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North East Waste and Resource Recovery Group

2018-19

Annual Report

ISSN: 2205-9229 (online)

© State of Victoria. North East Waste and Resource Recovery Group 2019. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

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2017-18

TABLE OF CONTENTS

REPORT OF OPERATIONS ............................................................................................. 5

RESPONSIBLE BODY DECLARATION ........................................................................ 5

YEAR IN REVIEW .................................................................................................... 6

2.1 Chair’s Report ........................................................................................................................................ 6 2.2 Executive Officer Report ........................................................................................................................ 7 2.3 Vision and Mission ................................................................................................................................. 8 2.4 Manner of establishment and the responsible Minister ....................................................................... 8 2.5 Nature and range of services provided .................................................................................................. 8 2.6 Objectives, functions and powers .......................................................................................................... 8 2.7 Achievements ...................................................................................................................................... 10 2.8 Operational performance .................................................................................................................... 13 2.9 Five-year financial summary ................................................................................................................ 26 2.10 Current year financial review .............................................................................................................. 27 2.11 Capital projects .................................................................................................................................... 27 2.12 Disclosure of grants and transfer of payments .................................................................................... 27 2.13 Subsequent events............................................................................................................................... 27

GOVERNANCE AND ORGANISATIONAL STRUCTURE ............................................... 28

3.1 Organisational structure ...................................................................................................................... 28 3.2 Governing Board .................................................................................................................................. 29 3.3 Audit Committee.................................................................................................................................. 31 3.4 Remuneration Sub-Committee ............................................................................................................ 32 3.5 North East Local Government Waste Forum ....................................................................................... 32 3.6 Technical Advisory Sub-Committee ..................................................................................................... 33 3.7 Occupational Health and Safety .......................................................................................................... 34

WORKFORCE DATA ............................................................................................... 35

4.1 Public Sector Values and Employment Principles ................................................................................ 35 4.2 Workforce data .................................................................................................................................... 35 4.3 Executive Officer disclosure ................................................................................................................. 36

OTHER DISCLOSURES ............................................................................................ 37

5.1 Local Jobs First ..................................................................................................................................... 37 5.2 Government advertising expenditure .................................................................................................. 37 5.3 Consultancy expenditure ..................................................................................................................... 37 5.4 Information and Communication Technology expenditure................................................................. 37 5.5 Major contracts.................................................................................................................................... 37 5.6 Freedom of Information ...................................................................................................................... 38 5.7 Compliance with the Building Act 1993 ............................................................................................... 39 5.8 Competitive Neutrality Policy .............................................................................................................. 39 5.9 Protected Disclosures Act 2013 ........................................................................................................... 39 5.10 Office based environmental impacts ................................................................................................... 40 5.11 Compliance with DataVic Access Policy 2012 ...................................................................................... 40 5.12 Additional information availabie on request ....................................................................................... 40

FINANCIAL MANAGEMENT COMPLIANCE ATTESTATION .............................................. 42

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FINANCIAL STATEMENTS ....................................................................................... 43

6.1 Accountable Officer’s declaration ....................................................................................................... 43 6.2 Report on the utilisation of landfill levy funds received ...................................................................... 43

VICTORIAN AUDITOR GENERAL OFFICE’S INDEPENDENT AUDITOR’S REPORT ......... 46

APPENDICES ............................................................................................................... 48

Appendix 1: Disclosure Index ................................................................................ 48

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REPORT OF OPERATIONS

RESPONSIBLE BODY DECLARATION

In accordance with the Financial Management Act 1994, I am pleased to present North East Waste and Resource Recovery Group Annual Report for the year ending 30 June 2019.

Veronica Schilling

Chairperson


23 August 2019

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YEAR IN REVIEW

2.1 Chair’s Report

I am pleased to present the North East Waste and Resource Recovery Group's (North East WRRG) Annual Report for 2018-19 on behalf of the Board of Directors and our Forum members from North East councils and alpine resorts.

In an ever changing operational sphere, we continue to work in partnership with a broad range of stakeholders to reduce waste and increase recycling opportunities at a state and local level.

We could not achieve our objectives throughout the year without the commitment of many – including the North East WRRG’s directors, members of the Local Government Waste Forum and Technical Advisory Sub-committee, councils and alpine resorts in the region, key stakeholders, and staff of North East WRRG.

Thanks must also be extended to the state agencies and their staff involved in waste and resource recovery and the metropolitan and regional waste management groups across the state for providing advice and support during another year filled with significant change at the organisational, operational and policy levels.

Some highlights during 2018–19 have been:

• Many of our partner organisations in local government, resort management and local businesses are continuing to invest both their time and money into reducing waste to landfill and increasing the value from recovered materials;

• We have been developing valuable regional strategies that will guide our activities and focus into the future to ensure that we can continue to work collaboratively and fully optimise the opportunities available to us;

• The introduction of the E-waste Ban has been supported through a strong educational campaign and this work continues;

• There have been some collective efforts around procurement and regional contingency planning; and

• Our commitment to community education through the Resource Smart and SEED programs has achieved some great outcomes for Schools throughout the region.

We are continuing to deliver on the actions identified in the North East Waste and Resource Recovery Implementation Plan (North East WRRIP) as well as developing collaborative relationships with the other regional Waste and Resource Recovery groups.

North East WRRG has undergone some staffing changes throughout the past year and we welcomed Ms Kristy Kay as Executive Officer in April this year. On behalf of the Board I would like to sincerely thank Ms Cydoni Edwards for her efforts and commitment as Executive Officer and Mr Gavin Cator for his support during the interim role.

We would also like to thank Ms Francesca Ciantar for her service and commitment to the Board following her resignation in January this year.

Veronica Schilling Chair

North East Waste and Resource Recovery Group Board of Directors

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2.2 Executive Officer Report

On behalf of the team at North East WRRG, we are pleased to present our

Annual Report for the period ending 30 June 2019.

There has continued to be the need for organisational change and

responsiveness to ongoing challenges within the waste and resource sector.

North East WRRG has focused on the delivery of actions from the North East

Waste and Resource Recovery Implementation Plan (North East WRRIP)

and continuing to facilitate the delivery of waste and resource recovery

initiatives and operations of our Local Government and Alpine Resort

partners.

There has been change in the Executive Officer position during the reporting period. We acknowledge

the contributions that Cydoni Edwards and Gavin Cator have made in the leading the organisation

during 2018-2019.

The development of some important waste and resource recovery strategies are well underway – the

Regional Optimisation Study, Procurement Strategy and Regional Litter and Illegal Dumping Plan will

help to inform the future priorities and direction of the group.

We have continued to support the delivery of the Local Government Funded Projects Program. With

contributions from our Local Government and Alpine Resort stakeholders and a collaborative strategic

planning approach to developing initiatives.

Initiatives of the Local Government Program have included the implementation of school education

programs through the Schools Environment Days, ResourceSmart Program, and Schools Environmental

Education Directory. These initiatives are appreciated by Schools throughout the North East Region.

The Local Government Funded Projects Program also delivers training for Council staff and the annual

tour of waste and resource recovery facilities continues to be a popular professional development

opportunity for Local Government Forum and Technical Advisory Subcommittee representatives.

In the North East region, several successful tenders are in place to manage the recovery and recycling

of tyres, e-waste and scrap metal.

The North East WRRG has participated in state-wide working groups to progress the development of

policies and strategies. We will continue to support our stakeholders, through advocacy efforts and

acting as a conduit between the waste and resource recovery portfolio partners.

We thank the North East Local Government and Alpine Resorts for their continued commitment to

working in partnership with the North East WRRG. We recognise that these partnerships are integral

to improving waste and resource recovery systems in North East Victoria.

I would also like to thank the team and North East WRRG – Kim, Richard, Kathy and Linda for their efforts

this year towards the delivery of positive outcomes for our stakeholders and the North East region.

Kristy Kay Executive Officer North East Waste Recovery and Resource Group

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2.3 Vision and Mission

Our Vision

The North East WRRG believes in: Getting best outcomes from our waste.

The North East Waste and Resource Recovery Implementation Plan 2017 (North East WRRIP) is the guiding regional strategic document for the organisation. The North East WRRIP identifies the following vision for the region:

The north east region has an integrated and efficient waste and resource recovery system that provides an essential community service to protect the community, environment and public health; viably recover materials from our waste; and minimise cost to householders, industry and government.

Our Mission

Improve our waste and resource recovery systems by facilitation, collaboration, research, planning and education with our stakeholders.

2.4 Manner of establishment and the responsible Minister

The North East Waste and Resource Recovery Group (North East WRRG) is a Statutory Authority established on 1 August 2014 under section 49C of the Environment Protection Act 1970 (EP Act).

The responsible Minister for the period 1 July 2018 to 30 June 2019 was the Hon Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change.

2.5 Nature and range of services provided

The North East WRRG has a primary role in setting the strategic context for solid waste management and resource recovery in the North East region.

The North East waste and resource recovery region comprises of the municipal areas of Alpine, Indigo, Mansfield, Towong, Benalla, Wangaratta and Wodonga and the alpine resort areas of Falls Creek, Mt Hotham and Mt Buller-Mt Stirling.

The North East WRRG articulates its long-term strategic direction through the North East Waste and Resource Recovery Implementation Plan (North East WRRIP). The draft North East WRRIP was finalised during 2015–16, included public feedback and consultation and outlines the strategic direction for the next ten years. The North East WRRIP was finalised and approved by the Hon Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change in June 2017. This plan is part of a state planning framework consisting of the complimentary State-wide Waste and Resource Recovery Infrastructure Plan (SWRRIP), along with other regional and one metropolitan waste and resource recovery implementation plans.

In line with its legislative functions, North East WRRG utilises education, procurement, and the promotion of best practice to foster improvements in waste management within the North East region.

As defined by legislation, North East WRRG also supports the North East Local Government Waste Forum and its sub-committees. Utilising this structure, North East WRRG works with local government and alpine resorts on the collaborative delivery of priority projects, addressing waste, litter and resource recovery.

2.6 Objectives, functions and powers

In accordance with section 49G of the EP Act the objectives of the North East WRRG are:

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(a) To undertake waste and resource recovery infrastructure planning to meet the future needs of its waste and resource recovery region while minimising the environmental and public health impacts of waste and resource recovery infrastructure;

(b) To facilitate efficient procurement of waste and resource recovery infrastructure and services for its waste and resource recovery region through the collective procurement of waste management facilities and waste and resource recovery services in the region;

(c) To integrate regional and local knowledge into State-wide waste and resource recovery market development strategies;

(d) To educate businesses and communities within its waste and resource recovery region to reduce waste going to landfill by using waste and resource recovery infrastructure and services efficiently; and

(e) To ensure Regional Waste and Resource Recovery Implementation Plans (RWRRIP) and programs are informed by local government, business and community and inform State-wide waste and resource recovery planning and programs.

In seeking to achieve its objectives, a Waste and Resource Recovery Group must collaborate with councils, Sustainability Victoria, the Environment Protection Authority, industry, business and the community.

In accordance with section 49H of the EP Act, the functions of the North East WRRG Group are:

(a) To plan for the future needs of waste and resource recovery infrastructure within the North East waste and resource recovery region consistently with the State-wide Waste and Resource Recovery Infrastructure Plan;

(b) To facilitate the provision of waste and resource recovery infrastructure and services by councils within its waste and resource recovery region;

(c) To facilitate the development of contracts for the joint procurement of waste management facilities and waste and resource recovery services within its waste and resource recovery region;

(d) To manage contracts in the performance of its objectives and functions;

(e) To work with Sustainability Victoria, councils, businesses and communities to ensure State-wide waste and resource recovery education programs are adapted to the needs of its waste and resource recovery region and to facilitate the delivery of those education programs;

(f) To advise, with Sustainability Victoria, councils and businesses within its waste and resource recovery region on best practices for waste and resource recovery systems, facilities and services;

(g) To support its waste and resource recovery region’s Local Government Waste Forum to enable the Forum to perform its functions; and

(h) To undertake waste and resource recovery projects as funded by government, councils and other organisations.

In accordance with section 49I of the EP Act, the powers of the North East WRRG are:

1. Subject to subsection (2), a Waste and Resource Recovery Group may do all things that are necessary or convenient to enable it to carry out its functions and achieve its objectives.

2. A Waste and Resource Recovery Group cannot:

(a) Own or operate a waste management facility;

(b) Apply for or hold a planning permit; or

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(c) Enter into contracts for the procurement of waste management facilities or waste and resource recovery services, unless the contract is jointly entered into with a procurer under than contract.

North East WRRG also operate in accordance with the Statement of Expectations (SOP) which has been set for the Group. The SOP provides that the Board, as the Governing body of the Group is accountable to the Minister and must ensure the achievement of the priorities and governance standards that are set as part of the SOP. There are five priority areas outlined in the SOP.

2.7 Achievements

This financial year has seen North East WRRG achieve several important milestones and deliver programs focused on the implementation of the North East WRRIP. The achievement of our objectives as a group has been enabled through the ongoing partnership between the North East’s local government and alpine resorts. These ongoing partnerships have played a pivotal role in the achievements of improving waste and resource recovery systems in North East Victoria.

A detailed report of achievements is provided in section 8 of this report.

NEW PROJECTS

Retail Food and Timber Waste

A Food and Timber waste from the retail sector investigation has been completed. The investigation identified current waste practices at food retail and wholesale businesses, in particular to the management of food and timber waste (such as timber pallets) and put forward optional business cases with the aim of driving: increased waste avoidance, food donations, food diversion to animal feed, reprocessing of unavoidable food waste and better diversion of timber waste.

Aggregate, Masonry and Soil (AMS), Garden and Timber Waste (GTW

An Aggregate, Masonry and Soil (AMS), Garden and Timber Waste (GTW) product improvement study was completed by Randell Consulting. The study investigated the acceptance and sorting of Aggregate, Masonry and Soil (AMS) and Garden and Timber Waste (GTW) at resource recovery centres (RRC) and transfer stations (TS) across the North East region. In addition to considering sector specific data of AMS and GTW waste quantities and material composition, the study presented major opportunities for improving AMS and GTW products at council’s resource recovery centres and transfer stations (RRC/TS). This study will assist the group and partners in improving processes, increasing markets, and see materials used for higher order purposes than currently occurring

On complementing the above study, a project aimed to promote the acceptance, management, processing and end markets for aggregate, masonry, soil (AMS) and garden & timber waste (GTW) is now well underway. This project will facilitate:

• Increasing the quality and market values of AMS & GTW collected by Councils;

• Developing standard operating procedures (SoPs) and training for operational staff;

• Improved signage for RRCs and TS; and

• Education and communication materials for operational staff and the general public.

