2013 - 2014 - parliament of victoria · sports venues 11 ... as outlined in the trust business plan...

ANNUAL REPORT2013 - 2014

Contents

CHAIRMAN’S REPORT 05

DECLARATION & ATTESTATION 07

OUR ORGANISATION 08 Organisational Structure 10

SPORTS VENUES 11

MEMBERSHIP & BUSINESS DEVELOPMENT 15

OBJECTIVES & PERFORMANCE AGAINST OBJECTIVES 17

CORPORATE SERVICES 18 5 Year Performance 18

Organisational Development 20

Information Technology 22

LEGISLATIVE & GOVERNANCE POLICY COMPLIANCE 23

FINANCIAL OVERVIEW AND DISCLOSURE 25

DISCLOSURE INDEX 26

PROTECTED DISCLOSURES 28

STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 5

SSCT CHAIRMAN’S ANNUAL REPORTSince the mid 1990’s the State Government has invested in

excess of $250 million of capital funds into the facilities of

the SSCT Trust to deliver on the Governments objectives of:

• Major Events – building and maintaining Victoria’s capacity to attract and retain major events

• Representative Teams – supporting state level and professional sporting teams competing in national and international competitions

• Peak of the Pathway / Elite Athletes – supporting athletic development via the provision of quality high performance and pathway facilities

• Support to the Sports System – providing access to appropriate facilities that support the management and administration of sport.

• Participation – attracting a broad user base to support financial sustainability

In order to deliver on the above objectives, the Trust managed

a capital budget of $6.6 million across the Trusts facilities of

Melbourne Sports and Aquatic Centre (MSAC), State Netball

Hockey Centre (SNHC), Lakeside Stadium and MSAC Institute

of Sport (MiT). These major works were managed with a

minimum downtime for business and were managed within

the budget allocated.

The asset management operations and maintenance of

the Trust’s suite of world class facilities is the cornerstone

of the Trusts ongoing ability in delivering the Governments

key objectives.

In relation to the key objectives the following was achieved

in the 2013-2014 financial year:

1. MAJOR EVENTS The SSCT’s suite of facilities hosted 369 sporting events

over the 2013-2014 financial year, including 156 aquatic events, 72

stadium events and 141 athletic and soccer events.

Some of the major events that the Trust hosted during

the year included:

FISAF (Federation of International Sports Aerobics and Fitness)

• AFBJJ (Australian Federation of Brazilian Jujitsu)

• Australian Athletics Championships

• Australian Little Athletics Championships

• Athletics Australia IAAF Melbourne World Challenge

• Diving Australia World Cup and Commonwealth Games Trials

• Diving Australia Age Championships

2. REPRESENTATIVE TEAMSNotable athletes who utilised the venue for training during

the year include:

Melbourne VIC Centre

Mack Horton 20th Commonwealth Games Glasgow 400m – 1500m

Kotuku Ngawati – 20th Commonwealth Games Glasgow 200m

Squash

Sarah Cardwell 20th Commonwealth Games Glasgow Team

Netball

2014 Australian Squad: Karen Bailey, Tegan Caldwell,

Bianca Chatfield, Madi Robinson, Liz Watson

2014 Commonwealth Games Team: Tegan Caldwell,

Bianca Chatfield, Madi Robinson

Athletics

Alex Rowe 800m 2013 IAAF World Championships – Moscow, Russia

2014 Commonwealth Games – Glasgow, Scotland

Josh Ross

200m & 4x100m 2013 IAAF World Championships – Moscow, Russia

Kelly Hetherington

800m 2013 IAAF World Championships – Moscow, Russia

Damien Birkinhead Shot Put 2014 Commonwealth Games – Glasgow, Scotland

Brooke Stratton Long Jump 2014 Commonwealth Games – Glasgow, Scotland

Jeff Riseley 800m & 1500m 2014 Commonwealth Games – Glasgow, Scotland

Luke Cann Javelin Throw 2014 Commonwealth Games – Glasgow, Scotland

Chairman’s Report

STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 76

aSIGNATURE

ACCOUNTABLE OFFICER’S DECLARATIONIn accordance with Financial Management Act 1994,

I am pleased to present the State Sport Centres Trust

Annual Report for the year ending 30 June 2014.

Mr. Simon Weatherill CEO

28 August 2014

ATTESTATION ON COMPLIANCE WITH THE AUSTRALIAN/NEW ZEALAND RISK MANAGEMENT STANDARDI, Simon Weatherill certify that the State Sport Centres Trust

has risk management processes in place consistent with the

Australian/New Zealand Risk Management Standard.

An internal control system is in place that enables the executive

to understand, manage and satisfactorily control risk exposures.

The Audit and Risk committee verifies this assurance and

that the risk profile of the State Sport Centres Trust has been

critically reviewed within the last 12 months.


28 August 2014

Declaration & Attestation

ATTESTATION FOR COMPLIANCE WITH THE MINISTERIAL STANDING DIRECTION 4.5.5.1 - INSURANCEI, Simon Weatherill certify that the State Sport Centres Trust

has complied with Ministerial Direction 4.5.5.1 – Insurance.


28 August 2014

Richard Colman 400m, 800m & 1500m (T53) 2013 IPC Athletics World

Championships - Lyon, France

2014 Commonwealth Games – Glasgow, Scotland

Kelly Cartwright 100m & Long Jump (F42) 2013 IPC Athletics World

Championships – Lyon, France

3. SUPPORTING THE SPORTING SYSTEMAs outlined in the Trust Business Plan 2013-2014, SSCT provides

direct and indirect support to the sporting associations through

rental rates, revenue sharing and in-kind support. The quantum

of support for the 2013-2014 financial year was approximately

$2 million in cash, rent and in-kind support for sport tenancies

and broad based community sport. In addition to this, SSCT

provided training at no cost for 10 Victorian Institute of Sport

(VIS) approved sports.

The Melbourne Sports Hub consisting of MSAC, SNHC,

Lakeside Stadium and MiT has provided excellent support

to our 32 tenants and stakeholders during the year.

4. OFFERING PEAK PATHWAYS FOR DEVELOPMENT

The Melbourne Sports Hub is home to the VIS sports of

Badminton, Diving, Hockey, Netball, Squash, Swimming,

Synchronised Swimming, Table Tennis, Water Polo and

Basketball. In addition to this it houses 12 state sports

associations, 5 national associations and 10 VIS sports

tenants. This unique structure allows the centre management

team to work with the associations and the clubs to assist

in the athlete’s development.

5. PARTICIPATION TO SUPPORT FINANCIAL SUSTAINABILITY

Visitations to the Sports Hub continue to grow with 2.245 million

patrons visiting MSAC, 529,737 patrons at SNHC and 104,974

patrons at Lakeside Stadium. Lakeside Stadium been particularly

impressive with 141 sporting events for the year, with over 100

athletic events at the stadium. This has only been made possible

by housing the major athletic bodies together at Athletics House.

Total visitation for the year was 2.879 million patron making the

Melbourne Sports Hub one of the busiest multi-purpose venues

in the country. In addition to the large number of events and

visitations to the Trusts sporting facilities, MSAC Swim School

attracted 12,889 visits and children’s programs 54,988 visits.

There are currently 12,130 Melbourne Sports Hub members that

exercise regularly at MSAC.

The SSCT finances continue to be well managed with

the operating budget being managed $617,831 better than

budget. The development of the 2014-2017 Strategic Plan

during the year will cement Melbourne Sports Hub as a hub

of world class facilities that brings real value to our growing

sporting and local community.

During the year, the 8th International School of Sports

Management was held. This course has seen over 150 delegates

from all around the world attend and listen to the specialist

expertise developed by the Trust on establishing and managing

Greenfields sports sites. Due to the demand by the industry

for advice and information from key SSCT personnel, MiT is

currently expanding its consultancy service to the industry.

Finally, I wish to acknowledge the skill and teamwork of the

Executive Management Group, Chief Executive Officer, Simon

Weatherill, my fellow Trust members, Brett Moore, Andrew

Fried, Nicole Livingstone, Danni Roche, Leigh Russell and Gaye

Hamilton, The former Minister for Sport Mr Hugh Delahunty and

the current Minister for Sport Mr Damian Drum for his support,

assistance and guidance to enable the Trust to deliver first class

sporting facilities to the Victorian public.

Mr. Michael Taylor AO Chairperson

Chairman’s Report


RANGE OF SERVICES PROVIDED The Act outlines the range of services to be provided as

sporting, educational, recreational, social and entertainment.

THE STATE SPORT CENTRES TRUST VISION, PURPOSE AND VALUES ARE: Our Vision:

To develop an innovative sports hub for the Victorian

and Australian community that provides a diverse range

of programs and events for international, national and state

sporting groups as well as serving the Melbourne sporting

and recreational community.

Our Purpose:

All of our programs, services and staff will embody

a ‘Champions in Life’ philosophy which will offer our

participants the opportunity to:

• Develop skills for life

• Be the best they can be

• Develop healthy habits

• Develop social networks

Our ‘raison d’être’ is developing people through sport,

recreation and educational activities.

Our Values:

• Integrity: Behaving in a clear and consistent manner to Do the Right Thing.

• Teamwork: Share. Understand. Succeed. Grow. Together.

• Passion: Approach everything with Energy, Commitment and Enthusiasm to Make a Difference.

Our Commitment:

Our staff commitment is to be able to assist anyone at anytime

and help them with their development needs.

ESTABLISHMENT The Melbourne Sports and Aquatic Centre is a statutory

authority established pursuant to the Melbourne Sports

and Aquatic Centre Act 1994. The Centre opened for

business on 27 July 1997.

On 22 December 1999 the Melbourne Sports and Aquatic Centre

Act 1994 was amended by the Melbourne Sports and Aquatic

Centre (Amendment) Act 1999. As outlined in section 1 of the

Act, the main purpose of this Amendment was to:

a) Rename the Melbourne Sports and Aquatic Centre Trust

as the State Sport Centres Trust; and

b) Extend the powers of the Trust to enable it to manage the

State Netball Hockey Centre and other sports, recreation

and entertainment facilities and services.

As outlined in sections 14 and 15 of the Amendment, the

Melbourne Sports and Aquatic Centre and the State Netball

Hockey Centre are to be managed as independent Strategic

Business Units, each producing a Business Plan and having

separate and individual Financial Operation and Accounts.

It is the Government and Trusts policy that the Centres will

not receive any cross subsidies for operation.

The State Netball Hockey Centre opened for business on 29

January 2001 and was officially opened by the Premier of

Victoria, the Honourable Steve Bracks on 16 March 2001.

On 10 October 2004, the State Sport Centres Act was amended

by the State Sport Centres (Amendment) Act 2004. As outlined in

section 1 of the Act, the main purpose of this amendment was to

“include additional land in the land at the Melbourne Sports and

Aquatic Centre and to provide additional management powers in

relation to the Melbourne Sports and Aquatic Centre land”.

Under the Act the relevant Minister is the Honourable Damian

Drum MP, Minister for Sport and Recreation.

On 31 August 2011, State Sport Centres Trust was appointed as

the Committee of Management of the Lakeside Oval Reserve

under Section 14 (2) of the Crown Land (Reserves) Act 1978.

FUNCTIONS The key functions of the State Sport Centres Trust

are as follows:

a) The management, operation and maintenance of the

Melbourne Sports and Aquatic Centre and the State

Netball Hockey Centre;

b) The care, improvement, use and promotion of the

Melbourne Sports and Aquatic Centre and the State

Netball Hockey Centre;

c) The efficient financial management of the Melbourne Sports

and Aquatic Centre and the State Netball Hockey Centre;

d) The care, protection and management of the State Netball

Hockey Centre land, and Melbourne Sports and Aquatic

Centre land, including maintaining the Melbourne Sports

and Aquatic Centre land and the facilities on the land to

a standard that complements Albert Park;

e) Subject to the Act, the planning, development, management,

promotion, operation and use of other sports, recreation and

entertainment facilities and services in Victoria;

f) The development, management, promotion, operation

and use of facilities and services for the parking of vehicles

and other necessary services to be used in conjunction

with any of the facilities or services managed or operated

by the Trust; and

g) To accept appointment and act as a committee

of management of Crown lands.

Our Organisation

STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 11 0

Organisational Structure

MINISTER FOR SPORT AND RECREATION

GENERAL MANAGER MEMBERSHIP MARKETING & COMMUNICATION

VIBEKE STISEN

GENERAL MANAGER SPORTS VENUES

TIM KALKMAN

GENERAL MANAGER CORPORATE SERVICES

DARREN RATTLE

STATE SPORT CENTRES TRUST

Environmental Initiatives

Health & WellnessStadium Operations MSAC / SNHC / LS

Finance

Major Capital Projects

Business DevelopmentAquatics, Aquatic Programs

& Swim SchoolOrganisational Development & MSAC Institute of Training

Sales & Marketing Sponsorship / Licensing

Bookings, Functions / Events IT & Telecom

MSAC Catering OperationsRisk & Contract Management Statutory Compliance

Membership Services / RetailFacilities Maintenance Admin, Contracts & Supply Rights

SNHC & LS Catering Operations

AUDIT AND RISK COMMITTEE

CHIEF EXECUTIVE OFFICER SIMON WEATHERILL

CHIEF OPERATING OFFICER PETER MURPHY

Sports Venues

Total visitations across the three venues of SSCT grew to just

under two million nine hundred thousand during the 2013/14

financial year. See below for the venue breakdown:

• 2,244,885 – MSAC

• 529,737 – SNHC

• 104,974 – LS

Total – 2,879,596

MELBOURNE SPORTS AND AQUATIC CENTRE (MSAC)Aquatics

The aquatic casual market continued to decline, finishing the

year 16% down on budget and 7% down on the previous year,

with the increase in aquatic events, periodic repair work and the

lack of available space being the main reason for this decline.

