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TRUST for NATURE

a n n ua l r e p ort 2 0 1 1 - 1 2

Annual Report 2011-12

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Published by Trust for Nature (Victoria), Melbourne, August 2012. Trust for Nature (Victoria) 5/379 Collins St Melbourne, Victoria 3000 Australia Phone: +61 3 8631 5888 Fax: +61 3 9614 6999 Freecall: 1800 99 99 33 (Australia only) Email: trustfornature@tfn.org.au www.trustfornature.org.au Š State of Victoria, Trust for Nature 2012. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. ISSN: 1838-9732

This report is printed on paper manufactured using pulp sourced from 100% sustainable plantations using vegetable-based inks. An electronic copy of this document is available online at www.trustfornature.org.au Acknowledgements Trust for Nature gratefully acknowledges all the photographers who have provided images for this document: Libby Woodward for the front cover image of an Australasian pipit (Anthus novaeseelandiae); and Darroch Donald for the inside-cover photo of Trust for Nature’s Revolving Fund property at Goroke.


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achie v ements

81 conservation covenants registered

3,573ha more of Victoria protected through conservation covenants

100ha of native grassland, woodlands and wetlands covenanted on the Victorian Volcanic Plains connectivity project

152ha across eight wetlands protected and restored as part of the Lower Ovens and Boorhaman Plains Wetland project

100 nest boxes established on 10 covenants and properties in the Goulburn Broken region to provide hollows for Squirrel Gliders and Brush-tailed Phascogales

17 Spring into Nature events held across the state with more than 490 people attending

Implementation of an Indigenous Engagement Strategy as part of the Buloke Woodlands Project

Table of contents Message from the Chairman and Chief Executive Officer....................................................................................................................................... 4 About Trust for Nature........................................................................................................................................................................................... 6 Key services........................................................................................................................................................................................................ 7 2011-12 Trust for Nature services: operational objectives for key services............................................................................................................ 11 Key conservation achievements.......................................................................................................................................................................... 13 Community engagement achievements............................................................................................................................................................... 16 Corporate support and development................................................................................................................................................................... 18 Partners............................................................................................................................................................................................................. 19 Major donors...................................................................................................................................................................................................... 21 Financial overview.............................................................................................................................................................................................. 22 Trust for Nature board and employees................................................................................................................................................................. 23 Statutory compliance.......................................................................................................................................................................................... 27 Disclosure index................................................................................................................................................................................................. 30 Appendices........................................................................................................................................................................................................ 75


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Message from the Ch a ir m a n a nd Chief Executiv e Officer Trust for Nature is in its 40th year of operation. At the time of its establishment, the Trust was given statutory objects relating to nature conservation and these endure today. Included in these objects, for example, are the preservation of areas which are ecologically significant or are of natural beauty, and the conservation of wildlife and native plants. These objects are as important as they ever were. Over the last 40 years conservation on private land has become even more urgent. The Trust now has the responsibility to both carry out the objectives of its founders as well as shape its work for the future. It is the Trust’s vision that within two decades, protecting native plants and wildlife on private land will be recognised and valued as a central part of mainstream Australian environmental practice, just as water and energy conservation are today. Also, just as national and state parks are protected, there will be a notable increase in the significant natural areas on privately owned land that are protected. As one of Australia’s oldest conservation organisations, Trust for Nature has experience, knowledge and unique contributions to make towards meeting this challenge. To address our vision and statutory objects we have developed seven strategic directions for 2011-16. These directions have set the path for reviews of our ongoing services and activities as well as investment in a number of strategic initiatives. This work will assist the Trust to respond to current environmental challenges in an efficient and effective manner. Here we explain those seven directions and report on the strategic initiatives for 2011-12. Implementing strategic landscape-wide conservation The Trust’s work will increasingly focus on strategic conservation and management of private land that contributes to wider-scale landscape outcomes and to long-term protection of native plants and wildlife. This strategy lies at the core of strengthening and promoting the importance of the practice of private land conservation in Victoria. In 2011-12 Trust for Nature invested in the development of a science-based plan to guide its private land conservation work. The significance of this plan lies in its perspective - it has been developed through the lens of private land conservation, identifying both priorities and opportunities for action on private land. The Statewide Conservation Plan outlines the species and ecosystems the Trust will focus on protecting at both a statewide and regional level, and it ensures that the organisation’s approach is consistent with the science and priorities of the Victorian and Australian Governments and other conservation organisations. The Statewide Conservation Plan will be integral to the Trust’s conservation work over the coming years. The development of the plan involved the assistance of a technical reference group and we are very grateful for their contributions to Trust for Nature. During the year, the Trust also completed a conservation action plan for Neds Corner Station.

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Building and innovate private land conservation Over the next five years the Trust will strengthen its conservation covenant and stewardship services. Where possible, we will explore and apply existing and emerging conservation mechanisms to achieve private land conservation across a broader spectrum of landowners and land types. This year the Trust began this work by reviewing its stewardship service. This service is a post-protection service and provides support to covenantors, including monitoring and reporting. The review involved the development and trialling of a prioritised and risk-based approach to stewardship so as to improve both its efficiency and efficacy. The Trust will complete implementation across all regions in 2012-13. In addition, the Trust initiated a review of its Revolving Fund and began the development of a framework for management of its conservation reserves. These initiatives will continue in 2012-13. The Trust’s commitment to building the practice of private land conservation involves working with other covenanting bodies. Nationally, 2011-12 has seen the Trust continue its central role in the development of the recently-established Australian Land Conservation Alliance. In conjunction with other Alliance members, the Trust has helped establish the national Australian Land Conservation Alliance secretariat, overseen the development of the Alliance’s Australian Government Caring for our Country project, and helped shape the Alliance’s submissions to the Australian Government’s Draft National Wildlife Corridors Plan and the Carbon Farming Initiative. Responding to climate change The Trust will use the next five years to better understand the impact of climate change on conservation management of private land and we will also use this time to integrate our nature conservation goals and practices with new carbon-based approaches. Records of the adaptations of species on covenanted and protected private land over time will prove valuable information. This year the Trust has completed a plan for reducing it environmental footprint, which is based upon the ResourceSmart initiative of the Victorian Government. Intensifying the role of partnerships Virtually all of Trust for Nature’s ongoing work is undertaken collaboratively. At the centre of the Trust’s ability to achieve its goals are the private individuals who, in partnership with the Trust, embark on conserving native plants and wildlife on their own land, in particular those who choose to enter into a conservation covenant. We highly value our strong partnerships with Committees of Management of Trust properties who volunteer their time and expertise. Governments and their agencies at every level are also vital partners. By working with multiple partners on a common goal, the Trust’s effectiveness is increased. Over the next five years we will increasingly work in partnerships models.

www.trustfornature.org.au


Building private and philanthropic sector investment and commitment to conservation In addition to strengthening our relationships with conservation partners, the Trust will work over the next five years to increase and broaden its partnerships with donors, sponsors and the private and philanthropic sector. The purpose of this work is to increase investment in, and commitment to, private land conservation and also to develop sustainable and balanced income streams for our work. During this year the Trust established the foundations for this work by completing both a development and communications plan. These plans will animate our work during 2012-13 and beyond. Building and modernise organisational capacity Over the next five years we will focus on strengthening the Trust’s organisational systems as well as the regional and flexible nature of our organisation so as to ensure that the Trust is a modern, adaptable and professional organisation and a leader in private land conservation. To provide a base for this work, the Trust used 2011- 12 to invest in a business modelling project. The goal of this project has been to focus and finetune the Trust’s private land conservation strategies by reviewing its service delivery, so as to ensure the Trust’s resilience and sustainability for the future. In 2011-12 the Trust developed a formal incident management framework and began the implementation of a health and safety management review, which was initiated in 2010-11. Inspiring and engage with the community Community engagement has always been a hallmark of Trust for Nature’s operations. It is for this reason that it continues to be an important strategic direction. During 2011-16 we will build our community engagement and public education to increase awareness of the importance of conservation on private land. We see that the work of the Trust is an opportunity for the community to connect with nature and that this is important for the creation and encouragement of the next generation of environmental guardians. During 2011-12 we developed an internship program. Through partnerships with the University of Melbourne we were lucky to benefit from the input of a number of interns from both the Law School and the Graduate School of Business and Economics.

Our covenantors are the key to long-term protection on private land. As we have said before, we hope their inspiration will ignite the vision of other private landowners to protect the natural assets on their land. Garnishing philanthropic support to provide a robust and effective stewardship program has become a major focus of Trust for Nature. The Trust’s resources are challenged to provide adequate assistance to the ever increasing number of covenantors who are custodians of important habitat and natural assets on their land. The importance of this role cannot be overstated. The owners and managers of conservation covenants are providing Victorians with a tremendous service that future generations will appreciate and applaud. In accordance with the Financial Management Act 1994 (Victoria), and as Chairman and Chief Executive Officer, we are pleased to present the Trust for Nature Annual Report for the year ending 30 June 2012.

Camilla Graves,

Victoria Marles

Chairman,

Chief Executive Officer

Date:

The Trust’s achievements, resulting from its ongoing services and activities, are set out in this report. We are particularly proud to report that for the second year in a row, the number of covenants and the number of hectares protected has exceeded our 10-year average. The Trust has registered 81 covenants protecting 3,573 hectares. Trust for Nature’s success is due to the generosity of its supporters. Donations to the Trust allow the organisation to develop many of its more innovative conservation tools, while maintaining its properties and supporting a network of staff across Victoria. Of particular note are the bequests from the late Marion Field and the late Grace Fraser. Trust for Nature thanks all those who donate to the organisation, particularly those who have or are considering making a gift to Trust for Nature in their will. The Trust is reliant on the many volunteers who contribute their time and effort. This year, Lindsay Smith of Snape Reserve Management Committee was recognised with an Order of Australia medal for his volunteer services to conservation and the environment. The Trust congratulates Lindsay and thanks all of its volunteers.

Annual Report 2011-12

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A bout Trust for Nat ur e Manner of establishment Trust for Nature (Victoria) operates under the Victorian Conservation Trust Act 1972. The objects of the Trust are set out in the Act: • For public scientific and public educational purposes encourage and assist in:

• The preservation of areas which are:

- of natural interest or beauty; or

- of historical interest.

The Victorian Conservation Trust Act 1972 and the Trust’s key services Trust for Nature meets its statutory objects by providing private land conservation services to the Victorian community, government and private landowners. The key services are:

- ecologically significant

Relevant Minister The responsible Minister during the 2011-12 reporting period was the Hon. Ryan Smith, MP, Minister for Environment and Climate Change for the period from 1 July 2011 to 30 June 2012.

• land protection services • stewardship services

• The conservation of wildlife and native plants; and

• T  he conservation and creation of areas for scientific study relating to the above.

• Encourage and assist in the conservation and creation of areas of natural beauty or interest for use by the public for the purposes of enjoyment, recreation and education. To meet these objects Trust for Nature has the power to:

• environmental markets services • conservation reserves; and • Revolving Fund. The achievements of these services and associated activities are set out in pages 7 to 18 of this report. Further detail about these achievements can be found in the Annual Report section of the Trust for Nature website:

• purchase, sell, transfer and hold land • surrender land to the Crown

www.trustfornature.org.au

• enter into covenants with owners of land; and • accept gifts, donations and bequests.

To assist the reader, Table 1 below links the Trust’s statutory objects to its services and associated activities. Table 1: Links between Trust for Nature’s statutory objects and its services and associated activities.

Victorian Conservation Trust Act 1972 objects The preservation of areas which are ecologically significant

The conservation of wildlife and native plants

The conservation and creation of areas for scientific study, public enjoyment, recreation and education

• L and protection services: covenants and land management agreements

• Stewardship services

• Events

• Conservation reserves: management

• Volunteer opportunities

• Environmental market services

• Student/ intern program

• Public policy contribution

• Communications

• Revolving Fund • Conservation reserves: acquisition • Partnerships

• Research support • Development

Detail on the achievements of these services and associated activities can be found from pages 7 to 18 and in the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

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www.trustfornature.org.au


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K e y services Land protection services (covenants and agreements) Trust for Nature’s land protection service delivers the covenant program. The objective of this program, including land management agreements, is to protect significant areas of native vegetation and habitat in private ownership across Victoria. Trust for Nature targets its land protection services towards the conservation of threatened ecosystems, in particular where there are opportunities for landscapescale conservation. It aligns its work with the conservation priorities of the Catchment Management Authorities, the State Government and the Australian Government. In the reporting period the Trust worked across landscapes in partnership with farmers, private landowners, volunteers, governments and many others to help protect highly threatened woodlands, grasslands, wetlands and waterways to build habitat resilience and connectivity.

• 12 covenants developed in a commercial context - where a covenant is agreed to on a fee paying basis due to a planning permit requirement, native vegetation offset requirement, voluntary offset request, or desire for marketing opportunity.  

Trust for Nature negotiates covenants and land management agreements with landowners through a network of regional officers. These agreements are then finalised using the Trust’s on-title registration services. The work is supported through service-level agreements with individual Catchment Management Authorities, through the Victorian Government’s Natural Resource Investment Program and through the Australian Government’s Caring for our Country initiative. Private sector and philanthropic support also contribute to the delivery of this service, along with the Trust’s Revolving Fund and offset program.

• to increase the area under covenant

In 2011-12, 81 conservation covenants were registered, comprising: • 2 Revolving Fund covenants - where a property is purchased and then on sold with a covenant through Trust for Nature’s Revolving Fund.

• 14 incentive covenants (BushTender, EcoTender, Catchment Tender, Habitat Tender1) - where a covenant is agreed as a result of the landowners participation in an incentive program. • 53 voluntary covenants (voluntary request from a landowner) where a covenant is voluntarily placed on title by a landowner. In 2011-12 the Trust registered 20 amendments to an existing conservation covenant. This is the formal process whereby changes to a covenant are registered on title. The Trust will only consider an amendment for an existing covenant in the following circumstances:

• to increase the protections afforded to covenanted land; and • to clarify or correct the terms of a covenant or survey plan.    In addition to registering covenants, regional staff visited 93 properties and assessed them for covenanting (compared with 143 in 2010-11). The Trust also entered into 24 non-perpetual agreements covering 961ha of land. These agreements ensure that the land protected is progressively improved in quality and condition in accordance with an agreed set of management works and actions over a five-year period.  They are used either where the landowner is working towards the goal of a covenant or where the landowner does not wish to covenant.

Table 2: Conservation covenants registered and area protected

Total

Total

Registered covenants in 2011-12

*Registered covenants in 2010-11

Ten-year average registered annual covenant (2002-12)

*Registered covenant total (1986-2012)

81

112

66

1,169

Area protected in 2011-12 (ha)

Area protected in 2010-11 (ha)

Ten-year average total area protected (ha) (2002-12)

Total area protected (ha) (19862012)

3,573

6,104

2,898

49,777

*Covenant statistics fluctuate due to ownership and boundary changes; improved mapping techniques; and increases to areas already under covenant.

Buloke Woodland Project – an example of a landscape-scale project The Buloke Grassy Woodlands of the Riverina and Murray Darling Depression Bioregions are listed as threatened ecological communities by the Australian Government under the Environment Protection and Biodiversity Conservation Act 1999.  In addition, the Buloke tree is listed under the Flora and Fauna Guarantee Act 1988 (Vic.). The aim of the Buloke Woodland project is to protect Buloke Grassy Woodlands on private land through conservation covenants and partnership projects. The Trust is working with partner’s bankmecu; Landcare Australia Ltd; the Victorian Department of Sustainability and Environment; Greening Australia; and two community-run conservation groups: Kowree Farm Tree Group and Grampians to Little Desert Biolink. In 2011-12, the project protected a total of 944ha through four conservation covenants. The project also offers help to landowners through fencing, assistance with revegetation, and pest-plant and animal control.  Community groups complement the initiative by holding a wide variety of events in and around the targeted properties, from raising awareness of threatened species to open days to discuss and examine the management of Buloke Grassy Woodlands.

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For information on these programs, visit: www.dse.vic.gov.au/conservation-and-environment/ecomarkets

Annual Report 2011-12

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K e y services C ontinued

Stewardship services The objective of Trust for Nature’s stewardship program is to work cooperatively with landowners to ensure that all areas of significant habitat covenanted by the Trust are managed to maintain and enhance their conservation value and reduce threats. The stewardship program represents a key contribution by the Trust towards the long-term conservation outcomes of government environmental programs. The Trust works directly with landowners to provide advice on management issues, address threats to conservation values, and monitor the condition of habitat and trends of species populations on covenanted properties. This is achieved through a program of property visits, the development of management plans, and the provision of conservation advice, support and information. The Trust provides practical information and resources through fact sheets, website updates and advice on where to find further information. In addition, the program identifies funding opportunities for landowners to undertake conservation works on covenanted properties, through various means including direct cash payments, rate concessions, tax concessions or ecological tender schemes. These can be used to improve or enhance habitat values through revegetation, control of threats such as feral animals, or implementing more long-term strategies to improve or protect threatened species. Trust for Nature’s operational target is to visit and assess each covenanted property every three years. Resource constraints, however, hampered the Trust’s ability to meet this target as the target rises each year with the increasing number of covenants. During the year, Trust for Nature completed a review of its stewardship program to increase its efficiency and effectiveness. In 2012-13 the program will streamline stewardship activity on a prioritised basis and risk-based approach. Improvements to the program’s monitoring, reporting and enforcement functions continue and are ongoing. Covenant compliance is addressed through stewardship monitoring. In 2011-12 there were no matters requiring formal proceedings. Trust for Nature staff participated in 21 field days and a number of workshops and seminars, both in Melbourne and in the regions. See the section on community engagement achievements on page 16 for more on these activities. Table 3: Stewardship services

Stewardship visits Management plans prepared

2011-12

2010-11

327

211

89

144

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Outer East Stewardship Project A generous donation by Robert James enabled Trust for Nature to develop the Outer East Stewardship Project. The project is in its second year of operation and aims to increase the Trust’s stewardship and covenanting capacity in the Port Phillip and Westernport region. The project has resulted in increased stewardship visits to covenantors, greater targeting of more covenants in the region, provision of incentives to covenantors and the purchase and management of properties in Nillumbik, Yarra Ranges and Cardinia Shires. The project has already allowed the Trust to purchase a property in Emerald containing the Flora and Fauna Guarantee Act 1988 (Vic) listed White Star-bush (Asterolasia asteriscophora subsp. albiflora).

Environmental market services The objective of Trust for Nature’s engagement in environmental markets is twofold: to ensure conservation benefits flow from permitted vegetation and habitat loss; and to support and complement Trust for Nature’s activities to conserve native plants and wildlife. Trust for Nature is engaged in the native vegetation offset market because the conservation covenant is one of three mechanisms permitted for securing the permanent protection of an offset site in Victoria. The Trust has developed a program for matching a proponent’s requirement to offset loss of native vegetation or habitat with landowners willing to protect and enhance land of high conservation value. The first stage of an offset results in an agreement between proponent, landowner and Trust for Nature to meet a regulated offset requirement. The second stage is to secure the required ecological outcome through the registration of an offset covenant. The offset program operates in both state and federal jurisdictions, identifying high-quality native vegetation and habitat for threatened species and communities and the resulting covenants meet the required federal and state regulatory standards. Trust for Nature continues to assess its role in the emerging carbon offset market and seeks to develop partnerships that will add to its expertise and resources to support conservation through emerging carbon markets. It has become an observing partner in the Australian Carbon Rangelands Enterprises, which includes government and nongovernment organisations. These bodies have come together to jointly develop a methodology through the Carbon Farming Initiative of the Australian Government. The methodology will assess carbon sequestration through the management of Australia’s rangelands.

www.trustfornature.org.au


Table 4: Offset agreements completed 2011-12

2010-11

Offset agreements completed3

14

9

Native vegetation (habitat hectares) 1

41

28

1,462

90

21

9

2011-12

2010-11

Large old trees

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Habitat (hectares) 2 Table 5: Offset covenants registered

Offset covenants registered

12

22

37

117

1,375

101

28

25

1

Native vegetation (habitat hectares)1 Large old trees1 Habitat (hectares)

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Protecting the Golden Sun Moth The Golden Sun Moth (Synemon plana), a critically endangered species under the Environment Protection and Biodiversity Conservation Act 1999, inhabits natural temperate grasslands of the Victorian Volcanic Plains. This native moth species requires specific habitat in Wallaby Grass-dominated grasslands as females lay their eggs in Wallaby Grass, the larvae feed upon it, and once mature, will not fly more than 100m from their preferred habitat. In 2011-12, Trust for Nature was able to secure a 19ha protected area of native grassland through covenant to meet the offset requirement. This site provides habitat for a range of additional threatened species including Clover Glycine (Glycine latrobeana), Rye Beetle Grass (Tripogon loliiformis) and Small Scurf-pea (Cullen parvum). The area protected through this native vegetation offset is within a larger 44ha patch of native grassland managed by the landowners to protect native plants and wildlife, including the critically endangered Spiny Rice Flower (Pimelea spinescens).