Regional Optimisation Study The North East WRRG in collaboration with stakeholders commenced an optimisation study for the North East to identify opportunities for understanding the strategic and operational opportunities for waste and resource recovery in the region.

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Objectives for this project are to deliver an optimisation study which:

• Extends and adds further value to the collaborative opportunities in the Region;

• Increases the opportunities for the recovery of additional priority materials;

• Maps out the strategic opportunities to better inform future investment for waste and resource recovery in North East Victoria;

• Improves understanding of changes that can be made to maximise efficiencies;

• Can be utilised to attract investment into the region; and

• Guides the future directions for individual local governments and alpine resorts (and a regional perspective) to advance environmental, economic and social outcomes.

The study is closely aligned to the North East WRRIP and will be crucial to the organisation and its partners by informing future priorities of the Board as well as providing key opportunities for each council and alpine resorts to consider.

Electronic waste ban (State e-waste ban)

The Victorian Government banned e-waste to landfill commencing 1st July 2019.

The North East WRRG has worked to support council and alpine resort partners towards planning for the introduction of this ban. A $100,000 grant was obtained by the group and has supported the introduction of the ban through the coordination and delivery of state education collaterals and advertising.

Stage one and two of the e-waste ban was completed during this period.

Contingency Plan

A contingency plan which will assist the North East WRRG to respond effectively to significant future events like facility closures or emergencies, has been developed. This plan will provide an annual assessment of the capacity of the region’s waste infrastructure. It details the North East WRRG’s role in facilitating and planning for adequate waste disposal capacity (Part 1), managing unexpected events (Part 2) and responding to emergencies (Part 3) that may impact the waste and resource recovery. It will be updated annually at the end of each financial year.

Joint Procurement

The shredding contract, which had been underperforming, was retendered and has achieved a strong improvement in performance measured through the established KPI’s. This contract is a good example of successful cooperation across state borders, as it was jointly procured including six of the north east councils and Albury.

The North East WRRG facilitated the collaborative procurement tender for the collection, transport and recycling of scrap metal and recontracted the incumbent on much improved conditions for three years with options for two additional years. The scrap metal contract is the only income contract for local government Resource Recovery Centres

The current mattress contract is due for retendering and North East WRRG explored opportunities to encourage social enterprise to tender for the contract through business case development and market research. The tender will be published in the FY 19-20 to be contracted early in 2020.

The North East WRRG continues to facilitate the contract management group meetings, ensuring that contracts are operating effectively to meet the stakeholders needs.

A suite of procurement templates has been developed to assist Local Government and Alpine Resorts to pursue joint procurement opportunities.

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Schools Environmental Education Directory / School Environment Day

The Schools Environment Education Directory (SEED) is a partnership program funded in conjunction with the North East Catchment Management Authority (NECMA).

SEED supports schools with a termly newsletter and maintaining a dedicated website for environmental education with ready-made units as well as running School Environment Days (SED) throughout the North East region.

In 2018/19 we continued to see growth in SED and strengthen the local school involvement in environmental sustainability (particularly waste and resource recovery). The SED days attracted great local media coverage at each event and with all events held reaching capacity in attendance numbers. This year we saw the introduction of the Swap Shop and it has proved a success. This initiative helps educate students that ‘swapping’ saves energy, water and raw materials – turning something you no longer want into something someone else will enjoy and therefore extending the life of item. SED brings together many natural resource management agencies (including Parks Victoria, North East Water, Landcare, DELWP etc) and other sustainability groups (including Boomerang Bags, local native nursery’s etc), who all volunteer their time and resources to these events. Since SED’s inception has delivered 40 SED days and celebrated over 6,000 students participating in the event.

ResourceSmart

There are 17 schools actively participating in the ResourceSmart Schools (RSS) program in the North East region. North East WRRG assists schools in both the core and waste modules, including the delivery of professional development for staff at participating schools.

Overall savings in the RS program (whole school sustainability) have seen ResourceSmart schools in North East Victoria save: $298,702. In this financial year alone these 17 schools have saved $30,232 through some big commitments to change and through gaining knowledge through the education programs.

The Living Bin

The North East WRRG continue to support the facilitation of the award-winning program, The Living Bin. The Living Bin program is an organics diversion program operating throughout the alpine resorts over the peak season (winter). The program, now in its ninth season, has collectively diverted over 880 tonnes of food waste, more than 180 establishments (lodges, restaurants and apartments) voluntarily participate in the program each season. The Living Bin program utilises on-site champions who undertake 300 hours of fac-to-face interaction with participants, ensuring the message of separating and diverting food waste is spread widely. Two of the alpine resorts continue to operate successfully an on-site solution for the composting of food waste all year round. One of the greatest outcomes of the program is how it has positively affected the nature of collaboration. The Living Bin has seen stronger partnerships and cooperation form between stakeholders who operate within a highly competitive industry.

Training and Development

Training and development for council and resort representatives has continued in 2018/19 with two key activities:

• Annual two-day Local Government Waste and Resource Recovery Tour coordinated by North East WRRG was held visiting various waste & resource recovery sites throughout Melbourne and surrounds region. A diverse group of 25 representatives attended including North East WRRG Board and staff, Local Government and Alpine Resort representatives (including nominated LG Forum and TAS Representatives).

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• North East WRRG worked with consultant Christine Wardle, Managing Director from Blue Environment, to deliver the Waste Management Strategy (WMS) Workshop. The workshop gave participants an overview and resources they could use to establish a WMS and provided two case studies from a small council still undertaking the approval and implementation of their WMS compared to a large-scale regional council who has a WMS in place. Participants included representatives from partners within both the North East WRRG and GVWRRG regions.

2.8 Operational performance

The following report describes the progress on initiatives and resulting performance target outcome that were scheduled to be undertaken in 2018–19 as part of the 2019–20 Business Plan.

The Performance Target Outcome (PTO) key:

✓ Performance target achieved or exceeded or expected to be achieved

Performance target not achieved- exceeds 5% variance

Performance target not achieved – within 5% variance

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Priority Area 1: Waste and Resource Recovery Implementation Plan (WRRIP)

Objective: To begin implementing the priority actions of the North East Implementation Plan.

INITIATIVESTASKS OUTCOME STATUS PTO

Execution of Implementation Plan priority actions.

Priority Actions and short-term actions are referenced in the North East WRRG Business Plan and implemented in constraint of resources available.

Ongoing

Investigate opportunities to increase the recovery of hard and film plastics and, where viable, facilitate solutions.

Wodonga and Wangaratta have started collection, baling and transport of hard and soft plastics at their transfer stations and resource recovery centres.

Opportunities from this will lead to the ability to fully investigate the viability of the collection and diversion of hard and soft plastics from other transfer stations and resource recovery centres in the North East.

Ongoing

Facilitate work between Local Government/Alpine Resorts and EPA to develop, implement and manage the assessment of closed landfills.

This was not able to be facilitated this year due to resource constraints.

The North East WRRG plans to facilitate this important workshop for the region in the coming year and has given this a high level of priority as part of the future business plan.

Ongoing

To investigate the market development opportunities for Commercial & Industrial (C&I) timber pallets.

Study completed by Randell Consulting on C&I timber pallets and garden waste. The results of the study have been included in the joint contract for mulching.

Following on from this the AMS and GTW study was undertaken and a project set for completion in 19/20 will see all Councils have standard operating procedures (SoPs) as well as training with operational staff, updated signage and educational material developed for both operators and the general public.

Ongoing ✓

Work with Local Government/Alpine Resorts and State authorities to develop mechanisms to appropriately manage materials and waste during and after emergency events.

Contingency plan finalised after consultation with State and Local Gov/AR held throughout the development of the plan. Ongoing annual review required

Ongoing ✓

Investigate low impact regional data collection systems for Local Government /Alpine Resorts to feed into State-wide data platforms.

Scoping for the project has been undertaken and project intended for 2019/20 year.

North East WRRG has already begun consulting with state government portfolio partners and Gippsland WRRG to determine the synergies between various platforms.

Ongoing

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Priority Area 2: Local Government and Alpine Resort Funded Projects

Objective: To deliver regionally significant waste and resource recovery projects in collaboration with councils and alpine resorts in the region to support the priority actions of the North East Implementation Plan.

INITIATIVES/TASKS OUTCOME STATUS PTO

In consultation with local government and alpine resorts annually develop, agreed local project delivery tasks and budgets for coming year and ensure projects align with the North East Implementation Plan

Local Government Funded Project Program developed and mostly delivered.

Local Government Funded Project Program has been set and approved for implementation in 2019-20.

Completed ✓

Prepare an Annual Report on project outcomes for local government and alpine resorts and deliver local government and alpine resort funded projects

A final report was completed and presented to the Local Government Waste Forum in December 2018.

Completed ✓

The Living Bin is a food organics diversion program which operates throughout the Alpine Resorts over the peak season (winter).

Now in its tenth year the program has diverted 122 tonnes of organic waste from landfill (collectively over the last 9 seasons).

On average waste diversion has increased to over 35% and seen a 10% increase in recycling.

It engages with over 180 voluntary participants each year. With onsite champions spending more than 300 hours in face-to-face message delivery.

This year saw the resorts participate in a collaborative procurement for supporting infrastructure.

Completed ✓

School Education Directive (SEED)

The Schools Environment Education Directory (SEED) is a partnership program funded in conjunction with the North East Catchment Management Authority (NECMA).

SEED supports schools North East through:

• Producing a newsletter each term.

• Maintaining a dedicated website for environmental education.

• Coordinating and facilitating Three School Environmental Days were held in 2018/19 with over 590 students attending three separate days in 19/29.

• SED has just celebrated its 40th year and 6000th student passing through the program.

• Great media at each of the SED event.

Completed ✓

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Resource Smart Schools (RSS)

RSS is a Sustainably Victoria program aimed at engaging in sustainability in a holistic way, including integration through the curriculum.

There are 17 active schools in the North East with 3 new schools joining in 18/19.North East WRRG has provided one on one support to all these schools.

The North East has: 3 x 5-star schools, 4 x 4-star schools, 3 x 6-star schools, 2 x 7-star schools and 10 x 1-star schools.

North East WRRG has hosted two workshops for the schools and one professional development day at Winton Wetlands which was run in conjunction with SV, GVW an EEV.

Completed ✓

Technical Tour Each year a technical tour in undertaken as a professional development opportunity for technical officers, forum representatives, Councillors and Board representatives.

The tour this financial year was based in Melbourne over two days. Representatives visited many sites demonstrating what Councils and businesses are trailing or undertaking in the waste and recycling sector.

The tour is a great networking opportunity for representatives and builds stakeholder relationships within the group as well as increasing representatives’ knowledge and awareness of the sector.

Completed ✓

Professional Development/Training Each year the North East WRRG provides training for technical officers based on the needs, gaps and opportunities identified by the representatives.

This year after providing templates (through the Barwon South West WRRG) training in using these templates properly to support each Council and Alpine Resort’s own development of waste management strategy.

There was a total of 18 participants and a follow up survey provided by North East WRRG demonstrated that the workshop was an overall success, which met the project objectives and deliverables.

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Regional Optimisation Study (ROS) The ROS began through the identification of opportunities for streamlining and further extending collaboration opportunities in the region.

The ROS is currently in draft form and has undergone rigorous review process in consultation with the representatives of the TAS, Forum and the Board.

The ROS will identify key priorities for the region and include Council and Resort specific sections which will further identify opportunities for each area in the North East.

Ongoing

State-wide e-waste ban Last year the Victorian Government announced it would commit $15 million to upgrade more than 130 sites across Victoria as specific e-waste drop off sites to support the banning of all electronic waste going to landfill.

E-Waste was determined as anything with a battery, cord or plug.

While most of the funding went towards supporting infrastructure, $100,000 was applied for through the North East WRRG to support the education and awareness campaign. The campaign has included and is not limited to:

• Applying for funding and entering into a contract with SV

• Completing and gaining approvals for collaterals with SV

• Project planning

• Collating orders and undergoing a quotation process for supporting collaterals

• Running an eight-week local media campaign

• Communicating regularly with North East representatives

• Communicating regularly with SV and disseminating information as needed

• Tracking communication activities

Ongoing ✓

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Priority Area 3: Collaborative Procurement

Objective: To continue to support collaborative procurement processes with councils and alpine resorts in the region that lead to increased resource recovery and best practice waste management.


Identification of collaborative procurement and contract management opportunities for the region.

A procurement plan and strategy was commissioned in 2018-19 and two contracts were prepared during the financial year. Five contract management meetings were held, and continuous improvement processes are in place.

The procurement strategy was due to be completed this year however extensive delays were experienced due to the availability of the appointed consultant.

This has been escalated to ensure successful completion of the plan.

Ongoing

Facilitate and oversee collaborative procurement contracts for north east local government and alpine resorts:

• Metal

• Tyres

• Mattresses

• Gas bottles

• Alpine Resort recycle and garbage bags

• Electronic waste

Other infrastructure or service identified.

Regional contracts facilitated by North East WRRG in 18/19 include:

• Collection and recycling of metals;

• Shredding of garden and timber waste.

• Collection and recycling of mattresses

• Contract management and continuous improvement with five meetings held throughout the year.

Ongoing

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2017-18

Priority Area 4: Statutory and Strategic Land Use Planning

Objective: North East WRRG to contribute to State-led work on buffers and encroachment to new and existing waste and resource recovery facilities.


Work with Local Government/DELWP Alpine Planning to establish a procedure to ensure that regard is given to the implementation plan when considering planning permit applications for new waste and resource recovery infrastructure and/or development which may encroach upon buffers of existing waste and resource recovery facilities.

North East WRRG together with Metro worked with the LG planning officers and held:

• Two trainings; and

• One workshop.

A report was commissioned detailing planning zones and risks throughout the north east resource recovery industry.

Local government are encouraged to include resource recovery facilities within the policy section of the planning schemes. Template texts have been provided.

Two high priority facilities have been identified for further planning scheme amendment work.

Further work to support planning scheme amendment processes was not possible due to lack of funding

Ongoing ✓

Support industry and Local Government/Alpine Resorts to identify possible sites for new resource recovery infrastructure.

Continuing to support Local Government and industry as need arises.

