southern rural water annual report 2014... southern rural water annual report 2013–14 01 strategy...

Southern Rural WaterAnnual Report 2013–14

Contents

Highlights of our year 01An introduction to Southern Rural Water 0201 Our year in summaryMessage from the Chairman and Managing Director 04Our performance at a glance 06

02 GovernanceGovernance information 08Board activities for this year 08Organisational structure 09Director Profiles 10

03 Serving our customersWater Supply East 12Water Supply West 15Groundwater and Rivers 17Serving customers 18Social sustainability 20

04 Working with stakeholders 21Involved in communities 22Freedom of information 23

05 Technical and environmental supportTechnical services 24Environmental sustainability 26Environmental data 30

06 Learning and growthLeadership team 32Workforce data 33Our people 34Diversity 34Occupational health and safety 35Our major OH&S achievements 35

07 Strengthening our businessStrategy and planning 38Managing risk 38Legislative compliance 39

08 Financial reportFinancial report overview 40Comprehensive Operating Statement 44Balance Sheet 46Statement of Changes in Equity 47Notes 49Independent auditor’s report 85Compliance certificate – Financial report 87Compliance certificate – Performance report 91Independent auditor’s report – Performance report 92

09 AppendicesAppendix 1 – Regulated systems water data 94Appendix 2 – Unregulated systems water data 98Appendix 3 – Bulk entitlements 104Appendix 4 – Annual reporting of major non-residential water users 109

Disclosure index 110

www.srw.com.au Southern Rural Water Annual Report 2013–14 01

Strategy development and implementation• wedevelopedanewstrategyfor

SouthernRuralWater,lookingoutto

2033.Workonprojectsforthisstrategy

iswellunderway

• asignificantcomponentofthe

MID2030project,the$2.5MHeyfield

RegulatorRetrofitProgram,was

completedwithhigherthanexpected

watersavings

• weconductedsevenverysuccessful

communitysessionsaroundthePort

PhillipandWesternPortregiontotest

ourthirdandfinalgroundwateratlas

• aftera15yearprogramoflargeprojects

andreviews,allofourlargedamsnow

meettheANCOLD(AustralianNational

CommitteeOnLargeDams)limitof

tolerability standards

• wecontinuedtheWerribee

ModernisationProgram,whichsawthe

completionofawatermeasurement

networkinthedistrict

• Watermatch–ournew,freeonline

tradingforum–waslaunchedtoallow

buyersandsellersinsouthernVictoria

toeasilyfindeachother

• afterconsultationwithWerribeeand

BacchusMarshcustomers,wewill

introducearevisedcarryoversystem

from1July2014

• weengagedanewthreeperson

complianceteamwithfundingfromthe

federally-fundedNationalCompliance

andEnforcementFramework,which

willenhanceourcomplianceactivities

includingeducationandprevention.

Engagement• afterathoroughreviewofallpotentially

hazardousprivatedamsinourregion,

wearenowliaisingwithownersabout

theirresponsibilities

• webegantheprocesstodissolve

statutoryWaterSupplyProtectionAreas

andGroundwaterManagementAreas,

andreplacethemwithmoreflexibleand

effectiveLocalManagementPlans

• morethan300studentsinMaffraand

Werribeeenjoyedourwatereducation

andchannelsafetytours,providing

outstandingfeedback

• weheldourfirstevercustomer

engagementsessionforirrigatorsin

theborderzoneGlenelgWaterSupply

ProtectionArea,atMtGambier

• staffandboardmembersattendeda

highlysuccessfulWomen’sNetwork

conference,heldaspartofour

commitmenttodiversity.

Partnerships• duringdryconditionsintheMacalister

IrrigationDistrict,wewereableto

helpcustomersbynegotiatingwith

DepartmentofEnvironmentand

PrimaryIndustries(DEPI)andtheWest

GippslandCatchmentManagement

Authoritytoissuetemporaryannual

uselimitincreases– a significantred

tape reduction

• weenteredanagreementwith

MooraboolShire,CentralHighlands

Water,WesternWaterandBarwon

Waterthatwillstreamlineplanning

applicationprocesses–amajor

productivityimprovement.

Financial• afterathoroughreview,wearelowering

thecostofboreconstructionlicences

for2014–15

• wesoldallavailablewatersharesat

ourfifthannualwaterauctioninthe

MacalisterIrrigationDistrict(MID)

• weexceededourfinancialtargetsfor

theyear.

Highlightsofouryear

Southern Rural Water Annual Report 2013–14 www.srw.com.au 02

GippslandandSouthernRuralWaterCorporation(tradingasSouthernRuralWater)managesruralwateracrossthesouthernhalfofVictoria,fromtheGreatDividetothecoast,andfromtheSouthAustralianbordertotheNewSouthWalesborder.

Ourcustomersareprincipallythefarmers,

graziersandgrowersofsouthernVictoria,

butwealsosupplywaterinbulkto

non-metropolitanurbanwatercorporations

andtoLatrobeValleyelectricitygenerators.

SouthernRuralWater(SRW)manages

threeirrigationdistricts,thestate’s

largestgroundwateroperationand

itssecondlargestnon-metropolitan

headworks business.

SRWisastatutorywatercorporation

establishedundertheWater Act 1989. The

HonPeterWalshMLA,MinisterforWater

wastheresponsibleMinisterfortheperiod

from1July2013to30June2014.

TheresponsibleMinisterappointsa

skills-basedBoard,whichisresponsiblefor

settingSRW’sstrategicdirection.

Vision

BoostingSouthernVictoria’sfood,fibreand

regionalproductivitythroughoutstanding

ruralwatermanagement.

Values

• Listeningdeeplytoworkeffectively

• Caringaboutsafety,theenvironment,

ourcustomersandcommunities,and

each other

• Creatingsolutionsthatleadto

sustainableoutcomes

• Deliveringtimely,effectiveservice

• Demonstratingourhigh

personal standards

• Reflectingtoimprovewhatwedo.

History

Intheearly1990s,majorchangewasafoot

inVictoria’swatersector.

IrrigatorprotestsovertheRuralWater

Corporation’schargesledtothe

McDonald Review.

In1992,thereviewsetintrainthe

establishmentoftheRuralWater

Corporationandfiveregions,each

with itsownBoardofManagement.

On 1July1994,thefiveregionalboards

becameindependentruralwater

authorities– includingtheGippsland

RuralWaterAuthorityandSouthernRural

Water Authority.

On1July1995,thesetwoweremerged

toformwhatistodayknownasSRW,

thetradingnameoftheGippslandand

SouthernRuralWaterCorporation.

Sincethen,SRWhascontinuedto

strivetomanageruralwaterthrough

closeengagementwithitscustomers

and stakeholders.

AnintroductiontoSouthernRuralWater


GRounDWatER anD RiVERS

Weimplementgovernmentregulationsand

policyforgroundwaterandsurfacewater

management,inaccordancewithdelegated

powersfromtheWater Act 1989. We

assesslicenceapplications,issuelicences

toconstructnewfarmdamsandbores

(ifapproved)andmanagenewandexisting

groundwaterandsurfacewaterlicences.

SRWisalsotheappointedResource

Managerforarangeofsurfacewater

catchments(mostlyinGippsland),and

providesadministrativesupporttothe

VictorianDrillers’LicensingBoard.

LaRGE DamS

Wealsoharvest,storeandmanagewaterin

Glenmaggie,Narracan,BlueRock,Melton,

Merrimu,PykesCreekandRosslynne

reservoirs.Thiswateristhensupplied

toirrigators,urbanwatercorporations

andpowergenerators,orretained

for government.

Afurtherpartofourresponsibilitiesisto

managerecreationalfacilitiesatsomeofour

waterstoragesandweirs.

our services

SRW’smainbusinesscentresarelocated

inMaffra,Werribee,Ringwoodand

Warrnambool,withsmallerofficesscattered

acrossourregionofresponsibility.We

employ166peopleandourareacovers

37%ofthestate.

iRRiGation

Wemanagethedeliveryofwatertothe

Werribee,BacchusMarshandMacalister

IrrigationDistricts,andmaintainthe

channels,pipelinesanddrainsfor

these districts.


Ouryearinsummary01MessagefromtheChairmanandtheManagingDirector

Ourpowergenerationandurbanwater

customersarewellplaced.Thereremains

goodwateravailabilityforWesternWaterin

themediumterm,whileGippslandWater’s

andthepowergenerators’sharesofour

storagesremainclosetofull.

Wecontinuedtomonitorchangesin

groundwaterlevelswiththeimpactofthe

dryerseasonalconditionsandincreased

usage.Nonewgroundwaterrestrictions

wererequired.

Wehavedonesomeanalysisofour

customers’futureforthenext20years

andarebuoyedbytheopportunitiesfor

agriculturalgrowthbasedaroundincreasing

demandfromagrowingAsianmiddle

class.Thishasseenusdevelopalongterm

strategytohelpourcustomersexploitthis

opportunity,focusingon:

•morewaterforproduction

•greatservice

•affordableprices.

Wehavemadeexcellentprogressonthe:

•MID2030Phase1Aworks,the$32M

projectjointlyfundedbytheVictorian

governmentandSRWirrigators

•PortPhillipandWesternportGroundwater

Atlasdevelopment,sharingourfirst

draftatsevenworkshopswithlocal

communities

•RenewalofWerribeeIrrigationDistrict

(WID)system,bycompletinga

measurementnetworkwhichwillhelpus

betterunderstandwaterflowsandlosses

toassistoperationalmanagementandthe

designoffuture modernisation

•BacchusMarshIrrigationDistrict(BMID)

renewalstudy.

OurnewAssetManagementSystemwent

live,andwealsolaunchedourflagship

watertradinginitiative“Watermatch”which

providesanonlineavenueforinterested

buyersandsellersofwatertoconnect.

Afterawetstarttotheseason,latespring

andsummerwerehotanddry.Whilethe

Werribeebasinhadsufficientwatertoend

theseason,theweatherputconsiderable

strainonourcustomerswithunregulated

watersupplies,withmanyrestrictionson

theuseofunregulatedsurfacewater.In

theMID,somelanddriedoffdespitethe

100%highreliabilityand5%lowreliability

water allocation.

ThisyearsawSouthernRuralWater(SRW) focusedondeliveringobjectivesfromthefirstyearofour2013–18WaterPlan.Wehavealsotakentheopportunitytolook20yearsout,anddevelopastrategytocapitaliseontheopportunitiesforourcustomerspost2030.


Ouryearinsum

mary

tERRY BuRGi

Chairman

CLinton RoDDa

Managing Director

accountable officer’s attestation

InaccordancewiththeFinancial

Management Act 1994,Iampleasedto

attestthatSouthernRuralWater’sannual

reportiscompliantwithallstatutory

reportingrequirements.

CLinton RoDDa

ManagingDirector,SouthernRural Water

1July, 2014

Wewouldliketothankthecustomers,

stakeholdersandcommunitieswho

supportedusinprovidinggreatserviceat

afairprice,particularlyourhard-working

customerconsultativecommittees.

