Mount Buller and Mount Stirling Alpine Resort Manag ement … · 2015. 3. 30. · 2013-18 (SMP). The SMP outlines the strategic Vision, Focus Areas and Commitments for the Resort

Mount Buller and Mount Stirling�Alpine Resort Manag�ement BoardAnnual Report 2012–13

Introduction

Message from the Chairman 1Chief Executive Officer’s Report 2

Overview

Entity Information 4Year at a Glance 5

Organisational Structure

Board of Directors 6Resort Management Team 8Organisational Chart 9

Strategic Direction and Operations

Introduction 10Our Services 12Our Environment 15Our Tourism 18Our Community 20Our People 22Our Corporate Governance 24

Financial Statements

2012–13 Financial Statements 28Notes to Financial Statements 32Independent Auditors Report 59Disclosure Index IBC

Contents

In accordance with the Financial Management Act 1994, I am pleased to present the Mount Buller and Mount Stirling Alpine Resort Management Board Annual Report for the year ending 31 October 2013.

Jennifer Hutchison ChairmanMount Buller and Mount Stirling Alpine Resort Management Board 5 February 2014

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This has been a year of consolidation and steady progress. Here are some of the things that have occupied your RMB in 2012-13:

Message from the Chairman

The new government alpine policy, adopted in December 2012, sits comfortably with the RMB with Key Performance Indicators across all resorts but tailored to our individuality now decided, agreed and in place. We continue to deliver on the strategic plans for each resort, within a single reporting structure and integrated corporate processes.

In July this year we announced a robust and ambitious project for the establishment of greater water storage for Mount Buller. Securing effective water supply for snowmaking continues to be a requirement for a sustainable winter product. An engineering company has recently been appointed to a ‘design and build’ contract for this essential project.

We have continued to step through the painstaking process of bringing the Buller Stirling Link Road project to fruition. As this report goes to print, the necessary public consultation phase of the final proposal will be complete, the last step before a Planning Permit is issued.

We have had involvement in the refreshment of the administration and delivery of the Subaru Victorian Interschools Competition. A newly established business unit provides broader stakeholder input and responsibility for its continued success and growth, and combines funding from the RMB, Chamber of Commerce, Ratepayers Association and Buller Ski Lifts.

Winter remains our ‘engine room’ and we continue to provide services, plan for future development, cooperate with our winter product suppliers and stakeholder groups, and improve the snow play and snow sports experience for our visitors as we all travel together on the road to a sustainable future for the two destinations.

Summer visitation and green season product provision continue to grow, in particular through mountain biking, and via major events such as Targa. This year has seen the establishment of the EPIC Trail and the raised profile of Mount Buller via its International Mountain Bicycling Association (IMBA) status. The changing face of what used to be called the ‘off season’ has seen two properties in the Mount Buller village sold to non snow sport, summer visitors this past year. This is very encouraging.

We continue to work with our stakeholder groups, to include them whenever and wherever we can, to foster good relationships, to negotiate and deal fairly, and to demonstrate at every opportunity that we will keep the best interests of the whole in managing the resorts’ parts.

Which brings me to our current Board, a real power house of skills, experience and professionalism. I congratulate the reappointment of Board members Deputy Chairman, Dean Belle and Bryce Moore, and welcome three new Board members; Andy Evans, John Lithgow and Elaine Farrelly.

They bring substantial experience in planning, development and major projects; regional tourism management and best business practice; and audit, finance and governance. With myself as Chairman and Dr Kate Brooks the Board is now complete.

This team is committed to best practice directorship and upholds the trust and integrity placed on them, in exemplary fashion. In addition to scheduled Board meetings and activities, all Board members have taken on additional responsibilities by serving on at least one sub committee of the Board, including the newly formed Future Business Modeling Committee which will focus on the changes to our economic and climate landscape and the opportunities and special circumstances these changes may provide for us. In addition some Board members sit on external committees and Boards on our behalf. The work load is substantial and I remain grateful for this commitment.

In closing, I would like to acknowledge the positive and supportive professional culture in existence within the RMB. This embraces a seamless pathway of mutual respect to and from the Board, the CEO John Huber, his Executive Team, and every team member. I share in the pride.

Jennifer Hutchison ChairmanMount Buller and Mount Stirling Alpine Resort Management Board

Annual Report 2012–13

Winter 2013The 2013 snow season delivered less than favourable natural snowfalls, however, Mount Buller’s extensive snowmaking infrastructure enabled the season to have a consistent snow product through to late September.

The limited natural snow contributed to resort visitation being slightly down with 272,049 visitors in 2012 to 253,647 in 2013. However, visitor numbers at Mount Stirling finished slightly higher, with 5,304 visitors up from 5,153, the previous winter.

Resort Master PlanThe Mount Buller Resort Master Plan is now well into its implementation phase and continues to guide the resort’s development over the next 10–15 years as well as providing confidence for individual stakeholders to commit investment dollars to the mountain.

A number of Master Plan projects have already been completed, including Athlete’s Walk, Black Forest Walk, the Resort Reception and Interpretive Centre at Alpine Central along with the complete redevelopment of the YHA site, which was officially opened as Buller Central by Minister Smith

opening weekend. The next part of the implementation phase will focus on the detailed analysis that will underpin the more strategic projects such as the development of world class snow play facilities at Horsehill, the Valley North Parking facility and the Horsehill to Village gondola.

AchievementsIn a year that has been emphasised by low natural snowfall resulting in a marginal decrease in visitation from the previous year, Resort Management has practised good cost control and efficient financial management which has enabled an operating surplus. Together with the Resort Master Plan, this continues to establish a good position for reinvestment into capital and recurrent programs and the continued development of the resort.

2012-13 saw the continuation of an expanded summer events and activities schedule, as well as cementing our title as Australia’s number one mountain biking destination. In February 2013, Mount Buller was announced as the first International Mountain Bicycling Association (IMBA) certified ride centre in Australia. This prestigious award gives

international recognition and certification to the expansive and quality mountain biking offer available across both Mount Buller and Mount Stirling.

In addition, a substantial capital works program was completed, with a strong focus on improving public amenity. Key projects included the refurbishment of the Snow Play Parks, Stage 1 Refurbishment of Cow Camp Plaza, key water and sewage infrastructure improvements and improved guest amenities at Mount Stirling.

During 2012-13, we were very pleased to complete the development, and release, of the Mount Buller Mount Stirling Strategic Management Plan 2013-18 (SMP). The SMP outlines the strategic Vision, Focus Areas and Commitments for the Resort Management Board over the next five years. Together with the Alpine Resorts Strategic Plan 2012 and the Mount Buller Resort Master Plan, the SMP identifies the strategic objectives and directions for the promotion, management, use and development of the resorts.

Innovative and best practice environmental management programs continued to benefit

Chief Executive Officer’s ReportI would firstly like to welcome our new Board members Andrew Evans, John Lithgow, appointed 4 June 2013, and Elaine Farrelly, appointed 16 August 2013. I would also like to welcome back to the Board for a second term, Deputy Chairman Dean Belle and Bryce Moore, reappointed 4 June 2013. I have found the great experience, enthusiasm and love for the Alps of the new Board members has matched in well with the comprehensive skills of existing board members Dr Kate Brooks and our Chairman Jennifer Hutchison.

I would also like to farewell outgoing Board members Richard Brooks and Lea Corbett. Thank you both for your valuable support and guidance over the years.

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the resorts during 2012–13. The ‘Living Bin’ organics management system recovered the highest amount of food waste since the beginning of the program in 2010, further reducing the amount of waste going into landfill. The Mountain Pygmy-possum trans-location program continued with monitoring for the year indicating very strong growth in the population, and the eradication of the noxious plant Hawke Weed continues to improve with only three sites discovered containing the weed, giving a reduction of 66% on the previous year.

Priorities aheadAlong with delivering a comprehensive capital works program, we will continue the planning and design of a supplementary water storage facility at Mount Buller, and the Buller-Stirling Link Road. Both of these key infrastructure projects achieved significant focus and movement during 2012-13, with works on these projects scheduled to begin in the 2013-14 period.

An implementation plan has been created for the development of the supplementary water storage facility on Mount Buller, with works scheduled to commence during the 2013-14 period. The new

water storage facility will ensure the security of both potable and snowmaking water on Mount Buller for the coming years.

The Buller Stirling Link Road moved ahead strongly and construction on this project is scheduled to commence in the 2013-14 period. This important link road, providing an improved connection between the two resorts, will enhance the visitor experience whilst also providing a very important alternative emergency access and egress route for the resorts in the event of a fire or natural disaster.

Further priorities ahead include the completion of Stage II of the Cow Camp Plaza visitor facility and the design of an additional snow play area within the Village precinct. Also scheduled for commencement in 2013-14 is the construction of an IMBA EPIC mountain bike trail, the first of its kind in Australia, offering a 40km long distance, cross country, descending trail ride.

Additional development of initiatives and events to encourage year round visitation will continue while securing the winter economic engine of the resorts through enhancement of Mount Buller and Mount Stirling product offerings and brands.

AcknowledgementsThe role of leading the Resort Management team involves, among other things, attempting to satisfy the desire, expectations and needs of its many stakeholders and in that regard I would like to acknowledge the input and support of the Department of Environment and Primary Industries, the Department of Transport, Planning and Local Infrastructure, Buller Ski Lifts, the Mount Buller Chamber of Commerce, the Mount Buller Ratepayers Association, Stirling Experience and many others in this endeavour.

I would also like to acknowledge the support and dedication afforded to me by the Resort Management team. Their hard work and dedication has allowed the organisation to deliver some outstanding results and to distinguish itself as a leader in alpine resort management.

John Huber Chief Executive Officer

Key financial data 2011–12‘000

2012–13‘000

Change‘000

Net Result

Total operating expenditure

Gas and electricityFinance costs(Gain)/loss on disposal of assetsHealthDepreciationStaff costs

Cash on hand

81

12,027

729139

(134)242

1,5023,486

7,908

270

12,106

726124(90)234

1,6443,788

5,809

189

79

(3)(15)44(8)

142302

(2,099)

Annual Report 2012–13 3

Entity Information

The RMB was established in 2004 by an amendment to the Alpine Resorts (Management) Act 1997 (The Act), succeeding the separate Mount Buller Resort Alpine Management Board and the Mount Stirling Alpine Resort Management Board. The RMB is charged under the Act with managing the Mount Buller and Mount Stirling Alpine Resorts.

The RMB operates under the provisions of the Act and is established:

— As a Body Corporate with perpetual succession;

— With its own Common Seal;

— With the power to sue or be sued;

— To acquire, hold and dispose of real and personal property; and

— To carry out its functions as a Body Corporate may do at law.

Statutory Reporting The RMB is a statutory authority. The responsible Minister for the period from 1 November 2012 to 31 October 2013 was the Hon Ryan Smith MP, Minister for Environment and Climate Change.

The Minister is responsible for Crown Land management and delegates his authority to the RMB to implement Government policy in relation to the use and management of the alpine resort. The RMB accepts directions or guidelines from the Minister regarding its performance and

the discharge of its functions, duties or power and undertakes to adopt best practice in all activities, reporting to the Minister through the Annual Reports, the Corporate Plan and Quarterly Financial Reports.

The RMB also complies with the directions of the Minister for Finance and acts as a referral authority for development matters.

Functions of the RMB As set out in Section 38 of the Act, the specific functions of the RMB are to:

— Act as a Committee of Management of any Crown Land deemed to be permanently reserved under the Crown Land (Reserves) Act 1978 in the Resorts;

— Contribute together with Tourism Victoria and the Alpine Resorts Coordinating Council (ARCC) to the overall promotion of alpine resorts;

— Develop a tourism and marketing strategy for and to promote the Resorts, and collect and expend voluntary contributions from commercial undertakings in the Resorts for this purpose;

— Provide a range of services in the nature of: garbage disposal, water supply: recycled and potable, sewerage, gas, drainage, roads, fire protection and snowmaking.

— Charge contributions for the provision of those services;

— Collect fees prescribed by the Regulations for the Resorts;

— Attract investment for the improvement of the Resorts;

— Carry out any other function conferred on the RMB under the Act or any other Act;

— Plan for the development, promotion, management and use of the Resorts;

— Manage the Resorts in accordance with the objective of the Act as amended;

— Undertake research into alpine resort issues;

— Contribute to and support the operation of the ARCC;

— Prepare and implement a Strategic Management Plan for the Resorts; and

— Expend or apply revenue of the RMB in accordance with a direction of the Minister under Section 36(1A) of the Act.

The RMB must carry out its functions in an environmentally sound way.

The Mount Buller and Mount Stirling Alpine Resort Management Board (RMB) is a statutory authority established by the Alpine Resorts (Management) Act 1997 and is responsible to Hon. Ryan Smith, MP, Minister for Environment and Climate Change.

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Financial Summary 2008–09$‘000

2009–10$‘000

2010–11$‘000

2011–12$‘000

2012–13$‘000

Operating Revenue— Gate Entry 3,391 3,929 3,531 3,946 3,613— Site Rental Fees 3,529 3,716 3,671 3,784 3,756— Service Charges 3,069 3,101 3,179 3,299 3,382— Sale of Rights to Lease and

Develop Crown Land50 50 175 0 0

— Government Funding 69 1,039 344 136 175Other Revenue 1,074 1,050 1,186 1,077 1540Operating Expenditure 10,642 11,249 11,616 12,027 12,106Other Economic Flows -2 40 -25,698 -3,504 -90Comprehensive result 538 1,676 -25,2281 -3,2892 270Total Assets 197,335 199,126 173,4061 170,4752 170,931Total Liabilities 4,361 4,476 3,984 4,304 4,395Net Assets 192,974 194,650 169,422 166,171 166,536Assets Comprise:— Land 150,313 150,313 110,6881 110,688 110,688— Other non-financial assets 39,273 39,109 53,5741 51,3902 53,398— Financial assets 7,749 9,704 9,144 8,397 6,845

1 The comprehensive result for 2010–11 includes a reduction of $25,705,000 in the ARMB’s asset revaluation reserve resulting from asset revaluations directed by the Valuer-General Victoria.

2 The comprehensive result for 2011-12 includes a reduction of $3,370,425 in the RMB’s asset revaluation reserve resulting from asset revaluations directed by the Valuer-General Victoria.

Item / Key Performance Indicator 2011–12 2012–13

Environmental QualityNumber of Readings Within EPA Guidelines— Escherichia Coli 14/14 16/16— Biochemical Oxygen Demand (5 day) 14/14 16/16— Suspended Solids 14/14 16/16Percentage of Total Waste Recycled 44% 45%

Social ResponsibilityVisitor Average Nights on Mountain (Based on Gate Entry Sales, excl. Day Visitors) 3.24 2.5Total Snow Making Water Used (megalitres) 274 290Total Water Used for Fire Fighting (megalitres) 0 0Total Winter Passengers using Free Shuttles 627,542 538,224Mount Stirling Patrol Callouts 12 4

Economic ViabilityMount Buller Winter Visitors* 272,049 253,647Mount Buller Summer Visitors* 69,745 79,834Mount Buller Visitor* Days (Winter) 472,575 461,989Mount Stirling Winter Visitors* 5,153 5,304Mount Stirling Summer Visitors* 44,548 44,863Mount Stirling Visitor* Days (Winter) 7,025 5,304Vehicles Through The Gate (Winter) 61,255 49,700Total Investment by Private Developers ($'000) 8,430 5,435Capital Works Expenditure ($'000) including expenditure on plant and equipment 2,888 3,731Lease Holders 176 176Sub-Leases Transferred 16 59Accommodation Availability of "Hot Beds" 1,587 1,587 Accommodation Availability of "Cold Beds" 6,684 6,684 Mount Buller Maximum Snow Depth (cm) 102 115Mount Stirling Maximum Snow Depth (cm) 80 93Total Value of Approved Planning Permits ($'000) 2,900 2,491

Year at a Glance

* Visitor Statistics for 2011-12 and 2012-13 have been updated using Alpine Resorts Coordinating Council final numbers which have been adjusted to reflect season pass holder visitation.


