Cradle Coast Authority 2022/23 Annual Report

ANNUAL

REPORT

22|23

ACKNOWLEDGEMENT OF COUNTRY We pay respect to and acknowledge the traditional custodians of lutruwita (Tasmania): the Palawa/Pakana people.

We acknowledge the North-West Nation, including eight clans, Tommeginer, Parperloihener, Pennemukeer, Pendowte, Peerapper, Manegin, Tarkinener and the Peternidic; the South-West Nation, including four clans, Mimegin, Lowreenne, Ninene and Needwonnee; and two clans of the North Nation, Noeteeler and Plairhekehillerplue, as the traditional custodians of the lands within the Cradle Coast region.

We recognise and celebrate the Tasmanian Aboriginal peoples’ survival and continued connection with the land, spanning more than 40,000 years.

This is a very important part of our region’s story.

INTRODUCTION The Cradle Coast Authority (CCA) 2022/23 Annual Report outlines the organisation's achievements and financial performance.

The Cradle Coast is a diverse region in Tasmania that incorporates nine municipalities: Burnie City, Central Coast, Circular Head, Devonport City, Kentish, King Island, Latrobe, Waratah-Wynyard, and West Coast.

CCA was established in 1999 and is jointly owned by the region's councils, with the purpose of building a stronger region. CCA's three operating functions are Regional Economic Development, Natural Resource Management (NRM) and Strategic Services.

Our work is guided by the Representatives Letter of Expectation (LoE), the NRM Regional Strategy and the Regional Futures Plan.

CONTENTS CHIEF REPRESENTATIVE'S REPORT CRADLE COAST AUTHORITY CHAIR’S REPORT CHIEF EXECUTIVE OFFICER’S REPORT COUNCIL REPRESENTATIVES BOARD OF DIRECTORS ORGANISATION OVERVIEW REGIONAL ECONOMIC DEVELOPMENT REGIONAL ECONOMIC DEVELOPMENT CHAIR'S REPORT REGIONAL ECONOMIC DEVELOPMENT PROJECTS NATURAL RESOURCE MANAGEMENT NATURAL RESOURCE MANAGEMENT CHAIR'S REPORT NATURAL RESOURCE MANAGEMENT PROJECTS STRATEGIC SERVICES STRATEGIC SERVICES PROJECTS FINANICAL REPORT

2 4 6 8 9 10 12 13 14 18 19 20 35 36 39

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

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FROM THE CHIEF REPRESENTATIVE Writing this contribution to the Annual Report has caused me to reflect on the unprecedented change in the leadership of Local Government across the region. The 2022 election saw seven out of nine new Mayors elected and, if I’m not mistaken, eight newly elected Deputy Mayors. Despite that change in leadership, our councils’ commitment to, and reliance on, the Cradle Coast Authority is greater than at any time in our recent history. It is a credit to our member councils, and the elected representatives, that they continue to support our regional alliance and are committed to ensuring strong collaboration and a cohesive approach to regional issues.

The State Government-led review of Local Government may not deliver the outcomes many were hopeful of, but here on the coast, we are seeing a refreshing preparedness to find efficient and effective ways to work together which ultimately could provide a template for councils across the state. Our member councils are recognised as being leaders when it comes to regional collaboration and the issues and challenges that lay ahead will provide even greater opportunities for our alliance and the communities we serve. Whilst the reform process has been challenging, and unfortunately constrained by political influence, I strongly believe that changes emanating from the reform process will not only provide benefits for our regional communities but also hopefully create a platform for further consolidation in the not-too-distant future.

A highlight of the year has been the continued construction of the Cradle Coast Shared Pathway and the overwhelmingly positive feedback the Cradle Coast Authority has received from residents and visitors alike. The pathway links Latrobe through to West Ulverstone and is a credit to those Councils and contractors involved. The pathway provides wonderful opportunities for people of all abilities to actively participate in recreational and sporting pursuits and provides a wonderful link between communities along the route. We look forward, with some optimism, to the construction and completion of the Wynyard to Burnie link and the remaining section in the Central Coast Council area. The Burnie to Howth link is widely recognised as problematic but again, we are encouraged by the shared intent to find and fund a link that will complete the remaining component of this stage of the pathway.

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CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

On a personal note, I’d like to express my appreciation to the Cradle Coast Authority Leadership Team, Chief Executive Officer - Sheree Vertigan, Board Chair - Sid Sidebottom and Deputy Chief Representative - Mayor Mary Duniam, for their commitment and contribution over the past year. Our regular leadership meetings have prioritised a strategic approach to regional issues and opportunities, and I have no doubt that their collective efforts have placed the Authority in an enviable position to help shape and support the region in the years to come.

In closing, I take this opportunity to thank the Cradle Coast Representatives and their councils for their ongoing support and acknowledge the significant contribution of our dedicated staff and management team.

Stronger councils, stronger communities, stronger region!

Mayor Peter Freshney Chief Representative

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FROM THE CHAIR Greetings!

It seems to be a truism in recent years, especially in the wake of COVID-19, that each year brings its increasing challenges, and with these, opportunities - to reflect on what we do, to test how we do it, and where appropriate, to do things differently.

2022-2023 has been no different for our region and for CCA. Like our local government owners and our region more widely, CCA was looking forward to positively encouraging, participating, and anticipating the results of the Local Government Review which has been in progress for two years now. This was, and still is, an opportunity for what I outlined at the beginning of this report. Whilst some of the steam for potential widespread change and reform seems to have gone out of the process, there are still opportunities for our various Councils to work much more closely together in their endeavours to provide the important services our communities require and demand. For example, various models for ‘resource sharing’ spring to mind and CCA stands ready and able to assist in this process, if and when required.

Our Board membership has changed recently and we welcome our new independent directors: Matthew Greski; John Dowling; and Barbara Hingston – who is also Chair of our Regional Economic Development Committee. Mayors Cheryl Fuller and Gerard Blizzard are our new Mayoral directors; and they are joined by General Manager Shane Crawford, and Chair of our Natural Resource Management (NRM) Committee, Mr. Peter Voller. I thank each of these directors for their wise, professional counsel and direction, and for their significant personal support and encouragement of myself, our CEO, and our hardworking staff.

The ‘new’ Board is currently engaged with our CEO – Sheree Vertigan AM – in developing our Strategic Plan for the Future – a Plan that gives effect to our mission, role, and implementing the Letter of Expectation, the NRM Strategy and the Regional Futures Plan. CCA sees our challenges as an organisation as an opportunity to do what we do better, to fulfil our owners’ ‘expectations’, and to seek out further opportunities to engage with regional partners and beyond.

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2023 is an important time for our NRM team. Recently recognised by the National Government as the preferred provider of NRM services and programs for our region, NRM is now in the protracted negotiation stage of tendering for these services on the ground. I thank Peter Voller PSM, Spencer Gibbs, NRM Business Manager, and the 10strong NRM Team for their significant professional work in putting our bid together and for their ongoing hard work in advancing this as well as implementing the current contracted national NRM projects in our region.

More recently, CCA has been very pleased to welcome Grace El Murr (Executive Assistant to the CEO), Michelle Bruinewoud (Administrative Officer), Jenny Donovan (Program Manager - Regional Planning), and Veronica Terry (Program Manager Regional Development). Along with Patrick Harvey (Finance Manager), Jessica Berechree (Communications and Future Energy Facilitator) and our NRM team, Sheree has forged a highly motivated, professional, and well-integrated team. The Board wishes to acknowledge and thank each and every CCA employee for their hard work, goodwill, and for their professionalism.

So too, Directors wish to thank Mr. Steve Allen (Chair) and his colleagues on our Audit and Risk Committee, as well as the hard-working and committed members of the NRM and Regional Economic Development Committees. All these good people volunteer their valuable time, expertise, and good-will to CCA and our region.

I mentioned earlier that we continue to live in uncertain times and we are not alone in this. Interrelated social, economic, environmental, political pressures and challenges surround us. However, our region has a record of working together, if and when we must.

In the late 1990s CCA was born/borne out of the region’s councils coming together to create a body to advocate for, to represent, and to facilitate for the region as a whole.

It was and is not an alternative council or representative body to its owners, but an arm and instrument to act with and on their behalf. Its achievements are many – if somewhat understated at times – but its continued existence and evolution over 20-plus years is testimony to the vision of its council owners (one and all) and is quite unique. It is also an agile, professional, and well-led regional vehicle, ready, willing, and able to act with and for our councils and the region to better tackle the challenges we face in common and together.

Many of CCA’s achievements and projects are listed below in the Annual Report and in the CEO’s Message and the Board commends these to you.

To conclude, I wish to personally thank Sheree Vertigan for her excellent leadership as CEO, Mayors Peter Freshney and Mary Duniam (Chair and Deputy Chair of the Representatives Committee) for their leadership and advice, along with the Representatives Committee Members for their ongoing support, encouragement, and regional leadership.

The Hon. Sid Sidebottom Chair of CCA Board of Directors CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

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CHIEF EXECUTIVE OFFICER’S REPORT On behalf of the CCA team, the Board, Committee Members and Representatives, I present the 2022/23 Annual Report.

The Annual Report provides a snapshot of key functions, projects, outputs and the financial accountability of CCA; it describes our overall performance but it can not accurately reflect everything that we do – the one-off consultations, advice and support to community and councils; all of the activity that takes place behind the scenes but nevertheless contributes to our performance.

Being identified as an important and valuable advocate for the Cradle Coast region is critical. This advocacy can take multiple forms, from media releases, active social media, meetings with State and Federal Members of Parliament, participation in stakeholder groups and providing input into impact studies. This year has seen CCA host a number of round tables and forums with Federal Ministers, and planning is well underway for more opportunities to provide policy input and regional impact statements in the new financial year.

In last year’s Annual Report, I referred to the impact of working in a Volatile, Uncertain, Complex and Ambiguous (VUCA) world and there is no doubt that this year has been equally as challenging although the challenges are constantly shifting. As a streamlined or lean business, CCA has the capacity to reimagine and shift gears in an effort to future-proof the business but that doesn’t come without its challenges. We have a highly skilled and stable workforce but like so many other employers within our region finding additional staff with the right skill set is challenging. In an effort to address this, we have modified our business structures and, where appropriate, invested in upskilling our team to ensure we are well-placed to respond to future project management opportunities.

The uncertainty around the local government review continues to influence CCA’s planning for the future. So much has changed since our last Strategic Plan was developed just prior to COVID and the challenge for CCA management is to set a clear vision for the future. I am in a fortunate, and perhaps unique position, in that I have seen CCA from many different perspectives – as a member of the community, a director, a Committee Chair and now CEO – each position has provided insight that will shape the next chapter. The greatest challenge is to be bold enough to think about new ways of working while building on current strengths and contemplating the risks associated with uncertain times.

