__MAIN_TEXT__

Page 1

ANNUAL REPORT CRADLE COAST AUTHORITY


Cradle Coast Authority Annual Report 2017-2018 Copyright Cradle Coast Authority 2018 No part of the publication may be reproduced without the express prior permission of the publisher Published by Cradle Coast Authority PO Box 338 Burnie TAS 7320 Ph: 03 6433 8400

Copyright ownership of the Employer of Choice logo is vested in the Crown Right of Tasmania

A digital version of this report can be found at www.cradlecoast.com Cradle Coast Authority would like to acknowledge the following photographers for their contribution to this publication: Hayden Griith, Henry Brydon, Dave McCormack, Chelsea Bell, Catherine Gale-Stanton, Emily Smith, Jay Rowley, Iona Flett, Dave Roberts-Thompson and Emily Presnell Designed by Emma Duncan, Red Bird Design


Contents 4

Introduction OUR PEOPLE

6

Chief Representative Report

7

Council Representatives

8

Chairman Report

10

Board of Directors

11

Staff

12

Chief Executive Officer Report OUR WORK

15

Manager, Natural Resource Management Report

16

Manager, Regional Development Report

17

Manager, Regional Tourism Report

18

Chair, Tourism Report

21-31

Natural Resource Management

33-39

Regional Economic Development

41-49

Tourism

50-86

Financial Reports and Statements

87

Thank You

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

3


Introduction

The Cradle Coast Authority (CCA) 2017/18 Annual Report outlines the organisation’s achievements and financial performance. The Cradle Coast is a vibrant and diverse region of Tasmania, with beautiful coastlines, rich agricultural lands and awe-inspiring national park areas. Almost 114,000 people call this region home. The region incorporates the nine councils of Burnie City, Central Coast, Circular Head, Devonport City, Kentish, King Island, Latrobe, Waratah-Wynyard, and West Coast. In 1999, these nine councils established the CCA to facilitate the sustainable development of the region and coordinate regional scale activity. The CCA collaborates and facilitates a diverse range of projects and initiatives involving all tiers of government, industry and the community. Our three areas of focus are regional economic development, natural resource management and tourism. The long-term sustainability and future prosperity of the region is at the heart of everything we do.

4

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Currie Naracoopa Grassy

Stanley Smithton

rd nya e ni Bur

Wy

Marrawah

e ton ort ers vonp v l e U D

Waratah Cradle Valley Zeehan Queenstown Strahan


OUR PEOPLE

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

5


OUR PEOPLE

Chief Representative Report The Cradle Coast Authority (CCA) has much to celebrate as we reflect on the past 12 months. A clear vision has been articulated through stakeholder consultation and the development of our Regional Futures Plan which, on completion, will include the actions required to see our region grow and prosper in the areas of education, innovation, economic growth, health and tourism. Our collaborative approach has been recognised by business and government as providing leadership for its nine Member councils and our region, and through clear priorities and strong advocacy, we have successfully attracted grant funding for both the revitalisation of the Cradle Mountain visitor experience and the Cradle Coast Coastal Pathway. Significant planning has progressed on the remaining sections of the Pathway between Wynyard and Latrobe, and with the promise of State and Federal funding, work will commence on some of these sections during the year. The Coastal Pathway will provide a unique cycling experience, increase opportunity for the health and wellbeing of our community and position the North West as a hub for cycle tourism. The XVI Australian Masters Games held in October was a wonderful example of what can be achieved when nine councils work together to attract a nationally significant event to our region. The Games were an outstanding success. In welcoming more than 5000 participants and visitors, we not only showcased our great sporting venues and the natural beauty of the Cradle Coast region but also our friendliness, connectedness and our capacity to host major events into the future.

6

Masters Games. I look forward to our Regional Festivals, Events and Arts Strategy being successful in growing future events as a major attraction. Councils have continued to explore shared services and work collaboratively in the areas of planning, waste management, tourism and economic development. The year has not been without its challenges. However, through those challenges have come opportunities for learning, improving, communicating, growing and strengthening our resolve to stand up and be proud of the organisation we have created. The CCA enables us to work more effectively across our nine Councils on matters which affect our communities within the Cradle Coast, and it can only be successful if we are engaged, united and focused on the vision we have articulated for our region. I would particularly like to thank Deputy Chief Representative, Mayor Peter Freshney who has worked closely with me as we have taken a more active leadership role on many of the issues which have arisen during the year. A big thank you also to the Board and to Sid Sidebottom who has brought a very different style of leadership to his role as Board Chair. Sid has been an outspoken, passionate advocate for CCA and has built good relationships with his Board, Representatives, management and the broader community. Thank you also to Brett Smith and his staff who continue to guide us towards our common objective of making the region a better place for our communities.

Many participants toured our region before or after the games, injecting millions of dollars into our economy with many expressing a wish to return.

I look forward to working with you all during the coming year as we continue to grow and improve the health and wellbeing of our region.

Congratulations to all involved in the planning, organising, hosting and success of the 2017 Australian

JAN BONDE CHIEF REPRESENTATIVE

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


OUR PEOPLE

Council Representatives

Our nine shareholder councils appoint two people to a Representatives Group that acts as the overall voice of our Councils. THE COUNCIL REPRESENTATIVES DURING 2017/18 WERE: Central Coast Council

Mayor, Chief Representative

Jan Bonde

Latrobe Council

Mayor, Deputy Chief Representative

Peter Freshney

Burnie City Council

Deputy Mayor

Alvwyn Boyd

Burnie City Council

General Manager

Andrew Wardlaw

Central Coast Council

General Manager

Sandra Ayton

Circular Head Council

Mayor

Daryl Quilliam

Circular Head Council

General Manager

Scott Riley

Devonport City Council

Acting Deputy Mayor

Annette Rockli

Devonport City Council

Acting Deputy Mayor

Leon Perry

Devonport City Council

General Manager

Paul West

Kentish Council

Mayor

Don Thwaites

Kentish Council

Deputy Mayor

Tim Wilson

King Island Council

Deputy Mayor

Jim Cooper

King Island Council

General Manager

Troy Brice

Latrobe Council

Mayor

Peter Freshney

Latrobe Council

General Manager

Gerald Monson

Waratah-Wynyard Council

Mayor

Robby Walsh

Waratah-Wynyard Council

General Manager

Shane Crawford

West Coast Council

Mayor

Phil Vickers

West Coast Council

General Manager

Dirk Dowling

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

7


OUR PEOPLE

Chairman Report

The past year has been a challenging time for the Cradle Coast Authority (CCA), yet a time for new opportunities and different ways of tackling these challenges.

The CCA has worked hard and successfully with our Councils and numerous government and non-government stakeholders to promote and advocate for our region.

CCA has continued to positively evolve as an organisation both in terms of Board membership, a revamping and remodelling of its Committee structures, a more inclusive and integrated leadership structure, as well as changes in key staffing roles. It has also continued to deliver important projects, programs, and outcomes for our region.

Recently, further significant funding commitments have been made by Tasmanian and National Governments to the Cradle Coast Coastal Pathway – matched with co-funding from some of our local councils – as well as multi-million-dollar commitments to the Cradle Mountain Master Plan. The CCA wishes to thank all those community groups and organisations, as well as the various government agencies and departments – local, state and national – for their invaluable contributions to making these projects happen.

Our challenges have been significant and diverse and have tested our organisation and its ability to respond to these. While each challenge has involved different causes and consequences for the organisation, together they have led to important and timely reassessments of how we do what we do, with what, by whom, for whom, and why. In relation to this, I would like to particularly thank the whole of our natural resource management (NRM) team led by Spencer Gibbs, Deputy Chair Peter Voller, and Chair Tony Moore for their ongoing work in preparing our latest bid for Cradle Coast NRM funding. The CCA is the product and agent of the nine councils that make up the Cradle Coast region. We are lucky to have active leaders of the CCA Representatives Committee in Mayors Jan Bonde and Peter Freshney. I thank them for their positive leadership and significant support during the year. We look forward to further progressing this close relationship and working and communicating with our owners / Representatives more closely and strategically.

8

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

It was also pleasing to see visitor numbers to our region increase markedly over the year and the strategic approach and hard work of our Tourism Committee and staff, along with our regional operators and councils, is beginning to show positive signs. The CCA has either initiated, facilitated, hosted, or helped in staging a number of important events and projects in the region such as the very successful XVI Australian Masters Games, development of a Regional Festivals, Events & Arts Strategy and implementation plan, a major regional work-related and education and training workshop, and the development and near completion of a Regional Futures Plan involving several major workshops with regional stakeholders and the Regional Australia Institute, as well as facilitating workshops around regional industry clusters and entrepreneurship. The Board wishes to thank CEO Brett Smith and all the staff at the CCA for their dedicated, professional, and hard work during the year. This year we farewelled former long-term NRM Manager


OUR PEOPLE

Richard Ingram, and Tourism manager Theresa Lord; we thank them both for their important contributions to the CCA and our region. We were also pleased to welcome Daryl Connelly as our Regional Economic Development Manager – a role that will be increasingly important as the CCA and its fellow regional partners and stakeholders implement the Regional Futures Plan. The Board has also undergone restructuring and new membership. We welcome new members Kathy Schaefer, Mayor Annette Rockliff, and General Manager Andrew Wardlaw, and the re-appointment of Malcolm Wells. Tony Moore and Rod Stendrup are representatives of the Cradle Coast NRM and Tourism Committees respectively – newly created positions on the CCA Board. I would like to thank each of these Directors along with Director (Mayor) Duncan McFie, CEO Brett Smith, and our excellent Minutes Secretary, Lauren Clarke, for their unstinting and valuable contributions to the CCA Board and personal support for me as Chair. 2019 will continue to challenge and stimulate our region and we at the CCA along with our owners and stakeholders are more than ready, willing and able to help make our region a better place in which to live, work, learn, invest, visit, and recreate. SID SIDEBOTTOM CHAIR, CCA BOARD REGIONAL BETTER TOGETHER

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

9


OUR PEOPLE

CCA Board of Directors dS i

om Wells - Dir alc ec to

rs

Mr S i

to rec

Stendrup - Dire

cto

M

rD

an McFie - Dir ec u nc to r

M

od rR

r

Mr Bob Calvert (ceased August 17)

Di

Ms Anita Dow (ceased October 17)

M

rM

r

om - Chair, Boar o tt do b f de

In 2017/2018 the CCA had a six-member Board of Directors appointed by the Representatives. The Board is responsible for the Authority’s strategic direction, financial management, appointment of advisory committees and other duties. Membership of the Board is skills-based.

