Committee for escalation to Trust as necessary.

heaLth SaFety WeLLBeing coMMittee The Workplace Health & Safety Committee (WHS), now retitled the Health Safety Wellbeing Committee (HSW Committee), is chaired by the Director of Capability, Communication and Engagement who will escalate any new high or outstanding issues to the Executive Leadership Team.

It was convened 11 times during the reporting period, ensuring SMCT exceeded its obligations under the Victorian Occupational Health and Safety Act 2004 (Vic) and the SMCT HSW Management Framework.

eMergency PLanning coMMittee During the reporting period, the Emergency Planning Committee (EPC) reviewed Emergency Response Procedures, ensured the appropriate training of the Emergency Control Organisation Wardens and First Aiders and conducted evacuation exercises as required by the Australian Standard AS 3745-2010. The Committee met quarterly during the reporting period to ensure that all employees could be safely evacuated in

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the unlikely event of an emergency at any of the occupied locations. This committee is chaired by the Risk and Compliance Manager.

The EPC is also responsible for ensuring that the appropriate number of First Aiders and Wardens attend public events at SMCT’s cemetery locations.

it Steering coMMittee The IT Steering Committee convened quarterly during the reporting period, and was chaired by the Director of Finance and Business Services. The committee has continued to provide input and direction on IT services in accordance with relevant departmental needs. The outcomes of committee meetings have also provided input into longer-term IT strategy.

SUStainaBiLity coMMittee The SMCT Sustainability Committee, chaired by the Director of Infrastructure, has 10 members from various SMCT departments and locations. The aim of the committee is to both educate and develop sustainable practices across all SMCT locations.

The committee proactively engages with SMCT employees and the wider community, particularly in the areas of water conservation, recycling, energy efficiency and reducing our overall carbon footprint.

The Sustainability Committee provides a framework for the future direction and ongoing organisational commitment to environmental sustainability.

conSULtatiVe coMMitteeS SMCT’s three Consultative Committees: Bunurong, Brighton and Cheltenham ‘Outdoor’; Springvale ‘Outdoor’; and Springvale ‘Indoor’, provided forums for open communication between leaders and employees. In total, the Consultative Committee met nine times during the reporting period.

Managing riSk During the reporting period, all leaders were formally engaged in identifying strategic opportunities and risks.

The Risk Appetite Statement, approved by the Trust, sets the agreed parameters and boundaries under which the organisation may operate.

coMPLiance The principle guiding Act for the cemeteries sector is the Cemeteries and Crematoria Act 2003 (Vic). The Act was revised in 2015 to provide for cremated remains of identified veterans to be converted from limited rights of interment (25 years) to perpetual rights, and to provide for the re-interment of other veterans and their family members in certain circumstances.

Under section 15 of the Cemeteries and Crematoria Act 2003 (Vic), the Trust is able to delegate certain

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operational functions and powers. An Instrument of Delegation of Functions and Powers delegates such allowable functions to classes of managers or employees and this instrument is renewed as required due to changes in Trust and operational practices.

BUiLding act 1993 All new work and the redevelopment of existing properties conform to the Building Act 1993 (Vic), The Building Regulations 2006 (Vic), and the Building Code of Australia (BCA). The Annual Safety Measures Compliance Report is signed by Management in June each year and ongoing compliance is monitored by the Emergency Planning Committee, thereby providing an additional layer of cross checking to support workplace health and safety.

FreedoM oF inForMation SMCT’s Risk and Compliance Manager, Ms Gillian Kearns, was the Principal Officer for Freedom of Information (FOI) applications during the reporting period. There was one FOI application in FY 2014/15. It should be noted, however, that in compliance with the spirit of the FOI legislation, all reasonable requests for records of the deceased are granted as required under the Cemeteries and Crematoria Act 2003 (Vic) Sections 59 and 60.

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

Victorian indUStry PArtiCiPAtion PoliCy (viPP)

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

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

PriVacy LegiSLation The SMCT Privacy Policy was revised during the period to reflect the change of name of the Information Privacy Act 2000 (Vic) to the Privacy

and Data Protection Act 2014 (Vic), enacted to strengthen the protection of personal information and other data held by the Victorian public sector.

Whilst information about a deceased person is not Personal Information for the purposes of the Privacy and Data Protection Act 2014 (Vic), SMCT ensures that the privacy of persons still living is protected where their identity and personal information can be reasonably ascertained from supplying the public information regarding a deceased person as required by the Cemeteries and Crematoria Act 2003 (Vic).

Protected diScLoSUreS SMCT complies with the provisions of the Protected Disclosures Act 2012 to encourage and facilitate disclosures of improper conduct of public officers or bodies and to provide protection to persons making such disclosures from detrimental action. No disclosures were made during the reporting period.

decLarationS oF PecUniary intereStS Trust members and the executive staff have completed declarations of pecuniary interests.

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

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

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

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contracts Value of area Local Fte Jobs Fte apprenticeships Skills/technology contracts content committed committed commitment

BronzePlaques

Bunurong

MemorialParkConstructionServices

$5,276,161(over4years)

$37,014,113

Metropolitan

Metropolitan

100%

89.53%

5

12

1

4

Contractorhasmadecommitmenttoupskillworkforce&added1apprenticeship.

Contractorhasmadecommitmenttoprovideskillsdevelopmentofapprentices,andmonitortheirtraining.

Victorian indUStry ParticiPation PoLicy taBLe

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Southern Metropolitan Cemeteries Trust’s (SMCT) financial performance objectives are focused on ensuring that the revenue and margins generated by the organisation exceed ongoing operating costs, as well as adequately providing for pre-need commitments and the organisation’s perpetual maintenance obligations. Financial sustainability is paramount and we achieve this by ensuring we remain responsive in our service offering by providing relevant products and services to meet the needs and expectations of the communities we serve.

Since the formation of the Trust in March 2010, our success has been driven by our business strategy. This is underpinned by a focus on identifying and mitigating risks to ensure sustained growth to meet our perpetual maintenance obligations.

Our strategic approach is built on the foundations of anticipating changing conditions and providing innovative, value-added products and services to meet our communities’ expectations.

During FY 2014/15, our continued focus was on the growth of pre-need revenue, predominantly via the construction of the new Saint Padre Pio Mausoleum at Springvale Botanical Cemetery (SBC), following consultation with the Italian community. In addition, following engagement and consultation with the Asian community, SMCT developed and released the next stage of SBC’s Feng Shui designed Song He Yuan Buddhist cemetery.

During the reporting period, SMCT’s retail operations have seen consistent growth, with the opening of SBC’s Clarence Reardon Centre (CRC), incorporating Café Vita et flores and seven function rooms.

FinanciaL rePort The financial report covers a 12 month reporting period from 1 July 2014 to 30 June 2015, with last year’s comparative numbers covering a 12 month period from 1 July 2013 to 30 June 2014.

FinanciaL PerForMance Revenue from cemetery operations generated $59.5 million, with expenditure from cemetery operations amounting to $36.1 million, generating a positive operating result of $26.9 million. This is after the impact of the payment of the 3% cemetery levy to the Victorian Government of $2.2 million and represents an increase of 9.4% over FY 2014/15.

During the reporting period, SMCT investments have increased by $8.4 million to $207.9 million, largely due to the fluctuating economic climate and a change of investment manager at the beginning of the year.

Gross operating margin for the period was $50.1 million with major revenue streams being: • Sales of graves contributing around 31.2% or $18.6 million of total income. • Mausoleum sales representing 21.1% of total income ($12.6 million). • Cremation revenue contributing $6.7 million, with the cremators at Bunurong Memorial Park (BMP) and SBC having performed almost 50% of metropolitan Melbourne’s cremations during the reporting period. • The continued focus on the sale of pre- need services has resulted in unearned income increasing by $3.7 million to $30.5 million.

Strategic priority

one Financial Performance

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Operating expenses (excluding cemetery levy and investment management fees) amounted to $33.4 million, with just over 60% representing salaries and wages.

During the financial year the expenditure on capital works and projects amounted to $33 million. Major capital works during the period included SBC’s new Clarence Reardon

Centre, SBC’s new Customer Service Centre, infrastructure works for the BMP Master Plan, continuing works at SBC’s Song He Yuan and the construction of the new Saint Padre Pio Mausoleum at SBC. More comprehensive information about these capital works projects is provided throughout this report, particularly under the section ‘Land Use and Development’.

2014/15 2013/14 2012/13 2011/12

operating Statement

Cemetery operations income $59,507 $51,352 $47,781 $46,979

Cost of Goods Sold ($9,429) ($6,174) ($5,995) ($6,451)

Investment Income $12,951 $13,323 $10,428 $7,539

Operating expenses ($33,978) ($31,997) ($29,375) ($28,092)

Cemetery Levy ($2,156) ($1,932) ($1,737) ($1,642)

Operating Result $26,895 $24,572 $21,103 $18,333

Other Comprehensive Income/(Loss)* $23,088 $18,678 $18,164 ($20,520)

Comprehensive Result for the Period $49,983 $43,250 $39,267 ($2,187)

Balance Sheet

Assets

Investments/Investment Property $210,462 $202,251 $177,091 $152,873

All Other Assets $150,877 $128,706 $107,100 $91,326

total assets $361,339 $330,957 $284,191 $244,199

Liabilities

Unearned Income $30,524 $26,870 $23,670 $21,354

All other Liabilities $9,060 $8,897 $8,581 $10,176

total Liabilities $39,584 $35,767 $32,251 $31,530

Equity

Perpetual Maintenance Reserves $237,288 $195,801 $175,767 $155,671

Other Equity $84,467 $99,389 $76,173 $56,998

total equity $321,755 $295,190 $251,940 $212,669

summAry of finAnCiAl results for the PAst three finAnCiAl Periods ($000)

* Comprehensive Income/ (Loss) includes any impairment gains/losses on for investments held for sale, and for 2014/15 includes the realised profit on sale of investments during the changeover of investment managers.

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FinanciaL PerForMance oBJectiVeS

In FY 2014/15 SMCT’s cemetery operations result was $6 million higher than budget. The main driver for this result was the unprecedented sales of SBC’s Saint Padre Pio Mausoleum. Although it was budgeted for some sales to occur in FY 2015/16, all crypts were sold during this reporting period.

Grave sales across other locations also contributed to the result, particularly at SBC’s Song He Yuan. This excellent sales result has, in turn, led to higher than budgeted cost of goods sold.

Investment income reflects interest ($0.7 million), franking credits ($1.2 million) and the distributions received from SMCT’s investment portfolio ($11.0 million).

2014-2015 2014-2015 2014-2015 2013-2014 2013-2014 2013-2014 actual Budget Variance actual Budget Variance

Cremations 8,932 8,986 (54) 9,127 9,045 82

Interments 3,839 3,672 167 3,281 3,242 39

Cremation Conversion Rate* 23.2% 23.4% (0.2)% 24.1% 22.2% 1.9%

Cremation Memorial Sales ($) $5.2m $5.4m ($0.2m) $5.2m $5.4m ($0.2m)

Mausoleum Crypt Sales ($) $12.6m $9.0m $3.6m $5.9m $5.2m $0.7m

Grave Sales ($) $18.6m $17.6m $1.0m $18.5m $16.2m $2.3m

oPerationaL PerForMance oBJectiVeS

coMPariSon oF actUaL vs. Budget for the 12 month Period ending 30 June 2015 ($000)

Actual Budget Variance

CemeteryOperationsRevenue $59,507 $54,892 $4,615

CostofGoodssold ($9,429) ($6,585) ($2,844)

InvestmentIncome $12,951 $8,222 $4,729

TotalRevenue $63,029 $56,529 $6,500

OperatingExpenses ($33,978) ($33,762) (216)

OperatingResultbeforeCemeteryLevy $29,051 $22,767 $6,284

CemeteryLevy ($2,156) ($1,879) ($277)

OperatingResult $26,895 $20,888 $6,007

*Number of memorials divided by number of cremations

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Keytrendsandissuesthatinfluencetheseperformanceindicatorscanbesummarisedasfollows:

9,0459,1278,9868,932

2014 - 2015 2013 - 2014

3,672

2014 - 2015 2013 - 2014

3,839 3,2423,281

$5.4M$5.2M$5.4M$5.2M

2014 - 2015 2013 - 2014

$5.2M$5.9M$?M$12.6M

2014 - 2015 2013 - 2014

Budget/TargetActual

2014 - 2015 2013 - 2014

$17.6M$18.6M $18.5M

CREmATIOnSSMCTperformed1%less(54)cremationsthantheperformancetargets.ThelowernumberofcremationsperformedbySMCTisduetotheoveralldecreaseincremationsacrossVictoria.

InTERmEnTSIntermentsperformed4.5%moreinterments(anadditional167)comparedtotheperformancetargetandanadditional488thanFY2013/14.WhilsttheoverallintermentnumbersacrossVictoriaweremarginallylowerthantheprioryear,SMCThascontinuedtoincreaseitsmarketshare.

CREmATIOn mEmORIAL SALESCremationMemorialSaleswere2.7%belowtheperformancetargethoweverexceededactualrevenuefromtheFY2013/14period.SMCTmaintainsitsobjectivetomeetourcommunities’ever-changingneedsinrelationtomemorialisation.

mAUSOLEUm CRyPT SALESCryptsaleswere40.3%aheadoftheperformancetarget.ThissignificantresultwasduetothesaleofallStPadrePiocryptsatSBCandcontinuedstrongdemandforcryptsatBMPandMGC.

GRAVE SALESGravesaleswere5.4%abovetheperformancetarget.ThisincreaseinsaleswasprimarilyduetoacommunitysaleatDCCandcontinueddemandforgravesatSongHeYuan.

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SUBSEqUEnT EVEnTS Therehavebeennosignificanteventssubsequenttobalancedateandpriortoauthorisationforreleasethatrequiredisclosureintheannualreport.

COnSULTAnTS InFY2014/15,therewerefourconsultancieswherethetotalfeespayabletotheconsultancieswere$10,000orgreater.Thetotalexpenditureincurred

duringFY2014/15inrelationtotheseconsultanciesis$96,375(excl.GST).

InFY2014/15,thereweresixconsultancieswherethetotalfeespayabletotheconsultancieswerelessthan$10,000.ThetotalexpenditureincurredduringFY2014/15inrelationtotheseconsultanciesis$32,184(excl.GST).

consultant Purpose of Start date end date total expenditure Future consultancy approved 2013-14 expenditure project fee

01/07/14 31/10/14 $34,545 $34,545 $0

01/01/15 31/05/15 $19,850 $19,850 $0

01/10/14 28/02/15 $12,585 $12,585 $0

01/04/15 30/06/15 $29,395 $29,395 $0

Ellis Jones

Invoke Performance

KLM Spatial

Urbis

Shared Services qualitative research

Strategic Capability review - BMP

Adverse Possession Survey

Land Purchase Investigation

ThE FUTURE ThedevelopmentofSMCT’snewStrategicPlanFY2016-2020hascreatedaframeworktofurtherexploreandleveragestrategicopportunitiesandtoidentifyandmanagestrategicrisksastheyemerge.

Duringthenextreportingperiod,SMCT’sfocuswillbeprimarilyontheorganisation’sdevelopmentofBMP,ensuringthesuccessfulcommissioningofthefacilitiesandtheoperationalisingofBMP’sservices.

Ourcontinuedfocusoncommunityengagementwillenableresponsiveproductdevelopmenttomeettheneedsofourdiversecommunities.TheseproductsandserviceswillpositionSMCTtoensurewemeetourfinancialperformancetargets.

FY2015/16willbeadecisiveyearasweinitiatethedeliveryofSMCT’s2016-2020StrategicPlan.ItwillalsobeayearofconsolidationtoallowfortheseamlessdeliveryofBMP’snewbusinessmodel,whichwhensuccessful,willprovidethemomentumforfuturesustainability.

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The Southern Metropolitan Cemeteries Trust (SMCT) recognises that to ensure long term sustainability, it is vital to identify and leverage opportunities for growth.

Recognising that our people are our greatest assets, a key objective during FY 2014/15 has been to focus on nurturing our employees’ capabilities and to embed a customer centric culture, which will further support the delivery of our growth strategies.

A key focus has also been to strengthen the strategic capability of the organisation to ensure SMCT is positioned for growth.

As a result of leveraging strategic capabilities during the reporting period, consolidated revenue totalled $59.51M, representing growth of $8.16M over the previous period.

With six of SMCT’s eight cemetery locations nearing ‘end of life’ in terms of available land, it is vital that growth strategies continue to provide adequate resources to cater for the long-term maintenance of these locations, to the standard the community expects and deserves.

MaUSoLea SaLeS -eXCeeding eXPeCtAtions As a result of SMCT’s comprehensive community engagement practices and our networks within the Italian community, we became aware of the demand for mausolea opportunities at SBC.


Report

Strategic priority

two growth

The ClarenCe reardon CenTre

Springvale Botanical Cemetery’s Clarence Reardon Centre

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SMCT subsequently worked closely with the Italian community and pledged to construct the high quality Saint Padre Pio Mausoleum should community demand be actively demonstrated.

In FY 2014/15 the Trust implemented a new sales strategy to ensure that the required level of demand was achieved prior to any financial commitment to the mausoleum. To this end, ‘off-the-plan’ sales were released prior to commencement of construction. The community clearly demonstrated their acceptance of this prestigious 256-casket space mausoleum, with all positions sold within the reporting period.

Mausolea sales contributed 21.1% of SMct’s consolidated revenue, 40% ahead of budget.

CAfÉ vitA et flores - retAil During FY 2014/15 SBC’s Clarence Reardon Centre (CRC) was opened by SMCT, featuring an expansive café and florist (Café Vita et flores) and seven flexible function rooms. The increased capacity provided by the CRC, coupled with the investment in highly qualified retail professionals, has provided significant growth in the retail area, compared to the previous financial year. Results reflect an increase in revenue of 23.6%.

As functions remain a key brand touch point for SMCT, we have diligently worked to ensure that our catering offerings continue to meet the varied expectations of our diverse multi-cultural customer base. Responding to this, Café Vita et flores offers an extensive range of customised cultural function menus.

As a key community asset, the facilities within the CRC will be continually positioned as multi-purpose facilities to accommodate a variety of community needs.

Saint Padre Pio Mausoleum

Springvale Botanical Cemetery’s new Saint Padre Pio Mausoleum

Function rooms

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$20,000,000

$18,000,000

$16,000,000

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$

Mausoleum Income Grave Income Cremation Memorial Income*

Retail Income

2014/15 BUdget

2014/15 actUaL

* Includes memorialisation income.

fy 2014/15 revenue PerformAnCe AgAinst Budget By revenue streAm:

PLanning For the coMMUnity’S FUtUre reQUireMentS

BUnUrong MeMoriaL Park With the iconic BMP now entering a mature stage in terms of available land, the Trust is acutely aware of the need to make key visionary and strategic decisions to ensure that SMCT is well positioned to continue to meet long term community needs.

With Bunurong Memorial Park (BMP) holding significant available land reserves, the Trust

established a clear vision for its redevelopment to ensure it did not simply replicate what had been built at other locations.

The largest and arguably the most visionary development within a cemetery location, it will deliver choice, flexibility and value to the community and provide ongoing growth for SMCT.

Bunurong Memorial Park’s central precinct

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Song he yUan - lAkeside develoPment In FY 2014/15, following close community consultation, Song He Yuan’s new Feng Shui lakeside area was constructed at SBC. Designed to service the needs of the Buddhist community for many years to come, it has been positively accepted as evidenced by strong pre-need commitment.

