emerald tourist railway board annual report2016 · 2016-10-12 · emerald tourist railway board...

EMERALD TOURIST RAILWAY BOARD

annual report

Puffing Billy – a great place to volunteer!PHOTO: KAREN GUNN

2016

PUFFING BILLY RAILWAYANNUAL PATRONAGE 1962–2016

250,000200,000150,000100,00050,0000 300,000

1962-631963-641964-651965-661966-671967-681968-691969-701970-711971-721972-731973-741974-751975-761976-771977-781978-791979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-991999-002000-012001-022002-032003-042004-05

238,199244,851

259,185256,091

237,747247,181

231,659238,388237,508

198,649200,448

210,864241,401

221,055188,785

173,927187,006

161,783172,192

176,403172,376

146,172166,138164,291

178,233167,062169,952168,312

162,161164,848

156,307145,233

134,681125,312

109,927103,687102,080

115,965124,292

108,841101,291

126,863

248,8522005-06 245,0882006-072007-082008-092009-10

255,619267,246

250,500259,487

2010-11 268,9842011-12 267,7282012-13 284,5362013-14 304,672

350,000

2014-15 349,790

400,000

2015-16 417,155

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Puffing Billy is Australia’s foremost operating steam railway, and one of thelargest steam and heritage railways in the world. Its history spans a period of

116 years. Remarkably, for more than half that span, it has operated as avolunteer-based not-for-profit body. It operates up to seven trains a day, everyday except Christmas Day and it has carried 417,155 patrons in the currentfinancial year – an all-time record.

The narrow gauge line between Belgrave and Gembrook survives as one of themost intact examples of pioneering railway infrastructure in Australia. Its steeplygraded banks, trestle bridges, line-side telegraph, signalling and rolling stock areof an era elsewhere supplanted by more modern technology. This railway takesseriously its ‘Era of Significance’, from 1900 to 1930, and its guidingphilosophy has held it in good stead.

The 2’6” gauge line to Gembrook opened in 1900, initially to carry produce,livestock and timber to Ferntree Gully, where the freight was transferred tobroad gauge trains. However, it quickly became a great favourite ofMelburnians, seeking a leisurely way of visiting ‘the hills’. The Railway closed in1954 after a major landslide near Menzies Creek, and a succession of ‘YoungSun’ specials was organised by the Melbourne daily newspaper to farewell theRailway. The success of these specials brought about the formation of thePuffing Billy Preservation Society, which quickly reopened the Railway for thepublic to enjoy.

This year, the Railway is recognising the tremendous contribution of itsvolunteers. With an exceptionally lengthy fire season, many of the Railway’svolunteers worked tirelessly over a long, hot summer.

Puffing Billy offers a unique volunteer experience. It is recognised throughoutthe country for its quality, dedication and diversity of community-mindedpeople who operate the iconic railway through the scenic Dandenong Ranges

In 1977, the Emerald Tourist Railway Board was formed pursuant to theEmerald Tourist Railway Act, as a means of taking over the infrastructurepreviously owned by the Victorian Railways.

The masterstroke, so critical to maintaining the support base, was to interlockthis Board with the Puffing Billy Preservation Society. The Board is responsiblefor corporate governance and management of the business whilst the Societyprovides financial support and people power as well as a significant proportionof the Railway’s knowledge base.

We are pleased to present this, the thirty-ninth Annual Report of the EmeraldTourist Railway Board.

what is?PUFFING BILLY


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MEMBERS OF THE BOARD

Chairman

Ray Leivers has a degree in agricultural science, was a Director of Catchment & Land Management,and was General Manager at Phillip Island Nature Park and Falls Creek Alpine Resort beforebecoming CEO at Emerald Tourist Railway Board from 2002 to 2006.

Deputy Chairman

Robert Cochrane is a former teacher and education manager, with a wide range of experience inboth Victoria and the Northern Territory. He holds degrees in both Arts and Education. He is a veryactive volunteer at Puffing Billy, regularly performing a varied range of operational roles.

Other Members

John Brady is a Chartered Professional Engineer owning and managing a business that providesmechanical and engineering consulting services to industry. John is a Fellow of the Institution ofEngineers (retired), Australia. He has been an active volunteer at Puffing Billy for many years, and ison the Project Governance Committee.

Jean Clowes is Vice President of Puffing Billy Preservation Society and has been involved withPuffing Billy for more than twenty-five years, as a volunteer, and as an employee for the lastseventeen years. Currently she is the Passenger Business Manager, responsible for managing volunteerstation masters, conductors, and booking office staff, as well as customer service and cleaning staff.

David Eaton is President of the Upwey/Belgrave RSL, a member of the Dandenong Ranges GardensAdvisory Committee, a life member of Victorian Tourism Industry Council and a mentor forVictorian Tourism Awards. Previously he was Marketing Manager of Puffing Billy Railway from1989 to 2009, and was also Chairman of the Victorian Tourism Operators Association.

Rex Kingham is a Fellow of the Australian Society of Certified Practising Accountants (FCPA) and aFellow of the Chartered Secretaries Australia (FCSA) Due to service in the then CMF and now ArmyReserve he holds the Reserve Force Decoration (RFD), retiring with the commissioned rank ofMajor. He is currently Secretary of the Puffing Billy Preservation Society. Before retirement, Rexworked for a major listed company as a project/management accountant, and then was in business forhimself.

Adrian Ponton has worked in the rail industry for more than 40 years and brings broad experience in rail operations, logistics, project management and rail safety accreditation. He is currently the Registrar, Tourist and Heritage Railways. He is a Member of the Institute ofRailway Signalling Engineers and Australian Institute of Company Directors. He has also been avolunteer at Puffing Billy.Jacquie Prentice was appointed to the Board in December 2015. Jacquie has a Bachelor of BusinessHospitality Management, Graduate Diploma of Business Hospitality Management and AdvancedManagement Program from Melbourne Business School. With more than 20 years’ experience inhotel management, she is recognised throughout the industry for her flair in project and facilitymanagement. Jacque has been a past Vice President and National Board Member of the Hotel, Moteland Accommodation Association of Victoria (Australia). She continues to remain active outside ofPuffing Billy, being the owner of Float Projects, as well as representing Tourism Victoria as anAwards judge.

board & management


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Members of the Board as at 30 June 2016 were:Chairman R.L. Leivers Dip. Ag.Sci., B. Ag. Sci (Hons).Deputy Chairman R.S. Cochrane* BA, B. Ed., TTC.Members J.R. Brady* FIE Aust CPEng. (retired)

J.L. Clowes*D.L. EatonR.W. Kingham* RFD, FCSA, FCPA, FCIS.A.J. PontonJ. Prentice

Secretary to the Board: D. G. Parbery B.Sc. Agr. (Syd.), M. Agr. Sc. (Qld.), Ph.D. (Melb.)

* = nominated by the Puffing Billy Preservation Society (PBPS).All Board Members, and the Secretary, serve in an honorary capacity.

COMMITTEES AND OFFICERS OF THE BOARDThe Audit and Remuneration Committee, as at 30 June 2016 comprised the following:

Chairman R.W. KinghamMembers R.L. Leivers, D.L. Eaton, A.J. Ponton

The Rail Safety Management Systems CommitteeMembership and Officers are the same as the Board as at 30 June 2016

The Heritage Advisory Committee, as at 30 June 2015 comprised the following:Chairman A.D. Rayment.Members M. Bracher, R.S. Cochrane, B. Saunders,

G. Tasker, J.E. Thompson Senior Managers Group as at 30 June 2016

Chief Executive Officer J.A. Robinson* FCAManager, Compliance & Strategy R.D. Bowen* CA, CPA (Canada)Manager, Finance & Administration M. Jouvelet* CPAManager, Operations & Engineering J.F. Hoy*Manager, Passenger Services J.L. Clowes*Manager, Marketing N.M. Hutchins*Manager, Commercial A. Williams*Manager, Way & Works J.M. Bell*Manager, Training D.M. Gadsden*

Management Officers as at 30 June 2016Manager, Special Events M.J. Collopy*Manager, Traffic B. McKenzie*Manager, Volunteer Coordinator S.L. Ham*Manager, Menzies Creek Museum D. Baker* Manager, Signals & Telegraph A.D. WheatlandManager, Information Technology Systems J.G. Jacobe*Manager, Rail Safety and Accreditation A.D. Marshall

* Staff Managers, other Members serve in an honorary capacity.


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The Board has partaken in another busy year, underpinned by a successive year of recordpassenger growth of more than 19%.

Emerald Tourist Railway Board’s (ETRB’s) success in accommodating high visitor numbers wonthe organisation substantial recognition, receiving a Trip Advisor award from our customers’feedback. The acknowledgment is a tribute to the innovation of the staff’s stewardship of thePuffing Billy enterprise, and to the dedicated volunteers who are the face of the railway every day.

Much of the year has been devoted to the development of the Master Plan. This document plotsthe future path of the Railway’s needs, addressing and accommodating the impact of increasedpassenger numbers, whilst retaining the aesthetics and heritage values of the railway and itssurrounding environment. The Blueprint is a comprehensive plan of the works needed for:1. Better facilities for our customers.2. Improved working conditions for our volunteers and staff.3. Places for our assets to be stored and secured along the railway.4. The ability to improve utilisation of the Lakeside to Gembrook section of the railway.5. Engagement of key community groups, local councils and government departments.

Looking towards the future, the Board has provided funds for a number of key railway projects. The details of these are outlined in the Finance reports.

The Board has committed to rejuvenation of the ETRB’s Business Case. This document willsupport the proposed Master Plan, and will assist with future planning.

The Board has provided feedback to the State Government on the proposed new Parliamentary Actto replace the 1977 Emerald Tourist Railway Board legislation, which is out of date.

I would like to thank all of our volunteers and staff for their support and hard work throughout the year.

I would also like to welcome Jacquie Prentice to the Board. Jacquie’s experience and knowledge hasalready made a significant contribution to the organisation.

I would also like to thank my fellow Board members for their contribution and support. It has beenan extremely busy, yet rewarding year.

Ray Leivers, Chairman

chairman’s report


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For the fourth consecutive year, the railway has established a new patronage record, with 417,155passengers experiencing a day on the Puffing Billy Railway.

This represents growth of over 19% on the previous year’s growth of 15%. In two years the railwayhas grown by over a third. Growth in the international market continues to be the main driver ofincreased patronage, with China, Taiwan, Korea, India, Malaysia, Indonesia and Singapore beingstrong contributors to the result.Rapid growth has now resulted in a number of capacity constraints which, if not addressed, willeventually inhibit our ability to meet anticipated future growth demands.The Board and Management have responded by undertaking a Strategic Master Plan for the futuredevelopment of the railway, which is a key Victorian tourist attraction.The Master Plan is designed to ensure key focus on initiatives required to safeguard long termsustainability, enhance the visitor experience, protect the environment and provide adequate longterm facilities for staff and volunteers. The Master Plan will broadly address the key elements of railinfrastructure, maintenance and management facilities, visitor facilities, volunteer facilities,environment management and integration with surrounding townships. Increased profitability resulting from this growth has enabled the Board to undertake some urgentlyrequired capital works. However the Board now requires urgent funding assistance for a number ofprojects beyond the financial resources of the Board to ensure that Puffing Billy remains at theforefront of major Victorian tourist attractions. With the assistance of a federally funded environment grant we have made some good progress onenvironment protection works but much remains to be done.For the fourth consecutive year we have been awarded a ‘Trip Advisor Excellence Award’, which isan ongoing tribute to all volunteers and staff who continue to provide high levels of service to ourgrowing customer base. In addition we were awarded ‘Bronze’ in the major tourist attractioncategory of the 2015 Victorian Tourism Awards. The past twelve months have been the most successful in our history and is a tribute to all staff andvolunteers who have worked tirelessly to meet and overcome the many challenges that rapid growthof the business have presented to us all.Our continued success is due in no small measure to the strong sense of teamwork andcommitment which is evident in our daily operations and I congratulate everyone for the part theyhave played in ensuring that Puffing Billy remains a much loved and ‘must do’ major touristattraction for Victoria.