Mr Michael Stretton (ceased October 17)

Mr

10

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

y Ton

M

Wardlaw Dir rew ec t

n sA

Moore - Dir ect or

te Rockliff - D ire net

ct

or

d An

or

Mr

Mr Steve Martin (ceased November 17)


Sm ith

Emily

O’ M Tom

An

Io

m a

or

C en

e lark

- Executiv eA ssi

t

lopment Office r

er ffic

Je m

u si n e s s S up ill - B p

La ur

Ja rro

yR

Ja

er

Ha y

cer ,N

n sta

Ne O’

tO

eve

Ch els

roject Offi

r, Cat Managem en t

Mar kW is

tt - P Fle na

RM

oo

ato

- Regional Tour is m r ice

Na

Regional Landca re ator i l it

r to

n - Regiona apla lC

Off

D ic

ll Be ea

ley al

c Fa

- Coastal Coo rdi ind W na na

in rd

om

eting & Commu ark nic a

ag

RM

eK le

-M

fficer

unications M an

off ice r

NRM

Regional Ec rk on

er, ag

- Information ski Ma ew n i n

ibbs - Manage r, N

O ns

mm Co

- Project

Sp

Da r

&

Cat he r

Stanton - M aleed ia

,N

tor

n

la iC

d

rds wa Ed

G cer en

tio

eG in

rism

- Biodiversity Co ord a in

ley ow

co

velopment Ma na

Pete rM ur

elly - Regiona lE

c De

Manager, Regio na l

u To

The res a

nn Co yl

RM

ager, Region al De

t

ance

Claire

Man

en pm

Fin rd Lo

nde

mi no

Cu ltu r

e&

Sm it

r, People,

r ge

ge ana

ief - Execu tive O

As at June 30, 2017

lo ve

h

-M

Ch ith Sm

er ffic

CCA Staff

Br et t

OUR PEOPLE

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

11


OUR PEOPLE

Chief Executive Officer Report

Cradle Coast Authority (CCA) was created by the nine north-west Tasmanian councils to connect communities, business and government to work together for the good of the Cradle Coast Region. CCA and councils are building a vibrant, capable and resilient region through effective collective action. CCA has continued with the approach of quality over quantity with an emphasis on developing evidence-based approaches to the delivery of projects and initiatives. As part of this, CCA is working more closely with stakeholders and existing networks to help others do what they do better. In 2017/18, Cradle Coast councils invested $852,344 into the CCA which in turn has leveraged a further $3.24M in additional co-investments for the region. The past year has seen the development of the Cradle Coast Futures Plan with business, industry and community stakeholders uniting. We were helped by the Regional Australian Institute, a think tank devoted to issues concerning regional Australia and working with communities on evidence-based options to make regions even greater. The Regional Futures Plans is being developed as a foundation for a long-term partnership with State and Commonwealth Governments for collaboration and investment in the region on important social and economic infrastructure and initiatives. In May, the region received a commitment from the Australian Government of $4.8M towards the cost of developing the next sections of the Coastal Pathway. The Tasmanian Government committed a further $4.8M providing two thirds of the funding needed to commence the planning and construction. A technical engineering investigation has now identified a solution for the final section, between Wivenhoe and Heybridge. As the most expensive section, it will require a different funding solution to

12

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

see the completion of the Coastal Pathway to realise the economic and social benefits arising from this project. The Cradle Mountain Master Plan received $30M in additional funding from the Australian Government. Along with the $30M funding from the Tasmanian Government, the project now has funding to enable the plan to be fully realised. Feedback from both the Tasmanian and Australian Governments was that funding was made available because of the region’s united support for the project. In October, the biggest event to come the region came to fruition with the 16th Australian Masters Games. The Games attracted more than 5,000 visitors to the region from across Australia and internationally. It generated more than $8M in direct economic benefits to our community. Most importantly, it provided many visitors with their first Cradle Coast experience. The impact of the Games will be felt for much longer as word of mouth about our region is shared with friends and family of those that came. 2017/18 was the last year of funding for the five-year National Landcare Program. Under the program, and with support from the Tasmanian Government, there was an investment of more than $5M in natural resource management. Key projects and outcomes delivered included the Soil First and Fert$mart initiatives which has assisted our producers to better manage the land that is so critical to the region’s agricultural productivity. Education programs such as the Discovery Ranger and Kids Teaching Kids programs have introduced our youth to the importance of the natural environment to our region for agriculture, tourism, health and wellbeing. CCA continued to provide funding for community groups to control invasive species, protect wildlife and take better care of their natural environment.


OUR PEOPLE

With the end of the NLP, the Australian Government sought tenders for the next 5-year program (NLP2). For the first time, the Australian Government opened the program to competition from other services providers. In addition, the services sought by the Australian Government were much narrower than previously with the expressed aim of meetings Australia’s international environmental commitments. No service provider was selected for the Cradle Coast. As a result, CCA is working on a new proposal that responds to feedback from the Australian Government. We are confident our next proposal will be supported by the Australian Government. With an increased focus on developing the visitor economy, a Destination Marketing and Management Strategy was developed with experts in regional destination management. The strategy was supported by investigation of which visitors are attracted to what we have to offer and how and when they plan their holidays. We now understand that our opportunity to attract people must happen much earlier in that decision process. Providing information, images and stories that stimulate an interest in the region is what counts. Using our extensive social media reach to tell stories is the RTO’s priority platform for promoting and marketing our region. The most recent tourism visitation numbers suggest the new approach is working, with the region outnumbering the others in visitation growth for the first time.

challenges, along with tools to help councils and event organisers better plan and assess their events. Following a presentation of the strategy to council leaders, a workshop was conducted with General Managers which resulted in agreement to work collaboratively to make events and tourism work more effectively. I would like to offer my sincere gratitude to the leadership provided by Chief Representative, Mayor Jan Bonde, Deputy Chief Representative, Mayor Peter Freshney and CCA Chairperson, Sid Sidebottom. During the last 12 months there has been a significant investment in building the relationships and culture of what it means to be regional. In addition to their own local responsibilities, Mayors Bonde and Freshney have given substantial time and energy to the region. Their stewardship has got us to the point where we can “hunt like a pack” with a focus on chasing the things that matter. This has been generously abetted by the commitment of Sid Sidebottom who is a true “regionalist”. That said, none of this would have been possible without the support of the Board Directors and CCA team who have gone through a lot over the past years but remained committed to making the region a better place. BRETT SMITH CEO, CRADLE COAST AUTHORITY

An events strategy, developed with funding from the Australian Government, was completed. Workshops were conducted with stakeholders including council officers and event organisers to explore opportunities and better understand what support was needed to give the region’s events a competitive edge. The strategy identified several opportunities and

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

13


OUR WORK

14

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


OUR WORK

NRM Manager Report This 2017-2018 financial year again saw significant changes, with some old hands departing and fresh faces arriving. Richard Ingram left the Cradle Coast Authority after 12 years of service, not only to our organisation but to the region. We have all benefited from Richard’s passion for, and contribution to, NRM over the years, which we thank him for; now is the time to build on his legacy. We also farewelled our Operations Manager, Grant Pearce and Project Officers, Dionna Newton and Hannah Sadler, and we thank them all for their contribution. The departures presented opportunities for renewal and we were pleased to welcome three new members to our team. Jay Rowley joined us as our Biodiversity Coordinator and has many years’ experience in our region, particularly in weed management. We were also fortunate to experience Jarrod Edwards’ knowledge and passion for his Aboriginal community in NW Tasmania. Jarrod brought his extensive land management experience to bear in supporting important NRM projects at preminghana as well as building local Aboriginal community capacity in NRM. Finally, in May, Haylee Kaplan joined our team under a new initiative, as our Regional Cat Management Coordinator. This year saw the culmination of three and a half years work in delivering the Australian Government’s National Landcare Programme. In this Annual Report we focus on some of the key projects for the financial year, including examples of some of the 27 projects delivered via small grants across three key areas of farm conservation, public land management and community landcare. The full 2017-2018 Cradle Coast NRM Annual Report can be found at www.cradlecoast.com/nrm We have had great outcomes working with various sectors of the community in managing the Rice Grass

threat to saltmarsh along our coasts and estuaries. It is wonderful to see this important threatened ecological community and habitat for many endangered migratory birds, returning naturally in the absence of invasive weed pressure. The Macquarie Harbour Shoreline Clean-up, in its second year, was again a resounding success with strong support from industry, local community and volunteer groups, resulting in more than 5 tonnes of marine debris and rubbish removed. Important initiatives have also been delivered in waterway restoration and protection. Cradle Coast NRM made a significant contribution to the State and Federal Government’s response to the devastating floods of June 2016. We have been able to support large-scale projects in the lower Mersey catchment by rehabilitating riparian areas with native plant species, to stabilise banks, improve water quality and provide important habitat to local and endemic species. The dairy and beef industries have also benefited from our support of the Cows out of Creeks Project, delivered by Dairy Tas. Engagement to raise awareness of important issues has again been a feature or our work with further trial field days, in partnership with Soil First, highlighting the benefits of cover cropping and reduce tillage approaches, beekeeping workshops and organics networking events and continuation of initiatives to engage the younger generation such as Discovery Ranger and Kids Teaching Kids. It has been a busy and productive 12 months and I thank the NRM team for all their hard work and dedication. With a transition to new funding programs imminent, now is a time for reflection and evaluation as we begin planning and development of the next phase of natural resource management in the Cradle Coast. SPENCER GIBBS MANAGER, NRM

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

15


OUR WORK

Regional Development Manager Report While continuing to support the activities of our Councils and enterprises, primary focus of 2017/18 has been on delivering the Cradle Coast Regional Futures Plan (Futures Plan). The need for the Futures Plan was identified as despite the region enjoying a period of economic growth and public and private investment, there a range of deeply entrenched economic and social challenges, including: static population levels; high underemployment; low educational attainment; industry skills gaps and lower overall living standards. The Futures Plan provides the opportunity for community, business, education and government leaders to work together to identify new innovative growth opportunities as well as tackling the structural issues that constrain our Region’s economy. Working regionally and collectively will help provide the scale and scope to deal with our challenges in ways that would not be possible individually. It will identify actionable investment priorities with the highest potential return to the community – with a focus on more jobs and better jobs. It will build a strong level of commitment and shared responsibility between local and regional leaders for implementing identified essential actions. The Futures Plan is being developed in three phases. The first and second phases involve the development of a Regional Pathfinder Report, intended to establish an informed picture of regional growth opportunities and are now complete. The third phase involves developing the associated actions, leadership and oversight for its implementation and will be completed by 30 November 2018. In addition to the development of the Futures Plan, the Team has been busy: • Supporting the development of CCA’s new website, being designed to showcase the region, its strengths and key investment opportunities;

16

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

• Developing a printable Cradle Coast Regional Investment Prospectus (in conjunction with the Office of Coordinator General); • Developing and investing in activities and programs that support innovation and entrepreneurship, such as Speed Pitch nights; • Providing professional development opportunities in innovation and organisational change leadership and project management; • Building relationships and supporting the activities of key existing and emerging industry networks and clusters, such as ICT, advanced manufacturing; fresh fruit and veg exporters and fermenters etc.; • Progressing the development of the North West Coastal Pathway, including finalising the plans for the final stages and lobbying Federal and State Governments for co-funding to complete the Pathway; and • Ensuring that the Region is adequately represented in discussions, forums and workshops about the future of emerging regional, community and economic development and disseminating knowledge through our various networks. I would like to welcome Daryl Connelly to the team and acknowledge the energy and efforts of Nani Clark and the Futures Plan Reference Group for their support in 2017 / 18. I would also like to acknowledge the Australian Government for its financial contribution to the development of the Futures Plan, through its ‘Building Better Region’s Fund’. This will be my final Report, so I would like to thank CCA for the opportunity to contribute to the Region’s development and wish the CCA Team well into the future. PETER MURDEN REGIONAL DEVELOPMENT MANAGER


OUR WORK

Tourism Manager Report

This year has been one of change and transition in a positive sense. With my commencement in the role, I took on the challenge with ambition and passion. It has been a journey of rediscovering our region, where I was fortunate to grow up, along with developing an understanding of our key experiences across the region and using the best approach to tell our stories to our visitors. Connecting and building relationships with the industry has been an integral part of my role and meeting so many incredible people doing incredible things has been rewarding. Over the last 12 months, the focus for the Cradle Coast region is to continue to work towards the objectives of the Tasmanian Visitor Economy Strategy, increasing yield and dispersal along with visitation. While this is challenging for our region, our work program reflects how we will work towards these objectives. Our strengths include rich and varied experiences on offer for our visitors, and regional access across ports and airlines. Our stunning wilderness positions our region as a destination where visitors can be immersed in nature. It is imperative we continue to tell the stories behind our experiences and showcase our attractions.

servicing visitors (including their visiting friends and family), to having a consistent approach to our messaging and branding; both will ensure the best opportunity for repeat visitation and positive word-of-mouth to drive new visitors. In addition to our local relationships, continuing to strengthen our state and national relationships is imperative. Such support and advocacy across all levels of government, particularly Tourism Tasmania, Tourism Australia, Department State Growth, Tasmanian Parks and Wildlife Service, and Tourism Industry Council Tasmania, in addition to other Regional Tourism Organisations, enables us to continue to undertake our work program effectively and deliver on our goals and connect on partnerships which benefit not only our region, but our state. Our region is continuing to grow with multiple major product development projects which will allow us to build our value proposition. This makes for a great place to visit, but also a great place to live and we see so many of our operators start businesses after visiting on holiday. Although I was only in my role a short time, I feel I made an impact across the tourism work program.