Ongoing ✓

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2017-18

Priority Area 5: Stakeholder Relationships

Objective: To maintain and expand stakeholder relationships with local and State government, alpine resorts, industry and the community:


Support Local Government Waste Forum and Technical Advisory Sub-Committee (TAS) meetings incorporating WRRIP priority areas

Four Local Government Waste Forum meetings.

Local Government Waste and Resource Recovery Tour.

Six TAS meetings.

Delivery of Local Government Funded Projects Program.

Completed ✓

Support the delivery of the annual Local Government /Alpine Resorts Funded Project Program.

School Environment Education Directory (SEED). Completed ✓

ResourceSmart Schools (RSS) Program. Completed ✓

The Living Bin Program. Completed ✓

Training & Tour – LG Forum annual tour. Completed ✓

Training & Tour - Support for a waste management strategy template.

Completed ✓

Improving operations and increasing resource recovery of aggregate/masonry/soils (AMS).

Ongoing

Regional Optimisation Study Ongoing

Conduct an evaluation with the LG Waste Forum/TAS to evaluate the effectiveness and positive outcomes for the members and regions.

Annual LG Forum survey was conducted in December 2018 and presented to the forum at the December 2018 meeting for discussion and future implementation.

Completed ✓

Facilitate discussions with stakeholders (Local Govt./Alpine Resorts/Industry) and provide relevant information for the aggregation, consolidation, infrastructure and market development opportunities for priority materials.

A product improvement study was completed by Randell Consulting across North East WRRG partners at the end of 2018.

The study was presented to the LG Forum in December 2018.

The study resulted in the current AMS & GTW project.

Completed ✓

Promote the strategic directions of the north east implementation plan to the waste and resource recovery industry in the region.

There has been very active participation at the quarterly forum meetings held and ongoing discussions with Council and alpine resort partners.

Ongoing

Support the hosting and delivery of SEED program across the NE region.

Three SEED days held.

Four newsletters distributed.

Website maintained and up to date, 8750 visits annually.

Completed / ongoing

✓

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2017-18

Priority Area 6: Regional Input into State Direction

Objective: To ensure regional and local input into state waste and resource recovery policy and guidance documents.


Provide input into state waste and resource recovery policy and guidance documents

North East WRRG has participated in the consultation process of several state policy developments and distributes relevant information to its stakeholders in supporting the consultation process.

• E-waste ban to landfill.

• Reducing plastic pollution.

• Turning waste into energy.

• Victorian Strategic Plan for Industry Transition (Recycling Markets).

Interim Waste Policy and ‘Management and Storage of Combustible Recyclable and Waste Material Guideline’.

Completed / ongoing

✓

Work with the LGWF and TAS to identify key regional issues impacting on the delivery of the Waste and Resource Recovery Implementation Plan

North East WRRG has:

• Collected information and data from Councils and Alpine Resorts concerning their services to inform State Government discussions and action in relation to the recycling industry and export issue.

• Coordinated the consolidation of RRC/TS self-assessment audits conducted by Councils and Alpine Resorts in relation to the Combustible Recyclables and Waste Material Guideline (EPA). Information will be used to inform infrastructure and operation needs to meet compliance.

North East WRRG continues to facilitate discussions with Councils and Alpine Resorts about the Closed Landfill Assessment Tool (EPA).

Completed / ongoing

✓

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Work with portfolio partners, local councils and the alpine resorts within resource constraints, to facilitate the introduction of the proposed E-waste ban from landfills.

North East WRRG continues to facilitate discussion with Councils and Alpine Resorts and portfolio partners on the preparations for introduction of the E-waste ban to landfill.

Completed / ongoing

✓

Work across State government to agree on an integrated data system/platform.

North East WRRG have participated in State-wide data working groups and have liaised directly with SV’s data lead.

Scoping work has started on the 19/20 project to undertake a data program designed to assist Councils and Alpine Resorts with the consistent gathering of data and its ability to feed back into the State’s platform.

Ongoing

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Priority Area 7: North East WRRG Governance and Operations

Objective: To maintain effective governance and operational systems for the North East WRRG.


Charter of Corporate Governance, policies and guidelines reviewed and maintained

A policy development and review program has been approved and implemented.

Charter of Corporate Governance scheduled for review (October 2019).

Completed / ongoing

✓

Terms of Reference (ToR) for the Audit Committee, Local Government Waste Forum (LG Waste Forum) and Technical Advisory Committee (TAS) reviewed

Audit committee ToR reviewed in June 2018 (next review June 2021).

LG Waste Forum ToR reviewed in February 2017 (next review February 2021).

TAS ToR reviewed in August 2017 (next review August 2019).

Completed / ongoing

✓

Risk register reviewed and maintained Risk register referred to at all Board meetings, providing opportunity for ongoing update. Reviewed annually in accordance with policy.

Completed / ongoing

✓

Board meetings held minimum of five times per annum

Eight meetings held. Completed ✓

Audit Committee meetings held at least three times per annum.

Four Audit Committee meetings held. Completed ✓

Submit progress and final reports to acquit project funding in line with funding agreements.

Regional waste and resource recovery plans and infrastructure development program.

Final report and program evaluation submitted in accordance with funding agreement.

Completed ✓

Preparation and submission of annual Business Plan.

Approved Business Plan (2018 to 2021). Completed ✓

Preparation and submission of DELWP and/or Department of Finance and Treasury reports as requested. Including Mid-Year and Annual Financial Reports.

Submitted as requested. Completed / ongoing

✓

Submission of Annual Report. Approved Annual Report 2018-19. Completed ✓

Undertake staff goal setting and performance reviews.

Two staff performance review and performance plans set for 2018-19.

Two staff performance reviews not conducted due to absence.

All staff undertook risk training with VMIA.

Completed ✓

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2017-18


Undertake board goal setting and performance review

Annual board performance survey completed in December 2018.

Next scheduled for December 2019.

Completed / ongoing

✓

Undertake board self-assessment following each board meeting.

Board nominate a lead director to undertake the self-assessment after every board meeting

Completed / Ongoing

✓

Monitor alignment with Statement of Expectations

Reported on progress at each board meeting.

Identified compliance deficiencies reported at each board meeting. There were no material compliance deficiencies reported for the period.

Completed / ongoing

✓

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2017-18

Priority Area 8: Shared Services

Objective: To continue to work collaboratively with Waste and Resource Recovery Groups and other agencies across the state to implement agreed shared service arrangements which deliver organisational efficiencies and cost benefits to the North East WRRG.


Participate in shared service arrangement and ongoing discussions for future opportunities

North East WRRG:

• Participates in Shared Services working group.

• Utilises HR services.

• North East WRRG has received $90,000 to support projects in 2018-19 through the Collaborative Procurement fund.

• North East WRRG has supported the Planning program lead by MWRRG.

Completed / ongoing

✓

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2017-18

2.9 Five-year financial summary

ITEM 2018-19 ($) 2017-18 ($) 2016–17 ($) 2015–16 ($) 2014–15($) *

Landfill levy 621,360 562,058 552,984 576,240 307,182

Regional Projects and grants 157,991 265,000 267,287 484,524 411,501

Member contributions 136,838 140,413 141,755 133,217 134,927

Interest income 10,686 7,669 6,717 8,159 4,495

TOTAL REVENUE 926,875 975,140 968,743 1,202,140 858,105

Administration 187,091 148,600 171,700 136,622 130,363

Employee costs 386,249 459,491 514,685 588,696 356,466

Regional program costs 155,423 96,944 244,686 297,126 297,724

Depreciation & amortisation 7,247 7,025 10,349 10,630 7,606

TOTAL EXPENDITURE 736,010 712,060 941,420 1,033,074 792,159

Current Assets 950,737 824,278 501,226 491,420 299,737

Non-current assets 30,022 33,207 20,708 29,123 33,682

TOTAL ASSETS 980,759 857,485 521,934 520,543 333,419

Current Liabilities 113,119 169,210 94,519 125,958 104,178

Non-current liabilities 126 11,626 16,045 11,110 14,832

TOTAL LIABILITIES 113,245 180,836 110,564 137,068 19,010

* The reporting period for 2014-15 is only 11 months.

Table 2: Performance against budgetary objectives for the reporting period 2018-19

INCOME BUDGET ($) ACTUAL ($)

Landfill Levy 621,360 621,360

Interest Income 5,004 10,686

Member Contributions 140,000 136,838

Grants and projects 105,000 157,991

TOTAL INCOME 871,364 926,875

EXPENSES BUDGET ($) ACTUAL ($)

Administration 183,125 187,091

Employee Costs 375,535 386,249

Regional Program costs 376,200 155,423

Depreciation 6,000 7,247

TOTAL EXPENSES 940,860 736,010

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Additional grant income was gained than forecast as a result of the e-waste ban implementation work.

Additional employee costs were the result of a back pay required due to the introduction of the new EBA along with back pay attached to performance reviews that had not been considered in previous periods.

There is a variance in Regional Program costs due to staff resourcing constraints resulting from extended periods of unplanned leave that inhibited the delivery of several key projects. Some regional program costs were captured in employee costs.

2.10 Current year financial review

Significant changes in financial position

There were no significant changes or factors which affected our financial performance during the reporting period. During this reporting period, we have been advised that future income may decline.

Significant changes or factors affecting performance

Extended periods of unplanned staff leave had a detrimental impact on the performance of the organisation during this period. The organisation is very small with less than 3.5 f/t equivalent staff which means there is limited flexibility to carry extended periods of unplanned leave.

Confirmation of budget available for the organisation was not provided until well into the new financial year (late September 2018). This is an ongoing challenge in terms of planning productively for the achievement of objectives.

2.11 Capital projects

The North East WRRG does not manage any capital projects.

2.12 Disclosure of grants and transfer of payments

The North East WRRG did not provide grants to other organisations during the reporting period.

2.13 Subsequent events

There were no events occurring after balance date which may significantly affect the North East WRRG's operations in subsequent reporting periods.

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GOVERNANCE AND ORGANISATIONAL STRUCTURE

3.1 Organisational structure

NORTH EAST WASTE AND RESOURCE RECOVERY GROUP ORGANISATIONAL CHART AT 30 JUNE 2019

NORTH EAST WASTE & RESOURCE RECOVERY GROUP

BOARD Veronica Schilling (Chair)

Anthony Griffiths (Deputy Chair)

Alan Clark

Louise Perrin

Melanie Oke

Peter Olver

Simon Kelley

AUDIT COMMITTEE

Independent Members

Matthew Fagence (Chair)

Rowan O’Hagan

Board Representative

Peter Olver

EXECUTIVE OFFICER

Kristy Kay

OTHER OFFICERS

Kathy Dodgshun (Governance and Project Officer)

Kim Mueller (Engagement and Project Manager)

Linda Anania (School Program Manager)

Richard Paschke (Planning and Procurement Manager)

NORTH EAST LOCAL GOVERNMENT WASTE

FORUM

TECHNICAL ADVISORY SUB-COMMITTEE

PERFORMANCE & REMUNERATION SUB-COMMITTEE

Veronica Schilling (Chair)

Peter Olver

Simon Kelley

Department of Environment, Land, Water and Planning

Other Waste & Resource Recovery

Groups

Sustainability Victoria

Environment Protection

Authority, Victoria

Minister for Energy, Environment and Climate Change

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3.2 Governing Board

The North East WRRG is governed by a board of directors. In accordance with section 49K of the EP Act, the North East WRRG Board is appointed by the Governor in Council on the recommendation of the Minister of Energy, Environment and Climate Change.

Of the eight directors of the board, four must be nominated in accordance with section 49B by a Local Government Waste Forum and four must be recommended by the Minister.

Following the resignation of a board member in January 2018, the decision was made in consultation with DELWP not to reappoint this position in the immediate future. This was with consideration towards the potential of a future amalgamation.

The overall role of the Board is to ensure that:

• The functions of North East WRRG are fulfilled; and

• North East WRRG establishes its governance framework and complies with that framework.

The strategic role of the Board includes planning, governance, risk management, stewardship, performance monitoring and reporting.

The North East WRRG Board is comprised of seven directors with 12 meetings held in the 2018–19 reporting period. Each director’s period of appointment and attendance record during 2018–19 is shown below.

Member Term of Appointment Appointment Attended Eligible to attend

Francesca CIANTAR* 01/08/18 to 22/01/19 Skills-based 2 5

Alan CLARKE 01/05/17 to 30/06/19 Forum-nominated 9 12

Anthony GRIFFITHS Deputy Chair

01/08/18 to 30/06/19 Skills-based 12 12

Simon KELLEY 01/08/18 to 30/06/19 Skills-based 9 12

Melanie OKE 01/08/18 to 30/06/19 Skills-based 10 12

Peter OLVER 01/05/17 to 30/06/19 Forum-nominated 12 12

Louise PERRIN 01/05/17 to 30/06/19 Forum-nominated 9 12

Veronica SCHILLING

Chair 01/05/17 to 30/06/19 Skills-based 11 12

Francesca Ciantar* appointed as a skills-based director on 1 August 2018 – resignation was effective 22 January 2019.

Biography of directors

Director Veronica SCHILLING (Chair, effective 1 May 2017)

Veronica was a former technical officer on the NevRwaste Board and was originally nominated to the Board in 2014 whilst she was the General Manager Development and Environment for Benalla Rural City Council. In 2017 the Local Government Forum nominated Veronica again in recognition of her work in rural and regional Councils both in Victoria and Queensland and experience in the sector. Her passions are in community engagement, environmental sustainability including resource recovery, recreation and events and social research.

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Veronica relocated in early 2019 to take a role with Ararat Rural City and remains the Chair of the group. Her new role as Manager Planning, Community and Compliance is responsible for waste and resource recovery strategy and kerbside collection and the new location allows her to bring more diversity to the role of Chair.

Director Anthony GRIFFITHS (Deputy Chair, term commenced 1 August 2014)

Anthony is a director and Deputy Chair of North East WRRG Board since November 2015. Anthony works for the Australian Tax Office and is also the principle of the family beef cattle enterprise at Greta West. Anthony has served three terms as a Councillor for the Rural City of Wangaratta, including being Mayor for two years. He is currently the Treasurer of the Alpine Valleys Community Leadership Program, the Treasurer of the Greta Valley Landcare Group, Committee member of the Ovens Landcare Network and a Trustee of the historic Greta Cemetery.