The aquatic event market performed well, exceeding budget

by 33%, which was a growth of 13% from the previous year’s

actuals. Continued strong utilisation of the facility by schools

and Victorian swimming clubs were the key drivers for this

growth. The MSAC aquatic area also hosted several key

National events which are listed below.

• Diving Australia – Australia World Cup Commonwealth Games Trials

• Diving Australia – Age Championships

• U14 Girls National Water Polo

• U16 Girls National Water Polo

• Swimming Victoria Age Championships

Swim School

The Swim School had a successful year, although falling 8%

short of the set budget, yet managed to finish 9% up on the

previous year due to the maximisation of space and improved

class structures.

Holding strong with enrolment numbers, in a market of growing

competitors, the Swim School delivered aquatic education to

12,889 people in the following groups:

• 2,235 Water Babies

• 6,298 Child Learn to Swim students

• 583 Squad members

• 243 Adult Learn to Swim students

• 470 Private Lessons for students

• 125 People with Disabilities

• 2,935 Schools Learn to Swim students

The final quarter marked a progressive move for the

Swim School, offering direct debit for all swim school lessons.

The biggest impact of direct debit will be evident next year,

stream lining the progression pathways and enrolment

processes. These key movements will keep the Swim School

as an industry leader for aquatic education in Australia.


Children’s Programs

Children’s Programs tracked true to budget for the

2013/14 financial year, finishing 22% or $178K better

than the previous year.

The Children’s programs team delivered a wide range

of Programs and activities for schools and families to engage

children in sport and recreation, promoting the benefits of

a healthy and active lifestyle, during the past year:

• 5,608 children enjoyed a birthday party experience

• 11,462 students participated in our SportsOut and WipeOut schools programs

• 2,441 children attended the PlanetSport school holiday program

• 35,477 enjoyed the fun and excitement of our SplashOut program

• 6,500 FlowRider participants – roughly half were first time users

Stadiums

Overall the Stadium areas had a strong year, exceeding budget by

$176K, this was an improvement of 7% on the previous year’s total.

The stadiums casual market performed well finishing the year

8% ahead of budget and 5% up on the previous year. Improved

usage within Basketball, Badminton and Table Tennis halls were

the main drivers.

Stadium bookings achieved good results finishing the year 14%

in front of budget. This was largely driven by the increased

usage within the Table Tennis and Squash halls.

MSAC Stadium Events finished the year 16% or $94K in

front of budget. This included strong usage from the State

Sporting Associations, as well as several notable events

which are listed below.

• FISAF- Federation of International Sports Aerobics and Fitness

• AFBJJ– Australian Federation of Brazilian Jiu Jitsu – Pan Pacs

• Australian Schools Volleyball Championships

• Australian Corporate Games

• World Cup Cheer and Dance

• RMIT Exams

STATE NETBALL AND HOCKEY CENTRE (SNHC)The SNHC casual market finished the year 7% in front

of budget, increased participation in Hockey and Netball

were the contributing factors.

The events and bookings market performed strongly,

closing the year 39% ahead of budget. This was largely

due to the Harlem Globetrotters events across October

and November. SNHC also hosted several other notable

events which are listed below.

• ANZ Championships Official Pre-Season Summer Shootout

• NBL Matches - Melbourne Tigers

• Victorian Gymnastics Championships

• Highland Dancing Championships

• Hockey Victoria Grand Final Weekend

• Australian School Volleyball Championships

LAKESIDE STADIUM (LS)Lakeside Stadium performed well across all areas.

Casual usage and bookings finished 39% above budget

largely due to casual school hire during the year. Tenancies

were 27% above budget, mainly due to expense recoveries

that we had not budgeted for. Events finished the year 49% or

$166K above budget, this was a further growth of 39% on

last year’s actuals. A number of notable events have been

listed below.

• Australian Little Athletics Championships

• Athletics Australia National Championships (Commonwealth Games Trials)

• Athletics Australia IAAF Melbourne World Challenge

• Lacrosse Victoria Finals

• Little Athletics Victoria Relay Championships

• Melbourne Victory Youth League games & FFV W-League games (broadcast)

• SMFC home and away season games

FACILITIESThe Facilities and Projects business units delivers both Facility

Management and Capital upgrade Improvements to MSAC,

SNHC and LS.

In partnership, SSCT contracts product suppliers and trades

to manage all aspects of the buildings performance including

the following

• Proactive and Reactive Maintenance

• Minor works

• Project Management / Capital Works

• Capital Planning

• Asset Management

• Environmental Management

• Occupational Health and Safety

• Risk Management

Asset Management

Continued audit and assessment of the building condition

and the completion of the reported reactive maintenance

items, were a main focus for the team. Improvement of

underperforming plant equipment and maximisation of

the asset life while minimising down time was the second.

Compliance with BCA, Health Department, RLSSA and other

regulatory bodies has been achieved as part of the regular

cyclical and reactive maintenance of the Venues. Continued

investment into the ongoing venue maintenance ensures that

the venues meet the expectation of the user and operator.

Sports Venues


A total of 94 Asset Lifecycle and 113 Capital Works projects were

delivered during the year.

Environment Management

The Trust in keeping with its published strategic objectives has

maintained its drive to be a leader in environment management

practices through continuous improvement.

At the completion of 2013/14 the Trust are 9 months into the

measurement and verification stage of the Energy Performance

Contract. We are expecting a reduction of 4,642 tons of carbon,

Energy and water savings to the value of $549,938 at the

2011 bench mark. This will be achieved through the following

improvements completed earlier in the 2013/14 financial year.

• Lighting upgrades Including new LED technology and redesign of lighting system controls;

• Heating, ventilation and air conditioning improvements;

• Building management system (BMS) upgrades including Web based unified BMS to overcome BMS communication issues;

• Water management through recycling of pool backwash water;

• Trigeneration plant providing significant reduction in greenhouse gases; and

• Solar photovoltaic cells.

Risk Management

SSCT has a Risk Management Framework, developed within

a position guided by VMIA, OH&S legislation and International

standards. This framework assists the Trust to develop

organisational wide capabilities in risk management, which

ensures consistent, efficient and effective assessment and

management of risk in the achievement of SSCT’s strategic

and business objectives. The following processes have been

implemented in align with the new framework:

• Creation of a FT Risk Manager role to oversee and work with all areas of the business. Helping to manage operational and financial risk;

• Assessment of strategic risks during annual business planning that have been supplemented to the Enterprise Risk Management Framework and management strategies recorded and monitored. This task is vital within the organisation’s increasingly complicated and expanded business activities; and

• Utilisation of risk management software (RiskSense) to record and report risks, hazards and incidents; allowing the organisation to report on the relationships between these factors and apply management strategies that can be monitored and audited to reduce the impact and rate of occurrence. This allows the organisation to manage data effectively to ensure consistency with benchmarks.

ITEM / WORKS TOTAL COMMITTED

Business Operations $80,824

OH&S $670,072

Cost Saving / Revenue Generating $127,169

Disability Action Plan $43,900

Preventative Maintenance / Life Cycle $3,803,769

Life Cycle / Revenue $58,491

Lakeside Stadium $618,084

Escalation Factor $302,450

Total $5,704,759

Capital and asset upgrade Projects

With investment to ensure sustainability of the physical asset

and meeting user requirements, during 2013/14 the amount of

$5.7 Million of Capital projects and asset upgrade works were

committed, this included:

Membership & Business Development

MEMBERSHIPMembership products and services are key components of

Melbourne Sports Hub’s offering and 2013/14 was a year of great

improvement in both our products and services. A large upgrade

to the area included a $75K renovation of the change rooms

and a further $300K upgrade to our gym strength and cardio

equipment, giving our 3,150+ gym members access to state-of-

the-art facilities. The new equipment allowed our gym members

to participate in the global Let’s Move Challenge and saw MSAC

and its members finish 6th in Australia.

Overall, the business has just over 12,000 members – 3,157

Platinum members who enjoy access to our gym, health and

wellness facilities, and 8,973 Flexi members with access to

multi passes, car parking and exclusive offers and discounts.

Melbourne Sports Hub also continues to work closely with

local community groups to offer local residents of all ages

and means access to our facilities, and the opportunity to

become Champions in Life through a healthy lifestyle.

During the year, a total of 2,379 fitness classes were held with

close to 34,000 visitations, while the wellness zone saw close

to 23,000 visitations in its 1,732 classes. The success of the

classes can be accredited to the high level of competency and

engagement by our instructors, and the quality of our facilities.

Financially, the area performed well. The health and wellness

area (including the gym) achieved the highest growth of direct

debit memberships in three years, exceeded new membership

sign-up targets by more than 100 memberships and, as a

result, exceeded its budget target by more than $70,000. Flexi

memberships performed below expectations and as a result,

this membership category is under review to ensure its

success in 2014/15.

TeamMSACMelbourne Sports Hub recognises the importance of the

social aspect of sport participation and is proud to continue

the teamMSAC program. The program is free for all members

to join and assists in allowing members to fully reach their

individual health and fitness goals. teamMSAC provides a wide

range of training session, information nights and opportunities

to participate in major events. In 2013/14, teamMSAC had 8,343

members and of those some 120 competed in major sporting

events with several podium finishes. This is a participation

increase of 18% on the previous year.

These tremendous results from our membership community

continue to demonstrate our commitment to building a vibrant

community of people centred on our Developing Champions

in Life values.

VISITOR SERVICESMelbourne Sports Hub welcomes more than 2.8 million visitors

each year from casual users to members and regular

participants in various sports. The business places great

importance on servicing those visitors with a high level

of professionalism and integrity.

In 2014/15 the business will undertake a major project to further

strengthen the customer service levels across the business.

The work is linked to Melbourne Sports Hub’s Customer Service

Promise, introduced in late 2013/14.

Sports Venues


MARKETING AND COMMUNICATIONSThe marketing & communications team provides support

for Melbourne Sports Hub and all its business units. The key

focus for the business unit in 2013/14 was on the strengthening

of the Melbourne Sports Hub brand across all assets. The work

undertaken included the update of the Hub brand to ensure it

remains contemporary and works across new media. The update

has included a wide range of collateral, hard and soft copy,

and is supported by a new editorial style guide.

In addition to this, a social media strategy was developed

and implemented to ensure our online presence is aligned

to our customer service promise. Work commenced on a new

online platform, set to launch in early 2014/15. It will include a

number of new features and position the business as a leader

in its space, with a much more content rich presence and the

ability to deliver sharable content.

General marketing and communications work included

a wide range of campaigns, collateral and communications

pieces aimed at driving sales and increasing retention rates.

RETAILMelbourne Sports Hub has two retail outlets at MSAC as well

as retail sales through our customer service desks. The MSAC

owned Speedo store continues to provide our aquatic patrons

with a strong range of swim wear from basic to race suits.

During the last half of the 2013/14 financial year,

the sale of merchandise through the customer service

desk was restructured and expanded, and as a result,

sales significantly increased.

The in-house managed MSAC shop closed in March 2014

after a decision was made to instead lease the retail space

out to an external retailer. A new retail tenant has been

confirmed, and the well-known, high quality brand will open

its flagship store at MSAC in September 2014. It will provide

our visitors with a range of sporting wear relevant to most

of the sports played at the facility.

SPONSORSHIP & CORPORATE PARTNERSHIPS The Business Development team maintained

sponsorship relationships during the year and

maximised our opportunities with current partners

for promotion of the Melbourne Sports Hub.

We continued to receive great support from Peters,

Coca Cola and Rip Curl for the FlowRider. They assisted

us not only with sponsorship but great giveaways and

incentives for our community.

Through our partnership with the Melbourne Bike Share

station, MSAC also continued to offer our patrons and the

local community a bike share station. We provided bicycles

for over 3,500 riders throughout the year to commute

around Melbourne or enjoy recreational cycling.

Objectives & Performance Against Objectives

Through the Vision and Mission of the State Sport Centres Trust, the following key objectives were identified in the

2013/14 Business Plan.

BUSINESS OBJECTIVE STATUS / RESULTS VARIATION / EXPLANATION

Increase catering profitability from 15% to 20% AchievedIn-House model at MSAC realized

20% return to SSCT

Achieve staff productivity savings by moving

casual staff to permanent full and part timeAchieved Net salaries under budget by $93K

Obtain government’s approval of the EBA Achieved EBA Approved 12 July 2013

Increase gymnasium membership from 3,300

to 3,534 with a 60% retention rate

3,153 members

55% retention

Change of internal policy to tenant licence

agreement resulted in lower uptake of

membership

Reduce operating deficit at Lakeside Stadium

from $1.1M to $954KAchieved Lakeside Stadium deficit reduced to $557K

Generate an operating surplus at MSAC

Institute of TrainingAchieved MIT operating Surplus of $168K

MSAC Swim School to deliver education to

10,800 students across 7 major program areasAchieved

12,889 students educated across

all areas of Swim School program

MSAC Children’s Programs to deliver programs

and services to over 54,000 childrenAchieved

54,988 children participated in

programs during year

Membership & Business Development


2014 2013 2012 2011 2010

Income 22,370 21,923 21,707 19,458 17,945

Expenses 22,444 20,942 19,237 17,213 16,703

Net Result -74 981 2,470 2,245 1,242

SSCT Financial History - Five Years (Cash Only)

18,000

22,000

16,000

20,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

-2,000

2014 2013 2012 2011 2010

INCOME EXPENSES NET RESULT

Corporate Services5 YEAR PERFORMANCE

SSCT Financial History - Five Years (Accrual)

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

-5,000

-10,000

-15,000

2014 2013 2012 2011 2010

$’000

2014 2013 2012 2011 2010

Income 22,370 21,923 21,707 19,458 17,945

Expenses 31,368 28,461 29,149 25,757 24,813

Net Result -8,998 -6,538 -7,442 -6,299 -6,868

INCOME EXPENSES NET RESULT


ORGANISATIONAL DEVELOPMENTSSCT continues to expand its human resource

management framework, strategies and practices

in line with industry standards and best practice.

