SMCMA AnnualReport 04-05 - Pt 1 of 3 cover sheet

ANNUAL REPORT

2004/05

SYDNEY METROPOLITAN CATCHMENT MANAGEMENT AUTHORITYNEW SOUTH WALES

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Sydney Metropolitan Catchment Management Authority: Annual Report 2004/05Editor: Owen GrahamOctober 2005

ISSN 1833-1149

This report is available in PDF on the Internet through www.cma.nsw.gov.au

This report has been produced internally and is published by the Sydney MetropolitanCatchment Management Authority.

100 copies were printed at a unit cost of $4.51.

While every reasonable effort has been made to ensure that this document is correct at thetime of publication, the State of New South Wales, its agencies and employees, disclaim anyand all liability to any person in respect of anything or the consequences of anything done oromitted to be done in reliance upon the whole or any part of this document.

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25 October 2005

The Honourable Ian Macdonald MLCMinister for Natural Resources, Minister for Primary Industries, and Minister for MineralResourcesLevel 30 Governor Macquarie Tower1 Farrer PlaceSydneyNSW 2000

Dear Minister

I have great pleasure in presenting the Annual Report 2004/05 for the Sydney MetropolitanCatchment Management Authority (SMCMA), a statutory body under the CatchmentManagement Authorities Act 2003.

The report covers the period when the SMCMA operated, firstly, as the SMCMA LocalEstablishment Team, and then from September 2004 as the SMCMA with an interim BoardMembership.

This report has been prepared for submission to Parliament and is in accordance withSection 17 of the Catchment Management Authorities Act 2003, the Annual Reports(Statutory Bodies) Act 1984 and the Annual Reports (Statutory Bodies) Regulation 2005.

Whilst the SMCMA commenced operations after the other 12 Catchment ManagementAuthorities in the state, the delay has allowed a thorough evaluation and refinement of therole for the SMCMA in it’s urban environment. This is somewhat different to the other rurallybased CMAs and has a strong emphasis in the coordination of natural resource managementactivities by the community and local government.

The Board and staff of the SMCMA have spent considerable time in building on the goodrelationships with councils and the community that were forged by the previous CatchmentManagement Committees and Boards. We have also specifically met with the Mayors,General Managers and senior staff of the majority of the councils in our area to discussopportunities for collaboration and to develop operational partnerships.

The SMCMA is developing rapidly and producing solid on-ground outcomes with its projectpartners including the community, state and the Australian Government. The SMCMA’sapproach of working with local government is making significant gains in natural resourcemanagement through a cooperative and consistent approach. The community is alsoappreciating the coordinating role of the SMCMA and this is demonstrated by the success ofits Environmental Forum and other targeted community events.

I am grateful to the departmental staff that have supported the SMCMA in the last year.Without their dedication in an uncertain environment, we would have nothing.

The anticipated finalisation of the staffing recruitment process in the 2005/06 Financial Yearwill consolidate these formative steps and further raise the profile of the SMCMA.

Yours sincerely

Bob Junor Philip SansomChairman Board Member

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CONTENTS

ISSN, publication data and production cost 1Letter to Minister 2Contents 3Summary of operations 4The Role of Catchment Management Authorities 7Establishment of Catchment Management Authorities and the SMCMA 7Operational Environment of the SMCMA 8Management structure 9SMCMA Contact information 12Progress on achieving results in the CAP and AIP 13Progress in achieving compliance with State-wide NRM Standards and Targets 13Update on Catchment Management Strategies 13Summary of funds granted 13Summary of funds granted to external agencies 14Management targets 14On-ground works undertaken to achieve catchment management targets 14Appendix 1. Research and Development 15Appendix 2. Staff statistics 15Appendix 3. NSW Government Action Plan for Women 15Appendix 4. Consultants engaged 15Appendix 5. Equal Employment Opportunity 15Appendix 6. Cost of production and availability of Annual Report 16Appendix 7. Promotion 16Appendix 8. Consumer response 16Appendix 9. Legislation & Legal Change 16Appendix 10. Summary of Accounts Payable 17Appendix 11. Budget Forecast 2005/06 18Appendix 12. Risk Management 19Appendix 13. Occupational Health and Safety 19Appendix 14. Waste 19Appendix 15. Disclosure of Controlled Entities 19Appendix 16. Investment Management Performance 19Appendix 17. Privacy 19Appendix 18. Credit card certification 19Appendix 19. Government energy management performance 19Appendix 20. Freedom of Information 20Appendix 21. Performance and numbers of executive officers 20Appendix 22. Code of Conduct 20Appendix 23. Land Register & land disposal 20Appendix 24. Disability Plan 20Appendix 25. Response from statutory body to Auditor’s opinion 20Appendix 26. Other reporting issues as directed by Minister 20Appendix 27. Abbreviations 20Appendix 28. Compliance Index 22

FINANCIAL REPORTSAudited Financial Statements 23Independent Audit Report 37Certificate under Section 41C of the Public Finance and Audit Act 1983 39

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SUMMARY OF OPERATIONS

The Sydney Metropolitan Catchment Management Authority (SMCMA) provides a strategiccoordinating role for natural resource management (NRM)1 across its area. This has beenwelcomed by the community, local government and other agencies. In the 2004/05 FinancialYear, the SMCMA managed a variety of projects that delivered strong NRM outcomes.

The SMCMA is implementing its Investment Strategy which has been agreed upon by theState and Australian Governments. Projects in the Investment Strategy focus on conservingor enhancing the area’s natural resources through partnerships with communities, agencies,local government, aboriginal groups and industry. Most Investment Strategy projects areapplicable to the whole SMCMA area and are not therefore shown as individual sites on amap.

Projects that have been developed for the 2004/07 Investment Strategy were selected by theSMCMA from the two Sydney Catchment Management Blueprints2 and other regionalstrategies. These projects were identified as being of a high priority by the community andother stakeholders during the rigorous consultation process that was undertaken during thedevelopment of the blueprints.

The SMCMA is the Regional Organisation responsible for delivery of the AustralianGovernment’s Natural Heritage Trust (NHT) through components in its Investment Strategy.Accordingly, it managed the development and delivery of NHT projects at the Regional Leveland all associated consultation, project development, project partner liaison and reporting.

The following projects were undertaken in full or part during 2004/05.

Community Support ProgramWith over 3 million residents in the SMCMA area it is vital that the SMCMA engages thecommunity with all aspects of natural resource management to meet its catchment targets.This is being achieved with a team of four community support officers. In order to meet thediverse needs of the community, each officer has a specific role and target audience. Thetargeted areas for each officer are community groups, aboriginal communities, communitydevelopment and local government. Officers generally deliver programs and projects whichincrease the ability of the target audience to manage the natural environment that they ortheir organisation are responsible for. Such activities have included:• facilitation workshop for council staff and environmental educators (10 councils

represented);• sedge identification workshop for local government staff (9 councils represented);• workshop on using the media for community environmental issues;• workshop on on-line mapping and biodiversity resources (9 councils represented);• Caring for Country presentations (to aboriginal groups);• media skills training for environmental volunteer groups;• hosting of Volunteer Coordinators Network Meeting (15 councils, non-government

organisations (NGO) & agencies represented);• Wolli Creek stakeholders meeting for project development;• facilitation skills training for NGO staff and environmental educators;• Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act);• seminars to increase understanding of the EPBC Act (40 attendees from 10 councils);• “Koories caring for Ropes Creek” project initiation;• Mambara – quarterly newsletter;

1 Natural Resource Management is defined in the Natural Resources Commission Act 2003 (Part 1, Section 5).2 Sydney Harbour Catchment Blueprint, DLWC, February 2003; Southern Sydney Catchment Blueprint, DIPNR, July 2003

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• Caring for Country brochure;• Aboriginal Cultural Awareness Workshop;• Royal Easter Show Bushcare Stall – administration of 80 stall volunteers; and• Volunteer Coordinators Network Manual – coordination of publication.The above activities were funded by the NHT. Budget $478,600. Proponent is SMCMA.Start: October 2003; end: June 2006; status: in progress.