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The other complexity is ensuring that the partnership between CCA and its regional Councils is about reciprocity and adding value for the owners, the broader community and for CCA. Adding value however comes not only from CCA but also from Councils providing support and opportunity.

For the Natural Resource Management (NRM) team, this financial year has been dominated by the conclusion of the last five-year program – Regional Land Partnerships (RLP), the submission of a tender to be recognised as the preferred service provider for the next five-year tender, the negotiation of the agreement, including potential costing for preferred projects as defined by our NRM strategic plan, which may or may not be approved by the Federal Departments. This highly complex task was commenced in February and is yet to be fully completed. It places significant demands on the NRM team and creates a level of uncertainty about the future. On a more positive note, the excellent early work on the new tender provided further evidence of the successful integration that now exists across CCA business units.

The Coastal Pathway continues to wind its way across the region with two more sections opening just prior to the end of the financial year- Penguin to Sulphur Creek and West Ulverstone stages. It is anticipated that by the end of Q2 of 2023/2024 residents and tourists alike will be able to cycle, scoot, walk or use mobility devices to travel from Latrobe through to Sulphur Creek. It is also worth noting that work will shortly commence on the Wynyard to Cooee pathway. In addition, CCA is undertaking a pilot study to design and construct ‘pause places’ along the shared pathways.

We thank Devonport, Latrobe and Central Coast Councils for their contributions to this regional project and the outstanding work being undertaken to connect the various sections of the pathway. It will be an enormous asset to our region.

Although there are no visible signs of the work undertaken by CCA on the Truck Wash and Effluent Dump Project, there are two sites that are ready to progress to design and construct through a Request for Tender process and the two smaller projects are well progressed and hopefully will be completed by the end of 2023.

Finally, it has been another productive year for CCA. We have responded to the complexities associated with delivering ‘business as usual,’ responding to the opportunities and challenges that arise from a period of rapid economic growth and providing both stakeholders and all levels of government with considered responses to the impact of current and future developments – all within a context of COVID recovery and potentially reshaping CCA for a future beyond the review of local government.

There is no doubt that it is a VUCA context.

Sheree Vertigan AM Chief Executive Officer

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COUNCIL REPRESENTATIVES Our eight Member Councils appoint two Representatives, usually the Mayor and General Manager of each Member Council unless either is appointed to the Board, in which case the Deputy Mayor will be appointed as a Representative instead.

Council Representatives at 30 June 2023

Central Coast Council Deputy Mayor John Beswick Barry Omundson, General Manager

King Island Council Mayor Marcus Blackie Kate Mauric, General Manager

Circular Head Council Deputy Mayor Annette Dawes Vanessa Adams, General Manager

Latrobe Council Mayor Peter Freshney Gerald Monson, General Manager

Devonport City Council Mayor, Alison Jarman Matthew Atkins, General Manager

Waratah-Wynyard Council Mayor Dr. Mary Duniam Deputy Mayor Celisa Edwards

Kentish Council Mayor Kate Haberle Deputy Mayor Penny Lane

West Coast Council Mayor Shane Pitt David Midson, General Manager

We would also like to thank the following people who served as Representatives during the 2022/2023 financial year; Former Mayor Jan Bonde Former General Manager Sandra Ayton Former Mayor Daryl Quilliam Former Mayor Tim Wilson Former Deputy Mayor Don Thwaites Former Mayor Robby Walsh

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BOARD OF DIRECTORS In 2022/23 CCA had a 8-member Board of Directors, appointed by the Representatives.

The Board is responsible for the CCA’s strategic direction, financial management, the appointment of advisory committees and other fiduciary duties. Membership of the Board is skills-based along with one General Manager and two Mayoral Representatives.

Board Members at 30 June 2023 The Hon. Sid Sidebottom (Chairman) Peter Voller (Regional Natural Resource Management Committee Chair) Barbara Hingston AM (Regional Economic Development Committee Chair) Mayor Cheryl Fuller (Mayoral Representative) Mayor Gerard Blizzard (Mayoral Representative) Shane Crawford (General Manager Representative) John Dowling (Independent Director) Matthew Greskie (Independent Director) We would like to acknowledge the work and commitment of the CCA committees: Audit and Risk Committee Natural Resource Management Committee Regional Economic Development Committee We would also like to thank the following people who served on the Board during the 2022/2023 financial year; Former Mayor Annette Rockliff (Mayoral Representative) Former Mayor Julie Arnold (Mayoral Representative) Kathy Schaefer (Regional Economic Development Steering Group Chair) Malcolm Wells (Audit and Risk Committee Chair)

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VISION, PURPOSE AND PRINCIPLES CCA’s Vision and Purpose are underpinned by our commitment to our fundamental Principles.

These principles guide the way CCA conducts its business and how CCA delivers all its activities and services for the benefit of the region.

VISION

PURPOSE

A Region that is prospering as a result of strong Councils working together, where ratepayers, industry and government see the benefits of investing in the CCA model.

“Stronger Councils, Stronger Region”.

To help Councils achieve regional outcomes and maintain strong local government, by working together.

AGILE We adapt and refocus quickly and easily, in response to change.

COLLABORATIVE We play to others’ strengths and listen with intent to understand and avoid duplication.

OPTIMISTIC

LEAN

GROWTH MINDSET

We see the best possible outcome and strive for it.

We use our resources wisely and keep things simple. If a longer meeting or document won’t add value, we’ll keep it short.

We experiment, reflect, and innovate – we constantly ask ourselves “how can we do this better”?

Stronger Councils, Stronger Region.

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ORGANISATIONAL CHART Board of Directors

Chief Executive Officer Sheree Vertigan AM

NRM Business Manager Spencer Gibbs

Finance Manager Patrick Harvey

Executive Assistant Grace El Murr

Communications Officer Jessica Berechree

Administration Officer Michelle Bruinewoud

Administration Apprentice Melody Christian

Planning and MERI Manager Iona Flett

Regional Agriculture Landcare Facilitator Dr Tom O'Malley

Regional Cat Management Coordinator Kylie Ashley

Agriculture Project Coordinator Fiona Marshall

NRM Planning and project Coordinator Ben Correy

NRM Project Coordinator

Claire Jinnette

NRM Project Officer Nick Jamson

University of Tasmania PhD Candidate Samuel Hong

NRM Engagement Officer Hannah Sadler

Future Energy Facilitator Jessica Berechree

NRM Communications Officer Lesley Deans

Regional Development Program Manager Veronica Terry

NRM Trainee Project Officer Fox Ransom

Regional Planning Program Manager Jenny Donovan

Organisation chart reflects lines of reporting only, not level of responsibility or seniority 20 employees as at 30 June 2023 Bright blue shaded positions are predominately funded via State and/or Federal project funding

We would also like to acknowledge the following people who were employed at other times during the 2022/23 financial year; Ali Dugand Chrysilla Bartz Sarah Bester Siobhan Cairns Tanya Denison

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REGIONAL ECONOMIC DEVELOPMENT Making our region an even better place to work, visit, learn and invest.

REGIONAL ECONOMIC DEVELOPMENT CHAIR'S REPORT In October 2022, following the considerable legacy of former REDSG and CCA Board members Kathy Schaefer PSM and Sheree Vertigan AM, I was appointed to the CCA Board and to Chair, the Regional Economic Development Steering Group.

This year CCA’s governance of regional economic development, shifted from the steering group to a formal Committee of the Board. The Committee continues to integrate CCA’s commitment to strategic action supporting and constructively challenging its individual Member Councils, to think and act regionally in developing the capability and capacity of the Region’s resources, including renewables, critical minerals, agriculture, advanced manufacturing, and of course improving the region for its people through a focus on health, housing and transport.

Its role of working with diverse interests councils, industry, community and environmental advocates and 3 levels of government has continued to develop through policy and project advocacy; thought leadership; coordination; facilitation and participation in collaborative partnerships. Its focus remains on bringing balanced and tangible economic, social and environmental benefits to the communities of the Cradle Coast.

CCA, working with industry, environment, community, education and business members of the REDC, has capacity to act as change agent for growing community understanding of what regional economic development for the North-west region requires and what it can bring - timely, socially beneficial and environmentally sustainable, economic growth and wealth.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

This is no more urgent time than now to understand and respond to accelerating threats of climate change, its meaning for the region, its current and future impact.

This past year, the work of the REDC and CCA Board facilitated considerable progress in a number of strategic projects identified by the Committee as regionally important projects and other statewide project initiatives. CCA’s achievements and projects are listed throughout this years Annual Report.

Looking ahead - REDC is investigating different approaches for capturing the voice our Councils’ communities. Participating ‘as critical friends’ our communities will contribute advice and lived experience for consideration of specific issues in areas of regional development needs and regional importance.

We will also invite interested industry business and community stakeholders to consider applying for membership of the CCA Regional Development Committee, where they can contribute to the Regions strategic planning and directions.

I particularly want to thank the staff of CCA for the passion, support and commitment they bring to achieving the goals of CCA. I would also like to thank the Chair of the Board The Hon. Sid Sidebottom and CEO Sheree Vertigan AM for their guidance and leadership in enabling opportunities in the Cradle Coast, for its places, communities and its people.

Barbara Hingston AM Chair of the CCA Regional Economic Development Committee

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REGIONAL INVESTMENT FRAMEWORK

CRADLE COAST FUTURE ENERGY HUB

As part of the Regional Futures Plan (RFP), the Regional Investment Framework (RIF) provides a systematic approach to identifying and securing support for regionally important projects. The Framework is a key deliverable of the RFP and a method to seek support for regionally significant projects.

A CCA and industry partnership established to showcase Cradle Coast’s future energy potential. The Cradle Coast Future Energy Hub (The Hub) is a central place for industry participants to host community and industry engagement activities and a place for the community to learn about the range of renewable energy opportunities in our region.

The Regional Economic Development Committee (REDC) will maintain a list of regionally important projects - reviewed and published annually. The first list was released in early 2020. The purpose of the list is for our region to speak with one voice in support of regionally significant projects that will drive positive economic change.

Year in review

Year in review Renewable Energy Community Awareness project; created renewable energy career story videos and two online training modules.

Attended the 5th Annual Tasmanian Energy Development Conference held in Devonport.

Whaleback Ridge Energy Park (Project Renewable Future) assessed and added to the list of Projects of Regional Importance.

HIF Global has been submitted for addition to the list of Projects of Regional Importance. An assessment will be conducted by the REDC in the new financial year.

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ENTERPRIZE IN THE CRADLE COAST REGION

THE MAKERS AT CRADLE COAST UTAS

Enterprize supports founders of innovative, high growth potential businesses by providing world class education, mentoring, events and spaces across Tasmania.

