Parks Victoria - Annual Report 2009-10

CONTENTSREPORT OF OPERATIONSChairman’s message 4Chief Executive’s message 5ABOUT PARKS VICTORIAParks Victoria’s Board 9Board committees 10Organisational structure 11The year in review 12HEALTHY PARKSCaring for the natural environment 13HEALTHY PEOPLEVisitor experience 21Cultural heritage 30SUPPORTING HEALTHY PARKSHEALTHY PEOPLEFire and emergency management 35Commercial operations 39Responsibly managing our resources 41Governance and compliance 44Corporate performance 47Environmental performance 48Financial performance 49FINANCIAL REPORT 51APPENDIXDisclosure index 100Parks Victoria - Annual Report 2009-10 3

CHAIRMAN’S MESSAGEOn behalf of the Parks Victoria Board, I am pleased tosubmit Parks Victoria’s 2009-10 Annual Report.This financial year was one of delivery of key milestonesfor Parks Victoria and the start of some major newinitiatives for the organisation.Parks Victoria took on the management of four newnational parks and a number of other parks protectingnorthern Victoria’s iconic River Red Gum landscape.These new parks represent future directions for ParksVictoria with agreement to establish co-managementwith the Yorta Yorta Traditional Owners in BarmahNational Park and Wadi Wadi Traditional Owners inNyah-Vinifera Park.The Board welcomed the improvement in ParksVictoria’s internal systems, procedures and practicesduring the year. The new Finance and People Systemsupports improved planning, analysis and reporting ofParks Victoria’s resources so we can deliver efficientlyand effectively.On behalf of the Board, I would like to thank MarkStone and his executive team for their leadershipduring the year in which Parks Victoria was again seenas one of the world's leading park agencies.I would also like to thank my fellow Board members forthe care, diligence and leadership through the courseof a very busy year.A highlight of the year for the Board was theinaugural International Healthy Parks Healthy PeopleCongress. The Congress, two years in the making,brought together leading experts and thinkers fromaround the world, and was opened by the Premier,the Hon. John Brumby MP. Speakers shared diverseperspectives and experiences on the Healthy ParksHealthy People message. I congratulate thoseinvolved for their vision and leadership in promotingthe Healthy Parks Healthy People message to anAustralian and international audience.Rob GerrandChairmanJuly 2010Fire management is a growing area of planning anddelivery for the organisation. Parks Victoria deliveredthe first year of the four-year, $21 million MelbourneBushfire Protection Program, increasing and improvingbushfire protection activities around Melbourne.Parks Victoria will play a significant role in continuingto implement the government’s response to theRoyal Commission into the February 2009 fires andin increasing the intensity of our fire preparation,response and recovery efforts.4 Parks Victoria - Annual Report 2009-10

CHIEF EXECUTIVE’S MESSAGEParks Victoria has been developing and promotingthe Healthy Parks Healthy People approach for nearlya decade. This year we significantly broadened thatdiscussion through our inaugural International HealthyParks Healthy People Congress.I am proud of our organisation’s effort in initiating,planning and holding this important event. Expertsfrom around the world gathered and presented newresearch and ideas about the connection betweenhealth and nature. It is the first time such a congresshas been held for a diverse range of disciplines – fromthe health industry to park and recreation agencies tourban planners.At the opening of the Congress, the Premier announcedpark entry fees were to be removed from 1 July. Thiswas a great outcome for Parks Victoria. In Victoria thereare families and pensioners for whom entry fees were abarrier to regular use of some our parks. In keeping withour Healthy Parks Healthy People message, removal offees will allow more people to get out and enjoy parks.We also established new parks this year. There has beensignificant investigation and planning for new RiverRed Gum parks in northern Victoria over a number ofyears. This culminated in four new national parks beingproclaimed: Barmah, Gunbower, Lower Goulburn andWarby-Ovens national parks. The existing Murray-Sunset, Hattah-Kulkyne and Terrick Terrick nationalparks were expanded and other new parks established.All up, more than 100,000 hectares have been added tothe parks estate to protect this iconic landscape.To manage these new parks, we are working closelywith Traditional Owners. As an important first step,Traditional Owner Land Management Boards will beestablished for Barmah National Park with the YortaYorta People and for Nyah-Vinifera Park with theWadi Wadi People. As a practical expression of thispartnership we welcomed five new Yorta Yorta rangersto our organisation during the year. They appear on thecover of this report.This report covers a wide range of issues andachievements. I will highlight two more. For a numberof years, Parks Victoria has worked with otherdepartments and agencies to promote Victoria’sbays and maritime areas. A significant milestone wasreached this year with the completion and opening ofthe Queenscliff Harbour in March after a $38 millionredevelopment. The harbour is now a major touristdestination.Across the state we were fortunate to have a fairly mildbushfire season this year. This assisted us in stepping upour bushfire preparation and planning. Parks Victorialed the Melbourne Bushfire Protection Program. Theprogram delivered new staff, new equipment andincreased protection works around Melbourne. Inaddition, we delivered an extensive planned burnprogram with the Department of Sustainability andEnvironment and continued to implement a major firerecovery program.Mark StoneChief ExecutiveJuly 2010Parks Victoria - Annual Report 2009-10 5

ABOUT PARKS VICTORIAWHO ARE WEParks Victoria is a statutory authority, establishedunder the Parks Victoria Act 1998. The responsibleMinister for the reporting period was GavinJennings MLC, Minister for Environment andClimate Change.Under the Parks Victoria Act 1998, Parks Victoria’sresponsibilities are to provide services to theState and its agencies for the management ofparks, reserves and other land under the controlof the State.Parks Victoria has a strong reputationnationally and internationally as a leadingpark management agency. We are committedto conserving and enhancing the naturalenvironment. Healthy Parks Healthy People isat the core of everything we do. It expressesthe strong link between community health andaccess to nature.Parks Victoria manages parks in the context oftheir surrounding landscape and in partnershipwith Traditional Owners. We work in partnershipwith other government and non-governmentorganisations and community groupsincluding the Department of Sustainability andEnvironment (DSE), catchment managementauthorities, private land owners, friends groups,volunteers, licensed tour operators, lessees,research institutes and the broader community.Parks Victoria - Annual Report 2009-10 7

ABOUT PARKS VICTORIAParks Victoria’s management responsibilities include:❚ 45 national parks❚ 25 state parks❚ 13 marine national parks❚ 11 marine sanctuaries❚ 3 wilderness parks❚ 30 metropolitan parks❚ 60 other parks (including regional andreservoir parks)❚ More than 2,700 natural features and conservationreserves❚ 10,412 formally registered Aboriginal culturalheritage sites❚ More than 2,500 non-Indigenous historic places.Vision and PurposeParks Victoria is committed to preserving the naturaland cultural values of the areas we manage. Ourvision is for an outstanding park and waterway systemprotected and enhanced, for people, forever.Parks Victoria supports recreational and tourismopportunities on public land and waterways. Allcommercial tour operators operating on public landand waterways are licensed by Parks Victoria.The parks and waterways attract 88.5 million visits eachyear. Of these visits, 49 million are to parks and 39.5million are to piers and jetties around the bays.Parks Victoria exists to:❚ conserve, protect, and enhance naturaland cultural values❚ provide quality experiences, services andinformation to its customers❚ provide excellence and innovation in parkmanagement❚ contribute to the environmental, social andeconomic wellbeing of Victorians.What we manageParks Victoria is responsible for managing anexpanding and diverse estate covering more than 4million hectares, or about 17 per cent, of Victoria.This area includes national parks, urban parks, largewilderness areas and 70 per cent of Victoria’s coastline.Parks Victoria also manages a representative system ofmarine national parks and marine sanctuaries. We arethe local port manager for Port Phillip Bay, WesternPort and Port Campbell and the waterway manager forthe Yarra and Maribyrnong rivers.Parks Victoria manages an asset portfolio of around25,000 assets. Assets facilitate recreational activities andexperiences for the community to learn, play, exploreand enjoy Victoria’s parks. They also play a key role inthe protection of natural and cultural features.Assets managed include:❚ 59 visitor centre buildings❚ 760 shelters❚ 1,039 toilets❚ 594 viewing lookouts❚ 62 playgrounds❚ 14,000km of roads❚ 1,254 pedestrian and vehicular bridges❚ 3,673km of walking tracks❚ 84 sporting facilities, e.g. golf courses,ovals and wickets❚ 236 piers and jetties❚ 92 water access points, e.g. boat ramps, rowinglaunches and slippings❚ 969 navigation aids.8 Parks Victoria - Annual Report 2009-10

PARKS VICTORIA’S BOARDThe Board has ultimate responsibility forthe governance of Parks Victoria. On therecommendation of the Minister, Board membersare appointed by the Governor in Council for aperiod not exceeding three years. Members areeligible for reappointment. The Board operatesin accordance with the provisions of the ParksVictoria Act 1998.The Board is responsible for directing andmonitoring the business of Parks Victoriaand is accountable to the Minister for itsoverall performance. It delegates day-to-dayresponsibility for operations and administrationto the Chief Executive and executive team.As at 30 June 2010, the Board members were:Rob Gerrand, BA, FAMI, FAICD (Chairman)Mr Gerrand, Principal of marketing consultancyGerrand & Associates, has wide business experience infinance, transport, agriculture and telecommunications.He is a Director of Alfred Health and of the MentalHealth Research Institute and a former GeneralManager of Group Public Affairs at ANZ.Clarice Ballenden, BA (Hons) MEd.(Deputy Chairman)Ms Ballenden works as an executive coach and was thefounder and Chief Executive Officer of an educationalpublishing company. She has held various seniormanagement positions in the public sector.Ken King, Dip For, BSc (Hons)Mr King was Executive Director, Land and FireManagement with DSE. Mr King is on the Country FireAuthority Board, Metropolitan Fire and EmergencyServices Board, the Habitat Trust and the NaturalResources Conservation League.Noel Harvey, OAM, MAICDMr Harvey has extensive experience in localgovernment with the Shires of Kyneton, Hepburn andMacedon Ranges and is a partner in a natural resourcemanagement company specialising in carbon andvegetation offsets. Mr Harvey is Deputy Chairman ofColiban Regional Water Authority.Lois ApplebyMs Appleby is an Adjunct Professor with VictoriaUniversity and the Honorary Consul for Canada inMelbourne. She is a former Chief Executive Officer ofTourism Victoria.Damein BellMr Bell is the Manager of the Lake Condah SustainableDevelopment Project and the Chair of the GunditjMirring Traditional Owners Aboriginal Corporation. Heis a Director of Native Title Services Victoria Ltd and amember of the Indigenous Advisory Committee for theEnvironment Protection and Biodiversity ConservationAct 1999 (Cwth).Rod Gowans, PSMMr Gowans has worked in executive roles responsiblefor the management of national parks, conservationreserves and the conservation of biodiversity. He isa member of the Victorian Catchment ManagementCouncil and a Trustee of the Trust for Nature.Jennifer Labourne, BBus, FCPAMs Labourne is a former partner of Ernst & Youngand a Director of Finance and Business Services atColac Area Health. She is the Deputy Chair of HealthPurchasing Victoria, a member of the Mental HealthResearch Institute and a member of Harness RacingVictoria’s audit committee.Jan Mahoney BA, PhD, FAICDDr Mahoney has extensive experience in agriculture.She was Chief Executive Officer of Grainfoods CRC Ltdand an Executive Manager with the Grains Researchand Development Corporation. She is a Director ofthe Grampians Wimmera Mallee Water Corporation,a member of the Victorian Catchment ManagementCouncil and an Associate of Leadership Victoria.Parks Victoria - Annual Report 2009-10 9

ABOUT PARKS VICTORIATotal meeting attendance in 2009-10Number of meetings attended (out of 12)Rob Gerrand 12Lois Appleby 11Clarice Ballenden 10Damein Bell 8Rod Gowans 10Noel Harvey 10Ken King 12Jennifer Labourne 11Jan Mahoney 11Board meetings are held on the last Friday of the month.BOARD COMMITTEESThe Audit and Risk Management Committeeassists the Board to meet its financial reporting,accounting, risk management, operational controlpractices and compliance responsibilities. TheCommittee is supported by senior managers andinternal and external auditors. The Board has overallresponsibility for risk management. Parks Victoria hasa risk management strategy in line with Australianstandards. The Committee met five times in 2009-10.Members were Jennifer Labourne (Committee Chair,independent committee member), Rob Gerrand(independent committee member), Noel Harvey(independent committee member), Ken King and PeterCalder (external, independent committee member).The Human Resources and RemunerationCommittee makes recommendations to the Boardon key human resources policies and issues, terms ofemployment for executives and strategic workforceissues. Remuneration is set at levels consistent withState Government policy. The Committee met oncein 2009-10. Members were Noel Harvey (CommitteeChair), Rob Gerrand, Jennifer Labourne and JanMahoney.The Environment Committee provides independentadvice to assist Parks Victoria to develop a strategicand scientific approach to environmental managementof parks. The Committee met three times in 2009-10.Members were Rod Gowans (Committee Chair), ClariceBallenden, Ken King, Jan Mahoney and Nancy Millis(external committee member).The Tourism and Recreation Committee providesadvice on key tourism and recreation opportunitiesto the Parks Victoria Board. The Committee met fourtimes in 2009-10. Members were Clarice Ballenden(Committee Chair), Rob Gerrand, Damein Bell, LoisAppleby and external members Andrew Fairley, EvanHall and Anthony McIntosh.10 Parks Victoria - Annual Report 2009-10

ORGANISATIONAL STRUCTUREParks Victoria’s Chief Executive is appointed bythe Board following consultation with the Minister.The Board reviews the performance of theChief Executive on an annual basis.Parks Victoria Board(Rob Gerrand, Chairman)MargaretGillespieChief Legal CounselMark StoneChief ExecutiveGerard O’NeillDeputy Chief ExecutiveOffice of theChief Executive& BoardSecretaryIan ChristieNeil McCarthyJennifer WolcottAndrew MinackAnnie VolkeringTrevor MilesGeneral ManagerRegionalManagementGeneral ManagerParksGeneral ManagerCorporate Strategyand ServicesGeneral ManagerCommercial BusinessGeneral ManagerSustainableInfrastructureActing GeneralManager Baysand MaritimeParks Victoria - Annual Report 2009-10 11

ABOUT PARKS VICTORIAThe Year in ReviewParks Victoria delivers a wide range of environmental,social and economic benefits for Victorians. In order toachieve its vision for Victoria’s parks and waterways,Parks Victoria has established seven strategic, long termgoals. Each goal relates to a particular program area.Program and goal Actions in 2009-10 PageHealthy parksHealthy PeopleSupporting Healthy Parks Healthy PeopleCaring for the natural environmentGoal: Sustaining healthy parks in atime of climate changeVisitor experienceGoal: Providing healthy physical, social andcultural experiences for peopleCultural heritageGoals: Better understanding and working withIndigenous people to care for Country.Protecting Victoria’s shared heritageFire and emergency managementGoal: Providing responsive and professionalfire and emergency managementCommercial operationsGoal: Growing quality, commercial servicesto support parks.Responsibly managing our resourcesGoal: Operating an efficient, effectiveand sustainable park service. The Government establishing new parks to protectRiver Red Gums Extensive pest plant and animal control program Supporting the delivery of 25,000 million litres ofenvironmental water to priority sites Research delivered through 27 new projects and 42ongoing projects. Opening the new Queenscliff Harbour Delivering significant upgrades to Frankston and Rosebud piers Improving Melbourne's metropolitan trail network connectionsand planning approval for the Darebin Trail Promoting the profile of the Great Ocean Walk and receivinga further $4.1 million for improvements Delivering the International Healthy Park Healthy PeopleCongress. Working towards joint management with the Yorta Yorta People Employing five Yorta Yorta rangers to work on Yorta YortaCountry. Receiving two Indigenous employment awards Conservation heritage works at Andersons Mill and CoolartHomestead. Delivering increased bushfire planning and prevention activitiesin and around Melbourne through the Melbourne BushfireProtection program Working with DSE to deliver the planned burn program Responding to the 2009 Victorian Bushfires Royal Commission. Implementing the first year of the recovery program from the2009 bushfire season. Opening a new kiosk at the Twelve Apostles Releasing a strategic management plan for Tidal River Request for tender process for Mount Buffalo Chalet Reopening Wonthaggi State Coal Mine for underground tours Finalising new leasing arrangements for the Werribee Mansion. Implementing a new finance, budgeting and humanresource system Supporting staff affected by the February 2009 bushfires andinvolved in the Bushfires Royal Commission Decreasing overall water consumption by 21 per cent.1416–171719222223–2424–252630–31313133363636383939–4040404041444812 Parks Victoria - Annual Report 2009-10

HEALTHY PARKSCARING FOR THE NATURAL ENVIRONMENTParks Victoria manages a diverse andrepresentative network of parks that are hometo more than 4,300 native plants and 948 nativeanimal species. The park network includes someof Victoria’s largest and most undisturbedecosystems – landscapes like the Alps, the Mallee,grasslands and inland waters and wetlands.It covers Victoria’s marine national parks andsanctuaries that protect a wide array of marinelife. It also includes smaller, but importanturban parks.Parks Victoria’s conservation programs help toreduce threats to parks and improve the health ofthe natural environment.Parks Victoria’s goal for this program is to sustainhealthy parks in a time of climate change.This section highlights some of the activitiesParks Victoria undertook during the year to carefor the natural environment.Parks Victoria - Annual Report 2009-10 13

HEALTHY PARKSNew River Red Gum parksRiver Red Gum forests are under increasing pressurefrom climate change, drought and reduced waterflows. To better protect these forests, State Parliamentpassed legislation in November 2009 to create new andexpanded national and other parks. The legislationalso enables establishment of Traditional Owner LandManagement Boards to jointly manage parks withTraditional Owners.The new and expanded parks were created on 29 June2010 and this was celebrated at events in several of theparks attended by the Minister for Environment andClimate Change, Gavin Jennings. The new parks includefour new national parks (Barmah, Gunbower, LowerGoulburn and Warby-Ovens) as well as three other newparks and two regional parks. The new parks, togetherwith additions to six existing parks, total more than100,000 hectares. The Murray River Park is expected tobe created later in 2010.Parks Victoria completed a wide range of activities toimplement the new parks including:❚ Employing former timber workers under an industryadjustment program❚ Adopting a co-management approach withTraditional Owners❚ Commencing an ecological thinning trial under theActive Forest Health program❚ Preparing to phase out grazing licences with fencingand stock watering assistance❚ Implementing domestic firewood collection zoningand arrangements❚ Transferring DSE staff to Parks Victoria.Management planningParks Victoria developed a new landscape managementplanning framework that will revitalise park planningthrough the use of web 2.0 technology. The frameworkwill also integrate with new planning approachesarising from the Land and Biodiversity White Paper.Mark Atkinsonand Joel Ritchieat BarmahNational Park.Management planning for the Greater Alpine NationalParks progressed using the wePlan Alpine website as abasis for development. Over 22,000 people visited thesite to keep informed about progress of the draft plan,view discussion papers, contribute views and edit thefirst half of the working draft.14 Parks Victoria - Annual Report 2009-10

Approved management plans were released for:❚ Great Otway National Park and Otway Forest Park❚ Paddys Ranges and Kooyoora state parks❚ Devilbend Natural Features Reserve.The management plans for Alfred National Park,Lerderderg State Park, Lind National Park, MountLawson State Park, Mount Granya State Park, WabbaWilderness Park and Werribee Gorge State Park werereviewed and extended for a further five years.Landscape scale conservationThe Habitat 141º Alliance aims to restore and reconnectthe landscapes spanning the South Australian andVictorian borders. Parks Victoria continued itsinvolvement in the Alliance, facilitating communityand government partnerships to deliver the Alliance’svision. During the year, on ground works weredelivered, a draft strategic plan prepared, and a brand,logo and promotional DVD seeking philanthropicinvestment were developed. Habitat 141º was includedin the Land and Biodiversity White Paper and astrategic partnership was formed with MECU Limited.Threatened species and communitiesParks Victoria works with DSE, research partners andcommunity organisations to protect threatened species.Twelve months on from the trial reintroduction of theBrush-tailed Rock-wallaby in the Grampians NationalPark, seven of the ten animals released have survived.In October, a further five Brush-tailed Rock-wallabieswere released into the park. Remote digital cameras areused to monitor the colony and make sure their habitatremains fox free. The first wild-born pouch young wasrecently discovered.MANAGING RIVER RED GUM PARKSWITH LOCAL KNOWLEDGELocal knowledge will inform the managementof the new River Red Gum parks. TraditionalOwners of the land are central to the futurecare of the parks through co-managementarrangements that are being established firstlyat Barmah National Park with the Yorta YortaPeople and Nyah-Vinifera Park with the WadiWadi People.As part of the Active Forest Health Program,Parks Victoria has commenced an ecologicalthinning trial in the Barmah National Park withtwo teams of former timber workers. Theseteams bring with them vast forest knowledge tothe program.Minister for the Environment and ClimateChange, Gavin Jennings said: “These workershave worked day-in, day-out in these forestsfor years, so they have a wealth of knowledgeabout the natural features and the history ofwhat’s taken place.”Forty-four captive-bred Regent Honeyeaters werereleased into Chiltern-Mt Pilot National Park in May2010. Of the birds released, 32 were confirmed at homein the bush a number of weeks later. Monitoring ofthe birds continued through to July. Parks Victoria,DSE, Birds Australia, Friends of Chiltern-Mt PilotNational Park and other volunteers worked to protectthe Regent Honeyeater’s habitat and ensure theircontinued existence in the wild.The former timber workers will focus onimproving and maintaining the health of theRiver Red Gum forests and assist in deliveringkey aspects of active forest health managementsuch as weed and pest control, fencing works,restoring historic sites and fire risk work.The approach integrates scientific, traditional,local and industry knowledge into themanagement of these forests – benefiting notonly the environment, but also park visitors.Parks Victoria - Annual Report 2009-10 15