Previously, he was a long-standing member of the North East Catchment Management Authority Board, a former member of the North East Water Wangaratta Community Reference Group, and a member of the Victorian Ministerial Regional Community Advisory Group on the Murray Darling Basin Plan. Anthony stepped into the role of Acting Chair from October 2015 and continued until the appointment of Veronica as Chair on 30 May 2017.

Director Alan CLARK (term commenced 01 May 2017)

Alan is the Director of Infrastructure Services at the Rural City of Wangaratta. Alan has worked as a director in three councils spanning thirteen years. In each of these positions, Alan has been responsible for waste and resource recovery. Prior to working in local government, Alan was a Wine Maker and an Army Officer. Alan has qualifications in engineering, management, applied science, and chemistry. Alan is passionate about the environment and for the implementation of long-term solutions to waste minimisation and the rehabilitation of existing waste sites.

Director Louise PERRIN (term commenced 1 August 2014)

Louise was a former director on the NevRwaste Board. Currently, Louise is the Environmental Services Manager for Mt Buller / Mt Stirling Resort Management Board. Previously, Louise worked for CSIRO Wildlife and Ecology as a research scientist. Her passions are in biodiversity, especially threatened species, and sustainability, including resource recovery and the management of natural and cultural assets in alpine areas. Louise is also a member of the Mansfield Shire Environment Advisory Committee and the Recovery Team for Mountain Pygmy Possums.

This is Louise’s second term on this board.

Melanie OKE (term commenced 1 August 2018)

Melanie is a waste management professional with over 13 years’ experience. In her current role at Sustainability Victoria, she is leading the identification of new opportunities and building capability in circular economy. In her previous role at City of Melbourne, she coordinated waste and resource recovery policy and programs, leading a small team and providing advice across the organisation. She also managed the council’s waste collection and street cleaning operations for 12 months in 2014-15. Prior to joining City of Melbourne in 2009, she worked as an environmental consultant at Hyder Consulting and as a waste and litter campaign officer at Frankston City Council. She has a Bachelor of Science, Bachelor of Forest Science and a Master of Management.

While she has lived in Melbourne for many years, Melanie grew up on a small farm near Beechworth. She regularly visits the region to see her family and to go hiking in the mountains. Her passion for better waste management and her love for the North East motivated her to join the North East WRRG Board.

Director Peter OLVER (term commenced 1 May 2017)

Peter is currently a Councillor at Mansfield Shire Council. He has a passion for community and for the quality of life in the North East region and has been involved in many leadership positions with local organisations.

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Peter has worked as an engineer in building services project management, a consultant in training, enterprise and innovation, a community development strategist and in varied Educational settings. He has owned and operated several businesses and is currently involved in cattle production.

Simon KELLEY (term commenced 1 August 2018)

Simon Kelley is an Environmental Engineer with a Master’s in Economics. He has worked in the electricity generation industry for over 15 years across a range of roles, as engineer, economist, policy advocate and operations leader. Simon has a long-standing interest in the resource recovery sector, starting his professional career in the late 1990’s consulting on kerbside recycling, landfill design and electricity generation from landfill gas. With operational accountability for a number of hydro-electricity assets in North East Victoria, Simon is a keen advocate for sustainable solutions and economic development in the region.

3.3 Audit Committee

In recognition of the obligations of the Financial Management Act 1994, at a meeting held on 13 April 2015, the North East WRRG Board agreed to establish an Audit Committee.

The North East WRRG Audit Committee consists of three members in 20182019, the members of the audit committee are detailed below.

In 2018-2019, the committee met four times. Attendance of committee members is detailed in the table below.

Member Term of Appointment Appointment Attended Eligible to attend

Matthew Fagence Chair

28/10/18 to 28/10/20 Independent 3 4

Dr. Rowan O’Hagan 28/10/18 to 28/10/21 Independent 4 4

Cr. Peter Olver 27/9/18 to 27/09/21 Board Director 4 4

The role of the audit committee is to oversee and advise North East WRRG on matters of accountability and internal control affecting its operations.

The audit committee’s responsibilities are set out in Standing Direction 3.2.1.1. Key responsibilities are to include the oversight of:

• The financial performance or North East WRRG;

• The financial reporting process;

• The scope of work and performance of the internal and external auditors;

• The operation and implementation of the risk management framework;

• Matters of accountability and internal control affecting the operations of North East WRRG; and

• The effectiveness of management information systems and other systems of internal control.

Members are appointed by the board, usually for a three-year term, and are subject to the committee’s terms of reference.

Meetings are held quarterly and at any other time on request of a committee member of the internal or external auditor.

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Biography of Audit Committee members

Matthew FAGENCE (Chair)

Matthew is the Director of Finance with the Northeast Health Wangaratta and has vast experience in the areas of strategic risk management, financial and management reporting, and internal and external audit processes. Matthew is Deputy Chair of the Board, Chair of the Risk and Performance Committee and member of the Audit & Finance Committee at Aspire Support Services and is also an active member of the Bethanga Rural Fire Brigade.

Matthew is a Justice of the Peace (Qualified), holds a Master of Business Administration and Bachelor of Commerce, is a Fellow Certified Practicing Accountant (FCPA), a Certified Professional Member of the Australian Human Resources Institute (CAHRI) and a Graduate of Australian Institute of Company Directors (GAICD).

Dr. Rowan O’HAGAN

Dr Rowan O’Hagan FAICD has a background in agricultural science, regional economics and accounting. Her current directorships include Albury Wodonga Health and Coliban Water where she is Chair of the Audit Committee. Rowan has degrees in agricultural science, a doctorate from the University of Melbourne, and a Master of Accountancy from Charles Sturt University.

Rowan is a founding member of the Wangaratta Sustainability Network and the North East Regional Sustainability Alliance. Her research and consulting interests include business and capacity building in the primary industry and water sectors, climate adaptation, governance, and risk management.

She is passionate about regional Australia and committed to building vibrant and diverse regional communities through democratic decision making and access to quality services.

3.4 Remuneration Sub-Committee

At the first meeting of the new North East WRRG Board held on 8 May 2017, the Board confirmed the constitution of the Remuneration Sub-Committee.

The Remuneration Sub-Committee consists of three Directors nominated annually by the Board. Members include; Ms Veronica Schilling (Chair), Mr Simon Kelley and Cr. Peter Olver.

The Remuneration Sub-Committee has been established to provide advice to the North East WRRG board on matters relating to the Executive Officer performance and remuneration.

The responsibilities of the Remuneration Sub-Committee include:

• Assessing the performance of the Executive Officer against contracted performance criteria, utilising the internal performance review procedure and forms;

• Support the Executive Officer in ‘other staff issues’ when required;

• Make recommendations to the board on the associated annual performance increases that should be offered to the Executive Officer where applicable; and

• Be delegated responsibility for other employment matters as directed by the board.

3.5 North East Local Government Waste Forum

The EP Act requires the establishment of a Local Government Waste Forum (the Forum) to support the effective operation of the Board of North East WRRG.

The Forum consists of one councillor or officer representative from the councils and alpine resorts across the North East region. Only the nominated representative (or their nominated proxy) are eligible to vote.

The role of the Forum is to advise the North East WRRG Board on waste and resource recovery issues of significance to local government. The Forum plays an important networking role across the region, enabling

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neighbouring councils and alpine resorts to regularly share information, collaborate on projects, and undertake professional development around waste and resource recovery.

The Forum is required to nominate four council representatives to the Minister for Energy, Environment and Climate Change for appointment to the North East WRRG Board.

During the reporting period for 2018-19 the representatives to the Forum include:

Member Member council/resort Meetings attended

Eligible to attend

Georgina Boardman Mt Hotham Alpine Resort Management Board 3 5

Alan Clark* Rural City of Wangaratta 5 5

Cr. Libby Hall* Chair

City of Wodonga 5 5

Louise Perrin* Mt Buller/Mt Stirling Alpine Resort Management Board

4 5

Cr. Sarah Nicholas* Alpine Shire Council 5 5

Cr. Jenny O’Connor* Indigo Shire 5 5

Cr. Peter Olver* Mansfield Shire 3 5

Cr. Peter Tolsher*

Towong Shire 5 5

Greg Robertson / Cr. Willie Van Wersch*

Benalla Rural City 5 5

Jess Millet-Riley / Erik Harvey / Callum Brown

Falls Creek Alpine Resort Management Board 2 5

* Please be advised that if the nominate representative was unavailable to attend a proxy had attended on their behalf.

Meeting dates for the Forum for the 2018–19 year included:

Meeting dates Meeting locations

19 July 2018 Rural City of Wangaratta Council Chambers, Wangaratta

8 November 2018 Rural City of Wangaratta Council Chambers, Wangaratta

10 December 2018 Indigo Shire Council, George Kerferd, Beechworth

21 and 22 March 2019 Annual Tour

Various waste & resource recovery sites throughout Melbourne & greater region

Note: There was no formal meeting conducted with the Forum during the tour.

3.6 Technical Advisory Sub-Committee

The Forum has also established a Technical Advisory Subcommittee (TAS), which includes a membership of council and alpine resort staff involved in waste management.

The TAS investigate, make recommendations, and provide expert advice to the forum on technical matters relevant to the delivery of waste and recycling services, including matters related to policies and strategies of state and federal government.

The TAS also assist in scoping, monitoring and guiding the delivery of projects funded by the local government and alpine resorts.

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Meeting dates for the TAS for the 2018–19 year included:

Meeting dates Meeting locations

16 August 2018 Rural City of Wangaratta Council Offices, Wangaratta

11 October 2018 Rural City of Wangaratta Council Offices, Wangaratta

8 November 2018 Rural City of Wangaratta Council Offices, Wangaratta

10 December 2018 Indigo Shire Council, George Kerferd, Beechworth

14 February 2019 Rural City of Wangaratta Council Offices, Wangaratta

11 April 2019 Rural City of Wangaratta Council Offices, Wangaratta

3.7 Occupational Health and Safety

North East WRRG goal is to ensure all staff remain safe and healthy at work. North East WRRG has the appropriate Workcover policy and adopts safe work practices through the implementation of an Occupational Health and Safety (OHS) framework including:

OHS governance is regularly reviewed including a suite of documents; OHS policy and procedure, vehicle policy and procedure, working from home policy and agreements and people policy and associated procedures and forms;

Inductions, OHS is integrated into all staff inductions and risk assessments completed within the organisation;

Annual reviews of OHS risk assessment register, office safety assessment and first aid kit assessments are conducted with quarterly vehicle safety assessments;

• OHS is a standing agenda item on both board and staff meeting agendas;

• Available to staff is the Converge International Employee Assistance Program (EAP)l;

• Dedicated OHS staff noticeboard; and

Awareness training, all relevant OHS governance is refreshed annually at staff meeting agendas.

PERFORMANCE INDICATORS 2018-19 2017-18 2016-15 2015-14* 2014-15

No. of reported hazards/incidents 2 1 0 0 0

No. of lost time standard claims 1 0 0 0 0

Average cost per claim 4,655.76 0 0 0 0

Payments made to date 0 NA NA NA NA

Outstanding claims NA NA NA NA NA

* The reporting period for 2014-15 is only 11 months.

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WORKFORCE DATA

4.1 Public Sector Values and Employment Principles

The public sector values as outlined in the Public Administration Act 2004 include:

• Responsiveness;

• Integrity;

• Impartiality;

• Accountability;

• Respect;

• Leadership; and

• Human rights.

North East WRRG is committed to the public sector values, employment and conduct principles of merit and equity as covered under the Public Administration Act 2004, including:

• Decisions are based on merit;

• Employees are treated fairly and reasonably;

• Equal employment opportunity is provided;

• Reasonable avenues of redress against unfair or unreasonable treatment;

• Human rights as set out in the Charter of Human Rights and Responsibilities Act 2006 are upheld; and

• The fostering of public service careers.

North East WRRG has introduced policies and practices that are consistent with the public sector employment standards and values, and provide for fair treatment, career opportunities, and the early resolution of workplace issues. Through policy reviews and the governance plan , North East WRRG keeps its employees informed of changes and updates, provides guidance on how to avoid conflicts of interest, how to respond to offers of gifts, and how it deals with misconduct.

North East WRRG is committed to the principles of equal employment opportunity and the establishment and maintenance of a non-discriminatory work environment.

North East WRRG aims to ensure that all persons are assessed solely based on merit with respect to recruitment, promotion and access to training and other programs and facilities. This approach reflects North East WRRG’s desire to have a workplace free from discrimination, where each person has the opportunity to progress to the extent of their ability and the needs of the organisation.

4.2 Workforce data

On 30 June 2019 North East WRRG employed five staff (3.23 full time equivalent), compared to five staff (4.03 full time equivalent) on 30 June 2018.

The proportion of women was 75%, compared to 75% on 30 June 2018.

Employees have been correctly classified in workforce data collections.

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ITEM 2018-19 2017-18

Classification Number

(Headcount) FTE

Number (Headcount)

FTE

Men 1 0.6 1 1

Women 4 2.63 4 3.03

Part Time 4 2.23 2 1.03

Full Time 1 1 3 3

Casual 0 0 0 0

Total Employees 5 3.23 5 4.03

Senior Management (salary greater than $120,000)

0 0 1 1

Age: up to 34 0 0 0 0

Age: 35-plus 5 5 5 5

VPS 5 2 1.6 2 2

VPS 4 2 1.03 2 1.03

GSERP 1 0.6 1 1

Notes:

• All figures reflect employment levels during the last full pay period in June of each year.

• Excluded are those on leave without pay or absent on secondment, external contractors/consultants and temporary staff employed by employment agencies.

• Classifications used: VPS 5 – refers to Managers, VPS 4 refers to Officers, GSERP refers to Executive Management.

4.3 Executive Officer disclosure

The following outlines the Executive Officer data for the North East WRRG:

DESCRIPTION 2018-19 2017–18 2016–17 2015-16

No. of Executive Officers 1 1 1 1

No. of Executive Officers with a Total Remuneration Package over $100,000

1 1 1 1

Total no. of Executive Officers that were reported in the Government Sector Executive Remuneration Panel annual survey

1 1 1 1

As of 30 June 2019, there was one Executive Officer employed. Throughout the 2018–19 period there was a changeover of Executive Officer’s resulting in the organisation employing two Executive Officers throughout this period:

• Cydoni Edwards, Executive officer (commenced 8 February 2018 – 15 January 2019).

• Gavin Cator, Interim Executive Officer – employed as a contractor between these two periods.