Inclosing,wewouldliketothankourBoard

directorsandSRWstafffortheirgreat

effortsoverthecourseofthe year.

Southern Rural Water Annual Report 2013–14 www.srw.com.au06

Ouryearinsummary01Ourperformanceataglance

Water management (business as usual)

improving service (strategy) affordable prices (strategy) Enabling our strategy

Go

al Wemanagewaterresourcesinasustainableandresponsiblemanner,balancingtheoften-competingdemandsofeconomicdevelopment,socialneedandtheenvironment.

Ourcustomersbelieveweprovidegreatserviceatatimeandmethodthatisconvenienttothem.Welookfornewwaystoincreaseavailablewaterforproductionwithoutcompromisingenvironmental health.

Wekeeppricesaffordabletohelpcustomersremain competitive.

Ourabilitytodeliverourstrategyisunderpinnedbyahighperformanceculture,innovativeuseoftechnology,andastrongassetmanagementsystem.

act

ivit

ies •licensinggroundwaterand

surfacewateruse

•managingthreeirrigationdistricts

•managingsevenmajordams,includingdamsafetyprograms

•enhancingcatchments

• meetingourenvironmental obligations.

•modernisedirrigationsystems

•morecustomercontrolandconvenience

•morewaterforproduction.

•developingnewrevenue

•reducingoperatingcosts

•reducingcapitalcosts.

•highperformanceculture

•innovativetechnology

•informedassetmanagement.

maj

or

ach

ieve

men

ts •confirmingthatallofourlargedamsnowmeettheAustralianNationalCommitteeonLargeDams(ANCOLD)thresholdsfortheLimitofTolerability

•engaginganewcomplianceteamunderfundingfromtheNationalComplianceandEnforcementFramework

•communitytestingofourfinalgroundwateratlas,forthePortPhillipandWesternPort Region

•conductingareviewofhazardousprivatedams.

•startingmodernisationinthe WID

• completingleadingworksintheMID,andbeginningPhase1AofMID2030works($32MfundedjointlybySRWandStateGovernment)

•consultingwithWerribeeandBacchusMarshcustomerstointroducecarryoverfrom1 July 2014

•developingmoreflexibleLocalManagementPlansforsome areas.

•holdingthefifthwaterauctionfromsavingsviachannelautomationandmeasurement work

•sellingsurplusland

•majorreviewsofoperatingandcapitalexpenditure

•continuingtoexploreopportunitiesfornewirrigationsources–suchasintheLindenowValleyandtheBunyipFoodBeltrecycledwaterproposal.

•continuingtoimplementacomprehensiveassetmanagementsystem,includingsoftwareandgovernance

•hostingaWomen’sNetworkForumtopromoteSRW’sapproachtodiversity

•launching“Watermatch”,afreeonlinetradingforum

•startingworkondeliveringaninteractive,onlineversionofourgroundwateratlases.

Ch

alle

ng

es •buildingourown,customers’andstakeholders’knowledgeoftheruralwatercycle

•deliveringagainstourcapitalworksplans

•continuingthedevelopmentofLocalManagementPlansforallofoursurfacewaterandgroundwatersystems

•managingbudgetsagainstchangingrevenueinwetanddryyears.

•generatingmoreeconomicvaluefromwaterwithoutcompromisingtheenvironmentorsustainabilityoftheresource

•buildingevengreaterunderstandingofourcustomersandtheir businesses

•facilitatingmoretradeacrossourwatersystems

•fundingfutureirrigationmodernisationworksforWerribee,BacchusMarshandtheMacalister.

•furtherdevelopingandimplementingnewbusinessopportunitiesandsurplusland sales

•balancingfairpricesagainsttheneedfornewservicesand development.

•buildingahighperformanceculturethatunderpinsour strategy

•completingimplementationofournewassetmanagement system

• continuingoureffortstowardsasafeandhealthyworkplace

•implementingnewtechnologyandmakingthebestpossibleuseofexistingtechnology.

www.srw.com.au Southern Rural Water Annual Report 2013–14

Ouryearinsum

mary

07

Performance against targets

Groundwater and Rivers fieldmeasure target actual

Compliance(enforcementactionscompletedwithindefinedtimeframes) 91% 100%

Inspections(10%ofnewD&Sbores,allothernewbores,damsandextractionlicences) 97% 99.5%

Engagement(actionscompleted) 18 20

Customersatisfaction(surveyresult) 75% 79%

Meteringprogram(meterscompliantwithmeteringplan) 72% 97%

Groundwater and Rivers administrationmeasure target actual

Applications(processedwithinstandardtimeframes) 99.5% 99.3%

Applications(processedwithintargettimeframes) 55.0% 83.4%

Customersatisfaction(applicantfeedback) 95.2% 92.1%

Informationstatementerrors 0 2

Storage operationBlue Rock Lake merrimu Reservoir Rosslynne Reservoir

target % actual % target % actual % target % actual %

Ordersreleasedontime 97.0 100 97.0 100 95.0 100

Releaseavailability 99.2 100 99.6 100 99.6 100

Releaseaccuracy 90.0 96.6 92.0 89.0 93.0 97.7

Customersatisfaction 75.0 73.0 73.0 73.0 73.0 73.0

irrigation Districtsmacalister Werribee Bacchus marsh

target % actual % target % actual % target % actual %

Flowrateconsistency(automatedoutlets) 85.0 86.2 NA NA NA NA

Volumeaccuracy NA NA 93.0 95.4 93.0 97.3

Ordersdeliveredwithin1dayofrequest 94.0 97.6 70.0 94.0 70.0 94.0

Ordersdeliveredatrighttimeofday(amorpm) 65.0 81.8 NA NA NA NA

Applications(processedwithinstandardtimeframes) 97.0 100.0 NA NA NA NA

Deliveryreliability 99.0 99.6 99.7 100 99.7 100

Deliveryefficiency 74.0 73.0 65.0 56.6 65.0 69.8

Customersatisfaction(surveyresults) 80.0 74.0 65.0 79.0 75.0 66.0

Droughtresilience NA NA 64.0 77.0 20.0 20.0

Waterquality(recycledwater) NA NA 100 100 NA NA


Governance02

1 oCtoBER 2013 – 30 JunE 2014

TerryBurgi(CommitteeChairperson),Gabrielle

Bell,AndreaKilleenandTerrySwingler.

The Community and Customer

Engagement Committeeprovidedadvice

totheBoardoncommunity,customerand

stakeholderengagementstrategies.Itwas

disbandedon1August2013followingthe

2012–13reviewoftheBoard’scommittee

structure.Committeememberswere:

1 JuLY 2013 – 1 auGuSt 2013

ClintonRodda(CommitteeChairperson),

RussellNapperandNaomiPye.

The organisational Culture Committee

advisestheBoardonpolicy,strategyand

performanceoforganisationalcultureto

ensureitmeetstheneedsofthecorporation.

ItwasestablishedbytheBoardon1August

2013(alsoaspartofthe2012–13reviewof

theBoard’scommittee structure).

AllmembersoftheBoardaremembersofthe

OrganisationalCultureCommittee.Andrea

KilleenistheCommittee Chairperson.

Board activities for this yearDirectorHarryPeetersAPMcompleted

histermofappointmenton30September

2013,anappointmentthatfollowed

consecutiveappointmentstotheBoardsof

BarwonWater,PortlandCoastWaterand

WannonWaterextendingfrom1991.

TerrySwinglerwasappointedtotheBoard

on1October2013foraperiodoffouryears.

TerryBurgi,RussellNapperandNaomiPye

werere-appointed,eachforfouryearsfrom

1October2013.Acomprehensiveinduction

programwasconductedforMrSwingler;he

alsoparticipatedinthe8–9December2013

VicWaterdirectortrainingprogram.

Developmentopportunitiesundertakenin

thelastyearincluded:

•ParticipationbythreeBoardmembersat

theVicWaterannualconference,12–13

September2013

1 JuLY 2013 – 30 SEPtEmBER 2013

HarryPeeters(CommitteeChairperson),

GabrielleBell,MatthewColemanandTom

Castles(independent,externalmember).

1 oCtoBER 2013 – 30 JunE 2014

TerrySwingler(CommitteeChairperson),

GabrielleBell,MatthewColemanand

Tom Castles.

The technical and Environmental

CommitteeprovidedadvicetotheBoard

ontechnicalandenvironmentalactivities

acrossSRW’sbusiness.Itwasdisbanded

on1August2013followingthe2012–13

reviewoftheBoard’scommitteestructure.

Committeememberswere:

1 JuLY 2013 – 1 auGuSt 2013

RussellNapper(CommitteeChairperson),

TerryBurgi,MatthewColemanand

Naomi Pye.

The asset Governance Committee

advisestheBoardonpolicy,strategy

andperformanceofassetmanagement

toensureitmeetstheneedsofthe

corporation.Itwasestablishedbythe

Boardon1August2013andpicks

upseveraloftherolespreviously

addressedbytheTechnicaland

Environmental Committee.

1 auGuSt 2013 – 30 JunE 2014

RussellNapper(CommitteeChairperson),

TerryBurgi,MatthewColemanand

Naomi Pye.

The Remuneration and Corporate

Governance Committeeoverseesthe

implementationofremunerationpolicy;

itmonitorsexecutiveremuneration

andprovidesadvicetotheBoard

oncorporategovernancematters.

Committee members were:

1 JuLY 2013 – 30 SEPtEmBER 2013

TerryBurgi(CommitteeChairperson),

GabrielleBell,AndreaKilleenand

Harry Peeters.

Governance information

RoLE oF tHE BoaRD

InaccordancewiththeWater Act 1989

theSouthernRuralWater(SRW)Boardis

responsiblefor:

•Thestrategicplanningofthecorporation

•Themanagementoftheaffairsof

the corporation.

IndoingsotheBoardmustbemindfulofthe

sustainablemanagementprinciplesforwater

corporations;itmustalsoactasefficientlyas

possibleconsistentwithcommercialpractice.

mEmBERSHiP oF tHE BoaRD

•TheChairpersonisappointedbythe

MinisterforWaterinaccordancewiththe

Water Act 1989

•Directorsaresimilarlyappointedbythe

MinisterforWater

•TheDeputyChairperson,beingoneof

theappointeddirectors,isappointedas

DeputyChairpersonbytheBoard

•TheManagingDirectorisappointedby

theBoard

•Directorsareappointedonthebasisof

theirqualificationsandexperience;theydo

notrepresentanyparticular constituency

•RemunerationissetbytheMinister

for Water.

BoaRD CommittEES

Boardcommitteesareestablished,bythe

Board,toassistindetailedexaminationof

matters,makingrecommendationstothe

Board.AreviewofthestructureofBoard

committeeswasundertakenin2012–13

andwasimplementedduring2013–14.