❚ Treating more than 6,000 hectares of Blackberry inparks such as Alpine, Burrowa-Pine Mountain, FrenchIsland, Yarra Ranges, Coopracambra, Mitchell River,Snowy River and Errinundra national parks❚ Treating invasive pine wildlings that survived fuelreduction burns as well as Blackberry and SweetPittosporum in Cobboboonee National Park❚ Undertaking field surveys of 14 priority areastotalling around 40,000 hectares of public land,which included 24,700 of Parks Victoria managedland as part of the Glenelg Eden program. Parksincluded Lower Glenelg and Mount Richmondnational parks and Cape Nelson State Park.Information on the pattern of weed dispersal wasgathered to help identify key weed hotspots❚ Treating 774 weed infestations in the Great OtwayNational Park, Otway Forest Park, Anglesea Heathand other crown land reserves with DSE and theColac Otway Shire as part of the Otway Edenprogram.Pest animal managementPest animals have a major impact on native animals andare a significant threat to biodiversity. To reduce theharm caused by pest animals, Parks Victoria implementsextensive control programs throughout Victoria’s parks.The Grampians Ark fox baiting program, now in itseighth year, covers 150,000 hectares of public land,including the Grampians National Park. The programis delivering tangible results with nearly five timesmore native animals found in baited areas. On averagethere have been 28 animals trapped at baited sitescompared to six at non-baited sites. The decline in thefox population is also supported by a lower number ofbaits being taken – down by 52 per cent – and a 30 percent reduction in the amount of fox tracks seen in sandpads. Each fox consumes around 180kg of live foodannually and a significant proportion of that is nativesmall mammals. Significantly reducing the number offoxes makes a real difference to native animals.as Chiltern-Mt Pilot, The Lakes and Little Desert nationalparks, as part of the Southern Ark program.Parks Victoria continued to work with the SportingShooters Association of Australia in pest animal controlprograms. At Murray-Sunset National Park, a programhas been running since November 2003, involving 23volunteers from the Nhill branch. Over 2,000 feral goatshave now been eliminated from the park and volunteershave dedicated over 6,000 hours to the program.Parks Victoria treated over 190,000 hectares forrabbits using a number of methods – baiting, warrendestruction and fumigation. Around 90 per cent of thearea treated was in the Mallee national parks. Sincethe Mallee Bounce Back program began in 2004, rabbitpopulations in the Mallee have declined significantlyand the condition of the semi-arid woodlands hasimproved.Environmental wateringThe prolonged drought has had a significant impact onVictoria’s parks. The environmental watering programhelps keep important ecosystems alive and creates anetwork of drought refuges across the state. Water forthe program is provided by the Australian Government,the Murray-Darling Basin Association and the VictorianGovernment. This year more than 25,000 million litresof environmental water was delivered to prioritysites, including Lindsay Island and Websters Lagoon inMurray-Sunset National Park, as well as Chalka Creekand the Hattah Lakes in Hattah-Kulkyne National Park.Protecting marine valuesParks Victoria participated in the Two Bays program thissummer. Now in its fifth year, the successful program isrun by Pelican Expeditions and its partners to assess thehealth of Port Phillip and Western Port. The programprovides a great opportunity for bay managers,community groups and other stakeholders to worktogether.Fox control continued in the south-west of Victoria, inparks including Discovery Bay Coastal Park and LowerGlenelg and Cobboboonee national parks as part of theGlenelg Ark program. Fox control was also undertakenin East Gippsland in parks where there are highnumbers of fauna species susceptible to predation, suchParks Victoria participated in a number of researchprojects throughout the program, including one led bythe DSE using sea-floor elevation models to producehabitat maps for much of Victoria’s near shore waters.This mapping helps to identify areas that may be at riskfrom human activities.Parks Victoria - Annual Report 2009-10 17

HEALTHY PARKSMarine pestsA number of new species of marine pests werereported within or adjacent to marine parks. A new redalgae species was identified by community volunteersat Point Cook Marine Sanctuary and Japanese kelp(Undaria pinnatifida) was found in the Apollo BayHarbour, next to the Marengo Marine Sanctuary.In addition, an abalone viral disease (AbaloneGanglioneuritus virus) continued to spread along thewest coast of Victoria causing high mortality in theabalone population.To respond to these threats, Parks Victoria is workingwith DSE to assess distribution, identify possiblecontrol measures and actively engage and educatethe community. Parks Victoria also promoted theimportance of clean equipment and hygienic practicesto visitors to avoid spread of the virus to other areas ofthe state.Marine pest surveys were conducted in Shallow InletMarine and Coastal Park, Ricketts Point, Jawbone, PointCooke and Marengo marine sanctuaries.The Two Baysprogram.Parks Victoria continued its monitoring program inmarine national parks and sanctuaries. Sub-tidal reefmonitoring was undertaken in Cape Howe, PointHicks and Port Phillip Heads marine national parks andintertidal reef monitoring in Bunurong, Port PhillipHeads and Point Addis marine national parks andRicketts Point, Jawbone, Point Cooke, Barwon Bluff,Point Danger and Mushroom Reef marine sanctuaries.Water qualityPoor water quality flowing in from catchments is athreat to marine national parks and marine sanctuaries.Parks Victoria supported the EPA and Melbourne Waterin developing a Better Bays and Waterways plan. Theplan, released in December 2009, identifies a broadrange of actions to improve the water quality enteringPort Phillip and Western Port from urban and ruralareas. It will be implemented over five years with ParksVictoria playing a support role in a number of actions.Monitoring and effectivenessThe Signs of Healthy Parks monitoring programprovides Parks Victoria with an understanding ofthe health of parks, evaluates the effectivenessconservation programs and provides early warning ofemerging threats.The program was initiated in 2007-08 at six parks:Brisbane Ranges, Grampians, Wilsons Promontory andGreat Otway national parks, Plenty Gorge Parklandsand Yaringa Marine National Park. Draft monitoringplans prepared for these parks were refined duringthe year and implementation at the Grampians,Great Otway and Wilsons Promontory national parkscommenced. Roll-out of the second phase of theprogram commenced with draft monitoring plansunderway for the Alpine National Park and Corner InletMarine National Park.18 Parks Victoria - Annual Report 2009-10

For the first time, Parks Victoria used remote activatedcameras in its annual small mammal monitoringprogram at Anglesea Heath and the Great OtwayNational Park. Remote cameras provide accurateinformation for much less time and money thantraditional techniques. Images captured showedthe number of foxes in baited areas decreasedsignificantly compared to unbaited areas. Sightings ofsmall mammals such as swamp wallabies, long-nosedbandicoots, southern brown bandicoots and commonbrushtail possums increased.Other monitoring activities carried out during thereporting period include:❚ Monitoring of threatened flora and fauna species,pest animals and over-abundant kangaroo and koalapopulations at many parks across the state❚ Monitoring of grassland condition at more thantwenty grassland reserves❚ Weed monitoring protocols were applied at elevenparks including Grampians, Great Otway andDandenong Ranges national parks.❚ Examination of the effectiveness of ecologicalthinning for maintaining and improving the health ofRiver Red Gums in Barmah National Park❚ Development of a framework for measuring visitorimpacts on natural values at key tourism locationsand design and implementation of monitoring atdesignated sites including the Grampians, GreatOtway and Alpine national parks.In addition to new research, 42 research projectscontinued. These included:❚ A range of projects that investigate the effect offire on flora and fauna in the Mallee, far south-westVictoria and the Grampians and Mount Buffalonational parks❚ Further development of fertility control techniquesfor over-abundant native animal populations❚ An investigation into the effects of climate changeon flora and fauna in the Alpine National Park.Research programParks Victoria collaborates with universities andgovernment research institutions through its ResearchPartners Program. The program collects essentialenvironmental research that is used to support parkmanagement. The research program has developed overtime to focus on large, complex, long-term projects.Over the past year, 27 new research projectscommenced. These included:❚ Development and implementation of techniquesto detect new feral pig, goat and deer populations,focusing on French Island and Warby Range nationalparks and Discovery Bay Coastal Park❚ A study evaluating different ways to improvecompliance in marine national parks and marinesanctuaries❚ An examination of the costs and benefits of variousapproaches used to monitor kangaroo numbers atWyperfeld National Park❚ Development of a cost-effective surveillance andcontrol program for weeds focusing on OrangeHawkweed in the Alpine National ParkParks Victoria - Annual Report 2009-10 19

HEALTHY PEOPLEVISITOR EXPERIENCEParks and waterways are for everyone to discoverand enjoy. There are significant health benefitsfor communities and individuals who spendtime in nature. Parks Victoria provides a rangeof visitor services to encourage people to spendtime in parks.Parks Victoria manages around 1,500 visitor sitesto offer a diverse range of opportunities forvisitors to experience parks. To support visitorexperiences, Parks Victoria builds and maintainspark and recreational facilities, operates a sevenday-a-weekinformation line, runs educationprograms, facilitates community programs,works with volunteers, develops and promotesnature-based tourism products, supports touroperators, and sponsors and runs events.Parks Victoria’s goal in this program is to providehealthy physical, social and cultural experiencesfor people.Some of the activities Parks Victoria undertook in2009-10 to encourage visitors to Victoria’s parksare described in this section.Parks Victoria - Annual Report 2009-10 21

HEALTHY PEOPLEQueenscliffHarbour.Improving and developing facilitiesEach year, Parks Victoria upgrades and improves thepark infrastructure and facilities that enable people toaccess and enjoy parks.Improvements were delivered at two popular visitor sites– the Twelve Apostles and the Wonthaggi State CoalMine. A kiosk was added to the Twelve Apostles VisitorCentre, opening to visitors in time for the busy summerseason. At Wonthaggi, $1.5 million of works werecompleted to make the State Coal Mine safe for visitors.Facilities were improved in urban parks aroundMelbourne. At Yarra Bend Park, structural and drainageimprovements were made to Studley Park Boathouseand Kanes Bridge was improved with upgrades to thedecking and handrails.Improvements were made to toilet facilities in anumber of parks. Toilets from Cardinia Reservoir Parkwere relocated to the You Yangs Regional Park tomeet the growing mountain bike visitor use of thearea. Toilets were then replaced in Cardinia ReservoirPark. Four new toilets were completed in AlpineNational Park at Edmondsons, Fitzgerald, Bivouac andTawonga huts.Parks Victoria improved infrastructure around thebays. Premier John Brumby officially opened thenew Queenscliff Harbour in March 2010 after a$38 million redevelopment. The Victorian Governmentcontributed $5 million to the redevelopment, attractinga further $33 million in private sector investment. Theredevelopment includes an expanded safe harbour,improved environmental protection, an expandedmarine servicing area, improved boat sewagepump-out and fuelling facilities, the latest travel lifttechnology and a working port for the commercialfishing and charter vessel fleets.Other improvements around the bays include:❚ A $2 million upgrade of Frankston Pier❚ A $1.4 million upgrade to Rosebud Pier❚ Refurbishment of Burnley Wharf and Seaford Pier❚ Additional car parking at Patterson River❚ Installation of 10 seagrass-friendly seasonal mooringsat Dromana and 10 at Blairgowrie❚ Improved access to Gunnamatta Ocean Beach❚ A new fishing platform at Corinella Jetty.22 Parks Victoria - Annual Report 2009-10

Asset managementParks Victoria manages over 25,000 assets. Assetson land that are managed by Parks Victoria as aCommittee of Management are recognised in thefinancial statements in this report. Assets managed byParks Victoria on behalf of the Crown are recognisedby DSE.Asset management is an ongoing challenge. Ageingland and marine infrastructure places significantdemands on financial and human resources. ParksVictoria continues to develop a more sustainableasset base by ensuring infrastructure is focused oncommunity need and visitor safety and by pursuingmaintenance and replacement funding strategies.Assets are monitored on a regular basis to ensure theyare safe. Asset maintenance is undertaken throughoutthe year, focusing on key tourism and recreation assetsto ensure visitor safety. Specialist assessments areundertaken on an as needs basis.Planning new urban parksParks Victoria made significant progress towardsestablishing three new parks in Melbourne’s fastgrowingnorth and west – Merri Creek Parklands,Werribee River Park and Toolern Creek Park. Masterplans were completed for the three parks. Constructionof stage one of the planned visitor facilities for theparks is also well underway. Once completed in late2010, the parks will be opened to the public.Parks Victoria continued to work with othermanagement agencies to establish the Barwon RiverParklands. Concept plans were developed for newvisitor facilities at Taits Point, Lake Connewarre StateGame Reserve. Construction of the new visitor facilitiesis due for completion in late 2010.Master planning for Cardinia Creek Parklands (northernsection), Devil Bend Park, Point Nepean National Parkand Frankston Reservoir Park progressed and workswill commence following completion of planning in2010-11.Linking People and SpacesLinking People and Spaces, originally released in 2002,is a strategy for Melbourne’s regional-scale, naturebasedopen space network. Eight years on, there is aneed to update the strategy. Linking People and Spaces2010 will provide a 20-year strategy for continuedgrowth and improvement of Melbourne’s open spacenetwork. Parks Victoria is leading an interagency teamthat includes DSE, Melbourne Water, Growth AreasAuthority, Municipal Association of Victoria and theDepartment of Planning and Community Developmentto update the strategy. A draft will be released forpublic comment in September 2010.Community gardens and dog-friendly parksMinister for Environment and Climate Change GavinJennings officially opened the Carome Homesteadand community garden in Mernda on 17 November2009. Parks Victoria and Mint Inc, the Committeeof Management for Carome Homestead, worked inpartnership to develop a community garden and a café/restaurant at the homestead.Parks Victoria also worked with the local community toset up gardens in the Dandenong Valley Parklands andBraeside Park. Community gardens at Cardinia CreekParklands and Werribee are well underway and will beopened in late 2010.Parks Victoria introduced dog-friendly areas at CardiniaCreek Parklands in February 2010. Dog-friendly areasare planned to be opened at Yarra Bend and Banksiaparks in early 2010-11.The Metropolitan Trail NetworkOver $2.1 million of trail improvements were deliveredduring 2009-10 through the Metropolitan Trail NetworkGrants program. The program provides grants to localgovernments to carry out improvements to the trailnetwork.Eight projects were completed during the year:❚ Planning of the Kororoit Creek Trail(City of Hobsons Bay)❚ Plenty River Trail from Partingtons Flat to the RingRoad (Banyule City Council)❚ Planning and design of the final linking trail fromthe Mullum Mullum Creek Trail linking Yarra ValleyParks Victoria - Annual Report 2009-10 23

HEALTHY PEOPLEParklands to EastLink (City of Manningham)❚ Taylors Creek Trail from Burrowye Crescent to theCreek crossing (City of Brimbank)❚ Hallam Valley Trail from Shrives Road to NarreWarren/Cranbourne Road and from Hallam Road toMenindee Terrace (City of Casey)❚ A section of the Maroondah Aqueduct Trail (Shire ofNillumbik)❚ Warburton Rail Trail from Lilydale Railway Station toMercy College (Shire of Yarra Ranges)Planning for the Darebin Creek Trail project progressedwith a VCAT decision that will allow the connectionof the Lower Darebin Creek Trail to the Main YarraTrail. Parks Victoria also negotiated an agreement withLatrobe Golf Club for the sale of land for the trail link.Bays and Maritime InitiativeOver the past three years, Parks Victoria has beenworking with government departments and agenciesto strategically plan and develop Victoria’s bays andmaritime areas. During the year, Parks Victoria wasappointed lead agency for maritime precinct planning.In addition, a new maritime precincts policy wasincluded in the State Planning Policy Framework. Boththese achievements will help cut the red tape requiredfor statutory approvals.Parks Victoria finalised plans for two key maritimeprecincts – the Portarlington Safe Harbour MasterPlan (released October 2009) and the WilliamstownForeshore Strategic Plan (released April 2010). Bothplans aim to accommodate growth in recreational andcommercial boating on Port Phillip Bay.A new dive attractionThe ex-HMAS Canberra, a former warship, was thefirst artificial reef specifically created for diving inVictoria when it was scuttled in September 2009. Lyingin about 28 metres of water, the ex-HMAS Canberra isan interesting site for divers to explore as many of itsoriginal fixtures have been preserved. Since openingto the public in December 2009, it has proved popularwith about 99 licensed tour operator trips and 129public trips. Dive Victoria, the licensed tour operatorwith exclusive use of two moorings at the site, hasguided more than 4,300 divers on the site.TourismParks Victoria is one of the largest providers andfacilitators of tourism in Victoria, significantlycontributing to state and regional economies. ParksVictoria works in partnership with the tourism industryto facilitate sustainable tourism opportunities in parks.Highlights during the year include:❚ Signing a Memorandum of Understanding withConservation Volunteers Australia (CVA) to developParks Victoria’s research programs into CVA‘NatureWise’ tourism products❚ Working with Ecotourism Australia to offer incentivesto licensed tour operators to become eco-certified❚ Participating in the Australian Tourism Exchangetradeshow to promote the premium tourismproducts and experiences offered by Parks Victoriaand its commercial operators to the internationalmarket❚ Winning the RACV Award for UniqueAccommodation for Parks Victoria’s WildernessRetreats at the 2009 Victorian Tourism Awards.Icon walksThe Grampians Peak Trail is one of Victoria’s new iconwalks, and along with the Great Ocean Walk, is a keyinitiative in Victoria’s Nature-based Tourism Strategy2008-2012. In June 2010, Minister for Regional andRural Development Jacinta Allan announced a $1.3million Regional Infrastructure Development Fundgrant for the trail. The grant will fund a three-day looptrack from Halls Gap in the Grampians. The project isscheduled for completion within two years.Great Ocean WalkParks Victoria continued to work with its tourismpartners to promote the Great Ocean Walk. Amarketing campaign featuring the Great Ocean Walkran during the year that was developed by TourismVictoria to assist positioning Victoria as a great naturebasedtourism destination.The Art of Walking is a documentary that followedthree remarkable people, John Francis, Katarina Wittand Michael Milton, as they walked the Great OceanWalk. A Parks Victoria ranger also features in thedocumentary. As part of Tourism Victoria’s marketingcampaign, 250,000 copies of the documentary were24 Parks Victoria - Annual Report 2009-10

circulated in The Sunday Age and Sydney MorningHerald in April 2010. It was also screened on NationalGeographic’s channel.Number of LicencedTour Operators270239267281311Premier John Brumby announced in June 2010 that theGreat Ocean Walk will be completed with a further $4.1million from the Regional Infrastructure DevelopmentFund. The grant will fund track realignments, newtrailheads, a new underpass and extended campsites.400300Supporting licensed tour operatorsParks Victoria licenses tour operators, many of whichare small businesses operating in regional areas, whorun tours and activities on Victorian public land. At30 June 2010, there were 311 operators licensed, a 14per cent increase on 2008-09. Of these operators, 235held one-year licences and 76 held three-year licences.Licensed tour operators provided activities for 185,041people during the year, made up of 88,241 adults and96,800 children.200100Bushwalking is the most common activity offered byoperators, with 52 per cent offering it as a tour activity.Other activities include: bus tours (provided by 30 percent), bird watching (provided by 20 per cent) andcanoe or kayak tours (provided by 19 per cent).Nine licensed tour operators were contracted by ParksVictoria to help with a variety of fire recovery projects.Tour operators delivered track assessments andmaintenance works, heritage assessments and fourwheel-drivetrack assessment. The program assistedtour operators whose businesses were recovering fromthe 2009 bushfires. Projects were completed at theWilsons Promontory National Park, Cathedral Rangesand Bunyip state parks and Walhalla Historic Area.EventsEach year Parks Victoria supports hundreds of eventsas an organiser, sponsor, contributor, venue provideror exhibitor.Highlights from this year’s program of events include:❚ Organising and hosting the inaugural InternationalHealthy Parks Healthy People Congress❚ Sponsoring the Clean Up Australia Day campaign andits launch on the Yarra River005/06 06/07 07/08 08/09 09/10❚ The Legends on the Lawn concert, Spring HarvestPicnic, Cadbury Easter Egg Hunt and a series ofTwilight Cinema evenings at Werribee Park❚ Sponsoring the Victorian Regional Achievement andCommunity Awards and Victorian Tourism Awards❚ Providing in-kind support for events on the YarraRiver during the Moomba Festival and runningRanger Roo activities in the Children’s Garden.Education and interpretationParks Victoria’s education and interpretationprograms aim to increase community knowledge andunderstanding of Victoria’s parks and biodiversitywhile promoting Healthy Parks Healthy People. Morethan 130,000 people participated in education andinterpretation programs during the year.The program includes talks and activities that are rundaily at Buchan Caves and the Werribee Park Mansion.Interpretive activities are also delivered through theJunior Ranger Program over school holidays at SerendipSanctuary and Wilsons Promontory, Mount Buffalo,Point Nepean, Great Otway and Dandenong Rangesnational parks.Parks Victoria - Annual Report 2009-10 25