John Robinson, CEO

ceo’s report


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Pursuant to the provisions of the Financial Management Act 1994 and the Audit Act 1994, theBoard presents its Annual Report in respect of the year ending 30 June 2016. The report is

prepared in accordance with all Victorian legislation.The Year’s OperationsPatronage for 2016 (the fifty-fourth year of operation since re-opening in 1962) was 417,155 – anincrease of 67,365 (19.14 percent) on 349,790 in 2015. This is the highest number of passengers ina single year in the Railway’s history for the fourth consecutive year. The Railway ran trains every day (except Christmas day and two extreme fire alert days inDecember) and completed 1,891 revenue earning return trips (2015 – 1,788 trips). Trips includedscheduled daily excursion trains, charter trains, lunch time Steam and Cuisine trains, DinnerTrains, ‘Day out with Thomas’ trains, Murder Mystery and Jazz trains, Footplate Experience trains,and various special events trains.Ninety-one percent of train kilometres, including non-passenger train kilometres, were steamhauled (also ninety-one percent in 2015). Non-steam-train kilometres were mostly diesel-hauledworks trains, and diesel-hauled passenger trains operating on ‘Total Fire Ban’ days during the fireseason. Also some trains that ran beyond Lakeside during the driest part of the fire season werediesel-hauled to reduce fire risk. Total train kilometres travelled for 2015 were 50,446 up 2.7percent on the 49,109 kilometres travelled in 2015.FinancialThe operations of the Board after depreciation and grants resulted in a Net Profit for the year of$2,423,937 compared with a Net Profit of $1,026,097 in the previous year. Surplus beforedepreciation and grants was $3,604,774 compared with $2,174,500 in the previous year. Grants from Victorian Government bodies:During the 2016 year the Board received no State government grants (2015 – $40,000 from theDepartment of Economic Development, Jobs, Transport and Resources). However, Federal fundingof $225,000 was received from the Port Phillip and Westernport CMA to assist with themaintenance of Puffing Billy’s green rail corridor. The result was achieved on gross income of $13,239,036 (2015 – $10,503,090) less totalexpenditure of $10,815,098 (2015 – $9,481,193) and represents a return of 4.02 percent (2015being 1.99 percent) on equity of $60,331,775 (2015 – $51,565,138).Income earned by the Railway, (which consists of excursion fares, revenue from dining trains, ‘Dayout with Thomas’ weekends, special events, and shop revenue), increased by twenty-six percent, dueto a combination of greater passenger numbers and fare increases. Revenue per passenger hasincreased by five percent, from $25.48 to $26.72. The main reason for this was due to an averagefive percent increase in regular excursion train fares in July 2015. The favourable uplift in retailmargins was driven by the improvement in shop sales. This was predominately due to the openingof the Lakeside tearooms. There were also volume increases in most premium product categories.Steam and Cuisine revenue increased by thirty-five percent while the Night Train ticket salesincreased by a further seven percent.

year in reviewAND FINANCIAL STATEMENTS


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Total expenses year-on-year increased by fourteen percent, compared to the twenty-six percentgrowth in revenue growth. The Puffing Billy Preservation Society provided grants totalling $247,449 (2015 – $250,768) foron-going restoration of Garratt locomotive NGG16-129.Asset RevaluationsEmerald Tourist Railway Board performed a major non-financial asset review this financial year.With the assistance of the Victorian Valuer General, all major categories of asset were assessed forboth their fair value for reporting purposes, and their replacement values for insurance. Thesevaluations lead to an increase of over $6.3 million in the fixed asset revaluation reserve. Capital ExpenditureCapital works expenditure in the current year increased by $203,000, from $1,071.000 to$1,274,000. Capital works expenditure in the current year, funded internally or by the Puffing Billy PreservationSociety included:d On-going restoration of Garratt locomotive NG/G16-129. d The successful development and rollout of the four Gator rail trolleys.d Installation of a larger generator at Belgrave.d The completion of the Lakeside tea rooms and storage rooms.d The purchase and refit of the new finance building. d The acquisition of a parcel of land in Gembrook for the development of future engineering

facilities. During the year, cash or cash equivalents and liquid investments decreased by $854,000 (2015 –$820,000 increase). Term deposits increased by $2,334,272 (2015 increased by $299,423). Operating statistics for the past five years are listed hereunder:

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016Passengers 267,728 284,536 304,672 349,790 417,155Fare Revenue $5,654,000 $6,264,000 $7,172,000 $8,914,000 $11,146,000Days Operated 365 363 363 363 362Revenue Trips 1,577 1,586 1,702 1,788 1,891Fare Revenue per Passenger $21.10 $22.00 $23.54 $25.48 $26.72Total Assets $49,421,720 $51,138,190 $52,668,443 $53,366,443 $60,331,773Total Liabilities $1,615,405 $1,867,395 $2,129,401 $1,801,305 $2,191,505(Note: The railway did not operate trains to Gembrook on weekdays from May to August except for school and public holidays).Human ResourcesPaid staff numbers Full Time Permanent Part Time TotalAs at 1 July 2015 39 16 55Commenced during year 4 1 5

Sub Totals 43 17 60Departures 2 – 2

As at 30 June 2016 41 17 58

In addition, averages of 25 casual employees were engaged to assist with seasonal peaks (2015 – 20).


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Health and SafetyDuring the year 211 staff days were lost as a result of minor industrial accidents and ailments. None of the accidents or ailments was related to rail safety. The Railway has a Health and Safety Committee, made up of staff and volunteers from all areas ofthe Railway, which meets several times a year to discuss current health and safety matters.

Volunteers, Training and Community

VolunteersPuffing Billy’s volunteers account for 91% of the workforce. The Railway operates with hundredsof passionate volunteers, who give their time willingly and freely to ensure all passengers and visitorshave an enjoyable and memorable day. Volunteers are involved in every aspect – administrative support, special events (examples being the‘Day out with Thomas’ events and The Great Train Race) driving the trains, restoring the heritagecarriages, maintaining buildings and infrastructure along the Railway, and selling the Railway’scommercial retail offering to its patrons. Puffing Billy is one of the largest volunteer organisations in Victoria. The organisation has morethan 900 people who volunteer their own personal time to operate the Railway. Volunteers havecontributed over 19,000 days towards running Puffing Billy. These individuals collectively possessan incredible diversity of skills and are a fundamental part of the ongoing future of the Railway. It is estimated that volunteers contribute up to five million dollars value every year for the time theydonate to operating Puffing Billy. Volunteers also contribute to decision making throughparticipation in an extensive committee system.This year there has been a focussed effort on developing the Corporate Volunteer ContributionProgram. Groups of between 5 and 40 people have continued work restoring the environment andanimal habitat along the railway corridor. Currently, a monthly roster of sixty plus corporatevolunteers is being consistently engaged.Participation of younger volunteers on the Railway has been encouraged again this year. Youngvolunteers are being included in the decision making processes of the Railway. Youth days, youthsocial nights and youth committees have also been established.In January 2016 the ‘Schools Meet and Greet’ initiative was launched, giving Puffing Billy’s visitingschool groups a value added experience while enjoying the Railway. The meet and greet session,combined with an information pack and giveaways, has proved to be very popular.

TrainingTraining at Puffing Billy has undertaken a more formalised approach. Blended training across mostvolunteer roles has been introduced at entry level of the organisation. All registered volunteersundergo training and skills development. All training courses have been reviewed, and refreshed, toensure they will comply with training developments and new legislative requirements.A holistic approach to training has been offered to both volunteers and staff. This includesawareness training of Quality Customer Service and Cultural Awareness; more role specific trainingwith Safe Trolley Operation courses; the development of a new Ganger’s Course for the trackmaintenance crew; and individual personal development courses for full-time staff.The volunteers induction process has been reviewed, bringing it into line with industry bestpractice. When new volunteers apply to join the Railway, the previous one day of induction hasbeen replaced by a new two-day Puffing Billy Railway Pathways Program. The new Programensures an initial commitment is realised, and a uniformed approach is applied to the training of


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each new volunteer. It defines clear expectations and boundaries for all stakeholders. A clear careerpathway has been developed to improve the volunteers’ experiences while volunteering at theRailway. The launch of eLearning software for our volunteer base has bought with it somechallenges yet it has been a welcome change to the management and delivery of training programsfor the Railway. CommunityPuffing Billy works closely with local communities, and every year donates hundreds of familypasses to education organisations and help non-profit organizations to support their fundraisingactivities. The Railway also makes annual donations to local CFA branches to assist with theirvaluable work in protecting the community. Additionally, Puffing Billy has been fortunate enough to have established links with many“corporate volunteers”. These organisations frequently donate key resources which benefit theRailway and the local community. Toshiba has a long standing relationship with Puffing Billy,providing the Railway with printing equipment. Menzies Creek MuseumThe restoration of the Railway’s Museum and historic exhibits has progressed well over the lasttwelve months. It is anticipated that this facility will be open to the public within the next twelvemonths.Exterior workDual gauge tracks, minor excavations and aesthetic improvements to the exterior of the Museumare well underway. Key access points have undergone a facelift, with pathways between the exteriorand the entrance of the Museum being completed. Aesthetically pleasing paving has been laid acrossthe front of the Museum and the addition of a range of small gardens with recycled ornamentalindustrial decorations grace the entrance.Interior workAn exhaustive effort has been put into the presentation and restoration of a number of artefacts,ranging from boilers, workshop machinery, carriages and locomotives which helped buildAustralia’s pioneering railways. External lighting has been added to the display shed to enhance thevisitor experience. Marketing To ensure the marketing department could successfully promote the Railway and keep abreast ofthe ever changing digital marketing landscape, a third member was appointed to the team. EmeraldTourist Railway Board entered the Major Tourist Attraction category for the RACV 2015 VictorianTourism Awards for the first time and proudly received the Bronze award.The Railway continued to focus on both the domestic and international markets, with substantialgrowth being generated through overseas patronage. Additionally, Puffing Billy focused its attentionon promoting the catered train product line.The Railway works closely with the local tourism bodies and has provided space within the EmeraldTown Station to be used as a Visitor Information Centre. This is operated by the EasternDandenong Ranges Business & Tourism Group, and has been well received by the localcommunity and Puffing Billy Railway volunteers.Domestic Marketing’The Railway continued to exhibit at the Royal Melbourne Show and display ‘Thomas the TankEngine’, using this leverage to create awareness of the Railway’s product range.


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The Portable Sales Centre continues to operate in Melbourne and suburban shopping districts.Visiting major shopping centres weekly, the public is offered promotional rates and an insight intothe rail experience. The volunteer Speaker Panel continues to promote the Railway to various community groups suchas Probus Centres, Service Clubs and Seniors’ Organisations. This year, seventy-two presentationswere made by the Speaker Panel, with an average audience of fifty-one people.International Marketing

There was a significant increase in passengers originating from Asia, especially China, Singapore,Malaysia, South Korea and Taiwan.

The Railway has worked closely with key industry bodies. Puffing Billy representatives attended:d Tourism Australia events including the Australian Tourism Exchange (ATE), India Travel

Mission and Japan Walkabout Mission.d Tourism Victoria Mission to Taiwan as well as sales calls into Singapore and Malaysia with

fellow Yarra Ranges tourism operators.d Australian Tourism Export Council (ATEC) events including VicBound and Meeting Place.

The Railway appointed a new representative company based in Shanghai to assist in attractingvisitors from China. This company manages sales calls to the travel groups, as well as social mediaon behalf of the railway including Weibo and WeChat accounts. The Marketing Manager andMarketing Executive both travelled to China to consolidate the Puffing Billy product offer with thenew representative.

Product familiarisations were held at the Railway for wholesalers, travel agents and media from;China, Taiwan, Hong Kong, Japan, Korea, India, the United Kingdom, USA, Vietnam andThailand. Key Media OpportunitiesThe Railway featured strongly in the Australian media due to the Prime Minister’s visit prior to therecent federal election, surrounding the Governments pledge of $5.5 million towards constructionof a new Discovery Centre at Emerald Lakeside Park.Website & Social MediaThe Puffing Billy website recorded 966,583 visits (12% more than 2015) with an average of 80,549visits per month. The ‘Puffing Billy Railway’ Facebook page has 21,753 fans (37% more than2015) and posts reaching over 1.7 million people (137% more than 2015). Puffing Billy continues to receive regular reviews on Trip Advisor from passengers who havetravelled on the train. All reviewers mark their experience from 1 to 5 (5 being best) and PuffingBilly maintained a 4.5 ranking throughout the year. The Railway was delighted to receive aCertificate of Excellence from TripAdvisor for 2016. It is the third year in a row the Railway hasreceived this prestigious award, which recognises businesses that consistently earn top ratings fromTripAdvisor travellers. Puffing Billy’s website now has a Chinese landing page, with content in Simplified Chinese. The Railway has been actively utilising Instagram and now has over 2,300 followers (283% morethan 2015). The Railway has also utilised new social media channels including the new live video streamingservices ‘Facebook Live’ and ‘Periscope’ as well as ‘Snapchat’. In addition, ETRB has activelyengaged with the Chinese market through ‘WeChat’ and with the Korean and Taiwanese marketthrough ‘LineChat’.


