broome port authority - parliament.wa.gov.au
TRANSCRIPT
BROOMEPORTGEARED FOR GROWTHa
Broome Port Authority 2009 Annual Report
ANNUAL REPORT 2009
Contents
1
1. CHAIRMAN’S REPORT 3
2. CEO’S REPORT 7
3. AGENCY OVERVIEW 10
3.1 EXECUTIVE SUMMARY 10
3.2 AGENCY PERFORMANCE 10
3.3 MINISTERIAL DIRECTIVE 12
3.4 GOVERNANCE 12
3.5 ORGANISTIONAL STRUCTURE 18
4. SAFETY 20
4.1 COMMITMENT TO OCCUPATIONAL HEALTH AND SAFETY 20
4.2 FORMAL MECHANISM FOR CONSULTATION WITH EMPLOYEES ON OH&S MATTERS 20
4.3 INJURY MANAGEMENT AND WORKERS COMPENSATION 21
4.4 SIGNIFICAN AWARDS RECEIVED BY THE AGENCY 22
4.5 ACCIDENT AND INCIDENT PERFORMANCE 22
4.6 ADDITIONAL INFORMATION 23
5. DIRECTORS REPORT 25
5.1 ROLE OF THE BOARD 25
5.2 DIRECTORS RIGHTS 26
5.3 DIRECTORS DETAILS 26
5.4 RETIREMENTS, APPOINTMENTS AND CONTINUATION IN OFFICE DIRECTORS 27
5.5 DIRECTORS MEETING 28
5.6 PRINCIPAL ACTIVITIES 29
2
5.7 DIVIDENDS 31
5.8 OPERATING AND FINANCIAL REVIEW 31
5.9 STRATEGY AND FUTURE PERFORMANCE 38
5.10 SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS 39
5.11 EVENTS SUBSEQUENT TO REPORTING DATE 39
5.12 LIKELY DEVELOPMENTS 40
5.13 DIRECTORS EMOLUMENT 41
5.14 ROUNDING OFF 42
5.15 ENVIRONMENTAL REGULATION 42
5.16 ENVIRONMENTAL MANAGEMENT 43
6. INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 44
7. BALANCE SHEET AS AT 30 JUNE 2009 45
8. STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2009 46
9 STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30 JUNE 2009 47
10. FINANCE 48
DR IAN BURSTON
1. Chairman’s Report
3
I am pleased to report in my sixth year as Chairman that Port of Broome business continues to expand and add value to the Kimberley region, with significant growth across most market segments including Browse Basin oil and gas support, cattle exports, and large cruise ship visits.
During the year our Board and Management have met their obligations towards facilitating and supporting: trade, commerce, business, safe and efficient operations, maintenance and preservation of property, environmental protection, and have produced a solid financial return for the State Government. These quite often disparate challenges were successfully met during a phase of rapid growth during 2008-09 following the escalation of Browse Basin offshore operations and commensurate logistic demands upon the BrPA. Achieving financial viability within a sound social and environmental context was one of our primary strategic aims for 2008-09.
The WA State elections in September 2008 resulted in a change in government, and WA ports’ previous Minister, the Hon. Alannah MacTiernan MLC was replaced by Hon. Simon O’Brien MLC, who was appointed Minister for Transport and Disability Services – figure 1. Within our Board of Directors Ms Nic Wevers resigned after five years of valued input to the Broome Port Authority and we wish her well in her new directions. Derek Albert, a long-term resident of Broome, was appointed to the Board on 9th March 2009.
Figure 1 Hon. Simon O'Brien, MLC
Minister for Transport and Disability Services, and Deputy Leader in the
Legislative Council
ANNUAL REPORT 2009
Chairman’s Report
4
Mainstream port activities included the provision of regional maritime infrastructure and services, primarily towards regional oil and gas exploration. Management delivered a number of technical and advisory presentations on the port’s intentions and its works in progress to members of the community, industry and government. The newly created Logistics Consultative Group and the well-established Port Users’ Group provided useful forums for this collaboration.
Integral to the port’s future development are adequate access to land, timely expansion of services capabilities, and increased finance and logistics efficiencies. The Board of Directors undertook multiple strategic reviews that culminated in a Strategic Business Plan to address the next five years’ anticipated operational and infrastructure obligations.
Broome is a major support centre for the Browse Basin exploration activity (figure 2) where port customers include major national and global resources companies. From two supply vessels per month in January 2007, Broome Port is now servicing up to 40 of these vessels per month while continuing to service increasing numbers of livestock vessels, fuel tankers and cruise ships.
Figure 2 Stevedoring Operations
Large cruise ships bring up to 3,000 passengers and crew to the town during each visit, and total cruise shipping expenditure into the community has grown from an estimated $300,000 in 2006 to around $3M in 2007-08. The symbiotic relationship between the Port and community is highlighted by the Port’s financial contribution to the region, currently estimated at $300M p.a., and the port’s important direct and indirect source of employment for 300 Broome residents.
ANNUAL REPORT 2009
Chairman’s Report
5
The proposed James Price Point LNG Precinct may become a future driver for Port growth, as the area is only 65 kilometers by sea from Broome and the development phase will require extensive logistics support, especially for early construction stages before a heavy loadout facility might be built on the James Price Point site to bring construction materials onshore. The Department for State Development commissioned studies to investigate both Browse Basin and LNG Hub support requirements and the conclusions of these studies may greatly affect Port of Broome’s future strategic planning.
In line with the economic downturn the BrPA has exercised restraint in its expenditure and to date has operated through the recession with minimal impact on its services and capabilities. Income derived from supporting the offshore resources industry plus seasonal increases in livestock exports and cruise ship tourism has underpinned the BrPA’s financial viability. Unfortunately a number of the region’s tourism, fishing and pearling industries have been severely affected and our thoughts are with those who have suffered economic and job losses. The volume of fishing and pearling vessel visits to the port almost halved during the past year, and following an amalgamation with another entity, one of the major pearling companies ceased its long-standing aquaculture activities.
The Port Authority has striven to become financially viable since its inception in January 2000. Financial viability was achieved through increased levels of business, revamping the business model, and by achieving significant efficiencies across all areas of operations. I thank the BrPA’s staff and employees who have all worked unstintingly during the past twelve months to achieve this result.
We received from our customers a number of written testimonials to the quality of our employees, many of whom are multi-skilled and experienced in their roles. Significantly the port recently achieved a twelve month safety milestone without any lost time incidents and received an IFAP Safety Award in October 2008. The safety training and emergency response capability was put to good use in February 2009 when several employees came to the ready assistance of a seriously injured crewman onboard a visiting pearling vessel. The workforce as a whole has participated in varied training and certification courses provided by the BrPA and I congratulate those who attended training courses and achieved valuable new qualifications.
The port has collaborated closely with government, the community and our customers during the past year. Of particular note, I had the pleasure of meeting several times with Pat Dodson and elder members of the Yawuru people and am pleased with the strengthening ties between the Port and the Yawuru, traditional owners of the Southern Kimberley region of Western Australia. These links were formalised with the signing of a Heads of Agreement document to enhance business and financial maritime opportunities between the port and the community’s indigenous people.
ANNUAL REPORT 2009
Chairman’s Report
6
In summary, the past year has provided the BrPA with a range of opportunities despite the prevailing economic circumstance, and much forward strategic and business planning has been undertaken to meet the anticipated challenges and opportunities that lie ahead.
Dr. Ian Burston, AM Chairman
CAPT. VIC JUSTICE
2. CEO’s Report
7
In summary, during 2008-09 Broome Port Authority (BrPA) management successfully addressed a range of targets that the Board set within the Strategic Development Plan and Statement of Corporate Intent:
Improving the port’s financial viability; Supporting local environmental initiatives; Enhancing asset management capabilities; Completing an enterprise risk review and mitigating identified risks; Enhancing collaboration with the community, industry and government; Comprehensively reviewing the Port’s Environmental Management Plan; Establishing and maintaining revised corporate governance mechanisms; Reaching twelve months without registering any Lost Time Incidents, and receiving a
major safety award; Enhancing business development capabilities, and in particular, those required in
meeting Browse Basin exploration customers’ services requirements; Initiating organisational and employee development, including negotiation of a three-
year EBA, undertaking an organisational review, implementing a contemporary standards employee appraisal system, and implementing training courses and programs to best develop staff and management core capabilities.
BrPA manages WA’s most remote ‘port authority’ port and provides a transportation gateway for the Kimberley region whereby management quality, services and facilities provide surety to regional industries that rely on shipping. Traditional shipping at Broome includes livestock exports, fuel and break-bulk imports, local aquaculture vessels, charter operations, tourism, and base porting for defence and customs vessels on border protection patrol along the NW continental shelf.
Surety of support for all of these remote area shipping entities is vital and particularly so for the oil and gas (O&G) industry. The O&G industry in particular requires high standards of all services suppliers because of the need to minimise expensive downtime - daily costs of operations are high - plus the importance that these companies attach to maintaining their individual and collective reputations. During the past year a number of major customers conducted safety and operational audits to measure the port’s quality and sustainability, whereby port personnel and community logistics organisations were satisfactorily assessed in terms of reliability, 24/7 availability, affordability, recoverability, safety, security, and emergency response capabilities. Underpinned by the BrPA’s valuable and natural strategic advantages and 24/7 operations, the past year has seen the port achieve a unique regional gas & oil service centre status.
ANNUAL REPORT 2009
CEO’s Report
8
Broome has a 40-year history of supporting offshore exploration and development beginning in the 1960’s with the initial drilling of the Browse Basin and then supporting the establishment of the NW shelf off the Pilbara coast. This NW shelf work continued until the Port of Dampier supply bases were developed in the mid ‘80’s. The qualities that made Broome a sound strategic choice for offshore support then and now include its geographical location, deepwater port, excellent road network access, comprehensive air services, wide range of supporting industries and services, plus a well sheltered and easily accessed wharf.
WA graziers are reported by ABARE to have had a good year and cattle numbers exported through the port are increasing. Some cattle shipments originating from the Pilbara are the result of reported berth shortages in that region. The livestock export vessels presently on charter for Broome are typically small, with ability to carry between 1-2,000 head whereas larger livestock ships have been chartered by the exporters to operate from Darwin.
The 2008-09 cyclone season was generally mild; however the eye of category one TC Billy passed within 40 nautical miles of Broome on 23rd December and the port was lashed by 60 knot gales and high seas from the east. Two boats sank at their moorings in Roebuck Bay with significant damage, and three other boats were driven ashore but suffered minimal damage. The lack of adequate cyclone shelter for vessels at Broome is of concern to the Port Authority, particularly since the number of commercial and recreational vessels utilising Roebuck Bay is increasing.
The level of pearling, fishing and charter vessels serviced from Broome has almost halved since the beginning of the 2008-09 financial year and possibly reflects Australia’s shrinking discretionary spending for items such as jewellery and tourism package ‘add-ons’.
The port is working closely in collaboration with the WA State Government and Yawuru people (traditional landholders for the southern Kimberley region) to source land that is suitable to develop as supply bases in proximity to the port. A historic Heads of Agreement document was approved by the Minister for Transport the Hon. Simon O’Brien in May 2009 and was subsequently signed by the Yawuru leader Mr. Pat Dodson and BrPA’s Chairman Dr. Ian Burston. Mr. Dodson is a notable regional leader, having been listed as a National Trust Living Treasure and 2009 Senior Australian of the Year. The signing of this agreement paves the way for an innovative business relationship between BrPA and the Yawuru business corporation, along with training and employment opportunities for the community’s Indigenous people.
- 'C
Captain Vi JusticeChief Executive and Harbourmaster
ANNUAL REPORT 2009
CEO’s Report
9
During the year BrPA formed WA’s first port Logistics Consultative Group, which meets trimonthly and is attended by shipping customers and logistics providers including the BrPA. Meetings are independently chaired and act as a communications forum whereby any aspect of the maritime hub supply chain that may be improved is discussed and in most cases, solutions are developed. The forum is well attended from local organisations plus major port users from Perth.