LUcULia MeMoriaL garden SMCT recognises that land is a valuable asset and as such, proactively reviews ageing areas to ensure that they are effectively and efficiently utilised. During the reporting period SBC’s Luculia Garden was significantly re-developed to ensure that:

• The area was presented according to brand requirements and maintained to community expectations.

• The visual amenity of the area was significantly improved, particularly in relation to existing memorials within the garden.

• There was a clear line of sight and appropriate acknowledgement of the Victoria Cross Memorial, adjacent to the Luculia Garden.

• There was a more acceptable yield in terms of land utilisation, through the inclusion of new cremation memorial and burial stock.

This multi-faceted project provided a growth opportunity for SBC by improving the efficiency of the use of the land.

a cUStoMer centric cULtUre Moving away from a traditional product/service focus, SMCT’s goal is to make the ‘customer experience’ the focal point for all employees.

To this end, resources were allocated across the organisation to ensure that our employees understood the significance of cultural change and our commitment to customer centricity.

We recognise that organisations can create a competitive advantage through short term growth strategies that focus on products and services. However, to create long term growth, we need to invest in our people to ensure a superior customer experience can be delivered at all times.

the FUtUre Moving forward SMCT will continue to nurture and develop capabilities, embed a common strategic focus and foster a culture of customer centricity. Through a shared vision and purpose, SMCT will remain relevant and agile in order to pursue strategic growth.

We also recognise that for SMCT to grow, we need to focus on creating added value for our entire stakeholder network.

SMCT’s main focus in FY 2015/16 will be the completion and opening of the BMP development. This significant project will provide opportunities for both community groups and industry partners and, as a multi-purpose community asset, further opportunities for growth.

We remain committed to pursuing pre-need revenue across our locations and to informing the community about the advantages of planning ahead with SMCT, as opposed to a number of pre-need alternatives currently in the market place.

We will also continue to foster a creative and innovative culture that is guided by our values. Coupled with our commitment to remain abreast of changes in the operating environment, SMCT will be ideally positioned to mitigate strategic risks and identify and leverage future opportunities for growth.

Song He Yuan’s lakeside development at Springvale Botanical Cemetery

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Listening and responding to our diverse communities’ evolving needs and expectations ensures that The Southern Metropolitan Cemeteries Trust (SMCT) continues to provide innovate products and services that meet their needs.

SMCT has a team of professionals with strong research and engagement capabilities. This enables the Trust to keep abreast of trends and to plan proactively to meet emerging conditions. This structured approach includes a systematic method of data collection and analysis, including customer feedback.

Stakeholder engagement and research projects undertaken during FY 2014/15 included:

• The redevelopment of Bunurong Memorial Park (BMP). • The construction of Springvale Botanical Cemetery’s (SBC) Saint Padre Pio Mausoleum. • The lakeside development of SBC’s Feng Shi designed Song He Yuan. • The value of memorialisation. • Demographic analysis - population growth and change. • Community product preferences.

BUnUrong MeMoriaL Park During the reporting period, SMCT’s key engagement focus has involved the major redevelopment of BMP. This engagement included key stakeholders across the community, including our Community Advisory Committee (CAC), business and government and has enabled the alignment of relevant products and services to ensure we remain responsive.

A robust engagement schedule was activated, involving community presentations and consultations with relevant peak bodies, local governments and various community, faith and cultural groups. This engagement provided our stakeholders with ongoing opportunities to input into the development. It has also indicated strong community endorsement of BMP’s service model and facilities, which are designed to be culturally responsive and appropriate for our multicultural customer base.

As a result of our engagement, we were honoured to receive extensive community feedback in support of the development, with just two examples provided below:

“Cr Sean O’Reilly, welcomes the developments currently under way at Bunurong Memorial Park... It truly is a testament to the beliefs that everyone should be able to celebrate and honour life, throughout all stages of life, irrespective of cultural, religious or personal preferences. Bunurong Memorial Park undertakes to sensitively and respectfully take care of the community needs” - Cr Sean O’Reilly, Mayor, City of Greater Dandenong, 2 July 2015.

“The values behind the development are very much aligned to those of ICV, to promote culturally diverse communities... We appreciate the consultative approach that SMCT has taken to ensure that the services provided are culturally appropriate and look forward to visiting the facility in early 2016.” - Nail Aykan, General Manager, Islamic Council of Victoria.

Strategic priority

three external Stakeholder engagement

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The planning and development of BMP has included extensive consultation with the following community groups:

The Faith Communities Council of Victoria, the Casey Multifaith Network, the Interfaith Network of Greater Dandenong, the Inter-Council Consultative Committee on Indigenous Affairs, the Buddhist Council of Victoria, the Islamic Council of Victoria, The Hindu Council of Victoria, the Cambodian Association of Victoria and various orthodox churches across faiths and cultures.

We have also consulted with the Council on the Ageing, Seniors Rights Victoria, Life Activities Clubs Victoria, The City of Greater Dandenong, Cardinia Shire Council, Mornington Peninsula Shire Council and the Municipal Association of Victoria.

Specifically, the development of BMP’s Multifaith rooms has been informed through ongoing consultation with an extensive range of community stakeholders.

Song he yUan Throughout FY 2014/15 SMCT continued to respond to increased engagement and participation with our Asian Buddhist communities in relation to the further development of SBC’s dedicated Buddhist cemetery, Song He Yuan.

The only cemetery of its type in Australia, the magnificent Feng Shui designed Song He Yuan features a temple with full size Buddha, pagodas, waterways, sculptures and plantings designed to cultural specifications.

During the reporting period, SMCT also actively engaged with a number of Mahayana Buddhist temples across Melbourne. This engagement instigated a monthly Chanting Initiative, which has fostered further community participation and awareness.

Furthermore, eight Buddhist faith leaders have visited Song He Yuan for blessing ceremony activities.

We are also working collaboratively with the Buddhist Council of Victoria, through the signing of a Memorandum of Understanding to ensure all engagement is culturally aligned and appropriate.

Song He Yuan lakeside blessing and 2015 Ching Ming Festival

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coMMUnity adViSory coMMittee SMCT’s Community Advisory Committee (CAC) continues its core function and statutory obligations, to provide specialist guidance to the Trust regarding community and consumer views.

The CAC guides the majority of community consultation and includes representatives from local governments, interfaith networks, peak bodies, Victoria Police, and various communities, cultural and faith organisations.

The CAC advises the Trust on consumer and community views and, during FY 2014/15, assisted the Trust with the following community projects and activities:

• Engagement with the Southern Migrant Refugee Centre to further understand the culturally diverse communities within the South East Region. • Consultation with the Jewish community, including the Rabbinical Council, to understand the future needs of the Jewish Community. • Visiting the Islamic Museum in Thornbury to understand the Islamic Community in greater detail. • The development and activation of the community engagement approach for BMP.

The CAC has informed and endorsed the plans for BMP, in particular the comprehensive client family service offerings. This endorsement is reflective of the communities that are represented by its members.

The Trust wishes to thank and acknowledge the valuable contribution and commitment provided by two departing members, Ms Helen Bnads and Ms Cheri Leighton.

cUStoMer and StakehoLder adVocacy To further enhance the customer experience in line with our brand, SMCT introduced the first advocacy measure of its kind within the Cemetery Sector. Stakeholder and customer surveys allow the Trust to receive impartial and transparent feedback about our products and services from all stakeholder groups including our customers, funeral directors, industry partners, local businesses, peak bodies, religious groups and local and state government. As part of our industry advocacy measurement, participants were asked to rate SMCT’s performance across a range of service areas, against their service level expectations. This data enables SMCT to determine customer advocacy through the measure of the Net Promoter Score (NPS), which is a measure of their likelihood of recommending SMCT to others.

We are pleased to report a 310% increase in survey feedback during FY 2014/15, marking the highest yet participant rate. The NPS score for SMCT for FY 2014/15 is 68, which is evidence of strong customer and industry advocacy.

SoUthern ageing ForUM Initiated by SMCT, the Southern Ageing Forum (SAF) is the first forum of its kind within the cemetery sector.

SAF was formed to enable multi-stakeholder partnering, in order to understand our ageing population and to enhance SMCT’s engagement approach. The forum facilitates ongoing consultation and collaboration between key partners, including local government, aged care service providers and community organisations.

SMCT was delighted to host the 5th SAF in March 2015, which was held at SBC’s Clarence Reardon Centre (CRC). The keynote speaker, Ms Sue Hendy, CEO of Council of the Aged - Victoria (COTA) provided an overview of how legislative reform

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impacts the aged care sector across Australia. The Australian Centre for Grief and Bereavement CEO, Christopher Hall presented best practice approaches to supporting our mutual client families holistically and Cardinia Shire shared their approach to Positive Ageing Planning. Several local government attendees contributed to the collaborative discussion, which confirmed that cemeteries are valuable community assets of an ‘Aged Friendly City’.

emPloyee AwAreness trAining – cULtUraL aWareneSS Throughout the reporting period, a number of community and multi-faith workshops were conducted with SMCT employees. These workshops are integral to our employee engagement and are held to ensure that our people are equipped to provide culturally sensitive and appropriate services to our multi-cultural client families. This educational program provides our employees with valuable insights, and ultimately enhances the customer experience.

To facilitate these services, SMCT partnered with the Hindu Council, the Islamic Council of Victoria and the Sikh Community.

SMct coMMUnity and cULtUraL eVentS To enhance our engagement and acknowledge the diversity of cultures, SMCT were proud to host several events throughout the reporting period, including:

• BMP’s official groundbreaking ceremony, which was commemorated in October 2014 and attended by members of our local indigenous communities and key multicultural groups. • In November 2014, SMCT unveiled the Returned Services Memorial at SBC. This poignant memorial fulfils the vision of former SMCT Trust member, Mr John Saddington, of making provision for expired tenure veterans’ remains to be transferred into perpetuity. In this way, they will be permanently honoured for their service to Australia. The names of the first 32 service personnel to have their ashes interred are inscribed on two high granite walls, which were unveiled before dignitaries, including the then State Opposition Leader and now Premier, the Hon Daniel Andrews, MP. • In March 2015, SMCT, together with the Friends of Cheltenham Regional Cemeteries, marked the milestone 150-year anniversary of Cheltenham Pioneer Cemetery (CPC). Students

Clockwise from top left: BMP groundbreaking and smoke ceremony, SMCT’s Community Advisory Committee, SBC’s Returned Services Memorial, CPC’s 150th celebrations, BGC’s dedication to Forgotten War Veterans

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from Cheltenham Primary School participated in this special event, with members of the school band and choir adding to the community-focused proceedings. Councillor Geoff Gledhill, Mayor, City of Kingston, was the keynote speaker and the local Returned Services League conducted a dedication service at the newly restored grave of WW1 Veteran Thomas Marcellus Boyle. • In March 2015, SBC’s Song He Yuan lakeside development was officially opened, with the blessing conducted by the Venerable Shi Miao from the Bright Moon Temple. The annual Ching Ming Festival (‘Grave Sweeping Day’) followed the formalities, with the Grand Offering and Transfer of Merits to Ancestors ceremonies held within Song He Yuan’s magnificent Di Zhang Wang Temple. • In May 2015, SBC’s Saint Padre Pio Mausoleum was officially opened and blessed by the Archbishop of Melbourne, the Most Reverend Denis J Hart DD. This highly successful event attracted more than 200 members of Melbourne’s Italian community. • June 2015 saw the re-dedication and re- consecration of the restored Metaher House at SBC. The first denominational building constructed at SBC in 1940, it was originally

constructed with funding by prominent Victorian, Raymond Ellinson. SMCT, Melbourne Chevra Kadisha and the Ellinson, Kaye and Rapke families all contributed to this significant restoration. SMCT were delighted to welcome members of the St Kilda Hebrew Congregation, Rabbi Yaakov Glasman, Chief Rabbi, Rabbi Philip Heilbrunn OAM, Chief Minister Emeritus and Rabbi Ronnie Figdor, Chief Executive Officer and Mr Philip Dalidakis, MLC, who represented the Premier, the Hon Daniel Andrews MP. It was also fitting and poignant that the family of Raymond and Sadie Ellinson were represented on the day. • SMCT’s community events also included our annual Children’s Christmas, Christmas Remembrance, All Souls Day and Mother’s and Father’s Day services. These again gave our community the opportunity to honour and reflect on their loved ones during significant times of the year.

ParticiPation in externaL coMMUnity and cULtUraL eVentS SMCT recognises the value of participating in community events as an adjunct to our ‘research by engagement’ model. Community participation also provides SMCT with valuable community insights.

Clockwise from left: CPC’s 150th celebrations, SBC’s Children’s Christmas Remembrance Service, honouring the centenary of the Gallipoli campaign, the blessing of SBC’s Saint Padre Pio Mausoleum, re-dedication ceremony of SBC’s Metaher House, school children participate in CPC’s 150th celebrations

In FY 2014/15 SMCT participated in a number of external events, including: • The Victorian Seniors Festival. • The Mornington Peninsula Ageing Well Expo. • The inaugural Gippsland Aged Care Conference. • Council on the Ageing Annual Conference 2015. • Ageing Seminar Series through Monash University. • Festival of the Hungry Ghosts (Asian Buddhist). • Interfaith tours to various places of worship. • Open House Melbourne. • Melbourne’s Retirement, Lifestyle & Travel Expo.

engageMent throUgh ceMetery toUrS

coMMUnity toUrS To further foster cultural and community engagement, SMCT regularly conducts specialised facility tours. These tours are developed through partnering with local governments and relevant peak bodies and are designed to increase community awareness of memorialisation options and the benefits of planning ahead.

SPeciaLiSed and hiStoricaL toUrS • In FY 2014/15, SMCT provided a range of tours of MGC, with over 520 visitors participating. • There was an increase in the number of people attending MGC’s night tours. • During the 2014 Open House Melbourne event, a record number of 1,429 people took part in guided and self-guided tours of MGC’s historic gatehouse and significant graves.

There was also an increase in the number of people participating in MGC day tours. • During FY 2014/15 there was an increase in interest in MGC’s date-specified night tours by social and business groups. • Hundreds of members of the community, including school students, referred to SMCT’s notable interments sign and accompanying brochures to conduct their own tours of MGC. • The number of day walking tours of SBC also increased. • In honour of the ANZAC centenary, SBC conducted the ANZAC Day War Heritage Tour on 25 April 2015.

The Australian War Graves, together with SBC’s rich military heritage, comprise the most comprehensive military grave history in Victoria.

coMMUnity ParticiPation and recreation During FY 2014/15, SMCT also initiated weekend jazz sessions at SBC’s new Café Vita et flores. These sessions were held on selected Sunday afternoons over summer and were very well attended. This popular initiative contributed significantly to SMCT’s strategic objective of demystifying cemeteries.

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Sunday jazz at SBC’s Café Vita et flores

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Another initiative was the introduction of a Christmas luncheon at Café Vita et flores. Christmas is a particularly poignant day for many families who take the opportunity to visit and remember their loved ones. The event proved popular and will now be held annually.

Mother’s Day continued to receive the highest number of visitors across SMCT locations, with thousands paying tribute to their mothers. In 2015 SMCT held our first Mother’s Day luncheon at Café Vita et flores. This event was also well received and will be added to our annual calendar.

To coincide with the opening of SBC’s Song He Yuan lakeside area, we initiated on-site Tai Chi, with an average of 40 participants. Tai Chi now complements the monthly Chanting, conducted in Song He Yuan’s Di Zhang Wang Temple.

We look forward to the opening of the BMP re-development in 2016, which will provide many more opportunities for community participation in this multipurpose community asset.

SMct FriendS groUPS Friends Groups are dedicated volunteers who undertake many and varied activities to promote and enhance SMCT’s locations. SMCT are fortunate to have three vibrant and active Friends Groups:

• Friends of Brighton Cemetery – ‘The Brighton Cemetorians’ • Friends of Cheltenham Regional Cemeteries (Cheltenham Pioneer and Cheltenham Regional Cemeteries) • Friends of St Kilda Cemetery

During 2015 all three Friends Groups mark historically significant milestones for their respective cemeteries.

SMCT wish to thank the Friends of Cheltenham and Regional Cemeteries for their invaluable contributions to Cheltenham Pioneer Cemetery’s 150th anniversary celebrations in April 2015.

Both Brighton General Cemetery and St Kilda Cemetery will celebrate their 160th anniversaries in late 2015.

All three Friends Groups participated in the annual Combined Friends Group meeting in June 2015, which included an overview of the BMP development and an informative cultural tour of SBC’s Song He Yuan.

indUStry and goVernMent reLationS

During the reporting period, SMCT enjoyed regular engagement and communications with other Class A Trusts, Class B Trusts, the Department of Health and Human Services and the Department of Consumer Affairs.

Industry engagement included collaboration with the following stakeholders:

• Cemeteries and Crematoria Association of Victoria. • Victorian Cemetery Trusts. • Australian Funeral Directors Association. • The Funeral Industry Roundtable (FIRT). • Funeral Celebrants Association. • State Trustees. • Australian Centre for Grief and Bereavement. • The National Cemeteries Forum.

the FUtUre The year ahead will be firmly focused on continuing to build SMCT’s culture of stakeholder engagement and maintaining our focus on optimising our customers’ experience. By continuing to listen and engage in meaningful consultation with all stakeholders, we will ensure that our product and service offerings will be appropriate and culturally responsive.

Creating activation and community visitation at BMP will also be a high priority and we look forward to continuing to partner with our communities to realise opportunities.

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Southern Metropolitan Cemeteries Trust (SMCT) recognises that our people are critical to our success. To this end, a key milestone was the introduction of SMCT’s People and Capability (P&C) Framework. This framework will enable aligned, capable and engaged employees to reach their full potential and to successfully contribute to positive organisational outcomes. Fundamental to the P&C Framework is the foundation of ‘Core Services’, including all of the relevant processes and systems designed to ensure good governance and the achievement of quality people-based outcomes aligned to our PRIDE values.

SMCT’s P&C Framework comprises the following five streams, and is underpinned by P&C ‘Core Services’:

1. Perform with Pride 2. engage with Focus 3. inspire to Lead 4. org by design 5. target talent

core SerViceS In April 2015, SMCT’s P&C team undertook a detailed review and refocus of underlying systems and processes to ensure consistency of support to employees and leaders, in line with our commitment to continually improve service delivery.

The output was a suite of clear, fit-for-purpose ‘people’ related policies, procedures, tools and processes, known as ‘P&C Core Services’.

Through ‘P&C Core Services’, the P&C team partners with each area of the organisation to provide consistent and specialist support to all leaders and employees as they transition through the various stages of employment.

PerForMing With Pride The Performing with PRIDE stream focuses on optimising employee performance by further embedding our PRIDE value across all of our business related activities. In FY 2014/15, a key focus was the design and activation of programs to support an organisational shift to a customer centric culture seen as critical to realising our vision. To this end, a purpose-built development program, which looked at the whole customer experience, was developed and successfully launched.

Our shift to a customer centric culture has enabled an improved and consistent service experience for our customers across our locations and at multiple touch points, as evidenced through customer feedback channels, including SMCT’s solid Net Promoter Score (NPS) result.

A further highlight of the reporting period included the launch of the Welcome to SMCT corporate induction program. With the successful delivery of four workshops in FY 2014/15, this program is now embedded as part of our onboarding activities.

training and deVeLoPMent Training continued to be a high priority through FY 2014/15. In line with SMCTs commitment to the safety and wellbeing of our employees, workforce compliance and to enable leaders and employees to be set up for success in their roles, a total of over 4900 hours training was provided to SMCT employees in FY 2014/15 as highlighted in the following table.