The Makers site will come to showcase modern making in the region, hosting the Tasmanian Institute of Agriculture (TIA), Tech Solutions Hub, a Business Incubator and public demonstration space inside.

In 2022-2023 Enterprize expanded to the Cradle Coast, CCA supports the role of the Cradle Coast Startup Community Coordinator.

CCA will operate a Business Incubator to help support people to progress a business idea, and provide training and knowledge to progress ideas into viable businesses.

Year in review Established Enterprize in the Cradle Coast region.

Facilitated several innovative workshops within the region.

Year in review Work has begun on a $4 million+ internal refurbishment with local firm Fairbrother, the refurbishment is being funded entirely by the University.

The Makers refurbishment is expected to be complete in mid-November 2023.

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CONSTRUCTING THE COASTAL PATHWAY Jointly funded by the State and Australian Governments along with Latrobe, Devonport City and Central Coast Councils the $14.4m Coastal Pathway extension project will see 21km of additional pathway built between Latrobe and Sulphur Creek between 2020 and 2023.

Year in review Sulphur Creek to Penguin and West Ulverstone Coastal Pathways completed.

Above sections officially opened by Tasmanian Labor Senator Anne Urquhart in June, 2023.

Supported Councils in working towards completion of the Coastal Pathway.

The progress map shows how far the coastal pathway has developed. Several parts of the path will need careful planning and State and Australian funding, though the CCA is optimistic that the pathway can be connected across the entire coast.

CCA is looking forward to working with the northwest Councils to achieve this shared goal.

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FARM VEHICLE WASHDOWN AND EFFLUENT DUMPING FACILITIES Jointly funded by the State and Australian Governments and Industry. This project will see the construction of modern washdown and effluent dumping facilities at Burnie, King Island, Smithton and Stanley for livestock transport and other vehicles.

Construction of the facilities will provide increased safety to the public by removing the risk of spillages on our roads, improving animal welfare during transportation, improving working standards for drivers and reducing the risk of transferring disease and weeds between farms – biosecurity threats.

Project sites overview Burnie - The Minna Road facility will be built on land privately owned by a group of stakeholders.

King Island - Located on land leased

by TasPorts, Greenhams and Eastern Shipping this site will be upgrading existing facilities and improving cattle transport access, as well as relining the settling pond. Sub41 is managing the construction, it is estimated to be operational by the end of 2023.

Year in review Funding Agreement entered under the Australian Governments Community Development Grants Programme.

Smithton - The facility will be built by TasWater and is being jointly funded by the State and Federal Governments, with support from the site owner who has already funded rest facilities for use by truck drivers.

Stanley - The fully self-contained relocatable facility will be located on land leased by TasPorts, Greenhams and Eastern Shipping. Sub41 has designed and will construct the facility onsite it is estimated to be operational by the end of 2023.

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NATURAL RESOURCE MANAGEMENT Improving the environment and supporting sustainable agriculture.

REGIONAL NATURAL RESOURCE MANAGEMENT CHAIR'S REPORT In 2019, outgoing Cradle Coast NRM Chair, Tony Moore gave us a challenge, “that our on-ground outcomes delivery is consistent, measurable and sustainable and it clearly demonstrates behaviour and physical change in our region through CCNRM leading the adoption of best practice NRM and NRM research.” Over ensuing 4 years, I am pleased to report that we have achieved this aim.

This year our staff and their stakeholder partners saw to completion 15 important NRM initiatives including 10 large scale, multi-year NRM Regional projects for State and Australian Government agencies. These projects range from work to protect our most productive asset - our soils, to biodiversity conservation and community engagement projects aimed at ensuring Cradle Coast remains a stronghold for our unique and diverse natural and cultural values.

It is clear to me that while there is no question our work is based on best available science and practice, it is also the ability of our staff to form the trusted relationships needed to grow understanding of the interaction of environment and economics with social and cultural values.

The Committee warmly encourages the listing of Robbins Passage and Boullanger Bay as a Wetland of International Importance under the Ramsar Convention, bringing much needed recognition for this irreplaceable ecological system as a fish nursery for the Southern Ocean and a critical stopping point for globally migrating shorebirds.

We hope that 2023/24 brings resolution to this listing through the cooperation of the Tasmanian and Australian Governments.

The NRM Regional Committee has also been busy this year providing specialist comments on multiple national, Tasmanian, and local government consultation papers and reviews, intending to provide balanced perspectives on the role of natural resources and their management in government policy and planning. This function is a significant aspect of the role of the NRM Committee as a statutory authority under the NRM Act 2002. In particular, I note the important contributions the Committee has made to the Tasmanian Planning Commission consultations on Regional Land Use Planning frameworks.

Our NRM Regional Committee has overseen this year the establishment of our 2030 NRM Regional Strategy as a clear and guiding document for investment and action.

I am honoured to have worked with the CCA NRM Committee and staff and the CCA Board to achieve excellence in the delivery of valuable projects for our region. I look forward to new projects and new visions for 2023/24.

Our region is facing significant change, climate change, population change, market and political change and while these changes may be significant, it is how we respond to them that will drive the impact they may have. CCNRM stands ready to help adapt to change and build positive outcomes!

The strategy is now closely integrated with Cradle Coast Authority’s Regional Futures Plan, and Regional Planning activities as well as having clear alignment with strategies of partners such as NRM North, NRM South, Landcare Tasmania and Tasmanian Land Conservancy.

Peter Voller PSM Chair of the Regional Natural Resource Management Committee

With each project implementing priorities from our 2030 NRM Regional Strategy, this is a significant achievement for the region, and the way these projects have been delivered and reported clearly demonstrates the outcomes envisioned by our past chair.

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REGIONAL AGRICULTURE LANDCARE FACILITATOR (RALF) This project, completed in June 2023, supported farmers, industry and community groups to promote sustainable agricultural practices.

Year in review Eleven extension events were delivered for farmers and landholders during the 2022-23 year through the RALF project. Events covered topics such as soil health, diversity and function of pasture earthworms, introduction to plant diseases, identifying and managing plant diseases in a pasture-based system, case studies of plant disease management in mixed cropping and managing soil erosion in cropping systems.

As a result of the provided sessions, 14 new Black Headed Earthworm (Aporrectodea longa) nurseries were established and approximately 12,000 Blue Bomber (Geotrupes spiniger) tunnelling dung beetles were introduced to farming districts.

Ten Regional Land Partnerships (RLP) extension events were directly supported or delivered by the RALF project during the 2022-23 year. These included workshops and field days for both the Soil Extension Officer (SEO) and Protecting our Productive Soils projects.

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COASTAL SALTMARSH RECOVERY IN ROBBINS PASSAGE AND SURROUNDS This project, completed in June 2023, aimed to improve the condition and long-term protection of the Coastal Saltmarsh Threatened Ecological Community by targeting Rice Grass, the primary ecological threat to saltmarsh, and by brokering and establishing conservation agreements with landholders to maintain and protect saltmarsh on their properties.

Year in review Rice Grass spraying undertaken by Circular Head Landcare Group and contractors covered 717 hectares across 118 km of coastline. Over 522 volunteer hours were contributed.

Landholder access was granted through 20 properties and there was an industry-wide shutdown of local oyster farms for the spray week.

Final fish monitoring surveys were conducted by UTAS with results indicating that once Rice Grass is treated, there is a significant increase in the abundance of fish and an increase in fish species diversity.

Two conservation covenants signed by the landholders and the Minister, protecting 46.36 ha of saltmarsh in perpetuity. Although many of the landholders only had small areas of saltmarsh on their properties, site visits provided the opportunity to engage with coastal landholders, raise awareness about the values of saltmarsh and identify works such as fencing, revegetation and buffering that would protect the saltmarsh long term, improve its condition and provide a buffer against climate change.

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GIANT FRESHWATER CRAYFISH RECOVERY This project, completed in June 2023, aimed to to protect and improve priority stream habitat for the highly valued and vulnerable Giant Freshwater Crayfish. Working with landholders to establish conservation agreements and undertake riparian protection and rehabilitation works, the project was designed to increase the area of the species’ range that is protected from further habitat loss and degradation.

Year in review 23.78 km of river frontage in priority areas were protected with stock fencing.

Three conservation covenants were put in place to protect 63 ha of remnant vegetation, including riparian vegetation and 47.5 ha of critically endangered White Gum (Eucalyptus viminalis) wet forest.

On-site visits and technical advice have increased landholders' engagement, interest, and knowledge, leading to a high likelihood of active protection against poaching and illegal activities on their properties.

A poster and postcard were developed to raise awareness about the species and its major threat, poaching or illegal fishing, and distributed widely through retail outlets and visitor information facilities to reach both locals and tourists.

In April 2023, a Field Day was held at Duck River and attracted 34 participants, increasing local knowledge about the species and its habitat requirements.

18 landholders signed Funding Agreements through the life of the project and during an extended interview with ABC radio, two landholders discussed the benefits of their projects.

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CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

DEFINING AND MAPPING HABITAT REQUIREMENTS TO SUPPORT THE SURVIVAL OF KING ISLAND SCRUBTIT AND KING ISLAND BROWN THORNBILL This project, completed in January 2023, employed ecologists to conduct important bird surveys on King Island, to improve our understanding of the distribution and habitat requirements of the critically endangered King Island Scrubtit and King Island Brown Thornbill. The project also included vegetation surveys to improve accuracy of mapping of important native vegetation communities and habitat for these birds.

These two birds are among the top five Australian bird species considered most likely, in the absence of intervention, to become extinct within 20 years.

Year in review Habitat modelling found that the KI Scrubtit favours mature swamp forest which have been subject to significant land clearing and are increasingly threatened by a changing climate.

The KI Brown Thornbill prefers mature Eucalypt forests which now have a very limited extent on King Island.

Due to the limited and fragmented nature of remaining habitat, fire is deemed the most imminent risk to the survival of these birds, with an islandwide fire management strategy and a fire emergency response plan for critical threatened bird habitat. These are the priority conservation management recommendations.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

Although both birds’ ranges were extended during bird detection surveys, their estimated numbers remain low (only ~50 KI Scrubtits and ~100 KI Brown Thornbills) and uncertain therefore future monitoring is recommended.

Other key recommendations of the project call for priority habitats and potential future mature forests to be given immediate protection from land clearing with formal conservation management to be implemented.

Where habitat exists on private land, stock can be fenced out of vegetated areas to allow plant regeneration and conservation covenants should be pursued where appropriate.