Another well attended and valued forum is the traditional Port Users’ Group (PUG) which attracts a wider representation and at the end of each meeting the port holds a security or emergency response desktop exercise. Some of these meetings become impassioned; however the PUG meetings are valued by attendees as a means of acquiring and disseminating intelligence across the whole of port industries and enable smaller organisations to have their voices heard.
The BrPA has so far not suffered unduly from the economic downturn but is actively marketing its services and infrastructure to a range of potential new customers in order to underpin a potential shipping slowdown, as the existing offshore proponents near the end of their present round of drilling programs. The coming year is likely to present new challenges for management as the port gears up for growth with the prospect of a port land development program, new supply base leases, and planning to support potential new regional development projects.
Figure 3 Pat Dodson - 2009 Senior Australian of the Year (Photo courtesy NADC).
ANNUAL REPORT 2009
3. Agency Overview
10
3.1 Executive Summary
Broome Port Authority’s year successfully culminated with twelve months free from Lost Time Incidents, an upsurge in business and income, and a new EBA completed with wages staff. Four hundred businesses and organisations conducted shipping business with the port in 2008-09, and the port was the catalyst for an estimated $300M in regional earnings plus the creation and maintenance of 300 direct and indirect jobs in Broome.
Significant efficiencies were achieved across the port’s operational structure, most notable of which was the halving in turnaround time for oil & gas supply vessels resulting from the inception of 24/7 operations, increased crane lifts per hour, and faster truck turnaround times. These measures have potential to save the oil and gas industry many millions of dollars in vessel and drilling rig downtime per year, and almost double the potential capacity of the Broome wharf.
Progress was achieved towards making some 18 hectares of port land project-ready for supply base purposes in 2009-10 – the port’s remaining 50 hectares of vested undeveloped land is intended to be passed back to government because of the land parcel’s cultural, heritage and environmental values. These 50 hectares are intended to be incorporated into a coastal park management scheme that will ensure adequate care and protection. In conjunction with this land planning process, BrPA’s Environmental Management Plan and associated management system were reviewed to provide relevant benchmarking, monitoring and compliance standards within port land holdings.
3.2 Agency Performance
The port encountered unprecedented growth over the past year and work has been directed towards improving operational efficiencies. As a result, the port has increased gross revenue significantly from the previous year, turned around last year’s loss, and recorded a surplus in excess of $2M. This surplus was achieved despite a doubling in land tax and increased expenditures related to provision of services and infrastructure.
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Berth Occupancy tieft axis) Offshore Oil & Gas Rijs Operating (right axis)
ANNUAL REPORT 2009
Agency Overview
11
Key Performance Indicators
Support of Browse Basin shipping has reached high levels but shows signs of decline as the present round of exploration programs wind down – figure 4.
Figure 4 Berth Occupancy as a Function of Operational Rigs
For a period Broome was the support centre for five rigs operating in the Browse Basin and each rig was attended by three supply boats. Broome as a service centre provides coordinated logistics support from a wide range of industries – figure 5.
Figure 5 Service Centre Capabilities
ANNUAL REPORT 2009
Agency Overview
12
This increased level of activity was met without experiencing port congestion, and the avoidance was largely achieved by careful programming and efficiencies that included 24/7 operations, reduced turnaround times for both vessels and trucks, and increased number of crane lifts per hour.
Financial performance indicators and internal auditors’ reflections upon the agency’s performance are listed separately. The quality of management capability, internal monitoring processes, financial and ethical governance, record keeping, and IT services has received increased attention during the past year and this is reflected within auditor reports.
3.3 Ministerial Directives
BrPA received a directive from Treasury to pay the State a Special Dividend in addition to any dividend that the Directors might recommend to the Minister for Transport, Hon. Simon O’Brien MLC.
3.4 Governance
The Disability Services Act 1993—Section 29
Broome Port Authority is exempt from formulating a Disability Access and Inclusion Plan. Concept plans for new offices include the provision of a lift, sufficient disabled access to the second floor plus dedicated facilities. Periodic reviews will take place to ensure that the Port complies as far as possible with both Federal and State Government disability legislation.
Substantive Equality
The Authority is exempt from reporting on Substantive Equality measures. The Authority endorses substantive equality, is establishing closer ties with local indigenous organisations, and provides for equal access to public services and diversity in the workforce.
Equal Opportunity
The component of females in our management team has increased by one with the appointment of our HS&E Officer during 2008/09. Broome Port has continued with the employment of our two Indigenous trainees, one of whom has progressed to become a full-time employee.
Three female BrPA employees successfully participated in Australian Logistics Council’s course ‘Women Moving Forward’ based on a mentoring program with various high profile women which provided opportunities to network with other participants in transport related industries across Australia.
ANNUAL REPORT 2009
Agency Overview
13
Human Resources
Since January 2009 the port has experienced a net gain of employees to meet the increasing 24/7 workload, and increased employment runs counter to the national trend. An Enterprise Bargaining Agreement was negotiated with wages staff and ratified for the next three years, and an Employee Consultative Committee was formed. Training courses delivered during the year included modules on governance, equal opportunity, emergency responses, first aid, professional and trade development, radio and security watchkeeping, IT, and administration.
Broome Port has reviewed its induction manual and introduced a checklist of commonly distributed policies and documents for new employees to ensure corporate governance principles are imparted to new recruits. Performance Reviews have also been revised to reflect best practice principles. The Port has begun reviewing all existing HR policies and procedures to ensure compliance with state and national standards.
The State Records Act 2000
BrPA has a registered Recordkeeping Plan - RKP 2008020. Four new office personnel have undertaken Recordkeeping Awareness Training provided by Integrated Records and Information Solutions (IRIS). Two Administration staff have participated in extensive records management training also provided by IRIS, and the increased staff capability has enabled the port to begin converting the filing system to comply with the State Records Authority of New South Wales’ Keyword AAA Thesaurus of General Terms.
The Port’s induction manual includes a copy of the Correspondence and Filing Policy and Procedures document which outlines the Port’s entire filing system and expected staff compliance.
Freedom of Information
The Freedom of Information Act 1992 applies. There were no applications made under this Act during the year under review. The Broome Port has formulated an Information Statement detailing relevant legislation, methods for community/customer interaction, the structure of management and decision making functions and public library records maintained by the BrPA. The Information Statement explains how to lodge a Freedom of Information request and lists associated charges, and a copy of the document is available at the BrPA’s offices and from the website.
ANNUAL REPORT 2009
Agency Overview
14
The Electoral Act 1907 – section 175ZE
Advertising Expenses 2008/09 (includes staff recruitment)
Advertising Agencies Detail Amount Broome Advertiser Recruitment 1,615.77 WA Newspapers Recruitment 3,472.20 Nationwide News Recruitment 3,400.80 Adcorp Ltd Disposal unwanted items 1,090.82 Media Advertising organisations
Purple Communications Marketing Port Services 53,680.70 Lloyds List Marketing Port Services 2,200.00 Kellog, Brown & Root Pty Ltd Marketing Port Services 1,385.30 Aspermont Ltd Marketing Port Services 6,914.55 North West Expo Marketing Port Services 3,000.00 Total $76,760.14
Risk Management
Senior management assists the Board in identifying specific sources of risk and in establishing controls to mitigate these risks. The Port’s insurer provides a database to assist in this risk management process. Recent work includes provision of a revised Pandemic Response Plan, implementing business continuity processes, provision of safety, environmental, IT, governance, contractor and port development policies and manuals, and evaluating security risks within the counter terrorism aspect.
Compliance with Legislation
The Authority and its operations are affected by many State, Federal and International laws, regulations, conventions, codes and standards. The Authority analyses new and amended legislation and changes to codes, standards and conventions to ensure that it identifies any change which may impact upon Port operations, and implements relevant changes to practices to ensure compliance.
ANNUAL REPORT 2009
Agency Overview
15
Insurance of Officers
The Authority paid a premium of $13,532 to insure the Directors and officers against liabilities for costs and expenses incurred by them in defending any civil or criminal proceedings arising out of their conduct while acting in the capacity of director or officer of the Authority, other than conduct involving a wilful breach of duty in relation to their employment with the Authority.
The Public Sector Management Act 1994—Section 31 (1) framework
Expenditure was incurred in the following areas:
Compliance issues: Significant action taken to monitor and ensure compliance. In order to achieve best practice, the BrPA is internally and externally audited. The development and administration of policies to satisfy auditors requirements imposed significant demands on the BrPA’s administrative resources.
Public Sector Standards (PSS) Breach claims:
Nil
WA Code of Ethics Reports of non compliance with WA Code of Ethics:
Nil
Agency Code of Conduct:
Three incidents were reported: an employee working under the influence of alcohol; the
matter was investigated and managed internally with no disciplinary action required;
a complaint made by a BrPA tenant against the behaviour of a previous BrPA employee was referred to the CCC for investigation.
an allegation of unacceptable behaviour concerning the way instructions were being given by a senior employee was investigated; counselling and wider training was provided as requisite to the workforce.
ANNUAL REPORT 2009
Agency Overview
16
Corruption Prevention
Broome Port’s continual improvement of its governance model produced 10 new policies and the revision of seven existing documents including the Code of Conduct and Purchasing Policy.
The following new codes and policies reduce the risk of corruption and misconduct:
Education Assistance Policy Language Services Policy Business Travel Policy Risk Management Policy Employee Suggestion Program Debt Management Policy Asset Policy Investment Policy Salary Packaging Policy IT Change Management Policy
The codes and policies have been approved by the Board of Directors and each staff member is required to sign a form in which they acknowledge receipt of the relevant policy and agree to abide by its terms.
The updated Code of Conduct includes the West Australian Code of Ethics and compliance training will be provided in 2009.
The Code of Conduct also addresses:
Customer Service Conflicts of interest Offer and Acceptance of Gifts and other Incentives Personal Behaviour with customers and work colleagues Professional Integrity Corruption Release and use of Port Authority Information Use of Port Authority Resources
The Purchasing Policy sets clear guidelines regarding the procedure to be followed when services and products are procured by the Port. The procedures separate the approvals required to issue a purchase order so that multiple parties are aware of any significant purchase. Staff members authorised to procure on behalf of the Port are assigned limits on the value of goods and services they can purchase.
ANNUAL REPORT 2009
Agency Overview
17
The BrPA also has a Public Interest Disclosure Officer who is obligated to investigate, assess and where appropriate, refer misconduct allegations made in accordance with the Public Interest Disclosure Act 2003 to the relevant authorities.