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Events35th Great Train RaceThe 2016 Great Train Race, held on Sunday 7 May, is the flagship event on the railway andcontinues to attract runners from all across the country. It is one of the oldest organised annualraces which highlights the thrill of competing against a 100 plus year old steam locomotive. To thisday, it maintains its aura of being a ‘must-do event’ amongst the running community. A total of 2,735 runners competed on a wet and windy morning, along with more than 600 familyand friends travelling on the two race trains. Conditions suited runners more so than Puffing Billywho had to endure slippery track conditions along the 13.5km route from Belgrave to EmeraldLake Park. This enabled 189 runners to beat the first train across the line whilst 2,057 successfullyoutran the second race train. The Puffing Billy Preservation Society organises the event with the assistance of the EmeraldTourist Railway Board. Over 300 volunteers provide more than 2,000 hours to ensure the eventcontinues to grow. All proceeds for the 2016 race will go towards the Puffing Billy Menzies CreekMuseum Redevelopment project.Day out with Thomas The popular ‘Day out with Thomas’ event was held over seven weekends (four in Spring and threein Autumn) and provided thousands of ‘Thomas the Tank Engine’ fans an opportunity to see‘Thomas’ and his friends travelling on Puffing Billy Railway. All 56 Thomas and Diesel shuttlessold out weeks prior; proving the popularity of the ‘Thomas’ brand is as strong as ever and is anideal introduction for many patrons to Puffing Billy Railway. Due to overwhelming success of‘Thomas’, the event has out grown the Emerald facility. The event will be moving to Gembrook inlate 2016 to accommodate additional patronage and introduce new activities.

CommercialRetail OperationsThe new Tea Rooms at Lakeside are fully operational and have been performing extremely wellsince opening for business late December, 2015. The facility has been well received by thetravelling public, whose patronage has seen trade at this venue rival the successful Belgrave precinct. Retail SponsorshipThe Board appreciates the continuing support from our major sponsors, Streets Ice-cream andSchweppes. Their assistance contributes to the capital improvements on the railway.Steam and Cuisine TrainsThe Steam & Cuisine train is enjoying continued growth in its popularity. New local content hasbeen sourced; creating a fresh and dynamic menu which now caters to all customers’ dietaryrequirements. The wine list also incorporates wines indigenous to the Railway’s regional area, alongwith an offering of boutique beers.Dinner TrainsThe themed evenings at the Packing Shed are continuing to perform well. ‘Murder Mysteries’ areproving to be the most popular, with the renamed ‘Dine and Dance’ appealing to wider audience. To capitalise on this popularity, a new product called ‘Steam and Cuisine after Dark’ will be trialledlater this year.Passenger ServicesPassenger Services activities comprise many of the customer service facing roles. This overseespositions such as Station Masters, Conductors and Booking Clerk roles. These are all staffed byvolunteers. Multi-skilling is encouraged within this group of people, with many volunteers workingacross multiple roles when required.


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With the introduction of a new Volunteer Induction Program called ‘Pathways’, the Railway isfinding more new volunteers commence their duties with a clearer understanding of the role ofconducting. This results in an excellent retention rate. The conducting role is an entry levelposition. Once completed, the conductors can move on to roles of higher responsibility.Increased passenger growth means additional volunteers are required in all areas. Having anexperienced Head Conductor assisting the Station Master to manage general conducting staff, tourgroups, the platform and other passenger movements is essential on busy days. To address theincreasing patronage, a new role has been developed to manage customers while they queue fortickets. This ‘meet and greet’ position is a great assistance in preparing customers for their day’sjourney and answering any queries they may have in acquiring tickets.Signage in a number of languages is now common place on the platforms, particularly safetymessages. Recorded announcements, both welcoming and safety communications has commenced,initially with Chinese traveller in mind. This group is the Railway’s most frequent internationalvisitor.On-line bookings for Excursion trains have completely changed the passenger flow to the BelgraveBooking Office, particularly on busy days. Customer surveys are regularly carried out, and inresponse to popular feedback, the Railway is investigating different options of promptly processingcustomers. An additional service on Puffing Billy’s winter timetable is being well patronized and the returntime out of Lakeside is proving a popular option for customers. Locomotive and Carriage Workshops

The principal activities of the Locomotive Workshop at Belgrave and Carriage Workshop atEmerald are the maintenance and restoration of the locomotives, carriages and freight wagons, tomeet the daily operational requirements of the Railway.

The Belgrave location is for locomotive maintenance and restoration. During the busy summerseason, operational requirements were met by having five steam locomotives available at all times.Diesel locomotives are required for either moving carriages around the yard or relieving steamlocomotives during periods of high fire danger. With the increase in passenger numbers and anextended fire season, both staff and volunteers were stretched to the limit. It was a credit to allPuffing Billy personnel, whose tireless efforts made the service appear seamless from the outside.

The refurbishment of the Garratt locomotive NGG16-129 is well advanced and is expected tocome into service by summer 2017.

Way and Works

The progress of much of the maintenance works on the track has vastly improved, with assistancefrom PPWCMA (Port Phillip and Westernport Catchment Management Authority). This fundinghas allowed a crew of 5 casuals to concentrate solely on the environment.

With a long fire season, moisture testing was carried out regularly, continuously assessing fuel loadsalong the corridor. This ensures the ongoing safety of the Railway and its patrons.

Alternative sustainable plastic sleeper trials were carried out at two test sites, one inserted in 2015and the other in 2016 near Belgrave station. Results are showing good outcomes.

An annual arborist inspection was carried out in September 2015 when 148 trees were identified aspresenting potential danger to the Puffing Billy Railway. Conscious of environmental concerns, theRailway recycles materials from these trees. Such recycling includes mulch, firewood for locomotivesand buildings, and timber products milled on site for fences, seating and other infrastructure withinthe corridor.


continued …

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The Railway works closely with a number of environmental management land care groups, and useslocal businesses to carry out contracted environmental works. With funding obtained from theFederal Government, the Railway has concentrated on four sites along the corridor, the mainobjectives having been weed eradication, vegetation pruning, revegetation and fire fuel reductionworks, while enhancing the area’s biodiversity. Further funding from Melbourne Water Grants hascontributed to improvements at Belgrave Station, the trestle bridge at Selby and around operationaloffices. Additional grants have been obtained for use around the historic ‘Landslide area of 1954’.

Revegetation works are being carried out in specific areas of the Railway to assist in the preventionof erosion through water and other elements.

Working relationships with emergency services and local government departments are an integralcomponent of the Way and Works operations. The Railway has become more involved in theemergency planning groups’ meetings and strategies through the relationship building process.

The Way and Works branch’s success relies heavily upon volunteers who perform a myriad of tasks;track patrols, fire patrols, works trains and building maintenance to name a few. Gardens andgrounds in station precincts, buildings and infrastructure are also maintained and improved byseveral groups of dedicated volunteers. Their skills and dedication are highly appreciated.

Track Trolleys

The purchase of four more John Deere Gator CX, and Hi-Rail maintenance vehicles early in theyear meant key resources were available for the 2015-16 fire season. The success of both the newand the original trolley fleets ensured all locomotives were followed by a fire patrol vehiclethroughout the whole season. This reduced the fire hazard risk to a minimum, while providing amore comfortable and practical trolley for our volunteers to carry out their duties safely.

Signals and Telegraph

A 160kVA generator was installed to supply the station and workshops at Belgrave during poweroutages. It has already proven its worth during several outages, maintaining full operations. Otherworks at Belgrave have included provision of a shelter over the signalling frame and renewal of theoperating linkages and timber for the points and crossovers.

A 200 amp power supply was commissioned at Lakeside for the new tea rooms.

The relocation of the Accounts Office at Emerald has required a replacement telephone exchange,all internal cabling and an optical fibre link to the S&T depot.

Environmental Performance

The Railway actively promotes a culture of energy conservation and encourages staff and volunteersto minimise water, waste, electricity and gas consumption wherever possible.

To reduce the Railway’s environmental footprint further, 90% of all its florescent tube lighting waschanged to LED tubes. Basin taps across much of Puffing Billy have been changed to timed outletsto conserve water.

Puffing Billy’s largest negative environmental impact emanates from the coal burning locomotivesthat form an integral part of the heritage steam railway’s historical and tourism appeal.

The Railway consumes approximately 1,200 tonnes of coal annually using historical steamlocomotives designed more than 100 years ago.

The Board’s management team continues to actively promote the most efficient use of coal possiblein order to keep emissions to a minimum.


continued …

14

The Railway’s mechanical engineering personnel are in the process of investigating newtechnologies in an effort to reduce the level of existing locomotive carbon emissions. Newequipment is being trialled in some locomotives to measure emission levels and to assist drivers todevelop driving techniques that reduce emissions and improve locomotive efficiency. Alternativecleaner coal free firing systems are also being assessed for compatibility with the Railway.

For several years the Railway has had processes in place to reduce other environmental impacts, andthese processes remain in place.

Energy Saving Initiatives

d Electricity: By creating a culture of awareness to turn off appliances and lights after hours, andwhen not in use, this has an immediate impact. LED lights have replaced traditional lightingwhere practical.

d Water: Puffing Billy is continually providing training to drivers and firemen to ensure engineefficiency, which helps to conserve the amount of water consumed by our trains. Many ofPuffing Billy’s buildings harvest water into tanks.

d Paper: Administration staff are encouraged to carry out double-sided printing, scanning,emailing, and to print only what is needed, and mostly in black and white

d Waste: The message of recycling is promoted on all areas of the Railway with the provision ofrecycling bins at each station, as well as in all administration areas.

d Fuel: Log books are provided in all vehicles and are actively used to verify each vehicle’s use. d Coal: Given that the coal burned to fire Puffing Billy’s steam engines is by far the largest

contributor to carbon emissions, the ongoing training of drivers and firemen, to operate enginesas efficiently as possible, will help to reduce coal usage.

Other Environmental Matters

A number of other environmentally focused projects are in place to protect and preserve theenvironment including a number of partnerships with local Landcare groups.

Over the past thirty-six months the ‘Green Tracks’ program, (a partnership between the Railwayand the Southern Ranges Environmental Alliance), has been active in initiating and delivering on arange of environmental projects. This partnership is working together to implement the ‘PuffingBilly Railway Trackside Management Plan’. Additional assistance was given to Puffing Billy by theFederal Government through the Port Phillip and Westernport CMA. This now enables theprogram to be extended further.

The plan was prepared in collaboration with local environmental groups and government agenciesand recognizes that the trackside needs to be managed not only to provide a scenic background tothe running of the historic steam train but to also enhance the environmental values of the area thatis held in affection by local residents and the wider community.


continued …

15

Statutory Information

The Board has established procedures to implement the requirements of the Protected Disclosure Act2012. In the current year, as in all prior years, there were no disclosures made or referred to theBoard or to the Ombudsman.

No information was requested by any person or organization pursuant to the Freedom ofInformation Act 1982.

The Board operates the Puffing Billy Railway in association with the Puffing Billy PreservationSociety as an historical example of an early Victorian narrow gauge railway operation for the benefitof present and future generations of Victorian residents, and interstate and international tourists.Both organisations have been endorsed as a Deductible Gift Recipient by the Australian TaxationOffice.

The principal office of the Board is located at Narrow Gauge Railway Station, Old Monbulk Road,Belgrave. Contact numbers are –

Phone: (03) 9757 0700 Fax: (03) 9757 0705 Email: [email protected]

The organisational structure of the Board, its staff and committees is set out in Appendix 1 of thisreport on page 18.

The Board produces an Operations and Financial Report pursuant to the requirements of theEmerald Tourist Railway Act 1977 and the Financial Management Act 1994.