23

ENHANCING KING ISLAND BROWN THORNBILL HABITAT PATCHES FOR FUTURE CORRIDORS This project, completed in March 2023, was delivered in partnership with King Island Landcare Group and Birdlife Australia and supported KI Brown Thornbill (KIBT) recovery by promoting the benefits of native vegetation protection and worked with local landholders to protect KIBT habitat at the northern end of a proposed north-south habitat corridor.

Year in review Three adjoining landholders were engaged to establish a demonstration site to showcase improved native vegetation management on their farms to protect critical KIBT habitat.

Works included fencing to exclude livestock, wallaby control and weed treatment.

Over eight hectares of KIBT habitat has been protected in a buffer zone south of the Pegarah State Forest, that also establishes the northern end of a potential habitat corridor to priority bird populations at Yarra Creek to the south.

All landholders in the priority habitat corridor area have been engaged during this project, becoming more aware of the important role that they can play in KIBT recovery and are prepared to support future proposed activities.

24

Broader community awareness was raised through delivery of information sessions at various community events and at an end-of-project field day at the landholder demonstration site. A community survey also had a high participation rate and demonstrated positive support for this critically endangered King Island bird.

Image: KI Brown Thornbill, King Island, TAS, image supplied by Barry Baker

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

RICE GRASS REMOVAL FROM THE RUBICON-PORT SORELL ESTUARY This project, completed in June 2023 improved the condition and the long-term protection of Coastal Saltmarsh and feeding habitat for migratory and resident birds, by targeting the primary ecological threat of the estimated 660 ha of Rice Grass in the Rubicon-Port Sorell estuary through control and containment.

Year in review This year a total of 526 ha of follow-up treatment, 20 ha of initial treatment and 2.8 ha of aerial treatment were completed in the Rubicon-Port Sorrell estuary.

This year the project received a APVMA permit to use drones to aerially spray Rice Grass. A trial was carried out in the dense meadows of the upper reaches of the estuary, with 2.8 ha treated by a professional drone contractor. The results from this trial will be used to determine the best practice approach to future aerial spraying of Rice Grass.

Final erosion monitoring was undertaken at the erosion trial site at Finger Point with results indicating that sediment release is slow after treatment of Rice Grass. This is understood to be due to the roots of the plant taking several years to break down.

During the aerial spraying trial, monitoring of water was undertaken to determine if the herbicide (Fusilade Forte) was entering the waterway. All samples indicated no detectable amount of Fusilade Forte in the waterway at the time of the following high tide nor seven days post spraying.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

25

CREATING A HOODED PLOVER STRONGHOLD ON THREE HUMMOCK ISLAND This project aimed to protect the threatened beach-nesting shorebird species, the Hooded Plover, on Three Hummock Island by working towards the eradication of feral cats from the Island. The Regional Land Partnership project finished in June 2023, however new Commonwealth funding has been secured to extend the project to June 2024.

Year in review The end-of-project survey by BirdLife Australia was completed successfully in November, with very similar numbers of Hooded Plovers detected on the island’s beaches as were there in 2019. Breeding activity was observed on the same beaches as last time.

Seven new v3.2 Felixers were leased in October, with five of these replacing the originals in the south of the island.

The sixth and seventh Felixers were installed in the north of the island by helicopter to maximise coverage. This year, following work with the Department of Climate Change, Energy, the Environment and Water to justify extending this project, the Felixers will remain installed on the island for at least another 12 months to July 2024.

The Felixers have resulted in more than half of the cat activity on the monitoring cameras being removed.

A Wildcare field trip undertaken in early June 2023 met the weeding target (6.6 ha of dunes and area above high tide) and over-achieved on the target areas of beach to be cleaned by picking up debris from 8.2 ha.

The main achievement this year was the collaboration with UTAS, timed to coincide with the end of the RLP project. A PhD student in the DEEP lab installed 30 monitoring cameras, mostly further north than the project cameras, in more inaccessible locations. These were collected in May and combined with data from the NRM cameras since 2018.

Feral cat activity on the monitoring camera and a feral cat automatically targeted by a Felixer’s LiDAR beams.

26

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

COMMUNITY SUPPORT FOR MAUGEAN SKATE RECOVERY This project, completed in March 2023, focused on the threat that fishing poses to the Maugean Skate, raising community awareness and reducing impacts on the most important parts of Macquarie Harbour for the skates’ breeding.

Year in review The level of Skate recognition and species literacy has increased significantly with delivery of six community events across northern and north-west Tasmania, a visit to Strahan Primary School as well as a partnership with Tasmania Parks & Wildlife, Summer Discovery Ranger Program on the West Coast and display in the NRE Fishing Hub at Agfest.

Sculptures will be permanently installed with the assistance of West Coast Council in a busy tourist precinct on the Strahan waterfront, this will enhance interest in the skate.

A dedicated Maugean Skate website has provided people with background information on the species and its habitat and the threats that it faces.

The website has received more than 1500 views.

The launch of the inaugural SKATEx art exhibition springboarded the endangered skate into the spotlight and was followed by a Skate art-trail in Strahan and two mini exhibitions in Hobart (IMAS & TMAG). A partnership with West Coast Council, local young people and some renowned street artists from the Tasmanian Hip-Hop Collective created a vibrant mural, appropriately located at the local skate ramp on the Strahan waterfront.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

27

PROTECTING OUR PRODUCTIVE SOILS This project, completed in June 2023, engaged and supported farmers to build capacity to better manage hillslope erosion on mixed cropping farms and soil acidification on intensive grazing enterprises. This work led to practice change on the ground and improved the sustainability of natural resource management across our productive landscapes.

Year in review Delivered six extension workshops for the region's farmers, focusing on cover cropping, multi-species pasture systems, and the importance of dung beetles in maintaining soil health.

Engaged farmers successfully by collaborating with our partners for larger field day events like the Cressy Research open day, the Tasmanian Institute of Agriculture (TIA) Forthside Vegetable Research Station open day, and Tasmanian Agriculture Productivity Group (TAPG) agriculture innovation expo at Hagley School farm.

A number of graziers were supported to trial the adoption of new practices on their farms. This included increasing the diversity across the existing pasture feed base to increase levels of seasonal ground cover and provide a more balanced diet for livestock.

Other one-to-one support for graziers included the reintroduction of autumn-active tunnelling dung beetles to Redpa in collaboration with Greenham Tasmania, where around 12,000 Blue Bombers (Geotrupes spiniger) were released across three properties.

The introduction of soil moisture probes and paddock-based weather stations to existing demonstration sites gave farmers great access to valuable data that not only showcased improved cropping and pasture management benefits but also provided a portable and real time decision support tool in the form of an App.

28

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

TASMANIAN SOIL EXTENSION PROGRAM Partnering with NRM North and NRM South, this project delivers the northwest component of the State-wide Soil Extension Program. The program's objective is to assist landholders in better understanding their soil health and provide guidance on how to enhance it. This Program has received further funding from the Tas Farm Innovation Hub to continue into 2023-24.

Year in review Provided one-on-one technical advice on soil health and soil test interpretation for 22 landholders.

Delivered three soil management decision support system tools. These included soil testing and soil nutrition management in dryland pasture systems, soil drainage management, and soil nutrition information specific to Tasmanian conditions.

Delivered five field days and four workshops on a range of soil management topics including soil test interpretation, soil health monitoring, pasture rejuvenation and soil biology.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

29

COMMUNITY NRM ENGAGEMENT PROGRAM This program aims to encourage participation by the community in natural resource management in the region by: maintaining relationships, networks and capacity for NRM across the region outside of currently-funded projects; educating and engaging the broader community in natural values, natural resource protection and best-practice NRM; engaging smallholders in best practice NRM on their properties through Property Management Planning; and improving engagement and recognition of the Tasmanian Aboriginal community and their participation in NRM. Year in review Continued First Aid Sponsorship and Community Capacity Small Grants for volunteer NRM groups. Round 2 is delivering 9 projects from 2022-2024 and Round 3 received 9 applications for projects to be delivered by June 2024.

Ongoing communication and engagement through social media, print media, direct emails to stakeholders and the quarterly Cradle to Coastlines Newsletter.

Ongoing coordination of the Council NRM Working Group and the NorthWest Weed Working Group.

80 people representing 38 different volunteer NRM groups came together for a successful ‘Link, Learn and Lunch’ event in Ulverstone in May 2023.

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CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

IMPLEMENTATION OF THE TASMANIAN CAT MANAGEMENT PLAN (TCMP) This project supports the implementation of the TCMP through developing and implementing awareness and education programs to improve levels of responsible cat ownership across the region, assisting Councils in the development of policies linked to the TCMP including the development of by-laws.

Year in review The King Island Cat Survey provided baseline data on cat ownership on King Island. Response to the survey was excellent, with 11% of King Island residents taking part. The survey was promoted via radio and social media.

Data will be used to design and implement a project specific to the requirements of the island. Community interest is very high, and this work will complement feral cat programs being organised by King Island Landcare Group, in partnership with CCA. Authorised person training under the Cat Management Act 2009 has been rolled out by NRE with the support of the Regional Cat Management Coordinators, ensuring that local government workers in the animal management space are able to educate and inform the public about responsible cat ownership and current legislation.

Data gathered by the RSPCA and Just Cats shows there is a significant number of cats being taken in from the northwest area. The only Cat Management Facility (CMF) in the region, located at RSPCA's Spreyton facility, is set to close soon. The Cradle Coast Cat Management Working Group has identified the need to establish another facility as an urgent priority. Just Cats submitted an application for the 2023/24 state budget to open a facility in Burnie, however, this was unsuccessful.

Continuing community engagement around responsible cat ownership online through TassieCat and events such as AgFest, EcoFest and the King Island Show.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

31

THE TASMANIAN WEEDS ACTION FUND (WAF) The Tasmanian Weeds Action Fund (WAF) is a $5 million State Government initiative, funded for five years from 2018/19. The funds provided by the WAF were invested with farmers and other community organisations to tackle weeds impacting valuable agriculture and environmental assets. CCA has formed a partnership with NRM North and NRM South to implement stage two of the fund in the next three years, making it accessible throughout the state.

Year in review Promoted the WAF program and project opportunities with key stakeholders through the Northwest Weed Working Group and established a key West Coast weed stakeholder meeting in Zeehan.

Provided support and advice to Weed Action Fund Coordinator and NRM North on priority WAF projects for the Cradle Coast region.

Shared and promoted WAF priorities and opportunities, through the Cradle Coast Authority communications channels.

32

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

CIRCULAR HEAD ROADKILL MITIGATION PROJECT Cradle Coast NRM is a key stakeholder in a working group established to reduce the number of Tasmanian Devils killed on the roads of the Woolnorth area.

