Annual Report 2012-2013 - Parliament of Victoria · 2013. 9. 18. · Barwon river, east moorabool river and west moorabool river, and from two ... in 2012-2013, Barwon water dried

ANNUAL REPORT2012-2013

61-67 Ryrie Street Geelong Victoria 3220 PO Box 659 Geelong Victoria 3220

1300 656 007

www.barwonwater.vic.gov.au

Barwo

n Water A

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ual Rep

ort 20

12-2013

Water District

Lakes

Barwon Water reservoir

Special water supply catchment

Water channel/pipelines

Main sewer

Water service basin/tank

Water treatment plant

Groundwater production bores

Water reclamation plants

Sewer Flow Management Facility

Recycled Water Plant

Recycled water tank

Recycled water pipeline

Outfall

Service area

Barwon Water is always looking for ways to improve its practices to reduce its environmental footprint. This extends to the paper and processes it uses.

This report has been printed on EcoStar 100% recycled stock.

Additional copiesThis annual report is available for viewing or download from Barwon Water’s website www.barwonwater.vic.gov.au

As part of Barwon Water’s goal to continually improve its environmental performance, it prints limited numbers of the annual report. Barwon Water encourages those with internet access to view the report online. If you require any additional printed copies, please contact Barwon Water using one of the below methods.

Your feedbackBarwon Water welcomes your feedback on its performance and the content of this report.

Email: [email protected] Telephone: 1300 656 007 Calling from overseas: +61 3 5226 2500 In writing: PO Box 659 Geelong Victoria 3220 In person: 61-67 Ryrie Street Geelong Victoria

ISSN 1838-2916 (Print) ISSN 1838-2924 (Online)

© Barwon Region Water Corporation 2013. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

GSDM 11279

Cover image: Barwon Water employees respond to faults and emergencies 24-hours a day, seven days a week.

Photograph: Casey Tomkins.

PART 4 – CORPORATe INfORmATION | PART 5 – PeRfORmANCe RePORT | PART 6 – fINANCIAl STATemeNTS | PART 7 – dISClOSuRe INdexSeRVICe AReA mAP | PART 1 – YeAR IN ReVIeW | PART 2 – WATeR CONSumPTION ANd dROuGhT ReSPONSe | PART 3 – eNVIRONmeNTAl & SOCIAl SuSTAINABIlITY

BARWON WATeR ANNuAl RePORT 2012-2013 932

Part 4 – CorPorate information | Part 5 – PerformanCe rePort | Part 6 – finanCial statements | Part 7 – disClosure index

Barwon water annual rePort 2012-2013 3

contentsservice area map 2

Part 1 – Year in review 4about us 4

at a glance 6

message from the Chairman and managing director 7

summary of financial results 9

Part 2 – water consumption and drought response 12water consumption report 12

Corporate water consumption 13

major non-residential water users 13

drought response plan 14

Part 3 – environmental and social sustainability 15 environmental sustainability

– environmental Consultative Committee report 15

– water supply demand strategy (2012-2062) 15

– recycled water 16

– Conservation programs and initiatives 16

– Catchment management and biodiversity 17

– Greenhouse gas emissions 19

– Bulk entitlement reporting 22

social sustainability

– Customer Consultative Committee report 26

– Community service obligations 27

Part 4 – Corporate information 28organisational structure 28

Board committees 29

Board directors 30

employment data 33

Health, safety and environment 34

access to information 36

other acts 38

applicable policies 39

Part 5 – Performance report 43

Part 6 – financial statements 48

Part 7 – disclosure index 91

4

serviCe area maP | Part 1 – Year in review | Part 2 – water ConsumPtion and drouGHt resPonse | Part 3 – environmental & soCial sustainaBilitY

Year in reviewPart 1

about usBarwon water (Barwon region water Corporation) is victoria’s largest regional urban water corporation. its history dates back to the establishment of the Geelong municipal waterworks trust in 1908.

Barwon water was constituted in february, 1994. for the 2012-2013 reporting period, Barwon water operated as a statutory corporation under the Water Act 1989.

Barwon water provides high quality water, recycled water and sewerage services to more than 295,000 permanent residents over 8,100 square kilometres. over the holiday period, the serviced population can reach more than 515,000 people.

as a major employer in the region, Barwon water has almost 400 operational, engineering, strategic planning, financial and administrative employees.

our regionour region of responsibility stretches from little river and the Bellarine Peninsula in the east to Colac in the west, and from meredith and Cressy in the north to apollo Bay on victoria’s south-west coast.

the City of Greater Geelong, Borough of Queenscliffe, surf Coast and Colac otway shires and part of Golden Plains shire are incorporated in our service area.

assets– 12 major reservoirs

– 9 water treatment plants

– 2 water pre-treatment plants

– 11 water reclamation plants

– 2 groundwater fields

– 237 pumping stations (49 water; 188 sewerage)

– 19 water basins

– 33 water tanks

– 6,230 kilometres of pipes

water sourcesGeelong region’s water is supplied by three major surface water sources – the Barwon river, east moorabool river and west moorabool river, and from two underground aquifers.

the Barwon river system, from its otway ranges catchment, typically supplies 80 per cent of the water for Geelong, the Bellarine Peninsula and surf Coast via the wurdee Boluc reservoir and water treatment plant. the balance is supplied from catchments on the moorabool river system, which provide water to the moorabool water treatment plant at she oaks, north of lethbridge. the moorabool system also provides water to Bannockburn, Gheringhap, teesdale, shelford, meredith and inverleigh.

no water was pumped from the anglesea or Barwon downs borefields during 2012-2013.

supplies in the Colac and otway regions are drawn from five separate sources, all located in the forested catchments of the otway ranges.

the Colac system provides water to urban and rural districts extending as far north as Cressy. Gellibrand, aireys inlet/ fairhaven, apollo Bay/skenes Creek and lorne have their own supply systems.

water customersdomestic customers comprise 91.9 per cent of the customer base, with the industrial and commercial sectors accounting for the remaining 8.1 per cent. around 32 per cent of metered consumption is attributed to non-domestic customers.

water reclamation plantsBarwon water has 11 water reclamation plants, 10 of which are governed by environmental Protection authority (ePa) victoria licensing requirements. Black rock, anglesea, apollo Bay and lorne plants release water through ocean outfalls. Plants at aireys inlet, Bannockburn, Portarlington, Birregurra and winchelsea are land-based systems. water from the Colac facility is released into lake Colac. the northern water Plant is an advanced recycled water facility that has no disposal to water or land.

recycled waterall water reclamation plants produce water suitable for recycling. Barwon water achieved 21 per cent water recycling in 2012-2013 and has a water recycling target of 25 per cent by 2015.

Biosolidsin 2012-2013, Barwon water dried 45,079 tonnes of wet biosolids to produce 12,775 tonnes of dried biosolids product. this was a combination of air drying and the new thermal drying facility.



future growthover the next five years, Barwon water will commit $358 million to capital works. this will ensure the completion of a number of major projects that will deliver water security to the region. it will also guarantee delivery of services in an efficient, cost-effective and environmentally responsible manner, and the capacity to meet future growth and development.

Corporate GovernanceBarwon water is established under the Water Act 1989. the Honourable Peter walsh, mla, minister for water, was the responsible minister during the reporting period.

since July 28, 2004, Barwon water has operated under a statement of obligations issued by the minister for water under section 41 of the Water Industry Act 1994.

the statement imposes obligations on Barwon water regarding the performance of its functions and exercise of powers. Barwon water is required to monitor compliance with the obligations set out in the statement, report on non-compliance and take remedial action in relation to non-compliance.

on January 1, 2004, the essential services Commission became the economic regulator of the victorian water sector. the commission’s role encompasses regulation of prices, service standards and market conduct.

strategic intentBarwon water’s strategic intent is the blueprint for the future. the plan encompasses a promise to stakeholders, strategic directions and objectives for the business and actions for employees.

the strategic intent forms a framework for Barwon water to become a high performance organisation. it outlines an intention to build on partnerships with the community and plans to provide environmental leadership to ensure a sustainable future for the region.

the strategic intent is based on five strategic directions.

in 2012-2013 the five key goals were:

– delivering the service

– securing the future

– Building a high performance organisation

– maximising financial performance

– engaging customers, stakeholders and community.

Barwon water’s 2013-2014 strategic intent can be obtained at: www.barwonwater.vic.gov.au or by telephoning 1300 656 007.

our promise

“We promise to provide sustainable water and sewerage management to our community through innovation, leadership, real community relationships and a high performance workforce.”

our values– respect

– High performance

– innovation

– relationships

– leadership

6


at a glance

Year in review

2012-13 Change (%)

2011-12 Change (%)

2010-11 Change (%)

2009-10 Change (%)

2008-09 Change (%)

Population served (water) 295,799 1.7 290,995 2.0 285,393 1.5 281,087 1.7 276,260 1.4

Population served (sewerage) 269,270 1.9 264,261 2.0 259,053 1.6 254,917 1.8 250,454 1.5

Connected properties (water) 142,494 1.8 139,933 1.9 137,367 1.7 135,066 1.6 132,905 1.8

Connected properties (sewerage) 128,326 2.0 125,811 1.8 123,632 2.1 121,054 1.5 119,223 1.9

Water treatment plant volumes (megalitres)

34,220 4.6 32,729 7.9 30,326 -0.8 30,583 -5.9 32,493 2.0

Water reclamation plant volumes (megalitres)

24,879 4.2 23,871 2.9 23,192 20.0 19,325 1.4 19,061 -8.4

Employee numbers*# 394 -5.5 417 2.5 407 0.74 404 8.0 374 4.2

Number of days lost to injury 10 -16.6 12 -90.1 121 68.0 72 -57.4 169 38.5

Total revenue ($'000) 200,551 -9.3 221,111 43.1 154,567 10.5 139,918 10.0 127,236 15.5

Net operating result (before income tax) ($'000)

28,325 -44.0 50,589 108.1 23,864 31.4 18,159 27.0 14,299 120.2

Total assets ($'000) 2,269,477 7.3 2,114,938 10.8 1,908,690 58.2 1,206,538 6.0 1,138,245 6.6

Capital expenditure ($'000) 154,065 -31.1 223,654 26.4 176,891 87.5 94,318 9.2 86,357 48.4

Notes* Measured as full-time equivalent (FTE) employees

# The Australian Bureau of Statistics (ABS) develops and maintains standard occupation coding structures for labour market analysis. The primary ABS occupation coding structure is known as ANZSCO (Australian and New Zealand Standard Classification of Occupations). Barwon Water utilises ANZSCO as its occupational reporting model.



Barwon Water’s Board has taken on board the clear

message from customers and stakeholders to keep

corporate and operational expenditure down. This has

allowed the organisation to re-calibrate its focus and

direction to one of affordability.

the corporation’s commitment to minimising prices was realised with the finalisation of the 2013-2018 water Plan during the past year.

in its final determination on the strategic plan, the esC has signed off an average decrease of 1.6 per cent a year for five years, excluding CPi.

in developing the plan, Barwon water was conscious of cost-of-living pressures on the community.

accordingly, the corporation switched its focus to holding down customer prices and continuing the efficient delivery of quality services.

the esC is satisfied the pricing structure will provide sufficient revenue to deliver projects and expected levels of service. Barwon water will be able to maintain the system to a high standard and meet forecast growth.

the plan outlines total required revenue of $872 million to fund operations and capital expenditure.

as was the case in the 2008 plan, growth is still the main driver for capital expenditure. However, with greater Geelong’s water future secured until 2050 through major projects such as the anglesea borefield, northern water Plant and Black rock recycled water Plant, the infrastructure required over the next few years is on a much smaller scale.

new projects include planning and designing Colac’s water supply upgrade, mains replacement and renewals and upgrades of Pettavel water storage basin and the region’s largest sewage treatment facility, Black rock water reclamation Plant.

a key focus during 2012-2013 has been an organisational change program. the program encompasses an efficiency and effectiveness review, departmental restructures, the alliance transition back to Barwon water and a voluntary departure Package (vdP) program in some areas.

the efficiency and effectiveness review has allowed Barwon water to deliver price decreases, excluding CPi, in the 2013-2018 water Plan.

the corporation is investigating further opportunities for efficiencies and savings, particularly in relation to service delivery with the long-term objective of maintaining customer affordability in the foreseeable future.

the renewed focus on service delivery comes at a time when several major projects are reaching completion.

in January, 2013, victorian water minister Peter walsh, mla, opened the largest biosolids drying plant of its type in the southern hemisphere located adjacent to the Black rock water reclamation Plant.

the $77 million fully-enclosed thermal drying facility converts biosolids – a by-product of the sewage treatment process – into nutrient-rich farm fertiliser.

the facility is operated by Plenary environment as a public-private partnership.

in april, 2013, the region’s first Class a recycled water facility, the northern water Plant, was officially opened by federal Parliamentary secretary for sustainability and urban water amanda rishworth and water minister Peter walsh, mla.

the opening was the culmination of a decade of planning, consultation and construction.

in 2003, Barwon water began a major investigation into managing increasing sewage from northern Geelong. at the same time, shell Geelong refinery was looking at ways to improve the quality of its wastewater and introduce recycled water to reduce drinking water use.

the northern water Plant was a natural fit to meet the infrastructure needs of both organisations.

the $94 million water facility will save about two billion litres of drinking water every year, meet projected growth across Geelong’s northern suburbs and avoid costly and disruptive upgrades of the sewerage system through central Geelong.

MessaGe FroM the chairMan & ManaGinG Director

Michael King, Chairman Joe Adamski, managing director

8


at the time of writing, preparations were underway to officially open the corporation’s second Class a facility, the Black rock recycled water Plant.

Commissioning was completed in June, 2013, and the plant is ready to supply Class a water to the region’s first residential dual pipe developments at armstrong Creek and torquay north once distribution infrastructure has been completed.

this distribution infrastructure is being constructed by the Barwon water alliance, which had another successful year.

the alliance, a private sector partnership between Barwon water, design and engineering specialists GHd and construction company John Holland, completed 25 projects with a combined value of $100 million during 2012-2013.

Projects covered a broad scope of works, including sewer, water and recycled water infrastructure, water reclamation facilities, reservoir works, pump stations and tanks.

a highlight was the beginning of construction of apollo Bay’s new water storage.

the project involves a new 250-million litre storage, a pump station to harvest water from the Barham river and another pump station and pipeline to transfer supplies to the treatment plant at marengo.

the new storage will boost the existing 125-million litre basin at marengo and ensure water security for apollo Bay, marengo and skenes Creek.

over the year, the alliance worked with 102 different companies to deliver these works and inducted more than 400 people.

delivering quality services remains one of the corporation’s highest priorities.

eighteen out of 21 essential services Commission service standards targets were met in 2012-2013.

finally, we thank our fellow directors for their commitment, guidance and continuing professionalism and recognise the valuable contribution of employees across all areas of the business

in addition, we acknowledge the ongoing support of victorian and australian governments and the co-operation of the various agencies.

in accordance with the Financial Management Act 1994, we are pleased to attest that Barwon water’s annual report is compliant with all statutory reporting requirements.

Michael King

Chairman

Joe Adamski

managing director

MessaGe FroM the chairMan & ManaGinG Director



suMMarY oF FinanciaL resuLts

financial summaryBarwon water continued to deliver financially sustainable results during 2012-2013. the reporting period marked the final year of Barwon water’s five-year water Plan, which focussed on increased capital investment to secure water supplies for future growth. the 2013-2018 water Plan will focus on consolidation. this process is underway, with savings achieved across all operational areas of the business.

debt levels increased during the year to $497 million. responsible management and levels of borrowings remain an effective means of funding critical infrastructure projects that have a long-term benefit to the community while minimising the cost impacts of the corporation’s services. Barwon water remains committed to managing debt levels and ensuring the long-term financial health of the corporation is not impacted.

Challenges overcomeBarwon water’s focus for the future is customer affordability.

as a result, the corporation’s key focus and challenge was driving efficiencies across the business to reduce costs without impacting its customer base. this included evaluating all facets of the corporation’s operations and ways departments could continue to operate efficiently on a lower cost base.

this was successfully achieved with prices (excluding the consumer price index) to decrease by 1.6 per cent a year over the next five years.

significant changes in financial positionBarwon water’s ongoing commitment to long-term service delivery through adequate and efficient infrastructure has provided for investment in the following key areas:

– $59 million on recycled water infrastructure

– $56.5 million on water treatment, quality and delivery infrastructure

– $28.4 million on environmentally responsible wastewater collection, treatment and disposal.

investment in infrastructure was funded through $57.4 million in funds from operations, new borrowings of $85.5 million and government grants of $6.4 million. as detailed earlier, the increase in debt levels is prudently managed with a long-term sustainable outlook.

major changes or factors affecting performancethe net result before tax was a surplus of $28.3 million. this exceeded the target of $24.5 million by $3.8 million. a combination of factors contributed to achieving this result, including higher revenue and savings in operational expenditure.

events subsequent to balance dateno material events have occurred after balance date.

10



Financial Result

2012-13($’000)

2011-12($’000)

2010-11($’000)

2009-10($’000)

2008-09($’000)

Tariff revenue 168,411 150,477 132,324 119,054 106,514

Capital revenue 28,186 65,649 15,837 14,689 10,638

Government contributions 583 209 675 374 2,210

Other revenue 3,371 4,776 5,731 5,801 7,874

Total revenue 200,551 221,111 154,567 139,918 127,236

Operating expenditure 79,246 91,984 77,930 75,758 72,140

Depreciation expenditure 54,171 48,995 31,639 29,989 28,337

Finance costs 34,291 24,917 16,622 11,427 7,972

Other expenditure 4,518 4,626 4,512 4,585 4,488

Total expenditure 172,226 170,522 130,703 121,759 112,937

Net result before tax 28,325 50,589 23,864 18,159 14,299

Current assets 55,827 58,838 45,341 28,014 33,465

Non-current assets 2,213,649 2,056,100 1,863,349 1,178,524 1,104,780

Total assets 2,269,477 2,114,938 1,908,690 1,206,538 1,138,245

Current liabilities 93,568 95,670 74,695 58,694 39,672

Non-current liabilities 751,062 621,295 496,439 216,004 186,922

Total liabilities 844,630 716,965 571,134 274,698 226,594

Net cash flows from operations 57,428 98,463 45,237 35,689 34,377

Payments for property, plant and equipment (including infrastructure) 155,462 228,364 167,249 90,390 76,494

Performance indicator 2012-13 2011-12 2010-11 2009-10 2008-09

Internal financing ratio 36.94% 43.12% 27.05% 39.48% 44.94%

Gearing ratio 24.09% 19.47% 15.69% 15.40% 12.80%

Interest cover (EBIT) 1.83 times 3.09 times 2.49 times 2.60 times 2.85 times

Interest cover (Cash) 3.04 times 5.48 times 4.09 times 4.49 times 5.78 times

Return on assets 2.84% 3.72% 2.56% 2.50% 2.00%

Return on equity 1.38% 2.59% 1.47% 1.40% 1.10%

summary of financial results

summary of financial performance




Capital expenditure

The $23 million spent on water headworks projects included:

– $11 million for the apollo Bay bulk water supply

– $ 1.4 million for the melbourne to Geelong pipeline

– $ 1.3 million for the Bostock reservoir outlet pipework replacement.

The $21.6 million spent on major transfer & distribution projects included:

– $4 million for the lovely Banks basin lining and covering

– $3.4 million for the Bannockburn pump station upgrade

– $2 million for the Bannockburn tank.

Other major water infrastructure projects included:

– $3.6 million for the armstrong Creek Keystone water mains stage 1

– $3.4 million for water mains replacements

– $1.3 million for the apollo Bay water treatment plant augmentation.

A significant increase in investment in recycled water infrastructure included:

– $19.5 million for the Black rock recycled water Plant

– $12.7 million for the armstrong Creek recycled water transfer pipeline

– $8.3 million for the northern water Plant.

Investment in sewerage infrastructure included:

– $7.8 million for the armstrong Creek trunk sewer (east)

– $2.4 million for the Queenscliff sewer pump station no.11

– $2.3 million for the Bannockburn water reclamation plant treatment upgrade.