To support this, the Organisational Development business

unit was formed in March 2014; comprising the key branches

of Workforce Planning and Strategy, Recruitment, Employee

Relations, Safety Management, Employee Welfare, Learning

and Development, Policy, Compliance, Payroll and

Organisational Culture.

Key achievements

• Maintaining a workforce shift from 80% casual staff to 73% permanent across Trust; a commitment made to meet financial targets in EBA 2012 negotiations;

• The implementation of an e-learning tool; scoped for compliance, induction and personal development;

• Delivery of 2 successful International Facility Management Programs;

• The development of a Front Line Management qualification for emerging leaders;

• Implementation of seasonal recruitment contracts;

• Development and implementation of a structured career pathway training program in each team;

• The continued journey in ‘Developing Champions in Life’ culture, living and promoting the values of Integrity, Teamwork and Passion; and

• Disability Action Plan for 2014-2017 developed and implemented; focus on achieving Accessible Communication symbol in 2014.

Risk, Safety and Compliance

SSCT staff demonstrates unwavering commitment to

safety excellence; including compliance with the legislation

and standards relating to the provision of health and safety

in public sporting facilities.

Injuries per 1000 visits

Workforce profile

The State Sport Centres Trust is committed to applying

merit and equity principles when appointing staff. The selection

processes ensure that applicants are assessed and evaluated

fairly and equitably on the basis of the key selection criteria

and other accountabilities without discrimination.

The total number of personnel employed by the State Sport

Centres Trust as at 30 June 2014 was 450.

Staff Profile by Position

Qualifications of staff who provide activity supervision

incident rate per 100 at msac 2013/2014

2014 MALE FEMALE TOTAL

Executive Officers >100k 4 1 5

Full time 31 24 55

Part time 78 75 153

Casual 74 89 163

Total paid 187 189 376

Total active 217 233 450

Full time equivalent 177

2014 2013

MSAC 0.5 0.5

SNHC 0.1 0.1

LS 0.2 0.4

2014 NO. OF STAFF

2013 NO. OF STAFF

First Aid 206 213

Pool Lifeguard 95 124

Defibrillation 234 199

2013 MALE FEMALE TOTAL

Executive Officers >100k 4 1 5

Full time 29 28 57

Part time 63 56 119

Casual 80 100 180

Total paid 176 185 361

Total active 217 222 439

Full time equivalent 167

Staff representatives from each work area form a Risk

Management Committee. The Committee meets on a regular

basis and implements reports and monitors issues of health

and safety for both staff and patrons.

No time was lost to industrial disputes in 2013/ 2014 (2013: 0)

36 days were lost due to work related injuries (2013: 66).

300

0.60

0.70

0.80

250

0.50200

0.40150

0.30100

0.20

500.10

0 0.00

JUL - 13

AUG - 13

SEP - 13

OCT - 13

NOV - 13

DEC - 13

JAN - 14

FEB - 14

MAR - 14

APR - 14

MAY - 14

JUN - 14

OFFICIAL 1000S OFFICIAL RATE/1000

Corporate Services


Corporate Services

INFORMATION TECHNOLOGYThe I.T. Services Manager and Jasco have maintained the

IT operating systems with server and systems availability

over 99.95%.

Major projects, upgrades and achievements within

the 2013-2014 financial year were:

• Domain Flattening - consolidate multiple network domains into a single entity, removing duplication of systems and licensing across sites;

• Migration of all servers, and primary systems and databases into the single domain;

• Email migration to Microsoft Exchange online (hosted cloud);

• Updated licensing and implementation of the latest Microsoft SQL Server database hosting platform;

• Trust-wide installation of Office 365 Microsoft Office Professional 2013 suite;

• Updated all licensing to ensure compliance for all Microsoft operating systems and software;

• Updated and centralised backup solution;

• Tender completed for provision of Telephone and Data Services, resulting in Telstra being contracted as the new supplier to SSCT;

• SSCT Internal Audit completed as a Review of Information Technology;

• Employment of 1 additional internal I.T. staff resource;

• Integrated EFTPOS for all customer service points; and

• Member Access Control via the leisure centre management system.

Other major projects were planned in the 2013-14 financial year,

and these projects have commenced and continue on into the

2014-15 financial year:

• Implementation of Telstra Data and Telephone services, including a 1GB network connection from MSAC to SNHC;

• Change of landline phone system to a VOIP system servicing all SSCT sites - Microsoft Lync Enterprise Voice;

• New website and member portal;

• Court Bookings via website;

• Member Access Turnstile lifecycle replacement for SNHC and MSAC; and

• Trust-wide Wireless Networking planning and procurement.

Legislative & Government Policy Compliance

FREEDOM OF INFORMATION The Freedom of Information Act 1982 allows for the public

a right of access to documents held by the Trust. For the

12 months to 30 June 2014 the Trust received no requests

for information pursuant to the Freedom of Information

Act 1982. (2013: 0).

Making a Request

Access to documents may be obtained through written

requests to the Chief Executive Officer - State Sport Centres

Trust, as detailed in s17 of the Freedom of Information Act 1982.

In summary, the requirements for making a request are:

• It should be in writing;

• It should identify as clearly as possible which document is being requested; and

• It should be accompanied by the appropriate application fee (the fee may be waived in certain circumstances).

Requests for documents in the possession of SSCT

should be addressed to:

The Chief Executive Officer - State Sport Centres Trust

Melbourne Sports and Aquatic Centre,

Box 1, Aughtie Drive,

Albert Park, 3206

Requests can also be lodged online at www.foi.vic.gov.au

Access to charges may also apply once documents

have been processed and a decision on access is made;

for example photocopying and search retrieval charges.

Further information regarding Freedom of Information

can be found at www.foi.vic.gov.au

Categories of Documents

The Trust maintains records and files incorporating documents

relating to general administrative matters and the operation of

SSCT facilities. All records and files are maintained at the Trust’s

premises at Albert Park and Royal Park.

Compliance with Building Act 1993

Over the past year, nothing in the Building Act 1993 applies

to the carrying out of works authorised by or in accordance

with the State Sport Centres Act or at the request of the

Trust. The Trust has however undertaken to comply with the

specifications of the Building Act 1993 wherever applicable.

National Competition Policy

The Trust applies the principles of competitive neutrality

to all commercial operations in accordance with the Victorian

Government Competitive Neutrality Policy, where it is in

competition with private sector enterprises, but where the

provision of services or facilities by the Trust is deemed to

be in the public benefit, the principles are not applied.

Implementation of the Victorian Industry Participation Policy

In October 2003, the Victorian Parliament passed the Victorian

Industry Participation Policy Act 2003, which requires the

Trust to report on the implementation of the Victorian Industry

Participation Policy (VIPP). The Trust is required to apply VIPP

in all tenders over $3 million. During 2013/2014 the Trust did not

commence or complete a contract to which the VIPP applied.


COMMUNITY INCLUSIVENESSThe State Sport Centres Trust is committed to ensuring

optimal access to and utilisation of the facilities by the Victorian

Community. SSCT continues to focus on growing programs

that embrace the cultural and economic diversity of the State

of Victoria and more specifically, the City of Port Phillip.

Some examples of such programs can be seen in

the following areas;

• Traineeships - The City of Port Phillip has access to wonderful career opportunities at SSCT. An extensive range of Federal and State Government endorsed traineeships are offered across all SSCT Venues and work areas

• Inner South Community Rehabilitation Programs

• Cultural awareness workshops

• Recruitment targeting Indigenous Australians

• Disability awareness workshops

• Training and promotion of the National Relay Service for the hearing imparied

• Adult Swimming Instructions for persons with a disability

• Modified Group exercise classes

• Work experience programs for students with special needs

• Strategic partnerships

CONSULTANCY SERVICES Consultancies costing in excess of $100,000:

2014 2013

Name NA NA

Description NA NA

Project NA NA

Amount $nil $nil

Future Commitment $nil $nil

2014 2013

Number 1 6

Total Amount $1,600 $85,775

ORGANISATION RECEIPT ($)

DTPLI (SRV) 1,500,000

DTPLI (SRV) 6,030,000

Total 7,530,000

ACTIVITY PAYMENT ($)

Improving operational delivery at facilities 2,895,624

Providing community subsidies 180,000

Providing rebates to Sport 777,450

Capital Projects 2013/14 5,704,759#

Total 9,557,833*

*Note – excess expenditure above grant is funded as a part of business operations or from reserves. #Note - unspent portion of capital grant rolled into 2014/15 financial year.

Legislative & Government Policy Compliance

Consultancies costing less than $100,000:

ADDITIONAL INFORMATION AVAILABLE ON REQUEST

Relevant information detailed in Financial Reporting Direction

(FRD) 22E ‘Standard Disclosures in the Report of Operations’

under the Financial Management Act 1994 Section 3 is retained

by the Trust’s Accountable Officer and is available on request,

subject to the Freedom of Information Act 1982.

DISCLOSURE OF GRANTS AND TRANSFER PAYMENTS State Sport Centres Trust – Operational Funding 2013/14

State Sport Centres Trust – Capital Funding 2013/14

Grant – Operations & Capital Funding (Grant)

Grant – Operations & Capital Funding (Disbursement)

FINANCIAL REVIEW OF OPERATIONS AND FINANCIAL CONDITION

Financial Overview & Disclosure

FIVE YEAR HISTORYThe Trust made an operating deficit of $74K, with a net deficit of $8.998M when depreciation is taken into account.

SSCT 2014 $’000

SSCT 2013 $’000

SSCT 2012$’000

SSCT 2011$’000

SSCT 2010$’000

Revenue 22,370 21,923 21,707 19,458 17,945

Operating expenses 22,444 20,942 19,237 17,213 16,703

Depreciation 8,924 7,519 9,912 8,544 8,110

Net result (8,998) (6,538) (7,442) (6,299) (6,868)

Total assets 345,767 348,490 290,998 255,990 254,183

Total liabilities 9,366 8,971 7,810 3,540 2,410

Operating Statement

The State Sport Centres Trust recorded an operating deficit

before depreciation $0.074 million in 2013/14 which included

Operational funding from government of $1.5 million for

MSAC, SNHC and Lakeside Stadium. After taking account of

a depreciation charge of $8.924 million for the year, the SSCT

recorded a deficit of $8.998 million.

Balance Sheet

Major changes to the balance sheet include the following:

• An increase in Cash Deposits from capital grants to be acquitted in 2014/15;

• A large reduction in Inventories following the closure of the MSAC Shop during the year.

Changes in Equity

The State Sport Centres Trust recorded a decrease in

equity of $3.118 million in 2013/14. This position was due

to the following key factors:

• A depreciation charge of $8.924 million offset by government capital funding of $5.880 million;

• An operating deficit of $0.074 million.

Cash Flow

The State Sport Centres Trust recorded an increase

in cash held of $1.666 million in 2013/14. This included

the following key impact:

• Reflective of a cash operating deficit of $0.074 million offset by capital funding received in 2013/14 but to be acquitted in 2014/15.

Prior Year Adjustments

The State Sport Centres Trust was appointed as the Committee

of Management of Lakeside Stadium effective 31st August 2011,

however the land was never transferred from Parks Victoria.

A Ministerial Allocation Statement for Lakeside Stadium Land

was exercised on 8th May 2014 to SSCT for $18.934 million as

contributed capital.

As such the balances sheets for 2012 and 2013 were restated to

reflect the correct contributed capital and land values following

the transfer.


Disclosure Index

The Annual Report of the State Sport Centres Trust is prepared in accordance with all relevant Victorian legislations.

This index has been prepared to facilitate identification of the Trust’s compliance with statutory requirements.