The two are fundamental and work in unison to achieve a value proposition to our visitors which is positive in all stages of the visitor travel journey.

I would like to thank the Regional Tourism Committee for their support and strategic direction, my colleagues at the CCA who assisted me with implementing our projects, the leadership of our CEO, Brett Smith, and Chair Sid Sidebottom, our industry and all of the Cradle Coast councils who allow us to achieve great things.

From working with local communities and industry to ensure they adopt a high-quality approach to

THERESA LORD MANAGER, REGIONAL TOURISM

Our destination marketing has experienced a significant shift from destination marketing to destination marketing and management.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

17


OUR WORK

Tourism Committee Chair Report The year in review was one that highlighted considerable change with the departure of our long-term Regional Tourism Manager and our good fortune in finding Theresa Lord to fill this vital industry role. The changeover came at a critical time with the introduction of the newly developed Strategic Marketing Plan, which created the framework to bring us forward into the ever-changing marketing world with an emphasis on digital, and the continuing and increasing importance of social media in getting our message out to our potential visitors before they leave home. We are fortunate in that our region has a wonderfully diverse range of things to see and do, however, it was becoming clear that our visitor numbers were not keeping pace with other regions, – particularly the south and east of Tasmania – hence the need to be strategic in our marketing efforts. The basic arrangement with Tourism Tasmania attracting visitors to the State and the Regional Tourism Organisations (RTOs) being responsible for attracting visitors to the region, created significant need for the directional change provided by the newly created strategic marketing plan. Such a change in direction from “tactical” marketing (newspaper, print, TV) was not without criticism. However, it was and is intended that such marketing will no longer be the sole method of attracting visitors to our Region. I am pleased to report the latest Tasmania Visitor Survey (TVS) results for the year ended June 2018 – while early days – indicated that our Region had the strongest growth in visitation for the year ahead of the other Regions in Tasmania. This is a great result and as noted, while early days, does give an indication that our efforts of getting to potential visitors before they leave home are having a positive impact.

18

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

We continued to advocate at every opportunity with Tourism Tasmania and the Government regarding the need for visitor dispersal throughout the regions from the major attractions around Hobart. It is extremely pleasing to note that part of the new State visitor plan (T21) now highlights the objective of visitor dispersal and improvement in yield (visitor spend). Clearly, we remain at a disadvantage to Hobart and Launceston as the two major gateways, however we work closely and cooperatively with Spirit of Tasmania and remain incredibly appreciative of their willingness to assist with visitors to our region. Their plan for new vessels with a significant increase in capacity, is positive news for the future of our region. It would be remiss of me to not acknowledge the support given by Tourism Tasmania on the demand side, and the Department of State Growth on the supply side of Tourism. Tourism Tasmania has been incredibly successful with its marketing efforts for the State, with every indication that the T20 target of 1.5M visitors to the State will be achieved. Also, we are grateful for the support of the Department of State Growth via funding of, and support for, the Destination Action Plans (DAPs). The DAPs have enabled communities across the Cradle Coast to engage with the visitor economy in a meaningful way to ensure visitors to their area receive a great experience. The State and Federal Governments, via their support for the Cradle Mountain Master Plan, Coastal Pathway, bike tracks, and upgrades to roads, will clearly enhance our visitor experience and add to our region’s attractions. The soon-to-be-launched Western Wilds drive journey, linking the south to the state’s west, and on to other parts of our region, is a significant show of


OUR WORK

State Government support for our Region and will no doubt assist greatly with encouraging visitors to travel and enjoy our region’s many attributes. Tasmania’s Parks & Wildlife Service are also close partners of ours and their active and positive engagement with visitors and their continued upgrading of facilities is appreciated and vital to our visitors’ enjoyment.

CRADLE COAST TOURISM EXECUTIVE MEMBERS as at June 30, 2017 • Rod Stendrup (Chairman) • Theresa Lord Manager, Regional Tourism (observer) • Justin McErlain The Waterfront Wynyard

While Theresa is no longer with us, I would like to express my gratitude for the effort she displayed while initiating the marketing changes to keep the Cradle Coast Authority aligned with the changing digital world.

• Lyndon Jago Stay Tasmania

However, her knowledge of the region will not be lost and will continue to be beneficial to us in her new role with Tourism Tasmania. I also acknowledge Chelsea Bell who has, among many other duties, guided the DAPs through their formative days and ensured general behind-the-scene matters required in the day-to-day operations have been adequately administered.

• Kirk Pinner Outside the Square Solutions

Finally, my thanks to the Cradle Coast Tourism Committee who have offered their time and diverse expertise in an unselfish manner to assist the Tourism team with guidance during a time of change. Also, to the CCA team who provide the necessary administrative support, and lastly but not least to our nine Member Councils who provide financial support for our Tourism efforts via their continuing support and contribution to the CCA.

• Anthony Brown West Coast Wilderness Railway

• Alicia Peardon Hundred Acres at Ghost Rock

• Todd Ashdown • Catherine Stark Seven Sheds Brewery • Sheree Vertigan Education leader

ROD STENDRUP CHAIR, CRADLE COAST TOURISM COMMITTEE

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

19


20

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


Natural Resource Management

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

21


NATURAL RESOURCE MANAGEMENT

Nutrient Management Planning

Around 940 hectares of intensively grazed improved pasture across 47 dairy farms is now under best-management practice guidelines, due to the Fert$mart project. During 2017-18, the Cradle Coast Authority NRM team have supported landholders to develop and implement nutrient management plans tailored specifically for their farm. Increased adoption of science-based nutrient management planning has resulted in greater use of on farm resources for fertiliser, predominantly dairy effluent, in addition to highlighting the value to farmers of investing in soil testing. Previously seen largely as a waste problem to deal with, the nutritional value of effluent as a fertiliser is now widely recognised from building the capacity of dairy farmers in nutrient budgeting. This has given rise to confidence for agricultural contractors to provide services in this area.

We used to get a lot of phone calls from farmers asking if there was any funding support for soil testing. Since Fert$mart has become established in Tasmania, we no longer get those phone calls. Fert$mart has given farmers a reason to appreciate the value of soil testing. Farmers are spending around $1,200 to $2,000 on soil testing for their Fert$mart plan. Some farms have even paid to soil test every paddock, which is generally $15,000 plus for a dairy farm. – RACHEL BROWN, DAIRYTAS NRM SPECIALIST

PARTNERS DairyTas.

HIGHLIGHTS

47

Fert$mart nutrient management plans supported

22

940 hectares of pasture has been improved

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Increased adoption of science-based nutrient management planning

Greater use of on-farm resources for fertiliser


NATURAL RESOURCE MANAGEMENT

OVERVIEW The Cradle Coast Authority NRM team have supported 47 commercial dairy farms to develop and implement nutrient management plans tailored specifically for their farm.

OUTCOME Around 940 hectares of intensively grazed improved pasture across 47 dairy farms is now under best-management practice guidelines, due to the Fert$mart project. Increased adoption of science-based nutrient management planning has resulted in greater use of on farm resources for fertiliser, predominantly dairy effluent, in addition to highlighting the value to farmers of investing in soil testing.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

23


NATURAL RESOURCE MANAGEMENT

Discovery Ranger Program

Increased awareness of biodiversity values and an increase in skills, knowledge and participation in natural resource management has been the result of the 2018 Discovery Ranger Program. Tasmania Parks and Wildlife Service Discovery Ranger Program reached out to visitors and communities in Arthur River, Strahan, Queenstown, Rosebery, Zeehan, Boat Harbour and Sisters Beach this summer. Public events and activities included quiz nights, shearwater tours and fun games such as ocean doctors, super shorebirds and wildlife detectives. The employment of an Aboriginal Discovery Ranger further enhanced the program. Participants were enthusiastic about the subject matter, and according to the final report by the Rangers involved,

responded particularly well to education activities about marine debris impacts on wildlife. The program’s key environment messages are delivered via fun activities in a non-threatening manner. One important local and relevant topic (due to the recent Macquarie Harbour Shoreline Clean-up) was the impacts of marine debris on wildlife, where participants discussed practical mitigation measures.

PARTNERS Discovery Ranger Program, Tasmania Parks and Wildlife Service (DPIPWE).

HIGHLIGHTS

1088

participants

24

25

activities

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

PWS and Cradle Coast NRM strengthen partnership

Increased the size and scope of the partnership into western and north-western Tasmania


NATURAL RESOURCE MANAGEMENT

OVERVIEW The 2017-2018 Discovery Ranger program engaged more than 1000 people during the peak summer period from December 2017 to January 2018 and offered visitors outside of Tasmania’s national parks the chance to join in a wide range of activities.

OUTCOME Increased awareness of biodiversity values and an increase in skills, knowledge and participation in natural resource management has been the result of the 2017-2018 Discovery Ranger Program.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

25


NATURAL RESOURCE MANAGEMENT

Flood Recovery

Cradle Coast NRM’s flood recovery investment resulted in significant improvements to riparian areas in the lower to mid Mersey catchment damaged by the floods of June 2016.

establishment and provide the greatest protection to water quality, including mitigating the threats of sedimentation and nutrient and pesticide incursions into waterways over the long term.

This has improved the extent and condition of native riparian vegetation and reduced the threat of willow infestation to improve bank stabilisation over the long term, reducing the risks to water quality.

One sensitive corridor planting of 3.5 ha has been further protected from stock with the erection of 1.7 km of fencing.

It also improved the condition and extent of habitat for threatened and EPBC-listed species such as Eastern Barred Bandicoot, Tasmanian Devil, Giant Freshwater Lobster and Central North Burrowing Crayfish. Habitat was improved with the planting of 30,000 native seedlings across 6.1 ha. Planting densities were high to improve chances of broader

Decreasing the extent of 8.4 ha of willow, with willows cut, debris burned onsite but with stumps left in situ and poisoned, ensuring that root balls provide bank stability whilst native plants grow to provide short term water quality protection.

PARTNERS State and Federal Governments.

HIGHLIGHTS

30000 plants across 6.1 hectares

26

8.4

hectares willow control

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

1.7 km of fencing

Improved conditions for EPBC-listed species: Giant Freshwater Lobster and Central North Burrowing Crayfish, Azure Kingfisher, Eastern Quolls, Eastern Barred Bandicoot and Tasmanian Devil


NATURAL RESOURCE MANAGEMENT

OVERVIEW Rehabilitation of sites significantly damaged during the floods of June 2016.