Item 2012-13$’000

Change %

2011-12$’000

Change %

2010-11$’000

Change %

2009-10$’000

Change %

2008-09$’000

Change %

Water supply

Headworks 23,039 -45.2 42,044 -34.2 63,935 150.0 25,575 -2.4 26,196 67.2

Water treatment and quality 2,840 116.8 1,310 -48.2 2,527 -25.2 3,379 -40.2 5,650 -15.3

Major transfer and distribution 21,620 10.7 19,531 -3.4 20,227 58.3 12,775 -13.2 14,724 98.2

Reticulation 9,028 3.3 8,740 -28.2 12,173 37.1 8,881 1.9 8,711 54.2

Total water 56,528 -21.1 71,624 -27.6 98,862 95.3 50,610 -8.5 55,283 56.1

Sewerage

Water reclamation and disposal

3,745 -20.1 4,687 134.2 2,001 56.2 1,281 -8.8 1,404 -79.2

Main sewers 21,407 -47.8 41,019 7.8 38,043 86.4 20,408 26.0 16,191 200.3

Reticulation and other 3,235 -17.9 3,942 -56.4 9,049 28.2 7,056 30.0 5,429 134.2

Total sewerage 28,388 -42.8 49,649 1.1 49,093 70.8 28,745 24.8 23,024 59.3

Recycled water

Total recycled water 58,970 -37.1 93,729 334.8 21,555 151.2 8,580 994.9 784 50.5

Other works and services

Building 228 162.1 87 -79.4 422 -5.8 448 -6.7 480 -9.1

Corporate information 9,436 102.4 4,663 182.1 1,653 -27.2 2,271 6.6 2,131 -4.7

Other corporate 514 -86.8 3,901 -26.5 5,306 44.8 3,665 -21.3 4,656 -7.3

Total other works 10,178 17.6 8,652 17.2 7,381 15.6 6,383 -12.2 7,267 -6.7

Total 154,065 -31.1 223,654 26.4 176,891 87.5 94,318 9.2 86,357 48.4

12


water consuMption anD DrouGht response

Part 2

Bellarine Peninsula: Barwon Heads, Bellarine, Breamlea, Clifton Springs, Curlewis, Drysdale, Indented Head, Mannerim, Marcus Hill, Ocean Grove, Point Lonsdale, Portarlington, Queenscliff, St Leonards, Swan Bay, Wallington

Geelong urban includes: Anakie, Avalon, Balliang, Bamganie, Bannockburn, Batesford, Birregurra, Fyansford, Gheringhap, Inverleigh, Leopold, Lethbridge, Little River, Marshall, Maude, Meredith, Modewarre, Moorabool, Moriac, Mount Moriac, Murgheboluc, She Oaks, Shelford, Staughton Vale, Sutherlands Creek, Teesdale, Thompson, Winchelsea, Wurdiboluc

2012-13 Change %

2011-12 Change %

2010-11 Change %

2009-10 Change %

2008-09 Change %

Apollo Bay 232 14.8 202 3.7 195 -10.6 218 7.9 202 1.6

Aireys Inlet 109 11.9 97 12.8 86 -10.4 96 -5.0 101 0.9

Anglesea 344 11.5 309 10.8 279 -2.2 285 -1.0 288 2.0

Bellarine Peninsula 3,971 11.1 3,575 10.1 3,246 -5.5 3,437 -2.1 3,512 3.7

Colac & disctrict 2,950 14.4 2,578 8.5 2,376 -9.6 2,629 -8.3 2,866 -5.1

Geelong urban 21,430 1.4 21,143 6.2 19,909 0.5 19,807 -6.2 21,114 -1.2

Lorne 302 -0.2 303 15.4 262 -9.9 291 -2.3 298 27.9

Skenes Creek 28 9.6 26 11.9 23 -10.8 26 0.0 26 -6.4

Torquay 1,358 11.7 1,217 7.3 1,134 0.9 1,124 -2.3 1,151 12.8

Total 30,726 4.3 29,450 7.1 27,510 -1.4 27,913 -5.6 29,558 0.97

regional metered water consumption (megalitres)

residential and non-residential metered water consumption

2012-13

Residential Non-residential

District Number of Water

Customers1

Volume consumed2

(ML)

Number of Water

Customers1

Volume consumed2

(ML)

Total consumption

(ML)

Average annual consumption3

(ML)

Geelong & District 118,544 18,693 10,050 8,340 27,033 25,689

Colac & District 6,548 1,655 1,109 1,295 2,950 2,837

Apollo Bay/Skenes Creek 2,104 186 169 101 287 277

Lorne 2,234 223 152 79 302 289

Aireys Inlet/Fairhaven 1,538 143 46 10 153 137

Total 130,968 20,901 11,526 9,824 30,726 29,229

1. This is the total number of properties connected to Barwon Water’s water supply service.2. Metered consumption excludes non-revenue water.3. Average calculated over three years.



Corporate water consumptionthis is the eighth year Barwon water has officially measured employee water consumption for three of its sites/offices.

usage figures for other Barwon water sites are difficult to determine and compare, as measurements include operational consumption as well as employee water use.

water consuMption anD DrouGht response

non-revenue waterTotal non-revenue water (ML) 2012-13 2011-12 2010-11 2009-10 2008-09

Barwon Water service region 3,495 3,279 2,816 2,670 2,935

2012-13

Location Total full-time equivalent employees

Office space (m2)

Water consumption (kL)

kL/FTE Water consumption by office space

(l/m2)

40-44 Lonsdale Street, South Geelong

146 1,740 615 4.21 353.45

61-67 Ryrie Street, Geelong 147 4,500 1,725 11.73 383.33

33 Bromfield Street, Colac 5 190 26 5.20 136.84

Total 298 6,430 2,366 7.94 367.96

Customer by volume range

Volumetric range (ML per year) No. of customers

Equal to or greater than 200ML and less than 300ML 4




Equal to or greater than 750ML and less than 1,000ML 0

Greater than 1,000ML 1

Total number of customers 8

Name of customer

Water conservation program developed

Alcoa of Australia Pty Ltd Voluntary waterMAP

Bonlac Foods Ltd Voluntary waterMAP

City of Greater Geelong Voluntary waterMAP

CRF Foods Pty Ltd Voluntary waterMAP

Malteurop Australia Pty Ltd Voluntary waterMAP

MC Herd Pty Ltd Voluntary waterMAP

Shell Refinery Pty Ltd Voluntary waterMAP

Turi Foods Pty Ltd trading as Golden Farms Voluntary waterMAP

major non-residential water users

major customer participation in water conservation programs

14


DrouGht response pLanBarwon Water uses the Drought Response Plan as a management tool to ensure security of water supply to customers during drought and when storages are depleted.

Following are the three key

elements of the plan:

restriction rule curvesthese are developed for each water supply system to guide the introduction of water restriction stages depending on the time of year and the volume of water in storages. they are also used in conjunction with weather forecasts to guide decisions on lifting restrictions.

water restrictions by-lawthis is a state-wide set of rules that establish the allowable uses for water through the various stages of restrictions. these rules provide Barwon water with the power to ensure water use is controlled during drought.

the four stages of water restrictions focus on outdoor water use and restrict activities such as garden watering, filling of pools and spas and car washing.

Communications strategydesigned to keep the community informed on the status of water supplies and encourage water conservation, the strategy involves:

– briefings to key stakeholders, including local members of Parliament, sporting clubs, the environmental Consultative Committee and Customer Consultative Committee

– an advertising campaign using print media

– media releases and media conferences

– brochures and signage

– website updates.

during 2012-2013, restrictions were used in the following systems to manage supply:

Stage 2 restrictions introduced – Apollo Bay, Marengo and Skenes Creek

stage 2 restrictions were introduced in apollo Bay, marengo and skenes Creek on november 4, 2012. restrictions were required over the holiday and summer tourist seasons because of limited capacity of the storage basin at marengo.

Stage 4 restrictions introduced – Apollo Bay, Marengo and Skenes Creek

stage 4 restrictions were introduced in apollo Bay, marengo and skenes Creek on march 5, 2013. restrictions were required after unprecedented hot, dry weather caused a sharp decline in the town’s storage levels.

Stage 4 restrictions lifted – Apollo Bay, Marengo and Skenes Creek

apollo Bay moved from stage 4 restrictions to the Permanent water saving Plan on may 12, 2013.

Stage 2 restrictions introduced – Colac

stage 2 restrictions were introduced in Colac on may 12, 2013. restrictions were introduced following a sustained period of below average rainfall and falling storage levels.

Stage 2 restrictions lifted – Colac

Colac moved from stage 2 restrictions to the Permanent water saving Plan on June 22, 2013.

Permanent water saving measures invoked – Greater Geelong supply system, Lorne, Aireys Inlet and Fairhaven, Gellibrand

these towns were under the Permanent water saving Plan during 2012-2013.



environmental Consultative Committee reportestablished in 2001 to improve liaison with the region’s peak environmental groups, Barwon water’s environmental Consultative Committee (eCC) provides feedback and advice on the environmental impacts of Barwon water’s policies, programs and activities.

the committee helps ensure Barwon water carries out its business in an environmentally responsible manner. the committee meets bi-monthly and comprises representatives from a number of local environmental groups, individual community members and an independent chair.

in 2012-2013, the environmental Consultative Committee met six times and conducted one field trip.

Key issues discussed included:

– draft environment strategy

– Colac water supply upgrade options

– apollo Bay water supply storage basin and pump station upgrade project

– anglesea borefield monitoring and Bulk entitlement review

– water Plan 2013-2018

– Customer perception survey

Barwon water thanks the following members of the eCC for their commitment and expertise during the year:

susan Howells (Chair)

Cate Barham

deborah evans

david Goldie

daryl Hoffmann

Glen rogers

Cameron steele

mark trengove

John wade

tony woolford

water supply demand strategy (2012-2062)the water supply demand strategy sets out Barwon water’s plan to meet the challenges of water supply and population growth over the next 50 years.

the strategy includes forecast water availability and customer demand.

the water security outlook for greater Geelong has resulted in a slight change to the demand forecast because of an increase in population. even under the most extreme climate scenario, greater Geelong will be water secure until 2047.

the townships of aireys inlet, lorne and apollo Bay will remain water secure for the next 25 years. apollo Bay will still require summer water restrictions until a storage upgrade is complete in 2014.

the strategy has indicated an additional 700 megalitres of water must be sourced or saved to continue meeting the agreed level of service in Colac. forecasts indicate an augmentation may be required by 2019. six feasible options for a water supply upgrade were shortlisted by Barwon water. a Colac Community reference Group was established to review the options and make a recommendation to Barwon water.

environMentaL anD sociaL sustainaBiLitY

Part 3

environMentaL sustainaBiLitY

16


environMentaL sustainaBiLitYthe Board selected a preferred option in June, 2013, which was consistent with the reference group’s recommendation.

in the meantime, Barwon water continues to work on water efficiency initiatives including working with the Colac agricultural community.

Progress on the implementation of this strategy is reported annually through Barwon water’s water security outlook (wso) report.

recycled waterall Barwon water’s water reclamation plants produce water suitable for recycling. in 2012-2013, the volume of recycled water used was 5,328 megalitres, or 21 per cent of total recycled water produced. the target set by Barwon water is 25 per cent re-use by 2015. it is expected this target will be exceeded next year with the completion of major recycled water projects.

Construction and commissioning of the Black rock recycled water Plant is complete. the recycled water plant will treat wastewater from Black rock via ultra-filtration, reverse osmosis, ultraviolet and chlorine disinfection to produce Class a recycled water. the department of Health has endorsed the Health and environment management Plan for the Class a recycled water to supply new dual pipe residential developments at armstrong Creek and torquay north. Consistent quality Class C recycled water will also be available for a range of non-residential customers.

the northern water Plant is also complete. the plant treats trade waste from the shell Geelong refinery, as well as domestic sewage from Geelong’s northern suburbs to produce Class a recycled water for supply to the refinery.

the project is designed to treat 7.5 megalitres a day and up to 20.7 megalitres a day of wet weather flow through a conventional wastewater plant. this defers the need to duplicate the main sewer through Geelong. the Class a plant will then further treat five megalitres a day of wastewater via ultra-filtration and reverse osmosis to produce the Class a recycled water.

the project was a collaborative partnership between Barwon water, the victorian and australian governments and shell.

the australian Government contributed $20 million, the victorian Government $9 million, shell $47.5 million and Barwon water $17.5 million.

Biosolidsa $77 million fully-enclosed thermal drying facility adjacent to Barwon water’s Black rock water reclamation Plant was officially opened by water minister Peter walsh, mla, on January 16, 2013.

the plant will treat up to 60,000 tonnes of biosolids a year and significantly reduce greenhouse gas generation compared with alternative treatment methods.

it is expected to reduce greenhouse gas emissions by 40 per cent and cut heavy truck movements by 1,000 a year, while largely reducing the land area required for biosolids processing.

Before this new facility, biosolids were transported in closed trucks to large drying bays in werribee to dry in the sun and wind before being transported for use as fertiliser.

the new drying facility receives wet biosolids via a pipeline from the nearby water reclamation plant and by truck from other Barwon water reclamation plants.

the natural gas fuelled drying process begins by seeding wet biosolids with dry biosolids pellets. the mixture is raked across a succession of heated plates until it dries and forms into larger pellets.

the pellets meet the highest standards set by the environment Protection authority (ePa) and the plant process is cooled by recycled water from the Black rock plant. that water is then returned to the Black rock plant to be re-treated.

the facility is operated by Plenary environment as a public-private partnership.

water conservationin 2012, Barwon water undertook an extensive consultation program with farmers in the Colac region to manage the use of drinking water more effectively. a dedicated water conservation officer was employed to administer a leak detection program as well as support a funding application process to encourage agricultural customers to develop and implement water conservation initiatives on their properties. to date, seven grants submissions funded by the department of environment and Primary industries (dePi) have been approved with estimated combined savings of 35 megalitres annually.

watersecure HomeBarwon water ceased the watersecure Home program during 2012-2013.

the program, which was launched in 2007 while the region was under stage 4 water restrictions, was introduced to help residents with simple but effective ways to make their homes more water efficient.

since its launch, more than 5,400 customers used the service.

living victoria Home and Garden rebatesthe living victoria water rebate Program provides victorian households with an opportunity to reduce operating costs and water consumption by purchasing and installing water efficient products. the victorian Government has committed $40 million to the program. in 2012-2013, more than 2,000 rebates were processed by Barwon water in partnership with the victorian Government.




living victoria small Business rebatesunder the victorian Government’s small Business rebate program, eligible small businesses can claim up to 50 per cent of the cost of eligible water-wise products (up to a maximum rebate of $2,000).

during 2012-2013, Barwon water processed 51 small business rebate applications in partnership with the victoria Government.

showerhead exchangeBarwon water offers a showerhead exchange program to encourage customers to replace old inefficient units for a new water-saving showerhead.

Customers can bring old showerheads into any Barwon water office.

watermaPall victorian urban non-residential customers are encouraged to develop a water management action plan (watermaP).

a watermaP assists eligible non-residential water customers across victoria to:

– assess their water usage

– identify inefficiencies and opportunities for water savings

– prepare an action plan to implement water conservation activities

– report annually on the implementation of water conservation activities.

Barwon water watermaP customers across the region have contributed to program savings across the state of approximately 22 billion litres of water since the program’s inception in 2007.

education programBarwon water’s education program is broad-based and targets customers and the community generally, as well as students at primary, secondary and tertiary levels.

an education officer is employed to co-ordinate the program, develop materials and deliver key messages on:

– water as a natural resource

– the need for the efficient use of water

– the role of Barwon water in the supply of water, recycled water and sewerage services

– developments in the area of reuse.

during 2012-2013, the program reached 3,051 students across 49 schools in the region. By far the most popular aspects of the program are interactive site tours and in-class sessions, with 95 tours conducted and 35 in-class sessions delivered over this period.

the program also encourages students to consider and connect with the environment by organising tree planting days and hosting an annual national water week poster competition. in 2012-2013, 250 students from 10 schools submitted posters for the competition. about 285 students were involved in planting more than 1,000 native trees at schools, along the Barwon river or at other environmentally sensitive locations.

Catchment management and landcare PartnershipsBarwon water harvests water from declared drinking water supply catchments on the Barham, Barwon, Gellibrand, moorabool and st George rivers and Painkalac Creek. while these are largely contained within the publicly managed Great otway national Park, significant areas of private land also fall within some catchments.

Barwon water has a keen interest in ensuring the protection and rehabilitation of land and waterways within these catchments in accordance with the priorities established in the Corangamite regional Catchment strategy and the Corangamite river Health strategy. in 2012-2013, Barwon water continued to work in partnership to protect and enhance drinking water supply catchments with the three key landcare networks covering those areas:

– southern otway landcare network (Barham river swsC)

– moorabool landcare Group (moorabool river swsC)

– upper Barwon landcare network (upper Barwon swsC).

the success of this community-based program was recognised at the 2013 Corangamite landcare awards where Barwon water received the landcare agency Partnership award.

Program Partner Focus 2012-2013 funding

Landcare Network Partnerships Southern Otway Landcare Network Barham River SWSC $35,000

Landcare Network Partnerships Moorabool Landcare Group Moorabool River SWSC $35,000

Landcare Network Partnerships Upper Barwon Landcare Network Upper Barwon SWSC $35,000

River Health Partnership Corangamite CMA Waterway health in priority waterway reaches $70,000

Corangamite Region Waterwatch Corangamite CMA Waterway health education $70,000

18



Corangamite Catchment management authority river health partnershipin 2012-2013, Barwon water contributed $70,000 to five river health projects in water supply catchments under the Barwon water-Corangamite Catchment management authority river Health agreement.

work was undertaken in the Barham and moorabool river catchments and included weed control, willow removal, riparian revegetation and stock exclusion fencing. the work, totalling approximately $178,000 (excluding landholder contributions), was co-ordinated by landcare and funded by Barwon water, the Corangamite Cma and landholders.

waterwatch partnershipBarwon water provided $70,000 towards the ongoing operation of the Corangamite waterwatch program.

the program supports community groups to conduct water quality testing at monitoring sites and delivers an education program to schools in the Corangamite region. staff attend public events to promote river health and discuss water and catchment issues.

inland acid sulphate soils Barwon water is part of a regional alliance of agencies with a mutual interest in the emerging natural resource management issue of inland acid sulphate soils. the Corangamite inland acid sulphate soils steering Committee is overseeing a scientific study of potential and actual inland acid sulphate soils sites as a first step in identifying ways to manage potential future risks.

victorian Biodiversity strategyas a manager of significant areas of land and as a major infrastructure and service provider across the region, managing impacts on native biodiversity is an important environmental aspect of Barwon water’s activities. Barwon water has continued to implement policies and procedures to protect, enhance and restore biodiversity, consistent with the victorian Biodiversity strategy and native vegetation framework. Barwon water is developing its own Biodiversity site plans to address priority biodiversity assets on Barwon water land.

Biodiversity protectionlandcare partnerships continue to support increased protection of riparian environs and habitat remnants through landholder engagement, support and on-ground projects.

Procedures, training and support for environmental planning and management of capital works projects continue to facilitate avoidance and minimisation of risks to biodiversity from the siting, design and construction of new infrastructure.

Biodiversity restorationBarwon water’s nursery continued to provide facilities for the use of community groups. through the centre, native plants are produced for revegetation projects focusing on catchment and biodiversity restoration. during 2012-2013, the nursery produced 65,003 plants with the assistance of 1,346 community members, supporting more than 26 local landcare, school and community groups. Partnerships with landcare organisations continue to support progressive restoration of biodiversity values in catchment areas.

Greenhouse gas emissions Barwon water’s greenhouse gas emissions include carbon dioxide, methane and nitrous oxide, but all emissions are measured in tonnes of carbon dioxide equivalents, or tCo

2-e.

Barwon water reports only direct emissions (scope 1) and indirect emissions from off-the-grid electricity (scope 2). all of Barwon water’s electricity is sourced from the grid.

total emissions (scope 1 plus scope 2) for 2012-2013 were estimated at 37,960 Co

2 equivalent tonnes (tCo

2-e).

this represented a one third reduction compared to the previous reporting year. most of this decrease (27 per cent) can be attributed to a reduction in electricity usage because groundwater pumping was not required due to good rainfall. the balance of the decrease was a result of less methane emissions from wastewater treatment processes due to the operation of the new biosolids drying facility.




Greenhouse gas emissions by business area emissions from sewage treatment and management activities decreased by 30 per cent compared to 2012. this was due to the operation of the new Black rock biosolids drying facility. overall, the new process is less emissions intensive than historical air drying of these biosolids, which produces considerable methane.

emissions from water treatment and supply activities also decreased compared to 2011-2012. as previously mentioned, this was due to less reliance on groundwater pumping as rains filled surface water storages, which are gravity-fed.

Financial Year tCO2-e

2008-09 52,485

2009-10 53,901

2010-11 56,031

2011-12 56,422

2012-13 37,960

total greenhouse gas emissions

Financial year ending June 30, 2013

tCO

2-e

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Total emissions (tCO2-e) per financial year

20


Greenhouse gas emissions^ breakdown by source (tCo2-e) ^scope 1 and 2 only

as shown below, emissions from electricity usage (100 per cent sourced from the grid) decreased by 35 per cent due to a switch from groundwater to surface water, which does not require pumping to storages. there was also a further reduction in methane emissions from wastewater treatment processes due to the operation of the new biosolids drying facility.

total emissions^ by business area (tCo2-e) ^scope 1 and 2 only

Business area 2012-13 2011-12 2010-11 2009-10 2008-09

Water treatment and supply 5,400 15,089 8,265 15,763 13,899

Sewerage treatment and management 28,690 36,805 43,792 34,279 34,320

Transport 1,438 1,369 1,351 1,335 1,331

Offices & other 2,433 3,159 2,623 2,524 2,934

Total emissions (tCO2-e) 37,960 56,422 56,031 53,901 52,485

Source 2012-13 2011-12 2010-11 2009-10 2008-09

Electricity 28,409 44,085 31,189 37,429 36,756

Natural gas 180 126 164 164 193

Liquid fuel (transport and stationary) 1,680 1,542 1,522 1,564 1,558

Methane from wastewater treatment processes 1,992 5,523 18,639 10,312 11,264

Nitrous Oxide from wastewater treatment processes 5,697 5,145 4,516 4,431 2,710

Soda Ash 2 1 1 1 4

Total emissions (tCO2-e) 37,960 56,422 56,031 53,901 52,485

Office Energy use/employee (MJ/FTE)

2012-13 2011-12 2010-11 2009-10

South Geelong (including stores) 42,950 44,138 35,253 36,268

Ryrie Street 30,538 35,097 27,228 29,120

Alliance 23,583 29,645 24,218 23,289

Colac 13,677 15,300 15,358 19,198

energy use per employeeenergy use per full-time employee (fte) decreased at the corporation’s largest offices.

Financial Year Total equivalent A4 reams EmployeesA4 equivalent reams per

full-time employee

2012-2013 3,364 394 8.5

2011-2012 3,931 427 9.2

2010-2011 5,226 407 12.8

2009-2010 3,921 402 9.7

office paper this is the fourth year Barwon water has reported its office paper use. Paper use decreased slightly since 2011-2012.





actions to reduce emissionssince launching its Greenhouse strategy in 2009, Barwon water’s focus has been on implementing actions that avoid future emissions (such as developing more energy efficient options for capital projects), cost effective actions to reduce energy in existing networks, investigating options to switch to alternative energy sources, including renewable, and raising awareness within the workforce.

during 2012-2013, the corporation implemented a range of energy and emissions management measures, including:

Leadership and co-operation

– leading the state-wide electricity management working group to renegotiate a collaborative purchasing agreement with a successful outcome

– participation in future Proofing Geelong and Geelong low Carbon Growth Plan.