MINISTERIAL DIRECTIONS

MANAGEMENT AND STRUCTURE

FINANCIAL AND OTHER INFORMATION

LEGISLATION REQUIREMENTPAGE

REFERENCE

FRD 22E Manner of establishment and relevant Ministers 8

FRD 22E Objectives, functions, powers and duties 8

FRD 22E Nature and range of services provided 8


REFERENCE

FRD 22 Organisation structure 10


REFERENCE

FRD 22E Statement of workforce data 20

FRD 22E Summary of the financial results for the year 18

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

FRD 22E Major changes or factors affecting performance 25

FRD 22E Subsequent events 44

FRD 22E Application and operation of Freedom of Information Act 23

FRD 22E Compliance with building and maintenance provisions of Building Act 1993 23

FRD 22E Statement on National Competition Policy 23

FRD 22E Application and operation of the Protected Disclosure Act 2001 28

FRD 22E Details of consultancies over $100,000 and under $100,000 24

FRD 22E Statement of availability of other information 24

FRD 22E Occupational health and safety 21

FRD 15B Executive officer disclosures 62, 63

FRD 10 Disclosure index 26

FRD 25B Victorian Industry Participation Policy Disclosures 23

FRD 22E Objectives and Performance Against Objectives 17


REFERENCE

FRD 22E Merit and Equity 20

PAEC 87 Disclosure of Grants and Transfer Payments 24

SD4.5.5.1 Ministerial Standing Direction 4.5.5.1 compliance attestation 7

FINANCIAL AND OTHER INFORMATION (CONTINUED)

FINANCIAL STATEMENTS: FINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF THE FMA


REFERENCE

SD 4.2(c) Compliance with Australia accounting standards and other authoritative pronouncements 36

SD 4.2(c) Compliance with Ministerial Directions 36

SD 4.2(d) Rounding of amounts 38

SD 4.2(c) Accountable officer declaration 74

SD 4.2(f) Model Financial Report 36

SD 4.(b) Operating Statement 32

SD 4.2(b) Balance Sheet 33

SD 4.2(b) Statement of Changes in Equity 34

SD 4.2(b) Cash Flow Statement 35


REFERENCE

FRD 13 Disclosure of parliamentary appropriates 43

FRD 21B Responsible person and executive officer disclosures 62, 63

FRD 23 Superannuation liabilities and disclosures 64

OTHER DISCLOSURES IN NOTES TO THE FINANCIAL STATEMENTS

CONSIDERED ACTS:• Freedom of Information Act 1982 23

• Protected Disclosure Act 2012 28

• Building Act 1993 23

• Victorian Industry participation Policy Act 2003

• Financial Management Act 1994


Protected Disclosures

COMPLIANCE WITH THE PROTECTED DISCLOSURE ACT 2012 (FORMERLY, THE WHISTLEBLOWERS PROTECTION ACT 2001)The Protected Disclosure Act 2012 encourages and assists

people in making disclosures of improper conduct by public

officers and public bodies. The Act provides protection to

people who make disclosures in accordance with the Act and

establishes a system for the matters disclosed to be investigated

and rectifying action to be taken.

The Trust does not tolerate improper conduct by employees,

nor 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 Trust will take all reasonable steps to protect people who

make such disclosures from any detrimental action in reprisal

for making the disclosure. It will also afford natural justice to the

person who is the subject of the disclosure to the extent it is

legally possible.

REPORTING PROCEDURESDisclosures of improper conduct or detrimental action by the

Trust or its employees may be made to the following officer:

The Protected Disclosure Coordinator and Officer:

Darren Rattle General Manager Corporate Services

Box 1 Aughtie Drive

Albert Park Victoria 3206

Email: [email protected]

Tel: (03) 9926 1506

DISCLOSURES UNDER THE PROTECTED DISCLOSURE ACT 2012 Alternatively, disclosures of improper conduct or detrimental

action by the Trust or its employees may also be made directly

to the Independent Broad-based Anti-corruption Commission:

Level 1, 459 Collins Street (North Tower)

Melbourne VIC 3000

Telephone: 1300 735 135

Internet: www.ibac.vic.gov.au

Email: (refer website above)

FURTHER INFORMATIONThe Protected Disclosure Policy and Procedures, which outline

the system for reporting disclosures of improper conduct or

detrimental action by the Trust or any of its employees are

available for public perusal.

2013/2014 NUMBER 2012/2013 NUMBER

The number of disclosures made by an individual to the Trust and

notified to the Independent Broad-based Anti-corruption Commission:

Assessable Disclosures 0 n/a

Contents

COMPREHENSIVE OPERATING STATEMENT 01

BALANCE SHEET 02

STATEMENT OF CHANGES IN EQUITY 03

CASH FLOW STATEMENT 04

NOTES TO THE FINANCIAL STATEMENTS 1. Summary of significant accounting policies 05

2. Going concern 15

3. Income from transactions 15

4. Expenses from transactions 16

5. Cash and deposits 17

6. Receivables 17

7. Inventories 18

8. Property, plant & equipment 19

9. Other non-financial assets 23

10. Payables 24

11. Provisions 25

12. Other liabilities 28

13. Leases 28

14. Reserves 29

15. Commitments 29

16. Cash flow information 30

17. Responsible persons 31

18. Superannuation 33

19. Remuneration of auditors 33

20. Contingent assets and contingent liabilities 33

21. Financial instruments 34

CERTIFICATION 43


BALANCE SHEET - AS AT 30 JUNE 2014

($ THOUSAND) NOTES SSCT 2014SSCT 2013 (restated)

SSCT 2012 (restated)

ASSETS

FINANCIAL ASSETS

Cash and deposits 5 7,032 5,366 6,088

Receivables 6 835 1,007 2,593

Total financial assets 7,867 6,373 8,681

NON-FINANCIAL ASSETS

Inventories 7 132 292 248

Property, plant and equipment 8, 1(t) 337,498 341,584 281,911

Other non-financial assets 9 270 241 158

Total non-financial assets 337,900 342,117 282,317

Total assets 345,767 348,490 290,998

LIABILITIES

Payables 10 2,961 2,834 2,226

Provisions 11 849 755 631

Other liabilities 12, 15, 1(t) 5,556 5,382 4,953

Total liabilities 9,366 8,971 7,810

Net assets 336,401 339,519 283,188

EQUITY

Accumulated deficit 1(t) (55,609) (46,611) (40,073)

Physical asset revaluation surplus 14 117,776 117,776 117,776

Contributed capital 1(t) 274,234 268,354 205,485

Total equity 336,401 339,519 283,188

Commitments for expenditure 15

Contingent assets and contingent liabilities 20

The balance sheet should be read in conjunction with the notes to the financial statements.

COMPREHENSIVE OPERATING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014

($ THOUSAND) NOTES SSCT 2014SSCT 2013 (restated)

INCOME FROM TRANSACTIONS

Sale of goods and services 3(a), 1(t) 20,586 19,207

Grants 3(b) 1,652 2,497

Interest 3(c) 132 219

Total income from transactions 22,370 21,923

EXPENSES FROM TRANSACTIONS

Employee expenses 4(a), 1(t) (11,004) (9,907)

Depreciation 4(b) (8,924) (7,519)

Other operating expenses 4(c), 1(t) (11,440) (11,035)

Total expenses from transactions (31,368) (28,461)

Net result from transactions (net operating balance) (8,998) (6,538)

OTHER ECONOMIC FLOWS - OTHER COMPREHENSIVE INCOME

Changes in physical asset revaluation surplus 14 - -

Total other economic flows - other comprehensive income

- -

Comprehensive result (8,998) (6,538)

The comprehensive operating statement should be read in conjunction with the notes to the financial statements.

Annual Financial Statements


STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014

($ THOUSAND) NOTESPHYSICAL ASSET

REVALUATION SURPLUS

ACCUMULATED DEFICIT

CONTRIBUTED CAPITAL

TOTAL

BALANCE AT 1 JULY 2012 1(t) 117,776 (40,073) 205,485 283,188

Net result for the year - (6,538) - (6,538)

Other comprehensive income for the year 14, 1(t) - - - -

Capital appropriations - - 62,869 62,869

BALANCE AT 30 JUNE 2013 117,776 (46,611) 268,354 339,519

Net result for the year - (8,998) - (8,998)

Other comprehensive income for the year 14 - - - -

Capital appropriations - - 5,880 5,880

BALANCE AT 30 JUNE 2014 117,776 (55,609) 274,234 336,401

The statement of changes in equity should be read in conjunction with the notes to the financial statements. 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 30 JUNE 2014

($ THOUSAND) NOTES SSCT 2014 SSCT 2013

CASH FLOWS FROM OPERATING ACTIVITIES

RECEIPTS

Receipts from customers 21,624 22,112

Receipts from Government 1,652 2,497

Goods and Services Tax recovered from the ATO 1,154 959

Interest received 146 192

Total receipts 24,576 25,760

PAYMENTS

Payments to suppliers and employees (21,836) (21,074)

Goods and Services Tax paid to the ATO (1,501) (1,085)

Total payments (23,337) (22,159)

Net cash flows from operating activities 16(b) 1,239 3,601

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for non-financial assets (5,453) (6,323)

Net cash flows (used in)/from investing activities (5,453) (6,323)

CASH FLOWS FROM FINANCING ACTIVITIES

Owner contributions by State Government 5,880 2,000

Net cash flows from financing activities 5,880 2,000

Net increase / (Decrease) in cash and cash equivalents 1,666 (722)

Cash and cash equivalents at end of financial year 5,366 6,088

Cash and cash equivalent at end of financial year 16(a) 7,032 5,366


NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014



NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThese annual financial statements represent the audited

general purpose financial statements for State Sport Centre

Trust (SSCT) for the period ending 30 June 2014. The purpose

of the report is to provide users with information about the

SSCT’s stewardship of resources entrusted to it.

A. STATEMENT OF COMPLIANCEThese general purpose 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 appropriate, those AASs 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.

To gain a better understanding of the terminology used in this

report, a glossary of terms and style conventions can be found

in Note 22.

These annual financial statements were authorised for

issue by Mr. Michael Taylor, Chairman of SSCT and Mr. Simon

Weatherill, Chief Executive Officer and Accountable Officer of

SSCT, on 28th August 2014.

B. BASIS OF ACCOUNTING PREPARATION AND MEASUREMENTThe 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 values of assets and liabilities that

are not readily apparent from other sources. The estimates and

associated assumptions are based on professional judgements

derived from historical experience and various other factors that

are believed to be reasonable under the circumstances. Actual

results may differ from these estimates.

Revisions to accounting estimates are recognised in the period

in which the estimate is revised and also in future periods that

are affected by the revision. Judgements and assumptions made

by management in the application of AASs that have significant

effects on the financial statements and estimates relate to:

• The fair value of land, buildings, infrastructure, plant and equipment; and

• Actuarial assumptions for employee benefit provisions.

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; and

• The fair value of an asset other than land is generally based

on its depreciated replacement value.

Consistent with AASB 13 Fair Value Measurement, SSCT

determines the policies and procedures for both recurring fair

value measurements such as property, plant and equipment, in

accordance with the requirements of AASB 13 and the relevant

Financial Reporting Directions.

All assets and liabilities for which fair value is measured or

disclosed in the financial statements are categorised within the

fair value hierarchy, described as follows, based on the lowest level

input that is significant to the fair value measurement as a whole:

Level 1 – Quoted (unadjusted) market prices in active markets

for identical assets or liabilities

Level 2 – Valuation techniques for which the lowest level input

that is significant to the fair value measurement is directly or

indirectly observable; and

Level 3 – Valuation techniques for which the lowest level input

that is significant to the fair value measurement is unobservable.

For the purpose of fair value disclosures, SSCT has

determined classes of assets and liabilities on the basis of

the nature, characteristics and risks of the asset or liability

and the level of the fair value hierarchy as explained above.

In addition, SSCT determines whether transfers have occurred

between levels in the hierarchy by re-assessing categorisation

(based on the lowest level input that is significant to the fair value

measurement as a whole) at the end of each reporting period.

The Valuer-General Victoria (VGV) is the SSCT’s independent

valuation agency.

SSCT, in conjunction with VGV, monitors changes in the fair

value of each asset and liability through relevant data sources

to determine whether revaluation is required.

C. REPORTING ENTITYThe financial statements cover SSCT as an individual reporting entity.

The financial statements include all the controlled activities of

the SSCT, which is a statutory authority established under the

State Sport Centres (Amendment) Act 2004 No. 70 (“Act”).

Its principal address is:

State Sport Centres Trust

Box 1, Aughtie Drive,

Albert Park VIC 3206

The following statutory bodies are included in the SSCT’s

reporting entity:

• Melbourne Sports and Aquatic Centre (MSAC), incorporating MSAC Institute of Training is independent Strategic Business Unit of SSCT. The unit is headed by the Director of SSCT, established under s14 of the Act.

• State Netball Hockey Centre (SNHC), is independent Strategic Business Unit of SSCT .The unit is headed by the Director of SSCT, established under s15 of the Act.

• Lakeside Stadium, At the time of reporting, the Act has not been amended to include Lakeside Stadium; however, the SSCT was appointed as the committee of management of the Lakeside Oval Reserve on 31 Aug 2012 under section 14(2) of the Crown Land (Reserves) Act 1978. Therefore, details on the Lakeside Stadium financials have been incorporated into MSAC.

MSAC and SNHC produce a Business Plan and operate

independently with separate and individual financial operations

and accounts. It is the Government and SSCT’s policy that the

Centres will not receive any cross subsidies for operation.

SSCT is deemed a not-for-profit entity by being excluded

from “FRD 108 – Classification of Entities as For-Profit”

issued by the Department of Treasury and Finance.

A description of the nature of the SSCT’s operations and

its principal activities is included in the report of operations,

which does not form part of these financial statements.

D. SCOPE AND PRESENTATION OF FINANCIAL STATEMENTSComprehensive operating statement

The comprehensive operating statement comprises three

components, being ‘net result from transactions’ (or termed as

‘net operating balance’), ‘other economic flows included in net

result’, as well as ‘other economic flows – other comprehensive

income’. The sum of the former two, together with the net result

from discontinued operations, represents the net result.

The net result is equivalent to profit or loss derived in

accordance with AASs.

This classification is consistent with the whole of government

reporting format and is allowed under AASB 101 Presentation

of Financial Statements.

Balance sheet

Assets and liabilities are presented in liquidity order with assets

aggregated into financial assets and non-financial assets.

Current and non current assets and liabilities (non current being

those assets or liabilities expected to be recovered or settled

more than 12 months after the reporting period) are disclosed

in the notes, where relevant.

Cash flow statement

Cash flows are classified according to whether or not they

arise from operating, investing, or financing activities. This

classification is consistent with requirements under AASB 107

Statement of Cash Flows.