HEALTHY PEOPLECurriculum-based programs, supported by theDepartment of Education and Early ChildhoodDevelopment, were held at Wilsons Promontory andthe Dandenong Ranges national parks, SerendipSanctuary and Brambuk – the National Park andCultural Centre in the Grampians National Park. Morethan 15,000 Victorian school students attended aprogram at one of these education centres.INTERNATIONAL HEALTHY PARKSHEALTHY PEOPLE CONGRESSThe inaugural International Healthy ParksHealthy People Congress attracted 1,200participants from 37 countries and 300keynote speakers and presenters. It successfullygenerated discussion and awareness of thegrowing evidence of the connection betweenhuman health and spending time in nature.At the opening of the Congress, Premier JohnBrumby announced that from 1 July 2010, parkentry would be free to encourage people toget active in the great outdoors. The Premiersaid encouraging people to get out and aboutin Victoria’s parks was good for communitywellbeing and good for regional economies.The Congress and its keynote speakersgenerated significant media coverage,positively promoting Healthy Parks HealthyPeople research to a wider audience. Mediacoverage included 37 print articles, 48 radiointerviews and six television stories.The research and experience shared by thekeynote speakers was far-reaching, informativeand practical.The new networks and partnerships formed atthe Congress will be invaluable in taking theHealthy Parks Healthy People agenda aroundthe world.The Environment Corps program provided fundingfor students from five schools to work alongsidepark rangers on a range of conservation projects.Camberwell Grammar joined the program for the firsttime, delivering a tree-replacement program inWattle Park.The partnership between Lara Primary School andSerendip Sanctuary continued. The school holds classesdaily in their classroom at the Sanctuary. During theHealthy Parks Healthy People Congress, students fromGrades 3 and 4 provided guided tours of the Sanctuaryto delegates.Parks Victoria supported DSE’s Summer by the Seaprogram by delivering activities that promotedunderstanding and awareness of Victoria’s marine andcoastal environments. Activities included walks andtalks, rock pool rambles and mudflat meanders at parksincluding Port Campbell National Park, Barwon BluffMarine Sanctuary and Port Phillip.VolunteersFriends groups, individuals, schools, corporatevolunteers and special interest groups provideinvaluable support to Parks Victoria. This year,volunteers dedicated 25,348 days to activities in116 parks and reserves across the state. The timevolunteered is the equivalent of an additional 101full-time employees to Parks Victoria. Of the timevolunteered, 77 per cent was spent on conservationprojects. Many volunteers have contributed years ofvaluable service to the environment such as the Friendsof the Dandenong Ranges National Park and Friends ofHattah-Kulkyne National Park who both celebrated 25years of volunteering with Parks Victoria.26 Parks Victoria - Annual Report 2009-10

Volunteer contributionover the last 5 years (hours)00020019018017016015018617719116119205/06 06/07 07/08 08/09 09/10Parks Victoria’s Campground Host program providesvolunteers with the opportunity to support day-todaymanagement of campgrounds during the busiesttimes of year. This year, 63 volunteers took part in theprogram. The program was extended to include a‘walk host’ on the Great Ocean Walk. This volunteerprovided practical advice and assistance to walkers, anddeveloped good relationships with local businesses andtour operators along the walk.This year 161 projects were funded including grants to:❚ The Barmah Cattleman’s Association to restore theheritage-listed muster yards and buildings in theBarmah National Park❚ The Tarrengower Cactus Control Committee tocontrol wheel cactus in Maldon Historic Reserve❚ The Friends of the Prom to construct a viewing areaand nature trail in Wilsons Promontory National Park❚ The Australian Deer Association to monitor deer inthe Alpine, Mount Buffalo, Burrowa-Pine Mountainand Snowy River national parks.Community engagementSome sections of the community are under-representedin park visitation, often because of language, culturaland access barriers. Parks Victoria works with localgovernment and community agencies to deliverprograms that aim to reduce or remove these barriersand encourage culturally diverse or disadvantagedcommunities to experience parks.The Bilingual Tour Guide program is one initiativebreaking down barriers for people from non-Englishspeaking backgrounds.The main objective of the course is to provide peoplefrom culturally and linguistically diverse communitieswith improved knowledge about the recreationalopportunities in Victoria’s parks and how to access andmake the most of them. During the year, 15 studentscompleted training to become bilingual coastal tourguides. Students came from diverse backgroundsincluding Chinese, African, Russian and Greek-speakingThe four-wheel-drive Campground Host Programexpanded outside the Alpine National Park to another13 campgrounds state-wide, attracting 195 volunteers.A further 45 volunteers participated in the program atthe Alpine National Park.Healthy Parks Healthy PeopleCommunity GrantsHealthy Parks Healthy People Community Grants areprovided to community groups to undertake projects inVictoria’s parks.Parks Victoria'snew bilingualguides.Parks Victoria - Annual Report 2009-10 27

eakout overset copyHEALTHY PEOPLEcommunities. Students were trained in tour guidingand coastal environments and will now provide guidedtours to members of their community. The BilingualTour Guides course is a partnership betweenNorthern Melbourne Institute of TAFE, the FederalGovernment’s Caring for our Country grants programand Parks Victoria.QUARANTINE STATION REVISITEDEarlier in the year, Rosa Miot visited PointNepean Quarantine Station for the first timesince she and her family arrived in Australiaby boat in 1952. The place has a particularsignificance for her. Rosa, her brother, Pasquale,and their mother had an unscheduled stopthere on their voyage to Melbourne to join therest of the family.Rosa, who was five at the time, has a hazyrecollection of the Quarantine Station as astrange place with large gloomy buildings.Pasquale has much stronger memories of thiscold winter’s day on Port Philip Bay.“As an eight-year-old, I have a clearrecollection of being passed down a ropeladder by other passengers, and my mother’sanguish that I might fall in the water, put intoa small boat and taken to a building whichfaced the water. Our clothes were taken fromus and we were given a blanket to keep warmin front of an open fire. After a couple ofhours our clothes were returned. We werethen taken back to the ship and the followingmorning arrived at Station Pier.”Other examples of programs and activities ParksVictoria participated in include:❚ Working with the Victorian Multicultural Commissionto promote parks. As part of this partnership, ParksVictoria held a forum for Melbourne’s Africancommunity, attended the Viva Victoria festival andsponsored Cultural Diversity Week❚ Celebrating Cultural Diversity Week with the Cityof Whittlesea. A cultural event – ‘Jindi Worabak’ (tounite) – was held at Hawkstowe Picnic Area in PlentyGorge Park, bringing together different culturalgroups and celebrating Aboriginal traditions❚ Holding a multicultural day as part of the TwoBays program. People from 18 different nationscelebrated Australia Day on board the Pelican 1,sailing around Port Phillip Bay❚ Supporting the Thomastown Turkish Women’sRecreational Group in a multicultural art projectusing traditional Turkish handwork to illustrateVictoria’s native animals and plants.Visitor researchThe Community Perception Monitor is undertakenon alternate years to gather information from thecommunity about Parks Victoria’s management ofparks. The majority of indicators remained stablein 2010. Two indicators experienced small butsignificant declines:❚ Parks Victoria as a management of national, state,regional parks and conservation reserves (-5 per cent)❚ Parks Victoria as an efficient manager (-5 per cent).Rosa is delighted that the Quarantine Station hasbeen so well preserved and is now open to thepublic. She is happy it is being promoted as animportant historical site that is also educational,especially for the future generations of thosewhose parents migrated here.The 2009 bushfires are likely to have had a negativeimpact on community perception of Parks Victoria, aswas seen after the 2003 bushfires. These issues relateto the perception of Parks Victoria’s managementof fire prevention and fire control. These declinesdid not affect visitation, which remained withinthe target range.28 Parks Victoria - Annual Report 2009-10

Visitor advice and bookingsYearCalls to13 1963Email enquiriesansweredVisits toParkwebOnline bookings(introduced in 2007)2009-10 118,104 8,131 3,140,727 8,7902008-09 111,919 8,163 2,776,713 6,4812007-08 123,000 6,400 2,762,404 5,5092006-07 117,152 6,100 2,676,178 n/a2005-06 102,265 5,000 1,716,807 n/aParks Victoria also conducts a biennial onsitesatisfaction survey of approximately 3,800 visitors at 51parks or piers across the estate. The Parks SatisfactionIndex in 2009-10 was 71, slightly higher than 2007-08’s index of 66. This improvement was due to serviceimprovements made at sites, as well as factors that areoutside management control, such as the weather.The pier satisfaction index also improved four pointsfrom 52 to 56.The Visitor Number Monitor is a biennial surveycovering a sample of mostly Victorians but alsointerstate and overseas visitors. The survey was notconducted in 2009-10. The count from the previousmonitor was 88.5 million annual visits to the ParksVictoria estate, comprising 49 million visits to parks and39.5 million visits to piers. This is an average growthof 2.8 per cent per annum in visits since monitoringbegan in 2001.Visitor Numbers to parksand piers (millions)10090807069.166.473.576.188.5Visitor advice and bookingsParks Victoria operates a seven-day-a-week informationservice. The service provides general advice and currentinformation about parks, events and temporaryclosures. Parks Victoria’s Information Centre assisted118,104 callers and answered 8,131 email enquiriesin 2009-10.6001/02 02/0304/05 06/07 08/09Visits to Parks Victoria’s website have increased by morethan 1.4 million in the past five years. To keep up withnew technology and increasing demand, Parks Victoriabegan a project to upgrade its existing website.The new website will use web 2.0 technology and willbe a collaborative forum with information contributedfrom community partnerships, key stakeholders andactive parks users. The new website will be up andrunning next year.Parks Victoria - Annual Report 2009-10 29

HEALTHY PEOPLECULTURAL HERITAGEFor the Aboriginal community in Victoria, theland Parks Victoria manages is an essentialelement of their social, spiritual, economicand physical wellbeing. Around 10,400 of thearchaeological cultural heritage sites registeredwith Aboriginal Affairs Victoria are found inparks. While most sites are physical, others haveno physical form but are still significant to theliving culture of Aboriginal people through theirlink to ancestors, traditions, language, story andceremonies.In addition to Aboriginal heritage sites, ParksVictoria manages post-Settlement heritageassets, including 150 historic buildings, gardensand 2,500 historic places and collections. Thesehistoric places, objects and sites help peopleunderstand the beliefs, hopes and aspirationsof previous generations and give an insight intowhat life was like for them.Parks Victoria's goals in this program are tobetter understand and work with Indigenouspeople to care for Country and to protectVictoria's shared heritage.Co-management with Traditional OwnersIn November 2009, the State Government announcedit would be establishing Traditional Owner LandManagement Boards to co-manage Barmah NationalPark with the Yorta Yorta People and Nyah ViniferaPark with the Wadi Wadi People.Parks Victoria has been working with the Wadi Wadiand Yorta Yorta people to progress and support theestablishment of Traditional Owner Land ManagementBoards in line with the Government’s River Red Gumcommitment. Parks Victoria and the Yorta Yorta NationAboriginal Corporation developed a CommunityStrengthening Plan to identify both party’s needs andresources for implementing co-management atBarmah National Park.One of Parks Victoria’s Executive was appointed tothe Yorta Yorta Joint Body. This body advises theMinister for Environment and Climate Change on themanagement of areas set out in the Yorta YortaCo-operative Management Agreement.30 Parks Victoria - Annual Report 2009-10

In partnership with the Yorta Yorta Nation AboriginalCorporation and the Federal Government’s Departmentof the Environment, Water Heritage and Arts, ParksVictoria employed five Yorta Yorta People to workas rangers in Barmah National Park and other parkson Yorta Yorta Country. The federal program willcontribute $2 million over four years to the initiative.Over the next three years, these new rangers willundertake an intensive training and developmentprogram, completing a Certificate III in Conservationand Land Management, a Certificate IV in Business anda Diploma in Governance.Parks Victoria continued to work with the BarengiGadjin Land Council (Wotjobaluk, Jadawadjali, Jaadwa,Wergaia and Yupagulk peoples) for the managementof the Little Desert and Wyperfeld national parks,Lake Albacutya Regional Park and Mt Arapiles – TooanState Park. Parks Victoria also worked effectively withthe Gunditj Mirring Traditional Owner AboriginalCorporation through the Budj Bim Council for the comanagementof the Mt Eccles National Park – Budj Bimin south-west Victoria. A planning team commencedwork with the Gunditjmara People to develop thestate’s first Joint Park Management Plan for the MountEccles National Park – Budj Bim. The plan will alsoinclude other parks in the Gunditjmara landscape –Lower Glenelg, Mount Napier and Mount Richmondnational parks and Discovery Bay Coastal Park.Aboriginal employmentIn addition to the Yorta Yorta rangers team, ParksVictoria recruited a further 14 new Aboriginal staffmembers bringing the percentage of Aboriginal stafffrom 5.5 per cent in 2008-09 to 7.2 per cent.Parks Victoria’s commitment to Aboriginal employmentwas recognised by the Institute of Public AdministrationAustralia. Parks Victoria received the IndigenousEmployment Initiative Award for its achievements inincreasing workforce participation of Aboriginal peoplein the Victorian public sector. The award acknowledgedParks Victoria’s commitment to supporting Aboriginalemployment and economic development.Parks Victoria’s dedication to Aboriginal employmentwas further recognised by WISE Employment,together with the Northern Close the Gap IndigenousEmployment Working Group, at their BusinessRecognition Ceremony.Heritage program at Point Nepean National ParkPoint Nepean played an important role in shaping theearly settlement, quarantine and defence of Victoria.Parks Victoria is developing an interpretation programfor the park that conveys this history to visitors.Comprising self-guided tours, interpretation signs andweb-based oral histories, this program builds on theextensive conservation repair and maintenance worksbeing implemented and the progressive openingof several of the historic buildings with interpretivedisplays.Parks Victoria completed a Conservation ManagementPlan for the former army firing range. ConservationManagement Plans are also in place for the PointNepean forts, the Quarantine Station and the SouthChannel Fort. Together, they provide guidance for thefuture conservation of the park’s heritage values.Yorta Yortastaff at BarmahNational Park.Parks Victoria - Annual Report 2009-10 31

HEALTHY PEOPLEPROM’S RICH HISTORY UNCOVEREDAnyone who has visited Wilsons Promontory NationalPark will know the beauty of its rugged coastlines anddiverse flora and fauna. What is not as obvious is therich cultural heritage that also characterises the area.Exploring the park further reveals archaeological sitesthat include shell ‘middens’ and flaked stone artefacts.These represent an early history of Aboriginaloccupation dating back at least 6,500 years.increasing our understanding of this culturallandscape.Historic sites throughout the park also provideevidence of a fascinating European historythat includes sealing and whaling, coastal andgeological surveying, prospecting and mining,timber milling and pastoral runs.The February 2009 bushfire that affected half ofthe park led to more discoveries about this area’scultural heritage. Detailed surveys were undertakento assess the effects of the fire on both Aboriginaland European sites of significance.Traditional Owner groups worked with Parks Victoriato assess 45 known Aboriginal sites. During this time,they also identified 37 new Aboriginal places, someextending over large areas and estimated to comprisethousands of artefacts. Although previous recordsindicated that most of the Aboriginal archaeologicalsites are along the coast, new inland places werediscovered during these assessments, greatlyEighteen new historic sites representing theseactivities were discovered during the post-firesurvey. Discoveries made include confirmation ofan early attempt to settle on the north-westernregion of Wilsons Promontory. The location ofthe Seaforth settlement and township’s pub nearMount Singapore were confirmed.The first tangible evidence of one of Victoria’searliest tin mines established post-World War Iwas also found in the Mount Hunter region.The small settlement comprised roughweatherboard huts, a blacksmith forge, a storeand explosives magazine.32 Parks Victoria - Annual Report 2009-10

Ritchie’s Hut rebuiltThe rebuild of Ritchie’s Hut, on the Howqua River nearMansfield, was completed during the year with a lot ofhelp from the community. Volunteers contributed 2,500hours to the project. The original hut was lost in theGreat Divide fires in 2006-07. The rebuild commencedin May 2008 with community volunteers, the VictorianHigh Country Huts Association, the Ritchie family andParks Victoria. Volunteers sourced timber from localforests, which they cut into slabs using a traditionaladze and broad axe. The hut was then dismantled andtransported to 8 Mile Flat by hand, pack-horse andhelicopter. The rebuilt hut reopened in April 2010.CHALET TURNS 100The much loved Mount Buffalo Chalet turned100 this year. Nearly 2,000 turned out for thecelebrations in May.For generations, the chalet was the place togo for a weekend getaway. The centenarycelebrations were a time for the communityto gather and reminisce about time spent atthe chalet.Heritage worksWith $20,000 of funding from Heritage Victoria, aseries of informative signs were installed at AndersonsMill in Smeaton. They provide information about thehistory of each of the heritage buildings and structures,the flour milling industry and the Anderson family, andallow visitors to take a self-guided tour.Parks Victoria received a grant of $131,000 from theDepartment of Environment, Water, Heritage and theArts for conservation heritage works at Andersons Mill.The grant funded repairs to the historic trestle legs,flume and wheel structures. The majority of the workswere completed during the year.Parks Victoria received a further grant of $72,727from the Australian Government Jobs Fund forheritage repairs at Coolart Homestead. The grantfunded repainting of the exterior of the homestead,replacement of rotted timber on the veranda and otherminor maintenance works.CommunitycelebratesRitchie's Hutrebuild.Chief Ranger Peter Jacobs said: “It was fantasticto see the community coming along in suchgreat numbers. Among the many guests onthe day were former chalet workers, guests,bus drivers, and relatives of the founders ofthe chalet. Everyone has a chalet tale to tell.The day really underlined that this place isextremely important to people and part of ourshared history.”Visitors filled the halls of the chalet to inspectits many historic artefacts, ornaments andphotographs. Local staff and volunteers inperiod dress played croquet on the lawns. Musicwas provided by the Mount Beauty Brass Bandand local musicians. The ranger-guided toursand behind-the-scenes look at the chalet werealso well received.The State Government has been workingwith the community to ensure a sound futurefor the chalet. Parks Victoria took over themanagement of the chalet in May last year.Since then, Parks Victoria has run a publictender process seeking interested investors.Legislation was introduced into parliament toincrease the leasing period to up to 50 years.Parks Victoria - Annual Report 2009-10 33

SUPPORTING HEALTHY PARKS HEALTHY PEOPLEFIRE AND EMERGENCY MANAGEMENTParks Victoria works with DSE to prevent, preparefor, respond to and recover from bushfires onpublic land. Parks Victoria also supports leadagencies to manage other emergencies, such asfloods, storms, cetacean strandings, oil spills andsearch and rescue.Parks Victoria’s goal in this program is to provideresponsive and professional fire and emergencymanagement.Parks Victoria - Annual Report 2009-10 35

