LUNA PARK ANNUAL REPORT - Parliament of NSW · Luna Park reserve trust was established under the Crown Lands Act 1989 when the Luna Park Site act commenced in 1990. a seven member

LUNA PARK RESERVE TRUST annual report 2006/07

Contents

Letter to the Minister inside front cover

Statement by the chairman and chief executive officer 2

Luna Park reserve trust 3

corporate governance 7

Financial Statements 8

Statement by the Members of the trust 9

independent audit report 10

appendix 23

index and contact details inside back cover

Letter to the Minister

the hon. Frank Sartor MP Minister for Planning Level 34, governor Macquarie tower 1 Farrer Place SYDneY nSW 2000

Dear Minister

i have pleasure in submitting Luna Park reserve trust’s annual report for the year ended 30 June 2007.

the report has been prepared in accordance with the annual reports (Statutory Bodies) act 1984, the Public Finance audit act 1983 and the regulations under those acts.

Yours sincerely

Jon Isaacs

chairman Sydney harbour Foreshore authority

2LUna Park reSerVe trUSt annUaL rePort 2006/07

Statement by the chairman and chief executive officer

Luna Park reserve trust has a unique charter – to preserve Luna Park as a State heritage asset funded by the operation of a commercially viable business.

While this business is often challenged by competing local interests, it is the trust’s responsibility to ensure that the heritage fabric of this Sydney icon is maintained and that State-wide interests prevail.

to this end, the trust is supported by the government and people of new South Wales in its quest to ensure that the park’s function as a 1930s amusement ground will be sustainable into the future.

on behalf of the Luna Park reserve trust, we thank all those who have assisted in this endeavour, including the staff and Board of Sydney harbour Foreshore authority as well as Luna Park Sydney Pty Ltd and Metro edgley Pty Ltd.

Jon Isaacs

chairman Sydney harbour Foreshore authority

Dr Robert Lang

chief executive officer Sydney harbour Foreshore authority

LUna Park reSerVe trUSt annUaL rePort 2006/073

Luna Park Reserve Trust

Luna Park reserve trust was established under the Crown Lands Act 1989 when the Luna Park Site act commenced in 1990. a seven member trust Board was appointed at that time to manage the trust’s affairs. the Board continued to have that responsibility until May 1995 when an administrator was appointed.

in February 2001, amendment no.4 of State environment Planning Policy no.56 gazetted Luna Park development to be of State significance, and transferred development consent responsibility for Luna Park from north Sydney council to the nSW Minister for Planning.

Subsequently, the Minister for Land and Water conservation appointed Sydney harbour Foreshore authority as a corporation to manage the affairs of Luna Park reserve trust.

Sydney harbour Foreshore authority’s role involves undertaking responsibility for the care and control and management of the 3.13 hectares of Milsons Point that make up the Luna Park reserve. Luna Park reserve trust implements the Luna Park Plan of Management and administers the heritage and infrastructure Fund.

the Minister for Planning is the consent authority for any development at Luna Park, which is listed as a Schedule 1 site (State significance) under State Environmental Planning Policy – Major Projects 2005.

in September 2007, the Minister also accepted administrative responsibility for the Luna Park Site Act 1990 and the parts of the Crown Lands Act 1989 that relate to the Luna Park reserve. as such he has Ministerial responsibility for Luna Park reserve trust, any land dealings at Luna Park and its general administration.

Luna Park Sydney Pty Ltd has complete operational responsibility for the day-to-day running of the park.

Heritage and Infrastructure FundLuna Park reserve trust administers the heritage and infrastructure Fund, which is allocated to conserve and improve the park’s heritage and infrastructure features. the fund receives 3 per cent of the gross rental paid by Luna Park Sydney to Luna Park reserve trust.

Luna Park Sydney Pty Ltd prepares annual heritage and infrastructure Fund budgets for approval by Luna Park reserve trust.

items listed under the heritage and infrastructure Fund include coney island, crystal Palace, Luna Park Face and towers, Wild Mouse, rotor, and the cliff face, boardwalk, seawall and walkway.

Preserving cliff top fig treesSydney harbour Foreshore authority has established a heritage and conservation register under the heritage act. the fig trees on glen Street and Milsons Point are listed on this register, together with Luna Park reserve and the cliff face on olympic Drive.

the nSW government has also taken action to ensure protection of the cliff top fig trees through conditions of development consent.