Opportunities and Risks
The Authority has identified the following opportunities and risks for attention in the year ahead:
Potential Risks
Competition from other Ports Competition for workers Environment and heritage restrictions Reduced fishing and pearling activities Reduced Browse Basin activities
Potential Opportunities
Browse Basin support LNG hub support Barrow Island support Increased fuel throughput Increased water throughput Increased rent from tenants Increased general cargo trade
ANNUAL REPORT 2009
Agency Overview
18
3.5 Organisational Structure
MINISTER Hon Simon O’Brien MLA Minister for Transport
BOARD MEMBERS Dr. Ian Burston AM (Chairman) Kim Male (Deputy Chair) George Morris Marie Gamble Derek Albert
CHIEF EXECUTIVE OFFICER / HABOUR MASTER
Victor Justice MBA Dip.MS Master Mariner MNI MIHMA
FINANCE MANAGER Terry Hewitson Bachelor of Business (Accounting Major) ASA
OPERATIONS MANAGER Robert Wilkinson BSc, Post Grad Dip Com
COMMERCIAL MANAGER
Sean Mulhall BA LLB
POSTAL ADDRESS PO Box 46 BROOME Western Australia 6725
OFFICE ADDRESS 401 Port Drive BROOME Western Australia 6725
TELEPHONE 08 9194 3100
FACSIMILE 08 9192 1778
EMAIL [email protected]
WEBSITE www.broomeport.com
/-
ANNUAL REPORT 2009
Agency Overview
19
Figure 6 Broome Port Authority Organisational Chart
CEO & Harbourmaster (Capt. Vic Justice)
Operations Manager
(Rob Wilkinson)
Deputy Harbourmaster / Pilot
(Ken Burleigh)
Pilot
(Graham Hill)
Operations Superintendant
(Mal Gower)
Shift Supervisors
(13)
Stevedores
(50)
Operations Officer
(Rhianna Randell)
Services
Superintendant
(Christian Lee)
Maintenance Supervisor
(Phil Maloney)
Port
Trainee
Casual Maintenance Worker
Port Maintenance Personnel
Electrician
(Kim Pucci)
Mechanic
(Eric Winch Buist)
Admin. Manager (Rosemary Braybrook)
Admin. Officer
Operations
(Christina Gray)
Receptionist
Operations
(Elle-Mae Yu)
Receptionist
Administration
(Amanda Wilson)
Finance Manager
(Terry Hewitson)
Accountant
(Simone Cooper)
Supervisor Payroll & Accounts
(Angela Jackson)
Payroll Officer
(Monica King)
Accounts Officer
(Kandese Hamilton)Commercial Manager
(Sean Mulhall)
HSE Officer
(Jane Walther)
ANNUAL REPORT 2009
4. Safety
20
4.1 Commitment to occupational health and safety
The Broome Port Authority recognises its obligations to provide a safe and healthy work environment for all employees, contractors, port users and visitors. We operate under a strong leadership based safety culture which begins with management commitment from the Board of Directors through to the shop floor. We believe that a successful safety management system must foster continuous improvement principles so as to provide a safe and productive work environment that is fit for purpose, therefore meeting the welfare of its operators as the business grows and moves forward.
The BrPA operates under a safety program that includes safety meetings, inspections, risk assessments, work permits and safety training activities, to ensure hazards are identified, addressed and reduced to as low as reasonably practicable. We pride ourselves on ensuring that everyone using the Ports facilities returns home safely. The Broome Port Authority’s commitment to providing a safe and healthy work environment is evident through the appointment of a dedicated Health and Safety Officer, and successfully being the recipient of the IFAP Safety Achievement Award - Safety Management System and IFAP Safety Achievement Award for 6 months without a lost time injury.
4.2 Formal Mechanism for Consultation with Employees on OH&S Matters
Consultation and communication are integral in achieving an accident and injury free environment. The objectives of effective communication will enable the BrPA to:
Eliminate unsafe practices and conditions and avoid damage to the environment; Convey OH&S information and HSE matters to the workforce; Obtain views and encourage positive contributions from employee’s and relevant
sources; Increase safety health and environmental awareness and obtain commitment to the
safety, health and environmental program; and Resolve areas of concern in relation to OH&S.
ANNUAL REPORT 2009
Safety
21
The BrPA uses the following formal and informal means of consultation with employees on OH&S matters:
Daily Toolbox Meetings; Monthly Safety Meetings; Safety Committee Meetings; Bi-monthly 18th Parallel News Letters; Port of Broome Marine Safety Notices; Safety memorandums; Involving employees in work environment inspections; Informal face to face discussions; and Attendance at associated industry forums and training sessions.
4.3 Injury Management and Workers Compensation
The BrPA is committed to assisting injured workers to return to their pre-existing duties as soon as medically possible. Management supports the injury management process and recognises that its success relies on the active participation and cooperation of the injured worker and the BrPA. Where possible the agency actively seeks suitable or alternative duties internally whilst having regard for injured workers medical restrictions.
Claims data trends for the past three years are as follows:
Year (Period) Number of Claims Average length of time away from work
2006 2 4-days
2007 4 4-days
2008 0 0-days
2009 2 27-days
ANNUAL REPORT 2009
Safety
22
4.4 Significant Awards Received by the Agency
During the period the BrPA received two major Occupational Health and Safety Awards. These were as follows:
October 2008, IFAP Safety Achievement Award for an effective Safety Management System. Broome Port regularly reviews and continually improves its OHS Management System, with the objective of improving its overall OHS performance.
October 2008, IFAP Safety Achievement Award for 6 months without a lost time injury.
4.5 Accident and Incident Performance
BrPA has continued to actively promote the significance of recording, reporting and investigation of incidents and accidents. With constant reinforcement at tool box meetings and monthly safety meetings, all employees at varying levels within the agency are actively participating in the reporting of all accidents and incidents, regardless of the seriousness of event which are recorded and investigated dependent on the circumstances and consequences of the initial event. Operators now have a clearer picture that a near miss may be a precursor for a serious injury event. This approach has greatly assisted the agency in reducing work environment hazards.
TYPES OF INCIDENTS
July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total 08/09
Total 07/08
Near Miss 1 1 2 1 3 3 5 3 4 2 2 0 27 17
Minor Injury (First Aid) 0 0 0 0 0 0 1 0 1 0 0 0 2 6
Serious Injury 0 0 0 1 0 0 0 0 0 0 0 0 1 0
Lost Time Injury
0 0 0 0 0 0 0 0 0 0 0 1 1 3
Fatalities 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Recordable Injuries
0 0 0 1 0 0 6 4 0 2 2 0 15 9
TOTAL MAN HOURS
7289 8927 6135 5347 8417 8182 5709 6952 12565 8208 8256 7322 93309 83711
Figure 7 Incident Reports – Period July 2007 to June 2008
ANNUAL REPORT 2009
Safety
23
Number of Incidents 2007/08
0
1
2
3
4
5
6
NEAR MISS REPORTS
MINOR INJURY & INCIDENT REPORTS
SERIOUS INJURY REPORTS (RESTRICTED DUTIES)
LOST TIME INJURY REPORTS
TOTAL RECORDABLE INCIDENT REPORTS
Figure 8 Numbers of Incidents
0.0020.0040.0060.0080.00
100.00120.00140.00160.00180.00200.00
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
BrPA Frequency RatesRolling 12 Months 2008/09
TOTAL RECORDABLE INJURY FREQUENCY RATE
SERIOUS INJURY FREQUENCY RATE
LOST TIME INJURY FREQUENCY RATE
Figure 9 Frequency Rates
4.6 Additional Information
The agency recognises that the marine industry, and in particular port operations such as stevedoring, can entail high-risk work. There are many hazardous conditions to consider and mitigate towards an acceptable level of risk. BrPA has addressed inter alia, movement of heavy loads, working at heights, working on vessels that are in motion due to weather conditions alongside the wharf, and personnel fatigue due to irregular hours and ambient work conditions.
ANNUAL REPORT 2009
Safety
24
The agency has rolled out a number of key initiatives and training to educate and prepare operators for various tasks as mentioned above. These include:
Working at height and rescue training; Man-over-board training and rescue; Q-Fever vaccination in relation to livestock export; Pre-employment medical; Pre-Employment Induction and Training Procedures Manual; Comply with workplace policy and procedures training; Fire fighting and awareness training; Dangerous Goods by Road and Sea training and awareness; Manual Handling training; Oil Spill Response training; and Abseiling for ships crane emergency escape training.
The port is a member of the Western Australia Port Authorities Association Peer Group for Occupational Health and Safety. This forum works towards port specific OS&H programmes and investigates commercial products that may provide industry best practice solutions.
ANNUAL REPORT 2009
5. Director’s Report
25
The Board of Directors of the Broome Port Authority, in accordance with Schedule 5 of the Port Authorities Act 1999, has pleasure in submitting its report for the financial year ended 30 June 2009.
5.1 Role of the Board
The Board of Directors (Board) of the Broome Port Authority (BrPA) is its governing body and in the name of the port authority performs the functions, determines policies and controls the affairs of the BrPA. The role of the Board as the governing body is to provide leadership, direction and oversight to the BrPA through setting corporate policies and strategic direction.
To ensure that the Board can fulfil its responsibilities, it has established Standing Orders for the operation of the Board and a framework for ensuring that internal controls and business risk management processes are adequate and that ethical standards are appropriate. Two sub-committees were formed in late 2007 - Audit and Risk Review, and Strategic Management - to apply a more rigorous approach to development planning and financial management structures.
During 2008-09 the Board commissioned external consultants to draft new contemporary policy and governance documents, and utilised in-house expertise to update existing policies.
The Board appoints the Chief Executive Officer and reviews CEO performance and remuneration. The Board also ensures that holistic regulatory and ethical standards are met and that risks are appropriately managed.
Broome Port Authority has five Directors who are appointed by the Minister for Transport. Directors may hold office for up to a three year appointment. Members of staff are not eligible for appointment as a Director.
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5.2 Directors’ Rights
Directors have access to independent legal or financial advice paid for as an approved BrPA expense and are entitled to access the Authority’s records for a period of seven years following retirement from the Board.
5.3 Directors’ Details
The names and details of the Directors of the Broome Port Authority during the financial year and until the date of this report are:
Dr Ian Burston AM – Chairman
Dr Burston holds an engineering degree and has completed management programmes at some of the world’s leading business schools. Dr Burston has over 31 years’ experience in the extractive and related resources industries including roles as Managing Director and other senior positions within major companies. Dr Burston has been a director of the Esperance Port Authority and currently sits on a number of other boards. His present term expires on 30 June 2010.
Mr Kim Male – Deputy Chair
Mr Male’s family has been closely involved with the development of Broome and the pearling industry for over a hundred years. Mr Male is a local businessman who has been active in many diverse community organisations and was a member of the Broome Shire Council for 30 years. Mr Male is a Justice of the Peace and his present term as a director of the Port Authority expires on 31 December 2010.
Ms Nik Wevers
Ms Wevers has been a Broome Shire Councillor for over 10 years and is currently the Deputy Chair of the Kimberley Development Commission. Ms Wevers has broad management experience in the social services sector and is a long-term Kimberley resident. Ms Wevers’ resigned from the Board in December 2008.
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Mr George Morris
Mr Morris is a consultant with a wide range of experience in the oil exploration industry. Having worked with many of the larger Australian oil and gas explorers, Mr Morris has developed experience in project planning, community consultation and liaison, project management and communication and reporting. As a long term Broome resident, Mr Morris has a wide ranging involvement with the community. He has had long term involvement with the Broome Turf Club and Surf Lifesaving Club and his current term as director expires on 31 December 2009.
Ms Marie Gamble
Ms Gamble is a long term resident of Broome and for the past 20 years has been a director in the pearling industry and a retail proprietor. Ms Gamble has been involved over this period in community projects, tourism and the pastoral industry in the Broome and Kimberley regions. Her current term as director expires on 31 December 2009.
Mr Derek Albert
Mr Albert was appointed on 9 March 2009 and has a long history with Broome having grown up in the town. Mr Albert is heavily involved in the local community assisting an array of community organisations and has senior level experience in the marine, tourism and construction industries, with additional business consulting experience. Mr Albert has Post-Graduate qualifications in management and management accounting and his current term expires on 30 June 2011.
5.4 Retirements, Appointments and Continuation in Office of Directors
Directors Ian Burston and Kim Male’s terms were renewed in the 2008 – 2009 financial year. Director Nik Wevers resigned in December 2008 and was replaced with the appointment of Derek Albert in March 2009. Marie Gamble and George Morris’s terms continue beyond the 2008 – 2009 financial year.