Emissions avoidance in design

– working with other water utilities across australia to utilise a social and environmental tool for incorporating the cost impacts of energy use and electricity in future capital works projects.

Energy efficiency

– participation in the victorian Government’s Greener Government Buildings program to improve energy efficiency in water and sewerage operations

– participation in wsaa’s water reclamation plant benchmarking study.

Alternative energy

– investigation into gas as a source of cleaner electricity at the Black rock water reclamation Plant and northern water Plant

– investigation into solar Pv at major water reclamation plants.

the Green teamthe Green team is an employee-led whole-of-business action group that encourages and supports individuals and groups to adopt more environmentally sustainable behaviour and initiatives in the workplace.

during 2012-2013, the Green team continued to deliver sustainability actions, including:

– co-ordinating Barwon water’s involvement in the City of Greater Geelong eco-challenge to encourage home sustainability action

– hosting the urban Harvest program. three produce exchange events were held in 2012-2013 which, combined, attracted more than 100 employees.

22


surface water bulk entitlementsa bulk entitlement is a legal right to water granted by the minister for water under the Water Act 1989. Bulk entitlements are commonly held by water corporations in victoria with objectives to:

– provide corporations with a clearly defined property right to water

– provide corporations with flexibility to manage within their entitlements

– provide a basis for sharing limited water resources, protecting the entitlements of other users and protecting in-stream values

– facilitate water trading between user groups to ensure appropriate redistribution over time of finite water resources

– allow specific entitlements for environmental purposes.

Barwon water operates under 10 surface water bulk entitlements covering the Barwon, moorabool, Gellibrand, st Georges, Painkalac and Barham river systems. each entitlement provides clear direction on the amount and rate of water that can be harvested each year and the amount that must be passed to the environment for river health.

2012-2013 overall surface water bulk entitlement performance

– an overall compliance of 100 per cent was achieved during 2012-2013 for passing flows across the surface water bulk entitlements

– an overall compliance of 100 per cent was achieved during 2012-2013 for the numerous daily extraction limits across the surface water bulk entitlements.


BuLK entitLeMent reportinG

14.1 (d) Painkalac Reservoir storage volume at 30/6/13 100% AHD Level 29.93m

14.1 (e) Volume taken 2012-2013 206.04

14.1 (f) Approval, amendment and implementation of programs and proposals under clauses 11, 12 and 13

Nil

14.1 (g to i) Transfers, amendments or new entitlements under this order Nil

14.1 (k) Any failure by Authority to comply with any provision of this bulk entitlement No

14.1 (l) Any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed by the Authority

No

12.1 (c) Approval, amendment and implementation of programs and proposals under clauses 9, 10 and 11

Nil

12.1. (d) Volume diverted 2012-2013 (West Barham diversion) 307.14

Volume pumped 2012-2013 (Barham River) 71.57

12.1 (e to h) Transfers, amendments or new entitlements under this order Nil

12.1 (i) Any failure by Authority to comply with any provision of this bulk entitlement No

12.1 ( j) – Any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed by the Authority

No

Bulk entitlements 2012-2013the bulk entitlements require annual reporting of water taken and this information is provided in the following tables.

Bulk Entitlement (Aireys Inlet) Conversion Order 1997

Bulk Entitlement (Apollo Bay – Skenes Creek) Conversion Order 2010




12.1 (c) Storage Volumes at 30/6/13

• OlangolahReservoir 100% AHD Level 344.32m

• WestGellibrandReservoir 55.7% AHD Level 338.33m

12.1 (d) Volume taken 2012-2013 3,807.41

12.1 (e) Approval, amendment and implementation of programs and proposals under clauses 9, 10 and 11 Nil

12.1 (f to i) Transfers, amendments or new entitlements under this order Nil

12.1 ( j) Any failure by Authority to comply with any provision of this bulk entitlement No

12.1 (k) Any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed by the Authority

No

Bulk Entitlement (Colac) Conversion Order 1997/Bulk Entitlement (Colac) Amendment Order 2003

Bulk entitlements 2012-2013

Transfers, amendments or new entitlements under this order Nil

19.1 (f) Storage volume in Barwon Water’s capacity share of reservoir at 30/6/13 14,644 – 87%

19.1 (g) 2012-2013 flow into Barwon Water’s capacity share of reservoir 8,477.47

19.1 (h) 2012-2013 releases to West Moorabool River at specified Point A (reservoir outlet) 1,522

19.1 (i) Volume taken under Lal Lal entitlement at specified Point B (She Oaks diversion weir) 1,106.38

19.1 ( j) Surplus Water

• Available Nil

• Released Nil

19.1 (k) 2012-2013 volume taken other than at specified Point B Nil

19.1 (l) 2012-2013 losses debited to Barwon Water’s capacity share of reservoir 6,800

19.1 (m) Losses from releases between specified points A and B Not available

19.1 (o) Transfer of part of bulk entitlement Nil

19.1 (p) Any bulk entitlement or licence in respect of the waterway temporarily or permanently transferred to the authority with respect to the reservoir

Nil

19.1 (q) Any amendment to this bulk entitlement Nil

19.1 (r) Any new bulk entitlement granted to the authority with respect to its entitlement to a share of reservoir capacity

Nil

19.1 (s) Any failure by the authority to comply with any provision of this bulk entitlement Nil

19.1 (t) Any existing or anticipated difficulties experienced by the authority in compiling with this bulk entitlement and any remedial action taken or proposed by the authority

Nil

11.1 (b) Volume taken 2012-2013 20.41

11.1 (c) Approval, amendment and implementation of programs and proposals under clauses 8, 9 and 10 Nil

11.1 (d to g) Transfers, amendments or new entitlements under this order Nil

11.1 (h) Any failure by Authority to comply with any provision of this bulk entitlement No

11.1 (i) Any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed by the Authority

No

14.1 (d) Allen Reservoir storage volume at 30/6/13 100% AHD Level 120.20m

14.1 (e) Volume taken 2012-2013 407.79

14.1 (f) Approval, amendment and implementation of programs and proposals under clauses 11, 12 and 13 Nil

14.1 (g to j) Transfers, amendments or new entitlements under this order Nil



No

Bulk Entitlement (Lal Lal Barwon) Conversion Amendment Order 2010

Bulk Entitlement (Gellibrand) Conversion Order 1997

Bulk Entitlement (Lorne) Conversion Order 1997

24



Bulk entitlements 2012-2013

Korweinguboora Reservoir

Bolwarra Weir

Bostock Reservoir

Upper Stony Creek Reservoirs

Lower Stony Creek Reservoir

14.1 (d) Storage volume at 30/6/13

210 – 10% 113.36 – 100% 6,112 – 82% 5,228 – 55.1% 0 – 0%

14.1 (e) Volume taken 2012–2013

– – – 3,165.02 –

14.1 (f) Approval, amendment and implementation of programs and proposals under clauses 12.2 and 13.3 Nil




No

Bulk Entitlement (Upper East Moorabool System) Conversion Order 1995/(Upper East Moorabool System) Conversion Amendment Order 2004

13.1 (d) Storage volume at 30/6/13 19 – 100%

13.1 (e) Volume taken 2012-2013 (Run of river) 0

13.1 (f) Volume taken in past 3 years (2010-2011 to 2012-2013) 0

13.1 (g) Approval, amendment and implementation of programs and proposals under clauses 11 and 12 Nil

13.1 (h to k) Transfers, amendments or new entitlements under this order Nil

13.1 (l) Any failure by Authority to comply with any provision of this bulk entitlement No

13.1 (m) Any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed by the Authority

No

West Barwon Reservoir Wurdee Boluc Reservoir Total Barwon Borefield

15.1 (d) Storage volume at 30/6/13 14,290 – 66.5% 24,560 – 64.5% 38,850 – 65.2% –

15.1 (e) Volume taken 2012-2013 – – 26,658 0

15.1 (f) Approval, amendment and implementation of programs and proposals under clauses 13.3 and 14.3 Nil




No

Bulk Entitlement (She Oaks) Conversion Order 1995

Bulk Entitlement (Upper Barwon System) Conversion Order 2002

11.1 (d) Approval, amendment and implementation of programs and proposals under clauses 9 and 10 Nil

11.1 (e) Volume taken 2012-2013 (Pumped from run of river) Nil

11.1 (f to i) Transfers, amendments or new entitlements under this order Nil

11.1 ( j) Any failure by Authority to comply with any provision of this bulk entitlement No

11.1 (k) Any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed by the Authority

No

Bulk Entitlement (Meredith) Conversion Order 1995




Bulk Entitlement (Anglesea Groundwater) Order 2009

Bulk Entitlement (Melbourne Headworks System — Barwon Water) Order 2010

Groundwater bulk entitlementsthe Bulk entitlement (anglesea Groundwater) order 2009 authorises Barwon water to take up to 35,000 ml of groundwater from the lower eastern view formation in any five year period.

melbourne Headworks Bulk entitlementthe Bulk entitlement (melbourne Headworks) order 2010 entitles Barwon water to take up to 16,000 ml of water in one year through the melbourne to Geelong pipeline.

16.1 (a) Annual amount taken in 2012-2013 0 ML

16.1 (b) Any amendment to this Order Barwon Water is currently undertaking a review of the Bulk Entitlement, due for submission to the Minister by July 31, 2013.

Depending on the outcome of the review, an amendment process may commence following submission of the review.

16.1 (c) Any failure by Barwon Water to comply with this Order Nil

13.1 (a) The annual amount of water taken under this bulk entitlement at each of the Authority’s interface points

Estimated at 30ML for the 2012-2013 financial year. Note that this water was used for commissioning purposes only and can only be estimated, as the billing flow meter was not fully commissioned at that time.

13.1 (b) The approval, amendment and implementation of the metering program approved under sub-clause 12.2

The metering program has been established and agreed to by both parties, as reflected in the as-executed Bulk Water Supply Agreement. This metering program will be submitted to the Minister for formal approval under Clause 12.2 of the Bulk Entitlement.

13.1 (c) Any reduction in supply of this bulk entitlement as reflected in a Water Allocation

N/A

13.1 (d) Any assignment of Water Allocation or permanent transfer of all or part of this bulk entitlement

Nil

13.1 (e) Any amendment to this bulk entitlement Nil

13.1 (f) Any new bulk entitlement of water granted to the Authority Nil

13.1 (g) Any failure by the Authority to comply with any provision of this bulk entitlement; and

Nil

13.1 (h) Any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed

Nil

Notes: 1. Information supplied refers to volume in megalitres unless stated otherwise.2. References (e.g. 14.1 (d)) relate to clause numbers in Bulk Entitlement Order.3. Telemetry data has been used to evaluate compliance with passing flows

and diversions. (Final figures from Thiess yet to be submitted).

26


Customer Consultative Committee reportBarwon water’s Customer Consultative Committee (CCC) was established in 1996 and is a key mechanism for stakeholder engagement and feedback. the CCC also provides a direct link between the Board, customer base and consumer advocacy groups.

membership of the CCC is drawn from across all customer categories: domestic, business, rural and welfare.

the committee met four times in 2012-2013 and discussed a range of issues, including:

– Barwon water’s 2013-2018 water Plan and the key themes of affordability, quality services and strong customer service

– plans to engage the Colac community

– plans to upgrade Colac’s water supply. Barwon water asked for the committee’s assistance to shorten the list of available options so that wider community consultation could proceed

– implementation of velocity, the corporation’s new customer service and billing system

– changes to Barwon water’s Customer Charters brought about by changes to the essential services Commission’s Customer service Code. an opportunity was also taken to review the charters in light of changes to work practices and to make them more easily understood

– a 3 per cent price adjustment to cover the cost of constructing the melbourne to Geelong pipeline applied to water volume and water service charges from January 1, 2013 and the possible impact on customers

– Barwon downs Borefield and engaging the Barwon downs community.

Barwon water thanks the following members of the CCC for their commitment and expertise during the year:

anne fairbairn (Chair)

nicholas Heath

delwyn seebeck

Jocelyn mcmillan

Bill mithen

ross stephens

anne miller

Gail Price

nick laurie

sandra anderson

aged debtor managementBarwon water proactively manages its aged debtor profile to minimise financial impact to the business. Barwon water continues to work with its customers, where possible, to ensure the aged debt profile is minimised. However, debt management has increased over the past three years due to financial pressures being felt by a larger portion of our customers.

in 2012-2013, Barwon water introduced new measures to manage debt, including sending sms reminders to customers when their bills were overdue and placing caveats on properties to secure long-term debt.

assisting customers experiencing financial hardshipduring 2012-2013, Barwon water provided the following assistance measures:

– customers were granted extensions of time to pay their account. this assisted customers with short term cash flow issues to pay their account without penalty

– instalment plans were offered to assist customers to pay their account, usually over a six or 12 month period. instalment amounts were agreed to by Barwon water with each customer based on their individual circumstances. while instalment plans were active, no penalties or referrals for debt collection applied

– customers may also choose to pay their bills through Centrepay, a Centrelink program where payments are made directly to Barwon water by Centrelink on behalf of the customer.

Government utility relief Grants schemevictorian Government utility relief Grants (urGs) are offered to eligible Barwon water customers. a total of 189 grants were issued this year, an increase on the 164 approved during 2011-2012.

sociaL sustainaBiLitY



Concession cardsBarwon water has a high proportion of customers in receipt of government concession cards. around 29 per cent of its domestic customer base is eligible for government concessions. this figure has remained stable for the past few years.

eligible concession cards include Centrelink pension and health care cards and department of veterans’ affairs gold cards.

medical concessionsBarwon water supports a number of customers with special medical needs by providing a concession on top of victorian Government dialysis concessions. in addition, Barwon water offers a concession for other medical conditions that require higher than usual water consumption. Government dialysis rebates totalled $13,393 during the year, supplemented by an additional $4,224 contributed directly by Barwon water.

flexible payment plan – arrange & saveduring 2012-2013, Barwon water’s arrange & save program assisted 258 customers. the program puts customers who are in financial hardship on a payment plan where they are provided a “credit” of one instalment if they meet their instalment arrangements for five consecutive periods. the program provided customer credits totalling $40,466 during 2012-2013, an increase on the $29,906 provided during 2011-2012.

Helping customers save waterthe victorian Government’s living victoria water rebate Program offers customers rebates on items such as rainwater tanks, tank-to-toilet connections, washing machines, dual-flush toilets, water-saving showerheads, trigger nozzles and mulch. during 2012-2013, Barwon water provided 2,131 rebates to customers totalling $250,912.

sociaL sustainaBiLitY

2012-13 2011-12

Pension and health concessions $8,884,859 $8,439,174

Utility Relief grants $79,215 $58,027

Dialysis rebates (State Government) $13,393 $11,050

Barwon Water medical rebates $4,224 $4,041

Barwon Water Arrange & Save $40,466 $29,906

Water and Sewer Rebates $465,747 $535,265

Water Smart Gardens & Homes Rebates $250,912 $185,410

Hardship Relief Grant Scheme (Sewerage Connection Scheme) $0 $0

Total $9,738,816 $9,262,873

Community service obligations

28


corporate inForMation

Part 4

orGanisationaL structure

Managing Director

Joe Adamski

Organisational

Development

Melissa Stephens

Media and

Communications

Graeme Vincent

Internal Auditor

Trevor Little

Executive Remuneration

Committee

Audit and Risk

Management Committee

Customer Services

Luisa Muñoz

– Project CUBE

– Customer Support

– Development Services

– Field Services

– Customer Liaison

Business Services

Michael Watson

– Finance

– Information Communications and Technology

– Corporate Support Services

As at June 30, 2013

Infrastructure Services

Paul Northey

– Water Supply

– Water Reclamation

– Alliance Delivery

– Major Projects and Spatial Information

Strategy and Planning

Carl Bicknell

– Asset Planning

– Alliance Interface

– Corporate Strategy and Regulation

– Risk and Resilience

Board




role of the Boardthe Board is responsible for the overall corporate governance of Barwon water, including strategic direction, establishing goals for management and monitoring the achievement of those goals to optimise performance within the parameters of the organisation’s broader obligations. Barwon water is subject to the Water (Governance) Act 2006.

Board compositionthe Board comprises a non-executive Chairman, six non-executive directors and a managing director.

the non-executive Chairman and non-executive directors are appointed by the minister for water. the managing director is appointed by the Board in accordance with the Water (Governance) Act 2006.

Board meetingsBoard meetings are scheduled monthly. additional meetings are convened as circumstances warrant. minutes of meetings record Board decisions.

the managing director and executive leadership team attend Board meetings. the General manager Business services is also the Corporate secretary, providing advice to the Board on governance matters.

during 2012-2013, the Board had three sub-committees: audit and risk management; Capital works and executive remuneration. each Board sub-committee has its own Board-approved charter and reports to the Board following each meeting.

the Board reviewed its sub-committee structure during the year, with the Board endorsing separate audit and risk management Committees, an executive remuneration Committee and the cessation of the Capital works Committee.

audit and risk management Committeethe audit and risk management Committee comprises an independent non-executive Chairman and six independent non-executive directors. meetings are held quarterly and at any other time as requested by a member of the committee or the internal or external auditor. the committee liaises with the internal auditor and external auditor to evaluate the adequacy and effectiveness of the overall governance framework.

during 2012-2013, the committee addressed facilitating risk management across the organisation and reviewed and approved the risk register and strategies to address risks, monitoring action plans and risk levels.

Members/Directors:

david Harris (Chairman)

sarah adams (term commenced 1/10/12)

Hugh Gleeson

suzie Batten

michael King

stretch Kontelj

Jodi Heath

John Bugg (term completed 30/9/12)

the audit and risk management Committee was reconstituted as separate audit and risk management Committees by Board resolution in march, 2013, effective July 1, 2013.

Audit Committee Members/Directors:

david Harris (Chairman)

Hugh Gleeson

stretch Kontelj

Jodi Heath

Risk Management Committee Members/Directors:

sarah adams (Chairman)

michael King

suzie Batten

david Harris

risk attestationi, michael King, certify that the Barwon region water Corporation has risk management processes in place consistent with the australian/new Zealand risk management standard iso 31000:2009 and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures.

the risk management Committee verifies this assurance and that the risk profile of the Barwon region water Corporation has been critically reviewed within the last 12 months.

Michael King

Chairman, 22/08/2013

executive remuneration Committeethe executive remuneration Committee comprises the non-executive Chairman and three non-executive directors. the committee reviews remuneration arrangements and terms of employment for the executive leadership team and succession planning.

Members/Directors:

michael King (Chairman)

Jodi Heath

david Harris

stretch Kontelj

30



Capital works Committeethe Capital works Committee comprised non-executive directors and was responsible for overseeing the capital works delivery process. the committee reviewed capital works objectives, delivery strategies, scope, timing and budgets.

the Capital works Committee was dissolved by Board resolution in october, 2012.

Members/Directors:

Jodi Heath (Chairman)

michael King

suzie Batten

John Bugg (term completed 30/9/12)

david Harris

stretch Kontelj

ethical standardsthe Board acknowledges the need for, and continued maintenance of, the highest standards of corporate governance practice and ethical conduct by all directors, employees and contractors. the Board has a comprehensive governance framework that seeks to ensure high standards of ethical behaviour through adoption of policies supported by specific awareness and compliance programs.

Performance evaluationthe Board has established a formal process to review its own performance, its committees and individual directors consistent with the governance guidelines issued by the department of environment and Primary industries.

independent adviceindividual directors have access to independent advice from a range of services.

Code of Conductthe Public service Code of Conduct has been issued to Barwon water employees with the objective of promoting a spirit of service to the community. it emphasises the principles of merit, responsible management, management competence and efficiency and maintaining appropriate standards of integrity and conduct.

Board directors as at June 30, 2013Dr Michael KingCHAIRMAN

dBa, mBa, Ba, faiCd

appointed to Board: october 2011

dr michael King is an experienced Chairman, director and business leader. He has a strong community profile through his deep involvement in numerous community organisations.

michael is currently Chairman of Barwon water, Chairman of the t20 Geelong region bid to join the Big Bash league, deputy Chairman of st laurence Community services, member of the federal Government advisory committee to the minister for small Business, Board member of the Committee for Geelong and member of the Geelong Business Club.

He is a former deputy mayor of the City of Geelong, Board member of G21 and the Gordon institute of tafe.

michael holds a number of post-graduate qualifications, including both a doctorate and masters of Business administration. He is a fellow of the australian institute of Company directors.

michael has been managing director of Kings australia for over 25 years and prior to that held a number of positions within Government at a regional, state and international level.

Jodi HeathDEPUTY CHAIRMAN

mBa, GaiCd

appointed to Board: July 2010

Jodi Heath has a master of Business administration degree specialising in Corporate Governance from deakin university. over the past 13 years, Jodi has held management positions within the telecommunications industry and joined national australia Bank (naB) in february, 2011, as the regional executive heading naB’s retail sector for Geelong and south west victoria.

Jodi is also vice President at the Gordon and a board member of the Committee for Geelong.

she also holds current memberships with G21 Geelong region alliance, st laurence Community services, deakin alumni Community and Geelong Business Club. she is also an australian rural leaders fellow and a graduate of the australian institute of Company directors.

Jodi places a high value on making a positive contribution to the local community in which she works and resides. Jodi and her husband live in torquay and enjoy the surf Coast lifestyle. Both are keen cyclists.

Sarah Adams

llB(Hons) Bristol, uK, maiCd


sarah spent 13 years in large law firms in england, new Zealand and australia as a construction and engineering lawyer specialising in major projects, with a particular interest in wastewater and chemical process plants.

after 8 years as a partner at deacons, sarah joined the management team of a renewable energy company before moving to her present specialist legal role at a blue chip corporate.



corporate inForMationSuzie Batten

BCom, fCa, ffin, GaiCd


suzie Batten is the Principal of Batten Communications, specialising in strategic communications to support financial transactions, corporate positioning and issues management. Before forming Batten Communications, suzie was executive director at Hinton and associates, australia’s first specialist financial communications consultancy.

suzie is also President of the ski Club of victoria, one of victoria’s oldest and largest ski clubs, and an ambassador for secondBite, a charity that distributes surplus fresh food and produce to agencies and people in need.

suzie has a Bachelor of Commerce, diploma of applied finance, is a Chartered accountant and has completed the australian institute of Company directors course.