The Woolnorth area supports one of the highest densities of Tasmanian Devils in the state, according to monitoring by the Save the Tasmanian Devil Program (STDP). This is mostly attributed to the continued absence of Devil Facial Tumour Disease (DFTD) in the Woolnorth devil population, and also because there are still large remnants of high-quality devil habitat in the area.

Year in review The speed limit on Woolnorth and West Montague Road was successfully lowered to 80km/hr, down from 100km/hr. Research shows that this reduction in speed can reduce roadkill by up to 50% Speed data collected on Woolnorth Road shows a 93% reduction in vehicles speeding at nighttime.

The community were encouraged to slow down and protect devils on the roads through education and awareness raising activities. 376 road users have pledged to do so.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

33

NRM ABORIGINAL TRAINEESHIP PROGRAM This program offers a traineeship to a member of the local Aboriginal community with an interest in conservation and land management. Enabling them to gain experience and knowledge in NRM project management and to better understand cultural landscapes, places and materials as they exist in the Cradle Coast region.

Year in review Cert III in Conservation and Ecosystem Management near completion.

Trainee nominated and is a finalist for the Aboriginal and TSI Student of the Year at the Tasmanian Training Awards.

Knowledge and experience of project management gained by trainee through engagement with colleagues, their projects, and stakeholders.

Trainee also empowered and encouraged to seek out opportunities and initiatives of own accord.

34

Trainee has had opportunity to explore and apply Aboriginal values within the context of NRM in the Cradle Coast region. He is also working towards developing relationships with Aboriginal community and stakeholders in order to further the aspirations of Aboriginal people in the Cradle Coast region. He has also been empowered to explore his own Aboriginality and understanding of cultural landscapes.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

STRATEGIC SERVICES Pursuing opportunities for our business, our owners, and our region.

REGIONAL PLANNING PROJECT This project will deliver an improved planning experience for businesses and individuals, enable greater resource sharing across Councils and ensure the region is able to derive maximum benefit from the forthcoming review of the Regional Land Use Strategy.

Year in review Submitted an interim amended Cradle Coast Regional Land Use Strategy that is currently being finalised with the State Planning Office and other state government departments and entities.

Collaborated with the State Planning Office to develop new planning instruments for the state government's ambitious agenda of planning reform.

Completed a study on housing issues in the West Coast municipality.

Pause Places Indicative Concept Design. Please note these should not be assumed to represent final designs. They are intended only to convey a sense of what is possible.

Coordination of the ‘steps towards sustainability’ project with WaratahWynyard Council to install pause places to enhance walkability, social inclusion and ecological health.

Liberal Braddon MHA Roger Jaensch discussing the ‘steps toward sustainability’ project with CCA’s Regional Planning Manager Jenny Donovan and CEO Sheree Vertigan AM.

36

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

ADVOCACY ANDSTAKEHOLDER ENGAGEMENT CCA actively participates in regional advocacy and lobbying efforts through collaboration with various stakeholders including government agencies, businesses, community organisations and groups. CCA engaged with the following stakeholders in the year 2022/2023: Government

Local Government State Government Australian Government Local Government Association of Tasmania (LGAT) Department of State Growth Renewables, Climate and Future Industries Tasmania (ReCFIT) Northern Tasmania Development Corporation (NTDC) Northern Tasmania Alliance for Resilient Councils (NTARC) Local Government Professionals Tasmania (LGPro Tas)

Education TasTAFE University of Tasmania Tasmanian Leaders

Chamber of Commerce & Industry Business Northwest Central Coast CCI Devonport CCI

State-owned Enterprise

Regional Advocacy

TasRail TasPort TasWater TasNetworks Marinus Link Hydro

Other

Employment

SEGRA Foundation Regional Australia Institute (RAI) Regional Development Australia (RDA) Advance West North West Ethical Fields Homes Tas NBN Co

West North West working Local Jobs and Skills Taskforce

Tourism West by North West Zeehan Thrives

Chart segments do not indicate a true representation of allocated time and resources spent engaging with individually listed stakeholders.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

37

COUNCIL SHARED SERVICES CCA’s Shared Services Strategy allows CCA to offer various opportunities and initiatives to our Member Councils. Our focus when it comes to shared services is to provide assistance to Member Councils in achieving their desired benefits. We do this through coordination, encouragement, and the delivery of professional services. It is not our intention to dictate or control, but rather to be a helpful and supportive resource.

Year in review Hosted a round table event with Minister Catherine King MP covering the “Growing Regions” Funding program and other funding opportunities. The event was attended by mayors, deputy mayors and general managers.

Facilitated a full-day training session for council members on effective communication with the media, titled 'Effective Communication: Leaders and Media.'

Hosted a round table event with Senator Anne Urquhart and Minister Julie Collins MP to discuss housing and homelessness. The event was attended by mayors, deputy mayors and general managers.

Hosted three Urban Provocation events; "What if we are serious about planning for an aging community?”

"Cultivating Community" and "Recasting the Tasmanian Dream." The events were well attended and helped raised awareness and start meaningful conversations on the chosen topics.

38

Council members attended a full-day communications and media training facilitated by TriComm Consulting.

CCA CEO Sheree Vertigan and Former Devonport City Council Mayor Annette Rockliff.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

FINANCIAL REPORT

Independent Auditor’s Report To the Members of the Cradle Coast Authority Report on the Audit of the Financial Report Opinion I have audited the financial report of the Cradle Coast Authority (Authority), which comprises the statement of financial position as at 30 June 2023, statements of comprehensive income, changes in equity and cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies and the statement of certification by the directors.

In my opinion, the accompanying financial report: (a) present fairly, in all material respects, the financial position of the Authority as at 30 June 2023 and its financial performance and its cash flows for the year then ended (b) is in accordance with the Local Government Act 1993 and Australian Accounting Standards.

Basis for Opinion I conducted the audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. I am independent of the Authority in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code.

The Audit Act 2008 further promotes the independence of the Auditor-General. The AuditorGeneral is the auditor of all Tasmanian public sector entities and can only be removed by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the AuditorGeneral’s opinion are significant.

My audit is not designed to provide assurance on the accuracy and appropriateness of the budget information included in the financial report.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

1

Responsibilities of Management and the Directors for the Financial Report Management is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the financial reporting requirements of the Local Government Act 1993 and for such internal control as determined necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, management is responsible for assessing the Authority’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Authority or to cease operations, or have no realistic alternative but to do so.

The directors are responsible for overseeing the Authority’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Report My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: •

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Authority’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusion is based on the audit evidence obtained up to the 2

date of my auditor’s report. However, future events or conditions may cause the Authority to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Jan Lynch Senior Manager Financial Audit Services Delegate of the Auditor-General Tasmanian Audit Office 17 August 2023 Hobart

3

Cradle Coast Authority Financial Statements For the year ended 30 June 2023

1

Cradle Coast Authority Statement of Comprehensive Income For the year ended 30 June 2023 2023

2023

2022

Notes

Budget $

Actual $

Actual $

Government Grants

3

3,596,249

5,154,719

4,314,199

Council Contributions

4

797,223

797,223

893,231

3,600

168,192

10,190

Income

Interest Received Other Income

5

Total Income

2,265,953

1,963,467

1,006,191

6,663,025

8,083,601

6,223,811

Expenses Employee Benefits

6

1,816,575

1,674,169

1,357,717

Project Materials and Services

7

6,344,775

2,465,639

623,775

Depreciation and Amortisation

8

60,651

103,266

125,218

Other Operating Expenses

9

524,839

432,485

421,172

Loss on Disposal of Fixed Assets

-

-

18,481

2,678

3,913

8,247

Total Expenses

8,749,518

4,679,472

2,554,610

Net result from transactions (net operating balance)

(2,086,493)

3,404,129

3,669,201

Interest Expenses

This Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

2

Cradle Coast Authority Statement of Financial Position as at 30 June 2023 2023

2022

Notes

$

$

Cash and cash equivalents

10

5,481,562

5,974,777

Receivables

11

622,215

382,546

Assets Current Assets

Prepayments Total Current Assets

1,405

76,826

6,105,182

6,434,149

56,181

49,885

Non-Current Assets Plant and Equipment

12

Leasehold Improvements

12

-

43,651

Right-of-Use Assets

12

192,498

53,019

Contract Asset

12

8,044,523

3,372,280

Total Non-Current Assets

8,293,202

3,518,835

Total Assets

14,398,384

9,952,985

Liabilities Current Liabilities Payables

13

1,565,231

662,061

Provisions

14

120,891

97,298

Borrowing

15

-

68,518

Lease Liabilities

16

34,772

50,018

Other Liabilities

17

767,970

929,421

Contract liabilities

18

Total Current Liabilities

194,051

-

2,682,915

1,807,316

Non-Current Liabilities Provisions

14

17,103

5,685

Lease Liabilities

16

157,806

3,552

174,909

9,237

Total Liabilities

Total Non-Current Liabilities

2,857,823

1,816,553

Net Assets

11,540,560

8,136,431

823,690

3,570,640

Equity Project Reserves

19

Accumulated Surplus

10,716,870

4,565,791

Total Equity

11,540,560

8,136,431

This Statement of Financial Position should be read in conjunction with the accompanying notes.

3

Cradle Coast Authority Statement of Cash Flows For the Year Ended 30 June 2023 2023 Notes

2022

$

$

Inflows

Inflows

(Outflows)

(Outflows)

4,242,910

3,849,523

Cash Flows from Operating Activities Grant Funding and Other Receipts (inclusive of GST) Payments to Contractors and Suppliers (inclusive of GST)

(2,449,668)

(1,476,742)

Payments to Employees

(1,639,159)

(1,387,431)

(3,913)

(8,247)

GST Refunded/(Remitted)

(208,855)

(212,278)

Interest Received

154,321

7,622

95,636

772,447

Interest on Borrowings

Net Cash Provided / Used in Operating Activities

20

Cash Flows from Investing Activities Capital grants and contributions (inclusive of GST)

4,218,293

3,386,281

Acquisition of Property and Infrastructure (Contract Asset)

(4,672,242)

(2,596,400)

Acquisition of Plant & Equipment

(16,364)

(1,323)

Net Cash Used in Investing Activities

(470,314)

788,558

Repayment of Borrowings

(68,518)

(65,096)

Repayment of Leases (Right-of-Use Assets)

(50,017)

(48,835)

Net Cash Provided by Financing Activities

(118,535)

(113,931)

Net Increase / (Decrease) in Cash Held

(493,214)

1,447,073

5,974,777

4,527,703

5,481,562

5,974,777

Cash Flows from Financing Activities

Cash at Beginning of Financial Year Cash at End of Financial Year

10

This Statement of Cash Flows should be read in conjunction with the accompanying notes.