The audit and Risk Policy Committee

overseestheinternalandexternal

auditprogramaswellasSRW’srisk

managementprogram.Committee

membersduringtheyearwere:


Governance

09

WeheldourBoardmeetingsatstrategic

locationsacrosssouthernVictoria,providing

theopportunitytomeetwithcustomersand

stakeholderstodiscusswatermatters,to

maintainandfurtherextendourrelationships,

andtogainexposuretocustomerissuesand

industrytrendsanddevelopments:

•August2013,Maffra:ameetingwithOne

GippslandandtheFederalShadowMinister

forAgricultureandFoodSecuritytoprovide

abriefingonSRW’sMID2030strategy

•September2013,Ringwood:ameetingwith

JohnRiddiford,ActingDeputySecretary

WaterandNaturalResources,Departmentof

SustainabilityandPrimaryIndustries(DEPI)

•October2013,Ballarat:aninspection

tour,andmeetingwithcustomersand

stakeholdersatwhichDrPeterDahlhaus,

UniversityofBallarat,madeaninteresting

andinformativepresentationon“Visualising

Victoria’sGroundwater”

•November2013,Traralgon:inspectiontour,

ameetingwithcustomersintheThorpdale

area,andastakeholdermeetingatwhich

SRW’sGeneralManagerGroundwater&

Riversmadeapresentationoncoalseam

gasandthemanagementofgroundwater

•December2013,Melbourne:ameetingwith

membersofSRW’sSouthernGroundwater

&RiversForum

•March2014,Maffra:inspectionofanew

farmingdevelopmentatNewry,and

meetingwiththeMacalisterCustomer

ConsultativeCommitteeandtheWellington

CommunitySalinityCommittee

•May2014,SanRemo:inspectiontour

oftheWonthaggidesalinationplant,

followedbyameetingwithlocalcustomers

and stakeholders

•June2014,Melbourne:ameetingwith

Dr EmilyPhillips,DeputySecretary

Water, DEPI.

•ParticipationbythefullBoardindam

safetytraining,20May2014

•ParticipationbythreeBoardmembersat

theIrrigationAustraliaannualconference,

3–5June2014.

TheBoardconducteditsannualBoard

performancereviewinDecember2013and

reportedtotheMinisterforWateronthe

outcomeson12February2014.Thereview

wasconductedinternallyandcomprised

assessmentoftheBoardasawhole,the

performanceofindividualdirectors,the

performanceoftheChairman,andthe

performanceofBoardcommittees.

ABoardperformanceimprovementplanhas

beenproducedfromthereview,providing

astructuretoassisttheBoardinitsaimof

achievingcontinuousimprovement.The

performanceimprovementplanhasbeen

progressed,withmonitoringofachievements

atsubsequentBoardmeetings.

Governance

organisational structure

Board

TerryBurgi(Chairman),AndreaKilleen(DeputyChairperson),GabrielleBell,MatthewColeman,RussellNapper,NaomiPye,TerrySwingler

office of the managing Director

manager Strategy & Performance

LincolnEddymanaging Director

ClintonRodda

Brian Carr

CorporationSecretary

Executive assistant

LaurenDaly

People & Customer Service

Finance Water SupplyGroundwater

& Riverstechnical

manager People & Customer Service

JanetGranger-Wilcox

Chief Financial officer

StuartWrigglesworth

manager Water Supply East

TerryClapham

manager Water Supply West

EdSmith

General manager Groundwater & Rivers

CraigParker

General manager Strategic & technical

PaulByrnes

•Humanresources

•Safety

•Strategicplanning

•Infotechnology

•Customerservice

•Regulationreporting

•Corporatecommunication

•Finance

•Riskmanagement

•Insurance

•Easternheadworks

•MacalisterIrrigationDistrict

•Westernheadworks

•WerribeeIrrigationDistrict

•BacchusMarshIrrigationDistrict

•Applications

•Fieldcompliance

•Waterresourcemanagement

•Environment

•Distributionassets

•Headworksassets


Governance02

mS GaBRiELLE BELL, DiRECtoR

MsBellisacorporatelawyerwithbroad

experienceworkingintheAustraliaand

South-EastAsiaregion.Shespecialises

incorporateadvisory(includingcorporate

governance),mergersandacquisitions

andcapitalmarkets.MsBellholdsa

BachelorofLawsandaBachelorof

Engineering(Chemical).MsBellisalsoa

directorofNorthernMelbourneMedicare

Local.SheisamemberoftheAustralian

InstituteofCompanyDirectors.MsBell

wasappointedtotheBoardon1October

2012;hertermofappointmentexpireson

30 September 2015.

mS anDREa KiLLEEn,

DEPutY CHaiRPERSon

MsAndreaKilleenisafarmerintheMID.

ShehasbeenadirectorofGippsDairy,a

directoroftheMacalisterDemonstration

FarmandamemberofSRW’sMacalister

CustomerConsultativeCommittee.Ms

Killeenisavoluntaryfloodwardenand

anassociatememberoftheSES.She

isamemberoftheAustralianInstitute

ofCompanyDirectors.MsKilleenwas

appointedtotheBoardon1 July2010;

hertermofappointmentexpireson30

September2015.

Director Profiles

mR tERRY BuRGi, CHaiRman

MrBurgiisafruitgrowerintheYarra

Valley.Hehasover30years’experience

representingfarmersinindustry

organisationsatregional,stateandfederal

levelsandisaCFAvolunteerwithover

45yearsofactiveservice.MrBurgihasa

degreeinengineering(agricultural)from

MelbourneUniversityandpreviously

workedinthewaterindustry.HeisaFellow

oftheAustralianInstituteofCompany

DirectorsandaMemberoftheInstitution

ofEngineersAustralia.MrBurgiwas

appointedtotheBoardon1July2004.

HewasappointedasDeputyChairman

inAugust2010andChairmaninOctober

2011.HewasreappointedasChairman

inOctober2013;histermofappointment

expireson30September2017.

Board and Board Committee meetings attendances 2013–14 summary:Board meetings audit &

Risk Policy Committee

technical & Environmental

Committee

asset Governance Committee

Remuneration & Corporate Governance Committee

organisational Culture

Committee

HarryPeeters 3of3 2of2 2of2 1of1

TerryBurgi 12of12 0of1 4of4 5of5 2of2

AndreaKilleen 12of12 5of5 2of2

GabrielleBell 12of12 6of6 5of5 2of2

MatthewColeman 12of12 6of6 1of1 4of4 2of2

RussellNapper 12of12 1of1 4of4 2of2

NaomiPye 12of12 1of1 4of4 2of2

ClintonRodda 11of12* 2of2

TerrySwingler 8of9 4of4 2of3 0of1

*MrRoddawasavailablebutdidnotparticipateinonemeetingduetoaconflictofinterest(inrelationtoMDremuneration,theonlyitemontheagenda,duetohisappointmentasMD).

AllBoardmembersattendedthe20May2014AssetGovernanceCommitteemeetingfordiscussionoftheannualdamsafetyreport.

MrTomCastles,externalmemberoftheAudit&RiskPolicyCommittee,attended5of6meetingsofthatcommittee.


Governance

11

mR mattHEW CoLEman, DiRECtoR

MrColemanownsadairyfarmat

Yannathan.Hehasheldseniormanager

rolesinthefederalpublicserviceas

wellasworkinginthewoolandgrains

industriesandfortheVictorianFarmers

Federation.HeisaDirectoroftheRoyal

AgriculturalSocietyofVictoriaanda

memberoftheRegionalDevelopment

Australia–SouthernMelbourneAdvisory

Committee.MrColemanholdsaMaster

ofScience(AgriculturalEconomics),

BachelorofAgriculturalScience,Diploma

ofFinancialServices(FinancialPlanning),

GraduateDiplomaofAgribusinessand

isamemberoftheAustralianInstituteof

CompanyDirectors.MrColemanwas

appointedtotheBoardon1October2012;

histermofappointmentexpireson30

September 2015.

mR RuSSELL naPPER, DiRECtoR

MrRussellNapperisanirrigationfarmer

atSaleandholdsaTradeCertificatein

FittingandTurning.Hewasamember

ofthecommitteeimplementingtheLake

WellingtonSalinityManagementPlan

from1995to2002andbecamechairof

thatgroupfrom1996to2002.Hewas

subsequentlyappointedChairofthe

WellingtonCommunitySalinityGroup

from2003untilappointedtotheBoardof

SRWin2011.MrNapperwasamemberof

SRW’sMacalisterCustomerConsultative

Committeefrom2002toOctober2011and

TreasureroftheMaffra&DistrictsLandcare

Networkfrom1998to2008.MrNapperis

amemberoftheMaffraLionsClub,where

hasservedasPresidentandasSecretary.

HeisamemberoftheAustralianInstitute

ofCompanyDirectors.MrNapperwas

appointedtotheBoardon1October2011;

histermofappointmentexpireson30

September2017.

mS naomi PYE, DiRECtoR

MsPyeisadairyfarmeratBessiebelle.

ShewasaBoardmemberoftheGlenelg

HopkinsCatchmentManagement

Authority(2006–2011)andhaspreviously

heldboardandcommitteeroleswiththe

VictorianFarmersFederation(1999–2007),

WestVicDairyProjectSteeringCommittee

(2000–2006)andAustralianDairyFarmers

(2005–2006).Priortoherappointmentto

theBoardofSRW,shewasamemberof

theSouthernGroundwater&RiversForum,

acustomerconsultativecommitteeof

SRW.MsPyehasaDiplomaofTeaching

andanAdvancedDiplomaofAgriculture;

sheisaGraduateoftheAustralian

InstituteofCompanyDirectors.MsPye

wasappointedtotheBoardon1October

2011;hertermofappointmentexpireson

30 September 2017.

mR tERRY SWinGLER

MrSwinglerisadirectorofEquipsuper

PtyLtdandtheVictorianGovernment’s

appointeddirectorontheJointGovernment

EnterpriseLtd(inliquidation)(tradingas

WaterforRivers).Hehasheldsenior

rolesasYarraValleyWater’sGeneral

ManagerFinanceandCompanySecretary

(1995–2012)andCorporateSecretarywith

MelbourneWater(1986–1995).MrSwingler

hasaDiplomaofBusiness(Accounting)

andisaFellowofCPAAustralia,

GovernanceInstituteofAustraliaandthe

AustralianInstituteofCompanyDirectors.

MrSwinglerwasappointedtotheBoardon

1October2013;hiscurrenttermexpireson

30 September2017.

mR CLinton RoDDa,

manaGinG DiRECtoR

MrRoddajoinedSRWin2005after

spending17yearsintheutilitiessector

and10yearsinmanagementconsulting.

He haspreviouslyheldseniormanagement

roleswithEnergyBrixandEasternArea

PowerGrid,andhasworkednationallyand

internationallyasaconsultant.Heholdsa

BachelorofBusiness,aMasterofBusiness

AdministrationandaDiplomainOntological

Coaching,andisamemberofthe

AustralianInstituteofCompanyDirectors.

MrRoddawasappointedManaging

Directoron4July2009andreappointedin

March2014forafurtherfiveyearseffective

fromJuly2014.