Approved through state legislation. Approved through federal legislation. 3 Refers to agreements reached preceding covenant registration.

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Revolving Fund Trust for Nature’s Revolving Fund is a market-based conservation instrument. Its objective is to use the real estate market to achieve conservation outcomes, as per its statutory power to buy and sell land. It matches the supply provided by the owners of private properties of high natureconservation value with demand from that section of the community that wishes to purchase and protect these values. The Revolving Fund protects conservation values through an obligation for all purchasers to covenant the property. As the Revolving Fund operates in the property market, factors that affect the market will also have an impact on the Fund. The Trust aims to maintain the value of the Revolving Fund over time. The general decline in rural property values in 2011-12, however, resulted in slowed operations of the Fund. While no properties were purchased, three properties were sold and the proceeds of these remain available for future purchases. Since its inception, the Fund has purchased 55 properties, sold 52, and so protected 5,695ha of conservation land. Table 6: Revolving Fund statistics 2011-12

2010-11

Properties sold

3 properties, total 139.25ha, value $222,957

1 property, total 687ha, value $150,000

Properties bought

0

1 property, total 3.34ha

Donations/ transfers in

$1,000

$850,000

Revaluation

0

$228,705

Properties retained

5 properties, value $1,503,534

8 properties, value $1,726,491

Cash

$2,755,074

$2,573,795

Total value of Revolving Fund

$4,258,608

$4,300,286

Mystic Park In 2011-12 Trust for Nature sold a Revolving Fund grassland property in the North Central region to owners who already had a neighbouring covenant. Mystic Park is a 35ha property that links to the Avoca Marshes in the Victorian Riverina. It adjoins the protected area network at Wanderers Plain – a Trust-owned grassland property, and links to a number of other conservation reserves in the region. Through the Revolving Fund, this area of Grasslands and Grassy Woodlands is now protected and will provide habitat for species such as Chariot Wheels (Maireana cheelii), Murray Swainson-pea (Swainsona murrayana), Woodland Birds and Blackbox Woodlands. A small surplus was achieved on the sale of Mystic Park that will replenish and add to the Revolving Fund and be used to purchase future high-value conservation properties. For more information about Trust for Nature’s Revolving Fund, please visit www.trustfornature.org.au

Annual Report 2011-12

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K e y services C ontinued

Trust properties The objective of the Trust’s ownership of properties is to preserve areas that are ecologically significant, of natural interest or beauty, or of historical interest.  Trust for Nature has a long history of protecting land through purchase, ownership and where suitable, transfer to the Crown or other responsible entity, as per its statutory objective.  Such properties form part of the protected areas network such as National Parks and Nature Conservation Reserves.  Trust for Nature currently owns and manages 47 properties covering 36,104ha of the State of Victoria. No further additions were made to the Trust’s portfolio in 2011-12, and no properties were transferred from the portfolio of Trust for Nature in 2011-12. The property program provides opportunities for people and organisations to financially support conservation directly through land purchase.  Trust for Nature is grateful for the ongoing support of dedicated volunteers who assist in the management of our properties. Many volunteers have made significant contributions to conservation through their long-term support as members of Committees of Management or participation in Friends groups. These groups have taken responsibility for providing effective land stewardship and maintaining and enhancing important regional biodiversity assets, which involves everything from the diligent removal of weeds to the restoration and expansion of threatened species habitat. Of equal importance is the support the Trust’s volunteers generate in the community for conservation, particularly in providing information and communicating the benefits of biodiversity protection.

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Woodland conservation reserve The Burge Family Reserve was donated to Trust for Nature in 2010. The 38ha property in the Goulburn Broken region protects the Environment Protection and Biodiversity Conservation Act 1999 (Cmwlth.) listed Box Gum Grassy Woodland, with seven Eucalypt species, 10 native grass species and many herbs, lilies and forbs. Grasslands on the property remain intact as light grazing is the sole historical agricultural activity, and rare animals including the Bibrons toadlet and Diamond Firetail have been seen. Recently, the Reserve hosted 50 people who attend a nature walk during the 2011 Spring into Nature series. In 2012, volunteers took part in a planting day to enhance the woodland shrub layer. Habitat for Humanity, which builds houses for those made homeless in the 2009 bushfires, supported the planting day to compensate for vegetation removal that resulted from the housing construction. The Burge Family Reserve is also a focal point for the Strathbogie Ranges Conservation Management Network’s management and education activities. Future activities include investigation of an ecological burn with the Yarck Fire Brigade and the development of a self-guided walk and brochure, using funds raised through Trust for Nature’s 2011 End of Financial Year Appeal for Committees of Management.

www.trustfornature.org.au


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2011-12 Trust for Nat ur e services : oper ationa l objectiv es for k e y services The achievements of the Trust’s activities and services against the objects of the Victorian Conservation Act 1972 can be found in summary throughout this report and in further detail in the Annual Report section of the Trust for Nature website: www.trustfornature.org.au. In line with statutory disclosure requirements, the Trust also reports on the targets and outcomes of its operational objectives in Table 7. Table 7: Operational objective outcomes Services

Target (qualitative & quantitative)

Outcomes 2011-12

Conservation covenants

To negotiate 3,000ha for conservation covenants under Catchment Management Authority Service Level Agreements

• 4,036ha protected by registered conservation covenants

To register covenants over 3,300ha

• 3,573ha protected by registered conservation covenants

To prepare 90 management plans for covenanted properties (in line with Catchment Management Authority agreements)

• 8  9 management plans prepared for covenanted properties in line with Catchment Management Authority agreements

To visit 362 covenanted properties

• 327 visits to covenanted properties

To host 20 field days

• 21 field days hosted

Environmental markets

To increase the number and efficiency of agreements developed through the native vegetation offset market

• 12 offset agreements registered • 14 offset agreements underway

Revolving Fund

To maintain the value of Revolving Fund contributions over time

The value of Revolving Fund contributions has grown in 2011 - 12. Three properties were sold at a small gain of $4,668. Interest on funds held grew by $159,288: • Three properties totalling 139.25ha sold for $222,957 • Retained $2,755,074 in cash for use by Revolving Fund. • Holding 5 properties comprising 485ha with a value of $1,503,534

To grow the value of private investment in nature conservation through contributions to the Revolving Fund

• N  o additional contributions to the Revolving Fund were secured in 2011-12

To grow the value of private investment in nature conservation through development activities and prudent funds management

• D  evelopment income from donations (excluding bequests) decreased from an income of $509,120 in 2010 - 11 to $390,095 in 2011 - 12 and an additional $178,546 in private grant income • Bequest income totalled $1,958,294 up from $100,000 • Dividend income increased from $187,558 to $196,956 • Interest income increased from $856,430 to $899,000

To carry out two fundraising appeals

• C  hristmas appeal in December 2011, raising funds for the Land Management Innovation Fund for the Trust’s ongoing operation and growth • End of Financial Year appeal in June 2012, again to support the Land Management Innovation Fund • End of Financial Year appeal (associated with the celebration of the Trust’s 40th Anniversary)

Land stewardship

Development

Annual Report 2011-12

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2011-12 Trust for Nat ur e services : oper ationa l objectiv es for k e y services C ontinued

Table 8: Conservation covenants registered by region Registered covenants in 2011-12

*Registered covenants in 2010-11

*Registered covenant total

Corangamite

9

6

89

East Gippsland

7

6

109

Glenelg Hopkins

1

13

74

Goulburn Broken

18

10

145

4

1

35

15

28

196

North East

8

4

58

Port Phillip & Westernport

6

20

208

10

13

120

3

11

135

81

112

Region

Mallee North Central

West Gippsland Wimmera Total Statewide total

1,169

Table 9: Area protected by registered conservation covenants Region

Area protected in 2011 - 12 (ha)

*Area protected in 2010 - 11 (ha)

*Total area protected (ha)

Corangamite

260

121

2,134

East Gippsland

295

445

5,474

Glenelg Hopkins

8

818

3,123

Goulburn Broken

535

270

5,089

1,016

61

3,208

North Central

752

1,121

8,139

North East

240

1,080

3,237

38

334

3,146

391

1,252

4,300

37

601

11,924

3,573

6,104

Mallee

Port Phillip & Westernport West Gippsland Wimmera Total Statewide total

49,777

*Covenant statistics fluctuate due to ownership and boundary changes; improved mapping techniques; and increases to areas already under covenant.

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K e y conservation achie v ements The Trust supports and develops its core conservation services through a number of associated activities and approaches. The achievements of these activities and approaches are set out in this section. Conservation planning This year the Trust undertook significant conservation planning. The major strategic project was the Trust’s investment in the development of a Statewide Conservation Plan for private land in Victoria, using State Government conservation-planning approaches and datasets, to provide an overarching framework for the Trust’s future conservation programs across the state. The Trust also prepared its first bioregional conservation strategy for private land. This was undertaken in the Riverina bioregion as part of the National Reserve System’s1 Protected Areas on Private Land Program and included management guidelines for each of the major ecosystems found on private land in the Riverina. At the landscape-scale, the Trust prepared a Conservation Strategy for the Caring for our Country Buloke Woodlands protection and connectivity project in the Wimmera. And finally, at the most local scale, the Trust developed a cross-property conservation plan for one of the target areas within the Buloke Woodlands project area. Each of these finer-scale planning documents are underpinned by the Statewide Conservation Plan and statewide datasets, providing the Trust with a strong foundation for future conservation planning at all scales. The Conservation Measures Partnership’s Conservation Action Planning approach was trialled in 2011-12. Further staff training in this methodology will occur in the latter half of 2012. Ecologically significant area protection

In 2011-12, Trust for Nature registered 73 covenants (excluding eight offset covenants) that contribute to an increase in the National Reserve System by more than 3,200ha. Altogether, covenants were registered in 20 of Victoria’s 28 bioregions. Approximately two-thirds of this protected land was located in bioregions that are rated high-priority for protection under one or more of the National Reserve System criteria. The majority of these new covenants also contributed significantly to increased protection of under-represented ecosystems: of the 156 different ecological vegetation classes protected under covenant, 81 per cent are classified as rare or threatened and 46 per cent as endangered. For details of the Trust’s protection activities in 2011-12, see Table 10, or visit the Annual Report section of the Trust for Nature website:

Landscape connections Increasingly, the Trust is involved in projects which aim to improve biodiversity and restore connectivity at the landscape-scale. Trust for Nature continued its involvement in Habitat 141 with strategic and on ground input to deliver the project’s landscape vision - ‘to connect the oceans with the outback’ through two landscape projects, including the ongoing Caring for our Country funded Buloke Woodlands project in the Wimmera. Additionally, the Trust obtained Caring for our Country funding to implement a landscape corridor and habitat restoration project on Neds Corner Station and nearby properties. This project has the aim of improving the long-term viability of the nationally threatened Regent Parrot and associated threatened ecosystems (see ’Linking landscapes’). In north-central and north-eastern Victoria, Trust for Nature actively participated in a range of landscape connection projects with partners through its involvement with Great Eastern Ranges, Central Victorian Biolink project, Connecting Country and the newly-formed Strathbogie Ranges and Kara Kara Conservation Management Networks.

Linking landscapes In Victoria’s north-west, Trust for Nature’s Neds Corner Station provides habitat for the Environment Protection and Biodiversity Conservation Act 1999 (Cmwlth) listed Regent Parrot (Polytelis anthopeplus monarchoides). These birds rely on tree canopy cover to travel between their River Red Gum breeding sites and mallee woodland feeding sites, but over the last 100 years these habitats have been extensively cleared and fragmented. With funding support from the Australian Government’s Caring for our Country initiative, Trust for Nature is restoring tree cover and managing existing patches of mallee woodland habitat to increase and improve the vegetation links in the landscape for this highly mobile parrot. Over the past year, 15km of direct seeding has been completed, 182ha of former cropping land removed from production, and rabbit control carried out over 100km of the project area. The outcomes of different management methods are being evaluated to shape future management actions on the property.

For details of the Trust’s landscape-scale activities in 2011-12, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

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The National Reserve System is Australia’s network of protected areas. For more information, visit: www.environment.gov.au/parks/nrs/index.html

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K e y conservation achie v ements C ontinued

Table 10: The IBRA bioregions and sub-regions protected via conservation covenants and the number of Ecological Vegetation Classes within Catchment Management Authority regions.

Number of Ecological Vegetation Classes

Number of conservation covenants

Area (ha)

Otway Plain

5

4

37.98

Victorian Volcanic Plain

Victorian Volcanic Plain

2

1

9.54

South East Coastal Plain

Gippsland Plain

10

4

30.57

South East Corner

East Gippsland Lowlands

2

1

10

East Gippsland Uplands

8

2

254

Catchment Management Authority region

IBRA bioregion

IBRA sub-region

Corangamite

South East Coastal Plain

East Gippsland

Glenelg Hopkins

Victorian Midlands

Central Victorian Uplands

2

1

8.09

Goulburn Broken

NSW South Western Slopes

Northern Inland Slopes

8

4

208.75

Riverina

Victorian Riverina

3

1

59.08

South Eastern Highlands

Highlands - Northern Fall

5

3

64.16

Victorian Midlands

Central Victorian Uplands

16

8

178.51

Goldfields

5

2

24.79

Murray Mallee

9

2

722.64

Wimmera

3

1

50

Riverina

Murray Scroll Belt

5

1

243

Murray Darling Depression

Wimmera

1

1

25

Riverina

Victorian Riverina

5

3

178.48

Victorian Midlands

Central Victorian Uplands

2

1

0.056

Goldfields

11

7

443.93

NSW South Western Slopes

Northern Inland Slopes

14

6

226.9

South Eastern Highlands

Highlands - Northern Fall

1

1

8.15

Victorian Midlands

Central Victorian Uplands

3

1

5.2

South East Coastal Plain

Gippsland Plain

2

1

4.3

South Eastern Highlands

Highlands - Southern Fall

13

5

33.89

South East Coastal Plain

Gippsland Plain

22

7

339.93

South Eastern Highlands

Strzelecki Ranges

3

2

33.04

Murray Darling Depression

Wimmera

1

1

11.36

Victorian Midlands

Goldfields

2

1

10.88

Greater Grampians

6

1

15.2

169

73

3,237.43

Mallee

North Central

North East

Port Phillip & Westernport

West Gippsland

Wimmera

Murray Darling Depression

Total

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Threatened species conservation Twenty-one additional records of threatened flora and 90 additional records of threatened fauna were collected from Trust for Nature covenants and properties in 2011-12, increasing the Trust’s knowledge of threatened species present on those properties. In partnership with landowners, committees of management, Friends groups and other agencies, Trust for Nature also contributed actively to the conservation of many threatened species of native plants and wildlife through activities such as habitat protection and restoration, and ecological management and pest control. Recovery of the Gorae Leek-orchid Trust for Nature worked with the Victorian Department of Sustainability and Environment, the Glenelg Hopkins Catchment Management Authority and a private landowner to develop a recovery program for the nationally endangered Gorae Leek Orchid (Prasophyllum diversiflorum). The orchid is found at only six sites, all in south-western Victoria. A covenanted property contains the largest area and number of plants. A study of the orchid identified the major threats to be weeds, grazing and trampling, and altered management and hydrological regimes. A recovery plan using fire and comprehensive weed control is now underway to reduce those threats and to enable the natural proliferation of the orchid population. As part of the project, the Department of Sustainability and Environment and Trust for Nature surveyed a nearby covenant featuring the same vegetation community and discovered an encouraging sight – a new population of Gorae Leek Orchids. For details of the Trust’s achievements in 2011-12 on the conservation of threatened native plants and wildlife, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au Protected areas management Ecological management activities were carried out on 91 properties throughout 2011-12 supported by Trust for Nature’s ongoing stewardship services. Stewardship services included the preparation of management plans; monitoring; support of pest, animal and plant control and revegetation and restoration activities. In addition, Trust for Nature developed its Land Management Innovation Fund, supported by donations to the Trust’s Christmas and End of Financial Year appeals. The Fund has supported a number of ecological management projects such as trialling new management techniques, enhancing wildlife habitat and encouraging the regeneration of threatened plant species. Wetland restoration in the North East The Lower Ovens River Floodplain and Boorhaman Plains Wetland project, now in its third year, aims to protect and restore remnant wetlands of the area.  The landscape includes the nationally significant Black Swamp and Lower Ovens River.  As 90 per cent of the area’s wetlands, and the most threatened wetland types, occur within or are bounded by privately owned land, Trust for Nature has been able to use its private land conservation expertise to negotiate 28 landowner agreements to protect 30 wetlands.  In 2011-12, 154ha of wetland habitat was protected and restored. Vegetation buffer establishment, revegetation and wetland protection over 518ha has been achieved throughout the life of the project.  Actions to improve the ecological management of wetlands, including modifying livestock grazing, are allowing natural regeneration of wetland plants and overall wetland health throughout the area.

For details of the Trust’s land management activities in 2011-12, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

Research support Trust for Nature’s properties are often used for research and monitoring projects conducted by other institutions, and Trust staff provided input into the development or implementation of research projects as industry partners or members of reference committees in 2011-12. La Trobe University provided invaluable, ongoing support to the Trust’s research capacity in 2011-12 by supporting the Trust’s Conservation Science Coordinator as an honorary research fellow in the School of Life Sciences. In 2011, more than 20 scientists from the Bush Blitz team spent 10 days at Neds Corner Station to survey the property for new species. A new species of truffle was discovered. The Bush Blitz scientists will send information on the outcome of the survey as they review their specimens up to 18 months after the event. For details of the Trust’s research activities in 2011-12, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

Partnerships As part of the Trust’s commitment to landscape-scale conservation, it has been a long-term advocate and supporter of Conservation Management Networks. The Trust’s Chief Executive Officer chaired the statewide Conservation Management Network Advisory Group in 2011-12, and Trust staff were actively involved in nine Conservation Management Networks across Victoria. The Trust is a part of the Victoria Naturally Alliance, an alliance of nine environment groups that work together to better understand the causes of biodiversity loss and to find solutions to reverse this loss. For details of the Trust’s partnership activities in 2011-12, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

Public policy contribution In the last twelve months, the Trust has continued to develop its public policy capacity to improve operations, and contributed several policy initiatives. The Trust provided a private land focus to national landscapescale conservation policies and worked with other covenanting bodies to continue the development of the recently-established Australian Land Conservation Alliance; reviewed its own covenant and stewardship services policies; and was involved in eco-market policy development including the Australian Government’s Carbon Farming Initiative. For details of the Trust’s public policy activities in 2011-12, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

Annual Report 2011-12

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Com munit y engagement achie v ements Trust for Nature works with communities to achieve its private land conservation vision and also to provide opportunities for the enjoyment and study of nature. The Trust is committed to assisting all people to protect biodiversity on their land. Trust for Nature strives to reconnect people with nature and work proactively within Victorian communities to share information and to learn more about how it can contribute to the conservation of native plants and wildlife on private land. Events In 2011-12, Trust for Nature held a number of different events across Victoria for people and communities interested in private land conservation. The aim of these events was to enable people to learn about and experience nature firsthand, and to encourage them to get involved in caring for their local natural habitats. Bush Business Breakfasts Trust for Nature has continued its Bush Business Breakfasts, which aim to connect Melbourne-based people with the Trust. The first breakfast’s speaker was Wade Davis, an Explorer-in-Residence from National Geographic USA, who was in Australia courtesy of The Nature Conservancy. The second breakfast, themed ‘Women in Conservation’ was held in the week of International Women’s Day. Both events were a great success and we thank all that supported these functions. Spring into Nature Spring into Nature is a program of public events on Trust-owned properties and privately-owned covenanted properties. Events usually involve a guided walk around a property, an opportunity to talk to landowners and Trust staff about management activities, and a chance to learn about regional native plants and wildlife. This year there were 17 Spring into Nature events held throughout Victoria, engaging 490 people. This was an increase on last year, when 350 people attended 12 events.

Getting out into nature In spring 2011, Trust for Nature officers in the Goulburn Broken held four Spring into Nature events, welcoming 175 people onto several properties in the region. Two events were held in native woodlands and grasslands, where a variety of wildflowers were in bloom, and participants could see first-hand many birds and other animals in their natural habitat. The third event took place in the practically untouched Trust-owned Burge Family Reserve property. The final event included a rare chance to walk the woodlands at night to spotlight and check nest boxes for inhabitants.