Hugh Gleeson

Be(Civil), fieaust, maiCd

appointed to Board: July 2010

Hugh Gleeson is the Chief executive officer of united energy and multinet Gas, which distribute electricity and gas in the eastern and south-eastern suburbs of melbourne to more than 600,000 customers each.

Hugh has worked in the energy and utility sector for more than 25 years, holding various executive positions before taking on his current role in 2003.

Hugh has been director of the energy network association of australia since its formation in 2003 and has previously held the positions of deputy Chairman and Chairman. Hugh was a director of the australian Gas association in 2002 to 2003 and was a member of the national electricity reliability Panel in 2009 to 2011.

David Harris

mComm (Current), advdipBusmgt, faiCd


Company director and managing director of a retail business.

david is an experienced director, Chairman and board member across government, community and commercial industries and has a long history of active participation in the local community.

david is a former G21 director and a 25 year member of rotary international. david has a strong commitment to transparent and effective governance and to ensure a balance between strategic direction, sustainable operational execution and risk management.

david has a particular interest and extensive knowledge and experience in brand development, marketing and communications.

david is currently completing post-graduate qualifications in Communications (mComm) and is a fellow of the australian institute of Company directors.

Dr Stretch Kontelj OAM, KSJ

Bec, llB, llm, mCl, mBa, sJd, GdipappCorpGov, Gdipmillaw, GdipnotarialPrac, CPa, aCis, aCsa, ftia, Cta, fsnv, fanZCn, GaiCd


dr srechko “stretch” Kontelj is the legal director asia/Pacific for specsavers optometry Group and a councillor for the City of Greater Geelong, serving as mayor in 2001-2002.

stretch is a specialist reserve legal officer with the royal australian air force, and previously held senior roles of General legal Counsel, Chief operating officer and General manager with sportsco.

stretch is a notary Public and has practised law for over 25 years and has undergraduate degrees in economics and law, masters in laws, commercial law and business administration, and graduate diplomas in corporate governance, military law and notarial practice. in 1999 stretch was awarded deakin university law school’s first doctorate in law.

stretch has a long history of community involvement, particularly in supporting ethnic communities, for which he was awarded an order of australia medal (oam) in 2001. in 2003, he was awarded the Centenary medal for services to local government and in 2010 was awarded the australian defence medal for service to the adf.

in 2013, stretch was appointed a clinical professor in the deakin university school of medicine, faculty of Health.

Joe Adamski

managing director

dip.appl.sc (infosys), B.sc(infosys), Grad.dip.tech(risk mgt), adv.mgt.Cert, maiCd

Joe joined Barwon water in 1987 as manager of information systems after 12 years at telstra (then telecom) as an analyst and senior project manager. He has held several executive roles at Barwon water.

Joe holds a Bachelor of science, Graduate diploma in risk management and advanced management Certificate.

educated at the former Chanel College (Geelong), the Gordon institute of technology and deakin university, he is a former Chairman of st Joseph’s College Board of management and maintains a strong interest in the school.

Joe also is a member of several key water industry groups, including vicwater, the water services association of australia (wsaa) and australian water association (awa).

Joe was appointed to the role of managing director in July 2012.

32


2012-2013 Board and committees of the Board attendance


employment and Conduct PrinciplesBarwon water complies with the Public Administrators Act 2004. employees are selected on the basis of ability, knowledge and skills in fair and open competition that ensures equal opportunity. Promotion and advancement of qualified individuals within Barwon water is based on these same principles, relevant to the position involved.

employees receive fair and equitable treatment. Human rights, as set out in the Charter of Human Rights and Responsibilities Act 2006, are upheld.

Barwon water provides its managers with a recruitment and selection toolkit to guide them through this process.

Harassment, Bullying and discrimination PolicyBarwon water has policies for ‘Prevention of Harassment and Bullying’, ‘equal employment opportunity’ and ‘Charter of Human rights and responsibilities’. these policies support the right of all people to work in an environment free from harassment, bullying and discrimination. Behaviour to the contrary will result in disciplinary action up to, and including, dismissal, under the Performance Counselling Policy.

Barwon water provides equal employment opportunity and bullying prevention training to all employees. trained contact officers are available to provide information to employees about their rights and obligations relating to the prevention of harassment, bullying and discrimination.

eMpLoYMent Data

Board meetingsAudit and Risk

Management Committee meetings

Executive Remuneration Committee meetings

Capital Works Committee meetings

M King 13 of 13 4 of 5 4 of 4 1 of 1

J Heath 9 of 13 1 of 2 3 of 4 1 of 1

H Gleeson 12 of 13 5 of 5 * *

S Batten 13 of 13 3 of 5 * 1 of 1

D Harris 13 of 13 5 of 5 4 of 4 1 of 1

S Kontelj 13 of 13 2 of 2 0 of 1 1 of 1

S Adams (term commenced 1/10/12)

9 of 10 3 of 3 * *

J Adamski 13 of 13 *3 of 5 *2 of 2 *1 of 1

RJ Bugg (term completed 30/09/12)

3 of 3 2 of 3 * 1 of 1 1 of 1

*Indicates non member of committee



eMpLoYMent Data

ethical employment and subcontracting policydepartments are required to ensure all tenderers identify the use of subcontractors or third parties that would be employed under conditions of employment or rates of pay that might be considered exploitative or outside the norm within their industry sector, due to the ethnic, economic, social, or other situation of the groups concerned. Contracts will not be entered into with the tenderers where any such instances of possible exploitation or underpayment arrangements are identified.

employment statistics

Notes:• Excludesexternalcontractors/consultantsandtemporarystaffemployedbyemploymentagencies.• Includesseven(7)StateGovernmentappointedBoardDirectors(0.5FTEeach).• FTEmeansfull-timeequivalent.

Notes:• Excludesexternalcontractors/consultantsandtemporarystaffemployedbyemploymentagencies.• Includesseven(7)StateGovernmentappointedBoardDirectors(0.5FTEeach).• FTEmeansfull-timeequivalent.

2013

Casual Part-time Full-timeTotal

(Headcount) 2013

Total (Percentage)

2013

FTE2013

Female 1 35 76 112 27 97.28

Male 3 7 292 302 73 296.55

Total 4 42 368 414 100 393.83

2012

Casual Part-time Full-timeTotal

(Headcount) 2012

Total (Percentage)

2012

FTE2012

Female 5 28 89 122 28 107.65

Male 5 6 305 316 72 309.56

Total 10 34 394 438 100 417.21

Notes:

The Australian Bureau of Statistics (ABS) develops and maintains standard occupation coding structures for labour market analysis. The primary ABS occupation coding structure is known as ANZSCO (Australian and New Zealand Standard Classification of Occupations). Barwon Water utilises ANZSCO as its occupational reporting model.

The decrease in employee numbers was due to a number of employee contracts expiring and retirements.

ANZSCO Occupation Classification

Headcount

Managers 28

Professionals 135

Technicians & Trade Workers

99

Clerical & Administrative Workers

84

Machinery Operators & Drivers

30

Labourers 62

Total 438

anZsCo - 2012

ANZSCO Occupation Classification

Headcount

Managers 27

Professionals 125

Technicians & Trade Workers

92

Clerical & Administrative Workers

81

Machinery Operators & Drivers

30

Labourers 59

Total 414

anZsCo - 2013

34


number of days lost due to accidents

2008-09 14

2009-10 4

2010-11 10

2011-12 5

2012-13 4

lost time accidents

2008-09 169

2009-10 72

2010-11 121

2011-12 12

2012-13 10

All incidents/Injuries Total

Hands/fingers 10

Hip/leg 9

Back 6

Eye 5

Shoulders/arms 4

Multiple locations 3

Feet/toes 2

Face/head 2

Neck 1

injury statistics

Cause

Slips/trips 8

Hitting objects with part of body

8

Muscular strain/stress 6

Contact with chemical or substance

6

Manual handling 5

Repetitive movement with low muscle loading

2

Hit by moving object 2

Insect/spider bites and stings 2

Unspecified 1

Contact with electricity 1

Vehicle accident 1

all injuries - cause summary

disability action PlanBarwon water developed its first disability action Plan in 2009. it was reviewed in 2012-2013 and a number of improvements to Barwon water’s facilities and services were identified, including:

– website redesign to meet international web Content accessibility Guidelines

– introduction of disabled parking at the ryrie street office basement car park

– lobbying of local government to provide a disabled car park outside the ryrie street office

– upgrades to regional customer service centres around safety and access.

Barwon water is committed to working with its employees and customers to raise awareness of access and inclusion issues, to strengthen customer and employee relationships and meet the needs of the community.

Barwon water’s disability action Plan 2013 has been published with the Human rights and equal opportunity Commission and on the corporation’s website.

Health, safety and wellbeingover the past 12 months, the Health, safety and wellbeing (Hsw) team worked to deliver actions identified for key improvement areas and high risk activities.

this included:

– confined space entry

– contractor management

– chemical management

– asbestos management

– health and well-being

– return to work

– compliance training

– fatigue management.

in addition, Hsw undertake regular internal audit activities aligned with the integrated management system schedule.

Barwon water provided workHealth checks in early 2012, with 60 per cent of employees taking up the offer to have a number of basic health tests carried out. Because of this participation, Barwon water was eligible for a workHealth grant, which enabled Hsw to initiate sessions in 2012-2013 aimed at addressing some of the key health risks faced by employees.

Programs included the 10,000 steps challenge, strengthening/stretching sessions, sunsmart awareness sessions, building resilience workshops and bi-monthly Healthy You newsletters as well as a fortnightly Health and wellbeing update. all of the programs aimed to improve health self-awareness.

Hsw continued to update its intranet pages to improve communication across the organisation by providing a central portal for safety issues. Bi-monthly safety newsletters were being produced and communicated to staff via the intranet.

Hsw training focused on maintaining compliance with legislated and high risk certificate classes such as confined space entry, first aid, spotting, traffic management and agvet chemical users.

the Hsw team worked with CGu and injured employees on long-term return to work plans to ensure progress was monitored in returning employees to work.

the 2012-2013 year saw a further reduction in the number of days lost due to workplace accidents compared to previous years.

heaLth, saFetY anD environMent



heaLth, saFetY anD environMent

Course nameCourse length

(hours)Number of sessions

offeredTotal employees

trainedTotal employee training hours

4WD 7 4 23 161

AgVet Chemical Users (Farm Chemical)* 24 1 1 24

AgVet Refresher* 8 2 2 16

Applied First Aid (Level 2)* 16 9 17 272

Applied First Aid (Level 2) Assessment Only 4 3 19 76

Asbestos Awareness 3 7 63 189

Confined Space Entry Initial 16 5 32 512

Confined Space Entry Refresher 4 12 143 572

CPR 4 6 80 320

CPR Assessment Only 1 9 57 57

Elevated Platform 16 1 7 112

Excavator 8 3 3 24

Forklift License 16 2 6 96

Heavy Rigid Truck License* 8 8 10 80

HSE Governance 2 7 62 124

Incident Investigation and Reporting 3 5 43 129

Non-work Related Injury Management 1 8 85 85

ICAM Lead Investigator 8 1 10 80

Manual Handling 2 2 17 34

OHS representatives refresher 8 3 3 24

OHS representatives 5-day 38 2 4 152

Prescribed Industrial Waste Driver 7 1 7 49

Quick Cut Saw (Demo Saw) 3.5 2 16 56

Self Contained Breathing Apparatus 2 4 31 62

Slinging Awareness 3 6 50 150

Spotters 8 1 7 56

Spotters Refresher 4 3 20 80

Sunsmart 1.5 6 84 126

Telehandler Operator 8 1 5 40

Traffic Management 8 1 14 112

Traffic Management Refresher 4 1 2 8

Trench Shoring 16 3 21 336

Working with Heights 8 2 17 136

Total HSE class employee training hours 2012-2013 4,350

Total number of HSE courses offered at Barwon Water in 2012-2013 33

Total number of HSE class sessions offered at Barwon Water in 2012-2013 131

Total number of attendance at HSE classes in 2012-2013 961

2012-2013 Hse training

* Indicates a public class for individual employee training

36


access to inForMation

Victorian Information Privacy Act 2000Barwon water complies with the information privacy principles set out under the Victorian Information Privacy Act 2000.

Barwon water’s Customer Charter and Personal Privacy Charter refer to its commitment to protect the privacy of customers. Barwon water ensures the information it holds is protected and it actively prevents any unauthorised access to, and improper use of, customer information.

a copy of Barwon water’s Personal Privacy Charter can be viewed at www.barwonwater.vic.gov.au.

Freedom of Information ActBarwon water has a comprehensive website that satisfies the information needs of many individuals. Barwon water is also committed to ensuring information is accessible to customers in compliance with the Freedom of Information Act 1982.

access to documents held by Barwon water can be obtained by writing to the freedom of information manager (Po Box 659, Geelong 3220) and including payment of the $25.10 ($25.70 as from July 1, 2013) application fee.

more information or a foi application form is available at: www.barwonwater.vic.gov.au

six freedom of information requests were received during the year. full access was granted to two applications, one was withdrawn, one was processed and generated no documents and two are still in progress at the close of the financial year period.

full access granted 2

Partial access granted 0

Continuing 2

withdrawn 1

no documents 1

all responses were prepared within the statutory reporting period of 45 days.

other informationthe following information is available from Barwon water on request, subject to the Freedom of Information Act 1982:

– a statement that declarations of pecuniary interests have been duly completed by all relevant officers

– details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary

– details of publications produced by the entity about itself, and how these can be obtained

– details of changes in prices, fees, charges, rates and levies charged by the entity

– details of any major external reviews carried out on the entity

– details of major research and development activities undertaken by the entity

– details of overseas visits undertaken including a summary of the objectives and outcomes of each visit

– details of major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the entity and its services

– details of assessments and measures undertaken to improve the occupational health and safety of employees

– a general statement on industrial relations within the entity and details of time lost through industrial accidents and disputes

– a list of major committees sponsored by the entity, the purposes of each committee and the extent to which the purposes have been achieved

– details of all consultancies and contractors including:

• consultants/contractorsengaged

• servicesprovided

• expenditurecommitted to for each engagement.

this information is available on request from:

Barwon water freedom of information manager

mail: Po Box 659, Geelong, 3220

Phone: 1300 656 007

email: [email protected]


access to inForMation


Financial Management Act 1994other information as required under the Financial Management Act 1994, but not specifically referred to, has been retained by the accountable officer and is available to the minister, members of Parliament and the public on request.

this information includes: pecuniary interests of relevant officers; shares held by a senior officer; details of Barwon water publications; changes to fees and charges; major external reviews carried out on Barwon water; research and development activities; overseas visits; major promotional, public relations and marketing activities; assessments and measures to improve the occupational health and safety of employees; and major sponsorships.

Building Act 1993Barwon water maintained its buildings in accordance with the Building Act 1993. works during 2012-2013 included:

Ryrie Street complex

– redevelopment of the ground floor call centre to accommodate additional staff relocated from south Geelong complex

– refurbishment of 5th floor west to accommodate the newly created Corporate strategy and regulation department.

38


Protected Disclosures Act 2012the Whistleblowers Protection Act 2001 (WB Act) was repealed and replaced with the Protected Disclosure Act 2012 (PD Act) on february 10, 2013. as the change of legislation occurred midway through the 2012-2013 financial year, this disclosure complies with the requirements of the PD Act and section 104 of the WB Act, for each of the relevant time periods.

Compliance with the Protected Disclosures Act 2012

the PD Act was part of a package of integrity reforms introduced by the victorian Coalition Government, which also established the independent Broad-based anti-corruption Commission (iBaC).

the PD Act enables people to make disclosures about improper conduct within the public sector without fear of reprisal. it aims to ensure openness and accountability by encouraging people to make disclosures and protecting them when they do.

What is a ‘protected disclosure’?

a protected disclosure is a complaint of corrupt or improper conduct by a public officer or a public body.

Barwon water is a “public body” for the purposes of the PD Act.

what is ‘improper or corrupt conduct’?

improper or corrupt conduct involves substantial:

– mismanagement of public resources; or

– risk to public health or safety or the environment; or

– corruption.

the conduct must be criminal in nature or a matter for which an officer could be dismissed.

How do I make a ‘protected disclosure’?

You can make a protected disclosure about Barwon water or its Board members, officers or employees by contacting the department of environment and Primary industries (dePi) or iBaC on the contact details provided.

Please note that Barwon water is not able to receive protected disclosures.

How can I access Barwon Water’s procedures for the protection of persons from detrimental action?

Barwon water has established procedures for the protection of persons from detrimental action in reprisal for making a protected disclosure about Barwon water or its employees. You can access Barwon water’s procedures on its website at: www.barwonwater.vic.gov.au

Contacts

Department of Environment and Primary IndustriesJennifer Berensen, senior advisor, Privacy & ombudsmandepartment of environment and Primary industriesaddress: Po Box 500, east melbourne vic 3002Ph: 03 9637 8697website: www.depi.vic.gov.au

Independent Broad-Based Anti-Corruption Commission Victoriaaddress: level 1, north tower, 459 Collins street, melbourne victoria 3001.mail: iBaC, GPo Box 24234, melbourne victoria 3000internet: www.ibac.vic.gov.au Phone: 1300 735 135email: see the website above for the secure email disclosure process, which also provides for anonymous disclosures.

other acts

The number and types of disclosures made to Barwon Water during the year (July 1, 2012 to February 9, 2013)

2012-13 number

2011-12 number

Public interest disclosures 0 0

Protected disclosures 0 0

The number of disclosures referred during the year by the public body to the Ombudsman for determination as to whether they are public interest disclosures

0 0

The number and types of disclosed matters referred to the public body by the Ombudsman for investigation

0 0

The number and types of disclosures referred by the public body to the Ombudsman for investigation

0 0

The number and types of investigations taken over from the public body by the Ombudsman

0 0

The number of requests made by a whistleblower to the Ombudsman to take over an investigation by the public body

0 0

The number and types of disclosed matters that the public body has declined to investigate

0 0

The number and types of disclosed matters that were substantiated upon investigation and the action taken on completion of the investigation

0 0

Any recommendations made by the Ombudsman that relate to the public body

0 0

Recommendation regarding file security and management

0 0


Disclosures under the Whistleblowers Protection Act 2001 (up to February 9, 2013)

the archived procedures established under the WB Act are available upon request.

the disclosures detailed in the table on the previous page relate to the period commencing on July 1, 2012 and ending on february 9, 2013.

victorian industry Participation PolicyContracts commenced during 2012-2013 to which the victorian industry Participation Policy (viPP) applied:

Barwon water commenced 14 contracts totalling $44.9 million to which the viPP applied. all the contracts were in regional victoria.

Commitments by contractors under VIPP included:

– an overall level of local content of 56 per cent of the total value of the contracts

– 15 full-time equivalent jobs

– five apprenticeships/traineeships.

the following benefits to the victorian economy in terms of skills and technology transfer increases included:

– staff training in construction techniques

– traffic control, plant operators ticket, confined space and work safety at height.