Noise management after its re-opening in april 2004, a number of complaints were made about noise levels of rides at Luna Park.

Luna Park Sydney subsequently conducted noise mitigation measures as part of its acoustic Plan of Management. these measures resulted in significant reductions in noise levels on the ranger ride, as well as on public address systems on the tango and Spider rides.

Luna Park Sydney continues to comply with the conditions of development onsent and commissions an independent annual noise audit review, as required by Luna Park’s acoustic Plan of Management.

the acoustic report is submitted each year to the Department of Planning and north Sydney council.

in october 2005 the government introduced the Luna Park Site Amendment (Noise Control) Act 2005. this legislation prevents individuals from taking criminal or civil proceedings or noise abatement action against Luna Park’s operators as long as specified maximum permissible noise levels are not exceeded.

4LUna Park reSerVe trUSt annUaL rePort 2006/07 4


Luna Park ReserveLuna Park reserve covers 3.13 hectares of crown land at Milsons Point including:

•theboardwalkandforeshoretothewest,whichprovidespublicaccessalongtheharbour foreshore

•theentertainmentprecinctbetweentheboardwalkandforeshoreand the base of the cliff where the fun park is located

•theclifftop,whichadjoinsGlenStreetandNorthcliffStreettotheeast, but is physically and visually isolated from the remainder of the site.

the reserve is vested in the crown by the Luna Park Site Act 1990 and dedicated under the Crown Lands Act 1989 for the purpose of public recreation, amusement and entertainment.

the 40-year lease guarantees revenue to the trust from the amusement park operators. this includes a proportion of gross revenue to be paid into a fund to ensure the ongoing maintenance of heritage items and infrastructure.

the cliff top sites above Luna Park are leased for 99 years.

New public park for the cliff topin november 2006, Luna Park Sydney agreed to surrender its lease of cliff top Lot 10 to Luna Park reserve trust. Mrs Penelope Seidler will construct a public park on the cliff top dedicated to the memory of her late husband, architect harry Seidler.

the Minister for Planning has approved a new plan of subdivision for the cliff top and the trust and Luna Park Sydney have agreed to covenants which ensure the site will be a public park.

Luna Park Sydney will maintain the park as well as landscaping and maintaining a further 1,640 square metres of open space on the cliff top.



Corporate Governance

Sydney harbour Foreshore authority, which manages Luna Park reserve trust, has corporate status under Section 10 of the Sydney Harbour Foreshore Authority Act 1998.

the Foreshore authority’s Board comprises the authority’s chief executive officer, the Director-general of the Department of Planning and a maximum of five people appointed by the Minister, one of whom is appointed as the chairperson.

the Foreshore authority’s Board acts as the Luna Park reserve trust Board.

Board members at 30 June 2007 were:

•JonIsaacs(Chairman)

•RobertLang(CEO,SydneyHarbourForeshore authority)

•ChrisJohnson(onbehalfoftheDirector-general, Department of Planning)

•BonnieBoezemanAO

•MichaelCollins

•GabrielleTrainor

Financial reporting and insurance controlsthe Public Finance and Audit Act 1983 requires the establishment of efficient systems and sound internal controls of good business practice. this ensures businessobjectivesareeffectivelypursued and reduces the risk of the objectivesnotbeingachieved.

to date, audit and risk issues have been incorporated within Sydney harbour Foreshore authority’s audit and risk agenda.

Board member attendance at Luna Park Reserve Trust meetings in 2006/07

Board members Possible Attended

Jon isaacs 7 6

robert Lang 7 7

Bonnie Boezeman 7 6

Michael collins 7 7

chris Johnson 7 6

gabrielle trainor 7 7


Financial Statements

8


Statement by the Manager of the trustFor the year ended 30 June 2007

Pursuant to Section 41c (1B) of the Public Finance and Audit Act 1983 the trust states that:

1. the accompanying financial statements exhibit a true and fair view of the financial position of the Luna Park reserve trust as at 30 June 2007 and transactions for the year ended on that date.

2. the statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2005 and the treasurer’s Directions.

Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.