In addition the Board markets a range of publications dealing with the history and operation of thePuffing Billy Railway. These publications can be purchased from the Board’s retail outlets at variousstations along the Puffing Billy Railway.

No member, officer or employee of the Board was required to complete a declaration of PecuniaryInterest during the financial year with respect to their position or employment with the Board.

The Marketing Manager undertook one overseas trip, while the Marketing Officer made four trips(2015 – three), to continue the successful marketing of the Railway to international tourists. All ofthese trips were unaccompanied. No other overseas visits were undertaken during the financial year,either on behalf of, or paid for, by the Board.

No time has been lost during 2016 due to industrial disputation (2015 – nil).

Details of consultancies in excess of $100,000

In 2016 one consultant was engaged for $120,000, (2015 – none), to prepare a Master Plan for allthe Emerald Tourist Railway Board’s station precincts.

Details of consultancies under $100,000

In 2016 two consultants were engaged for $21,000, (2015 – no consultants were engaged).


continued …

16


Attestation on compliance with the Australian Risk Management Standard:

I, R.D. Bowen, certify that Emerald Tourist Railway Board has risk management processes in placeconsistent with Australian Standards AS4292 (rail safety) and AS 4360, and an internal controlsystem is in place that enables members of the Board and senior management to understand,manage and satisfactorily control material risk exposures. The audit committee verifies thisassurance that the risk profile of Emerald Tourist Railway Board has been critically reviewed withinthe last 12 months.

Attestation for compliance with Ministerial Standing Direction 4.5.5.1 – Insurance:

I, R.D. Bowen, certify that Emerald Tourist Railway Board has complied with MinisterialDirection 4.5.5.1 – Insurance.

This report is made by a resolution of the Board dated 31st day of August 2016, in accordance withthe Financial Management Act 1994, and signed on behalf of the Board by:

R.L. Leivers R.D. BowenChairman Acting Chief Executive Officer

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Appendix 1

Auditing in the Public Interest

18

19

Auditing in the Public Interest

FOR THE YEAR ENDED 30 JUNE 2016

financial report

CERTIFICATION BY THE BOARD

IN accordance with a resolution of the Emerald Tourist Railway Board, we theundersigned;1. certify that in our opinion the accompanying Financial Statements comprisingComprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, CashFlow Statement and Notes to the Financial Statements, which have been prepared inaccordance with Australian Accounting Standards, applicable financial reporting directionsand other mandatory professional reporting requirements presents fairly the financialtransactions during the year ended 30 June, 2016 and the financial position of the Board asat that date;2. are not aware of any circumstances which would render any particulars included in thereport to be misleading or inaccurate; and3. state that in our opinion the Financial Statements have been prepared in accordance withStanding Direction 4.2 of the Financial Management Act, 1994.Signed at Melbourne this 31st day of August 2016 on behalf of the Board –

............................................................................................................................................. R.L. LeiversChairman

................................................................................................................................................. R.D. BowenActing Chief Executive and Accountable Officer

............................................................................................................................................. M. Jouvelet CPAManager, Finance & Administration

20


21


comprehensive operating statement

The Comprehensive Operating Statement should be read in conjunction with the accompanying notes.


NOTES 2016 2015$ $

IncomeRevenue from Fares, Shops and External Contracts 2 12,440,836 9,905,847 Grants from Federal Government Bodies 15 225,000 –Grants from Victorian Government Bodies 15 – 40,000 Other Income 2 580,951 557,243

2 13,239,036 10,503,090

ExpensesEmployee Benefits Expense 4,986,094 4,263,839 Depreciation Expense 4 1,419,895 1,439,171 Supplies and Services 3(a) 2,226,962 1,851,469 Finance Costs 12,595 18,139 Advertising and Promotion 281,157 242,868 Insurance Costs 230,188 217,396 Administration Expenses 585,956 472,346 Other Expenses 3(b) 1,080,002 975,965

10,822,849 9,481,193

Net Results from Transactions 2,423,938 1,021,897

Other Economic Flows included in Net Result

Net (loss) gain on Non-Financial Assets – 4,199

Net Result for the Year 2,423,938 1,026,096

Comprehensive Other Income – Asset Revaluations 6,197,699 –

Comprehensive Result for the Year 8,621,637 1,026,096

22

The Balance Sheet should be read in conjunction with the accompanying notes.

AS AT 30 JUNE 2016

balance sheetNOTES 2016 2015

$ $


FINANCIAL ASSETSCash and Cash Equivalents 5 1,380,330 2,234,369 Receivables 6 465,015 281,778 Other Financial Assets 7 4,407,873 2,023,601

Total Financial Assets 6,253,218 4,539,748

NON-FINANCIAL ASSETSPrepayments 167,543 57,850 Inventories 8 750,424 601,648 Property, Plant and Equipment 9 51,988,538 45,136,601 Capital Works in Progress 10 3,218,557 3,030,596

Total Non-Financial Assets 56,125,062 48,826,695

Total Assets 62,378,280 53,366,443

LIABILITIESPayables 11 790,595 566,879 Interest Bearing Liabilities 12 129,400 168,472 Provisions 13 822,566 706,845 Other 14 448,944 359,109

Total Liabilities 2,191,505 1,801,305

Net Assets 60,378,280 51,565,138

EQUITY

Contributed Capital 17,361,115 17,361,115 Physical Asset Revaluation Surplus 42,276,552 36,078,853 Accumulated Loss 549,108 (1,874,830)

Total Equity 60,186,775 51,565,138

23

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

statement of changes in equity



Physical AssetRevaluation Accumulated ContributedSurplus Gain / Loss Capital Total

$ $ $ $Balance at 1 July 2014 36,078,853 (2,900,926) 17,361,115 50,539,042Net Result for the Year – 1,026,096 – 1,026,096 Contributions by Owner – – – –

Balance at 30 June 2015 36,078,853 (1,874,830) 17,361,165 51,560,138Net Result for the Year 6,197,699 2,423,938 – 8,621,637Contributions by Owner – – – –

Balance at 30 June 2016 42,276,552 549,108 17,361,115 60,186,775

24

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


cash flow statementNOTES 2016 2015

$ $


CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Customers 12,921,667 10,589,449 Payments to Suppliers and Employees (9,699,779) (8,706,445)Interest Received 84,654 90,913 Grants from Commonwealth Government Bodies 225,000 –Grants from Victorian Government Bodies – 40,000 Capital Grants from Puffing Billy Preservation Society 247,449 250,768

Net Cash Flows from Operating Activities 18(b) 3,778,992 2,264,685

CASH FLOWS FROM INVESTING ACTIVITIES

Payment for Property, Plant and Equipment (1,374,142) (62,357)Payment for Capital Works in Progress (835,545) (1,001,899)Payment for Investments (2,384,272) (299,423)Proceeds from sale of Property, Plant and Equipment – 15,896

Net Cash Used in Investing Activities (4,593,959) (1,347,783)

CASH FLOWS FROM FINANCING ACTIVITIES

Owner Contributions by State Government – –Proceeds from/(Repayment of) Borrowings (39,072) (97,154)

Net Cash Flows from/Used in Financing Activities (39,072) (97,154)

Net Increase/(Decrease) in Cash and Cash Equivalents (854,039) 819,748 Cash and Cash Equivalents at Beginning of the Year 2,234,369 1,414,621

Cash and Cash Equivalents at End of the Year 18(a) 1,380,330 2,234,369

25

continued …

The annual financial statements represent the audited general purpose financial statements for theEmerald Tourist Railway Board (the Board).

(A) Statement of compliance

These general purpose financial statements have been prepared in accordance with the FinancialManagement Act 1994 and applicable Australian Accounting Standards (AAS), which includesinterpretations issued by the Australian Accounting Standards Board (AASB).

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

The annual financial statements were authorised for issue by the Manager, Finance andAdministration of the Emerald Tourist Railway Board on 26 August, 2016.

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

(B) Basis of accounting preparation and measurement

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

These financial statements are presented in Australian dollars, the functional and presentationcurrency of the Board.

In the application of AAS, judgements, estimates and assumptions are required to be made aboutcarrying values of assets and liabilities that are not readily apparent from other sources. Theestimates and associated assumptions are based on professional judgements derived from historicalexperience and various other factors that are believed to be reasonable under the circumstance.Actual results may differ from these estimates.

The estimates and associated assumptions are reviewed on an ongoing basis. Revisions toaccounting estimates are recognised in the period in which the estimate is revised and also in futureperiods that are affected by the revision. Judgements made by management in the application ofAASs that have significant effects on the financial statements and estimates, with a risk of materialadjustments in the next year, are disclosed throughout the notes to the financial statements.

The report has been prepared in accordance with the historical cost convention. Historical cost isbased on the fair values of the consideration given in exchange for assets.

Exceptions to the historical cost convention include:

n 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;

n the fair value of an asset other than land is generally based on its depreciated replacement value.

n provision for long service leave – (refer to Note 1(J) (ii))

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


26

The accounting policies set out below have been applied in preparing the financial statements forthe year ended 30 June 2016 and the comparative information presented for the year ended 30June 2015.

(C) Reporting entity

The financial statements cover the Emerald Tourist Railway Board (the Board) as an individualreporting entity. The Board is a statutory authority established under the Emerald Tourist RailwayAct 1977.

Its principal address is:Emerald Tourist Railway BoardOld Monbulk RoadBelgrave 3160

(D) Scope and presentation of financial statements

Comprehensive operating statement

Income and expenses in the comprehensive operating statement are classified according to whetheror not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent withthe whole of government reporting format and is allowed under AASB 101 Presentation of financialstatements.

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

‘Other economic flows’ are changes arising from market re-measurements. They include gains andlosses from disposals, revaluations and impairments of non-financial physical and intangible assets.

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

Balance sheet

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

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

Cash flow statement

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


continued …

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


27

continued …

Statement of changes in equity

The statement of changes in equity presents reconciliations of each non-owner and owner equityopening balance at the beginning of the reporting period to the closing balance at the end of thereporting period. It also shows separately changes due to amounts recognised in the comprehensiveresult and amounts recognised in other comprehensive income related to other non-owner changesin equity.

(E) Income from transactions

Income is recognised to the extent that it is probable that the economic benefits will flow to theentity and the income can be reliably measured.

Interest income

Interest includes interest received on deposits and other investments and the unwinding over timeof the discount on financial assets. Interest income is recognised using the effective interest methodwhich allocates the interest over the relevant period.

Net realised and unrealised gains and losses on the revaluation of investments do not form part ofincome from transactions, but are reported either as part of income from other economic flows inthe net result or as unrealised gains and losses taken directly to equity, forming part of the totalchange in net worth in the comprehensive result.

Sales of goods and services

Income from the provision of services is recognised by reference to the stage of completion of theservices being performed. The income is recognised when:

n the amount of the income, stage of completion and transaction costs incurred can be reliably measured; and

n it is probable that the economic benefits associated with the transaction will flow to the Board.Under the stage of completion method, income is recognised by reference to labour hours supplied or to labour hours supplied as a percentage of total services to be performed in each annual reporting period.

Income from the sale of goods is recognised by the Board when:

n the significant risks and rewards of ownership of the goods have transferred to the buyer;

n the Board retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

n the amount of income, and the costs incurred or to be incurred in respect of the transaction can be reliably measured; and

n it is probable that the economic benefits associated with the transaction will flow to the Board.




28

continued …

Grants

Grants from third parties (other than contribution by owners) are recognised as income in thereporting period in which the Board gains control over the underlying assets.

The Board received a number of resources and volunteer services free of charge as part of itsoperations. As the value of these resources and services cannot be reliably measured, they have notbeen recognised as revenue.

Rental Income

Rental income from the leasing of property, plant and equipment is recognised on a straight-linebasis over the lease term.

(F) Expenses from transactions

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

Employee expenses

These expenses include all costs related to employment, including wages and salaries,superannuation, fringe benefits tax, leave entitlements and WorkCover premiums.

Superannuation

The amount recognised in the comprehensive operating statement is the employer contributions formembers of defined contribution superannuation plans that are paid or payable during thereporting period.

Depreciation and amortisation

All infrastructure assets, buildings, plant and equipment and other non-financial physical assets(excluding items under operating leases, assets held-for-sale and investment properties) that havefinite useful lives are depreciated. Depreciation is generally calculated on a straight-line basis, atrates that allocate the asset’s value, less any estimated residual value, over its estimated useful life.