Strategic priority

four People and the organisation

Over and above meeting risk and compliance requirements, this commitment to training and development ensures all employees continuously improve their knowledge and skill levels, in order to be more effective in their roles and able to pursue personal development.

engage With FocUS The Engage with Focus stream is designed to enhance employee engagement and commitment to achieve our organisation purpose and objectives.

FY 2014/15 saw SMCT initiate an integrated employee engagement and communications approach as part of our ongoing workplace relations and negotiations. Our approach was designed to promote complementary employee, employer and customer interest, together with positive, productive and solutions focused communications.

reMUneration FraMeWork A strategic priority for P&C in FY 2014/15 was the development of a Remuneration Framework that ensured the linkage between reward and performance.

A three part approach was adopted in order to develop the SMCT Remuneration Framework including:

• Designing a ‘Classification Framework’ • Building remuneration lines to support the Classification Framework, based on relevant external market data. • Ensuring Governance through the development of a Policy and implementation guidelines.

The successful activation of the Remuneration Framework in FY 2014/15 ensures SMCT’s reward practices are internally consistent, aligned to performance, market competitive, and enables the organisation to recruit, retain and motivate the talent necessary to drive an organisation to deliver world class facilities and services.

eMPLoyee recognition Employee recognition continued to play an important role as part of our employee engagement in FY2014/15. SMCT’s annual Bill Harry Employee of the Year Awards provides employees the opportunity to nominate and recognise fellow peers for their outstanding contributions to the achievement of SMCT’s mission and values. To further embed our PRIDE Values into SMCT organisational culture, PRIDE was incorporated into this important employee engagement event, with nominations based on PRIDE – Passion, Respect, Integrity, Dedication and Empathy. Our deserving 2015 winners are featured on page 33.

SerVice MiLeStoneS SMCT continued to demonstrate a positive engagement culture, as illustrated by several significant service milestones recognised and celebrated in FY2014/15 as follows:

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training FocUS

training category total no. of training hours

Corporate Induction 209

In-role / Technical 847

Leadership 2615

WHS / License, Risk & Compliance 1324

40 years

35 years

30 years

25 years

20 years

15 years

10 years

5 years

Service Milestones reached between July 2014 to June 2015

num

ber o

f em

ploy

ees

9876543210

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the chairman’s award Patty holten General Manager People & Capability SMCT

dedication William au Financial Analyst SMCT

Passion John Marra Chapel Attendant Client Services Consultant Bunurong Memorial Park

empathy Madonna Lietzow Executive Assistant Director - Customer Experience SMCT

integrity Mark andrews Assistant Operations Manager Western Region Cheltenham Memorial Park

WinnerS oF the BiLL harry eMPLoyee oF the year aWardS 2015

respect rob Morse Facilities Maintenance Coordinator Springvale Botanical Cemetery

Given the record number of nominations in FY2014/15, a number of important Honourable Mentions were also recognised. Congratulations again to Roxanne Booth, Stephanie Filleul-Zama, Alvin Castro, Louise Aaltonen and Rohan Marshall for consistently displaying the PRIDE Values.

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inSPire to Lead As leadership capability is recognised as fundamental to SMCT’s success and sustainability, this stream is centred on continually uplifting leadership capability, through the design and delivery of a suite of leadership-based programs.

During FY 2014/15, the development of a common framework and language for strategic thinking was a critical leadership development and organisational milestone for SMCT. In order to align a ‘whole organisation’ approach to strategic thinking and activation, SMCT worked with our partner provider, ‘Resilient Futures’, to successfully deliver a series of Changing Ahead of Change workshops for all SMCT leaders over a ten-month period.

To support the successful and ongoing activation of the 2016-2010 SMCT Strategic Plan, the ‘Listening Post’ was officially launched in May 2015 to encourage all SMCT employees to capture and submit input to improve the customer and employee experience.

An emphasis on People leadership capabilities continued in FY 2014/15, with a strong focus on developing frontline leaders through the successful design and delivery of our Leading Effective Teams (LET) program. Designed to build leadership skills and confidence, LET enabled participants to gain valuable feedback on their personal effectiveness in the areas of self-awareness, self-management, impactful communications and performance delivery.

org By deSign The focus of this stream is to ensure SMCT has the required people capabilities in place for ongoing success and sustainability. This includes ensuring role balance and clarity regarding individual and team accountabilities are in place and incorporates a proactive approach to workforce planning.

Recognising that effective workforce planning requires an integrated approach between SMCT’s

leaders and the P&C Team, the SMCT Workforce Planning Model was developed and introduced during this reporting period.

The model enables SMCT to respond effectively to organisational requirements and was successfully applied as part of the establishment of the new Executive Leadership Team in January 2015.

The model continues to be integral in further developing and designing the workforce plan for Bunurong Memorial Park (BMP).

target taLent Ensuring SMCT has a planned approach to attract, develop and retain capability, talent management is imperative for ongoing success and sustainability. SMCT successfully attracted a number of new starters to the organisation in FY 2014/15, with a range of backgrounds and experiences aligned to support our ongoing challenges and diverse community expectations. Furthermore, a number of internal employee progressions and development movements occurred within the same period. These positive talent outcomes are a result of increased awareness of the benefits of a career at SMCT. These benefits will be further articulated as we continue to develop our Employee Value Proposition (EVP) in FY2015/16.

As part of our ongoing commitment to actively incorporating the principles of Diversity in our workplace and talent programs, during the reporting period, SMCT concentrated on developing a clear understanding of its workforce composition and the communities we serve.

terms of employment

Award 25

Contract 107

The Southern Metropolitan Cemeteries Trust 97 Outdoor Enterprise Agreement 2014

The Southern Metropolitan Cemeteries Trust 47 Indoor Enterprise Agreement 2014

total 276

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our People – Workforce diversity Snap Shot

Building a deeper understanding of our workforce and communities provides a solid basis to plan the implementation of a fit-for-purpose Diversity program, which will continue to reflect the communities we serve.

heaLth SaFety and WeLLBeing Ongoing review and improvement to our Health, Safety and Wellbeing (HSW) Management activities has been focused on consolidating and enhancing the framework to include relevant mentoring for managers, team leaders and Health and Safety Representatives throughout the organisation, to support a proactive approach to safety and wellbeing.

Monthly HSW initiatives, including performance and activities reporting, were revised and an improved reporting structure was implemented in February 2015 to include HSW Lag and Lead indicators.

WorkCover management, through liaison with SMCTs Agent (Gallagher Basset) and Preferred Medical Clinic (Medibank Health Solutions), supported SMCT’s proactive approach of keeping the instance of lost time injuries to a minimum. The mutual benefit of working with a preferred clinic aids in maintaining an effective response to injured employees and enables them to return to meaningful work as soon as practicable.

Returning people to work following an injury or illness is an essential element of the recovery process and our commitment to providing a safe work place. In consultation with employees, a new Return to Work (RTW) Framework was developed in FY2014/15.

The framework brings to life our commitment to assist employees to stay at work or return to work as soon as possible, by outlining a practical and aligned approach to injury management.

FullTime 232PartTime 20Casual 20FixedTermContract 4

Flexible Working arrangements (headcount, not Full time equivalent) as at 30th June 2015

Under25 1925-34 6335-44 6545-54 8455-64 48Over65 4

age distribution (headcount, not Fte equivalent) as at 30th June 2015

SMCTWorkSafeInsurancePremiumRate 1.736%

SMCTIndicativePerformanceRating 0.560

WorkSafeAverageIndustryRating 3.099%

SMCTPerformanceRating(comparedwithIndustryaverage) 43.98%better

Location male Female Total

Brighton 1 1 2Bunurong 16 7.4 23.4Cheltenham 16 3.2 19.2Melbourne .8 1.7 2.5Springvale 114.2 95.23 209.43

eMPLoyee gender nUMBer By ceMetery loCAtions (full time equivAlent)aS at 30th JUne 2015

hSW – WorkSafe Performance indicators July 2014 to June 2015

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the FUtUre

FY 2015/16 will focus on further developing our Employee Value Proposition, including the design and implementation of diversity and recognition programs, both linked to customer centricity.

Furthermore, the ongoing embedding of the recently integrated Remuneration Framework will form a key component of this holistic EVP and will continue to inform workforce planning decisions, ensuring SMCT is positioned to attract and retain capability and talent.

Talent and Succession Management will also be a key focus as a framework and set of tools to proactively deliver our talent management throughout the organisation.

Building a culture of high performance and accountability will remain a key imperative for FY 2015/16, together with further embedding customer centricity. Plans are in place to further support a capability up-lift for identified key customer touch points. This will ensure the delivery of an exceptional service experience for our customers and communities, in line with our organisational PRIDE values.

SMCT employees celebrate Bunurong Memorial Park’s ceremonial groundbreaking

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Southern Metropolitan Cemeteries Trust (SMCT) has emerged as a strong, innovative and progressive brand and our iconic and historic locations, desired destinations in which to honour and celebrate life.

Our focus has been on the development and projection of SMCT as a customer-orientated brand, firmly aligned to our strategic priorities. We have also focused on the development of our internal brand to ensure that our employee culture is aligned to our external brand values.

During the reporting period, major capital works at our key locations have provided tangible evidence of how SMCT brand values are shaping the design, development and delivery of enhanced customer focused services and facilities.

aLigning oUr cULtUre to oUr Brand A key driver in the development of our internal brand has been the increased ability of our employees to embrace our customer-focused culture through our Performing with PRIDE (PWP) framework. In FY 2014/15, our core PRIDE values continued to shape the content of employee learning and development programs. These not only helped to enhance our employee capabilities, but also their connectedness to organisational values and goals.

During the reporting period, SMCT held regular communication roadshows, which were delivered by the CEO and leadership team. Worksite visits provided opportunities to engage with employees about the opportunities facing SMCT and were complemented by monthly leadership briefings.

The launch of SMCT’s Listening Post initiative also provided employees with opportunities to provide suggestions to enhance our customers’ experience.

With the objective of keeping our people in touch with our brand, significant focus was placed on the development of electronic and print news specifically designed for employees. Titled @SMCT, this information platform provides monthly updates on Listening Post submissions, key developments within the organisation, a spotlight on employee achievements and insights from our CEO.

FaciLitieS and enVironMentS Recognising that our facilities and environments are key brand touch points, SMCT has made a considerable investment in the master planning and development of our key locations. To meet the ever-growing needs of our communities, our intent is to create multi-purpose destinations, designed for wider community use and enjoyment.

During FY 2014/15, SMCT has seen a significant transformation of our assets at Springvale Botanical Cemetery (SBC) and Bunurong Memorial Park (BMP). The current capital works program has showcased how an organisation can embrace its brand values to deliver outstanding infrastructure outcomes to benefit the community and our employees.

SBC’s new world-class Clarence Reardon Centre (CRC) provides customers and the wider community with a range of state-of-the-art multi-purpose facilities and clearly positions both SMCT and SBC as innovative and progressive brands.

Strategic priority

five Brand development

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In addition, the CRC’s thoughtfully designed open plan workplace further aligns with our brand values, providing employees with a contemporary, collaborative environment in which to deliver customer and organisational needs.

The reporting period also saw the completion of SBC’s new Customer Service Centre, which clearly reflects the care, warmth and respect we embody in our delivery of customer service.

Significantly, the major redevelopment of BMP will deliver a timeless and transformational multi-purpose community asset, designed for the ultimate customer experience.

Brand and coMMUnity aLignMent In FY 2014/15, SMCT’s extensive stakeholder engagement initiatives also provided our customers and communities with unique opportunities to ‘touch’ our brand.

There were a number of significant occasions when our diverse communities were able to witness our innovative product and service offerings first hand. These included the successful opening and blessing of Song He Yuan’s newly developed Feng Shui lakeside area and SBC’s Saint Padre Pio Mausoleum. The reporting period also saw the poignant unveiling of SBC’s Returned Services Memorial and the re-dedication of SBC’s newly restored Metaher House.

SMCT’s annual community events are also vital brand touch points and provide us with opportunities to engage with our communities at significant times throughout the year.

Increasingly recognised as a multi-purpose community asset, the CRC’s function rooms were also actively utilised for corporate training, meetings, internal and external functions, conferences and, significantly, SBC’s first wedding reception.

The ClarenCe reardon CenTre

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ProdUctS and SerViceS Following consultation with funeral directors and community representatives, SMCT developed and released a range of innovative services throughout the year. These included twilight funeral services, which were held during the daylight saving months, and allowed for interments, services and functions to be conveniently conducted outside of normal working hours.

SMCT also designed and developed a mobile application, which provides up-to-date information on daily services across all locations, a deceased search capability, location maps and the ability to select music tracks on the ‘jukebox’ when visiting SBC’s Café Vita et flores.

Further upgrades were also made to the interactive information services provided by digital kiosks at SBC and BMP. New capabilities include a ‘remind me’ functionality to advise customers of their loved one’s key calendar dates.

During the year SMCT also extended the roll out of our dedicated Funeral Director Portal. This online platform provides funeral directors with the ability to check availability and book chapels, function rooms and cremation services at SBC and BMP. The portal also extends this service to our industry partners and is available around the clock, seven days a week.

The recently launched Café Vita et flores website also incorporates a client bookings function and the capacity to order flowers and gifts online.

In addition, SMCT introduced an online tour ticketing system, which benefits members of the community who are increasingly participating in the popular tours of our locations.

Clockwise from top left: The Clarence Reardon Centre, function rooms, Café Vita et flores on-site florist, CRC’s children’s playground, trees reflected in glass facades, fully catered functions, on-site florist and retail, Trust Chairman Sue Renkin and the Ms. Elizabeth Miller MP officiate at the CRC opening, multi-cultural catering, Trust and Leadership members at the official opening


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Brand coMMUnicationS Critical to the development of SMCT’s brand identity has been the consistent application of our positioning, tone, look and feel across all forms and channels of communication.

Whilst continuing to promote our individual cemetery brands to market location-specific products and services, a focus during the period was to enhance the presence of the endorsing SMCT brand. This saw greater emphasis placed on promoting SMCT’s offerings across a number of locations and was achieved through a shift in media strategy to incorporate full page press in targeted publications.

In addition to the launch of SMCT’s dedicated Café Vita et flores website, which showcases the cafe’s extensive catering, function and floral offerings, our suite of nine distinctive websites continued to evolve. To further enhance the customer experience, the sites now incorporate real time availability of function and chapel facilities.

In line with brand, SMCT also continued to produce quality print collateral to promote locations, products and events and to publish our external stakeholder news bulletin, The Southern Cemeterian.

In FY 2014/15 SMCT produced two short films to showcase both SBC and our dedicated Buddhist cemetery, Song He Yuan. These productions reveal the extensive gardens, facilities and spaces that have been designed in response to community needs and provide a fresh perspective of what our locations can provide. The films will be used across different channels including Asian cinema, YouTube, digital advertising and social media platforms.

With our objective of increasing brand awareness, SMCT was pleased to receive ongoing media attention throughout the year, with our CEO interviewed on many occasions. News items included BMP’s ceremonial groundbreaking, the construction of SBC’s Saint Padre Pio Mausoleum, our unique memorialisation products, natural burials and SBC’s ANZAC War Heritage Tour, Children’s Christmas Remembrance Service and wedding.

SMCT’s on-brand press and print collateral42

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Wedding ceLeBrationS at SPringVaLe BotanicaL ceMetery In March 2015, SBC’s spectacular botanical gardens and stylish CRC function rooms provided the perfect settings for its first fully integrated wedding event. The ceremony was conducted in the beautiful Garden of No Distant Place, where the bride and groom Annelise Calderwood and Josh Hoare were greeted by 100 guests.

The wedding reception was then held in the beautifully styled CRC function rooms, with a three course meal fully catered by Café Vita et flores. All floral arrangements for both the bridal party and the reception were created by Café Vita et flores’ on-site florists.

The seamless delivery of Annelise and Josh’s special day showcased the versatility of SMCT’s multi-purpose community assets. Creating these assets is firmly aligned with SMCT’s brand values of providing exceptional facilities and services to exceed our customers’ expectations.

the FUtUre SMCT will continue to evolve its brand architecture and our brand development initiatives will remain consistent with our customer centric focus.

In response to community needs, one such initiative will be the FY 2015/16 development of a dedicated memorial garden for adolescents, to be constructed adjacent to the children’s memorial garden at SBC.

We will also continue to invest in our websites to ensure they are truly responsive and provide users with a consistent experience across all technology platforms.

Through strong leadership, SMCT will continue to build a culture of highly engaged employees who are in sync with our brand values and have an enduring appetite for innovation and improvement.

Wedding celebrations at SBC’s Garden of No Distant Place and Clarence Reardon Centre

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SMCT’s operational excellence standards ensure that our service offering and infrastructure management are aligned to meet our communities’ needs and support the sustainability of our Perpetual Maintenance Fund.

A highlight of the reporting period was the opening of Springvale Botanical Cemetery’s (SBC) Clarence Reardon Centre (CRC), which provides our customers and communities with a suite of exceptional multi-purpose facilities.

The CRC also includes an employee training facility, which enables continuous improvements in customer service.

In addition, the co-location of key SMCT business units within the CRC has fostered collaboration and expedient information exchange.

There have been several continuous improvements and best practice initiatives across the organisation throughout FY 2014/15.

• SMCT’s Horticulture Department introduced new initiatives in grounds maintenance. These reflected innovative thinking and the modernisation of processes and equipment. • Fleet Management was centralised from individual locations to SBC’s Buildings and Grounds Department. This initiative improved compliance, reduced spare parts inventory, improved the reliability of equipment and prolonged equipment life through improvements in maintenance.

• Facilities Management practices have improved through staff training and modernising the way we manage and control our assets, including our buildings.

During the reporting period, several essential service maintenance contracts were centralised. This has enabled cost reductions through consolidated contracts, minimised risk exposure and achieved service quality improvements.

heaLth, SaFety and WeLLBeing To ensure all employees improved their knowledge and skill levels in Health, Safety and Wellbeing (HSW), training was again a high priority throughout FY2014/15.

In addition, the manual Contractor Management Systems audit identified an opportunity to implement process automations in order to optimise compliance consultation between IT, HSW and Risk Management.

recordS ManageMent SMCT’s Records Management Team continued to support the Customer Service Teams with the digitisation of over 22,000 client files during the reporting period.

With the Public Records Office of Victoria (PROV) approval of the Cemeteries and Crematoria Retention & Disposal Authority (RDA), SMCT

Strategic priority

six operational excellence

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commenced the implementation of a pilot business classification scheme for corporate information. This scheme was based on the way that people interact with information, together with the impact of future technologies, and will allow SMCT to quickly categorise and locate cross-functional information across the organisation.

SMCT’s commitment to working collaboratively and supporting the sector led to engagement with the CCAV to establish a working party to review the RDA. Through close consultation and proactive discussion with the PROV, the RDA was tailored to also accommodate Class B Cemetery needs by streamlining the process. This enables a range of users with limited record management experience to make correct assessment of records.

the FUtUre In FY 2015/16 the focus for SMCT’s Horticulture Department will be the management of arbor assets to ensure we are in line with industry best practices for the long-term health and viability of all trees. SMCT’s Tree Management Plan (TMP) is linked directly to the ideals expressed in our Vision and Values for sustainable cemeteries for the next 100 years. Building on our Integrated Asset Management System, all trees will be mapped, inspected and condition audited for risk identification and mitigation.

In the coming year, there will be several efficiency and risk reduction initiative adopted within our fleet management, including: • Centralising and standardising maintenance activities, to reduce running costs and improve efficiency and compliance. • Rationalisation and consolidation of fleet to extend asset life and reduce capital expenditure. • Continued procurement of a fleet management software system to standardise service and repair activities across all SMCT locations, and to enable the management of asset lifecycle.