Jon Isaacs Dr Robert Lang

chairman Director Sydney harbour Foreshore authority Sydney harbour Foreshore authority (Manager of the trust) (Manager of the trust)

16 october 2007 Sydney

9



2007 2006

Notes $’000 $’000

Revenue from continuing operations 3 1,491 1,141

Expenses

Management fee (67) (64)

auditor’s remuneration–audit of financial report (13) (13)

Depreciation 8(b) (579) (449)

heritage costs amortisation 7 (1,188) (650)

Professional services (416) (196)

Legal fees (126) (57)

Maintenance (45) (92)

other (8) (42)

Total expenses (2,442) (1,563)

Deficit for the year (951) (422)

Theaboveincomestatementistobereadinconjunctionwiththeattachednotes.

LUna Park reSerVe trUStStart oF audited FinanCiaL StateMentS

incoMe StateMent For the Year enDeD 30 JUne 2007


2007 2006

Notes $’000 $’000

Current assets

cash and cash equivalents 4 547 684

receivables 7 2,860 4,249

Total current assets 3,407 4,933

Non-current assets

Property, plant and equipment 8 26,280 25,360

Total non-current assets 26,280 25,360

Total assets 29,687 30,293

Current liabilities

Payables 9 2,927 4,067

Total current liabilities 2,927 4,067

Total liabilities 2,927 4,067

Net assets 26,760 26,226

Equityasset revaluation reserve 10 15,906 14,421

accumulated funds 11 10,854 11,805

Total equity 26,760 26,226

Theabovebalancesheetistobereadinconjunctionwiththeattachednotes.

LUna Park reSerVe trUSt

BaLance Sheet aS at 30 JUne 2007


2007 2006

Notes $’000 $’000

net increase in property, plant and equipment asset revaluation reserve 10 1,485 186

Total revenue and expense recognised directly in equity 1,485 186

Deficit for the year (951) (422)

Total revenue and expense recognised for the period 534 (236)

Theabovestatementofrecognisedincomeandexpenseistobereadinconjunctionwiththeattachednotes.


StateMent oF recogniSeD incoMe anD exPenSeFor the Year enDeD 30 JUne 2007


2007 2006

Notes $’000 $’000

Cash flows from operating activities

receipts from customers 1,780 1,003

Payments to suppliers (771) (521)

Payments to Luna Park Sydney–heritage and infrastructure expenditure claw back (1,188) (650)

interest received 42 42

Net cash used in operating activities 6 (137) (126)

Net increase/(decrease) in cash held (137) (126)

Cash at the start of the financial year 684 810

Cash at the end of the financial year 4 547 684

Theabovecashflowstatementistobereadinconjunctionwiththeattachednotes.


caSh FLoW StateMent For the Year enDeD 30 JUne 2007


1. REPORTING ENTITY

Luna Park reserve trust was established on 12 october 1990, under the Luna Park Site Act 1990. the purpose of the trust is to control the Luna Park site, which has been dedicated to an area of public amusement, recreation and entertainment. the trust is under control of the Minister for Planning.

on 9 February 2001, the Minister for Land and Water conservation appointed Sydney harbour Foreshore authority (Foreshore authority) to manage the affairs of Luna Park reserve trust. the Foreshore authority does not have significant control over the activities of the trust therefore financial performance of the trust is not consolidated into the Foreshore authority’s financial statements.

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

the financial report is a general-purpose financial report and is prepared on an accrual basis in accordance with the australian accounting Standards which include australian equivalents to international Financial reporting Standards (aeiFrS), other authoritative pronouncements of the australian accounting Standards Board (aaSB), the interpretation, the requirements of the Public Finance and Audit Act 1983 and Financial reporting Directions issued by the treasurer.

Set out below is a summary of the significant accounting policies adopted by the trust.

the financial report is presented in australian dollars rounded to the nearest thousand.

(b) Statement of compliance

the financial report complies with the australian accounting Standards. a statement of compliance with international Financial reporting Standards (iFrS) cannot be made due to the trust applying the not-for-profit sector requirements contained in aeiFrS.

(c) Significant accounting judgements, estimates and assumptions

(i)Significantaccountingjudgement

IntheapplicationofAASB,managementisrequiredtomakejudgments,estimatesandassumptionsaboutcarryingvaluesofassets and liabilities that are not readily apparent from other sources. the estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of whichformthebasisofmakingthejudgments.Actualresultsmaydifferfromtheseestimates.Keyjudgementsaredisclosedas part of accounting notes.