SUPPORTING HEALTHY PARKS HEALTHY PEOPLEOver the course of the hearings, the Commissionheard evidence from 434 witnesses. Parks Victoriaprepared 30 witness statements and 10 Parks Victoriastaff members appeared as witnesses before thecommission.Parks Victoria supported DSE to implementrecommendations of the Victorian Bushfires RoyalCommission’s Interim Report released on 17 August2009, such as the new Code Red/Catastrophic FireDanger Ratings. There will be a continued involvementfollowing release of the final report.Bushfire responseThere were 609 bushfires reported across the stateduring the 2009-10 season, affecting 37,232 hectares.Of the bushfires reported, 205 started in Parks Victoriamanaged areas, burning 8,708 hectares. The largestof these started on 2 November 2009 at Cape Conranin East Gippsland, resulting in 4,667 hectares of landbeing burnt.Planned burningEach year, Parks Victoria works with DSE to prepare fireoperations plans and implement an extensive plannedburn program on public land. In 2009-10, 703 burnswere conducted as part of the DSE program, treatingan area of more than 146,000 hectares.The fire operations plans for 2009-10 included aprogram of about 60,000 hectares of Parks Victoriamanaged land to be treated by planned burning. Thistarget was exceeded with just over 68,000 hectarestreated (total of 226 individual burns). Parks Victoriamanaged land made up nearly 50 per cent of the areatreated by the planned burn program.2009 Victorian Bushfires Royal CommissionOn 27 May 2010, the Royal Commission concluded155 days of public hearings into the 2009 Victorianbushfires.Melbourne Bushfire Protection programIn July 2009, the Victorian Government allocated $21million over four years to improve fire managementplanning and prevention activities in and around theouter Melbourne fringe. Parks Victoria is leading theprogram, working with DSE, the Country Fire Authority,Metropolitan Fire and Emergency Services Board andthe Municipal Association of Victoria.In the first year of the program, Parks Victoria increasedfire preparation works on public land and improvedcommunity information and engagement.In 2009-10, $4.1 million was spent onactivities such as:❚ The purchase of eight ‘slip on’ units for fire fighting❚ Creation of 21 new positions to deliver the program❚ Mapping and spatial analysis of the 550km of existingfuel breaks❚ Improvements to 113km of the fuel-break network❚ Slashing of grass and undergrowth at theDandenong Ranges National Park, Warrandyte andArthurs Seat state parks, Lysterfield Park, Langwarrinand the Pines flora and fauna reserves and othersmall reserves on the Mornington Peninsula❚ Installing information signs in metropolitan parks❚ Flora and fauna assessments❚ Developing procedures for native vegetationassessments❚ Increasing community engagement through a mediacampaign, fact sheets and community meetings.36 Parks Victoria - Annual Report 2009-10

SIGNS OF RECOVERY AT KINGLAKE NATIONAL PARKIn the 18 months since bushfires swept across thestate in February 2009, there have been encouragingsigns of recovery. At Kinglake National Park, plantsand animals are demonstrating remarkable resilience.In a damp gully a few kilometres east of MountSugarloaf, two kilometres of the blackened bush wasfenced off by park rangers just after the bushfire.Over a year later, the area is showing new life. Theswamp bush pea (Pultenaea weindorferi), a nativeplant listed as “vulnerable”, has sprouted in itsthousands.“Once all this starts flowering, the birds will comein, the insects will feed off the nectar,” says RangerTony Fitzgerald.In January, rangers spotted the first koala since thebushfires. It was a healthy young male who hadmade a long journey estimated to have been manykilometres from the nearest unburnt forest.“It was a welcome surprise to see this animal back inthe burnt forest this soon after the fire,” said Rangerin Charge, Ion Maher.Another welcome return is the song of the lyrebird,now heard throughout the park. Mr Maher said:“They were quite remarkable survivors. I rememberseeing one down near Masons Falls a couple of weeksafter the fire.”For the fire affected area of Kinglake, the mostimportant unburnt linking forests are aroundToolangi and south to St Andrews andChristmas Hills.To help more native animals return to the park,thousands of native trees and grasses have beenplanted at St Andrews. An 80-hectare former dairyfarm was planted with 7,000 eucalypts and 11,000understorey species and then fenced to protect themfrom browsing animals.“For a lot of people the recovery of natural areas isvery important in their own recovery,” Mr Fitzgeraldsaid. “When the first trees started to sprout, the firstgrasses started to flower and the first birds started tobe heard in the forest again, there’s no doubt that fora lot of people that was very uplifting.”Parks Victoria - Annual Report 2009-10 37

SUPPORTING HEALTHY PARKS HEALTHY PEOPLEConservationVolunteersAustralia’s GreenCorps program– volunteersundertaking firerecovery works.Sites opened include:❚ Mount Sugarloaf, Mount Sugarloaf Road, MountSugarloaf Ridge Track and the park entrance area❚ Frank Thomson Reserve where the carpark was reestablishedand a new gas barbecue installed❚ Some tracks in the Everard and Wombelano blocks.In the Yarra Ranges National Park, the Summit Walkat Lake Mountain and access trails up to Mount StLeonards, Mount Monda and Dom Dom Saddle (theBicentennial Trail) were reopened. Cambarville and keyadjacent walking tracks also reopened, including theBig Tree and the Big Culvert walks.Almost all of Bunyip State Park was reopened to thepublic. Toilets and visitors’ facilities were rebuilt at NashCreek camping area. Dyers and Mortimer visitor siteswere reopened along with the extensive trail bike andfour-wheel-drive tracks network.Preparing for emergenciesParks Victoria reviews emergency management plansannually so they remain current and effective. Anemergency scenario is used to test the effectiveness ofthe plans. In parks with large numbers of visitors, suchas Wilsons Promontory and Port Campbell nationalparks, Victoria Police is involved in the test emergencyscenario.Search and rescueParks Victoria supported Victoria Police, the StateEmergency Services and other agencies in 11 search andrescue operations in parks across the state overthe year.Park recoveryAlmost 100,000 hectares of parks and reservesmanaged by Parks Victoria were affected by the 2009Black Saturday bushfires. With 309 significant assetsdamaged or destroyed, Parks Victoria implementedthe first year of an extensive rebuilding program in2009-10.Most of the Cathedral Range State Park reopened tothe public in December 2009. The majority of walkingtracks are open and trail markers, trailhead signs anddirectional signs are progressively being replaced.New decking and railing were installed at Cooks MillHeritage area.The bushfire recovery program has received invaluablesupport from volunteers and community groups.Conservation Volunteers Australia provided assistanceto regions critically affected by the Black Saturdaybushfires. Green Corps programs were delivered atWilsons Promontory National Park, Kinglake NationalPark and Bunyip State Park. Volunteers repaired 40kmof track, removed weeds from 21 hectares, planted7,900 trees and identified 269 orchids.With nearly all of Kinglake National Park’s visitorfacilities destroyed, a new master plan for the park isbeing developed. Rehabilitation work and assessmentof fire damage continued throughout the year, andareas were progressively reopened.38 Parks Victoria - Annual Report 2009-10

COMMERCIAL OPERATIONSParks Victoria aims to improve its financialposition and the services offered to visitors toparks, through its commercial operations. ParksVictoria’s goal in this program area is to growquality, commercial services to support parks.Commercial operationsThe kiosk at the Twelve Apostles Visitor Centre nearPort Campbell opened on 17 December 2009, offering arange of refreshments and personal convenience itemson the site for the first time.This section focuses on Parks Victoria’sdevelopment of commercial services andproducts to generate additional revenueand provide new services and experiences topark visitors.External funding was secured to implement a newcommercial business system. Parks Victoria undertookdetailed planning and an expression of interest processduring the year. The new system will include onlinebookings, point of sale and commercial transactions.Significant progress was made towards improvingfacilities and services at Tidal River. The TidalRiver General Store was refurbished to create acontemporary retail environment – improving thequality of customer service and daily managementoperations. The refurbishment included the takeawayand supermarket sections, as well as implementingprojects that have significantly reduced energy use.A strategic directions plan for Tidal River was releasedParks Victoria - Annual Report 2009-10 39

SUPPORTING HEALTHY PARKS HEALTHY PEOPLEin April 2010. The plan sets the direction for highquality, sustainable visitor experiences and services overthe next five years.WONTHAGGI’S MINING HISTORY PRESERVEDParks Victoria celebrated the centenary of theWonthaggi State Coal Mine and the officialreopening of the mine for public undergroundtours with the community in March.Occupational health and safety concerns closedthe mine in 2000, but after an investment of$3 million in State and Federal governmentfunding, the mine is now safe again for visitors.Parks Victoria’s mine manager, BraxtonLaine, said the mine is of significant culturalvalue. “Without the mine there would be noWonthaggi. It has a huge social history. Whenyou take visitors down and they see that theminers crawled into rabbit holes with theirpicks and shovels, they say they can’t imagineworking in such conditions. But it was a way oflife, how you earned money.”The work of volunteers and the support of thecommunity were essential to the project. Over$50,000 in skilled labour was donated overthe years with local plumbers, electricians andother tradespeople offering their services tothe project. In the past year alone, volunteerscontributed more than 713 hours of their timeto the cause. The mine is also important inattracting visitors to Wonthaggi, supporting theregional economy. Construction has begun onthe mine’s new visitor information centre thatis scheduled to open in November 2010. Thecentre will tell the story of the town’s mininghistory and will include a theatre, conferencearea, education room, café and retail store. Itwill encourage visitors to stay longer.Also at Wilsons Promontory, a targeted marketingcampaign promoting the Wilderness Retreats waslaunched in October 2009. The campaign used thetagline ‘Discover Comfort in Undiscovered Places’ andcontributed to annual growth in occupancy.Commercial projectsFollowing the launch of Victoria’s Nature-BasedTourism Strategy, extensive planning and consultationwas undertaken to develop tree-based eco-adventurefacilities at selected sites across the state. An expressionof interest process resulted in strong investor attention,with preferred proponents selected to proceed todetailed planning.Works to reopen the Mount Buffalo Chalet progressedwith an open market request for tender processconducted to secure the lease, operation andredevelopment of the site.Leases and licencesA total of 73 agreements including leases, licences andsection 27 consents under the National Parks Act 1975were finalised in 2009-10, with ongoing managementsupport provided for more than 450 lease and licenceagreements across the state.After four years of negotiations, the lease for theredevelopment of the Yarra Bend Golf Course wassigned. The lease will see the investment of $3 millionin a golf driving range and the construction of newretail and café facilities. In addition, the consortium willassume full responsibility for golf course maintenance.Parks Victoria successfully facilitated transfer of theWerribee Mansion hotel lease to new operators. TheLancemore Group, one of Victoria’s leading boutiquehotel and conference operators, is now managing theoperation of the hotel.Parks Victoria worked with Sport and RecreationVictoria in the development of a new $50 million StateAthletics Centre at Albert Park. Parks Victoria playeda key role in ensuring appropriate leases and licenceswere in place for the redevelopment.40 Parks Victoria - Annual Report 2009-10

RESPONSIBLY MANAGING OUR RESOURCESParks Victoria has sound systems and processesin place to support the delivery of its servicesand strengthen its operations. There are manystaff who work behind the scenes to keepParks Victoria running – from finance to humanresources, corporate governance to informationsystems. This section focuses on the staff andthe framework that supports delivery of ParksVictoria’s core activities. Parks Victoria’s goalin this program area is to operate an efficient,effective and sustainable parks service.New Finance and People SystemParks Victoria completed a two-year project toimplement a new finance, budgeting and humanresource system during the year. The system includesa learning and development module, employeeand manager self-service and electronic paymentfunctionality. The new system provides a basis forimproved business analysis, planning, complianceand reporting and will support the new commercialbusiness system and other systems into the future.The implementation of the new system was a majorchange for the organisation.Merit and equityParks Victoria is committed to maintaining a workplacefree of harassment, discrimination and bullying.These principles are documented in the VictorianGovernment’s merit and equity standards andembodied in the Public Administration Act 2004. ParksVictoria communicates and adheres to the principlesset out in the Act.Parks Victoria - Annual Report 2009-10 41

SUPPORTING HEALTHY PARKS HEALTHY PEOPLEAs an employer, Parks Victoria ensures that:❚ Its decisions are based on merit❚ Its staff are treated fairly and reasonably❚ Equal employment opportunity is provided❚ There are reasonable avenues of redress againstunfair or unreasonable treatment.All Parks Victoria staff are required to abide bythe public sector code of conduct, which requiresstaff to:❚ Act with impartiality❚ Display integrity and avoid conflicts of interest❚ Show accountability for their actions❚ Provide responsive service.Equal opportunityParks Victoria is finalising its next Equal OpportunityManagement Plan (2010 – 2013). This plan will continueto improve equity in employment, access to programsand services and raise awareness of equity and diversitywithin the organisation.Disability Action PlanConsistent with Section 38 of the Disability Act 2006,Parks Victoria prepared a Disability Action Plan thathelps Parks Victoria plan for, and implement changesto, practices, services and infrastructure so that theyare more inclusive and accessible for people withdisabilities.Parks Victoria will continue to ensure it recruits staff onmerit and reduces barriers to people with a disabilityobtaining and maintaining employment. All ParksVictoria staff will be required to complete a new Equityand Diversity e-Learning course that aims to increasedisability awareness.Occupational health and safetyParks Victoria is committed to maintaining a workplacethat is safe, minimises risk to health and promoteswellbeing. We aim to establish an environment thatprovides the highest standards of health and safety foremployees, contractors, volunteers and the public.Parks Victoria’s priority activities for occupationalhealth and safety are set out in its Occupational Healthand Safety Strategy 2007 – 2010. This first strategy hasnow been implemented and development of a newframework to guide activities for the next three yearshas commenced.Achievements in 2009-10 included:❚ An asbestos audit of all Parks Victoria’s work centrescompleted — removal works based on the findings ofthe audit commenced❚ Roll-out of an online chemical management systemthat gives staff easy access to current informationand allows them to maintain a manifest of chemicalson-site❚ Inclusion of occupational health and safety modulein Parks Victoria’s e-learning program that providesinformation to new staff as part of their inductionprogram and allows existing staff to refresh theirknowledge❚ 247 of Parks Victoria’s managers and supervisorscompleted safety leadership training❚ An OHS Representatives Training Forum for 60 staffelected as Health and Safety Representatives underthe Occupational Health and Safety Act 2004❚ Introduction of a statewide influenza vaccinationprogram❚ Development of a Critical Incident EmergencyResponse Plan.Parks Victoria has been, and will continue to be, apartner with multiple disability agencies to ensureprogress across education and inclusive disabilityprograms exists.42 Parks Victoria - Annual Report 2009-10

Workforce dataEmployee(Headcount)Ongoing EmployeesFull TimeEmployee(Headcount)Fixed Term & Casual EmployeesPart TimeEmployee(Headcount) FTE FTEJune 2010 1081 945 136 1026.6 70.4June 2009 1011 855 156 936.9 33.0June 2009 June 2010Fixed Term& CasualOngoing EmployeesEmployeesEmployee(Headcount) FTE FTEOngoing EmployeesFixed Term& CasualEmployeesEmployee(Headcount) FTE FTEGenderMale 684 672.5 12.8 737 731.9 42.8Female 327 264.4 20.2 344 294.7 27.6AgeUnder 25 10 9.5 4.4 20 20 4.425 – 34 165 149.7 9.8 180 172.4 28.535 – 44 282 248.3 8.2 313 286.3 22.545 – 54 306 295.5 5.9 320 310.1 11.055 – 64 231 220.0 4.5 229 221.7 4.0Over 64 17 13.9 0.2 19 16 0.0ClassificationGrade 1 7 2.7 1.7 2 1.4 0.0Grade 2.1 155 135.3 10.5 55 52.9 25.1Grade 2.2 106 99.8 1.0 213 195.9 4.9Grade 2.3 165 155.3 2.3 145 137.3 2.0Grade 3 81 78.0 1.9 133 130.3 7.8Grade 4 129 119.1 3.0 162 156.4 8.0Grade 5 93 81.3 3.6 102 91.6 6.8Grade 6 123 117.0 4.0 122 117.4 6.8Grade 7 54 52.6 3.0 51 50.2 5.0Grade 8 81 78.8 2.0 78 75.9 3.0Executives 17 17.0 0.0 18 17.4 1.0Parks Victoria - Annual Report 2009-10 43

SUPPORTING HEALTHY PARKS HEALTHY PEOPLEStaff Health and WellbeingParks Victoria undertakes a health and wellbeingprogram to:❚ Provide staff, and in some cases immediate familymembers, with access to health and wellbeinginformation and a range of support programs in theshort, medium and long term❚ Monitor staff health and wellbeing❚ Support staff during and following critical incidents❚ Enable the healthy recovery of staff.Support has continued for staff and immediatefamily members after the February 2009 fires, withthe voluntary use of external critical incident stressmanagementcounsellors, the Parks Victoria EmployeeAssistance Program and 31 internal trained peersupporters. Support has also continued for staffinvolved in giving evidence or preparing to giveevidence in the Royal Commission hearings. ParksVictoria continued to participate in the NetworkedEmergency Organisation Health and Fire andEmergency – Health & Wellbeing Committee. ParksVictoria is working with beyondblue to deliver tailoredprograms to staff and their families in fire-affectedareas with the aim to increase awareness of healthissues after traumatic events.GOVERNANCE AND COMPLIANCELegislative frameworkUnder the Parks Victoria Act 1998, Parks Victoria’sresponsibilities are to provide services to the State andits agencies for the management of parks, reservesand other land under the control of the State togetherwith waterways land (within the meaning of the WaterIndustry Act 1994) for the purposes of conservation,recreation, leisure, tourism or water transport. ParksVictoria’s responsibilities also extend to piers and jettiesand recreational boating in Port Phillip and WesternPort as a port manager under the Port Services Act 1995and as waterways manager under the Marine Act 1988.With the approval of the Minister, it may also provideservices to the owner of any other land used for publicpurposes for the management of that land. The Actrequires that Parks Victoria must not act in a way that isnot environmentally sound in carrying out its functions.Parks Victoria is appointed as a committee ofmanagement of various reserves pursuant to the CrownLand (Reserves) Act 1978. Currently, Parks Victoria isthe committee of management for a range of reservesincluding Albert Park, Werribee Park, Yarra Bend,several gardens in the Dandenong Ranges and piersand jetties in Port Phillip and Western Port.Learning and developmentRangers and field staff are trained in a wide varietyof skills including operating four-wheel-drive vehicles,plant and equipment through to the enforcement oflegislation. Health and safety training continues tobe at the forefront of the training program as doesfire training.This year, Parks Victoria introduced e-learning throughthe new Finance and People System to provide a widerrange of training to all staff.Leadership development remains a priority for ParksVictoria. This year, leadership training was provided tothe senior executives as well as to emerging leaders,and newly appointed supervisors. A Senior Women’sForum supported women in leadership roles. Theforum is designed to provide support, mentoring andleadership opportunities to women in the organisation.Parks Victoria is responsible for managing:❚ All areas under the National Parks Act 1975 –approximately 3.3 million hectares❚ Reserved and unreserved Crown land includingconservation and other reserves, metropolitan parks,regional parks and historic areas❚ Recreational and other activities on waterways landin the metropolitan area as defined in the WaterIndustry Act 1994❚ Piers and jetties in Port Phillip and Western Portand recreational boating on these bays pursuant topowers conferred on it as a port manager under thePort Services Act 1995 and Marine Act 1988❚ A number of other areas under leases or otherarrangements (including reservoir parks).Parks Victoria’s relationships and responsibilities forthe provision of services to the state are set out in aManagement Services Agreement (MSA) betweenParks Victoria, the Secretary to DSE and the Minister forEnvironment and Climate Change.44 Parks Victoria - Annual Report 2009-10