Servingourcustomers03

Thedrysummerconditionsonceagain

increasedthedemandforwatertrading.

Allocationtradesfortheseasondidnot

reachtherecordlevelsoflastseason,with

13,694MLtraded.Thisisjustabovetrades

inanaverageyearof12,000–13,000ML.

Themarketwaspayingupto$200perML

inlateJanuary/earlyFebruary–thisprice

droppedbackto$50perMLlaterinthe

seasononcetheallocationwasincreased.

On26February2014,SRWheldthefinalof

fiveauctionsofwatersharesmadeavailable

throughsavingsfromautomationworks

intheMID.Thetotalwatersavingsfrom

thisprojecttotalled2,733ML.Thisyear’s

offeringtotalled559.9MLofHRWSand

160.6MLofLRWS.Allthesharesthisyear

weresold,withpairedHRWSandLRWS

sellingforanaveragepriceof$1808.51and

LRWSsellingforanaveragepriceof$80.66

perML.AllHRWSwatersharessoldat

theauctioncamewithseasonalallocation.

Proceedsfromthesaleoftheseshares

havebeenusedinotherwatersavings

projectsaspartoftheMID2030program.

LaterainsinAprilandMayslowedcustomer

demandandLakeGlenmaggieclosed

theseasonwithavolumeof66,543 ML

or37.5%on15May2014,comparedto

18,202MLor10.2%on15 May2013.This

comparestoourfiveyearaverageof85,847

MLremaininginthelake.

Ourseasonopenedwitha60%HighReliability

WaterShare(HRWS)allocation.Steadyinflows

filledLakeGlenmaggiebyearlyOctober.Spill

entitlementwasavailableforcustomersuntil

15 December2013,with44,500MLdelivered.

Withlowerthanaverageinflowsthrough

earlysummer,ourallocationremainedon

90%HRWSforanextendedperiod.Inlate

MarchwewereabletoincreasetheHRWS

to95%.Afurther5%HRWSand5%Low

ReliabilityWaterShare(LRWS)tookourfinal

allocationfortheseasonto100%HRWS

and5%LRWSon22April2014.

TheThomsonDroughtReserveopenedthe

seasonwithavolumeof30,385MLand

inflowstotalledover11,900ML.Ourfirstorder

fromthereservewasinearlyNovemberand

giventhedrierthanaverageconditionswe

setsomeproposedtargetsforusage.Usage

fortheseasontotalled11,664ML,leavinga

remainingvolumeof32,655ML(plusinflows)

forthe2014–15season.

Areviewofourdeliverybudgetthisseason,

downfrom163,000MLto147,454ML,

hasmeantasmallpriceincreaseinthe

usagechargeperMLforcustomers.Water

deliveriestocustomersthisseasontotalled

149,631ML,justaboveourreviseddelivery

budgetandaboveour5yearaverage

usageof139,068ML.Thisisagoodresult

forthebusiness;thisinformationisshown

intheaccompanyinggraph.

Water supplyWaterSupplyisthelargestcomponent

ofSouthernRuralWater’s(SRW’s)

operations,accountingfor65%ofourgross

annual turnover.

SRWoperatestheMacalister,Werribeeand

BacchusMarshIrrigationDistricts,andis

responsibleforsevenstoragesinourregion,

togetherwithanumberofsmallerregulating

structures.ThestoragesincludeBlueRock

Lake,LakeGlenmaggie,LakeNarracan,

MeltonReservoir,MerrimuReservoir,Pykes

CreekReservoirandRosslynneReservoir.

Fromthesestorages,weharvestand

storewaterforirrigationcustomers,urban

watercorporationsandtheLatrobeValley

powergeneratorsinaccordancewiththe

provisionsofBulkEntitlementOrders.

Water Supply East

Eastern irrigation Business

OurEasternIrrigationBusinessmanagesthe

deliveryofwatertocustomersintheMacalister

IrrigationDistrict(MID)andontheMacalister

andThomsonRiversandRainbowCreek.

Ourmainstorage(LakeGlenmaggie)and

diversionweirs(ontheThomsonand

MacalisterRivers)providewatertoalmost

1,000customers.Thebulkofthiswater

isdeliveredviagravityirrigationfrom

15 Augustto15May.Ourrivercustomers

canorderwater365daysayear.

The2013–14irrigationseasonstartedoff

wellforourcustomersbutonceagainalack

ofrainfallduringsummerwaschallenging.

WithrainfallinlateJulyfillingthestorage

closetocapacity,wewererequiredto

managetheLakeGlenmaggievolumeon

asteadyfillcurve.Thismeantthatreleases

downtheMacalisterRiverreachedminor

floodlevelsattimes.Aswemovedinto

ahotsummer,customerdemandand

droppinginflowsloweredthelevelinLake

Glenmaggie,makingitimpossibleforusto

increaseallocationuntillaterintheseason.

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Macalister Irrigation Area

2012–2013

5 Year Average0

50,000

100,000

150,000

200,000

250,000

Volume Deliveredand Available

Budget Deliveries

Delivery to Date


Servingourcustom

ers

maintenance and capital works

Thisyear’sCarpProgramontheMainSale

channelhasstartedfromthesouthern

endoftheSaleRacecourseandis

progressingdownstreamapproximately

1 kmacrossGrassdaleRoad.Materialsare

beingsourcedfromanearbydrainbank

(ownedbySRW)andbeachingwillbe

placedaroundcornersandatthesidesof

structures.Anewaccesstrackalongthe

topofthebankwillbebuilt,givingaccess

alongthechannelforsprayingandother

maintenanceactivities.

Wearealsoaddressingsomelongterm

channelbankerosionissuesacross

thedistrict.Someofourmediumsized

channelsarebadlyaffectedbyerosion

duetowaveandwindaction,meaning

thebankshaveworndownovertheyears

leavingverylittlestability.Wearealso

beginningatreeremovalprogram.Problem

treescouldaffectsupplyiftheyfallover

orlimbsfalloff.Similartreeshavefallenin

thepastandhavebeenluckynottocause

interruptionstosupplyormajordamage.

Channel inspections

Inwinter,wecloselyinspectourcritical

assets–mainlyearthensectionsofour

mainchannelsthataresusceptibletofailure

duringtheirrigationseason.

Duringtheseinspections,welookfor:

•cracksandholes

•slumpingofbanks

•blockagesfromdebrisandsiltation

•animalactivitysuchasfoxor

wombat burrowing.

Theseinspectionsandrepairseachwinter

reducethepotentialtointerruptsupply

duringtheirrigationseason.Wealso

inspectourlesscriticalassetsonarotating

basisandeachasset’sconditionratingis

checkedagainstthelastone.Re-rating

SRW’sMID2030projectisonthego,with

Phase1Akickingoffitsmodernisation

worksinMay.

May2013sawtheannouncementthat

thecoalitiongovernmentwouldprovide

$16Mfunding,withaco-contributionof

$16MfromSRWfortheMID2030Phase

1Aprogram.

BetweenMayandAugust2014,more

than$4Mofmodernisationworkswillbe

completedintheMID.

TheMID2030projectwillincreasethe

amountoffoodproducedintheregion,

boostingthelocalandstateeconomy

withtheinitialphaseestimatedto

return12,300MLofwaterperyearto

productiveuse.

The2014winterworksprogramincludes:

EaStERn anD

SoutHERn‑CoWWaRR

REGuLatoR REtRoFit PRoGRam

Thisprograminvolvesreplacingmanual

regulatorswithautomatedflumegates

andslipmetersacrosstwosupplyareas.

Modernisingtheseareaswillimprove

serviceforcustomersandvastlyreduce

theamountofwaterbeinglostfromthe

bottomofthesesystems.

85regulatorswillbeinstalledinthe

Southern-Cowwarrsystemand66

willbeinstalledintheEasternsystem

throughoutwinter2014.Theprogram

willcontinueduringwinter2015,whena

further130regulatorswillbeinstalled.

SoutHERn tinamBa PiPELinE

DESiGn PRoJECt

SouthernTinambahassoilsthatmake

itdifficulttoconstructchannelswhich

don’tleak.Pipingisthebestsolution

tomodernisethisarea,andprevent

water losses.

Thisprojectaimstodevelopa“shovel

ready”pipelinedesignforthefirststage

ofthenetwork,andapreliminarydesign

fortherestofthenetwork.

Weawardedthedesignconsultancyin

April2014,andworkonthefirststage

designhasbegun.

Thisprojectisduetobecompleted

attheendof2014andwillhelpdrive

furtherfundingforthispartoftheMID.

outLEt RationaLiSation

PRoGRam

Thisprogramtargetspreviously

automatedpartsofthesysteminthe

Southern-CowwarrandEasternsupply

zones,wherecustomersarewillingto

consolidateandmodernisetheiron-farm

irrigationoutlets.

Thebenefitsinclude:

•betterserviceforcustomers,because

thenewmodernisedoutletsgive

higherandmorereliableflowsandwill

closeandopenautomatically(nomore

midnightvisitsforfarmers)

•increasedon-farmproductivity,

whichwillleadtoincreasedregional

productivityandmoreaccuratedata

fromreplacinginaccurateDethridge

wheelswithaccurateslipmeters.

Insomecases,thenumberofoutletsto

farmswillbereduced,andconnection

workswillbemadetoalternativeoutlets.

Twoquoteshavebeenreceivedforthe

2014on-farmworks,whicharecurrently

beingassessed.

miD2030’s Phase 1a program is underway



Damsafetycontinuestobeafocus,

particularlywithstafftrainingand

implementingimprovedworkpractices.

Wehavecontinuedtofocusonroutine

maintenanceandsurveillancetoensure

wecontinuetocomplywithANCOLD

guidelines.Improvementscontinue

tobemadetoourstructureswiththe

ongoingimplementationofSCADAand

structureautomation.Maintainingour

ageinginfrastructureiscontinuingtobe

achallenge,butouroveralloutstanding

maintenancetasklistisreducing.Our

focushasbeenoncompletingoperational,

maintenanceanddamsafetyinspection

tasksasaprioritythisyear.

TheMacalistercatchmentconditionhas

continuedtoimprovefollowingthe2007

bushfiresandwearenowseeingareturnto

relativelynormalinflowsasaresult,making

inflowpredictionsmorereliable.Weareyet

toseetheimpactsoftherecentAberfeldy

bushfireswhichhavegreatlyimpactedthe

AberfeldyandLowerThomsoncatchments,

aswellastheGlenmaggieCreekandLower

Macalistercatchments.

Easternstoragelevelsat30June2014

2013–14 2012–13

Glenmaggie 103,857ML 58.4% 109,993ML 58.5%

Blue Rock 208,565ML 100% 205,668ML 98.8%

Narracan 3,765 ML 52% 4,845ML 67%

NarracanBlue RockGlenmaggie

Eastern storage levels as at 30 June 2013

0

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

2012–2013

2013–2014

Eastern storages

HeadworksEastmanagesthreelargedams

andthreediversionweirsontheLatrobe,

Tanjil,ThomsonandMacalisterRivers.