4

Cradle Coast Authority Statement of Changes in Equity as at 30 June 2023

Notes

Project Reserves

2023 Balance as at 1 July 2022

19

Retained Surplus

Total Equity

$

$

$

3,570,640

4,565,791

8,136,431

-

3,404,129

3,404,129

Transfer to / from Reserves

(2,746,950)

2,746,950

-

Balance as at 30 June 2023

823,690

10,716,870

11,540,560

$

$

$

2,792,695

1,674,534

4,467,229

-

3,669,202

3,669,202

Net Surplus / (Deficit)

2022 Balance as at 1 July 2021 Net Surplus / (Deficit) Transfer to / from Reserves Balance as at 30 June 2022

19

777,945

(777,945)

3,570,640

4,565,791

8,136,431

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

5

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 1 1A

Significant Accounting Policies

General Information

Cradle Coast Authority (CCA) is a Joint Authority established under Section 30 of the Local Government Act 1993 (as amended) with participating Member Councils being Central Coast, Circular Head, Devonport City, Kentish, King Island, Latrobe, Waratah-Wynyard, and West Coast.

The purpose of CCA is to help Councils achieve regional outcomes and maintain strong local government, by working together.

1B

Basis of Accounting

These financial statements are a general purpose financial report that consists of a Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes accompanying the Financial Statements.

The general purpose financial report complies with applicable Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Local Government Act 1993 (as amended).

CCA has determined it does not have profit generation as a prime objective. Consequently, where appropriate, CCA has elected to apply options and exemptions within accounting standards applicable to not-for-profit entities.

This financial report has been prepared under the historical cost convention (except where specifically stated) and on the accrual and going concern basis. Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where appropriate, comparative figures have been amended to conform with current presentation, and disclosure has been made of any material changes to comparatives.

All amounts presented in the financial statements are expressed in Australian Dollars and have been rounded off to the nearest dollar.

1C

Accounting Estimates and Judgements

In the application of Australian Accounting Standards, CCA is required to make judgements, estimates and assumptions about carrying amounts of assets and liabilities that are not readily available from other sources.

The estimates and associated assumptions are based on historical experiences and various other factors believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

CCA has made no assumptions concerning the future that may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

6

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 1

Significant Accounting Policies

Key Judgements

Assumptions are utilised in the determination of CCA's employee entitlements provisions. These assumptions are discussed in Note 1N. Assumption and judgements are utilised in determining the value of CCA's property, plant and equipment including useful lives and depreciation rates. These assumptions are discussed in Note 1F.

1D

Revenue

Revenue is recognised when CCA obtains control of the contribution or the right to receive the contributions, it is probable that the economic benefits comprising the contribution will flow to CCA and the amount of the contribution can be measured reliably.

CCA determines whether an enforceable agreement exists and whether the promises to transfer goods or services to the customer are ‘sufficiently specific’. If an enforceable agreement exists and the promises are ‘sufficiently specific’ (to a transaction or part of a transaction), CCA applies the general AASB 15 principles to determine the appropriate revenue recognition. If these criteria are not met, CCA considers whether AASB 1058 applies.

Interest revenue is recognised on an accrual basis as earned using the effective interest rate method.

Grant income is recognised as revenue when CCA obtains control over the assets comprising the receipt.

Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and are valued at their fair value at the date of transfer.

Where grants recognised as revenue during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at balance date, the unused grant is also disclosed. Unreceived contributions over which CCA has control are recognised as receivables.

CCA recognises contributions without performance obligations when received. In cases where the contributions is for a specific purpose to acquire or construct a recognisable non-financial asset, a liability is recognised for funds received in advance and income recognised as obligations are fulfilled.

CCA recognises a contractual asset for work in progress where a performance obligation is satisfied by transferring a promised good or service to the customer, before the customer pays consideration or CCA transfers control of the contractual asset.

CCA reviews contractual assets for impairment annually and when indicators of impairment are identified.

All revenue is stated net of the amount of Goods and Services Tax (GST)

7

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 1 1E

Significant Accounting Policies

Borrowings

The borrowing capacity of CCA is limited by the rules of CCA. Borrowings are initially recognised at fair value net of transaction costs incurred. Subsequent to initial recognition these liabilities are measured at amortised cost.

Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Comprehensive Income over the period of the liability using the effective interest method.

1F

Plant, Equipment and Leasehold Improvements

Plant and equipment is measured at historical cost less accumulated depreciation and impairment.

Leasehold improvements are recognised at cost and are amortised over the unexpired period of the 10 year lease period.

Depreciation is calculated on a diminishing value basis over the useful lives of the assets, commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable asset are listed below and are consistent with the prior year.

Plant and Equipment:

0.55% - 66.67%

Leasehold Improvements:

10%

Depreciation rates and methods are reviewed annually, and residual values and useful lives are adjusted if appropriate at the end of each reporting period. Items of plant and equipment are derecognised upon disposal or when there is no future economic benefits to CCA.

1G

Impairment

At the end of each reporting period, CCA reviews the carrying values of its assets to determine whether there is any indication those assets have been impaired. Impairment losses are recognised in the Statement of Comprehensive Income under expenses. Reversals of impairment losses are recognised under income. For non-cash generating assets of CCA, the carrying value is presented by the depreciated value of the asset approximated by the written down replacement cost.

1H

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at-call with financial institutions, and other short-term highly liquid investments with the original maturities of two months or less.

8

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 1 1I

Significant Accounting Policies

Receivables

Receivables are carried at amortised cost using the effective interest rate method. A provision for impairment is recognised when there is objective evidence that an impairment loss has occurred.

Debtors are required to settle their accounts within 14 days of the invoice being issued. CCA does not have any concerns regarding payment of outstanding debt.

1J

Right-Of-Use Asset

A right-of-use asset is initially measured at cost comprising the initial measurement of the lease liability adjusted for any lease payments made before the commencement date (reduced by lease incentives received), plus initial direct costs incurred in obtaining the lease and an estimate of costs to be incurred in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset.

If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that CCA expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

Right of Use Asset 1K

20% - 48%

Lease Liability

The lease liability is measured at the present value of outstanding payments that are not paid at balance date, discounted by using the rate implicit in the lease. Where this cannot be readily determined then CCA's incremental borrowing rate for a similar term with similar security is used.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

1L

Payables

Payables represent the liability outstanding at the end of the reporting period for goods and services received

by CCA during the reporting period which reman unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition.

1M

Taxation

CCA is exempt from all forms of taxation except Fringe Benefit Tax, Payroll Tax, and Goods and Services Tax.

Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of the investing and financing activities, which are disclosed as operating cash flows.

9

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 1 1N

Significant Accounting Policies

Employee Benefits

Employee benefits include, where applicable, entitlements to wages and salaries, annual leave, personal leave, long service leave, superannuation and any other post-employment benefits. Expenses are recognised in the Statement of Comprehensive Income when a decrease in future economic benefits related to decrease in asset or an increase in a liability has arisen that can measured reliably.

Short-Term Obligations

Liabilities for wages and salaries, annual leave, and long service leave expected to be settled within 12 months of the end of the reporting period are measured at the amounts expected to be paid when the liabilities are settled.

Long-Term Obligations The liability for long service leave and annual leave which is not expected to be wholly settled within 12 months after the end of the reporting period in which the employee renders the related services is recognised in the provision of employee benefits and measured as the present value of expected future payments to be made in respect to services provided by employees up to the end of the reporting period. Expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash flows.

Personal Leave Benefits No accrual is made for personal leave as experience indicates that, on average, personal leave taken in each reporting period is less than the entitlement accruing in that period, and this is expected to recur in future reporting periods. CCA does not make payment for any untaken personal leave entitlements.

Superannuation During the year CCA made the required superannuation contributions for all eligible employees to an appropriate complying superannuation fund as required by the Superannuation Guarantee (Administration) Act 1992 .

1O

Allocation Between Current and Non-Current

In determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, or if CCA does not have an unconditional right to defer settlement of a liability for at least 12 months after the reporting date, regardless of when the actual settlement is expected to occur.

1P

Budget

The estimated revenue and expense amounts in the Statement of Other Comprehensive Income represent approved budget estimates and are not audited.

10

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 1 1Q

Significant Accounting Policies

Adoption of New and Amended Accounting Standards

In the current year, CCA has reviewed and assessed all the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board, and determined that none would have a material effect on CCA's operations or financial reporting

1R

Pending Accounting Standards

In the current year, CCA has reviewed and assessed all the new accounting standards and interpretations that have been published, with future effective dates, and determined they are either not applicable to CCA's activities, or would have no material impact.

11

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 2

Events after Reporting Date

There have been no events subsequent to balance date which would have a material effect of CCA's Financial Statements as at 30 June 2023.

Note 3

Government Grants 2023

2022

$

$

Federally funded grants

3,300,989

1,509,394

State funded grants

1,853,730

2,804,805

Total

5,154,719

4,314,199

1,510,618

1,342,149

300,484

46,745

Note Grants were received in respect of the following: Summary of grants

Grants - Recurrent Commonwealth Government-Regional Land Partnerships Commonwealth Government-Environmental Restoration Fund Commonwealth Government-Building Better Regions Fund

-

10,500

State Support for Regional Natural Resource Management

329,814

295,115

State -Regional Planning

260,600

39,400

State-Tasmanian Regional Cat Management

128,446

85,572

State-Enterprize in the Cradle Coast Region

125,000

State-Renewable Energy Community Awareness

30,000

State-Residential Housing Demand and Supply Study

19,870

-

State-Australian School Based Apprenticeships

-

49,718

State-Regional Futures Plan

-

20,000

State -Climate Research Grants Program

-

10,000

Total recurrent grants

25,000

2,704,832

1,924,199

49,887

110,000

Capital grants received specifically for new or upgraded assets Commonwealth Government-Community Development Grant -Truckwash Commonwealth Government -Coastal Pathways State Government-Coastal Pathways Total capital grants

1,440,000

-

960,000

2,280,000

2,449,887

2,390,000

12

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 3

Government Grants

Unspent grants and contributions Grants and contributions which were obtained on the condition that they be spent for specified purposes or in a future period, but which are not yet spent in accordance with those conditions, are as follows:

2023

2022

$

$

Note Operating Balance of unspent funds at 1 July

17,18

Add: Funds received and not recognised as revenue in the current year Less: Funds received in prior year but revenue recognised and funds spent in current year Balance of unspent funds at 30 June

17,18

Total unspent funds

Note 4

929,421

499,234

1,279,611

980,137

(1,247,011)

(549,950)

962,021

929,421

962,021

929,421

2023

2022

$

$

Council Contributions Note

Burnie City Council

39,446

154,697

Central Coast Council

178,104

173,982

Circular Head Council

65,801

64,011

Devonport City Council

205,885

202,172

Kentish Council

52,035

50,199

King Island Council

12,874

12,658

Latrobe Council

98,015

93,921

Waratah Wynyard Council

112,006

109,146

West Coast Council

33,057

32,445

797,223

893,231

2023

2022

$

$

Project Contributions

1,818,068

951,906

Fees and Charges

28,150

12,144

Total

Note 5

Other Income Note

Sponsorship Other Contributions Total

-

360

117,249

41,781

1,963,467

1,006,191

13

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 6

Employee Benefits 2023

2022

$

$

Note Wages and Salaries

1,438,092

1,251,364

Workers Compensation

10,019

9,379

Superannuation

144,136

122,125

Payroll Tax

14,448

9,915

Fringe Benefits Tax

1,456

538

Transfer of Contract Asset to Member Councils Transfer to Contract Asset Total

66,018

-

-

(35,604)

1,674,169

1,357,717

2023

2022

$

$

30,847

14,728

Capitalised Employee Benefits transferred to Contract Asset at year-end is included in Note 12.