Sydney Metropolitan Vegetation Mapping - Stage 1This project produced a comprehensive vegetation community map of the SMCMA region,which is consistent with other vegetation community mapping projects in the SydneyBioregion. The map will provide a sound basis for improved planning and management ofremnant vegetation and will allow for the identification of buffer zones and corridors linkinghigh conservation value vegetation remnants. It will also provide a basis for the prioritisationof restoration of degraded areas. This is stage 1 of a 2 stage project. The second stageground truthing will be conducted as part of the 2004/07 Investment Strategy.Funded by the NHT. Budget $81,000. Proponent is DIPNR / SMCMA. Start: April 2004;end: June 2005; status: completed.

Reviewing & Restoring Fish Passage in Urbanised WaterwaysThis project identified the primary causes of loss of fish passage and therefore habitatconnectivity within the SMCMA area and offered solutions to the problems. The informationis being used to mobilise the relevant government authorities and the community torehabilitate strategically important areas that will maximise habitat connectivity and thereforebiodiversity values. The application of fish passage principles for future works will also beoutlined and encouraged. This project was coordinated by NSW Fisheries through apartnership between DPI, DIPNR and the SMCMA.Funded by the NHT. Budget $118,400. Proponent is DPI (NSW Fisheries). Start: February2004; end: April 2005; status: completed.

Sustainable Native Vegetation Management for Urban DevelopmentThis project is developing planning instruments for native vegetation management within theSMCMA area. Guidelines are being developed to assist in the assessment of, and availablemanagement options for, native vegetation on development sites. The project includes afocus on the management of riparian vegetation to address declining water quality andhabitat values within riverine environments.Funded by the NHT. Budget $105,700. Proponent is DIPNR / SMCMA. Start: February2004; end: (to be advised); status: outputs under review prior to finalisation.

Integrated Delivery of Environmental Education in the Sydney BasinThis project is establishing a framework and protocols to facilitate the integrated delivery ofenvironmental education in the SMCMA area, and is developing a regional environmentaleducation strategy. Local government is a major deliverer of environmental education andthis project aims to assist councils in working better with each other and other educationproviders. The Department of Environment and Conservation (DEC) are coordinating thisproject in partnership with the SMCMA.Funded by the NHT. Budget $146,800. Proponent is DEC (NP&WS). Start: June 2004;end: September 2005; status: in progress.

Green Web-Integrated Biodiversity Management for Local GovernmentAn integrated package of activities providing strategic direction for conserving and enhancingbiodiversity through local government planning in the SMCMA area. The project will deliver asuite of targeted outcomes for local councils including educational workshops, promotionalmaterial, model planning instruments, corridor mapping, and on-ground works preferentially

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using local provenance native plant stock. The Southern Sydney Regional Organisation ofCouncils (SSROC) is coordinating this project.Funded by the NHT. Budget $100,000. Proponent is SSROC. Start: October 2004; end:November 2005; status: in progress.

Integrated Weed ManagementA strategic approach to regional weed management which will assist in reducing the spreadof three of the most damaging noxious weeds in the SMCMA area (Alligator Weed, AsthmaWeed and Ludwigia). Two of these weeds are Weeds of National Significance. Educationaltools for community, industry, nurseries and local government are also included.Funded by the NHT. Budget $150,000. Proponent is SMCMA with sub contracts to DEC(NP&WS), Randwick Council and a private company. Start: June 2005; end: July 2006;status: in progress.

Urban Stream De-channelisationThis project will provide information to underpin a strategic approach to improve the habitatvalues of urban waterways by providing viable options to engineering solutions forstormwater management. This will assist to coordinate the most cost effective urban streamrehabilitation while achieving maximum ecological benefit. Demonstration sites of what canbe achieved with regards to dechannelisation will also be developed.Funded by the NHT. Budget $100,000. Proponent is DIPNR / SMCMA. Start: June 2005;end: May 2006; status: in progress.

From Tide to TableFrom Tide to Table will give the fishing industry a unique opportunity to partner withLandcare communities and others such as the SMCMA in undertaking natural waterwayrehabilitation works. The project will also educate the broader community about the linksbetween upstream habitat and healthy fish populations. Project funding will be used tosupport Landcare groups working in riparian areas adjacent to, or flowing directly into,estuaries in the Sydney Metropolitan catchments. The Landcare works will contribute to thesustainability of the in-shore, estuarine and oyster commercial fish populations by enhancingwater quality and creating habitat for fish breeding, feeding and shelter.Funded by the National Landcare Program (NLP). Budget $410,000. Proponent is OceanWatch. Start: April 2005; end: April 2006; status: in progress.

Grow Me InsteadThe project aims to facilitate the removal from propagation and sale of all known invasiveplant species still sold in nurseries and to proactively identify potential new invasives in orderto also prevent their production and sale. The project is being undertaken by the Nursery andGarden Industry Association NSW & ACT (NGINA).Funded by the NLP. Budget $72,520. Proponent is NGINA. Start: April 2004; end: April2005; status: in progress.

Regional NRM FacilitatorsTwo Regional NRM Facilitators have been employed to contribute to a range of outcomestargeted in the 2 Sydney Catchment Management Blueprints and the CAP. This includescommunicating Australian Government NRM policy and programs to regional stakeholders,provide feedback to governments on community and regional priorities and issues andimproving community engagement in the development, implementation and monitoring ofregional NRM plans. Funded by the NHT. Budget $428,400. Proponent is SMCMA. Start:October 2003; end: September 2006; status: in progress.

There is a significant state in-kind contribution to each of the above projects. Furtherinformation on these projects can be obtained by contacting the SMCMA.

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ROLE OF CATCHMENT MANAGEMENT AUTHORITIES

Catchment Management Authorities (CMA) were established to engage regionalcommunities in the key NRM issues facing their catchments. They are the primary vehicle forthe delivery of incentive programs funded by both the New South Wales and AustralianGovernments to achieve restoration and improvements in the natural resources of the State.

The specific functions of CMAs are described in Section 15 of the Catchment ManagementAuthorities Act 2003.

More broadly the general responsibilities of the CMAs across the State can be described as:• integration of existing catchment, water, native vegetation and other natural resource

management plans into a Catchment Action Plan (CAP) and to manage communityinvolvement in preparation of water sharing and groundwater plans;

• undertaking on-ground works (where relevant) and projects under Section 10 of the SoilConservation Act 1938;

• coordinating a range of community education functions including the provision ofadvice and support to stakeholders and community; Aboriginal consultation on CAPs andinvestment strategies; provision of community education and capacity building; andtechnical advice on vegetation;

• initiating relevant investment programs covering implementation of CAPs; developmentof investment strategies; and the native vegetation management fund; approved NationalAction Plan and Natural Heritage Trust programs; Section 10 programs (SoilConservation Act 1938); and delivery of incentives through Property Vegetation Plans(PVP) and other mechanisms;

• reviewing PVPs and vegetation consents.

ESTABLISHMENT OF CATCHMENT MANAGEMENT AUTHORITIESAND THE SYDNEY METROPOLITAN CATCHMENT MANAGEMENTAUTHORITY

The NSW Government established thirteen Catchment Management Authorities (CMA)across the state as part of broad NRM reforms. This new approach to NRM resulted fromrecommendations in October 2003 by the Native Vegetation Reform Implementation Group(NVRIG) chaired by the Right Honourable Ian Sinclair AC.

NVRIG was formed to identify the ways to improve the management of native vegetation inNSW. NVRIG considered the environmental, economic and social impact of current andprevious land management policies and regulations. It then recommended a comprehensivesuite of reforms to ensure a viable and sustainable State for current and future generations.The NSW Government received the NVRIG report and used the recommendations as abasis for sweeping Natural Resource Management reform in NSW.

The CMAs are established under the Catchment Management Authorities Act 2003, whichcame into force on 23 January 2004.

CMAs are statutory authorities, with responsible and accountable Boards that report directlyto the Minister for Natural Resources. Each CMA Board consists of a Chairperson and up tosix Board Members with all appointments being skill and merit based.