Iconic Springvale Botanical Cemetery and historic Melbourne General Cemetery maintained to the highest standards

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During the next reporting period, SMCT’s Infrastructure Department will conduct several benchmarking investigations. This will enable us to determine our strengths and opportunities in our facilities management.

Key areas to be benchmarked will include cleaning costs, waste management, energy consumption, security management and horticulture maintenance costs.

As the BMP ‘campus’ development approaches completion, the challenge for FY 2015/16 will be to fully understand the operations of these new high-tech facilities. A priority will also be to accurately measure the environmental efficiencies that they deliver to support our commitment to environmental sustainability.

With SMCT’s ongoing commitment to operational excellence, we will continue to drive a continuous improvement and innovation focus across the diverse portfolios of the organisation. This will optimise the ability of our services and assets to meet the needs of the communities we serve.

Springvale Botanical Cemetery

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The Southern Metropolitan Cemeteries Trust’s (SMCT) focus for FY 2014/15 has been on the deployment of a range of IT services and the development of a long-term IT strategy. This strategy focuses on leveraging data and information to ensure that customers and communities have continued access to ‘the right information at the right time’. During FY 2014/15 SMCT’s enhanced IT service offering has included:

• Delivery of new audio visual systems within the Renowden and Boyd chapels at Springvale Botanical Cemetery (SBC) to standardise operation, improve reliability and provide enhanced capabilities in presenting audio visual content. • Implementation of a managed print services model in order to standardise equipment, simplify operations for employees and reduce administrative costs. • Delivery of various new business systems including hosted fax/sms-to-email services.

it ProJectS and initiatiVeS SMCT successfully relocated IT services into SBC’s new Clarence Reardon Centre (CRC), without disruption. The relocation also included delivery of audio visual systems within the new function rooms, data/internet connectivity for both customers and employees throughout the complex, communications systems, security systems and a new data centre to house IT infrastructure. In addition, SMCT’s IT Department supported the technology design of SBC’s new Customer Service Centre (CSC) and the relocation of services. The deployment of additional digital displays at the CSC

was also completed, providing customers with information screens and digital signage.

Security and CCTV capabilities were also enhanced across a number of locations. This included the replacement of existing infrastructure, consolidating systems and mitigating risks associated with the security of our assets and people.

To enable online collaboration and to provide business intelligence tools, document management and messaging/communications services, a trial of a number of online collaborative platforms was conducted during FY 2014/15. Further implementation now forms part of the longer term IT strategy.

digitaL Marketing and coMMUnicationS Strategy Throughout the reporting period, IT partnered with Marketing to build an enhanced online user experience and to learn from the online behaviour of key stakeholders.

Major projects undertaken in partnership included the development of a SMCT smart phone application, a dedicated Café Vita et flores website and the enhancement of existing interactive digital screens, which allow SMCT to capture key client/prospect data to increase engagement through key digital channels.

The development of a broader digital communications strategy was undertaken during the reporting period, which includes the digital growth roadmap.

Strategic priority

seven information technology

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riSk ManageMent SMCT continues to maintain a focus on ensuring the availability of IT services and the security of the organisation’s IT assets and data. During FY 2014/15, a number of initiatives were undertaken in order to mitigate associated risks, including:

• Replacing all existing fibre cable across SBC to mitigate the risk of ageing infrastructure failing and causing outages. • Providing redundancy in our internet and network services through the introduction of additional infrastructure to ensure continued operations in the event of primary services failing. • Determining new standards for underground services to mitigate the risk of infrastructure being damaged during underground works.

The organisation also completed additional testing of Disaster Recovery (DR) facilities and confirmed that current contingencies in place to deal with any significant data or system loss are operating effectively.

the FUtUre Improvements in the availability and reliability of IT services for employees and customers in the last two years has allowed SMCT to focus its efforts less on ‘break-fix’ activity and more on stakeholder engagement, maintenance and the longer-term IT strategy. SMCT remains committed to further improving the level of IT facilities available to external and internal stakeholders.

IT initiatives planned for FY 2015/16 will focus on the review and establishment of quality data and data repositories. SMCT will also introduce additional business systems and tools to ensure access to this data is in a format which is appropriate for the end user. Leveraging these tools to draw business intelligence from information will be a significant growth area for SMCT.

Having already tested a number of cloud-based services, SMCT will continue to consider the viability of switching to such platforms, in conjunction with the introduction of new mobile devices.

In FY 2015/16 the successful completion of Bunurong Memorial Park’s Stage One construction will require the delivery of a significant amount of IT infrastructure and services. These will include the expansion of our digital signage solutions, the provision of audio visual systems to the chapels and function rooms, data/internet connectivity for both customers, including employees, communications and security.

IT will also continue to partner with the Marketing Team to ensure digital communications strategic priorities can be seamlessly implemented in line with delivery of first class customer service.

Café Vita et flores’ new dedicated website

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Southern Metropolitan Cemeteries Trust (SMCT) is responsible for 360 hectares of land across the eight cemetery locations within our care.

To continue to meet the needs of our communities, it is incumbent upon the Trust to ensure that the ongoing maintenance and proactive development of these locations is best practice.

Springvale Botanical Cemetery (SBC) is one of our largest locations, spanning 169 hectares and, during the reporting period, a number of outstanding infrastructure developments were completed and opened at this iconic location.

the cLarence reardon centre August 2014 saw the completion of construction of SBC’s world-class Clarence Reardon Centre (CRC). Designed to meet the growing needs of our community well into the future, it provides a host of multi-purpose function rooms and state-of-the-art facilities.

neW cUStoMer SerVice centre In keeping with our customer centric priorities, the reporting period also saw the complete refurbishment of SBC’s existing function and café building into a progressive Customer Service Centre.

Song he yUan deVeLoPMent The completion of SBC’s Song He Yuan lakeside area development was the most recent stage of the Song He Yuan master plan, which began in 2004. It extends the current product offering, whilst providing a range of new premium burial and cremation memorial opportunities, including waterside monumental graves, dry creek bed memorial positions, granite bench positions and ‘cloud pole’ memorials

Saint Padre Pio MaUSoLeUM During the reporting period, SMCT also constructed the unique, courtyard style Saint Padre Pio Mausoleum at SBC. Thoughtfully designed and landscaped, it provides reflective spaces within a striking built form, dominated by highly polished stone. Appropriately, an avenue of cypresses leads visitors to the mausoleum.

neViLLe PooLS SBC’s iconic Neville Pools water feature, located on the main Princes Highway entrance, was renovated during FY 2014/15. Restoration works included restored ponds and table top pools, repairs to significant water leaks and the renovation of adjacent gardens. In addition to the improved aesthetics, the project has resulted in improved water control and flow.

Strategic priority

eight Land Use and development

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heritage reStorationS Several heritage restoration projects were undertaken at Melbourne General Cemetery (MGC), supported through government funding assistance. These projects included:

• Fence repairs to a section of the historic bluestone and cast iron fence along Princes Park Drive. • Façade restoration of the Gatehouse building, including drainage repairs, tree root barriers, stone façade restoration and soil moisture control systems. This will stabilise the structure of the building for many years. • Renovation of the reception and office areas to enhance our customers’ experience.

LUcULia MeMoriaL garden FY 2014/15 saw the major restoration of SBC’s Luculia Memorial Garden. Extensively landscaped, the garden now incorporates sandstone burial walls, striking sculptures and interments within unique botanical ‘rooms’. A major feature is a contemporary visual art installation ‘Honour’, which welcomes visitors to SBC and appropriately expresses the values of the organisation.

horticULtUre and Land USe During the reporting period, SMCT worked closely with our arborists to ensure that new grave layouts preserve the health of existing mature trees with minimal disturbance to the tree root systems. Land utilisation has been maximised and existing services and roads preserved. This has allowed SMCT to provide cost efficient interment spaces that also have long term maintenance efficiencies.

BUnUrong MeMoriaL Park - stAge one ConstruCtion

Significantly, FY 2014/15 saw the Stage One construction of Bunurong Memorial Park’s (BMP) development well under way. As Victoria’s memorial park of the future, BMP will be a multi-purpose community asset, designed to meet the needs of our communities along Victoria’s south-eastern growth corridor for the next 70 years.

Set within an inspiring native, Australian landscape, the development will include the planting of over 80,000 trees in an area almost three times the size of Melbourne’s Royal Botanic Gardens. Extensive plantings of native flora will complement the region’s abundant native birds and wildlife.

BMP will be divided into a series of visionary memorial ‘garden rooms’, accented by sculptures, water features and integrated waterways. Together with beautifully themed rock, natural and sculpture gardens, the garden rooms will offer contemporary and culturally sensitive options for burial and cremation memorialisation.

Extensive infrastructure works include the construction of a network of new roads and the development of a memorial bridge spanning the existing lake. The addition of a water swale and windmill project will save approximately 500,000 litres of water per year, and new buildings aim to be carbon neutral in energy consumption, offsetting greenhouse gas emissions by 500 tonnes per year.

Artists impressions of Bunurong Memorial Park’s waterside reflection space, memorial bridge and Café Vita et flores

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Careful consideration has been given to existing flora with mature river red gum trees being protected throughout the development.

Transformational in design, aesthetics and function, BMP will become a genuinely multi-purpose community asset, designed for visitation, recreation and exploration. It will be a memorial park like no other.

MaSter PLanning For the FUtUre During FY 2014/15, SMCT engaged in a range of land and demographic studies, in pursuit of future developments. Several areas are being considered in terms of how they will meet future community needs, and are currently subject to more detailed investigation.

In addition, a five-year master plan has been completed for SMCT’s key locations, to guide product development, project staging and the overall aesthetic. The plan also locates significant trees, historic features, pedestrian and road linkages and interment areas by denominations.

This master plan provides:

• Transparent planning to inform the progression of the capital program. • Agility to react quickly with bulk sales inquiries. • Planning of stock program for future years. • Future GIS capability to accurately locate graves and details of the owner.

the FUtUre The key focus of FY 2015/16 is the completion of stage one construction of SMCT’s visionary BMP development.

At BMP, we will continue to plan to provide relevant, unique and contemporary memorial spaces, such as the innovative Australian rock garden and scatter garden.

Our focus on innovation is carefully balanced with the need to meet our diverse community’s needs by continuing to provide traditional interments for major cultural groups according to their wishes.

SMCT will also be scoping our first ‘natural burials’ area at BMP, which will focus on a serene and natural landscape with the anticipated use of biodegradable interment procedures and products.

During FY 2015/16 we will also complete the refurbishment of SBC’s historic Boyd and Renowden Chapels. Situated in the heart of SBC’s distinctive botanical gardens, these beautiful spaces will provide unique chapel offerings for metropolitan Melbourne.

The focus of the refurbishment will be a striking refit of the central space to accommodate very large services and also serve as a function area. This important development will also become a multi-purpose asset, designed for wider community use.

We will also continue to deliver on our commitments to ensure the posterity of our iconic historic cemeteries and the contemporary development of these locations for community enjoyment.

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Throughout FY 2014/15, the Southern Metropolitan Cemeteries Trust (SMCT) continued to deliver on our social and environmental responsibilities.

SociaL rePSonSiBiLity During the reporting period, we were honoured to contribute to our communities in a number of ways.

• SMCT proudly presented the Victorian Police Muslim Association with sponsorship for their annual Iftar Dinner, which was also attended by our leadership team representatives. SMCT also maintains representation on the boards of local community organisations, including the Southern Migrant Refugee Centre in Dandenong. • We were also pleased to provide sponsorship to the inaugural Gippsland Aged Care conference to support this important regional initiative. SMCT holds membership with relevant peak bodies and community groups, including the Council on the Ageing. • SMCT partnered with Avocare to progress the Work for the Dole initiative. This is an Australian Federal Government funded program that focuses on eligible job seekers, aged 18-30 years, intent on gaining new skills and experiences. During the reporting period, 15 participants worked on a variety of jobs on the grounds of Springvale Botanical Cemetery (SBC). • SMCT also supported the Dandenong chapter of Men’s Shed, which undertook to make bird nest boxes for installation in SBC’s gardens. In collaboration with Birdlife Australia, 30 native bird boxes were constructed and are now installed. These bird boxes are specifically designed for the Eastern Rosella, Crimson Rosella, Red-Rumped Parrot, Spotted Pardalote, Sacred Kingfisher and Chestnut Teal.

• We also contribute to the cemeteries and crematoria sector and are committed to the provision of governance support. During the reporting period, this was demonstrated through our assistance in helping to re- establish the Drouin Cemetery Trust. SMCT provided the administration of the Trust through to 16 September 2014, with a formal handover on 7 October 2014. • Throughout the year, SMCT was again highly involved in the Cemeteries and Crematoria Association of Victoria (CCAV). Our involvement included active participation in CCAV’s significant milestone 50th anniversary, which was celebrated at the annual conference at Creswick in May 2015.

SMCT is proud to have nominated our Records Manager, Ms Carrie Rafferty, for an excellence award through CCAV. Carrie developed the Cemeteries and Crematoria Retention and Disposal Authority (RDA), now in use throughout the industry in Victoria as the RDA PROS15/01. A first for the cemeteries and crematoria industry in Victoria and the Public Records Office Victoria (PROV), Carrie’s RDA was approved as a legal document under the Public Records Act (VIC) 1973 and endorsed by the PROV as standard best practise for records management within the industry.

enVironMentaL reSPonSiBiLity SMCT has continuously demonstrated our commitment to environmental sustainability and, during the reporting period, made significant improvements in water conservation, recycling and energy efficiency. Our Sustainability Committee is committed to delivering continuous improvements in these areas.

Strategic priority

nine Social and environmental responsibility

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SMCT is mindful of the environmental impact of each cemetery location within our care, and uses our best endeavours to ensure that all standards and regulations are met.

All locations have now been audited for sustainability opportunities and these are being prioritised and addressed by the Sustainability Committee.

Furthermore, we are developing and implementing sustainability programs in the delivery of all services, with particular consideration given to the design of buildings (minimising Volatile Organic Compounds, carbon intensive products, low energy consumption, long life and loose fit).

SBC’s new Clarence Reardon Centre (CRC) is a demonstration of our commitment to constructing environmentally sensitive buildings. Designed to blend in seamlessly with SBC’s expansive botanical garden environment, the surrounding trees are dramatically reflected in its specially treated glass façade. A leading-edge example of sustainable design, the building incorporates environmentally preferred building materials, rainwater tanks, the extensive use of solar panels and natural light and high-efficiency air-conditioning units, complemented by natural ventilation.

With assistance from the Office of Living Victoria, the Bunurong Memorial Park (BMP) development will have minimal future reliance on purchased water for irrigation. By pumping ground water and capturing surface water, BMP will become an

extraordinary example of a sustainable parkland environment.

In FY 2014/15, SMCT also increased its sustainability weighting criteria from 5% to 10% in the organisation’s purchasing policy for goods and services. This ensures our suppliers are cognisant of meeting their responsibilities regarding environmental sustainability.

carBon eMiSSionS rePort SMCT has reported on total carbon emissions to the Department of Health and the Environmental Protection Authority since 2011. The total CO2 (carbon) figure, as shown below, is calculated with assistance from the National Centre for Sustainability and Swinburne University of Technology, from data gathered throughout the year. This data provides a benchmark and basis for measuring the long-term success of SMCT’s sustainability strategies and action plans.

Due to large amounts of concrete used for major projects over the last two years there has been a slight increase in these figures.

2010/11 5,420.45 -5.1% 24.93 -7.5% All SMCT sites

2011/12 5,673.90 4.7% 26.7 7.1% All SMCT sites

2012/13 5,670.88 -0.1% 23.04 -13.7% All SMCT sites

2013/14 6,502.46 14.7% 28.40 23.2% All SMCT sites

2014/15 6,620.00 1.8% 23.64 -16.7% all SMct sites

year emissions (tonnes Var (%) emissions (tonnes Var (%) comment co2 equivalent) co2 per Fte)

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identiFying SMct’S toP FiVe carBon ProdUcing actiVitieS

no. 1 eLectricity Electricity is the greatest carbon producer and accounts for 36% (2,381 tonnes of CO2) of the total footprint.

Although the total electricity consumption has increased, in part due to the temporary need to utilise the previous administration centre, the new CRC solar system is generating approximately 125,000 kWh of electricity. This equated to a saving of 163 tonnes of CO2.

BMP’s energy use has increased by 16% due to the additional power required for the major redevelopment works under construction. Stage one of these works is due to be completed in early 2016. At that point in time, BMP will produce the majority of its own electricity needs.

no. 2 natUraL gaS The great majority of natural gas is used for cremations and accounts for 14% (949 tonnes of CO2) of the total footprint. Natural gas and LPG consumption is constantly being monitored and efficient cremator modifications were implemented at SBC in 2014. SMCT will continue to monitor progress on new innovations in the industry to ensure we are at the forefront of sustainability.

no. 3 WaSte to LandFiLL Waste that is sent to landfill from all locations accounts for 9% (610 tonnes of CO2) of the total footprint. This equates to 508 tonnes of landfill waste per annum. This is an area of our operation in which we are constantly seeking improvement.

To support our ongoing improvement in this area, key environmental initiatives during FY 2014/15 included:

• Recycling of all garden waste, concrete and flowers from the chapels and crematoriums.

• Implementation of an office waste recycling program across all locations. • Auditing and evaluating waste generated in the grounds. This data will be used to determine future initiatives.

no. 4 eMPLoyee coMMUting Employee commuting data, including travel type, distance and vehicle capacity, is collected each year, with the results in FY 2014/15 accounting for 9% (578 tonnes of CO2) of the total carbon footprint. During this period employees commuted by car a total of 2.5 million km or 8,917km per staff member. Commuting distances per Full Time Equivalent (FTE) have reduced by 12%. This reduction was supported by centralising some operations to SBC and by implementing flexible work practices.

no. 5 creMation ProceSS In FY 2014/15, SMCT performed 8,940 cremations and this accounts for 9% (624 tonnes of CO2) of the total footprint.

energy USe BenchMarking During the reporting period, a benchmarking comparison was conducted to ascertain the energy use performance of SMCT against similar public service organisations.

year total cremation emissions per emissions cremation (tonnes co2 (tonnes co2 equivalent) equivalent)

2010/11 987 0.11

2011/12 1,002 0.11

2012/13 1,012 0.11

2013/14 1,268 0.11

2014/15 1,019 0.09

creMation eMiSSionS taBLe

Electricity(GJ) 6,679 Gas,total(GJ) 18,494 Gas,buildinguse(GJ) 3,699 Totalenergyusedinbuildings(GJ) 10,468 Energyusedperm2(GJ/GFA) 0.48 tefmabenchmark(low)(GJ/GFA) 0.32 tefmabenchmark(average)(GJ/GFA) 0.71 tefmabenchmark(high)(GJ/GFA) 1.70

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cUStodianS oF hiStory

eStaBLiShMent oF SMct’S hiStoricaL FUnd Following the approval from the Department of Health and Human Services (DHHS) and the Victorian Auditor-General’s Office (VAGO) for cemetery trusts to raise funds for the restoration of monuments, SMCT’s Historical Restoration & Refurbishment Fund (HRRF) was established. Funds generated from non-core activities, including tours, publications, donations and special projects, can be used to deliver restoration projects.

SMCT also contributed to the Department of Health publication ‘In Memoriam: A Guide to the History and Heritage of Victoria’s Cemeteries’.

SigniFicant reStoration ProJect In FY 2014/15, the grave of Clarence Reardon, SBC’s first interment (20 March 1902), was cleaned and stabilised. SMCT also took over the management of the restoration of the iron railing of Sir Redmond Barry’s historic 1880 grave at Melbourne General Cemetery (MGC), a project that was initially commenced by the National Trust.