WesupplywatertoVictoria’spower

generators,theMacalisterIrrigationDistrict,

GippslandWaterandtheenvironment.

Storagesreceivedaverageinflows

during2013–14,withveryfewhighflow

periods occurring.

WaterlevelsinLakeGlenmaggiehavegradually

drawndownthroughouttheirrigationseason,

finishingwithapproximately37%instore.Blue

RockLakehasremainedabove90%over

summerandintoautumn;theintroductionof

GippslandWaterpumpingtoMoondarrain

Aprilhasslightlyincreaseddemandfromthe

storage.WemaintainedLakeNarracanat55%

throughoutthesummerforrecreationpurposes

asdirectedbytheGippslandSustainableWater

Strategy.Thishashadlittletonoeffectonthe

system’swatershares.GiventhatBlueRock

waswellabovethe80%triggerformaintaining

alevelinNarracan,thedraftoperatingrulesfor

theLatrobesystemwereimplementedearly.

helpsinformourmaintenanceprograms

intothefuture.Theinspectionteamis

targetingtheNambrok,Saleandthe

Easternareasandwillinspectbetween

20and25assetsaday.

Channelinspectionstakeplaceagainin

Augustwhenwebegintorefillthechannels.

Weeds

Ourmostprolificweedproblemsthis

seasonweretheemergenttypessuch

asCumbungiandSpikeRush.Usingthe

chemicalglyphosate,ourstaffcarriedout

thecontroloftheseoutbreaksinchannels

whenweatherconditionspermitted.

Contractorsagainundertookweedcontrol

indrains.

Oursubmergedweedprogramwas

againfocusedonourmainchannels,

MainSouthern,MainNorthernandthe

MainSale.Atotaldistanceof45kmwas

includedinlastseason’sprogram.

automation

Otherworksthathavemadeupthe

winterprogramincludeannualflumegate

maintenance,suchas:

•replacingreferencesensors

•manufacturingthe150battery

packsrequiredforthe2014battery

replacement program

• replacinggearboxesontwogates

•repairingbrokendrivecableson

four gates

•repairingaregulator

•assistinginthehibernatingandwakingup

ofallflumegates

•completingallmaintenancejobsarising

fromsiteself-tests

•completingtestandtagofallSRW

maintenanceequipment.


Servingourcustom

ers

15

Water Supply West

Western irrigation Business

TheWesternIrrigationBusinessmanages

thedeliveryofwaterto230customersin

theWerribeeIrrigationDistrict(WID),133

customersintheBacchusMarshIrrigation

District(BMID)and75customersonthe

WerribeeRiver.

Waterissuppliedforvegetablecrops,fruit

orchards,sandquarries,theMoorabool

andWyndhamcouncils,theWerribee

TouristPrecinctincludingtheWerribee

OpenRangeZoo,EquestrianCentre,

WerribeeMansionandtheWerribeeGolf

Club,aswellastownsupplies.

The2013–14seasonwasrelativelydry

withrainfallsignificantlybelowaveragefor

mostoftheseason.Wehadseveralhot

spellsinJanuaryandFebruary,resulting

inhighdemand.Theseasonstartedwith

PykesCreekReservoirat77%fullandwe

sawthereservoirfillinthespring.However,

MeltonReservoirstartedtheyearatabout

20%fullandthelowrainfallmeantthat

thereservoirdidnotfillduringtheyear.

Allocationsreached100%HighReliability

WaterShare(HRWS),15%LowReliability

WaterShare(LRWS)and35%storedforthe

2014–15 season.

ThehotspellsinJanuaryandFebruary

sawthedeliverysystematfullcapacity,

withlargestvolumeofwaterdeliveredina

weeksincerecordsbeganatthestartof

the1990s.Overallwedelivered6,789MLof

riverwaterand1,891MLofrecycledwater

totheWID,and2,906MLofriverwaterto

the BMID.

Attheendoftheseason,thewaterlevel

inMeltonReservoirdroppedtoaround

5%.Thishasresultedinushavingtomake

releasesfromourreservesinLakeMerrimu

tomeetdemandintheWID.Iflowinflows

continueintothe2014–15season,wemay

alsohavetoreleasewaterfromPykes

CreekReservoir.

major works

Wehavelineda180msectionoftheBMID

mainchanneltopreventleaksoccurringin

thebuilt-uparea.Furtherworkisplannedat

thestartofthe2014–15seasontoprevent

leaksintheroadculvertatthissite.

Anewculverthasbeenconstructedatthe

BMIDoff-take.Theculverthaderoded,

exposingthereinforcingsteelworkwhich

hadcorroded.

Yallourn mine

SouthernRuralWater’s(SRW’s)

HeadworksEaststaffhavebeenpraised

fortheirteamworkanddedicationafter

theirhelpwiththeYallournOpenCutMine.

WhentheMorwellRivercollapsedinto

themine,amajoroperationstartedto

begindivertingwaterthroughthemine,

andremovingaround40,000MLofwater

thathadenteredthemineasaresultof

thecollapse.

SRW’sEasternHeadworksstaffworked

closelywithEnergyAustraliatocontrol

flowsonadailybasisdowntheLatrobe

Riverduringtheminecollapseand

rebuildingphase.

Forsixtoeightmonths,staffwerein

constantcommunicationwithEnergy

Australia,managingflowsdownthe

LatrobeRivertoaidindilutingthehighly

turbidwaterbeingpumpedfromthe

mine.EnergyAustraliawasrequiredby

theEnvironmentProtectionAuthorityto

constantlymonitorturbiditylevelsinthe

waterre-enteringtheriver.

Largeflowshadtobesentdownfrom

LakeNarracanandBlueRocktohelp

reduceturbiditylevelsdownstream.The

amountofwaterreturnedtotheriver

changedconstantlyasmoreandmore

pumpswereconnectedtothepumping

networkwithinthemine.

Thismeantthatchangesinstreamflows

werefrequent,andoftenoutsidenormal

hours,includingweekends,resultingin

ouroperatorsworkingadditionalhours

toensureEnergyAustralia’soperation

couldcontinueasefficientlyaspossible.

EnergyAustraliahasexpressedits

gratitudeonseveraloccasionsat

meetingsheldwithSRW.

”Theysaidthedewateringofthemine

couldnothavebeencompletedinsuch

atimelymannerifitwerenotforthe

effortsofourstaff,”saidManagerWater

SupplyEast,TerryClapham.

“StaffincludedReeceStorie,Andrew

Halkett,MarkPriceandLukeRichards,

whowerewillingandabletoalterflows

throughtheLatrobesystemonatleast

adailybasisoveranextendedperiod

of time.

“Thiswasgreatfeedbackonourteam

forajobwelldone.”

Wehaveinstalledanewflowmeteratthe

BacchusMarshDiversionWeir,whichwill

ensuremoreaccurateflowmeasurement

ofthepassingenvironmentalflowsinthe

WerribeeRiverdownstreamofthediversion

weir.Thisshouldreducetheriskofnot

accuratelymeetingourBulkEntitlement

passingflowrequirements.Wehavealso

installedsecurityfencingandgatesatthe

weirtoimprovepublicsafetyatthesite.



LakeMerrimuandRosslynneReservoir

reached85%and95%respectivelybut

havedrawndownsincespring,with

WesternWatertakinggreatervolumesthan

inrecenttimesduetocapacityupgradesto

theirtreatmentplantsandalowerreliance

onthemetropolitanwatersupply.

major works

Thisyearwehaveseenthecompletion

ofaprojecttoreplacethecastironoutlet

conduitatMeltonReservoir.Theproject

wassuccessfullycompletedontime,

therebypreventinganyimpactsonmeeting

downstreamdemandforwater.

Othercapitalworkscompletedthisseason

includedanewdooratthePykesCreek

diversiontunnel,securityperimeterfencing

atMeltonReservoirandreplacingthe

towerroofatRosslynneReservoirwhich

includesasafeaccessroutetoassess

roof condition.

Recreational facilities

Wecontinuetomaintainourrecreational

parksatPykesCreek,Meltonand

Merrimu Reservoirs.

Ensuringthatvisitorstotheparkscomply

withourregulationscontinuestobea

challenge.Weseelargenumbersofvisitors

atPykesCreek,includingthoseusingboats

andjetskis.Toensuresafetyforallvisitors,

wehavecontinuedwithourexternal

complianceteam.Theteamhasworked

wellinoftendifficultcircumstances,andwe

areseeingimprovementsinthebehaviours

ofvisitorstothereservoir,includingalotof

positivefeedback.

Weareabouttobeginacommunity

consultationprocesstogaugepublic

expectationsofthefacilities,activities

andthefundingoptionsformanaging

the facilities.

Wehaveinstalledameasurementnetwork

acrossthesupplysystemtoimprovewater

measurement–thiswillallowustoidentifythe

areaswithhigherlossesandpriorityareasfor

upgrades.Thesystemhasbeeninplacefor

alargepartoftheseasonandhasoperated

well,withsomecalibrationstillrequired.

Furtherplanninganddesignworkhasbeen

undertakenfortheWID4/1pipelineproject,

withconstructionplannedforthewinter

of 2015.

WehavebegunourBMIDrenewal

studywhichwillhelpshapeourfuture

investmentprogramfortheBMID.We

havehaddiscussionswithcustomers,

councilandotherstakeholderstogain

theirperspectives.Thiswillhelpdevelop

infrastructurerenewaloptionsduringthe

2014–15season.

Werribee Recycled Water Scheme

SouthernRuralWater(SRW)supplies

recycledwaterfromtheWesternTreatment

PlanttoWIDcustomers.

Thisyearwasthesecondyearofsupply

underournewcontracts.Meetingdemand

forriverwaterandrecycledwatercontinues

tobedifficultduringpeakdemand,andso

weareinvestigatingoptionsforthe2014–15

seasonincludingrunningeverydayfrom

ChristmastoMarch.

TheannualRegionalEnvironmental

ImprovementPlan(REIP)reporthadsome

excellentresultsfromthesoilmonitoring

tests.Theresultsshowedimprovements

tomostsoilprofiles,demonstratingthe

sustainabilityofthescheme.

Western storages

HeadworksWestoperatesandmaintainsfour

largedamsinthewesternregion;threeinthe

WerribeebasinandoneintheMaribyrnong

basin,alongwiththeassociateddiversion

structuresandtunnelsystems.

Carryover

WerribeeandBacchusMarshirrigators

willhavemorecontrolovertheir

waternextseasonwhenSouthern

RuralWater’snewcarryoversystem

is introduced.

Carryovermeansthatcustomerswho

holdontosomeoftheirwaterwillhave

morewatertouseatthebeginningof

thenextseason.

Theideaofindividualcarryoverwas

raisedbytheWesternIrrigationFutures

studyandwassupportedbythe

WerribeeandBacchusMarshCustomer

ConsultativeCommittee.

Itwasalsosupportedwhenwetookthe

ideaouttoirrigatorsinlate2013.