OUTCOME River bank stability, reduced threats to water quality and improved conditions, range and connectivity of habitat for threatened and EPBClisted species are all due to improvements made to riparian areas in the lower Mersey catchment.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

27


NATURAL RESOURCE MANAGEMENT

Gorse Control

Native grasslands are returning after significant levels of gorse infestation has been treated and removed at preminghana.

this program, with training selected and designed to complement the aspirations of the program and individual participants.

The outcome is a result of capacity building in fire and weed management. Additional on-ground support complemented the Tasmanian Aboriginal Centre’s efforts to deliver gorse eradication over 8 ha at preminghana IPA. 85-90% of the initial gorse infestation has now been treated and removed.

Significant improvements in the contribution and participation of the community in NRM activities in our region were a direct result of the Building Indigenous People’s Capacity for NRM program.

In addition to the on-ground impacts, the program allowed for improved relationships and communications with the Tasmanian Aboriginal community. The Aboriginal community now has better-equipped land management workers through participation in

Most significantly it has been the change in approach and attitude, which seeks to build capacity and empower the community to identify and determine their NRM priorities that has been the greatest outcome of this work.

PARTNERS Tasmanian Aboriginal Centre.

HIGHLIGHTS

The Aboriginal community now has better-equipped land management workers

28

The program assisted in capacity building and empowered the community

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Significant gorse reduction at preminghana with native grasslands returning

Improved relationships with the Tasmanian Aboriginal community


NATURAL RESOURCE MANAGEMENT

OVERVIEW Engaging the Tasmanian Aboriginal community through the Building Indigenous People’s Capacity for NRM program focused on building skills, and improved relationships and communication with the Aboriginal community while engaging in the removal of gorse infestation at preminghana Indigenous Protected Area.

OUTCOME An infestation of gorse at preminghana has been reduced by up to 90 per cent, and native grasslands are returning. The Aboriginal community now has better-equipped land management workers through participation in this program.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

29


NATURAL RESOURCE MANAGEMENT

Macquarie Harbour Shoreline Clean-Up Significant amounts of debris have been removed from Macquarie Harbour improving the marine environment, reducing threats of ingestion and entanglement of resident shorebirds, migratory birds and marine species. Additionally, the Harbour is now a cleaner, visual amenity for tourists and West Coast residents alike. Over two years, the project has removed more than 11 tonnes of rubbish from Macquarie Harbour and surrounds. This is equivalent to ~120 cubic metres, and more than 60,000 individual pieces. Approximately 80% of the debris is made of plastic. In April 2018, over 5 days, 168 volunteers from 13 organisations, removed 5 tonnes of debris from 97 hectares and 36 locations – a total distance of approximately 112 kilometres, using 10 boats and various vehicles.

All rope collected was separated, and every bottle and can (if in suitable condition) was counted and sent for recycling.

PARTNERS Tasmania Parks and Wildlife, Wildcare, Conservation Volunteers Australia, Tassal, Petuna and Huon Aquaculture, Active Strahan, Strahan Primary School, King River Rafting, DPIPWE Marine Farming Branch, Strahan Beach Tourist Park, RACT Strahan Village, Tasmanian Seafood Industry Council, Gordon River Cruises, World Heritage Cruises and West Coast Wilderness Railway, West Coast Council, West Coast Yacht Charters, Australian Government’s National Landcare Programme.

Because of the clean-ups, all three commercial fish farms who use the Harbour have implemented their own regular clean-ups.

HIGHLIGHTS

5

tonnes of debris removed

30

13

organisations involved

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

36 locations across 112 km

23-page Macquarie Harbour Clean-up Outcomes and Discussion Report


NATURAL RESOURCE MANAGEMENT

OVERVIEW The second Macquarie Harbour Clean-up held over five days in April 2018, saw more than 5 tonnes of debris removed from some of Tasmania’s most significant coasts and waterways across 112 km.

OUTCOME Significant amounts of debris have been removed from Macquarie Harbour improving the marine environment, reducing threats to resident shorebirds, migratory birds and marine species. The Harbour is now a cleaner, visual amenity for tourists and West Coast residents alike. Because of the Clean-up fish farms agreed to their own rubbish monitoring and regular clean-ups.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

31


32

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


Regional Economic Development

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

33


REGIONAL ECONOMIC DEVELOPMENT

The Cradle Coast Regional Futures Plan Since early 2018, Cradle Coast Authority has been leading an ambitious planning process which seeks to create more jobs and better jobs in our region. The Regional Futures Plan will provide key stakeholders in the private and public sector, with a blueprint and methodology for doing even better, together. The project has been jointly and equally funded by the CCA and the Australian Government’s Building Better Regions Fund. Through extensive analysis and consultation, five priority areas have been identified. The first of those areas – skills and workforce related issues – is seen as being critically interrelated to and underpinning the others: • Improving educational attainment so the local workforce has the skills to fill local jobs. • Enhancing innovation and entrepreneurship for a more vibrant business ecosystem.

• Building on industries with a competitive advantage for economic growth. • Leverage regional strengths to develop tourism industry. • Capture employment opportunities from emerging service sector. The Plan is due to be completed in November 2018 and will be a plan for the region, as opposed to a plan for the CCA or any other single entity. As such, CCA will develop innovative, collaborative governance arrangements which will allow trusted stakeholders to implement and oversee the Plan on behalf of the region from January 2019.

PARTNERS Australian Government’s Building Better Region’s Fund, Regional Australia Institute.

HIGHLIGHTS

80

Around industry, community, education, government and civic leaders engaged

34

Draft Regional Pathfinder Growth Strategy Report

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Redevelopment of CCA’s website, designed to showcase the region strengths and investment opportunities

Creation of supporting documents: Demographic analysis of the region and Regional Investment Prospectus


REGIONAL ECONOMIC DEVELOPMENT

OVERVIEW The Cradle Coast Regional Futures Plan will provide the regional leadership to unlock opportunities for local and regional economic growth. The Plan will be a ‘roadmap for the region’ with stakeholders, such as the region’s nine local councils, government, business, education and community leaders, providing input. The next stage of the Regional Futures Plan is now underway and involves developing the associated actions and a collective governance system to serve as both the forum for the Plan’s development and the means for its implementation.

OUTCOME The completed Regional Futures Plan will build on commitment and shared responsibility between local and regional leaders for implementing identified action. It will provide a suite of practical, achievable actions and interventions that will put the region onto the right path to achieving economic and jobs growth and improved living standards.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

35


REGIONAL ECONOMIC DEVELOPMENT

The Cradle Coast Coastal Pathway

CCA continues to be an advocate and driver for the development of the Cradle Coast Coastal Pathway. Individual councils are progressing local sections of the Pathway, including around the Burnie Port area, Burnie to Wynyard and Forth Rail Bridge/ Turner’s Beach. To date, 50 km or 60% of the Pathway has been constructed or had funding committed. CCA has been working with consultants Pitt and Sherry and Councils to finalise detailed plans for the remaining stages. The Australian Government has committed $4.8M to the next stage of the project. A preliminary economic assessment suggests the completed Coastal Pathway would generate $8.5M in direct tourism impact with a total flow on benefit of $17.5M pa. The Coastal Pathway has been a long-term regional project progressed by the region’s local governments through the CCA. It is a driver for new tourism opportunities and private investment, and for the community, the pathway fosters increased health and wellbeing opportunities.

The CCA has been in a unique position to progress this project because of its ability to act with and on behalf of its nine-member councils, as well as use its economic, environmental, and tourism skills to promote and design a fully integrated project across a large part of the region. By working together, the CCA has secured more than $15M for a project that will connect more than 85,000 residents between Wynyard and Latrobe, as well as present new opportunities for the visitor economy across the region.

PARTNERS Australian Government, State Government, Cradle Coast Councils, Pathway Project Control Group, Coastal Pathway Coalition Group, Safer Roads for Cyclists, Bicycle Network Tasmania.

HIGHLIGHTS

Technical aspects of four remaining sections have been completed

36

State Government commitment of

$4.8M

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Federal Government commitment of

$4.8M

Federal Labor commitment of

$8.8M


REGIONAL ECONOMIC DEVELOPMENT

OVERVIEW Once fully completed, the Cradle Coast Coastal Pathway will connect more than 85,000 residents between Wynyard and Latrobe. The pathway increases connectivity between communities and fosters increased health and wellbeing. It will remove barriers for increased cycling as an alternative to vehicles for travel to work journeys.

OUTCOME The Development Plans for four sections of the Pathway have been completed and accepted by the Councils. Three councils will work together with CCA to develop four of the five remaining section. Routes selected will achieve maximum connectedness of communities along the pathway and attract more cycling tourists to stay in region longer. Once CCA provides evidence to Australian government on its ability to complete the construction of Penguin to Latrobe, development of remaining sections of the Pathway can commence.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

37


REGIONAL ECONOMIC DEVELOPMENT

Investing in Entrepreneurship, Innovation and Our Future Leaders CCA is a sponsor and supporter of the quarterly Bright Idea Speed Pitch Nights, held in conjunction with Switch Tasmania and the Van Diemen Project. The nights provide opportunities for people to test innovative business ideas and prepare for pitching their ideas to investors, banks and potential customers. The event is also an important networking opportunity for innovators and entrepreneurs. In 2017-2018 there were five events from Burnie to Latrobe and included 31 pitchers and 107 attendees. Negotiations are under way with the Tasmanian Leaders Program (TLP) to partner to deliver regular leadership development opportunities for the Cradle Coast. In 2017, Ifor Ffowcs-Williams the CEO of Cluster Navigators brought his expertise and practical examples of how food clusters work successfully internationally.

During 2017-2018 CCA also entered into a partnership with the Australian Computer Society (ACS) to co-host four ICT professionals networking events over the 2018/19 FY. CCA is an active supporter of the Coasters, a network of the region’s young professionals. In partnership with the Institute of Project Management (IPM) and with financial support from the Tasmanian Government (Skills Tasmania), CCA has hosted series of project management and leading change training workshops. In 17/18 FY, there were two workshops with a combined 50 participants from across local government and the business community.

PARTNERS Tasmanian Leaders Program, Switch Tasmania, Van Diemen Project, Australian Computer Society, Institute of Project Management, Tasmanian Government, FermenTasmania, Cluster Navigators.

Ifor is acknowledged as one of the most influential cluster practitioners in the world. Workshops with Ifor were designed to build the capacity of the Cradle Coast and have a lasting impact.

HIGHLIGHTS

5

Bright Idea Speed Pitch nights across the Coast with

107

attendees

38

31

entrepreneurs pitched their ideas

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

50

participants attended two management workshops

Three new partnerships


REGIONAL ECONOMIC DEVELOPMENT

OVERVIEW The Cradle Coast Authority is building on existing relationships and forging new partnerships to deliver innovative learning and development opportunities to the region’s existing and emerging business leaders and entrepreneurs.