During the reporting period, we were delighted to be the recipient of an $80,000 grant from the Victorian Heritage Register Places and Objects Fund. These necessary funds were used for repairs and to complete drainage works of MGC’s historic gate lodge.

Additional works included the restoration of selected furniture pieces within MGC’s gate lodge, an interior upgrade with new furniture and improved customer service facilities.

SMCT continues to apply for funding to upgrade public amenities at historic locations.

Metaher hoUSe Another significant restoration during the period was that of the historic Metaher House, which was the first denominational building at SBC. SMCT and the Jewish community collaborated on the project and co-contributed funds for the restoration works. On 14 June 2015 a poignant re-dedication ceremony was held, complete with the unveiling of a commemorative plaque.

SMct energy Benchmarking

The Tertiary Education Facilities Management Association (TEFMA) produce a large-scale annual benchmarking report with information gathered from 65 educational institutions in Australia, New Zealand, and Hong Kong. Results from this indicated that the average energy used per square

meter of floor (Gross Floor Area) for this sector was 0.71 GJ/GFA. In FY 2014/15 SMCT used an average of 0.48 GJ/GFA, resulting in a low to medium range result when compared to similar organisations.

Only20%ofthetotalamountofnaturalgasisusedforbuildingpurposes.Theother80%isusedforcremations

Includeselectricityandnaturalgas

Source;TertiaryEducationFacilitiesManagementAssociation(tefma)BenchmarkReport2011.

SMCTfigureof0.48GJ/GFAisatthelowerendofthescaleforenergyuseinAustralianpublicbuildings.

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tree PreSerVation During the restoration of SBC’s Luculia memorial garden, SMCT ensured the preservation of the historic Bunya Bunya Pines and Algerian Oak.

aPicULtUre During the reporting period, honey production increased through SBC’s successful bee keeping initiative.

conSerVation ManageMent PLan SMCT’s recently completed a Conservation Management Plan for MGC. This has guided us in proceeding with the development of new graves in previously undeveloped areas.

The plan has also supported a successful funding grant, providing valuable guidance on a tree planting palette.

SchooLS engageMent During FY 2014/15, SMCT gave our first presentations of a historical nature at two schools: Pascoe Vale Girls’ College and St Catherine’s School, Toorak. Given the extremely positive response and our objective of demystifying cemeteries, we will continue to pursue opportunities to engage with schools.

the FUtUre

SociaL SMCT will continue to enhance our customer centric approach by extending our commitment to the communities we serve. Through our ongoing community engagement we are able to identify areas of need were partnerships and collaborative opportunities arise.

enVironMent Community research and consultation clearly indicates that there is interest in natural burials and,

as part of the BMP development we are scoping new products that will have minimal environmental impact.

In FY 2015/16 SMCT’s Sustainability Committee will be focussing on several initiatives to ensure best practice energy reduction at BMP.

SBC will also be installing Photovoltaic solar cells to the Crematorium roof to further reduce its carbon footprint and reliance on electricity generated from fossil fuels.

Education programs to reduce power consumption through the efficient management of infrastructure and employee behaviour will also be introduced.

To reduce waste to landfill, SBC will install waste stations within the grounds to encourage visitors to separate recyclable waste from landfill waste and investigate the viability of recycling organic food waste from commercial catering activities.

Several initiatives will be rolled out across SMCT locations to further our commitment to environmentally sustainable practices and asset management.

hiStoricaL initiatiVeS SMCT will continue to build awareness of our role as custodians of many of Victoria’s key historical assets. Priorities for FY 2015/16 include:

• Developing detailed maintenance plans for St Kilda and Brighton General Cemeteries to ensure that funds are targeted to achieve beautiful, community friendly environments. • Restoring significant monuments via the Historical Restoration & Refurbishment Fund. • Upgrading and restoring the face infrastructure and selected interior features of SBC’s historic Boyd and Renowden chapels. • Increasing engagement with schools to promote educational awareness of the rich history within SMCT’s locations.

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With strong foundations firmly in place, SMCT is now equipped to progress strategic opportunities by pursuing innovation and ‘blue sky’ thinking across the sector.

Aligned to our Purpose of ensuring every person, regardless of religion, culture or personal preference, is able to honour and celebrate their loved one as they choose, SMCT has developed a new Strategic Plan 2016-2020.

A key focus of this plan is to ensure we are engaging, listening and responding to our communities and continuing to provide customers with choice, flexibility and the opportunity for advocacy.

The Trust, together with the Leadership Team, have identified the following key Strategic Priorities to be pursued:

• Embracing Customer Centricity • Pursuing Strategic Growth • Enhancing Strategic Engagement • Investing in People Development

Whilst this five-year Strategic Plan will provide SMCT with a framework to operate within, we understand that we need to remain agile, outward looking and dynamic across all levels of the organisation, to remain responsive to the changing needs of our communities.

A major focus of SMCT’s FY 2015/16 Annual Plan will be the completion of our major re-development of Bunurong Memorial Park (BMP). Over the next year, our emphasis will be on bringing this visionary, multi-purpose community asset to life operationally.

BMP is firmly aligned to our vision of demystifying cemeteries and memorial parks by activating community participation across our locations.

By responding to the needs of our diverse customer base, SMCT will also continue to work towards improving our customer experience through the delivery of value-added products and services.

In addition, with inner urban cemeteries reaching full capacity and land becoming scarce, (including six of the eight cemeteries within our care reaching the end of their sales life) SMCT will focus on the acquisition of land and/or amalgamations with Class B cemeteries in strategic locations. Our objective is to meet the needs of the growing population into the future, whilst ensuring the

Looking

ahead

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long-term sustainability of SMCT in meeting our perpetual maintenance obligations.

SMCT will continue to focus on developing capability, in order to create and nurture an inspiring culture and to continue to attract and unlock our employees’ potential. Whilst we build and embed a customer centric culture across the organisation, we will introduce an Employee Value Proposition, supported by a Talent Management Framework, which incorporates reward and recognition and leverages diversity. A holistic and proactive approach to ‘Wellness at Work’ will also be an important cultural driver for the organisation.

In pursuing our strategic objectives and delivering the key actions specified in the Annual Plan, SMCT will manage strategic risk to ensure we create and protect value generated. To enable this, we will continue to review and refine our enterprise risk frameworks with a focus on identifying, managing and reporting on strategic risks.

smCt ProJeCts fy 2015/16 The significant ‘Strategies in Action’ projects that SMCT will deliver during the new financial year include:

• Commissioning of the new facilities at BMP, which will encompass five function rooms, three chapels, two multifaith rooms, a customer care centre and in-house café and florist (Café Vita et flores). • Engaging across cultural and faith communities to identify service needs that can be proactively accommodated through the facilities at BMP. This is to ensure that the care of the deceased is undertaken in a culturally sensitive and appropriate manner. • Consolidating our cultural engagement to ensure we are responsive in the memorialisation options we provide and identify further innovative product offerings that will enhance the cultural fit of our diverse communities.

• Promoting visitation to maximise community participation in events and recreational activities within our iconic and historic locations. • Continuing to develop strategic partnerships by identifying opportunities for collaborative initiatives, creating awareness of SMCT facilities and providing forums for community and customer advocacy. • Conducting a strategic review and developing an acquisition strategy for new land to be acquired and/or class B cemeteries to be amalgamated within the operating catchment of SMCT. • Integrating our product and service offerings to improve the customer experience across our value chain. • Developing SMCT’s online presence by leveraging opportunities for the organisation to to be ‘front of mind’ through digital channels. • Implementing and embedding our Employee Value Proposition, supported by a robust Talent Management Framework to identify, develop and retain high performing and high potential employees and to ensure an effective succession planning process for key roles within the business.

SMCT will maintain an unwavering focus on engaging, listening and responding to the changing needs of the diverse communities we serve.

Our commercial endeavours will enable the long-term sustainability of SMCT and, in turn, our ability to honour our pledge to maintain the cemeteries and memorial parks within our care in perpetuity.

SMCT’s foundation of engagement and customer centricity will ensure we will continue to provide innovative products and services that accurately meet the needs of the communities we serve.

SMct FinanciaL StateMentS 2015

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“Greatness is not in where we stand, but in what direction we are moving.

We must sail sometimes with the wind, and sometimes against it – but sail we must

and not drift, nor lie at anchor.” Oliver Wendall Holmes, Sr.

The attached financial statements for the Southern Metropolitan Cemeteries Trust have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, Financial Reporting Directions (FRD’s), the Australian Charities and Not-for-profit Commission Act 2012, Australian Accounting Standards including Interpretations and other mandatory professional reporting requirements.

We 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 30 June 2015 and financial position of Southern Metropolitan Cemeteries Trust as at 30 June 2015.

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

The Cemetery Trust Member’s of the Southern Metropolitan Cemeteries Trust adopted the attached financial statements on this day and authorise their issue once signed by us.

Sue Renkin Jane Grover Vincenzo Salvatore Trust Chairman Accountable Officer Director, Finance & Business Services Springvale Springvale Springvale7 August 2015 7 August 2015 7 August 2015

Southern Metropolitan cemeteries trust Trust Member’s, Accountable Officer’s and Chief Finance & Accounting Officer’s Declaration

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Note 2015 2014 $000 $000 income Cemetery Operations Income 2(a) 59,507 51,352Less Cost of Sales 3(a) (9,429) (6,174) 50,078 45,178 Investment Income 2(c) 12,951 13,323 total income 63,029 58,501 expenses Employee Expenses 3(c) (20,159) (18,696)Depreciation and Amortisation 4 (3,519) (3,230)Maintenance and Operating Costs 3(c) (3,361) (3,240)Administrative Costs 3(c) (3,801) (3,716)Other Operating Expenses 3(c) (2,242) (1,721)Audit Fees: Auditor General 23 (81) (78)Investment Management Fees 3(c) (620) (1,316)Impairment Loss 9 (195) 0Cemetery Levy 3(b) (2,156) (1,932) total expenses (36,134) (33,929) operating result for the year 26,895 24,572 other economic Flows included in net result Net Gain/(Loss) on Available for Sale Financial Instruments 2(d) 23,418 0 net result for the year 50,313 24,572

other comprehensive income items that may be reclassified subsequently to net result Net Fair Value Gain/(Loss) on Available for Sale Financial Investments 16(b) 2,200 18,678Write Down of Available for Sale Investments 16(b) (2,530) 0total items that may be reclassified subsequently to net result (330) 18,678 comprehensive result for the year 49,983 43,250 The Comprehensive Operating Statement should be read in conjunction with the accompanying notes.

comprehensive operating Statementfor the financial year ended 30 June 2015

FINANCIAL STATEMENTS Southern Metropolitan cemeteries trust

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Note 2015 2014 $000 $000 current assets Cash and Cash Equivalents 5 27,668 23,568Receivables 6 15,790 16,378Prepayments 132 107Inventories 8 8,798 8,289total current assets 52,388 48,342 non-current assets Available for Sale Investments 7 207,947 199,541Inventories 8 10,114 9,062Investment Property 9 2,515 2,710Intangible Assets 10 1,045 1,136Property, Plant & Equipment 11 87,330 70,166total non-current assets 308,951 282,615 total assets 361,339 330,957 current Liabilities Payables 12 5,439 5,432Unearned Income 13(a) 30,524 26,870Provision for Employee Benefits 14 2,692 2,584Provision for Onerous Contracts 13(b) 481 422total current Liabilities 39,136 35,308 non-current Liabilities Provision for Employee Benefits 14 448 459total non-current Liabilities 448 459 total Liabilities 39,584 35,767 net assets 321,755 295,190 equity Contributed Capital 16 61,464 61,464Accumulated Surplus/(Deficit) 16 19,889 11,063Property, Plant and Equipment Revaluation Surplus 16 914 914Available for Sale Investment Revaluation Surplus 16 2,200 25,948Perpetual Maintenance Reserve 16 237,288 195,801total equity 321,755 295,190 Commitments 19 Contingent Assets and Contingent Liabilities 20 The Balance Sheet should be read in conjunction with the accompanying notes

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Balance Sheet as at 30 June 2015


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Balance as at 30 June 2013 61,464 6,525 914 7,270 175,767 251,940 Net result for the year 0 24,572 0 0 0 24,572Other Comprehensive Income for the year 16(b) 0 0 0 18,678 0 18,678Net Transfer from Accumulated Surplus/(Deficit) 16(a) 0 (20,034) 0 0 20,034 0 Balance as at 30 June 2014 61,464 11,063 914 25,948 195,801 295,190 Net result for the year 0 50,313 0 (23,418) 0 26,895Other Comprehensive Income for the year 16(b) 0 0 0 (330) 0 (330)Net Transfer from Accumulated Surplus/(Deficit) 16(a) 0 (41,487) 0 0 41,487 0 Balance as at 30 June 2015 16 61,464 19,889 914 2,200 237,288 321,755

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

contributed capital

accumulated Surplus/ (deficit)

Property Plant and equipment

revaluation Surplus

available for Sale investment

revaluation Surplus

Perpetual Maintenance

reserve

total

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

note 2015 2014 $000 $000 cash Flows from operating activities receipts Receipts from Customers 66,322 52,675Goods and Services Tax received from the ATO 3,863 3,690Receipts from Investment Income 2(c) 12,951 13,323total receipts 83,136 69,688Payments Payments to Suppliers and Employees (47,138) (39,934)Goods and Services Tax paid to the ATO (2,573) (2,352)total Payments (49,731) (42,286)net cash Flows from operating activities 17 33,405 27,402 cash Flows from investing activities Payments for Property, Plant and Equipment 11(b) (20,688) (25,190)Proceeds from the Sale of Property, Plant and Equipment 2(b) 117 171Proceeds from the Sale of Available for Sale Investments 203,518 0Payments for Available for Sale Investments (212,252) (6,482) net cash Flows used in investing activities (29,305) (31,501) net increase/(decrease) in cash and cash equivalents 4,100 (4,099) Cash and Cash Equivalents at the Beginning of the financial year 23,568 27,667 Cash and Cash equivalents at the end of the financial year 5 27,668 23,568

The Cash Flow Statement should be read in conjunction with the accompanying notes.

cash Flow Statement for the year ended 30 June 2015


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statement of Changes in equity for the financial year ended 30 June 2015


1 Summary of significant accounting policies 67

2 Income 80

3 Expenses 81

4 Depreciation and amortisation 81

5 Cash and cash equivalents 82

6 Receivables 82

7 Available for sale investments 82

8 Inventories 83

9 Investment property 84

10 Intangible assets 85

11 Property, plant & equipment 85

12 Payables 89

13 Unearned income 89

14 Provision for employee benefits 90

15 Superannuation 92

16 Equity 92

17 Reconciliation of net cash inflow/(outflow) from operating activities to operating result 93

18 Financial instruments 94

19 Commitments 103

20 Contingent assets and contingent liabilities 104

21 Responsible persons & executive officers 104

21(a) Responsible persons 105

21(b) Executive officers’ disclosures 106

22 Ex-Gratia payments 107

23 Audit Fees 107

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Table of Contents

NOTES TO THE FINANCIAL STATEMENTS for the period ended 30 June 2015

1 Summary of significant accounting policies 67

2 Income 80

3 Expenses 81

4 Depreciation and amortisation 81

5 Cash and cash equivalents 82

6 Receivables 82

7 Available for sale investments 82

8 Inventories 83

9 Investment property 84

10 Intangible assets 85

11 Property, plant & equipment 85

12 Payables 89

13 Unearned income 89

14 Provision for employee benefits 90

15 Superannuation 92

16 Equity 92

17 Reconciliation of net cash inflow/(outflow) from operating activities to operating result 93

18 Financial instruments 94

19 Commitments 103

20 Contingent assets and contingent liabilities 104

21 Responsible persons & executive officers 104

21(a) Responsible persons 105

21(b) Executive officers’ disclosures 106

22 Ex-Gratia payments 107

23 Audit Fees 107

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Southern Metropolitan Cemeteries Trust, Notes to the Financial Statements for the year ended 30 June 2015

1. summary of significant accounting Policies

These annual financial statements represent the audited general purpose financial statements for Southern Metropolitan Cemeteries Trust (SMCT) for the year ended 30 June 2015. The purpose of the report is to provide users with information about the Cemetery Trust’s stewardship of resources entrusted to it.

(a) Statement of complianceThese financial statements of Southern Metropolitan Cemeteries Trust (SMCT) are general purpose financial statements which have been prepared in accordance with the Financial Management Act 1994, the Australian Charities and Not-for-profit Commission Act 2012, Australian Accounting Standards (AAS), which include interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements. In complying with AAS, SMCT has, where relevant, applied those paragraphs applicable for not-for-profit entities.

The financial statements also comply with relevant Financial Reporting Directions (FRD) issued by the Department of Treasury and Finance and relevant Standing Directions (SD) authorised by the Minister for Finance. The financial statements were authorised for issue by the Cemetery Trust Members of SMCT on 7 August 2015.

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

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2015, and the comparative information presented in these financial statements for the year ended 30 June 2014 unless otherwise stated (refer to Note 1(e) and 1(s)).

The going concern basis was used to prepare the financial statements.

The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy

the definitions and recognition criteria for those items, that is they are recognised in the reporting period to which they relate, regardless of when cash is received or paid.The financial statements are prepared in accordance with the historical cost convention, except for:• non-current physical assets (property, plant & equipment), which subsequent to acquisition, are measured at their fair value at the date of revaluation less any subsequent accumulated depreciation and impairment losses. Revaluations are made and re-assessed with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;• investment property after initial recognition, which is measured at fair value with changes reflected in the comprehensive operating statement; and• available-for-sale investments which is measured at fair value with movements reflected in equity until the asset is derecognised; and

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

Consistent with AASB 13 Fair Value Measurement and relevant FRDs, SMCT determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, investment property and financial instruments, and for non-recurring fair value measurements such as non-financial physical assets held for sale.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that a cemetery can access at measurement date (i.e. balance date being 30 June 2015)• Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly• Level 3 – Unobservable inputs for the asset or liability.

For the purpose of fair value disclosures, SMCT has determined classes of assets and liabilities


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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, SMCT 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 SMCT’s independent valuation agency.

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

The estimates and underlying assumptions are reviewed on an ongoing basis, at least annually. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates, relate to:• the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1 (k));• superannuation (refer to Note 1 (g) and Note 15);• fair value of available for sale investments (refer to Note 1 (j));• employee benefit provision (refer to Note 1(l)); • impairment;• perpetual maintenance reserve; and• receivables.

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

SMCT’s principal address is:Springvale Botanical CemeteryPrinces HighwaySpringvale, Victoria, 3171

(d) scope and presentation of financial statementscomprehensive operating StatementThe Comprehensive Operating Statement presents the operating result of SMCT. It presents significant categories of income and expenses included in the operating result to enhance the understanding of the financial performance of SMCT. It also shows other comprehensive income included in the comprehensive result for the year.

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

Statement of changes in equityThe Statement of Changes in Equity presents reconciliations of equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income related to other changes in equity.

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

rounding All amounts shown in the financial statements are expressed to the nearest $1,000 unless otherwise stated.Minor discrepancies in tables between totals and sums of components are due to rounding.

comparative informationWhere necessary the previous year’s figures are reclassified to facilitate comparison. There are no changes to this year’s comparatives.

Functional and Presentation currencyThese financial statements are presented in Australian dollars, the functional and presentation currency of SMCT.