The board members that served for the 2012–13 year were appointed by the State Government for three year terms.

Jennifer Hutchison Chairman

Appointed 28 October 2011

— Graduate, Australian Institute of Company Directors (GAICD)

— Member, Alpine Resorts Coordinating Council (ARCC)

— Former Deputy Chairman, Lake Mountain Alpine Resort Management Board

— Enthusiastic writer, beekeeper, and walker.

Dean Belle Deputy Chairman

Appointed 30 April 2010 Re-appointed 4 June 2013

— Owns and operates the Mansfield Regional Produce Store

— Owns and operates a tourism, hospitality and marketing consultancy business

— Previous Judge for the Victorian Tourism Awards (3 years)

— Over 20 years experience operating businesses in and around the ski industry in Thredbo, Mount Buffalo and Mount Buller, including two years as Assistant Manager for Buller Ski Lifts (BSL).

Bryce Moore

Appointed 30 April 2010 Re-appointed 4 June 2013

— Part owner and director, Moremac Property Group

— Division Councillor, Property Council of Australia (Victorian Division)

— Member and former director, Merrijig Ski Club

— Extensive property, planning and development experience in the private and Government sectors.

Dr Kate Brooks

Appointed 28 October 2011


— Director, KAL Analysis

— Social research specialist, with a background in corporate affairs, marketing, business management and extensive experience in public sector governance and policy and community policy

— Adjunct Senior Fellow, The Australian National University, Research School of Social Sciences

— Avid skier originating from Mount Buller, bushwalker, rower and aviator

— Sociological and community affairs member of the South Australian Ministerial Fisheries Advisory Council

— Sociology member of the NSW Ministerial Marine Estate Expert Knowledge Panel.

Andrew Evans

Appointed 4 June 2013

— Founder and joint Managing Director of Real Estate Development Corporation Pty Ltd

— Founder and joint Managing Director of Canopi Homes Pty. Ltd.

— Co-Founder and Director of Global Pipe Pty. Ltd

— Director of Futurefish Foundation

— Member of the Victorian Planning and Environmental Law Association

— Wealth of knowledge in the property industry spanning urban renewal, residential and industrial subdivision, development of commercial, industrial and retail projects, as well as medium and high-density residential development.

— Passion for environmental causes and is a keen skier.

John Lithgow

Appointed 4 June 2013

— Third generation Owner Operator of the Yarra Glen Grand Hotel, in Yarra Glen, Victoria

— Solid background in tourism promotion

— Keen skier and cyclist, with interests in politics and physical fitness.

— William Angliss Hospitality Graduate

— At the forefront of the establishment of the Yarra Valley as a world wide tourism destination.

Board of Directors

The Minister for Environment and Climate Change appoints Members of the Board, including a Chairman and Deputy Chairman, based on administrative, managerial, financial, environmental, legal, sporting and tourism skills necessary to oversee the running of the Resorts competently. Board members are appointed for a period of 18 months or three years and are eligible for reappointment. Remuneration is determined by the Victorian Government guidelines.

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Elaine Farrelly

Appointed 16 August 2013

— Chartered Accountant with more than 20 years’ experience — Executive level experience across the telecommunications, media, property development, manufacturing and not for profit sectors

— Skilled in commercial development and assessment of new business and new products — Chairman of Movember organisation — Graduate member of the Australian Institute of Company Directors.

Richard Brooks

Appointed 30 April 2010 – 27 April 2013

— Fellow, Australian Society of Certified Practicing Accountant (FCPA) — Fellow, Australian Institute of Company Directors (FAICD) — Managing Director, Tyne Solutions Pty Ltd a provider of business and association management services — CEO, Cabinet Makers and Designers Association Ltd. — Director/Deputy Chairman, Standards Australia Ltd — Chairman, SA Finance & Audit Committee

— Member, Accreditation Board for Standards Development Organisations — Chairman, Standards Australia FP-20 Committee — Member and former Director/ President, Ski Club of Victoria Ltd.

Lea Corbett

Appointed 30 April 2010 – 26 February 2013

— Executive Director, Phronesis Consulting, provider of public policy & management services

— Director, Metropolitan Waste Management Group


— Extensive experience in infrastructure development, natural resources policy and regional development through senior management roles in Commonwealth and State governments

— Enjoys alpine region year round as a keen skier and bushwalker.

Pecuniary InterestMembers of the Board and Executive Officers have completed a Declaration of Private Interests and do not participate in decision-making where a conflict of interest exists.

Board CommitteesRisk, Audit and Finance CommitteeThe RAFC is responsible for overseeing:

— Financial performance;

— The quality and effectiveness of RMB accounting, management reporting, policies and procedures;

— Compliance with the Financial Directions as issued by the Minister for Finance;

— Identification and assessment of risk, management of identified risks, referral of risk matters to the Board;

— The scope of work and performance of both external and internal auditors;

— Sign off of accounting policies; and

— Continuous monitoring of a framework and processes in compliance with the Financial Management Act 1994, and other laws and regulations that significantly impact on RMB code of conduct.

All RAFC Members are deemed independent under the Financial Management Act 1994.

Remuneration CommitteeThe Remuneration Committee is responsible for providing a recommendation to the Board regarding CEO remuneration and performance appraisal. In addition, the Committee ensures that all remuneration and policies concerning personnel are consistent with Victorian Government standards.

Governance CommitteeThe Governance Committee was established in the 2011–12 year to assist the Board to understand its mandate of best practice.

The Committee is designed to be a reference point for discussion, debate and assistance in the application of best practice.

Future Business Modeling CommitteeThe Future Business Modeling Committee was established in the 2012-13 year to assist the Board to examine the current operating model and explore a range of initiatives that will lead to improvements in the RMB Financial Operating model.

Water Storage Project CommitteeThe Water Storage Project Committee was established in the 2012–13 year to assist with the design, development and construction of a water storage facility on Mt Buller.

Board Member Meeting Attendance Where Eligible to Attend Je

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Total Meetings Held

Board Meetings 10 10 10 7 4 5 2 3 5 10

Risk Audit and Finance Committee

4 2 3 1 1 1 2 4

Remuneration Committee

2 2 2 2

Governance Committee

3 3 1 3

Future Business Modelling Committee

1 1 1 1

Water Storage Project Committee

4 4 4


Andrew Markwick General Manager Resort Operations

Appointed March 2012

Responsible for resort operations at Mount Buller and has the primary function of conducting works and capital works that preserve and enhance the presentation and operational functionality of the resorts.

This includes the effective and efficient operation of resort utilities and infrastructure such as the provision of horticultural and amenity services, snow clearing and ice management, potable water supply, waste water treatment, water reticulation systems and water supply for snow making.

Glenn Thornton Finance Manager


Responsible for financial management, risk management, finance (planning and analysis), audit (systems and controls), reporting, risk management and contract and legal services.

Louise Perrin Environmental Services Manager

Appointed October 2004

Responsible for environmental management of the Resorts and Mount Stirling resort operations and ski patrol. Environmental management activities include endangered species and wildlife management, vegetation management, pest plant and animal control, track and trail development and maintenance, waste management initiatives, advice during construction and development, and education and communication programs.

Paul McNamara Property and Development Manager

Appointed October 2012

Responsible for management of leasing, sub-leasing, licensing,statutory planning matters, and major capital development.

Denise O’Brien Human Resources Manager

Appointed June 2012

Responsible for the people, culture and development of the organisation including staff recruitment, training and performance development.

Amber Gardner Director Marketing, Sales and Business Development


Responsible for developing long-term strategic initiatives that drive market share, Resort yield and business growth. This incorporates marketing strategy, product development, market research, event management, strategic communications, brand management, commercial partnerships, and visitor information operations.

Abi Adams General Manager Corporate Services

Appointed December 2010 – March 2013

Responsible for corporate governance, strategic and corporate planning, administration, financial management, human resources, contract and legal management, risk management, resort entry, post office and visitor information operations.

Resort Management Team

John Huber Chief Executive OfficerAppointed November 2009

The duties and responsibilities of the RMB Chief Executive Officer are to:

— Carry out the Board’s directions;

— Manage day to day operations of the Resorts in accordance with approved policies;

— Manage and direct the organisation to achieve optimum profitability and effective use of business assets and human resources;

— Develop and review policy, and plan and control major functions relating to the operation and administration of the organisation through subordinate executives; and

— Leading the professional RMB team and enabling the Board’s vision, direction and framework for the future development of the Resorts in an environmentally, economically and socially sustainable manner.

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Governance Committee

Remuneration Committee

Risk, Audit & Finance Committee

Future Business Modeling Committee

Water Storage Project Committee

Mount Buller & Mount Stirling Alpine Resort Management Board

Jennifer Hutchison—Chairman Dean Belle—Deputy Chairman

Bryce Moore Kate Brooks Andrew Evans John Lithgow Elaine Farrelly

Executive Assistant

General ManagerResort OperationsAndrew Markwick

Environmental Services ManagerLouise Perrin

Property & Development ManagerPaul McNamara

Director Marketing, Sales & Business DevelopmentAmber Gardner

Finance ManagerGlenn Thornton

Human ResourcesManagerDenise O’Brien

Organisational Chart

OperationsWater & SewageEmergency ManagementAsset ManagementEngineering & Geotechnical ServicesFleet Management & Workshop ServicesCapital WorksSnow play Operations

Environmental ManagementBiodiversity ManagementWaste Management & RecyclingEnergy ManagementTrails ManagementMount Stirling OperationsMount Stirling Ski PatrolLicensing

Master PlanningResort DevelopmentStatutory PlanningSite Leases and Sub Leases

Marketing StrategyBrand DevelopmentProduct DevelopmentMedia ManagementEvent ManagementMarket Research & AnalysisStakeholder RelationsCustomer ServiceResort EntryPost Office OperationsVisitor Information

OH&SRecruitmentTraining & DevelopmentPerformance ManagementStaff Amenities

Financial ManagementStatutory ReportAuditInsuranceProcurementInformation Technology

Chief Executive OfficerJohn Huber


The RMB is committed to fulfilling its role within the context of the Victorian Government’s Alpine Resorts Strategic Plan 2012. The RMB recognises its stewardship responsibility for significant public assets and continues to manage these assets in a socially, economically and environmentally sustainable manner, while facilitating the public’s ability to access and enjoy an alpine experience at all times of the year. The Resorts’ Strategic Management Plan adopts the six strategic directions identified in the Alpine Resorts Strategic Plan 2012:

Enhancing the visitor experience and developing resorts

Delivering resort services and infrastructure efficiently and accountably

Building Partnerships

Respecting the Alpine Environment

Broadening access opportunities

Regulatory Reform

These strategic directions identified in the Alpine Resorts Strategic Plan 2012 underlie the Resorts’ vision and six focus areas, which contain intent statements and objectives that form the basis of the RMB’s internal strategic and operational planning, and is how information is categorised in this report (see the summary on the following page).

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OUR SERVICES

To provide cost-effective, quality facilities and services that meet our community’s needs and support the viable development of the Resorts.

OUR ENVIRONMENT

To protect and enhance biodiversity within our natural and modified environments and to strive for healthy and resilient ecosystems and promote sustainable practices.

OUR TOURISM

To develop the Resorts as viable tourism destinations that attract visitors by offering a range of high quality activities, facilities and experiences.

OUR COMMUNITY

To build and facilitate a vibrant and prosperous community and be a valued community member.

OUR PEOPLE

To be an employer of choice that values and is valued by all employees.

OUR CORPORATE GOVERNANCE

To maintain the integrity and value of our organisation through sound governance and financial management.

Vision

More than a mountain. Mt Buller and Mt Stirling are welcoming and accessible Australian alpine resorts. Their unique environments, histories and their sense of community create great mountain adventures and experiences all year round.


Provide cost-effective, quality facilities and services that meet our community’s needs and support the development of the Resorts through:

— Providing safe and reliable water, wastewater, and waste removal facilities and services

— Developing initiatives to further snow-making capabilities

— Managing and improving access to and movement around resorts

— Progressing the leasing and licensing process to support appropriate resort development and provide necessary community services

— Maximising asset performance by striving for best use, and improving asset efficiency through strong preventative maintenance

Potable WaterThe provision of safe drinking water is fundamental to economic well being. The RMB supplies drinking water to the Mount Buller Village, Mirimbah Picnic Area and Telephone Box Junction in the Mount Stirling Resort. Drinking water is managed in accordance with the Safe Drinking Water Act 2003 and is disinfected using combinations of UV, chlorination and filtration.

In 2012-13, 329ML of water was transferred from Boggy Creek to the Burnt Hut Reservoir for the Mount Buller Village potable water supply. Of this, 175ML was then transferred to Sun Valley Reservoir for snowmaking.

Safe Drinking Water Risk Management PlanIn accordance with the Safe Drinking Water Act 2003, the RMB adopts a preventative management approach to the provision of safe drinking water, from catchment to consumer.

The Safe Drinking Water Risk Management Plan includes:

— Promotion of public health by ensuring safe drinking water for consumers;

— Continual monitoring of the drinking water supply system to ensure the barriers to contamination and treatment process remain efficient;

— Detailed and systematic evaluation of water systems, identification of hazards and risk assessment; and

— A preventative approach, which places drinking water quality monitoring in an appropriate verification role.

The Safe Drinking Water Risk Management Plan is regularly updated to ensure it reflects changing local circumstances.

The Plan was independently audited in December 2009 and a compliance certificate granted.

Water Reuse ProjectThe Class A sewage treatment plant continues to provide enormous benefits to the Mount Buller Resort by increasing the security of snowmaking water.

During the reporting period 25ML was recycled for use as snow making water, with an average of 210kl recycled per day. Investment in water recycling and snowmaking ensures the viability of snow-related tourism in years to come.

Sewage TreatmentThe Sewage Treatment Plant has operated well during the reporting period. The RMB continues to monitor the Sewage Treatment Plant as per Environmental Protection Agency (EPA) requirements to preserve water quality in local stream networks. On 16 occasions a total of 25 samples were taken for Escherichia Coli, biochemical oxygen demand and suspended solids. All samples were compliant.

Garbage CollectionOver the 2013 winter season, 477 tonnes of solid waste was collected compared with 508 tonnes in winter 2012. A total of 662 tonnes of solid waste was collected over the year compared with 691 tonnes in 2011–12.

Solid Waste RecyclingThe RMB continually strives to improve its waste management to protect the sensitive and unique environment of the Resorts, by increasing recycling, diversion of organics and reducing the amount of solid waste going to landfill. These goals are strongly supported by active involvement in NevRwaste, and a proactive and dynamic working relationship with RMB waste contractors, 4SITE Australia Pty Ltd.

In 2012–13, 45.5% of waste (including organics) was recycled. The RMB continued to encourage and promote best practice waste management by:

— Improving and increasing the non-recyclable, recyclable and organics ‘binfrastructure’ throughout the Resorts;

— Offering hard waste and green waste collection points (items are recycled/mulched where appropriate);

Our Services

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— Continued improvement and expansion of public place recycling and waste facilities throughout the Village and ski fields;

— Improved cigarette butt litter management including improved infrastructure;

— Facilitation of community based litter initiatives such as ‘Beautify Buller Day’;

— Providing re-usable bags for residents and guests as part of the ‘Save our Snow, Just Say No’ campaign;

— Advertising and promoting best practice waste management; and

— Implementing the Waste Wise Local Education Strategy.