OUTCOME The Cradle Coast’s current and future leaders, entrepreneurs and innovators are being nurtured through a series of learning and development opportunities being delivered on behalf of the Cradle Coast Authority.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

39


40

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


Tourism

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

41


TOURISM

Regional Governance – Cradle Mountain Master Plan and Western Wilds, Cruise Ships From its creation in 2016, through to its delivery to the Office of the Coordinator General in 2018, the Cradle Mountain Master Plan is closer to realisation due to the CCA successfully lobbying on behalf of the Cradle Coast region for Government investment. The long-term project will revitalise the visitor experience at the World Heritage-Listed and internationally renowned destination. The Plan is recognised as a significant investment for our future, both in the north-west region and the state of Tasmania. To deliver much needed upgrades to the infrastructure that supports tourism icon, the CCA secured a $30M commitment from the Federal Government as well as $57M from the Liberal State Government. The Masterplan is now in the hands of the OCG and CCA will continue to speak on behalf of the region as a member of the Cradle Mountain Master Plan Steering Committee. The development of a drive journey, to encourage visitor dispersal to western Tasmania has resulted in Western Wilds – a journey that focuses on the unique stories and beauty of the West. the execution and implementation of the project, from community

engagement through to the creation of branding assets, has been a collaborative process shared between the Cradle Coast Authority, as the region’s Regional Tourism Organisation (RTO), Destination Southern Tasmania, Tourism Tasmania and the Tourism Industry Council of Tasmania (TICT). The CCA Board worked with the Cradle Coast Tourism Executive, TasPorts, Tourism Tasmania and the Australian Cruise Association to develop a funding model for regional support of cruise shipping. The report proposed a shared funding model to support the Burnie City Council’s work welcoming cruise ship passengers and their dispersal around the region. Based on the latest economic modelling by the AEC Group for Australian Cruise Association cruise ship visitation made a direct contribution of approximately $7M to the north west economy in the 2017/18 season.

PARTNERS Australian Government, State Government, Cradle Coast Councils, Tourism Industry Council of Tasmania, Destination Southern Tasmania.

HIGHLIGHTS

$87M

commitment from the Federal and State Governments for Cradle Mountain Masterplan

42

New drive journey for Tasmania’s West

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Collaboration between Regional Tourism Organisations and tourism industry

30

cruise ships into Burnie during the 2017-18 season


TOURISM

OVERVIEW CCA continues to be an advocate and driver for the development of regionally significant projects which enhance the Cradle Coast’s profile as a visitor destination.

OUTCOME Millions of dollars have been injected into the Cradle Coast economy which will go towards upgrading ageing infrastructure at Cradle Mountain; to create new tourism experiences on Tasmania’s West, and by growing tourism spend coming into the region via the burgeoning cruise ship market.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

43


TOURISM

Driving Demand – Marketing A strategic marketing plan saw the creation of targeted tourism campaigns from September 2017. The campaigns supported the RTO’s identification of “ideal personas” (highly engaged tourists who go on to act as unofficial brand ambassadors) and communicated the right stories and brand messages to the right visitors, on the right platforms, at the right time. To move into a more strategic marketing position and ensure the successful implementation of the RTO’s three-year marketing plan, initiatives have been implemented including: consumer research to confirm the region’s hero experiences; a review of the strategic direction of the region’s digital assets. The region also supported the marketing activities of Tourism Tasmania and leveraged existing relationships with transport partners who bring visitors to the region via air and sea. Six key visitor economy pillars were identified (Arts & Culture; Hiking and Walks; Food & Beverage; Nature & Wildlife; History & Heritage, and Extreme Adventure). It is well established that visitors respond most strongly to messages with an experiential, storytelling focus, particularly around Tasmania’s competitive advantages of accessible wilderness experiences, rich heritage and paddock to plate experiences. Additionally, the CCA clarified its role in marketing activities with a focus on quality over quantity.

CAMPAIGNS • Tassie Spring Break (September- December 2017) • Western Wilderness and micro-adventures (December 2017– February 2018) • Pet-Friendly Cradle Coast (March – May 2018) • Roam Local (staycation) (June – August 2018) • The continuation of the CCA’s “always on” social media strategy saw Instagram following grow from 13,800 to 22,000 and Facebook from 27,100 to 32,300, and Instagram reach grow (1.7 million individuals reached by our content, up from 500,000 the previous year). • Instameets were held on the West Coast, Wynyard, the Tarkine and Sheffield to promote advocacy and product awareness with our local and visiting photographers.

PARTNERS Local Tourism Associations (LTAs), Spirit of Tasmania, We Are Explores, Tourism Tasmania, Cradle Coast councils and tourism industry stakeholders.

HIGHLIGHTS

Three-year marketing strategy developed

44

2.8M 3.4M Facebook views

Instagram views and

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Social engagement increased by

4%

Tourism Australia sharing Cradle Coast content


TOURISM

OVERVIEW Strategic marketing campaigns designed to increase the desirability of the Cradle Coast Region as a travel destination prior to travel, inspiring more people to visit, stay longer and spend more.

OUTCOME The right stories are being conveyed to the right visitors, on the right platforms, at the right time due to a strategic tourism marketing plan. It relies on the Cradle Coast Authority’s already well-established social media platforms, where increasingly engaged users are targeted with enriched content during the dreaming and planning stage of travel.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

45


TOURISM

Building Capability, Capacity and Community – Industry Development The CCA supports the development of a collaborative industry, empowered by leadership from across Government, business and industry. Individuals and communities are encouraged to take a more ambassadorial role in welcoming and showcasing their communities and places to visitors. Industry development across all stakeholders will allow the Region to pool resources, agree on shared priorities and leverage the opportunities for driving growth. Destination Action Plans were rolled out across the region’s nine councils in 2017 and were completed in 2018 with Kentish and Latrobe. The project was done in partnership with the Department of State Growth. A core strategy was to recognise that visitors to the Cradle Coast Region are primarily attracted to destinations and experiences. Therefore, the development, marketing and management of the region’s destinations are pivotal to the success of the whole region.

In December 2017, the CCA applied for the Building Better Regions Fund to implement a destination marketing mentoring program. This program responds to the actions identified in local Destination Action Plans. If successful, this program will be implemented in 18/19. Quarterly industry networking events were introduced as an opportunity for the RTO to share knowledge with operators, and act as a platform for special guests, industry forums and further collaboration.

PARTNERS Local Tourism Associations (LTAs), Tourism Tasmania, Department of State Growth, Australian Government, Cradle Coast tourism industry stakeholders.

HIGHLIGHTS

Quarterly industry networking event

46

50

More than operators attended Regional Tourism Networking Evenings

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Kentish and Latrobe Destination Action Plans facilitated and completed

Weekly Industry e-news for sharing learning and development opportunities


TOURISM

OVERVIEW The CCA supports the development of collaboration, empowered by leadership from across Government and business to strengthen the industry from the inside out and eectively collaborate with the Region’s stakeholders to grow tourism in the Region.

OUTCOME Sharing knowledge and skills and providing opportunities for learning and development contributes to a stronger visitor economy ($421M in expenditure) nurtures 1,200 businesses and supports 7,449 local jobs.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

47


TOURISM

Activating Events

Events, festivals, sporting events and business events help grow awareness of the Cradle Coast region as a diverse and attractive place to visit, and as a result, can directly drive visitation. The Australian Masters Games (AMG) is one of Australia’s premier and largest multi-sport mass participation events. The 16th AMG saw more than 5,646 registered participants across 27 venues in Tasmania’s North-West in October 2017. The estimated total economic impact to Tasmania resulting from the 16th AMG being staged was $8.34M.

The project will also increase opportunities for the broader Tasmanian regional community to participate in arts and cultural events and festivals in the Cradle Coast region.

KEY PROJECTS INCLUDED • XVI Australian Masters Games • Regional Festivals, Events & Arts Strategy

Development of the Regional Festivals, Events & Arts Strategy and implementation plan (implementation to happen in 2018-2019) leverages Tasmania’s already active events and festivals calendar. The project will support the CCA to build a strategic approach towards developing a calendar of high-quality, innovative, diverse events and festivals for the Cradle Coast region. This strategic framework aims to improve the sustainability of regional events by identifying and supporting professional development opportunities for event managers and coordinators.

PARTNERS Australian Government, Cradle Coast Councils, State Government, Tasmanian tourism industry stakeholders, Confederation of Australian Sport, UniSport Australia, Events Tasmania, City of Launceston, The Advocate, UTAS, Burnie Chamber of Commerce & Industry, Central Coast Chamber of Commerce & Industry, Devonport Chamber of Commerce & Industry, LTAs.

HIGHLIGHTS

7,600 registered 16th AMG total participants

48

16th AMG had an

$8.34M economic contribution

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Development of the Regional Festivals, Events & Arts Strategy

40

attendees at Strategy workshops


TOURISM

OVERVIEW Events, festivals, sporting events and business events help grow awareness of the Cradle Coast region, injecting significant money into the economy and presenting as a diverse and attractive place to visit.

OUTCOME A collaborative approach to the 16th AMG saw more than 7,000 participants descend on the region to take part in 50 sports at venues across the region. The week-long event’s ultimate economic impact was valued at $8.34M. The Development of the Regional Festivals, Events & Arts Strategy will build on increased tourism numbers to the Cradle Coast, by showcasing events as a driver to visitation. It will assist in identifying and promoting events and festivals, especially in o-peak seasons.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

49


FINANCIAL REPORTS & STATEMENTS

50

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Contents

52-55

Financial Report Analysis 52

Consolidated Income and Expenditure

53

Contributions to Current Projects and Operations

54

Core Operating Performance

55

Review of Performance

56-58

Audit Report

59-62

Financial Statements 59

Statement of Comprehensive Income

60

Statement of Financial Position

61

Statement of Changes in Equity

62

Statement of Cashflows

63-83

Notes to the Financial Statements

84

Statement by Directors

85-86

Directors’ Report

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

51


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority

Financial Report Analysis CONSOLIDATED INCOME AND EXPENDITURE The 2017-18 Independent Audit Report and Financial Statements for the Cradle Coast Authority (‘CCA’) are presented in the following pages. The statements represent the overall financial position of CCA inclusive of Core Operations, Natural Resource Management (NRM), Tourism and Regional Economic Development functions (‘business units’). CCA’s consolidated income, expenses and result for the year is summarised below; 2017-18 INCOME Council Contributions Government Grants

2016-17

$

%

$

%

852,344

21

839,752

17

2,261,312

55

3,015,555

62

Project Contributions

848,236

20

802,347

16

Other Income

135,320

3

147,736

3

46,333

1

48,967

1

Interest (re-invested) Total Income

4,143,545

100

4,854,357

100

Expenses from Ordinary Activities

2,726,469

60

3,257,757

65

Employee Expenses

1,741,509

38

1,685,614

34

80,770

2

86,874

2

EXPENSES

Depreciation & Amortisation Total Expenses

4,548,748

COMPREHENSIVE RESULT

(405,203)

100

5,030,245

100

(175,888)

This year’s deficit of ($405,203) represents a decrease in project reserves at 30 June 2018, this is comprised predominantly of grant funding drawn down. The operating result before depreciation and amortisation was a deficit of ($324,433) (2017: $89,014). After accounting for outstanding creditors and leave provisions, CCA held net assets of $1,709,089 on 30 June 2018 (30 June 2017: $2,114,292). $1,239,739 of net assets held represent the accumulation of unexpended grant funds that are restricted in accordance with grant funding conditions. See note 15 of the Audited Financial Statements for details of areas these funds are committed.