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1000th covenant celebrations In 2011, Trust for Nature held a series of celebratory events across the state to bring covenantors together to mark the registration of the 1000th covenant. Six events were held, attended by more than 450 people. Other events Over 2011-12, each region held a number of seminars, workshops, working bees and open days for community members, groups and corporations. These events offer insight into and involvement in private land conservation. Two Board Associates Lunches in 2011-12 helped keep former Trustees informed about the strategic direction and activities of the organisation. The Trust continued its support of the Wimmera Biodiversity Seminar; undertook two visits to Neds Corner Station with some major supporters, undertook a field trip to learn about Southern Brown Bandicoot protection on the urban fringe of Melbourne that was attended by some of the Trust’s major supporters; added a presence at the Sustainable Living festival in partnership with the Nature Conservation Trust of NSW and the Tasmanian Land Conservancy, and participated in the Eureka Tower Farmers Market. For details of events held by Trust for Nature in 2011-12, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

Education Trust for Nature sees enormous potential in the use of Trust-owned properties to inspire and educate students, as well as providing natural areas in which students can undertake research and management projects. During 2011-12, Trust for Nature also facilitated many visits to covenanted properties for education purposes. For details of education activities held by Trust for Nature in 2011-12, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

Internships Throughout the year, Trust for Nature provided several internship opportunities. While gaining valuable insights into and experience in conservation practice, the interns also produced work of great use to the Trust. For details of internships at Trust for Nature in 2011-12, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

Volunteers Trust for Nature has benefited from the involvement of many generous and committed individuals throughout 2011-12. Volunteers at the Trust contributed skills and knowledge to assist the organisation. This is in addition to the time invested by the many Committees of Management who care for several of the Trust’s properties.

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Indigenous heritage Trust for Nature encourages active partnerships with Indigenous groups recognised as Traditional Owners. The Trust works actively with Indigenous communities across Victoria and is committed to strengthening its engagement with Indigenous communities into the future. Protection of Indigenous culture Trust for Nature received a grant in 2011 to protect Indigenous cultural heritage and artefacts at Neds Corner Station through the Australian Government’s Indigenous Heritage Program. Indigenous workers were employed at the station to erect a 7km feral-proof fence around areas of Indigenous cultural heritage and artefacts. This protects remnant vegetation from feral animals such as rabbits, which in turn protects remaining cultural artefacts from erosion. The employees received training and experience in land management techniques, including fencing, rabbit control and revegetation. Neds Corner Station now has a website where regular updates on projects are posted and a description of the property, including its Indigenous heritage, can be found.

For details of Indigenous involvement in Trust for Nature projects in 2011-12, visit the Annual Report section of the Trust for Nature website: www.trustfornature.org.au

Annual Report 2011-12

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Cor por ate support a nd de v elopment The Trust aims to continually develop its capacity to deliver high-quality conservation services. In 2011-12 the Trust began a number of strategic initiatives as well as enhancing its ongoing support services. These are set out in this section. Development In 2011 – 12 Trust for Nature carried out two appeals: the Christmas appeal in December 2011 and the End of Financial Year appeal in June 2012. Both appeals aimed to raise funds for the Trust’s Land Management Innovation Fund. The Trust thanks all who have supported these appeals. Trust for Nature also remains grateful to the supporters of its Bush Protection Program. Following a review of bequest funding use in the last financial year, the Trust implemented a strategy to ensure that bequests assist it in achieving the strategic goals of the organisation as well as honouring the vision of the donor. Bequest funds have supported: • the development of the Statewide Conservation Plan • a review of the Trust’s business model; and • the enhancement of the Trust’s online connection with covenantors. The Trust thanks all who have made a bequest or are considering making a gift to Trust for Nature in their wills.

Wanliss Bequest In the 1980s, Dr Marion Wanliss left a substantial bequest to Trust for Nature for the conservation of native plants and wildlife. In June 2011, the Trust for Nature Board decided to invest some of the funds into developing a foundational plan to provide an overarching scientific framework for ongoing conservation activities. The Statewide Conservation Plan was developed with other leading conservation organisations and draws from the best available science to help Trust for Nature with its private land conservation priorities. The development of Trust for Nature’s Statewide Conservation Plan is an important investment in the future of Victorian conservation that reflects Dr Wanliss’ vision and passion.

Incident Management Framework In 2011, Trust for Nature commenced the development of a framework based on an adaptation of the Australian Inter-service Incident Management System (AIIMS). It is anticipated that this framework will be adopted and implemented in late 2012. Responding to emergencies or incidents that require professional and timely action is not a common part of the Trust’s business, but events such as the 2010 locust plague demonstrate that there will always be events requiring effective and efficient management. While the Trust did its best to coordinate and manage staff and resources during the plague, it was decided that a formal Incident Management Framework would assist in better planning and implementation concerning future incidents of this type. Business Modelling Project The private land conservation outcomes Trust for Nature has achieved in recent years have largely resulted from a successful alignment with 10 Catchment Management Authority interests across Victoria. This success has also brought challenges for the Trust in how it funds its own priorities and stewardship program. With Catchment Management Authorities recently undertaking a six-yearly review of their Regional Catchment Strategies, and the Trust’s Statewide Conservation Planning project underway, Trust for Nature has taken the opportunity to invest significant time, effort and resources into reviewing its service delivery and funding arrangements through a Business Modelling Project. A key aim of this project has been to ensure the organisation continues to prioritise strategic private land conservation and reinforce Trust for Nature’s resilience and sustainability for the future. 

Communications Trust for Nature increased its media presence, with articles in 56 newspaper and online media outlets. In 2011-12 the Trust reduced the number of Conservation Bulletins printed and moved to greater online communication through social media, its website and 21 e-newsletters. This financial year the Trust initiated a regular quarterly news email to its Committees of Management to share information among the Committees and to keep Trust staff abreast of Committee work.

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Pa rtner s Trust for Nature is grateful to all partners and donors for supporting its work to protect native plants and wildlife on private land. The Trust acknowledges the many individuals, community groups, covenantors, associations, foundations and companies who continue to lend their support, both financial and otherwise, to Trust for Nature. The Trust thanks Norton Rose for on-going pro bono legal services. Trust for Nature wishes to express sincere gratitude to the following individuals and organisations that have made contributions to Trust for Nature in the 2011-12 financial year: Government departments and Statutory Authorities Australian Government Department of Sustainability, Environment, Water, Population and Communities – in particular the Caring for Our Country Initiative, the National Reserve System Program and the Indigenous Heritage Program Corangamite Catchment Management Authority

Committees of Management, Friends Groups, organisations and individuals that provide special assistance on Trust for Nature properties Burge Family Reserve Committee of Management Mervyn and Jenny Shaw Janet Hagen Shelagh Curmi Delphine Marsh Clarkesdale Bird Sanctuary Rob Brice Frank Carland Tim Cooke David Coutts Gavin Dorr Cath Grant

Clare Miller Grant Palmer Peter & Jenny Sedgwick Peter Thomson Bill Wheatherly

Dennis and Glenice Carmichael Mick and Liz Dexter Dog Rocks Committee of Management Bill Honey George and Lit Belcher and the Graham Bonney Dog Rocks Flora and Fauna David Head Sanctuary Peter Keays Alan Buchter John Cameron Craig Clutterbuck Peter Spear Elizabeth Clarke

East Gippsland Catchment Management Authority Glenelg Hopkins Catchment Management Authority Goulburn Broken Catchment Management Authority Mallee Catchment Management Authority North Central Catchment Management Authority North East Catchment Management Authority Port Phillip & Westernport Catchment Management Authority West Gippsland Catchment Management Authority Wimmera Catchment Management Authority

Friends of Harbury Ian and Elizabeth Fraser Robin Allison Jean Allison

Kate Walsh James and Margaret Grant

Local Governments of Victoria

David Harper and Margaret Lush and family

Melbourne Water

Peter Kelly

Native Titles Services Victoria Parks Victoria

Bungalook Conservation Reserve Graeme Lorimer

VicRoads

Graeme and Peter Mann

Victorian Catchment Management Council Victorian Department of Business and Innovation Victorian Department of Sustainability and Environment and its Ngurta Werkitya Indigenous Traineeship Program Victorian Department of Primary Industries Victorian Environmental Assessment Council

The Meerlieu Reserves Committee of Management Don Love Barbara Brunyee Craig Bush Lindsay Grant Andrea Bush Louie Maher Mt Elephant Committee of Management Gert Stammberger Jane French Geoffery Henderson Gary French Val Lang AO John Hale Lynnette Stammberger Rod Eldridge Chris Lang Judith Sarto Lesley Brown Laweton Frenc Norma Grant Mt Elgin Swamp Committee of Management Clive Crouch Janet and Ken Voight Wayne Donnell Geoff and Cathy Moll Kent and Jennifer Goldsworthy Gary and Robyn Clark

Annual Report 2011-12

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Pa rtner s C ontinued

Nillumbik Shire, for the management of the Eltham Copper Butterfly Reserve

Kowree Farm Tree Group

Ocean Grove Park Committee of Management Colin Atkins Phil Dix Murray Waugh Neil Wallace Leigh Holloway David Lidgett Betty Glasgow Mrs. Shelley

McKiernan Don Pietrapertosa Terry Riordan

Mammal Survey Group of Victoria Inc.

Pallister’s Reserve Committee of Management Peter Carrucan Trevor Kennedy Peter Bolte Elanor Davey Margaret Whitehead Lance Moulden

Anthony Leddin Kock Bromell

Uambi William and Judith Harper

Millewa Community Pioneer Forest and Historical Society Murray-Darling Freshwater Research Centre Nargundy Pty Ltd

The East Gippsland Landcare Network The East Gippsland Rainforest Conservation Management Network The Gippsland Plains Conservation Management Network The National Trust of Australia (WA) The Nature Conservancy The Nature Conservation Trust of NSW

The Norman Wettenhall Foundation Nhill Sun Moth Reserve Committee The Victoria Naturally Alliance of Management Wedderburn Conservation Queensland Department of Management Network Environment and Resource Management

Lindsay Smith Sue Smith Brian Snape Diana Snape Jonathan Starks Cliff Unger

Werrimull Landcare group

Tasmanian Land Conservancy Educational institutions Bendigo Regional Institute of TAFE Charles Sturt University Deakin University La Trobe University Monash University

Therese Stirling

RMIT University

Uralla Nature Reserve Committee of Management Baw Baw Shire Council Wanderslore Sanctuary Committee of Management and the Friends of Wanderslore Geoff Durham Lincoln Kern Grif Ward Pat O’Shaughnessy Steve Fernee Judith Bond Gerald and Doug Williamson And all those who have volunteered to help on Trust properties, from weeding to building fences and helping out with bookkeeping. Trust for Nature’s conservation reserves would not provide the refuge for natives plants and wildlife that they are today without your hard work. Thank you. NGO and not-for-profit partners and fellow members of the Australian Land Conservation Alliance Fairley, Bael Bael and Sandhill Birdlife Australia and its regional branches Friends of the Grey-crowned Babbler

Buloke and Northern Grampians Landcare Network

Grampians to Little Desert Biolink

Bush Heritage Australia

Greening Australia (Victoria)

Central Victorian Biolinks Project

Heathmont Bushlink

Connecting Country

Kara Kara Conservation Management Network

Earthwatch

Mildura Aboriginal Corporation

Nature Foundation SA

Ralph Illidge Sanctuary Committee of Management Shirley Duffield Maureen Finnigan Janice Trenair Frank Duggan Kevin Sparrow Peter Schultz Lauren Eddy Lilly Wilkinson Snape Reserve Committee of Management Darryl Argall Clive Crouch Mary Argall Clive Eastwood Ian Barry Gillian Eastwood Adam Blake Ian Flux Greg Bourke Terry Lynch Fiona Copley John Rocke

Landcare Australia

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The University of Melbourne, the University’s Law School and the Graduate School of Business and Economics University of Queensland Corporate partners bankmecu

Callista DLA Piper Green Corps

Greenhouse Balanced Mildura Brewery Norton Rose

Volunteers who have given significant time to Trust for Nature 2011-12 Aimee Lenne Ed and Susie McNabb Malcolm Just Amelia Kuveke Emma Baptie Michael Butcher Catherine King Frank Wallace Murray Orr Clive Crouch Herbert Vinco Nicola Hamilton Diana Gibson Jenny Trethewey Oliver Smith Gillian Vesty John Bate OAM Sarah Maclagan Mark and Janet John Clarke Tanja Chester Schapper Kim Dudson

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M ajor donor s Trust for Nature continues to rely on its donors to support its program on private land across Victoria. The Trust would like to express its condolences to the family and friends of those supporters who passed away this year. Trust for Nature also thanks the families and friends of John Christopher Reid and Claire Allen Roberts, who made donations in their memory. Their extraordinary contributions will help protect threatened Victorian habitat for future generations. The Trust would also like to once again acknowledge the passing of Marion Belfrage Field, John and Jenny Barnett and Phyllis Evelyn Oates, from whom it received a gift through each of their wills during 2011-12. Trust for Nature was also thought of during times of celebration, and is grateful to have received gifts in celebration of Heather and Kornel Stewart’s wedding and Rachael Hart’s birthday. Trust for Nature pays tribute and is extremely grateful to all of our generous donors, especially those who have contributed $1,000 in 2011-12.

The Trust Company, trustee of the Fred P Archer Charitable Trust

Roger and Prue Brown

Legal Services Board Limb Family Foundation Lord Mayor’s Charitable Foundation Mick Lumb OAM and Mrs Judy Lumb Margaret Lush and David Harper AM Nancy P Marriott Ruth Marriott John Marsden Ruth McKenzie David McLatchie Lynton and Susan Morgan

Peter and Terryl Read

Barbara Baird

Kirsty Bennett

Koreen Conservation

Howard and Jill Plowright

Angelic Accounting

The late John and the late Jenny Barnett

H and K Johnston Family Foundation

The late Phyllis Evelyn Oates

Rikki Andrews

bankmecu

Bill and Mrs Carol Holsworth Ian Hopkins

Reece The Estate of John Christopher Reid Lisa Remias Jennifer Rolland and Euan Moore Margaret Ross AM and Ian Ross

Vanessa Craigie

Don Saunders PSM

Peter and Helen Curtis

Roslyn Semler

Bjarne K Dahl Trust

Brian Snape AM and Diana Snape

June Danks

Souter-Foale Family Trust

Kel and Rosie Day

June Stringer

Stefano and Donna de Pieri

Marten and Angela Syme

Geoff Durham OAM and Judy Durham

David Thomas Challenge and The Nature Conservancy

The late Marion Belfrage Field

Trust for Nature Foundation: John Bate OAM, Michael Butcher, Janet Schapper

Belinda Findlay Peter Furneaux Sylvia Geddes Geoffrey Giles Camilla and Joby Graves Lesley Griffin Hancock Natural Resource Group Geoff and Helen Handbury Foundation

Tim Walker Geoff Wescott Elizabeth Xipell Anonymous (8) Trust for Nature is indebted to all of its supporters for their contribution toward conservation of Victoria’s native plants and wildlife on private land.

Tim and Rachael Hart The late Alan Henry Estelle Hewston Elvyne Hogan Annual Report 2011-12

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Fina nci a l ov erview

Current year financial overview For 2011-12 the Trust had a net result surplus of $1,218,801 (2010-2011: a deficit of $116,659). Overall revenue levels were higher than last year however there were variations across sources. Regional project activity levels were similar to the previous year although government grants for landowners were lower, which is also reflected in lower covenant program expenditure. Overall philanthropic income was higher due to an increase in bequests and grants from philanthropic foundations. General untied philanthropic donations were slightly lower. The Trust will celebrate its 40th anniversary this year and during 2011-12 commenced three significant projects to ensure that it continues working for sustainability. These are the development of a statewide conservation plan to guide our strategic approach to private land conservation across the state, a review of the organisation’s service delivery and funding arrangements, and the infrastructure and IT systems required to effectively support our services. The Trust is mid way through its current three-year internal audit program which progressively reviews processes and internal controls for our major functions. During the year our covenant and stewardship program and revenue recognition systems were reviewed. In addition, the Trust took advantage of an opportunity to have a quality review undertaken of its risk management framework. Much work has been done to develop our framework over recent years and this review will help us integrating risk management through the organisation. There are no events subsequent to the balance date that will affect materially the future performance of the organisation. Table 11: Five-year financial summary 2012

2011

2010

2009

2008

Administration grant

571,193

597,924

596,700

585,000

570,925

Government grants

3,218,163

3,712,516

2,228,976

2,326,728

1,803,986

0

155,067

2,584,373

0

0

390,095

509,120

441,946

309,431

713,430

Bequests

1,958,294

100,000

950,010

234,714

0

Interest and dividends

1,095,956

1,043,988

953,230

992,760

704,046

Other income

573,729

367,735

475,099

423,614

332,238

Total income

7,807,430

6,486,350

8,230,334

4,872,247

4,124,625

Salary and associated expenses

3,796,055

3,239,292

2,571,782

1,944,873

1,586,652

907,429

1,500,012

678,381

476,917

749,958

0

184,330

915,218

0

0

Other expenses

1,885,145

1,679,375

1,460,122

978,155

711,430

Total expenditure

6,588,629

6,603,009

5,625,503

3,399,945

3,048,040

Net result from transactions

1,218,801

(116,659)

2,604,831

1,472,302

1,076,585

Total assets

53,999,606

51,837,670

53,158,378

48,058,284

40,792,205

Net assets

34,704,644

33,849,229

42,444,285

39,587,030

38,221,781

Government grants used for property acquisitions Donations & appeals

Covenant program expenditure Cost of land surrendered to crown

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Trust for Nat ur e boa r d a nd employ ees Trust for Nature is overseen by a Board of Trustees, appointed by the Governor-in-Council on the recommendation of the Minister administering the Victorian Conservation Trust Act 1972. Patron The Honourable Alex Chernov, AO, QC, Governor of Victoria (1 July 2011 to 30 June 2012) Camilla Graves, Chairman BA, DipEd, Grad Dip AppSc (Horticulture), Grad Dip App Finance, MAICD Camilla joined Trust for Nature’s Board in 2004 and became the Chairman in 2010.  Camilla has a background in primary production and has worked in education, financial markets (UK), catering, tourism, and horticulture.  Anthea Hancocks, Deputy Chairman BSc, MA, MBA, MAICD Anthea has an extensive background in business development, communications, education, strategy and relationship and services marketing. She is currently the Chief Marketing Officer for law firm Herbert Geer where she is responsible for the firm’s brand, positioning, marketing and business development. Prior to this role, she managed the office of the Chief Operating Officer of the National Australia Bank. She has worked as General Manager, Corporate, for the Melbourne Business School, responsible for leadership, strategy and management programs with over 100 top Australian and international companies, and before that was the National Business Development Director for Deloitte. For 10 years she lived in the USA where she was an Associate Professor for Museum Studies at the University of Arizona. Anthea is also the Chair of Earthwatch Australia and a Director of YMCA Victoria. Rikki Andrews BSc (Botany), Grad Cert Env Mgt, MSocSc (Philanthropy and Social Investment) Rikki has a background in sales, business development and grant-making within trustee companies. In particular, she has experience in assisting high net-worth individuals and their advisors on choosing the best philanthropic option to suit their giving requirements. She is currently working with a private family foundation. In 2010, Rikki was invited to be a sessional lecturer for the Asia-Pacific Centre for Social Investment and Philanthropy’s new Master of Commerce program. She is also employed as a seminar developer and presenter at Philanthropy Australia, the peak body for philanthropic organisations in Australia. Sylvia Geddes BA (Hons) Sylvia’s close association with Trust for Nature arose from her work in philanthropy, particularly as the CEO of The RE Ross Trust, from which she retired in 2008 after eight years. Prior to this she was Manager, Charitable Services, ANZ Trustees. Sylvia’s career has also encompassed working at senior Australian and Victorian public service levels in various areas of policy and program management and managing her own consultancy business. She has served on state and Australian Government advisory committees for vulnerable children, young people, families and those who are homeless and was a council member of the Australian Red Cross Victoria, including

a period as Vice-Chair. Sylvia is also a Trustee of the Board of the State Library Victoria. Dr Gregory Moore BSc (Ed), BSc (Hons), MBA, PhD From 1988 to 2007 Greg was the principal of Burnley College in the Faculty of Land and Food Resources at the University of Melbourne. Prior to this he was senior lecturer in Plant Science and Arboriculture from 1979. He was Head of the School of Resource Management at the university from 2002 to 2007. Greg was inaugural president of the Society of Arboriculture, Australian Chapter and contributed to Australian Standards in pruning and amenity tree evaluation. He has published more than 100 papers and articles, written a book on tree biology and management, and was the inaugural president of Arboriculture Australia. Lisa Gay BA, LLB Until 2010, Lisa was General Counsel and Managing Director of the Goldman Sachs JBWere Group. Lisa is currently Chairman of the ASIC Markets Disciplinary Panel, which is the main forum for hearing disciplinary matters against stock market participants for breaches of the Market Integrity Rules. Lisa is also a Director of Flora & Fauna International (Australia) and a member of ASIC Market Supervision Advisory Panel. Dr Rik Thwaites BSc, PhD Rik is a senior lecturer in ecotourism, a social scientist and a member of the Institute for Land, Water and Society at Charles Sturt University. Trained as a geologist, Rik worked as a glaciologist with the Australian Antarctic Division before turning his hand to photography and photojournalism. Rik has been an active environmental advocate for many years. Following a consultancy to develop a strategy for Sustainable Development for Albury Wodonga, Rik embarked on a PhD to study land degradation and sustainable land management on the steppe grasslands of Inner Mongolia, China. He has been part of several projects and consultancies on ecotourism, and protected area and natural resource management in local and Indigenous communities. Rik is currently the Sub Dean (International) of the Faculty of Science at Charles Sturt University. Rod Gowans BSc, Dip App Sc Rod Gowans joined the Board in late 2007. He has extensive experience in the management of natural resources on public and private land. In 2007 he was awarded the Public Service Medal for outstanding public service to the conservation of biodiversity and to the management of national parks. He has worked in various executive leadership roles responsible for the management of parks and reserves and the conservation of marine and terrestrial biodiversity. He has both national and international experience in programs for nature conservation and natural resource management. Rod has served on a number of management boards in Victoria relating to natural resource management.