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While CMAs are a new initiative of the NSW Government to manage natural resources theybuild on work previously undertaken by the Catchment Management Boards (CMB) andRegional Vegetation Committees. They will also integrate the Catchment Blueprintsdeveloped by the CMBs and endorsed by the NSW and Australian Governments, into theirCatchment Action Plans (CAP).

Specifically, the SMCMA will not undertake the same native vegetation managementfunctions as other CMAs. This is because the Native Vegetation Act 2003 does not generallyapply in the Sydney Metropolitan area.

In the urban context, the SMCMA has an important coordinating role in remnant urbanvegetation management by identifying priority projects, working with local communities andpromoting consistent outcomes in the protection of such vegetation and control of weeds inthe region. The SMCMA also has a specific objective to improve and sustain the health ofurban streams, watercourses, harbours, lagoons, foreshores, estuaries and beaches.

The SMCMA, will, in addition to native vegetation, riparian and coastal managementfunctions, undertake activities and programs and facilitate their implementation, including:• setting priorities for natural resources projects through the CAP;• working collaboratively with local councils and others to ensure the CAP is integrated and

consistent with local and related plans and programs;• offering incentive funding and working in partnership with local councils and government

agencies to identify and implement joint projects;• funding and supporting projects that have regional significance and a broader community

benefit beyond one local government area, including community education programs.• taking a leadership role in coordinating the community, local government and agencies to

address priority issues; and• developing partnerships with local government, business and communities to implement

projects.

OPERATIONAL ENVIRONMENT OF THE SYDNEY METROPOLITANCATCHMENT MANAGEMENT AUTHORITY

The SMCMA area (also known as the Sydney Metropolitan NRM Region) covers 1840square kilometres and supports a population of over three million people. The area extendsfrom Narrabeen Lagoon in the north, through the Royal National Park to Stanwell Park in thesouth and west to include Blacktown and Campbelltown. The area encompasses 6 LocalAboriginal Land Council boundaries, Deerubbin, Gandangara, Illawarra, La Perouse,Metropolitan and Tharawal.

The SMCMA’s area covers the surface water catchments of Sydney Harbour, Botany Bay,the eastern beaches, most of the Sydney northern beaches as well Port Hacking. Thesecatchments include the Lane Cover River, Middle Harbour, Parramatta River, Duck River,Cooks River, Georges River, Alexandra Canal, Hacking and Woronora Rivers, Manly, DeeWhy, Curl Curl and Narrabeen Lagoons. All tributaries of the above are also included.

The area contains Australia’s most famous waterway, Sydney Harbour, three nationally listedthreatened ecological communities, a recently listed place of National Heritage, Australia’soldest national park and nationally and internationally significant wetlands. The area has a

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variety of landscapes including bushland, foreshores, waterways, coastal cliffs and sanddunes. There are moderately and densely developed urban areas, industrial and commercialestates, recreational facilities, market gardens, transport infrastructure and associatedtransport corridors. A full range of major industries are represented and include tourism,finance, property, general business, extractive and manufacturing. Remnant diverse nativevegetation is generally restricted to national parks, reserves and riparian areas.

Local government, NSW agencies and the Australian Government are key investors in NRM,with local government being the largest land manager and investor. Partnerships and co-ordination with these groups as well as the community is the key to improved management ofnatural resources in the Sydney Basin. This approach is fundamental to the operations of theSMCMA. Additionally, coordination and partnerships with the area’s 6 Local Aboriginal LandCouncils is also critical as they have significant land holdings in the SMCMA area. TheAustralian Government is a significant investing partner in the area through the NaturalHeritage Trust and National Landcare Program.

MANAGEMENT STRUCTURE

BackgroundA Central CMA Establishment Team (CET) was established at state level to contributevalued experience, knowledge and counsel to the establishment of each CMA. The CETwas involved with each of the individual CMA Local Establishment Teams (LET) to:• support the LETs in engaging the community and local government with the

establishment of a CMA,• analyse, negotiate and develop solutions to issues that may be encountered during the

establishment of the CMAs, and• provide advice to the Minister for Natural Resources on the progress of CMA

establishment.

A Local Establishment Team was appointed to each CMA area during the transitional periodfollowing the enactment of the Catchment Management Authorities Act 2003. The LETswere formed to:• lay the foundation for the CMAs to become operational,• undertake consultation with key stakeholders and the catchment community,• solve problems associated with the establishment of the CMAs,• continue the coordination and management of approved on-ground program, and• commence preparation of CAPs and investment strategies.

A Coordinator directed the LETs, until the appointment of the CMA Chairperson. The LETmembers then continued to support the CMA Chairperson until CMA Board members wereappointed.

Sydney Metropolitan CMAThe SMCMA LET officially expired as an interim Board on 31 August 2004 by virtue ofClause 4 of the Catchment Management Authorities (Savings and Transitional) Regulation2004. An interim Board for the Sydney Metropolitan Catchment Management Authority wasthereafter created under Section 8 of the Catchment Management Authorities Act 2003.Members of the SMCMA LET generally were re-appointed as the interim Board in recognitionthat there would be an official selection/recruitment process for the Board in due course.

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The SMCMA’s corporate support services (including financial management, humanresources, accommodation, legal services, information technology and fleet management) isprovided by the Department of Infrastructure, Planning and Natural Resources (DIPNR)under service level agreements. Staff undertaking an administrative and/or technical rolewith the SMCMA were employed by DIPNR or external placement organisations for all of2004/05 but it is anticipated that the SMCMA will be employing its own administrative andtechnical support staff during 2005/06.

SMCMA Board Meetings are generally held monthly. It is expected that significantcommittees for operational, strategic and other managerial matters will be established afterformalisation of the Board and staff placement in the 2005/06 Financial Year. Likewise, stafffunctional responsibilities and structures will be determined after the appointment of theGeneral Manager.

The qualifications, attendance and committees of the LET and interim Board Members forthe SMCMA are listed below.

Bob Junor• LET Coordinator (01/07/2004 to 31/08/04)• Interim Board Chairman (01/09/04 to 30/06/2005)• Attended 8/9 meetingsBob Junor has worked in natural resource management for 46 years. His career developed in theNSW Soil Conservation Service where he worked throughout the State. He was the Commissioner ofSoil Conservation (NSW) 1987-1992 and President of the International Soil Conservation Organisation1989-1992. Since 1992 he has consulted to government and the private sector on numerous audits,reviews and plans. He has served as a member of the Board of the NSW Environment ProtectionAuthority since 1992. He was Chairman of Greening Australia (NSW) 1992-1997, Chairman of theCommunity Consultative Committee of the Murray-Darling Basin Commission 1992-1995 and industryrepresentative on the NSW Coastal Council 1992-1999. Since February 2003 he has been theChairman of the Upper Parramatta River Catchment Trust. He has played a leading role since late2003 in establishing Catchment Management Authorities throughout NSW and, in particular, haschaired the Local Establishment Team for the proposed Sydney Metropolitan CMA.

Genia McCaffery• LET Member (01/07/2004 to 31/08/2004)• Interim Board Member (01/09/2004 to 30/06/2005)• Attended 7/9 meetingsGenia McCaffery’s 30 year career has spanned research, youth assistance and unemploymentschemes, media management for community action groups and as a North Sydney Councillor. Shehas continued to focus her career on serving her community and was elected to North Sydney Councilas Mayor in 1995. She was re-elected as Mayor in 1999 for a further four-year term. She has been amember of the Local Government Executive since 1998 and has served as a member of the LocalGovernment Environmental and Planning Committee, Deputy Chair of Resource NSW and the SydneyHarbour Catchment Management Board. In October 2004 she was elected President of the LocalGovernment & Shires Association for a 2 year term. She is committed to protecting the environmentand to maintaining strong community involvement in local government.Committees: She is a member of the Local Government Executive and the Local GovernmentEnvironmental and Planning Committee. She is also a member of the Board of the EnvironmentalTrust, the Natural Resources Advisory Council and the National Parks and Wildlife Advisory Council.