(ii) Significant accounting estimates and assumptions

the estimates and underlying assumptions are reviewed on an ongoing basis. revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgments made by management in the application ofAASBthathavesignificanteffectsonthefinancialstatementsandestimateswithasignificantriskofmaterialadjustmentsin the next year are disclosed, where applicable, in the relevant notes to the financial statements.

(d) Financial risk management

the trust uses financial instruments such as cash and nSW treasury corporation hour-glass Facilities.

the Foreshore authority has a policy not to undertake trading in financial instruments.

the trust’s activities expose it to a variety of financial risks: credit risk, liquidity risk and interest rate risk.

(i) credit risk

the trust has no significant concentrations on credit risk. the trust has policies in place to ensure that trades are made to third parties with an appropriate credit history.

(ii) Liquidity risk

the trust’s liquidity risk management implies maintaining sufficient cash. the trust has no interest bearing liabilities which are likely to require significant cash flow in the foreseeable future.

(iii) interest rate risk

as the trust has no significant interest bearing assets, the trust’s income and operating cash flows are not materially exposed to changes in market interest rates.


noteS to the FinanciaL StateMentSFor the Year enDeD 30 JUne 2007


(e) Income Revenue recognition

revenue is recognised when the trust has control of the assets that result from income generating transactions or the right to receive control, it is probable that the economic benefits will flow to the trust and the amount of revenue can be measured reliably.

(f) Income tax

the trust is exempt from income tax under section 50-25 of the Income Tax Assessment Act 1997.

(g) Acquisition of assets

the cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the trust. cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of other australian accounting Standards.

assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition.

Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.

Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. deferred payment amount is effectively discounted at an asset-specific rate.

(h) Revaluation of physical non-current assets, property, plant and equipment

Physical non-current assets are valued in accordance with the Valuation of Physical Non-Current Assets at Fair Value Policy and Guidelines Paper (tPP 05-3). this policy adopts fair value in accordance with aaSB 116 Property, Plant and Equipment.

Property, plant and equipment is measured on an existing use basis, where there are no feasible alternative uses in the existing natural, legal, financial and socio-political environment. however, in the limited circumstances where there are feasible alternative uses, assets are valued at their highest and best use.

Fair value of property, plant and equipment is determined based on the best available market evidence, including current market selling prices for the same or similar assets. Where there is no available market evidence, the asset’s fair value is measured at its market buying price, the best indicator of which is depreciated replacement cost.

the trust revalues each class of property, plant and equipment at least every five years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date. the last revaluation was completed on 30 June 2007 and was based on an independent assessment.

aaSB 116.35(b): For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. the net asset accounts are then increased or decreased by the revaluation increments or decrements.

aaSB 116.aus39.1: revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the surplus/deficit, the increment is recognised immediately as revenue in the surplus/deficit.

aaSB 116.aus40.1: revaluation decrements are recognised immediately as expenses in the surplus/deficit, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

aaSB 116.aus40.2: as a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise.

tPP 05-3, aaSB 116.41: Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds.

(i) Impairment of property, plant and equipment

as a not-for-profit entity with no cash generating units, the trust is effectively exempted from aaSB 136 Impairment of Assets and impairment testing. this is because aaSB 136 modifies the recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. this means that, for an asset already measured at fair value, impairment can only arise if selling costs are material. Selling costs are regarded as immaterial.




(j) Depreciation

Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to the trust. estimates of remaining useful lives are made on a regular basis for all assets,withannualreassessmentsformajoritems.

Land is not a depreciable asset.

Rate

Buildings 2.7-6% infrastructure 2.9-5%

(k) Major inspection costs

Wheneachmajorinspectionisperformed,thelabourcostofperforminginspectionsforfaultsisrecognisedinthecarryingamountof an asset as a replacement of a part, if the recognition criteria are satisfied.

(l) Restoration costs

the estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability.

(m) Maintenance

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

(n) Receivables

receivables are recognised initially at fair value, usually based on the transaction cost or face value.

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

(o) Personnel services expense

the trust does not employ staff but utilises the personnel services of the Sydney harbour Foreshore authority. the personnel services expenses are provided and charged by the Foreshore authority according to services performed. the trust has no employee obligations under this arrangement.