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5.5 Directors Meetings
During the financial year eight Directors’ meetings, six Accounting Risk and Audit and five Strategic Planning sub-Committee meetings were held. The number of meetings in which the Directors were in attendance is shown in the table below:
Members Name
Board Meetings
held in 2008/09
Number of Board
meetings attended in
2008/09
Audit & Risk sub-
Committee meetings
held
Audit & Risk sub-
Committee meetings attended
Strategic Planning sub-
Committee meetings
held
Strategic Planning sub-
Committee meetings attended
Ian Burston Chairman
8 8 6 5 5 5
Kim Male Deputy
Chairman
8 8 6 6 5 5
George Morris 8 6 6 3 5
3
Veronica Wevers
(resigned December
2008)
3 3 4 3 3 3
Marie Gamble 8 8 6 6 5
5
Derek Albert (appointed
March 2009)
4 4 2 1 2 1
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5.6 Principal Activities
The principal activities of the Authority during the course of the financial year were as follows:
administration and maintenance of essential facilities needed by the shipping industry including the jetty, navigation aids, berths, storage areas and utilities;
provision of pilotage, mooring and stevedoring services; control of activities within the port precinct; leasing industrial and commercial land under the control of the Authority; developing plans and strategies towards achieving future port growth and
development.
There have been no significant changes in the nature of Authority activities during the year.
Objectives and Achievements
Key objectives of the Port’s 2008/09 SCI that were successfully met during the year required BrPA to:
Act in accordance with prudent commercial principles, Achieve and sustain profitability while maintaining a positive cashflow, Consolidate and increase trade, Become operationally self-funding, and Ensure a safe working environment for Port staff and customers.
Targets as defined in the Strategic Development Plan and Statement of Corporate Intent for 2009-10 are shown at figure 10, alongside each target’s present status. The Board established additional strategic development and business planning targets as port requirements evolved during the year.
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Planned Targets
LAND:
a) Bring Port land to project ready status;
b) Acquire additional land.
SUPPORT CENTRE CAPABILITIES:
a) Identify customer land requirements;
b) Establish & justify Port project need;s
c) Improve present operational capabilities.
WHARF UPGRADE:
a) Fender replacement;
b) Pile inspections;
c) Design & cost planned maintenance program;
d) Undertake concrete decking repairs.
ROADS:
a) Conduct roadworks & road repairs;
b) Reduce Port speed limits to mitigate risk on site.
PERSONNEL:
a) Review personnel requirements;
b) Engage 2nd Marine Pilot.
ENVIRONMENT:
a) Environmental audit to ensure ongoing compliance with internal/external strictures.
ADMINISTRATION:
a) Improve record keeping;
b) Build record storage building;
c) Improve web site.
Target
Status
LAND:
a) Cultural, heritage & environmental clearances well advanced;
b) 46 Ha of new land to be accessed for supply base purposes.
SUPPORT CENTRE CAPABILITIES:
a) companies' interests registered;
b) Port Stage 1 Business Case submitted to Minister;
c) Achieved up to 50% efficiency gains.
WHARF UPGRADE:
a) Completed 4&5 berths re-fenderin;g
b) Representative pile sampling completed;
c) Maintenance program in use;
d) Decking repairs in progress.
ROADS:
a) Roadworks program shifted to 2009-10 and road repairs largely completed;
b) New speed limit signs installed.
PERSONNEL:
a) Personnel review completed, organisation sructure reviewed, & managers' contracts standardised;
b) 2nd Pilot has been employed.
ENVIRONMENT:
a) Audit shifted to 2009-10 in light of significant review of environmental mangement plan.
ADMINISTRATION:
a) Recordkeeping now in line with State standards;
b) Storage building project approved and project underway;
c) Website construction underway.
Figure 10 Targets & Target Status
1800
1600
1400
1200
1000
800
600
400
200
0
2004-05 2005-06 2006-07 2007-08 2008-09
Other vessels (Navy,Customs, Fisheries, private
Livestock
Large Commercial (cruise,fuel, general)
Offshore Exploration
Smell Commercial Pearling,Fishing, Charter)
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5.7 Dividends
There were no dividends paid since the end of the previous financial year.
5.8 Operating and Financial Review
Operational Review and KPI’s
Vessel Visits
Figure 11 shows that the total number of vessel visits decreased by 15% over the 12 months to 30 June 2009. Fishing and pearling visits in particular decreased by 34% and 42% respectively, due to respective downturns in these industries. Offshore oil & gas exploration vessel visits increased by 41% in association with Browse Basin activities. Livestock vessels visits increased by 8% and cruise vessel visits increased by 19%. Customs and Fisheries vessel visits decreased by 33% and 40% respectively, whilst visits by Navy vessels increased by 50%. Private vessel visits increased by 77% due to Superyachts Australia increased marketing of Broome.
Figure 11 – Vessel Visits
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Berth Occupancy (Berths 4-10)
Figure 12 shows the monthly average berth occupancy (Berths 4-10) for the period July – June 2009. The monthly average during this period was 41% up from 35% during 2007/08 and the highest monthly average was 48% during November 2008.
42 45
2836
4844
36
45 46 4340
36
0
10
20
30
40
50
60
70
Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
%
Figure 12 – Berth occupancy
Vessel Turnaround Times
Figure 13 shows that the monthly average vessel turnaround time for oil & gas supply vessels during the period July 2008 – June 2009 has averaged 18 hours, compared to 21 hours during 2007/08. This improvement in port efficiency is a result of improved coordination between all parties in the logistics chain. The increase in port efficiency leads to an increase in berth availability, which is required to meet the growing berth demands from the offshore oil & gas industry.
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Hou
rs
Figure 13 – Vessel Turnaround Time
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Crane Rates
Figure 14 shows that the monthly average crane rates for oil & gas supply vessels during the period July 2008 – June 2009 averaged 11.1 lifts per hour, compared to 10 lifts per hour during 2007/08. This improvement is a result of improved coordination between all parties in the landside logistics chain. The increase in crane rates assists with meeting vessel turnaround time expectations from the offshore oil & gas industry.
7.0
8.0
9.0
10.0
11.0
12.0
13.0
14.0
Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Lift
s pe
r ho
ur
The image part with relationship ID rId1 was not found in the file.
Truck Turnaround Times
Figure 15 shows that the monthly average gate to gate truck turnaround times for trucks servicing offshore oil & gas exploration over the 12 months to 30 June 2009 was 33 minutes.
0
10
20
30
40
50
60
Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Min
utes
Gate to Gate Truck Turnaround Time (Oil & Gas Rig Tenders)
Figure 15 – Gate to Gate Truck Turnaround Time
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Trade Statistics
Total Trade
Figure 16 shows that total trade tonnage increased by 7% over the 12 months to 30 June 2009, assisted by increased demand from the offshore oil & gas industry.
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Tonn
es
Financial Year Ending 30 June
Imports
Exports
Figure 16 – Total Trade
Import Trade
Figure 17 shows that total imports decreased by 7% over the 12 months to 30 June 2009. In particular, fuel imports decreased 13% due to a reduced demand for fuel from the currently declining mining sector within the Kimberley region.
Drilling equipment and drill mud imports increased by 98% due to Browse Basin activities.
Building material imports decreased by 60% due to depressed activities within the Kimberley construction industry.
0
50,000
100,000
150,000
200,000
250,000
2004/05 2005/06 2006/07 2007/08 2008/09
Tonn
es
Other
Drilling Equipment & Mud
Building materials
Fuel and oils
Figure 17 – Import Trade
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Export Trade
Figure 18 shows that total exports increased by 26% over the 12 months to 30 June 2009. Fuel bunkers and fresh water export increased by 38% and 23% respectively, due to increased demand from the Browse Basin. Drilling equipment and mud exports also increased by 42% in line with offshore oil & gas industry demands.
Livestock export tonnage increased by 2% and the number of cattle exported increased by 17%.
0
50,000
100,000
150,000
200,000
250,000
2004/05 2005/06 2006/07 2007/08 2008/09
Tonn
es
Other
Fuel Bunkers
Fresh Water
Drilling Equipment & Mud
Livestock (cattle, sheep & goats)
Figure 18 – Export Trade
Container Trade
Figure 19 shows that total container trade decreased by 25% over the 12 months to 30 June 2009 - container imports increased by 16% while exports decreased by 39%.
0
100
200
300
400
500
600
2004/05 2005/06 2006/07 2007/08 2008/09
TEU
s
Total Import TEUs
Total Export TEUs
Figure 19 – Container Trade
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Offshore Oil & Gas Exploration
Offshore oil and gas exploration in the Browse Basin was undertaken by Shell Development Australia, Inpex, Woodside, OMV, Santos, Murphy Oil and ConocoPhillips. These companies utilised the Port of Broome as their landside supply base.
Forward commitments to drilling operations that will employ the Port of Broome as their support base for the remainder of 2009 are provided by Shell, ConocoPhillips and Santos. During the first half of 2010 Total, Apache, Shell and Woodside might commence offshore exploration drilling campaigns and if so this would maintain a steady number of drill rig tender vessel port visits.
Ancillary offshore resources shipping includes seismic vessels undertaking oceanographic studies in the Browse Basin, general cargo drill casing vessel visits and bulk drill product vessels. Import fuel shipments grow or decrease in line with offshore support activities and stages of the Kimberley tourist season. The Port has supplied the bulk of its potable water exports to the Browse Basin.
0
1
1
2
2
3
3
4
4
5
Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Figure 20 Offshore Oil & Gas Rigs - Browse Basin
Operating results
The Statement of Corporate Intent (SCI) for 2008/09 estimated that the profit before tax and dividend would be $4.2m. The actual outcome for 2008/09 is a profit before tax and dividend of $2.1m. This appears to be a disappointing outcome however, the revenue from shipping activities, which is the principal activity of the Authority, still exceeded budget estimates by nearly $3.2m. It is also noteworthy that last year’s operating result was a loss of $0.8m before tax and so this year’s result represents a significant turnaround in the Authority’s performance.
// - - - - - - - - -6'
'-I- / I -a
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Shipping revenue
Shipping activity overall was greater than expected, however there were some sectors that were more active than others as is shown by the following graph.
-1,0000
1,0002,0003,000
$000'sFigure 21 Variance from Budget
The graph shows that activity in the oil and gas sector was much greater than expected. There were small variances from budget estimates in other sectors but the impact of these variances on revenue was not significant.
The percentage of revenue that is realised from each shipping activity is shown in the following graph.
2%
9%13%
49%
2%1% 0%
1%
1%
3% 1% 4%
Figure 22 Shipping Activity as a Percentageof Total Revenue
Coastal Trading
Livestock
Petroleum
Oil & Gas
Pearling
Fishing
Non-shipping revenue
The Authority leases land adjacent to the Port to various organisations that operate businesses connected to shipping activities. The Port also issues licences that allow businesses to use the Authority’s infrastructure, for example, pipelines that transfer fuel from ship to shore. The reason for the lower than expected profit from non-shipping activities, was a shortfall in revenue from leases and licences. When the budget was
ANNUAL REPORT 2009
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38
prepared in December 2007, it was anticipated that it would be possible to lease additional land and to issue a licence for the use of a jetty pipeline for a very large consideration. Unfortunately, cultural, heritage and environmental land use restrictions plus prevailing economic factors meant that the anticipated revenue from leases and licences could not be realised. This led to non-shipping revenue being $3.3m less than the SCI budget estimate.
Expenditure
Total expenditure was $1.9m greater than estimated in the SCI budget. This is largely due to the unexpected increase in shipping activity that required additional labour and is reflected by an increase in Port operational expenses. The additional revenue generated by the oil and gas sector allowed the Authority to increase the amount that was spent on asset (infrastructure) maintenance. The Board of Directors are very supportive of the increased expenditure on infrastructure as there was concern that maintaining infrastructure had not been given a high priority in the past.
Other financial matters
During the year an ongoing internal audit program was initiated. This program will assist the administration to improve its efficiency and effectiveness and work towards achieving best practice in the provision of services to internal and external customers. Management enthusiastically adopted the suggestions of the internal audit report. The associated action plan for implementing these suggestions has been supported by the Board of Directors.
The administration continues to improve policies and procedures and this has realised efficiency gains in the payroll function and other administrative functions.
5.9 Strategy and Future Performance
The Board committees have developed a strategic business plan and an allied business case for essential works to take the port through the next five years. These works are in two stages to address forward planning, and then project implementation, with certain crucial logistics improvements to be accomplished at an early stage to maximise the use of existing infrastructure.