• Kristy Kay, Executive Officer (commenced 29 April 2019 – current).

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OTHER DISCLOSURES

5.1 Local Jobs First

The Victorian Industry Participation Policy (VIPP) aims to foster industry development by encouraging Victorian government departments and public bodies to genuinely consider Victorian, Australian, and New Zealand supply.

The VIPP applies to tenders of $3 million or more in metropolitan Melbourne and $1 million or more in regional Victoria. There were no contracts over $1 million awarded by North East WRRG during the 2018–19 reporting period.

5.2 Government advertising expenditure

The North East WRRG’s advertising expenditure in the 2018–19 reporting period on government campaign expenditure did not exceed $100,000.

5.3 Consultancy expenditure

Details of consultancies (valued at $10,000 or greater)

In 2018–19, there were three consultancies where the total fees payable to the consultants were $10,000 or greater. The total expenditure incurred during 2018–19 in relation to these consultancies is $198,677 (excl. GST).

Details of individual consultancies are detailed in the table below:

CONSULTANT PURPOSE OF

CONSULTANCY START DATE END DATE

TOTAL APPROVED

PROJECT FEE

(excl. GST) $

EXPENDITURE 2018-2019

(excl. GST) $

FUTURE EXPENDITURE

(excl. GST) $

Findex Accounting 01/07/18 30/06/19 43,000 51,845 50,000

Blue Environment Investigation into food and timber waste from retail sector – ROS

29/11/18 15/11/19 76,150 67,600 0

Blue Environment Regional collaborative procurement strategy

30/10/18 15/11/19 60,000 31,938 0

GG People Pty Ltd Interim Executive Officer 21/01/19 28/4/19 $1,200 weekly 25,760.72 0

GG People Pty Ltd Support position 29/4/19 Ongoing $1,200 weekly 21,533,10 $15,000

Detail of consultancies (valued at less than $10,000)

In 2018-19, there were five consultancies engaged during the year, where the total fees payable to the consultants was less than $10 000. The total expenditure incurred during 2018-19 in relation to these consultancies was $31,559 (excl. GST).

5.4 Information and Communication Technology expenditure

For the 2018–19 reporting period, North East WRRG had a total Information and Communication Technology (ICT) expenditure of $0.

‘ICT expenditure’ refers to North East WRRG’s costs in providing business enabling ICT services.

5.5 Major contracts

North East WRRG did not enter into any major contracts during 2018-19.

A ‘major contract’ is a contract entered into during the reporting period valued at $10 million or more.

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5.6 Freedom of Information

North East WRRG is a State Statutory Agency under the Environment Protection Act 1970, and so is a ‘Government Agency’ under the terms of the Freedom of Information Act 1982.

The North East WRRG Board has determined that the Authorised Officer is the Executive Officer.

The Freedom of Information Act 1982 (the Act) allows the public a right of access to documents held by North East WRRG. The purpose of the Act is to extend as far as possible the right of the community to access information held by government departments, local councils, Ministers and other bodies subject to the Act.

An applicant has a right to apply for access to documents held by North East WRRG. This comprises documents both created by North East WRRG or supplied to North East WRRG by an external organisation or individual, and may also include maps, films, microfiche, photographs, computer printouts, computer discs, tape recordings and videotapes. Information about the type of material produced by North East WRRG is available on North East WRRG’s website under its Part II Information Statement.

Information available includes details of consultancies and contractors, including consultants/contractors engaged, services provided, and expenditure committed for each engagement. These details have been included in the above report.

The Act allows North East WRRG to refuse access, either fully or partially, to certain documents or information. Examples of documents that may not be accessed include cabinet documents; some internal working documents; law enforcement documents; documents covered by legal professional privilege, such as legal advice; personal information about other people; and information provided to [Agency name] in-confidence.

From 1 September 2017, the Act has been amended to reduce the Freedom of Information (FoI) processing time for requests received from 45 to 30 days. However, when external consultation is required the processing time automatically reverts to 45 days. Processing time may also be extended by periods of 30 days, in consultation with the applicant. With the applicant’s agreement this may occur any number of times.

If an applicant is not satisfied by a decision made by [Agency name], under section 49A of the Act, they have the right to seek a review by the Office of the Victorian Information Commissioner (OVIC) within 28 days of receiving a decision letter.

Making a request

FoI requests can be lodged online at www.foi.vic.gov.au. An application fee of $29.60 applies. Access charges may also be payable if the document pool is large, and the search for material, time consuming.

Access to documents can also be obtained through a written request to North East WRRG’s Freedom of Information Officer, as detailed in s17 of the Freedom of Information Act 1982.

When making an FoI request, applicants should ensure requests are in writing, and clearly identify what types of material/documents are being sought.

Requests for documents in the possession of North East WRRG should be addressed to:

Freedom of Information Ms. Kristy Kay, Executive Officer

North East Waste & Resource Recovery Group

Wangaratta Government Centre,

Level 3, 62–68 Ovens St, WANGARATTA VIC 3676.

Email: [email protected]

Freedom of Information Statistics

During 2018-19, North East WRRG received no requests under the Freedom of Information Act 1982.

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http://www.foi.vic.gov.au/

mailto:[email protected]

Further Information

Further information regarding the operation and scope of Freedom of Information; regulations made under the Act; and www.foi.vic.gov.au.

5.7 Compliance with the Building Act 1993

North East WRRG does not own or control any government buildings and consequently is exempt from notifying its compliance with the building and maintenance provisions of the Building Act 1993.

5.8 Competitive Neutrality Policy

Competitive neutrality requires government businesses to ensure where services compete, or potentially compete with the private sector, any advantage arising solely from their government ownership be removed if it is not in the public interest. Government businesses are required to cost and price these services as if they were privately owned. Competitive neutrality policy supports fair competition between public and private businesses and provides government businesses with a tool to enhance decisions on resource allocation. This policy does not override other policy objectives of government and focuses on efficiency in the provision of service.

North East WRRG continues to comply with the requirements of the Competitive Neutrality Policy.

5.9 Protected Disclosures Act 2013

The Protected Disclosure Act 2013 (PD Act) enables people to make disclosures about corrupt or improper conduct by public officers and public bodies.

North East WRRG is a public body for the purposes of the PD Act.

What is a protected disclosure?

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

“Improper or corrupt conduct” involves substantial mismanagement of public resources; risk to public health or safety or the environment; or corruption.

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

How do I make a Protected Disclosure?

You can make a protected disclosure about North East WRRG or its board members, officers or employees by contacting IBAC (details below).

North East WRRG is not able to receive protected disclosures.

North East WRRG has established procedures for the protection of persons from detrimental action in reprisal

for making a protected disclosure about North East WRRG, its board members or its employees. You can

access North East WRRG procedures by contacting the organisational office on (03) 5722 9498 or at

https://www.newrrg.vic.gov.au/protected-disclosures/ .

Contacts

Independent Broad-Based Anti-Corruption Commission (IBAC) Victoria.

Address: Level 1, North Tower, 459 Collins Street, Melbourne Victoria 3000.

Mail: IBAC, GPO Box 24234, Melbourne Victoria 3001

Internet: www.ibac.vic.gov.au

Phone: 1300 735 135

Email: See the website above for the secure email disclosure process, which also provides for anonymous disclosures.

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http://www.foi.vic.gov.au/

https://www.newrrg.vic.gov.au/protected-disclosures/

http://www.ibac.vic.gov.au/

5.10 Office based environmental impacts

North East WRRG employs five staff that operate from a leased premise in Wangaratta.

North East WRRG is committed to leading by example in promoting and maintaining the principles of sustainability within its office environment through:

• Teleconferencing and skype – these options are being used more frequently to avoid unnecessary business travel.

• Advocates for the purchase of recycled content products.

• Train travel and carpooling – these options are preferred where possible for meetings in Melbourne or to attend conferences.

We are committed to tracking our resource use where data is available. The following table outlines our resource use for 2018–19:

ENVIRONMENTAL ASPECTS DESCRIPTION UNIT OF

MEASURE 2018-2019 2017-18

Electricity

(AGL Electricity Limited) Power supply kWh 11,929.39 11,206.70

Gas (AGL Sales Pty Ltd) Gas supply Mj 38,617.05 41,716.67

Water (North East Water) Water supply kL 34.25 488.23

Paper

(100% recycled content)

Use per FTE

Total paper usage

Reams

Reams

6.19

20

4.96

20

Car use Total distance travelled Kilometres 8,489 15,641

Train travel Trip equals one way to Melbourne

Car use saved by train travel

Number of trips

Kilometres

9

2,259km

3

65km

5.11 Compliance with DataVic Access Policy 2012

Consistent with the Victorian Government’s DataVic Access Policy (2012), which enables the sharing of Government data at no, or minimal, cost to users. Government data from all agencies will be progressively supplied in a machine-readable format that will minimise access costs and maximise use and reuse.

The North East WRRG has not provided any information in the required format as part of the DataVic Access Policy.

5.12 Additional information availabie on request

In compliance with the requirements of the Standing Directions of the Assistant Treasurer, details in respect of the items listed below have been retained by North East WRRG and are available (in full) on request, subject to the provisions of the Freedom of Information Act 1982:

(a) details of publications produced by North East WRRG about itself, and how these can be obtained;

(b) details of any major external reviews carried out on North East WRRG;

(c) details of major research and development activities undertaken by North East WRRG;

(d) details of major promotional, public relations and marketing activities undertaken by North East;

WRRG to develop community awareness of the entity and its services; and

(e) details of changes in prices, fees, charges, rates and levies charged.

The information is available on request from:

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North East WRRG Executive Officer by phone or writing:

North East Waste & Resource Recovery Group

Wangaratta Government Centre,

Level 3, 62–68 Ovens St, WANGARATTA VIC 3676.

Phone: (03) 57229498

Additional information included in annual report

Details in respect of the following items have been included in North East WRRG’s annual report, on the pages indicated below:

(f) assessments and measures undertaken to improve the occupational health and safety of

employees on page 29;

(g) a list of North East WRRG’s major committees, the purposes of each committee, and the extent

to which the purposes have been achieved on pages 22 to 28;

(h) a statement of completion of declarations of pecuniary interests by relevant officers on page 43

and 50.

Information that is not applicable to North East WRRG

The following information is not relevant to North East WRRG for the reasons set out below:

(i) a declaration of shares held by senior officers (No shares have ever been issued in North East

WRRG).

(j) details of overseas visits undertaken (No board members or senior executives took overseas work-

related trips).

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FINANCIAL MANAGEMENT COMPLIANCE ATTESTATION

I, Veronica Schilling, on behalf of the Responsible Body, certify that North East Waste & Resource Recovery Group has complied with the applicable Standing Directions of the Assistant Treasurer under the Financial Management Act 1994 and Instructions.

Ms Veronica Schilling

Chairperson


23 August 2019

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FINANCIAL STATEMENTS

6.1 Accountable Officer’s declaration

Financial Auditing

Financial auditing is under the control of the Victorian Auditor-General’s Office. That office appointed

Ryan Schischka of Johnsons MME as the audit service provider in respect to the audit of the Group’s

financial statements for the period ended June 30, 2019.

Declaration under Direction 9.1.3(iv) of the Financial Management Act 1994

In accordance with Direction 9.1.3(iv) of the Financial Management Act 1994, North East WRRG will

make all relevant information, such as declarations of pecuniary interest and details of overseas visits

etc, available to the Minister on request.

6.2 Report on the utilisation of landfill levy funds received

In 2018–19, North East WRRG received $621,360 in direct funding from the landfill levy funding.

These funds were utilised to maintain the core costs of the organisation. The core costs of the organisation are greater than the levy received, this is outlined below:

EXPENSE

Administration Expense 187,091

Employee costs 386,249

Total 573,340

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Comprehensive Operating Statement

For the Year Ended 30 June 20192019 2018

Note $ $

Income from transactions

Member contributions 2.2 136,838 140,413

Landfill levy 2.3 621,360 562,058

Regional projects and grant funding 2.4 156,991 240,000

Interest income 10,686 7,669

Other income 1,000 25,000

Total income from transactions 926,875 975,140

Expenses from transactions

Administration 3.2 187,091 148,600

Employee costs 3.3 386,249 459,491

Regional program costs 155,423 96,944

Depreciation 4.1(a) 7,247 7,025

Total expenses from transactions 736,010 712,060

Net result from transactions 190,865 263,080

Other economic flows included in net result

Net gain on disposal of non-financial assets - 2,199

Net Result 190,865 265,279

Comprehensive result 190,865 265,279

The above statement should be read in conjunction with the Notes to the financial statements

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Balance Sheet

As at 30 June 20192019 2018

Note $ $

Assets

Current Assets

Cash and cash equivalents 6.3 728,031 669,778

Trade and other receivables 5.1 214,107 147,208

Other assets 8,599 7,292

Total Current Assets 950,737 824,278

Non-Current Assets

Furniture, fixtures and fittings and motor vehicles 4.1 30,022 33,207

Total Non-Current Assets 30,022 33,207

Total Assets 980,759 857,485

Liabilities

Current Liabilities

Trade and other payables 5.2 50,524 105,317

Employee benefits 3.4 62,595 63,893

Total Current Liabilities 113,119 169,210

Non-Current Liabilities

Employee benefits 3.4 126 11,626

Total Non-Current Liabilities 126 11,626

Total Liabilities 113,245 180,836

Net Assets 867,514 676,649

Equity

Contributed Capital 148,463 148,463

Accumulated surplus 719,051 528,186

Total Equity 867,514 676,649


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North East Waste and Resource Recovery GroupABN: 27 805 031 612

Statement of Changes in Equity

For the Year Ended 30 June 2019

2018Contributed

Capital

Accumulated

SurplusTotal

Note $ $ $

Balance at 1 July 2017 148,463 262,907 411,370

Net result from transactions for the year - 263,080 263,080

Net gain on disposal of non-financial assets - 2,199 2,199

Total comprehensive result for the year - 265,279 265,279

Balance at 30 June 2018 148,463 528,186 676,649

2019Contributed

Capital

Accumulated

SurplusTotal

Note $ $ $

Balance at 1 July 2018 148,463 528,186 676,649

Net result from transactions for the year - 190,865 190,865

Total comprehensive result for the year - 190,865 190,865

Balance at 30 June 2019 148,463 719,051 867,514


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Cash Flow Statement


2019 2018

Note $ $

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from landfill levy 606,535 559,789

Receipts from regional projects and grants 110,629 266,500

Receipts from member contributions 138,470 145,705

Net GST received/(paid) (15,833) 20,023

Payments to suppliers and employees (789,172) (680,858)

Interest received 10,686 7,669

Other receipts 1,000 25,000

Net cash provided by operating activities 6.4 62,315 343,828

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of furniture, fixtures and fittings and motor vehicles - 12,727

Purchase of furniture, fixtures and fittings and motor vehicles 4.1 (4,062) (30,052)

Net cash from/(used by) investing activities (4,062) (17,325)

Net increase/(decrease) in cash and cash held 58,253 326,503

Cash and cash equivalents at beginning of financial year 669,778 343,275

Cash and cash equivalents at end of financial year 6.3 728,031 669,778


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Notes to the Financial Statements


Note 1 About this report

Basis of accounting

The financial statements were authorised for issue by the board of NEWRRG via its authorised officer on 23 August 2019

The registered office of the group is: The principal place of business is

North East Waste and Resource Recovery Group North East Waste and Resource Recovery Group

62-68 Ovens Street 62-68 Ovens Street

Wangaratta VIC 3677 Wangaratta VIC 3677

Compliance information

The most significant accounting estimates undertaken in preparation of this financial report relate to:

• estimation of useful life; and

• employee benefit provisions

The financial statements are presented in Australian dollars, which is the NEWRRG’s functional and presentation currency.