Contracts completed during 2012-2013 to which the VIPP applied:

Barwon water completed nine contracts valued at $17.7 million to which the viPP applied. all the contracts were in regional victoria.

the outcomes reported by contractors under viPP included:

– local content contributed 60 per cent of the total value of the contracts

– 19 full-time equivalent jobs

– four apprenticeships/traineeships.

the following benefits to the victorian economy in terms of skills and technology transfer increases included:

– operation of plant and equipment

– machinery operation

– operational excellence programs.

national Competition Policy Competitive neutrality seeks to enable fair competition between government and private sector businesses. any advantages or disadvantages that government businesses may experience, simply as a result of government ownership, should be neutralised. Barwon water continues to implement and apply this principle in its business undertakings.


appLicaBLe poLicies

40


consuLtancY expenDiture

Consultant Purpose of consultancy Start date End date

Total approved

project fee(excl. GST)

$ ‘000

Expenditure 2012-13

(excl. GST) $ ‘000

Future expenditure(excl. GST)

$ ‘000

dB results Pty ltd Customer Relations and Billing System Project

27/09/2010 30/09/2014 2,631 3,129 167

GHd Pty ltd Anglesea Borefield project, aquatic monitoring, Geelong sewer model, financial modelling, Melbourne to Geelong Pipeline, groundwater data assessment

1/07/2012 31/10/2013 864 864 -

ernst & Young Customer Relations and Billing System Project, governance advice, financial modelling services

1/07/2012 30/06/2013 753 753 -

sinclair Knight merz

Armstrong Creek trunk sewer and recycled water mains, Portarlington water reclamation plant upgrade

25/10/2010 30/06/2014 624 624 -

aquenta Consulting Pty ltd

Independent estimator fees1/09/2009 30/06/2014 546 90 50

terranovate Group Pty ltd

Customer Relations and Billing System Project

1/06/2011 31/05/2013 471 471 -

marchment Hill Consulting

Strategic sourcing consultancy, development of asset management strategy

1/11/2012 30/06/2013 341 341 -

Crowe Horwath Internal audit payroll, ICT review, risk mitigation and customer relations and billing systems audit review

1/07/2012 30/06/2013 298 298 -

Grant thornton australia Pty ltd

Customer Relations and Billing System Project, tax advice, risk advice

1/07/2012 30/06/2013 285 285 -

uxC Consulting Pty ltd

Enterprise Content Management1/07/2012 30/06/2013 263 263 -

aurecon australia Pty ltd

Northern Water Plant independent reviewer1/02/2011 30/06/2015 260 124 111

Pitcher Partners Consulting Pty ltd

Alliance financial audit1/07/2009 30/06/2014 220 73 70

Pricewaterhouse Coopers

Water Plan review, customs duty and FTC review, new customer contributions method and model review

1/07/2012 30/06/2013 165 165 -

smeC australia Pty ltd

Dam safety and condition assessment1/07/2012 30/09/2012 155 155 -

ecology australia Pty ltd

Terrestrial monitoring report, frog survey1/08/2012 30/06/2013 133 133 -

Kellogg Brown & root Pty ltd

Melbourne to Geelong Pipeline1/04/2009 30/06/2013 121 121 -

Computershare Communication services Pty ltd

Customer Relations and Billing System Project 1/01/2013 31/05/2013 63 63 -

fieldtec Pty ltd Customer Relations and Billing System Project

1/08/2012 15/02/2013 54 54 -

recovre CBt Pty ltd

Consulting fees - injury management, ergonomic assessments

1/07/2012 30/06/2013 54 54 -

Colac otway shire Council

Wye River MOU1/04/2013 30/06/2013 49 49 -

odysseus-imC Pty ltd

Asset management system and evaluation1/08/2012 29/11/2013 42 42 -

Horton international

Professional fees regarding executive recruitment services

1/07/2012 31/07/2012 38 38 -

Consultants and Contracts entered into

Consultants costing in excess of $10,000

there were 49 major consultancies engaged in 2012-2013, with a total value of $8,716,747.68




Total approved


$ ‘000

Expenditure 2012-13

(excl. GST) $ ‘000


$ ‘000

rider levett Bucknall victoria Pty ltd

Independent reviewer, witness inspections and completion activities Biosolids Waste Management Project

1/05/2012 31/08/2012 36 36 -

landserv environment

Waste management consultancy, site assessments, analysis and classification at Northern Water Plant

1/12/2012 30/04/2013 35 35 -

noel arnold & associates Pty ltd

OHS review, risk management advice1/02/2013 30/06/2013 33 33 -

Cee Consultants Pty ltd

Black Rock Water Reclamation Plant QMRA, Lake Colac water quality July to December, 2012

1/07/2012 21/12/2012 32 32 -

macpherson & Kelley lawyers

HSE governance consulting 1/11/2012 30/06/2013 31 31 -

Prima Consulting Pty ltd

Sustainability scorecard advice1/07/2012 30/06/2013 27 27 -

Geoff nunn & associates Pty ltd

Consultation fees executive remuneration incentive framework

1/07/2012 27/05/2013 25 25 -

tGm Group Pty ltd Shared sewer assests (<300mm), Jetty Road feeder mains stage 2, surveyor services

1/08/2012 26/05/2013 25 25 -

Jennifer Hale - aquatic ecology Consultant

Water reclamation plant risk assessments1/08/2012 30/11/2012 23 23 -

moore stephens melbourne Pty ltd

ESC accounting code review1/04/2013 29/04/2013 23 23 -

Consulting environmental

Consulting services Lorne and Black Rock outfall

1/04/2013 30/06/2013 21 21 -

ima management & technology

Customer Relations and Billing System Project

25/06/2012 16/08/2012 21 21 -

strategic insurance and risk solutions Pty ltd

Insurance review1/01/2013 30/01/2013 20 20 -

Julie Garland mclellan

Board workshop facilitation1/02/2013 28/02/2013 16 16 -

awt water Pty ltd Anglesea water reclamation plant aeration review, Barwon model update

1/07/2012 30/04/2013 16 16 -

the university of Queensland

Research project - optimal management of corrosion and odour problems in sewer systems

1/07/2012 30/06/2013 15 15 -

Glossop town Planning Pty ltd

Barham amendment C62 panel representation and assistance

1/09/2012 23/04/2013 13 13 -

fYB Pty ltd Records management audit 1/08/2012 28/09/2012 13 13 -

Pelican Corp Support services and project implementation

1/05/2013 30/06/2013 13 13 -

objective Corporation limited

Enterprise Content Management upgrade1/10/2012 31/03/2013 12 12 -

minter ellison Biosolids management project - review 1/01/2013 26/02/2013 12 12 -

security infrastructure solutions Pty ltd

Cyber Reconnaissance SOW - assessment report 1/06/2013 30/06/2013 12 12 -

ag-Challenge Consulting

Lagoon water reclamation plants soil monitoring 2013

1/07/2012 30/06/2013 11 11 -


42



Total approved


$ ‘000

Expenditure 2012-13

(excl. GST) $ ‘000


$ ‘000

Black & veatch australia

Review of MBBR performance1/10/2012 7/11/2012 11 11 -

Converge international

Employee Assistance Program1/07/2012 30/06/2013 11 11 -

Global risk management services

Development and preparation work for funding application 30/08/2012 12/09/2013 11 11 -

nous Group Pty ltd Business planning workshop facilitation 1/08/2012 30/01/2013 11 11 -

in 2012-2013, Barwon water engaged 53 consultancies where the total fees payable to the consultants were less than $10,000, with a total expenditure of $177,451 (excl. Gst).

Contracts entered into greater than $10 million:

no contracts greater than $10 million were entered into.

Advertising expenditure

there were no advertising campaigns with total media buy of $150,000 or greater.




statement of Performance for the 2012-2013 financial Year

Note2011-12 Result

2012-13 Result

2012-13 Target

Variance %

F1 Internal Financing Ratio 1, 2 43.12% 36.94% 33.55% 10.10

F2 Gearing Ratio (Debt to assets) 3 19.47% 24.09% 22.53% 6.92

F3 Interest Cover (EBIT) 4 3.09 times 1.83 times 1.77 times 3.39

F4 Interest Cover (Cash) 5 5.48 times 3.04 times 2.79 times 8.96

financial Performance indicators

Notes:Notes:

1. Below budget payments to supplies due to efficiency and effectiveness implementations, better than predicted economic market conditions which lead to lower interest rates obtained on borrowings than budgeted, along with savings on capital expenditure on projects has resulted in a favourable ratio result to budget.

2. Decreased net operating cashflow in 2012-2013 as a result of a significant reduction in non-government contributions received in 2012-2013 compared to 2011-2012 for the construction of the Northern Water Plant as this plant was commissioned in 2012-2013. Additionally, capital expenditure decreased in 2012-2013 as a number of major projects have been finalised in 2012-2013 and the capital expenditure program moves from a growth to a consolidation phase. This has resulted in a lower internal financing ratio for 2012-2013.

3. An increase in assets during 2012-2013 is due to the continued expenditure in the capital investment plan in which it is moving from a growth to a consolidation phase. To help fund the capital expenditure, additional debt was taken-up throughout 2012-2013. This has resulted in a higher gearing ratio in 2012-2013 compared to 2011-2012.

4. A decrease in earning before interest and tax is due to a significant reduction in non-government contributions received in 2012-2013 compared to 2011-2012 for the construction of the Northern Water Plant as this plant was commissioned in 2012-2013. Additionally, an increase in net interest has occurred during 2012-2013 compared to 2011-2012 as a result of the higher debt levels held throughout 2012-2013 as opposed to 2011-2012. This has resulted in lower interest cover (EBIT) ratio for 2012-2013 compared to 2011-2012.

5. Lower cashflow from operations before net interest and tax is due to a significant reduction in non-government contributions received in 2012-2013 compared to 2011-2012 for the construction of the Northern Water Plant as this plant was commissioned in 2012-2013 along with the increase interest payments due to the higher debt levels held throughout 2012-2013 compared to 2011-12. This has resulted in a lower interest cover (cash) ratio than compared to 2011-2012.

perForMance report

Part 5

44


Performance Indicator Note

2011-12 Result

2012-13 Result

2012-13 Target

Variance %

E1 Reuse indicators

E1.1 Effluent reuse (volume) 1 14.80% 21.33% N/A N/A

E1.2 Biosolids reuse (dry mass) 2 151.40% 214.18% 100% 114.18

E2 Sewage treatment standards

E2.1 Number of analyses complying with licence agreements as % of samples 3 100% 100% 99.70% 0.30

service and environmental Performance indicators

Notes:1. Barwon Water has set a target to recycle 25 per cent of treated water available by 2015.

Interim targets are not applicable and projects to meet the 2015 target are currently underway.

2. The commissioning of the thermal drier along with reuse of some stockpiled biosolids enabled Barwon Water to exceed the yearly target of 100 per cent.

3. All plants complied with licence agreement testing requirements.

Performance Indicator Note

2011-12 Result

2012-13 Result

2012-13 Target

Variance %

S1 Water supply interruptions

S1.1 Number of customers receiving 5 unplanned interruptions in the year 1 67 114 150 -24.00

S2 Interruption time indicators

S2.1 Average duration of unplanned water supply interruptions (minutes) 2 114.18 107.18 100 7.18

S3 Restoration of water supply

S3.1 Unplanned water supply interruptions restored within 5 hours - 96.57% 97.06% 96.50% 0.58

S4 Reliability of sewerage collection services

S4.1 Sewer spills from reticulation and branch sewers (number) – Priority 1 and 2 3 277 300 519 -42.20

S5 Containment of sewer spillages

S5.1 Sewerage spills contained within 5 hours - 100% 100% 100% 0.00

S6 Customer complaints indicators

S6.1 Water quality complaints per 1000 customers (number) 4, 5 1.77 2.08 N/A N/A

S6.2 Sewerage service quality and reliability complaints per 1000 customers (number) 4, 6 0.23 0.29 N/A N/A

S6.3 Billing complaints per 1000 customers (number) 4, 7 0.29 0.65 N/A N/A

S6.4 Sewage odours complaints per 1000 customers (number) 4, 8 0.33 0.32 N/A N/A

Notes:1. Although below target, the number of customers experiencing more than

five unplanned interruptions increased from previous years due to the longer dry period through late spring and summer. The subsequent drying of soils and ground movement caused some mains to experience multiple interruptions prior to their replacement.

2. In 2012-2013 the average duration of unplanned water interruptions has decreased from 114 minutes to 107 minutes. This is consistent with the five year average but still exceeds the ESC target of 100 minutes. The ESC has recognised the difficulty of meeting this target with our current resources and has eased this KPI out to 125 minutes for the next Water Plan period.

3. In 2012-13, Barwon Water completed targeted, preventative maintenance and rehabilitation programs of its sewerage infrastructure to mitigate the number of sewer blockages and spills. These programs included mains clearing, chemical root treatment and lining. Performance over the past three years has been very consistent, with the number of spills at all time lows.

4. Target not required in ESC Final Determination.

5. The slight overall increase may be attributed to introduction of Barwon Water’s biggest ever mains cleaning program.

6. The number of complaints is typically linked to the performance of the collection systems. In 2012-2013, Barwon Water completed targeted, preventative maintenance and rehabilitation programs of its sewerage infrastructure to mitigate the number of sewer blockages and spills. These programs included mains clearing, chemical root treatment and lining.

7. The increase in billing complaints was due to increases in overall cost of living pressures in the community.

8. Barwon Water continues to optimise performance of existing – and install new – odour control facilities to mitigate the number of complaints. Facilities include chemical dosing and gas phase treatment systems at strategic locations within the collection system. Performance over the past six years has been very consistent, with the number of complaints at all time lows.

service and environmental Performance indicators



statutory Certificationwe certify that the accompanying Performance report of Barwon region water Corporation in respect of the 2012-2013 financial year is presented fairly in accordance with the Financial Management Act 1994.

the statement outlines the relevant performance indicators as determined by the responsible minister, the actual results achieved for the financial year against predetermined performance targets and these indicators, and an explanation of any significant variance between the actual results and performance targets.

as at the date of signing, we are not aware of any circumstances which would render any particulars in the Performance report to be misleading or inaccurate.

M King Chairman

J Adamski managing director (accountable officer)

dated this 16th day of august 2013.

Barwon reGion water corporation

46


48


NOTE2013

$’0002012

$’000

Revenue from operating activities

Service charges 91,656 82,427

Usage charges 71,966 62,577

Tradewaste charges 4,789 5,473

Government contributions 583 209

Non-government contributions 28,186 65,649

Other 5,231 5,843

Interest 336 742

202,747 222,920

Revenue from non-operating activities

Net gain/(loss) on disposal of non-financial assets 9.4 (2,838) (2,617)

Other revenue 642 808

(2,196) (1,809)

Total revenue 3 200,551 221,111

Expenses from operating activities

Direct operating 30,121 29,187

Administration 8,087 10,411

Borrowing costs 4 34,291 24,917

Depreciation, amortisation and impairment 9.3 54,171 48,995

Employee benefits 5 41,038 52,386

Environmental contribution 4,416 4,416

Bad and doubtful debts 98 203

Finance charges 4 7

Total expenses 172,226 170,522

Net result before tax 28,325 50,589

Income tax expense 6 8,787 15,199

Net result for the period 18 19,538 35,390

Other comprehensive income

Gain/(loss) on revaluation of property, plant and equipment 16 0 (919)

Income tax relating to components of other comprehensive income 16 0 276

Total other comprehensive income 0 (643)

Comprehensive result 19,538 34,747

Comprehensive operating statement for the year ended 30 June 2013

FinanciaL stateMents

Part 6

the above Comprehensive operating statement should be read in conjunction with the accompanying notes.




NOTE2013

$’0002012

$’000

Assets

Current assets

Cash and cash equivalents 7 15,486 24,290

Receivables 8 38,223 32,641

Inventories 1,253 1,249

Prepayments 865 658

Total current assets 55,827 58,838

Non-current assets

Deferred tax assets 6 3,689 8,043

Receivables 8 284 488

Property, plant and equipment 9 2,192,135 2,043,236

Intangible assets 10 17,542 4,333

Total non-current assets 2,213,649 2,056,100

Total assets 2,269,477 2,114,938

Liabilities

Current liabilities

Payables 11 43,851 41,010

Interest bearing liabilities 12 38,472 28,900

Employee benefits 14 9,841 9,735

Provisions 14 1,404 16,025

Total current liabilities 93,568 95,670

Non-current liabilities

Payables 11 263 262

Interest bearing liabilities 12 508,333 382,970

Employee benefits 14 878 909

Deferred tax liabilities 6 241,588 237,154

Total non-current liabilities 751,062 621,295

Total liabilities 844,630 716,965

Net assets 1,424,847 1,397,973

Equity

Reserves 16 377,811 377,811

Contributed Capital 17 451,800 444,464

Accumulated funds 18 595,236 575,698

Total equity 1,424,847 1,397,973

Balance sheet as at 30 June 2013

the above Balance sheet should be read in conjunction with the accompanying notes.

50



NOTE

Contributed Capital ($'000)

Reserves ($'000)

Accumulated Funds

($'000)Total

($'000)

Balance at 1 July 2011 418,794 378,454 540,308 1,337,556

Comprehensive income for the year

Net result for the year 18 0 0 35,390 35,390

Increase/(decrease) in property, plant and equipment as a result of revaluation, net of income tax 16 0 (643) 0 (643)

Total comprehensive income for the year 0 (643) 35,390 (34,747)

Transactions with the State in its capacity as owner:

Contributions by owners 17 25,670 0 0 25,670

Balance at 30 June 2012 16, 17, 18 444,464 377,811 575,698 1,397,973

Balance at 1 July 2012 444,464 377,811 575,698 1,397,973

Comprehensive income for the year

Net result for the year 18 0 0 19,538 19,538

Increase/(decrease) in property, plant and equipment as a result of revaluation, net of income tax 16 0 0 0 0

Total comprehensive income for the year 0 0 19,538 19,538

Transactions with the State in its capacity as owner:

Contributions by owners 17 7,336 0 0 7,336

Balance at 30 June 2013 16, 17, 18 451,800 377,811 595,236 1,424,847

statement of Changes in equity for the reporting period ended 30 June 2013

the above statement of Changes in equity should be read in conjunction with the accompanying notes.




NOTE2013

$’0002012

$’000

Inflows(Outflows)

Inflows(Outflows)

Cash flows from operating activities

Receipts

Service, usage and tradewaste charges 160,808 147,943

Interest 894 405

Non-government contributions 14,031 45,748


GST received from the ATO 19,313 26,881

Other 6,180 6,923

Payments

Employees (51,066) (38,252)

Suppliers (59,792) (64,598)

Interest and other costs of finance (29,106) (22,380)

Environmental contribution (4,416) (4,416)

Net cash (outflow)/inflow from operating activities 20.1 57,428 98,463

Cash flows from investing activities

Payments for purchase of property, plant and equipment (155,462) (228,364)

Proceeds from sale of property, plant and equipment 1,048 803

Net cash (outflow)/inflow from investing activities (154,413) (227,561)

Cash flows from financing activities

Government contributions 6,360 25,670

Proceeds from borrowings 109,900 130,000

Refinanced maturing TCV loans (24,400) (17,600)

Repayment of finance lease liability (3,678) 0

Net cash (outflow)/inflow from financing activities 88,182 138,070

Net increase/(decrease) in cash held (8,804) 8,972

Cash and cash equivalents at the beginning of the financial year 24,290 15,318

Cash and cash equivalents at the end of the financial year 7 15,486 24,290

Cash flow statement for the reporting period ended 30 June 2013

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

52


1. statement of accounting policies

this financial report of Barwon region water Corporation is a general purpose financial report that consists of a Comprehensive operating statement, Balance sheet, and statement of Changes in equity, Cash flow statement and notes accompanying these statements. the general purpose financial report complies with australian accounting standards, other authoritative pronouncements of the australian accounting standards Board, interpretations and the requirements of the Financial Management Act 1994 and applicable ministerial directions.

where applicable, those paragraphs of the australian accounting standards (aas’s) applicable to not-for-profit entities have been applied. this financial report has been prepared on an accrual and going concern basis. the annual financial statements were authorised for issue by the Board on 15 august 2013.

1.1 Functional and presentation currency

items included in this financial report are measured using the currency of the primary economic environment in which Barwon region water Corporation operates (‘the functional currency’). the financial statements are presented in australian dollars, which is Barwon region water Corporation’s functional and presentation currency.

1.2 Historical cost

the financial statements have been prepared on a historical cost basis, with the exception of certain non-current assets which, as noted, are at valuation.

1.3 Rounding

unless otherwise stated, amounts in the report have been rounded to the nearest thousand dollars. figures in the financial report may not equate due to rounding.

1.4 Comparative amounts

unless otherwise stated, all accounting policies applied are consistent with those of the prior year. Comparatives are adjusted where necessary to enhance comparability in conformity with any changes in presentation and disclosure.

1.5 Classification between current and non-current

in the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be realised or paid. the asset or liability is classified as current if it is expected to be turned over within the next twelve months, being the Corporation’s operational cycle with the exception of employee benefits (refer note 1.20).

1.6 Critical accounting estimates

the preparation of financial statements in conformity with aas’s requires the use of certain critical accounting estimates. estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

the entity makes estimates and assumptions concerning the future. the resulting accounting estimates will, by definition, seldom equal the related actual results. the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are statements which relate to the actuarial assumptions used to determine the Corporation’s defined superannuation benefit asset and employee benefit provisions, and assumptions in estimating fair value of infrastructure assets, assessment of asset useful lives and impairment, and recognition of deferred tax assets. these assumptions and their related carrying amounts are discussed in notes 1.16.4, 1.20, 1.21, 6.4, 9, 14, and 15.

1.7 Revenue recognition

1.7.1 Water usage and sewer disposal charges

revenue is brought to account when services have been provided or when a rate/tariff is levied or determined.

water usage and sewer disposal charges (including tradewaste charges) are recognised as revenue when the services are provided. meter reading is undertaken progressively during the year. an estimate is made to account for revenue in respect of meters not read at balance date.

1.7.2 Government grants and contributions

Government grants and contributions are recognised as operating revenue on receipt or when the entity obtains control of the contribution and meets certain other criteria as outlined by aasB 1004, whichever is the sooner, and disclosed in the Comprehensive operating statement as government grants and contributions. However, grants and contributions received from the victorian state Government, which were originally appropriated by the Parliament as additions to net assets or where the minister for finance and the minister for water have indicated are in the nature of owners’ contributions, are accounted for as equity – Contributions by owners.

notes to the FinanciaL stateMents


1.7.3 Developer contributions/fees paid by developers

water infrastructure assets built by developers in new land subdivisions that, on completion, are provided to the Corporation or fees paid by developers to connect new developments to the Corporation’s existing water supply and sewerage systems are recognised as revenue when the contributions are received.

developer contributed assets are recognised on the issue by Barwon water of the relevant declaration of serviced areas. the value of these assets is based on fair value. fair value is determined based on a replacement cost matrix that allows for various asset types, locations and depths. the fair value of these assets is recognised as revenue in the accounts when the Corporation gains control of the assets.

1.7.4 Interest Income

interest income is recognised using the effective interest rate method.

1.8 Depreciation and amortisation

where assets have separate identifiable components that have distinct useful lives and/or residual values, a separate depreciation rate is determined for each component.

land is not depreciated. depreciation on other assets is calculated using the straight line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives, commencing from the time the asset is held ready for use. the assets residual values and useful lives are reviewed and adjusted, if appropriate, at each balance sheet date.

intangible assets with finite useful lives are amortised as an expense on a systematic basis (typically straight-line), commencing from the time the asset is available for use. the amortisation periods are reviewed and adjusted if appropriate at each balance date. intangible assets with indefinite useful lives are not amortised. However, all intangible assets are assessed for impairment annually.

depreciation rates within each asset class are consistent with the previous year and fall within the following ranges:

Property, Plant and Equipment Class

Depreciation Ranges

(%)

Buildings 1.25-15.00

infrastructure - distribution 1.25-15.00

infrastructure - harvesting and major transfer

1.25-15.00

infrastructure - reserves and river

1.25-15.00

infrastructure - quality 1.25-15.00

infrastructure - collection 1.25-15.00

infrastructure - treatment and disposal

1.25-15.00

Plant, equipment and other 1.25-27.00

intangible assets 20.00-27.00

1.9 Borrowing costs

Borrowing costs are recognised as expenses in the period in which they are incurred. Borrowing costs include interest on bank overdrafts and short-term and long-term borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and finance lease charges.