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Lewis Solberg• LET Member (01/07/2004 to 31/08/2004)• Interim Board Member (01/09/2004 to 30/06/2005)• Attended 8/9 meetingsLewis Solberg has a deep practical approach to addressing natural resources. He was born inBaradine NSW in 1938 and came to Sydney at the age of 4 years. He initially lived in Erskineville thenmoved to Redfern. He attended Cleveland Street School, used to fish at Watsons Bay, sells paperson trams and worked for Bullen Brothers Circus. He delivered ice to tenants in his street. At age 12,he moved to Hargrave Park (now Warwick Farm) and recalls swimming in Cabramatta Creek. At 15,he lived in South Strathfield and used to swim in the Cooks River at Enfield. His grandparents lived onthe banks of the Georges River at East Hills where he spent weekends there fishing and prawning forthe last 63 years. He maintains strong affiliations with Sydney Harbour and Cabramatta Creek.

He has spent many years pursuing knowledge of his heritage. He was introduced to the GandangaraAboriginal Land Council and later proved his Aboriginality. Today he is encouraging everyone toprotect our land and water. He says “land is everything to us, anyone born in Australia are mybrothers and sisters, you are all part of this land”. He was a member of the Southern SydneyCatchment Management Board for it’s duration.

Bruce Thom• LET Member (01/07/2004 to 31/08/2004)• Interim Board Member (01/09/2004 to 30/06/2005)• Attended 7/9 meetingsBruce Thom was Vice-Chancellor of the University of New England (1994-1996). He has heldpositions such as Foundation Professor of Geography, Royal Military College, Duntroon (University ofNew South Wales, 1977-1984), Professor of Geography University of Sydney (1985-1993), and Pro-Vice-Chancellor Research, University of Sydney (1990-1993). He holds the title of Emeritus Professorfrom University of Sydney. He served as Chair of the Australian State of Environment Committee1998-2002, and as Chair of the Coastal Council of New South Wales (1999-2004). He is VisitingProfessor in the Faculty of Built Environment at the University of NSW and he is also a member of theWentworth Group of Concerned Scientists responsible for publishing the “Blueprint for a LivingContinent”.

Richard McLaughlin• LET Member (01/07/2004 to 31/08/2004)• Interim Board Member (01/09/2004 to 30/06/2005)• Attended 8/9 meetingsRichard McLaughlin has had a lifelong interest and connection with his local community. Resultingfrom his interest in the community he became a participant of his local Neighbourhood Watch Group.Subsequently he followed up this interest and commitment to the community by pursuing a localgovernment career. He was elected to Bankstown Council in 1995 and re-elected in 1999 and 2004.His council ward area, bounded by Georges River and Salt Pan Creek, fostered his interest in water-focussed Council and interagency committees. He was Chair of the former Georges RiverRiverkeeper Program for two years, Chair of the Little Salt Pan Creek Estuary ManagementCommittee and a member of the Southern Sydney Catchment Management Board.Committees: He is Chair of: the Georges River Floodplain Management Committee; Chipping NortonLakes Management Committee; Georges River Combined Councils Committee; and Director(Bankstown Council) of the Western Sydney Regional Organisation of Councils. He is also Chair ofthe following Bankstown City Council Committees: Waste Collection and Disposal Advisory TaskForce; Public Transport Advisory Committee; Bicycle Road Users Advisory Community Forum; andCrest Sports Users Advisory Committee and the Heritage Committee). He is Deputy Chair of theCouncil’s Community Safety Committee and a Council representative on a further 10 committeesincluding the Council Disaster Plan Review Committee, Drug Action Team Committee, the Aboriginaland Torres Straights Advisory Committee and the Youth Advisory Committee. He is Patron of theBankstown City Choir.

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Phillip Sansom• LET Member (01/07/2004 to 31/08/2004)• Interim Board Member (01/09/2004 to 30/06/2005)• Attended 9/9 meetingsPhilip Sansom has been a Hurstville City Councillor since 1991, was Mayor from 1999 to 2000 and iscurrently Deputy Mayor. He chairs the Planning and Environment and Master Plan ImplementationCommittee of Hurstville City Council. He is a member of the Southern Sydney Regional Organisationof Councils, the Georges River Combined Councils Committee, the National Parks and WildlifeService Sydney South Region Advisory Committee and previously served on the Georges RiverRegional Environment Plan Section 22 Committee and the Botany Bay Strategy Advisory Committeein 2003.He was a member of the Policy and Planning Subcommittee of the State Catchment ManagementCoordinating Committee which provided advice to the government on natural resource environmentalmanagement and planning issues. He was also Chair of the Southern Sydney CatchmentManagement Board from 2001 to 2003.Committees: He represents Council on the Southern Sydney Regional Organisation of Councils andthe Georges River Combined Councils Committee and is a member of the National Parks and WildlifeService Sydney South Region Advisory Committee

Patricia Harvey• LET Member (01/07/2004 to 31/08/04)• Attended 2/3 meetingsPatricia Harvey grew up in the rural Riverina area. She moved to Mosman, Sydney and has livedthere with her husband for over 40 years. She was elected a Mosman Councillor in 1983 and becameDeputy Mayor in 1987-1993 and again in 1994-1995. She was the first woman to be elected Mayor ofMosman in 1993/94. With a background in biological sciences she has spent 21 years representingher local community’s concerns about beach and water pollution, Sydney’s sewerage system andcommunity service. She has served as a member of the Coastal Council of NSW, the Sydney CoastalCouncils Group and the Beachwatch Committee. She has also served as the elected independentmember of the Executive of the Local Government Association (1996-2000) and the Chair of theSydney Harbour Catchment Management Board. She is a prominent lobbyist and is committed tofurthering the community-government partnership in natural resource management.

SMCMA CONTACT INFORMATION

Office: Ground Floor, Macquarie Tower, 10 Valentine Ave, Parramatta, NSW 2150Mail: Sydney Metropolitan CMA, PO Box 3720, Parramatta, NSW 2124Phone: 02 9895 7898Fax: 02 9895 7330Internet: http://www.cma.nsw.gov.auHours: 09:00 – 16:30 Monday to Friday

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PROGRESS IN ACHIEVING RESULTS IN THE CATCHMENT ACTIONPLAN AND ANNUAL IMPLEMENTATION PROGRAM

The Catchment Action Plan and Annual Implementation Program had not been approved by30 June 2005 and are therefore not reported upon.

PROGRESS IN ACHIEVING COMPLIANCE WITH STATE-WIDENATURAL RESOURCE MANAGEMENT STANDARDS AND TARGETS

Compliance with State-wide natural resource management standards and targets is notreported upon because such standards and targets were not available during the year.

UPDATE ON CATCHMENT MANAGEMENT STRATEGIES

The SMCMA developed, provided input, and initiated with external providers, the followingcatchment scale strategies:

Strategies under development or finalised by the SMCMA• SMCMA 2004/07 Investment Strategy (NHT)• SMCMA Catchment Action Plan• SMCMA Annual Implementation Program• SMCMA Community Support Strategy• Native Vegetation Management Guidelines

Major strategies to which the SMCMA provided input & comment• Botany Bay Strategy• Sydney Harbour Regional Environmental Plan• Sydney Metropolitan Strategy (known as the “Metro Strategy”)• Sydney Metropolitan Water Plan

Strategies initiated by the SMCMA and developed / implemented by externalentities• Integrated weed management strategy

SUMMARY OF FUNDS GRANTED TO NON-GOVERNMENTCOMMUNITY ORGANISATIONS

No SMCMA Recurrent funds were granted during the year. Funding for all projects managedexternal to the SMCMA was originally received from external sources – such as, for example,the Australian Government’s NHT Program.

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SUMMARY OF FUNDS GRANTED TO EXTERNAL AGENCIES

No SMCMA recurrent funds were granted to external agencies during the year. Funding forall projects managed external to the SMCMA was originally received from external sources –such as, for example, the Australian Government’s NHT Program.

MANAGEMENT TARGETS

Until the SMCMA’s CAP is finalised, the Catchment Targets, Management Targets andManagement Actions in the Sydney Harbour and Southern Sydney Catchment ManagementBlueprints are applicable and guide the SMCMA’s operations.