Annual Report 2011-12

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Trust for Nat ur e boa r d a nd employ ees Dr Mick Lumb BAgSc, PhD Mick has had an extensive career in government and natural resource management and in 2006 was awarded the Order of Australia Medal. Mick is the principal of an environmental services consulting firm that specialises in land use policy and strategy development with a strong focus on climate change. During his years in government he was the Director of the Land Conservation Council, various planning, conservation and natural resources divisions, and finally, the Office of the Environment. Mick is a former Chair of the Port Phillip & Westernport Catchment Management Authority and a former member of the Central Coastal Board.

Board and committee meetings Trust for Nature’s Board of Trustees met four times in the 2011-12 financial year, as did the four committees. Attendance details below refer to the number of meetings (of a Committee of which they are a member) a person attended, alongside the number of meetings the person was eligible to attend as a member of that Committee. Attendance by each person at committee meetings of which they are not a member is also shown.

Table 12: Board and committee meeting attendance

Board meetings

Audit & Risk committee meetings

Fundraising committee meetings

Conservation committee meetings

Finance & Investment committee meetings

Camilla Graves

5/5

5/5

4/4

4/4

4/4

Anthea Hancocks

3/5

3/5

3/4

-

-

Rod Gowans

3/5

-

4/4

4/4

-

Sylvia Geddes

5/5

5/5*

-

4/4

4/4

Dr Greg Moore

5/5

-

-

4/4

4/4

Rikki Andrews

3/5

2/5*

4/4

4/4

-

Lisa Gay

5/5

5/5

4/4

-

3/4

Dr Mick Lumb

5/5

4/5

-

3/4

-

Dr Rik Thwaites

3/5

4/5

-

4/4

-

Binda Gokhale (external member of the Audit & Risk Committee)

3/5

*Includes attendance by each person at Committee meetings of which they are not a member.

24

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Trust for Nature values its employees. In the regions, its staff manage and deliver private land conservation initiatives throughout the state. And in Melbourne, Trust staff work strategically to support, promote and assist in the services and systems critical to its conservation programs. Throughout 2011- 12 Trust for Nature sought to uphold its commitments to the principles of the Public Administration Act 2004. Trust for Nature staff abide by the organisation’s values and the Code of Conduct for Victorian Public Sector Employees.

Table 14: Trust for Nature staffing statistics by gender 30 June 2012

30 June 2011

Females

29

26

Males

33

32

Total

62

58

Women Trust for Nature prides itself on providing a fair and equitable workplace. In 2011 - 12 Trust for Nature employed 29 women out of 62 staff. During the reporting period the Trust for Nature Board of Trustees had five women out of a total of nine members.

Chief Executive Officer Victoria Marles, BA, Dip Ed, Dip Arts (Dramatic Arts), LLB (Hons), LLM Senior Officers Regional Operations Manager, Peter Moulton, BSc (1 July 2011 – 29 February 2012) Acting Regional Operations Manager, Chris Lindorff, BSc, BForSc (Hons) (1 March 2012 – 30 June 2012) Chief Finance Officer, Greg Bowers, BBus, CPA Major Projects Manager, Chris Cook, BEng, MA (Env Management) Development Manager, Justin Glass, BSc (Hons), Grad Dip (Env Planning), MA (Env Studies) Table 13: Trust for Nature staffing statistics by full-time equivalent 30 June 2012

30 June 2011

34.6

34.9

Commercial services

2.6

2.3

Fundraising

3.2

3.2

Executive and support, policy

7.0

7.7

Other – reserve projects

3.1

0.7

Australian Land Conservation Alliance

2.0

0

52.5

48.8

Regional program staff

Total

Annual Report 2011-12

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

orga nisationa l ch a rt

26

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Stat utory compli a nce Occupational Health and Safety Trust for Nature is well advanced in developing a Health and Safety Management System in accordance with the provisions of Australian Standard AS/NZS 4801:2001. Utilising this Standard as a benchmark towards health and safety, continuous improvement has proven to be the best option both in terms of practicality as well as being integrated into the existing Management Systems, including the recently launched Intranet. Having a CEO and Senior Management of an organisation demonstrating commitment to the principles of health and safety is critical to success in developing and implementing a Health and Safety Management System. The commitment demonstrated by the Health and Safety Committee has been a major factor in the Management System development and implementation. During the financial year, the Health and Safety Committee developed a document that describes the Health and Safety Objectives and Key Performance indicators. In brief the Key Objectives are: • Foster development of a safety culture across the organisation. • Build upon the existing OHS Management System to achieve a robust OHS Management System. • Strengthen the OHS Risk Management program.

Office-based environmental data Trust for Nature continues to pursue sustainable measures by implementing its Resource Smart Environmental Strategy. In 201112 the Resource Smart Team further improved the policy and action plan, working toward set targets. To deliver on targets identified in the Resource Smart Strategy, the Resource Smart Team proposed a budget for the 2012-13 financial year. Successful in the budget proposal, the Resource Smart Team will progress its initiatives to provide more meaningful outcomes organisation-wide. Overview of 2011-12 achievements: • Executed and promoted quarterly campaigns to staff through various communication methods, including intranet, online newsletter, posters and presentations at meetings. • Implemented KeepCup borrowing campaign. • Conducted regular lighting audits with the aim to delamp the Melbourne office. • Provided training to regional staff about printer cartridge recycling and reuse facilities. • Organised an excursion to Sustainability Victoria to promote sustainable initiatives to staff. • Established and promoted a list of sustainable catering companies. • Implemented printing monitoring software to analyse printing use.

• Roll out OHS and Risk Management program wide.

• Expanded recycling initiatives-cork, mobile recycling, cartridge and battery recycling.

These objectives and accompanying key performance indicators became effective 1st July 2012. Trust for Nature’s occupational health and safety performance against key indicators for the financial year is illustrated in Table 15. Table 15: Occupational Health and Safety statistics for 2011 – 12 Number of OHS Committee meetings

8

Number of reported injuries received

0

Number of recorded injury reports progressing to WorkSafe claims

0

Number of Comprehensive Risk Assessments undertaken

3

Number of policies/procedures developed

15

Annual Report 2011-12

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Stat utory compli a nce C ontinued

Table 16: Details of consultancies over $10,000 Total approved project fee (excl GST)

Expenditure 2011-12 (excl GST)

Future expenditure (excl GST)

Consultant

Purpose

Start date

End date

Documation Pty Ltd

Advice on IT systems upgrade

3-Jul-11

30-Jun-12

25,200

25,200

..

Deloitte

Review project documentation

15-Feb-12

30-Jun-12

15,000

7,500

7,500

The Planning Group

Planning application support

1-Apr-11

30-Jun-12

14,025

14,025

..

BeechTre Management Consulting

Strategy & Modelling advice

21-May-11

30-Jun-12

20,190

20,190

..

Details of consultancies under $10,000 In 2011-12, the total for four consultancies engaged - where the total fees payable to the consultants was less than $10 000 was $22,503. All figures exclude GST. Major contracts No major contracts (greater than $10,000,000) were entered into during 2011 – 12. Freedom of Information (FOI) Trust for Nature is considered to be a ‘Government Agency’ under the Freedom of Information Act 1982 and is required to comply with the procedures that have been prescribed under which members of the public may gain access to information held by agencies. A decision to release information is made by an Authorised Officer. Trust for Nature has determined that its authorised officer is the Department of Sustainability and Environment’s Freedom of Information Manager, Ms. Deidre Egan (03) 9637 8575. A valid request must be made to the Freedom of Information Officer in writing, accompanied by a $25.10 application fee (as at the time of this report’s publication) and provide such information as is reasonably necessary to enable the documents to be identified. In the 2011–12 reporting period there was one request for information under the Freedom of Information Act 1982. Disclosures may be made to the following parties: Greg Bowers Chief Finance Officer Trust for Nature 5/379 Collins Street Melbourne, Victoria 3000 Australia Phone: (03) 8631 5888 Fax: (03) 9614 6999 Email: gregb@tfn.org.au

Employment and conduct principles During 2011­–12 Trust for Nature advertised 16 positions in which selection was made on applying merit and equity principles in line with the standards of the State Services Authority.  Performance and Development Plans for staff incorporated the public sector values.  During the financial year, staff attended presentations on the prevention of unacceptable workplace behaviour, which incorporated issues relating to discrimination, bullying, and harassment. These sessions also provided staff with information on the Charter of Human Rights. Compliance with the Building Act 1993 Trust for Nature meets the compliance conditions of the Building Act 1993 with respect to the building and maintenance activities of buildings owned by Trust for Nature. Compliance with the Whistleblowers Protection Act 2001 The Whistleblowers Protection Act 2001 came into effect on 1 January 2002. The Act is designed to protect people who disclose information about serious wrongdoing within the Victorian Public Sector and to provide a framework for the investigation of these matters. No disclosures have been made to, or referred by, Trust for Nature during the reporting period. Peter Moulton Strategic Projects Advisor Trust for Nature Level 5, 379 Collins Street Melbourne Victoria 3000 The Ombudsman Victoria Level 9, 459 Collins Street (North Tower) Melbourne Victoria 3000. Telephone: 9613 6222 Toll free: 1800 806 314 Email: ombudvic.ombudsman.vic.gov.au

The Ombudsman Victoria Level 9, 459 Collins Street (North Tower) Melbourne  Victoria  3000 Telephone: 9613 6222 Toll free: 1800 806 314 Email: ombudvic.ombudsman.vic.gov.au

Refer to page 41 for Trust for Nature’s Whistleblower Protection Policy

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National competition policy Trust for Nature complies with the Competitive Neutrality Policy Statement issued in June 1996. Victorian Industry Participation Policy (VIPP) Departments and public bodies are required to apply VIPP in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria. Trust for Nature has not commenced or completed any contracts during 2011 - 12 to which VIPP applied. Audit and Risk Committee In 2011-12, Trust for Nature’s Audit and Risk committee comprised of the following members. All members of the Committee are independent.

Statutory compliance – availability of other information Other information to be made available upon request (subject to the Freedom of Information Act 1982) is as follows: • A statement that declarations of pecuniary interests were duly completed by all relevant officers. • Details of shares held in subsidiaries. • Details of publications produced by Trust for Nature and how these can be obtained. • Details of changes in prices, fees, charges, rates and levies charged. • Details of any major external reviews. • Details of major research and development activities.

Mick Lumb (Chairman)

• Details of official overseas visits.

Lisa Gay

• Details of major promotional, public relations and marketing activities.

Anthea Hancocks

• Details of assessments and measures undertaken to improve occupational health and safety.

Rik Thwaites

• A general statement on industrial relations, and details of time lost through industrial accidents and disputes.

Binda Gokhale (external member) Camilla Graves

• A list of major committees.

Risk management attestation I, Camilla Graves, certify that Trust for Nature (Victoria) has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and that an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The audit committee verifies this assurance and confirms that the risk profile of Trust for Nature has been critically reviewed within the last 12 months.

Camilla Graves

Chairman 1 September 2012

Annual Report 2011-12

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Disclosur e Index The Annual Report of Trust for Nature is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Trust’s compliance with these statutory disclosure requirements. Requirement

Requirement

Disclosed

Sign of requirements - Declaration made by a member of the responsible body

5

FRD 22C

Objectives, functions, powers and duties

6

FRD 22C

Manner of establishment and responsible Minister

6

FRD 22C

Nature and range of services provided

6

FRD 22C

Operational and budgetary objectives

11-12

FRD 22C

Summary of the financial results

22

FRD 22C

Major changes or factors affecting performance

22

FRD 22C

Subsequent events

22

FRD 22C

Significant changes in financial position during the year

22

FRD 22C & SD2.2(f)

Organisational structure

26

FRD 22C

Occupational health and safety policy

27

FRD 22C

Employment and conduct principles

28

FRD 29 & 22C

Workforce Data disclosures

25

FRD 15B

Executive officer disclosures

N/A

FRD 10

Disclosure index

30

FRD 25 & 22C

Victorian Industry Participation Policy disclosures

28

FRD 22C

Details of consultancies in excess of $10 000

28

FRD 22C

Details of consultancies under $10 000

28

FRD 12A

Disclosure of major contracts

28

FRD 22C

Application and operation of Freedom of Information Act 1982

28

FRD 22C

Compliance with Building Act 1993

28

FRD 22C

Statement on National Competition Policy

28

FRD 22BC

Application and operation of the Whistleblowers Protection Act 2001

28

FRD 24C & 22C

Reporting of office-based environmental impacts

27

FRD 22C

Statement of availability of other information

29

SD 4.5.5

Risk management compliance attestation

29

SD 4.2(g)

General information requirements

Entire document

Accountable Officer’s declaration SD 4.2(j) Charter and purpose

Financial information

Governance and organisational structure  

Other information

30

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Accountable officer’s, chief finance and accounting officer’s and chairman’s declaration The attached financial statements for Trust for Nature (Victoria) have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2012 and financial position of the Trust at 30 June 2012. At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 27 August 2012.

Greg Bowers Chief Finance Officer Trust for Nature

Victoria Marles Chief Executive Officer Trust for Nature

Melbourne

Melbourne

27 August 2012

27 August 2012

Camilla Graves Chairman Trust for Nature Melbourne 27 August 2012

Annual Report 2011-12

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

32

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Annual Report 2011-12

33


T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Trust for Nature (Victoria) Financial Statements Comprehensive operating statement for the financial year ended 30 June 2012

Notes

2012

2011

$

$

Continuing operations Income from transactions Grant income

2(a)

3,973,310

4,509,828

Interest on investments

2(b)

899,000

856,430

Dividends

2(c)

196,956

187,558

Donations

2(d)

2,348,389

609,120

Fair value of services received free of charge or for nominal consideration

2(e)

34,737

73,023

Other income

2(f)

355,038

250,391

7,807,430

6,486,350

Total income from transactions Expenses from transactions Employee benefits

3(a)

(3,796,055)

(3,239,292)

Depreciation

3(b)

(206,102)

(159,783)

Covenant program

3(c)

(907,429)

(1,684,342)

Payments from appeals and other reserves with specified purpose

3(d)

(507,699)

(70,982)

Other operating expenses

3(e)

(1,171,344)

(1,448,610)

(6,588,629)

(6,603,009)

1,218,801

(116,659)

Total expenses from transactions Net result from transactions (net operating balance) Other economic flows included in net result Net gain/(loss) on non-financial assets

4(a)

(11,958)

(63,374)

Net gain/(loss) on financial instruments

4(b)

(368,055)

154,101

(380,013)

90,727

838,788

(25,932)

Total other economic flows included in net result Net result Other economic flows – other non-owner changes in equity Changes in physical asset revaluation surplus

19

0

(8,005,415)

Changes to non-financial assets available-for-sale revaluation surplus

19

16,627

0

16,627

(8,005,415)

855,415

(8,031,347)

Total other economic flows - other non-owner changes in equity Comprehensive result

The comprehensive operating statement should be read in conjunction with the accompanying notes.

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Balance sheet as at 30 June 2012

Notes

2012

2011

$

$

Assets Financial assets Cash and cash equivalents

18

9,192,875

9,102,378

Receivables

5

1,429,003

931,021

Investments and other financial assets

6

21,703,922

20,015,319

Other assets

7

84,929

123,843

32,410,729

30,172,561

Total financial assets Non-financial assets Non-financial physical assets classified as held for sale

8

1,867,946

2,090,903

Property, plant and equipment

9

19,720,931

19,574,206

Total non-financial assets

21,588,877

21,665,109

Total assets

53,999,606

51,837,670

Liabilities Payables

10

675,781

686,521

Borrowings

11

26,488

36,894

Provisions

12

722,752

469,978

Other liabilities

13

17,869,941

16,795,048

Total liabilities

19,294,962

17,988,441

Net assets

34,704,644

33,849,229

Equity Accumulated surplus

20

12,093,768

11,050,058

Reserves

19

22,510,876

22,699,171

100,000

100,000

34,704,644

33,849,229

Contributed capital Net Worth Commitments for expenditure

15

40,865

177,628

Contingent liabilities and contingent assets

16

0

0

The balance sheet should be read in conjunction with the accompanying notes.

Annual Report 2011-12

35


0

22,605,409

Physical asset revaluation surplus

0

0

0

209,547

Available-for-sale non-financial assets revaluation surplus

656,008

0

0

2,935,161

Donations reserve

134,567

0

0

1,091,559

Covenant stewardship reserve

0

0

0

358,375

100,992

0

0

2,612,968

(891,567)

0

(25,932)

11,967,557

0

0

0

0

Accumulated Contributions by surplus owner

0

(8,005,415)

(25,932)

41,780,576

Total

0

33,849,229

100,000

100,000

16,627

838,788

0

0

100,000

11,050,058

0

0

2,713,960

0

838,788

0

0

0 358,375

0

0 0

0 1,226,126

0

0 0

0 3,591,169

0

0 0

0

192,920

0

0

0

0

0

0

0

0

14,616,621 16,627

0

204,922

(16,627)

0

(6,885)

(229,166)

0

0

0

16,627

Properties reserve Bequest reserve

0

(8,005,415)

Statement of changes in equity for the financial year ended 30 June 2012

Balance at 1 July 2010 Net result for the year Other comprehensive income for the year Transfer to reserves Transfers between reserves

Net result for the year

47,873

Balance at 30 June 2011 Other comprehensive income for the year

0

34,704,644

38,044

100,000

(40,988)

12,093,768

(13,800)

2,477,909

0

406,248

0

1,264,170

0

3,536,381

0

209,547

Transfers between reserves 14,616,621

Transfer to reserves Balance at 30 June 2012

The statement of changes in equity should be read in conjunction with the accompanying notes.

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36

Contributed capital

T R U S T f o r N AT U R E 2 0 1 1 - 1 2


T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Cash flow statement for the financial year ended 30 June 2012

2012

2011

$

$

State Government – Operating grant

571,193

597,924

GST recovered from the ATO

266,647

265,289

Interest received

928,221

904,836

Donations, grants and other receipts

6,872,556

4,866,781

Total receipts

8,638,617

6,634,830

Payments to employees

(3,610,529)

(3,123,375)

Payments to suppliers

(2,858,814)

(3,130,003)

(405,724)

(373,995)

(6,875,067)

(6,627,373)

1,763,550

7,457

227,626

85,634

3,075,308

833,812

500,000

8,500,000

(214,535)

(743,561)

Payment from bonds held in trust

(1,564,218)

0

Payments to landowners

(1,597,338)

(1,389,195)

(43,238)

(352,043)

Payments for financial assets

(2,056,658)

(30,353)

Net cash flows from/(used in) investing activities

(1,673,053)

6,904,294

Owner contributions from State Government

0

100,000

Net cash flows from/(used in) financing activities

0

100,000

90,497

7,011,751

9,102,378

2,090,627

9,192,875

9,102,378

Notes Cash flows from operating activities Receipts

Payments

GST paid to the ATO Total payments Net cash flows from/(used in) operating activities

18(b)

Cash flows from investing activities Proceeds from sale of non-financial assets Proceeds from funds held awaiting remittance Proceeds from bonds held in trust Payments for non-financial assets, land and buildings

Payments for plant and equipment

Cash flows from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year

18(a)

The above cash flow statement should be read in conjunction with the accompanying notes.

Annual Report 2011-12

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Notes to the financial statements Note 1 Summary of significant accounting policies ................................................................................................................................. 39 Note 2 Income from transactions ........................................................................................................................................................... 51

Note 1

Summary of significant accounting policies .............................................................................

Note 2

Income from transactions.........................................................................................................

Note 3

Expenses from transactions.....................................................................................................

Note 4

Other economic flows included in net result ............................................................................

Note 5

Receivables..............................................................................................................................

Note 6

Investments and other financial assets ....................................................................................