A major planned maintenance program has commenced over port property and assets. A dedicated services superintendent is managing these works. The replacement value of port infrastructure, some of which is 40 years old, is in the order of $300M and this maintenance program was designed to protect and prolong the forward life and operational capability of these important state assets.
Browse Basin oil and gas customer requirements include access to project ready land, provision of additional logistic handling equipment, and infrastructure modifications - these
400 -
350
300
250
200E
Supply Vessel Visits To Broome Port
HR97/98 98/99 99100 00/01 01)02 02/03 03/04 04/05 05/06 06/07 07/08 08/09
Year (YTD)
150
100
50
0 I I ii
ANNUAL REPORT 2009
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39
items have become major components of the port’s strategic and business planning programs. Present and future drivers for Port expansion and capital expenditure include:
High levels of offshore drilling and associated supply vessel visits (figure 23) that have continued to increase despite the global economic downturn,
Land development requirements for base supporting future Browse Basin projects, and
Potential project support for the LNG precinct construction at nearby James Price Point.
Figure 23 Browse Basin Support Levels
5.10 Significant changes in the state of affairs
In the opinion of the Directors there were no significant changes in the state of affairs of the Authority that occurred during the financial year under review.
5.11 Events subsequent to reporting date
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material nature likely in the opinion of the directors of the Authority to affect significantly the operations of the Authority, the results of those operations, or the state of affairs of the Authority, in future financial years.
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5.12 Likely developments
Current and emerging issues potentially liable to impact BrPA include:
The economic decline. This has reduced the potential for infrastructure development financing from state and federal sources. Much of the port’s physical infrastructure was built in the 1960’s and the levels of ongoing maintenance and the provision of facilities and services to assuage regional shipping demands have been limited by the Port’s ability to pay. Despite the port’s recent cashflow improvement with more investment into maintaining port facilities and prolonging asset life, an increased expenditure is required to bring facilities to an acceptable standard.
Remediating the marine slipway. The poor state of the marine slipway and repair facility poses potential safety risks both for the port and regional commercial and recreational boat owners.
The changing face of local industries. The regional pearling, fishing and charter boat industries are now operating at half their levels of twelve months ago, which possibly reflects the present recession and reduced discretionary spending levels. Several years ago the support needs of these industries constituted a large portion of the port’s activities, now they provide less than 2% of the port’s income. The port is therefore working with these industries to ascertain efficiencies and means of keeping them viable. Elsewhere, Broome has supported the oil and gas industry for 40 years and the town and port have established their synergistic capabilities as a support centre of choice for the offshore resources industry. For this reason BrPA’s operational, marketing and planning currently addresses the industry sectors with increasing support needs, e.g. general cargo, oil imports and exports, livestock exports, and Browse Basin oil and gas support.
Competition for business. Other ports are keen to increase their market share of business that is currently operating from Broome. BrPA is therefore moving to position itself to resist these commercial pressures and undertook a customer satisfaction survey as a preliminary step towards gauging industry’s level of support for Broome as a maritime logistics centre. A marketing program is based on the port’s natural strategic advantages of a sheltered harbour, deep water and ease of passage for shipping, coupled with 24/7 operations and workforce efficiencies. The port is a valuable contributor to the region, supporting 400 Kimberley businesses and organisations, injecting some $300M into the local economy, and providing more than 300 direct and indirect jobs.
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41
James Price Point LNG construction project. As a risk management strategy, this potential project and new WA port will require maritime management overview (particularly with the community’s high levels of environmental interest) plus logistics support. If BrPA is tasked with project involvement, its management team has wide maritime expertise with relevant capabilities in logistics management and emergency response, with the added benefit of local operational and environmental knowledge. The project’s early logistics requirements might potentially be shipped through Broome Port inclusive of bitumen for roadworks to site, the provision of large earthmoving machinery, and bulk shipments of construction materials such as cement.
5.13 Directors’ emoluments
In accordance with Section 13(c)(i) of Schedule 5 of the Port Authorities Act 1999 requiring the nature and amount of each major element of remuneration of each director of the Authority, each of the five named executives who received the highest remuneration and other key management personnel of the Authority are:
Short term employee benefits
Post-employment
benefits Total
remuneration
Director’s name Cash salary &
fees Superannuation
benefits I Burston 45,000 - 45,000 K Male 25,000 2,250 27,250 G Morris 16,500 1,485 17,985 V Wevers 8,250 743 8,993 M Gamble 16,500 1,485 17,985 D Albert 5,500 495 5,995
Total 116,750 6,458 123,208 Director Kim Male is a proprietor of the retail store Streeter and Male (Mitre 10). The transactions for the year with Streeter and Male amounted to $2,014 (2008: $1,019). This is one of the several retail stores used by the Broome Port Authority on normal commercial terms and conditions.
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Short term employee
benefits
Post-employment
benefits Total
remuneration
Executive’s name
Cash salary &
fees Other
benefits Superannuation
benefits
V Justice 229,190 28,244 18,209 275,643
S Mulhall 199,110 256 17,886 217,252
T Hewitson 119,592 - 18,400 137,992
R Wilkinson 168,082 1,238 14,732 184,052
K Burleigh 189,962 571 16,699 207,232
Total 905,936 30,309 85,926 1,022,171
5.14 Rounding off
Amounts have been rounded off to the nearest thousand dollars in the Directors’ Report and Financial Statements.
5.15 Environmental regulation
Under the Port Authorities Act 1999, the Authority is also required to “...protect the environment of the port and minimise the impact of port activities on that environment”.
In response to support requirements from the Browse Basin offshore oil and gas proponents, key parcels of land both on and off the port site have been identified for constructing supply bases. This process included cultural and heritage surveys, flora and fauna surveys, revision of the Environmental Management Plan and forwarding a vegetation clearing application to the Department for Environment and Conservation.
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5.16 Environmental management
BrPA is committed to demonstrating that it is an environmentally responsible organisation and this commitment is reflected in its values and corporate priorities. The port supports two major environmental studies being conducted within Roebuck Bay waters plus a third study related to the annual Asian-Australia bird migration which will commence in the near future. The port’s environmental commitment was demonstrated by its timely and efficient response to an oil spill that washed up along 40 kilometres of the Broome coastline during the week of 29th June 2009 – 2nd July 2009. The regional Department of Environment office commended BrPa on its response.
Figure 24 Oil spill clean-up response June 2009
ANNUAL REPORT 2009
6. Income Statement for the year ended 30 June 2009
44
Notes 2009 2008 $'000 $'000
Revenue 4 14,404 10,161 Other income 5 0 10
Depreciation and amortisation expense 6 (1,378) (1,352)
Port operations expenses 3 (4,855) (4,271)
General administration 3 (3,336) (3,179)
Asset maintenance (738) (520)
Environmental expenses 0 (142) Port utilities (463) (314) Safety and security (464) (416)
Finance costs 8 (700) (754)
Other expenses 9 (339) (61) Profit before income tax 2,131 (838)
Income tax (expense) / benefit 10 (480) 137
Profit / (Loss) for the year ended 30 June 1,651 (701)
The notes on pages 49 to 83 are an integral part of these financial statements.
ANNUAL REPORT 2009
7. Balance Sheet as at 30 June 2009
45
Notes 2009 2008 $'000 $'000 ASSETS Current Assets Cash and cash equivalents 12 3,812 2,269 Trade and other receivables 13 1,678 1,680 Inventories 14 1 4
Total current assets 5,491 3,953
Non-current Assets Deferred tax assets 10 449 419 Property, plant and equipment 15 26,807 26,803 Intangible assets 16 35 49
Total non-current assets 27,291 27,271
Total Assets 32,782 31,224
LIABILITIES Current Liabilities Trade and other payables 17 1,059 1,753 Provisions 19 762 226 Interest bearing borrowings 18 581 244 Other Liabilities 20 497 281
Total current liabilities 2,899 2,504
Non-current Liabilities Provisions 19 91 30 Interest bearing borrowings 18 10,678 11,577
Total non-current liabilities 10,769 11,607
Total Liabilities 13,668 14,111
Net assets 19,114 17,113
EQUITY Contributed Equity 21 17,136 16,786 Retained profits 21 1,978 327
Total Equity 19,114 17,113
The notes on pages 49 to 83 are an integral part of these financial statements.
ANNUAL REPORT 2009
8. Statement of Changes in Equity for the year
ended 30 June 2009
46
2009 2008 $'000 $'000
Balance of equity at start of period
17,113 16,565 Contributed equity Balance at start of period 16,786 15,537Capital contribution 350 1,249Balance at end of period 17,136 16,786 Retained earnings
Balance at start of period 327 1,028Profit/(Loss) for the period 1,651 (701)Balance at the end of period 1,978 327 Balance of equity at end of period 19,114 17,113
The notes on pages 49 to 83 are an integral part of these financial statements.
ANNUAL REPORT 2009
9. Statement ofCash Flow for the
year ended 30 June 2009
47
Notes 2009 2008 $’000 $’000Cash flows from operating activities
Cash receipts from customers 14,046 9,746Cash receipts from State and Commonwealth Government funding 390 420Cash paid to suppliers and employees (10,288) (7,556)Interest paid (700) (754)Income taxes paid (300) 0
Net cash from operating activities 22 3,148 1,856Cash flows from investing activities
Proceeds from sale of property, plant and equipment
20 166
Acquisitions of property, plant and equipment (1,414) (1,693)Net cash from investing activities (1,394) (1,527)Cash flows from financing activities
Repayment of borrowings (489) (163)Finance lease payments (72) (145)Finance lease proceeds 0 318Receipts from State Government equity contributions
350 1,249
Net cash from financing activities (211) 1,259Net increase (decrease) in cash and cash equivalents
1,543 1,588
Cash and cash equivalents at 1 July 2,269 681Cash and cash equivalents at 30 June 12 3,812 2,269
The notes on pages 49 to 83 are an integral part of these financial statements.
ANNUAL REPORT 2009
10. Finance
48
Contents
Note 1 Basis of preparation Note 16 Intangible assets
Note 2 Summary of significant accounting policies Note 17 Trade and other payables
Note 3 Expenses by nature Note 18 Interest bearing borrowings
Note 4 Revenue Note 19 Provisions
Note 5 Other income Note 20 Other liabilities
Note 6 Depreciation and amortisation Note 21 Equity Reconciliation of cash flows from operating activities Note 7 Employee benefits expense Note 22
Note 8 Finance costs Note 23 Financial instruments
Note 9 Other expenses Note 24 Commitments
Note 10 Income tax Note 25 Remuneration of Auditors
Note 11 Dividends Note 26 Related Parties
Note 12 Cash and cash equivalents Note 27 Contingent liabilities Events occurring after balance sheet date Note 13 Trade and other receivables Note 28
Note 14 Inventories
Note 15 Property, plant and equipment
ANNUAL REPORT 2009
Finance
49
1. Basis of preparation
(a) Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the financial reporting provisions of the Port Authorities Act 1999, except as disclosed in note 1(b).
The financial statements were authorised for issue on 8 September 2009 by the Board of Directors of Broome Port Authority (“the Authority”).
(b) Presentation of the income statement
During the year ended 30 June 2009 the Authority modified the income statement presentation of expenses using a classification based on the nature of expenses. Comparative amounts were reclassified for consistency.
Classification of expenses by nature is considered to provide more relevant and reliable information than classification by function due to the nature of the Authority’s operations.
According to AASB 101 Presentation of Financial Statements, expenses classified by nature are not reallocated among various functions within the entity. However, the Authority has allocated employee benefits expenses to various line items on the Income Statement, including port operations expenses, general administration, asset maintenance and safety & security. This allocation reflects the internal reporting structure of the Authority which allocates labour expenses to significant expense items in the income statement based on the nature of the expenses incurred. The Authority believes that the allocation is more relevant to the understanding of the financial performance of the Authority.