Leasehold improvements are depreciated over the period of the lease or estimated useful life,whichever is the shorter, using the straight-line method.

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

The following are typical estimated useful lives for the different asset classes for both current andprior years. Asset class useful lives are as follows:

Buildings, Structures and Improvements 20 – 60 yearsLocomotives and Rolling Stock 10 – 40 yearsMotor Vehicles 5 – 10 yearsOffice Furniture and Equipment 5 – 10 yearsPlant and Equipment 10 – 40 yearsPermanent Way 50 yearsUnder Track Earthworks 100 years




29

continued …

Land, earthworks, land under declared roads, and core cultural assets, which are considered to havean indefinite life, are not depreciated. Depreciation is not recognised in respect of these assets astheir service potential has not, in any material sense, been consumed during the reporting period.Earthworks under the railway track are considered to have an almost indefinite life and aredepreciated over 100 years.

Interest expense

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

Other operating expenses

Other operating expenses generally represent the day to day running costs incurred in normaloperations.

Supplies and services

Supplies and services expenses are recognised as an expense in the reporting period in which theyare incurred. The carrying amounts of any inventories held for distribution are expensed whendistributed.

Bad and doubtful debts

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

(G) Other economic flows included in the net result

Other economic flows measure the change in volume or value of assets or liabilities that do notresult from transactions. These include:

Net gain/(loss) on non-financial assets

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

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

Refer to accounting policy on Property, plant and equipment, provided in Note 1(I)

Disposal of non-financial assets

Any gain or loss on the sale of non-financial assets is recognised at the date that control of the assetis passed to the buyer and is determined after deducting from the proceeds the carrying value of theasset at that time.

Impairment of assets

All other 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 carryingvalue exceeds their possible recoverable amount. Where an asset’s carrying value exceeds itsrecoverable amount, the difference is written off as another economic flow, except to the extent thatthe write-down can be debited to an asset revaluation surplus amount applicable to that class ofasset.




30

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

(H) Financial assets

Cash and deposits

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

For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts,which are included as borrowings on the balance sheet.

Receivables

Receivables consist of:

n statutory receivables which include predominantly amounts owing from the government and GST input tax credits recoverable; and

n contractual receivables which include mainly debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables (refer to Note 1(K)).

Receivables that are contractual are classified as financial instruments. Statutory receivables are notclassified as financial instruments.

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

A provision for doubtful receivables is made when there is objective evidence that the debts may notbe collected and bad debts are written off when identified (refer to Note 1(F))

Investments and other financial assets

Investments are classified in the following categories:

n financial assets at fair value through profit or loss,

n loans and receivables, and

n available-for-sale financial assets.

The classification depends on the purpose for which the investments were acquired. Managementdetermines the classification of its investments at initial recognition. Any dividend or interestearned on the financial asset is recognised in the comprehensive operating statement as atransaction.


continued …



31

continued …

Impairment of financial assets

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

Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debtsconsidered as written off by mutual consent are classified as a transaction expense. The bad debtsnot written off by mutual consent and allowance for doubtful receivables are classified as ‘othereconomic flows’ in the net result.

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

(I) Non-Financial Assets

Inventories

Inventories include goods held either for sale, or for distribution at zero or nominal cost, or forconsumption in the ordinary course of business operations.

Inventories held for distribution are measured at cost, adjusted for any loss of service potential. Allother inventories, are measured at the lower of cost and net realisable value.

Bases used in assessing loss of service potential for inventories held for distribution include currentreplacement cost and technical or functional obsolescence. Technical obsolescence occurs when anitem still functions for some or all of the tasks it was originally acquired to do, but no longermatches existing technologies. Functional obsolescence occurs when an item no longer functionsthe way it did when it was first acquired.

Cost for all inventory is measured on the basis of weighted average cost.

Inventories acquired for no cost or nominal consideration are measured at current replacement costat the date of acquisition.

Property, plant and equipment

All non-financial physical assets are measured initially at cost and subsequently revalued at fair valueless accumulated depreciation and impairment.

All property, plant and equipment categories have been categorised into a hierarchy of three levels,which are as follows:

n Level 1 – are assets which can be purchased in an active market in which there are identical or similar assets readily available

n Level 2 – are assets in a market in which there are other like or observable assets, other than those included in Level 1, which can be quoted either directly or indirectly.

n Level 3 – are assets which are not observable against any other assets to determine a comparable cost.




32

Non-financial physical assets such as land and heritage assets are measured at fair value with regardto the property’s highest and best use after due consideration is made for any legal or constructiverestrictions imposed on the asset, public announcements or commitments made in relation to theintended use of the asset. Theoretical opportunities that may be available in relation to the asset arenot taken into account until it is virtually certain that the restrictions will no longer apply.

The fair value of infrastructure systems and plant, equipment and vehicles, is normally determinedby reference to the asset’s depreciated replacement cost. For plant, equipment and vehicles, existingdepreciated historical cost is generally a reasonable proxy for depreciated replacement cost becauseof the short lives of the assets concerned.

Restrictive nature of cultural and heritage assets

The Board holds some heritage assets and infrastructure, which are deemed worthy of preservationbecause of the social rather than financial benefits they provide to the community. Consequently,there are certain limitations and restrictions imposed on their use and/or disposal.

The fair value of Museum Exhibits has been measured at cost and these Exhibits are notdepreciated as it is considered by the Board that these Exhibits may well be appreciating in value.

Non-financial physical assets arising from finance leases

Refer to Note 1(K) Leases.

Non-financial physical assets constructed by the Board

The cost of non-financial physical assets constructed by the Board includes the cost of all materialsused in construction, direct labour on the project, and an appropriate proportion of variable andfixed overheads.

Revaluations of non-financial physical assets

Non-financial physical assets are measured at fair value in accordance with FRD 103F issued by theMinister for Finance. A full revaluation normally occurs every five years, based on the asset’sgovernment purpose classification, but may occur more frequently if fair value assessments indicatematerial changes in values. Independent valuers are used to conduct these scheduled revaluationsand 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 fairvalue.

Net revaluation increases (where the carrying amount of a class of assets is increased as a result of arevaluation) are recognised in “Other economic flows – other movements in equity” andaccumulated in equity under the asset revaluation surplus, except that the net revaluation increaseshall be recognised in the net result to the extent that it reverses a net revaluation decrease in respectof the same class of property, plant and equipment previously recognised as an expense (othereconomic flows) in the net result.


continued …



33

continued …

Net revaluation decreases are recognised immediately as expenses (other economic flows) in the netresult, except that the net revaluation decrease shall be recognised in “other economic flows – othermovements in equity” to the extent that a credit balance exists in the asset revaluation surplus inrespect of the same class of property, plant and equipment. The net revaluation decrease recognisedin ‘other economic flows – other movement in equity’ reduces the amount accumulated in equityunder the asset revaluation surplus.

Revaluation increases and decreases relating to individual assets within a class of property, plant andequipment, are offset against one another within that class but are not offset in respect of assets indifferent classes. Any asset revaluation surplus is not normally transferred to accumulated funds onderecognition of the relevant asset.

Other non-financial assets

Prepayments

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

(J) Liabilities

Payables

Payables consist of:

n contractual payables, such as accounts payable, and unearned income which is the income received but related to the service to be rendered in the future period (‘income in advance’). Accounts payable represent liabilities for goods and services provided to the Board prior to the end of the financial year that are unpaid, and arise when the Board becomes obliged to make future payments in respect of the purchase of those goods and services; and

n 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 atamortised 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 liabilitiesat amortised cost because they do not arise from a contract.

Payables are initially recognised at fair value, being the cost of the goods and services, andsubsequently measured at amortised cost.

Borrowings

Borrowings are initially measured at fair value, being the cost of the borrowings, net of transactioncosts (refer to Note 1(K) Leases).

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




34

Provisions

Provisions are recognised when the Board has a present obligation, the future sacrifice of economicbenefits 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 thepresent obligation at reporting period, taking into account the risks and uncertainties surroundingthe obligation. Where a provision is measured using the cashflows estimated to settle the presentobligation, its carrying amount is the present value of those cashflows, using the discount rate thatreflects the time value of money and risk specific to the provision.

Employee benefits

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leaveand 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, and annual leave which areexpected to be settled within 12 months of the reporting period, are recognised in the provision foremployee benefits. These liabilities are classified as current liabilities and measured at their nominalvalues.

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

(ii) Long service leave

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

Current liability – unconditional LSL is disclosed in the notes to the financial statements as acurrent liability even where the Board does not expect to settle the liability within 12 monthsbecause it will not have the unconditional right to defer the settlement of the entitlement should anemployee take leave within 12 months.

The components of this current LSL liability are measured at:

n nominal value – component that the Board expects to settle within 12 months; and

n present value – component that the Board does not expect to settle within 12 months.

Non-current liability – conditional LSL is disclosed as a non-current liability. There is anunconditional right to defer the settlement of the entitlement until the employee has completed therequisite years of service.

This non-current LSL liability is measured at present value. Any gain or loss following revaluationof the present value of non-current LSL liability is recognised as a transaction, except to the extentthat a gain or loss arises due to changes in bond interest rates for which it is then recognised as another economic flow (refer to Note 1(G) Other economic flows include in net result).


continued …



35

continued …

Employee benefits on-costs

Employee benefits on-costs such as payroll tax, workers compensation and superannuation arerecognised in the provision for employee benefits.

(K) Leases

A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases areclassified at their inception as either operating or finance leases based on the economic substance ofthe 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 leasetransfer substantially all the risks and rewards of ownership from the lessor to the lessee. All otherleases are classified as operating leases.

Finance leases

Board as lessee

At the commencement of the lease term, finance leases are initially recognised as assets andliabilities at amounts equal to the fair value of the lease property or, if lower, the present value ofthe minimum lease payment, each determined at the inception of the lease. The lease asset isdepreciated over the shorter of the estimated useful life of the asset or the term of the lease.

Minimum finance lease payments are apportioned between reduction of the outstanding leaseliability, and periodic finance expense which is calculated using the interest rate implicit in the leaseand charged directly to the comprehensive operating statement.

Operating leases

Board as lessor

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

All incentives for the agreement of a new or renewed operating lease are recognised as an integralpart of the net consideration agreed for the use of the leased asset, irrespective of the incentive’snature or form or the timing of payments.

In the event that lease incentives are given to the lessee, the aggregate cost of incentives arerecognised as a reduction of rental income over the lease term, on a straight line basis unless anothersystematic basis is more representative of the time pattern over which the economic benefit of theleased asset is diminished.

(L) Equity

Contributions by owners

Additions to net assets which have been designated as contributions by owners are recognised ascontributed capital. Other transfers that are in the nature of contributions or distributions have alsobeen designated as contributions by owners.

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




36

(M) Commitments

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

(N) Contingent assets and contingent liabilities

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

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

Income, expenses and assets are recognised net of the amount of associated GST, unless the GSTincurred is not recoverable from the taxation authority. In this case, it is recognised as part of thecost 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 netamount of GST recoverable from, or payable to, the taxation authority is included with otherreceivables or payables in the balance sheet.

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

(P) Events after the reporting period

Assets, liabilities, income or expenses arise from past transactions or other past events. Where thetransactions result from an agreement between the Board and other parties, the transactions areonly recognised when the agreement is irrevocable at or before the end of the reporting period.Adjustments are made to amounts recognised in the financial statements for events which occurafter the reporting period and before the date the financial statements are authorised for issue,where those events provide information about conditions which existed in the reporting period.Note disclosure is made about events between the end of the reporting period and the date thefinancial statements are authorised for issue where the events relate to conditions which arose afterthe end of the reporting period that are considered to be of material interest.


continued …



37




(Q) AASs issued that are not yet effective

Certain new AASs have been published that are not mandatory for the 30 June 2016 reportingperiod. DTF assesses the impact of these new standards and advises the Board of their applicabilityand early adoption where applicable.

As at 30 June 2016, the following standards and interpretations that are applicable to the Boardhad been issued but are not mandatory for the financial year ending 30 June 2016. Standards andinterpretations that are not applicable to the Board have been omitted. The Board has not earlyadopted these standards. No significant impact on the financial statements is expected from thefollowing standards:

Impact on the ETRB’s financial statements

The changes in revenue recognition requirements inAASB 15 may result in changes to the timing andamount of revenue recorded in the financialstatements. The Standard will also requireadditional disclosures on service revenue andcontract modifications. A potential impact will be the upfront recognitionof revenue from licenses that cover multiplereporting periods. Revenue that was deferred andamortised over a period may now need to berecognised immediately as a transitional adjustmentagainst the opening returned earnings if there are noformer performance obligations outstanding.