Note 7

Other assets .............................................................................................................................

Note 8

Non-financial assets classified as held for sale .......................................................................

Note 9

Property, plant and equipment .................................................................................................

Note 10

Payables...................................................................................................................................

Note 11

Borrowings ...............................................................................................................................

Note 12

Provisions.................................................................................................................................

Note 13

Other liabilities disclosures.......................................................................................................

Note 14

Leases......................................................................................................................................

Note 15

Commitments for expenditure ..................................................................................................

Note 16

Contingent assets and contingent liabilities .............................................................................

Note 17

Financial instruments ...............................................................................................................

Note 18

Cash flow information...............................................................................................................

Note 19

Reserves ..................................................................................................................................

Note 20

Accumulated surplus................................................................................................................

Note 21

Responsible persons................................................................................................................

Note 22

Remuneration of auditors.........................................................................................................

Note 23

Subsequent events ..................................................................................................................

Note 24

Correction of prior period error.................................................................................................

Note 25

Glossary of terms .....................................................................................................................

Note 3 Expenses from transactions ....................................................................................................................................................... 52 Note 4 Other economic flows included in net result ................................................................................................................................ 52 Note 5 Receivables .............................................................................................................................................................................. 53 Note 6 Investments and other financial assets ....................................................................................................................................... 53 Note 7 Other assets ............................................................................................................................................................................. 54 Note 8 Non-financial assets classified as held for sale ............................................................................................................................ 54 Note 9 Property, plant and equipment ................................................................................................................................................... 55 Note 10 Payables .................................................................................................................................................................................. 57 Note 11 Borrowings .............................................................................................................................................................................. 57 Note 12 Provisions ............................................................................................................................................................................... 58 Note 13 Other liabilities disclosures ....................................................................................................................................................... 59 Note 14 Leases ................................................................................................................................................................................... 60 Note 15 Commitments for expenditure .................................................................................................................................................. 60 Note 16 Contingent assets and contingent liabilities ................................................................................................................................ 61 Note 17 Financial instruments ................................................................................................................................................................ 61 Note 18 Cash flow information .............................................................................................................................................................. 69 Note 19 Reserves ................................................................................................................................................................................ 70 Note 20 Accumulated surplus ................................................................................................................................................................ 71 Note 21 Responsible persons................................................................................................................................................................ 71 Note 22 Remuneration of auditors ......................................................................................................................................................... 72 Note 23 Subsequent events ................................................................................................................................................................. 72 Note 24 Correction of prior period error ................................................................................................................................................. 72 Note 25 Glossary of terms .................................................................................................................................................................... 73

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Notes to the financial statements For the financial year ended 30 June 2012 Note 1

Summary of significant accounting policies

These annual financial statements represent the audited general purpose financial statements for the Trust for Nature (Victoria) (the Trust).

Statement of compliance

(A)

These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. To gain a better understanding of the terminology used in this report, a glossary of terms can be found in Note 25. The annual financial statements were authorised for issue by the Board of Trustees for the Trust on the 27th of August 2012.

Basis of accounting preparation and measurement

(B)

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates 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. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period, are disclosed throughout the notes to the financial statements. These financial statements are presented in Australian dollars, and prepared in accordance with the historical cost convention except for: 

 

non-current physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value; the fair value of an asset other than land is generally based on its depreciated replacement value; and available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised.

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Note 1 Note 1 (C) (C)

Summary of significant accounting policies (continued) Summary of significant accounting policies (continued) Reporting entity Reporting entity

The financial statements cover Trust for Nature (Victoria) as an individual reporting entity. The Trust is a body corporate established under the Victorian Trust Act 1972 (the Its principal addressentity. is: The financial statements coverConservation Trust for Nature (Victoria) as Act). an individual reporting The Trust is a body corporate established under the Victorian Conservation Trust Act 1972 (the Act). Its principal address is: Level 5, 379 Collins Street Melbourne 3000Street Level 5, 379VIC Collins Melbourne VIC 3000 The financial statements include all the controlled activities of the Trust. The financial statements include all the controlled activities of the Trust.

Objectives and funding Objectives and funding

Under the Act, the Trust’s objectives are to: Under the Act, the Trust’s objectives are to:  conserve areas which are ecologically significant, of natural interest or beauty, or of historical interest; wildlifewhich and native plants;  conserve areas are ecologically significant, of natural interest or beauty, or of historical interest; create scientific study; and  conserve and wildlife and areas nativefor plants; encourageand and assist in the conservation  conserve create areas for scientific study;and andcreation of areas of natural beauty or interest for recreation and/or educational use by the public.  encourage and assist in the conservation and creation of areas of natural beauty or interest for recreation and/or educational use by the public. The objectives under the Act form the basis of the goals and operations of the Trust. The objectives under the Act form the basis of the goals and operations of the Trust. Trust for Nature has five goals for driving nature conservation and operational excellence: Trust for Nature has five goals for driving nature conservation and operational excellence:  maximise the biodiversity outcomes of nature conservation actions;  protect and manage land for biodiversity; maximise the biodiversity outcomes of nature conservation actions;  achieve growth and excellence in its business; protect and manage land for biodiversity;  encourage investment in natureinconservation; achieve growth and excellence its business;and  capture newinvestment opportunities for achieving biodiversity encourage in nature conservation; and gains.  capture new opportunities for achieving biodiversity gains. The Trust obtains its funding from a number of sources including State and Commonwealth Governments, donations and bequests, and the sale of goods services. The Trust investment obtains itsincome funding from a number of and sources including State and Commonwealth Governments, donations and bequests, investment income and the sale of goods and services.

Scope and presentation of financial statements Scope and presentation of financial statements Comprehensive operating statement Comprehensive operating statement

(D) (D)

Income and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the whole of government format is Income and expenses in the comprehensive operating statement are classified according to whether reporting or not they ariseand from allowed under or AASB 101 Presentation of Financial Statements. ‘transactions’ ‘other economic flows’. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements. ‘Transactions’ and ‘other economic flows’ are defined by the Australian System of Government Finance Statistics: Concepts, Sources and Methods 2005economic and Amendments Australian of Government Statistics,Finance 2005. Statistics: Concepts, ‘Transactions’ and ‘other flows’ aretodefined by System the Australian System Finance of Government Sources and Methods 2005 and Amendments to Australian System of Government Finance Statistics, 2005. ‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities byare mutual Transactions also includeto flows an entity, such as depreciation where the owner is ‘Transactions’ thoseagreement. economic flows that are considered arise within as a result of policy decisions, usually interactions between simultaneously the owner ofTransactions the depreciating andflows as the consumer of thesuch service by the asset. Taxation two entities by acting mutualasagreement. also asset include within an entity, as provided depreciation where the owner is regarded as mutually agreed interactions between the Government taxpayers. can by be the in asset. kind (e.g. assets simultaneously acting as the owner of the depreciating asset and as theand consumer of theTransactions service provided Taxation is provided/given free of charge for nominal between consideration) or where theand finaltaxpayers. consideration is cash. can be in kind (e.g. assets regarded as mutually agreedorinteractions the Government Transactions provided/given free of charge or for nominal consideration) or where the final consideration is cash. ‘Other economic flows’ are changes arising from market re-measurements. They include gains and losses from disposals, revaluations and impairments of non-current and intangible assets; actuarial andgains lossesand arising fromfrom defined benefit ‘Other economic flows’ are changes arisingphysical from market re-measurements. Theygains include losses disposals, superannuation fair value changes ofphysical financialand instruments agricultural andlosses depletion of natural assetsbenefit (nonrevaluations andplans; impairments of non-current intangibleand assets; actuarialassets; gains and arising from defined produced) from their use or value removal. superannuation plans; fair changes of financial instruments and agricultural assets; and depletion of natural assets (nonproduced) from their use or removal. The net result is equivalent to profit or loss derived in accordance with AASs. The net result is equivalent to profit or loss derived in accordance with AASs.

Balance sheet Balance sheet

Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the notes, where relevant. assets and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the Current and non-current notes, where relevant.

Statement of changes in equity Statement of changes in equity

The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reportingofperiod to the closingpresents balancereconciliations at the end of the reporting period.and It also shows separately due amounts The statement changes in equity of each non-owner owner equity opening changes balance at thetobeginning recognised in the comprehensive andatamounts in other comprehensive related to other non-owner of the reporting period to the closingresult balance the end recognised of the reporting period. It also shows income separately changes due to amounts changes in equity. recognised in the comprehensive result and amounts recognised in other comprehensive income related to other non-owner changes in equity. 40 www.trustfornature.org.au


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Note 1

Summary of significant accounting policies (continued)

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

Rounding Amounts in the financial statements have been rounded to the nearest dollar.

(E)

Income from transactions

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

Interest Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. Interest income includes interest received on bank term deposits and other investments. Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are reported as part of income from other economic flows in the net result or as unrealised gains and losses taken directly to equity, forming part of the total change in net worth in the comprehensive result.

Sales of goods and services Income from the supply of services Income from the provision of services is recognised by reference to the stage of completion of the contract. The income is recognised when the amount of the income, stage of completion and transaction costs incurred can be reliably measured, and it is probable that the economic benefits associated with the transaction will flow to the entity. The stage of completion is measured by reference to completion of milestones. Income from sale of goods Income from the sale of goods is recognised when:  the significant risks and rewards of ownership of the goods have transferred to the buyer;  the Trust retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;  the amount of income can be reliably measured;  it is probable that the economic benefits associated with the transaction will flow to the Trust; and  costs incurred or to be incurred in respect of the transaction can be measured reliably.

Grants Grants are recognised as income when the Trust gains control of the underlying assets in accordance with AASB 1004 Contributions. For reciprocal grants, the Trust is deemed to have assumed control when the performance has occurred under the grant. For non-reciprocal grants, the Trust is deemed to have assumed control when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

Fair value of assets and services received free of charge or for nominal consideration If applicable, material contributions of resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another government department or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such a transfer will be recognised at carrying value. Contributions in the form of services are only recognised when fair value can be reliably determined and the services would have been purchased if not donated.

Other income Dividend income Dividend revenue is recognised when the right to receive payment is established. Donation income Donation revenue is recognised when the cash is received. Donations and bequests of shares and properties are brought to account at their values on the date of transfer. Annual Report 2011-12

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Note 1

(F)

Summary of significant accounting policies (continued)

Expenses from transactions

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

Employee expenses These expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments and WorkCover premiums. Superannuation – State superannuation defined benefit plans There are no defined benefit superannuation contribution plans.

Depreciation and amortisation All infrastructure assets, buildings, plant and equipment and other non-current physical assets (excluding items under operating leases, assets held-for-sale and investment properties) that have a limited useful life are depreciated. Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period. The following are typical estimated useful lives for the different asset classes for current and prior years. Asset class

Useful life

Buildings Fencing Leasehold improvements Plant and equipment Vehicles

40 years 20 years (2011: 40 years) Lease term 3 – 10 years 7 years

Land which is considered to have an indefinite life is not depreciated. Depreciation is not recognised in respect of such assets as their service potential has not, in any material sense, been consumed during the reporting period.

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

Other operating expenses Other operating expenses generally represent the day to day running costs incurred in normal operations. Supplies and services Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred. Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. These include:

Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets.

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

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Note 1

Summary of significant accounting policies (continued) Other economic flows included in net result

(G)

Impairment of non-financial assets All assets are assessed annually for indications of impairment except for: 

financial assets (refer Note 1(H))

non-financial physical assets held for sale (refer Note 1(I)).

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off as an other economic flow, except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost, and disposals of financial assets.

Revaluations of financial instruments at fair value The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is reported as part of income from transactions.

Other gains/(losses) from other economic flows Other gains/(losses) from other economic flows include the gains or losses from:  

(H)

transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition or reclassification; and the revaluation of the present value of the long service leave liability due to changes in the bond interest rates.

Financial assets

Cash and deposits Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as borrowings on the balance sheet.

Receivables Receivables consist predominantly of debtors in relation to goods and services, accrued investment income and GST input tax credits recoverable. Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any accumulated impairment. A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Investments and other financial assets Investments are recognised and de-recognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. Annual Report 2011-12

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Note 1

Summary of significant accounting policies (continued)

The Trust classifies its other investments into the following categories: financial assets at fair value through profit or loss; loans and receivables; held-to-maturity investments; and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition. The Trust assesses at each balance sheet date whether a financial asset or group of financial assets is impaired. Financial assets at fair value through profit or loss Investments held for trading purposes are stated at fair value, with any resultant gain or loss recognised in profit or loss as other economic flows. Any dividend or interest earned on the financial asset is recognised in profit or loss as transactions. Loans and receivables Term deposits with maturity greater than three months, trade receivables, loans and other receivables are recorded at amortised cost, using the effective interest method, less impairment. The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Held-to-maturity investments Where the Trust has the positive intent and ability to hold investments to maturity, they are stated at amortised cost less impairment losses. Available-for-sale financial assets Other investments held by the Trust are classified as being available-for-sale and are stated at fair value. Gains and losses arising from changes in fair value are recognised directly in equity until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in profit or loss for the period. Fair value is determined in the manner described in Note 17.

Impairment of financial assets The Trust assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. All financial assets, except those measured at fair value through profit or loss, are subject to annual review for impairment. Bad and doubtful debts are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. The allowance for doubtful receivables and bad debts not written off by mutual consent are adjusted as ‘other economic flows’.

(I)

Non-financial assets

Non-financial physical assets classified as held for sale, including disposal group assets Non-financial physical assets (and disposal group assets) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation. Non-financial assets, disposal groups, and related liabilities are treated as current and classified as held-for-sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset’s sale (or disposal group sale) is expected to be completed within 12 months from the date of classification.

Property, plant and equipment All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Leasehold improvements The cost of leasehold improvements is capitalised as an asset and depreciated over the shorter of the remaining term of the lease or the estimated useful life of the improvements. Revaluations of non-current physical assets Non-current physical assets are measured at fair value in accordance with FRD 103D issued by the Minister for Finance. A full revaluation normally occurs every five years, based on the asset’s government purpose classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs.

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Note 1

Summary of significant accounting policies (continued)

Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value. Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are recognised in other comprehensive income and accumulated in equity under the revaluation surplus, except that the net revaluation increase shall be recognised in the net result to the extent that it reverses a net revaluation decrease in respect of the same class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result. Net revaluation decreases are recognised immediately as expenses (other economic flows) in the net result, except that the net revaluation decrease shall be recognised in other comprehensive income to the extent that a credit balance exists in the revaluation surplus in respect of the same class of property, plant and equipment. The net revaluation decrease recognised in other comprehensive income reduces the amount accumulated in equity under revaluation surplus. Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment, are offset against one another within that class but are not offset in respect of assets in different classes. Any revaluation surplus is not normally transferred to accumulated funds on de-recognition of the relevant asset.

(J)

Liabilities

Payables Payables consist predominantly of accounts payable and other sundry liabilities. Accounts payable represent liabilities for goods and services provided to the Trust prior to the end of the financial year that are unpaid, and arise when the Trust becomes obliged to make future payments in respect of the purchase of those goods and services. Other liabilities included in payables mainly consist of unearned/prepaid income, goods and services tax and fringe benefits tax payables. Payables are initially recognised at fair value, being the cost of the goods and services, and subsequently measured at amortised cost.

Borrowings Borrowings are initially measured at fair value, being the cost of the borrowings, net of transaction costs (refer to Note 1(K) Leases). Subsequent to initial recognition, borrowings are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in net result over the period of the borrowing using the effective interest method.

Provisions Provisions are recognised when the Trust has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows. Employee benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date. (i)

Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values. Those liabilities that are not expected to be settled within 12 months are recognised in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

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Note 1 (ii)

Summary of significant accounting policies (continued) Long service leave

Liability for long service leave (LSL) is recognised in the provision for employee benefits. Current liability – unconditional LSL is disclosed in the notes to the financial statements as a current liability even where the Trust does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. The components of this current LSL liability are measured at: 

present value – component that the Trust does not expect to settle within 12 months

nominal value – component that the Trust expects to settle within 12 months.

Non-current liability – conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value. Gain or loss following revaluation of the present value of non-current LSL liability due to changes in bond interest rates is recognised as an other economic flow (refer to Note 1(G)). (iii)

Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Trust recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

Employee benefits on-costs Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and LSL accrued while on LSL taken in service) are recognised separately from provision for employee benefits.

(K)

Leases

A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases. Finance leases (the Trust as lessee) At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum finance lease payments are apportioned between reduction of the outstanding lease liability, and periodic finance expense which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement. Contingent rentals associated with finance leases are recognised as an expense in the period in which they are incurred. Operating leases (the Trust as lessee) Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet. All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments. In the event that lease incentives are received to enter into operating leases, the aggregate cost of incentives are recognised as a reduction of rental expense over the lease term on a straight-line basis, unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

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Note 1 (L)

Summary of significant accounting policies (continued) Commitments

Commitments are disclosed at their nominal value and inclusive of the GST payable.

(M)

Contingent assets and contingent liabilities

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

(N)

Rounding of amounts

Amounts in the financial statements have been rounded to the nearest dollar.

(O)

Tax status

As a State Government body corporate, the Trust is exempt from income tax.

(P)

Allocation between current and non-current

In the determination of whether an asset other than cash and cash equivalents is current, consideration is given as to whether the Trust expects to realise or consume the asset within the twelve months after the reporting date. All cash, cash equivalents a nd property held for re-sale are deemed current. All other assets are recognised as non-current. Current liabilities are recognised when the liability is due to be settled within the twelve months after reporting date or the Trust does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

(Q)

Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow. Commitments and contingent assets or liabilities are presented on a gross basis.

(R)

Events after reporting date

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Trust and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed in the reporting period. Note that disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent reporting periods.

(S)

Correction of a prior period error

Refer to Note 24.

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Note 1 (T)

Summary of significant accounting policies (continued) New accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2012 reporting period. As at 30 June 2012, the following standards and interpretations which apply to the Trust had been issued but were not mandatory for the financial year ending 30 June 2012. The Trust has not, and does not intend to, adopt these standards early. Standard / Interpretation

Summary

AASB 9 Financial instruments

1 Jan 2013 This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).

Detail of impact is still being assessed.

AASB 13 Fair Value Measurement

1 Jan 2013 This Standard outlines the requirements for measuring the fair value of assets and liabilities and replaces the existing fair value definition and guidance in other AASs. AASB 13 includes a ‘fair value hierarchy’ which ranks the valuation technique inputs into three levels.

Disclosure for fair value measurements using unobservable inputs are relatively onerous compared to disclosure for fair value measurements using observable inputs. Consequently, the Standard may increase the disclosures for public sector entities that have assets measured using depreciated replacement cost.

AASB 1053 Application of Tiers of Australian Accounting Standards

This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.

1 July 2013

The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) for certain public sector entities and has not decided if RDRs will be implemented in the Victorian Public Sector.

AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12]

This Standard gives effect to consequential changes arising from the issuance of AASB 9.

1 Jan 2013

No significant impact is expected from these consequential amendments on entity reporting.

Applicable for annual reporting periods beginning on

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Impact on financial statements

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Note 1

Summary of significant accounting policies (continued)

Standard / Interpretation

Summary

Impact on financial statements Applicable for annual reporting periods beginning or ending on 1 July 2013

AASB 2010-2 Amendments to

This Standard makes amendments to

Australian Accounting Standards arising from Reduced Disclosure Requirements

many Australian Accounting Standards, including Interpretations, to introduce reduced disclosure requirements to the pronouncements for application by certain types of entities.

AASB 2010-7 Amendments to

These consequential amendments are in relation to the introduction of AASB 9.

1 Jan 2013

The objective of this amendment is to include some additional disclosure from the Trans-Tasman Convergence Project and to reduce disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards – Reduced Disclosure Requirements.

Beginning

AASB 2011-4

This Standard amends AASB 124

1 July 2013

Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

Related Party Disclosures by removing the disclosure requirements in AASB 124 in relation to individual key management personnel (KMP).

Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements [AASB 101 & AASB 1054]

The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) for certain public sector entities and has not decided if RDRs will be implemented in the Victorian public sector. No significant impact is expected from these consequential amendments on entity reporting.

1 July 2013

The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) and has not decided if RDRs will be implemented in the Victorian Public Sector. No significant impact is expected from these consequential amendments on entity reporting.

[AASB 124] AASB 2011-8

This amending Standard makes

Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 200911, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132]

consequential changes to a range of Standards and Interpretations arising from the issuance of AASB 13. In particular, this Standard replaces the existing definition and guidance of fair value measurements in other Australian Accounting Standards and Interpretations.

1 Jan 2013

Annual Report 2011-12

Disclosures for fair value measurements using unobservable inputs is potentially onerous, and may increase disclosures for assets measured using depreciated replacement cost.