Note 7

Project Materials and Services Note

Advertising and Marketing Consultants and Contract Payments

6,685,855

2,933,942

Project Contributions (Including Devolved Grants)

403,848

149,914

Project Materials, Workshops and Events

67,366

53,255

References and Subscriptions

15,097

31,336

Transfer of Contract Asset to Member Councils

1,109,774

Transfer to Contract Asset

(5,847,148)

(2,559,400)

-

Total

2,465,639

623,775

No transfers/refunds of project reserves recorded as project materials/services during the year were payable at year end.

Capitalised Project Materials and Services transferred to Contract Asset at year-end is included in Note 12.

Note 8

Depreciation and Amortisation 2023

2022

$

$

Plant and Equipment

10,069

24,899

Leasehold Improvements

43,651

52,404

Right-of-Use Assets

49,546

47,915

Total

103,266

125,218

Note

14

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 9

Other Operating Expenses 2023

2022

$

$

Note Audit Fees - Projects

2,159

1,170

Bank Charges

574

638

Consultancy Fees Directors' Remuneration

979

607

76,653

72,919

External Auditors' Remuneration (Tasmanian Audit Office)

18,000

12,420

Insurance

16,734

14,865

IT Expenses

95,437

96,462

-

18,945

Legal Advice-projects Meeting and Seminar Expenses

59,515

59,649

Motor Vehicle Expenses

15,986

13,419

Office Costs

30,472

34,243

Printing and Stationery

9,555

6,117

Recruitment and Relocation Expenses

7,695

17,790

Rent Outgoings

23,438

23,678

Sundry Expenses

7,895

7,864

Telephone

11,913

10,867

Travel and Accommodation

56,366

30,914

Transfer of Contract Asset to Member Councils

1,482

-

Transfer to Contract Asset

(2,368)

(1,396)

Total

432,485

421,172

2023

2022

$

$

Capitalised Other Operating Expenses transferred to Contract Asset at year-end is included in Note 12.

Note 10

Cash and Cash Equivalents Note

Cash on Hand

254

188

Cash at Bank

5,481,308

5,974,589

Total

5,481,562

5,974,777

Some of CCA’s cash and cash equivalents are subject to external funding restrictions or are held for specific business activities, this limits the amounts available for future discretionary use. These funds are held as residual project funds in relation to relevant commitments, see Note 19 for details of areas these funds are committed.

15

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 11

Receivables 2023

2022

$

$

46,779

6,801

Note Debtors Accrued Interest

16,972

3,100

Accrued Revenue

454,119

372,645

GST receivable

104,345

-

Total

622,215

382,546

2023

2022

$

$

Note 12

Property, Plant and Equipment Note

Plant and Equipment (At Cost)

239,031

222,666

Less Accumulated Depreciation

(182,850)

(172,781)

56,181

49,885

Plant and Equipment at Written Down Value

Leasehold Improvements (At Cost)

524,021

524,021

Less Accumulated Amortisation

(524,021)

(480,370)

-

43,651

Right-of-Use Assets

339,510

150,485

Less Accumulated Amortisation

(147,012)

(97,466)

Right-of-Use Assets at Written Down Value

192,498

53,019

7,835,890

3,372,280

Leasehold Improvements at Written Down Value

Contract Asset Coastal Pathway (At Cost) Truck Wash (at cost)

208,633

-

Total Works in Progress

8,044,523

3,372,280

Balance as at Beginning of Year

49,885

91,942

Additions

16,365

1,323

Disposals

-

(18,481)

Depreciation Expense

(10,069)

(24,899)

Balance as at End of Year

56,181

49,885

Movements in Carrying Amounts Plant and Equipment

16

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 12

Property, Plant and Equipment 2023

2022

$

$

Note

Leasehold Improvements Balance at Beginning of Year

43,651

96,055

Amortisation Expense

(43,651)

(52,404)

Balance at End of Year

-

43,651

Right-of-Use Assets Balance as at Beginning of Year

53,019

59,265

Additions

189,025

41,669

Disposals

-

-

Depreciation Expense

(49,546)

(47,915)

Balance as at End of Year

192,498

53,019

Balance as at Beginning of Year

3,372,280

775,880

Transfer of Contract Asset to Member Councils

(1,177,274)

Transfer to Contract Asset

5,849,516

2,596,400

Balance as at End of Year

8,044,523

3,372,280

2023

2022

$

$

Contract Asset

Note 13

-

Payables Note

Creditors

1,422,346

329,440

GST Payable

-

218,125

Other Payables

142,885

114,496

1,565,231

662,061

Total

20

17

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 14

Provisions 2023

2022

$

$

Annual Leave

89,967

65,482

Long Service leave

11,025

16,641

On Costs - Superannuation

10,944

7,968

On Costs - Other

8,955

7,207

120,891

97,298

Note Current

Total

Non-Current Long Service Leave

17,103

5,685

Total

17,103

5,685

2023

2022

$

$

Note 15

Borrowings

Current

Borrowing - Secured

-

68,518

Non-Current Borrowing - Secured

-

-

Total

-

68,518

Borrowings Secured by a Deed of Charge Over the CCA's Assets Not Later than One Year

-

68,518

Total

-

68,518

CCA has a long standing loan facility with the Tasmanian Public Finance Corporation. Submissions for loans need to be submitted by 31 May each year, and funding is considered on a case by case basis.

18

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 16

Lease Liabilities 2023

2022

$

$

192,578

53,570

192,578

53,570

Current

34,772

50,018

Non-Current

157,806

3,552

Note

Lease liabilities

Lease liabilities are secured by the related underlying assets. Future minimum lease payments will be as follows: As at 30 June 2023 Not Later than One Year

34,772

50,018

Later than One but Not Later than Five Years

154,254

3,552

Later Than Five Years

3,552

-

192,578

53,570

2023

2022

$

$

Opening balance

929,421

499,234

Grants received in advance

987,002

980,137

Grants recognised as revenue

(1,148,453)

(549,950)

Closing balance

767,970

929,421

Current

767,970

929,421

-

-

767,970

929,421

Note 17

Other liabilities Note

Grants Received in Advance

Non-Current Total

Grants which have specific performance obligations yet to be satisfied as at 30 June 2023 where the funding agreement includes a “Termination of Convenience” clause giving the Grantor the right to terminate the Deed by notice in writing, gives rise to a financial liability in accordance with AASB 9.

19

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 18

Contract liabilities 2023

2022

$

$

Note

Grants Received in Advance Opening balance

-

-

Grants received in advance

292,609

-

Grants recognised as revenue

(98,558)

-

Closing balance

194,051

-

Current

194,051

-

Non-Current Total

-

-

194,051

-

Grants which have specific performance obligations and have no Termination of Convenience clause yet to be satisfied as at 30 June 2023 under an enforceable contract.

Note 19

Project Reserves Opening Balance

2023

Transfer to Retained Earnings

Funding

Expended

Received

$

$

Closing Balance

$

$

$

381,444

Regional NRM - Regional Land Partnerships

863,968

(479,334)

-

(3,190)

Regional NRM - Standalone & State Gov

16,539

(9,946)

21,353

(21,396)

6,550

Residual Unallocated project funds

155,558

-

8,917

-

164,475

Regional Economic Development

2,534,575

(2,378,847)

273,173

(157,680)

271,221

Total

3,570,640

(2,868,127)

303,443

(182,266)

823,690

$

$

$

Regional NRM - Regional Land Partnerships

2022

648,217

$ -

$

1,395,896

(1,180,144)

863,968

Regional NRM - Standalone & State Gov

28,651

-

121,747

(133,860)

16,539

Residual Unallocated project funds

132,024

-

23,534

Regional Economic Development

1,983,802

-

3,339,625

(2,788,853)

2,534,575

Total

2,792,695

-

4,880,802

(4,102,857)

3,570,640

-

155,558

Regional Economic Development funding includes grant revenue received for expenditure on the Coastal Pathway project contracted during the financial year, these contract commitments are disclosed in Note 24. CCA has recognised a Contract Asset what is expected to be transferred to Member Councils at the practical completion date for each section.

20

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 20

Cash Flow Information 2023

2022

$

$

3,404,129

3,669,201

103,266

125,218

Note Reconciliation of cash flows from operating activities to surplus / (deficit) Result from continuing operations Depreciation/amortisation/impairment (Profit)/loss on disposal of property, plant and equipment Capital grants received specifically for new or upgraded assets

-

18,481

(4,218,293)

(3,386,281)

Decrease/(increase) in debtors and other receivables

(382,373)

(66,421)

Increase/(decrease) in creditors and other payables

1,153,897

441,964

Increase/(decrease) in provisions

35,010

(29,716)

Net cash provided by/(used in) operating activities

95,636

772,447

Change in assets and liabilities:

21

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 21 a)

Financial Instruments

Accounting Policies and Processes CCA has overall responsibility for the establishment and oversight of the risk management framework. Risk management policies are established to identify and analyse risks faced by CCA, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and business activities.

CCA has an Audit and Risk Committee, with the purpose being to report to the Board and provide appropriate advice and recommendations to assist the Board discharge its corporate governance responsibilities. It also provides a liaison between CCA and external auditor.

The Committee is responsible for reviewing and reporting to the Board on the following matters; • •

•

b)

The effectiveness of internal controls established by management to safeguard the operations, including fraud prevention, of CCA. Whether accounting procedures and policies comply with statutory requirements including the Local Government Act 1993 (as amended) and relevant Accounting Standards.

The accuracy, reliability and timeliness of financial information, including monthly reports, quarterly financials and annual financial statements, provided to the Board and Representatives.