1.10 Web site costs

Costs in relation to web sites controlled by the Corporation are charged as expenses in the period in which they are incurred unless they relate to the acquisition of an asset, in which case they are capitalised and amortised over their period of expected benefits. Generally, costs in relation to feasibility studies during the planning phase of a web site, and ongoing costs of maintenance during the operating phase are considered to be expenses. Costs incurred in building or enhancing a web site, to the extent that they represent probable future economic benefits controlled by the entity that can be reliably measured, are capitalised as an asset and amortised over the period of the expected benefits, which may vary from three to five years.

1.11 State government dividend

Barwon water is required to pay a dividend in accordance with a determination of the treasurer of victoria made under the Public Authorities (Dividends) Act 1983, based on a prescribed percentage of the previous financial year’s reported net profit.

an obligation to pay a dividend only arises after consultation with the minister for water and the treasurer, and a formal declaration is made by the treasurer. although this process has not yet been completed on the 2012-2013 result at the reporting date, the Board’s preliminary dividend estimate in respect of 2012-2013 is $0 (2011-2012 estimate was $0).



54


1.12 Environmental contributions

the Water Industry (Environmental Contributions) Act 2004 amended the Water Industry Act 1994 to make provision for environmental contributions to be paid by water supply authorities. the act establishes an obligation for authorities to pay into the consolidated fund annually in accordance with a pre-established schedule of payments, which sets out the amounts payable by each Corporation.

the second four year schedule of payments ended on 30 June 2012, with a revised schedule applying from 1 July 2012 to 30 June 2016.

the purpose for the environmental contribution is set out in the Act and the funding may be used for the purpose of financing initiatives that seek to promote the sustainable management of water or address water-related initiatives. the environmental contributions are disclosed separately within expenses.

1.13 Cash and cash equivalent assets

for the purposes of the Cash flow statement, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown with interest bearing liabilities on the Balance sheet.

1.14 Receivables

trade receivables are recognised initially at fair value (which equates to cost) and subsequently measured at amortised cost, less provision for impairment. trade receivables are due for settlement no more than 30 days from the date of recognition for tariff and sundry debtors.

Collectability of trade receivables is reviewed on an ongoing basis. debts which are known to be uncollectible are written off. a provision for impairment is established when there is objective evidence that the Corporation will not be able to collect all amounts due according to the original terms of receivables. the amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. the amount of the provision is recognised in the Comprehensive operating statement.

1.15 Inventories

inventories comprise stores and materials used in the construction of new works and for the repair and maintenance of existing assets. all inventories are measured at the lower of cost and net realisable value. Costs are assigned to inventory quantities on hand at balance date on a weighted average cost (waC) basis. inventories include goods held for distribution at no or nominal cost in the ordinary course of business operations.

1.16 Recognition and measurement of assets

Property, plant and equipment represent non-current physical assets comprising land, buildings, water, sewerage and drainage infrastructure, plant, equipment and motor vehicles, used by the Corporation in its operations. items with a cost or value in excess of $1,000 and a useful life of more than one year are recognised as an asset. all other assets acquired are expensed.

where assets are constructed by the Corporation, the cost at which they are recorded includes an appropriate share of fixed and variable overheads.

assets acquired at no cost or for nominal consideration by the Corporation are recognised at fair value at the date of acquisition.

1.16.1 Repairs and maintenance

routine maintenance, repair costs and minor renewal costs are expensed as incurred. where the repair relates to the replacement of a component of an asset and the cost exceeds the capitalisation threshold, the cost is capitalised and depreciated.

1.16.2 Measurement of Non-Current Physical Assets

all non-current physical assets are recognised initially at cost, except for developer contributions which are valued at fair value, and subsequently revalued at fair value less accumulated depreciation and impairment in accordance with the requirements of financial reporting direction (frd) 103d.

revaluations are conducted in accordance with frd 103d. scheduled revaluation is undertaken every five years with an annual assessment of fair value to determine if it is materially different to carrying value. if the difference to carrying value is greater than 10 per cent, a management revaluation is undertaken while a movement greater than 40 per cent will normally involve an approved valuer (usually the valuer General of victoria) to perform detailed assessment of the fair value. if the movement in fair value since the last revaluation is less than or equal to 10 per cent, then no change is made to carrying amounts.

1.16.3 Plant, equipment and motor vehicles are measured at fair value

for the plant, equipment and vehicles asset class, where the Corporation is able to demonstrate that there is no evidence that a reliable market-based fair value (or other fair value indicators) exist for these assets, depreciated replacement cost is used to represent a reasonable approximation of fair value.



1.16.4 Revaluation of non-current physical assets

water infrastructure assets, at both the entity reporting level and whole of government reporting level, are therefore measured at fair value less accumulated depreciation and impairment in accordance with frd 103d. these assets comprise substructures or underlying systems held to facilitate harvesting, storage, treatment and transfer of water to meet customer needs. they also include infrastructure assets that underlie sewage and drainage systems.

the initial fair value assessment for water infrastructure in the current period was undertaken with involvement from the valuer General of victoria (vGv) and under the instructions of department of treasury and finance (dtf). the assessment was performed on a portfolio basis for various categories of water infrastructures. further details of the valuation exercise are provided in note 9.

revaluation increments are credited directly to equity in the revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in determining the net result, the increment is recognised as revenue in determining the net result.

revaluation decrements are recognised immediately as an expense in the net result, except that, to the extent that a credit balance exists in the revaluation reserve in respect of the same class of assets, they are debited to the revaluation reserve.

revaluation increases and revaluation 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.

revaluation reserves are not transferred to accumulated funds on derecognition of the relevant asset.

1.16.5 Impairment of assets

intangible assets with indefinite useful lives are tested annually as to whether their carrying value exceeds their recoverable amount. all other assets are assessed annually for indicators of impairment, except for:

• inventories;

• deferredtaxassets;

• financialinstrumentassets;

if there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. where an asset’s carrying amount exceeds its recoverable amount, the difference is written-off by a charge to the Comprehensive operating statement except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset.

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. 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.

a reversal of an impairment loss on a revalued asset is credited directly to equity under the heading revaluation reserve. However, to the extent that an impairment loss on the same class of asset was previously recognised in the Comprehensive operating statement, a reversal of that impairment loss is also recognised in the Comprehensive operating statement.

1.16.6 Assets (or disposal groups) held for sale

assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell, as their carrying amount will be recovered principally through a sale transaction, rather than through continuing use. the Corporation considers that the sale is highly probable, the asset is available for immediate sale in its present condition and the sale is expected to be completed within 12 months from the date of classification. assets are not depreciated or amortised while they are classified as held for sale. assets classified as held for sale are classified as current assets.

1.17 Intangibles

intangible assets represent identifiable non-monetary assets without physical substance. intangible assets are recognised at cost. subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impaired losses. intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the Corporation.

amortisation is allocated to intangible assets with finite useful lives on a systematic basis over the asset’s useful life. the amortisation period and method are reviewed at each balance date. in addition, an assessment is made at each reporting date to determine whether there are indicators of impairment. if so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.



56


the Corporation has intangible assets with both finite and indefinite useful lives. intangible assets with finite useful lives include ‘software and software development costs’; these assets are both acquired and internally generated. they are measured at cost less accumulated amortisation (calculated on a straight line basis) less any accumulated impairment losses. intangible assets with indefinite useful lives include ‘Bulk water entitlement’; this asset is acquired and is measured at cost. this asset is reviewed annually for indicators of impairment.

1.18 Payables

Payables consist predominantly of trade and sundry creditors. these amounts represent liabilities for goods and services provided to the Corporation prior to the end of the financial year, which are unpaid at financial year end. the amounts are unsecured and are usually paid within 30 days of recognition.

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

1.19 Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost.

interest bearing liabilities in the Balance sheet are classified as current liabilities unless the Corporation has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

1.20 Employee benefits

1.20.1 Wages and salaries, annual leave and sick leave

liabilities for wages and salaries and annual leave, expected to be settled within twelve months of the reporting date, are recognised in employee benefit liabilities in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled, at their nominal values.

employee benefits, which are not expected to be settled within twelve months, are measured as the present value of the estimated future cash outflows to be made by the entity, in respect of services rendered by employees up to the reporting date. sick leave entitlements are of a non-vesting nature and are paid upon a valid claim by an employee.

regardless of the expected timing of settlements, liabilities in respect of employee benefits are classified as a current liability, unless there is an unconditional right to defer the settlement of the liability for at least twelve months after the reporting date, in which case it would be classified as a non-current liability.

1.20.2 Long service leave

Current liability – unconditional lsl (representing seven* or more years of continuous service) is disclosed as a current liability even where the Corporation does not expect to settle the liability within 12 months because it does 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:

• presentvalue–componentthattheCorporation does not expect to settle within 12 months

• nominalvalue–componentthattheCorporation expects to settle within 12 months.

non-Current liability – conditional lsl (representing less than seven* years of continuous service) 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. Conditional lsl is required to be measured at present value.

in calculating present value, consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

*In accordance with Barwon Region Water Corporation Enterprise Agreement 2011.

1.20.3 Superannuation

the amount charged to the Comprehensive operating statement in respect of superannuation represents the contributions made or due by the Corporation to the superannuation plan in respect to the current services of Corporation staff. superannuation contributions are made to the plans based on the relevant rules of each plan.

1.20.4 Employee benefit on-costs

employee benefit on-costs, including payroll tax and worker’s compensation, are recognised and included in employee benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities.

1.21 Provisions

Provisions are recognised when the corporation, as a result of a past event, has a legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

the amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.



1.22 Commitments

Commitments for future expenditure include operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources. these commitments are disclosed by way of a note (refer to note 19) at their nominal value and inclusive of the goods and services tax (Gst) payable where applicable.

1.23 BOO (build, own and operate) schemes

the Corporation has entered into contractual arrangements with a third party to build, own and operate a biosolids drying facility at the Black rock water reclamation Plant. the contractor will lease land from Barwon water to build the thermal drying plant and will operate the facility for twenty years in exchange for a stream of payments. at the end of the contract period, the assets will be decommissioned and removed by the contractor and the site returned to Barwon water at no cost to Barwon water.

as ownership of the asset is transferred to the Corporation at the end of the contractual term and this term is for the major part of the economic life of the asset (in this case the full period of the asset’s useful life), the Corporation accounts for the asset under the Boot scheme as a finance lease. finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. the corresponding rental obligations, net of finance charges, are included in payables. each stream of lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. the interest element of the finance cost is charged to the comprehensive operating statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. the asset acquired in a Boot scheme that meets the classification of finance lease is depreciated over the asset’s useful life.

the facility was commissioned in september 2012 with payments to the contractor for the operation of the facility also commencing. future contractual commitments have also been disclosed in note 19.

1.24 Income tax

the Corporation is subject to the national tax equivalent regime (nter), which is administered by the australian taxation office.

the income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the national corporate income tax rate of 30% adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements and to unused tax losses.

deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantially enacted. the relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. no deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss. deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. in this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

1.25 Goods and Services Tax

revenues, expenses and assets are recognised net of the amount of goods and services tax (Gst), except where the amount of Gst incurred is not recoverable from the australian taxation office (ato). in these circumstances, the Gst is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. receivables and payables are stated inclusive of Gst.

the net amount of Gst recoverable from, or payable to, the ato is included as a current asset or liability in the Balance sheet.

Cash flows arising from operating activities are included in the Cash flow statement on a gross basis. the Gst component of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the ato, are classified as operating cash flows.

1.26 Contributions by Owners

additions to net assets which have been designated as contributions by owners are recognised as contributed capital. other transfers that are in the nature of contributions or distributions have also been designated as contributions by owners. transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners.

1.27 Financial instruments

1.27.1 Recognition

financial instruments, incorporating financial assets and financial liabilities, are recognised when Barwon water becomes a party to the contractual provisions of the instrument. trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.



58


initial measurement of financial instruments is at fair value plus transaction costs where the instrument is not classified as at fair value through profit or loss. transaction costs related to instruments classified as at fair value through profit or loss are expensed to profit or loss immediately. financial instruments are classified and measured as set out below.

1.27.2 Classification and measurement

Financial Assets

Cash and cash equivalents include cash on hand and deposits held at call with financial institutions and are recorded at fair value.

Loans and Receivables

trade receivables, loans and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment.

Payables

Payables are recognised when Barwon water becomes obliged to make future payments resulting from the purchase of goods and services.

Financial Liabilities

Borrowings are initially recognised at fair value, net of transaction costs incurred, and are subsequently measured at amortised cost using the effective interest rate method.

1.27.3 Fair valuation

the fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. the quoted market price used for financial assets held by Barwon water is the current bid price.

the carrying value less impairment provision of trade receivables and payables is a reasonable approximation of their fair values due to the short-term nature of trade receivables. the fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to Barwon water for similar financial assets.

the carrying amounts and aggregate net fair values of financial assets and financial liabilities at balance date have been provided in note 13.

1.28 Impairment of financial assets

at each reporting date, the Corporation assesses whether there is objective evidence that a financial instrument has been impaired. impairment losses are recognised in the Comprehensive operating statement.

1.29 New accounting standards and interpretations issued that are not yet effective

Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2013 reporting period. as at 30 June 2013, the following standards and interpretations had been issued but were not mandatory for financial year ending 30 June 2013. the Corporation has not and does not intend to adopt these standards early.





Standard/Interpretation Summary Applicable for annual reporting

periods beginning on

or after

Impact on financial statements

AASB 9 Financial Instruments, AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) and AASB 2012-6 Amendments to Australian Accounting Standards - Mandatory Effective Date of AASB 9 and Transition Disclosures

AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities.

The standard is not applicable until 1 January 2015 but is available for early adoption. The derecognition rules have been transferred from AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. The group has not yet decided when to adopt AASB 9.

1 January 2015 The entity is yet to assess its full impact. However, initial indications are that it may affect the entity’s accounting for its available-for-sale financial assets, since AASB 9 only permits the recognition of fair value gains and losses in other comprehensive income if they relate to equity investments that are not held for trading. Fair value gains and losses on available-for-sale debt investments, for example, will therefore have to be recognised directly in profit or loss.

AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities, AASB 127 Separate Financial Statements, AASB 128 Investments in Associates and Joint Ventures and AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards

AASB10 introduces a single definition of control that applies to all entities and focuses on the need to have both power and rights or exposure to variable returns.

AASB 11 introduces a new approach for which the focus is no longer on the legal structure of joint arrangements, but rather on how rights and obligations are shared by the parties to the joint arrangement. Based on the assessment of rights and obligations, a joint arrangement will be classified as either a joint operation or joint venture.

AASB 12 sets out the required disclosures for entities reporting under the two new standards, AASB 10 and AASB 11, and replaces the disclosure requirements currently found in AASB 127 and AASB 128.

These standards provide more reliable and relevant information for users to assess the composition of the group and the amounts, timing and uncertainty of future cash flows.

1 January 2013 The entity is yet to assess its full impact. The Corporation will apply amended standard from 1 July 2013.

AASB 1053 Application of Tiers of Australian Accounting Standards, AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements, AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements and AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements

On 30 June 2010 the AASB officially introduced a revised differential reporting framework in Australia. Under this framework, a two-tier differential reporting regime applies to all entities that prepare general purpose financial statements.

Tier 1 are the Australian Accounting Standards as currently applied and Tier 2 is the reduced disclosure regime which retains the recognition and measurement requirements of Australian Accounting Standards but with reduced disclosure requirements.

AASB 2011-6 extends the relief for intermediate parent entities from consolidation, equity accounting and proportionate consolidation to parent entities that report under tier 2, where the parent higher up the group is reporting either under tier 1 or tier 2.

1 July 2013 The entity is yet to assess its full impact. The Corporation will apply amended standard from 1 July 2013.

60





or after


AASB 119 Employee Benefits, AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 and AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements

These standards require the recognition of all remeasurements of defined benefit liabilities/assets immediately in other comprehensive income (removed of the so-called ‘corridor’ method) and the calculation of a net interest expense or income by applying the discount rate to the net defined benefit liability or asset.

1 January 2013/ 1 July 2013

The Corporation will apply amended standard from 1 July 2013.

AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters [AASB 2009-11 & AASB 2010-7]

AASB 1 First-time Adoption of Australian Accounting Standards was amended in December 2010 by eliminating references to fixed dates for one exemption and one exception dealing with financial assets and liabilities.

1 January 2013 This amendment will not affect the financial statements of the Corporation.

AASB 2011-4 Amendments to Australian Accounting Standards to remove Individual Key Management Personnel Disclosure Requirements

Removes the individual key management personnel disclosure requirements from AASB 124 Related Party Disclosures, to achieve consistency with the international equivalent standard and remove a duplication of the requirements with the Corporation Act 2001.

The amendments cannot be adopted early.

1 July 2013 This amendment is expected to have a limited impact.

AASB 2011-12 Amendments to Australian Accounting Standards arising from Interpretation 20 [AASB 1]

The interpretation provides guidance on the accounting for waste removal (stripping) costs in the production phase of a mine. Such tripping costs can only be recognised as an asset if they generate a benefit of improved access to an identifiable component of the ore body, it is probable that the benefits will flow and the costs can be measured reliably.

1 January 2013 This amendment does not affect the financial statements of the Corporation.

AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13

It explains how to measure fair value and aims to enhance fair value disclosures.

1 January 2013 The Corporation has yet to determine which, if any, of its current measurement techniques will have to change as a result of the new guidance. It is therefore not possible to state the impact, if any, of the new rules on any of the amounts recognised in the financial statements.

However, application of the new standard will impact the type of information disclosed in the notes to the financial statements. The group will adopt the new standard from its operative date, which means that it will be applied in the annual reporting period ending 30 June 2014.

AASB 2013-1 Amendments to AASB 1049 - Relocation of Budgetary Reporting Requirements

This Standard removes the requirements relating to the disclosure of budgetary information from AASB 1049 (without substantive amendment). All budgetary reporting requirements applicable to public sector entities are now located in a single, topic-based, Standard AASB 1055 Budgetary Reporting.

1 July 2014 The entity is yet to assess its full impact.

AASB 2012-11 Amendments to Australian Accounting Standards - Reduced Disclosure Requirements and Other Amendments

The Standard makes various editorial corrections to Australian Accounting Standards – Reduced Disclosure Requirements (Tier 2). These corrections ensure that the Standards reflect decisions of the AASB regarding the Tier 2 requirements.

1 July 2013 The entity is yet to assess its full impact. This amendment is expected to have a limited impact.






or after


AASB 2012-7 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

This Standard adds to or amends the Australian Accounting Standards – Reduced Disclosure Requirements for AASB 7 Financial Instruments: Disclosures, AASB 12 Disclosure of Interests in Other Entities, AASB 101 Presentation of Financial Statements and AASB 127 Separate Financial Statements. AASB 1053 Application of Tiers of Australian Accounting Standards provides further information regarding the differential reporting framework and the two tiers of reporting requirements for preparing general purpose financial statements.

1 July 2013 The entity is yet to assess its full impact. This amendment is expected to have a limited impact.

AASB 2012-2 Amendments to Australian Accounting Standard - Disclosures - Offsetting Financial Assets and Financial Liabilities

This Standard amends the required disclosures in AASB 7 to include information that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position.

1 January 2013 The entity is yet to assess its full impact. This amendment is expected to have a limited impact.

AASB 2012-3 Amendments to Australian Accounting Standard - Offsetting Financial Assets and Financial Liabilities

This Standard adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement.

1 January 2014 As noted above, the Corporation does not plan to adopt these standards until their effective date. As such, this amendment will not be adopted until the year ended 1 January 2014.

AASB 2012-4 Amendments to Australian Accounting Standard - Government Loans

This Standard adds an exception to the retrospective application of Australian Accounting Standards to require that first-time adopters apply the requirements in AASB 139 Financial Instruments: Recognition and Measurement (or AASB 9 Financial Instruments) and AASB 120 Accounting for Government Grants and Disclosure of Government Assistance prospectively to government loans existing at the date of transition to Australian Accounting Standards.

This means that first-time adopters would not recognise the corresponding benefit of the government loan received at a below-market rate of interest as a government grant. However, entities may choose to apply the requirements of AASB 139 (or AASB 9) and AASB 120 to government loans retrospectively if the information needed to do so had been obtained at the time of initially accounting for that loan. These amendments give first-time adopters the same relief as existing preparers of Australian-Accounting-Standards financial statements.


AASB 2012-5 Amendments to Australian Accounting Standard arising from Annual Improvements- 2009-2011 Cycle

These amendments are a consequence of the annual improvements process, which provides a vehicle for making non-urgent but necessary amendments to Standards.


62





or after


AASB 2012-9 Amendments to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039

This Standard makes an amendment to Australian Accounting Standard AASB 1048 Interpretation of Standards.

The amendment arises from the withdrawal of Australian Interpretation 1039 Substantive Enactment of Major Tax Bills in Australia.


AASB 2012-10 Amendments to Australian Accounting Standards - Transition guidance and other Amendments (clarifications only) - no separate disclosure needed

The amendments to AASB 10 and related Standards revise the transition guidance relevant to the initial application of those Standards, to clarify the circumstances in which adjustments to an entity’s previous accounting for its involvement with other entities are required and the timing of such adjustments. These amendments result from proposals issued in AASB Exposure Draft ED 224 Transition Guidance (December 2011).

Further amendments to AASB 10 and related Standards revise their application paragraphs, so that they apply mandatorily to not-for-profit entities for annual reporting periods beginning on or after 1 January 2014, with early application permitted for not-for-profit entities only from 1 January 2013. The application of the amendments set out in AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards is similarly amended. There is no change to the application date for for-profit entities, which are required to apply those Standards for annual reporting periods beginning on or after 1 January 2013, with early application permitted.

This Standard also makes various editorial amendments to a range of Australian Accounting Standards and to Interpretation 12 Service Concession Arrangements, including amendments to reflect changes made to the text of IFRSs by the IASB.







or after


AASB 1055 Budgetary Reporting

AASB 1053 Application of Tiers of Australian Accounting Standards establishes a differential reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements:

(a) Tier 1: Australian Accounting Standards; and

(b) Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements.