Whenweintroducecarryoverfrom

1 July2014,anyunusedallocationwill

automaticallybecarriedover,readyfor

useinthenextseason.

Customerscanonlycarryovera

maximumoftheirhighandlowreliability

allocation.Theyalsolose15%oftheir

carryovervolume,whichisdeductedto

allowforevaporation.

Itwillallowirrigators,particularlythose

whotradeinlargevolumes,more

securityforupcomingseasons.Itallows

moreflexibilitytohold,useortrade

waterwhenitisofthegreatestvalueto

theirbusiness,ortopreparefordrought

bystoringwaterforuseinfutureyears.

PykesCreekReservoirfilledduringthe

springinflowperiodbutwedidnotsee

largeflowsintoMeltonReservoir,which

onlyreachedaround65%capacity.Thisis

anunusualfillingpatternbecauseMelton’s

catchmentistypicallythemostreliable.

Thesummer’shotanddryconditionsledto

highdemand,whichhaseffectivelyemptied

MeltonReservoir.


Servingourcustom

ers

17

unitsundertheumbrellaofoneplan.This

willallowtradeopportunitiesoveramuch

largerareaandwillintroducecarryover.

Theplanwillundergoaperiodofpublic

consultationandweexpectcompletion

later in 2014.

FaCE to FaCE WitH CuStomERS

Tounderstandcustomerneeds,wemeet

asmanycustomersaswecanfaceto

face.Wehaveanumberofactivelocal

areacommitteeswheremembersareable

tohelpusmanagewaterinawaythat

providesmaximumbenefitwhilemeeting

ourobligations.Thesehaveledtocloser

relationshipsandanumberofinitiatives,

includingusingtextmessagingforroster

information,andourlocalwaterreports.

Ourlocalwaterreports,inallcatchments

acrossourregion,havebeenmet

withenthusiasmbycustomers.The

updatesprovideinformationthatwillhelp

customersplanfortheseasonahead

andtobeinformedaboutlicensingrules

and conditions.

Wehaveagainconductedanumberof

groundwaterworkshopsconnectedwith

ourPortPhillipandWesternPortRegion

GroundwaterAtlas.Theworkshopswere

verywellattendedandwereceivedvaluable

feedbackonthelayoutandcontentof

the atlas.

EnHanCinG WatER tRaDE

AnimportantactionwithintheSustainable

WaterStrategiesandourownstrategyis

toincreasewatertradeinunregulatedand

groundwatersystems.Themostcommon

problemlicenceholderstellusaboutisthe

difficultyforpotentialbuyersandsellers

tofindeachother.Withfundingfromthe

DepartmentofEnvironmentandPrimary

Industries(DEPI),welaunchedWatermatch,

awebsiteallowingpeopletoposttheir

interestintradingawaterentitlement.The

useofthesitecontinuallyincreaseswith

manysuccessfultradesnowfinalised.We

willcontinuetoimprovethefunctionalityof

thesiteandtoencourageitsuse.

Wearedoingotherthingstoimprovetrade

aswell,includingvisitinglicenceholders

toinformthemthattheycantradeand,

iftheyareinterested,maketheprocess

assimpleaspossible.Insomeareasthis

hasresultedinasignificantincreaseinthe

volumeoftrade,particularlyfrompeople

whootherwisewouldnothaveused

their entitlement.

Atthesametime,weareworkingonbetter

definedtradingrulesthatwillsimplify

theapprovalsprocessandcreatemore

certaintyforpeoplewantingtoknow

whethertheycantradefromonelocationto

another.Theseruleswillbeincorporatedin

LocalManagementPlans.

LoCaL manaGEmEnt PLanS

Allofoursurfacewaterareashavegeneric

rulesabouthowtheyaremanaged

withintheWater Act 1989 andpolicy.

Groundwaterplanswerecompletedby

mid 2013.

Wearenowintheprocessofmaking

moredetailedplanswheretherulescan

bechangedforbettermanagement.Inthe

southwestofthestatewehavedeveloped

aplanthatcoversthelimestoneaquifers,

bringinganumberofsmallmanagement

AtMelton,theurbandevelopmentalong

thenortheasternbankofthereservoir

continuesatpace.Weareindiscussions

withmultipledeveloperstoensurethat

stormwaterdischargeinfrastructuredoes

notleadtoerosionoftheembankmentand

affectwaterquality.Wearealsodiscussing

withMeltonCouncilandMelbourneWater

optionsformanagingtheembankmentfor

vegetationandrecreationalpurposes.We

arealsoparticipatingonaMeltonCouncil

advisorycommittee,whichisgauging

communityexpectationsandoptionsfor

recreationalactivitiesatthereservoir.

Bulk Entitlement (BE) management

WehavecontinuedtoimproveBEpassing

flowmonitoringbyinstallingaflow

monitoringdeviceontheriparianvalveat

theBacchusMarshdiversionweir.Thiswill

greatlyassistusinensuringwemeetour

passingflowrequirements.

Groundwater and RiversTheGroundwaterandRiversbusiness

managesourdelegatedlicensingand

regulatoryfunctions.

Thebusinessconsistsof:

•assessmentstaffwhoprocessall

licenceapplicationsandperform

administrative functions

•fieldoperationsandcompliance

team,whoundertakemeterreading

andenforcement,inspectbores

underconstruction,supportthe

applicationprocessandareourmain

customer contact

•themeteringgroup,responsibleformeter

installations,datamanagementand

maintenanceprograms.

annual highlights

2013–14sawanumberofhighlightsand

challenges:



CuRREnt anD FutuRE CHaLLEnGES

Wearecontinuallylookingforwaysto

improveourapplicationprocessesto

increaseefficiency,whilemakingthemost

informeddecisionspossible.Overthenext

periodwewilltrialtheuseofelectronic

submissionofapplications,particularlythe

simplertransactionaltypeapplications.

Longerterm,ouraimistoreducethe

relianceonpaperapplicationformsas

muchaspossible.Wearealsoworkingwith

otherstakeholderstoautomateasmany

applicationtypesaspossible,startingwith

boreconstructionlicences.

Ourchallengesinthefieldinclude

completinglocalmanagementplans

inareaswhereweareseekingmore

flexiblerules.Ourstrategyistoincrease

theproductiveuseofwater,andwewill

beworkingonwaystoincreasetrade,

toimproveourrosterandrestriction

processesandtomakedecisionsas

streamlinedaspossible.

Serving customersSouthernRuralWater(SRW)aimstobe

closetothemanypeopleandgroupsthat

weworkwith.Thisincludesourcustomers.

Customer engagement

Weworkandengagewithcustomersina

widevarietyofways.

Thisyeartheyhaveincludedcustomer

surveys,districtupdates,localwater

reports,customermeetings,newsletters,

displaysatfielddays,openhouses,fact

sheetsandotherpublicationswrittenin

PlainEnglish,andmore.Ourwebsiteis

constantlyupdatedwithnewinformation.

Wealsohavearangeofcustomeradvisory

andreferencegroups.

Twomainaimsarethat:

•customersbelieveweprovidegreat

serviceatafairprice

•weaddvaluetoourcustomers,andthey

valueourrelationship.

Ourcustomercommitteesplaythecrucial

roleofprovidinguswithcustomerviews,

whichhelpustopursuetheseaims.We

valuetheirinputgreatly.

Water Supply (irrigation)

Wemustunderstandourcustomers’needs

anddesiressowecanprovidewatersupply

toourcustomersinthebestpossibleway.

Tocomplementourworkwithindividual

customers,wehaveaformalconsultation

processtoensurecustomerinputintoour

operationsandlong-termplanning.

Ourcorecommitteesare:

•TheMacalisterIrrigationDistrictCustomer

ConsultativeCommittee

•TheWerribeeBacchusMarshIrrigation

DistrictCustomerConsultativeCommittee

•TheWellingtonCommunitySalinityGroup.

Thesecommitteesareresponsiblefor:

• providingacustomer’sviewonkey

businessissues

•buildinganunderstandingofissuesfacing

customers,andidentifyingcurrentand

futureexpectations

•workingwithourstafftodevelopbusiness

plansthatidentifyprices,investment

prioritiesandservice/performance

measuresandstandards

•improvingrelationshipswithour

customersthroughcommunication,

problemsolvinganddisputeresolution

•linkingourbusinesstothecommunity.

Glenelg groundwater forum

Challengesofmanaginggroundwater

acrossstateboundarieswerediscussed

atagroundwaterforumheldforirrigators

intheGlenelgregion.

Nearly40interestedpeopleattended

theforum,heldbySouthernRural

Water (SRW).

PresentersincludedRandallNottfrom

theVictorianDEPI,whospokeaboutthe

managementgroundwatermanagement

intheborderzone.

Healsooutlinedsomethechallenges

thatlieahead,particularlyin

managingwatertakenfromtheupper

Bridgewater aquifer.

DanielaConesafromtheSouthAustralia

DepartmentofWaterpresentedon

changessoontocometowater

managementinthestate,andPenny

WinbanksfromSRWtalkedabout

SRW’s3Dgroundwatermappingandits

SouthWestGroundwaterAtlas.Copies

oftheatlaswereavailableattheforum.

SRW’sManagingDirector,Clinton

Rodda,outlinedtheorganisation’srole

andsomeofitsstrategiesforimproving

watermanagement.

Participantsalsohadthechance

todiscussdevelopmentoflocal

managementplansforgroundwaterin

theregion.

“Thefeedbackwe’vehadfromthedayis

thatlocalcustomersreallyappreciated

theforumandwouldlikeittohappen

everyyearorso,”saidClinton.

“Therewereexcellentquestionsand

discussionsfromthegroup.”

HesaidSRW’sBoardisplanningavisit

totheregionnextyear.


Servingourcustom

ers

19

Thecommitteesmeetonamonthly

orbi-monthlybasis,andcontributeto

developingplansandresponsesforboth

immediateandlonger-termissues.

Wesometimessupplementthese

committeeswithworkinggroupsandother

committeesasrequired.

Groundwater and Rivers

Weconsultwithwaterusersacross

southernVictoriaonthewiderange

ofservicesweprovidethroughour

GroundwaterandRiversbusiness.

OurcorecommitteeistheSouthern

GroundwaterandRiversForum.

Thiscommitteeprovides:

•aforumtohelpshapeSRW’swater

approachtooperationsandpolicy

implementation

•high-levelinputintoplansforour

GroundwaterandRiversbusiness

•astrongcommunicationlinkbetween

SRWandourlicenceholders.

Itmeetsonaquarterlybasis.

Inourmoreintensiveareasofgroundwater

andsurfacewateruse,wemaintainlocal

areacommitteestoreviewaquiferandriver

response,especiallyintimesofdrought.

Thesecommitteesmeetannually.