Categories of Financial Assets and Financial Liabilities 2023

2022

$

$

5,481,562

5,974,777

Note Financial assets Cash and cash equivalents Receivables Total financial assets

622,215

382,546

6,103,777

6,357,323

(1,565,231)

(662,061)

Financial liabilities Payables Borrowings Other liabilities Total financial liabilities Net financial assets/liabilities

-

(68,518)

(767,970)

(929,421)

(2,333,201)

(1,660,000)

3,770,576

4,697,323

CCA received grant revenue in advance from Department of Natural Resources & Environment Tasmania, Department of Agriculture, Water & the Environment, Department of Premier & Cabinet and Skills Tasmania. Grants where the funding agreement includes a “Termination of Convenience” clause giving the Grantor the right to terminate the Deed by notice in writing, whereby CCA must repay the Grantor on demand, gives rise to a financial liability. These are disclosed above as “Other Liabilities”.

22

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 21 c)

Financial Instruments

Fair Value The aggregate net fair value of financial assets and liabilities, both recognised and unrecognised, at balance date are as follows; Total carrying amount as per Statement of Financial Position

Aggregate net fair value

2022

2023

2022

$

$

$

$

5,481,562

5,974,777

5,481,562

5,974,777

622,215

382,546

622,215

382,546

6,103,777

6,357,323

6,103,777

6,357,323

(1,565,231)

(662,061)

(1,565,231)

(662,061)

-

(68,518)

-

(69,261)

(767,970)

(929,421)

(767,970)

(929,421)

(2,333,201)

(1,660,000)

(2,333,201)

(1,660,743)

2023 Financial assets Cash and cash equivalents Receivables Total financial assets Financial liabilities Payables Borrowings Other liabilities Total financial liabilities

d)

Credit Risk The maximum exposure to credit risk at the balance date in relation to each class of recognised financial asset is represented by the carrying amount of those assets and indicated in the Statement of Financial Position.

e)

Risk and Mitigation

Market Risk Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market prices. The CCA’s exposures to market risks are primarily through interest rate risk, with only insignificant exposure to other prices risks and no exposure to foreign currency risk.

Interest Rate Risk CCA has no borrowings subject to interest rate risk at the balance date but does hold investments which are subject to interest rate fluctuation. CCA does not consider that the risk has an adverse effect on the performance of the business because any interest received is additional income to the funds received under funding arrangements. Only when the interest is received does it become available to invest further in the projects to which the grant deed and funding agreements apply.

23

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 21

Financial Instruments

Credit risk Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause CCA to make a financial loss. CCA has exposure to credit risk on some financial assets included in the Statement of Financial Position.

Credit risk arises from the CCA’s financial assets, which comprise cash and cash equivalents, and trade and other receivables. The majority of debtors are Member Councils and government entities where instalments are received in accordance with payment schedules contained in the grant deeds and funding agreements. The grant deeds and funding agreements also contain clauses that should funds be required to be returned to the respective government entity, the amount to be returned is net of legally committed contractual arrangements. To minimise the credit risk, each grant deed or funding agreement is assessed before executing to ensure CCA has adequate resources to perform the obligations under any deeds or agreements.

2023 Gross 2023 Impairment

2022 Gross

2022 Impairment

$

$

$

$

Current (not yet due)

46,779

-

6,801

-

Total Receivables

46,779

-

6,801

-

Aged Debtors Analysis

Liquidity Risk Liquidity risk is the risk CCA will not be able to meet its financial obligations as they fall due. CCA’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the CCA’s reputation.

Typically, CCA ensures it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

The following table lists the contractual maturities for Financial Liabilities. Contractual cash flows are based on the undiscounted total payment, including both principal and interest, on the earliest possible date on which CCA may be required to pay.

24

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 21 e)

Financial Instruments

Risk and Mitigation Cont.

Liquidity Risk Cont.

2023

2022

$

$

2,333,201

1,660,000

-

-

2,333,201

1,660,000

Note Within one year 1 to 5 years Total Financial Liabilities f)

Sensitivity disclosure analysis Considering past performance, future expectations, economic forecasts, and management’s knowledge and experience of the financial markets, CCA believes a parallel shift +1% and -1% in market interest rates (AUD) from yearend rates are ‘reasonably possible’ over the next 12 months.

The table below discloses the impact on net operating result and equity if the above movements were to occur.

-1%

1%

Change in surplus

(54,816)

54,816

Change in equity

(54,816)

54,816

Change in surplus

(59,748)

59,748

Change of equity

(59,748)

59,748

2023

2022

25

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 22

Material Budget Variations

CCA’s 2022-23 budget was adopted by the Board and endorsed by the Representatives in June 2022. The original projections have been affected by several factors, these include State and Federal Government decisions around new grant programs, changing economic activity, and decisions made by the CCA. Material variations of more than +10% and -10% are explained below.

Income Income received was up $1.4m on budget due mainly to; ✓

Government grants were up $1.6m on budget due to additional grants received after the budget was prepared.

✓

Other income received was down $302k on budget due to the timing of Council Contributions to the Coastal Pathway.

✓

Interest received was up $165k due to increasing interest rates.

Expenses Expenses were down $4m on budget due mainly to: ✓

Employee benefits were $142k under budget due changes in staffing and restructuring.

✓

Project expenses $3.9m under budget due to timing of the Coastal Pathways project.

✓

Depreciation and amortisation was $42k above budget due amortisation of Right-of-use Assets.

✓

Other operating expenses were $92k below budget due to unspent consultancy and legal fees, a Board vacancy and reduced recruitment expenditure.

✓

Interest expense was $1k up on budget due to the accounting treatment of leases.

Note 23 a)

Related Parties Transactions

Board Members Names of persons holding board positions at CCA at any time during the year were: Directors

Ms. Annette Rockliff (to Oct 2022) Ms. Barbara Hingston AM (commenced Oct 2022) Ms. Cheryl Fuller (commenced Oct 2022) Mr. Gerald Blizzard (commenced Oct 2022) Mr. John Dowling (commenced Oct 2022) Ms Julie Arnold (to Aug 2022)

Ms. Kathy Schaefer PSM (to Oct 2022) Mr. Malcolm Wells (to Oct 2022) Mr. Matthew Greskie(commenced Oct 2022) Mr. Peter Voller PSM Mr. Shane Crawford The Hon. Sid Sidebottom Chief Executive Officer

Ms. Sheree Vertigan AM

NRM Operations Manager

Mr. Spencer Gibbs

Finance Manager

Mr. Patrick Harvey

26

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 23

Related Parties Transactions

CCA conducts business with all Directors on the same terms and conditions as those entered into with other individuals and organisations. During the Financial Year there were no financial transactions with Directors other than the Remuneration disclosed below.

Key Management Personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling the entity. Representatives are elected to represent each council and have been identified as KMP. However, do not receive remuneration and therefore, are not included in the KMP remuneration disclosure below.

Termination benefits for KMP include payments during the year representing the balance of accrued annual and long service leave entitlements payable.

Transactions with Related Parties disclosed include transactions with Related Parties controlled or jointly controlled by KMP. Details of transactions that occurred, including the nature of the terms and conditions relating to the transaction and the aggregate amount of each type of transaction are provided below.

b)

Key Management Personnel Remuneration KMP include Directors, the Chief Executive Officer and Senior Management 2023 Note

2022

$

$

Short-term employee benefits

498,537

556,772

Post-employment benefits

52,346

55,677

Other long-term employment benefits

6,937

12,331

-

31,357

557,820

656,137

Termination benefits Total

27

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 23 c)

Related Parties Transactions

Transactions with Related Parties Details of transactions between CCA and other related parties are disclosed below, all contributions were made in the normal course of CCA's operations.

2023 Reference

2022

$

$

877,820

893,231

Fees and charges received from entities controlled

by KMP

-

-

Purchase of materials and services from entities controlled by KMP

-

-

Contributions received from related entities

i.

Purchase of materials and services from related entities

ii.

68,695

171,219

Materials and services purchased by related entities

iii.

179,223

107,178

Other contributions from related entities

iv.

1,672,406

798,437

Contributions to related entities

v.

-

1,000

i.

ii.

Contributions received from related parties were in accordance with the CCA’s approved annual budget adopted by the Representatives in June 2022. Details of these contributions are disclosed in Note 4 Council Contributions.

CCA purchased materials and services from related entities in accordance with approved service agreements and contracts. All purchases were at arm’s length and were in the normal course of the CCA’s operations.

•

Rental of an office building, under a lease agreement with the Burnie City Council (BCC) Jul Oct 2022.

•

Recharge of services relating to the Coastal Pathway.

iii.

Related entities purchased materials and services from CCA in accordance with approved arrangements. The total disclosure includes:

iv.

CCA received contributions from related entities. The total disclosure includes the below transactions of material significance:

•

•

Services provided by related parties under shared services arrangements.

Coastal Pathway Construction contributions from Central Coast and Devonport Councils.

No expense has been recognised in the current year or prior year for bad or doubtful debts in respect of amounts owed by related parties.

28

Notes to and forming part of the General Purpose Financial Statements for the year ended 30 June 2023 Note 23

Related Parties Transactions

No interests have been notified to the Chief Executive Officer, in respect of anybody or organisation with which CCA has major financial dealings. Other than related entities, being Member Councils identified and disclosed above.

d)

Outstanding balances, including commitments to/from related parties As at 30 June 2023, CCA did not owe any money to related parties: As at 30 June 2023, the following balances were receivable from related parties: •

Circular Head Council $1,336

•

Dulverton Waste Management $446

•

Waratah Wynyard Council $2,010

CCA has no commitments in existence at reporting date that have been made, guaranteed or secured by CCA to a related party. e)

Transactions with related parties that have not been disclosed All transactions with related parties have been disclosed, either in aggregate or detail were determined to be of material significance.

Note 24

Commitments

CCA had Coastal Pathway Construction commitments for expenditure totalling $2.1m and Truck Wash commitments of $2.5m as at 30 June 2023. In addition to this CCA has commitments in relation to Regional Development projects totalling $500k and short-term, low-value lease commitments of $27k.

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CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

Cover P12, 17 P23 P24 P31 P33 P35, 39

Cradle Coast Authority Annual Report 2022 - 2023 Published by: Cradle Coast Authority A digital version of this report can be found on the CCA website.

This report is produced to fulfil reporting obligations of Cradle Coast Authority in accordance with the CCA Rules and under the Tasmanian Natural Resource Management Act 2002.

This report covers the period from 1 July 2022 to 30 June 2023.

CRADLE COAST AUTHORITY ANNUAL REPORT 2022/23

Cradle Coast Authority 1-3 Spring Street PO Box 338 Burnie, Tasmania, 7320 www.cradlecoast.com