The Directors have concluded that the financial statements present fairly the Authority’s financial position, financial performance and cash flows and that it has complied with applicable standards and interpretations, except that it has departed from AASB 101, para 88, to achieve a fair presentation.
Total employee benefits expenses are disclosed in note 7 to the financial statements.
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(c) Basis of measurement
The financial statements have been prepared on the accrual basis of accounting using the historical cost convention.
(d) Functional and presentation currency
These financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated.
(e) Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are:
(i) discount rates used in estimating provisions;
(ii) estimating useful life and residual values of key assets; and
(iii) long service leave – retention rates and discount rates.
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2. Summary of significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements unless otherwise stated.
Certain comparative amounts have been reclassified to conform with the current year’s presentation [see note 1(b)].
(a) Revenue recognition
Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows:
(i) Rendering of services Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion of the transaction at the reporting date. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
(ii) Interest Interest revenue is recognised as it accrues using the effective interest method [see note 2(b)].
(iii) Rental income Rental income is recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income.
(b) Finance income and expenses
Finance income comprises interest income on funds invested and interest receivable from debtors. Interest income is recognised as it accrues in profit or loss using the effective interest method.
Finance expenses comprise interest expense on borrowing and finance charges payable under finance leases. All borrowing costs are recognised in profit or loss using the effective interest method. The interest expense component of finance lease payments is also recognised in the income statement using the effective interest rate method.
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Borrowing costs are recognised as expenses in the period in which they are incurred except where they are directly attributable to the acquisition, construction or production of a qualifying asset in which case they are capitalised as part of the cost of the asset.
In determining the amount of borrowing costs to be capitalised during the financial year, investment revenue earned directly relating to borrowings, is deducted from the borrowing costs incurred.
(c) Income tax
The Authority operates within the national tax equivalent regime (“NTER”) whereby an equivalent amount in respect of income tax is payable to the State Government. The calculation of the liability in respect of income tax is governed by NTER guidelines and directions approved by Government.
As a consequent of participation in the NTER, the Authority is required to comply with AASB 112 Income Taxes.
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realised.
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(d) Receivables
(i) Trade receivables Trade debtors are recognised and carried at the original invoice amounts less an allowance for any uncollectable amounts. Debtors are generally settled within 14 days except for property rentals, which are governed by individual lease agreements.
The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectable are written-off against the allowance account. The allowance for uncollectable amounts (doubtful debts) is raised when there is objective evidence that the Authority will not be able to collect a debt.
(ii) Lease receivables A lease receivable is recognised for leases of property, plant and equipment which effectively transfers to the leasee substantially all of the risks and benefits incidental to legal ownership of the leased asset.
Finance lease payments are allocated between interest revenue and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease with interest revenue calculated using the interest rate implicit in the lease recognised directly in the income statement.
(e) Inventories
Inventories consist of stores which are measured at the lower of cost and net realisable value.
(f) Property, plant and equipment
(i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
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When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within “other income” in profit or loss.
(ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that future economic benefits embodied within the part will flow to the Authority and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
(iii) Depreciation Depreciation is recognised in profit or loss on a straight-line or diminishing basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated.
The estimated useful lives for each class of depreciable assets are as follows:
Asset improvements 10 years Buildings 7 to 50 years Infrastructure 5 to 66 years Harbour facilities 14 to 27 years Access channel 7 to 20 years Electronic 2 to 10 years Plant & equipment 1 to 23 years Furniture & equipment 2 to 17 years Motor vehicles 3 to 8 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
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(g) Intangible assets
(i) Research and development Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalised only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Authority intends to and has sufficient resources to complete development and to use or sell the asset. The expenditure capitalised includes the cost of materials, direct labour and overhead costs that are directly attributable to preparing the asset for its intended use. Other development expenditure is recognised in profit or loss as incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated impairment losses.
(ii) Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates.
(iii) Computer software Software that is an integral part of the related hardware is treated as property, plant and equipment. Software that is not an integral part of the related hardware is treated as an intangible asset.
(iv) Amortisation Amortisation is recognised in profit or loss on a straight line basis over the estimated useful lives of intangible assets from the date they are available for use. Computer software amortisation is 2 to 20 years. The estimated useful life of amortised assets is as follows:
Computer software 2 to 20 years
(h) Impairment
Property, plant and equipment and intangible assets are tested for any indication of impairment at each balance sheet date. Where there is any indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the
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recoverable amount and an impairment loss is recognised. As the Authority is a not-for-profit entity, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.
The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of the asset’s future economic benefits and to any impairment risk from falling replacement costs.
Intangible assets not yet available for use are tested for impairment at each balance sheet date irrespective of whether there is any indication of impairment.
All impairment losses are recognised in profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(i) Leases
Leases in which the Authority assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.
Other leases are operating leases and the leased assets are not recognised on the Authority’s balance sheet.
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.
Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed.
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Financial instruments In addition to cash, the Authority has three categories of financial instruments:
1. Loans and receivables;
2. Held to maturity investments; and
3. Financial liabilities measured at amortised cost.
Refer to Note 23(ii) for further information on the classification of financial instruments.
Initial recognition and measurement is at fair value. The transaction cost or face value is equivalent to the fair value. Subsequent measurement is at amortised cost using the effective interest method.
The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material.
(j) Payables
Payables, including trade creditors, amounts payable and accrued expenses, are recognised for amounts to be paid in the future for goods and services received prior to the reporting date. The carrying amount is equivalent to fair value, as they are generally settled within 30 days.
(k) Borrowings
All borrowings are initially recognised at cost, being the fair value of the consideration received less directly attributable transaction costs. Subsequent measurement is at amortised cost using the effective interest rate method.
Gains and losses are recognised in the income statement when the liabilities are derecognised, as well as through the amortisation process.
Borrowing costs are expensed as incurred unless they relate to qualifying assets.
(l) Employee benefits
The liability for annual and long service leave expected to be settled within 12 months after the balance sheet date is recognised and measured at the undiscounted amounts expected to be paid when the liabilities are settled. Annual and long service leave expected to be settled more than 12 months after the balance sheet date is measured at the present value of amounts expected to be paid when the liabilities are settled. Leave liabilities are in respect of services provided by employees up to the balance sheet date.
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When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions. In addition, the long service leave liability also considers the experience of employee departures and periods of service.
The expected future payments are discounted to present value using market yields at the balance sheet date on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.
All annual leave and unconditional long service leave provisions are classified as current liabilities as the Authority does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.
Associated payroll on-costs are included in the determination of other provisions.
(m) Employee superannuation
The Gold State Superannuation Scheme (GSS), a defined benefit lump sum scheme, and the Superannuation and Family Benefits Act Scheme, a defined benefit pension scheme, are now closed to new members. The Authority is liable for superannuation benefits for past years’ service of members of the Superannuation and Family Benefits Act Scheme who elected to transfer to the GSS Scheme. The Authority also accrues for superannuation benefits to the pension scheme for those members who elected not to transfer from that scheme.
The superannuation liability for existing employees with the pre-transfer service incurred under the Superannuation and Family Benefits Act Scheme who transferred to the GSS Scheme are provided for at reporting date.
Employees who are not members of either the Pension or the GSS Schemes became non-contributory members of the West State Superannuation Scheme (WSS), an accumulation fund until 15 April 2007. From 16 April 2007, employees who are not members of the Pension, GSS or WSS Schemes become non-contributory members of the GESB Superannuation Scheme (GESB Super), a taxed accumulation fund. The Authority makes concurrent contributions to the Government Employee Superannuation Board (GESB) on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. These contributions extinguish the liability for superannuation charges in respect of the WSS and GESB Super Schemes.
(n) Dividends
Dividends are recognised as a liability in the period they are declared.
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(o) Provisions
A provision is recognised if, as a result of a past event, the Authority has a present 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. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognised as finance costs.
(p) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash on hand, cash at bank, at call deposits and term deposits due within 90 days.
For the purpose of the cash flow statement, cash equivalents consist of cash and cash equivalents as defined above.
(q) Goods and services tax
Revenue, 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 taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. 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 are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
(r) Contributed equity
The Authority receives support from the WA Government (see note 21). The amount received is recognised directly as a credit to contributed equity.
(s) New standards and interpretations not yet adopted
The following standards, amendments to standards and interpretations have been identified as those which may impact the entity in the period of initial application. They are available for early adoption at 30 June 2009, but have not been applied in preparing this financial report:
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Revised AASB 101 Presentation of Financial Statements (2007) introduces the term total comprehensive income, which represents changes in equity during a period other than those changes resulting from transactions with owners in their capacity as owners. Total comprehensive income may be presented in either a single statement of comprehensive income (effectively combining both the income statement and all non-owner changes in equity in a single statement) or, in an income statement and a separate statement of comprehensive income. Revised AASB 101, which becomes mandatory for the Authority’s 30 June 2010 financial statements, is expected to have a significant impact on the presentation of the financial statements. The Authority plans to provide total comprehensive income in a single statement of comprehensive income for its 2010 financial statements.
Revised AASB 123 Borrowing Costs removes the option to expense borrowing costs and requires that an entity capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. The revised AASB 123 will become mandatory for the Authority’s 30 June 2010 financial statements.
3. Expenses by nature Operating expenses are presented on the face of the income statement using a classification based on the nature of expenses [see note 1(b)]. Marine expenses include those expenses derived from water based activities, port operations expenses include those expenses related to land based support activities, whilst general administration expenses includes expenditure of an administrative nature.
4. Revenue Revenue consists of the following items:
2009 2008 $’000 $’000Rendering of services Charges on cargo 4,463 3,343Charges on ships 6,483 3,755Shipping services 1,337 1,047Interest revenue 140 32Rentals and leases 1,256 1,175Government grants and subsidies 468 420Other 257 389Total revenue 14,404 10,161
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5. Other income 2009 2008$’000 $’000
Other income consists of the following:
Net gain on sale of property, plant and equipment 0 10
6. Depreciation and amortisation
2009 2008 $’000 $’000Depreciation
Buildings 50 50Improvements 18 18Electronic equipment 25 28Plant and equipment 191 183Harbour facilities 844 820Furniture & fittings 13 10Motor vehicles 37 40Access channels 10 15Associated infrastructure 169 160
Total Depreciation 1,357 1,324 Amortisation
Intangible assets 21 28Total Amortisation 21 28 Total depreciation and amortisation 1,378 1,352
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7. Employee benefits expense
2009 2008
$'000 $'000
Employee benefits expenses
Wages and salaries 5,197 4,269
Superannuation 406 498
5,603 4,767
8. Finance costs
2009 2008
$'000 $'000
Finance leases, finance charges 20 59
Superannuation 680 695
Finance costs expensed 700 754
9. Other expenses
2009 2008
$'000 $'000
Doubtful debts 0 37
Other 339 24
339 61
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10. Income tax Recognised in the income statement
2009 2008 $’000 $’000Current tax expense Current income tax charge 510 0 510 0Deferred tax expense Origination and reversal of temporary differences (30) (137)Total income tax expense (benefit) 480 (137) Numerical reconciliation between tax expense and pre-tax profit Profit/(loss) for the period 1,651 (701)Total income tax expense 480 (137)Profit excluding income tax 2,131 (838) Income tax using the statutory rate of 30% (2008:30%) 639 (251)Add: Non-deductible expenses 3 8 Adjustments in respect of previous deferred income tax (162) 106 Income tax expense – an effective rate of 22.5% (2008 16.4%) 480 (137) Deferred tax assets 449 419 Receivables 0 7Accelerated depreciation for tax purposes 285 0Payables 6 81Employee benefits 148 77Business related costs 22 32Tax losses 0 340Deferred tax charge 461 537 Set-off of deferred tax liabilities pursuant to the set-off provisions (12) (118)Net deferred tax assets (liabilities) 449 419
Current tax liabilities:
The current tax liability of $359,848 (2008:nil) represents the amount of income taxes payable in respect of the current financial period.