52

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority

Financial Report Analysis CONTRIBUTIONS TO CURRENT PROJECTS AND OPERATIONS 1% 21%

20%

Participating Councils Local Government Industry Federal Government State Government

21%

Interest

36% 1%

2017-18 CONTRIBUTIONS TO PROJECTS State Government Federal Government Industry Local Government Interest (re-invested)

2016-17

$

%

$

%

815,575

20

1,505,535

31

1,474,320

36

1,515,020

31

68,735

2

84,689

2

858,646

20

797,347

17

46,333

1

48,967

1

CORE CONTRIBUTIONS Participating Councils TOTAL

852,344

21

839,752

18

4,115,953

100

4,791,310

100

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

53


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority

Financial Report Analysis CORE OPERATING PERFORMANCE Core Operations is the business unit for operating overhead expenses for CCA. During 2017-18, projects and business units contributed $686,301 towards operating costs and internal corporate support services, included in project contribution income below. In 2017-18, Core Operations received income of $2,135,418 comprising of;

2017-18 INCOME

2016-17

$

%

$

%

Council Contributions

852,344

40

839,752

33

Project Contributions

1,209,773

57

1,677,892

66

Other Income

73,301

3

36,792

1

Total Income

2,135,418

100

2,554,436

100

Total income received contributed to Core Operating expenses of $2,002,743 which comprised of;

2017-18 EXPENSE Expenses from Ordinary Activities Employee Expenses Total Expense

$

2016-17 %

$

%

1,427,127

71

2,024,674

79

575,616

29

546,802

21

2,002,743

100

2,571,476

100

The Core Operating result for the year ended 30 June 2018 was a surplus of $132,675 before depreciation and amortisation (2017 deficit: $17,040). Core Operating Income and Expenditure for 2017-18 included non-reoccurring funding received and license fees payable in relation to the 2017 Australian Masters’ Games. Refer to Note 19 for Material Budget Variances.

54

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority

Financial Report Analysis REVIEW OF PERFORMANCE Council contributions

In 2017, CCA delivered the third and final five per cent decrease in member council contributions. In 2018, an increase in line with council indexation was applied to sustain activities and annual increases in fixed costs.

Cost control

The major focus of 2017 was to continue to build on corporate development outcomes already achieved to realise greater efficiencies. There has been a significant effort reviewing how business is conducted at both an organisational and business unit level with the objective of reducing costs, increasing productivity and value to the community and stakeholders. As part of an integrated model, CCA is increasingly sharing expertise across business functions. With a more structured whole-of-organisational approach introduced with respect to planning, management and support functions, operating costs continued to be monitored to create sustainable value and deliver a stronger focus on project and resource management.

Operating expenses (OPEX)

Between 2015 and 2018, OPEX decreased considerably by 22 per cent. OPEX has now stabilised and it is unlikely further significant savings are achievable in the future. Fixed costs account for 33 per cent of total overhead OPEX. All controllable overhead expenses have been reviewed, evaluated and analysed for best value and excess.

Employee expenses

With several changes in staff during 2017, employee expenses were three per cent higher from 2016-17 as resourcing levels stabilised to fulfil funding agreement milestones as key programs were finalised. An annual CPI increase in employee benefits was also applied in response to external market assessments.

Claire Smith Chief Financial Officer

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

55


FINANCIAL REPORTS & STATEMENTS

Independent Auditor’s Report To the Members of Parliament Cradle Coast Authority Report on the Audit of the Financial Report

Opinion I have audited the financial report of the Cradle Coast Authority (the Authority), which comprises the statement of financial position as at 30 June 2018 and 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) presents fairly, in all material respects, the financial position of the Authority as at 30 June 2018 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 (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 AuditorGeneral has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’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. …1 of 3

56

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Other Information The directors are responsible for the other information. The other information comprises the information included in the Authority’s Financial Report Analysis and Directors’ Report for the year ended 30 June 2018, but does not include the financial report and my auditor’s report thereon. My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon. In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of Management and 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 they determine is 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 this financial report.

…2 of 3

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

57


FINANCIAL REPORTS & STATEMENTS

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 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 represents 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.

James Hay Senior Manager Financial Audit Delegate of the Auditor-General Tasmanian Audit Office 25 September 2018 Hobart …3 of 3

58

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Statement of Comprehensive Income

2018 Actual INCOME

2018 Budget 2017 Actual

Note

$

$

$

Government grants

2

2,261,312

2,168,487

3,015,555

Council contributions

3

852,344

852,342

839,752

46,333

42,000

48,967

983,556

671,888

950,083

4,143,545

3,734,717

4,854,357

Interest received Other Income

4

Total Income EXPENSES Employee benefits

5

1,741,509

1,827,765

1,685,614

Project management expenses

6

2,135,171

1,624,049

2,666,078

Depreciation and Amortisation

7

80,770

75,702

86,874

Other operating expenses

8

573,002

617,653

564,604

Net loss on disposal of fixed assets

-

16,348

6,262

18,296

25,720

20,813

Total Expenses

4,548,748

4,187,237

5,030,245

Net Surplus/(Deficit) and Comprehensive Result

(405,203)

(452,520)

(175,888)

Interest on borrowings

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

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

59


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Statement of Financial Position

2018

2017

Note

$

$

Cash

9

1,991,783

2,982,551

Receivables

10

81,056

82,333

3,272

3,273

2,076,111

3,068,157

ASSETS Current assets

Prepayments Total current assets Non-current assets Plant & equipment

11

158,858

179,128

Leasehold improvements

11

253,267

305,671

412,125

484,799

2,488,236

3,552,956

Total non-current assets TOTAL ASSETS LIABILITIES Current liabilities Payables

12

233,743

787,661

Provisions

13

210,891

279,555

Borrowings

14

Total current liabilities

55,953

53,033

500,587

1,120,249

Non-current liabilities Provisions

13

24,346

8,380

Borrowings

14

254,214

310,035

Total non-current liabilities

278,560

318,415

TOTAL LIABILITIES

779,147

1,438,664

1,709,089

2,114,292

1,239,739

1,832,961

469,350

281,331

1,709,089

2,114,292

NET ASSETS EQUITY Reserves

15

Accumulated surplus TOTAL EQUITY

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

60

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Statement of Changes in Equity

2018 Balance at 1 July 2017

Unexpended Grant Reserves

Retained Surpluses

Total

$

$

$

1,832,961

281,331

2,114,292

-

(405,203)

(405,203)

Transfer to/from reserves

(593,222)

593,222

-

Balance at 30 June 2018

1,239,739

469,350

1,709,089

2,014,585

275,595

2,290,180

-

(175,888)

(175,888)

Transfer to/from reserves

(181,624)

181,624

-

Balance at 30 June 2017

1,832,961

281,331

2,114,292

Net surplus/(deficit)

2017 Balance at 1 July 2016 Net surplus/(deficit)

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

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

61


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Statement of Cashflows

2018

2017

$

$

4,378,365

5,223,252

Payments to contractors & suppliers

(3,549,631)

(2,986,937)

Payments to employees

(1,794,207)

(1,683,764)

(18,296)

(20,813)

Note Cash flows from operating activities Grant funding & other receipts

Interest on borrowings GST refunded/(remitted) Interest received Net cash provided by/used in operating activities

16

7,423

(78,593)

46,333

48,967

(930,013)

502,112

Cash flows from investing activities 241

375

Acquisition of plant & equipment

Proceeds from sale of plant & equipment

(8,096)

(843)

Net cash used in investing activities

(7,855)

(468)

Repayment of borrowings

(52,900)

(50,383)

Net cash provided by financing activities

(52,900)

(50,383)

(990,768)

451,261

Cash flows from financing activities

Net increase/(decrease) in cash held Cash at beginning of financial year Cash at end of financial year

9

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

62

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

2,982,551

2,531,290

1,991,783

2,982,551


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) General Information The Cradle Coast Authority (CCA) is a Joint Authority established under Section 38 of the Local Government Act 1993 (as amended) with participating Councils being Burnie City, Central Coast, Circular Head, Devonport City, Kentish, King Island, Latrobe, Waratah Wynyard, and West Coast. The purpose of CCA is to: •

Deliver regional economic development, tourism and NRM.

Advocate by providing a strong, regional voice on important issues.

Enable cooperation by being a conduit for regional engagement and council collaboration.

Ensure coordination by supporting and directing strategic regional functions, projects and plans.

b) Basis of preparation These financial statements are a general purpose financial report that consists of a Statement of Comprehensive Income, Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and notes accompanying these 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 that it does not have profit generation as a prime objective. Consequently, where appropriate, CCA has elected to apply options and exemptions within accounting standards that are applicable to not-for-profit entities. This financial report has been prepared 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. c) 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 experience and various other factors that are 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. Key Judgements Assumptions are utilised in the determination of the CCA’s employee entitlement provisions. These assumptions are discussed in Note 1. n.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

63


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c) Accounting estimates and judgements (continued)

unused grant or contribution from prior years that was expected of operations during the current year.

Assumptions and judgements are utilised in determining the fair value of the Authority’s property, plant and equipment including useful lives and depreciation rates. These assumptions are discussed in Note 1. g.

All revenue is stated net of the amount of goods and services tax (GST).

d) Budget information The estimated revenue and expense amounts in the Statement of Comprehensive Income Statement represent original budget figures. These budget figures have not been audited. e) Revenue Contributions from Councils are recognised when CCA obtains control over the assets comprising the receipt. Revenue is recognised when CCA obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to CCA and the amount of the contribution can be measured reliably. Interest revenue is recognised on an accrual basis as earned using the effective interest rate. 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. The note also discloses the amount of the

64

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

f)

Borrowings

The borrowing capacity of CCA is limited by the rules of the 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. g) 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 ten-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: 7.5 – 60% 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 benefit to the CCA.


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) h) Impairment

m) Taxation

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

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

i)

Leases

Lease payments for operating leases, where substantially all the risk and benefits remain with the lessor, are charged as expenses in the period in which they are incurred. j)

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. k) Receivables 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. l)

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 remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition.

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 Oice. 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 balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. n) 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 of a liability has arisen that can be 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.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

65


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) n) Employee benefits (continued) 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 period in which the employee renders the related service is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of 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 Super Guarantee (Administration) Act 1992.

66

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. p) Pending Accounting Standards Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2018 reporting periods. The Authority’s assessment of the impact of relevant new standards and interpretations is set out below. Standards are applicable to reporting periods beginning on or after the effective date stated. AASB 9 Financial Instruments AASB 9 will replace AASB 139: Financial Instruments: Recognition and Measurement. Effective from 1 January 2018. The main impact of the standard is to change the requirement for the classification, measurement and disclosures associated with financial assets. Under the new requirements the four categories of financial assets in AASB 139 will be replaced with two measurement categories: fair value and amortised costs. • Amortised cost is to be used for assets with contractual terms giving rise to principal and interest payments.

o) Allocation between current and non-current

• Fair value is to be used for all other financial assets.

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,

There will be no impact on CCA accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and CCA does not have such liabilities.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) p) Pending Accounting Standards (continued) The de-recognition rules have been transferred from AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. AASB 15 Revenue from Contracts with Customers AASB 15 introduces a five-step process for revenue recognition, with the core principle of the new standard being for entities to recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the entity expects to be entitled in exchange for those goods or services. Effective from 1 January 2019. Accounting policy changes will arise in the timing of revenue recognition, treatment of contract costs and contracts which contain a financing element. CCA has analysed the new revenue recognition requirements noting that future impacts include: • Depending on the respective contractual terms, the new requirements of AASB 15 may result in a change to the timing of revenue from sales of goods and services such that some revenue may need to be deferred as a liability to a later reporting period to the extent that CCA received cash but has not met its associated performance obligations (a promise to transfer a good or service). • Grants received upfront may be eligible to be recognised as revenue progressively as the associated performance obligations are satisfied, but only if the associated performance obligations are enforceable and sufficiently specific.