Applicable forannual reporting

periodsbeginning on

1 January 2018The core principleof AASB 15requires an entityto recogniserevenue when theentity satisfies aperformanceobligation bytransferring apromised good orservice to acustomer.

AASB 15 Revenue fromContracts withCustomers

The assessment has indicated that as most operatingleases will come on balance sheet, recognition oflease assets and lease liabilities will cause net debt toincrease. Depreciation of lease assets and interest on leaseliabilities will be recognised in the income statementwith marginal impact on the operating surplus.The amounts of cash paid for the principal portionof the lease liability will be presented withinfinancing activities and the amounts paid for theinterest portion will be presented within operatingactivities in the cash flow statement.No change for lessors.

1 January 2019The key changesintroduced byAASB 16 includethe recognition ofmost operatingleases (which arecurrent notrecognised) onbalance sheet.

AASB 16 Leases

Standard /Interpretation Summary

continued …

38

continued …

(R) Changes in accounting policies

No new accounting policies have been adopted in the 2015-16 year.




39

continued …


NOTE 2: INCOME


NOTES 2016 2015$ $

REVENUE FROM FARES, SHOPS AND EXTERNAL CONTRACTSFares 11,145,568 8,913,436 Sales - Shop 1,278,022 992,411 Sales - External Contracts 17,246 –

12,440,836 9,905,847 OTHER INCOMEGrants from Puffing Billy Preservation Society 247,449 250,768 Interest Received 89,953 90,913 Rents Received 140,385 138,182 Other Income 103,164 77,380

580,951 557,243

GOVERNMENT GRANTS RECEIVEDFederal Government Bodies 15 225,000 –Victorian Government Bodies 15 – 40,000

TOTAL INCOME 13,246,787 10,503,090

NOTE 3: EXPENSES(a) Supplies and ServicesCost of Sales - Shop 550,271 407,110 Cost of Sales - External Contracts 1,348 –Coal and Light Up Wood 301,688 284,060 Catering on Trains 350,118 291,321 Repairs, Maintenance and Consumables 1,023,537 868,978

2,226,962 1,851,469(b) Other ExpensesAuditor's Remuneration:- Auditor General 8,800 8,380 Electricity and Gas 124,163 123,359 Payroll Tax 223,177 194,194 Special Events 165,361 179,234 Other Expenses 402,840 333,672 Sundry Train Operating Expenses 145,627 137,126

1,080,002 975,965

40

continued …


NOTE 4: DEPRECIATION2016 2015$ $


NOTE 7: OTHER FINANCIAL ASSETSCurrent:Australian dollar term deposits 4,407,873 2,023,601

Building, Structures and Improvements 277,363 291,010 Locomotives and Rolling Stock 543,851 536,173 Motor Vehicles 80,039 85,819 Office Furniture and Equipment 55,406 59,193 Plant and Equipment 169,317 173,097 Permanent Way 293,919 293,879

1,419,895 1,439,171

NOTE 5: CASH ASSETS AND CASH EQUIVALENTSCurrent:Cash on Hand 29,838 23,574 Cash at Bank 285,111 256,426 Cash Management Accounts 1,065,381 1,954,369

1,380,330 2,234,369

NOTE 6: RECEIVABLESCurrentContractualTrade Debtors 313,608 171,990 Provision for Doubtful Debtors (3,160) (3,160)Other Receivables 32,225 16,667

342,673 185,497 StatutoryGST Receivables 122,342 96,281

465,015 281,778

(a) Ageing analysis of contractual receivablesPlease refer to Note 23 for the ageing analysis of contractual receivables.

(b) Nature and extent of risk arising from contractual receivablesPlease refer to Note 23 for the nature and extent of risk arising from contractual receivables.

41

2016 2015$ $


continued …

NOTE 8: INVENTORIES


Current:Finished Goods held for resale, at cost 347,061 269,502 Coal, at cost 11,480 17,080 Workshop Inventories and Spare Parts, at cost 391,883 315,066

750,424 601,648

NOTE 9: PROPERTY, PLANT AND EQUIPMENTNon-Current:Land - at fair value 11,025,000 8,099,000

11,025,000 8,099,000 Buildings, Structures and Improvements– at fair value 9,361,850 6,910,446 Accumulated Depreciation (1,149,703)

9,361,850 5,760,743

Total Land and Buildings 20,386,850 13,859,743

Locomotives and Rolling Stock - at fair value 16,559,000 17,013,223 Accumulated Depreciation (1,986,890)

Total Locomotives and Rolling Stock 16,559,000 15,026,333

Motor Vehicles - at fair value 396,010 396,009 Accumulated Depreciation (290,331) (210,292)

105,679 185,717

Office Furniture and Equipment - at fair value 308,452 280,392 Accumulated Depreciation (203,610) (148,204)

104,842 132,188

Plant and Equipment - at fair value 3,199,605 1,723,324 Accumulated Depreciation (696,398) (667,042)

Total Plant and Equipment 2,503,207 1,056,282

Total Motor Vehicles, Plant and Equipment 2,713,728 1,374,187

42

continued …


NOTE 9: PROPERTY, PLANT AND EQUIPMENT (continued)

2016 2015$ $

In accordance with Financial Reporting Directive 103F, all property plant and equipmentexcluding the minor categories of motor vehicles, office equipment and workshop equipment wasindependently revalued at 30 June 2016.

A valuation of the Board’s land and buildings was performed by the Valuer-General Victoria todetermine the fair value of land and buildings. The valuation, which conforms to AustralianValuation Standards, was determined by reference to the amounts for which assets could beexchanged between knowledgeable willing parties in an arm’s length transaction. Fair value isdetermined by direct reference to recent market transactions on arm’s length terms for land andbuildings of comparable size and location to the railway. The valuation was based on independentassessments, which conforms to Australian Valuation Standards, was determined based on thedepreciated replacement cost of the assets.

All assets are classified as “Public Safety and Environment”.


Permanent Way – at fair value 12,328,960 15,942,998 Accumulated Depreciation – (1,066,660)

Total Permanent Way 12,328,960 14,876,338

Property, Plant and Equipment 51,988,538 45,136,601

43


continued …


ReconciliationsReconciliation of the carrying amount of each class of property, plant and equipment at thebeginning and end of the current financial year are set out below:


Buildings, Locomotives Motor VehiclesStructures & and Plant and Permanent

Land Improvements Rolling Stock Equipment Way TotalFair Value Hierarchy Level 3 Level 3 Level 3 Level 3 Level 3

$ $ $ $ $ $Carrying Amount at1 July 2014 8,099,000 5,867,480 15,363,176 1,660,317 15,151,086 46,141,059 Additions – 7,550 – 35,676 19,131 62,357 Disposals – – (8,000) (3,697) – (11,697)Transfers from Work in Progress – 176,723 207,330 – – 384,053 Depreciation Expense – (291,010) (536,173) (318,109) (293,879) (1,439,171)

Carrying Amount at30 June 2015 8,099,000 5,760,743 15,026,333 1,374,187 14,876,338 45,136,601 Additions 1,161,000 114,000 – 99,146 – 1,374,146 Disposals – – – – – –Transfers from Work in Progress – 330,150 1,045 368,792 – 699,987 Revaluation 1,765,000 3,434,320 2,075,473 1,176,365 (2,253,459) 6,197,699 Depreciation Expense – (277,363) (543,851) (304,762) (293,919) (1,419,894)

Carrying Amount at30 June 2016 11,025,000 9,361,850 16,559,000 2,713,725 12,328,960 51,988,535

44

continued …




Description of unobservable inputs to Level 3 valuations as at 30 June 2016 and June 2015:

Sensitivity of fair valuemeasurement to changes in

significant unobservable inputs

A significant increase or decreasein the community service

obligation discount would resultin a significantly higher or lower

fair value

Range

40%Communityservice obligation

Market baseddirect comparison,discounted for

public use zoning(community

service obligation)

Land

A significant increase or decreasein the estimated useful life of the

asset would result in asignificantly higher or lower

fair value

Impact of heritagerestrictions isconsidered butnot quantified.

25 – 60 years

Impact of heritagerestrictions isconsidered butnot quantified.

20 – 40 years

HeritageRestrictions

HeritageRestrictions

Useful life ofbuildings and

bridges

Depreciatedreplacement cost

Buildings,Structures &Improvements



fair valueRemaining Usefullife of locomotivesand rolling stock



Locomotives and

Rolling Stock



fair value

5 – 100 yearsUseful life of the Plant, equipmentand Museumexhibits.

Plant &Equipment




fair value

30 – 150 yearsUseful life of therailway track and

earthworks

Permanent Way

Valuationtechnique

Significantunobservable

inputs

45


continued …

NOTE 10: CAPITAL WORKS IN PROGRESS

NOTES 2016 2015$ $


Non-Current:Restoration of Locomotives - at cost 2,527,671 2,179,890 Restoration of Rolling Stock - at cost 210,675 87,602 Other Plant and Equipment - at cost 480,211 763,104

Total Capital Works in Progress 3,218,557 3,030,596

Buildings, Locomotives Motor VehiclesStructures & and Plant and PermanentImprovements Rolling Stock Equipment Way Total

$ $ $ $ $Carrying Amount at 1 July 2014 601,873 1,810,877 – – 2,412,750 Additions 337,955 663,944 – – 1,001,899 Transfer to Spare Parts Inventory –Transfers to PropertyPlant and Equipment (176,723) (207,330) – – (384,053)

Carrying Amount at 30 June 2015 763,105 2,267,491 – – 3,030,596 Additions 416,047 471,900 – – 887,947 Transfers to PropertyPlant and Equipment (698,941) (1,045) – – (699,986)

Carrying Amount at 30 June 2016 480,211 2,738,346 – – 3,218,557

NOTE 11 PAYABLESCurrentContractualTrade Creditors 389,625 179,578 Sundry Creditors and Accrued Expenses 197,292 212,207

586,917 391,785 StatutoryGST Payable 122,499 82,433 Employee Tax Withheld 81,179 92,661

203,678 175,094

790,595 566,879

ReconciliationsReconciliation of the carrying amount of each class of capital works in progress at the beginningand end of the current financial year are set out below:

46

continued …

NOTE 12: INTEREST BEARING LIABILITIES

(a) Maturity analysis of interest bearing liabilities.Please refer to Note 23 for the maturity analysis of interest bearing liabilities.

(b) Nature and extent of risk arising from interest bearing liabilities.Please refer to Note 23 for the nature and extent of risk arising from interest bearing liabilities.

(c) Defaults and breaches.During the current and prior years, there are no defaults and breaches of any of the interest bearing liabilities.

(d) All of ETRB’s hire purchase agreements relate to motor vehicles. ETRB has secured motor vehicles against these hire purchase agreements. The carrying value of these motor vehicles at 30 June 2016 is $78,048 (2015 – $127,165).


NOTE 11 PAYABLES (continued)

(a) Maturity analysis of contractual payables.Please refer to Note 23 for the maturity analysis of contractual payables.

(b) Nature and extent of risk arising from contractual payables.Please refer to Note 23 for the nature and extent of risk arising from contractual payables.