Since the inception of the successful trial in organics management during the 2010 winter season, the ‘Living Bin’ Program has continued to involve private and commercial properties, increasing the diversion of organics from landfill. During 2012–13, over 35 tonnes of organic waste was diverted from landfill (compared with 23 tonnes during 2011–12). This successful organics management system won the Tidy Towns Sustainable Communities Zero Waste Award in October 2011, and achieved the Premier’s Sustainability Award in September 2012. An in-vessel composting unit was trialled during winter 2013 with the aim of achieving a complete on site solution.

Vehicular Access

Snow ClearingA snowy August with regular weekly snow falls kept the snow clearing team busy. The new de-icing equipment arrived from Europe and was immediately put into action. The results it achieved were startlingly good. A marked reduction in ice was achieved as well as a significant reduction in the use of grit and salt on roads. Staff are to be commended on their excellent work in maintaining safe access to the Resorts.

Public Transport The RMB continued to provide public transport to visitors at Mount Buller through its contract with Mansfield-Mount Buller Bus Lines (MMBL). The complimentary bus shuttles from the Resort carparks to the Village centre and around the Village roads carried 538,224 passengers in 2012–13 compared to 627,542 in the previous year. The RMB continues to work with MMBL to provide a taxi service that is cost-effective and valued by the paying passengers.

Wheel Chains PolicyThe RMB is aware of the need to balance ease of access and affordability with risk and public safety. In 2012-13, the RMB continued to employ its flexible Mount Buller Wheel Chain Policy, which allows the RMB to determine whether or not vehicles are required to carry wheel chains on a daily basis, based on weather forecasts and prevailing road conditions. The policy applies to day visitors only. Those staying in the Resort overnight or travelling beyond the Skating Rink Car Park (past the snowline) are required to carry chains at all times.

The decision regarding chain requirements is determined using a decision matrix based on Bureau of Meteorology weather forecasts and the current state of the road.

Mount Buller-Mount Stirling Link RoadThe RMB plans to construct a link road between the existing Corn Hill Road and the Circuit Road at Howqua Gap, linking Mount Buller and Mount Stirling. The Link Road development responds to the RMB’s risk management plan, providing greater access for emergency vehicles to both mountains. The Link Road will also become an appealing touring circuit, thereby increasing year round visitation to both Resorts. An application for a planning permit to construct the Link Road has been lodged with the DTPLI. Assessment, consultation and solutions regarding geographical and biodiversity challenges are being determined with the relevant parties in this regard.


Leasing AdministrationThe RMB continues to administer the Minister’s Alpine Resorts Leasing Policy, utilising a standard lease document which includes recognition of lessee’s rights to improvements on leased land, and the ability for existing site holders to negotiate new leases prior to the expiry of their current lease. All new leases are endorsed by the Minister.

In order to develop measures to further enhance lessees and financiers investments in the Resorts, lease registration has now been introduced for all new leases. During 2012-13, 18 new leases were issued compared to one in 2011-12.

For the 2012-13 year there were a total of 59 consents being granted for transfers of sub-leases and/or shares compared to 16 in 2011-12. There were no consents for new sub-leases and 8 consents for the mortgage of sub-leases and/or shares granted in the year to 31 October 2013.

Site RentalLessees are required to pay site rental for the use of Crown Land on Mount Buller. During 2012-13, rent reviews for 96 sites were undertaken in accordance with the applicable lease provisions.

Service ChargesService charges are levied on all leased sites within the Resort in accordance with Section 13 of the Alpine Resorts (Management) Act 1997. Service charges are reviewed annually in accordance with RMB policy.

Service charges are currently based solely on 2004 CIVs. The Service Charge rate for 2012-13 was 0.83246% of the 2004 CIV compared to a rate of 0.81771% of the 2004 CIV in 2011-12.

In accordance with standard practice, adjustments to service charges levied on some sites were initiated to reflect reassessments associated with supplementary valuations undertaken on new developments or properties which had been subject to substantial alterations.

Land ReleaseThe aim of the RMB’s land release activities is to encourage the provision of quality developments on new sites in areas identified as being suited for development. There were no releases of new sites by the RMB during 2012–13.

Planning Permits and Private InvestmentIn 2012–13 a total of 13 new planning permit applications for development proposals with a declared estimated construction value of $2.49 million were reviewed and processed by the Board compared to the 8 (with a total value of $3.03 million) processed in the previous year. The RMB has continued to engage appropriate consultants to assist in its deliberations on these matters.

In 2012–13, 16 planning permits were issued for proposed development projects and works with a declared estimated construction value of approximately $1.92 million.

A Site Environmental Management Plan (SEMP) is required for all planning applications for site development on Mount Buller. Each SEMP is reviewed as an important part of the planning process, aimed at minimising environmental impact during the construction phase and rehabilitation of sites post-construction.

Projects with an estimated construction value of $5.05 million were completed in the year to 31 October 2013.

Compliance with building and maintenance provisions of the Building Act 1993In accordance with the provisions Section 192 (1) of the Building Act 1993, the RMB carries out the administration and enforcement of Parts 3, 4, 5, 7 and 8 of the Act and the Building Regulations on Mount Buller and Mount Stirling.

Health Services The RMB continues to facilitate the provision of medical services to visitors, residents and employees on Mount Buller during the snow season. Churchill Drive Pty Ltd managed the Mount Buller Medical Centre again this year, with the support of doctors and staff from the Mansfield Medical Clinic.

This service provided a range of services for residents, staff and visitors of Mount Buller including health screening, monitoring and education, assessment of acute medical presentations, treatment of minor wounds, medical management, liaising with medical practitioners, counselling and referral.

Mount Buller continues to provide appropriate health services for specific events and activities held over the Summer period.

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Protect and enhance our natural environment, strive for healthy and resilient ecosystems and promote sustainable practices through:

— Managing the endemic alpine flora and fauna communities within the Resorts

— Managing pest plant and animal species to limit impacts on indigenous species

— Reducing the Resorts’ environmental footprint by developing and promoting sustainable practices and programs

— Enhancing ecological awareness within the community

The RMB aims to manage the unique alpine environments of Mount Buller and Mount Stirling in a sustainable manner, maintaining the balance and quality of alpine ecosystems. In 2012–13, many key environmental objectives were achieved.

RMB Participation in Government Green InitiativesIn 2012–13, the RMB continued its active participation in Sustainability Victoria’s ECO-Buy program. The RMB increased it’s green spend by 2% from the previous year. Other initiatives included Resource Smart, Keep Winter Cool and membership of the North East Regional Waste Management Group (NevRwaste).

Environmental Management PlanThe Environmental Management Plan describes specific environmental objectives for the Resorts. Environmental issues addressed within the Plan include sustainable management of geological and geomorphologic features, soil conservation, rivers and catchments, flora, fauna, fire, indigenous and post-settlement cultural heritage, waste, energy efficiency, air quality, visual and noise amenity, visitor capacity and community awareness and engagement. The Environmental Management Plan is in the process of being reviewed, and will move into the next 5 year period once complete.

Mountain Pygmy-possum Recovery PlanThe Mount Buller alpine resort is home to a population of Australia’s iconic alpine possum – the endangered Mountain Pygmy-possum (Burramys parvus). Habitat degradation and fragmentation, predation

and climate change threaten its existence across the Australian Alps. When serious declines in Pygmy-possum numbers were observed between 2001 and 2003, the RMB, in partnership with BSL and DEPI, Department of Environment and Primary Industries, developed a five-year Recovery Plan to protect the species and its habitat. The Recovery Plan has been reviewed and updated to direct conservation actions for a further 5 years. It is a guide for the continued management of the species, learning from and building on the previous plan’s positive outcomes. Annual monitoring of the population continues with excellent results for the 2012–13 year with the ongoing trans location projects and on-ground management of the population resulting in the highest numbers being recorded since 1998.

Our Environment


During 2012–13, approximately 2,000 plants of local genetic provenance (specifically chosen to provide food and cover) have been established in key habitat areas.

In addition, important studies have been completed, identifying new habitat mapping, including habitat re-creation sites, tunnels linking previously fragmented habitats and revegetation/rehabilitation sites.

The RMB is represented on the Mountain Pygmy-possum State Recovery Team, and is committed to continuing proactive management of the species.

Native Flora and Fauna ManagementThe RMB is committed to the protection of all species of native plants and animals inhabiting the Resorts. Advice and tips on management of small native mammals is freely available and environmental staff continue to provide a small mammal catch and release service to lodges, clubs, apartments and hotels, using Elliot traps, designed to prevent injury to animals. The use of snap traps and poison baits continues to be

discouraged. During winter 2013, plastic catch and release traps were made available to public for purchase.

In 2012–13, the small mammal poster continued to be a popular tool to help visitors identify and appreciate native fauna within the Resorts. As in previous years, this poster was distributed to lodge managers and many primary and secondary school children who visited the Resorts.

Threatened species monitoring continued, including the Mountain Pygmy-possum, Broad-toothed Rat (Mastacomys fuscus), Alpine Stonefly (Thermatoperla flaveola) and the Alpine Marsh Marigold (Psychrophila introloba).

Sensitive area signage has been installed in key locations to increase staff and visitor awareness.

Pest Plant and Animal ControlA major environmental goal of the RMB is the control and elimination, where possible, of introduced or exotic plant and animal species.

As in previous years, effort was concentrated on the most significant species within the Resorts, including Orange Hawkweed, Soft Rush, Blackberry, St John’s Wort, Sycamores, Willows, feral cats, foxes and rabbits.

Pest PlantsThe 2009 Weed Management Strategy formalised the process for prioritising and treating key weed species within the Resort.

From October 2012 to June 2013, Orange Hawkweed was monitored and controlled weekly and there continues to be an established quarantine area to restrict movement through the area. Assistance with surveillance and additional funding was obtained from the Department Primary Industries, to increase resources put towards surveillance of Orange Hawkweed within the Resorts. The improved collaboration of agencies in recent years has been effective with one new and two existing sites identified and treated (compared with three new and six existing sites in 2012–13).

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Waterway weed infestations, including Three-stamen Rush, Soft Rush and Musk Monkey-flower, continued to be targeted with good results.

Blackberries were sprayed on trails between Mount Buller and Mount Stirling, and Sycamores continued to be controlled in the upper reaches of the Delatite at Mirimbah. Small English Broom infestations were treated at Mount Stirling, Mount Buller Village and Delatite Valley, and Pussy Willows continued to be removed from the Resorts.

Pest AnimalsThe RMB’s year-round integrated pest animal control program involves various methods of management at different times of year. Ongoing fox baiting programs, intensive shooting and trapping sessions, remote camera placement, and spot lighting are control/monitoring activities which continue to produce good results. Foxes are no longer commonly seen within the Resort and feral cats (known predators of the Mountain Pygmy-possum) numbers are declining. Rabbits continued to be targeted from spring to autumn.

Revegetation and RehabilitationAs part of the ongoing revegetation and rehabilitation program, approximately 2000 native seedlings were established in priority areas during 2012–13.

Plants were sourced from locally obtained seeds and cuttings, propagated over an eight-month period and returned for planting at the Resort during the summer months. This ensures the genetic provenance and integrity of native vegetation within the Resort is maintained.

Environmental staff continued to provide advice to developers and site holders regarding revegetation, and several locally indigenous native gardens are now established within the Resort.

The Mount Buller and Mount Stirling Native Vegetation Planting Guide (available for free from the RMB office and website) continues to assist residents and site holders keen to establish native gardens on their sites.

Education, Communication and EngagementEnvironmental education, communication and engagement are critical to achieving RMB environmental objectives.

During the year, environmental staff gave a number of presentations to primary, secondary and tertiary students, and continued to offer interpretive guided walks along the Summit Nature Walk from January to Easter inclusive.

The latest environmental information continues to be available on the Mount Buller and Mount Stirling websites.

During 2012–13, RMB staff continued their voluntary participation in the Community Stream Sampling Project in conjunction with Water Watch and participated in various sustainability focused training sessions held throughout the year.

Fire ManagementThe Mount Buller and Mount Stirling Fire Management Plan provides guidelines for fire prevention, preparedness, response and recovery across the Mount Buller and Mount Stirling Alpine Resorts.

Land StabilisationThe RMB continues to monitor and address any natural changes in the land. The RMB has received funding from the DEPI Alpine Risk Mitigation Program to reinstate these areas. Works were undertaken on slips on the Stirling Road in Autumn 2013.

Energy and Resource EfficiencyThe RMB is committed to improving its internal environmental performance focusing on environmentally responsible purchasing and resource and energy efficiency projects. The RMB continues its membership of ECO-Buy, a not-for-profit organisation that encourages and assists businesses and government agencies to embed sustainable purchasing practices and attitudes into their day-to-day operations. In 2012–13, the RMB increased its green spend to 12% of expenditure from 10% in 2011–12. Following audits undertaken in previous years using infrared thermography and other methods, the RMB continues to make asset improvements to increase energy and resource efficiencies and decrease carbon emissions.


Our Tourism

Provide high quality recreational activities, facilities and experiences that promote year round utilisation through:

— Facilitate and/or influence the delivery of mountain products and facilities that satisfy customer expectations

— Enabling activities and events that appeal to various target markets

— Developing the tourism strengths of the Resorts

— Generating cross-resort tourism opportunities between Mount Stirling and Mount Buller

— Driving awareness of the Resorts’ visitor offerings

Visitation

Mount Buller – SummerBetween summer 2011–12 and 2012–13, Resort visitation increased 15%, as calculated by the Alpine Resorts Coordinating Council (ARCC). Visitation growth was originally looking to be even higher than this, however several bushfires that occurred around the alpine area impacted regional visitation.

It must be noted that growth in general visitation statistics were mirrored by a similar growth in the use of key mountain bike trails around Mount Buller and across to Mount Stirling, indicating that much of this visitation increase can be attributed to the popularity of this activity.

Mount Buller – WinterMount Buller received no natural snowfalls throughout June and was forced to close early in September after a week of unseasonably hot weather (including a day that reached 20 degrees) melted the Resort’s remaining snow. As such, it was a very poor snow season, which negatively impacted visitation. For winter 2013, Mount

Buller attracted 253,647 people to the Resort which is a 7% decrease from the 2012 season. However, the resort still managed to sustain fairly strong overnight stays, only dropping 3% in terms of visitor days (from 472,575 in 2012 to 461,989 in 2013).

Mount Stirling – SummerMount Stirling experienced a 1% drop in visitation between summer 2011–12 and 2012–13, as calculated by the ARCC. This reduction can be directly attributed to the regional bushfires, with the Resort even closing for a period to be used as a staging area by emergency services to fight nearby fires.

Regardless, Mount Stirling still maintains its unique position as the only Victorian alpine resort to attract higher levels of visitation in summer than in winter.

Mount Stirling – WinterDespite poor snow falls, Mount Stirling actually managed to increase its visitation numbers by 3% between winter 2012 and 2013 – a reflection of its new branding and repositioning in the market to better connect with current customer segments. Mount Stirling was the only Victorian resort to see such growth this season, with all other resorts experiencing moderate to significant visitation decline.

However, Mount Stirling’s visitor days dropped 3% with the poor quality of snow resulting in people visiting for shorter periods.

Resort Entry TechnologyThe RMB continues to explore options to streamline the Resort entry process. Automated licence plate technology was installed at Mirimbah Resort Entry prior to the commencement of the 2013 winter season. This technology enabled the RMB to gain an understanding of vehicle season permit usage as well as monitor unauthorised access into the Resorts. Further uses will be explored once the system is fully implemented.

Visitor ServicesDuring the 2013 season, Visitor Services, a combination of RMB and Buller Ski Lift resources, was once again responsible for meeting, greeting and assisting visitors in the car parks, toboggan slopes and general Village area. The placement of these staff continue to improve liaison with the public and enhance the visitor experience.

In 2012–13 the RMB continued to contribute funds to the Mansfield Visitor Information Centre and High Country Reservations, which provides a year round visitor information service for the Resorts and a centralised accommodation booking service for visitors on behalf of commercial operators and lodges at Mount Buller.