Grants that are not enforceable and/or not sufficiently specific, will not qualify for deferral, and will continue to be recognised as revenue as soon as they are controlled. CCA received several grants for which there are no sufficiently specific performance obligations. These grants will continue being recognised as revenue upfront assuming no change to the current grant arrangements. CCA will apply the standard from 1 July 2019 using retrospective approach with cumulative catch-up and adjustment to Accumulated surpluses for the difference in accounting treatment on initial adoption. AASB 1058 Income for Not-for-Profit Entities AASB 1058 supersedes all the income recognition requirements relating to not-for-profit entities, previously in AASB 1004 Contributions. Effective from 1 January 2019. The timing of income recognition under AASB 1058 depends on whether a transaction gives rise to a liability or other performance obligation, or a contribution by owners, related to an asset (such as cash or another asset) received. AASB 1058 requires the recognition of Volunteer services where they would have been purchased if not donated and the fair value of those services can be reliably measured. CCA has assessed these requirements and determined that there will be no material impact on CCA accounting for income under AASB 1058.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

67


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) p) Pending Accounting Standards (continued) AASB 16 Leases AASB 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Effective from 1 January 2019. The adoption of this standard will require CCA to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligations to make lease payments for operating lease commitments. However, CCA will not need to bring operating leases onto the statement of financial position for short-term leases and low-value assets, these will remain off the balance sheet.

A corresponding right to use asset will be recognised where applicable, which will be amortised over the term of the lease. Rent expense will no longer be shown. The impact of leases on the Statement of Comprehensive Income will be through amortisation and interest charges. In the Statement of Cash Flows lease payments will be shown as cash flows from financing activities instead of operating activities. CCA will apply the standard from 1 July 2019 using a retrospective approach with cumulative catch-up with an adjusted to Accumulated surpluses for the difference in accounting treatment on initial adoption. The CCA’s existing lease commitments are disclosed in Note 17.

The calculation of lease liability will consider appropriate discount rates, assumptions about the lease term, and increase in lease payments.

All other Australian Accounting Standards and interpretations with future effective dates, are either not applicable to the CCA’s activities, or have no material impact.

68

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements

2. GOVERNMENT GRANTS

2018

2017

$

$

Dept. Communications & Arts (Cwth)

-

40,000

Housing Choices Tasmania (State)

-

3,500

366,667

271,666

-

89,494

Dept. Primary Industry, Parks, Water & Environment (State) Dept. Premier & Cabinet (State) Dept. State Growth (State)

16,000

39,000

Dept. Environment (Cwth)

1,474,320

1,475,020

50,000

700,000

Tourism Tasmania (State)

243,325

396,875

Dept. Justice (State)

105,000

-

Events Tasmania (State)

Dept. Police & Emergency Management (State) TOTAL GOVERNMENT GRANTS

6,000

-

2,261,312

3,015,555

The Cradle Coast Authority is the Regional Tourism Organisation for the Cradle Coast Region and receives funding from Tourism Tasmania for regional tourism activities. In 2016-17 Tourism Tasmania made early payment of one quarter of installments for the following year. In accordance with AASB1004 Contributions, CCA recognises these grants as revenue when it receives and obtains control of the funds. The early receipt of installments resulted in Grants received from Tourism Tasmania being below the 2017-18 budget by $74,175 due to the timing of receipt.

3. COUNCIL CONTRIBUTIONS Burnie City Council

153,252

150,988

Central Coast Council

165,354

162,912

Circular Head Council

63,672

62,728

Devonport City Council

193,568

190,708

Kentish Council

46,368

45,684

King Island Council

13,212

13,016

Latrobe Council Waratah Wynyard Council West Coast Council TOTAL COUNCIL CONTRIBUTIONS

69,123

68,104

107,563

105,976

40,232

39,636

852,344

839,752

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

69


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements

4. OTHER INCOME Project Contributions

2018

2017

$

$

848,236

802,347

70,528

101,825

7,245

8,364

57,547

37,547

983,556

950,083

1,601,416

1,498,967

12,067

10,630

Annual and Long Service Leave

(52,697)

1,850

Superannuation

141,869

141,867

33,852

28,701

5,002

3,599

-

-

1,741,509

1,685,614

95,475

236,914

Fees and Charges Sponsorship Other Contributions TOTAL OTHER INCOME

5. EMPLOYEE BENEFITS Wages and salaries Workers compensation

Payroll Tax Fringe Benefits Tax Redundancy TOTAL EMPLOYEE BENEFITS

6. PROJECT MANAGEMENT EXPENSES Advertising and marketing

1,571,568

1,765,627

Project contributions (including devolved grants)

Consultants and contract payments

209,944

487,746

Project materials, workshops and events

198,184

155,791

60,000

20,000

2,135,171

2,666,078

Plant and Equipment

28,366

34,470

Leasehold Improvements

52,404

52,404

TOTAL DEPRECIATION & AMORTISATION

80,770

86,874

References and subscriptions PROJECT MANAGEMENT EXPENSES

7. DEPRECIATION & AMORTISATION

70

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements

8. OTHER OPERATING EXPENSES External auditors’ remuneration (Tasmanian Audit Office)

2018

2017

$

$

11,140

8,721

Audit fees – projects

1,750

1,850

Bank charges

2,131

2,479

30,442

33,726

Consultancy fees Corporate communications and branding

7,052

14,353

76,168

93,678

9,084

7,277

IT expenses

50,537

44,455

Leasing charges

51,749

45,521

Legal advice

59,137

1,691

Meeting and seminar expenses

68,564

82,765

Office costs

28,445

29,024

Printing and stationery

14,680

33,094

Directors’ remuneration Insurance

5,274

23,457

Rent

Recruitment and relocation expenses

64,148

61,980

Sundry expenses

22,969

14,603

Telephone

23,143

23,940

Travel and accommodation

46,589

41,990

573,002

564,604

400

141

Cash at Bank

1,991,383

2,982,410

TOTAL CASH AND CASH EQUIVALENTS

1,991,783

2,982,551

TOTAL OTHER OPERATING EXPENSES

9. CASH AND CASH EQUIVALENTS Cash on Hand

The CCA’s cash and cash equivalents are subject to several external restrictions that limit amounts available for discretionary or future use. Restricted funds amount to $1,239,739 of cash held. These funds are held as future project reserves in relation to conditions on grants. See Note 15 for details of areas these funds are committed.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

71


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements

10.

RECEIVABLES

Debtors

2018

2017

$

$

46,727

49,820

3,510

4,556

Net GST receivable

30,819

27,957

TOTAL RECEIVABLES

81,056

82,333

Plant and Equipment

615,993

610,559

Less Accumulated Depreciation

457,135

431,431

Plant and Equipment at written down value

158,858

179,128

Leasehold Improvements

524,021

524,021

Accrued Interest

11.

PROPERTY, PLANT AND EQUIPMENT

Less Accumulated Amortisation

270,754

218,350

Leasehold Improvements at written down value

253,267

305,671

Movements in Carrying Amounts Plant and Equipment Balance as at beginning of year

179,128

219,393

Additions

8,096

844

Disposals

-

(6,639)

Depreciation Expense

(28,366)

(34,470)

Balance as at end of year

158,858

179,128

305,671

358,075

-

-

Amortisation Expense

(52,404)

(52,404)

Balance as at end of year

253,267

305,671

Leasehold Improvements Balance as at beginning of year Additions

72

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements

12.

PAYABLES

Creditors Other Payables

2018 201,953

2017 752,318

31,790

35,343

233,743

787,661

135,143

147,646

Long Service Leave

46,686

96,229

On Costs – Superannuation

13,345

14,972

On Costs – Other

15,717

20,708

210,891

279,555

23,057

8,380

1,289

-

24,346

8,380

55,953

53,033

Borrowings – secured

254,214

310,035

TOTAL BORROWINGS

310,167

363,068

TOTAL PAYABLES

13.

PROVISIONS

Current Annual Leave

TOTAL CURRENT PROVISIONS Non-Current Long Service Leave On Costs – Superannuation TOTAL NON-CURRENT PROVISIONS

14.

BORROWINGS

Current Borrowings – secured Non-Current

Borrowings secured by a deed of charge over the Authority’s assets Not later than one year

55,953

53,033

185,696

241,517

Later than five years

68,518

68,518

TOTAL BORROWINGS

310,167

363,068

Later than one and not later than five years

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

73


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 15.

RESERVES

Grant funding received by CCA is generally provided for achieving specific agreed outcomes. CCA manages these outcomes through internal project management functions and the appointment of service providers through competitive tender processes. Service providers are contracted by CCA to deliver agreed services, and funds paid under those contracts are conditional upon successful completion of milestones and reporting targets. While funding received by CCA is recognised as revenue when control of funds is obtained, the unspent portion of funds is set-aside as reserves for future and ongoing projects commitments. CCA anticipates that the conditions attached to all amounts of funding received but not yet spent will be satisfied in accordance with funding requirements.

2018

Opening balance

Funding received

Expended

Closing balance

$

$

$

$

National Landcare Programme

559,652

1,488,652

(2,000,300)

48,004

Regional NRM – Standalone & State

431,813

409,875

(261,320)

580,368

Regional Tourism

220,744

493,381

(661,747)

52,378

Regional Economic Development

620,753

1,083,073

(1,144,837)

558,989

1,832,962

3,474,981

(4,068,204)

1,239,739

National Landcare Programme

843,479

1,493,781

(1,777,609)

559,652

Regional NRM – Standalone & State

404,151

312,881

(285,219)

431,813

Regional Tourism

164,720

683,435

(627,411)

220,744

Regional Economic Development

602,231

1,636,333

(1,617,811)

620,753

2,014,581

4,126,430

(4,308,050)

1,832,961

TOTAL 2017

TOTAL

Regional NRM reserves held relate to State Support for NRM. CCA receives grant funding from the State Government for the provision and support of NRM functions, these reserves are not conditional nor tied to specific activities. Consolidated Regional Economic Development reserves held relate primarily to Cradle Coast Waste Management Group (CCWMG) funding, along with several other individually funded standalone regional projects. Standalone Regional Economic Development projects include: Strategic Shared Services Initiative, Coastal Pathway, State-wide Planning Reform and Education & Workforce Participation.

74

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements

16.

CASH FLOW INFORMATION

2018

2017

$

$

(405,203)

(175,888)

80,770

86,874

(240)

6,262

1,277

79,696

Increase/(Decrease) in Provisions

(52,698)

1,850

Increase/(Decrease) in Payables

(553,918)

503,318

Cash Flows Provided from / (used in) Operating Activities

(930,013)

502,112

Reconciliation of surplus to cash flows from operating activities Net surplus/(deficit) from Ordinary Activities Non-cash items included in surplus Depreciation and Amortisation of plant & equipment Net (gain)/loss on disposal of property, plant & equipment Change in assets and liabilities (Increase)/Decrease in Receivables

17.

COMMITMENTS

Operating Lease Commitments At the reporting date, CCA had the following obligations under non-cancellable operating leases for equipment, land and buildings for use within the CCA’s activities. These operating lease commitments are not recognised as liabilities. Payables Not later than one year Later than one year and not later than five years Later than five years TOTAL

10,452

68,405

164,393

171,854

44,082

44,925

218,927

285,184

Sponsorship Commitments At the reporting date, CCA had no outstanding obligations under the sponsorship agreement with the Confederation of Australian Sports for the 2017 Australian Masters Games. Payables Not later than one year

-

250,000

Later than one year and not later five years

-

-

TOTAL

-

250,000

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

75


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 18.

FINANCIAL INSTRUMENTS

a) 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 the 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 Sub-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 Sub-Committee is responsible for reviewing and reporting to the Board on the following matters; •

The effectiveness of internal controls established by management to safeguard the operations, including fraud prevention, of the 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.

b) Categories of Financial Assets

2018

2017

$

$

1,991,783

2,934,085

81,056

82,333

2,072,839

3,016,418

Financial assets Cash and cash equivalents Receivables Total financial assets Financial liabilities

76

Payables

(233,743)

(739,195)

Borrowings

(310,167)

(363,068)

Total financial liabilities

(543,910)

(1,102,263)

Net financial assets/liabilities

1,528,929

1,914,155

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 18.