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11. Dividends
Dividends paid in the financial year
2009 2008 $’000 $’000 Dividends paid in the financial year 0 0
In accordance with the Government Financial Policy, WA Ports are required to pay dividends of 50% of after tax profits. However, in accordance with Australian Accounting Standards, dividends relating to the financial results for the year ended 30 June 2009 have not been provided as they are expected to be declared by Government after balance date.
No dividend was paid in respect of the financial year results for the year ended 30 June 2008.
12. Cash & cash equivalents
2009 2008 $’000 $’000 Bank balances 212 98Call deposits 1,600 2,171Term deposits 2,000 0 3,812 2,269
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13. Trade and other receivables
2009 2008 $’000 $’000Current Receivables 1,587 1,527Less: allowance for impairment of receivables 0 (36) 1,587 1,491 Accrued revenue 12 141Prepayments 78 48 1,677 1,680Reconciliation of changes in the allowance for impairment of receivables: Balance at the beginning of the year
36
0
Doubtful debts expense recognised in the income statement 0 36Amounts written off during the year (36) 0Balance at the end of the year 0 36
The Authority does not hold any collateral as security or other credit enhancements to receivables.
The Authority does not hold any financial assets that had to have their terms renegotiated that would have otherwise resulted in them being past due or impaired.
As at 30 June, the ageing analysis of trade debtors past due but not impaired is as follows:
Not more than 3 months
288
436
More than 3 months but less than 6 months 0 4More than 6 months but less than 1 year 0 0Balance at the end of the year 288 440
14. Inventories 2009 2008 $’000 $’000 Store on hand 1 4
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15. Property, plant and equipment
2009 2008 $’000 $’000Land At cost 1,291 990 Buildings
At cost 2,296 2,272Less: Accumulated Depreciation (504) (454)
1,792 1,818 Improvements
At cost 215 215Less: Accumulated Depreciation (71) (53)
144 162
Electronic equipment At cost 131 139Less: Accumulated Depreciation (58) (71)
73 68Plant & equipment At cost 1,782 1,788Less: Accumulated Depreciation (936) (810)
846 978 Harbour facilities
At cost 23,343 21,990Less: Accumulated Depreciation (3,194) (2,350)
20,149 19,640Furniture & Fittings At cost 109 93Less: Accumulated Depreciation (49) (36)
60 57
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Motor vehicles At cost 240 222Less: Accumulated Depreciation (83) (46)
157 176Access channels At cost 343 343Less: Accumulated Depreciation (294) (284)
49 59Associated infrastructure At cost 2,919 919 2,5722,572Less: Accumulated Depreciation Less: Accumulated Depreciation (1,209) (1,209) (1,055)(1,055)
1,710 1,710 1,5171,517Total property, plant and equipment At cost 32,669 30,624Less: Accumulated Depreciation (6,398) (5,159)
26,271 25,465 Works In Progress 536 1,338
Total property, plant and equipment 26,807 26,803
(a) Reconciliations
Reconciliations of the carry amounts of property, plant and equipment at end of the reporting period are set out below:
Land Buildings Improvements Electronic
equipment Plant & equipment Harbour
facilities $’000 $’000 $’000 $’000 $’000 $’000
Carrying Amount at 1 July 2008 990 1,818 162 68 978 19,640
Additions 301 17 0 34 173 627
Disposals / transfer 0 7 0 (3) (114) 726
Write-offs 0 0 0 0 0 0
Depreciation 0 (50) (18) (26) (191) (844)
Carrying Amount at 30 June 2009 1,291 1,792 144 73 846 20,149
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Furniture
& Fittings Motor vehicles
Access channels & nav
aids Associated
infrastructure Work in progress TOTAL
$’000 $’000 $’000 $’000 $’000 $’000Carrying Amount at 1 July 2008 57 176 59 1,517 1,338 26,803 Additions 17 18 0 218 0 1,405 Disposals/transfer (1) 0 0 143 (802) (44) Write-offs 0 0 0 0 0 0 Depreciation (13) (37) (10) (168) 0 (1,357) Carrying Amount at 30 June 2009 60 157 49 1,710 536 26,807
Operating leases Plant &
equipment
$’000 Carrying Amount at 1 July 2008 734
Repayments (160) Carrying Amount at 30 June 2009 574
Finance leases Buildings Plant &
equipment
$’000 $’000 Carrying Amount at 1 July 2008 129 138
Repayments (45) (27) Carrying Amount at 30 June 2009 84 111
16. Intangible Assets
2009 2008 $’000 $’000Computer software At cost 131 125Less: accumulated depreciation (96) (76) 35 49
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Reconciliation of carrying amounts
Computer software
Computer software
$’000 Carrying Amount at 1 July 2008 49 Additions 9 disposals (2) Depreciation for the year (21)
Carrying Amount at 30 June 2009 35
17. Trade and other payables
2009 2008 $’000 $’000 Trade payables 584 977Accrued expenses 475 776 1,059 1,753
The Authority’s exposure to liquidity risk related to trade and other payables is disclosed in note 23(i)
18. Interest bearing borrowings This note provides information about the contractual terms of the Authority’s interest bearing borrowings, which are measured at amortised cost. For more information about the authority’s exposure to interest rate liquidity risk, see note 23(i).
2009 2008 $’000 $’000Current liabilities Direct borrowings 503 173Current portion of finance lease liabilities (secured) (a) 78 71 581 244Non-current liabilities Direct borrowings 10,560 11,380Non-current portion of finance lease liabilities (secured) (a) 118 197 10,678 11,577
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Lease liabilities are effectively secured as the rights to leased assets reverse to the lessor in the event of default.
Significant terms and conditions
Direct borrowings comprise two loans at fixed interest rates from WA Treasury Corporation and are repayable in accordance with a fixed repayment schedule. The loans consist of:
A loan for $11.32m with fixed monthly principal and interest repayments that will result in the loan being fully settled in February 2025. The effective interest rate on the loan is 5.9778%.
A loan for $500k with fixed monthly principal and interest repayments that will result in the loan being fully settled in October 2009. The effective interest rate on the loan is 6.3581%.
Interest rate risk exposure
The Authority’s exposure to interest rate risk on the interest bearing borrowings and the effective weighted average interest rate at year end by maturity periods is set out in the following table.
2009
Interest bearing borrowings
1 year or
less
Over 1 to 2
years
Over2 to 3
years
Over 3 to 4
years
Over 4 to 5
years
More than 5 years Total
($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)Direct borrowings 504 470 498 528 559 8,505 11,064Finance lease liabilities 78
54 50 14 0 0 196
582 524 548 542 559 8,505 11,260
Weighted average interest rate:
Direct borrowings 5.8%
Finance leases and liabilities 9.2%
2008
Interest bearing borrowings
1 year or
less
Over 1 to 2
years
Over2 to 3
years
Over 3 to 4
years
Over 4 to 5
years
More than 5 years Total
($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)Direct borrowings 172 60 0 0 0 11,320 11,552Finance lease liabilities 72
78 53 51 14 0 268
244 138 53 51 14 11,320 11,820
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Weighted average interest rate:
Direct borrowings 6.0%
Finance leases and liabilities 9.2%
19. Provisions
2009 2008 $’000 $’000Current Annual 254 119Sick leave 62 43Time in lieu 5 12Accrued days off 11 43Long service leave 50 0Fringe benefits tax 20 9Income tax 360 0 762 226
Non-Current Long service leave 91 30 91 30
Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after balance sheet date. Assessments indicate that actual settlement of the liabilities will occur as follows:
2009 2008 $’000 $’000 Within 12 months of balance date 203 112More than 12 months after balance sheet date 51 7 254 119
Sick leave liabilities have been classified current as there is no unconditional right to defer settlement for at least 12 months after balance sheet date. Assessments indicate that actual settlement of the liabilities will occur as follows:
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2009 2008 $’000 $’000 Within 12 months of balance date 42 29More than 12 months after balance sheet date 20 14
62 43
Time in lieu liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after balance sheet date. Assessments indicate that actual settlement of the liabilities will occur as follows:
2009 2008 $’000 $’000 Within 12 months of balance date 5 12More than 12 months after balance sheet date 0 0
5 12
Accrued days off liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after balance sheet date. Assessments indicate that actual settlement of the liabilities will occur as follows:
2009 2008 $’000 $’000 Within 12 months of balance date 11 43More than 12 months after balance sheet date 0 0
11 43
The settlement of long service leave liabilities gives rise to the payment of employment on-costs including workers compensation premiums and payroll tax. The provision is measured at the present value of expected future payments.
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20. Other liabilities
2009 2008 $’000 $’000 Prepaid lease and license income 425 281Unallocated wages 72 0 497 281
21. Equity
2009 2008$’000 $’000
Contributed equity
Balance at the start of the year 16,786 15,537
Capital contributions 350 1,249
Balance at the end of the year 17,136 16,786
Retained earnings Balance at start of year 327 1,028 Profit for the period 1,651 (701) Dividends paid 0 0 Balance at end of year 1,978 327
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74
22. Reconciliation of cash flows from operating activities
2009 2008 $’000 $’000Cash flows from operating activities Profit/(Loss) for the period 1,831 (701)Depreciation 1,358 1,324Amortisation of intangible assets 20 28Write-offs 13 0(Gain)/loss on sale of property, plant and equipment 12 (9)Operating profit before changes in working capital and provisions 3,234 642
Changes in assets and liabilities Change in trade and other receivables (97) (71)Change in inventories 3 0Change in prepayments (30) 74Change in accrued income 129 (19)Change in trade and other payables (623) 1,095Change in prepaid income 144 86Change in employee benefits 238 18Change in provisions 150 168Change in income tax benefit 0 (137)
Net cash from operating activities 3,148 1,856
23. Financial instruments
(i) Financial risk management objectives and policies The Authority’s principal financial instruments comprise cash and cash equivalents, receivables, payables, interest bearing borrowings and finance leases. The Authority has limited exposure to financial risks. The Authority’s overall risk management program focuses on managing the risks identified below.
The fair values and carrying amounts of various financial instruments recognised at reporting date are as follows:
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Notes 2009 2009 2008 2008 $’000 $’000 $’000 $’000 Carrying
Amounts Fair
ValuesCarrying Amount
Fair Values
Cash & cash equivalents 12 3,821
3,821 2,269 2,269
Trade and other receivables
13 1,587
1,587 1,491 1,491
Trade and other payables 17 (1,059)
(1,059) (1,753) (1,753)
Loans and borrowings 18 (11,260)
(11,558) (11,821) (10,981)
(6,911) (7,209) (9,814) (8,974)Note; The carrying amounts of cash and equivalents, receivables and trade and other payables are a reasonable approximation of their fair values on account of their short maturity cycle.
The fair value of loans and borrowings are estimated by discounting the future expected cash flows applying the current Government yield curve at reporting date plus an adjustment for the BrPA's credit spread (i.e. 0.31% to 2.20%). BrPA does not expect prepayments of those loans and borrowings.
Market risk Market risk is the changes in market prices such as foreign exchange rates and interest rates that will affect the Authority’s income or the value of its holdings of financial instruments. The Authority does not trade in foreign currency and is not materially exposed to other price risks.
The Authority’s exposure to market risk as a result of changes in interest rates, relates primarily to its long term debt obligations. The Authority’s borrowings are all obtained through the Western Australian Treasury Corporation (WATC) and are at fixed rates with varying maturities. The risk is managed by WATC through portfolio diversification and variation in maturity dates. Other than as detailed in the interest rate sensitivity analysis in the table below, the Authority has limited exposure to interest rate risk because it has no borrowings other than WATC borrowings and finance leases (fixed interest rate).