NOTES 2016 2015$ $


Secured:CurrentHire Purchase Liability 51,668 51,668 Deferred Hire Purchase Charges (9,309) (12,595)

42,359 39,073 Non-currentHire Purchase Liability 90,384 142,051 Deferred Hire Purchase Charges (3,343) (12,652)

87,041 129,399

Total Interest Bearing Liabilities 129,400 168,472


NOTE 13: PROVISIONS

NOTES 2016 2015$ $


47

continued …

NOTE 14: OTHER CURRENT LIABILITIES

NOTE 13A: EMPLOYEE ENTITLEMENTS AND RELATED ON-COSTS

Current- Employee Benefits (Note 13A) 741,270 653,294 Non-Current- Employee Benefits (Note 13A) 81,296 53,551

Total Provision for Employee Entitlements 822,566 706,845

Current (Note 13)All Annual Leave and LSL Entitlements (representing 7+ years of continuous service)

– Short-term employee benefits, expected to be settled within 12months after the end of the period measured at nominal value:Annual Leave 383,470 307,714 Long Service Leave 245,324 223,168

– Other long-term employee benefits expected to be settled after 12 months after the end of the period measured at present value 112,476 122,412

741,270 653,294 Non-Current (Note 13)LSL representing less than 7 years of continuous servicemeasured at present value 81,296 53,551

Movement in Long Service LeaveBalance at the start of the year 399,131 399,927 Provision made during the year 54,106 40,091 Settlements made during the year (14,138) (40,887)

Balance at end of the year 439,099 399,131

Passenger Bookings in Advance 337,579 264,818 Rent Received in Advance 111,365 94,291

448,944 359,109

48

continued …


NOTES 2016 2015$ $

(b) Other financial commitmentsThe Board has short term financial commitments to purchase $58,858 (2015 - $1,015,300) ofcapital additions, and 396,327 (2015 – Nil) in committed operational expenditure. None of thecommitments are payable later than one year.

(c) Committed Lease revenueThe Board has long-term lease agreements with several telecommunications companies to providespace in a former water tower on its property. No long term value is attributed to the leases since allof them contain six month notice of termination clauses.

NOTE 17: SUPERANNUATION

The Board made a minimum nine and one half percent (2015: nine and one half percent)contribution into thirty-two defined contribution superannuation schemes on behalf of employees,and selected by the employees themselves. Total Board contributions in 2016 were $$433,730(2015: $383,955). Additionally all employees have an option of making additional contributions into their nominatedschemes, and some employees took up this option. There are no unfunded liabilities or outstanding contributions due to any superannuation schemes.


NOTE 15: GRANTS FROM GOVERNMENT BODIES

Tourism Victoria – 40,000Federal Government Departments Grants 225,000 _

225,000 40,000

NOTE 16: FINANCIAL COMMITMENTS

(a) Commitment for Hire Purchase PaymentsPayable not later than 1 year 51,668 51,668 Payable later than 1 year but not later than 5 years 90,384 142,051

142,052 193,719 Deferred Hire Purchase Charges (12,652) (25,247)

129,400 168,472

Current Hire Purchase Liability (net) 12 42,359 39,073 Non-current Hire Purchase Liability (net) 12 87,041 129,399

129,400 168,472


NOTES 2016 2015$ $


49

continued …

NOTE 18: CASH FLOW INFORMATION

(a) Reconciliation of Cash and Cash EquivalentsCash on Hand 5 29,838 23,574 Cash at Bank 5 285,111 256,426 Cash invested at call 5 1,065,381 1,954,369

Balance as per cash flow statement 1,380,330 2,234,369

(b) Reconciliation of Cash Flows from OperationsNet Result for the Year 2,423,938 1,026,096

Non-cash movements- Depreciation 4 1,419,895 1,439,171 - Loss (Profit) on Disposal of Property, Plant and Equipment – (4,199)

3,843,833 2,461,068

Movements in assets and liabilities- Decrease in Receivables (183,237) 20,988 - Decrease/ (Increase) in Inventories (148,776) 33,535 - Decrease/ (Increase) in Prepayments (109,693) (19,964)-(Decrease)/ Increase in Payables 171,309 (298,133)- Increase in Provisions 115,721 17,641 - Increase in Other Liabilities 89,835 49,550

Net Cash Flows from Operations 3,778,992 2,264,685

(c)Non-cash financing and investing activities:

Property, Plant and equipment:

During the financial year, the Board did not acquire any plant and equipment by means of hirepurchase agreements.

50

continued …


NOTE 19: POST BALANCE DATE EVENTSThere is no event occurring after balance date that would have a material effect on the accounts.

NOTE 20: RESPONSIBLE PERSONSResponsible persons during the year ended 30th June 2016 were:Responsible Minister: The Hon. John Eren, Minister for Tourism, Sport and Veterans

from 4 December 2014Accountable Officer: J.A. Robinson (Chief Executive Officer) Remuneration paid to the Minister is reported in the Annual Report of the Department of the Premier and Cabinet.

NOTE 21: DIRECTORS AND EXECUTIVE OFFICERSMembers of the Board during the year ended 30 June 2016 were as under:R.L. Leivers (Chairman) 1 July 2015 to 30 June 2016J.R.S. Cochrane (Deputy Chairman) 1 July 2015 to 30 June 2016J. Brady 1 July 2015 to 30 June 2016J.L.Clowes 1 July 2015 to 30 June 2016D.L. Eaton 1 July 2015 to 30 June 2016R.W. Kingham 1 July 2015 to 30 June 2016A.J. Ponton 1 July 2015 to 30 June 2016 J. Prentice 1 December 2015 to 30 June 2016Secretary to the Board: D.G. Parbery 1 July 2015 to 30 June 2016

No remuneration was paid or is payable to any Board Members acting in their capacity as a Board Member.Remuneration paid to Accountable Officers is as follows:

Total Remuneration Base RemunerationIncome Band 2016 2015 2016 2015$180,000 - $189,999 – – 1 1$190,000 - $199,999 – – – –$200,000 - $209,999 – – – –$210,000 - $219,999 1 1 – –

Total Numbers 1 1 1 1Total Amount $205,127 $204,518 $186,127 $187,518

In 2016 there were twenty-six pay periods (2015 – twenty-seven pay periods)


NOTE 21: DIRECTORS AND EXECUTIVE OFFICERS (continued)(a) Executive Officers at 30 June 2016 were as follows –R.D. Bowen Manager, Finance & ComplianceM. Jouvelet Manager, Finance & AdministrationJ.F. Hoy Manager, Operations & EngineeringN.M. Hutchins Manager, MarketingJ.L. Clowes Manager, Passenger Operations

Remuneration paid to Executive Officers is as follows:

Total Remuneration Base RemunerationIncome Band 2016 2015 2016 2015$50,000 – $59,999 1 – 1 –$90,000 – $99,999 – – – 1$100,000 – $109,999 – 1 1 –$110,000 – $119,999 1 – – 1$120,000 – $129,999 – 1 1 –$130,000 – $139,999 1 – – 1$140,000 – $149,999 – – 1 1$150,000 – $159,999 2 2 1 –$160,000 – $169,999 – – – –

Total Number of Executives 5 4 5 4

Total Amount $612,374 $573,030 $581,529 $533,030

In 2016 there were twenty-six pay periods (2015 – twenty-seven pay periods). (b) Payments to contractors charged with significant management responsibility:There were no payments made to contractors charged with significant management responsibility(2015: Nil).

NOTE 22: RELATED PARTY TRANSACTIONSMembers of the Board who are also members of the Puffing Billy Preservation Society ExecutiveCommittee were R. Cochrane, J. Brady, R Kingham and J. L. Clowes. There were no related partytransactions with any of these members.Other than the transactions of the Society disclosed elsewhere in this report, there were no otherrelated party transactions.Members of The Puffing Billy Preservation Society provide volunteer services to the Board.Additionally, Puffing Billy Preservation Society has provided grants totalling $247,449 (2015:$250,768) towards capital works in progress, as disclosed in Note 2. The Board has purchasedbooks to the value of $9,038 (2015: $1,970) from the Society for sale in its station kiosks.



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NOTE 23: FINANCIAL INSTRUMENTS

(a) Financial Risk Management Objectives and PoliciesThe Board’s principal financial instruments comprise:

• Cash Assets• Term Deposits• Receivables (excluding statutory receivables)• Payables (excluding statutory payables)• Hire Purchase Liabilities

Details of the significant accounting policies and methods adopted, including the criteria forrecognition, the basis of measurement and the basis on which income and expenses are recognised,with respect of each class of financial asset and financial liability are disclosed in Note 1 to thefinancial statements.The main purpose in holding financial instruments is to prudentially manage the Boards financialrisks within the government policy parameters.The Board’s main financial risks include credit risk and interest rate risk. The Board manages thesefinancial risks in accordance with its financial risk management policy.The Board uses different methods to measure and manage the different risks to which it is exposed.Primary responsibility for the identification and management of financial risks rests with the AuditRemuneration Committee of the Board.



NOTE 23 FINANCIAL INSTRUMENTS (continued)



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Categorisation of Financial InstrumentsContractual Contractual

Financial Assets FinancialLoans and Liabilities atReceivables amortised cost Total

2016 $ $ $Contractual Financial AssetsCash and cash equivalent 1,380,330 – 1,380,330Term Deposits 4,407,873 – 4,407,873Receivables 342,673 – 342,673

Total Contractual Financial Assets 6,130,876 – 6,130,876

Contractual Financial LiabilitiesPayables – 586,917 586,917Hire Purchase Liabilities – 129,400 129,400

Total Contractual Financial Liabilities – 716,317 716,317

2015

Contractual Financial AssetsCash and cash equivalent 2,234,369 – 2,234,369Term Deposits 2,023,601 – 2,023,601Receivables 185,497 – 185,497

Total Contractual Financial Assets 4,443,467 – 4,443,467

Contractual Financial LiabilitiesPayables – 391,785 391,785Hire Purchase Liabilities – 168,472 168,472

Total Contractual Financial Liabilities – 560,257 560,257

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The net holding gains or losses disclosed above are determined as follows:• for cash and cash equivalents and loans or receivables, the net gain or loss is calculated by takingthe movement in the fair value of the asset, the interest income, and minus any impairmentrecognised in the net result;• for financial liabilities measured at amortised cost, the net gain or loss is calculated by taking theinterest expense measured at amortised cost.


Net Holding Gain/(Loss) on Financial Instruments by CategoryCategorisation of Financial Instruments

Net Holding Total Interest Impairment gain/(loss) income/(expense) Loss Total

2016 $ $ $ Contractual Financial AssetsFinancial Assets - loans and receivables – 89,953 – 89,953

Total Contractual Financial Assets – 89,953 – 89,953

Financial LiabilitiesFinancial Liabilities at amortised cost – (12,595) – (12,595)

Total Financial Liabilities – (12,595) – (12,595)

2015Contractual Financial AssetsFinancial Assets - loans and receivables – 90,913 – 90,913

Total Contractual Financial Assets – 90,913 – 90,913

Financial LiabilitiesFinancial Liabilities at amortised cost – (18,139) – (23,091)

Total Financial Liabilities – (18,139) – (23,091)


(b) Credit RiskCredit arises from the contractual financial assets of the Board, which comprise cash and deposits,and non-statutory receivables. The Board’s exposure to credit risk arises from the potential defaultof a counter party on the contractual obligations resulting in financial loss to the Board. Credit riskis measured at fair value and is monitored on a regular basis.Credit risk associated with the Board’s contractual financial assets is minimal because it is theBoard’s policy to only deal with entities with a proven credit history.In addition, the Board does not engage in hedging for its contractual financial assets and mainlyobtains contractual financial assets that are on fixed interest, except for cash assets, which are mainlycash at bank. The Board’s policy is to deal only with banks AA- credit ratings.Provision of impairment for contractual financial assets is recognised when there is objectiveevidence that the Board will not be able to collect a receivable. Objective evidence includes financialdifficulties of the debtor or debts which are more than 90 days overdue.Except as otherwise detailed in the following table, the carrying amount of contractual financialassets recorded in the financial statements, net of any allowance for losses, represents the Board’smaximum exposure to credit risk without taking account of the value of any collateral obtained.



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Credit Quality of contractual financial assets that are neither past due nor impaired.

FinancialInstitutions

AA-credit rating Other Total

2016 $ $ $

Cash and deposits 5,788,203 – 5,788,203 Receivables – 342,673 342,673

Total contractual financial assets 5,788,203 342,673 6,130,876

2015

Cash and deposits 4,257,970 – 4,257,970 Receivables – 185,497 185,497

Total contractual financial assets 4,257,970 185,497 4,443,467

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(b) Credit Risk (continued)



Contractual financial assets that are either past due or impaired

There are no material financial assets which are individually determined to be impaired. Currentlythe Board does not hold any collateral as security nor credit enhancements relating to any of itsfinancial assets.

There are no financial assets that have their terms renegotiated so as to prevent them from beingpast due or impaired, and they are stated at the carrying amounts as indicated. The ageing analysistable above discloses the ageing only of contractual financial assets that are past due but notimpaired.