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Note 1

Summary of significant accounting policies (continued)

Standard / Interpretation

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049]

Summary

Impact on financial statements Applicable for annual reporting periods beginning or ending on

The main change resulting from this Standard is a requirement for entities to group items presented in other comprehensive income (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments).

1 July 2012

This amending Standard could change the current presentation of ‘Other economic flows – other movements in equity’ that will be grouped on the basis of whether they are potentially reclassifiable to profit or loss subsequently. No other significant impact will be expected.

AASB 2011-11

This Standard makes amendments to AASB 119 Employee Benefits (September 2011), to incorporate reduced disclosure requirements into the Standard for entities applying Tier 2 requirements in preparing general purpose financial statements.

1 July 2013

The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) and has not decided if RDRs will be implemented in the Victorian public sector.

AASB 2011-13 Amendments to Australian Accounting Standard – Improvements to AASB 1049

This Standard aims to improve the AASB 1049 Whole of Government and General Government Sector Financial Reporting at the operational level. The main amendments clarify a number of requirements in AASB 1049, including the amendment to allow disclosure of other measures of key fiscal aggregates as long as they are clearly distinguished from the key fiscal aggregates and do not detract from the information required by AASB 1049. Furthermore, this Standard provides additional guidance and examples on the classification between ‘transactions’ and ‘other economic flows’ for GAAP items without GFS equivalents.

1 July 2012

No significant impact is expected from these consequential amendments on entity reporting.

AASB 2012-1 Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure Requirements

This amending Standard prescribes the reduced disclosure requirements in a number of Australian Accounting Standards as a consequence of the issuance of AASB 13 Fair Value Measurement.

1 July 2013

As the Victorian general government (GG) sector is subject to Tier 1 reporting requirements (refer to AASB 1053 Application of Tiers of Australian Accounting Standards), the reduced disclosure requirements included in AASB 2012-1 will not affect the financial reporting for Victorian GG sector.

Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements

[AASB 3, AASB 7, AASB 13, AASB 140 & AASB 141]

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Note 2

Income from transactions 2012

2011

$

$

(a) Grant income State Government – Operating grant

571,193

597,924

3,218,163

3,712,516

0

155,067

183,954 3,973,310

44,321 4,509,828

899,000 899,000

856,430 856,430

196,956 196,956

187,558 187,558

342,400

411,094

47,695

98,026

General bequests

1,808,294

100,000

Property bequests Total donations

150,000 2,348,389

0 609,120

34,737 34,737

73,023 73,023

18,316

17,334

14,576

7,062

232,165

123,745

89,981 355,038

102,250 250,391

Government grants Government grants used to acquire properties

(i)

Project grants and property grants, consulting – other parties Total grants and other transfers Note: (i) From time to time Trust for Nature receives grant revenue or donation revenue which is used to acquire properties. Such transactions result in an accounting profit equal to the acquisition cost which resides in the accumulated surplus (Note 20) until such time as the property is surrendered or sold. No new properties were acquired in 2011 –12 funded in this way (2010 –11: one property to the value of $155,067). Refer also to Note 3(c). (b) Interest on Investments Interest on bank deposits Total interest on investments (c) Dividends Other entities Total dividends (d) Donations General donations Donations for appeals and properties

(e) Fair value of services received free of charge or for nominal consideration Legal services Total fair value of services received free of charge or for nominal consideration (f) Other revenue Rental income Sale of goods and services Offset program income

(ii)

Other Total other revenue

Note: (ii) In the prior year financial statements this amount has been included in Note 2(a) Grant income – other parties.

Annual Report 2011-12

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Note 3

Expenses from transactions 2012

2011

$

$

(a) Employee expenses Salaries, wages and long service leave

(3,477,608)

(2,943,706)

(2,385)

(17,914)

(301,759)

(261,542)

(14,303) (3,796,055)

(16,130) (3,239,292)

Buildings

(61,342)

(69,058)

Plant & equipment

(70,238)

(51,783)

Motor vehicles

(27,998)

(27,069)

(46,524) (206,102)

(11,873) (159,783)

(34,737)

(73,023)

(872,692)

(1,426,989)

0 (907,429)

(184,330) (1,684,342)

(507,699) (507,699)

(70,982) (70,982)

(238,947)

(279,852)

(932,397) (1,171,344)

(1,168,758) (1,448,610)

Fringe benefits tax Defined contribution superannuation expense Other employee expenses Total employee expenses (b) Depreciation and amortisation

Leasehold improvements Total depreciation and amortisation (c) Covenant program Legal services received free of charge or for nominal consideration Covenant program expenditure Value of land surrendered to the Crown for nil value Total covenant program

(i)

(d) Payments from appeals and other reserves with specified purpose Payments from appeals and other reserves with specified purpose Total Payments from appeals and other reserves with specified purpose (e) Other operating expenses Occupancy Supplies and services Total other operating expenses

Note: (i) No agreement was reached to surrender properties to the Crown in 2011 –12 (2010 –11: seven properties).

Note 4

Other economic flows included in net result 2012

2011

$

$

(a) Net gain/(loss) on non-financial assets Net gain/(loss) on disposal of land Net gain/(loss) on disposal of plant & equipment Total net gain/(loss) on non-financial assets

(11,958)

(69,909)

0 (11,958)

6,535 (63,374)

(524,324)

0

156,269 (368,055)

154,101 154,101

(b) Net gain/(loss) on financial instruments Net gain/(loss) on disposal of financial investments Net gain/(loss) arising from revaluation of financial assets at fair value Total net gain/(loss) on financial instruments

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Note 5

Receivables 2012

2011

$

$

Current receivables Contractual Sale of goods and services

(i)

Interest receivable (ii)

Other receivables Total current receivables

678,032

273,784

520,943

414,090

202,567 1,401,542

79,612 767,486

27,461 27,461

163,535 163,535

1,429,003

931,021

Non-current receivables Contractual Interest receivable Total non-current receivables Total receivables

Notes: (i) The average credit period on sales of services is 30 days. No interest is charged on other receivables. (ii) Other receivables includes $138,439 paid for the acquisition of a property for which title has not yet transferred. (a) Ageing analysis of contractual receivables Please refer to Table 17.4 in Note 17 for the ageing analysis of contractual receivables. (b) Nature and extent of risk arising from contractual receivables Please refer to Note 17(b) for the nature and extent of credit risk arising from contractual receivables.

Note 6

Investments and other financial assets 2012

2011

$

$

Current investments and other financial assets (i)(v)

Australian dollar term deposits > 3 months Total current investments and other financial assets

16,779,448 16,779,448

13,038,541 13,038,541

2,410,609

4,318,290

2,504,835

2,641,401

9,030 4,924,474

17,087 6,976,778

21,703,922

20,015,319

Non-current investments and other financial assets Australian dollar term deposits > 12 months Managed investment schemes

(i)

(ii)(iii)

(ii)(iv)

Listed securities Total non-current investments and other financial assets Total investments and other financial assets

Notes: (i) Term deposits under ’investments and other financial assets’ class include only term deposits with maturity greater than 90 days. Term deposits have an interest rate between 4.25% and 6.66%. (ii) The Trust designated all its equities and managed investment schemes at fair value through the profit or loss. Therefore, unless they are part of a disposal group held for sale, all equities and managed investment schemes are classified as noncurrent. This is consistent with the Trust’s purpose of holding the investment for long-term management of risk, not for shortterm profit gain. (iii) The managed investment schemes are managed by the Myer Family Company. (iv) Shares in Teys Income Builder were received in a bequest in 2009-10. Its responsible entity, TPFL, was placed in administration on 5 March 2010 and into liquidation on 20 April 2010. The value of shares at 30 June 2012 is the mid-point between the higher and lower case scenarios provided at 10 May 2012 by the liquidator of the responsible entity. (v) This balance includes a term deposit in the amount of $93,124 held as security against bank guarantees issued for rental sites. The bank guarantees outstanding at balance sheet date amounted to $93,124 (2011: $89,561). (a) Ageing analysis of investments and other financial assets Please refer to Table 17.4 in Note 17 for the ageing analysis of investments and other financial assets. (b) Nature and extent of risk arising from investments and other financial assets Please refer to Note 17 for the nature and extent of risks arising from investments and other financial assets. Annual Report 2011-12

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Note 7

Other assets 2012

2011

$

$

Prepayments

31,042

14,518

Consulting services provided but not yet invoiced

50,970

92,925

Current other assets

Deposits Total other assets

Note 8

2,917

16,400

84,929

123,843

2012

2011

$

$

Non-financial assets classified as held for sale

Current Freehold land held for sale

1,749,946

Buildings held for sale Total non-financial assets classified as held for sale

1,969,903

118,000

121,000

1,867,946

2,090,903

The Trust intends to dispose of certain freehold land within the next twelve months. This includes Revolving Fund land that was acquired for purposes of conservation with the intention of reselling it with covenants established to ensure particular natural aspects of the properties are conserved. A search is underway for buyers. No impairment loss was recognised on reclassification of the freehold land as held for sale or at reporting date. Land and buildings held for sale are valued at the lower of their carrying amount and fair value less costs to sell.

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Note 9

Property, plant and equipment

Table 9.1: Classification by ‘Public safety and environment’ Purpose Group- Gross carrying amount and (i) accumulated depreciation

Land at fair value

2012

2011

$

$

16,806,098

16,656,098

16,806,098

16,656,098

89,589

0

(667)

0

88,922

0

2,333,000

2,333,000

(60,675)

0

2,272,325

2,333,000

Leasehold improvements at fair value

298,752

224,637

Less accumulated depreciation

(58,397)

(11,873)

240,355

212,764

330,699

506,261

(148,692)

(293,139)

182,007

213,122

Motor vehicles at cost

227,751

227,751

Less accumulated depreciation

(96,527)

(68,529)

131,224

159,222

19,720,931

19,574,206

Buildings at cost Less accumulated depreciation

Buildings at fair value Less accumulated depreciation

Plant and equipment at cost Less accumulated depreciation

Total property, plant and equipment

Note: (i) Property, plant and equipment are classified primarily by the ‘purpose’ for which the assets are used, according to one of six purpose groups based upon government purpose classifications (GPC). All assets within a purpose group are further sub categorised according to the asset’s ‘nature’ (i.e. buildings, plant and equipment, etc), with each sub category being classified as a separate class of asset for financial reporting purposes. Table 9.2: Aggregate depreciation recognised as an expense during the year 2012

2011

$

$

Buildings

61,342

69,058

Plant & equipment

70,238

51,783

Motor vehicles

27,998

27,069

Leasehold improvements

46,524

11,873

206,102

159,783

Total property, plant and equipment

Annual Report 2011-12

55


Note 9

Property, plant and equipment (continued)

2012

0

2011

0

39,123

213,122

2012

0

128,699

136,206

2011

0

0

159,222

2012

(16,011)

32,034

Motor vehicles at cost

2011

212,764

0

224,637

Buildings at fair value

1,472,430

0

74,115

Buildings at cost 2012

0

2011

2,333,000

(76,399)

Plant and equipment at cost

2011

0

Leasehold improvements

2012 352,827 0

2011

0

2012 0 0

Total

2012

2011

590,437

0

(59,200)

653,200

342,969

240,355

(46,524)

0

0

212,764

(11,873)

0

0

182,007

(70,238)

0

0

213,122

(51,783)

0

0

131,224

(27,998)

0

0

159,222 19,720,931 19,574,206

(27,069)

0

0

0 (6,826,118)

0

0 (2,202,629)

352,827

170,268 19,574,206 28,172,299

16,656,098 26,040,568 0

89,589

0

2,333,000

0 (2,110,219)

150,000

205,067

Land at fair value

(i) Table 9.3: Classification by ‘Public safety and environment’ Purpose Group – Movements in carrying amounts

Opening balance Additions (342,969)

(60,675)

Disposals 0 0

2,272,325

0

0 0 0

(9,858)

0

Reclassify asset type (667)

(159,783)

0 (7,479,318) 88,922

(206,102)

Net revaluation increments/decrements 0

16,806,098 16,656,098

0

Closing balance

Note: (i) Fair value assessments have been performed for all classes of assets and the decision was made that movements were not material (less than or equal to 10 per cent) for a full revaluation. The next scheduled full revaluation will be conducted in 2016.

Land and buildings carried at fair value

An independent valuation of the Trust ’s land and buildings was last performed by Patel Dore Valuers Pty Ltd under contract to the Valuer-General Victoria. The effective date of the valuation was 30 June 2011. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amount for which an asset could be exchanged between knowledgeable willing parties in an arm ’s length transaction. The valuation was based on independent assessments.

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Depreciation expense T R U S T f o r N AT U R E 2 0 1 1 - 1 2


T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Note 10

Payables 2012

2011

$

$

Current payables Contractual Supplies and services

(i)

515,128

609,167

515,128

609,167

Net GST payable

92,335

18,035

Group taxes payables

68,318

59,319

Statutory

160,653

77,354

Total current payables

675,781

686,521

Total payables

675,781

686,521

2012

2011

$

$

7,278

6,813

Note: (i) The average credit period on sales of services is 30 days. No interest is charged on other payables. (a) Maturity analysis of borrowings Please refer to Table 17.5 in Note 17 for the maturity analysis of borrowings. (b) Nature and extent of risk arising from contractual payables Please refer to Note 17 for the nature and extent of credit risk arising from contractual payables.

Note 11

Borrowings

Current borrowings Lease liabilities

(i) (ii)

Other borrowings Total current borrowings

3,976

7,569

11,254

14,382

Lease liabilities Total non-current borrowings

15,234

22,512

15,234

22,512

Total borrowings

26,488

36,894

Non-current borrowings (i)

Notes: (i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the event of default. (ii) Other borrowings include unsecured purchasing card transactions which are repaid within the interest-free period. (a) Maturity analysis of borrowings Please refer to Table 17.5 in Note 17 for the maturity analysis of borrowings. (b) Nature and extent of risk arising from contractual payables Please refer to Note 17 for the nature and extent of credit risk arising from contractual payables. (c) Defaults and breaches During the current and prior year, there were no defaults or breaches of any of the loans.

Annual Report 2011-12

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Note 12

Provisions 2012

2011

$

$

Current provisions Employee benefits

(i)

Unconditional annual leave entitlements and expected to be settled < 12 months

(ii)

Unconditional long service leave entitlements and expected to be settled < 12 months Unconditional long service leave entitlements and expected to be settled > 12 months

(ii) (iii)

317,598

259,268

6,607

3,770

103,160

93,737

427,365

356,775

32,421

26,304

10,316

9,374

Provisions related to employee benefit on-costs - Unconditional and expected to be settled within 12 months - Unconditional and expected to be settled after 12 months

(ii)

(iii)

Total current provisions

42,737

35,678

470,102

392,453

156,955

67,065

15,695

6,707

70,000

3,753

10,000 252,650

0 77,525

Non-current provisions Employee benefits

(iii)

(long service leave)

Provisions related to employee benefit on-costs Make-good provision

(iv)

(iii)

(see also note 12(a))

Other provisions (see also note 12(a)) Total non-current provisions

Total provisions 722,752 469,978 Notes: (i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts. (iii) The amounts disclosed are discounted to present values. (iv) In accordance with the lease agreement over the principal office, the Trust must remove any leasehold improvements from the leased premises and restore the premises to its original condition at the end of the lease term. An additional provision of $66,427 (2010â&#x20AC;&#x201C;11: $3,753) was provided for during the year for this purpose. (a) Movement in provisions Make-good 2012 $ Opening balance Additional provisions recognised Amounts used Unused amounts reversed during the period Closing balance Current Non-current Closing balance

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Other Provisions 2012 $

Total 2012 $

3,753

0

3,753

66,247

10,000

76,247

0

0

0

0 70,000

0 10,000

80,000

0

0

0

70,000 70,000

10,000 10,000

80,000

0

80,000


T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Note 13

Other liabilities 2012

2011

$

$

13,797

13,284

Marcus Knapple

2,291

2,206

Potter Farmland

46,393

44,669

0

57,604

AGL – Growling Grass Frog

130,662

132,475

Hume – Native Grasslands

217,655

208,630

750,909

870,763

662,628

663,709

1,050,892

729,949

7,527,641

7,210,939

504,928

0

0

1,523,117

Deferred stewardship revenue

53,341

59,020

Other project funds committed

616,576

855,021

2,136,554 13,714,267

1,164,680 13,536,066

3,675,607

2,727,798

480,067 4,155,674

531,184 3,258,982

17,869,941

16,795,048

Current other liabilities (i)

Funds held awaiting remittance : Land Conservation Strategy

Dowell Creek

Pimelea Fund Amateur Gardeners Foundation Landowner payments held in trust

(ii)

(iii)

Bonds held in trust – Barwon Water

(iv)

Bonds held in trust – Melton Shire Council Bonds held in trust – Hydrox Nominees

(iv)

(iv)

Other revenue received in advance Total current other liabilities Non-current other liabilities Landowner payments held in trust

(iii)

Deferred stewardship revenue Total non-current other liabilities Total other liabilities

Notes: (i) Funds held awaiting remittance are funds the Trust holds on behalf of third parties for specific projects. The funds are spent in accordance with the agreement the Trust has with the third party. (ii) Refer Note 24 (iii) Landowner payments held in trust are funds the Trust holds on behalf of third party land owners under offset arrangements payable over 10 years from the date of covenant registration. (iv) Bonds held in trust are funds held on behalf of proponents as security to meet the approval conditions specified through the Environmental Protection and Biodiversity Conservation Act pending the achievement of offset arrangements and covenant registration.

Annual Report 2011-12

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Note 14

Leases

Finance leases Finance leases relate to a motor vehicle lease held with Vicfleet Lease Management with a lease term of three years. The Trust has an option to purchase the leased assets at expiry of the lease. Interest incurred on assets held under finance leases was $1,737 (2011: $1,359 ). The written down value of assets held under finance leases is $21,989 (2011: $29,080). Present value of minimum future lease payments

Minimum future lease (i) payments 2012

2011

2012

2011

$

$

$

$

8,550

12,469

8,550

12,469

- Longer than one year and not longer than five years

15,748

20,781

15,748

20,781

Total finance leases

24,298

33,250

24,298

33,250

Finance lease liabilities payable - Not longer than one year

Note: (i) Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual. Operating leases Operating leases relate to office facilities with lease terms of between one and seven years and motor vehicle leases with lease terms of three years. The Trust does not have an option to purchase the leased assets at lease expiry. Operating lease expenses recognised in the accounts was $225,195 (2011: $236,088). 2012

2011

$

$

Non-cancellable operating lease payables Not longer than one year

217,657

262,311

Longer than one year and not longer than five years

801,970

863,098

70,009

304,664

Total non-cancellable operating lease payables

1,089,636

1,430,073

Total leases

1,089,636

1,430,073

2012 $

2011 $

Project and capital commitments

0

121,438

Total capital expenditure commitments

0

121,438

Not longer than one year

15,324

15,324

Longer than one year and not longer than five years

25,541

40,865

Total novated lease commitments

40,865

56,190

Total commitments for expenditure

40,865

177,628

Longer than five years

Note 15

Commitments for expenditure

The following commitments have not been recognised as liabilities in the financial statements:

(a) Capital expenditure commitments

(b) Novated lease commitments Payable:

All amounts shown in the commitments note are nominal amounts inclusive of GST.

Note 16

Contingent assets and contingent liabilities

There are no known contingent assets or contingent liabilities.

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T R U S T f o r N AT U R E 2 0 1 1 - 1 2

Note 17

Financial instruments

(a) Financial risk management objectives and policies The Trust’s principal financial instruments comprise of: – cash assets – term deposits – receivables (excluding statutory receivables) – investments in equities and managed investment schemes – payables (excluding statutory payables). Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset and financial liability above are disclosed in Note 1 to the financial statements. The Trust’s main financial risks include credit risk, liquidity risk, interest rate risk and equity price risk. The Trust manages these financial risks in accordance with its financial risk assessment reviews. The carrying amounts of the Trust’s financial assets and financial liabilities by category are disclosed in Table 17.1. Table 17.1: Categorisation of financial instruments Contractual Contractual financial financial assets – loans assets and available-forreceivables sale

2012

$

$

Contractual financial liabilities at amortised cost

Total

$

$

Contractual financial assets Cash and deposits

9,192,875

0

0

9,192,875

Sale of goods and services

678,032

0

0

678,032

Accrued investment income

548,404

0

0

548,404

Other receivables

202,567

0

0

202,567

19,190,057

0

0

19,190,057

0

2,513,865

0

2,513,865

29,811,935

2,513,865

0

32,325,800

Payables – supplies and services

0

0

515,128

515,128

Borrowings

0

0

26,488

26,488

Other financial liabilities

0

0

17,869,941

17,869,941

Total contractual financial liabilities

0

0

18,411,557

18,411,557

Receivables:

Investments and other contractual financial assets: Term deposits Equities and managed investment schemes Total contractual financial assets Contractual financial liabilities

Annual Report 2011-12

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Note 17

Financial instruments (continued)

Table 17.1: Categorisation of financial instruments (continued) Contractual Contractual financial financial assets â&#x20AC;&#x201C; loans assets and available-forreceivables sale $ $

2011

Contractual financial liabilities at amortised cost $

Total

$

Contractual financial assets Cash and deposits

9,102,378

0

0

9,102,378

Sale of goods and services

273,784

0

0

273,784

Accrued investment income

577,625

0

0

577,625

79,612

0

0

79,612

17,356,831

0

0

17,356,831

(i)

Receivables :

Other receivables Investments and other contractual financial assets: Term deposits Equities and managed investment schemes

0

2,658,488

0

2,658,488

27,390,230

2,658,488

0

30,048,718

0

0

609,167

609,167

Borrowings

0

0

36,894

36,894

Other financial liabilities

0

0

16,795,048

16,795,048

Total contractual financial liabilities

0

0

17,441,109

17,441,109

Total contractual financial assets Contractual financial liabilities Payables â&#x20AC;&#x201C; supplies and services

(ii)

Notes: (i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). (ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. taxes payable).