FINANCIAL INSTRUMENTS (CONTINUED)

c) 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 Balance Sheet Aggregate net fair value 2018

2017

2018

2017

$

$

$

$

1,991,783

2,934,085

1,991,783

2,934,085

81,056

82,333

81,056

82,333

2,072,839

3,016,418

2,072,839

3,016,418

Payables

233,743

739,195

233,743

739,195

Borrowings

310,167

363,067

324,494

384,327

Total financial liabilities

543,910

1,102,262

558,237

1,123,522

Financial Instruments Financial assets Cash and investments Receivables Total financial assets 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. Components of market risk to which we are exposed are discussed below. 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 eect 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.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

77


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 18.

FINANCIAL INSTRUMENTS (CONTINUED)

e) Risk and mitigation (continued) 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. Most debtors are member councils and government entities where installments 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.

Aged Debtors Analysis Current (not yet due)

2018

2018

2017

2017

Gross

Impairment

Gross

Impairment

$

$

$

$

45,626

-

40,260

-

-

-

2,943

-

Past due from 31 to 60 days

1,101

-

1,595

-

Past due more than 60 days

-

-

5,022

-

46,727

-

49,820

-

Past due by up to 30 days

Total Receivables

Liquidity Risk Liquidity risk is the risk that CCA will not be able to meet its financial obligations as they fall due. The 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 that 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. In addition, CCA has access to a line of credit with its financial institution to enable it to meet unexpected payments.

78

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 18.

FINANCIAL INSTRUMENTS (CONTINUED)

e) Risk and mitigation (continued) Liquidity risk (continued) 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. 2018 2017 $

$

Within one year

289,696

792,228

1 to 5 years

254,214

241,516

-

68,518

543,910

1,102,262

5 to 10 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 marketing interest rates (AUD) from year-end 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. 2018

-1%

+1%

Change in surplus

(19,918)

19,913

Change in equity

(19,918)

19,913

Change in surplus

(29,826)

29,826

Change of equity

(29.826)

29,826

2017

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

79


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 19.

MATERIAL BUDGET VARIATIONS

CCA’s 17-18 budget was adopted by the Board and endorsed by the Representatives in May 2017. 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

Expenses

Other Income received was up $311K on budget (46%) due mainly to;

Project management expenses were up $511K on budget (31%) in accordance with project delivery commitments including;

Project contributions of $367K received in relation to waste levy charges for the CCWMG. Co-contributions of $15K received for regional tourism projects. Fees and charges of $68K for various workshops and forums. Cost recoveries of $25K. Interest received was up $4K on budget (10%).

$205K payable to the Confederation of Australian Sports for sponsorship of the 2017 Australian Masters Games. Project contributions of $209K including $157K distributed as devolved grants in accordance with grant funding agreements. $394K in relation to CCWMG project initiatives. Consolidated other operating expenses were down $44K (7%) on budget, however, included the following material budget variation of significance; Legal advice was up $57K on budget due to the CCA Rule Review, advice regarding the Committee Rules and other matters which were unknown at the time of setting the budget and therefore not budgeted for. Interest on borrowings was down $7K on budget (29%) due to market variations.

20.

SUBSEQUENT EVENTS

The following significant subsequent events occurred since the end of the reporting period:

80

As at 30 June 2018, CCA was unsuccessful in its tender for the provision of NRM services to the region under the National Landcare Programme two (NLP2). CCA is reliant on NRM funding as a major part of operations and is working with State and Federal Government in the process to re tender for service delivery.

On 31 July 2018, CCA entered into an agreement with a media services company to invest in the production of a television series showcasing the region. The future outlay will be no more than $210K, with future economic benefits expected to flow from distribution rights, vesting in the CCA to the extent of the investment share.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 21.

RELATED PARTY TRANSACTIONS

a) Responsible Persons Names of persons holding the position of a Responsible Person at CCA at any time during the year were: Directors Mr. Andrew Wardlaw (commenced October 17) Ms. Annette Rockli (commenced February 18) Ms. Anita Dow (ceased October 17) Mr. Bob Calvert (ceased August 17) Mr. Duncan McFie Mr. Malcolm Wells Mr. Michael Stretton (ceased October 17) Mr. Rod Stendrup Mr. Sid Sidebottom (commenced July 17) Mr. Steve Martin (commenced October 17, ceased March 18) Chief Executive Oicer Mr. Brett Smith Manager, People Culture & Finance Ms. Claire Smith Manager, Regional Tourism Ms. Theresa Lord Manager, NRM Mr. Richard Ingram (ceased October 17) 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.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

81


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 21.

RELATED PARTY TRANSACTIONS (CONTINUED)

b) Key Management Personnel Remuneration KMP include Directors, Chief Executive Officer and Business Unit Managers.

Short-term employee benefits Post-employment benefits Other long-term employment benefits Termination benefits Total

2018

2017

$

$

364,366

556,827

34,607

52,718

(85,030)

23,044

96,353

-

410,296

632,589

c) Transactions with Related Parties Details of transactions between CCA and other related parties are disclosed below:

Contributions received from related entities

2017

Reference

$

$

i.

852,344

839,752

Fees and charges received from entities controlled by KMP

-

1,515

Purchase of materials and services from entities controlled by KMP

-

20,650

127,720

110,439

Purchase of materials and services from related entities

ii.

Materials and Services purchased by related entities

iii.

29,637

-

Other Contributions from related entities

iv.

795,336

774,903

Contributions to related entities

v.

398,242

323,423

i.

Contributions received from related parties were in accordance with the CCA’s approved annual budget adopted by the Representatives in May 2017. Details of these contributions are disclosed in Note 3 Council Contributions.

ii. CCA purchased services from related entities in accordance with approved services agreements. All purchases were at arm’s length and were in the normal course of the CCA’s operations. The total disclosure includes: • Rental of an office building, under a 10-year lease agreement with the Burnie City Council (BCC).

82

2018

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

• IT services, provided in accordance with a three-year service level agreement with TasCom, an entity controlled by BCC. • Catering services provided by BCC for the 2017 Tourism Awards. iii. Related entities purchased materials and services from CCA in accordance with approved arrangements. The total disclosure includes: • Charges for shared regional economy i.d. profile subscriptions. • Charges for various workshops attended by local government staff.


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Notes to the Financial Statements 21.

RELATED PARTY TRANSACTIONS (CONTINUED)

c) Transactions with Related Parties (continued) iv. CCA received project contributions from related entities jointly controlled by KMP. The total disclosure includes contributions in relation to the following projects; • CCWMG Waste Levies • 2017 Australian Masters Games • Coastal Pathway v. CCA made contributions to related entities jointly controlled by KMP. The total disclosure includes the below transactions of material significance:

Contributions were made in the normal course of the CCA’s operations. 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. In accordance with s84(2)(b) of the Local Government Act 1993, 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.

• Grant funding (devolved grants) of $10,000. • Project expenses of $388,242 paid to Dulverton Waste Management on behalf of the Cradle Coast Waste Management Group. d) Outstanding balances, including commitments to/from related parties As at 30 June 2018, CCA owed the following balances to related parties: •

Dulverton Waste Management $130,716

As at 30 June 2018, the following balances were receivable from related parties: •

Burnie City Council $1,650

Central Coast Council $2,176

Dulverton Waste Management $25,639

Waratah-Wynyard Council $45,992

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 where determined to be of material significance.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

83


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Statement by Directors In our opinion;

a) The accompanying financial statements for the year ended 30 June 2018: i. Presents fairly the financial position of the CCA, financial performance and cash flows. ii. Complies with Australian Accounting Standards, mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board and the Local Government Act 1993 (Tasmania) (as amended). iii. Have been prepared based on properly maintained financial records. b) At the date of this report, there are reasonable grounds to believe that CCA will be able to pay its debts as and when they fall due. This statement is made in accordance with a resolution of the Board and is signed for on and behalf of the Board by;

Chair Sid Sidebottom Dated this 24th day of September 2018

Director Rodney Stendrup Dated this 24th day of September 2018

84

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Directors’ Report

The directors present their report on CCA for the financial year ended 30 June 2018. The directors in office during the year were; Mr. Andrew Wardlaw (commenced October 17) Ms. Annette Rockliff (commenced February 18) Ms. Anita Dow (ceased October 17) Mr. Bob Calvert (ceased August 17) Mr. Duncan McFie Mr. Malcolm Wells Mr. Michael Stretton (ceased October 17) Mr. Rod Stendrup Mr. Sid Sidebottom (Chairman) Mr. Steve Martin (ceased November 17) Unless otherwise stated the directors have been in office since the start of the financial year to the date of this report. Operating Result The deficit of CCA for the financial year amounted to ($405,203) (2017 deficit: $175,888). Significant changes in state of affairs In June 2017, a new Chairman was appointed to the Board of Directors. Participating councils are now represented on the Board with one (1) general manager and two (2) mayors. In May 2018, CCA’s Rules were amended and approved by participating councils providing for the Chairs of the NRM and Tourism SubCommittees to be Board Directors. This will improve the relationships between the Board and Sub-Committees. Review of Operations The 2018 financial year was defined by the Rule Review. The amended Rules were presented to Representatives in February 2018 for review and resolution. The amended Rules were endorsed by majority participating councils in April and became effective May 2018. The major regional projects CCA pursued in 2017-18, through its core roles and functions included; • • • • • • •

Australian Masters Games Visitor Economy Marketing Strategy Strategic Shared Services Initiative Coastal Pathway Natural Resource Management Strategy Natural Landcare Programme Regional Events & Festivals Strategy

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

85


FINANCIAL REPORTS & STATEMENTS

Cradle Coast Authority | For the Year Ended 30 June 2018

Directors’ Report Meetings of Directors

There were 10 meetings of directors (plus 16 Board Sub-Committee meetings) held during the year. The attendance by each director during the year was as follows: Number eligible to attend

Number attended

Mr. Andrew Wardlaw

6

6

Ms. Annette Rockliff

2

1

Ms. Anita Dow

4

4

Mr. Bob Calvert

1

1

Mr. Duncan McFie

10

5

Mr. Malcolm Wells

11

11

Mr. Michael Stretton

4

4

Mr. Rod Stendrup

20

17

Mr. Sid Sidebottom

10

10

Mr. Steve Martin

1

0

Director

CCA has not, during or since the financial year, in respect of any person who is or has been an officer or auditor of CCA or a related body corporate; •

indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including costs and expenses in successfully defending legal proceedings; or

paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer for the costs or expenses to defend legal proceedings.

CCA has paid premiums to insure all the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of a director of CCA, other than conduct involving a willful breach of duty in relation to CCA. The Directors’ Report is signed in accordance with a resolution of the Members of the Board. Dated on this 24th day of September 2018.

Chair Sid Sidebottom

86

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

Director Rodney Stendrup


Thank You

Thank you to everyone involved with our work throughout the 2017/2018 year.

CRADLE COAST AUTHORITY ANNUAL REPORT 2017-18

87


Cradle Coast Authority 1 – 3 Spring Street, Burnie PO Box 338, Burnie TAS 7320 Ph: 03 6433 8400 Fax: 03 6431 7014 admin@cradlecoast.com www.cradlecoast.com

red bird 5405

Profile for Cradle Coast Authority

Cradle Coast Authority Annual Report 2017-2018  

Cradle Coast Authority Annual Report 2017-2018

Cradle Coast Authority Annual Report 2017-2018  

Cradle Coast Authority Annual Report 2017-2018