Headworks

Ourheadworksbusinesshasasmall

numberofcustomers(generallybulk

entitlementholders).Wehaveprocesses

inplacetobothmeettheconsultation

requirementsofthebulkentitlementsand

ensureregularengagementwiththese

customers,including:

•managementandoperationalstaffmeet

withcustomersseveraltimesayearto

shareanddiscusspolicy,strategicand

operationalmatters

•bulkentitlementmeetings,where

bulkentitlementholdersandresource

managersmeettodiscussstorage

operatorcharges,forwardcapital

estimates,environmentalmattersand

operationalissues.

Customer service improvements

Internally,werunacustomerrelationship

teamwherestafffrommanydifferentparts

oftheorganisationshareinformationand

ideastoimprovecustomerservice.

Someoftheinitiativesincustomerservice

thisyearinclude:

•preliminaryworkonaCustomer

RelationshipManagementsystemwhich

willhelpusdealwithcustomerqueries

faster,andprovidecustomerswitha

choiceaboutthewaywecommunicate

withthem

•re-designingmanyofourformstomake

themeasierandsimplertofillout

•introducinganonlinechatservicetoour

website,enablingcustomerstomake

instantqueriesonline.

Feedback

Allfeedbackisvaluable.

Weseekfeedbackfromourcustomersand

stakeholdersinmanyways,including:

•ourcustomercommittees

•regularsurveysofcustomersin

all businesses

•feedbackformssenttoall

licence applicants

•regularstakeholdermeetings

•boardmeetingsbeingconductedacross

thestateinvolvingvisitsandmeetingswith

customersandstakeholders

•stafftalkingtocustomersastheyvisit

theirproperties

• customerfeedbackviaourwebsite.

Customerswhofeelthatacomplainthas

notbeensatisfactorilyresolvedareableto

contacttheEnergyandWaterOmbudsman

Victoria(EWOV)on1300500509.

Cultural diversity

SRWrecognisesandsupports

cultural diversity.

Wehaveaculturallydiversecustomer

base,particularlyintheintensivevegetable

growingdistrictsofWerribeeand

BacchusMarshandareassuchasthe

KooWeeRupSwamp,whereaportion

ofourcustomersarefromnon-English

speaking backgrounds.

During2013–14,wecontinuedtodevelop

ourawarenessofaccessibleinformation

andplaceanemphasisonusingPlain

Englishandinformationmapping.This

hassimplifiedourcommunicationswith

customers,aswellasourinternaland

stakeholdercommunications.



InOctober2013,SouthernRuralWater

(SRW)launchedanew,freeservicefor

peoplewantingtofindsomeonetotrade

waterwith.

“Watermatch”isanonlinetradingforum

thatallowspeopletoregistertheir

interestineitherbuyingorsellingwater

insouthernVictoria.

Itisfastbecomingthefirstpointof

referenceformanypeoplewanting

tobuyorsellwater.AsofJune2014,

Watermatchhad174registeredusers

and99activeposts.Usersandwater

brokersarelistingnewadsdaily.

GeneralManagerGroundwater

andRivers,CraigParker,saidSRW

launchedtheserviceinresponseto

customer requests.

“Weknewthatalotofpeoplewere

havingtroublefindingsomeonetotrade

with–oftentheyhadtoadvertiseintheir

localpaper,orjustaskaround,”hesaid.

“WithWatermatch,anyonecaneasily

registertheirinterestinbuyingorselling

waterindifferentsystems.Theycan

alsoregisterforautomaticnotifications

wheneverwaterbecomesavailableto

buyorsellinaparticulararea.”

new water trading website

indigenous affairs

SRWseekstoadvanceourunderstanding

andrecognitionofindigenoussocial,

spiritualandcustomaryrights.Our

actions include:

•referringnewlicenceapplicationsto

traditionallandownergroupsaspartof

ourpublicprocesses

•consultingindigenousgroupswhen

planningforanymajorprojectonwaterways

•supportingNAIDOCWeekactivities.

SRW’spolicyontheInvolvementand

AcknowledgementofTraditionalCustodians

requiresthatforceremonialevents,wewill:

•identify,anddealwith,therelevantgroup

oftraditionalcustodians

•contacttraditionalcustodianswell

inadvanceofplannedceremonial

eventsandinvitetraditional

custodian participation

•inviteanappropriaterepresentativeofthe

traditionalcustodianstomakeawelcome

tocountrystatement

•formallyacknowledge

traditional custodians.

Social sustainability

Hardship and drought

Weknowthatarangeofpersonaland

externalissues–includingahotanddry

summer,marketfluctuationsandpersonal

hardship–oftenimpactsonmanyofour

customers’businesses.

WecontinuetooperateourCustomer

HardshipPolicy.Thisformalisesourpayment

planarrangements,whereanaccount

servicefeeisleviedforthosecustomerswho

optforanindividualpaymentplan.Interest

isnotchargedwhereanaccountservice

feeapplies,whichactstolowerthecostto

thecustomerwhilstallowingustorecoup

adequatechargestomeetourcostofdebt.

Ourpolicystatesthatwherecustomers

experiencehardship,weseekto

understandtheirsituationandfind

responseswhicharemutuallyacceptable.

Thismayinvolveindividualdiscussions

withcustomers,orwithourcustomer

consultativecommittees.Solutionswill

betailoredthatassistthecustomer

anddonotnegativelyimpactonour

financialperformance(suchaswaivers

orrebates)orrequirecrosssubsidyfrom

other customers.

Solutionsthatareprovidedtogroupsof

customersareappliedconsistentlyacross

thatgroup.

Community service obligations

During2013–14,SRWgranted$13,766.84

inpensionerconcessions.Thiscompares

with$12,593.50thepreviousyear.

Craigsaidthatevenpeoplewhoarenot

internetuserscanusetheserviceby

talkingtoSRWstafftoarrangeanentry.

Watermatchcanbeusedforthe

Macalister,WerribeeandBacchus

MarshIrrigationDistricts,groundwater

systemsthroughoutsouthernVictoria,

andriverandcreeksystemsinsouthern

Victoriaotherthanthosecontrolledby

Melbourne Water.

Craigsaidit’simportanttonotethat

SRWdoesnotactasawaterbrokerin

theprocess.

“Wecannotadvisepeopleontheprice

ofwater,ormatchthemindividually

withabuyerorseller,”hesaid.“Buyers

andsellersstillneedtogothroughour

normalapplicationprocess.”

TheWatermatchwebsitealsohas

linkstolocaltradingrulesandtrading

applicationforms.


Workingw

ithstakeholders

Wewelcomethechallengeofmaintaining

closeworkingrelationswiththeseentities.

Wehavedevelopedasuiteofapproaches

tosuitthedifferentsituationsofeach

stakeholder.Theseincluderegularsenior

managementmeetingswith:

•WellingtonShireCouncilfortheMacalister

IrrigationDistrictandLakeGlenmaggie;

WyndhamCityCouncilfortheWerribee

IrrigationDistrict;MooraboolShireCouncil

fortheBacchusMarshIrrigationDistrict,

PykesCreekReservoirandMerrimu

Reservoir;andMeltonShireCouncilfor

theMeltonReservoir

•MelbourneWater,WestGippsland

CatchmentManagementAuthorityand

PortPhillipandWesternportCatchment

ManagementAuthority,aboutlandand

waterresourcemanagementissuesand

initiatives,particularlyforourirrigation

districtsandstorages

•BulkEntitlementmeetingsfortheLatrobe

andWerribee/Maribrynongsystemswith

theentitlementholders.

Werelyonalessstructuredbutclose

dialoguewithothermunicipalities,water

corporationsandcatchmentmanagement

authoritiesacrossSouthernVictoria.

Wealsocontributetodevelopmentand

implementationofpolicywithDEPIandthe

EnvironmentProtectionAuthority.

Working with stakeholdersBuildingeffectiveworkingrelationshipswith

stakeholdersiscrucialtoSouthernRural

Water(SRW).Oneofourprimaryaimsisto

meetdefinedstakeholderobligations–on

timeandinfull.

Wealsoseektoworkwithourstakeholders

atadeeperlevelandwherewehave

commoninterests,tohelpthemmeettheir

objectiveswithinrelevantpolicyconstraints.

Ourregionincludesthemetropolitan

wholesalewatercorporation,six

metropolitanretailwatercorporations,three

retailurbancorporations,fiveCatchment

ManagementAuthorities,morethan25

ruralmunicipalitiesandmanymorecouncils

in urban Melbourne.

WealsoworkcloselywithotherState

Governmentagencies–especially

theDepartmentofEnvironmentand

PrimaryIndustries(DEPI)–inour

delegatedlicensingfunctions,aswellas

theEnvironmentProtectionAuthority,

DepartmentofHealthandtheEssential

ServicesCommission.

Someofthemanyotherstakeholdergroups

weworkwithinclude:

•TheMinisterforWaterandhisstaff

•DepartmentofTreasuryandFinance

•TheMinisterforEnvironmentandClimate

Changeandhisstaff

•OfficeofLivingVictoria

•Primaryindustrygroupssuchasthe

VictorianFarmersFederation

•EnvironmentVictoria

•Federalgovernmentagenciessuchasthe

BureauofMeteorology

•TheEnergyandWaterOmbudsman

of Victoria

•Environmentalandsustainabilitygroups

•Regionaldevelopmentorganisations.

Workingwithstakeholders04


Workingwithstakeholders04

Weworkwithlocalcommunitygroupssuch

asLandcare,andwithcommunitygroups

whowishtouseourfacilities,suchasthe

MelbourneSpeedboatandRunaboutClub

andsailinggroups.

Ourstafftakeonadditionalroles

representingSRWonoratgroupssuchas:

•VicWaterRedTapeWorkingGroup

•MacalisterIrrigationDistrictSustainability

Committee

•BunyipFoodbeltSteeringCommittee

•VicWaterSustainabilityTaskgroup

•DepartmentofHealthSafeDrinkingWater

RegulationReview

•MIDSustainabilityGroup(chairedby

the WGCMA)

•WellingtonCommunitySalinityGroup

•WerribeeSouthSteeringCommittee

•WesternTreatmentPlantCommunity

LiaisonCommittee

•CleanCoalVictoriaAdvisoryCommittee

•WyndhamHarbourDevelopment

StakeholderReferenceGroup

•LatrobeValleyMines–Regional

GroundwaterManagementCommittee

•GippslandWater&EarthResources

CoordinationCommittee

•CommitteeforGeelong–Leadersfor

GeelongAlumni

•HRProfessionalsNetworkGeelong

•VictorianWaterIndustryAssociation

– AssetRevaluationExpertGroup

•NewryandTinambaDiscussionGroups

•DEPIFocusFarmsGroup

•MECCommittee

•WellingtonShireMERCCommittee

•GippslandRegionalWater

Monitoring Partnership

involved in communities

Sponsorship

SouthernRuralWater(SRW)iscommitted

togrowingitsrelationshipwiththe

communitiesweserveinsouthern

Victoria.Oneofthewayswedothisis

through sponsorship.

Oursponsorshipfocusesonnot-for-profit

activitieswhicheither:

•strengthenlocalcommunities

•promotesustainableenvironmentalpractice

•educate,particularlyon

water-related topics.