Statement of changes in equity

The statement of changes in equity presents reconciliations

of non-owner and owner changes in equity from opening

balances at the beginning of the reporting period to the

closing balances at the end of the reporting period. It also

shows separately changes due to amounts recognised in the

‘Comprehensive result’ and amounts related to ‘Transactions

with owner in its capacity as owner’.

Rounding of amounts

Amounts in the financial statements have been rounded to the

nearest $1 000, unless otherwise stated. Figures in the financial

statements may not equate due to rounding. Please refer to the

end of Note 22 for a style convention for explanations of minor

discrepancies resulting from rounding.

E. CHANGES IN ACCOUNTING POLICIESSubsequent to the 2012-13 reporting period, the following new

and revised Standards have been adopted in the current period

with their financial impact detailed as below.

AASB 13 Fair Value Measurement

AASB 13 establishes a single source of guidance for all fair

value measurements. AASB 13 does not change when SSCT is

required to use fair value, but rather provides guidance on how

to measure fair value under Australian Accounting Standards

when fair value is required or permitted. SSCT has considered

the specific requirements relating to highest and best use,

valuation premise, and principal (or most advantageous)

market. The methods, assumptions, processes and procedures

for determining fair value were revisited and adjusted where

applicable. In light of AASB 13, SSCT has reviewed the fair value

principles as well as its current valuation methodologies in

assessing the fair value, and the assessment has not materially

changed the fair values recognised.

However, AASB 13 has predominantly impacted the disclosures

of SSCT. It requires specific disclosures about fair value

measurements and disclosures of fair values, some of which

replace existing disclosure requirements in other standards,

including AASB 7 Financial Instruments: Disclosures.

The disclosure requirements of AASB 13 apply prospectively

and need not be applied in comparative information before

first application. Consequently, the 2012-13 comparatives of

these disclosures have not been provided, except for financial

instruments, of which the fair value disclosures are required

under AASB 7 Financial Instruments: Disclosures.

AASB 119 Employee benefits

In 2013-14, SSCT has applied AASB 119 Employee benefits

(September 2011, as amended) and the related consequential

amendments for the first time.

The revised AASB 119 changes the accounting for defined

benefit plans and termination benefits. The most significant

change relates to the accounting for changes in defined benefit

obligation and plan assets. As the current accounting policy is

for the Department of Treasury and Finance to recognise and

disclose the State’s defined benefit liabilities in its financial

statements, changes in defined benefit obligations and plan

assets will have limited impact on SSCT.

The revised standard also changes the definition of short-term

employee benefits. These were previously benefits that were

expected to be settled within twelve months after the end of

the reporting period in which the employees render the related

service, however, short-term employee benefits are now defined

as benefits expected to be settled wholly within twelve months

after the end of the reporting period in which the employees

render the related service. As a result, accrued annual leave

balances which were previously classified by SSCT as short-term

employee benefits no longer meet this definition and are now

classified as long-term employee benefits. This has resulted in

a change of measurement for the annual leave provision from

an undiscounted to discounted basis.

However, the change in classification has not materially

altered SSCT’s measurement of the annual leave provision.

As per the direction of SSCT Audit & Risk Committee, SSCT

monitors employee’s annual leave and the balance of benefits

expected to be settled wholly within twelve months after the

end of the reporting period in which the employees render

the related service. The impact of applying AASB 119 in the

Comprehensive Operating Statement for 2012 2013 is increasing

profit by $2000.00. Due to the immaterial change, SSCT has not

adjusted the closing balance of Annual Leave and the employee

expense for 2012 2013.

F. INCOME FROM TRANSACTIONSIncome is recognised to the extent that it is probable that the

economic benefits will flow to the entity and the income can be

reliably measured at fair value.

Sale of goods and services

Income from sale of goods and services

Income from the sale of goods and services is recognised when:

• SSCT no longer has any of the significant risks and rewards of ownership of the goods and services transferred to the buyer;

• SSCT no longer has continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold and services provided;

• The amount of income, and the costs incurred or to be incurred in respect of the transactions, can be reliably measured;

• It is probable that the economic benefits associated with the transaction will flow to the SSCT

Sale of goods and services includes rental income which

are recognised at the time the rent is billed.

Interest

Interest includes interest received on bank term deposits

and other investments and the unwinding over time of the

discount on financial assets. Interest income is recognised

using the effective interest method which allocates the

interest over the relevant period.

Grants

Income from grants (other than contributions by owners) is

recognised when SSCT obtains control over the contribution.

G. EXPENSES FROM TRANSACTIONSExpenses from transactions are recognised as they are incurred,

and reported in the financial year to which they relate.

Employee expenses

Refer to the section in Note 1(K) regarding employee benefits.

These expenses include all costs related to employment

(other than superannuation which is accounted for separately)

including wages and salaries, fringe benefits tax, leave

entitlements, redundancy payments and WorkCover premiums.

Superannuation

The amount recognised in the comprehensive operating

statement is the employer contributions for members of both

defined benefit and defined contribution superannuation plans

that are paid or payable during the reporting period.

Depreciation

All infrastructure assets, buildings, plant and equipment

and other non-financial physical assets (excluding items

under operating leases, assets held for sale and land)

that have finite useful lives are depreciated. Depreciation

is generally calculated on a straight-line basis, at rates that

allocate the asset’s value, less any estimated residual value,

over its estimated useful life. Refer to Note 1 (J) for the

depreciation policy for leasehold improvements.

The estimated useful lives, residual values and depreciation

method are reviewed at the end of each annual reporting

period, and adjustments made where appropriate.

The following are typical estimated useful lives for the

different asset classes for both current and prior years:

ASSET USEFUL LIFE

2014 2013

Buildings 15 - 110 years 15 - 110 years

Plant and Equipment 5 – 40 years 5 – 40 years

Office Furniture 5 – 15 years 5 – 15 years

Computer Equipment 3 – 5 years 3 – 5 years

Gym Equipment 5 – 10 years 5 – 10 years

Other Equipment 2 – 40 years 2 – 40 years

Leasehold Improvements 5 - 40 years 5 - 40 years

Land is considered to have an indefinite life, and is not

depreciated. Depreciation is not recognised in respect

of this asset because its service potential has not, in any

material sense, been consumed during the reporting period.

Other operating expenses

Other operating expenses generally represent the day-to-day

running costs incurred in normal operations and include:



STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORTSTATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT 1 09

Supplies and services

Supplies and services costs which are recognised as an expense

in the reporting period in which they are incurred. The carrying

amounts of any inventories held for distribution are expensed

when distributed.

Bad and doubtful debts

Bad and doubtful debts are assessed on a regular basis.

Those bad debts considered as written off by mutual consent

are classified as a transaction expense. Those written off

unilaterally and the allowance for doubtful receivables, are

classified as other economic flows (refer to Note 1(I) Financial

assets – Impairment of financial assets).

Fair value of assets and services provided free of charge or for nominal consideration

Contributions of resources provided free of charge or for nominal

consideration are recognised at their fair value when the transferee

obtains control over them, irrespective of whether restrictions or

conditions are imposed over the use of the contributions, unless

received from another government department or agency as a

consequence of a restructuring of administrative arrangements.

In the latter case, such a transfer will be recognised at its carrying

value. Contributions in the form of services are only recognised

when a fair value can be reliably determined and the services

would have been purchased if not donated.

H. OTHER ECONOMIC FLOWS INCLUDED IN THE NET RESULTOther economic flows measure the change in volume or value

of assets or liabilities that do not result from transactions.

Net gain/(loss) on non-financial assets

Net gain/(loss) on non-financial assets includes realised

and unrealised gains and losses as follows:

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

Refer to accounting policy on Property, plant and equipment,

provided in Note 1(J) Revaluation of Non-financial assets.

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

Any gain or loss on the disposal of non financial assets is

recognised at the date of disposal and is the difference between

the proceeds the carrying value of the asset at that time.

Impairment of non-financial assets

All of SSCT’s non-financial assets are assessed annually

for indications of impairment, except for inventories.

If there is an indication of impairment, the assets concerned are

tested as to whether their carrying value exceeds their possible

recoverable amount. Where an assets 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.

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.

Other gains/(losses) from other economic flows

Other gains/(losses) from other economic flows include

the gains or losses from:

• The revaluation of the present value of the long service leave liability due to changes in the bond interest rates; and

• Transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition or reclassification.

I. FINANCIAL ASSETSCash and deposits

Cash and deposits recognised on the balance sheet comprise

cash on hand and cash at bank, deposits at call and those highly

liquid investments (with an original maturity of three months or

less), which are held for the purpose of meeting short term cash

commitments rather than for investment purposes, and readily

convertible to known amounts of cash with an insignificant risk

of changes in value.

For cash flow statement presentation purposes, cash and

cash equivalents include bank overdrafts, which are included

as borrowings on the balance sheet.

Receivables

Receivables consist of:

• Contractual receivables, such as debtors in relation to goods and services, loans to third parties, and accrued investment income; and

• Statutory receivables, such as amounts owing from the Victorian Government and Goods and Services Tax (GST)

input tax credits recoverable.

Contractual receivables are classified as financial instruments

and categorised as loans and receivables. Statutory receivables,

are recognised and measured similarly to contractual receivables

(except for impairment), but are not classified as financial

instruments because they do not arise from a contract.

Receivables are subject to impairment testing as described

below. A provision for doubtful receivables is recognised when

there is objective evidence that the debts may not be collected,

and bad debts are written off when identified.

The average credit period for sales of goods and services and

for other receivables is 30 days. No interest is charged on other

receivables for outstanding balances.

Impairment of financial assets

At the end of each reporting period, SSCT assesses whether

there is objective evidence that a financial asset or group of

financial assets is impaired. All financial instrument assets,

except those measured at fair value through profit or loss,

are subject to annual review for impairment.

Receivables are assessed for bad and doubtful debts on

a regular basis. Those bad debts considered as written off

by mutual consent are classified as a transaction expense.

Bad debts not written off by mutual consent and the allowance

for doubtful receivables are classified as other economic flows

in the net result.

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.

J. NON-FINANCIAL ASSETSInventories

Inventories include goods and other property held either

for sale, or for distribution at zero or nominal cost, or for

consumption in the ordinary course of business operations.

Inventories held for distribution are measured at the lower

of cost and net realisable value.

Property, plant and equipment

All non-financial physical assets are measured initially at cost

and subsequently revalued at fair value less accumulated

depreciation and impairment.

The fair value of the Crown lands are measured with regard to

the property’s highest and best use after due consideration is

made for any legal or physical 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.

Therefore, unless otherwise disclosed, the current use of these

non financial physical assets will be their highest and best uses.

The fair value of plant, equipment and vehicles,

is normally determined by reference to the asset’s

depreciated replacement cost.

The cost of constructed non-financial physical assets includes the

cost of all materials used in construction, direct labour on the project,

and an appropriate proportion of variable and fixed overheads.

Leasehold improvements

The cost of leasehold improvements is capitalised as an asset

and depreciated over the shorter of the remaining term of the

lease or the estimated useful life of the improvements.

Revaluations of non financial physical assets

Non-financial physical assets are measured at fair value on

a cyclical basis, in accordance with the Financial Reporting

Directions (FRDs) issued by the Minister for Finance. A full

revaluation normally occurs every five years, based upon the

asset’s government purpose classification but may occur more

frequently if fair value assessments indicate material changes in

values. Independent valuers are generally used to conduct




Revaluations of non financial physical assets (continued)

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 class of property, plant and equipment

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 class of property, plant and equipment. Otherwise, the

net revaluation decreases are recognised immediately as other

economic flows in the net result. The net revaluation decrease

recognised in ‘Other economic flows – other comprehensive

income’ reduces the amount accumulated in equity under the

asset revaluation surplus.

Revaluation increases and decreases relating to individual

assets within a class of property, plant and equipment, 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.

Other non-financial assets

Other non financial assets include accrued income and

prepayments. Prepayments which represent payments

in advance of receipt of goods or services or that part of

expenditure made in one accounting period covering a term

extending beyond that period.

K. LIABILITIESPayables

Payables consist of:

• Contractual payables, such as accounts payable, accrued expenses and unearned income including deferred income

from concession notes. Accounts payable represent liabilities for goods and services provided to SSCT prior to the end of the financial year that are unpaid, and arise when SSCT 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.

Provisions

Provisions are recognised when SSCT has a present obligation,

the future sacrifice of economic benefits is probable, and the

amount of the provision can be measured reliably.

The amount recognised as a liability is the best estimate of

the consideration required to settle the present obligation at

reporting period, taking into account the risks and uncertainties

surrounding the obligation. Where a provision is measured using

the cash flows estimated to settle the present obligation, its

carrying amount is the present value of those cash flows, using

discount rate that reflects the time value of money and risks

specific to the provision.

When some or all of the economic benefits required to settle

a provision are expected to be received from a third party, the

receivable is recognised as an asset if it is virtually certain that

recovery will be received and the amount of the receivable can

be measured reliably.

Employee benefits

Provision 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 leave

Liabilities for wages and salaries, including non monetary

benefits annual leave and accumulating sick leave, are all

recognised in the provision for employee benefits as ‘current

liabilities’, because SSCT does not have an unconditional right

to defer settlements of these liabilities.

Depends on the expectation of the timing of settlement,

liabilities for wages and salaries, annual leave and sick leave

are measured at:

• Undiscounted value if SSCT expects to wholly settle within 12 months; or

• Present value if SSCT does not expect to wholly settle within

12 months.

(ii) Long service leave

Liability for long service leave (LSL) is recognised in the

provision for employee benefits.