ON-GROUND WORKS UNDERTAKEN TO ACHIEVE CATCHMENTMANAGEMENT TARGETS

The SMCMA has made significant progress in coordinating the actions of the various naturalresource managers in its area of operation. The SMCMA is working to enable communitygroups, councils, non government organisations and agencies to achieve outcomesconsistent with the Sydney Harbour and Southern Sydney Catchment ManagementBlueprints.

The SMCMA CAP is expected to, when approved, guide the delivery of outputs and theoutcomes so derived. Reporting on such outcomes will be based on provisions in the CAP.The requirement that the SMCMA deliver at least 80% of investment funding to on-groundNRM activities includes the actions of other NRM managers that it has collaborated with.

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APPENDICES

1. RESEARCH AND DEVELOPMENT

Nil

2. STAFF STATISTICS

No staff were employed by the SMCMA as at 30 June 2005:

The SMCMA is principally supported by the DIPNR Sydney Landscape Unit. Other DIPNRunits provide support through service level agreements (e.g. Human Resources andInformation Technology). It is anticipated that the SMCMA will employ staff after recruitmentof the General Manager in 2005/06.

3. NSW GOVERNMENT ACTION PLAN FOR WOMEN

The NSW Government is committed to a whole of government approach to the principles ofequity, access, rights and participation for women. The government continues to build onachievements to remove obstacles to women’s full participation in society. This recognisesthat in some areas of social, political and economic life, women have different experiencesand needs than men. The NSW Government Action Plan provides a mechanism forleadership and management of coordinated strategies across government agencies.

The SMCMA is committed to the aims and objectives of the NSW Government Action Planfor Women.

The SMCMA had no staff as at 30 June 2005. Statistics on gender equity are provided byDIPNR, the employer of most of the SMCMA’s technical and support staff.

As at 30 June 2005, the SMCMA interim Board of Management was composed of 5 men and1 woman.

4. CONSULTANTS ENGAGED

No expenditure was incurred by the SMCMA on consultants during the financial year.

5. EQUAL EMPLOYMENT OPPORTUNITY

As DIPNR was the host employer for the SMCMA during the year, DIPNR’s personnelpolicies and practices extended in coverage to all staff in the SMCMA. These policies andpractices included:

• Industrial relations• Equal Employment Opportunity• Disability Plans• Ethnic Affairs Priorities Statements• Occupational Health and Safety.

DIPNR’s EEO statistics have embedded data for staff supporting the SMCMA.

16

6. COST OF PRODUCTION AND AVAILABILITY OF ANNUAL REPORT

The only external costs incurred in the production of this Annual Report were for printing. Inorder to minimise paper usage, limited copies have been made available at the SMCMAoffice and additional copies of this report are made available on request.

This report is also available in non-printed forms including via e-mail and from the Internet(www.cma.nsw.gov.au) in PDF form.

7. PROMOTION

“E-news”. Through the Community Support Program, the SMCMA produces a regular emailnewsletter which summarises SMCMA issues and activities. This is sent by e-mail to a largeaudience and generally comprises local government, environment groups, interestedindividuals and some businesses. Additions or deletions to the distribution list occur onrequest to the SMCMA.

“Mambara”. A quarterly bulletin “Mambara” is produced as a component of the SMCMA’sCommunity Support Program. This focuses on general community environmental issues andadvises upcoming events and activities. Additions or deletions to the distribution list occur onrequest to the SMCMA.

“Caring for Country” Brochure. The brochure is a culturally appropriate method forpromoting natural resource management amongst the indigenous community.

“Sydney’s Hands-On Environmental Forum” November 2004. Proceedings on CD-ROM.

8. CONSUMER RESPONSE

The SMCMA has maintained a proactive approach to handling public enquiries. It hasestablished a readily accessible Ground Floor “shop front” office in Macquarie Tower,Parramatta. This has enhanced public access to the office and improved the disseminationof catchment management information.

9. LEGISLATION & LEGAL CHANGE

In carrying out its role, the SMCMA principally operated under the Catchment ManagementAuthorities Act 2003 No 104. The SMCMA also operated under other legislation which iscommon to all NSW Statutory bodies and in particular:• Annual Reports Act (Statutory Bodies) 1984 No 87• Annual Reports (Statutory Bodies) Regulation 2005• Native Vegetation Act 2003 No 103• Native Vegetation Conservation Act 1997 No 133• Natural Resources Commission Act 2003 No 102• Public Finance and Audit Act 1983 No 152• Public Finance and Audit Regulation 2000• Public Sector Employment and Management Act 2002 No 43• Soil Conservation Act 1938 No 10• Water Management Act 2000 No 92

The Water Management Act 2000 was amended with regards to Water Sharing Plans.

17

10. SUMMARY OF ACCOUNTS PAYABLE

Quarterly Schedule of Accounts Payable - Aged analysis at the end of each quarterQUARTER Current

(within duedate)

$

Less than30 daysoverdue

$

Between 30and 60 days

overdue$

Between 60and 90 days

overdue$

More than90 daysoverdue

$September 0 0 0 0 0December 0 1,388 0 0 0

March 0 14,300 0 0 0June 13,777 157,955 0 0 0

Accounts paid on time within each quarterTotal Accounts Paid On TimeQUARTER

Target % Actual % $Total Amount Paid

$September 90 100 9,131 9,131December 90 100 18,341 18,341

March 90 97 707,328 707,404June 90 91 527,619 593,934

Note:• Percentage of accounts paid on time is based on SAP Payment Analysis Report, which

compares vendor masterfile payment terms, invoice document date and paymentdocument date to determine if payment was made on time, and if not how many days itwas late. The dollar value is the actual dollar value of the documents in each column (iepaid on time, not paid on time), so the percentage is based on documents, not dollarvalue.

• Incremental improvement for future financial years is possible with continued monitoringto ensure correct vendor payment terms are applied, as well as improved compliancewith the tax system by vendors, and improved compliance with the tax system andTreasurer’s Directions by Departmental staff.

• The Team Leader, Accounts Payable, holds all working papers for both tables.

Reasons for late payments• During 2004/05 the Authority used the Financial Services division of the Department of

Infrastructure, Planning and Natural Resources (DIPNR) for payment of accounts.• Late payment of accounts, particularly in the March and June quarters, can generally be

attributed to work volumes experienced by DIPNR during peak periods.• A number of late payments however resulted from deficient or non-compliant invoices

received from suppliers. The need to acquire additional information or adjusted invoicesfrom suppliers in most cases results in payments being made outside the vendorpayment terms. Additionally there are instances where DIPNR is required to seekadditional information from the Authority to ensure compliance with the Public Financeand Audit Act. On average, approximately 3.5% of all invoice payments fall into one orthe other of the above categories.

Initiatives to improve payment performance• Tightened controls to ensure correct data entry of payment terms and invoice dates in

SAP.• Prioritise CMA vouchers as they are received in Finance Division so a turn around time of

5 working days is achieved.

18

• Use of extra resources, including temporary assistance and overtime, to ensure smoothworkflow during peak periods.

Penalty Interest Paid• There was no penalty interest paid during the Financial Year 2004/05.

11. BUDGET FORECAST 2005-06

BUDGET ITEM $’000Total Salaries Recurrent Staff 1,074.7Total Salaries Chairs 61.0Total Stipends Board Members 134.3TOTAL SALARIES 1,270.0

Accommodation Facilities 180.7

Advertising 25.0Books / publications 2.0Cyclical Building Maintenance 25.0Board expenses 40.0Computer related costs 22.0Consultant Fees 10.0Contract employees 12.0Courier / freight 3.0Entertainment 7.5Fees 20.0Insurance 8.7Legal expenses 12.0Materials 2.8Minor office equipment 10.0Motor vehicles 40.0Printing 30.0Stores and stationary 8.8Telephones – mobile expenses 3.8Training 15.4Travel 23.0Other general recurrent expenses 22.1

OTHER OPERATING 343.0

TOTAL OPERATING 523.7

TOTAL SALARY AND OPERATING 1,793.7

19

12. RISK MANAGEMENT

Effective risk management is a core management requirement. Risk management isconsidered at all levels of SMCMA operations in the normal course of all activities.