(p) Financial instruments

Financial instruments give rise to positions that are a financial asset of the trust and a financial liability (or equity instrument) of the other party. For the trust these include cash at bank, receivables and payables.

in accordance with australian accounting Standard aaSB139 Financial Instruments, recognition and measurement disclosure of the carrying amounts for each of the aaSB139 categories of financial instruments are disclosed in note 14. the specific accounting policy for each class of financial instrument is stated below.

classes of instruments recorded and their terms and conditions measured in accordance with aaSB139 are as follows:

(i) cash

cash is carried at nominal values reconcilable to monies on hand and independent bank statements.

the trust has investments with the nSW treasury corporation’s hour-glass facilities. the trust’s investment is represented by a number of units of a management investment pool with each particular pool having different horizons and being comprised of a mix of asset classes appropriate to that investment horizon. nSW treasury corporation appoints and monitors the application of appropriate investment guidelines.

this investment is generally able to be redeemed daily by 12 pm. the value of the investment held can increase as well as decrease depending on market conditions. the value of the above investment represents the trust’s share of the value of the underlying assets of the facility, and those assets as stated at net value. the weighted average rate of return on these investments during the year was 6.23% (2006: 5.56%).

(ii) receivables

receivables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables.

Short term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting isimmaterial.Anallowanceforimpairmentofreceivablesisestablishedwhenthereisobjectiveevidencethattheentitywillnotbe able to collect all amounts due. the amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Bad debts are written off as incurred.




Terms and Conditions – accounts are generally issued on 30-day terms.

(iii) trade and other payables

Payables represent liabilities for goods and services provided to the trust. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. Payables are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the trust.

Terms and Conditions – trade liabilities are settled within any terms specified. if no terms are specified, payment is made by the end of the month following the month in which the invoice is received.

(q) New Australian Accounting Standards issues

certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2007 reporting period. the trust did not early adopt any of these accounting Standards and interpretations that are not yet effective:

• AASB7andAASB2005Financial Instruments: Disclosures (1 January 2007)

• AASBInterpretation10Interim Financial Reporting and Impairment (1 november 2006)

• AASB101Presentation of Financial Statements (1 January 2007)

• AASB2007-04Amendments to Australian Accounting Standards arising from ED 151 and other Amendments (1 July 2007)

• AASB8andAASB2007-3Operating Segments (1 January 2009)

• AASB123Borrowing Costs (1 January 2009)

• AASB2Share-Based Payment: AASB 2007-1 (February 2007) that is applicable to annual reporting period beginning on or after 1 March 2007. the amendments to aaSB 2 (and interpretation 11) apply to 30 June 2008 and to 31 December 2009 balancing companies

• Interpretation11Group and Treasury Share Transactions (1 March 2007)

• Interpretation129Service Concession Arrangements: Disclosure (1 January 2008).

it is considered that the impact of these new standards and interpretations in future periods will have no material impact on the financial statements of the trust.





noteS to the FinanciaL StateMentS For the Year enDeD 30 JUne 2007

2007 2006

$’000 $’000

3. Revenue from continuing operations

Property rental 572 481heritage and infrastructure revenue 863 618asset revaluation increment 14 –interest received 42 42

1,491 1,1414. Cash and cash equivalent assets

For the purposes of the cash Flow Statement, cash includes cash at bank and investments in nSW treasury corporation – hour glass facilities

cash at bank 87 252nSW treasury corporation – hour glass short term cash facility 460 432

547 6845. Restricted assets

the Luna Park heritage infrastructure Fund of $57,261, included in cash, is restricted in application under the trust. Funds can only be spent on the maintenance of heritage and infrastructure items as defined in the trust Deed.

6. Reconciliation of operating surplus/(deficit) for the year to net cash flows used in operating activities

Deficit for the year (951) (422)non cash flows in operating deficit Depreciation 579 449 Disposal – Plant and equipment – 14 asset revaluation increment (14) –change in operating assets and liabilities (increase)/decrease in receivables 201 (225) (Decrease)/increase in payables 48 58

net cash flows used in operating activities (137) (126)

7. Receivables

rent receivable – Luna Park Sydney Pty Ltd 110 311heritage and infrastructure works 2,750 3,938

2,860 4,249

Luna Park Sydney Pty Ltd (formerly known as Metro edgley Pty Ltd) incurred expenditure for the heritage and infrastructure works during 2003/04. it was part of the refurbishment of Luna Park prior to the opening of the Park and the new lease which commencedoperationsinApril2004.TheworkswerecertifiedbytheIncollGroup,whowastheprivatecertifierfortheproject.the total certified amount of $5,738,139 was disclosed to the trust in December 2004. the lease agreement has a clawback provision to reimburse Luna Park Sydney Pty Ltd (LPS) for the heritage and infrastructure works. the cost of the works is recognised in the books of the trust as a receivable and a payable. they will be progressively reduced as the trust makes its approved payments to LPS.