Parks Victoria’s services are delivered within Statepolicy and contractual agreements, and in accordancewith statutory responsibilities. The MSA sets outthe principles for the delivery of park managementservices, lists the land to be managed and sets out thekey functions of Parks Victoria and DSE.The current MSA includes a commitment to engagestrategically and work in partnership. DSE is thedesignated lead for fire and road issues and ParksVictoria for tourism and recreation issues across tenure.Parks Victoria participated in a number of regulationand amendment projects that were completed orprogressed within the financial year including:❚ The proposed Crown Land (Reserves) (Regional Park)Regulations❚ The proposed remaking of the Conservation, Forestsand Lands (Anglesea Heath) Regulations❚ Amendment to provide for free entry to nationalparks in the National Parks (Fees and Charges)Regulations❚ The making of the Forests (Recreation) Regulationsand the Crown Land (Reserves) (Ex-HMAS CanberraDive Site) Regulations.Changes to areas managedUnder the Management Services Agreement, theMinister advises Parks Victoria of any changes to theland managed by Parks Victoria. In January 2010, ParksVictoria was advised of a net addition of 3,801 hectaresto the area managed, including the new 38 hectareMullum Mullum Park and the 90.5 hectare FrankstonNatural Features Reserve. Parks Victoria was alsonotified during the year of the transfer of managementresponsibilities from DSE for the land not alreadymanaged by Parks Victoria that was to form part of thenew River Red Gum park areas created on 29 June 2010.These changes bring the total area of land managed byParks Victoria to more than 4.04 million hectares.Freedom of InformationThe Freedom of Information Act 1982 allows thepublic the right of access to information containedin documents held by Parks Victoria. In the reportingperiod, Parks Victoria received 40 requests fordocuments and information under the Act.Of the 40 requests:❚ 0 were transferred to other agencies for processing❚ 32 were decided by Parks Victoria❚ 1 did not meet the requirement under the Act andwas refused❚ 6 are yet to be finalised❚ 1 was withdrawn or lapsed.Freedom of Information requests are made in writingdescribing the documents requested and including thepayment of the $23.40 application fee. Applicationforms and information about how to make arequest can be found on Parks Victoria’s website –www.parkweb.vic.gov.au Requests should be sent tothe Freedom of Information Officer, Parks Victoria,Level 10, 535 Bourke Street, Melbourne 3000.Whistleblowers protectionThe Whistleblowers Protection Act 2001 came into effecton 1 January 2002. It is designed to protect people whodisclose information about serious wrongdoing withinthe Victorian Public Sector and to provide a frameworkfor the investigation of these matters.Parks Victoria does not tolerate improper conduct byemployees, or the taking of reprisals against those whocome forward to disclose such conduct. Parks Victoriahas established a Whistleblowers Protection procedureto manage disclosures. Disclosures may also be madedirectly to the Ombudsman. Since the commencementof the Act in January 2002, two disclosures have beenreceived by Parks Victoria.Disclosures for the period of 1 July 2009to 30 June 2010❚ Number and type of disclosures made to ParksVictoria – one public interest disclosure❚ Number and type of disclosures referred to theOmbudsman for public interest determination –one public interest disclosure❚ Number and type of disclosed matters referred toParks Victoria from the Ombudsman – one publicinterest disclosure to be investigated❚ Number and type of disclosed matters referred to theOmbudsman for investigation – none❚ Number and type of investigations of disclosedmatters taken over by the Ombudsman – noneParks Victoria - Annual Report 2009-10 45

SUPPORTING HEALTHY PARKS HEALTHY PEOPLE❚ Number of requests made to the Ombudsman toinvestigate matters – none❚ Number and type of disclosed matters Parks Victoriahas declined to investigate – none.The contact details for the Protected DisclosureCoordinator and Ombudsman are:Protected Disclosure CoordinatorChief Legal CounselParks Victoria Level 10, 535 Bourke Street,Melbourne 3000Telephone 13 1963The Ombudsman VictoriaLevel 9, 459 Collins Street (North Tower),Melbourne VIC 3000Telephone 96136222 or toll free 1800 806 314.A copy of Parks Victoria’s Whistleblower ProtectionProcedures can be obtained by contacting ParksVictoria on 13 1963.Building ActAll new works are managed in accordance with theBuilding Act 1993 and existing buildings are assessedin accordance with Parks Victoria’s asset managementsystem to ensure they are compliant with the Act.Community InclusivenessThe Victorian Government is committed to providingservices in a way that supports and strengthens localcommunities. Parks Victoria aims to ensure its activitiesand operations reflect the diversity of Victoria. Detailsof Parks Victoria’s programs and activities that focuson engaging culturally and linguistically diversecommunities in the park environment are outlinedin the Visitor Experience section of this report. ParksVictoria’s work with young Victorians, through itseducation and Junior Ranger program, are also detailedin the Visitor Experience section. Some of ParksVictoria’s activities focusing on women are outlinedunder the Responsibly Managing our Resources section.Parks Victoria’s work with Indigenous groups is outlinedin the Cultural Heritage section.Victorian industry participation policyThe Victorian Industry Participation Policy Act 2003requires public bodies and Departments report onthe implementation of the Victorian IndustryParticipation Policy (VIPP). Departments and publicbodies are required to apply VIPP in all tenders over$3 million in metropolitan Melbourne and $1 millionin regional Victoria.Parks Victoria commenced one project relating to theVIPP during the reporting period. A new works depotcommenced at Tidal River in Wilsons PromontoryNational Park. The project is costed at $2.8 million andis scheduled for completion by 31 August 2010.National Competition PolicyUnder National Competition Policy, the guidinglegislative principle is that legislation, including futurelegislative proposals, should not restrict competitionunless it can be demonstrated that:❚ the benefits of the restriction to the community as awhole outweigh the costs❚ the objectives of the legislation can only be achievedby restricting competition.Parks Victoria continues to comply with therequirements of the National Competition Policy.Consultancy engagement in excess of $100,000There were no consultancy engagements in excessof $100,000.Consultancy engagement less than $100,000There were six consultancies engaged during thereporting period that were less than $100,000 each.Total cost of these six consultancies was $333,910.Major ContractsParks Victoria did not enter into any contracts greaterthan $10 million in value during the reporting period.46 Parks Victoria - Annual Report 2009-10

CORPORATE PERFORMANCEIndicator2005-062006-072007-082008-092009-10Result against targetMissed Met ExceededArea treated in parks to eradicateor control pest plants and animals(ha 000s)TargetActual7801,1267009285001,0031,0009959001176✔National Park Act parks schedules2, 2A, 2B, 3, 4, 7 & 8 with approvedmanagement plans less than 15 years old(per cent)TargetActualnm* nm nm nm5085✔Victorians who have visited a ParksVictoria managed park over the past 12months (per cent) (Biennial measure)TargetActual71 – 767975 - 80n/a**75 – 7876.175 – 78n/a75-8078✔Parks Victoria personnel required toassist in wildfire preparedness andsuppression (number)TargetActual625648850850850850850844850850✔Proportion of Indigenous staff(%)TargetActual55667675.57-97.2✔Incident Rate (OHS Incidents/staff)(per cent)TargetActual16916151614.516151615.4✔Percentage of bay assets with greaterthan five years life expectancy (per cent)TargetActual80 – 858280 – 857880 – 857970-757470-7576✔Compliance with Model of Coverrequirements (%)TargetActual100100100100100100100100100100✔*nm=new measure **n/a=not measuredMajor changes or factors affecting performanceThis year’s planned burn program was the organisation’shighest priority. Resources were allocated to theprogram from other non-critical activities. In most cases,non-critical activities were reduced but not stopped.Targets for the program were exceeded. Parks Victoriahas an investment prioritisation framework to assessesactivities against risk and minimise the impact ofreduced service delivery.The Royal Commission was a substantial timecommitment for a number of staff, taking priority overother projects. These projects continued in a reducedcapacity, resulting in delays.Subsequent eventsThere have been no subsequent events after thereporting period that have caused a significant changein Parks Victoria’s financial position or organisationalperformance. However, Parks Victoria anticipatesthere may be change following the release of the 2009Victorian Bushfires Royal Commission findings. Thisreport (released 31 July) is expected to influence thefuture of the organisation and cause substantial impactto operations. Early estimates suggest staff numbers,fire commitment and approach to fire and emergencymanagement will require review and updating fromAugust 2010.Parks Victoria - Annual Report 2009-10 47

SUPPORTING HEALTHY PARKS HEALTHY PEOPLEENVIRONMENTAL PERFORMANCEElectricity consumptionin kilowatt hours per FTEStatewide metered waterin ‘000 litres per FTE,000430030042002504100200400015039003800100370050360007/0808/0909/10007/0808/0909/10Parks Victoria continued to participate in theGovernment’s Resource Smart program. ResourceSmart provides an environmental management system,establishing targets and actions to reduce energy andwater consumption and landfill.Overall electricity consumption increased by 5 percent on the previous year. However, consumption perfulltime employee fell by 7 per cent. The increase can,in part, be attributed to the addition of a new workcentre at Point Nepean Quarantine Station and the newcommercial facility at the 12 Apostles.Overall water consumption decreased by 21 per centand consumption per full time employee decreased by30 per cent. The downward trend can be attributed,in part, to water saving initiatives such as stormwaterdiversion at Albert Park and the installation of watertanks at various sites.Parks Victoria’s sustainability achievementsin 2009-10 include:❚ Reducing paper forms following the introduction ofthe new Finance and People system. The new systemalso allows for more accurate reporting of waterconsumption and greenhouse gas emissions❚ A 20 to 25 per cent reduction in water usageat Tidal River following the introduction of awater-conservation plan.❚ Improving the energy efficiency of the Tidal Riverstore, reducing the demand for off-grid powerand introducing biodegradable and recyclablefood packaging.48 Parks Victoria - Annual Report 2009-10

FINANCIAL PERFORMANCEFive year financial summary($ thousand)2010 2009 2008 2007 2006Revenue from Government 92,089 83,067 66,920 65,389 61,940Total income from transactions 199,551 184,535 166,964 158,863 148,785Total expenses from transactions 204,476 184,807 170,134 162,892 176,371*Net result from transactions (4,925) (273) (2,923) (4,029) (3,034)Net result for the period (7,726) (1,452) (3,170) (4,029) (27,586)Net cash flow from operating activities 35,859 17,926 31,677 (1,678) 9,620Total assets 1,569,068 1,283,020 1,265,084 1,020,278 948,770Total liabilities 128,066 87,494 72,844 49,020 43,702* Includes Rosebud foreshore assets of $24.6M transferred to the Mornington Peninsula Shire.OverviewBoth revenue and expenses from transactions havebeen increasing at a steady rate for the last five years.This year, revenue reached $200 million for the firsttime. An increasing proportion of this revenue is fortied initiatives delivered across a number of yearssuch as major capital works and fire prevention andrecovery programs. In 2009-10, Parks Victoria recordeda net result from transactions deficit of $4.9 millioncompared to a deficit of $0.3 million in 2008-09,reflecting largely depreciation expenses.Cost pressures such as labour, fuel, electricity, waterand insurance have continued to increase.Parks Victoria continues to record small deficit resultsfrom transactions between zero and $5 million. Asa government agency, Parks Victoria seeks to spendits full revenue. The final result reflects depreciationon assets. Parks Victoria relies on cyclical governmentinitiative funding for maintenance and replacementof assets.Total assets grew to $1,569 million and this was due toa significant transfer of assets and liabilities for a net$242 million for the Yarra Bend Park.Parks Victoria has significant cash and investmentbalances of $96.5 million. However, these funds arecommitted to specific initiatives and assets programs.Financial performance and business reviewRevenue from transactions increased by $15 millionon last year and the five year average growth is 7 percent per annum. This growth in revenue is mainly frominitiative funding, which comes from many sourcesincluding federal and state government and catchmentmanagement authorities. This initiative fundingis tied to specific programs or projects. Recurrent,discretionary funding for core services has been underpressure for a number of years.Financial position – balance sheetTotal assets have increased by $286 million to $1,569million. Parks Victoria was appointed as committee ofmanagement for the Yarra Bend Park during the year,and all the assets and liabilities transferred across toParks Victoria at a net $242 million.While Parks Victoria shows $1.6 billion of assets in itsfinancial accounts, this only reflects assets that are onland where Parks Victoria is appointed committee ofmanagement by government. This represents only asmall proportion of public land and associated assetsthat Parks Victoria manages. More than $2.5 billion inassets are recorded in DSE’s financial accounts that aremanaged by Parks Victoria including national parks,state parks and conservation reserves.Parks Victoria - Annual Report 2009-10 49

SUPPORTING HEALTHY PARKS HEALTHY PEOPLECash flowsNet cash flows from operating activities showsignificant surplus funds. However, almost all of thispertains to government initiatives and asset fundingreceived by Parks Victoria for works which have notyet been fully completed. These are typically complex,multiyear projects which require significant planningand approval processes. These are shown in the 2009-10Cash Flow Statement and categorised as ‘committedcash and investments’ that relate to these initiativesand assets programs and total $97.5 million. The netcash position after commitments is a deficit of $1.0million. This is consistent with levels over the lastthree years that varied between a small cash surplusof $1.1 million to $5.3 million.50 Parks Victoria - Annual Report 2009-10

FINANCIAL REPORTCOMPREHENSIVE OPERATING STATEMENT 52BALANCE SHEET 53STATEMENT OF CHANGE OF EQUITY 54CASH FLOW STATEMENT 55NOTES TO FINANCIAL STATEMENTS 58 – 95STATUTORY CERTIFICATE 96RISK MANAGEMENT ATTESTATION 97AUDITOR'S REPORT 98 – 99Parks Victoria - Annual Report 2009-10 51

FINANCIAL REPORTCOMPREHENSIVE OPERATING STATEMENTFor The Financial Year Ended 30 June 20102010$’0002009$’000NotesContinuing OperationsIncome from TransactionsParks and Reserves Trust Funding 3 72,428 68,167Government Funding 4 92,089 83,067Interest 5 5,193 5,081Fair Value of Assets Received Free of Charge 6 70 132Other Income 7 29,771 28,087Total Income from Transactions 199,551 184,535Expenses from TransactionsEmployee Benefits 8 82,615 81,020Depreciation and amortisation 9 5,815 5,294Finance Costs 10 – 67Contracts and External Services 11 84,048 71,365Other Operating Expenses 12 31,998 27,061Total Expenses from Transactions 204,476 184,807Net Result from Transactions (Net operating balance) (4,925) (273)Other Economic Flows Included in Net ResultNet Gain/(loss) on Non-financial Assets 13( a ) (11) (75)Net Gain/(loss) on Financial Instruments 13( b ) (305) 145Other gains/(losses) from other economic flows 13( c ) (2,485) (1,249)Total Other Economic Flows included in Net Result (2,801) (1,179)Net Result (7,726) (1,452)Other Economic Flows – Other Non-owner Changes in EquityChanges in physical asset revaluation surplus 24 – –Total Other Economic Flows – Other Non-owner Changes in Equity – –Comprehensive Result – total change in net worth (7,726) (1,452)The comprehensive operating statement should be read in conjunction with the accompanying notes.52 Parks Victoria - Annual Report 2009-10

BALANCE SHEETAs at 30 June 2010Notes2010$’0002009$’0001 July 2008*$’000AssetsFinancial assetsCash and deposits 14 36,543 48,593 52,357Receivables 15 9,615 6,763 6,121Other financial assets 16 60,000 20,000 –Total financial assets 106,158 75,356 58,478Non–financial assetsInventories 17 138 142 114Property, plant and equipment 18 1,455,646 1,207,343 1,205,394Intangible assets 19 7,046 – –Other non–financial assets 20 80 179 156Total non–financial assets 1,462,910 1,207,664 1,205,664Total assets 1,569,068 1,283,020 1,264,142LiabilitiesPayables 21 21,094 19,255 15,755Provisions 22 29,944 27,168 24,026Deferred revenue 23 77,028 41,071 33,063Total liabilities 128,066 87,494 72,844Net assets 1,441,002 1,195,526 1,191,298EquityAccumulated surplus/(deficit) (48,483) (40,757) (39,304)Physical asset revaluation surplus 24 901,818 901,818 901,818Contributed capital 25 587,667 334,465 328,784Total equity 1,441,002 1,195,526 1,191,298Contingent liabilities and contingent assets 27Commitments for expenditure 28The balance sheet should be read in conjunction with the accompanying notes.* See note 2.5 for details regarding the change in accounting policy.Parks Victoria - Annual Report 2009-10 53

FINANCIAL REPORTSTATEMENT OF CHANGES IN EQUITYFor The Financial Year Ended 30 June 2010Changes due to2010 NotesEquity at 1July 2009$’000Totalcomprehensiveresult$’000Transactions withowners in theircapacity as owners$’000Equity at30 June 2010$’000Accumulated surplus/(deficit) (40,757) (7,726) – (48,483)(40,757) (7,726) – (48,483)Contributions by owners 334,465 – – 334,465Contributions from the Department ofSustainability and Environment 25 – 253,202 253,202334,465 – 253,202 587,667Physical asset revaluation surplus 24 901,818 – – 901,818901,818 – – 901,818Total equity at end of the financial year 2010 1,195,526 (7,726) 253,202 1,441,002Changes due to2009 NotesEquity at 1July 2008$’000Totalcomprehensiveresult$’000Transactions withowners in theircapacity as owners$’000Equity at 30June 2009$’000Accumulated Surplus/(Deficit) (38,362) (1,462) – (39,824)Adjusted on change in accounting policy (942) 10 – (932)(39,304) (1,452) – (40,757)Contributions by Owners 328,784 – – 328,784Contributions from the Department of25 – – 5,681 5,681Sustainability and Environment328,784 – 5,681 334,465Physical asset revaluation surplus 24 901,818 – – 901,818901,818 – – 901,818Total equity at end of the financial year 2009 1,191,298 (1,452) 5,681 1,195,526The statement of changes in equity should be read in conjunction with the accompanying notes.54 Parks Victoria - Annual Report 2009-10

CASH FLOW STATEMENTFor The Financial Year Ended 30 June 20102010$’0002009$’000NotesCash Flows from Operating ActivitiesReceiptsReceipts from Parks Charge 77,660 66,131Receipts from Government for Operations 110,288 88,637Receipts from Customers / Other Sources 40,710 31,351Interest received 5,076 5,106Receipts relating to Goods and Services Tax 16,922 14,560Total receipts 250,656 205,785PaymentsPayments to Suppliers and Employees (189,670) (165,662)Payments to Government for Revenue Collected from National Parks (6,618) (5,818)Payments to Parks Victoria Grants Program (1,273) (1,807)Payments relating to Goods and Services Tax (17,236) (14,572)Total payments (214,797) (187,859)Net Cash Flows from/(used in) Operating Activities 26( c ) 35,859 17,926Cash Flows from Investing ActivitiesPayments for non-financial assets (19,509) (7,319)Proceeds on sale of property, plant and equipment – 45Payments for other financial assets (60,000) (20,000)Proceeds from other financial assets 20,000 –Net Cash Flows from/(used in) Investing Activities (59,509) (27,274)Cash Flows from Financing ActivitiesReceipts from Government – Contributed Capital 11,600 5,584Net Cash Flows from/(used in) Financing Activities 11,600 5,584Net Increase / (Decrease) in cash and cash equivalents (12,050) (3,764)Cash and cash equivalents at beginning of financial year 48,593 52,357Cash and cash equivalents at the end of the financial year 14 36,543 48,593Consisting of:Committed cash 34 37,578 43,311Non–committed cash (1,035) 5,28236,543 48,593Committed Investments 34 60,000 20,000The above cash flow statement should be read in conjunction with the accompanying notes.Parks Victoria - Annual Report 2009-10 55

FINANCIAL REPORTTABLE OF CONTENTSNote 1Note 1.1Note 1.2Note 2Note 2.1Note 2.2Note 2.3Note 2.4Note 2.5Note 2.6Note 2.7Note 2.8Note 2.9Note 2.10Note 2.11Note 2.12Note 2.13Note 2.14Note 2.15Note 2.16Note 2.17Note 2.18Note 2.19Note 2.20Note 2.21Note 2.22Note 2.23Note 3Note 4Note 5Note 6Note 7Note 8Note 9Note 10Note 11Note 12Note 13BackgroundReporting entityObjectives and FundingSummary of Significant Accounting PoliciesGeneralBasis of accounting preparation and measurementAsset recognition and measurementScope and presentation of financial statementsChanges in Accounting policyFinancial AssetsNon-Financial assetsImpairment of Non-Financial AssetsLeased assetsLiabilitiesProvision for DismantlingContributed CapitalIncome RecognitionGrants and Other PaymentsResources provided and received free of charge for Nominal ConsiderationInterest incomeDepreciation and AmortisationFinance CostsCommitmentsContingent assets and contingent liabilitiesGoods and Services taxRounding of AmountsNew Accounting Standards and InterpretationsParks and Reserve Trust FundingGovernment FundingInterestFair Value of Assets Received Free of ChargeOther IncomeEmployee BenefitsDepreciation and AmortisationFinance CostsContracts and External ServicesOther Operating ExpensesOther Economic Flows included in Net Results56 Parks Victoria - Annual Report 2009-10

Note 14Note 15Note 16Note 17Note 18Note 19Note 20Note 21Note 22Note 23Note 24Note 25Note 26Note 27Note 28Note 29Note 30Note 31Note 32Note 33Note 34Note 35Cash and depositsReceivablesOther Financial AssetsInventoriesProperty, Plant and EquipmentIntangible AssetsOther Non-Financial AssetsPayablesProvisionsDeferred RevenuePhysical Asset revaluations surplusContributed CapitalCash Flow InformationContingent Liabilities and Contingent AssetsCommitmentsSuperannuationVolunteer Resources provided free of chargeAuditor’s RemunerationRelated partiesFinancial InstrumentsCommitted FundsPost Balance Date EventsParks Victoria - Annual Report 2009-10 57