SponsorshipThe RMB acknowledges its sponsors, who are valuable partners in delivering a high quality mountain experience to visitors, including Bollé, Kraft/Cadbury, 7 Network, Holden, K2, Specialized and Schweppes. The RMB in turn offers sponsorship to on-mountain event providers as well as sporting groups to encourage development and participation in recreational activities across all age groups.

Mountain Bike TrailsThe RMB acknowledges that a sustainable, year-round tourism product is vital to the longevity of the Mount Buller and Mount Stirling Resorts. In an effort to grow the Resorts’ summer visitation, the RMB has invested significant time and resources into the development of its cross-country mountain bike trail network, which is promoted under the ‘Bike Buller’ brand.

In total, the RMB has now implemented over 40km of new single track dedicated to mountain biking, which includes beginner trails around the Mount Buller Village, five intermediate loops out to Corn Hill, the iconic

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Stonefly trail on Mount Stirling, and Copperhead, a flow-down trail that is the first of its kind in Australia. It also includes trail links, and two skills parks.

As a result of these developments, Mount Buller has been recognised as Australia’s first International Mountain Bicycling Association (IMBA) endorsed Ride Centre. This means that the Resort joins a select group of mountain biking destinations around the world that represent IMBA’s Model Trail recognition for large-scale mountain bike facilities that offer something for every rider.

Building on this success, the RMB will next embark on the development of the Mount Buller Mount Stirling Epic Mountain Bike Trail Project, which involves the construction of a new 40km cross country trail that offers a long distance, descending ride through Victoria’s High Country. Once completed, it is envisaged that this trail will become an accredited IMBA EPIC Trail, recognised as a world-class trail that offers an iconic, diverse and high-quality back-country ride experience. This will make it the first of its kind in Australia and one of the few trails outside of North America to receive such an endorsement. With this

type of accreditation, the new trail will become a high-profile tourism draw card for Mount Buller and Mount Stirling that is expected to attract both domestic and international visitation.

These efforts ensure that Mount Buller is quickly establishing itself as Victoria’s premier mountain bike destination, with the product being the resort’s strongest summer tourism offering.

Mount Buller Marketing

Mount Buller Three-Year Marketing StrategyThe RMB works to maximise resort use and visitation on a year-round basis, thereby ensuring that Mount Buller is a vibrant destination that is economically viable and sustainable. Key to the resort’s success in this area is the growth of its tourism market – that is, the growth of Mount Buller’s valuable winter tourism trade and promotion of its mature product, and the establishment of a profitable and attractive summer tourist offering.

To this effect, the RMB follows a three-year strategic marketing plan that aims to drive resort visitation and yield opportunities in both summer and winter.

2012–13 key achievements are as follows:

— Despite a challenging winter season, growing Mt Buller’s market share to 44% - the first time in four years that it has been above 40%.

— A 38% increase in the total amount of winter media exposure secured by PR efforts, and a 21% increase in the value of this space to $7.2 million.

— An 8% increase in the number of unique visitors to the Mt Buller website.

— A 43% growth in Mt Buller’s Facebook followers.

— Growth in winter demand and valuable trade partnerships following involvement in Government trade missions to India and South East Asia with Tourism Victoria.

— The successful re-brand and re-positioning of Mt Stirling, which resulted in a growth in winter visitation.


Build and facilitate a year round vibrant community and be a valued community member through:

— Developing and enhancing village and community centres where people can congregate

— Seeking feedback and measuring the community’s response to our products, services and actions

— Acknowledging the cultural heritage of our region and celebrating our community’s history

— Supporting new and local business to enable a year round operation

— Facilitating key essential and emergency services required by the community

Village CharacterWhile Mount Stirling development remains environmentally focused, with initiatives such as new walking trails, weed control programs, public toilets and shelters, the RMB continues to encourage and facilitate private and commercial development on Mount Buller by:

— Working with and providing guidance to developers for development, submission and processing of planning and building permit applications;

— Continuing to develop the Village infrastructure and overall appearance;

— Extensively marketing the Resorts to provide incentives for commercial facility and accommodation operators to remain open year-round; and

— Providing and assisting events and activities.

Implementation of the Resort Master Plan will enable and encourage the development of a wide range of integrated resort facilities, infrastructure and accommodation. Such targeted development, in addition to improved community services, will encourage the growth of year-round activity in the resorts and better utilisation of resort assets.

Village FacilitiesIn 2012–13, the RMB undertook a number of initiatives to improve the amenity of the Mount Buller Village, including:

— Commencement of renovations to the Cow Camp Plaza and laying the ground work for an extension and further renovation during the 2013–14 financial year;

— Working closely with the developer of the old YHA site, now known as Buller Central to achieve the best possible public amenity outcome;

— Resurfacing and repairing pathways and pavements within the Village Centre; and

— Ongoing Village beautification projects with native species.

In 2012–13, the RMB undertook a number of initiatives to improve the amenities of Mount Stirling, including:

— Improvements in signage and visitor greetings area at Telephone Box Junction;

— New horse facilities including hitching rails at two heavily used locations;

— Greater emphasis on long-term sustainable trail networks;

— Intensive trail rehabilitation works in problem areas; and

— Refurbished gates to protect the environmental values of the mountain, and to assist with improved traffic management.

— Repairs and resurfacing of the Circuit Road from Telephone Box Junction to King Saddle.

Our Community

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Services for the Community

Emergency ServicesIn 2012–13 the RMB enjoyed a constructive relationship with the Victoria Police and Rural Ambulance who were in attendance daily during the snow season and special events. The RMB would also like to thank the CFA for its continued year round service at Mount Buller and its consistent presence fostering a better community.

Ski PatrolThe RMB continued to work closely with Ski Patrol on Mount Buller (a service provided by BSL) to minimise risk in the ski fields. Victoria Police and Rural Ambulance also provided excellent service that contributed to a safe skiing environment.

Volunteer Ski Patrollers were actively involved in trail maintenance, cleaning, stocktaking medical supplies and assisting and responding where first aid was required. They spent time training and consolidating their emergency rescue skills with the Mount Buller Ski Patrol, including shadowing professional patrollers on the slopes.

On Mount Stirling, the Volunteer Ski Patrol, under the direction of RMB Ski Patrol staff, is an essential component of winter safety and operations. During the 2013 snow season, the Volunteer Ski Patrol contributed a total 99 work days. There were 4 accidents attended to on Mount Stirling this year.

EducationMansfield Primary School and Mansfield Secondary College continued to provide a syllabus based education model during winter via their Mt Buller annexes for both internal and external students while Mt Buller Education Pty Ltd continued its tutor based education model. These were all operated via licence agreements out of the Alpine Central building.

Resort Worker Accommodation During the 2013 snow season the RMB continued to provide Resort Worker Accommodation as a service to the Mount Buller Chamber of Commerce. This was very successful again in enabling small businesses to access affordable staff accommodation.

Buller Crew 2013Buller Crew is a customer service program that supports the Visitor Experience Charter developed by the RMB and promotes a unified approach to customer service at the resort. Participation in the Buller Crew program supports the Mount Buller brand values by unifying all mountain staff through the “Buller Way”. The program requires that staff demonstrate the “Buller Way” core values at all times, whether at work or on personal time. An integral part of the Buller Crew customer service program is the ‘Employee of the Week’ Award, which recognises employees’ pride in delivering exceptional service to guests, residents and fellow resort staff.

This winter, 1156 mountain staff participated in Buller Crew training sessions, consisting of a one-hour customer service workshop and tour for new employees. Once again the ‘Employee of the Week’ Award was highly successful in rewarding and encouraging a high level of customer service across the mountain. Businesses nominated employees who demonstrated outstanding customer service and winners received prizes donated from around the Resort, including dinner vouchers, goggles, and a snow groomer ride to name a few.

To help create a friendly and cooperative team environment across the mountain, Buller Crew hosted regular sports nights in the Alpine Central Sports Hall which proved popular and were well attended.

Five Principles of Customer Service The ‘Five Principles of Customer Service’ have been developed to remind all Mount Buller and Mount Stirling employees of the five simple steps involved in providing exceptional customer service and ultimately happy repeat visitors. These principles are explained and reinforced through Buller Crew, RMB and Buller Ski Lift staff orientation and training programs.

Five Principles

1. Greet the guest

2. Know the mountain

3. Offer to help

4. Look your best

5. Have fun

In 2010–11 the RMB developed a Visitor Experience Charter that was signed by the Mount Buller Chamber of Commerce, the Mount Buller Ratepayers Association, BSL and RMB at Mount Buller that further reinforces a unified approach to customer service at the Resort.

Emergency Management The Mount Buller and Mount Stirling Alpine Resort Emergency Management Committee is made up of approximately 20 representatives of the RMB, BSL, Victoria Police, CFA, State Emergency Service (SES), Department of Human Services (DHS), DEPI, Ambulance Victoria and Buller Gas. There were two Emergency Management Planning Committee meetings held for the 2012–13 period. The Emergency Management Plan underwent a successful audit in April 2013.


Be an employer of choice that values and is valued by all employees through:

— Investing in the safety, well-being and development of our people

— Embedding a culture where productivity, adaptability and progress is embraced, responsibility accepted and accountability delivered

— Providing an environment that will attract and retain high quality staff

— Engage with our people to promote, understand and improve organisational performance

Core ValuesThe RMB has adopted the following core values:

— Communication – maintain an open, clear and concise two way flow of relevant information both internally within the RMB and externally;

— Leadership – provide positive guidance and motivation and act in a way that upholds the RMB core values;

— Innovation – drive continuous improvement and be open and responsive to change;

— Customer Service – strive to exceed customers’ expectations by understanding and responding to their needs;

— Integrity – be honest, open and ethical in dealings with each other, customers and stakeholders; and

— Teamwork – work together to achieve desired goals in a supportive and co-operative environment.

Public Sector ValuesThe RMB actively promotes and encourages adherence to public sector values and to the Code of Conduct for Victorian Public Sector Employees.

The RMB’s Human Resource policies incorporate the conduct principles set out in Section 7 of the Public Administration Act 2004. Values and associated behaviours are embedded in all position descriptions and the RMB’s performance appraisal process incorporates a review of how individuals demonstrate these values. Compliance with these policies is a condition of employment with the RMB.

Public Sector Employment PrinciplesThe RMB has adopted the Public Sector Employment Principles as per Section 8 of the Public Administration Act 2004. These principles are embedded in the internal policies and procedures of the RMB in the recruitment process, performance management and in the resolution of any disputes.

Merit and equity The RMB complies with the Public Administration Act 2004 by maintaining a workplace free of discrimination in line with the Victorian Government’s merit and equity principles. The RMB continuously reviews its human resource policies and processes in areas such as equal opportunity and recruitment. Employees are selected and/or promoted for positions on the basis of relative ability, knowledge, experience and skill, in fair and open competition measured against the requirements of the position involved. All employees are treated in a fair and equitable manner without regard to race, religion, political opinions, sexual preference, age, physical or mental disability, family responsibility, pregnancy, national extraction or social origin.

Our People

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Occupational Health and SafetyThe RMB is responsible for providing a safe working and recreational environment, free of accidents and injuries, for all RMB employees, contractors and members of the public. The RMB is committed to ensuring that all people affected by its activities are protected from loss, risks to safety, health and wellbeing.

RMB staff members are fundamental to the principles of risk management and OH&S, and these responsibilities are imbedded in all position descriptions and are assessed as part of the performance appraisal process. The RMB’s staff-based OH&S Committee formally met four times during the year.

Work Days LostDuring 2012-13, thirteen days were lost due to one workplace injury.

Workforce DataAt 31 October, 2013 the number of permanent employees totalled 33 (29 EFT) compared with 31 (30.4 EFT) in 2011–12. Of these 15 were female and 18 were male. Seasonal staff totalled 40 (28 male and 12 female) compared with 42 in 2011–12. Tasks performed by seasonal staff included visitor

services, resort entry, snow clearing, traffic control, car parking, toboggan slope and sports hall supervision, Mount Stirling Ski Patrol and general Resort work.

Staff Training and DevelopmentThe RMB supports training and development to ensure that all full-time, part-time and casual employees have the necessary skills and qualifications to fulfil their work requirements.

All RMB employees must complete a basic level of training, including Buller Crew (customer service) training and risk management training.

Some positions require specific qualifications or training, including:

— Traffic Management accreditation

— Authorised Officer training (including client interaction and defensive tactics)

— Chemical handling

— Ski Patrol

— Snowmobile licensing

— Alpine awareness training

The RMB also encourages further or continuing study or training linked to business needs. During 2012–13 training courses and qualifications attained by staff included:

— Australian Ski Patrol Association

— Customer Service

— First Aid

— Fringe Benefit Tax

— Executive Leadership

— Emergency Management

— Certified Practicing Accountant

— Diploma of Management

— Master of Marketing

— Bushfire Regulations

— Public Health and Water Quality Awareness

— Perform CPR and Apply First Aid

— Manual handling

— Safety Management Training

— Maintaining Chainsaws and trim and Cross Cut Felled Trees

— Manual Handling

— 4WD Drive and Snow Safe Driving Course

Industrial RelationsRMB staff (with the exception of Senior Appointments on GSERP contracts) are employed under the Mount Buller and Mount Stirling Alpine Resort Management Board Collective Enterprise Agreement 2009–13.

OH&S Performance Indicators 2011–12 2012–13 Target

OH&S committee meetings (formal) 5 4 4

Workplace inspections (formal) 2 3 2

Incident Statistics

Workdays lost 19 13 0

Injury incidents 2 2 0

No. of lost time injuries 1 0 0

Incident Type

Manual handling 1 0 0

Slip, trip or fall 1 2 0

Stress 0 0 0

Laceration 0 0 0

Other 0 0 0

2013 Staff Awards Annually the RMB recognises staff members and teams that excel and deliver above expectations.

Outstanding Staff Member (as voted by Peers): Frank David

CEO’s Outstanding Staff Member (as voted by the Executive): Lyndsey Jackman and Kelly Purton

Outstanding Team (as voted by Peers): Resort Entry

CEO’s Outstanding Team (as voted by the Executive): Finance Department


Maintain the integrity and value of our organisation through sound governance and financial management, through:

— Building strong and positive relationships with key stakeholders

— Planning for our future through robust strategic, business and resort master planning

— Driving fiscal responsibility throughout our business and finding ways to become more efficient

— Identifying and mitigating risks impacting the Resorts

— Meeting our regulatory requirements

Stakeholder ConsultationThe RMB acknowledges an extensive range of stakeholders, which encompasses the people of Victoria, and individuals and organisations with a financial, legal or social interest in Mount Buller or Mount Stirling.

RMB stakeholders include:

— State Government of Victoria, in particular the Minister for Environment and Climate Change, the Minister for Finance and the Minister for Planning;

— The Taungurung people, traditional custodians of the land;

— Mansfield Shire Council;

— Neighbouring land management authorities;

— Alpine Resorts Coordinating Council (ARCC) and associated entities;

— Other Victorian alpine resorts;

— RMB staff, committees and associated entities;

— Mount Buller Chamber of Commerce;

— Mount Buller Ratepayers Association;

— Buller Ski Lifts Pty Ltd (BSL);

— Emergency services, including Ski Patrol;

— Industry groups;

— Environmental interest groups;

— Recreational groups;

— Educational authorities and organisations;

— Land and property developers;

— Stirling Experience;

— Business and commercial operators;

— Tourism operators;

— Ski clubs;

— Apartment owners;

— Contractors;

— Residents;

— Visitors and guests; and

— District communities.

The Buller Marketing Coordination Group The Buller Marketing Coordination Group (BMCG) includes representatives from BSL, High Country Reservations, Mount Buller Chamber of Commerce, Mount Buller Ratepayers Association and the RMB. The BMCG works to promote the mountain in a co-operative and consistent approach, with a single, clear Mount Buller brand and marketing campaign. The BMCG objectives include:

— Providing an opportunity for input and advice from stakeholders in respect to marketing activity;

— Communicating, monitoring and evaluating the RMB Three-Year Marketing Strategy; and

— Creating sub-committees to provide direction and recommendations as required.