Unconditional LSL is disclosed in the notes to the financial

statements as a current liability, even where SSCT does not

expect to settle the liability within 12 months because it will

not have the unconditional right to defer the settlement of the

entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

• Undiscounted value if SSCT expects to wholly settle within 12 months; and

• Present value if SSCT does not expect to wholly 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(H).

(iii) Termination benefits

Termination benefits are payable when employment is terminated

before the normal retirement date, or when an employee decides

to accept an offer of benefits in exchange for the termination of

employment. SSCT 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.

On-costs

Provisions for on costs such as payroll tax, workers

compensation and superannuation are recognised

separately from the provision for employee benefits.

L. LEASESA lease is a right to use an asset for an agreed period of

time in exchange for payment.

Leases are classified at their inception as either operating

or finance leases 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 infrastructure leases whenever the terms

of the lease transfer substantially all the risks and rewards of

ownerships from the lessor to the lessee. All other leases are

classified as operating leases.

Finance Lease

SSCT does not hold any finance leases. Operating lease

payments are recognised as an expense in the comprehensive

operating statement on a straight-line basis over the lease term.

The leased asset is not recognised in the balance sheet.

Operating Lease

Rental income from operating leases is recognised on

a straight-line basis over the term of the relevant lease.

All incentives for the agreement of a new or renewed operating

lease are recognised as an integral part of the net consideration

agreed for the use of the leased asset, irrespective of the

incentive’s nature or form or the timing of payments.

In the event that lease incentives are given to the lessee, the

aggregate cost of incentives are recognised as a reduction of rental

income over the lease term, on a straight-line basis unless another

systematic basis is more representative of the time pattern over

which the economic benefit of the leased asset is diminished.

M. EQUITYContributions by owners

Additions 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.




N. COMMITMENTSCommitments for future expenditure include operating and

capital commitments arising from contracts. These commitments

are disclosed by way of a note (refer to Note 15) at their nominal

value and inclusive of the goods and services tax (GST) payable.

O. CONTINGENT ASSETS AND CONTINGENT LIABILITIESContingent assets and contingent liabilities are not recognised

in the balance sheet, but are disclosed by way of a note (refer

to Note 20) and, if quantifiable, are measured at nominal value.

Contingent assets and liabilities are presented inclusive of GST

receivable or payable respectively.

P. ACCOUNTING FOR THE GOODS AND SERVICES TAX (GST)Income, expenses and assets are recognised net of the

amount of associated goods and services tax (GST), except

where GST incurred is not recoverable from the taxation

authority. In this case, the GST payable is recognised as part

of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of

GST receivable or payable. The net amount of GST recoverable

from, or payable to, the taxation authority is included with other

receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST 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.

Q. INCOME TAXThe Australian Taxation Office has deemed the SSCT to be a

“Public Authority” within the terms of Section 50-25 of the Income

Tax Assessment Act 1997 and as such is exempt from income tax.

No provisions for income taxes payable have been raised.

R. EVENTS AFTER THE REPORTING PERIODThere has not arisen in the interval between the end of the

financial year and the date of signing these financial statements,

any item, transactions or event of a material and unusual

nature likely to affect significantly the operations of the SSCT,

the results of those operations, or the state of affairs of the

SSCT, in subsequent financial years.

S. FOREIGN CURRENCYAll foreign currency transactions during the financial year are

brought to account using the exchange rate in effect at the date

of the transaction.

T. CORRECTION OF PRIOR PERIOD ERRORSSCT was appointed as the Committee of Management of

Lakeside Stadium effective 31st August 2011. However, the land

was not transferred as of the effective date and therefore was

not reported at year end 2011 and 2012. A Ministerial Allocation

Statement for Lakeside Stadium Land was exercised on 8th may

2014 and was transferred to the Trust at $18,934,996 as

a Contributed Capital.

Lakeside land should have been capitalized as at year ending

30th June 2012. As such, SSCT Balance Sheet for year ending

2012 needs to be restated by increasing the total Property,

plant and equipment from $262,976,962 to $281,911,958 to reflect

the Contributed capital of a total $18,934,996. Therefore, the

opening balance of Contributed capital as at 1st July 2012 is

restated to $205,484,996 from $186,550,000.

The opening balance of Employee expense and Operating

expense in SSCT Comprehensive Operating Statement have

been restated from $9,515,000 and $11,427,000 to $9,907,000

and $11,035,000 respectively, due to SSCT incorrectly classed

the movements of accrued leave entitlements and accrued

salaries into the Operating expense instead of employee

expense in 2012 2013.

The opening balance of Sales of Goods and Service in SSCT

Comprehensive Operating Statement and Other Liabilities in

SSCT Balance Sheet have been restated from $19,030,000 and

$5,559,000 to $19,207,000 and $5,382,000 respectively, due to

SSCT recognising the $177,000 insurance claim from Prepaid

Income to Incom for 2012 2013.

STANDARD/ INTERPRETATION

SUMMARYAPPLICABLE TO ANNUAL REPORTING PERIOD BEGINNING ON

AASB 2013

3 Amendments to AASB 136Recoverable Amount Disclosures for Non-Financial Assets

1 Jan 2014

AASB 9 Financial Instruments

Revisions to the classification and measurement of financial assets and financial liabilities

1 Jan 2017

AASS ISSUED THAT ARE NOT YET EFFECTIVE:

U. AASS ISSUED THAT ARE NOT YET EFFECTIVECertain new AASs have been published that are not mandatory

for the 30 June 2014 reporting period. DTF assesses the

impact of all these new standards and advises SSCT of their

applicability and early adoption where applicable.

As at 30 June 2014, the following standards and interpretations

that are applicable to SSCT had been issued but are not

mandatory for the financial year ending 30 June 2014. Standards

and Interpretations that are not applicable to SSCT have been

omitted. SSCT has not early adopted these standards.




NOTE 2. GOING CONCERN

The financial statements of SSCT have been prepared on a going concern basis. The trustees of the State Sport Centres Trust are of the

opinion that SSCT will be able to pay its debts as and when they fall due; this is supported by the provision of Letter of Comfort from the Minister.

The Victorian Government recently confirmed its ongoing support for the SSCT as part of its 2014/2015 Budget by committing over the next four

years $6 million in operational funding and $16.2 million for necessary capital works.

NOTE 3. INCOME FROM TRANSACTIONS

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

(A) SALE OF GOODS AND SERVICES

Sale of goods and services 17,572 3,014 20,586 16,370 2,837 19,207

Total sale of goods and services 17,572 3,014 20,586 16,370 2,837 19,207

(B) GRANTS

Specific purpose grants 1,582 70 1,652 2,497 - 2,497

Total grants 1,582 70 1,652 2,497 - 2,497

(C) INTEREST

Interest from cash and deposits 113 19 132 204 15 219

Total interest 113 19 132 204 15 219

NOTE 4. EXPENSES FROM TRANSACTIONS

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

(A) EMPLOYEE EXPENSES

Salaries, wages and long service leave expenses 8,696 763 9,459 7,792 700 8,492

Defined contribution superannuation expense 788 56 844 637 45 682

Other employee expenses 643 58 701 601 132 733

Total employee expenses 10,127 877 11,004 9,030 877 9,907

(B) DEPRECIATION

Depreciation of property, plant & equipment 7,512 1,412 8,924 6,116 1,403 7,519

Total depreciation 7,512 1,412 8,924 6,116 1,403 7,519

(C) OTHER OPERATING EXPENSES

Cleaning and chemical expenses 1,515 429 1,944 1,451 412 1,863

Other operating supplies expenses 1,797 115 1,912 1,843 118 1,961

Utilities and energy expenses 1,817 247 2,064 1,925 224 2,149

Cost of goods sold expenses 1,540 430 1,970 1,392 411 1,803

Maintenance expenses 1,061 198 1,259 903 170 1,073

IT & Telecommunication expenses 581 95 676 496 28 524

Insurance expenses 420 69 489 459 39 498

Sports rebate expenses 729 - 729 755 - 755

Security expenses 363 34 397 368 41 409

Total other operating expenses 9,823 1,617 11,440 9,592 1,443 11,035




NOTE 6. RECEIVABLES (CONTINUED)

(A) MOVEMENT IN THE PROVISION FOR DOUBTFUL CONTRACTUAL RECEIVABLES

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Balance at beginning of the financial year (29) - (29) (17) - (17)

Reversal of provision for receivables written off during the year as uncollectible

- - - - - -

Reversal of unused provision recognised in operating statement

10 - 10 - - -

Increase in provision recognised in operating statement

(7) - (7) (12) - (12)

Balance at end of the financial year (26) - (26) (29) - (29)

(B) AGEING ANALYSIS OF CONTRACTUAL RECEIVABLES

Please refer to Note 21 (Table 21.4) for the ageing analysis of contractual receivables.

(C) NATURE AND EXTENT OF RISK ARISING FROM CONTRACTUAL RECEIVABLES

Please refer to Note 21 for the nature and extent of risk arising from contractual receivables.

NOTE 7. INVENTORIES

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

CURRENT

Supplies and consumables - at cost 113 19 132 274 18 292

Total 113 19 132 274 18 292

NOTE 5. CASH AND DEPOSITS

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Cash at bank and on hand 3,805 1,027 4,832 2,479 287 2,766

Term deposits 1,600 600 2,200 2,300 300 2,600

Total cash and deposits 5,405 1,627 7,032 4,779 587 5,366

NOTE 6. RECEIVABLES

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

CURRENT CONTRACTUAL

Trade debtors 338 17 355 485 31 516

Provision for doubtful contractual receivables (a) (26) - (26) (29) - (29)

Interest receivable 12 4 16 29 1 30

Total current contractual 324 21 345 485 32 517

STATUTORY

GST input tax credit receivable 448 42 490 443 47 490

Total 772 63 835 928 79 1,007




NOTE 8. PROPERTY, PLANT & EQUIPMENT

(B) GROSS CARRYING AMOUNT AND ACCUMULATED DEPRECIATION

LAND

At fair value (a) 54,935 24,390 79,325 54,935 24,390 79,325

Total 54,935 24,390 79,325 54,935 24,390 79,325

BUILDINGS

At fair value (b) 235,105 36,898 272,003 231,257 36,830 268,087

Less: Accumulated depreciation (16,133) (3,338) (19,471) (9,726) (2,147) (11,873)

Total 218,972 33,560 252,532 221,531 34,683 256,214

PLANT AND EQUIPMENT

At fair value 14,556 2,944 17,500 14,079 2,878 16,957

Less: Accumulated depreciation (9,844) (2,496) (12,340) (9,090) (2,275) (11,365)

Total 4,712 448 5,160 4,989 603 5,592

CAPITAL WORK IN PROGRESS

At cost 474 7 481 424 29 453

Total 474 7 481 424 29 453

Total property, plant and equipment 279,093 58,405 337,498 281,879 59,705 341,584

(A) An independent valuation of SSCT land was performed by Napier & Blakeley as appointed by Valuer General Victoria, to determine the fair

value of the land. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the observable market price

with a notional discount of 80% known as ‘Community Service Obligation’. The effective date of the valuation is 30 June 2012.

(B) An independent valuation of SSCT building, plant and equipment was performed by Napier & Blakeley as appointed by Valuer General Victoria,

to provide replacement cost and depreciated replacement cost on the inspected properties. Work in progress has not been included in the revaluation.

(A) CLASSIFICATION BY ‘PUBLIC SAFETY AND ENVIRONMENT’ PURPOSE GROUP - CARRYING AMOUNT

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Land at fair value 54,935 24,390 79,325 54,935 24,390 79,325

Buildings at fair value 218,972 33,560 252,532 221,531 34,683 256,214

Plant & equipment at fair value 4,712 448 5,160 4,989 603 5,592

Work in Progress at cost 474 7 481 424 29 453

Net carrying amount of PPE 279,093 58,405 337,498 281,879 59,705 341,584

(C) MOVEMENTS IN CARRYING AMOUNT OF PROPERTY PLANT AND EQUIPMENT FOR SSCT (I)

LAND AT FAIR VALUE

BUILDINGS AT FAIR VALUE

PLANT & EQUIPMENT AT FAIR VALUE

WORK IN PROGRESS AT COST

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

Opening Balance 54,935 24,390 221,531 34,683 4,989 603 424 29

Fair value of assets received free of

charge or for nominal considerations - - - - - - - -

Additions - - 3,862 68 822 66 50 (22)

Disposals - - (8) - - - - -

Revaluation of PPE - - - - - - - -

Impairment of assets - - - - - - - -

Depreciation - - (6,413) (1,191) (1,099) (221) - -

Closing balance 54,935 24,390 218,972 33,560 4,712 448 474 7

LAND AT FAIR VALUE



WORK IN PROGRESS AT COST

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

Opening Balance 54,935 24,390 160,663 35,716 4,885 698 618 6

Fair value of assets received free of

charge or for nominal considerations - - 60,869 - - - - -

Additions/Deductions - - 5,135 160 1,085 114 (194) 23

Transfer/Disposals - - - - - - - -

Revaluation of PPE - - - - - - - -

Impairment of assets - - - - - - - -

Depreciation - - (5,136) (1,193) (981) (209) - -

Closing balance 54,935 24,390 221,531 34,683 4,989 603 424 29

(i) Fair value assessments have been performed for all classes of assets in this purpose group and the decision was made that movements were not

material (less than or equal to 10 per cent) for a full revaluation. The next scheduled full revaluation for this purpose group will be conducted in 2017.