(e) change in accounting policies AAsB 10 Consolidated financial statementsAASB 10 provides a new approach to determine whether an entity has control over another entity, and therefore must present consolidated financial statements. The new approach requires the satisfaction of all three criteria for control to exist over an entity for financial reporting purposes:


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(a) the investor has power over the investee;(b) the investor has exposure or rights to variable returns from its involvement with the investee; and (c) the investor has the ability to use its power over the investee to affect the amount of investor’s returns.

Based on the criteria prescribed in AASB 10, SMCT has reviewed the existing arrangements to determine if there are any additional entities that need to be consolidated. SMCT considers that this accounting policy has no impact on its financial statements.

aaSB 11 Joint arrangements In accordance with AASB 11, there are two types of joint arrangements; joint operations and joint ventures. Joint operations arise where the investors have rights to the assets and obligations for the liabilities of an arrangement. A joint operator accounts for its share of the assets, liabilities, income and expenses. Joint ventures arise where the investors have rights to the net assets of the arrangement; joint ventures are accounted for under the equity method. Proportionate consolidation of joint ventures is no longer permitted. SMCT has reviewed its existing contractual arrangements with other entities to ensure they are aligned with the new classifications under AASB 11. SMCT considers that this accounting policy has no impact on its financial statements.

aaSB 12 disclosures of interests in other entities AASB 12 prescribes the disclosure requirements for an entity’s interests in subsidiaries, associates and joint arrangements; and extends to the entity’s association with unconsolidated structured entities. SMCT considers that this accounting policy has no impact on its financial statements.

(f) income from transactionsIncome is recognised in accordance with AASB 118 Revenue and is recognised to the extent that it is probable that the economic benefits will flow to SMCT and the income can be reliably measured at fair value. Amounts disclosed as revenue, are shown, net of returns, allowances and duties and taxes.

cemetery operations incomeFees received for the rights of interment for graves, cremation memorials and mausoleum crypts are recognised as revenue at the time of purchase except for the memorialisation portion which is recognised at the time of interment. Fees received for interment, cremation and certain memorialisation products such as

granite and plaques are recognised as revenue in the period that the goods or services are provided. Fees received in advance of service provision are recorded as unearned income in accordance with Note 1(l).

distributionsDistributions and dividend revenue are recognised when the right to receive payment is established.Distributions and dividends represent the income arising from SMCT’s investment in financial assets.

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

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

Unearned incomeUnearned income represents moneys received in advance of the provision of goods or services. These monies are recorded as revenue in the period that the goods or services are provided, and as income received in advance at reporting date.

(g) expense recognitionExpenses generally represent cost of goods sold, services provided and day to day running costs, including maintenance and administrative costs, incurred in the normal operations of SMCT. Expenses are recognised as they are incurred and reported in the financial year to which they relate.

cost of goods SoldCosts of goods sold are recognised when the sale of an item or right of interment occurs which includes costs directly incurred in providing the item and/or transferring the cost or value of the item/s or value of land related to the right of interment from inventories.

employee expensesEmployee expenses include:• wages and salaries;• annual leave; • sick leave; • long service leave; and• superannuation expenses which are reported differently depending upon whether employees are members of the defined benefit or defined contribution plans.

SuperannuationIn relation to defined contribution (i.e. accumulation) superannuation plans, the


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associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred.

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

depreciationDepreciation is provided on infrastructure assets, property, plant and equipment, including freehold buildings, but excluding land and investment property (refer to Note (1k)).Depreciation is calculated on a straight line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. Estimates of the remaining useful lives, residual values and depreciation method for all assets are reviewed at least annually and adjustments made where appropriate.

Assets with a cost in excess of $3,000 (2014: $3,000) are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives.

Assets below the capitalisation threshold are expensed in the year.

Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.

The following table indicates the annual depreciation rates in use: 2015 2014Buildings 2% to 7% 2% to 7%Plant and Equipment 4% to 50% 4% to 50%Infrastructure and Improvements 1% to 20% 1% to 20%Office Equipment, Furniture and Fittings 4% to 33% 4% to 33%

amortisationIntangible assets with a cost in excess of $3,000 (2014: $3,000) are capitalised. Amortisation is allocated on a straight-line basis over the asset’s useful life, and is recognised as an expense. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be

capable of operating in the manner intended by management.

The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the asset concerned is tested as to whether its carrying value exceeds its recoverable amount. Intangible assets with finite useful lives are amortised over 4-5 year period (2014: 4-5 years). cemetery Levy In accordance with section 18Q of the Cemeteries and Crematoria Act 2003, SMCT is required to pay a percentage of gross earnings, as defined by the Department of Health and Human Services, to the Consolidated Fund held by the State of Victoria. Gross earnings is defined as cemetery operations income and investment income, excluding donations, government grants, profit/loss on the sale of investments and other assets and assets received free of charge. The levy for this reporting period is 3% (2014: 3%).

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

net gain/(Loss) on non-Financial assetsNet Gain/(Loss) on Non-Financial Assets and Liabilities includes realised and unrealised gains and losses as follows:• revaluation gains/(losses) on non-financial physical assets (refer note 1(k)); and• any gain/loss on the disposal of non-financial assets is recognised at the date of disposal and shown as the difference between the proceeds and the carrying value of the asset at that time.

net gain/(Loss) on Financial instrumentsNet Gain/(Loss) on Financial Instruments includes:• unrealised gains and losses from revaluations of financial instruments at fair value; and• impairment and reversal of impairment for financial instruments (refer Note 1(j)); and• disposal of financial assets and de-recognition of financial liabilities.

other gains/(Losses) from other comprehensive incomeOther gains/(losses) include the gains or losses from:• the revaluation of the present value of the long service leave liability due to changes in the bond interest rates; and


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• transfer of amounts from the reserves to accumulated surplus or net result due to disposal or de-recognition or reclassification.

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

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.

receivablesReceivables 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, receivables are measured at amortised cost using the effective interest method, less any impairment.

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

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

Fair value is determined in the manner described in Note 18.

(j) assetscash and cash equivalentsCash and cash equivalents comprise cash on hand and cash at bank, deposits at call

and highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short-term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

ReceivablesReceivables consist of:• contractual receivables, which 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.Receivables that are contractual are classified as financial instruments. Statutory receivables are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less any accumulated impairment.

Trade debtors are carried at nominal amounts due with settlement expected within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectable are written off when identified as such. A provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Investments and Other Financial AssetsInvestments and other financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.

Investments are classified as available-for-sale investments. SMCT classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition.

impairment of Financial assetsAt the end of each reporting period, SMCT assesses whether there is objective evidence that a financial asset or group of financial assets


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is impaired. All financial instrument assets are subject to annual review for impairment.

Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts and allowances for doubtful debts are classified as an expense. Financial assets including available for sale investments have been assessed for impairment in accordance with Australian Accounting Standards. Where the fair value of an investment at balance date has reduced by 20 per cent or more than its cost price; or where its fair value has been less than its cost price for a period of 12 or more months, the investment is treated as impaired. In order to determine an appropriate fair value as at 30 June 2015 for its portfolio of financial assets, SMCT obtained a valuation by independent investment advisors and compared it to the purchase price/valuation of the financial asset. This process was used to quantify the level of impairment on the portfolio of financial assets as at the end of the period.In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.

net gain/(Loss) on Financial instrumentsNet gain/(loss) on financial instruments includes unrealised gains and losses from revaluations of financial instruments. impairment and reversal of impairment for financial instruments at amortised cost and disposals of financial assets.

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

derecognition of Financial assetsA financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:• the rights to receive cash flows from the asset have expired; or• SMCT retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or

• SMCT has transferred its rights to receive cash flows from the asset and either:- has transferred substantially all the risks and rewards of the asset; or- has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Where SMCT has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of SMCT’s continuing involvement in the asset.

(k) non-Financial assetsinventories Inventories include goods and other property held either for sale or for distribution at zero or nominal consideration, or for consumption in the ordinary course of business operations. It excludes depreciable assets.

Inventories include land allocated for interment purposes held for sale. Inventory of land allocated for interment purposes is measured at the lower of cost and net realisable value on the basis of weighted average cost and includes adjacent land and landscaping that add to the amenity of the land for interment. Inventories are classified as either works in progress or finished goods. Works in progress includes undeveloped land designated for interment purposes and expenditure on inventories partially constructed, but not available for sale. Finished goods represent inventories available for sale to customers including developed land to be used for interment purposes.

Inventories also include stock held in maintenance stores, stocks of pre-cast concrete lined graves, pre-poured foundations for graves, memorial wall niches, mausoleum crypts and granite. These inventories are measured at the lower of cost and net realisable value. Cost for these inventories is determined on the basis of weighted average cost.

Inventories acquired for no cost or nominal consideration are measured at current replacement cost at the date of acquisition. Inventories expected to be sold/utilised within 12 months are recorded as current, with the balance as non-current assets.

Property, Plant and equipmentAll non-current physical assets are measured initially at cost and subsequently re-valued at


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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. Assets transferred as part of a merger/machinery of government change are transferred at their carrying amount.

crown Land controlled by SMCT has two primary purposes: use for right of interment and use for infrastructure (e.g. roads, chapels, buildings etc.) supporting the cemetery and crematorium operations. Land used for rights

of interment is accounted for as inventory in accordance with the inventories note as outlined above, whereas land used for infrastructure purposes is accounted for as part of property, plant and equipment as outlined in this note.

Crown land which has been reserved for cemetery and crematoria purposes is measured at fair value with regard to the land’s highest and best use after due consideration is made for legal and/or constructive restrictions imposed on the land, public announcements or commitments made in relation to the intended use of the land. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial assets will be their highest and best use.

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

Plant, equipment and Vehicles are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned, unless there is market evidence that current replacement costs are significantly different from the original acquisition cost. It is considered unlikely that depreciated replacement cost will be materially different from the existing carrying value.

revaluations of non-current Physical assets Non-current physical assets measured at fair value are re-valued in accordance with FRD 103F. A full revaluation normally occurs at least every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim

revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or decrements arise from differences between an asset’s carrying value and fair value.

Revaluation increments are recognised in “other comprehensive income” and accumulated in the property, plant and equipment revaluation surplus, except to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in the operating result, the increment is recognised as income in the operating result. Revaluation decrements are recognised immediately as expenses in the operating result and recognised in “other comprehensive income”, except to the extent that a credit balance exists in the property, plant and equipment revaluation surplus in respect of the same class of asset, they are debited directly to the property, plant and equipment revaluation surplus and recognised in “other comprehensive income”.

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

Revaluation surplus relating to an asset is normally not transferred to accumulated surplus/(deficit) on de-recognition of the relevant asset.

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

investment PropertyThe investment property is held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the State of Victoria.

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


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Subsequent to initial recognition at cost, investment properties are re-valued at each balance date to fair value by independent valuation. Fair values are determined based on a market comparable approach that reflects recent transaction prices for similar properties. Investment properties are neither depreciated nor tested for impairment.

intangible assetsIntangible assets represent identifiable non-monetary assets without physical substance, and include computer software and development costs.

Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Intangible assets with indefinite useful lives are not amortised but are assessed for impairment annually or whenever there is indication that the intangible assets may be impaired. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the cemetery.

PrepaymentsPrepayments represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.

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

impairment of non-Financial assetsIntangible assets with indefinite lives (and intangible assets not yet available for use) are tested annually for impairment (as described below) and whenever there is an indication that the asset may be impaired.

Apart from intangible assets with indefinite useful lives (and intangible assets not yet available for use), all other assets are assessed annually for indications of impairment, except for:• inventories;• financial assets; and• investment property. If there is an indication of impairment, the assets concerned are tested as to whether

their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off as an expense except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that same class of asset.

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

It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

(l) LiabilitiesPayables Payables consist of:• contractual payables which consist predominantly of accounts payable representing liabilities for goods and services provided to SMCT prior to the end of the financial year that are unpaid, and arise when SMCT becomes obliged to make future payments in respect of the purchase of these goods and services. The normal credit terms for accounts payable are usually Nett 30 days from end of month; and• statutory payables include payables such as goods and services tax and fringe benefits tax payable.

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

Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and are not included in the category of financial liabilities at amortised cost because they do not arise from a contract.


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ProvisionsProvisions are recognised when SMCT has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where the provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using the discount rate that reflects the time value of money and risks specific to the provision.When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

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

Wages and Salaries, annual Leave, Sick Leave and rostered days offLiabilities for wages and salaries, including non-monetary benefits, annual leave, accumulating sick leave and rostered days off (RDOs) are recognised in the provision for employee benefits as ‘current liabilities’, because SMCT does not have an unconditional right to defer settlement of these liabilities.Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave, sick leave and RDOs are measured at:• Undiscounted value – if SMCT expects to wholly settle within 12 months; or• Present value – if SMCT does not expect to wholly settle within 12 months.

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

Unconditional LSL (representing seven or more years of continuous service) is disclosed in the financial statements as a current liability even where SMCT does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:• Undiscounted value – if SMCT expects to wholly settle within 12 months; and• Present value – if SMCT does not expect to wholly settle within 12 months.

Conditional LSL (representing less than seven years of continuous service) is disclosed as a non-current liability because 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 the non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as “another economic flow”.

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

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

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

Liabilities for termination benefits are recognised when a detailed plan for the termination has been developed and a valid expectation has been raised with the affected employees affected that the terminations will be carried out. The liabilities for termination benefits are recognised in other creditors unless the amount or timing of the payments is uncertain, in which case they are recognised as a provision. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.


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

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

defined Contribution superannuation PlanThe defined contribution plans receive both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings in accordance with the Superannuation Guarantee Legislation (9.5%). SMCT’s current contributions range between 9.5% and 12%. No further liability accrues to SMCT as the superannuation benefits accruing to employees are represented by their share of the net assets of the respective Superannuation Fund.

defined Benefit superannuation PlanThe defined benefit plan provides benefits to employees based on years of service and final average salary. SMCT makes employer contributions to the defined benefits category of the Superannuation Fund at the rates determined by the Fund’s Trustee based upon the result of the most recent full actuarial investigation conducted by the Fund’s actuary, being as at 31 December 2014. SMCT’s current contribution ranges between 9.5% to 12.75% of superannuation salary, plus any difference between the resignation and retrenchment benefits paid to any retrenched employees, plus contribution tax.

unfunded defined Benefit superannuation LiabilityThe Local Authorities Superannuation Fund (LASF), known as Vision Super since 2002, is a not-for-profit industry fund for cemeteries and certain other agencies. Vision Super is the Trustee of both the defined benefit plan (closed since 1993) and the Super Saver (accumulation or defined contribution) fund.

In accordance with regulations, the Fund’s Trustees are required to complete an actuarial review of the superannuation funds at least every three years to ensure the current assets are adequate to meet the benefits that have previously been promised to members.

Based on the advice from the Fund’s Trustees, there is no shortfall in the defined benefit plan as at 30 June 2015. The accounting treatment for contributions to defined contributions and defined benefit plans has been outlined in Note 1(g).

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

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

onerous contracts (on Unearned income)A provision is recognised for onerous contracts where the unavoidable costs of meeting the contractual obligations exceed the economic benefits that are expected to be received under the contract.

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

de-recognition of Financial LiabilitiesA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised as an expense.

(m) LeasesA lease is a right to use an asset for an agreed period of time in exchange for payment.Leases are classified at their inception as either operating or finance leases.


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Leases of property, plant and equipment are classified at their inception as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Operating lease arrangements are currently in place between SMCT and third parties at the investment property (in Dromana) and the house at Cheltenham Pioneer, both owned by SMCT.

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

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

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

Perpetual Maintenance reserveUnder section 12 of the Cemeteries and Crematoria Act 2003, SMCT must have regard to the perpetual maintenance obligations of cemeteries entrusted within its care. Fees received in respect of the interment right for cremation memorials, graves and mausoleum crypts include amounts for perpetual maintenance to be carried out in future years. Such amounts are transferred to the relevant reserve and released in equal amounts over the periods for which the maintenance has been contracted. SMCT sets aside monies into the reserve from the sale of each right of interment as follows:• Cremation Memorials: 60%

• Graves: 90%• Mausoleum Crypts: 70%These funds are amortised equally over 100 years, other than cremation memorials with limited tenure which are amortised over the period of the tenure.

(o) commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to note 19) at their nominal value and are inclusive of the goods and services tax (GST) payable. In addition, where it is considered appropriate and it provides additional information to users, the net present value 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 LiabilitiesContingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.

(q) goods and Services tax (gSt) Income, expenses and assets (other than receivables) are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the ATO. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the balance sheet.

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

(r) AAss issued that are not yet effectiveCertain new Australian accounting standards and interpretations have been published that are not mandatory for the 30 June 2015 reporting period. As at 30 June 2015, the following standards and interpretations have been issued but were not mandatory for the reporting period 30 June 2015. SMCT has not and does not intend to adopt these standards early.


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Standard/Interpretation

AASB 9 FinancialInstruments

AASB 15 Revenue fromContracts with Customers

AASB 2014 1 Amendments toAustralian AccountingStandards [Part E FinancialInstruments]

Applicable for annual reporting periods beginning on

1 Jan 2018

1 Jan 2017

(Exposure Draft 263 – potential deferral to 1 Jan 2018)

1 Jan 2018

Summary

The key changes include the simplifiedrequirements for the classification andmeasurement of financial assets, a newhedging accounting model and arevised impairment loss model torecognise impairment losses earlier, asopposed to the current approach thatrecognises impairment only whenincurred.

The core principle of AASB 15 requiresan entity to recognise revenue when theentity satisfies a performance obligationby transferring a promised good orservice to a customer.

Amends various AASs to reflect the AASB’s decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure require-ments.

Impact on public sector entity financial statements

The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss.

While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed.

The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract-modifications. A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods.Revenue that was deferred andamortised over a period may nowneed to be recognised immediately as a transitional adjustment against the opening retained earnings if there are no former performance obligationsoutstanding.

This amending standard will defer the application period of AASB 9 to the 2018-19 reporting period in accordance with the transition requirements.


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Standard/Interpretation

AASB 2014 4 Amendments to Australian Accounting Stand-ards – Clarification of Acceptable Methods of Depreciation and Amortisation[AASB 116 & AASB 138]

AASB 2015 6 Amendments toAustralian AccountingStandards – Extending RelatedParty Disclosures to Not-forProfit Public Sector Entities[AASB 10, AASB 124 & AASB 1049]

Applicable for annual reporting periods beginning on

1 Jan 2016

1 Jan 2016

Summary

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.

The Amendments extend the scope of AASB 124 Related Party Disclosures to not-for-profit public sector entities. A guidance has been included to assist the application of the Standard by not-for-profit public sector entities.

Impact on public sector entity financial statements

The assessment has indicated that there is no expected impact as the revenue-based method is not used for depreciation and amortisation. to be monitored and assessed.

The amending standard will result in extended disclosures on the entity’s key management personnel (KMP), and the related party transactions.