Currently, the BMCG incorporates two sub-committees – the Sales and Promotions Committee and Winter Brochure Committee.

Local and Regional AuthoritiesThe RMB continues to consult with a range of industry experts and authorities in the development of new policies, procedures and initiatives. In particular, neighbouring Crown Land managers (Parks Victoria, DEPI and Mansfield Shire Council) are consulted to ensure best practice land management. The RMB also consults with other Victorian alpine resorts through the ARCC and an informal network of chief executives, finance officers and environmental officers.

Indigenous PeopleThe RMB abides by Aboriginal Affairs Victoria reporting requirements where any specific indigenous initiatives or projects will be reported in accordance with the necessary guidelines. No special initiatives were needed by the RMB to meet these obligations.

Strategic and Corporate Planning As required under Section 53 of the Act, the RMB develops and lodges its Corporate Plan, including a Statement of Corporate Intent and a Business Plan. As required under Section 56F of the Act, the RMB reviews its Strategic Management Plan when required. The current plans use the key strategic directions of the Alpine Resorts Strategic Plan 2012 using RMB focus areas and objectives that were developed by the Board and the Management Team during 2011 and were revised and readopted in 2013.

Resort Master Plan The Mount Buller Resort Master Plan is now well into its implementation phase and continues to guide the Resort’s development over the next 10 – 15 years as well as providing confidence for individual stakeholders to commit investment dollars to the mountain. Whilst a number of Master Plan projects have already been completed, the 2012–13 year was a period of

Our Corporate Governance

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consolidation and preparation for significant investment over the next few years. A major part of this is a focus on the detailed analysis that will underpin the more strategic projects like the snow play facilities, the Valley North parking structure and gondola.

Significant changes in financial position during the yearThere are no significant matters which changed the RMB’s financial position during the reporting period.

Major changes or factors affecting performance The decrease in gate entry revenue is a result of lower visitation in the 2013 snow season compared to 2012.

The RMB did not release any Crown Land during the 2012–13 year for development and therefore no income was received for the right to lease and develop land.

During 2013 the RMB received service charge infrastructure fees not received in 2012 as a once off charge for registering beds installed within properties on Mount Buller. Also, the RMB received an asset for no consideration which at fair valuation, was stated at $315,000, and which has been included as income in 2012–13;

The change in operating expenditure is primarily due to:

— Increased depreciation on fixed assets of infrastructure post re-evaluation from 2011;

— Decreases in contractors used during 2013;

— Elimination of bad debts in 2013;

— An increase in salaries and wages, including the impact of the Enterprise Agreement;

— Increased costs in relation to utilities, contracts and insurance.

Summary of Operational and Budget Objectives

2011–12 Actual

$‘000

2012–13 Actual

$‘000Variance

$‘000

Revenue 12,242 12,466 224

Expenditure 12,027 12,106 79

Capital Works (including plant and equipment) 2,888 3,731 843

Government Funding The RMB acknowledges investment in Mount Buller and Mount Stirling by the Victorian Government in 2012-13 as follows:

— $50,000 – Regional Development Victoria (RDV) funding for construction of the multi-use trail network and associated infrastructure works; and

— $125,000 – Federal Government funding toward the EPIC.

— $125,000 – Federal Government funding toward the Mount Buller and Mount Stirling EPIC Trail.

Consultancies under $10,000There were 13 consultancies that were less than $10,000 totalling $59,399 during 2012–13.

Consultancies over $10,000There were 12 consultants engaged where total remuneration was greater than $10,000. Refer to the table above for details.

Major ContractsThere were no major contracts greater than $10 million entered into during the reporting period.

Subsequent EventsThere have been no events subsequent to the year that significantly impact on operations in future years.

Government Advertising ExpenditureGovernment Policy requires disclosure of all Government Advertising Expenditure with a total media buy of $150,000 or greater (exclusive of GST). No Government Advertising Expenditure was incurred by the ARMB during the reporting period.

Consultancies over $10,000 ($ ‘000)

Consultant Purpose of consultancy

Total approved project fee

ex GST

Expenditure 2012–13

ex GST

Future committed expenditure

Ex GSTBiosis Research Environmental

Consultancy & Analysis$94 $94 Nil

Cox Architecture Pty Ltd

Architecture Design & Consulting

$122 $122 Nil

Feehan Consulting Pty Ltd

Water Project Consultancy

$15 $15 Nil

GHD Pty Ltd Sustainable Water Security Consultancy

$512 $134 $378

Inspiring Place Pty Ltd

Strategic Management Design & Consultation

$21 $21 Nil

Interlandi Mantesso Pty Ltd

Design & Manage Day Visitor Upgrade

$105 $105 Nil

Jenham Solutions Pty Ltd

Resort Operations Consulting & Reports

$27 $27 Nil

Keaney Planning Planning Scheme Amendments

$22 $22 Nil

Russell Kennedy Pty Ltd

Legal Services $43 $43 Nil

Smec Australia Pty Ltd

Consulting Services $19 $19 Nil

Watergroup Pty Ltd

Project Management Water Meters

$23 $23 Nil

Yabbie Pond Pty Ltd

Water Quality Management Plan

$18 $18 Nil


Risk ManagementIn June 2012 the Victorian Managed Insurance Authority (VMIA) conducted a Risk Framework Quality Review. The review was based on a seven-element maturity model informed by the Australian Standard for Risk Management AS/NZS ISO 31000:2009. The VMIA’s risk management framework rating acknowledged the RMB as having developed some good risk management practices and arrangements, and that it is reviewing and improving its risk framework over time.

Risk management principles apply to all areas of RMB operations and include health and safety, property, environment, finance and internal controls. The RMB’s organisational culture is built around providing a safe and rewarding experience for guests, residents and employees visiting, living or working in the Resorts.

The RMB has a Risk Management Policy and develops risk management systems to assist staff to understand their responsibilities and create a culture of safety. The RMB maintains a risk register that identifies risks to the organisation and those associated with the use of Crown Land. The register, developed in association with the VMIA, features RMB controls and mitigation strategies. The register is reviewed on a regular basis to ensure proper consideration of newly identified and existing risks.

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

Implementation of the Victorian Industry Participation PolicyIn October 2003, the Victorian Parliament passed the Victorian Industry Participation Policy Act 2003 which requires public bodies and departments to report on the implementation of the Victorian Industry Participation Policy (VIPP). Departments and public bodies are required to apply VIPP in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria. The RMB has not commenced any tenders or entered into any contracts worth $1 million or more during the year ended 31 October 2013.

Freedom of InformationThe RMB is considered to be a ‘Government Agency’ under the terms of the Freedom of Information Act 1982. Accordingly, it is required to comply with prescribed procedures under which members of the public may gain access to information held by agencies. A decision to release information is made by the Authorised Officer.

Attestation on compliance with the Australian/New Zealand Risk Management Standard

I, John Huber, certify that the Mount Buller and Mount Stirling Alpine Resort Management Board has risk management processes in place consistent with the Australian/New Zealand Standard 4360:2004 and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Risk, Audit and Finance committee verifies this assurance and that the risk profile of the Mount Buller and Mount Stirling Alpine Resort Management Board has been critically reviewed within the last 12 months.


Attestation for compliance with the Ministerial Standing Direction 4.5.5.1 – Insurance

I, John Huber, certify that the Mount Buller and Mount Stirling Alpine Resort Management Board has complied with Ministerial Direction 4.5.5.1 – Insurance.


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The RMB has determined that the Authorised Officer for Freedom of Information requests during the 2012–13 reporting period is the Finance Manager. Requests for information under the Freedom of Information Act 1982 are subject to a $25.10 fee, and should be addressed to:

Freedom of Information Officer

Mount Buller & Mount Stirling Alpine Resort Management Board Post Office Mount Buller, VIC 3723

In 2012–13, there were no requests for the RMB to provide information under the Freedom of Information Act 1982.

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

— Details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary; — Details of changes in prices, fees, charges, rates and levies; — Details of any major external reviews carried out; — Details of major research and development activities; — Details of official overseas travel undertaken including a summary of the objectives and outcomes of each visit; — Details of major promotional, public relations and marketing activities; and — Details of assessments and measures undertaken to improve the occupational health and safety of employees.

Compliance with Protective Disclosures Act 2012 The Protective Disclosures Act 2012 (Vic), has replaced the Whistleblowers Protection Act 2001. The Protective Disclosures Act 2012 (Vic) enables staff to make disclosures about improper conduct by public bodies, their staff and officers. The Act aims to ensure openness and accountability by encouraging people to make disclosures and

ensuring their protection from unfavorable action when they do.

The RMB does not tolerate improper conduct by employees, or the taking of reprisals against those who come forward to disclose such conduct.

It is committed to ensuring transparency and accountability in its administrative and management practices, and supports the making of disclosures that reveal corrupt conduct, conduct involving a substantial mismanagement of public resources, or conduct involving a substantial risk to public health and safety or the environment.

The RMB will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal. It will also afford natural justice to the person who is the subject of the disclosure.

Reporting proceduresInformation and procedures regarding disclosures of improper conduct or detrimental action by the RMB or its employees can be found online at;

www.depi.vic.gov.au

DEPI Home — About Us — Legislation — Protected disclosures

Reports and disclosures may be made to:

Jennifer Berensen Protected Disclosure Co-ordinator

Department of Environment and Primary Industries PO Box 500 East Melbourne Vic 3002 Ph: 9637 8697 Email: [email protected]

Alternatively, disclosures of improper conduct or detrimental action by the RMB or its employees may also be made directly to the Ombudsman.

The Ombudsman Victoria

Level 9, 459 Collins Street (North Tower) Melbourne VIC 3000 Telephone: (03) 9613 6222 Toll free: 1800 806 314 Internet: www.ombudsman.vic.gov.au Email: [email protected]

Disclosures under the Protective Disclosures Act 2012In 2012–13 there were no disclosures received.

The current procedures established by the public body are available on the RMB website;

www.mtbuller.com.au/Resort-Management3/Our-Governance/Policies-Reports2

Gifts, Benefits and Hospitality Framework Attestation

I, John Huber, Chief Executive Officer, of Mount Buller Mount Stirling Alpine Resort Management Board certify that:

— my public entity has gifts, benefits and hospitality policies and procedures in place;

— these policies and procedures are consistent with the minimum requirements and accountabilities outlined in the Gifts, Benefits and Hospitality Policy Framework for the Victorian Public Sector – Revised April 2012 issued by the Public Sector Standards Commissioner; and

— these policies and procedures are updated, promulgated and provided to the audit committee for review at least once a year.

John Huber Chief Executive Officer Date: 31 October 2013


Statement by the Mount Buller and Mount Stirling Alpine Resort Management Board, Chairman of the Board and Chief Executive Officer and Finance Manager

The attached financial statements for the Mount Buller and Mount Stirling Alpine Resort Management Board have been prepared in accordance with Standing Directions 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and accompanying notes, presents fairly the financial transactions during the year ended 31 October 2013 and financial position of the Mount Buller and Mount Stirling Alpine Resort Management Board at 31 October 2013.

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

We authorise the attached financial statements for issue on 13 December 2013.

Jennifer Hutchison John Huber Glenn Thornton Chairman Chief Executive Officer Finance Manage

13 December 2013.

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Note 2013$‘000

2012$‘000

Income from transactions

Gate entry 1(e) 3,613 3,946

Site rental 1(e) 3,756 3,784

Service charges 1(e) 3,382 3,299

Service charge – infrastructure fee 1(e) 303 –

Marketing revenue 178 264

Taxi transport commission 85 109

Sale of rights to lease and develop Crown land 1(e) – –

Government grants 1(e) 175 136

Interest income 1(e) 170 304

Asset Received at Fair Value 1(e) 315 –

Other income 489 400

Total income from transactions 12,466 12,242

Expenses from transactions

Village operations 1(f) 3,583 3,326

Visitor services 1(f) 1,991 2,064

Administration and corporate services 1(f) 3,280 3,247

Land management and environmental services 1(f) 1,293 1,204

Health services 1(f) 234 242

Marketing 1(f) 1,601 1,805

Interest expense 1(f),2(b) 124 139

Total expenses from transactions 12,106 12,027

Net result from transactions (net operating balance) 360 215

Other economic flows included in net result

Net gain/(loss) on non-financial assets 3 (90) (134)

Total other economic flows included in net result (90) (134)

Net result 270 81

Other economic flows – other comprehensive incomeItems that will not be reclassified to net result

Changes in physical asset revaluation surplus 18 – (3,370)

Total other economic flows – other comprehensive income – (3,370)

Comprehensive result 270 (3,289)

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

Comprehensive Operating Statement For the financial year ended 31 October 2013

Mount Buller and Mount Stirling Alpine Resort Management Board Financial Statements for the Year Ended 31 October 2013 29

Note 2013$‘000

2012$‘000

Assets

Financial Assets

Cash and deposits 17(a) 5,809 7,908

Receivables 4 1,036 489

Total Financial Assets 6,845 8,397

Non-Financial Assets

Inventories 5 18 23

Infrastructure, property, plant and equipment 6 163,565 161,641

Other non-financial assets 7 503 414

Total Non-Financial Assets 164,086 162,078

Total Assets 170,931 170,475

Liabilities

Payables 8 1,518 1,136

Borrowings 9 2,205 2,490

Employee benefits 10 519 466

Other liabilities 12 153 212

Total Liabilities 4,395 4,304

Net Assets 166,536 166,171

Equity

Contributed capital 137,290 137,195

Retained profits 6,653 6,383

Asset revaluation reserve 18 22,593 22,593

Total Equity 166,536 166,171

Commitments for expenditure 14

Contingent assets and contingent liabilities 15

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

Balance Sheet As at 31 October 2013

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Physical Asset Revaluation

Surplus

Accumulated Surplus

Contributions by Owners

Total

$’000 $’000 $’000 $’000

Balance at 1 November 2011 25,963 6,302 137,157 169,422

Net result for the year – 81 – 81

Other comprehensive income for the year (3,370) – – (3,370)

Transactions with owners in the capacity as owners – – 38 38

Balance at 31 October 2012 22,593 6,383 137,195 166,171

Net result for the year – 270 – 270

Other comprehensive income for the year – – – –

Transactions with owners in the capacity as owners – – 95 95

Balance at 31 October 2013 22,593 6,653 137,290 166,536

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

Statement of Changes in Equity For the financial year ended 31 October 2013

Note 2013$‘000

2012$‘000

Cash Flows from Operating Activities

Receipts from customers (incl GST) 12,122 12,775

Payments to suppliers and employees (incl GST) (11,547) (10,789)

Interest received 172 316

Interest and other costs of finance paid (124) (139)

Net Cash Provided by Operating Activities 17(b) 623 2,163

Cash flows from Investing Activities

Payments for infrastructure, property, plant and equipment (2,606) (2,884)

Proceeds from sale of property, plant and equipment 74 49

Net cash from/(used in) investing activities (2,532) (2,835)

Cash Flows from Financing Activities

Proceeds from Capital Contributions 95 38

Proceeds of borrowings - 102

Repayment of borrowings (285) (258)

Net cash from/(used in) financing activities (190) (118)

Net increase/(decrease) in cash and cash equivalents (2,099) (790)

Cash and cash equivalents at the beginning of the financial year 7,908 8,698

Cash and deposits at the end of the financial year 17(a) 5,809 7,908

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

Cash Flow Statement For the financial year ended 31 October 2013


Notes to the Financial Statements for the year ended 31 October 2013

Note 1 Summary of Significant Accounting PoliciesThe Mount Buller and Mount Stirling Alpine Resort Management Board (RMB) is constituted under the Alpine Resorts (Management) Act 1997 and has its principal place of business located at Mt Buller, Victoria, Australia.