NOTE 8. PROPERTY, PLANT & EQUIPMENT (CONTINUED)

(D) AGGREGATE DEPRECIATION RECOGNISED AS AN EXPENSE DURING THE YEAR

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Buildings (6,413) (1,191) (7,604) (5,136) (1,193) (6,329)

Plant and equipment (1,099) (221) (1,320) (981) (209) (1,190)

Total (7,512) (1,412) (8,924) (6,117) (1,402) (7,519)

RESTRICTED ASSETS

The SSCT holds $337,017 million worth of properties listed as specialised land and specialised buildings. These specialised land and specialised buildings cannot be disposed of without formal ministerial approval.

(F) RECONCILIATION OF LEVEL 3 FAIR VALUE

2014 SPECIALISED LANDSPECIALISED

BUILDINGSPLANT & EQUIPMENT

Opening Balance 79,325 256,214 5,592

Purchases (sales) - 3,930 888

Gains or losses recognised in net result - (8) -

Depreciations - (7,604) (1,320)

Impairment loss - - -

Subtotal 79,325 252,532 5,160

Gains or losses recognised in other economic flows – other comprehensive income - - -

Revaluation - - -

Closing Balance 79,325 252,532 5,160

Unrealised gains/ (losses) on non-financial assets - - -

(E) FAIR VALUE MEASUREMENT HIERARCHY FOR ASSETS AS AT 30 JUNE 2014

($ THOUSAND)CARRYING AMOUNT AS

AT 30-JUN-14FAIR VALUE MEASUREMENT AT END OF

REPORTING PERIOD USING:

Level 1 (i) Level 2 (i) Level 3 (i)

LAND AT FAIR VALUE

Specialised land 79,325 - - 79,325

Total of land at fair value 79,325 - - 79,325


Specialised buildings 252,532 - - 252,532

Total of buildings at fair value 252,532 - - 252,532


Plant and equipment 5,160 - - 5,160

Total of plant, equipment and vehicles at fair value

5,160 - - 5,160

(i) Classified in accordance with the fair value hierarchy, see Note 1(B).

SPECIALISED LAND AND SPECIALISED BUILDINGS

The market approach is also used for specialised land, although is adjusted for the community service obligation

(CSO) to reflect the specialised nature of the land being valued.

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent

that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required

for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and

financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified

as Level 3 assets. For SSCT’s majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the

associated depreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised

buildings are classified as Level 3 fair value measurements.

An independent valuation of the SSCT’s specialised land and specialised buildings was performed by the Valuer General Victoria.

The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2014.

PLANT AND EQUIPMENT

New Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other

than as part of a going concern, fair value is determined using the depreciated replacement cost method.

There were no changes in valuation techniques throughout the period to 30 June 2014.

For all assets measured at fair value, the current use is considered the highest and best use.




NOTE 8. PROPERTY, PLANT & EQUIPMENT (CONTINUED)

(G) DESCRIPTION OF SIGNIFICANT UNOBSERVABLE INPUTS TO LEVEL 3 VALUATIONS

Valuation technique

Significant unobservable inputs

Range (weighted

average) (i)

Sensitivity of fair value measurement to changes in significant unobservable inputs

Specialised land Market approach Community Service

Obligation (CSO) adjustment

75-80% (i)A significant increase or decrease in

the CSO adjustment would result in a significantly lower (higher) fair value

Specialised buildingsDepreciated

replacement costDirect cost

per square metre$3,200 -

$4,000/ m2

A significant increase or decrease in direct cost per square metre adjustment would re-

sult in a significantly higher or lower fair value

Useful life of specialised buildings

15-110 years

A significant increase or decrease in the estimated useful life of the asset

would result in a significantly higher or lower valuation.

Plant & equipmentDepreciated

replacement cost Cost per unit

$8,000–$10,000 per unit

A significant increase or decrease in cost per unit would result in a significantly

higher or lower fair value

Useful life of vehicles3–5 years (3 years)

A significant increase or decrease in the estimated useful life of the asset

would result in a significantly higher or lower valuation.

(i) CSO adjustments ranging from 75% to 80% were applied to reduce the market approach value for SSCT specialised land

NOTE 9. OTHER NON-FINANCIAL ASSETS

Current other assets

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Accrued income 131 - 131 120 - 120

Prepayments 126 13 139 105 16 121

Total 257 13 270 225 16 241

NOTE 10. PAYABLES

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

CURRENT PAYABLES CONTRACTUAL

Trade creditors 1,213 73 1,286 857 56 913

Accrued expenses 928 78 1,006 1,242 122 1,364

Total 2,141 151 2,292 2,099 178 2,277

STATUTORY

Taxes payable 379 69 448 336 61 397

Superannuation payable 221 - 221 160 - 160

Total 600 69 669 496 61 557

Total current payables 2,741 220 2,961 2,595 239 2,834

(A) MATURITY ANALYSIS OF CONTRACTUAL PAYABLES

Please refer to Note 21 (Table 21.5) for the maturity analysis of contractual payables.

(B) NATURE AND EXTENT OF RISK ARISING FROM CONTRACTUAL PAYABLES

Please refer to Note 21 for the nature and extent of risk arising from contractual payables.




NOTE 11. PROVISIONS

MSAC

2014 $ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

CURRENT

Employee benefits (a)

Annual leave

Unconditional and expected to settle within 12 months 265 20 285 232 11 243

Unconditional and expected to settle after 12 months 59 - 59 43 9 52

Long service leave

Unconditional and expected to settle within 12 months 160 - 160 136 - 136

Unconditional and expected to settle after 12 months 95 11 106 79 5 84

Provisions for on-costs

Unconditional and expected to settle within 12 months 77 3 80 70 4 74

Unconditional and expected to settle after 12 months 28 2 30 17 - 17

Life memberships 5 - 5 5 - 5

Total current provisions 689 36 725 582 29 611

NON-CURRENT

Employee benefits (b) 96 2 98 112 1 113

Employee benefit on-costs 17 - 17 20 - 20

Life memberships 9 - 9 11 - 11

Total non-current provisions 122 2 124 143 1 144

Total provisions 811 38 849 725 30 755

(A) CURRENT EMPLOYEE BENEFITS

MSAC

2014 $ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Annual leave 324 20 344 275 20 295

Long Service Leave 255 11 266 215 5 220

(B) NON-CURRENT EMPLOYEE BENEFITS

Long service leave entitlements 96 2 98 112 1 113

Total employee benefits 675 33 708 602 26 628

Current Employee benefit on-costs 105 5 110 87 4 91

Non-current Employee benefit on-costs 17 - 17 20 - 20

Total on-costs 122 5 127 107 4 111

Total employee benefits and on- costs 797 38 835 709 30 739




NOTE 11. PROVISIONS (CONTINUED)

(C) MOVEMENT IN PROVISIONS

($ THOUSANDS) ON-COSTS 2014 TOTAL 2014

Opening balance 111 111

Additional provisions recognised 16 16

Reductions arising from payments/other sacrifices of future economic benefits - -

Unwind of discount and effect of changes in the discount rate - -

Closing balance 127 127

Current 19 19

Non-current (3) (3)

Total 16 16

(D) PROVISIONS FOR ANNUAL LEAVES AS AT 30 JUNE 2014

CURRENT PROVISIONSOLD

MEASUREMENT NEW

MEASUREMENT

Employee benefits – annual leave:

Unconditional and expected to be paid within 12 months 285 285

Unconditional and expected to be paid after 12 months 62 59

Total 347 344

NOTE 12. OTHER LIABILITIES

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Deferred revenue 990 44 1,034 822 38 860

Security deposits - - - - - -

Advancement 4,522 - 4,522 4,522 - 4,522

Total 5,512 44 5,556 5,344 38 5,382

NOTE 13. LEASES

DISCLOSURE OF OPERATING LEASES

Operating lease receivablesOperating lease receivables relate to 19 tenants (20 in 2012-13) within the Trust's precinct with lease terms between 2 years to 20 years

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Receivable no later than one year 199,295 - 199,295 234,063 - 234,063

Later than one year and not later than five years 438,194 - 438,194 853,635 - 853,635

Later than five years 564,265 - 564,265 600,625 - 600,625

Total 1,201,754 - 1,201,754 1,688,323 - 1,688,323




NOTE 14. RESERVES

PHYSICAL ASSET REVALUATION SURPLUS

The physical asset revaluation surplus is used to record increments and decrements

on the revaluation of non-financial assets, as described in Note 1 (i).

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Balance at beginning of financial year 78,732 39,044 117,776 78,732 39,044 117,776

Revaluation increments during the year - - - - - -

Balance at end of financial year 78,732 39,044 117,776 78,732 39,044 117,776

NOTE 15. COMMITMENTS

CAPITAL

The following commitments have not been recognised as liabilities in the financial statements. All amounts shown in the commitments note

are nominal amounts inclusive of GST. SSCT has $668,195 commitments for capital works at the date of this report. These commitments will

be paid within one year period.

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Not later than one year 667 1 668 424 29 453

Total 667 1 668 424 29 453

NOTE 16. CASH FLOW INFORMATION

(A) RECONCILIATION OF CASH AND CASH EQUIVALENTS CASH FLOWS, CASH INCLUDES:

MSAC 2014

$ ‘000

SNHC 2014

$ ‘000

SSCT 2014

$ ‘000

MSAC 2013

$ ‘000

SNHC 2013

$ ‘000

SSCT 2013

$ ‘000

Cash at bank and on hand 3,805 1,027 4,832 2,479 287 2,766

Term deposits 1,600 600 2,200 2,300 300 2,600

Total 5,405 1,627 7,032 4,779 587 5,366

(B) RECONCILIATION OF NET RESULT FOR THE PERIOD

Net result for the period (8,195) (803) (8,998) (5,667) (871) (6,538)

NON-CASH MOVEMENTS:

Depreciation of property, plant & equipment 7,512 1,412 8,924 6,116 1,403 7,519

Net loss on disposal of property, plant & equipment

8 - 8 - - -

Net loss on disposal of investment - - - - - -

MOVEMENTS IN ASSETS AND LIABILITIES:

Decrease in receivables 156 16 172 1,568 18 1,586

Decrease/(Increase) in inventories 161 (1) 160 (53) 9 (44)

(Increase)in other assets (32) 3 (29) (71) (12) (83)

Increase in provisions 86 8 94 122 2 124

Increase in payables 146 (19) 127 687 (79) 608

Increase in other liabilities 774 7 781 421 8 429

Net cash flows from operating activities 616 623 1,239 3,123 478 3,601




NOTE 17. RESPONSIBLE PERSONS

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994,

the following disclosures are made regarding responsible persons for the reporting period.

The persons who held the positions of Minister, Board Members and Accountable Officer of SSCT at any time during the

reporting period were as follows:

Responsible Minister:

The Honourable Damian Drum, MP (appointed 17 March 2014)

The Honourable Hugh Delahunty, MP (until 17 March 2014)

Minister for Sport, Recreation and Veterans’ Affairs

Members of the SSCT:

Mr. Michael Taylor – Chairman (appointed Chairman 17 September 2013)

Mr. Bruce Mildenhall Chairman (until 20 August 2013)

Mr. Brett Moore

Mr. Andrew Fried

Ms. Nicole Livingstone

Ms. Gaye Hamilton

Ms. Leigh Russell

Ms. Danni Roche (appointed 01 July 2013)

Remuneration relating to the Minister is included in the financial statements of the Department of Premier and Cabinet. Remuneration of

Board Members and Accountable Officer are included below in the remuneration of responsible persons.

Remuneration received or receivable by the accountable officer in connection with the management of the Department during the reporting

period was in the range: $300,000 – $400,000 ($300,000 – $400,000 in 2012-13)

Accountable Officer:

Mr. Simon Weatherill Chief Executive Officer

(B) REMUNERATION OF EXECUTIVE OFFICERS

The number of executive officers, other than the Minister, Board Members and Accountable Officer who are included in remuneration

of responsible persons, and their total remuneration during the reporting period are shown in the table below in their relevant income

bands, where greater than $100,000. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy

payments and retirement benefits.

TOTAL REMUNERATION BASE REMUNERATION

REMUNERATION RANGE: 2014 2013 2014 2013

<$100,000 2 - 2 -

$110,000 - $119,999 - - - -

$120,000 - $129,999 - 1 - 1

$130,000 - $139,999 - - - 1

$140,000 - $149,999 - 1 1 -

$150,000 - $159,999 1 1 1 1

$160,000 - $169,999 - - - -

$170,000 - $179,999 1 - - -

$180,000 - $189,999 - - - 1

$200,000 - $209,999 - 1 1 -

$230,000 - $239,999 1 - - -

Total numbers 5 4 5 4

Total remuneration $661,069 $626,334 $611,863 $594,849 (A) REMUNERATION OF RESPONSIBLE PERSONS

The number of responsible persons whose income from the SSCT during the reporting period falls within the following bands is:

REMUNERATION RANGE: 2014 2013

$0 - $9,999 1 1

$10,000 - $19,999 7 5

$20,000 - $29,999 - 1

$310,000 - $ 319,999 - 1

$320,000 - $ 329,999 1 -

Total numbers 9 8

Total remuneration received, or due and receivable by Responsible Persons

Total remuneration $412,847 $393,817




PAID CONTRIBUTIONS FOR THE YEAR

CONTRIBUTIONS OUTSTANDING FOR THE YEAR

TOTAL

DEFINED CONTRIBUTION PLANS:2014

$ ‘0002013

$ ‘0002014

$ ‘0002013

$ ‘0002014

$ ‘0002013

$ ‘000

VicSuper 500 342 139 105 639 447

Hostplus Super 67 32 22 12 89 44

AustralianSuper 46 21 18 7 64 28

Rest Superannuation 37 28 11 2 48 30

Other funds 180 102 31 31 211 133

Total superannuation 830 525 221 157 1,051 682

NOTE 18. SUPERANNUATION

Employees of the SSCT are entitled to receive superannuation benefits. Contributions are made to the VicSuper Fund as the SSCT’s default

fund, and to other funds elected by employees under Super choices legislation. Superannuation contributions paid or payable for the

reporting period are included as part of employee expenses in the comprehensive operating statement of SSCT.