heritage and infrastructure works 3,938 4,588Less: payments made during the period (1,188) (650)

closing balance 2,750 3,938




2007 2006

$’000 $’000

8. Property, plant and equipment

(a) Amounts shown in the Balance Sheet are derived as follows:

Land 10,895 10,350

at fair value 10,895 10,350

Buildingsat gross value 8,215 7,550accumulated depreciation – –

carrying amount 8,215 7,550

Plant and equipment

at gross value – 26Disposal – (14)accumulated depreciation – (12)

carrying amount – –

Infrastructure

at gross value 7,170 7,460accumulated depreciation – –

carrying amount 7,170 7,460

Total property, plant and equipment 26,280 25,360

the land, buildings and infrastructure were valued by rushton Valuers on 30 June 2007 based on an independent assessment. as per aaSB 116 Property, Plant and Equipment paragraph aUS 39.1, the net revaluation increment was credited to the asset revaluation reserve, except for $14,000 credited to profit and loss. this offsets the amount recognised as a decrement (loss on disposal) in the income statement in 2005/06. in prior years, the painting on the wall (mural) was included in the category of ‘plant and equipment’. in 2006/07, the mural is included in the ‘buildings’ class.

(b) Reconciliations

reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the financial year are set out below.

Land

carrying amount at 1 July 10,350 9,000increase in asset revaluation 545 1,350

carrying amount at 30 June 10,895 10,350

Buildings

carrying amount at 1 July 7,550 8,160Depreciation expense (224) (221)increase/(decrease) in asset revaluation 889 (389)


Plant and equipment

carrying amount at 1 July – 14Disposal – (14)

carrying amount at 30 June – –




2007 2006

$’000 $’000

Infrastructure

carrying amount at 1 July 7,460 8,463Depreciation expense (355) (228)increase/(decrease) in asset revaluation 65 (775)


Total property, plant and equipment

carrying amount at 1 July 25,360 25,637Depreciation expense (579) (449)Disposal – (14)increase in asset revaluation 1,499 186


9. Payables

trade creditors 76 24Security deposits 7 –gSt payable 13 9accrued expenses 81 96heritage and infrastructure works (refer note 7) 2,750 3,938

2,927 4,067

10. Asset revaluation reserve

Balance at the beginning of financial year 14,421 14,235increase in asset revaluation reserve 1,485 186

Balance at the end of financial year 15,906 14,421

11. Accumulated funds

Balance at the beginning of financial year 11,805 12,227Deficit for the year (951) (422)

Balance at the end of financial year 10,854 11,805

12. Capital and lease commitments

the trust did not have any capital or lease commitments at balance date.

13. Contingent assets/liabilities

there are no known contingent assets/liabilities at balance date.




14. Financial instruments

a) Interest rate risk

interest rate risk, is the risk that the value of the financial instrument will fluctuate due to changes in market interest rates.

the trust’s exposure to interest rate risks and the effective interest rates of financial assets and liabilities, both recognised and unrecognised, at the (consolidated) balance sheet date are as follows:

Floating interest rate

Fixed interest rate maturing in:non-interest

bearing

total carrying amount

as per the balance sheet

Weighted average effective

interest rateFinancial instruments 1 year or less over

1 to 5 yearsMore than

5 years

2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 % %

Financial assets

cash and cash equivalents 87 252 - - - - - - - - 87 252 6.05 5.43

nSW treasury corporation – hour glass short term cash facility

460 432 - - - - - - - - 460 432 6.23 5.56

receivables - - - - - - - - 2,860 4,249 2,860 4,249 - -

Total financial assets 547 684 - - - - - - 2,860 4,249 3,407 4,933 - -

Financial liabilities

Payables - - - - - - - - 2,927 4,067 2,927 4,067 - -

Total financial liabilities - - - - - - - - 2,927 4,067 2,927 4,067 - -

the weighted average interest rate risk is not applicable for non-interest bearing financial instruments.

b) Credit risk

credit risk is the risk of financial loss arising from another party to a contract/or financial position failing to discharge a financial obligation thereunder. the trust’s maximum exposure to credit risk is represented by the carrying amounts of the financial assets included in the consolidated Balance Sheet.