Note 2 Funding delivery of our services

2019 2018

Note 2.1 Summary of income that funds the delivery of our services $ $

Note

Member contributions 2.2 136,838 140,413

Landfill levy 2.3 621,360 562,058

Regional projects and grant funding 2.4 156,991 240,000

Interest income 10,686 7,669

Other Income 1,000 25,000

926,875 975,140

Note 2.2 Member contributions

Member contributions revenue is received from the seven municipal districts and three Alpine resort management areas in North East Victoria.

Note 2.3 Landfill levy

The North East Waste and Resource Recovery Group (NEWRRG) is a statutory agency of the state of Victoria, established on 1 August 2014 by section 49C(1) of the

Environment Protection Act 1970.

The financial report of North East Waste and Resource Recovery Group (NEWRRG) is a general purpose report that consists of a Comprehensive Operating Statement,

Balance Sheet, Statement of Changes in Equity, Cash Flows Statement and notes accompanying these statements. The general purpose financial report complies with

Australian Accounting Standards and Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the

Financial Management Act 1994 and applicable Ministerial Directions (FRD).

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information

about transactions, events and conditions. Where applicable, those paragraphs of the Australian Accounting Standards applicable to not-for-profit have been applied.

The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected

non-current assets. The accounts have been prepared on a going concern basis.

In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset is expected to be realised or paid. The asset or

liability is classified as current if it is expected to be turned over within the next twelve months, being the group’s operational cycle see 3.4 for a variation in relation to employee

benefits.

The preparation of financial statements in conformity with Australian Accounting Standards and FRD’s requires management to make judgements, estimates and assumptions

about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical

experience and various other factors that are believed to be reasonable in the circumstances, the results of which form the basis of making the judgements. Actual results may

differ from the estimates.

Revenue is recognised when the amount of revenue can be measured reliably, it is probable that economic benefits associated with the transactions will flow to NEWRRG and

specific criteria relating to the type of revenue as noted below, has been satisfied.

NEWRRG's purpose is to work with seven municipal districts and three alpine resort management areas in North East Victoria, the Victorian Government environment portfolio

and the regional waste and recovery groups, industry, business and the community to plan, facilitate and deliver an integrated and sustainable waste and resource recovery

system.

Landfill levy revenue is received via a Ministerial Determination in accordance with case 70E of the Environment Protection Act 1970 and distributed by the Department of

Environment, Land, Water and Planning (hereafter DELWP). The Ministerial Determination provides for a yearly allocation to be distributed. The final quarterly payment has

been reflected as a receivable for the financial year by NEWRRG.

Revenue from landfill levies is recognised on receipt or when an entitlement to receive is established, whichever is sooner.

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

Revenue from contributions is recognised on receipt or when an entitlement to receive is established, whichever is sooner.

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Note 2.4 Regional projects and grant funding 2019 2018

$ $

Department of Environment Land Water and Planning Funding - 225,000

SEED Core Funding 15,000 15,000

Sustainability Victoria 50,000 -

Metropolitan Waste and Resource Recovery Group 91,991 -

Total Regional Projects and Grant Funding 156,991 240,000

Note 3 Expenses incurred in delivery of services

Note 3.1 Expenses incurred in delivery of services 2019 2018

$ $

Note

Administration 3.2 187,091 148,600

Employee costs 3.3 386,249 459,491

Regional program costs 155,423 96,944

728,763 705,035

Note 3.2 Administration

Accounting, audit and bookkeeping 70,269 37,868

Catering 5,017 6,566

Cleaning/outgoings 7,516 6,754

Computer expenses 5,114 4,774

Conferences and professional development 9,584 3,167

Director expenses/allowances 34,359 25,481

General office equipment/repairs 1,093 441

Insurance 7,292 7,272

Legal fees 1,040 9,158

Membership/subscriptions 1,169 916

Motor vehicle 5,267 7,121

Office lease 12,763 13,102

Printing, postage and stationery 2,474 5,831

Stakeholder communications 11,286 2,015

Telephone and internet 3,769 4,868

Travel and accommodation 5,944 7,111

Other 3,135 6,155

Total administration 187,091 148,600

Note 3.3 Employee costs

Salaries and Wages 277,434 387,358

Employer superannuation contributions 50,017 37,494

Executive Officer Contractor Payments 47,294 -

Other 11,504 5,356

Termination benefit - 29,283

Total employee costs 386,249 459,491

Employee expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, termination payments

and WorkCover premiums.

The amount charged to the Comprehensive Operating Statement in respect of superannuation represents contributions made or due by NEWRRG to the

relevant superannuation plans in respect to the services of NEWRRG's staff (both past and present). Superannuation contributions are made to the plans

based on the relevant rules of each plan and any relevant compulsory superannuation requirements that NEWRRG is required to comply with.

This section provides an account of the expenses incurred by the NEWRRG in delivering services and outputs.

Termination benefits are payable when employment is terminated by NEWRRG before the normal retirement date, or when an employee decides to accept an offer of benefits

in exchange for the termination of employment. NEWRRG recognises termination benefits when it is demonstrably committed to either terminating the employment of current

employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary

redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

Government grants and contributions are recognised as revenue on receipt or when an entitlement is established, whichever is sooner, and disclosed in the comprehensive

operating statement as regional projects and grant funding. However, grants and contributions received from the Victorian State Government, which were originally

appropriated by the Parliament as additions to net assets or where the Minister for Finance and the Minister for Energy and Climate Change have indicated are in the nature of

owners’ contributions, are accounted for as Equity – Contributions by Owners.

Revenue recognition relating to the provision of services is determined with reference to the stage of completion of the transaction at reporting date and where outcome of the

contract can be estimated reliably. Stage of completion is determined with reference to the services performed to date as a percentage of total anticipated services to be

performed. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent that related expenditure is recoverable.

Other operating expenses generally represent the day-to-day running costs incurred in normal operations.

Supplies and services are recognised as an expense in the reporting period in which they are incurred.

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Note 3.4 Employee benefits provisions

30/06/2019 30/06/2018

CURRENT LIABILITIES $ $

Annual Leave

- Unconditional and expected to settle within 12 months 17,028 18,755

- Unconditional and expected to settle after 12 months - 3,964

- Time in lieu 677 824

Long Service Leave

- Unconditional and expected to settle within 12 months 16,273 -

- Unconditional and expected to settle after 12 months 20,436 31,860

54,414 55,403

On-cost

- Unconditional and expected to settle within 12 months 6,144 4,226

- Unconditional and expected to settle after 12 months 2,037 4,264

8,181 8,490

Total Current Provision 62,595 63,893

NON-CURRENT LIABILITIES

Long Service Leave

- Conditional and expected to settle within 12 months 115 10,572

- Conditional and expected to settle after 12 months 11 1,054

126 11,626

62,721 75,519

Reconciliation of movement in on-cost provision

Opening balance 9,544

Additional provisions recognised 5,301

Reductions arising from payments/other sacrifices of future economic benefits (6,652)

Closing balance 8,193

Current 8,181

Non-current 11

Employee benefits

Wages and salaries, annual leave and sick leave

Long service leave

Liability for long service leave (LSL) is recognised in the provision for employee benefits.

The components of this current LSL liability are measured at:

• undiscounted value ‑ if NEWRRG expects to wholly settle within 12 months; and

• present value ‑ if NEWRRG does not expect to wholly settle within 12 months.

On-costs

On‑costs such as payroll tax, workers compensation and superannuation are recognised separately within provision for employee benefits.

Note 4 Key assets available to support output delivery

Note 4.1 Furniture, fixtures and fittings, and motor vehicles 2019 2018

$ $

Furniture, fixtures and fittings

At fair value 19,459 23,442

Accumulated depreciation (13,691) (20,086)

5,768 3,356

Motor vehicles

At fair value 30,052 30,052

Accumulated depreciation (5,798) (201)

24,254 29,851

Total furniture, fixtures and fittings, and motor vehicles 30,022 33,207

The annual leave liability is classified as a current liability and measured at the undiscounted amount expected to be paid, as NEWRRG does not have an unconditional right to

defer settlement of the liability for at least 12 months after the end of the reporting period.

No provision has been made for sick leave as all sick leave is non-vesting and it is not considered probable that the average sick leave taken in the future will be greater than

the benefits accrued in the future. As sick leave is non-vesting, an expense is recognised in the Statement of Comprehensive Income as it is taken.

reporting date.

NEWRRG controls property, plant and equipment that is utilised in fulfilling its objectives and conducting its activities. They represent the resources that

have been entrusted to NEWRRG to be utilised for delivery of those outputs.

Each class of furniture, fixtures and fittings and motor vehicles is carried at fair value as indicated less, where applicable, accumulated depreciation and any impairment losses.

The liability for salaries and wages are recognised in the balance sheet at remuneration rates which are current at the reporting date. As NEWRRG expects the liabilities to be

wholly settled within 12 months of reporting date, they are measured at undiscounted amounts.

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the

Liabilities for wages and salaries (including non-monetary benefits, annual leave and on-costs) are recognised as part of the employee benefit provision as current liabilities,

because NEWRRG does not have an unconditional right to defer settlements of these liabilities.

Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where NEWRRG does not expect to settle the liability within 12 months

Conditional LSL is disclosed as a non‑current liability because there is an unconditional right to defer the settlement of the entitlement until the employee has completed the

requisite years of service. This non‑current LSL liability is measured at present value.

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Note 4.1 Furniture, fixtures and fittings, and motor vehicles (continued)

Depreciation

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation Rate Depreciation Rate

2019 2018

Motor Vehicles 18.75% (DV) 18.75% (DV)

Furniture, fixtures and fittings 10.00 - 50.00% (SL) 10.00 - 50.00% (SL)

Impairment of Assets

Fair Value

a) Movements in carrying amounts

Movement in the carrying amounts for each class of furniture, fixtures and fittings, and motor vehicles between the beginning and the end of the current

financial period:

Furniture,

fixture &

fittings

Motor vehicles Total

$ $ $

Carrying amount at 1 July 2017 7,848 12,860 20,708

Additions - 30,052 30,052

Disposal - written down value - (10,528) (10,528)

Depreciation (4,492) (2,533) (7,025)

Carrying amount 30 June 2018 3,356 29,851 33,207

Additions 4,062 - 4,062

Disposal - written down value - - -

Depreciation (1,650) (5,597) (7,247)

Carrying amount 30 June 2019 5,768 24,254 30,022

The table above also represents a reconciliation of the movement in level 3 fair value assets.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than the estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the Comprehensive Operating

Statement. For the furniture and motor vehicles, where NEWRRG is able to demonstrate that there is no evidence that reliable market-based fair value (or other fair value

indicators) exist for these assets, depreciated replacement cost could represent a reasonable approximation of fair value.

The depreciable amount of all fixed assets is depreciated using either the straight line (SL) method or diminishing value (DV) method over the asset’s useful life to NEWRRG

commencing from the time the asset is available for use.

The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised

for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and value

in use. As NEWRRG is a non-for-profit entity for reporting purposes, the value in use is the depreciated replacement cost of the asset.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or

indirectly observable; and

In addition, NEWRRG determines whether transfers have occurred between levels in the hierarchy by re assessing categorisation (based on the lowest level input that is

significant to the fair value measurement as a whole) at the end of each reporting period.

NEWRRG, monitors changes in the fair value of each asset and liability through relevant data sources to determine whether revaluation is required.

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or;

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For the purpose of fair value disclosures, NEWRRG has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability

and the level of the fair value hierarchy as explained above.

Consistent with AASB 13 Fair Value Measurement , NEWRRG determines the policies and procedures for recurring fair value measurements such as property, plant and

equipment and financial instruments and for non recurring fair value measurements such as assets held for sale, in accordance with the requirements of AASB 13 and the

relevant Financial Reporting Directions.

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Note 4.1 Furniture, fixtures and fittings, and motor vehicles (continued)

b) Fair value measurement hierarchy for assets as at 30 June 2019

Carry

amount as

at 30 June

2019

Level 1 Level 2 Level 3 Total

$ $ $ $ $

Furniture, fixtures and fittings, and motor vehicles at fair value

Furniture, fixture & fittings 5,768 - - 5,768 5,768

Motor vehicles 24,254 - - 24,254 24,254

Total of furniture, fixtures and fittings, and motor vehicles at fair value 30,022 - - 30,022 30,022

Carry

amount as

at 30 June

2018

Level 1 Level 2 Level 3 Total

$ $ $ $ $

Furniture, fixtures and fittings, and motor vehicles at fair value

Furniture, fixture & fittings 3,356 - - 3,356 3,356

Motor vehicles 29,851 - - 29,851 29,851

Total of furniture, fixtures and fittings, and motor vehicles at fair value 33,207 - - 33,207 33,207

There were no transfers between levels during the financial year.

Furniture, fixture and fittings

Furniture, Fixture and Fittings are held at fair value. When fixtures and fittings are specialised in use, such that it is rarely sold other than as part

of a going concern, fair value is determined using the depreciated replacement cost method.