DIPNR provided cover to the SMCMA during the reporting period. This involved SMCMAparticipation in the NSW Treasury Managed Funds self-insurance scheme that providedworkers compensation, legal liability, motor vehicles, property and miscellaneous cover. Oneof the conditions of this insurance coverage was a requirement to place a high priority on theimplementation of sound risk management practices.

An external risk management auditor has been commissioned to conduct a review of CMAactivities in 2005/06.

13. OCCUPATIONAL HEALTH AND SAFETY

This is reported by DIPNR since their staff supported the SMCMA throughout the year.

14. WASTE

SMCMA has adopted the whole of Government/DIPNR policy on waste. The administrativeand technical support staff for the SMCMA reside in the building housing the DIPNRParramatta office and participated in all waste minimisation and recycling initiatives. TheSMCMA benefited from this in savings gained from bulk purchase of stores, commonrecycling programs for used paper and other recyclable materials.

15. DISCLOSURE OF CONTROLLED ENTITIES

Not applicable.

16. INVESTMENT MANAGEMENT PERFORMANCE

Included in Financial Statements.

17. PRIVACY

During the year, no requests for access to documents, no applications for an internal reviewand no complaints under the Privacy and Personal Information Protection Act 1998 werereceived. As required under the Act, DIPNR has a Privacy Management Plan governing thecollection, retention, accuracy, use and disclosure of personal information, including rights ofaccess and correction.

18. CREDIT CARD CERTIFICATION

There were no official credit cards issued to Board Members of the SMCMA or to supportingstaff during the year.

20

19. GOVERNMENT ENERGY MANAGEMENT PERFORMANCE

Since DIPNR staff supported all operations of the SMCMA during the year, energymanagement performance information is reported by DIPNR. Energy savings gained byindividual units in Macquarie Tower, Parramatta (where the SMCMA Office is located) arereflected in bulk savings for all building tenants.

20. FREEDOM OF INFORMATION

No Freedom of Information applications were received during the year. This is consistentwith the previous year.

21. PERFORMANCE AND NUMBERS OF EXECUTIVE OFFICERS

As at 30 June 2005, no person was employed by the SMCMA as an “executive officer” asdefined in the Annual Reports (Statutory Bodies) Regulation 2005. All administrative andtechnical support staff were employed by DIPNR. It is expected that there will be SMCMAstaff recruitment during the 2005/06 Financial Year.

22. CODE OF CONDUCT

The staff that provide administrative and technical support to SMCMA for 2004/05 wereemployed by DIPNR, and, as such, subscribe to the DIPNR Code of Conduct.

23. LAND REGISTER & LAND DISPOSAL

The SMCMA did not own or occupy any land nor did it dispose of any land during the year.

24. DISABILITY PLAN

The SMCMA support staff were employed by DIPNR throughout the year. As such, theyoperated under the provisions of the DIPNR Disability Plan.

25. RESPONSE FROM STATUTORY BODY TO AUDITOR’S OPINION

It is understood that DIPNR is acting to remedy the issue concerning financing facilities beinglower than the actual bank facility limit. Additionally, the SMCMA is working with DIPNR toconsolidate service level agreements that cover corporate services activities.

26. OTHER REPORTING ISSUES AS DIRECTED BY MINISTER

The SMCMA was not aware of any additional reporting issues as required by the Minister.

21

27. ABBREVIATIONS

CAP Catchment Action PlanCD-ROM Compact Disk Read Only MemoryCET Central Establishment TeamCMA Catchment Management AuthorityCMB Catchment Management BoardDEC Department of Environment and ConservationDIPNR Department of Infrastructure, Planning and Natural ResourcesDPI Department of Primary IndustriesEEO Equal Employment OpportunityEPBC Act Environment Protection and Biodiversity Conservation Act 1999IS Investment StrategyLET Local Establishment TeamNAP National Action PlanNGO non-government organisationNHT Natural Heritage TrustNLP National Landcare ProgramNP&WS National Parks & Wildlife ServiceNRM natural resource managementNSW New South WalesNVRIG Native Vegetation Reform Implementation GroupPDF Portable Document Format (a software product by Adobe)PVP Property Vegetation PlanSMCMA Sydney Metropolitan Catchment Management AuthoritySSROC Southern Sydney Regional Organisation of Councils

(continued over)

22

28. COMPLIANCE INDEX

ISSUE PAGE

Letter of submission 2

Application for extension of time n/a

Charter 7

Aims & objectives 7

Access 12

Management & structure 9

Summary review of operations 4

Funds granted to NG community organisations 13

Legal change 16

Economic or other factors 15

Management & activities 4

Research & development 15

Human resources 15

Consultants 15

Equal Employment Opportunity 15

Disability plans 20

Land disposal 20

Promotion 16

Consumer Response 16

Guarantee of Service n/a

Payment of Accounts 17

Time for Payment of Accounts 17

Risk management & insurance activities 19

Disclosure of Controlled Entities n/a

Ethnic affairs priorities statements and any agreement 15

NSW Government Action Plan for Women 15

Occupational Health and Safety 15

Waste 19

Budgets 18

Financial Statements 25

Identification of audited financial statements 25, 37

Inclusion of unaudited financial statements 24, 36

Additional matters for inclusion in annual reports 1, 16

Investment performance 36

Liability management performance 35

Exemptions n/a

Performance and numbers of executive officers 20

Freedom of Information Act 20

Implementation of Price Determination n/a

Privacy Management Plan 19

Departures from Subordinate Legislation Act n/a

Government Energy management policy 19

Electronic service delivery n/a

Credit card certification 19

Form of annual reports generally (yes)

Submission of annual report to appropriate minister (yes)

Presentation of annual report to Parliament (yes)

Public Availability of annual reports (yes)

Annual report size - presentation to Parliament (yes)

Production costs and production 1

23

FINANCIAL REPORTS

• Audited Financial Statements for the Financial Year ended 30 June 2005.

• Independent Audit Report on the SMCMA to Members of the New South Wales Parliament.

• Certificate under Section 41C (1B) and (1C) of the Public Finance and Audit Act 1983.

24

Audited Financial Statements commence on page 25

25

SYDNEY METROPOLITAN CATCHMENT MANAGEMENT AUTHORITY

STATEMENT OF FINANCIAL PERFORMANCEFOR THE FINANCIAL YEAR ENDED 30 JUNE 2005

Financial PeriodYear ended 23 Jan 2004 to

30 June 2005 30 June 2004Note $’000 $’000

Revenues from ordinary activities 4 3,325 631

Administration Expenses (421) (49)Grants & Subsidies (2) -Other expenses (1,430) (171)Expenses from ordinary activities 3 (1,853) (220)

Surplus from ordinary activities 1,472 411

Total revenues, expenses and valuationadjustments recognised directly in equity

- -

Total changes in equity other than thoseresulting from transactions with owners asowners

1,472 411

The accompanying notes form part of these financial statements.

26

SYDNEY METROPOLITAN CATCHMENT MANAGEMENT AUTHORITY

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2005

2005 2004

Note$’000 $’000

Current Assets Cash assets 5 2,316 499 Receivables 6 37 82

Total Current Assets 2,353 581

Non Current Assets Property, Plant and equipment 8 39 -

Total Non Current Assets 39 -

Total Assets 2,392 581

Current Liabilities Payables 7 509 170

Total Current Liabilities 509 170

Total Liabilities 509 170

Net Assets 1,883 411

Equity Retained surplus 9 1,883 411

The accompanying notes form part of these financial statements.