These annual financial statements represent the audited general purpose financial statements for the Mount Buller and Mount Stirling Alpine Resort Management Board for the year ending 31 October 2013. The purpose of the report is to provide users with information about the RMB’s stewardship of resources entrusted to it.

(a) Statement of compliance

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

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

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

These annual financial statements were authorised for issue by the Chairman of the Mount Buller and Mount Stirling Alpine Resort Management Board on 13 December 2013.

(b) Basis of accounting preparation and measurement

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

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

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision.

Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates relate to:

— The fair value of land, buildings, infrastructure, plant & equipment, (refer to Note 1(i));

— Actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates, (refer to Note 1(j).

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

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

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 October 2013 and the comparative information presented for the year ended 31 October 2012.

Not-for-profit statusUnder the Australian Equivalent of International Financial Reporting Standards (AIFRS), there are requirements that apply specifically to not-for-profit entities that are not consistent with International Financial Reporting Standards (IFRS) requirements. The RMB has analysed its purpose, objectives and operating philosophy and determined that it does not have profit generation as a prime objective. Consequently where appropriate the RMB has elected to apply options and exemptions within AIFRS that are applicable to not-for-profit entities.

(c) Reporting entity

The financial statements cover the Mount Buller and Mount Stirling Alpine Resort Management Board (RMB) as an individual reporting entity.

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

Its principal address is:

Mount Buller and Mount Stirling Alpine Resort Management Board Alpine Central Summit Road Mount Buller VIC 3723

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Note 1 Summary of Significant Accounting Policies (continued)The RMB is a public body acting on behalf of the Crown, and reporting to the Department of Environment and Primary Industries.

(d) Scope and presentation of financial statements

Comprehensive operating statementIncome and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements.

‘Transactions’ and ‘other economic flows’ are defined by the Australian system of government finance statistics: concepts, sources and methods 2005 Cat. No. 5514.0 published by the Australian Bureau of Statistics.

‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash.

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

— gains and losses from disposals;

— revaluations and impairments of non-financial physical and intangible assets;

— actuarial gains and losses arising from defined benefit superannuation plans;

— fair value changes of financial instruments and agricultural assets; and

— depletion of natural assets (non-produced) from their use or removal.

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

Balance sheetAssets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets.

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

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

Statement of changes in equityThe statement of changes in equity presents reconciliations of non owner and owner 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 economic flows – other movements in equity’ related to ‘transactions with owners in the

capacity as owners’ which includes equity transfers from related government departments.

Rounding of amountsAmounts in the financial statements (including the notes) have been rounded to the nearest thousand dollars, unless otherwise stated. Figures in the financial statements may not equate due to rounding.

(e) Income from transactions

Income is recognised to the extent that it is probable that the economic benefits will flow to the RMB and the income can be reliably measured at Fair Value. Amounts disclosed as income is, where applicable, net of returns, allowances and duties and taxes. Revenue is recognised for each of the RMB’s major activities as follows:

Service chargesService charge revenue is brought to account when a rate/tariff is levied or determined for service charges leviable under Section 13 of the Alpine Resorts (Management) Act 1997. A service charge infrastructure fee is also levied upon site holders where development or redevelopment leading to an increased number of beds occurs. This is levied upon completion of the development.

Site rentalSite rental income from leased Crown land is recognised annually in the comprehensive operating statement in accordance with the terms and conditions of individual leases.

Gate entryGate entry revenue (including from the sale of season access passes) is recognised when received.


Note 1 Summary of Significant Accounting Policies (continued)Land releaseRevenue from the sale of rights to lease and develop crown land is recognised on the execution of a contract of sale, following approval by the Minister of Environment and Climate Change. Any deposits received prior to approval from the Minister and execution of contract of sale is recorded as unearned revenue.

InterestInterest revenue is recognised upon gaining the control of the right to receive the interest payment.

GrantsIncome from grants (other than contribution by owners) is recognised when the RMB obtains control over the contribution. However grants and contributions received from the Victorian State Government which were originally appropriated by Parliament as additions to net assets or where the Minister for Finance and the Minister for Environment and Climate Change have indicated are in the nature of owners’ contributions are accounted for as equity (contributed capital).

Assets Received at Fair ValueContributions of assets received free of charge or for nominal consideration are recognised at fair value when control is obtained over them, irrespective of whether these contributions are subject to restrictions or conditions over their use.

(f) Expenses from transactions

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

Employee expensesRefer to Note 1(j) regarding employee benefits.

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

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

The Department of Treasury and Finance (DTF) in their Annual Financial Statements disclose on behalf of the State as the sponsoring employer, the net defined benefit cost related to the members of these plans as an administered liability. Refer to DTF’s Annual Financial Statements for more detailed disclosures in relation to these plans.

Performance paymentsPerformance payments for the RMB’s Executive Officers and staff are based on a percentage of the annual salary package provided under their employment contracts. Unpaid, but committed, employee performance payments are recognised as a liability in the financial statements. Performance payments are assessed and paid annually where applicable.

DepreciationAll infrastructure assets, buildings, plant and equipment and other non-financial physical assets that have finite useful lives are depreciated. 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. Where assets have separate identifiable components that have distinct useful lives and/

or residual values, a separate depreciation rate is determined for each component. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period and adjustments made where appropriate.

Land, earthworks, land under declared roads, and core cultural assets, which are considered to have an indefinite life, are not depreciated. Depreciation is not recognised in respect of these assets because their service potential has not, in any material sense, been consumed during the reporting period.

The following useful lives are used in the calculation of depreciation consistent with the prior year:

Buildings 15 to 84 years

Roads and car parks infrastructure assets 50 to 80 years

Infrastructure assets 2 to 100 years

Other plant and equipment 5 to 20 years

Interest expenseInterest expense is recognised in the period in which it is incurred.

(g) Other economic flows included in the net result

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

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

Revaluation gains/(losses) of non-financial physical assetsRefer to Note (i) Revaluations of non-financial physical assets.


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Note 1 Summary of Significant Accounting Policies (continued)Disposal of non-financial assetsAny gain or loss on the sale of non-financial assets is recognised at the date of disposal and is determined after deducting from the proceeds the carrying value of the asset at that time.

Amortisation of intangible assetsIntangible assets with finite lives are amortised as an other economic flow on a straight-line basis over the asset’s useful life.

Impairment of non-financial assetsItems of infrastructure, property, plant and equipment are assessed annually for indicators of impairment. If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off as an other economic flow, except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that class of asset.

If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. 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 or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

Refer to Note 1(i) in relation to the recognition and measurement of non-financial assets.

Other gains/(losses) from other economic flowsOther gains/(losses) from other economic flows include the gains or losses from:

— transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition or reclassification; and

— the revaluation of the present value of the long service leave liability due to changes in the bond interest rates.

(h) Financial assets

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

ReceivablesReceivables consist of:

— statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and

— contractual receivables, which include mainly debtors in relation to goods and services, loans to third parties and accrued investment income.

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

A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Impairment of financial assetsAt the end of each reporting period, the RMB assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

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



Note 1 Summary of Significant Accounting Policies (continued)The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.

(i) Non-financial assets

InventoriesInventories include stores and materials used in the operation of the waste water treatment plant, snow clearing operation and minor amounts of merchandise material. These items are stated at the lower of cost and current replacement cost.

Property, plant and equipmentAll non-financial physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment.

Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition.

Non-financial physical assets such as Crown land are measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply.

Road network assets (including earthworks of the declared road networks) and other infrastructure assets are measured at fair value, determined by reference to the asset’s depreciated replacement cost.

Land under declared roads acquired prior to 1 July 2008 is measured at fair value. Land under declared roads acquired on or after 1 July 2008 is measured initially at cost of acquisition and subsequently at fair value. The fair value methodology applied by the Valuer-General Victoria is based on discounted site values for relevant municipal areas applied to land area under the arterial road network, including related reservations.

The fair value of plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost. For plant, equipment and vehicles, existing depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.

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

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

Revaluations of non financial physical assetsNon financial physical assets are measured at fair value in accordance with the Financial Reporting Directions (FRD’s) issued by the Minister for Finance. A full revaluation normally occurs

every five years, based upon the asset’s government purpose classification but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations. Certain infrastructure assets are revalued using specialised advisors. Any interim revaluations are determined in accordance with the requirements of the FRDs.

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

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

Net revaluation decreases are recognised in ‘other economic flows – other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same asset class. The net revaluation decrease recognised in ‘other economic flows – other comprehensive income’ reduces the amount accumulated in equity under the asset revaluation surplus.

Revaluation increases and decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes. Any asset revaluation surplus is not normally transferred to accumulated funds on derecognition of the relevant asset.


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Note 1 Summary of Significant Accounting Policies (continued)Other non-financial assetsPrepayments Prepayments 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.

Intangible assetsIntangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated depreciation/amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the RMB.

(j) Liabilities

BorrowingsBorrowings are initially measured at fair value, being the cost of the borrowings, net of transaction costs (refer to Note 1(k) Leases).

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

PayablesPayables consist of:

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

— statutory payables, such as goods and services tax and fringe benefits tax payables.

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

ProvisionsProvisions are recognised when the RMB 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 end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using the discount rate that reflects the time value of money and risks specific to the provision.

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

(i) Wages and salaries, annual leave and sick leaveLiabilities for wages and salaries and annual leave are recognised in the provision for employee benefits, classified as current liabilities. Those liabilities which are expected to be settled within 12 months of the reporting period are measured at their nominal values.

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

(ii) Long service leaveLiability for long service leave (LSL) is recognised in the provision for employee benefits.

Unconditional LSL is disclosed in the notes to the financial statements as a current liability even where the RMB does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

— nominal value—component that the RMB expects to settle within 12 months; and

— present value—component that the RMB does not expect to settle within 12 months.

Conditional LSL is disclosed as a non current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service.

This non current LSL liability is measured at present value. Any gain or loss following revaluation of the present value of non current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an ‘other economic flow’ (refer to Note 1(g)).



Note 1 Summary of Significant Accounting Policies (continued)(iii) 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.

The RMB recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

Employee benefits on costsEmployee benefits on costs such as payroll tax, workers compensation and superannuation are recognised as part of the provision for employee benefits.

(k) Leases

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

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases.

RMB as lessorRental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

(l) Equity

Contributions by ownersAdditions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributions by owners.

Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners.

(m) Commitments

Commitments are disclosed at their nominal value and inclusive of the goods and services tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated.

(n) Contingent assets and contingent liabilities

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note (Note 15) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

(o) Accounting for the Goods and Services Tax (GST)

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

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

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

Commitments and contingent assets and liabilities are also stated inclusive of GST.

(p) Events after the reporting period

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the RMB and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed in the reporting period. Note disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent reporting periods.


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Note 1 Summary of Significant Accounting Policies (continued)(q) AASs issued that are not yet effective

Certain new AASs have been published that are not mandatory for the 31 October 2013 reporting period. Department of Treasury and Finance (DTF) assesses the impact of all these new standards and advises the RMB of their applicability and early adoption where applicable.

As at 31 October 2013, the following standards and interpretations that are applicable to the RMB had been issued but are not mandatory for the financial year ending 31 October 2013. The RMB has not early adopted these standards.

Standard / Interpretation

Summary Applicable for annual reporting periods beginning on

Impact on RMB financial statements

AASB 9 Financial instruments

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

Beginning 1 Jan 2015 Subject to AASB’s further modifications to AASB 9, together with the anticipated changes resulting from the staged projects on impairments and hedge accounting, details of impacts will be assessed.

AASB 10 Consolidated Financial Statements

This Standard forms the basis for determining which entities should be consolidated into an entity’s financial statements. AASB 10 defines ‘control’ as requiring exposure or rights to variable returns and the ability to affect those returns through power over an investee, which may broaden the concept of control for public sector entities. The AASB has issued an exposure draft ED 238 Consolidated Financial Statements – Australian Implementation Guidance for Not-for-Profit Entities that explains and illustrates how the principles in the Standard apply from the perspective of not-for-profit entities in the private and public sectors.

1 Jan 2014 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date.

Subject to AASB’s final deliberations on ED 238 and any modifications made to AASB 10 for not-for-profit entities, the entity will need to re-assess the nature of its relationships with other entities, including those that are currently not consolidated.

AASB 11 Joint Arrangements

This Standard deals with the concept of joint control, and sets out a new principles-based approach for determining the type of joint arrangement that exists and the corresponding accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement.

1 Jan 2014 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. Subject to AASB’s final deliberations and any modifications made to AASB 11 for not-for-profit entities, the entity will need to assess the nature of arrangements with other entities in determining whether a joint arrangement exists in light of AASB 11.






AASB 12 Disclosure of Interests in Other Entities

This Standard requires disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB 127 Separate Financial Statements and AASB 131 Interests in Joint Ventures. The exposure draft ED 238 proposes to add some implementation guidance to AASB 12, explaining and illustrating the definition of a ‘structured entity’ from a not-for-profit perspective.


Impacts on the level and nature of the disclosures will be assessed based on the eventual implications arising from AASB 10, AASB 11 and AASB 128 Investments in Associates and Joint Ventures.

AASB 13 Fair Value Measurement

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

1 Jan 2013 Disclosure for fair value measurements using unobservable inputs are relatively detailed compared to disclosure for fair value measurements using observable inputs. Consequently, the Standard may increase the disclosures required for assets measured using depreciated replacement cost.

AASB 119 Employee Benefits

In this revised Standard for defined benefit superannuation plans, there is a change to the methodology in the calculation of superannuation expenses, in particular there is now a change in the split between superannuation interest expense (classified as transactions) and actuarial gains and losses (classified as ‘Other economic flows – other movements in equity’) reported on the comprehensive operating statement.


While the total superannuation expense is unchanged, the revised methodology is expected to have a negative impact on the net result from transactions of the general government sector and for those few Victorian public sector entities that report superannuation defined benefit plans.

AASB 127 Separate Financial Statements

This revised Standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.

1 Jan 2014 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. The AASB is assessing the applicability of principles in AASB 127 in a not-for-profit context.

As such, impact will be assessed after the AASB’s deliberation.

Note 1 Summary of Significant Accounting Policies (continued)


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AASB 1053 Application of Tiers of Australian Accounting Standards

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

1 July 2013 The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) for certain public sector entities and has not decided if RDRs will be implemented in the Victorian public sector.

AASB 1055 Budgetary Reporting

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

1 Jan 2014 This Standard is not applicable as no budget disclosure is required.

Note 1 Summary of Significant Accounting Policies (continued)


Note 2: Expenses from transactions

2013$‘000

2012$‘000

(a) Employee expenses:

Superannuation expense 275 251

Salaries and wages 3,457 3,184

Other employee benefits 56 51

Total employee expenses 3,788 3,486

(b) Finance costs:

Interest expense 124 139

Total finance costs 124 139

(c) Depreciation:

Buildings 515 479

Infrastructure Assets 797 739

Leased Assets 10 2

Plant & Equipment 322 282

Total depreciation 1,644 1,502

(d) Other:

Bad and doubtful debts from transactions – 82


Note 3: Other economic flows included in net result

2013$‘000

2012$‘000

Net gain/(loss) on non-financial assets

Gain on sale of assets 53 4

Loss on write-off of assets (143) (138)

Net gain/(loss) on disposal of physical assets (90) (134)

Note 4: Receivables

2013$‘000

2012$‘000

Current

Trade Debtors 782 333

Provision for Doubtful Debts – –

782 333

Sundry debtors 122 153

Capital in-goings – 3

904 489

Non-Current

Sundry debtors 132 –

Total Receivables 1,036 489

The carrying value of debtors at 31 October 2013 approximates fair value. A provision of nil (2012: nil) has been made in regard to the possible non-collection of Trade Debtors. Interest is charged on overdue site rentals and utility charges at a rate fixed by Section 2 of the Penalty Interest Rates Act 1983, which, at 31 October 2013 was 10.5% per annum.