2007 2006

$’000 $’000

Financial assets

cash and cash equivalents 87 252nSW treasury corporation – hour glass short term cash facility 460 432receivables 2,860 4,249

Total financial assets 3,407 4,933

c) Derivative financial instruments

the trust holds no derivative financial instruments.

15. Events after balance sheet date

on 7 September 2007, administration of Luna Park Site Act 1990 and the Crown Lands Act 1989 (so far as it relates to the Luna Park reserve) was transferred to the Minister for Planning. this transfer is not envisaged to change the reporting relationship between the trust and the Foreshore authority, who will continue to manage affairs of the trust. activities of the trust will be governed by the crown Lands act and the Foreshore authority will not have any significant control over the trust so as to obtain benefits from its activities.

end oF audited FinanCiaL StateMentS


Code of ConductSydney harbour Foreshore authority is committed to establishing a reputation for responsibility, integrity and fair dealing, with staff required to set a good example and conduct themselves in a way that demonstrates the highest ethical standards.

a written code of conduct, updated in april 2007, outlines the standards that are expected of staff and provides guidelines on behaviour.

Consultantsthere were no direct consultants appointed specifically to Luna Park reserve trust during 2006/07.

Disability Action PlanMetro edgley Pty Ltd, developer of the park, and Luna Park Sydney Pty Ltd, operator of the park, are responsible for disability compliance.

Providing access and facilities for persons with a disability in accordance with Part D3 of the Building code of australia is required for all development consents.

in addition, an access Plan was prepared for Luna Park by access australia consultants Pty Ltd in May 2002.

Ethnic Affairs Priorities StatementSydney harbour Foreshore authority’s ethnic affairs Priorities Statement (eaPS) applies to Luna Park reserve trust. it encapsulates a desire to implement government policy to ensure equity in all forms of employment and access. a copy of the eaPS can be obtained from the authority.

Freedom of informationthere were no requests made to Sydney harbour Foreshore authority during the year for information relating to Luna Park reserve trust under the Freedom of Information Act 1989.

Human resourcesLuna Park reserve trust has no staff, withprojectmanagementundertaken by Sydney harbour Foreshore authority. the authority’s annual report includes information on staffing arrangements and compliance.

Printing costs of annual reportthis annual report was prepared by Sydney harbour Foreshore authority for Luna Park reserve trust, at a total cost of $1174.

the report was written and designed in-house by the authority and is available at www.shfa.nsw.gov.au.

Privacy management planSydney harbour Foreshore authority has developed a Privacy Management Plan in response to the Privacy and Personal Information Act 1998. the authority applies this plan where relevant, as appointed manager of Luna Park reserve trust.

the Privacy and Personal Information Protection Act 1998 aims to protect the privacy of individuals from the inappropriate collection, storage, use and disclosure of personal information.

the act is based on 12 information principles that establish standards for using personal information in an open and accountable manner. the information Protection Principles apply to all staff, consultants and contractors engaged by the authority. the complete Privacy Management Plan is available from the authority.

Appendix


accounting policies 15

acoustic Plan of Management 3

acts – crown Lands 3 – Luna Park Site 3

annual report costs 23

audit report 10

Balance sheet 12

Board – attendance at meetings 7 – Members 7 – Statement by members 9

cash flow 14

chairman – Statement by 2

chief executive officer – Statement by 2

cliff top park 5

code of conduct 23

consultants 23

contents inside front cover

corporate governance 7

crown Lands act 3

Development consent 3

Disability action Plan 23

ethnic affairs Priorities Statement 23

Fig trees 3

Financial statements 8

Freedom of information 23

heritage and infrastructure Fund 3

human resources 23

income statement 11

Leases 5

Luna Park reserve 5

Luna Park reserve trust 3

Luna Park Site act 1990 3

Luna Park Sydney Pty Ltd 3

Metro edgley 19

Minister – Letter to inside front cover – responsibilities 3

noise management 3

Printing costs 23

Privacy 23

Seidler, harry 5

Index

Documents

LUNA PARK ANNUAL REPORT - Parliament of NSW · Luna Park reserve trust was established under the Crown Lands Act 1989 when the Luna Park Site act commenced in 1990. a seven member