The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by SSCT are shown

in the table below. Other funds represent all other employee funds with a total contribution made below $10,000 for the year.

NOTE 19. REMUNERATION OF AUDITORSAudit fees paid or payable to the Victorian Auditor-General’s Office (VAGO) for the audit of the SSCT’s financial report is set out below in the

following table:

SSCT 2014 $ ‘000 SSCT 2013 $ ‘000

Audit of the financial report 37 36

Total 37 36

NOTE 20. CONTINGENT ASSETS AND CONTINGENT LIABILITIESa. Contingent assets.

There were no contingent assets as at 30th June 2014 (2013: nil).

b. Contingent liabilities.

SSCT has $203,001 contingent liabilities at the date of this report, due to the retainer of the Energy Performance contract project.

The payments will be based on the conditions as outlined in the contract.

NOTE 21. FINANCIAL INSTRUMENTS

(A) FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

SSCT’s principal financial instruments comprise of:

• cash and deposits

• receivables (excluding statutory receivables)

• payables (excluding statutory receivables)

• other liabilities.

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement,

and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity

instrument are disclosed in Note 1 to the financial statements.

The main purpose in holding financial instruments is to prudentially manage the SSCT’s financial risks within the Government policy

parameters. The SSCT’s main financial risks include credit risk, liquidity risk, interest rate risk, foreign currency risk and equity price risk.

The SSCT manages these financial risks in accordance with its financial risk management policy.

The carrying amounts of the SSCT’s contractual financial assets and liabilities by category are shown below in table 21.1.

CONTRACTUAL FINANCIAL ASSETS LOANS AND RECEIVABLES $’000

CONTRACTUAL FINANCIAL LIABILITIES AT AMORTISED

COST $’000 TOTAL $‘000

2014

CONTRACTUAL FINANCIAL ASSETS

Cash and deposits 7,032 - 7,032

Receivables 345 - 345

Total contractual financial assets 7,377 - 7,377

CONTRACTUAL FINANCIAL LIABILITIES

Payables - 2,292 2,292

Other liabilities - 5,556 5,556

Total contractual financial liabilities - 7,848 7,848

Table 21.1: Categorisation of financial instruments




Table 21.1: Categorisation of financial instruments (Continued)

CONTRACTUAL FINANCIAL ASSETS LOANS AND RECEIVABLES $’000

CONTRACTUAL FINANCIAL LIABILITIES AT AMORTISED

COST $’000 TOTAL $‘000

2013


Cash and deposits 5,366 - 5,366

Receivables 517 - 517

Total contractual financial assets 5,883 - 5,883


Payables - 2,277 2,277

Other liabilities - 5,382 5,382

Total contractual financial liabilities - 7,659 7,659

The net holding gains or losses disclosed below in table 21.2 are determined as follows:

• For cash and cash equivalents, loans and receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the

interest income, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment

recognised in the net result;

• For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign

exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost; and

• For financial assets and liabilities that are held-for-trading or designated at fair value through profit or loss, the net gain or loss is

calculated by taking the movement in the fair value of the financial asset or liability.

NET HOLDING GAIN / (LOSS)

$’000

TOTAL INTEREST INCOME/(EXPENSE)

$’000

FEE INCOME/(EXPENSE)

$’000

IMPAIRMENT LOSS $’000

TOTAL $’000

2014 CONTRACTUAL FINANCIAL ASSETS

Financial assets - Loans and receivables

- 132 - - 132

Total contractual financial assets - 132 - - 132


Financial assets - Loans and receivables

- 219 - - 219

Total contractual financial assets - 219 - - 219

(B) CREDIT RISK

Credit risk arises on the contractual financial assets of the SSCT, which comprises cash and deposits, non-statutory receivables,

available-for-sale contractual financial assets and derivative instruments. Credit risk exposure in relation to each class of recognised

financial asset arises from the potential default of counter party on their contractual obligations resulting in financial loss to the SSCT.

Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with contractual financial assets is deemed insignificant as it is policy of the SSCT to only deal with major banking

institutions and entities with high credit ratings, and to obtain collateral or credit enhancements where appropriate. Credit risk in trade

debtors is managed by payment terms of 30 days and sound debt collection policies and procedures. The SSCT does not engage in

hedging for its financial assets.

Provision for impairment of financial assets is calculated based on past experience, and current and expected changes in

client credit ratings. As at reporting date there is no event to indicate that any of the financial assets were impaired.

Currently SSCT does not hold any collateral as security nor credit enhancements relating to its financial assets, nor have any

financial assets had their terms renegotiated so as to prevent them from being past due or impaired.

The following table 21.3 discloses the credit quality of contractual financial assets and table 21.4 discloses the ageing analysis

of contractual financial assets:

NOTE 21. FINANCIAL INSTRUMENTS (CONTINUED)

Table 21.2: Net holding gain/(loss) on financial instruments by category




FINANCIAL INSTITUTION (AA- CREDIT

RATING)

GOVERNMENT AGEN-CIES (AAA CREDIT

RATING) $’000

GOVERNMENT AGENCIES

(BBB CREDIT RATING) $’000

OTHER (MIN BBB CREDIT

RATING) $’000

TOTAL $’000


Cash and deposits 2,132 2,900 - 2,000 7,032

Receivables - Trade debtors

- - - 329 329

Receivables - Interest receivable

12 4 - 16

Total contractual financial assets 2,144 2,904 - 2,329 7,377


Cash and deposits 3,319 2,000 - 47 5,366


- - - 487 487


29 1 - - 30

Total contractual financial assets 3,348 2,001 - 534 5,883

Table 21.3: Credit quality of contractual financial assets that are neither past due nor impaired


Table 21.4: Ageing analysis of contractual financial assets

PAST DUE BUT NOT IMPAIRED

CARRYING AMOUNT

$’000

NOT PAST DUE AND NOT IMPAIRED

$’000

LESS THAN 1 MONTH

$’000

1 -3 MONTHS $’000

3 MONTHS - 1 YEAR

$’000

1 - 5 YEARS $’000

2014

Cash and deposits 7,032 7,032 - - - -


329 - 257 29 43 -


16 - 16 - - -

Total 7,377 7,032 273 29 43 -

2013

Cash and deposits 5,366 5,366 - - - -


487 - 352 109 26 -


30 - 30 - - -

Total 5,883 5,366 382 109 26 -

(C) LIQUIDITY RISK

Liquidity risk is the risk that SSCT would be unable to meet its financial obligations as and when they fall due. The SSCT’s exposure

to liquidity risk is deemed insignificant as it is policy of the SSCT to settle financial obligations within 30 days, and in the event of a

dispute, make payments within 30 days from the date of resolution. Exposure to liquidity risk is assessed based on past experience,

and current assessment of risk, through monitoring future cash flows and maturities planning to ensure adequate holdings of high

quality liquid assets are available and dealing in highly liquid markets. Cash for unexpected events is generally sourced from liquidation

of available financial investments.

The following table 21.5 discloses the contractual maturity analysis of contractual financial liabilities.




Table 21.5: Maturity analysis of contractual financial liabilities

PAST DUE BUT NOT IMPAIRED

CARRYING AMOUNT

$’000

NOMINAL AMOUNT $’000

LESS THAN 1 MONTH

$’000

1 -3 MONTHS $’000

3 MONTHS - 1 YEAR

$’000

1 - 5 YEARS $’000

2014

Payables 2,292 2,292 - - - -

Other liabilities 5,556 5,556 - - - -

Total 7,848 7,848 - - - -

2013

Payables 2,277 2,277 - 2,277 - -

Other liabilities 5,382 5,382 - 860 400 4,122

Total 7,659 7,659 - 3,137 400 4,122

(D) MARKET RISK

The SSCT’s exposures to market risk, including interest rate risk and foreign currency risk are insignificant.

Objectives, policies and processes used to manage each of these risks are disclosed below.

Foreign currency risk

The SSCT is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and

consumables from overseas. This is because of the limited amount of purchases denominated in foreign currencies

and the short timeframe between commitment and settlement. The SSCT manages its risk through cash flow planning

and monitoring on a foreign currency transaction basis. Based on past and current assessment of economic outlook,

it is deemed unnecessary for the SSCT to enter into any hedging arrangements to manage the risk.

The SSCT has no exposure to foreign currency risk as at 30 June 2014.


WEIGHTED AVERAGE

EFFECTIVE INTEREST RATE %

FIXED INTEREST RATE

$’000

VARIABLE INTEREST RATE

$’000

NON-INTEREST BEARING

$’000

CARRYING AMOUNT

$’000

2014 FINANCIAL ASSETS

Cash and deposits 3% 2,200 4,791 41 7,032

Receivables N/A - 16 329 345

Total financial assets N/A 2,200 4,807 370 7,377

FINANCIAL LIABILITIES

Payables - - - 2,292 2,292

Other liabilities - - - 5,556 5,556

Total financial liabilities N/A - - 7,848 7,848

Table 21.6: Interest rate exposure of financial instruments

(D) MARKET RISK (CONTINUED)

Interest rate risk

The SSCT’s exposure to interest rate risk arises through financial asset holdings held at variable interest rates. The SSCT has minimal

exposure to cash flow interest rate risks through its cash and deposits, and investments that are held at floating rate.

The SSCT manages this risk by monitoring movements in interest rates on a regular basis and has concluded that due to the amounts,

financial assets can be left at floating rate without necessarily exposing the SSCT to significant bad risk.

Taking into account past performance, future expectations, economic forecast and management’s knowledge and experience of the

financial markets, the SSCT believes the following movements are reasonably possible over the next 12 months, assuming a parallel shift

of one percent (100 basis points) in market interest rates from year-end.

The SSCT’s exposure to interest rate risk is disclosed in the following tables 21.6 and 21.7:




WEIGHTED AVERAGE

EFFECTIVE INTEREST RATE %

FIXED INTEREST RATE

$’000

VARIABLE INTEREST RATE

$’000

NON-INTEREST BEARING

$’000

CARRYING AMOUNT

$’000

2013 FINANCIAL ASSETS

Cash and deposits 5% - 5,319 47 5,366

Receivables N/A - 30 487 517

Total financial assets N/A - 5,349 534 5,883

FINANCIAL LIABILITIES

Payables N/A 2,292 - 2,277 2,277

Other liabilities N/A - - 5,382 5,382

Total financial liabilities N/A 2,292 - 7,659 7,659

Table 21.6: Interest rate exposure of financial instruments (Continued)


Table 21.7: Market risk exposure – Interest rate

INTEREST RATE RISK

CARRYING AMOUNT $’000

-1% NET RESULT $’000

-1% EQUITY $’000

+1% NET RESULT $’000

+1% EQUITY $’000

2014

Cash and deposits 7,032 (70) (70) 70 70

Total (decrease)/increase

7,032 (70) (70) 70 70

2013

Cash and deposits 5,366 (54) (54) 54 54

Total (decrease)/increase

5,366 (54) (54) 54 54

(E) FAIR VALUE

The fair values and net fair values of financial instrument assets and liabilities are determined as follows:

• Level 1 - the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are determined

with reference to quoted market prices;

• Level 2 - the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either

directly or indirectly; and

• Level 3 - the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis

using unobservable market inputs.

SSCT considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to

be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they

will be paid in full. The following table 21.8 shows that the fair value of the contractual financial assets and liabilities are the same as the

carrying amounts.

CARRYING AMOUNT 2014 $’000

FAIR VALUE 2014 $’000

CARRYING AMOUNT 2013 $’000

FAIR VALUE 2013 $’000


Cash and deposits 7,032 7,032 5,366 5,366

Receivables 345 345 517 517

Total contractual financial assets

7,377 7,377 5,883 5,883


Payables 2,292 2,292 2,277 2,277

Other liabilities 5,556 5,556 5,382 5,382

Total contractual financial liabilities

7,848 7,848 7,659 7,659

Table 21.8: Comparison between carrying amount and fair value

STATE SPORT CENTRES TRUST 2013-2014 ANNUAL REPORT4 3

aSIGNATURE

In accordance with a resolution of the Trustees of the State Sport Centres Trust, we state that in our opinion:

a) the information set out in the Comprehensive Operating

Statement, Balance Sheet, Statement of Changes in Equity,

Cash Flow Statement and notes forming part of the financial

statements, presents fairly the financial transactions of the Trust

during the financial year ended 30 June 2014 and the financial

position of the Trust as at 30 June 2014;

b) the attached financial statements for the Trust have been

prepared in accordance with Standing Direction 4.2 of the

Financial Management Act 1994, applicable Financial Reporting

Directions, Australian accounting standards and other mandatory

professional reporting requirements; and

c) at the date of this report we are not aware of any circumstances

which would render any particulars included in the financial

statements to be misleading or inaccurate.

Mr. Michael Taylor

Chairman


Mr. Simon Weatherill

Chief Executive Officer and Accountable Officer


Mr. Darren Rattle

Chief Finance and Accounting Officer


Melbourne

Date: 28th August 2014

Certification

STATE SPORT CENTRES TRUST Box 1, Aughtie Drive Albert Park VIC 3206

T +61 3 9926 1555 F +61 3 9926 1666

www.ssct.com.au

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