In addition to the above new standards, the AASB has issued a list of 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 5 Amendments to Australian Accounting Standards arising from AASB 15• 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

(s) aaSs issued and adopted earlyAs at 30 June 2015, the following standards and interpretations have been issued and SMCT has elected to apply them before their mandatory application date. They were not mandatory for the reporting period 30 June 2015. The impact of the early adoption resulted in reduced disclosures relating to quantitative information of ‘significant unobservable inputs’ and the ‘sensitivity analysis’ in Note11(f).• AASB 2015 7 Fair Value disclosures of Not-for-Profit Public Sector Entities


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Note 2015 2014 $000 $000

Mausoleum Income 12,564 5,942Interment Income 4,386 4,196Grave Income 18,563 18,461Cremation Income 6,703 6,567Cremation Memorial Income 5,247 5,231Memorialisation 5,245 5,096Government Grants 390 209Retail 3,066 2,480Other Income 3,320 3,260Gain/(Loss) on Disposal of Property, Plant and Equipment 2(b) 23 (92) total cemetery operations income 59,507 51,352

2b. disposal of Property, Plant & equipment

Proceeds 117 224Written Down Value of Property, Plant and Equipment disposed (94) (316) total gain/(Loss) on disposal of Property, Plant and equipment 23 (92)

2c. investment income

Interest income Interest from Cash and Cash Equivalents 613 1,026Interest from Available for Sale Investments 129 629 742 1,655Distributions 11,022 10,641Other Investment Income - Franking Credits 1,187 1,027 total investment income 12,951 13,323

2d. other economic Flows included in net result

Proceeds from Available for Sale Investments sold 203,518 0Fair value of Available for Sale Investments sold (180,100) 0 total other economic Flows included in net result 23,418 0

2. revenue 2a. cemetery operations income


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Note 2015 2014 $000 $000

Rights of Interment 6,412 3,590Memorialisation 1,729 1,691Retail 1,071 894Other 217 (1)total cost of Sales 9,429 6,174

3b. cemetery Levy

Cemetery Levy 2,156 1,932total cemetery Levy 2,156 1,932

3c. expenses

Employee Expenses 20,159 18,696Maintenance and Operating Costs 3,361 3,240Administrative Costs 3,801 3,716Other Operating Expenses 2,242 1,721Investment Management Fees 620 1,316 total expenses 30,183 28,689

4. depreciation and amortisation

depreciation Buildings, Infrastructure and Improvements 11(b) 1,780 1,486Plant and Equipment 11(b) 1,020 1,015Office Equipment, Furniture and Fittings 11(b) 306 286total depreciation 3,106 2,787 amortisation Computer Software 10 413 443total amortisation 413 443 total depreciation and amortisation 3,519 3,230

3. expenses 3a. cost of Sales


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2015 2014 $000 $000

Cash on Hand 7 7Cash at Bank 27,661 23,561total cash and cash equivalents 27,668 23,568

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

6. receivables

contractual receivables Trade Debtors 1,744 1,938 Provision for Doubtful Debts (57) 0 Sundry Debtors 6,838 6,525 Accrued Interest and Distributions 6,830 7,737 15,355 16,200

Statutory receivables Net GST Receivable 435 178 435 178

total receivables 15,790 16,378

No impairment for credit losses has been recorded during the financial period. (2014: nil) The nature and extent of risk arising from receivables (excluding statutory receivables such as GST) and ageing of receivables is contained in Note 18.

7. available for Sale investments

Non-Current Interest Bearing Investments 0 12,276 Managed Units Investments 207,947 187,265

total available for Sale investments 207,947 199,541

(a) Ageing analysis of available for sale investments Please refer to Note 18.2(iv) for the ageing analysis of available for sale investments (b) Nature and extent of risk arising from investments Please refer to Note 18.2 for nature and extent of credit risk arising from available for sale investments

5. cash and cash equivalents


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2015 2014 $000 $000

Current Work in Progress Land: Interment Purposes 2,225 2,225 Grave Foundations/Beams 1,768 1,969 Mausoleum Crypts 0 42 3,993 4,236

Finished goods Consumables/Maintenance Stores 198 149 Land: Interment Purposes 121 124 Grave Foundations/Beams 1,477 1,163 Mausoleum Crypts 2,791 2,409 Cremation Memorials 87 61 Other 131 147 4,805 4,053 total current inventories 8,798 8,289

Non-Current Finished goods Land: Interment Purposes 273 336 Grave Foundations/Beams 3,909 2,016 Mausoleum Crypts 3,830 5,615 Cremation Memorials 2,102 1,095 total non-current inventories 10,114 9,062

total inventories 18,912 17,351

represented by: Consumables/Maintenance Stores 198 149 Land: Interment Purposes 2,619 2,685 Grave Foundations/Beams 7,154 5,148 Mausoleum Crypts 6,621 8,066 Cremation Memorials 2,189 1,156 Other 131 147 total inventories 18,912 17,351

8. inventories


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2015 2014 $000 $000

Balance at the Beginning of the year 2,710 2,710Gain/(Loss) from Fair Value Adjustments (195) 0Balance at the end of the year 2,515 2,710

9b. Fair value measurement hierarchy for investment property as at 30 June 2015

Level 1(i) Level 2 (i) Level 3 (i) $000 $000 $000 $000 investment Property 2,515 0 2,515 0 2,515 0 2,515 0

Fair value measurement hierarchy for investment property as at 30 June 2014

Level 1(i) Level 2 (i) Level 3 (i) $000 $000 $000 $000 investment Property 2,710 0 2,710 0 2,710 0 2,710 0

(i) Classified in accordance with the fair value hierarchy

There have been no transfers between levels during the period. This property was valued by the Valuer General of Victoria (VGV) as at 30 June 2015.

For investment property measured at fair value, the current use of the asset is considered the highest and best use.

9. investment Property 9a. Movement in investment property

carrying amount as at Fair value measurement at end 30 June 2015 of reporting period using:

carrying amount as at Fair value measurement at end 30 June 2014 of reporting period using:


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2015 2014 $000 $000

Computer Software 3,142 2,923 Accumulated Amortisation (2,097) (1,787) total intangible assets 1,045 1,136

intangible assets Movement reconciliation Balance at the Beginning of the Year 1,136 1,119 Additions 322 460 Amortisation (413) (443) Balance at the end of the year 1,045 1,136

11. Property, Plant & equipment 11a. gross carrying amount and accumulated depreciation

Cemetery Infrastructure Land at Fair Value 12,346 12,346 Less Impairment 0 0 total Land 12,346 12,346 Buildings, Infrastructure and Improvements at Fair Value 59,607 39,860 Less Accumulated Depreciation (4,774) (2,999) total Buildings, infrastructure and improvements 54,833 36,861

Plant and Equipment at Fair Value 7,532 6,847 Less Accumulated Depreciation (3,162) (2,358) total Plant and equipment 4,370 4,489

Office Equipment, Furniture and Fittings at Fair Value 1,963 1,683 Less Accumulated Depreciation (1,053) (750) total office equipment, furniture and fittings 910 933

capital Works in Progress at cost 14,871 15,537

total Property, Plant & equipment 87,330 70,166

10. intangible assets


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11b. reconciliation of Property, Plant and equipment

Reconciliation of the carrying amounts of each class of asset for SMCT at the beginning and end of each financial period is set out below.

Balance as at 1 July 2013AdditionsExpenditure on Capital WorksCompleted WorksDisposalsDepreciationTransfers between Non-Financial assetsBalance as at 30 June 2014

Balance as at 1 July 2014AdditionsCompleted WorksDisposalsDepreciationBalance as at 30 June 2015

cemetery Land infrastructure

$000

2,9239,500

0000

(77)12,346

12,3460000

12,346

Buildings, infrastructure

and improvements

$000

38,16477

0259

(153)(1,486)

036,861

36,86131

19,744(23)

(1,780)54,833

total

$000

48,48626,373(1,053)

(460)(316)

(2,787)

(77)70,166

70,16620,687

(324)(94)

(3,106)87,330

Plant and equipment

$000

4,01550

01,602(163)

(1,015)

04,489

4,48911

956(66)

(1,020)4,370

office equipment,

Furniture and Fittings

$000

1,02400

1940

(286)

0933

9330

288(5)

(306)910

capital Works

in Progress

$000

2,35916,746(1,053)(2,515)

00

015,537

15,53720,646

(21,312)00

14,871

An independent valuation of SMCT’s land and buildings was performed by the Valuer-General of Victoria to determine the fair value of the land and buildings. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arms length transaction. The valuation was based on independent assessments. The effective date of the valuation is 30 June 2012.


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2015 2014 $000 $000

Buildings, infrastructure and improvements at fair value 1,780 1,486 Plant and Equipment at fair vale 1,020 1,015 Office Equipment, Furniture and Fittings at fair value 306 286

total 3,106 2,787

(i) The useful lives of assets as stated in Policy Note 1 are used in the calculation of depreciation.

11d. Fair value measurement hierarchy for assets as at 30 June 2015

Level 1(1) Level 2 (1) Level 3 (1) $000 $000 $000 $000 Cemetery land infrastructure at fair value 12,346 9,500 2,846Buildings, infrastructure and improvements at fair value 54,833 54,833Plant and equipment at fair value 4,370 4,370Office equipment, furniture and fittings at fair value 910 910 Capital works in progress at fair value 14,871 14,871 87,330 0 9,500 77,830

Fair value measurement hierarchy for assets as at 30 June 2014 Level 1(1) Level 2 (1) Level 3 (1)

$000 $000 $000 $000 Cemeterylandinfrastructureatfairvalue 12,346 9,500 2,846Buildings,infrastructureandimprovementsatfairvalue 36,861 36,861Plantandequipmentatfairvalue 4,489 4,489Officeequipment,furnitureandfittingsatfairvalue 933 933Capitalworksinprogressatfairvalue 15,537 15,537 70,166 0 9,500 60,666

Note (1) Classified in accordance with the fair value hierarchy, see Note 1. There have been no transfers between levels during the period.

11c. aggregate depreciation recognised as an expense during the year

Carrying amount as at Fair value measurement at end 30 June 2015 of reporting period using:


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11e. reconciliation of Level 3 fair value

opening balancePurchases (sales)

Gain or losses recognised in net result - Depreciation closing Balance

cemetery Land infrastructure

land at fair value

$000

2,8460

0

2,846

Buildings, infrastructure

and improvements

at fair value

$000

36,86119,572

(1,780)

54,833

Plant and equipmentat fair value

$000

4,489901

(1,020)

4,370

office equipment,

Furniture and Fittings

at fair value

$000

933283

(306)

910

capital Works in Progress

at cost

$000

15,537(666)

0

14,871

11f. description of significant unobservable inputs to level 3 valuations Valuation technique

cemetery infrastructure land at fair value

Over the 8 cemetery sites Market based direct Community Service Obligation comparison approach (CSO) adjustment

Buildings, infrastructure and improvements at fair value

Buildings and improvements Depreciated Useful life of specialised buildings over the 8 cemetery sites replacement cost

Cost per unit

Infrastructure over the 8 cemetery sites Depreciated replacement cost Useful life of specialised infrastructure

Cost per unit

Plant and equipment at fair value

Plant and equipment Depreciated replacement cost Cost per unit over the 8 cemetery sites

Useful life of P&E

office equipment, furniture and fittings at fair value

Office equipment, furniture and fittings Depreciated replacement cost Cost per unit over the 8 cemetery sites

Useful life of equipment

capital works in progress at cost

Capital works in progress over the 8 cemetery sites Cost Gross replacement cost

significant unobservable inputs


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2015 2014 $000 $000

current contractual Trade Creditors 2,540 1,747 Accruals 2,521 3,325 Other Creditors 378 360 Unfunded superannuation liability 0 0 total current Payables 5,439 5,432 The nature and extent of risk arising from payables and ageing of payables is contained in Note 18.

13. Unearned income 13a. Unearned income

current Deposits received in advance 30,524 26,870

total Unearned income 30,524 26,870

13b. Provision for onerous contracts

Balance at the beginning of year 422 565 Net amount taken to operating statement 59 (143) Balance at the end of year 481 422

total Provision for onerous contracts 481 422

12.Payables


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2015 2014 $000 $000

current Employee benefits Annual Leave (unconditional and expected to be settled within 12 months) 1,075 988 Annual Leave (unconditional and expected to be settled after 12 months) 0 0 Rostered Days Off (unconditional and expected to be settled within 12 months) 53 46 Long Service Leave (unconditional and expected to be settled within 12 months) 239 233 Long Service Leave (unconditional and expected to be settled after 12 months) 1,010 1,022 Continuity of Service (conditional and expected to be settled within 12 months) 33 31 2,410 2,320

employee benefit on-Costs Annual Leave (unconditional and expected to be settled within 12 months) 125 112 Annual Leave (unconditional and expected to be settled after 12 months) 0 0 Rostered Days Off (unconditional and expected to be settled within 12 months) 6 6 Long Service Leave (unconditional and expected to be settled within 12 months) 28 27 Long Service Leave (unconditional and expected to be settled after 12 months) 118 116 Continuity of Service (conditional and expected to be settled within 12 months) 5 3 total current 2,692 2,584

non-current Long Service Leave (conditional and expected to be settled after 12 months) 305 255 Continuity of Service (conditional and expected to be settled after 12 months) 97 171 On-costs Long Service Leave (conditional and expected to be settled after 12 months) 35 29 On-costs Continuity of Service (conditional and expected to be settled after 12 months) 11 4

total non-current 448 459 total Provision for employee Benefits 3,140 3,043

14. Provision for employee Benefits


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2015 2014 $000 $000

(a) employee benefits and on-costs Current employee benefits Annual leave 1,075 988 Long service leave 1,249 1,255 Rostered days off 53 46 Continuity of service 33 31 non-current employee benefits Long service leave 305 255 Continuity of service 97 171 total employee benefits 2,812 2,746 Current on-costs 282 264 Non-current on-costs 46 33 total on-costs 328 297 total employee benefits and on-costs 3,140 3,043

(b) Movement in Provision for Long Service Leave (including on-costs) Balance at the Beginning of the Year 1,682 1,820 Provision made during the Year Revaluations due to Change in Discount Rates (123) (70) Expense Recognising Employee Service 496 319 Payments for Long Service Leave (320) (387) Balance at the end of the year 1,735 1,682

Movement in Provision for annual Leave (including on-costs) Balance at the Beginning of the Year 1,100 1,089 Provision made during the Year Expense Recognising Employee Service 1,290 1,292 Payments for Annual Leave (1,190) (1,281) Balance at the end of the year 1,200 1,100


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

contribution for contribution contribution for contribution the year ending outstanding the year ending outstanding 30/06/2015 at the year ending 30/06/2014 at the year ending 30/06/2015 30/06/2014 $000 $000 $000 $000defined Benefits LASB/Vision Super 305 0 356 0defined Contributions Vision Super 872 75 856 75Other 669 63 525 49total 1,846 138 1,737 124

16.equity 2015 2014 $000 $000

equity Contributed Capital 61,464 61,464Accumulated Surplus/(Deficit) 19,889 11,063Property, Plant and Equipment Revaluation Surplus 914 914Available for Sale Investment Surplus 2,200 25,948Perpetual Maintenance Reserve Revaluation 237,288 195,801total equity 321,755 295,190

Accumulated surplus/(deficit) (a) movement in Accumulated surplus/(deficit) Balance at the Beginning of the Year 11,063 6,525Net Result for the Year 50,313 24,572Net Transfer to Perpetual Maintenance Reserve (41,487) (20,034)Balance at the end of the year 19,889 11,063

(b) Movement in available for Sale investment revaluation Surplus Balance at the Beginning of the Year 25,948 7,270Realised Valuation (Gain)/Loss (23,418) 0Write Down of Available for Sale Investments (2,530) 0Valuation Gain/(Loss) Recognised 2,200 18,678Balance at the end of the year 2,200 25,948

(c) Movement in Perpetual Maintenance reserve Balance at the Beginning of the Year 195,801 175,767Funds transferred from Accumulated Surplus/(Deficit) 44,535 22,587Funds amortised to provide for perpetual maintenance (3,048) (2,553)Balance at the end of the year 237,288 195,801


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16.equity (cont) 2015 2014 $000 $000

represented by Cremation Memorials 35,264 31,775Graves 131,337 108,222Mausoleum Crypts 70,687 55,804total 237,288 195,801

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

(d) Property, Plant and equipment revaluation Surplus Plant and equipment Balance at the Beginning of the Year 914 914Balance at the end of the year 914 914 represented by : Plant and equipment Balance at the Beginning of the Year 914 914Balance at the end of the year 914 914

17. reconciliation of net Cash inflow/(outflow) from operating Activities to operating result for the year

operating result for the year note 26,895 24,572 non-cash Flows in operating result Depreciation/Amortisation 4 3,519 3,230(Gain)/Loss on Disposal of Property, Plant and Equipment 2(b) (23) 92Provision for Doubtful Debts 6 57 0(Gain)/Loss from Fair Value Adjustment of Investment Property 9 195 0 changes in assets and Liabilities Decrease/(Increase) in Receivables 531 (4,321)(Increase) in Prepayments (25) (48)(Increase)/Decrease in Inventories (1,561) 361Increase in Payables 7 866Increase/(Decrease) in Provisions 156 (550)Increase in Unearned Income 3,654 3,200net cash Flows from operating activities 33,405 27,402


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18. Financial instruments 18.1 Financial risk Management objectives and Policies

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

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, with respect to each class of financial asset and, financial liability are disclosed in Note 1 to the financial statements.

SMCT’s main financial risks include credit risk, liquidity risk, interest rate risk, foreign currency risk and equity price risk. SMCT manages these financial risks in accordance with its financial risk management policy, and through the oversight of the Finance & Investment Committee.

The main purpose in holding financial instruments is to prudentially manage SMCT’s financial risk within government policy parameters.

(i) categorisation of Financial instruments*

account Balance note category carrying carrying amount amount 2015 2014 $000 $000

Financial assets Cash and Cash Equivalents 5 Cash 27,668 23,568Receivables 6 Receivables (at amortised cost) 15,355 16,200Available for Sale Investments 7 Available for Sale Investments (at fair value through equity) 207,947 199,541total Financial assets 250,970 239,309 Financial Liabilities Payables 12 Financial Liabilities (at amortised cost) 5,439 5,432total Financial Liabilities 5,439 5,432 net holding gain/(Loss) on Financial instruments by category Financial assets Cash and Cash Equivalents 613 1,026Available for Sale Investments (at fair value through equity) 13,351 29,948 total Financial assets 13,964 30,974

*The total amount of financial assets and liabilities disclosed here excludes statutory receivables (e.g. GST input tax credits receivable) and statutory payables (e.g. tax payable).

For cash and cash equivalents, receivables and available-for-sale investments, the net gain or loss is calculated by taking the interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result.

There are no gains/(losses) on financial liabilities in the net result.


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18.2 credit risk

Credit risk arises from the financial assets of SMCT which comprise cash and cash equivalents, trade and other receivables and available for sale investments. The exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to SMCT.

Credit risk is measured at fair value and is monitored on a regular basis.Provision of impairment for financial assets is calculated based on past experience, and current and expected changes in client credit ratings.

(i) Policy in Managing credit riskSMCT does not have any material credit risk exposure to a single debtor or group of debtors. In respect to trade and sundry receivables, SMCT minimises concentrations of credit risk by undertaking transactions with a large number of customers. Trade debtors are carried at nominal amounts due with settlement expected within 30 days from the date of recognition. Sundry debtor terms are normally up to a maximum of five months.

In addition, management reviews on an ongoing basis the age analysis of receivables to assess the quality of them and apply any action required to ensure the collectability of the debt. According to past experience in managing the credit risk on receivables, SMCT has assessed this risk as low.

As the purchase is for a right of interment, customers are therefore unable to use the service until the balance outstanding is paid.

Management has assessed the credit risk associated with the cash and cash equivalents as minimal. The amounts are allocated to reputable financial institutions which have a high credit rating.

Available for sale investments are managed in accordance with SMCT investment policy, which stipulates, where applicable, minimum credit ratings. The vast majority of available for sale investments are managed unit funds, which are not explicitly rated, although, the underlying investments within each fund may have a higher credit rating than the applicable minimum required. The investment policy is reviewed regularly by management in conjunction with an independent investment manager.

SMCT uses an external manager to manage most of the funds allocated as available for sale investments. The total funds invested are diversified across a range of reputable and experienced external advisors and financial institutions. This mitigates the credit risk on this class of financial assets.