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Note 17

Financial instruments (continued)

Table 17.2: Net holding gain/(loss) on financial instruments by category 2012

Net holding gain/(loss)

Total dividend Total interest income income/ (expense) $ $

$

Impairment loss

Total

$

$

Contractual financial assets Financial assets â&#x20AC;&#x201C; loans and receivables

0

0

899,000

0

899,000

Financial assets available-for-sale recognised in net result

0

196,956

0

0

196,956

Financial assets available-for-sale recognised in other comprehensive result

(368,055)

0

0

0

(368,055)

Total contractual financial assets

(368,055)

196,956

899,000

0

727,901

Financial liabilities at amortised cost

0

0

(1,737)

0

(1,737)

Total contractual financial liabilities

0

0

(1,737)

0

(1,737)

Contractual financial liabilities

2011

Net holding gain/(loss)

Total dividend Total interest income income/ (expense) $ $

$

Impairment loss

Total

$

$

Contractual financial assets Financial assets â&#x20AC;&#x201C; loans and receivables

0

0

856,430

0

856,430

Financial assets available-for-sale recognised in net result

0

187,558

0

0

187,558

Financial assets available-for-sale recognised in other comprehensive result

154,101

0

0

0

154,101

Total contractual financial assets

154,101

187,558

856,430

0

1,198,089

Financial liabilities at amortised cost

0

0

(1,359)

0

(1,359)

Total contractual financial liabilities

0

0

(1,359)

0

(1,359)

Contractual financial liabilities

The net holding gains or losses disclosed above are determined as follows: â&#x20AC;&#x201C; For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the interest revenue, plus dividend revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result. â&#x20AC;&#x201C; For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from revaluation of the financial liabilities measured at amortised cost.

Annual Report 2011-12

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Note 17

Financial instruments (continued)

(b) Credit risk Credit risk arises from the financial assets of the Trust, which comprise cash and deposits, trade and other receivables, held to maturity investments and financial assets available-for-sale. The Trust's exposure to credit risk arises from the potential default of counter parties on their contractual obligations resulting in financial loss to the Trust. Credit risk associated with the Trustâ&#x20AC;&#x2122;s financial assets is minimal. Most loans and receivables are with government-funded organisations, and cash, deposits and held-to-maturity investments are held at a range of financial institutions with high credit ratings of a minimum BBB. Financial assets available-for-sale includes managed investments arefinancial managed by thethat Myer Company In addition, the Trust does not hedge its financial assets and mainlywhich obtains assets areFamily on fixed interest.and listed Provision for impairment for financial assets is recognised when there is objective evidence that the Trust will not be able to collect a receivable. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Trust â&#x20AC;&#x2122;s maximum exposure to credit risk. Table 17.3: Credit quality of contractual financial assets that are neither past due nor impaired Government agencies

$

Financial institutions (min. AA credit rating) $

Other financial institutions (min. BBB credit rating) $

Other

Managed funds

$

Total

$

$

2012 Cash and cash equivalents

8,044,151

1,130,112

0

18,612

0

9,192,875

517,364

0

0

146,763

0

664,127

Accrued investment income

0

306,821

241,583

0

0

548,404

Other receivables

0

64,128

0

138,439

0

202,567

Term deposits

0

12,408,825

6,781,232

0

0

19,190,057

Equities and managed investment schemes

0

0

0

0

2,504,835

2,504,835

8,561,515

13,909,886

7,022,815

303,814

2,504,835

32,302,865

8,745,182

339,250

0

17,946

0

9,102,378

Sale of goods and services

(i)

Total contractual financial liabilities 2011 Cash and cash equivalents (i)

55,797

0

0

3,652

0

59,449

Accrued investment income

0

291,012

286,613

0

0

577,625

Other receivables

0

78,593

0

1,019

0

79,612

Term deposits

0

9,893,926

7,462,905

0

0

17,356,831

Equities and managed investment schemes

0

0

0

0

2,641,401

2,641,401

8,800,979

10,602,781

7,749,518

22,617

2,641,401

29,817,296

Sale of goods and services

Total contractual financial liabilities

Note: (i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable).

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Note 17

Financial instruments (continued)

Table 17.4: Ageing analysis of contractual financial assets Carrying amount

Not past due and not impaired

$

Past due, not impaired Less than 1 month

$

$

1 â&#x20AC;&#x201C; 3 months $

3 months â&#x20AC;&#x201C; 1 year

Impaired financial (ii) assets

$

$

2012 (i)

Receivables : Sales of goods and services

678,032

664,127

0

0

13,905

0

Interest receivable

548,404

548,404

0

0

0

0

Other receivables

202,567

202,567

0

0

0

0

19,190,057

19,190,057

0

0

0

0

2,513,865

2,504,835

0

0

0

9,030

23,132,925

23,109,990

0

0

13,905

9,030

Investments and other contractual financial assets: Term deposits Equities and managed investment schemes

(ii)

Total 2011 (i)

Receivables : Sales of goods and services

273,784

59,449

0

0

214,335

0

Interest receivable

577,625

577,625

0

0

0

0

Other receivables

79,612

79,612

0

0

0

0

17,356,831

17,356,831

0

0

0

0

2,658,488

2,641,401

0

0

0

17,087

20,946,340

20,714,918

0

0

214,335

17,087

Investments and other contractual financial assets: Term deposits Equities and managed investment schemes Total

(ii)

Notes: (i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). (ii) Shares in Teys Income Builder were received in a bequest in 2009-10. Its responsible entity, TPFL, was placed in administration on 5 March 2010 and into liquidation on 20 April 2010. The value of shares at 30 June 2012 is the mid-point between the higher and lower case scenarios provided at 10 May 2012 by the liquidator of the responsible entity. Contractual financial assets that are either past due or impaired There are no material financial assets which are individually determined to be impaired other than those detailed above in Table 17.4. Currently the Trust does not hold any collateral as security nor credit enhancements relating to any of its financial assets. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. Table 17.4 discloses the ageing only of financial assets that are past due but not impaired.

Annual Report 2011-12

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Note 17

Financial instruments (continued)

(c) Liquidity risk Liquidity risk arises when the Trust is unable to meet its financial obligations as they fall due. The Trust operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The Trust’s exposure to liquidity risk is deemed insignificant. Cash for unexpected events is generally sourced from funds held at call. Maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the Balance Sheet. The following tables discloses the contractual maturity analysis for the Trust’s contractual financial liabilities. Table 17.5: Maturity analysis of contractual financial liabilities Carrying amount $

(ii)

Nominal amount $

Less than 1 month $

Maturity dates 1 month to 1 1 year or more year $ $

2012 (i)

Payables : Contractual payables at amortised cost

515,128

515,128

432,018

83,110

0

17,869,941

17,869,941

262,436

13,451,831

4,155,674

26,488

26,488

4,921

10,395

11,172

18,411,557

18,411,557

699,375

13,545,336

4,166,846

609,167

609,167

571,627

37,540

0

16,795,048

16,795,048

167,053

13,369,013

3,258,982

36,894

36,894

945

10,395

25,554

Total 17,441,109 17,441,109 739,625 13,416,948 Notes: (i) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. taxes payable). (ii) Maturity analysis is presented using the undiscounted cash flows.

3,284,536

Other financial liabilities at amortised cost Borrowings: Lease liabilities Total 2011 (i)

Payables : Contractual payables at amortised cost Other financial liabilities at amortised cost Borrowings: Lease liabilities

(d) Market risk The Trust’s exposures to market risk are primarily through interest rate risk and equity price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below. Interest rate risk The Trust manages interest rate risk by undertaking fixed rate financial instruments with maturity profiles mostly spread over 3 to 24 months. The Trust does not enter into interest rate swaps. The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in Table 17.6. In addition, the Trust’s sensitivity to interest rate risk is set out in Table 17.7. Equity price risk The Trust is exposed to equity price risk through investments in managed investment schemes which are invested in domestic equities and direct equity investments. The value of dividend income and imputation credits will also vary. The managed funds are administered by the Myer Family Company. The fund manager on behalf of the Trust closely monitors performance and manages the equity price risk through diversification of its investment portfolio. The Trust’s exposure to equity price risk is set out in Table 17.7.

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Note 17

Financial instruments (continued)

Table 17.6: Interest rate exposure of financial instruments Weighted average effective interest rate 2012

%

Carrying amount

Interest rate exposure Fixed interest rate

$

$

Variable interest rate $

Non-interest bearing $

Financial assets Cash and deposits

4.35%

9,192,875

0

8,617,486

575,389

Sale of goods and services

678,032

0

0

678,032

Accrued investment income

548,404

0

0

548,404

Other receivables

202,567

0

0

202,567

6.15%

19,190,057

19,190,057

0

0

5.04%

2,513,865

205,000

73,174

2,235,691

32,325,800

19,395,057

8,690,660

4,240,083

515,128

0

0

515,128

6.62%

26,488

26,488

0

0

4.58%

17,869,941

1,824,335

12,759,068

3,286,538

18,411,557

1,850,823

12,759,068

3,801,666

9,024,653

77,725

(i)

Receivables :

Investments and other contractual financial assets: Term deposits Equities and managed investment schemes Total financial assets Financial liabilities (i)

Payables : Payables – supplies and services Borrowings – lease liabilities Other financial liabilities

(ii)

Total financial liabilities 2011 Financial assets Cash and cash equivalents

4.61%

9,102,378

(i)

Receivables : Sale of goods and services

273,784

0

0

273,784

Accrued investment income

577,625

0

0

577,625

79,612

0

0

79,612

6.04%

17,356,831

17,356,831

0

0

4.63%

2,658,488

0

42,408

2,616,080

30,048,718

17,356,831

9,067,061

3,624,826

609,167

0

0

609,167

6.62%

36,894

36,894

0

0

4.81%

16,795,048

1,993,340

12,191,803

2,609,905

17,441,109

2,030,234

12,191,803

3,219,072

Other receivables Investments and other contractual financial assets: Term deposits Equities and managed investment schemes Total financial assets Financial liabilities (i)

Payables : Payables – supplies and services Borrowings – lease liabilities Other financial liabilities

(ii)

Total financial liabilities

Notes: (i) The total amounts disclosed here exclude statutory receivables (i.e. amounts owing from Victorian Government, GST input tax credit recoverable, and GST payables). (ii) Weighted average effective interest rate reflects the interest earned and allocated to trust funds held in accordance with the various agreements. Annual Report 2011-12

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Note 17

Financial instruments (continued)

Sensitivity disclosure analysis and assumptions The Trust’s sensitivity to market risk is determined based on the observed range of actual historical data for the preceding fiveyear period, with all variables other than the primary risk variable held constant. The Trust’s fund managers cannot be expected to predict movements in market rates and prices and sensitivity analyses shown are for illustrative purposes only. The following movements are ‘reasonably possible’ over the next 12 months: • a movement of 200 basis points up and down (2011: 200 basis points up and down) in market interest rates (AUD) • a movement of 10 per cent up and down (2011: 10 per cent) for the top ASX 200 index. Table 17.7 discloses the impact on net result and equity for each category of financial instrument held by the Trust at year-end if the above movements were to occur. Table 17.7: Market risk exposure Carrying amount

$

2012 Contractual financial assets Cash and cash equivalents

Interest rate risk

Other price risk

–2 per cent

+2 per cent

–10 per cent

+10 per cent

Net result

Net result

Net result

Net result

$

$

$

$

9,192,875

(172,350)

172,350

0

0

Sale of goods and services

678,032

0

0

0

0

Accrued investment income

548,404

0

0

0

0

Other receivables

202,567

0

0

0

0

19,190,057

(383,801)

383,801

0

0

2,513,865

(5,563)

5,563

(223,569)

223,569

32,325,800

(561,714)

561,714

(223,569)

223,569

Receivables:

Investments and other contractual financial assets: Term deposits Equities and managed investment (i) schemes Total impact

Carrying amount

2011

$

Other price risk

Interest rate risk –2 per cent

+2 per cent

–10 per cent

+10 per cent

Net result

Net result

Net result

Net result

$

$

$

$

Contractual financial assets Cash and cash equivalents

9,102,378

(180,493)

180,493

0

0

Sale of goods and services

273,784

0

0

0

0

Accrued investment income

577,625

0

0

0

0

79,612

0

0

0

0

17,356,831

(347,137)

347,137

0

0

2,658,488

(848)

848

(261,608)

261,608

30,048,718

(528,478)

528,478

(261,608)

261,608

Receivables:

Other receivables Investments and other contractual financial assets: Term deposits Equities and managed investment (i) schemes Total impact

Notes: (i) Non-interest bearing managed funds include $1,477,322 of domestic equities (2011: $2,616,080) and $758,370 of fixed interest trusts (2011: $nil).

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Note 17

Financial instruments (continued)

(e) Fair value The fair values of financial assets and liabilities with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices. The financial assets include holdings in unlisted unit trusts which are recognised in the financial statements at fair value. The Trust considers that the carrying amount of other financial assets and financial liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.

Note 18

Cash flow information

(a) Reconciliation of cash and cash equivalents 2012

2011

$

$

1,100

1,100

Cash at bank

574,289

76,625

Cash on deposit at call

584,917

290,597

7,527,641

7,210,939

504,928

0

Cash on hand

Cash on deposit at call held in trust for Barwon Water Cash on deposit at call held in trust for Melton Shire Council Cash on deposit at call held in trust for Hydrox Nominees Balance as per cash flow statement

0

1,523,117

9,192,875

9,102,378

2012

2011

$

$

(b) Reconciliation of net result for the period to net cash flows from operating activities

Net result for the period

838,788

(25,932)

11,958

63,374

(Gain)/loss on other financial assets held at fair value

368,055

(154,101)

Depreciation and amortisation of non-current assets

206,102

159,783

(150,000)

0

(404,248)

0

(Increase)/decrease in interest receivable

29,221

48,406

(Increase)/decrease in other receivables

15,484

239,841

(Increase)/decrease in other assets

25,421

105,627

Increase/(decrease) in payables

(10,740)

57,357

Increase (decrease) in provisions

182,774

119,670

Increase/(decrease) in other liabilities

650,735

(606,568)

1,763,550

7,457

Non-cash movements: (Gain)/loss on sale of non-current assets

Land bequest Movements in assets and liabilities: (Increase)/decrease in receivables â&#x20AC;&#x201C; Sale of goods and services

Net cash flows from/(used in) operating activities

Annual Report 2011-12

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Note 19

Reserves 2012 $

2011 $

14,616,621

22,605,409

Revaluation increments/(decrements)

0

(6,842,745)

Transferred to non-financial assets available for sale revaluation surplus

0

16,627

0 14,616,621

(1,162,670) 14,616,621

192,920

209,547

Physical asset revaluation surplus

(i)

Balance at the beginning of the financial year

Disposal or transferred out Balance at the end of the financial year Non-financial assets available-for-sale revaluation surplus

(ii)

Balance at the beginning of the financial year Transferred from physical asset revaluation surplus

0

(16,627)

16,627 209,547

0 192,920

3,591,169

2,935,161

124,939

113,303

Donations for reserve and sale of properties

349,636

1,198,406

Funds appropriated and properties acquired

(488,375)

(655,701)

(40,988) 3,536,381

0 3,591,169

1,226,126

1,091,559

Disposal or transferred out Balance at the end of the financial year Donations surplus

(iii)

Balance at the beginning of the financial year Transfers to/(from) accumulated surplus: Interest on funds held less administration fee

Transfers to/(from) other surplus Balance at the end of the financial year Covenant stewardship surplus

(iv)

Balance at the beginning of the financial year Transfers to/(from) accumulated surplus: Interest, dividends, gain or loss on managed funds held less administration fee

(11,756)

67,367

49,800 1,264,170

67,200 1,226,126

Balance at the beginning of the financial year

358,375

358,375

Transfers to/(from) other surplus Balance at the end of the financial year

47,873 406,248

0 358,375

2,713,960

2,612,968

1,500

0

Covenant monitoring Balance at the end of the financial year Properties surplus

Bequest surplus

(v)

(vi) (vii)

Balance at the beginning of the financial year Transfers to/(from) accumulated surplus: New bequest funds Interest, dividends, gain on shares on funds held less administration fee Funds appropriated Transfers to/(from) other surplus Balance at the end of the financial year Total reserves

110,495

150,784

(341,161)

(49,792)

(6,885) 2,477,909 22,510,876

0 2,713,960 22,699,171

Notes: (i) The physical asset revaluation surplus records increments and decrements on the revaluation of non-current assets. (ii) The non-financial assets available-for-sale surplus represents any cumulative income or expense recognised directly in equity relating to a non-financial asset classified as held for sale. (iii) Donations surplus funds are derived from Government grants and donations from other organisations or individuals. These donations are directed towards property purchases or are held in trust for specified purposes. (iv) The covenant stewardship surplus is for monitoring of covenanted properties and approved management expenditure. The Trust has adopted the policy of transferring $600 for each new covenant to the covenant stewardship reserve. (v) The properties surplus is for property purchases and management, educational and legal costs for Trust properties. (vi) Bequest surplus funds are held in trust for specified purposes. (vii) Refer Note 24

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Note 20

Accumulated surplus

Accumulated surplus at the beginning of the financial year

2012

2011

$

$

11,050,058

11,967,557

13,800

(656,008)

Covenant stewardship reserve

(38,044)

(134,567)

Bequest reserve

229,166

(100,992)

Net result for the reporting period

838,788

(25,932)

12,093,768

11,050,058

Transfers (to)/from reserves: Donations reserve

Accumulated surplus at the end of the financial year

Note 21

Responsible persons

In accordance with the Ministerial Directions issued by the Minister of Finance under the Financial Management Act 1994 , the following disclosures are made regarding responsible persons for the reporting period. Names The person who held the positions of ministers and accountable officers in the Trust are as follows: Responsible Minister: The Hon. Ryan Smith, MLC, Minister for Environment and Climate Change Governing Board of Trustees: Camilla Graves (Chairman) Anthea Hancocks (Deputy Chairman) Rod Gowans, PSM Rikki Andrews Sylvia Geddes Dr Gregory Moore Lisa Gay Dr Mick Lumb Dr Rik Thwaites

1 July 2011 to 30 June 2012

1 July 2011 to 30 June 2012 1 July 2011 to 15 August 2011 and 27 September 2011 to 30 June 2012 1 July 2011 to 15 August 2011 and 27 September 2011 to 30 June 2012 1 July 2011 to 15 August 2011 and 27 September 2011 to 30 June 2012 1 July 2011 to 30 June 2012 1 July 2011 to 30 June 2012 1 July 2011 to 30 June 2012 1 July 2011 to 30 June 2012 1 July 2011 to 30 June 2012

Chief Executive Officer Victoria Marles

1 July 2011 to 30 June 2012

Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet. Remuneration received or receivable by the Trustees is in the range $357 –$432 per sitting. Total sitting fees paid in 2011 –12 were $13,902 (2010–11: $16,268). The remuneration of Trustees fell within the band $0 to $9,999 for both 2011-12 and 201011. There were no related party transactions between the Trustees and the Trust. Remuneration received or receivable by the Chief Executive Officer during the reporting period was in the range: $150,000 – $159,999 ($140,000 – $149,999 in 2010–11).

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Note 22

Remuneration of auditors 2012

2011

$

$

Audit or review of the financial statements

12,938

14,400

Total amount

12,938

14,400

Victorian Auditor-General’s Office:

No other services were performed during the reporting period.

Note 23

Subsequent events

There are no events or transactions subsequent to the reporting date which would render any particulars included in the financial statements to be misleading or inaccurate.