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20101 Background1.1 Reporting EntityThe financial statements cover Parks Victoria as an individual reporting entity. Parks Victoria was formedas a public authority on 3 July 1998 under the Parks Victoria Act 1998. The Parks Victoria Act 1998 wasgiven Royal Assent on 26 May 1998 and was proclaimed on 3 July 1998.The principal address is: Level 10/ 535 Bourke StreetMelbourneVIC 30001.2 Objectives and FundingThe objective of Parks Victoria is to provide an outstanding park and waterway system, protected andenhanced, for people, forever.Parks Victoria receives the majority of its funding from the Victorian Government for the management ofVictoria’s National/State Parks and Reserves and from the Parks and Reserves Trust for the management ofmetropolitan parks and waterways. The Trust is funded by a Parks charge levied on properties within theMelbourne metropolitan area.2 Summary of Significant Accounting Policies2.1 GeneralThese financial statements have been prepared in accordance with the Financial Management Act 1994and applicable Australian Accounting Standards, including Interpretations (AASs). AASs include Australianequivalent to International Financial Reporting Standards.Statement of ComplianceThe financial statements comply with the relevant Financial Reporting Directions (FRDs) issued bythe Department of Treasury and Finance, and relevant Standing Directions (SD) authorised by theMinister for Finance.Under Australian Accounting Standards (AASs), there are requirements that apply specifically to notfor-profitentities. Parks Victoria has analysed its purpose, objectives, and operating philosophy anddetermined that it does not have profit generation as a prime objective. Where applicable, the AASs thatrelates to-not-for-profit entities has been applied.The financial statements were authorised for issue by S Mahony (Chief Financial Officer – Parks Victoria)on 20 August 2010.58 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.2 Basis of accounting preparation and measurementThe 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 to whichthey relate, regardless of when cash is received or paid.These financial statements are presented in Australian dollars, the functional and presentation currencyof Parks Victoria.In the application of AASs management is required to make judgements, estimates and assumptionsabout carrying values of assets and liabilities that are not readily apparent from other sources. Theestimates and associated assumptions are based on historical experience and various other factors thatare believed to be reasonable under the circumstance, the results of which form the basis of making thejudgements. Actual results may differ from these estimates.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only thatperiod or in the period of the revision and future periods if the revision affects both current and futureperiods.These financial statements have been prepared in accordance with the historical cost convention except for:❚ non-current physical assets which, subsequent to acquisition, are measured at a re-valued amountbeing their fair value at the date of the revaluation less any subsequent accumulated depreciationand subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that thecarrying amounts do not materially differ from their fair value;❚ the fair value of an asset other than land is generally based on its depreciated replacement value;❚ available-for-sale investments which are measured at fair value with movements reflected in equityuntil the asset is derecognisedHistorical cost is based on the fair values of the consideration given in exchange for assets.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 of theunderlying transactions or other events is reported.The accounting policies set out below have been applied in preparing the financial statements for theyear ended 30 June 2010 and the comparative information presented for the year ended 30 June 2009.Parks Victoria - Annual Report 2009-10 59

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.3 Asset recognition and measurementParks Victoria only recognises assets on land it controls as the committee of management. Parks Victoriaalso manages other assets on behalf of the Crown. Those assets and any new assets constructed by ParksVictoria on behalf of the Crown are recognised in the asset register of the Department of Sustainabilityand Environment.2.4 Scope and presentation of financial statementsComprehensive operating statementIncome and expenses in the comprehensive operating statement are classified according to whether ornot they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the wholeof government reporting format and is allowed under AASB 101 Presentation of financial statements.‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usuallyinteractions between two entities by mutual agreement. Transactions also include flows within an entity,such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset andas the consumer of the service provided by the asset. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash.‘Other economic flows’ are changes arising from market re-measurements. They include gains and lossesfrom disposals, revaluations and impairments of non-current physical assets and intangible assets; fairvalue changes of financial instruments and revaluation of certain employee benefit liabilities.The net result is equivalent to profit or loss derived in accordance with AASs.Balance sheetAssets and liabilities are presented in liquidity order with assets aggregated into financial assets and nonfinancialassets.Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12months) are disclosed in the notes, where relevant.Statement of changes in equityThe statement of changes in equity presents reconciliations of each non-owner and owner equity openingbalance at the beginning of the reporting period to the closing balance at the end of the reportingperiod. It also shows separately changes due to amounts recognised in the comprehensive result andamounts recognised in other comprehensive income related to other non-owner changes in equity.Cash flow statementCash 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.60 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.5 Changes in Accounting policyDuring the financial year ended 30 June 2010 Parks Victoria changed its Capital Asset Policy, increasingthe capitalisation threshold for recognising plant and equipment. Accordingly plant and equipment witha cost exceeding $5,000 are recognised as an asset at cost (previous threshold: $1,200). In management’sopinion the new capitalisation threshold results in the financial report providing reliable and morerelevant information regarding the Parks Victoria’s financial position and financial performance.This change aligns with the Department of Sustainability and Environment’s capitalisation thresholdaccounting policy.In accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, ParksVictora has retrospectively applied the new capitalisation threshold in the previous financial year whichresulted in a decrease of $942,000 in the Net assets and total equity as at 1 July 2008 (beginning of thecomparative period 2008/09); and a decrease of $932,000 in the previously reported Net assets and totalequity as at 30 June 2009. This change also resulted in an increase of the Net results from transactions forthe financial year ended 30 June 2009 of $10,000.The following adjustments were made to the Balance Sheet as at 1 July 2008 and 30 June 2009:30 June 2008$’000Increase /(decrease)$’0001 July 2008(restated)$’000Balance sheet (extract)Plant and equipment 2,939 (942) 1,997Net assets 1,192,240 (942) 1,191,298Accumulated surplus/(deficit) (38,362) (942) (39,304)Total equity 1,192,240 (942) 1,191,29830 June 2009$’000Increase /(decrease)$’00030 June 2009(restated)$’000Balance sheet (extract)Plant and equipment 2,796 (932) 1,864Net assets 1,196,458 (932) 1,195,526Accumulated surplus/(deficit)– balance brought forward (38,362) (942) (39,304)– current period (1,462) 10 (1,452)(39,824) (932) (40,756)Total equity 1,196,458 (932) 1,195,526Items on the Balance Sheet other than those mentioned above were not affected by the retrospectiveadoption of the revised policy.Parks Victoria - Annual Report 2009-10 61

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.5 Changes in Accounting policy (continued)The net result for the 2009 end of reporting period changed as follows:2009$’000Net resultincrease/(decrease)$’0002009(restated)$’000Comprehensive operating statementDepreciation and amortisation 5,464 (170) 5,294Other operating expenses 26,901 160 27,061Net result (1,462) 10 (1,452)2.6 Financial Assets(i) Cash and DepositsCash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits atcall and those highly liquid investments subject to an insignificant risk of changes in value with anoriginal maturity of three months or less, which are held for the purpose of meeting short term cashcommitments rather than for investment purposes.For the purpose of the Cash Flow Statement, cash assets include cash on hand and highly liquidinvestments with short periods to maturity that are readily convertible to cash on hand at Parks Victoria’soption and are subject to insignificant risk of changes in values, net of outstanding bank overdrafts.(ii) ReceivablesReceivables are recorded initially at fair value and subsequently measured at amortised cost, using theeffective interest method, less impairment.The effective interest method is a method of calculating the amortised cost of a financial asset and ofallocating interest income over the relevant period. The effective interest rate is the rate that exactlydiscounts estimated future cash receipts through the expected life of the financial asset, or whereappropriate, a shorter period.Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to beuncollectible are written off. A provision for doubtful debts is established when there is objectiveevidence that Parks Victoria will not be able to collect all amounts due according to the original termsof receivables. The amount of the provision is the difference between the asset’s carrying amount andthe present value of estimated future cash flows, discounted at the original effective interest rate. Cashflows relating to short-term receivables are not discounted if the effect of discounting is immaterial.The amount of the provision is recognised in the Comprehensive Operating Statement. A provisionfor doubtful debts is recognised to the extent that recovery of the outstanding receivable balance isconsidered less than likely. Bad debts are written off in the period in which they are recognised.The average credit period on sales of goods or provision of services is 30 days. No interest is charged ontrade and other receivables.62 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.6 Financial Assets (Continued)(iii) Other Financial AssetsOther financial assets are recognised and derecognised on trade date where purchase or sale of aninvestment is under a contract whose terms require delivery of the investment within the timeframeestablished by the market concerned, and are initially measured at fair value, net of transaction costs.Parks Victoria classifies its other financial assets between current and non-current assets based on thepurpose for which the assets were acquired. Management determines the classification of its otherfinancial assets at initial recognition.Parks Victoria assesses at each balance sheet date whether a financial asset or group of financialassets is impaired.All investments held by Parks Victoria are classified as being available-for-sale and are stated at fair value.Gains and losses arising from changes in fair value are recognised directly in equity, until the investmentis disposed of or is determined to be impaired, at which time to the extent appropriate.2.7 Non Financial Assets(i) InventoriesInventories comprise stores and materials and are valued at the lower of cost and net realisable value.Costs are assigned to inventory on hand at balance date on a first-in, first out basis. Net realisable valuerepresents the estimated selling price less all estimated costs of completion and costs to be incurred inmarketing, selling distribution.(ii) Property, Plant and EquipmentAll non-current physical assets except land under declared roads are measured initially at cost andsubsequently revalued at fair value less accumulated depreciation and impairment.Property, Plant and Equipment represent non–current assets comprising:❚ Crown Land, Land and Land Improvements❚ Buildings and Building Improvements❚ Piers, Jetties and River Improvements❚ Plant, Equipment, Machinery and Vehicles❚ Antiques❚ Works in Progressused by Parks Victoria in its operations.Items with a cost or value of $5,000 (previously $1,200 – refer to note 2.5 for information of the financialimpact of this change in accounting policy) or more, and a useful life of more than one year arerecognised as an asset. All other assets acquired are expensed.Parks Victoria - Annual Report 2009-10 63

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.7 Non Financial Assets (continued)Non–current physical assets such as national parks, other Crown land, and heritage assets are measuredat fair value with regard to the property’s highest and best use after due consideration is made for anylegal or constructive restrictions imposed on the asset, public announcements or commitments made inrelation to the intended use of the asset. Theoretical opportunities that may be available in relation tothe asset are not taken into account until it is virtually certain that the restrictions will no longer apply.Road network assets (including earthworks of the declared road networks but excluding land underroads) are measured at fair value, determined by reference to the asset’s depreciated replacement cost.Land under roads which was acquired prior to 1 July 2009 is not recognised. Land under roads which wasacquired on or after 1 July 2009 is recognised at cost.The fair value of cultural depreciated assets and collections, heritage assets and other non-currentphysical assets that the State intends to preserve because of their unique historical, cultural orenvironmental attributes, is measured at the replacement cost of the asset less, where applicable,accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expiredfuture economic benefits of the asset and any accumulated impairment.Revaluations of non-current physical assetsNon-current physical assets measured at fair value are revalued in accordance with FRD103D issued bythe Minister for Finance. This revaluation process normally occurs every five years, based upon the asset’sGovernment Purpose Classification, but may occur more frequently if fair value assessments indicatematerial changes in value. Revaluation increases or decreases arise from differences between an asset’scarrying value.Revaluation increases are credited directly to equity in the Physical asset revaluation surplus, except tothe extent that an increase reverses a revaluation decrease in respect of that class of property, plant andequipment, previously recognised as an expense (other economic flows) in the net result, the increase isrecognised as income (other economic flows) in determining the net result.Revaluation decreases are recognised immediately as expenses (other economic flows) in the net results,except to the extent that a credit balance exists in the revaluation reserve in respect of the same class ofproperty, plant and equipment, and they are debited to the revaluation reserve.Revaluation increases and decreases relating to individual assets within a class of property, plant andequipment, are offset against on another within that class but are not offset in respect of assets indifferent classes.(iii) Crown LandCrown land is measured at fair value with regard to the property’s highest and best use afterdue consideration is made for any legal or constructive restrictions imposed on the land, publicannouncements or commitments made in relation to the intended use of the land. Theoreticalopportunities that may be available in relation to the asset are not taken into account until it is virtuallycertain that the restrictions will no longer apply.64 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.7 Non Financial Assets (continued)The financial statements list the location and values of Crown land over which Parks Victoria is thecommittee of management (refer note 18). This Crown Land remains the property of the State ofVictoria.Crown Land is used for heritage and environmental conservation, recreation, leisure, tourism andnavigation.Restrictive Nature of Cultural and Heritage Assets, Crown Land and InfrastructuresDuring the reporting period, Parks Victoria held cultural assets, heritage assets, Crown land andinfrastructures.Such assets are deemed worthy of preservation because of the social rather than financial benefitsthey provide to the community. The nature of these assets means that there are certain limitations andrestrictions imposed on their use and/or disposal.(iv) Intangible assetsIntangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful livesare carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurredsubsequent to initial acquisition are capitalised when it is expected that additional future economicbenefits will flow to Parks Victoria.2.8 Impairment of Non–Financial AssetsAll Non–financial assets are assessed annually for indications of impairment, except for:❚ Inventories (refer note 2.7 (i)).If there is an indication of impairment, the assets concerned are tested as to whether their carrying valueexceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, thedifference is written off by charge to the Comprehensive Operating Statement except to the extent thatthe write – down can be debited to the physical asset revaluation surplus account.The recoverable amount for most assets is measured at the higher of the present value of future cashflows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in theevent of the loss of an asset, the future asset will be replaced unless a specific decision to the contrary hasbeen made.2.9 Leased AssetsLeases in which a significant portion of the risks and rewards of ownership are retained by the lesserare classified as operating leases. Operating lease payments are recognised as an expense in theComprehensive Operating Statement on a straight-line basis over the lease term, except where anothersystematic basis is more representative of the time pattern in which economic benefits from the leasedasset are consumed.Parks Victoria - Annual Report 2009-10 65

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.10 Liabilities(i) PayablesPayables are recognised when Parks Victoria becomes obliged to make future payments resulting fromgoods and services provided prior to the end of the financial year, which are unpaid at financial year end.Payables are non–interest bearing and have an average credit period of 30 days.(ii) Employee Benefits(a) Wages and Salaries and Sick LeaveLiabilities for wages and salaries, including non-monetary benefits, that are expected to be settledwithin 12 months of the reporting date, are measured at their nominal amounts in respect of employees’services up to the reporting date. The nominal basis of measurement uses employee remuneration ratesthat the entity expects to pay as at each reporting date and does not discount cash flows to their presentvalue. Non–vesting sick leave is not expected to exceed current and future sick leave entitlements, andaccordingly, no liability has been recognised.(b) Annual Leave and Long Service LeaveAnnual leave and long service leave entitlements expected to be settled within 12 months of thereporting date are recognised as a provision for employee benefits in the Balance Sheet at their nominalvalues.Annual leave and long service leave entitlements not expected to be settled within 12 months of thereporting date are recognised at the present value of the estimated future cash outflows to be madeby Parks Victoria in respect of services provided by employees up to reporting date. Consideration isgiven to expected future employee remuneration rates, employment related on-costs and other factorsincluding experience of employee departures and periods of service. In the determinaton of the longservice leave entitlement liabilities, Parks Victoria use the wage inflation and discount rates released bythe Department of Treasury and Finance.(c) Classification of Employee Benefits as Current and Non–Current LiabilitiesEmployee benefit provisions are reported as current liabilities where Parks Victoria does not have anunconditional right to defer settlement for at least 12 months. Consequently, the current portion of theemployee benefit provision can include both short–term benefits (those benefits expected to be settledwithin 12 months of the reporting date), that are measured at nominal values, and long-term benefits(those benefits not expected to be settled within 12 months of the reporting date), that are measured atpresent values.Employee benefit provisions that are reported as non-current liabilities also include long-term benefitssuch as non vested long service leave (i.e. where the employee does not have a present entitlement tothe benefit) that do not qualify for recognition as a current liability, and are measured at present vales.The non-current liability for long service leave represents entitlements accrued for employees with lessthan 7 years of continuous service.66 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.10 Liabilities (continued)(ii) Employee Benefits (continued)(d) Performance PaymentsPerformance payments for Parks Victoria’s Executive Officers are based on a percentage of the annualsalary package provided under their contracts of employment. A liability is recognised and is measuredas the aggregate of the amounts accrued under the terms of the contracts at balance date. Since theperformance payments earned are paid upon completion of annual performance reviews, the totalamount is classified as a current liability.(e) SuperannuationContributions are made by Parks Victoria to employee superannuation funds and are charged as expenseswhen incurred.Disclosure of superannuation contributions by Parks Victoria is provided in Note 29.(iii) ProvisionsProvisions are recognised when Parks Victoria 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 provision is the best estimate of the consideration required to settle thepresent obligation at reporting date, taking into account the risks and uncertainties surrounding theobligation. Where a provision is measured using the cashflows estimated to settle the present obligation,its carrying amount is the present value of those cashflows.When some or all of the economic benefits required to settle a provision are expected to be recognisedfrom a third party, the receivable is recognised as an asset if it is virtually certain that recovery will bereceived and the amount of the receivable can be measured reliably.(iv) Deferred RevenueDeferred revenues represents the portion of reciprocal government and external grants/funding which atend of financial year has not yet been performed (see Note 2.13).2.11 Provision for DismantlingWhen an asset is initially recognised, AASB 116 Property, Plant and Equipment requires the capitalisationof costs of dismantling and removing an asset and restoring the site on which the asset was created,together with the recognition of this provision determined at present value in accordance with AASB137 Provisions, Contingent Liabilities and Contingent Assets. As a consequence, there is an increase indepreciation expense as a result of the increase in the carrying amounts of assets and also an interestexpense would be incurred as the present value discount on the dismantling unwinds.Parks Victoria - Annual Report 2009-10 67

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.12 Contributed CapitalConsistent with interpretation 1038 Contributions by Owners Made to Wholly-Owned Public SectorEntities and FRD 119 Contributions by Owners, appropriations for additions to the net asset base havebeen designated as contributed capital. Other transfers that are in the nature of contributions ordistributions have also been designated as contributed capital.2.13 Income RecognitionAmounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes.Parks Charge income is recognised when invoiced by Parks Victoria. Other income, including externalgrants/funding, is recognised when earned or on receipt, depending on which occurs earlier.Where government and external grants/funding are reciprocal, income is recognised as performanceoccurs under the grant. Non-reciprocal grants are recognised as income when the grant is received orreceivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.Where the grants / funding received has not been expended and a reciprocal agreement exists, wherebythe external revenue is required to be repaid if not used or an asset transfer to the external party is tooccur upon completion of the asset, Parks Victoria records this revenue as deferred revenue.2.14 Grants and Other PaymentsGrants and other payments to third parties are recognised as an expense in the reporting period in whichthey are paid or payable.2.15 Resources Provided and Received Free of Charge or For Nominal ConsiderationContributions of resources (including volunteer resources and assets received free of charge or fornominal consideration) and assets provided free of charge or for nominal consideration are recognised attheir fair value. Contributions in the form of services are only recognised when a fair value can be reliablydetermined and the services would have been purchased if not donated.2.16 Interest incomeInterest income includes unwinding over time of discounts on financial assets and interest received onbank term deposits and other investments.Interest income is recognised on a time proportionate basis that takes into account the effective yield onthe financial asset.68 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.17 Depreciation and amortisationDepreciation is applied to completed fixed assets including Land Improvements, Buildings andImprovements, Piers, Jetties and River Improvements, Plant, Equipment and Machinery, Motor Vehiclesand Other. Land and Antiques are not depreciated. Works in Progress is valued at cost and depreciationcommences on completion of the works.Depreciation is calculated on a straight-line basis to systematically write off the cost or revalued amountof each non–current asset over its expected useful life to the entity.Depreciation rates are reviewed annually and, if necessary, adjusted to reflect the most recentassessments of the useful lives and residual values of the respective assets.Where assets have separate identifiable components that have distinct useful lives and/or residual valuesa separate depreciation rate is determined for each component.The expected useful life of each asset category is the same as the previous year and is as follows:Asset CategoryExpected Life (Years)Buildings and Building Improvements 10 to 100Piers, Jetties and River Improvements 20 to 100Land Improvements 10 to 50Plant, Equipment, Machinery and Vehicles 3 to 10Amortisation is calculated on a straight–line basis to systematically write off the cost or revalued amountof each intangible asset over its expected useful life to the entity.Amortisation rates are reviewed annually and, if necessary, adjusted to reflect the most recentassessments of the useful lives and residual values of the respective assets.The expected useful life of each Intangible assets category (Computer Software) is 10 years.2.18 Finance costsFinance costs are recognised as expenses in the period in which they are incurred.2.19 CommitmentsCommitments are disclosed at their nominal value and inclusive of the goods and services tax (GST)payable. In addition, where it is considered appropriate and provides additional relevant information tousers, the net present values of significant individual projects are stated.2.20 Contingent assets and contingent liabilitiesContingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed byway of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities arepresented inclusive of GST receivable or payable respectively.Parks Victoria - Annual Report 2009-10 69