Tier 1 requirements incorporate International Financial Reporting Standards (IFRSs), including Interpretations, issued by the International Accounting Standards Board (IASB), with the addition of paragraphs on the applicability of each Standard in the Australian environment.

Publicly accountable for-profit private sector entities are required to adopt Tier 1 requirements, and therefore are required to comply with IFRSs. Furthermore, other for-profit private sector entities complying with Tier 1 requirements will simultaneously comply with IFRSs. Some other entities complying with Tier 1 requirements will also simultaneously comply with IFRSs.

Tier 2 requirements comprise the recognition, measurement and presentation requirements of Tier 1 but substantially reduced disclosure requirements in comparison with Tier 1.

1 July 2014 As noted above, the Corporation does not plan to adopt these standards until their effective date. As such, this amendment will not be adopted until 1 July 2014.

64


2. financial risk management objectives and policies

Barwon water’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. this note presents information about Barwon water’s exposure to each of these risks and the objectives, policies and processes for measuring and managing risk.

Barwon water’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of Barwon water. Barwon water uses different methods to measure different types of risk to which it is exposed. these methods include sensitivity analysis in the case of interest rate, other price risks and ageing analysis.

risk management is carried out under policies approved by the Board of directors. financial risks are identified, evaluated and hedged against with close co-operation with Barwon water’s operating units. the Board provides written principles for overall risk management, as well as policies covering specific areas, such as, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments and investment of excess liquidity.

2.1 Risk exposures

the main risks Barwon water is exposed to through its financial instruments are as follows:

a) Market risk

market risk is the risk that changes in market prices will affect the fair value or future cash flows of Barwon water’s financial instruments. market risk comprises of foreign exchange risk, interest rate risk and other price risk. Barwon water’s exposure to market risk is primarily through interest rate risk, there is no exposure to foreign exchange risk and insignificant exposure to other price risks.

objectives, policies and process used to manage these risks are disclosed in the paragraphs below:

i) Interest rate risk

Barwon water’s exposure to market interest rates relates primarily to Barwon water’s long-term borrowings and funds invested on the money market.

the Corporation minimises its exposure to interest rate changes on borrowings by holding fixed rate debt with an even spread of maturity profiles, at Board approved limits.

Barwon water has minimal exposure to interest rate risk through its holding of cash assets and other financial assets.

ii) Foreign exchange risk

Barwon water has no exposure to changes in the foreign exchange rate.

iii) Other price risk

Barwon water has no significant exposure to other price risk.

market risk sensitivity analysis is provided in note 2.3.

b) Credit risk

Credit risk is the risk of financial loss to Barwon water as a result of a customer or counterparty to a financial instrument failing to meet its contractual obligations. Credit risk arises principally from Barwon water’s receivables and financial assets available for sale.

Barwon water’s exposure to credit risk is influenced by the individual characteristics of each customer. the receivable balance consists of a large number of residential and business customers which are spread across a diverse range of industries. receivable balances are monitored on an on-going basis to ensure that exposure to bad debts is not significant. Barwon water has in place a Billing and Collection Policy for the collection of overdue receivables.

an analysis of the ageing of Barwon water’s receivables at reporting date has been provided in note 8.

c) Liquidity risk

liquidity risk is the risk that Barwon water will not be able to meet its financial obligations as they fall due. Barwon water’s policy is to settle financial obligations within 30 days and, in the event of dispute, make payments within 30 days from the date of resolution.

Barwon water manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecasts and actual cash flows and matching the maturity profiles of financial assets and financial liabilities.

Barwon water’s financial liability maturities have been disclosed in note 13.

2.2 Fair value measurements

the fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

as of 1 July 2009, Barwon water has adopted the amendment to aasB 7 Financial Instruments: disclosures which requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

i) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)

ii) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) level 2), and

iii) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).




the following table present Barwon water’s assets and liabilities measured and recognised at fair value:

at 30 June

2013 Level 1 $’000

2012 Level 1 $’000

Financial assets

Cash and cash equivalents 15,486 24,290

the fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the end of the reporting period. the quoted market price used for financial assets held by the group is the current bid price. these instruments are included in level 1.

2.3 Market risk sensitivity analysis

the sensitivity analysis below has taken into consideration past performance, future expectations, economic forecasts and management’s knowledge and experience of the financial markets. Barwon water believes that a movement of 1% in interest rates is reasonable over the next 12 months.

Barwon water’s exposure to interest rate movements has been calculated as outlined below:

• cashandcashequivalents–averagemonthly balance of cash and cash equivalents held during year at 1% interest rate movement, and

• interestbearingliabilities–totalknown maturing borrowings and anticipated new borrowings for following year at 1% interest rate movement.


30 June 2013 30 June 2012

Interest rate risk Interest rate risk

Carryingamount

$’000

-1% +1%Carryingamount

$’000

-1% +1%

Result $’000

Equity $’000

Result $’000

Equity $’000

Result $’000

Equity $’000

Result $’000

Equity $’000

Financial assets

Cash and cash equivalents 15,486 (39) (39) 39 39 24,290 (95) (95) 95 95

Receivables 38,507 0 0 0 0 33,129 0 0 0 0

Financial liabilities

Payables 44,114 0 0 0 0 41,273 0 0 0 0

Borrowings 497,370 510 510 (510) (510) 411,870 825 825 (825) (825)

Finance Lease 49,435 0 0 0 0 0 0 0 0 0

Total increase/(decrease) 471 471 (471) (471) 731 731 (731) (731)

market risk sensitivity analysis

66



3. revenue

4. Borrowing costs expense

5. employee benefits

66

2013 $’000

2012 $’000

Revenue

Service charges

- Water service charges 23,971 21,366

- Sewerage service charges 67,231 61,061

- Recycled water service charges 453 0

Usage charges

- Water usage charges 66,926 58,060

- Sewage disposal charges 4,845 4,517

- Recycled water usage charges 195 0

Tradewaste charges 4,789 5,473


Other services rendered 5,231 5,843

Non-government contributions

- Assets received from developers 16,318 16,917

- Fees paid by developers 6,471 6,771

- Customer capital contributions 5,398 41,961

Interest received/receivable 336 742

202,747 222,920

Revenue from non-operating activities

Net gain/(loss) on non-financial assets (2,838) (2,617)

Rent 642 808

(2,196) (1,809)

Total revenue 200,551 221,111

2013 $’000

2012 $’000

Interest on fixed borrowings 25,276 20,951

Interest on 11am borrowings 218 508

Financial accommodation levy 4,532 3,458

Finance lease charges 4,264 0

Total borrowing costs 34,291 24,917

2013 $’000

2012 $’000

Salaries and wages 30,983 29,507

Annual leave 2,490 2,385

Long service leave 813 1,891

Employer superannuation contributions 3,609 13,460

Other 3,144 5,143

Total employee benefit costs 41,038 52,386




6. national equivalent income tax

6.1 Prima facie income tax expense on pre-tax accounting profit reconciles to the income tax expense in the accounts as follows:

2013 $’000

2012 $’000

Income tax expense

Current tax (804) 13,837

Deferred tax 9,591 1,362

Under/(over) provided in prior years 0 0

8,787 15,199

Income tax expense is attributable to:

Surplus from continuing operations 8,787 15,199

Aggregate income tax expense 8,787 15,199

Deferred income tax/(revenue) expense included in income tax comprises:

Decrease/(increase) in deferred tax assets 4,353 (4,266)

(Decrease)/increase in deferred tax liabilities 5,238 5,352

(Decrease)/increase in equity 0 276

9,591 1,362

2013 $’000

2012 $’000

Net result before income tax expense 28,325 50,589

28,325 50,589

Tax at the Australian tax rate of 30% (2012 30%) 8,497 15,177

Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:

Entertainment/sundry 290 22

Income tax expense 8,787 15,199

6.2 Reconciliation of income tax expense to prima facie tax payable

68



6.4 Deferred tax assets

NOTE 2013 $’000

2012 $’000

Aggregate current and deferred tax arising in the reporting period and not recognised in net operating result but directly debited or credited to equity:

Net deferred tax - debited/(credited) directly to equity 16 0 (276)

0 (276)

6.3 Amounts recognised directly in equity

2013 $’000

2012 $’000

The balance comprises temporary differences attributable to:

Amounts recognised in operating statement

Provisions and accrued expenditure not deductible 3,689 8,043

Other 0 0

Tax losses 75,978 75,173

Net deferred tax assets 79,666 83,216

Movements

Opening balance at 1 July 83,216 92,787

Credited/(charged) to the operating statement (4,354) (9,571)

(Under)/over provided in prior years 0 0

Tax losses 804 0

Closing balance at 30 June 79,666 83,216

Deferred tax asset to be recovered after more than 12 months 76,269 79,160

Deferred tax asset to be recovered within 12 months 3,397 4,056




2013 $’000

2012 $’000

The balance comprises temporary differences attributable to:

Amounts recognised in operating statement

Depreciation 114,854 112,615

Expenditure capitalised 25,519 22,781

Other 3,028 2,767

Amounts recognised in equity

Asset revaluations 174,164 174,164

Net deferred tax liabilities 317,566 312,327

Movements

Opening balance at 1 July 312,327 306,974

Credited/(charged) to the operating statement 5,239 5,628

Credited/(charged) to equity 0 (276)


Deferred tax liability to be recovered after more than 12 months 313,549 308,949

Deferred tax liability to be recovered within 12 months 4,017 3,378

2013 $’000

2012 $’000

Deferred tax asset closing balance 79,666 83,216

Less accumulated tax losses offset against deferred tax liability (75,978) (75,173)

Deferred tax asset per financial statements 3,689 8,043

Deferred tax liability closing balance 317,566 312,327

Less accumulated tax losses offset against deferred tax asset (75,978) (75,173)

Deferred tax liability per financial statements 241,588 237,154

6.5 Deferred tax liabilities

6.6 Financial statement classification

70



7. Cash and cash equivalent assets

8. receivables

2013 $’000

2012 $’000

Cash on hand 8 8

Cash at bank 6,018 382

Investments at call - TCV 9,460 23,900

Total cash and cash equivalent assets 15,486 24,290

2013 $’000

2012 $’000

Current

Tariff and sundry 18,894 12,249

Accrued charges 15,516 14,187

Provision for impaired receivables (190) (190)

Other receivables 4,003 6,395

38,223 32,641

Non-current

Other receivables 284 488

284 488

Total receivables 38,507 33,129

2013 $’000

2012 $’000

The above figures are reconciled to cash at the end of the financial year as shown in the Cash Flow Statement, as follows:

Balances as above 15,486 24,290

Balances as per Cash Flow Statement 15,486 24,290

7.1 Reconciliation to cash at end of year



notes to the FinanciaL stateMentsa) Provision for impaired receivables

as at 30 June 2013, current receivables of Barwon water with a nominal value of $183,967 (2012: $184,548) were impaired. the amount of the provision was $190,000 (2012: $190,000). the individually impaired receivables relate mainly to disconnected tenant debt which is not secured against the property. it was assessed that it is unlikely the impaired receivables will be recovered.

the ageing of these receivables is as follows:

as at 30 June 2013, trade receivables of $7,657,800 (2012: $4,646,241) were past due but not impaired. these relate to a number of independent customers for whom there is no recent history of default. the ageing analysis of these receivables is as follows:

movements in the provision for impaired receivables are as follows:

the creation and release of the provision for impaired receivables has been included in “other expenses” in the Comprehensive operating statement. amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.

b) Fair value and credit risk

due to the short-term nature of the current receivables, their carrying value is assumed to approximate their fair value.

the maximum exposure to credit risk at the reporting date is the higher of the carrying value and fair value of each class of receivables mentioned above. Barwon water does not hold any collateral as security.

2013 $’000

2011 $’000

Over 6 months (190) (190)

(190) (190)

Ageing analysis2013

$’0002012

$’000

30 to 90 days 4,971 3,204

90 to 150 days 908 478

Over 150 days 1,778 964

7,658 4,646

2013 $’000

2012 $’000

At 1 July (190) (84)

Provision for impairment recognised during the year (98) (203)

Receivables written off during the year as uncollectable 98 97

Closing balance at 30 June (190) (190)

2013

Carrying amount

$’000Fair value

$’000

Non-current receivables 284 284

Scheme debtors (non-current) 284 284

2012

Carrying amount

$’000Fair value

$’000

Non-current receivables 488 488

Scheme debtors (non-current) 488 488

72


9. Property, plant and equipment details

9.1 Classes of property, plant and equipment details

2013 $’000

2012 $’000

Land

At fair value 30/6/11 109,124 109,124

At cost 3,486 1,409

Total land 112,610 110,533

Buildings

At fair value 30/6/11 16,268 16,268

At cost 898 440

Accumulated depreciation (1,483) (737)

Total buildings 15,683 15,971

Infrastructure - water distribution

At fair value 30/6/11 533,321 533,321

At cost 147,319 59,472

Accumulated depreciation and impairments (32,920) (16,106)

Total water distribution 647,720 576,687

Infrastructure - water harvesting and major transfer

At fair value 30/6/11 297,304 297,304

At cost 12,310 5,310


Total water harvesting and major transfer 299,668 297,672

Infrastructure - water quality

At fair value 30/6/11 86,983 86,983

At cost 9,726 9,309

Accumulated depreciation & impairments (10,079) (4,887)

Total Water Quality 86,630 91,405

Infrastructure - sewer collection

At fair value 30/6/11 484,304 484,304

At cost 127,905 75,236


Total sewer collection 586,172 547,107

Infrastructure - sewer treatment and disposal

At fair value 30/6/11 122,442 122,442

At cost 89,110 3,454

Accumulated depreciation (12,869) (6,001)

Total sewer treatment and disposal 198,683 119,895

Finance Lease

At cost 49,316 0

Less Accumulated depreciation (2,033) 0

Total Finance Lease 47,283 0

Plant, equipment and other

At cost 42,231 41,304

Accumulated depreciation (32,911) (30,984)

Total plant, equipment and other 9,320 10,320



9.1 Classes of property, plant and equipment details (continued)

2013 $’000

2012 $’000

Capital works in progress

At cost 188,366 273,646

Total CWIP 188,366 273,646

Total property plant and equipment 2,192,135 2,043,236



Carrying amount at

1 July$’000

Additions $’000

Disposals $’000

Revaluation $’000

Impairments $’000

Transfers between

Asset Classes $’000

Depreciation $’000

Closing WDV at 30 June

$’000

2012-2013

Land 110,533 0 (802) 0 0 2,879 0 112,610

Buildings 15,971 0 (244) 0 0 708 (752) 15,683

Water distribution 576,687 0 0 0 0 87,848 (16,814) 647,720

Water harvesting and major transfer

297,672 0 0 0 0 7,000 (5,004) 299,668

Water quality 91,405 0 (222) 0 0 662 (5,215) 86,630

Sewer collection 547,107 0 (2,768) 0 0 55,662 (13,828) 586,172

Sewer treatment and disposal

119,895 0 (28) 0 0 85,689 (6,874) 198,683

Finance Lease 0 49,316 0 0 0 0 (2,033) 47,283

Plant, equipment and other 10,320 0 (282) 0 0 1,967 (2,684) 9,320

Capital works in progress 273,646 157,134 0 0 0 (242,414) 0 188,366

2,043,236 206,450 (4,346) 0 0 (0) (53,204) 2,192,135

2011-2012

Land 110,958 0 15 (473) 0 33 0 110,533

Buildings 16,268 0 0 0 0 445 (742) 15,971

Water distribution 534,214 0 (878) (14) (308) 59,472 (15,798) 576,687

Water harvesting and major transfer

297,568 0 (255) 0 0 5,310 (4,951) 297,672

Water quality 87,236 0 (248) (102) 0 9,411 (4,892) 91,405

Sewer collection 485,482 0 (1,150) (22) 0 75,236 (12,440) 547,107

Sewer treatment and disposal

122,922 0 (48) 0 0 3,022 (6,001) 119,895

Plant, equipment and other 11,121 0 (856) 0 0 2,922 (2,867) 10,320

Capital works in progress 191,221 238,276 0 0 0 (155,851) 0 273,646

1,856,990 238,276 (3,420) (611) (308) (0) (47,691) 2,043,236

9.2 Movements during the reporting period

74


notes to the FinanciaL stateMents9.3 Depreciation, amortisation and impairment charges for the year

9.4 Profit/(loss) on disposal of property, plant and equipment

2013 $’000

2012 $’000

Depreciation 53,204 47,691

Amortisation 968 1,304

Impairment 0 0

Depreciation, amortisation and impairment for year 54,171 48,995

2013 $’000

2012 $’000

Proceeds on sale of property, plant and equipment 1,508 803

Less written down value 4,347 3,420

Net profit/(loss) on disposal (2,838) (2,617)

10. intangible assets

2013 $’000

2012 $’000

at cost 18,510 5,637

less: accumulated amortisation (968) (1,304)

17,542 4,333

Software$’000

Bulk Water Entitlement

$’000Total $’000

Year ended 30 June 2013

Opening WDV at 1 July 2012 4,333 0 4,333

Additions 8,255 5,922 14,177

Impairment 0 0 0

Amortisation (968) 0 (968)

Closing WDV at 30 June 2013 11,620 5,922 17,542

Year ended 30 June 2012

Opening WDV at 1 July 2011 2,538 0 2,538

Additions 3,099 0 3,099

Impairment 0 0 0

Amortisation (1,304) 0 (1,304)

Closing WDV at 30 June 2012 4,333 0 4,333




2013 $’000

2012 $’000

Current

Trade creditors 3,633 11,671

Accrued expenses 35,411 25,938

Other creditors 4,807 3,401

Total current payables 43,851 41,010

Non-current

Other creditors 263 262

Total payables 44,114 41,272

11. Payables

12. interest bearing liabilities

12.1 Details of Barwon Water’s borrowings at balance date are as follows:

2013 $’000

2012 $’000

Current - secured

Borrowings* 38,470 28,900

Finance lease 2 0

Total current interest bearing liabilities 38,472 28,900

Non-current - secured

Borrowings* 458,900 382,970

Finance lease 49,433 0

Total non-current interest bearing liabilities 508,333 382,970

Total interest bearing liabilities 546,805 411,870

* all borrowings have been transacted with the approval of the treasurer of victoria and hence are subject to statutory Guarantee by the state of victoria in accordance with the Borrowing and Investment Powers Act 1987. as a result all borrowings are classified as secured.

76


13. financial instruments

13.1 Interest rate risk exposures

the following table sets out Barwon water’s exposure to interest rate risk, including the contractual repricing dates and the effective weighted average interest rate by maturity periods. exposures arise predominantly from liabilities bearing variable interest rates as Barwon water intends to hold fixed rate liabilities to maturity.

30 June 2013

Floating interest

rate$

Fixed interest maturing inNon

interest bearing

$Total

$

1 year or less

$

Over 1 to 2 years

$

Over 2 to 3 years

$

Over 3 to 4 years

$

Over 4 to 5 years

$

Over 5 years

$

Financial assets

Cash and cash equivalents 15,486 0 0 0 0 0 0 0 15,486

Receivables 0 0 0 0 0 0 0 38,507 38,507

Total financial assets 15,486 0 0 0 0 0 0 38,507 53,993


Payables 0 0 0 0 0 0 0 (44,114) (44,114)

Borrowings 0 (38,470) (34,000) (28,500) (29,000) (30,000) (337,400) 0 (497,370)

Finance lease 0 (2) (94) (242) (410) (601) (48,086) 0 (49,435)

Total financial liabilities 0 (38,472) (34,094) (28,742) (29,410) (30,601) (385,486) (44,114) (590,919)

Net financial assets/liabilities 15,486 (38,472) (34,094) (28,742) (29,410) (30,601) (385,486) (5,607) (536,926)

Weighted average interest rate 0.00% 5.57% 5.68% 5.79% 6.15% 7.06% 6.77%

30 June 2012

Floating interest

rate$

Fixed interest maturing in Non interest bearing

$Total

$

1 year or less

$

Over 1 to 2 years

$

Over 2 to 3 years

$

Over 3 to 4 years

$

Over 4 to 5 years

$

Over 5 years

$

Financial assets

Cash and cash equivalents 24,290 0 0 0 0 0 0 0 24,290

Receivables 0 0 0 0 0 0 0 33,129 33,129

Total financial assets 24,290 0 0 0 0 0 0 33,129 57,419


Payables 0 0 0 0 0 0 0 (41,272) (41,272)

Borrowings 0 (28,900) (13,970) (24,000) (23,500) (24,000) (297,500) 0 (411,870)

Finance lease 0 0 0 0 0 0 0 0 0

Total financial liabilities 0 (28,900) (13,970) (24,000) (23,500) (24,000) (297,500) (41,272) (453,142)

Net financial assets/liabilities 24,290 (28,900) (13,970) (24,000) (23,500) (24,000) (297,500) (8,143) (395,723)

Weighted average interest rate 0.00% 5.60% 6.97% 6.20% 6.11% 6.50% 7.08%





14. Provisions

14.1 Employee benefits

13.2 Fair valuation

the carrying amounts and fair values of financial assets and financial liabilities at balance date are:

Cash, cash equivalents and non-interest bearing financial assets and financial liabilities are carried at cost which approximates their fair value. the fair value of other financial assets and financial liabilities is based upon market prices, where a market exists or by discounting the expected future cash flows at current interest rates.