Ageing Analysis of Financial AssetsPast due but not Impaired

Carrying Not Less than 1- 3 3 Months- 1-5Amount Past Due 1 month Months 1 Year Years Impairment$ $ $ $ $ $ $2016

Investment and other Contractual Financial AssetsCash and cash equivalent 1,380,330 1,380,330 – – – – –Term Deposits 4,407,873 4,407,873 – – – – –Receivables:– Sale of goods and services 310,448 188,467 73,850 51,291 – – (3,160)– Other receivables 32,225 32,225 – – – – –

Total Financial Assets 6,130,876 6,008,895 73,850 51,291 – – (3,160)

2015Investment and other Contractual Financial AssetsCash and cash equivalent 2,234,369 2,234,369 – – – – –Term Deposits 2,023,601 2,023,601 – – – – –Receivables:- Sale of goods and services 168,830 94,633 44,743 32,614 – – (3,160)- Other receivables 16,667 16,667

Total Financial Assets 4,443,467 4,369,270 44,743 32,614 – – (3,160)



(c) Liquidity risk

Liquidity risk is the risk that the Board would be unable to meet its financial obligations as andwhen they fall due. The Board’s policy is to settle financial obligations within 30 days from the endof the month in which the obligation arose.The Board’s maximum exposure to liquidity risk is the carrying amount of financial liabilities asdisclosed in the face of the balance sheet. The Board manages its liquidity risk by:• close management by senior management of its short-term and long-term borrowings, includingmonthly reviews on current and future borrowing levels and requirements;• maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet itsshort-term obligations; • holding investments and other contractual financial assets that are readily tradable in the financial markets; and• careful maturity planning of its financial obligations based on forecasts of future cash flows.The Board’s exposure to liquidity risk is deemed insignificant based on prior periods’ data andcurrent assessment of risk.The carrying amount detailed in the following table of contractual financial liabilities recorded inthe financial statements, represents the Board’s maximum exposure to liquidity risk.The following table discloses the contractual maturity analysis for the Board’s contractual financialliabilities.


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Maturity analysis of contractual financial liabilitiesMaturity dates

Carrying Nominal Less than 1 - 3 3 Months - 1 - 5Amount Amount 1 month Months 1 Year Years

$ $ $ $ $ $2016PayablesSupplies and services 389,625 389,625 389,625 – – –Other payables 197,292 197,292 197,292 – – –BorrowingsHire purchase liabilities 129,400 129,400 3,530 7,060 31,769 87,041

Total 716,317 716,317 590,447 7,060 31,769 87,041

2015PayablesSupplies and services 179,578 179,578 179,578 – – –Other payables 212,207 212,207 212,207 – – –BorrowingsHire purchase liabilities 168,472 168,472 3,256 6,512 29,305 129,399

Total 560,257 560,257 395,041 6,512 29,305 129,399

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(d) Market RiskThe Board’s exposures to market risk are primarily through foreign currency risk and interest risk.Objectives, polices and processes used to manage each of those risks are disclosed below.Foreign Currency Risk

The Board is exposed to insignificant foreign currency risk through its payables relating to purchaseof supplies and consumables from overseas, This is because of a limited amount of purchasedenominated in foreign currencies and a short timeframe between commitment and settlement.Interest Rate Risk

Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuatebecause of changes in market interest rates. The Board does not hold any interest-bearing financialinstruments that are measured at fair value, therefore has no exposure to fair value interest rate risk.Cash flow interest rate risk is the risk that the future cash flows of a financial instrument willfluctuate because of changes in market interest rates.Exposure to cash flow interest rate risk might arise primarily through the Board interest bearingliabilities. Minimisation of risk is achieved by mainly undertaking fixed or no-interest bearingfinancial instruments, For financial liabilities, Emerald Tourist Railway Board mainly undertakesfinancial liabilities with relatively even maturity profiles.




Interest Rate Exposure of Financial Instrument Interest Rate Exposure

WeightedAverage Fixed Variable NonEffective Carrying Interest Interest InterestInterest % Amount Rate Rate Bearing

$ $ $ $2016Financial AssetsCash and cash equivalent 1.05 1,380,330 – 1,065,381 314,949 Term Deposits 2.58 4,407,873 4,407,873 – –Receivables- Sale of goods and services – 310,448 – – 310,448 - Other receivables – 32,225 – – 32,225

Total Financial Assets – 6,130,876 4,407,873 1,065,381 657,622

Financial LiabilityPayables– Supplies and services – 389,625 – – 389,625 – Other payables – 197,292 – – 197,292 Borrowings– Hire purchase liabilities 6.89 129,400 129,400 – –

Total Financial Liabilities – 716,317 129,400 – 586,917



Sensitivity Disclosure AnalysisTaking into account past performance, future expectations, economic forecasts, and management’sknowledge and experience of the financial markets, the Board believes the following movements are‘reasonably possible’ over the next 12 months:• A parallel shift of 2% and -2% in market interest rates (AUD)

The following table discloses the impact on net operating result and equity for each category offinancial instrument held by the Board at year end as presented to key management personnel, ifchanges in the relevant risk occur.

(d) Market Risk (continued)


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Interest Rate Exposure of Financial Instrument Interest Rate Exposure

WeightedAverage Fixed Variable NonEffective Carrying Interest Interest InterestInterest % Amount Rate Rate Bearing

$ $ $ $2015Financial AssetsCash and cash equivalent 1.97 2,234,369 – 1,954,369 280,000 Term Deposits 3.30 2,023,601 2,023,601 – –Receivables- Sale of goods and services – 168,830 – – 168,830 - Other receivables – 16,667 – – 16,667

Total Financial Assets – 4,443,467 2,023,601 1,954,369 465,497

Financial LiabilityPayables– Supplies and services – 179,578 – – 179,578 – Other payables – 212,207 – – 212,207 Borrowings– Hire purchase liabilities 8.00 168,472 168,472 – –

Total Financial Liabilities – 560,257 168,472 – 391,785

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NOTE 23 FINANCIAL INSTRUMENTS (continued)(d) Market Risk (continued)

Sensitivity Disclosure Analysis (continued)

This sensitivity analysis has been performed on the assumption that all other variable remainunchanged.(e) Fair ValueThe fair values and net fair values of financial instrument assets and liabilities are determined asfollows:• Level 1 – the fair value of financial instrument with standard terms and conditions and tradedin 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 observablefor the financial asset or liability, either directly or indirectly; and

• Level 3 – the fair value is determined in accordance with generally accepted pricing modelsbased on discounted cash flow analysis using unobservable market inputs.

The Board considers that the carrying amounts of financial instrument assets and liabilities recordedin the financial statements to be fair approximation of their fair values, because of the short-termnature of the financial instruments and the expectation that they will be paid in full. The Board hasno financial assets measured at fair value.The following table shows that the fair value of all of the contractual financial assets and liabilitiesare the same as the carrying amounts.


Interest Rate RiskCarrying –1% +1%Amount Profit Equity Profit Equity

$ $ $ $ $2016Financial AssetsCash and cash equivalent 1,380,330 (13,803) – 13,803 –Term Deposits 4,407,873 (44,079) – 44,079 –Receivables 342,673 – – – –

Contractual Financial LiabilitiesTrade and other payables 586,917 – – – –Borrowings 310,448 – – – –

(57,882) – 57,882 –2015Financial AssetsCash and cash equivalent 2,234,369 (44,687) – 44,687 –Term Deposits 2,023,601 (40,472) – 40,472 –Receivables 185,497 – – – –

Contractual Financial LiabilitiesTrade and other payables 391,785 – – – –Borrowings 168,472 – – – –

(85,159) – 85,159 –

continued …



(e) Fair Value (continued)

NOTE 24: CONTINGENT LIABILITIESAt the date of the signing of the Certification of the Board, the Board Members were unaware ofany liabilities, contingent or otherwise, that were not already disclosed elsewhere in this report(2015: Nil).


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2016 2015Carrying Fair Carrying Fair

Level Amount Value Amount Value$ $ $ $

Contractual Financial AssetsCash and cash equivalent 3 1,380,330 1,380,330 2,234,369 2,234,369Term Deposits 3 4,407,873 4,407,873 2,023,601 2,023,601Receivables 3 342,673 342,673 185,497 185,497

Total Contractual Financial Assets 6,130,876 6,130,876 4,443,467 4,443,467

Contractual Financial LiabilitiesTrade and other payables 3 586,917 586,917 391,785 391,785Borrowings 3 310,448 310,448 168,472 168,472

Total Contractual Financial Liabilities 897,365 897,365 560,257 560,257

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DISCLOSURE INDEX FOR THE YEAR ENDED 30 JUNE 2016


The Annual Report of Emerald Tourist Railway Board is prepared in accordance with all Victorian legislation. This index has been prepared to facilitate identification of the Board’s compliance with statutory disclosure requirements.

Legislation Disclosure Requirement Page

Charter and Purpose

FRD 22F Manner of establishment and relevant Minister 1, 51FRD 22F Objectives, functions, powers and duties 6,15FRD 22F Services provided 6-14

Management and Structure

FRD 22F Organisational structure 17

Financial and other information

FRD 10 Disclosure index 62FRD 12A Disclosure of major contracts 15FRD 15E Executive officer disclosures 50,51FRD 22F Operational and budgetary objectives and performance against objectives 6, 7FRD 22F Occupational health and safety 8FRD 22F Summary of financial results for the year 7FRD 22F Significant changes in financial position during the year 24, 49FRD 22F Major changes or factors affecting performance 6, 7FRD 22F Subsequent events 61FRD 22F Statement on National Competition Policy N/AFRD 22F Details of consultancies over $100,000 15FRD 22F Details of consultancies under $100,000 15FRD 22F Statement of availability of other information 15, IBCFRD 24C Reporting of office-based environmental impacts 13-14FRD 29A Statement of workforce data 7SD 4.5.5 Risk management compliance attestation 16SD 4.2(g) General information requirements 6-16SD 4.2(j) Sign-off requirements 20

Financial Statements

Financial statements required under Part 7 of the FMASD 4.2(a) Statement of Changes in Equity 23SD 4.2(b) Cash Flow Statement 24SD 4.2(b) Comprehensive Operating Statement 21SD 4.2(b) Balance Sheet

Other requirements required under Standing Directions 4.2SD 4.2(c) Compliance with Australian accounting standards and

other authoritative pronouncements 25SD 4.2(c) Compliance with Ministerial Directions 25SD 4.2(d) Rounding of amounts N/ASD 4.2(c) Accountable officers’ declaration 20

Other disclosures as required by FRDs in notes to the financial statementsFRD 11A Disclosure of ex-gratia payments N/AFRD 21B Responsible person and executive office disclosures 50-51 FRD 102 Inventories 31FRD 103D Non-current physical assets 31-32FRD 106 Impairment of Assets 31FRD 114A Financial Instruments 52-61FRD 119A Transfers through Contributed Capital 23, 35

Legislation

Freedom of Information Act 1982 15Protected Disclosure Act 2012 15Building Act 1983 N/AFinancial Management Act 1994 6,15,16

BOARD OFFICES

Train Operations, Marketing and WorkshopsOld Monbulk Road, BELGRAVE 3160Finance and Administration17 Kilvington Drive, EMERALD 3782

POSTAL ADDRESS

P. O. Box 451, BELGRAVE 3160

BANKERS

Commonwealth Bank of Australia,1 Kilvington Drive,EMERALD 3782

AUDITORS

Victorian Auditor General’s Office,Level 24, 35 Collins Street,MELBOURNE 3000

RECORDED INFORMATION

(03) 9757 0700

ENQUIRIES & BOOKINGS

Phone: (03) 9757 0700Fax: (03) 9757 0705

ADMINISTRATION

Phone: (03) 5968 6257Fax: (03) 5968 6264

EMAIL

[email protected]

WEBS ITE

www.puffingbilly.com.au

MISSION STATEMENTTo preserve, restore and operate the Puffing Billy Railway as Australia’s premierheritage steam railway, in a safe, efficient and economically sustainable manner,for the ongoing education, benefit and satisfaction of the community, customers

and Railway stakeholders, including members, staff and volunteers.


Annual Report produced for the Emerald Tourist Railway Board by Seagull Press, 1672 Burwood Highway, Belgrave, Victoria 3160. Tel: (03) 9754 3196.

emerald tourist railway board annual report2016 · 2016-10-12 · emerald tourist railway board...

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