27

SYDNEY METROPOLITAN CATCHMENT MANAGEMENT AUTHORITYSTATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDING 30 JUNE 2005

Financial PeriodYear

ended23 Jan2004 to

30 June2005

30 June2004

Note $’000 $’000Cash Flows From Operating ActivitiesGovernment contribution received 3,317 549Interest Received 80 -Other Receipts 6 -Payment to Suppliers and Employees (1,548) (50)

Net cash inflows provided by operating activities10 1,855 499

Cash Flows From Investing Activities

Purchase of Land and Buildings, Plant and Equipment (38) -

Net cash inflow from/(used in) investing activities (38) -

Net increase in cash held 1,817 499Cash at the beginning of the financial period 499 -

Cash at the end of the financial year 5 2,316 499

The accompanying notes form part of these financial statements

28

SYDNEY METROPOLITAN CATCHMENT MANAGEMENT AUTHORITYNotes to and forming part of the financial statements for the year ended 30 June 2005

1. REPORTING ENTITY

The Sydney Metropolitan Catchment Management Authority (the “Authority”) was establishedpursuant to the Catchment Management Authorities Act 2003 on 23 January 2004. This Actprovided for the establishment of 13 Catchment Management Authorities across NSW aspart of the NSW Government’s broad ranging reform of natural resource management.

The financial report is for the financial year ended 30 June 2005 with comparative figuresdisclosed for the period 23 January 2004 to 30 June 2004.

Pursuant to clause 4(1) of the Catchment Management Authorities (Savings andTransitional) Regulation the Sydney Metropolitan Catchment Management Authority LocalEstablishment Team was appointed by the Minister as the Board of the Sydney MetropolitanCatchment Management Authority until the Minister appointed the Board in accordance withsection 8 of the Catchment Management Authorities Act 2003.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of accounting

The Authority's financial report is a general purpose financial report, which has beenprepared on an accrual basis and in accordance with:• applicable Australian Accounting Standards;• other authoritative pronouncements of the Australian Accounting Standards Board

(AASB);• Urgent Issues Group (UIG) Consensus Views; and• the requirements of the Public Finance and Audit Act and Regulations.

Where there are inconsistencies between the above requirements, the legislative provisionshave prevailed.

In the absence of a specific Accounting Standard, other authoritative pronouncement of theAASB or UIG Consensus View, the hierarchy of other pronouncements as outlined in AAS 6"Accounting Policies" is considered.

The financial statements are prepared in accordance with the historical cost convention. Allamounts are rounded to the nearest one thousand dollars and are expressed in Australiancurrency.

(b) Revenue recognition

Revenue is recognised when the Authority has control of the good or right to receive, it isprobable that the economic benefits will flow to the Authority and the amount of revenue canbe measured reliably.

Contributions from State and Commonwealth Governments – These are grantsand contributions from the NSW and Commonwealth Governments for catchmentmanagement activities generally within the catchment boundary. Revenue isrecognised when the Authority has a right to receive the funds, or upon receipt offunds, whichever occurs first.Investment income - Interest revenue is recognised as it accrues.

29


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(c) Tax status

The Authority is liable for fringe benefits tax, payroll tax and Goods and Services Tax (GST).All other activities are exempt from taxation. The Authority is a member of a GST Group withother Catchment Management Authorities, the Department of Infrastructure, Planning andNatural Resources (DIPNR) and with certain other entities to whom DIPNR providesaccounting support. To the extent that there are transactions between members of the GSTGroup, they are not subject to GST.

(d) Accounting for goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except:• The amount of GST incurred by the Authority as a purchaser that is not recoverable from

the Australian Taxation Office is recognised as part of the cost of acquisition of an assetor part of an item of expense.

• Receivables and payables that include GST are stated with the amount of GST included.The State Government funding is considered an appropriation and is therefore outsidethe scope of GST.

(e) Employee Benefits and other provisions

(i) Salaries and Wages, Annual Leave, Sick Leave and Oncosts

Liabilities for salaries and wages (including non-monetary benefits) and annual leaveare recognised and measured in respect of employees’ services up to the reportingdate at nominal amounts based on the amounts expected to be paid when theliabilities are settled. Unused non-vesting sick leave does not give rise to a liability asit is not considered probable that sick leave taken in the future will be greater than thebenefits accrued in the future.The outstanding amounts of payroll tax, workers’ compensation insurance premiumsand fringe benefits tax, which are consequential to employment, are recognised asliabilities and expenses where the employee benefits to which they relate have beenrecognised.

(ii) Long Service Leave and SuperannuationThe Authority’s liabilities for long service leave and superannuation are assumed bythe Crown Entity.Long service leave is measured at present value, based on the application of factorsprescribed by Treasury Circular 03/08, to the amounts calculated using the actualremuneration rates for all employees with five or more years of service.Superannuation expense for the financial year is determined by using the formulaespecified in the Treasurer’s Directions. The expense for certain superannuationschemes (ie Basic Benefit and First State Super) is calculated as a percentage of theemployees’ salary. For other superannuation schemes (ie State SuperannuationScheme and State Authorities Superannuation Scheme), the expense is calculated asa multiple of the employees’ superannuation contributions.

30


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(iii) Other ProvisionsOther provisions exist when the entity has a present legal, equitable or constructiveobligation to make a future sacrifice of economic benefits to other entities as a resultof past transactions or other past events. These provisions are recognised when it isprobable that a future sacrifice of economic benefits will be required and the amountcan be measured reliably.

(f). Impact of Adopting Australian Equivalents to IFRSThe Authority will apply the Australian equivalents to International Financial ReportingStandards (AEIFRS) from 1 July 2005.

The Authority’s accounting functions are carried out by the Department of InfrastructurePlanning and Natural Resources (DIPNR). Therefore steps taken to manage the transition byDIPNR is applicable to the authority. A special project team was established by DIPNR,which reported to their Chief Finance Officer on progress against the plan. DIPNR’s InternalAudit Committee also provided input to the process. To manage the transition theDepartment allocated internal resources and engaged PricewaterhouseCoopers consultantsto analyse and identify key areas regarding policies, procedures, systems and financialimpacts affected by the transition.

The Authority has determined the key areas where changes in accounting policies are likelyto impact the financial report. Some of these impacts arise because AEIFRS requirementsare different from existing AASB requirements (AGAAP). Other impacts are likely to arisefrom options in AEIFRS. To ensure consistency at the whole of government level, NSWTreasury has advised agencies of options it is likely to mandate for the NSW Public Sector.The impacts disclosed below reflect Treasury’s likely mandates (referred to as “indicativemandates”).

Shown below are management’s best estimates as at the date of preparing the 30 June 2005financial report of the estimated financial impacts of AEIFRS on the Authoritie’s equity andresult for the year. The Authority does not anticipate any material impacts on its cash flows.The actual effects of the transition may differ from the estimated figures below because ofpending changes to the AEIFRS, including the UIG Interpretations and / or emergingaccepted practice in their interpretation and application. The Authority’s accounting policiesmay also be affected by a proposed standard to harmonise accounting standards withGovernment Finance Statistics (GFS). However, the impact is uncertain because it dependson when this standard is finalised and whether it can be adopted in the financial year ended30 June 2006.

31


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)(f). Impact of Adopting Australian Equivalents to IFRS (continued)

Reconciliation of key aggregates

Reconciliation of equity under existing Standards (AGAAP) to equity under AEIFRS:

Notes 30 JUNE 1 JULY2005 2004

$000 ** $000 *Total equity under AGAAP 1,883 411Effect of discounting long-term annual leave i -Total equity under AEIFRS 1,883 411* = adjustments as at the date of transition**= cumulative adjustments as at date of transition plusthe year ended 30 June 2005

Reconciliation of surplus / (deficit) under AGAAP to surplus / (deficit) under AEIFRS:

Year ended 30 June 2005Notes $000

Surplus / (deficit) under AGAAP 1,472Long term annual leave i -Surplus / (deficit) under AEIFRS 1,472

Notes to tables abovei. AASB 119 requires present value measurement for all long-term employee benefits.