(a) Ageing analysis of receivables Please refer to Note 16 for the ageing analysis of receivables.

(b) Nature and extent of risk arising from receivables Please refer to Note 16 for the nature and extent of risks arising from receivables.

Note 5: Inventories

2013$‘000

2012$‘000

Raw Materials 18 23


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Note 6: Infrastructure, Property, Plant and Equipment

2013$‘000

2012$‘000

Land

Land at Fair Value at 2011 – Mount Buller 81,923 81,923

Land under Roads at Fair Value at 2011 – Mount Buller 25,525 25,525

Land at Fair Value at 2011 – Mount Stirling 3,240 3,240

110,688 110,688

Buildings

Buildings at Cost 1,983 1,226

Buildings at Fair Value – at 2011 14,812 14,812

Less Accumulated Depreciation (994) (479)

Closing WDV 15,801 15,559

Infrastructure Assets

Infrastructure Assets at Cost 3,014 1,869

Infrastructure Assets at Fair Value – at 2011 31,987 32,136

Less Accumulated Depreciation (1,529) (739)


Leased Assets

Lease at Cost 140 140

Less Accumulated Depreciation (70) (60)

Closing WDV 70 80

Plant and Equipment

Plant and Equipment at Fair Value 4,085 3,698

Less Accumulated Depreciation (2,501) (2,341)


Art work at Fair Value – at 2008 153 136

Capital Work in Progress 1,797 555

Total Infrastructure, Property, Plant and Equipment 163,565 161,641



Note 6: Infrastructure, Property, Plant and Equipment (continued)

Land

$’000

Buildings

$’000

Infrastructure Assets

$’000

LeasedAssets

$’000

Plant and Equipment

$’000

Art works $’000

CWIP

$’000

Total

$’000

Year ended 31 October 2012

Opening net book value

110,688 14,812 35,645 – 1,301 136 1,226 163,808

Additions – 1,129 1,185 82 382 – 110 2,888

Disposals – – (139) – (44) – – (183)

Depreciation – (479) (739) (2) (282) – – (1,502)

Transfers – 97 684 – – – (781) –

Revaluations – – (3,370) – – – – (3,370)

Closing net book value 110,688 15,559 33,266 80 1,357 136 555 161,641

Year ended 31 October 2013

Opening net book value

110,688 15,559 33,266 80 1,357 136 555 161,641

Additions – 745 1,126 – 570 15 1,275 3,731

Disposals – – (142) – (21) – – (163)

Depreciation – (515) (797) (10) (322) – – (1,644)

Transfers – 12 19 – – 2 (33) –

Revaluations – – – – – – – –

Closing net book value 110,688 15,801 33,472 70 1,584 153 1,797 163,565

Land and buildings carried at fair valueAn independent valuation of the RMB’s land and buildings was performed by Cosgraves Property Advisers 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 arm’s length transaction. Fair value is determined by direct reference to recent market transactions on arm’s length terms for land and buildings of comparable size and location to the RMB. The valuation was based on independent assessments. The effective date of the valuation is 31 October 2011.

Road and infrastructure carried at fair valueAn independent valuation of the RMB’s road and infrastructure was performed by AssetVal. The valuation, which conforms to Australian Valuation Standards, was determined based on depreciated replacement cost of the assets. The effective date of the valuation is 31 October 2011.

Note 7: Other non-financial assets

2013$‘000

2012$‘000

Prepayments (current) 497 414

Intangible Assets 6 –

Total Other non-financial assets 503 414

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Note 8: Payables

2013$‘000

2012$‘000

Accounts payable – current 157 590

Other creditors and accruals – current 1,361 546

Total payables 1,518 1,136

All trade and other creditors are non-interest bearing. The carrying amount of creditors at the end of the reporting period approximates fair value.

(a) Maturity analysis of payables Please refer to Note 16 for the ageing analysis of payables.

(b) Nature and extent of risk arising from payables Please refer to Note 16 for the nature and extent of risks arising from payables.

Note 9: Borrowings

2013$‘000

2012$‘000

Current

Interest bearing loan (i) 262 217

Non-interest bearing loan (ii) 137 130

399 347

Non-Current

Interest bearing loan (i) 418 618

Non-interest bearing loan (ii) 1,388 1,525

1,806 2,143

Total Borrowings 2,205 2,490

(i) An interest bearing loan was taken out with the Treasury Corporation of Victoria in 2007, bearing a fixed interest rate of 6.84%, repayable in quarterly instalments over 10 years. The loan is unsecured. Three interest bearing finance leases bearing an interest rate of 6.9% were entered into in 2012, repayable in monthly instalments over 2 years with a fixed balloon payment at the end of year 2. These finance leases are secured against the related assets.

(ii) Non interest bearing loans relate to the deferred settlement with La Trobe University on the acquisition of Alpine Central. The loan is recorded at its net present value at the date of acquisition. The loan is unsecured.

(a) Maturity analysis of borrowings Please refer to Note 16 for the ageing analysis of borrowings.

(b) Nature and extent of risk arising from borrowings Please refer to Note 16 for the nature and extent of risks arising from interest bearing liabilities.

(c) Defaults and breaches During the current and prior year, there were no defaults and breaches of any of the loans.



Note 10: Employee provisions

2013$‘000

2012$‘000

Current

Annual leave entitlements

Unconditional and expected to settle within 12 months 161 153

Unconditional and expected to settle after 12 months 11 11

Long Service Leave entitlements

Unconditional and expected to settle within 12 months 91 54

Unconditional and expected to settle after 12 months 137 128

Accrued day off (ADO) entitlements 10 11

Staff bonuses 24 54

434 411

Non-Current

Conditional long service leave entitlements 85 55

Total Employee Benefits 519 466

Long service leave entitlements for those employees with 7 or more years’ continuous service are treated as a current liability and recognised at nominal amounts. Long service leave entitlements for those employees with less than 7 years continuous service are treated as a non-current liability and are discounted to present values.

Note 11: Superannuation Employees of the RMB are entitled to receive superannuation benefits and the RMB contributes to both defined benefit and defined contribution plans. The defined benefit plan provides benefits based on years of service and final average salary.

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

However, superannuation contributions paid or payable for the reporting period are included in the Comprehensive Operating Statement of the RMB.

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Note 11: Superannuation (continued)The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by the RMB are as follows:

Scheme: Type Cont’n Range(%)

2013$’000

2012$’000

Emergency Services and State Super Defined Benefit 9.5-12.6 10 11

AGEST Superanuation Accumulation 9-9.25 2 –

AMP Flexible Lifetime Accumulation 9-9.25 – 3

Australian Super Accumulation 9-9.25 38 31

AustSafe Superannuation Accumulation 9-9.25 1 1

Avenue Retirement Service Accumulation 9-9.25 1 1

AXA Superannuation Accumulation 9-9.25 1 –

BAK Super Fund Accumulation 9-9.25 1 1

BeeDee Super Fund Accumulation 9-9.25 1 –

Bendigo Super Easy Superannuation Plan Accumulation 9-9.25 2 2

BT Super Fund Accumulation 9-9.25 1 –

C-Bus Accumulation 9-9.25 14 12

Colonial First State Investment Accumulation 9-9.25 14 22

Colonial First State First Choice Accumulation 9-9.25 1 1

Colonial Super Retirement Fund Accumulation 9-9.25 5 4

Dawson Super Fund Accumulation 9-9.25 1 1

Dolling Family Superannuation Accumulation 9-9.25 – 2

Edward Super Fund Accumulation 9-9.25 1 1

Equipsuper Accumulation 9-9.25 1 –

First Super Accumulation 9-9.25 5 5

FirstWrap Accumulation 9-9.25 5 2

HESTA Accumulation 9-9.25 – 1

Host Plus Superannuation Accumulation 9-9.25 32 26

Health Superannuation Accumulation 9-9.25 4 4

ING Master Fund Accumulation 9-9.25 11 6

Integra Super One Path Accumulation 9-9.25 – 1

Independent Schools Super Fund Accumulation 9-9.25 1 1

IOOF Investment Management Accumulation 9-9.25 3 –

Legal Super Accumulation 9-9.25 – 1

LUCRF Super Accumulation 9-9.25 1 1

MLC Masterkey Superannuation Accumulation 9-9.25 12 10

MLC Navigator Accumulation 9-9.25 10 9

Motor Trades Association Accumulation 9-9.25 1 3

P & D Super Fund Accumulation 9-9.25 – 1

Personal Choice Retirement Plan Accumulation 9-9.25 1 1

Railton-Stewart Super Fund Accumulation 9-9.25 – 1

Recruitment Super Accumulation 9-9.25 6 2

Retail Employees Superannuation Trust Accumulation 9-9.25 9 8

Share Superannuation Accumulation 9-9.25 1 –

Sunsuper Superannuation Fund Accumulation 9-9.25 24 18

Tasplan Accumulation 9-9.25 5 6

Tibmin Superannuation Accumulation 9-9.25 1 1

Tower Australia Ltd Accumulation 9-9.25 1 1

Vic Super Accumulation 9-9.25 54 49

Vision Superannuation Accumulation 9-9.25 8 8

Total contributions for the period were $289,837 (2012: $258,653) and there was $28,267 outstanding as at 31 October 2013 which is listed in Trade Creditors.



Note 12: Other liabilities

2013$‘000

2012$‘000

Deferred revenue – current 153 212

Note 13: LeasesCrown landCrown Land is recorded in the accounts of the RMB at the Cosgraves Property Advisers valuation. The RMB has brought to account the rental revenue in relation to the leased sites and does not account for depreciation since the class of assets is defined as land. The RMB, acting as a Committee of Management under Section 38 of the Alpine Resorts (Management) Act 1997, manages 176 Crown lease arrangements with site holders. The lease arrangements cover lease periods up to ninety-nine years.

Gas networkThe right to operate the LP Gas system was licensed to Indigo Shire Council. The RMB has retained the majority of the infrastructure assets associated with the delivery of gas to the site holders on the mountain. In 2013 the RMB has extended the lease to use these assets to Indigo Shire Council for ten years and will receive 3% of Gross revenue from the sale of gas during the period of the lease. The lease contains provisions for further ten year options. All assets remain the property of the RMB at the conclusion of the lease period.

2013$‘000

2012$‘000

Non–cancellable operating lease receivables

Not longer than 1 year 3,824 3,851

Longer than 1 year and not longer than 5 years 11,768 13,309

Longer than 5 years 78,679 78,231

94,271 95,391

Note 14: Commitments for expenditureThe following commitments have not been recognised as liabilities in the financial statements:

2013$‘000

2012$‘000

(a) Capital expenditure commitments

Property, plant and equipment (a)

Within one year 378 -

Later than one year but not later than 5 years 1,736 1,736

Longer than 5 years - -

Total capital expenditure commitments 2,114 1,736

(b) Operating expenditure commitments

Other operating commitments (b)

Within one year 2,160 2,057

Later than one year but not later than 5 years 5,275 4,456

Longer than 5 years 268 1,023

Total operating expenditure commitments 7,703 7,536

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Note 14: Commitments for expenditure (continued) (a) The RMB has been allocated a grant of $1.55 million (excl GST) from the Victorian Department of Transport to assist in funding the Buller/Stirling Touring Link road project. The funding is conditional upon receiving other grant funds to render the project fully financed. The project involves the construction of a link road between Mount Buller and Mount Stirling which will provide an additional emergency access road should the existing Mount Buller road be closed temporarily for any reason.

$186,363 of the allocated funding has been received as at 31 October 2013. Preliminary design work and other tasks undertaken in connection with the development of a planning permit application have been completed. The Board has committed its own funds (via the Capital Improvement Fund – refer note 17) to the project, and lobbies the Federal Government for an allocation of funds when opportunities become available.

The project is anticipated to cost approximately $5 million.

A contract has been executed with GHD for preliminary work for the Water Sustainability Security Project. This contract will be completed in 2013–14 with $377,767 + GST of the contract remaining.

(b) In regards to future operating commitments, the RMB has the following:

— An annual commitment to Buller Ski Lifts Pty Ltd for snow making. $221,484 + GST was paid in 2012–13. The dollar value of this commitment for 2013–14 is approximately $227,021 + GST.

— A commitment exists to sponsor the annual Victorian Inter-Schools Skiing Competition for $45,000 per annum plus CPI. A new agreement was made on 1 January 2013 for 5 years with an option for a 5 year extension.

— A commitment to the Regional Tourism Board for $43,146 for marketing and product development of North East regional Victoria.

— A commitment to the Alpine Resorts Coordinating Council (ARCC) for $415,548 per annum, as directed by the Minister.

— A commitment to Mansfield-Mt Buller Regional Tourism Association Ltd (trading as High Country Reservations) for the provision of tourist information services based in Mansfield and the provision of visitor information during the winter season based on Mt Buller. An amount of $72,947 + GST has been committed for the Mansfield-based visitor information services for 2013–14 and $25,000 + GST for the Mt Buller based information services.

— A garbage collection contract was entered into on 1 June 2005 and the base cost of the contract is $375,000+GST per annum. The RMB have agreed with the contractor to extend the contract until 2018.

— An agreement has been entered into with DSE for the ‘Burramys Recovery Plan’. This commitment involves the expenditure of $1.163 million over five years starting in the 2005–06 financial year. This plan is currently under review for 2010-15. The amount of $65,000 has been committed for the 2013–14 financial year.

— A cleaning contract was entered into on 12 April 2010 and the base cost of the contract is $122,727 per annum. The cleaning contract is for one year and subject to annual performance reviews. The contract term has been extended for a further three one year periods and expires on 11th April 2014.

— The Mansfield Medical Clinic Pty Ltd and Churchill Drive Pty Ltd has been issued with a license to operate the Mt Buller Medical Centre over 3 snow seasons, commencing in 2012. A service fee is paid by the RMB to MMC of $171,000 per annum, indexed according to annual CPI.

— A new transport agreement was entered into for five years starting on the first day of the 2010 declared snow season. The base cost of the contract is $454,135 per annum with the RMB having the further option to add five one year extensions. The 2013–14 commitment approximates $545,989.

— A new contract with Octagon Australia and the Mansfield Shire Council to conduct one Targa High Country event each year from 2013 to 2017. The RMB commits $30,000 in sponsorship each year made up of $20,000 cash plus up to $10,000 of agreed in kind support, indexed according to annual CPI.



Note 15: Contingent assets and liabilitiesThere are 5 claims that have been made against the RMB by visitors. The claims are currently being investigated by insurance assessors. The RMB has accounted for $77,543 of costs incurred in investigating these claims by our insurer. Should there ultimately prove to be any substance to each claim the liability to the RMB would be limited to the $25,000 insurance excess per claim.

Note 16: Financial instruments(a) Significant accounting policies

The RMB’s principal financial instruments comprise of:

— cash assets;

— term deposits;

— receivables;

— payables; and

— borrowings.

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

The carrying amounts of the RMB’s financial assets and financial liabilities by category are in the table below.

Note Category Carrying amount

2013$‘000

Carrying amount

2012$‘000

Financial assets

Cash and deposits 17(a) N/A 5,809 7,908

Receivables 4 Loans and receivable (at amortised cost)

1,036 489

Total financial assets

Financial liabilities

Payables 8 Financial liabilities measured at amortised cost

1,518 1,136

Interest bearing liabilities 9 Financial liabilities measured at amortised cost

680 835

Non-interest bearing loans 9 Financial liabilities measured at amortised cost

1,525 1,655

Total financial liabilities 3,723 3,626

(b) Credit risk

Credit risk arises from the financial assets of the RMB, which comprise cash and deposits, trade and other receivables. The RMB’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the RMB. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with the RMB’s financial assets is minimal because the majority of debtors arise under lease arrangements and default of payment would constitute a breach of the contractual lease agreement which could result in termination of the lease.