Motor vehicles

Motor vehicles are valued using the depreciated replacement cost method. NEWRRG acquires new vehicles and at times disposes of them at the

end of their economic life.

There were no changes in valuation techniques throughout the period to 30 June 2019. For assets measured at fair value the current use is

considered the highest and best use.

c) Description of significant unobservable inputs to Level 3 valuations

Valuation Technique Significant unobservable inputs

Furniture, Fixture and Fittings Depreciated replacement cost Cost per unit

Useful life of furniture, fixture and fittings

Motor vehicles Depreciated replacement cost Cost per unit

Useful life of vehicles

Note 5 Other assets and liabilities

This section sets out those assets and liabilities that arose from the NEWRRG's controlled operations.

Note 5.1 Trade and other receivables2019 2018

Current $ $

Contractual

Trade receivables 210,226 145,097

210,226 145,097

Statutory

GST receivable 3,881 2,111

3,881 2,111

Total current trade and other receivables 214,107 147,208

As at 30 June 2019 all receivables are not past due and are considered to be fully recoverable.

Refer to note 7.1 (b) for the maturity analysis of receivables.

Receivables consists of:

Contractual receivables are classified as financial instruments and categorised as ‘financial assets at amortised costs’. They are initially recognised

at fair value plus any directly attributable transaction costs. NEWRRG holds the contractual receivables with the objective to collect the contractual

cash flows and therefore subsequently measured at amortised cost using the effective interest method, less any impairment. NEWRRG receivables

are generally from State or Local Government agencies.

Statutory receivables do not arise from contracts and are recognised and measured similarly to contractual receivables (except for impairment),

but are not classified as financial instruments for disclosure purposes. NEWRRG applies AASB 9 for initial measurement of the statutory receivables

and as a result statutory receivables are initially recognised at fair value plus any directly attributable transaction cost.

At balance date and during the year, there were was no expected or incurred loss as a result of receivables not being paid. There was also no provision

for impairment of receivables at 30 June 2018 that required reassessment under AASB 9.

From 1 July 2018, NEWRRG has been recording the allowance for expected credit loss for the relevant financial instruments, replacing

AASB 139’s incurred loss approach with AASB 9’s Expected Credit Loss approach. Subject to AASB 9 impairment assessment include the Group's

contractual receivables and statutory receivables.

At balance date and during the year, there were was no expected or incurred loss as a result of receivables not being paid. There was also no provision for

impairment of receivables at 30 June 2018 that required reassessment under AASB 9.

Goods and services tax (GST)

Receivables and payables in the balance sheet are shown inclusive of GST.

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less an allowance for impaired receivables.

Impairment of receivables

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating

cash flows.

Fair value measurement at end of reporting period

using:

Fair value measurement at end of reporting period

using:

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office

(ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense.

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Note 5.2 Trade and other payables2019 2018

Current $ $

Contractual

Trade payables 29,170 76,726

Sundry payables and accrued expenses 13,002 20,859

42,172 97,585

Statutory

PAYG Payable 8,352 7,732

8,352 7,732

Total current trade and other payables 50,524 105,317

Please refer to Note 7.1 (b) for the maturity analysis of trade and other payables.

Payables consist of:

The contractual payables are unsecured and are usually paid within 30 days of recognition.

Note 6 Financing our operations

Note 6.1 Capital and leasing commitments2019 2018

Operating lease commitments $ $

Minimum lease payments under non-cancellable operating leases:

‑ not later than one year 13,242 12,856

‑ between one year and five years 23,996 36,153

37,238 49,009

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor,

are charged as expenses on a straight line basis over the life of the lease term.

Note 6.2 Commitment for expenditure

There were no commitments for expenditure as at 30 June 2019 (2018: nil) other than those disclosed in note 6.1.

Note 6.3 Cash and cash equivalents 2019 2018

$ $

Cash at bank and in hand 728,031 669,778

Total cash and cash equivalents as stated in the balance sheet 728,031 669,778

Reconciliation of cash

Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items

in the balance sheet as follows: 728,031 669,778

Cash and cash equivalents 728,031 669,778

Cash and cash equivalents include cash on hand and deposits held at call with banks.

Note 6.4 Cash flow information 2019 2018

Reconciliation of cash flow from the operations with net result $ $

Net result for the period 190,865 265,279

Non-cash flows in profit

Depreciation 7,247 7,025

Net (gain)/loss on disposal of property, plant and equipment - (2,199)

Changes in assets and liabilities

(Increase)/decrease in trade and other receivables (66,899) 3,471

(Increase)/decrease in other assets (1,307) (20)

Increase/(decrease) in trade and other payables (54,793) 62,327

Increase/(decrease) in employee benefits (12,798) 7,945

Net cash flows from operating activities 62,315 343,828

This section provides information on the sources of finance utilised by the department during its operations and other information related to financing

the activities of the NEWRRG.

This section includes disclosures of balances that are financial instruments (such as borrowings and cash balances). Note 7.1 provides additional,

specific financial instrument disclosures.

• contractual payables, such as accounts payable, and unearned income. Accounts payable represent liabilities for goods and services provided to NEWRRG prior to the end

of the financial year that are unpaid, and arise when NEWRRG becomes obliged to make future payments in respect of the purchase of those goods and services; and

Contractual payables are classified as financial instruments and measured at amortised cost. Statutory payables are recognised and measured similarly to contractual

payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

• statutory payables, such as goods and services tax and fringe benefits tax payables.

Operating leases commitments consist of the lease on the office.

Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed at their nominal value and inclusive of

the goods and services tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of

significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.

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Note 7 Risks and judgement

NEWRRG is exposed to risk from its activities and outside factors. In addition, it is often necessary to make judgements and estimates associated with

recognition and measurement of items in the financial statements. This section sets out financial instrument specific judgement to be applied, which for the

NEWRRG related mainly to fair value determination.

Financial instruments

Note 7.1 Financial risk management

NEWRRG's financial instruments consist mainly of deposits with banks and payables.

The totals for each category of financial instruments, measured in accordance with AASB 9 as detailed in the accounting policies to these

financial statements, are as follows:

2019 2018

$ $

Financial assets Note

Cash and cash equivalents 6.3 728,031 669,778

Trade and other receivables 5.1 210,226 145,097

Total financial assets 938,257 814,875

Financial liabilities Note

Financial liabilities at amortised cost

-Trade and other payables 5.2 42,172 97,585

Total financial assets 42,172 97,585

Financial risk management policies

NEWRRG's overall risk management strategy seeks to assist the entity in meeting its financial targets, whilst minimising potential

adverse effects on financial performance. The Board and Executive Officer are responsible for monitoring and managing the financial

risks of NEWRRG. They monitor these risks through management meetings where reports are presented and analysed. NEWRRG does

not enter into derivative instruments and does not speculate in any type of financial instruments.

Specific financial risk exposures and management

The main risks NEWRRG is exposed to through its financial instruments are credit risk, liquidity risk and market risk relating to interest rate risk.

a) Credit risk

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contact obligations

that could lead to a financial loss to NEWRRG. NEWRRG's exposure to credit risk is through its receivables balance which relates mainly to

the grant funding receivable from Sustainability Victoria and Regional Development Victoria, the risk is not considered significant.

b) Liquidity risk

Liquidity risk arises from the possibility that NEWRRG might encounter difficulty in settling its debts or otherwise meeting its obligations

related to financial liabilities. NEWRRG manages this risk by maintaining adequate cash reserves and continually monitoring the

NEWRRG's expenditure commitments and cash flow needs.

Financial liability and financial asset maturity analysis

2019 2018 2019 2018 2018 2019 2018

$ $ $ $ $ $ $

42,172 97,585 - - - - 42,172 97,585

Total expected outflows 42,172 97,585 - - - - 42,172 97,585

Cash and cash equivalents 728,031 669,778 - - - 728,031 669,778

Trade and other receivables 210,226 145,097 - - - 210,226 145,097

Total anticipated inflows 938,257 814,875 - - - 938,257 814,875

896,085 717,290 - - - - 896,085 717,290

Weighted average effective interest rate on cash and cash equivalents is 1.53% (2018 1.51%).

c) Market risk

Market risk is the risk that changes in market prices will affect the fair value or future cash flows of NEWRRG's financial instruments.

Market risk comprises of foreign exchange risk, interest rate risk and other price risk. NEWRRG's exposure to market risk is primarily

though interest rate risk, there is no exposure to foreign exchange risk and insignificant exposure to other price risks.

Interest rate risk

Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby

a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.

Financial assets - cash flows

-

-

Net (outflow)/inflow on financial

$

Over 5 years Total

Recognition

Within 1 Year 1 to 5 years

2019

Financial liabilities due for payment

-

Trade and other payables

Financial instruments are initially measured at fair value, plus transaction costs that are directly attributable to the acquisition or the issue of the financial asset or liability.

Subsequent to initial recognition, the financial instruments are measured at amortised cost using the effective interest method less any impairment.

Objectives, policies and processes used to manage these risks are disclosed in the paragraphs below:

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Note 7.1 Financial Risk Management (continued)

Sensitivity analysis

NEWRRG has performed a sensitivity analysis relating to its exposure to interest rate risk, which is limited to its cash holdings with

financial institutions. The analysis demonstrates the potential impact on current year results and equity based on a 1% movement in interest

rates.

+1% Profit +1% Profit -1% Equity

$ $ $ $

Cash and cash equivalents 7,280 (7,280) 6,698 (6,698)

Note 8 Other disclosures

Note 8.1 Remuneration of auditors 2019 2018

$ $

Remuneration of the Victorian Auditor-General's Office for:

- auditing of financial report 6,800 6,600

Note 8.2 Ex-gratia payments

There were no ex-gratia payments paid by NEWRRG (2018: Nil)

Note 8.3 Related party transactions

NEWRRG is a wholly owned and controlled entity of the State of Victoria. Related parties of NEWRRG include:

- all key management personnel and their close family members;

- all cabinet ministers and their close family members; and

- all departments and public sector entities that are controlled and consolidated into the whole of state consolidated financial statements.

All related party transactions have been entered into on an arm's length basis.

Significant transactions with government-related entities

During the year, NEWRRG had the following government-related entity transactions:

2019 2018

$ $

Department of Environment, Land, Water and Planning 621,959 787,058

Other funding received from government-related entities 166,192 31,449

Other payments made to government-related entities (14,595) (15,550)

773,556 802,957

Key management personnel

Key management personnel of the NEWRRG include the Portfolio Minister, the Board and Executive Officer. The compensation detailed below

excludes the salaries and benefits the Portfolio Minister receives. The Minister’s remuneration and allowances is set by the Parliamentary Salaries

and Superannuation Act 1968 and is reported within the Department of Parliamentary Services’ Financial Report.

Remuneration comprises employee benefits in all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange

for services rendered, and is disclosed in the following categories:

Short-term employee benefits includes amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis

, as well as non-monetary benefits such as allowances and free or subsidised goods or services.

Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased.

Other long-term benefits include long service leave, other long service benefits or deferred compensation.

Termination benefits include termination of employment payments such as severance packages.

2019 2018

Remuneration $ $

Short term employee benefits (a) 176,213 145,288

Post-employment benefits 11,458 11,525

Other long-term benefits 2,221 1,146

Termination benefits - 29,283

Total remuneration 189,891 187,242

(a) Total remuneration paid to key management personnel employed as contractors during the reporting period have been reported

under short-term benefits.

Transactions with key management personnel and other related parties

Given the breadth and depth of State government activities, related parties transact with the Victorian public sector in a manner consistent with other member of the

public e.g. stamp duty and other government fees and charges. Further employment of processes with the Victorian public sector occur on terms and conditions

consistent with the Public Administration Act 2004 and Codes Conduct and Standards issued by the Victorian Public Sector Commission. Procurement processes

occur on terms and conditions consistent with the Victorian Government Procurement Board requirements. Outside of normal citizen type transactions with the

NEWRRG, there were no related party transactions that involved key management personnel and their close family members. No provision has been required, nor

any expense recognised, for impairment of receivables and related parties.

2019 2018

-1% Equity

This section includes additional material disclosures required by accounting standards or otherwise, for the understanding of this financial report.

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Note 8.4 Responsible persons disclosure

Responsible minister

The Hon Liliana D'Ambrosio - Minister for Energy, Environment and Climate Change (01/07/2018 to 30/06/2019)

Governing board

Directors

Veronica Schilling (Chairperson - Skills - Based Director) (01/07/18 - 30/06/19)

Alan Clark (Deputy Chairperson - Forum Representative) (01/07/18 - 30/06/19)

Anthony Griffiths (Skills - Based Director) (01/07/18 - 30/06/19)

Danny Potter (01/07/18 - 31/07/18)

Francesca Ciantar (Skills - Based Director) (01/08/18 - 22/01/19)

Louise Perrin (Forum Representative) (01/07/18 - 30/06/19)

Melanie Oke (Skills - Based Director) (01/08/18 - 30/06/19)

Peter Olver (Forum Representative) (01/07/18 - 30/06/19)

Raymond Park (01/07/18 - 31/07/18)

Simon Kelley (01/08/18 - 30/06/19)

Accountable office - executive officer

Mrs Cydoni Edwards (01/07/18 - 15/01/19)

Mr Gavin Cator (16/01/16 - 28/04/19)

Ms Kristy Kay (29/04/19 - 30/06/19)

The number of responsible persons whose remuneration from NEWRRG within the specified bands were as follows:

Income band ($) 2018 No.

0 - 9,999 9 8

10,000 - 19,999 2 -

30,000 - 39,999 - -

40,000 - 49,999 1 1

50,000 - 59,999 - 2

80,000 - 89,999 1 -

$ 189,891 $ 187,242

The remuneration of the Minister is disclosed in the financial statements of the Department of Premier and Cabinet. For

information regarding related party transactions of ministers , the register of members interests is publicly available from:www.parliament.vic.gov.au/publications/register-of-interests

There were no executives other than Accountable Officers (2018: Nil).

Note 8.5 Events after the reporting period

There have been no events that have occurred subsequent to 30 June 2019 which would, in the absence of disclosure, cause the financial

statements to become misleading.

Note 8.6 Contingencies

To the best of NEWRRG's knowledge, NEWRRG did not have any contingent liabilities or contingent assets as at 30 June 2019.

Note 8.7 Australian accounting standards issued that are not yet effective

As at 30 June 2019 the following standards and interpretations, that are relevant and applicable to NEWRRG, had been issued but were not mandatory

for the year ending 30 June 2019. NEWRRG has not and does not intend to adopt these standards early.