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At balance sheet date, if interest rates had moved as illustrated in the table below, with all the other variables held constant, the effect would be as follows:
Interest Rate Risk Interest Rate Risk
+25 basis points +50 basis points -25 Basis points -50 Basis points
2009 Carrying Amount Profit Equity Profit Equity Profit
Equity
Profit Equity
($'000) ($'000) ($'000) ($'000) ($'000) ($’000) ($’000) ($’000) ($’000)
Financial Assets
Cash & cash equivalents 3,821 10 10 19 19 (10) (10) (19) (19) Total Increase/ (Decrease) 10 10 19 19 (10) (10) (19) (19)
2008 Financial Assets Cash & cash equivalents 2,269 6 6 11 11 (6) (6) (11) (11) Total Increase/(Decrease) 6 6 11 11 (6) (6) (11) (11)
The weighted average inertest rate for each category of financial instrument is as follows: Within one year
Weighted Average Interest Rate
Fixed Interest Rate
Floating Interest rate
Non Interest Bearing Total
2009 Financial Assets & Liabilities $’000 $’000 $’000Cash & cash equivalents 4.19% 3,812 3,812Trade and other receivables 1,678 1,678WATC Borrowings 5.84% (11,064) (11,064)Finance leases 9.17% (195) (195)Trade and other payables (1,059) (1,059)Net Financial Assets (Liabilities) (11,259) 3,812 619 (6,828)
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Within one year
Weighted Average Interest Rate
Fixed Interest Rate
Floating Interest rate
Non Interest Bearing Total
2008 Financial Assets & Liabilities $’000 $’000 $’000Cash & cash equivalents 6.37% 2,269 2,269Trade and other receivables 1,680 1,680WATC Borrowings 6.00% (11,553) (11,553)Finance leases 9.17% (268) (268)Trade and other payables (1,753) (1,753)Net Financial Assets (Liabilities) (11,821) 2,269 (73) (9,625) Credit risk Credit risk arises when there is the possibility of the Authority’s receivables defaulting on their obligations resulting in financial loss to the Authority. The Authority measures credit risk on a fair value basis and monitors risk on a regular basis. With respect to credit risk arising from cash and cash equivalents, the Authority’s exposure to credit risk arises with the default of the counter party, with a maximum exposure equal to the carrying amount of the cash and cash equivalents.
The Authority operates predominantly within the shipping industry and accordingly is exposed to risks affecting that industry. The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment, as shown in the table at Note 23(ii).
The Authority follows stringent credit control and management procedures in reviewing and monitoring debtor accounts and outstanding balances as evidenced by the historical aged debtor balances. In addition, management of receivables includes frequent monitoring, thereby minimising the Authority’s exposure to bad debts. For financial assets that are past due or impaired, refer to note 13 ‘Trade and other receivables’.
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The Authority’s credit risk management is further supported by rental agreements and sections 116 and 117 of the Port Authority’s Act 1999. Section 116 refers to the liability to pay port charges in respect of vessels and Section117 refers to the liability to pay port charges in respect of goods. Port charges are defined in Section 115.
Liquidity risk The Authority’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash reserves and its borrowing facilities. The Authority manages its exposure to liquidity risk by ensuring that appropriate procedures are in place to manage cash flows, including forecast cash flows, to ensure sufficient funds are available to meet its commitments.
The table below reflects the contractual maturity of financial liabilities. The contractual maturity amounts are representative of the undiscounted amounts at the balance sheet date. The table includes both interest and principle cash flows. An adjustment has been made where ajudged to be material.
Financial liabilities Carrying amount
Up to 1 month
1-3 months
3-12 months
1-5 years
>5 years
2009 ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
Trade payables & accruals (1,059) (783) (276) 0 0 0
Finance lease liability (223) (8) (15) (69) (131) 0
Borrowings (17,065) (106) (211) (829) (5,427) (10,492)
(18,347) (897) (502) (898) (5,558) (10,492)
Financial liabilities Carrying amount
Up to 1 month
1-3 months
3-12 months
1-5 years
>5 years
2008 ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
Trade payables & accruals (1,753) (977) (776) 0 0 (0)
Finance lease liability (314) (8) (15) (69) (222) (0)
Borrowings– interest only (22,999) (58) (117) (526) (2,803) (19,495) Borrowings- reducing balance (245) (15) (31) (138) (61) (0)
(25,311) (1,058) (939) (733) (3,086) (19,495)
The risk implied from the values shown in the table below reflects a balanced view of cash inflows and outflows. Leasing obligations, trade payables and other financial liabilities mainly originate from the financing of assets used in the ongoing operations such as property, plant and equipment and investments in working capital e.g. inventories and trade receivables. These assets are considered in the Authority’s overall liquidity risk.
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Risks associated with the liability on borrowings are reduced by the Authority paying a guarantee charge. This charge guarantees payment to the WATC by the Government for outstanding borrowings in case of default.
Financial assets Carrying amount
Up to 1 month
1-3 months
3-12 months
1-5 years
>5 years
2009 ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) Cash and cash equivalents 3,821 3,821 0 0 0 0 Trade and other receivables 1,587 1,587 0 0 0 0
5,408 5,408 0 0 0 0
Financial liabilities Carrying amount
Up to 1 month
1-3 months
3-12 months
1-5 years
>5 years
2009 ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
Trade payables & accruals (1,059) (783) (276) 0 0 0
Finance lease liability (223) (8) (15) (69) (131) 0
Borrowings– interest only (17,065) (106) (211) (829) (5,427) (10,492)
(18,347) (897) (502) (898) (5,558) (10,492)
Net maturity (12,939) 4,511 (502) (898) (5,558) (10,492)
Financial assets Carrying amount
Up to 1 month
1-3 months
3-12 months
1-5 years
>5 years
2008 ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
Cash and cash equivalents 2,269 2,269 0 0 0 0
Trade and other receivables 1,491 1,491 0 0 0 0
3,760 3,760 0 0 0 0
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Financial liabilities Carrying amount
Up to 1 month
1-3 months
3-12 months
1-5 years
>5 years
2008 ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
Trade payables & accruals (1,753) (977) (776) 0 0 0
Finance lease liability (314) (8) (15) (69) (222) 0
Borrowings-interest only (22,999) (58) (117) (526) (2,803) (19,495) Borrowings– reducing balance (245) (15) (31) (138) (61) (0)
(25,311) (1,058) (939) (733) (3,086) (19,495)
Net maturity (21,551) 2,702 (939) (733) (3,086) (19,495)
(ii) Categories of financial instruments Set out below are the carrying amounts of the Authority’s financial instruments. The Directors consider the carrying amounts of the financial instruments represent their net fair values.
2009 2008 $’000 $’000Financial assets Cash and cash equivalents 3,821 2,269Trade and other receivables 1,587 1,680 5,408 3,949Financial liabilities Trade and other payables 1,059 1,753Interest bearing borrowings Obligations under finance leases 195 268 Fixed rate borrowings 11,037 11,553 12,291 13.574
The carrying amount, by maturity, of the interest bearing borrowings that are exposed to interest risk are disclosed in note 18.
Fair values All financial assets and liabilities recognised in the balance sheet, whether they are carried at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair value otherwise stated in the applicable notes.
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24. Commitments
(i) Capital expenditure commitments Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows:
2009 2008 $’000 $’000 Within one year 0 865
(ii) Lease commitments Commitments in relation to leases contracted for at the balance sheet date but not recognised in the financial statements as liabilities, are payable as follows:
2009 2008 $’000 $’000 Within one year 160 160Later than one year but not later than five years 414 567Later than 5 years 0 7 574 734
Representing: Non-cancellable operating leases 574 734
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(iii) Finance lease commitments
2009 2008 $’000 $’000Minimum lease payment commitments in relation to finance leases are payable as follows:
Within one year 92 71Later than one year but not later than five years 131 197Later than 5 years 0 0Minimum lease payments 223 268Less: future finance charges (27) (47) 196 221
The present value of finance leases payable is as follows:
Within one year: 89 88Later than one year but not later than five years 123 118Later than 5 years 0 0Present value of lease liabilities 212 206
Included in the financial statements as: Current (note 18) 78 71Non-current (note 18) 118 197 196 268
Finance leases payable are in respect of office accommodation, motor vehicles and other plant.
(iv)Non-cancellable operating lease commitments
Commitments for minimum lease payments are payable as follows:
Within one year: 160 160Later than one year but not later than five years 414 567Later than 5 years 0 7 574 734
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(v) Operating leases receivable Future minimum rentals receivable for operating leases at reporting date: Within one year:
992 934Later than one year but not later than five years 3,968 4,673 4,960 5,607
Many leases that extend beyond 5 years include an option to renew and consequently, rentals receivable beyond 5 years have not been provided.
Operating leases receivable are in respect of property rentals.
25. Remuneration of Auditors 2009 2008 $’000 $’000 Office of the Auditor General: Remuneration for audit of the financial statements
32 27
26. Related Parties
Directors
The names of persons who were Directors of Broome Port Authority at any time during the financial year are as follows:
I Burston, G Morris, M Gamble, K Male, V Wevers and Derek Albert.
There have been no other related parties transactions except for those mentioned in Note 24.
27. Contingent liabilities There are no contingent liabilities.
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28. Events occurring after the balance sheet date Events after the reporting date are those events, favourable and unfavourable, that occur between the reporting date and the date when the financial report is authorised for issue. Such events are material and non-disclosure could influence economic decisions of users taken on the basis of the financial report. There are no events, either favourable or unfavourable that have occurred between the reporting date and the date when the financial report was authorised for issue.
Mr Kim MaleDeputy Chair
0Ca.tVi tor Justice
O/ .rbourmaster
íé / IcVO --I
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Directors’ declaration In the opinion of the directors of Broome Port Authority:
(a) the financial statements and notes, set out on pages 49 to 83 are in accordance with the financial reporting provisions of the Port Authorities Act 1999, including:
(i) giving a true and fair view of the Authority’s financial position as at 30 June 2009 and its performance, for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Port Authorities Act 1999;
(b) there are reasonable grounds to believe that the Authority will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the directors:
Auditor General
INDEPENDENT AUMT REPORT O BROOI\LE PORT AUTBORHY
To the Paiharneni of Western Australia
I have audited the financial report of the Broome Port Authority The financial report comprisesthe Balance Shett as at 30 June 2009 and the Income Statement. Statement of Changes inEquity and Cash Flow Statement for the year ended on that date. a summary of significantaccounting policies, other explanatory Notes and the Directors' Declaratioir
Dii'ectois Responsibility for the Financial ReportThe directors of the Broome Port Authority are responsible for the preparation and fairpresentation of the financial report in accordance with Australian Accounting Standards(including the Australian Accounting Interpretations) and the Port Authorities Act 199 Thisresponsibility includes establishing and maintaining internal controls relevant to the preparationand fair presentation of the financial report that is free from material misstatenient whether dueto fraud or enor selecting and applying appropriate accounting policies and making accountingestimates that are reasonable in the circumstances,
Suuunai of my RoleAs required by the Port Authorities Act 1999, my responsibility is to express an op on on thefinancial report based on my audit. This was done by testing selected samples of the auditevidence. I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion Further iiiforniation on my audit approach is provided inmy audit practice statement. Refer wwa. audit.wa. gov.aupubs AuditPracStatement FebO9.pdf
An audit does not guarantee that every amount and disclosure in the financial report is enorfree, nor does it examine all evidence and eve transaction However, my audit proceduresshould identify enors or omissions significant enougji to adversely affect the decisions of usersof the financial report
Audit OpinionIn my opinion, the financial report of the Broome Port Authority is in accordance with schedule5 of the Port Authorities Act 1999. including:
giving a true and fair view of the Authority's financial position as at 30 June 2009 andof its performance for the year ended on that thte andcomplying with Australian Accounting Standards (including the Australian AccountingInterpretations) and the Corporations R.egubtions 2001
GLEN C'LARXEACTING AUDITOR GE1AL23 September 2009
4 F'oor Dumas I-ous 2 Havelock Sireel '.'esi Perth 6005 Western Auilria Tel: 08 p222 7500 Fax: 05 9322
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