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6,845 8,397


Note 16: Financial instruments (continued)(b) Credit risk (continued)

The RMB does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest for the term of the deposit.

Provision of impairment for financial assets is recognised when there is objective evidence that the RMB will not be able to collect a receivable. Objective evidence includes previous experience, financial difficulties of the debtor, default payments and debts which are more than 60 days overdue.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the RMB’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

While arrangements have been made with certain debtors for commercial reasons, 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 the carrying amounts as indicated.

The following table discloses the ageing only of financial assets that are past due but not impaired:

($ thousand)

Receivables Weighted average effective

interest rate%

Carrying amount

Interest rate exposure Not past due and not

impaired

Past due but not impaired Impaired financial

assetsFixed

interest rate

Variable interest

rate

Non-interest bearing

Less than 1 month

1–3 months

3 months – 1 year

Greater than

1 year

2013 6.62 1,036 493 – 543 896 – 17 123 – –

2012 3.96 489 132 – 357 364 – 34 91 – –

(c) Liquidity risk

Liquidity risk is the risk that the RMB would be unable to meet its financial obligations as and when they fall due. The RMB operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution.

The RMB’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. The RMB manages its liquidity risk by:

— close monitoring of its short-term and long-term borrowings by senior management, including monthly reviews on current and future borrowing levels and requirements;

— maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short term obligations;

— holding investments and other contractual financial assets that are readily tradeable in the financial markets;

— careful maturity planning of its financial obligations based on forecasts of future cash flows; and

— a high credit rating for the State of Victoria (Moody’s Investor Services & Standard & Poor’s triple-A), which assists in accessing debt market at a lower interest rate.

The RMB’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.



Note 16: Financial instruments (continued)(c) Liquidity risk (continued)

The following table discloses the contractual maturity analysis for the RMB’s contractual financial liabilities.

(d) Market risk

The RMB’s exposure to market risk is primarily through interest rate risk which might arise primarily through the Board’s interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments.

The RMB’s exposure to interest rate risk is set out in the following table:

($ thousand)

2013

Interest rate risk

– 2% + 2%

Carrying amount Net result Equity Net result Equity

Financial assets:

Cash and cash equivalents 5,809 (116) (116) 116 116

Receivables 1,036 (10) (10) 10 10

Financial liabilities:

Payables 1,518 – – – –

Borrowings 2,205 – – – –

Total increase/(decrease) (126) (126) 126 126

Note 17: Cash flow information(a) Reconciliation of cash and cash equivalents

2013$‘000

2012$‘000

Cash at bank and on hand 698 996

Deposits on call 5,111 6,912

Balance as per cash flow statement 5,809 7,908

($ thousand)

2013

Weighted average effective interest

rate%

Carrying amount

Interest rate exposure Nominal amount

Maturity Dates

Fixed interest

rate

Variable interest

rate

Non-interest bearing

Less than 1 month

1–3 months

3 months – 1 year

1–5 years

More than 5 years

Payables – 1,518 – – 1,518 1,518 – 1,518 – – –

Borrowings 5.69 2,205 2,205 – – 2,205 – 48 351 1,041 765

3,737 2,205 – 1,532 3,737 – 1,580 351 1,041 765

2012

Payables – 1,136 – – 1,136 1,136 – 1,133 3 – –

Borrowings 5.74 2,490 2,490 – – 2,490 – 42 306 1,210 932

3,626 2,490 – 1,136 3,626 – 1,175 309 1,210 932

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Note 17: Cash flow information (continued)(a) Reconciliation of cash and cash equivalents (continued)

The RMB does not have access to a bank overdraft as at 31 October 2013. The weighted average interest rate applicable to cash at bank and on hand is 1.77%. The deposits on call are interest bearing floating rates between 2.45% and 2.57%, with an average maturity of 8 days.

Included in these cash balances are amounts set aside for use as the RMB’s Snow Drought Fund of $600,000 (2012: $600,000), Debt Repayment Fund of $1,000,000 (2012: $1,000,000) and Capital Improvement Fund of $1,200,000 (2012: $1,200,000). These funds have been established to comply with the Minister of Environment and Climate Change’s Alpine Reform Package program, the aim of which was to improve financial governance and thus the financial sustainability of the Alpine Resort Management Boards.

The Snow Drought Fund may be drawn upon with Ministerial approval in the event of a poor snow season which leads to a liquidity shortage as a result of a reduction in visitor related revenue.

The Debt Repayment Fund will be drawn upon to repay outstanding debt when required, in times of low cash resources and/or financial hardship.

The purpose of the Capital Improvement Fund is to provide a pool of internally generated funds to finance asset replacement and capital works expenditure.

(b) Reconciliation of net result for the period to net cash flows from operating activities

2013$‘000

2012$‘000

From Operating Activities to Operating Profit

Operating Profit/(Loss) for the period 270 81

Non-cash movements:

Depreciation 1,644 1,502

Asset Received at Fair Value (315) –

Movements included in investing and financing activities:

Net (Profit)/Loss on Sale of Fixed Assets 90 134

Movements in assets and liabilities:

Decrease/(Increase) in Trade and Other Debtors (547) (46)

Decrease/(Increase) in Inventories 5 2

Decrease/(Increase) in Other Current Assets (83) 15

Decrease/(Increase) in Other Non-Current Assets – 3

Increase/(Decrease) in Trade and Other Creditors Relating to Operating Activities

(435) 443

Increase/(Decrease) in Current Provisions 23 62

Increase/(Decrease) in Non-Current Provisions 30 (25)

Increase/(Decrease) in Unearned Revenue (59) (8)

Net cash flows from/(used in) operating activities 623 2,163



Note 18: Asset revaluation reserve

2013$‘000

2012$‘000

Balance at beginning of the financial year 22,593 25,963

Revaluation of land, buildings and infrastructure – (3,370)

Balance at the end of the financial year 22,593 22,593

Note 19: Responsible personsa) Board meetings

The following table records the attendance of members at board meetings between 1 November 2012 and 31 October 2013:

Board MembersTotal Meetings while in office

Meetings Attended

Jennifer Hutchison (Chairman) 10 10

Dean Belle (Deputy Chairman) 10 10

Richard Brooks 5 5

Dr Kate Brooks 10 7

Leanne (Lea) Corbett 3 3

Andrew Evans 5 4

Elaine Farrelly 2 2

John Lithgow 5 5

Bryce Moore 10 10

b) Responsible persons

The names of persons who were responsible persons at any time during the financial year were:

— Ryan Smith MLA, (Minister for Environment and Climate Change)

— Jennifer Hutchison, (Chairman of RMB)

— Dean Belle, (Deputy Chairman of RMB)

— Richard Brooks, (RMB Member)

— Dr Kate Brooks, (RMB Member)

— Lea Corbett, (RMB Member)

— Andrew Evans, (RMB Member)

— Elaine Farrelly, (RMB Member)

— John Lithgow, (RMB Member)

— Bryce Moore, (RMB Member)

— John Huber, (Chief Executive Officer)

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Note 19: Responsible persons (continued)b) Responsible persons(continued)

Remuneration of Responsible PersonsRemuneration received, or due and receivable from the RMB in connection with the management of the RMB for the financial period ended 31 October 2013 was $289,443 (2012: $295,919). The number of responsible persons whose remuneration from the RMB was within the specified bands is as follows:

$000’s 2013 2012

1–10 8 6

11–20 1 1

180–190 – –

231–240 1 1

The relevant Minister’s remuneration is reported separately in the financial statements of the Department of Premier and Cabinet.

Retirement Benefits of Responsible PersonsThere were no retirement benefits paid by the RMB in conjunction with the retirement of Responsible Persons of the RMB during the financial year.

LoansAs at 31 October 2013 there were no loans in existence that have been made, guaranteed or secured by the Board to a Responsible Person of the RMB or a related party of a Responsible Person.

SharesThere were no interests in the shares of related entities held by Responsible Persons of the RMB during the financial period ended 31 October 2013.

Related party transactionsJennifer Hutchison is a member of the Alpine Resorts Coordinating Council (ARCC).

Dean Belle is a Board member of the Mansfield-Mount Buller Regional Tourism Association (MMBRTA).

Richard Brooks is a member of the Ski Club of Victoria.

Dr Kate Brooks has no related interests in the operations of the RMB.

Lea Corbett is engaged by the ARCC to consult Lake Mountain and Mt Baw Baw Independent Task Group Stage 2.

Andrew Evans is a member of the Alkira Ski Cub Inc, an organisation which is a leaseholder on Mount Buller.

Elaine Farrelly has no related interests in the operations of the RMB.

John Lithgow is a Board member of the Mansfield Mt Buller Cycling Club.

Bryce Moore is a shareholder in the Merrijig Ski Club Co-operative Ltd and a member of the Merrijig Ski Club, an organisation which is a leaseholder on Mount Buller. Mr Moore is also a member of the Ski Club of Victoria.

John Huber is Chairman of the Board of the Mansfield-Mount Buller Regional Tourism Association Ltd (MMBRTA), on the Board of Alpine Regional Tourism (BART), the North East Victoria Tourism Board (NEVT) and the Alpine Resort Coordination Council (ARCC) Co-operation Committee. Mr Huber is a member of the Hume Regional Management Forum Committee. Mr Huber is also a director of the Mount Buller Arts Association. Mr Huber received no direct remuneration from these positions.



Note 19: Responsible persons (continued)The following additional transactions have been entered into with related party entities:

2013$‘000

2012$‘000

Ski Club of Victoria

Revenue received (1) 73 66

Merrijig Ski Club

Revenue received (1) 24 25

Mansfield Mount Buller Regional Tourism Association

Revenue received 5 11

Other services paid (138) (123)

Alpine Resorts Coordinating Council

Contributions paid (266) (263)

Alkira Ski Club

Revenue received (1) 31 –

Taungurung Clans Aboriginal Corporation

Other Services Paid (2) – (9)

(1) Revenue received includes site rents which are levied in accordance with the site lease contract and service charges using a formula that is equally applied to all sites, and payments for advertising in RMB collateral and the website as well as car park season passes.

(2) Entities are not related parties of the RMB in 2012–13.

Note 20: Remuneration of executivesThe number of executive officers, other than responsible persons, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, allowances, vehicles, redundancy payments and retirement benefits. The total annualised equivalent provides a measure of full time equivalent executive officers over the reporting period.

Several factors have affected total remuneration payable to executives over the year. A number of employment contracts were completed and renegotiated during the year and a number of executives received bonus payments during the year. These bonus payments depend on the terms of the individual employment contracts.

Also the cessation of employment by executives result in payments of annual leave also included in total remuneration.

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Note 20: Remuneration of executives (continued)The number of executive officers whose remuneration falls with in the specified bands above $100,000 is as follows:

Income band Total Remuneration Base Remuneration

$000’s 2013 2012 2013 2012

No. No. No. No.

101 – 110 – – 2 1

111 – 120 – 1 1 –

121 – 130 4 1 1 1

131 – 140 – – – 1

141 – 150 1 – – –

151 – 160 – 1 – –

161 – 170 1 – – –

181 – 190 – 1 – –

241 – 250 – – – –

Total number of executives 6 4 4 3

Total annualised employment equivalents (AAE) 1

5.51 5.49 5.51 5.49

Total Amount2 $815,941 $822,729 $597,289 $656,631

1 Annualised employee equivalent is based on working 38 hours per week over the reporting period.

2 Represents the total amount paid or payable to all executive officers, including those below the $100,000 remuneration level and therefore not included in the banding table above.

Note 21: Auditor’s Remuneration

2013$‘000

2012$‘000

Audit Services

Victorian Auditor-General 20 21

Note 22: Subsequent eventsNo matters or circumstances have arisen since the end of the reporting period which may significantly affect the operations of the RMB, the result of those operations, and the state of affairs of the RMB in future financial years.



Note 23: Consultants Engaged In 2012–13, the RMB engaged 25 Consultancies where the total fees payable to consultants were $701,550 (2012: $405,156). There were 13 consultancies that were less than $10,000 totalling $59,399.

The following table lists the consultants engaged in 2012–13 where total remuneration was $10,000 or above.

($ ‘000)

Consultant Purpose of consultancy

Total approved project fee

ex GST

Expenditure 2012–13

ex GST

Future committed expenditure

Ex GST

Biosis Research Environmental Consultancy & Analysis $94 $94 Nil

Cox Architecture Pty Ltd Architecture Design & Consulting $122 $122 Nil

Feehan Consulting Pty Ltd Water Project Consultancy $15 $15 Nil

GHD Pty Ltd Sustainable Water Security Consultancy $512 $134 $378

Inspiring Place Pty Ltd Strategic Management Design & Consultation

$21 $21 Nil

Interlandi Mantesso Pty Ltd Design & Manage Day Visitor Upgrade $105 $105 Nil

Jenham Solutions Pty Ltd Resort Operations Consulting & Reports $27 $27 Nil

Keaney Planning Planning Scheme Amendments $22 $22 Nil

Russell Kennedy Pty Ltd Legal Services $43 $43 Nil

Smec Australia Pty Ltd Consulting Services $19 $19 Nil

Watergroup Pty Ltd Project Management Water Meters $23 $23 Nil

Yabbie Pond Pty Ltd Water Quality Management Plan $18 $18 Nil

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Disclosure Index

Legislation Requirement Page ref.

Accountable Officer’s declarationSD 4.2(j) Sign off requirements 1 & 3

Charter and purposeFRD 22D Objectives, functions, powers and duties 4

FRD 22D Manner of establishment and responsible Minister 4

FRD 22D Nature and range of services provided 12-14

Financial informationFRD 22D Operational and budgetary objectives 5

FRD 22D Summary of the financial results 5

FRD 22D Major changes or factors affecting performance 25

FRD 22D Subsequent events 25

FRD 22D Significant changes in financial position during the year 25

Governance and organisational structure FRD 22D & SD2.2(f) Organisational structure 11

FRD 22D Occupational health and safety policy 23

FRD 22D Employment and conduct principles 22

FRD 29 & 22D Workforce Data disclosures 23

FRD 15B Executive officer disclosures

Other informationFRD 10 Disclosure index IBC

FRD 25 & 22D Victorian Industry Participation Policy disclosures 26

FRD 22C Details of consultancies in excess of $10 000 25

FRD 22C Details of consultancies under $10 000 25

FRD 22D Disclosure of government advertising expenditure No disclosure

FRD 12A Disclosure of major contracts 25

FRD 22D Application and operation of Freedom of Information Act 1982 25

FRD 22D Compliance with Building Act 1993 14

FRD 22D Statement on National Competition Policy 26

FRD 22D Application and operation of Protected Disclosures Act 2012 27

FRD 24C Reporting of office-based environmental impacts N/A

FRD 22D Statement of availability of other information 27

SD 4.5.5 Risk management compliance attestation 26

SD 4.5.5.1 Insurance attestation 26

PC 2012/02 Gifts, benefits and hospitality attestation No disclosure

SD 4.2(g) General information requirements Entire document

LegislationAlpine Resorts (Management) Act 1994 4Building Act 1993 14Financial Management Act 1994 28Freedom of Information Act 1982 25Protected Disclosures Act 2012 27Victorian Industry Participation Policy Act 2003 26

Print and designFRD 30 Standard requirements for the design and print of annual reports Entire Document

AcronymsFRD – Financial Reporting DirectionSD – Standing DirectionPC – Premier’s Circular

© State of Victoria, Mount Buller & Mount Stirling Alpine Resort Management Board 2014. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

Mount Buller & Mount Stirling Alpine Resort Management Board ABN 44 867 982 534Alpine Central, Mount Buller Victoria 3723Telephone: 03 5777 6077 Facsimile: 03 5777 6219 Email: [email protected]

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