(ii) Maximum exposure to credit riskSMCT’s maximum exposure to credit risk at balance date in relation to each class of financial asset is represented below:

note 2015 2014 $000 $000

Financial assets Cash and Cash Equivalents 5 27,668 23,568Receivables 6 15,355 16,200Available for Sale Investments 7 207,947 199,541total Financial assets 250,970 239,309


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96

18.2 credit risk (cont) (iii) credit Quality of contractual Financial assets that are neither Past due, nor impaired as at 30 June 2015 ($000)

Financial assetsCash and Cash Equivalents Cash on Hand 0 0 7 7 Cash at Bank 27,661 0 0 27,661Receivables 0 0 15,355 15,355Available for Sale Investments Managed Units 0 0 207,947 207,947 total financial assets 27,661 0 223,309 250,970

credit Quality of contractual Financial assets that are neither Past due, nor impaired as at 30 June 2014 ($000)

Financial assetsCash and Cash Equivalents Cash on Hand 0 0 7 7 Cash at Bank 23,561 0 0 23,561Receivables 0 0 16,200 16,200Available for Sale Investments Interest Bearing 0 12,276 0 12,276 Managed Units 0 0 187,265 187,265total financial assets 23,561 12,276 203,472 239,309

Financial institutions Financial institutions other total (aa credit rating) (a credit rating) (not rated)

Financial institutions Financial institutions other total (aa credit rating) (a credit rating) (not rated)


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97

(iv) ageing analysis of Financial assets as at 30 June 2015 ($000)

Financial assets

Cash and Cash Equivalents Cash on Hand Cash at Bank Receivables Available for Sale Investments Managed Unitstotal Financial assets

(iv) ageing analysis of Financial assets as at 30 June 2014 ($000)

Financial assets

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

(v) Contractual financial assets that are either past due or impaired

There are no material financial assets which are individually determined to be impaired. Currently SMCT does not hold any collateral as security nor credit enhancements relating to its financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at their carrying amounts as indicated. The ageing analysis table above discloses the ageing only of contractual financial assets that are past due but not impaired.

not Past due and not

impaired

727,66114,587

207,947

250,202

Less than 1 Month

00

356

0

356

1-3 Months

00

44

0

44

3-12 Months

00

311

0

311

1-5 years

000

0

0

impaired Financial

assets

00

57

0

57

carrying amount

727,66115,355

207,947

250,970

Past due but not impaired


impaired

723,56115,675

12,276187,265

238,784

Less than 1 Month

00

324

00

324

1-3 Months

00

112

00

112

3-12 Months

00

89

00

89

1-5 years

000

00

0

impaired Financial

assets

000

00

0

carrying amount

723,56116,200

12,276

187,265

239,309



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98

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

(i) Policy in Managing Liquidity RiskSMCT’s objectives in managing liquidity risk is to ensure that all obligations will be met as they fall due, while ensuring maximum funds are available for investment to meet longer term perpetual maintenance requirements.

SMCT manages liquidity risk by monitoring cash flows to ensure sufficient funds are maintained in the transactional bank account to meet liabilities as they fall due. This is done while ensuring that surplus funds are transferred for investment. Daily monitoring occurs, with monthly reports delivered to management regarding the cash flow position and cash flow forecasts. SMCT believes that this policy ensures sufficient funds are held to allow for the proper administration of the Trust.

SMCT has assessed this risk as minimal considering the current positive position of cash flow from operations and nature of the current assets, available for sale investments and current liabilities.

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

2015 2014 $000 $000 Financial Liabilities Payables 5,439 5,432total Financial Liabilities 5,439 5,432

(iii) Maturity analysis of Financial Liabilities as at 30 June 2015 ($000)The following table discloses the contractual maturity analysis for SMCT’s financial liabilities:

Financial Liabilities

Payablestotal Financial Liabilities

Maturity analysis of Financial Liabilities as at 30 June 2014 ($000) The following table discloses the contractual maturity analysis for SMCT’s financial liabilities:

Financial Liabilities

Payablestotal Financial Liabilities

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

Past due but not impaired not Past

due and not impaired

5,275

5,275

Less than 1 Month

108

108

1-3 Months

6

6

3-12 Months

43

43

1-5 years

0

0

carrying amount

5,432

5,432


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impaired

4,920

4,920

Less than 1 Month

361

361

1-3 Months

106

106

3-12 Months

52

52

1-5 years

0

0

carrying amount

5,439

5,439


99

18.4 Market risk exposure SMCT has diversified investments across a range of investments, including investments in the Australian and International share market, in order to fund prepaid fees and long-term perpetual maintenance obligations. These markets are subject to volatility. It is accepted that the share market is cyclical and that there is inherent volatility.

Investments are managed in accordance with SMCT investment policy which stipulates, asset allocation ranges to diversify and mitigate risk. The investment policy is reviewed regularly by management in conjunction with an independent investment manager. SMCT has appointed an external investment manager to manage its investment portfolio. The performance of investments and the investment manager is regularly monitored by management and the Trust.

SMCT’s exposure to market risk is through currency risk, interest rate risk and other price related risks. Objectives, policies and processes used to manage each of these risks are disclosed as follows:

(i) currency risk and Policy in Managing currency riskSMCT’s exposure to foreign currency risk arises mainly from investments held in overseas shares and listed property trusts.

SMCT manages its currency risk by appointing experienced external managers to manage these investments on its behalf and diversifying the allocation of the investment in shares of overseas companies, which operate in stable economies throughout Europe, the United States of America and Asia.

(ii) interest rate risk and Policy in Managing interest riskFinancial LiabilitiesExposure to interest rate risk is minimal as SMCT does not hold interest bearing liabilities.Available for Sale InvestmentsThe objective of managing interest rate risk is to minimise and control the risks of losses due to interest rate changes and to take advantage of potential profits.

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. SMCT has minimal exposure to cash flow interest rate risks through its cash and deposits, term deposits and bank overdrafts that are at floating rate.

(iii) interest rate exposure of Financial assets and Liabilities as at 30 June 2015 ($000)

Financial assetsCash and Cash Equivalents Cash on Hand Cash at BankReceivablesAvailable for Sale Investments Managed Units

Financial LiabilitiesPayables

Weighted average effective interest rate %

0.0%2.6%0.0%

0.0%

0.0%

carrying amount

727,66115,355

207,947250,970

5,4395,439

Fixed interest rate

015,000

0 0

15,000 00

Variable interest

rate

012,661

0

012,661

00

non-interest Bearing

70

15,355

207,947223,309

5,4395,439

interest rate exposure


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100

interest rate exposure of Financial assets and Liabilities as at 30 June 2014 ($000)

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

Financial LiabilitiesPayables

(iv) other Market risk and Policy in Managing other Market risk Exposure to other price risk arises due to the inherent risk associated with the possibility of a fall in the market value of investments. SMCT’s objective of managing other price (primarily equity market) risk is to minimise negative impacts on investment value due to the volatility of the stock markets.

SMCT has appointed an external, independent investment manager to monitor the value and volatility of stock market investments. The investment manager is expected to manage this risk, through the appropriate diversification of specific stocks and diversification through different sectors within the market in accordance with SMCT investment parameters.

(v) Sensitivity analysis on other Price riskBased on advice from independent investment managers who have taken into consideration past performance, future expectations, economic forecasts and management’s knowledge and experience of the financial markets, SMCT has estimated that the movements presented below are reasonably possible in the forthcoming 12 months. This sensitivity analysis has been prepared for the next 12 months. Management does not believe that it is possible to reasonably estimate the variables used further than for 12 months.

- A shift of 13% in foreign currency rate and 0.75% in market interest rates (AUD) from year end rates of 2.50% (2014: 20% in foreign currency, 1.00% in market interest rates (AUD) from year end rates of 2.5%): and- A movement of 22% up and down for the relevant stocks index (2014: 20% in relevant stocks index).

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

Weighted average effective interest rate %

0.0%3.7%0.0%

4.4%0.0%

0.0%

carrying amount

723,56116,200

12,276

187,265239,309

5,4325,432

Fixed interest rate

016,000

0

7,6810

23,681 00

Variable interest

rate

07,561

0

4,5950

12,156

00

non-interest Bearing

70

16,200 0

187,265203,472

5,4325,432

interest rate exposure


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101

(vi) Sensitivity analysis of other Price risk as at 30 June 2015 ($000)

Financial assets

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

Sensitivity analysis of other Price risk as at 30 June 2014 ($000)

Financial assets

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

carrying amount

727,66115,355

0207,947

5,439

245,531

net result

000

00

00

net result

000

00

0 0

net result

0 (160) 0

0 (51)

0 (211)

net result

0 160 0

0 51

0 211

net result

000

00

00

net result

000

00

00

equity

000

00

00

equity

0 0 0

0 0

0 0

equity

0 0 0

0 (208)

0 (208)

equity

0 0 0

0 208

0 208

equity

0 0 0

0 (41,430)

0 (41,430)

equity

0 0 0

0 41,430

0 41,430

Foreign currency risk interest rate risk other Price risk-13% +13% -0.75% +0.75% -22% +22%

carrying amount

7 23,561 16,200

12,276 187,265

5,432 233,877

net result

000

00

00

net result

000

00

0 0

net result

0 (160) 0

(46) 0

0 (206)

net result

0 160 0

46 0

0 206

net result

000

00

00

net result

000

00

00

equity

0 0 0

0 (3,425)

0 (3,425)

equity

0 0 0

0 3,425

0 3,425

equity

0 0 0

(77) (76)

0 (153)

equity

0 0 0

77 76

0 153

equity

0 0 0

0 (31,266)

0 (31,266)

equity

0 0 0

0 31,266

0 31,266

Foreign currency risk interest rate risk other Price risk-20% +20% -1% +1% -20% +20%


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18.5 Fair Value The fair values and net fair values of financial instrument assets and liabilities are determined and classified as follows:• Level 1: the fair value of financial instruments with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices;• Level 2: the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and• Level 3: the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs. SMCT considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short term nature of the financial instruments and the expectation that they will be paid in full.

The following table shows that the fair values of most of the contractual financial assets and liabilities are the same as the carrying amounts.

(i) comparison Between carrying amount and Fair Value

carrying amount Fair Value carrying amount Fair Value

2015 2015 2014 2014 $000 $000 $000 $000 contractual Financial assets Cash and Cash Equivalents 27,668 27,668 23,568 23,568Receivables 15,355 15,355 16,200 16,200Available for Sale Investments 207,947 207,947 199,541 199,541total financial assets 250,970 250,970 239,309 239,309contractual Financial liabilities Payables 5,439 5,439 5,432 5,432total financial liabilities 5,439 5,439 5,432 5,432

(ii) Financial assets Measured at Fair Value as at 30 June 2015 ($000)

carrying Fair value measurement at end of reporting period amount Level 1 Level 2 Level 3Financial assets Available for Sale Investments Managed Units 207,947 0 207,947 0 total Financial assets 207,947 0 207,947 0

102


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103

Financial assets Measured at Fair Value as at 30 June 2014 ($000)

carrying Fair value measurement at end of reporting period amount Level 1 Level 2 Level 3Financial assets Available for Sale Investments Interest Bearing 12,276 3,079 9,197 0Managed Units 187,265 0 187,265 0total Financial assets 199,541 3,079 196,462 0

There have been no transfers between levels during the period.

The fair value of the financial assets and financial liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate fair value:

Listed securitiesThe listed share assets are valued at fair value with reference to a quoted (unadjusted) market price from an active market. SMCT categorises these instruments as Level 1.

debt securitiesIn the absence of an active market, the fair value of SMCT’s debt securities and government bonds are valued at observable inputs such as recently executed transaction prices in securities of the issuer or comparable issuers and yield curves. Adjustments are made to the valuations when necessary to recognise differences in the instrument’s terms. To the extent that the significant inputs are observable, SMCT categorises these instruments as Level 2.

19. commitments 2015 2014 $000 $000

capital commitments Other - Buildings 30,843 5,204total capital commitments 30,843 5,204 operating expenditure commitments Computer equipment 0 37total operating expenditure commitments 0 37 capital commitments Not Longer than 1 Year 30,843 5,204Longer than 1 Year and Not Longer than 5 Years 0 0Longer than 5 Years 0 0total capital commitments 30,843 5,204 operating expenditure commitments Not Longer than 1 Year 0 37Longer than 1 Year and Not Longer than 5 Years 0 0Longer than 5 Years 0 0total operating expenditure commitments 0 37


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20. contingent assets and contingent Liabilities quantifiableThere are no quantifiable contingent assets and liabilities as at 30 June 2015 (2014: nil)

non-quantifiablePerpetual MaintenanceSMCT has an obligation under the Cemeteries and Crematoria Act 2003 to manage and maintain each public cemetery for which it is responsible. As stated in section 12 of the Act in exercising it’s functions, SMCT must have regard to its obligations in relation to the funding of the perpetual maintenance of each public cemetery.

At this time SMCT is aware that there will be ongoing significant future cash outflows on perpetual maintenance of each public cemetery but is unable to calculate a sufficiently reliable estimate of any related present obligation (which may arise under the accounting standards) and accordingly has not recognised a liability for this obligation in these financial statements. SMCT engaged an actuary to attempt to quantify the perpetual maintenance obligation but has not implemented the model at this stage. SMCT has nevertheless created a reserve, as a source of future contributions towards perpetual maintenance obligations, which is disclosed as a Perpetual Maintenance Reserve in Note 1(n) and Note 16.

21. responsible Persons & executive officers 21a. responsible Persons

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

responsible MinisterThe following was the Responsible Minister during the reporting period• The Hon David Davis, MP Minister for Health: 1 July 2014 to 3 December 2014• The Hon Jill Hennessy, MP Minister for Health: 4 December 2014 to 30 June 2015

governing Board The following were Trust Members during the reporting period:

• Sue Renkin (Chairman) 01/07/14 – 30/06/15

• Julie Busch 01/07/14 – 30/06/15

• Phillip Davies 01/07/14 – 30/06/15

• Felicity Frederico 01/07/14 – 30/06/15

• Richard Jones 01/07/14 – 30/06/15

• Gaye Mason 01/07/14 – 30/06/15

• Matthew Mills 01/09/14 – 30/06/15

• Stephen Shipp 01/07/14 – 30/06/15

Accountable officersThe following were the Accountable Officers during the reporting period:• Jonathan Tribe: 1 July 2014 to 14 November 2014• Jane Grover: 14 November 2014 to 30 June 2015104


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105

21a. responsible Persons (cont)

remuneration of responsible PersonsRemuneration paid to Ministers is reported in the financial statements of the Department of Premier and Cabinet. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits. Total remuneration includes all payments. The following table discloses remuneration paid to Responsible Persons, other than Ministers, during the year ended 30 June 2015.

1/7/2014 to 30/6/2015 1/7/2013 to 30/6/2014

income Band Base total Base total remuneration remuneration remuneration remuneration No. No. No. No.

$1 to $10,000 0 0 1 1

$10,001 to $20,000 7 7 6 6

$20,001 to $30,000 1 1 1 1

$100,001 to $110,000 1 0 0 0

$160,001 to $170,000 0 1 0 0

$250,001 to $260,000 1 0 0 0

$270,001 to $280,000 0 0 1 0

$280,001 to $290,000 0 1 0 0

$310,001 to $320,000 0 0 0 1

total numbers 10 10 9 9

total remuneration received or due and receivable by responsible Persons from SMct amounted to: $478,469 $573,372 $386,570 $428,352

other transactions of responsible persons and their related parties. During the reporting period, there have been no related party transactions (2014: nil).


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21b. executive officers’ disclosuresexecutive officers’ remuneration

The numbers of executive officers, other than Ministers and Accountable Officers, and remuneration during the reporting period are shown in the table below in their relevant income bands.

Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits. Total remuneration includes all payments. The following table discloses remuneration paid to Executive Officers during the year ended 30 June 2015.

1/7/2014 to 30/6/2015 1/7/2013 to 30/6/2014

income Band Base total Base total remuneration remuneration remuneration remuneration No. No. No. No.$100,000 to $110,000 5 4 3 2

$110,001 to $120,000 2 3 7 7

$120,001 to $130,000 5 3 4 3

$130,001 to $140,000 3 3 2 2

$140,001 to $150,000 0 1 1 1

$150,001 to $160,000 2 1 2 2

$160,001 to $170,000 2 4 1 1

$170,001 to $180,000 1 0 0 1

$180,001 to $190,000 1 2 1 1

$190,001 to $200,000 1 1 2 1

$210,001 to $220,000 0 1 0 0

$230,001 to $240,000 0 0 1 1

$260,001 to $270,000 0 0 0 1

total numbers 22 23 24 23

total remuneration $2,769,703 $3,192,227 $3,426,077 $3,494,081

106


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107

22. ex-gratia Payments

During the reporting period no ex-gratia payments were made (2014: $nil).

23. audit Fees: auditor general

2015 2014 $000 $000

victorian Auditor-general’s office

Audit of financial statements 81 78

total remuneration of victorian Auditor-general’s office 81 78


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108

Disclosure inDex

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

Ministerial directions and Financial reporting directions (Frd) Page reference charter and purpose FRD 22F Manner of establishment and the relevant Ministers 11, 68, 104FRD 22F Objectives, functions, powers and duties 67, 68FRD 22F Nature and range of services provided 68Management and structure FRD 22F Organisational structure 9Financial and other information FRD 10 Disclosure index 108FRD 11A Disclosure of ex gratia payments 107FRD 15B Executive officer disclosures 106FRD 21B Responsible person and executive officer disclosures 104, 105FRD 22F Application and operation of Freedom of Information Act 1982 15FRD 22F Application and operation of Protected Disclosures Act 2012 16FRD 22F Compliance with building and maintenance provisions of Building Act 1993 15FRD 22F Details of consultancies over $10,000 21FRD 22F Details of consultancies under $10,000 21FRD 22F Major changes or factors affecting performance 17, 18FRD 22F Occupational health and safety 37FRD 22F Operational and budgetary objectives and performance against objectives 19- 20FRD 22F Significant changes in financial position during the year 17FRD 22F Statement of availability of other information 15FRD 22F Statement on National Competition Policy 15FRD 22F Subsequent events 21FRD 22F Summary of the financial results for the year 18FRD 22F Workforce Data Disclosures including a statement on the application of employment and conduct principles 10, 33, 37FRD 25B Victorian Industry Participation Policy disclosures 15SD 4.2(j) Sign-off requirements 5, 60SD 4.5.5 Attestation on Compliance with Australian/New Zealand Risk Management Standard 14SD 4.5.5.1 Attestation on VMIA insurance 15Financial statements required under Part 7 of the FMa SD 4.2(a) Statement of changes in equity 65SD 4.2(b) Comprehensive operating statement 63SD 4.2(b) Balance sheet 64SD 4.2(b) Cash flow statement 65other requirements under Standing directions 4.2 SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements 67SD 4.2(c) Accountable officer’s declaration 60SD 4.2(c) Compliance with Ministerial Directions 60, 67SD 4.2(d) Rounding of amounts 68Legislation Freedom of Information Act 1982 15Protected Disclosures Act 2012 16Victorian Industry Participation Policy Act 2003 15Building Act 1993 15Financial Management Act 1994 60, 67Audit Act 1994 61, 62


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“Historic and iconic, the cemeteries and memorial parks within our care

are beautiful, tranquil and distinctive destinations to honour and celebrate life”

The Southern Metropolitan Cemeteries Trust

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

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

Documents

2015 Annual Report - Parliament of Victoria - Home · Southern Metropolitan Cemeteries Trust 2015 Annual Report visionary ‘garden rooms’ for burial and cremation memorialisation