2013 2012

Carrying amount

$’000

Fair value $’000

Carrying amount

$’000

Fair value $’000

Financial assets

Cash and cash equivalents 15,486 15,486 24,290 24,290

Receivables 38,507 38,507 33,129 33,129

Total financial assets 53,993 53,993 57,419 57,419


Payables (44,114) (44,114) (41,272) (41,272)

Borrowings (497,370) (541,930) (411,870) (470,357)

Finance Lease (49,435) (49,435) 0 0

Total financial liabilities (590,919) (635,479) (453,142) (511,629)

2013 $’000

2012 $’000

Current:

Annual leave and unconditional long service leave entitlements, representing 7 years of continuous service:

- employee benefits expected to be settled within 12 months, measured at nominal value 8,716 8,591

- employee benefits expected to be settled after 12 months, measured at present value 1,125 1,144

Total current 9,841 9,735

Non-current:

Conditional long service leave, measured at present value 878 909

Total non-current 878 909

Total employee benefits 10,719 10,644

in measuring the present value of long service leave entitlements, a discount rate of 3.79% (3.06% in 2012), a workcover premium of 1.5067% (1.5362% in 2012) and a increase in employee costs of 4.50% (4.31% in 2012) was assumed.

78



in accordance with AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets’ a provision has been established for the further treatment and processing of stored biosolids consistent with ePa licensing requirements.

2013 $’000

2012 $’000

Current liabilities

Other 1,404 16,025

Total current provisions 1,404 16,025

Opening balance at 1 July 2012 16,025 3,617

Additional provisions raised during year 5,313 14,804

Amounts used (19,934) (2,396)

Balance at 30 June 2013 1,404 16,025

14.2 Short term provisions




15. superannuation

Barwon water makes employer superannuation contributions in respect of most employees to the local authorities superannuation fund (the fund). obligations for contributions are recognised as an expense in profit or loss when they are due. the fund has two categories of membership, accumulation and defined benefits, each of which is funded differently.

the fund’s accumulation category, vision super saver, receives both employer and employee contributions on a progressive basis. employer contributions are normally based on a fixed percentage of employee earnings (for the year ended 30 June 2013, this was 9% required under superannuation Guarantee legislation. as of 01 July 2013, the superannuation Guarantee contribution rate will increase to 9.25%, and will progressively increase to 12% by 2019). no further liability accrues to the employer as the superannuation benefits accruing to the employees are represented by their share of the net assets of the fund.

the fund’s defined Benefit Plan is a multi-employer sponsored plan. as the fund’s assets and liabilities are pooled and are not allocated by employer, the actuary is unable to allocate benefit liabilities, assets and costs between employers. as provided under aasB 119, Barwon water does not use defined benefit accounting for these contributions.

Barwon water makes employer contributions to the defined benefit category of the fund at rates determined by the trustee on the advice of the fund’s actuary. on the basis of the results of the most recent full actuarial investigation conducted by the fund’s actuary as at 31 december 2011, the trustee has determined that the current funding arrangements are adequate for the expected defined Benefit Plan liabilities. Barwon water makes employer contributions to the fund’s defined Benefit scheme at rates determined by the fund’s trustee. the rate is currently 9.25% of members’ salaries (9.25% in 2011-2012).

in addition, Barwon water reimburses the fund for the difference between resignation and retrenchment benefits paid to any retrenched employees. employees are also required to make member contributions to the fund. as such, assets accumulate in the fund to meet member benefits, as defined in the trust deed, as they accrue.

during 2012-2013, Barwon water was not required to make any payments to the fund in respect of retrenchment increments ($0 in 2011-2012). Barwon water’s liability to the fund as at 30 June 2013, for retrenchment increments, accrued interest and tax is $0 ($0 in 2011-2012).

the fund’s liability for accrued benefits was determined in the 31 december 2011 actuarial investigation pursuant to the then requirements of australian accounting standard aas25 as follows:

31 Dec 2011 $’000

Net Market Value of Assets 4,315,324

Accrued Benefits (per accounting standards)

4,642,133

Difference between Assets and Accrued Benefits

(326,809)

Vested Benefits (Minimum sum which must be paid to members when they leave the fund)

4,838,503

the financial assumptions used to calculate the accrued Benefits for the defined benefit category of the fund were:

Net Investment Return 7.50% pa

Salary Inflation 4.25% pa

Price Inflation 2.75% pa

80



there were no contributions outstanding or loans issued from or to either of the above schemes at 30 June 2013.

Type of scheme Rate2013

$’0002012

$’000

Vision Super Defined Benefits 9.25% - 18.25% 1,488 1,478

Vision Super Accumulation Plan 9.00% 1,590 1,593

Emergency Services & State Super Defined Benefits 7.40% - 17.30% 9 23

Other Funds Accumulation Plan 9.00% 307 279

15.1 Superannuation contributions

Contributions by Barwon water to the above superannuation boards for the financial year ended 30 June 2013 are detailed below:

the asset revaluation reserve is used to record asset revaluation increments and decrements in the value of non-current physical assets.

16. reserves2013

$’0002012

$’000

Asset Revaluation Reserve surplus/(deficit)

Balance at 1 July 377,811 378,454

Revaluation increment/(decrement) on non-current assets 0 (919)

Tax effect of revaluation of assets 0 276

Balance at 30 June 377,811 377,811

state of victoria 2012-13 capital contributions were received for key project milestones in relation to the northern water Plant, Black rock recycled water Plant, and torquay recycled water extension.

in addition, government contributions were received and recognised in the Comprehensive operating statement – refer note 3.

17. Contributed capital2013

$’0002012

$’000

Contributed capital at 1 July 444,464 418,794

Capital transactions with the State in its capacity as owner arising from:

- Northern Water Plant 2,000 7,670

- Black Rock Recycled Water Plant 3,000 6,000

- Melbourne to Geelong Pipeline 0 11,000

- Torquay Recycled Water Extension 2,360 1,000

- Crown Land (24) 0

7,336 25,670


18. accumulated funds2013

$’0002012

$’000

Opening balance at 30 June 575,698 540,308

Net result for the year 19,538 35,390





19. Commitments for expenditure

outstanding contractual commitments for major works, services and materials entered into and not provided for in the Balance sheet at 30 June 2013, amount to $219,645,720 (2012: $363,826,000) inclusive of Gst, with the exception of the environmental Contribution commitments which are exclusive of Gst.

19.1 Commitments other than Build Own Operate (BOO)

nominal values2013

$’0002012

$’000

Capital expenditure commitments

Property, plant and equipment 69,746 71,591

Total capital expenditure commitments 69,746 71,591

Intangible asset commitments

Software implementation 0 2,991

Total intangible asset commitments 0 2,991

Operating expenditure commitments

Annual licence fees and software maintenance 567 0

Biosolids processing 0 5,239

External consultants 0 160

Other operating expenditure 0 48

Total operating expenditure commitments 567 5,446

Other expenditure commitments

Enviromental Contribution (GST exclusive) 19,923 24,369

Total other expenditure commitments 19,923 24,369

Total commitments other than Build Own Operate (BOO) 90,236 104,397

82


notes to the FinanciaL stateMents19.2 Commitments for Build Own Operate (BOO) expenditure

the thermal drying plant was commissioned on 3 september 2012, at which time a leased asset and leased liability were recognised in the balance sheet at $49,316,314 each.

2013 $’000

2012 $’000

Commissioned Build Own Operated (BOO) - total commitments

Other commitments Other commitments

Present value Normal value Present value Normal value

Biosolids drying facility - amounts contracted for at balance date but not provided for in the accounts 69,445 129,409 0 0

Sub-total commissioned BOO expenditure 69,445 129,409 0 0

Uncommissioned Build Own Operated (BOO) - total commitments

Minimum lease payments

Other commitments

Total commitments

Minimum lease payments

Other commitments

Total commitments

Discounted value Presentvalue Nominal value Discounted value Present value Nominal value

Biosolids drying facility- amounts contracted for at balance date but not provided for in the accounts 0 0 0 49,316 72,311 259,428

Sub-total un-commissioned BOO expenditure 0 0 0 49,316 72,311 259,428

Total commitments for BOO expenditure 0 69,445 129,409 49,316 72,311 259,428



notes to the FinanciaL stateMents19.3 Commitments payable

nominal values2013

$’0002012

$’000

Capital expenditure commitments payable

Less than 1 year 56,261 66,228

Longer than 1 year but not longer than 5 years 13,485 5,363

5 years or more 0 0

Total capital expenditure commitments 69,746 71,591

Intangible asset commitments payable

Less than 1 year 0 2,991

Longer than 1 year but not longer than 5 years 0 0

5 years or more 0 0

Total intangible asset commitments 0 2,991

Operating expenditure commitments payable

Less than 1 year 445 2,827

Longer than 1 year but not longer than 5 years 122 2,619

5 years or more 0 0

Total operating expenditure commitments 567 5,446

Environmental Contribution expenditure commitments payable



5 years or more 0 0

Total Environmental Contribution expenditure commitments 19,923 24,369

Build Own Operate (BOO) expenditure commitments payable



5 years or more 101,985 207,570

Total commitments other than Buil Own Operate (BOO) 129,409 259,428

Total commitments (inclusive of GST) 219,646 363,825

Less GST recoverable from the Australian Tax Office 18,157 30,860

Total commitments (exclusive of GST) 201,489 332,965

84


notes to the FinanciaL stateMents19.4 Commitments for finance lease liabilities

20. notes to the Cash flow statement

20.1 Reconciliation of profit/(loss) for the period after related income tax to net cash flow from operating activities

2013 $’000

2012 $’000

Net Profit after income tax 19,538 35,390

Add/(less) non-cash flows in net profit

Depreciation, amortisation and impairment 54,171 48,995

(Profit)/loss on disposal of property, plant and equipment 2,838 2,617

Non-cash capital contributions (16,318) (16,917)

Non-cash interest expense on finance lease 4,264 0

Income tax expense 8,787 15,199

Changes in assets and liabilities

Increase/(decrease) in employee provision 76 1,719

Increase/(decrease) in other provisions (14,621) 12,408

Increase/(decrease) in bad debts provision 0 106

Increase/(decrease) in finance lease liability 119 0

Decrease/(increase) in receivables (5,475) (5,172)

Decrease/(increase) in accrued interest receivable 557 (337)

Decrease/(increase) in stock (2) 30

Decrease/(increase) in prepayments (208) 404

Increase/(decrease) in creditors/accrued expenses 3,700 4,022

Net cash provided by operating activities 57,428 98,463

Minimum future lease payments

Present value of minimum future lease payments

2013 $’000

2012 $’000

2013 $’000

2012 $’000

Commissioned BOO related finance lease liabilities payable

Less than 1 year 2 0 2 0

Longer than 1 year but not longer than 5 years 21,880 0 15,996 0

5 years or more 100,528 0 33,437 0

Minimum future lease payments 122,410 0 49,435 0

Less future finance charges (72,975) 0 0 0

Present value of minimum lease payments 49,435 0 49,435 0

Included in the financial statements as:

Current finance lease liabilities (Note 12) 2 0

Non-current finance lease liabilities (Note 12) 49,433 0

49,435 0



notes to the FinanciaL stateMents20.2 Financing facilities

Barwon water has an overdraft facility of $100,000. the facility is subject to annual review by its bankers and at 30 June 2013, the amount of credit unused was $100,000.

at 30 June 2013, Barwon water had fully drawn firmly committed long-term financing facilities of $497,370,000 (2012: $411,870,000).

21. responsible persons, executive officers and other personnel

21.1 Responsible persons

the relevant minister and directors of Barwon region water Corporation are deemed to be responsible persons by ministerial direction pursuant to the provisions of the Financial Management Act 1994.

the responsible person (minister) of Barwon region water Corporation during the reporting period, from 1 July 2012 to 30 June 2013, was the Hon Peter walsh mla, minister for water.

the responsible persons (directors) of Barwon region water Corporation at any time during the reporting period were:

J J adamski (accountable officer)

dr. m B King (Chair)

J n Heath (deputy Chair)

r J Bugg (term ended 30/09/2012)

s J adams (term commenced 01/10/2012)

d P Harris

dr. s Kontelj

H B Gleeson

s Batten

21.2 Remuneration of responsible persons

remuneration paid to ministers is reported in the annual report of the department of Premier and Cabinet. other relevant interests are declared in the register of members’ interests which each member of the Parliament completes.

2013 $’000

2012$’000

Income received, or due and receivable, by responsible persons of Barwon Water and related parties 613 802

The number of responsible persons of Barwon Water whose income from Barwon Water and related parties was within the specified bands are as follows:

Total Remuneration

$ $ 2013 2012

0 - 9,999 1 2

10,000 - 19,999 1

20,000 - 29,999 1 3

30,000 - 39,999 5 3

50,000 - 59,999 1

70,000 - 79,999 1

330,000 - 339,999 1

520,000 - 529,999 1

Total Numbers 9 11

Total Amount $613,717 $802,196

the retirement benefits paid by Barwon water in connection with the retirement of responsible persons of the Corporation amounted to $0.

86


notes to the FinanciaL stateMents21.3 Other transactions of responsible persons and their related entities

during the year transactions occurred between Barwon water, responsible persons and their related entities. the transactions were those of a normal customer/supplier relationship.

21.4 Executive officers remuneration

21.5 Payment to other personnel

during the year Barwon water had no other personnel, by way of contractors, charged with significant management responsibilities.

2013 $’000

2012$’000

Income received, or due and receivable, by executives of Barwon Water whose income was at least $100,000 2,526 2,209

The number of executive officers, other than ministers and accountable officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits. The total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period.

Total Remuneration Base Remuneration

$ $ 2013 2012 2013 2012

140,000 - 149,999 3 3 3

150,000 - 159,999 5 2 3

160,000 - 169,999 3 1 2 1

170,000 - 179,999 1

180,000 - 189,999 1 1

190,000 - 199,999 4

200,000 - 209,999 2

210,000 - 219,999 3 2

220,000 - 229,999 3 1 1

230,000 - 239,999 1

240,000 - 249,999 1

Total numbers 14 12 12 9

Total annualised employee equivalent (AEE) 14 12 12 9

Total amount $2,526,027 $2,209,004 $2,063,569 $1,600,272

22. remuneration of auditors

2013 $

2012$

Amounts received, or due and receivable, by the Victorian Auditor-General for auditing the accounts 85,800 85,250




23. Contingent assets/contingent liabilities

2013 $’000

2012 $’000

Contingent liabilities

Details and estimates of maximum amounts of contingent liabilities for which no provision is included in the accounts, are as follows:

Claims or possible claims in relation to a rainwater tank rebates scheme in a subdivision in the Geelong region 1,171 1,209

Possible gainshare and delivery performance payable by the Corporation in relation to capital projects 280 2,556

Total contingent liabilities 1,450 3,765

24. events subsequent to balance date

no matters or circumstances have arisen since the end of the reporting period which significantly affected or may significantly affect the operations of the Corporation, the results of those operations, or the state of affairs of the Corporation in future financial years.

25. ex-gratia payments

2013 $’000

2012 $’000

Barwon Water made the following ex-gratia payments:

Ex-gratia payments - water suplied by agreement disconnection 20 0

These payments were made to assist long-time ‘supply-by-agreement’ customers’ source alternative water supply arrangements once disconnection of their existing supply occurred. Being ‘supply-by-agreement’ customers, no obligation to continue supply is required.

88


Barwon reGion water corporation

accountable officer’s and chief finance and accounting officer’s declarationthe attached financial report for the Barwon region water Corporation have been prepared in accordance with standing directions 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 2013 and financial position of the Corporation at 30 June 2013.

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 16 august 2013.

M King Chairman Barwon Region Water Corporation

J Adamski Managing Director Barwon Region Water Corporation

M Watson Chief Finance and Accounting Officer Barwon Region Water Corporation

Dated this 16th day of August, 2013


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the 2012-2013 annual report of the Barwon region water Corporation is prepared in accordance with all relevant victorian legislation. this index has been prepared to facilitate identification of the authority’s compliance with statutory disclosure requirements.

Legislation Requirement Page reference

Report of Operations

Charter and purpose

FRD 22D Manner of establishment and the relevant Ministers 5

FRD 22D Objectives, functions, powers and duties 4-5, 29

FRD 22D Nature and range of services provided 4

Management and structure

FRD 22D Organisational structure 28

SD 2.2(f)(g) Audit Committee requirements 29

Financial and other information

FRD 10 Disclosure index 91-92

FRD 22D Operational and budgetary objectives and performance against objectives 9, 43-44

FRD 22D Employment and conduct principles 32

FRD 22D Occupational health and safety policy 34

FRD 22D Summary of the financial results for the year 9-11

FRD 22D Significant changes in financial position during the year 9

FRD 22D Major changes or factors affecting performance 9

FRD 22D Subsequent events 9

FRD 22D Application and operation of Freedom of Information Act 1982 36

FRD 22D Compliance with building and maintenance provisions of Building Act 1993 37

FRD 22D Statement on National Competition Policy 39

FRD 22D Application and operation of the Protected Disclosures Act 2001 38-39

FRD 22D Details of consultancies over $10,000 40-42

FRD 22D Details of consultancies under $10,000 42

FRD 22D Disclosure of government advertising expenditure 42

FRD 22D Statement of availability of other information 36

FRD 25A Victorian Industry Participation Policy disclosures 39

FRD 27B Presentation and reporting of performance information 43-47

FRD 29 Workforce Data disclosures 33

FRD 30A Standard requirements for the design and print of annual report N/A

SD 4.5.5 Risk management compliance attestation 29

SD 4.2(g) General information requirements 4-10

SD 4.2( j) Sign-off requirements 8

Ministerial Reporting Directions

MRD 01 Performance Reporting 43-44

MRD 02 Reporting on water consumption and drought response 12-14

MRD 03 Environmental and social sustainability reporting 15-21, 26-27

MRD 04Disclosure of information on bulk entitlements, transfers of water entitlements, allocations and licences, irrigation water usage and licence requirements

22-25

MRD 05 Annual reporting of non-residential major water users 13

DiscLosure inDexPart 7


92


part 7DiscLosure inDex

Legislation Requirement Page reference

Financial Statements

Financial statements required under Part 7 of the FMA

SD4.2(a) Statement of changes in equity 50

SD4.2(b) Statement of Comprehensive income 48

SD4.2(b) Balance sheet 49

SD4.2(b) Cash flow statement 51

Other requirements under Standing Directions 4.2

SD4.2(c)Compliance with Australian accounting standards and other authoritative pronouncements

52

SD4.2(c) Compliance with Ministerial Directions 52

SD4.2(d) Rounding of amounts 52

SD4.2(c) Accountable officer’s declaration 88

SD4.2(f) Compliance with Model Financial Report 88

Other disclosures as required by FRDs in notes to the financial statements

FRD 03A Accounting for Dividends 53

FRD 11A Disclosure of ex-gratia payments 87

FRD17A Long service leave wage inflation and discount rates 49, 56, 77

FRD 19 Private provision of public infrastructure 57, 82-84

FRD 21B Responsible person and executive officer disclosures 85-86

FRD 102 Inventories 54

FRD 103D Non current physical assets 49, 54-55, 72-73

FRD 104 Foreign currency 52

FRD 105A Borrowing costs 48, 51, 53, 66

FRD 106 Impairment of assets 48, 55, 58, 72-74

FRD 109 Intangible assets 49, 55, 74

FRD 107 Investment properties N/A

FRD 110 Cash flow statements 51, 84

FRD 112C Defined benefit superannuation obligations 56, 79-80

FRD 113 Investments in subsidiaries, jointly controlled entities and associates N/A

FRD 114AFinancial Instruments – General Government Entities and public non financial corporations

57-58, 76

FRD 119 Contributions by owners 49-51, 57, 80

FRD 120GAccounting and reporting pronouncements applicable from 2010-11 reporting period

52-58

FRD 121 Infrastructure assets 49, 54-55, 72-73

Legislation

Freedom of Information Act 1982 36

Building Act 1993 37

Whistleblowers Protection Act 2001/Protected Disclosures Act 2012 38

Victorian Industry Participation Policy Act 2003 39

Financial Management Act 1994 37, 52

Water District

Lakes

Barwon Water reservoir

Special water supply catchment

Water channel/pipelines

Main sewer

Water service basin/tank

Water treatment plant

Groundwater production bores

Water reclamation plants

Sewer Flow Management Facility

Recycled Water Plant

Recycled water tank

Recycled water pipeline

Outfall

Service area

Barwon Water is always looking for ways to improve its practices to reduce its environmental footprint. This extends to the paper and processes it uses.

This report has been printed on EcoStar 100% recycled stock.

Additional copiesThis annual report is available for viewing or download from Barwon Water’s website www.barwonwater.vic.gov.au

As part of Barwon Water’s goal to continually improve its environmental performance, it prints limited numbers of the annual report. Barwon Water encourages those with internet access to view the report online. If you require any additional printed copies, please contact Barwon Water using one of the below methods.

Your feedbackBarwon Water welcomes your feedback on its performance and the content of this report.

Email: [email protected] Telephone: 1300 656 007 Calling from overseas: +61 3 5226 2500 In writing: PO Box 659 Geelong Victoria 3220 In person: 61-67 Ryrie Street Geelong Victoria

ISSN 1838-2916 (Print) ISSN 1838-2924 (Online)

© Barwon Region Water Corporation 2013. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

GSDM 11279

Cover image: Barwon Water employees respond to faults and emergencies 24-hours a day, seven days a week.

Photograph: Casey Tomkins.

PART 4 – CORPORATe INfORmATION | PART 5 – PeRfORmANCe RePORT | PART 6 – fINANCIAl STATemeNTS | PART 7 – dISClOSuRe INdexSeRVICe AReA mAP | PART 1 – YeAR IN ReVIeW | PART 2 – WATeR CONSumPTION ANd dROuGhT ReSPONSe | PART 3 – eNVIRONmeNTAl & SOCIAl SuSTAINABIlITY

BARWON WATeR ANNuAl RePORT 2012-2013 932

ANNUAL REPORT2012-2013

61-67 Ryrie Street Geelong Victoria 3220 PO Box 659 Geelong Victoria 3220

1300 656 007

www.barwonwater.vic.gov.au

Barwo

n Water A

nn

ual Rep

ort 20

12-2013

Documents

Annual Report 2012-2013 - Parliament of Victoria · 2013. 9. 18. · Barwon river, east moorabool river and west moorabool river, and from two ... in 2012-2013, Barwon water dried