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.21 Goods and Services TaxRevenues, expenses and assets are recognised net of goods and services tax (GST), except wherethe amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In thesecircumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item ofexpense.Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from,or payableto, the ATO is included as part of receivables or payables.Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flowsarising from investing and financing activities, which is recoverable from, or payable to, the ATO, isclassified as operating cash flows and disclosed therein.2.22 Rounding of AmountsAmounts in the financial statements have been rounded to the nearest thousand dollars, unlessotherwise stated. Figures in the financial statements may not equate due to rounding.70 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.23 New Accounting Standards and InterpretationsCertain new AASs have been published that are not mandatory for the 30 June 2010 reporting period.Parks Victoria assesses the impact of these new standards and advises their applicability and earlyadoption where applicable.As at 30 June 2010, the following standards and interpretations (applicable to agencies) had been issuedbut were not mandatory for the financial year ending 30 June 2010. Parks Victoria has not early adoptedthese standards.Standard / InterpretationSummaryApplicable for annualreporting periodsbeginning onImpact on departmentalfinancial statementsAASB 2009–5 Furtheramendments to AustralianAccounting Standardsarising from the annualimprovements project[AASB 5, 8, 101, 107, 117,118, 136 and 139]Some amendments will resultin accounting changes forpresentation, recognition ormeasurement purposes, whileother amendments will relateto terminology and editorialchanges.Beginning 1 Jan 2010Terminology and editorialchanges. Impact minor.Erratum GeneralTerminology changesEditorial amendments to arange of Australian AccountingStandards and InterpretationsBeginning 1 Jan 2010Terminology and editorialchanges. Impact minor.AASB 2009–13 Amendmentsto Australian AccountingStandards arising frominterpretation 19 [AASB 1]Consequential amendment toAASB 1 arising from publicationof Interpretation 19.Beginning 1 Jul 2010Parks Victoria does notextinguish financial liabilitieswith equity instruments,therefore requirements ofInterpretation 19 and relatedamendments have no impact.AASB 124 Related partydisclosures (Dec 2009)Government related entitieshave been granted partialexemption with certaindisclosure requirements.Beginning 1 Jan 2011Preliminary assessment suggeststhat impact is insignificant.However, Parks Victoria willassess the detailed impactand whether to adopt earlynext year.AASB 2009–14 Amendmentsto Australian Interpretation– Prepayments of a minimumfunding requirement[AASB Interpretation 14]Amendment to Interpretation14 arising from the issuanceof Prepayments of a minimumfunding requirement.Beginning 1 Jan 2011Expected to have no significantimpact.Parks Victoria - Annual Report 2009-10 71

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.23 New Accounting Standards and Interpretations (continued)Standard / InterpretationSummaryApplicable for annualreporting periodsbeginning onImpact on departmentalfinancial statementsAASB 9 Financial instrumentsThis standard simplifiesrequirements for theclassification and measurementof financial assets resulting fromPhase 1 of the IASB’s projectto replace IAS 39 Financialinstruments: recognition andmeasurement (AASB 139financial Instruments:recognition and measurement).Beginning 1 Jan 2013Detail of impact will beassessed.AASB 2009–11 Amendmentsto Australian AccountingStandards arising fromAASB 9 [AASB 1, 3, 4, 5,7, 101, 102, 108, 112, 118,121, 127, 128, 131, 132, 136,139, 1023 and 1038 andInterpretations 10 and 12]This gives effect to consequentialchanges arising from theissuance of AASB 9.Beginning 1 Jan 2013Detail of impact will beassessed.AASB 1053Application of Different Tiersof Australian AccountingStandardsThis Standard establishes adifferential reporting frameworkconsisting of two tiers ofreporting requirements ofpreparing general purposefinancial statements.Beginning 1 July 2013This Standard does not affectthe operating result or financialposition. Expected to have noimpact.AASB 2010–2Amendments to AustralianAccounting Standards arisingfrom Reduced DisclosureRequirementsThis Standard makesamendments to many AustralianAccounting Standards, includinginterpretations, to introducereduced disclosures requirementsapplicable to certain types ofentities.Beginning 1 July 2013This Standard does not affectthe operating result or financialposition. Expected to have noimpact.72 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20103 Parks and Reserve Trust FundingParks Charge 72,428 68,167Total Parks & Reserves Trust Funding 72,428 68,1672010$’0002009$’000The Parks & Reserves Trust Funding is a charge levied on commercial and domestic properties throughoutthe Melbourne and metropolitan area, the majority of which is paid to Parks Victoria.4 Government FundingNational / State Parks and Reserves funding 54,917 51,780Government Grants for special projects 10,720 4,216Program Initiatives (including Tracks & Trails and Good Neighbour programs) 1,507 1,506Major Works funding provided by the Department of Sustainability and Environment 24,891 25,096Major Works funding provided by the Department of Innovation, Industry and– 415Regional DevelopmentMajor Works funding provided by the Department of Planning and Community Development 54 54Total Government Funding 92,089 83,0675 InterestInterest from financial assets not at fair value though profit or loss:Interest on Bank Deposits and Other Financial Assets 5,193 5,081Total Interest 5,193 5,0816 Fair Value of Assets Received Free of ChargeAustralian Grand Prix Corporation (AGPC) assets transferred from the70 132Department of Innovation, Industry and Regional DevelopmentTotal Fair Value of Assets Received Free of Charge 70 132Parks Victoria - Annual Report 2009-10 73

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20107 Other IncomeAccommodation / Camping fees 4,889 4,050Funding sponsored by external parties 1,287 891Rent, Leases & Licences 6,558 5,729Park entrance fees 1,481 1,468External sales 2,232 1,813Insurance claims 3,262 2,785Yarra Bend Park – rent fees 1,313 1,668Berthing / Mooring fees 321 287Cave tour fees 612 560Fire Suppression costs, recovered 4,154 6,090Reversal of provision for dismantling 642 –Other 3,020 2,746Total Other Income 29,771 28,0872010$’0002009$’0008 Employee BenefitsSalaries, Wages, Termination Benefits and Long Service Leave 70,664 70,337Superannuation 5,786 5,106FBT and Payroll Taxes 4,448 4,044Other On-Costs 1,717 1,533Total Employee Benefits 82,615 81,0209 Depreciation and AmortisationLand Improvements 1,818 1,808Buildings and Improvements 1,929 1,928Piers, Jetties and River Improvements 1,341 1,233Plant and equipment 292 325Intangibles 435 –Total Depreciation 5,815 5,29410 Finance costsUnwinding of discount and effect of changes in the discount rate for:Provision for dismantling (see note 22 c) – 67Total Finance Costs – 6774 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201011 Contracts and External ServicesContracts 55,616 47,088Other External Services 28,432 24,277Total Contracts and External Services 84,048 71,3652010$’0002009$’00012 Other Operating ExpensesMaterials 6,486 5,954Transport 6,792 8,240Payments to Government for Revenue collected from National Parks 7,894 6,293Payments to Local Government, Other Agencies, Community Groups and for Program1,427 1,148Operating CostsInsurance premium 6,331 2,726Payments for works sponsored by external parties 1,619 1,579Other 1,449 1,122Total Other Operating Expenses 31,998 27,06113 Other Economic Flows Included in Net Result(a) Net Gain/(loss) on Non–financial AssetsImpairment of property, plant and equipment (11) (75)(b) Net Gain/(loss) on Financial InstrumentsProvision for doubtful (305) –Reversal of unused provision – 145(c) Other gains/(losses) from other economic flowsNet gain/(loss) arising from revaluation of long service liability (2,485) (1,249)Total Other Economic Flows included in Net Result (2,801) (1,179)14 Cash and deposits – CurrentCash and deposits 36,543 48,593Total cash and deposits 36,543 48,593(a) Risk exposurePark Victoria’s exposure to interest rate risk is discussed in note 33. The maximum exposure to credit risk atthe end of the reporting period is the carrying amount of each class of cash and deposits mentioned above.Parks Victoria - Annual Report 2009-10 75

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201015 ReceivablesReceivables – CurrentDebtors 9,952 6,806Provision for doubtful debts (436) (137)Total Receivables – current 9,516 6,6692010$’0002009$’000Receivables – Non-CurrentOther Receivables 99 94Total Receivables – Non-current 99 94Total Receivables 9,615 6,763(a) Movement in the provision for doubtful receivablesBalance at beginning of the year (137) (384)Reversal of unused provision recognised in the net result – 145Increase in provision recognised in the net result (305) –Reversal of provision written off during the year as uncollectible 6 102Balance at the end of the year (436) (137)(b) Ageing analysis of contractual receivablesRefer to note 33.2 for the ageing analysis of receivables (except statutory receivables).(c) Nature and extent of risk arising from contractual receivablesRefer to note 33 for the nature and extent of risks arising from contractual receivables.16 Other Financial AssetsAvailable for Sale Financial AssetsAustralian Dollar Term Deposit > 3 months 60,000 20,000Total Other Financial Assets – non-current 60,000 20,000(a) Ageing analysis of investments and other financial assetsPlease refer to Note 33 for the ageing analysis of other financial assets.(b) Nature and extent of risk arising from investments and other financial assetsPlease refer to Note 33 for the nature and extent of risks arising from investments and other financial assets.76 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201017 Inventories – currentStock on Hand (at cost) 138 142Total Inventories 138 1422010$’0002009$’00018 Property, Plant and Equipment – Non-current18a Classification by Public Safety and Environment – carrying amountsCrown Land, Land and Land ImprovementsCrown Land, Land and Land Improvements 1,275,379 1,036,702Less: accumulated depreciation (7,276) (5,458)Net Crown Land, Land and Land Improvements at fair value 1,268,103 1,031,244Buildings and Building ImprovementsBuildings and Building Improvements 97,403 94,397Less: accumulated depreciation (3,963) (2,044)Net Buildings and Building Improvements at fair value 93,440 92,353Plant, Equipment, Machinery and VehiclesPlant, Equipment, Machinery and Vehicles 7,627 7,718Less: accumulated depreciation (5,920) (5,854)Net Plant, Equipment, Machinery and Vehicles at fair value 1,707 1,864Piers, Jetties and River ImprovementsPiers, Jetties and River Improvements 78,040 76,340Less: accumulated depreciation (4,572) (3,231)Net Piers, Jetties and River Improvements at fair value 73,468 73,109AntiquesAt fair value 1,268 1,268Closing Balance – Antiques 1,268 1,268Works in ProgressAt cost 17,660 7,505Closing Balance – Works in Progress 17,660 7,505Net carrying amount of Property, Plant and Equipment 1,455,646 1,207,343Parks Victoria - Annual Report 2009-10 77

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201018 Property, Plant and Equipment – Non–current (continued)18bClassification by Public Safety and Environment – Carrying amountsCrown Land, Land andLand Improvementsat fair value or at costBuildings and BuildingImprovementsat fair value or at costPlant, Equipment,Machinery and Vehiclesat cost2010$’000Opening balance 1,031,244 1,031,554 92,353 92,201 1,864 2,939Additions 238,677 726 3,016 556 131 354Disposals – – – – (11) –Net revaluation increments/ decrements – – – – – –Depreciation expense (1,818) (1,808) (1,929) (1,929) (292) (494)Impairment loss – – – (71) – (3)Asset Transfer – 772 – 1,596 55Other adjustments – – – – (40) (932)Closing balance 1,268,103 1,031,244 93,440 92,353 1,747 1,8642009$’0002010$’0002009$’0002010$’0002009$’000Crown Land, Land and Land Improvements *Parks Victoria Land property has been updated using indices compiled by the office of the Valuer-General. The indices are based on the estimated percentage movement in values for each land use ineach postcode area for the nominated financial year. The methodology employed for the revaluationof Crown Land, Land and Improvements at fair value, involved the use of the appropriate percentageincrease or decrease extracted from the postcode indices, matched with the property zoning. Theeffective date of the valuation is 30th June 2008. Land improvements were last valued at 30 June 2006.Buildings and Improvements, Piers, Jetties and River Improvements *These assets have been updated using indices compiled by the office of the Valuer-General. The indicesare based on the estimated percentage movement in costs for each asset for the nominated financialyear. The methodology employed for the revaluation of these assets at fair value, involved an estimateof cost movements as per asset types & location based on reputable cost movement publications. Theeffective date of the valuation is 30 June 2008.* A review was made under the provisions of AASB 116 as at 30 June 2009 and there was no materialchange to the indexation for the period.* In accordance with FRD 103D, a fair value assessments have been performed by management for theseclasses of assets and not material changes 2010 were identified in the carrying amounts as at 30 June(30 June 2009 – Nil).78 Parks Victoria - Annual Report 2009-10

Piers, Jetties andRiver Improvementsat fair value or at costAntiquesat fair valueWorks in Progressat costTotal2010$’0002009$’0002010$’0002009$’0002010$’0002009$’0002010$’0002009$’00073,109 72,965 1,268 1,268 7,505 5,409 1,207,343 1,206,33650 520 – – 19,341 5,321 261,215 7,477– – – – – – (11) –– – – – – – – –(1,341) (1,233) – – – – (5,380) (5,464)– – – – – – – (74)1,650 857 – – (9,186) (3,225) (7,481) –– – – – – (40) (932)73,468 73,109 1,268 1,268 17,660 7,505 1,455,646 1,207,343AntiquesFor and on behalf of the office of the Valuer–General Victoria, the valuers for Colliers InternationalConsultancy and Valuation Pty. Limited, one a government approved valuer, the other a member ofthe Australian Property Institute of Certified Practising Valuers, determined that the most appropriatemethodology for the revaluation of Antiques at fair value, was to assess the dollar value, with referenceto the active and liquid antiques’ auction market, having regard to the highest and best use of the asset,for which market participants would be prepared to pay. These assets were revalued during a systematicthree-year progressive revaluation process, conducted over the financial years ended 30 June 2003 to 30June 2005.The William Ricketts Sanctuary is located in the Dandenong Ranges Gardens & contains over 70 ingroundaboriginal sculptures created by the late William Ricketts. The assets are of cultural and heritagesignificance. A valuation of these assets is not able to be determined.Parks Victoria - Annual Report 2009-10 79

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201018 Property, Plant and Equipment – Non-current (continued)(c) Crown Land, Land and Land Improvements at fair valueCrown LandLocation2010 Area(Hectares)2010 20092010$’0002009 Area(Hectares)You Yangs Regional Park 1,960 3,648 1,960 3,648Devilbend Reservoir 1,005 25,125 1,005 25,125Eildon Water Reserve 533 1,187 533 1,187Dandenong Police Paddocks 499 91,187 499 91,187Bays Assets * 498 Not Valued 498 Not ValuedLighthouse Reserves 329 1,897 329 1,897Dandenong Ranges Gardens 278 2,349 278 2,349Buchan Caves Reserve 260 336 260 336Yarra Bend Park 260 236,700 – –Albert Park 229 667,809 229 667,809Serendip Sanctuary 227 499 227 499Plenty Gorge 222 2,449 222 2,449Yarra Valley 139 112,890 139 112,890Werribee Park 130 4,738 130 4,738Vaughan Springs 100 120 100 120Coolart 79 6,033 79 6,033Mt Dandenong Observatory Reserve 72 1,891 72 1,891Olinda Golf Course 34 509 34 509Westgate 34 44,351 34 44,351Maribyrnong Valley 22 1,437 22 1,437Dandenong Valley 6 2,523 6 2,523Peach Tree Creek 4 25 4 25Point Cook / Cheetham 4 74 4 74Herring Island 3 7,009 3 7,009Queenscliff (not including Bays Assets * component) 3 2,946 3 2,946Orbost Rain Forest 1 167 1 167Rosebud 1 2,857 1 2,857San Remo 1 425 1 425Total Crown Land 6,933 1,221,181 6,673 984,4812009$’000* Represents sea beds located at Swan Bay (220 Ha), Queenscliff (137 Ha) and 141 Ha being sea bedsunder 31 piers located within Port Phillip Bay and Western Port Bay.80 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201018 Property, Plant and Equipment – Non-current (continued)(c) Crown Land, Land and Land Improvements at fair value (continued)Land, & Land ImprovementsTotal Land and Land Improvements at fair value 46,922 46,763Total Crown Land, Land and Land Improvements 1,268,103 1,031,2442010$’0002009$’00019 Intangible assets – Non–currentComputer softwareGross carrying amountOpening balance – – – –Additions 7,481 7,481 –Closing balance 7,481 – 7,481 –2010$0002009$0002010$000Total2009$000Accumulated amortisation and impairmentOpening balance – – – –Amortisation expense 435 – 435 –Closing balance 435 – 435 –Net book value at end of financial year 7,046 – 7,046 –20 Other Non-Financial Assets – CurrentPrepayments 80 179Total Other Non-Financial Assets 80 1792010$’0002009$’00021 Payables – CurrentUnsecured Creditors and Accruals 21,094 19,255Total Payables 21,094 19,255Parks Victoria - Annual Report 2009-10 81

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201022 Provisions2010$’0002009$’000(a) Current Provisions:Employee BenefitsAnnual Leave Entitlements 6,102 5,312Long Service Leave – Unconditional and Expected to Be Settled Within 12 Months 1,970 1,537Long Service Leave – Unconditional and Expected to Be Settled After 12 Months 15,958 14,75524,030 21,604Provisions Related to Employee Benefit On–costsAnnual Leave Entitlements 1,043 900Long Service Leave – Unconditional and expected to be settled within 12 months 346 271Long Service Leave – Unconditional and expected to be settled after 12 months 2,804 2,6014,193 3,772Total Current Provisions 28,223 25,376(b) Non-Current ProvisionsEmployee Benefits – Long Service Leave 1,464 9781,464 978Provisions Related to Employee Benefit On-costsProvisions Related to Employee Benefit On-costs – Long Service Leave 257 172257 172Total Non–Current Provisions 1,721 1,150Total Employee Benefits and Related On-costs 29,944 26,526(c) Movement in Non-current Provision for Dismantling:Opening Balance 642 575Unwinding of discount and effect of changes in the discount rate – 67Reversal of provision for dismantling (642) –Balance at 30 June – 642Total Provisions 29,944 27,168The provision for dismantling represented the present value of expected future cash flow payments that ParkVictoria were obliged to make in respect of the costs of dismantling and removing leasehold improvementsand restoring the leased preemies to its original state. As of June 2010, the lease was expanded to a further10 years with NIL dismantling costs at the end of the lease terms, hence the reversal of the provision fordismantling.82 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201023 Deferred Revenue2010$’0002009$’000(a) Deferred Revenue – CurrentOpening Balance 39,986 31,757Movement in Deferred Revenue – Current:Revenue recognised during the year (53,748) (48,833)Payments received in advance for works to be carried out within 12 months,89,985 57,061with the amounts to be refunded if not undertaken.Net movement in Deferred Revenue – Current 36,237 8,229Total Deferred Revenue – Current 76,223 39,986(b) Deferred Revenue – Non–CurrentOpening Balance 1,085 1,306Movement in Deferred Revenue – Non-Current:Revenue recognised during the year. (280) (221)Net movement in Deferred Revenue – Non-Current (280) (221)Total Deferred Revenue – Non-Current 805 1,085Total Deferred Revenue 77,028 41,07124 Physical asset revaluation surplusMovement in Physical Asset Revaluation SurplusOpening Balance 901,818 901,818Revaluation of Parks Victoria Assets:Crown Land, Land and Land Improvements – –Buildings and Building Improvements – –Net Revaluation Increment on Parks Victoria Assets – –Total physical asset revaluation surplus 901,818 901,818Parks Victoria - Annual Report 2009-10 83