Current AGAAP provides that wages, salaries, annual leave and sick leave aremeasured at nominal value in all circumstances. The Authority has long-term annualleave benefits and accordingly will measure these benefits at present value, rather thannominal value, thereby decreasing the employee benefits liability and changing thequantum of the annual leave expense.

ii Financial InstrumentsIn accordance with NSW Treasury’s indicative mandates, the Authority will apply theexemption provided in AASB 1 First-time Adoption of Australian Equivalents toInternational Financial Reporting Standards not to apply the requirements of AASB 132Financial Instruments: Presentation and Disclosures and AASB 139

Financial Instruments: Recognition and Measurement for the financial year ended 30 June2005. These Standards will apply from 1 July 2005. None of the information providedabove includes any impacts for financial instruments. However, when these Standardsare applied, they may impact on retained earnings (on first adoption) and the amountand volatility of result for the year. Further, the impact of these Standardswill in part depend on whether the fair value option can or will be mandated consistentwith Government Finance Statistics.

32


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)(f). Impact of Adopting Australian Equivalents to IFRS (continued)

iii. Grant recognition for not-for profit entitiesThe Authority will apply the requirements in AASB 1004 Contributions regardingcontributions of assets (including grants) and forgiveness of liabilities. There are nodifferences in the recognition requirements between the new AASB 1004 and thecurrent AASB 1004. However, the new AASB 1004 may be amended by proposals inExposure Draft (ED) 125 Financial Reporting by Local Governments. If the ED 125approach is applied, revenue and / or expense recognition will not occur until either therecipient of the contribution supplies the related goods and services (where grants arein-substance agreements for the provision of goods and services) or until conditionsare satisfied. ED 125 may therefore delay revenue or expense recognition comparedwith current AASB 1004, where grants are recognised when controlled. However, atthis stage, the timing and dollar impact of these amendments is uncertain.

(g). Insurance

The Authority’s insurance activities are to be conducted through the NSW Treasury ManagedFund Scheme of self-insurance for Government agencies. The expense (premium) isdetermined by the Fund Manager based on past experience and external benchmarking.

(h). Receivables

Receivables are recognised and carried at cost based on the original invoice amount less aprovision for any uncollectable debts. An estimate for doubtful debts is made when collectionof the full amount is no longer probable. Bad debts are written off as incurred.

(i). Payables

These amounts represent liabilities for goods and services provided to the authority andother amounts, including interest. Interest is accrued over the period it becomes due.

(j). Grants and subsidies

Grants and subsidies are recognised in the financial statements when conditions attached tothe offers are met by the intended recipient.

(k). Reclassification of financial information

When the presentation or classification of items in the financial report is amended, the natureand amount of and reason for the representation or reclassification will be disclosed.

33


2005 2004$’000 $’000

3. EXPENSES FROM ORDINARY ACTIVITIESAdministration ExpensesBoard member fees * 148 49Employee Related 273 -

421 49

Grants & Subsidies 2 -Other Expenses

Fees for services 1,099 163Audit fees 6 3Other 325 5

1,430 1711,853 220

* Board members received no other benefits

4. REVENUE FROM ORDINARY ACTIVITIES

Grants - Operating funds 1,767 54Grants - Investment funds (Commonwealth &State contributions)

1,456 577

Interest 80 -Other 22 -

3,325 631

5. CASH ASSETSCash at Bank 403 499Short term investments 1,913 -

2,316 499

For the purpose of the Statement of Cash Flows, cash includes cash at bank and short terminvestments held with NSW Treasury Corporation in an Hour-Glass Facility.

The Authority has the following banking facilities as at 30th June 2005:

• Transaction negotiation authority of $5 million.• Credit/purchase card facility of $0.05 million

Current approvals under the Public Authorities (Financial Arrangements) Act 1987 (PAFAAct) for financial accommodation in some cases are lower than the banking facility limit asat 30th June 2005. NSW Treasury approval will be sought to ensure full compliance with thePAFA Act.

6. RECEIVABLESCurrent Receivables:GST input output Offset 33 -Accrued income 4 82

37 82

34


2005 20047. PAYABLES $’000 $’000

Accruals 316 163Creditors 172 -Other 21 7

509 170

8. NON-CURRENT ASSETS – PROPERTY,PLANT AND EQUIPMENTPlant & EquipmentAt Fair Value 39 -Less:Accumulated Depreciation - -

39 -

Total Property, Plant and Equipment at NetBook Value

39 -

ReconciliationReconciliation of the carrying amounts of each class of property plant and equipment at thebeginning and end of the current financial period are set out below:

Plant & Equipment Total$’000 $'000

Carrying amount at 1 July 2004Additions 39 39Disposals - -Depreciation expense - -Carrying amount at 30 June 2005 39 39

2005 20049. EQUITY $’000 $’000

Retained surplus at beginning of financial period 411 -Net surplus from ordinary activities 1,472 411Retained surplus at 30 June 1,883 411

10. RECONCILIATION OF NET CASH FLOWS FROMOPERATING ACTIVITIES TO SURPLUS

Surplus from ordinary activities1,472 411

Decrease/(increase) in receivables 44 (82)Increase in Payables 339 170

Net Cash flow from operating activities 1,855 499

35


11. CONTINGENT LIABILITIES

The Authority is not aware of any contingent liability that would materially impact theAuthority

12 . COMMITMENTS 2005 2004$’000 $’000

(a) Capital Commitments Not later than 1 year - -Total (including GST) - -

(b) Other expenditure Commitments Not later than 1 year 6 -Total (including GST) 6 -

(c) Lease CommitmentsLease commitments contracted for at balance date andnot provided for:

Not later than one year 9 -Later than one year but not later than five years 5 -Later than five years - -Total (including GST) 14 -

13. FINANCIAL INSTRUMENTS

CashCash comprises bank balances within the Treasury Banking System. Interest is earned ondaily bank balances at the monthly average NSW Treasury Corporation 11.00 am unofficialcash rate adjusted for a management fee to Treasury.

ReceivablesAll trade and other debtors are recognised as amounts receivable at balance date.Collectability of all debtors is reviewed on an ongoing basis. Debts, which are known to beuncollectable, are written off. A provision for doubtful debts is raised when some doubt as tocollection exists. The credit risk is the carrying amount (net of any provision for doubtfuldebts). No interest is earned on trade debtors. The carrying amount approximates net fairvalue. Sales are generally made on 30 days terms.

Bank OverdraftThe Authority does not have any bank overdraft facility.

Trade Creditors and AccrualsThe liabilities are recognised for amounts due to be paid in the future for goods or servicesreceived whether or not invoiced. Amounts owing to suppliers (which are unsecured) aresettled in accordance with the policy set out in Treasurer’s Direction 219.01. If trade termsare not specified, payment is made not later than the end of the month following the month in

36


13. FINANCIAL INSTRUMENTS (Continued)

which an invoice or a statement is received. Treasurer’s Direction 219.01 allows the Ministerto award interest for late payment. No interest was paid during the period. The carryingamount approximates net fair value.

Hour-Glass Investment Facilities

The Authority has investments in TCorp’s Hour-Glass Investment Facilities. The Authority’sinvestments are represented by a number of units in a managed investment within thefacility. Each facility has different investment horizons and comprises a mix of asset classesappropriate to that investment horizon. TCorp appoints and monitors fund managers andestablishes and monitors the application of appropriate investment guidelines.

(a) Interest rate riskFixed interestrateMaturing

Weightedaverageeffectiveinterest

rate

Floatinginterest

rate

$

1 yearor less

$

1 to 5years

$

Noninterestbearing

$

Total carryingamount as

per theStatement of

FinancialPosition

$Financial assets30 June 2005

Cash 5.29 403 403TCorp Investment 5.59 1,913 1,913Receivables - 37 37

Total financial assets - 2,316 37 2,353Financial liabilities

Accounts payable - 509 509Total financialliabilities

- 509 509

Financial assets30 June 2004

Cash 4.25 499 499Receivables - 82 82

Total financial assets - 499 82 581Financial liabilities

Accounts payable - 170 170Total financialliabilities

- 170 170

End of audited financial statements

37

TO BE READ ONLY IN CONJUNCTION WITH ELECTRONIC COPY:

This page is not included in printed Annual Report. Instead, the Independent Audit Reportletter to Members of the NSW Parliament and Section 41C Certificate (both hard copy) aresubstituted and included in the Printed Version.

Documents

SMCMA AnnualReport 04-05 - Pt 1 of 3 cover sheet