,

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value.

Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

Standard/Interpretation

2019 No.

Summary

Applicable for annual

reporting periods

beginning on or after

Impact on the Group

AASB 15 Revenue from Contracts with

Customers

The core principle of AASB 15

requires an entity to recognise

revenue when the entity satisfies a

performance obligation by

transferring a promised good or

service to a customer. Note that

amending standard AASB 2015 8

Amendments to Australian

Accounting Standards – Effective

Date of AASB 15 has deferred the

effective date of AASB 15 to annual

reporting periods beginning on or

after 1 January 2018, instead of 1

January 2017 for Not-for-Profit

entities.

1 Jan 2019 The changes in revenue recognition requirements in AASB

15 may result in changes to the timing and amount of

revenue recorded in the financial statements of NEWRRG.

Revenue from grants that are provided under an

enforceable agreement that have sufficiently specific

obligations, will now be deferred and recognised as the

performance obligations attached to the grant are satisfied.

a

NEWRRG receives income from seven municipal districts

and three alpine resort management areas in North East

Victoria for waste related services. All sufficiently specific

obligations are satisfied within the year the income is

received and therefore NEWRRG will recognise income as

and when services are provided.

NEWRRG also receives grant income from Metropolitan

Waste and Resource Recovery Group, Sustainability

Victoria and North East Catchment Management Authority.

There are no repayment obligations on the grant income

received from Metropolitan Waste and Resource Recovery

Group, this income will be recognised on receipt. The grant

income received from North East Catchment Management

Authority is fully expensed within the year it is received and

income will be recognised in full within the financial year.

There is a repayment obligation on the grant funding

received from Sustainability Victoria. NEWRRG will

capitalise the Sustainability Victoria grant funding income

and recognise revenue as and when stages of the relevant

projects are completed.

NEWRRG has not yet quantified the financial impact this

standard will have on future year financial results, although

based on the above assessment the impact is expected to

be minimal.

AASB 2016-8 Amendments to Australian

Accounting Standards – Australian

Implementation Guidance for Not for-

Profit Entities

AASB 2016-8 inserts Australian

requirements and authoritative

implementation guidance for not-for-

profit-entities into AASB 9 and

AASB 15.

This Standard amends AASB 9 and

AASB 15 to include requirements to

assist not-for-profit entities in

applying the respective standards to

particular transactions and events

1 Jan 2019 This standard clarifies the application of AASB 15 and

AASB 9 in a not-for-profit context. The areas within these

standards that are amended for not-for-profit application

include:

AASB 9

• Statutory receivables are recognised and measured

similarly to financial assets.

AASB 15

• The ‘customer’ does not need to be the recipient of goods

and/or services;

• The “contract” could include an arrangement entered into

under the direction of another party;

• Contracts are enforceable if they are enforceable by legal

or ‘equivalent means’;

• Contracts do not have to have commercial substance,

only economic substance; and

• Performance obligations need to be ‘sufficiently specific’

to be able to apply AASB 15 to these transactions.

Certain Accounting Standards and Interpretations have been published that are not mandatory for the year ended 30 June 2019.

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between NEWRRG and other parties,

the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the

financial statements for events which occur between the end of the reporting period and the date when the financial statements are authorised for issue, where those events

provide information about conditions which existed at the reporting date. Note disclosure is made about events between the end of the reporting period and the date the

financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period that are considered to be of material

interest.

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ABN: 27 805 031 612

Note 8.7 Australian accounting standards issued that are not yet effective (Continued)

Management does not anticipate early adoption of these Australian Accounting Standards.

AASB 16 Leases The key changes introduced by

AASB 16 include the recognition of

operating leases (which are

currently not recognised) on

balance sheet.

NEWRRG's management has completed an impact

assessment on how AASB 16 Leases will affect opening

balances for the 2020 financial year. Based on this

assessment, NEWRRG will raise an opening balance of

$123,620 for office lease right of use asset, with the

corresponding entry being for the lease liability. This

assessment has taken into account two future office lease

renewal options, which management currently plan to

exercise. The office lease is due to finish February 2032.

1 Jan 2019

AASB 1058 will replace the majority

of income recognition in relation to

government grants and other types

of contributions requirements

relating to public sector not-for-

profit entities, previously in AASB

1004 Contributions.

The restructure of administrative

arrangement will remain under

AASB 1004 and will be restricted to

government entities and

contributions by owners in a public

sector context,

AASB 1058 establishes principles

for transactions that are not within

the scope of AASB 15, where the

consideration to acquire an asset is

significantly less than fair value to

enable not-for-profit entities to

further their objective.

1 Jan 2019AASB 1058 Income of Not-for-Profit

Entities


Accounting Standards – Right of Use

Assets of Not-for-Profit entities

This standard amends various other

accounting standards to provide an

option for not-for-profit entities to

not apply the fair value initial

measurement requirements to a

class or classes of right of use

assets arising under leases with

significantly below-market terms

and conditions principally to enable

the entity to further its objectives.

This Standard also adds additional

disclosure requirements to AASB

16 for not-for-profit entities that

elect to apply this option.

1 Jan 2019 Under AASB 1058, not-for-profit entities are required to

measure right-of-use assets at fair value at initial

recognition for leases that have significantly below-market

terms and conditions.

For right-of-use assets arising under leases with

significantly below market terms and conditions principally

to enable the entity to further its objectives (peppercorn

leases), AASB 2018-8 provides a temporary option for Not-

for-Profit entities to measure at initial recognition, a class

or classes of right-of-use assets at cost rather than at fair

value and requires disclosure of the adoption.

The State has elected to apply the temporary option in

AASB 2018-8 for not-for-profit entities to not apply the fair

value provisions under AASB 1058 for these right-of-use

assets.

In making this election, the State considered that the

methodology of valuing peppercorn leases was still being

developed.

'

NEWRRG does not have any assets that are leased below

market value.


Accounting Standards – Definition of

Material

This Standard principally amends

AASB 101 Presentation of Financial

Statements and AASB 108

Accounting Policies, Changes in

Accounting Estimates and Errors.

The amendments refine and clarify

the definition of material in AASB

101 and its application by improving

the wording and aligning the

definition across AASB Standards

and other publications. The

amendments also include some

supporting requirements in AASB

101 in the definition to give it more

prominence and clarify the

explanation accompanying the

definition of material.

1 Jan 2020 The standard is not expected to have a significant impact

on the public sector.

Grant revenue is currently recognised up front upon receipt

of the funds under AASB 1004 Contributions.

The timing of revenue recognition for grant agreements

that fall under the scope of AASB 1058 may be deferred.

For example, revenue from capital grants for the

construction of assets will need to be deferred and

recognised progressively as the asset is being constructed.

The impact on current revenue recognition of the changes

is the potential phasing and deferral of revenue recorded

in the operating statement.

a

NEWRRG’s management have reviewed the income

streams which will need to be accounted for under AASB

1058 Income of Not-for-Profit Entities. NEWRRG receives

grant income from the Department of Environment, Land,

Water and Planning. There are no repayment obligations

on the grant income received from the Department of

Environment, Land, Water and Planning and there are also

no sufficiently specific obligations which NEWRRG have to

perform.

NEWRRG has not yet quantified the financial impact this

standard will have on future year financial results, although

based on the above assessment the impact is expected to

be minimal.

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NORTH EAST WASTE AND RESOURCE RECOVERY GROUP

ABN: 27 805 031 612

Accountable Officer and Chief Finance and Accounting Officer declaration

We certify the attached financial statements for the North East Waste and Resource Recovery Group have been prepared in accordance with Standing Direction 5.2 of the Financial Management Act 1994, applicable financial reporting directions, Australian Accounting Standards, including interpretations and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cashflow statement and notes to the financial statements, presents fairly the financial transactions of the North East Waste and Resource Recovery Group for the period ended 30 June 2019, and the financial position of the Group as at 30 June, 2019.

We are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.

Veronica Schilling Chairperson North East Waste and Resource Recovery Group 23rd August 2019

Kristy Kay Accountable Officer North East Waste and Resource Recovery Group 23rd August 2019

Kylie Smith Chief Finance and Accounting Officer Findex 23rd August 2019

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clare.bailey�

Stamp

Independent Auditor’s Report

To the Board of the North East Waste and Resource Recovery Group

Opinion I have audited the financial report of the North East Waste and Resource Recovery Group

(the authority) which comprises the:

• balance sheet as at 30 June 2019

• comprehensive operating statement for the year then ended

• statement of changes in equity for the year then ended

• cash flow statement for the year then ended

• notes to the financial statements, including significant accounting policies

• accountable officer and chief finance and accounting officer declaration.

In my opinion, the financial report presents fairly, in all material respects, the financial

position of the authority as at 30 June 2019 and its financial performance and cash flows for

the year then ended in accordance with the financial reporting requirements of Part 7 of the

Financial Management Act 1994 and applicable Australian Accounting Standards.

Basis for

Opinion

I have conducted my audit in accordance with the Audit Act 1994 which incorporates the

Australian Auditing Standards. I further describe my responsibilities under that Act and

those standards in the Auditor’s Responsibilities for the Audit of the Financial Report section

of my report.

My independence is established by the Constitution Act 1975. My staff and I are

independent of the authority in accordance with the ethical requirements of the Accounting

Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional

Accountants (the Code) that are relevant to my audit of the financial report in Victoria. My

staff and I have also fulfilled our other ethical responsibilities in accordance with the Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a

basis for my opinion.

Board’s

responsibilities

for the

financial

report

The Board of the authority is responsible for the preparation and fair presentation of the

financial report in accordance with Australian Accounting Standards and the Financial

Management Act 1994, and for such internal control as the Board determines is necessary

to enable the preparation and fair presentation of a financial report that is free from

material misstatement, whether due to fraud or error.

In preparing the financial report, the Board is responsible for assessing the authority’s ability

to continue as a going concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless it is inappropriate to do so.

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User103

Typewritten text

7VICTORIAN AUDITOR GENERAL OFFICE’S INDEPENDENT AUDITOR’S REPORT

2

Auditor’s

responsibilities

for the audit

of the financial

report

As required by the Audit Act 1994, my responsibility is to express an opinion on the financial

report based on the audit. My objectives for the audit are to obtain reasonable assurance

about whether the financial report as a whole is free from material misstatement, whether

due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable

assurance is a high level of assurance but is not a guarantee that an audit conducted in

accordance with the Australian Auditing Standards will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected

to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise

professional judgement and maintain professional scepticism throughout the audit. I also:

• identify and assess the risks of material misstatement of the financial report, whether

due to fraud or error, design and perform audit procedures responsive to those risks,

and obtain audit evidence that is sufficient and appropriate to provide a basis for my

opinion. The risk of not detecting a material misstatement resulting from fraud is

higher than for one resulting from error, as fraud may involve collusion, forgery,

intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit in order to design

audit procedures that are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the authority’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the Board

• conclude on the appropriateness of the Board’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material

uncertainty exists related to events or conditions that may cast significant doubt on

the authority’s ability to continue as a going concern. If I conclude that a material

uncertainty exists, I am required to draw attention in my auditor’s report to the

related disclosures in the financial report or, if such disclosures are inadequate, to

modify my opinion. My conclusions are based on the audit evidence obtained up to

the date of my auditor’s report. However, future events or conditions may cause the

authority to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the financial report,

including the disclosures, and whether the financial report represents the underlying

transactions and events in a manner that achieves fair presentation.

I communicate with the Board regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in

internal control that I identify during my audit.

MELBOURNE

6 September 2019

Paul Martin

as delegate for the Auditor-General of Victoria

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APPENDICES

APPENDIX 1: DISCLOSURE INDEX

Clause Disclosure

REPORT OF OPERATIONS

Charter and purpose Page

FRD 22H Manner of establishment and responsible Minister 8

FRD 22H Nature and range of services provided 8

FRD 22H Objectives, functions, powers and duties 8-10

FRD 22H Achievements 10

FRD 22H Operational performance 13-25

Financial information

FRD 22H Five-year financial summary 26

FRD 22H Significant changes in financial position 27

FRD 22H Significant changes or factors affecting performance 27

FRD 22H Subsequent events 27

Governance and organisational structure

FRD 22G Organisational structure 28

FRD 22H Governing board 29-31

SD 3.2.1 & FRD 22H Audit committee membership and roles 31-32

FRD 22H Board committees 32-34

Workforce data

FRD 22H Public sector values and employment principles 35

FRD 22H Occupational health and safety 34

FRD 22H & FRD 29B Workforce statement and data 35-36

FRD 15E Executive officer disclosure 36

Compliance attestation and declaration

SD 5.1.4 Financial Management Compliance Attestation Statement 42

SD 5.2.3 Declaration in report of operations 5

FINANCIAL STATEMENTS

Declaration

SD 5.2.2 Declaration of financial statements 58

Other requirements under Standing Directions 5.2

SD 5.2.1(a) Compliance with Australian accounting standards and other authoritative pronouncements

58

SD 5.2.1(a) Compliance with Ministerial Directions 42

Other disclosures as required by DRSs in notes to the financial statements

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FRD12C Disclosures of responsible persons, executive officers and other personnel (contractors with significant management responsibilities) in the financial report

56

Balance Sheet 45

Cash flow statement 47

Operating statement 44

Statement of changes in equity 46

Other disclosures

FRD 10A Disclosure index 61-62

FRD 25C Victorian Industry Participation Policy 37

FRD 22H Government advertising expenditure 37

FRD 22H Details of consultancies over $10,000 37

FRD 22H Details of consultancies under $10,000 37

FRD 22H Disclosure of ICT expenditure 37

FRD 12B Major contracts 37

FRD 22H Freedom of Information Act 1982 38-39

FRD 22H Compliance with building and maintenance provisions of the Building Act 1993

39

FRD 22H & the Building Act

Compliance with the Building Act 1993 39

FRD 22H Competitive Neutrality Policy 39

FRD 22H & PD Act Protective Disclosures Act 2012 39

FRD 24D Office-based Environmental Impacts 40

MRO Compliance with DataVic Access Policy 40

FRD22H Statement of availability of other information 40-41

Legislation

Building Act 1993 39

Environment Protection Act 1970 8

Financial Management Act 1994 5

Freedom of Information Act 1982 38

Local Jobs First Act 2003 37

Public Administration Act 2004 35

Protected Disclosures Act 2012 39

Victorian Participation Policy Act 2003 37

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