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201025 Contributed Capital2010$’0002009$’000Opening Balance 334,465 328,784Cash transferred – DSE (1) 10,788 5,681Yarra Bend Park Trust net assets transferred (2) 242,413 –Total Contributed Capital 587,667 334,465(1) The cash transferred for Bikes and Trails for a Liveable City Initiative, Urban parks and Trails initiative,Bays and Maritime Initiative, Great Parks for a Liveable City Initiative, Piers and Jetties Initiative, VisitorManagement System, Asset Replacement and Renewal and Frankston Reservoir.(2) Parks Victoria were appointed as Committee of Management over the Yarra Bend Park commencing 17December 2009, and all assets and liabilities transfer from the Yarra Bend Park Trust by way of an AllocationStatement to Parks Victoria as follows : Cash and Deposits $812k, Receivables $87k, Property, Plant andEquipment $241,798k, Payables ($256k) and Reveniue received in advance ($28K).A Management Arrangements Review commissioned by the Department of Sustainability and Environmenton behalf of the responsible Minister, recommended the Government transfer the management of YarraBend Park from the Yarra Bend Park Trust to Parks Victoria.The changes in management arrangements will ensure the future of the Park is sustained long term throughimproved access to the State’s resources and expertise, as is the case with other Melbourne parks.The transfer comprised of Cash and Deposits, Receivables, Property, Plant and Equipment, Payables andRevenue received in advance.84 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201026 Cash Flow Information2010$’0002009$’000(a) Reconciliation of cash and cash equivalentsTotal cash and cash equivalents disclosed in the balance sheet 36,543 48,593Bank overdraft – –Balance as per cash flow statement 36,543 48,593(b) Non–cash financing and investing activitiesRestructuring of administrative arrangementsTransfer of Assets from – Yarra Bend Park Trust 241,798 –(c) Reconciliation of Net Results for the period to Net cash Flows from Operating ActivitiesNet result for the period (7,726) (1,452)Non–cash movements:Depreciation and Amortisation for the Year 5,815 5,294Provision for doubtful debts 305 (145)Net assets (received) / provided free of charge (70) (132)Loss / (gain) on sale, retirement and / or revaluation of assets 11 45Finance costs – 67Reversal of provision for dismantling (642) –Change in Assets and Liabilities:Decrease / (Increase) in receivables (3,153) (395)Decrease / (Increase) in inventories 4 (29)Decrease / (Increase) in other current assets 100 136Increase / (Decrease) in provisions 3,418 3,075Increase / (Decrease) in payables 1,839 3,455Increase / (Decrease) in deferred revenue 35,958 8,007Net Cash from/(used in) Operating Activities 35,859 17,926(d) Credit Card and Merchant FacilitiesTotal Credit Card Facility 2,000 2,000Total Merchant Facility 370 370Parks Victoria - Annual Report 2009-10 85

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201027 Contingent Liabilities and Contingent Assets2010$’0002009$’000(a) Contingent Liabilities – Other Outstanding ClaimsThere are no material claims against Parks Victoria arising out of various matters connected with itsoperating activities.(b) Contingent AssetsThere are no claims lodged by Parks Victoria arising out of matters connected with its operating activities.28 Commitments(a) Capital CommitmentsValue of commitments for capital expenditure at 30 June 2010 for the supply of works, services and materialsnot provided for in the financial statements:Not Later than One Year 5,974 6,153Later than One Year and Not Later than Five Years – –Later than Five Years – –Total Capital Commitments 5,974 6,153(b) Lease CommitmentsTotal expenditure contracted for at balance date but not provided for in the financial statements in relation to noncancellableoperating leases is as follows:Not Later than One Year 9,823 8,483Later than One Year and Not Later than Five Years 16,927 8,771Later than Five Years 9,426 674Total Non Cancellable Operating Leases 36,176 17,928Leasing arrangementsOperating leases relate to building facilities with lease terms of between three to seven years, with an optionto extend for a further three years. All operating lease contracts contain market review clauses in the eventthat Parks Victoria exercises its option to renew. Parks Victoria does not have an option to purchase theleased asset at the expiry of the lease period.86 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201029 SuperannuationParks Victoria contributes, in respect of its employees (including salary sacrifice), to the superannuation schemes as follows:Scheme Type of Scheme Contribution RateAMP Flexible Lifetime Super Accumulation Various 49 26AMP SuperLeader Accumulation Various 13 14ANZ One Answer Super Accumulation Various 52 47Asgard Capital Management Ltd Accumulation Various 59 69Australian Ethical Retail Superannuation Accumulation Various 10 –Australian Government Employee Superannuation Trust Accumulation Various 18 12Australiansuper Pty Ltd Accumulation Various 119 60Barkly Terrace Superannuation Fund SMSF Various 38 –Care Super Accumulation Various 21 22Chris and Helen Rose Superannuation Fund SMSF Various 16 –Colonial First State Accumulation Various 93 85Construction and Building Union Superannuation Fund Accumulation Various 32 19Emergency Services Superannuation Fund Accumulation Various 98 97Emergency Services Superannuation Fund Defined 16% – 17Government Superannuation Office Defined Various 1,681 1,432Government Superannuation Office – Revised Defined 17% – 178Government Superannuation Office – SERBS Defined 13% – 16HESTA Accumulation Various 22 –Host Plus Pty Ltd Accumulation Various 30 22Kerry Tait & Chris Hayward Super Fund SMSF Various 25 –Legal Super Accumulation Various 28 23Macquarie Personal Superannuation Plan Accumulation Various 12 17MC & EB Private Superannuation Fund SMSF Various 24 –Mead Superannuation Fund SMSF Various 39 –MLC Nominees Pty Limited Accumulation Various 10 –MTAA Superannuation Fund Accumulation Various 36 –Navigator Business Super Accumulation Various 17 –Perpetuals Investor Choice Superannuation Fund Accumulation Various 14 19Portfolio Service RF Accumulation Various 64 63PortfolioCare Super Accumulation Various 46 29Private Superannuation Funds Accumulation Various – 221Recruitment Super Accumulation Various 14 16Retail Employees Superannuation Trust Accumulation Various 31 26Solid Rock Superannuation Fund Accumulation Various 19 –Superwrap Accumulation Various – 20The Michelson Superannuation Fund Accumulation Various 27 –The Sally Nowlan Superannuation Fund Accumulation Various 19 –The Select Master Superannuation Fund Accumulation Various 14 62UniSuper Limited Accumulation Various 42 76Vicsuper Pty Ltd Accumulation Various 1,674 1,454Vision Super – Local Authorities Plan Defined 9% – 45Vision Super – Super Saver Accumulation Various 3,816 2,787Vision Super – Transport Scheme Defined Various – 80Vision Super – Water Industry Plan Defined Various – 699Others 97 109Total Contributions to All Funds 8,418 7,8632010$’0002009$’000Parks Victoria - Annual Report 2009-10 87

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201029 Superannuation (continued)As at the reporting date, there were no outstanding contributions payable to the above funds. Therewere no loans to or from Parks Victoria to or from any of the above funds. Parks Victoria is not liablefor any unfunded liability in respect of the above employer sponsored defined benefits superannuationschemes.30 Volunteer Resources Provided Free of ChargeIn 2009–10 volunteers contributed in excess of 25,348 days of voluntary labour on Parks Victoria managedland.Volunteers including friends groups, individuals, tertiary students, Campground Hosts, walking andrecreational clubs, field naturalists and corporate organisations undertake varied activities includingconserving historic huts, tree planting, providing information to visitors, revegetation, nurserymaintenance and propagation.No estimate of the value of these resources has been included in the financial report as there is nopractical way of determining an appropriate valuation basis.31 Auditor’s RemunerationAmounts paid / payable to:Victorian Auditor–General’s Office for the audit of the financial statements 61 582010$’0002009$’00032 Related Parties(a) Responsible PersonsThe names of persons who were Board Members at any time during the financial year ended 30 June2010 were: R Gerrand, L Appleby, C Ballenden, D Bell, R Gowans, N Harvey, K King, J Labourne,J Mahoney.The name of the responsible Minister from 1 July 2009 to 30 June 2010 was Gavin Jennings MLC,Minister for Environment and Climate Change.The name of the accountable officer for the whole of the financial year ended 30 June 2010 wasM Stone.(b) RemunerationRemuneration received or receivable by the Accountable Officer in connection with the managementof Parks Victoria during the reporting period was in the range:$290,000 – $299,999 ($280,000 – $289,000 in 2008–09)88 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201032 Related Parties (continued)(c) Board Members RemunerationTotal remuneration received or due and receivable by Board Members from thereporting entity was: 192 1932010$’0002009$’000The number of Board Members of the reporting entity included in this figure is as below:Income of Number Number$0 to $9,999 – –$10,000 to $19,999 4 8$20,000 to $29,999 4 –$40,000 to $49,999 1 1Parks Victoria - Annual Report 2009-10 89

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201032 Related Parties (continued)(c) Executive Officers RemunerationThe number of executive officers, other than Ministers and Accountable Officers, and their totalremuneration during the reporting period are shown in the first two columns in the table below in theirrelevant income bands. The base remuneration of executive officers is shown in the third and fourthcolumns. Base remuneration is exclusive of bonus payments, long–service leave payments, redundancypayments and retirement benefits.A number of employment contracts were completed during the year and renegotiated and a numberof executives received bonus payments during the year. These bonus payments depend on the terms ofindividual employment contracts. Some contracts provide for an annual bonus payment whereas othercontracts only include the payment of bonuses on the successful completion of the full term of thecontract.Total RemunerationBase Remuneration2010 Number 2009 Number 2010 Number 2009 Number$100,000 to $109,999 – – – –$110,000 to $119,999 – – – –$120,000 to $129,999 – – – 2$130,000 to $139,999 – 3 1 3$140,000 to $149,999 2 3 3 4$150,000 to $159,999 3 3 5 3$160,000 to $169,999 5 3 2 1$170,000 to $179,999 1 1 – 3$180,000 to $189,999 1 1 5 –$190,000 to $199,999 2 2 – –$200,000 to $209,999 2 – 1 1$220,000 to $229,999 – 1 – –$230,000 to $239,999 1 – – –Total numbers 17 17 17 17Total amount ($ ‘000) 2,962 2,772 2,782 2,606Executive officer base remunerations were reviewed by the Government Senior Executive RemunerationPanel (GSERP) and increases paid in accordance with Government guidelines.(d) Other Transactions of Board Members and Board Member–related entitiesOther Transactions of Board Members and Board Member–related entities Nil Nil2010$’0002009$’00090 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201033 Financial Instruments(a) Financial risk management objectivesParks Victoria’s activities expose it primarily to the financial risks of changes in interest rates. ParksVictoria does not enter into derivative financial instruments to manage its exposure to interest rate risk.Parks Victoria does not enter into or trade financial instruments, including derivative financialinstruments for speculative purposes as per the Victorian Governments Borrowing and Investment PowersAct 1987 and subsequent amendments.The policies for managing this risks is discussed in more detail below.(b) Significant Accounting PoliciesDetails of the significant accounting policies and methods adopted, including the criteria for recognition,the basis of measurement and the basis on which income and expenses are recognised, in respect of eachclass of financial asset, financial liability and equity instrument are disclosed in note 2 to the financialstatements.The carrying amounts of Park Victoria’s financial assets and financial liabilities by category are in Table33.1 below.Table 33.1: Categorisation of Financial InstrumentsNote CategoryFinancial assetsCash and cash equivalents 14 N/A 36,543 48,593Receivables 33.2 Loans and receivables (at amortised cost) 2,923 2,601Other financial assets 16 Available-for-sale financial assets (at fair value) 60,000 20,0002010$’0002009$’000Financial liabilitiesPayables 21 21,094 19,255Note:(a) The amount of receivables disclosed here exclude statutory receivables (i.e. Amounts owing fromVictorian Government and GST input tax credit recoverable). For 2010 this was $6.7M (2009 $4.2M).(c) Significant Terms and ConditionsThere are no significant terms and conditions applicable to Parks Victoria, in respect of each class offinancial asset, financial liability and equity instrument.Parks Victoria - Annual Report 2009-10 91

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201033 Financial Instruments (Continued)(d) Credit RiskCredit risk arises from the financial assets of the entity, which comprise cash and cash equivalents,trade and other receivables, available-for-sale financial assets and derivative instruments. Parks Victoria’sexposure to credit risk arises from the potential default of counter party on their contractual obligationsresulting in financial loss to the agency. Credit risk is measured at fair value and is monitored ona regular basis.Credit risk associated with the agency’s financial assets is minimal because the main debtor is theVictorian Government. For debtors other than government, it is the agency’s policy to only deal withentities with high credit ratings and to obtain sufficient collateral or credit enhancements whereappropriate.In addition, the agency does not engage in hedging for its financial assets and mainly obtains financialassets that are on fixed interest.Provision of impairment for financial assets is calculated based on past experience, and current andexpected changes in client credit ratings.Financial assets that are either past due or impairedCurrently Parks Victoria does not hold any collateral as security nor credit enhancements relating to anyof its financial assets.As at the reporting date, there is no event to indicate that any of the financial assets were impaired.There are no financial assets that have had their terms renegotiated so as to prevent them from beingpast due or impaired, and they are stated at the carrying amounts as indicated. The following tablediscloses the ageing only of financial assets that are past due but not impaired.Table 33.2: Ageing analysis of financial assets (a)CarryingamountNot pastdueand notimpaired$'000Less than1 MonthPast due but not impaired1–3months3 months– 1 year 1–5 yearsImpairedfinancialassets2010Other receivables(inc Operating Leases) 2,923 2,147 340 291 – 145 (436)2,923 2,147 340 291 – 145 (436)2009Other receivables(inc Operating Leases) 2,601 1,962 503 102 – 34 (137)2,601 1,962 503 102 – 34 (137)Note:(a) Ageing analysis of financial assets excludes statutory receivables (e.g. Amounts owing from VictorianGovernment and GST input tax credit recoverable).92 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201033 Financial Instruments (Continued)(e) Liquidity RiskLiquidity risk arises when the Park Victoria is unable to meet its financial obligations as they fall due.Park Victoria operates under the Government fair payments policy of settling financial obligations within30 days and in the event of a dispute, make payments within 30 days from the date of resolution. It alsocontinuously manages risks through monitoring future cash flows and maturities planning to ensureadequate holding of high quality liquid assets and dealing in highly liquid markets.Parks Victoria’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and currentassessment of risk. Cash for unexpected events is generally sourced from liquidation of available-for-salefinancial investments.The following table discloses the contractual maturity analysis for the Park Victoria’s financial liabilitiesTable 33.3: Interest rate exposure and maturity analysis of financial liabilitiesCarryingamountNonInterestBearingMaturity dates$’000Less than1 month1–3months3 months– 1 year 1–5 years2010Amounts payable to other government agencies 3,107 3,107 3,107 – – –Other payables 17,987 17,987 17,987 – – –21,094 21,094 21,094 – – –2009Amounts payable to other government agencies 2,416 2,416 2,416 – – –Other payables 16,839 16,839 16,839 – – –19,255 19,255 19,255 – – –Parks Victoria - Annual Report 2009-10 93

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201033 Financial Instruments (Continued)(f) Market riskThe Park Victoria’s exposures to market risk are primarily through interest rate risk with only insignificantexposure to foreign currency and other price risks. A sensitivity analysis has been prepared for interestrate risks on the return to Parks Victoria. Objectives, policies and processes used to manage each of theserisks are disclosed in the paragraphs below.Table 33.4: Interest rate market risk exposure$’000Interest rate risk–25 basis pointNet Result+100 basis pointsNet ResultFinancial assets: 2010Cash, Deposits & Investments – Based on actual 2009–10 closing balance (241) 965Carrying amount $96.6M @ 30 June 2010–100 basis points +100 basis pointsFinancial assets: 2009Cash, Deposits & Investments – Based on budgeted 2009–10 closing balance (1,017) 1017Carrying amount $68.6M @ 30 June 2009Cash, Deposits & investments include Cash and Deposits of $36.6 M and Investments of $60 M, howeverdue to a similar Interest rate on both amounts, the interest rate risk analysis has been applied on thecombined total of $96.6 M, on the estimate that the minimum interest rate decrease will be 0.25 % andthe maximum increase will be 1% for the 2010/11 financial year.Foreign currency riskThe Park Victoria is exposed to very minor foreign currency risk through its payables relating topurchases of supplies and consumables from overseas. This is because of a limited amount of purchasesdenominated in foreign currencies and a short timeframe between commitment and settlement.Interest rate riskExposure to interest rate risk is not significant. The weighted average cash interest rate earned for2009–10 was 4.04% (2008–09 4.97%).(g) Fair valueDue to the short-term nature of the current receivables, their carrying value is assumed to approximatetheir fair value and based on credit history it is expected that the receivables are neither past due norimpaired will be received when due.The fair values and net fair values of financial assets and financial liabilities are determined as follows:❚ the fair value of financial assets and financial liabilities with standard terms and conditions and tradedin active liquid markets are determined with reference to quoted market prices; and❚ the fair value of other financial assets and financial liabilities are determined in accordance withgenerally accepted pricing models based on discounted cash flow analysis.94 Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201033 Financial Instruments (Continued)The carrying values and fair values of financial assets and liabilities at balance date are:Total carrying amountas per Balance SheetAggregate fair value2010$’0002009$’0002010$’0002009$’000Cash and Cash Equivalents 36,543 48,593 36,543 48,593Receivables 9,615 6,763 9,615 6,763Other Financial Assets 60,000 20,000 60,000 20,000Total Financial Assets 106,158 75,356 106,158 75,356Payables 21,094 19,255 21,094 19,255Total Financial Liabilities 21,094 19,255 21,094 19,25534 Committed Funds2010$’000Total funds 96,543Committed cash and InvestmentsGovernment asset and initiative funding 30,525Point Nepean park establishment 23,582Fire recovery projects 12,975Other Sponsored Works 30,496Total committed cash 97,578These commitments are for complex projects that span greater than one financial year. Parks Victoriareceives significant funding in advance from many sources and manages its cash to ensure its capacity tomeet immediate financial commitments as they arise.35 Post Balance Date EventsParks Victoria is unaware of any events subsequent to the reporting date that will have a material impacton its financial position or future financial performance.Parks Victoria - Annual Report 2009-10 95

FINANCIAL REPORTSTATUTORY CERTIFICATEWe certify that the attached financial statements for Parks Victoria have been prepared in accordance withStanding Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions,Australian accounting standards and other mandatory professional reporting requirements.We further state that, in our opinion, the information set out in the Comprehensive Operating Statement,Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes to and forming part of thefinancial statements, presents fairly the financial transactions during the year ended 30 June 2010 and financialposition of Parks Victoria at 30 June 2010.We are not aware of any circumstance which would render any particulars included in the financial statementsto be misleading or inaccurate.R.GerrandChairmanM.StoneChief ExecutiveS.MahonyChief Financial OfficerDated at Melbourne, 20th August 2010.96 Parks Victoria - Annual Report 2009-10

RISK MANAGEMENT ATTESTATIONRISK MANAGEMENT ATTESTATIONI, Rob Gerrand, certify that Parks Victoria has risk management processes consistent with the Australian/New Zealand Risk Management Standard in place and an internal control system that enables the executive tounderstand, manage and satisfactorily control risk exposure. The Board verifies this assurance and that the riskprofile of Parks Victoria has been critically reviewed within the last 12 months.R.GerrandChairmanDated at Melbourne, 20th August 2010.Parks Victoria - Annual Report 2009-10 97

AUDITOR’S REPORT98 Parks Victoria - Annual Report 2009-10

AUDITOR’S REPORTParks Victoria - Annual Report 2009-10 99

APPENDIX 1DISCLOSURE INDEXParks Victoria’s 2009-10 Annual Report is prepared in accordance with all relevant Victorian legislation.This index has been prepared to facilitate identification of the organisation’s compliance with statutorydisclosure requirements.Legislation Requirement PageCharter and purposeFRD22B Manner of establishment and the relevant Minister 7FRD22B Objectives, functions, powers and duties 8, 44FRD22B Nature and range of services provided 8, 44Management and structureFRD22B Organisational structure 11Financial and other informationFRD10 Disclosure index 100FRD12A Disclosure of major contracts 46FRD22B Objectives and performance against objectives 47FRD22B Employment and conduct principles 41FRD22B Occupational health and safety 42FRD22B Summary of the financial results for the year 49FRD22B Significant changes in financial position during the year 49FRD22B Major changes or factors affecting performance 47FRD22B Subsequent events 47, 95FRD22B Application and operation of the Freedom of Information Act 1982 45FRD22B Compliance with building and maintenance provisions of the Building Act 1993 46FRD22B Statement on National Competition Policy 46FRD22B Details of consultancies under $100,000 46FRD22B Details of consultancies over $100,000 46FRD22B Statement of availability of information 45FRD 25 Victorian Industry Participation Policy Disclosure in the Report of Operations 46FRD29B Workforce Data disclosures 43SD 4.5.5. Risk management attestation 97Financial Statements required under Part 7 of FMASD 4.2 (a) Statement of changes in Equity 54SD 4.2 (b) Comprehensive Operating Statement 52SD 4.2 (b) Balance sheet 53SD 4.2 (b) Cash flows statement 55Other requirements under Standing DirectionsSD 4.2(a) Statement of compliance 58SD 4.2 (d) Rounding of amounts 70Other disclosures as required by FRDs in notes to the financial statementsFRD21A Responsible person and executive officer disclosures 88FRD103SD Non-current physical assets 77FRD109 Intangible assets 81FRD112A Defined benefit superannuation obligations 87LegislationFreedom of Information Act 1982; Whistleblowers Protection Act 2001;Building Act 1983; Victorian Industry Participation Policy Act 2003;Financial Management Act 1994454696100 Parks Victoria - Annual Report 2009-10

NOTESParks Victoria - Annual Report 2009-10 101

NOTES102 Parks Victoria - Annual Report 2009-10

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Level 10, 535 Bourke Street,Melbourne Victoria 3000Information CentreTelephone 13 1963www.parkweb.vic.gov.au