Note 24

Correction of prior period error

A prior period error has been identified during the course of 2011 –12 relating to the classification of $402,387 of funds bequeathed from an estate in 1998 –99 and 1999 –2000. At that time the funds were recognised as bequest income and included in the Bequest Surplus Reserve (Note 19) as bequest funds held in trust for specified purposes. Since that time the funds have grown through investment earnings and expenses. The 2011 –12 Financial Statements have been corrected to reflect Trust for Nature’s correct legal status as Trustee of the funds under management. This has had no impact on the purpose of the funds involved. Notes Other liabilities

Reported 2012 $

Restated 2011 $

Reported 2011 $

662,628

663,709

0

17,869,941

16,795,048

16,131,339

Reported 2012 $

Restated 2011 $

Reported 2011 $

2,713,960

2,612,968

3,276,677

1,500

0

0

110,495

150,784

150,784

(341,161)

(49,792)

(49,792)

(6,885)

0

0

2,477,909

2,713,960

3,377,669

13

Funds held awaiting remittance Amateur Gardeners Foundation Total other liabilities Notes Reserves Bequest surplus

19

Balance at the beginning of the financial year Transfers to/(from) accumulated surplus: New bequest funds Interest, dividends, gain on shares on funds held less administration fee Funds appropriated Transfers to/(from) other surplus: Balance at the end of the financial year

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Note 25

Glossary of terms

Commitments Commitments include those operating, capital and other outsourcing commitments arising from non cancellable contractual or statutory sources. Comprehensive result The net result of all items of income and expense recognised for the period. It is the aggregate of operating result and other nonowner movements in equity. Employee benefits expenses Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments, defined benefits superannuation plans, and defined contribution superannuation plans. Financial asset A financial asset is any asset that is: (a) cash; (b) an equity instrument of another entity; (c) a contractual or statutory right: (i) to receive cash or another financial asset from another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will or may be settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or (ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. Financial instrument A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a result of statutory requirements imposed by governments) are not financial instruments. Financial liability A financial liability is any liability that is: (a) a contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will or may be settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or (ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments. Financial statements Depending on the context of the sentence where the term ‘financial statements’ is used, it may include only the main financial statements (i.e. comprehensive operating statement, balance sheet, cash flow statements, and statement of changes in equity); or it may also be used to replace the old term ‘financial report’ under the revised AASB 101 (September 2007), which means it may include the main financial statements and the notes. Grants and other transfers Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can either be operating or capital in nature. While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non-reciprocal transfers. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes. Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached. Annual Report 2011-12

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Note 25

Glossary of terms (continued)

Interest expense Costs incurred in connection with the borrowing of funds. Interest expenses include interest on bank overdrafts and short-term and long-term borrowings, amortisation of discounts or premiums relating to borrowings, the interest component of finance leases repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time. Interest income Interest income includes unwinding over time of discounts on financial assets and interest received on bank term deposits and other investments. Investment properties Investment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the State of Victoria. Net acquisition of non-financial assets (from transactions) Purchases (and other acquisitions) of non-financial assets less sales (or disposals) of non-financial assets less depreciation plus changes in inventories and other movements in non-financial assets. It includes only those increases or decreases in non-financial assets resulting from transactions and therefore excludes write-offs, impairment write-downs and revaluations. Net result Net result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains and expenses (including losses) recognised for the period, excluding those that are classified as other non-owner changes in equity. Net result from transactions/net operating balance Net result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in asset volumes. It is the component of the change in net worth that is due to transactions and can be attributed directly to policies. Non-financial assets Non-financial assets are all assets that are not â&#x20AC;&#x2DC;financial assetsâ&#x20AC;&#x2122;. Other economic flows Other economic flows are changes in the volume or value of an asset or liability that do not result from transactions. It includes gains and losses from disposals, revaluations and impairments of non-current physical and intangible assets; actuarial gains and losses arising from defined benefit superannuation plans; fair value changes of financial instruments; and depletion of natural assets (non-produced) from their use or removal. In simple terms, other economic flows are changes arising from market re-measurements. Payables Includes short and long term trade debt and accounts payable, grants, taxes and interest payable. Receivables Includes trade credit and accounts receivable, accrued investment income, grants and interest receivable. Sales of goods and services Refers to income from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services and work done as an agent for private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use of non-produced assets such as land. User charges includes sale of goods and services income. Supplies and services Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the Trust. Transactions Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the government.

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A ppendices Appendix 1: Trust for Nature Whistleblowers Protection Act Policy Scope and Purpose The Board of Trustees is the governing body of Trust for Nature. The Board is committed to best practice in corporate governance, compliance and ethical behaviour generally. One of the principal responsibilities of the Board includes monitoring compliance with regulatory and ethical requirements. A key test of the corporate governance health in Trust for Nature is whether there are both formal and informal structures in place to enable good news and bad news to travel rapidly to the appropriate destination. This procedure is an important mechanism in being able to satisfy that key test. This procedure covers the organisation’s procedures for dealing with reports made by Trust for Nature staff of suspected improper conduct within the organisation. It also addresses the protection of individuals making reports regarding actual or suspected contravention of the Trust’s ethical and legal standards without fear of reprisal or feeling threatened by doing so. These Procedures aim to:

For the purpose of these procedures, corrupt is defined as: • conduct of any person (whether or not a public official) that adversely affects the honest performance of a public officer’s or public body’s functions; • the performance of a public officer’s functions dishonestly or with inappropriate partiality; • conduct of a public officer, former public officer or a public body that amounts to a breach of public trust; • conduct by a public officer, former public officer or a public body that amounts to the misuse of information or material acquired in the course of the performance of their official functions; or • a conspiracy or attempt to engage in any of the above conduct . The definition of “corrupt conduct” contemplates dishonesty, or at the least the forgoing of public interest for a private benefit. Detrimental Action The Act makes it an offence for a person to take detrimental action against a person in reprisal for a protected disclosure. Detrimental action includes; • Action causing injury, loss or damage • Intimidation or harassment, and

• encourage people to report an issue if they genuinely believe someone has contravened any code of conduct, policies or the law • outline how Trust for Nature will properly deal with all reported improper conduct or unethical behaviour, and • assist in ensuring that serious misconduct or unethical behaviour is identified and dealt with appropriately. Objects of the Act The Whistleblowers Protection Act 2001 commenced operation on 1 January 2002. The purpose of the Act is to encourage and facilitate the making of disclosures of improper conduct by public officers and public bodies. The Act provides protection to a person who makes a disclosure in accordance with the Act, and establishes a system for the matters disclosed, to be investigated and rectifying action to be taken. Who do these Procedures apply to? These procedures apply to all employees, Executive Officers and the Board of Trust for Nature, whether full time, part time or casual at any level of seniority wherever employed. Definitions Improper Conduct A disclosure may be made about improper conduct by a public body or public official. Improper conduct means conduct that is corrupt, a substantial mismanagement of public resources, or conduct involving substantial risk to public health or safety or to the environment. The conduct must be serious enough that if proven would constitute a criminal offence or reasonable grounds for dismissal.

• Discrimination, disadvantage or adverse treatment in relation to a person’s employment, career, profession, trade or business, including the taking of disciplinary action Whistleblowing For the purpose of these procedures, ‘whistleblowing’ is defined as: “the deliberate, voluntary disclosure of individual or organisational malpractice by a person who has or had privileged access to data, events or information about an actual, suspected or anticipated wrongdoing within or by an organisation that is within its ability to control.” Whistleblower For the purpose of these procedures, a whistleblower is defined as: “any person, or any employee, director or contractor of the Trust for Nature, who whether anonymously or not makes or attempts to make a disclosure as defined in s2.1 of the Act.” Protected Disclosure For the purpose of these procedures, protected disclosure is defined as: “any good faith communication based on reasonable grounds that discloses or demonstrates an intention to disclose information that may evidence an improper conduct.”.

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The Reporting System Direct Contact Person Disclosures of improper conduct or detrimental action may be made to the following officer:

Protected Disclosure Coordinator The protected disclosure coordinator has the central role in the internal reporting system. He/She will;

The Protected Disclosure Coordinator:

• Make arrangements for a disclosure to be made privately and discreetly and, if necessary, away from the workplace

Peter Moulton

• Receive any disclosure made orally or in writing (from internal and external whistleblowers)

Regional Operations Manager

• Commit to writing any disclosure made orally

All correspondence, phone calls and emails from internal or external whistleblowers will be referred to the Protected Disclosure Coordinator.

• Take all necessary steps to ensure the identity of the whistleblower and the identity of the person who is the subject of the disclosure are kept confidential

Where a person is contemplating making a disclosure and is concerned about approaching the protected disclosure coordinator in the workplace, he or she can call the protected disclosure coordinator and request a meeting in a discreet location away from the workplace.

• Impartially assess each disclosure to determine whether it is a public interest disclosure

Alternative contact persons A disclosure about improper conduct or detrimental action may also be made directly to the Ombudsman:

• Be responsible for carrying out, or appointing an investigator to carry out, an investigation • Be responsible for overseeing and coordinating an investigation where an investigator has been appointed • Where necessary appoint a welfare manager to support the whistleblower

Ombudsman Victoria Level 3 459 Collins Street Melbourne Victoria 3000 (DX 210174)

• Advise the whistleblower of the progress of an investigation into the disclosed matter

www.ombudsman.vic.gov.au

• Be responsible for ensuring that the organisation carries out its responsibilities under the Act and the guidelines

• Co-ordinate the reporting system used by the organisation • Be a contact point for general advice about the operation of the Act

Tel: (03) 9613 6222 Toll Free: 1800 806 314

• Liaise with the Ombudsman in regard to the Act

Ombudsman: Mr George Brouwer

• Establish and manage a confidential filing system

Tel: (03) 9613 6222

• Collate and publish statistics on disclosures made, and

Roles and Responsibilities Employees Employees are encouraged to report known or suspected incidences of improper conduct or detrimental action in accordance with these procedures. All employees of Trust for nature have an important role to play in supporting those who have made a legitimate disclosure. They must refrain from any activity that is, or could be perceived to be, victimisation or harassment of a person who makes a disclosure. Furthermore, they should protect and maintain the confidentiality of a person they know or suspect to have made a disclosure.

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• Liaise with the Chief Executive Officer. Investigator The protected disclosure coordinator will appoint an investigator as soon as practicable if an investigation is required by the Ombudsman. An investigator may be a person from within an organisation or a consultant engaged for that purpose. The protected disclosure coordinator must ensure that any investigator is aware of the provisions of the Act, including the criminal penalties that apply for breaches of the Act.

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A ppendices C ontinued

Welfare Manager The protected disclosure coordinator will appoint a welfare manager when a protected disclosure is made.

How can a protected disclosure be made? Part 2 of the Act provides that a person may make a disclosure • Orally

The welfare manager is responsible for looking after the general welfare of the whistleblower. The welfare manager will:

• In writing

• examine the immediate welfare and protection needs of a whistleblower who has made a disclosure and seek to foster a supportive work environment

• Anonymously

• advise the whistleblower of the legislative and administrative protections available to him or her • listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making a disclosure • keep a contemporaneous record of all aspects of the case management of the whistleblower including all contact and followup action, and • endeavour to ensure the expectations of the whistleblower are realistic Receiving and Assessing Disclosures When Trust for Nature receives a complaint, report or allegation of improper conduct or detrimental action, the first step is to determine whether the disclosure has been made to the right person or body and then whether the matter falls under the Act. There will be situations where an allegation of improper conduct or detrimental action may occur, but the person making the allegation has not referred to the Act. If an allegation raises issues that may fall within the provisions of the Act, the protected disclosure coordinator should assess the allegations in terms of the Act. The protections of the Act may apply to a disclosure regardless of whether or not the individual making the disclosure specifically requests so. For the protections of Part 2 to apply, a disclosure must be made in accordance with Part 2 of the Act. Disclosures made under Part 2 of the Act are called protected disclosures. The following questions can be used to assess whether the complaint, report or accusation is a protected disclosure. Has the disclosure been made in accordance with Part 2 of the Act? Where a disclosure has been received by the protected disclosure coordinator, he/she will assess whether the disclosure has been made in accordance with Part 2 of the Act and is, therefore, a protected disclosure.

• Electronically

This means disclosures may be received from anonymous sources, including unverified email addresses, phone calls, by facsimile, in a conversation or meeting. If the disclosure is made orally, the protected disclosure coordinator should ensure that contemporaneous notes are made of the disclosure. If the disclosure comes from an email address from which the identity of the person making the disclosure cannot be determined, the disclosure should be treated as an anonymous disclosure. Any person can submit an allegation or complaint. The Act does not require the individual to be an employee of Trust for Nature. However, the complaint must be made by an individual and not by a company, organisation or group of people. Has the disclosure been made to the appropriate person? For the disclosure to be responded to by Trust for Nature, it must concern the CEO, the Board or an employee. If the disclosure concerns an employee, officer or member of another public body, the person who has made the disclosure must be advised of the correct person or body to whom the disclosure should be directed. If the disclosure has been made anonymously, it should be referred to the Ombudsman. Does the disclosure contain the essential elements of a protected disclosure? To be a protected disclosure, a disclosure must satisfy the following criteria; • did a natural person (that is, an individual person rather than a corporation) make the disclosure? • does the disclosure relate to conduct of a public body or public officer acting in their official capacity? • is the alleged conduct either improper conduct or detrimental action taken against a person in reprisal for making a protected disclosure? • does the person making a disclosure have “reasonable grounds” for believing the alleged conduct has occurred? The phrase “reasonable grounds for belief” requires more than a suspicion and the belief must have supporting facts and circumstances. For reasonable grounds of belief, the usual test applied is whether a reasonable person would have formed that belief, having regard to all the circumstances.

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Where a disclosure is assessed to be a protected disclosure, the protected disclosure coordinator will determine whether the disclosure is a public interest disclosure. Section 28 of the Act requires a public agency to reach its decision about the disclosure within 45 days of receiving it (see Section 7.5). Where a disclosure is assessed not to be a protected disclosure, the matter does not need to be dealt with under the Act. The protected disclosure coordinator will then decide how the matter should be responded to, and will advise the person of her assessment. The protected disclosure coordinator will also indicate on what grounds he/ she has made his/her assessment, and should advise the person of his or her right to appeal to the Ombudsman. Is the disclosure a public interest disclosure? Where the protected disclosure coordinator has received a disclosure that has been assessed to be a protected disclosure, the protected disclosure coordinator will determine whether the disclosure amounts to a public interest disclosure. This assessment will be made within 45 days of the receipt of the disclosure. In reaching a conclusion as to whether a protected disclosure is a public interest disclosure, the protected disclosure coordinator will consider whether the disclosure shows, or tends to show, that the public officer to whom the disclosure relates: • Has engaged, is engaging or proposes to engage in improper conduct in his or her capacity as a public officer or • Has taken, is taking or proposes to take detrimental action in contravention of section 18 Legal interpretation of the phrase “shows or tends to show” generally indicates that the disclosure must reveal or make known the conduct. Where the protected disclosure coordinator concludes that the disclosure amounts to a public interest disclosure, he or she will within 14 days: • Notify the person who made the disclosure of that conclusion, and • Refer the disclosure to the Ombudsman for a determination as to whether the Ombudsman is satisfied that it is a public interest disclosure Where the protected disclosure coordinator concludes that the disclosure is not a public interest disclosure, he or she will within 14 days: • Notify the person who made the disclosure of that conclusion, and • Advise that person that he or she may request the public body to refer the disclosure to the Ombudsman for a formal determination as to whether the disclosure is a public interest disclosure, and that this request must be made within 28 days of the notification.

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Notification to the whistleblower is not necessary where the disclosure has been made anonymously. If a determination is made that the disclosure is not a public interest disclosure, it does not alter the decision that it is a protected disclosure. What happens after a report is made? The Protected Disclosure Coordinator will investigate all reported concerns appropriately and will, where applicable, provide feedback regarding the investigation’s outcome. He/She will take the necessary course of action in response to a report and if no action is taken he/she will give you an explanation. Confidentiality Trust for Nature will take all reasonable steps to protect the identity of the whistleblower. Maintaining confidentiality is crucial in ensuring reprisals are not made against a whistleblower. The identity and the contents of any report will be kept confidential and no details of the staff member’s participation in this process will be included in the relevant personnel file or be referred to in any work performance review. The report will not be disclosed to anyone except those that are actively involved in investigating the matters raised in the report. Trust for Nature management will ensure all files, whether paper or electronic, are kept in a secure room and can only be accessed by the protected disclosure coordinator, the investigator or welfare manager (in relation to welfare matters). All printed material will be kept in files that are clearly marked as a Whistleblower Protection Act matter, and warn of the criminal penalties that apply to any unauthorised divulging of information concerning a protected disclosure. All electronic files will be produced and stored on a stand-alone computer and be given password protection. Backup files will be kept on floppy disc, where documents will be password protected. All materials relevant to an investigation, such as tapes from interviews, will also be stored securely with the whistleblower files. Trust for Nature employees will not email or fax to a machine to which staff have general access documents relevant to a whistleblower matter and will ensure all phone calls and meetings are conducted in private. Protection of the Whistleblower Trust for Nature is committed to the protection of genuine whistleblowers against detrimental action taken in reprisal for the making of protected disclosures. The protected disclosure coordinator is responsible for ensuring whistleblowers are protected from direct and indirect detrimental action, and that the culture of the workplace is supportive of protected disclosures being made. The protected disclosure coordinator will advise the whistleblower that it is in their own interests to keep disclosures confidential by only discussing related matters with authorised persons within Trust for Nature or offices of the Ombudsman or other persons as authorised by law.

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A ppendices C ontinued

The protected disclosure coordinator will appoint a welfare manager to all whistleblowers who have made a protected disclosure. The welfare manager’s role is defined in 6.4. All employees will be advised that it is an offence for a person to take detrimental action in reprisal for a protected disclosure. The maximum penalty is a fine of 240 penalty units ($25,155) or two years imprisonment or both. The taking of detrimental action in breach of this provision can also be grounds for making a disclosure under the Act and can result in an investigation. Whistleblowers implicated in improper conduct Trust for Nature acknowledges that the act of whistleblowing should not shield whistleblowers from the reasonable consequences flowing from any involvement in improper conduct. A person’s liability for his or her own conduct is not affected by the person’s disclosure of that conduct. However, in some circumstances, an admission may be a mitigating factor when considering disciplinary or other action. Management of the person against whom a disclosure has been made Trust for Nature management recognises that employees against whom disclosures are made must also be supported during the handling and investigation of disclosures. Trust for Nature management will take all reasonable steps to ensure the confidentiality of the person who is the subject of the disclosure during the assessment and investigation process. Where investigations do not substantiate disclosures, the fact that the investigation has been carried out, the results of the investigation, and the identity of the person who is the subject of the disclosure will remain confidential. The protected disclosure coordinator will ensure the person who is the subject of any disclosure investigated by or on behalf of Trust for Nature is: • informed as to the substance of the allegations • given the opportunity to answer the allegations before a final decision is made

Criminal Offence Trust for Nature will ensure officers appointed to handle protected disclosures and all other employees are aware of the following offences created by the Act: It is an offence for a person to take or threaten action in reprisal when: • a protected disclosure has been made • a person believes a protected disclosure has been made • a person believes that another person intends to make a protected disclosure. The Act provides a maximum penalty of a fine of 240 penalty units ($25,155) or two years imprisonment or both. It is an offence for a person to divulge information obtained as a result of the handling or investigation of a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty units ($6,289) or six months imprisonment or both. It is an offence for a person to obstruct the Ombudsman in performing his responsibilities under the Act. The Act provides a maximum penalty of 240 penalty units ($25,155) or two years imprisonment or both. It is an offence for a person to knowingly provide false information under the Act with the intention that it be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units ($25,155) or two years imprisonment or both. Access to the Procedures These Procedures will be available for viewing by any employee of Trust for Nature on the group server. It will also be viewable on Trust for Nature’s website. Review of the Procedures These procedures will be reviewed annually to ensure it complies with relevant laws and remains relevant and effective. This policy and procedure document may be changed at the discretion of Trust for Nature management.

• informed as to the substance of any adverse comment that may be included in any report arising from the investigation, and • has his or her defence set out fairly in any report. Where the allegations in a disclosure have been investigated, and the person who is the subject of the disclosure is aware of the allegations or the fact of the investigation, the protected disclosure coordinator will formally advise the person who is the subject of the disclosure of the outcome of the investigation. Trust for Nature management will give full support to a person who is the subject of a disclosure where the allegations contained in a disclosure are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, Trust for Nature management will consider any request by that person to issue a statement of support setting out that the allegations were clearly wrong or unsubstantiated.

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T R U S T f o r N AT U R E

a n n ua l r e p ort 2 0 1 1 - 1 2 Trust for Nature Level 5/379 Collins Street, Melbourne VIC 3000 Phone: (03) 8631 5888 Fax: (03) 9614 6999 Freecall: 1800 99 99 33 (Australia only) Email: trustfornature@tfn.org.au www.trustfornature.org.au

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