Weprovidesponsorshiptocommunity

groupsandorganisations,industry

eventsoractivitiesandtostaffinvolved

incharitableeventsorextraordinary

not-for-profitpersonalendeavours.

Asanexample,thisyearweprovided

sponsorshiptoTimboonP-12Schoolin

westernVictoriatosupportitsAgriculture

CurriculumProjectandshowcase.

Community involvement

Ourstaffareinvolvedinlocalcommunities

inmanyways.

Weattendnumerouscommunityevents

topromoteruralwaterawareness.During

2013–14,weattendedeventssuchasFarm

WorldatLardnerPark,andtheBlackwood

ResidentsGroupannualmeeting.We

hostnumeroustoursforlocalschools,

communitygroupsandinternationalaid

groups,particularlyinourirrigationdistricts

andatourlargedams.Undertheauspices

ofWaterWeek,wehostchildrenfromlocal

primaryschoolsonspecificallydesigned

toursinourirrigationdistricts.

•SouthWestRegionalWater


•MeltonWeirDevelopment

Advisory Committee

•CityofGreaterGeelongWater

Taskforce Committee

•CityofBallaratWater

Resources Committee

•CorangamiteRegionalInlandAcid

SulphateSoilSteeringCommittee

•GlenelgHopkinsCatchmentManagement

AuthorityWetlandandRiverHealth

AdvisoryCommittee

•NRMReferenceGroup–WestVicDairy

(DairyAustralia)

•BarwonRegionIntegratedWaterCycle

ManagementGroup

•GlenelgHopkinsCatchmentManagement

AuthorityRCS

•CorangamiteCatchmentManagement

AuthorityRCSProjectPartnergroup

•BorderGroundwatersAgreement

Review Committee

Ourstaffalsochoosetobeinvolvedina

numberofcommunityfundraisingactivities.

During2013–14,thesehaveincludedthe

CentralGippslandHealthServicecycle

relay,Australia’sBiggestMorningTeaand

ourannual“RustyShovelGolfDay”raising

fundsforcharity.


Workingw

ithstakeholders

23

Freedom of informationSouthernRuralWater(SRW)isconsidered

tobeaGovernmentAgencyunderthe

FreedomofInformationAct1982and

isrequiredtocomplywithprocedures

thathavebeenprescribed,whichallow

membersofthepublictogainaccessto

informationheldbyagencies.

Adecisiontoreleaseinformationismade

byHayleyJohnson,ourFreedomof

InformationOfficer.

During2013–14,SRWreceivedsixrequests

forinformationundertheAct.

Reviewing

Internal review 0

Appeal hearing 0

ReviewbyFOICommissioner 0

Result

Informationreleased in full 2

Informationreleased in part 0

Informationnot released 1

Nodocuments/cancelledrequest 3

Responsestill required 0

How to make an application

Anapplicationfeeof$25.70appliesatthe

timeofthisreport’spublication.

AllFreedomofInformationrequestsshould

besentto:

TheFreedomofInformationOfficer,

Southern Rural Water

POBox153

Maffra,VIC,3860

Formoreinformation,pleasephoneSRW

on1300139510.

Over300primaryschoolstudentshada

closeupandpersonalexperiencewith

SouthernRuralWater’s(SRW’s)irrigation

districtsrecently.

Aspartofitsannualwatereducation

program,SRWhostedstudentsfortours

inboththewestandeastofVictoria.

StudentsfromStJamestheApostle

PrimaryschoolandIramooPrimary

SchoolenjoyedtoursoftheWerribee

IrrigationDistrict(WID).

StudentsvisitedWerribeeWeirtosee

howwatersentdownfromMelton

ReservoirisdivertedtotheWIDand

thendistributedthroughthechanneland

pipelinenetworktovegetablegrowers

andtheenvironment.

Theyalsovisitedalocalfarmerto

seeandhearhowimportantwateris

totheWerribeevegetablegrowers

andseehowthiswaterisusedto

producevegetables,thenpaidavisit

totheWerribeeZootolookatwetland

ecosystems.

“Itwasinterestingtofindouthowmuch

workittakestorunafarm,”saidone

student.“Ienjoyedthefarmvisitalot

becauseIhadn’tbeenonafarmthat

growscropsbefore.”

StudentsfromWurruk,StMary’sand

Bundalaguahprimaryschoolstoured

theMacalisterIrrigationDistrictand

Lake Glenmaggie.

Students study up on irrigation water

Studentshadachancetoseehow

waterflowsthroughirrigationchannels

tofarms,andthenvisitedCowwarrWeir

tolearnabouthowitsupplieswaterto

partoftheirrigationdistrict,andhowto

swimsafely.

AtLakeGlenmaggie,theyvisitedthe

lookoutpoint,thedamwallandthe

galleryinsidethedamwall–apopular

partofthetour.

“Ilikedwatchingthewaterflow,”said

onestudent.“Myfavouritethingwas

whenwewentintothegallery.Itwas

awesomewhenthewatercameout

the gates.”

MembersoftheMaffraLionsClub

helpedtoprovideabarbecuelunch.

SRWCommunicationsOfficer,Julie

Logansaidtheprogramhasreceived

someoutstandingfeedback.

“Wethinkit’sreallyimportantthatlocal

schoolchildrenunderstandwhythe

weirsandthechannelsarethere,and

howimportanttheyaretothelocalfarms

andcommunity.

“Wealsowanttotellthemcominginto

summerhowdangerousitistoswimin

ourchannels,andthatit’samuchbetter

optiontoswiminthesafeswimming

areaatPykesCreek,LakeGlenmaggie

orCowwarrWeirinstead.”

Runningheader02Runningsubhead


asset management

Wehaveinstalledanewassetmanagement

systemcalledAuthorityAssetManagement

byCivicatoreplaceourpreviousasset

register.Thissystemwillrecordallour

irrigation,damandmeterassets.Staffwill

useittoplan,recordandreviewallour

maintenancetasksandtorecordasset

information.Thesystemlinkswithour

mappinganddocumentrecordsystems,

whichwillmakeiteasiertoplanworks

andallowustokeepmoreaccurateand

completerecords.

Thereportsfromthesystemwillsupport

futuredecisionsonmaintenanceand

capitalprojects.

Systemrolloutwillcontinueintothe

next year.

Headworks assets

Themajorcapitalprojectsinour$7M

capitalprogramwere:

•$2.5MoutletupgradeatMeltonDam

•$2.5MrepairsatCowwarrWeir

TheMeltonDamoutletprojectinvolved

replacinganoldcast750mmdiameter

ironpipewithanewmildsteelcement

linedpipe.Theextensivecorrosionofthe

oldpipewasbeyondrepair.Theproject

involvedanumberofchallengesincluding

theneedtopassflowsandverydifficult

constructionconditions.Weplannedthe

worksinwintertominimisethepassingof

flowsandinstalledtemporarypumps.This

allowedustopassenvironmentalflowsand

tosupplyourcustomersintheWerribee

IrrigationDistrict.

technical Services TheTechnicalServicesgroupprovides

technicalservicesandleadsseveralmajor

strategicprojectsincluding:

•MID2030–whichoutlinesthe

modernisationstrategyfortheMacalister

IrrigationDistrict(MID)

•WesternIrrigationmodernisation–which

planstherenewaloftheWerribeeand

BacchusMarshIrrigationDistricts(WID

andBMID)

•SouthernGroundwaterFutures,which

providesinformationongroundwaterfor

customersandthecommunity

Thegroupprovides:

•long-termcapitalplanning

•planninganddeliveryofmajor

capital projects

•assetmanagementservices

•hydrogeologicaland

environmental expertise.

TheCowwarrWeirprojectrepairedflood

damage.Theworksincludedreplacing

asteelsheetpileweir,repairsofrock

beachinginthedissipaterandresurfacing

oferodedconcretebelowthespillway

gates.Weoriginallyplannedtheworksfor

2014butcompletedthemearlierdueto

furtherdamagefromtheJune2012floods.

Theprojectwaschallengingbecausethe

sitehadtopasshighflows.Ourtechnical

servicesandheadworksstaffdevised

meanstodivertflowaroundthesiteto

maintainflowsdowntheRainbowCreek.

AtLakeGlenmaggie,repaintingoftwo

spillwaygatesareduetobecompleteby

June2015.

AreviewstudyofMerrimuDamisnearly

complete.Thestudyshowedthatthedam

meetsaveryhighsafetystandardasitfalls

withintheAustralianNationalCommittee

OnLargeDams(ANCOLD)Limitof

Tolerability.Duetothisrating,nosignificant

worksarerequiredtoimprovedamsafety.

Withthisresult,allSouthernRuralWater

(SRW)damsnowfallwithintheLimit

ofTolerabilityandsotheymeetavery

highdamsafetystandard,whichisa

major achievement.

Technicalandenvironmentalsupport05


Technicalandenvironmentalsupport

irrigation assets

The$32MMID2030–Phase1Aprojectis

underway,withworkskickingoffinMay2014.

BetweenMayandAugust2014,morethan

$4Mofmodernisationworkswilloccur.The

Phase1Aprojectincludesarationalisation

programthatreducesthesizeofthesupply

systemandimprovesservicelevels.

TheMID2030projectwillsavewaterand

increaseservicelevelstosupportmore

productivityandtoboostthelocaland

stateeconomy.Thisinitialphasewillreturn

12,300 MLofwaterperyeartoproductiveuse.

In2013,the$0.5MWerribeemeasurement

projectinstalledsevennewdevicesto

accuratelymeasureflowsintheWID.The

newmeasurementnetworkallowsusto

accuratelymeasurethelossesacrossthe

districtforthefirsttime.Theanalysisof

thelosseswillinformfutureinvestment

decisionsforthedistrict.

InOctober2013,theBoardapprovedthe

$4.5MWID4/1pipelineproject.Thisproject

replaces6kmofageingandinefficient

channelswithanewpipeline.Detailed

designwillbecompletein2014.

Someoftheprojectbenefitsinclude:

•savingapproximately600MLofwaterby

eliminatingseepagefromthechannels

•improvingcommunitysafetybyremoving

openchannels

•reducingmaintenance

•improvingoperationanddeliveryof

water tocustomers.

TheSRWprojectteamismeetingwith

customerstodiscusstheirissuesand

concernsduringconstruction.Tendering

willoccurinlate2014.Theplanisto

constructthepipelineintwostagesover

the2015and2016winters.

Along-termplanfortheBMIDisinprogress

andwillbecompletein2015.

Hydrogeology

InApril,wecompletedcommunity

consultationforthePortPhillipand

WesternPortGroundwaterAtlas.Thefinal

versionthatweplantoreleaseinAugust

willcompletetheseriesofthreeatlases

coveringourentireregion.

Wehavestartedaprojecttopresentthe

groundwateratlasesandothergroundwater

informationonawebsite.Wewanttomake

groundwaterinformationeasytoaccess.

Encouragingfeedbackincluded:

•“Congratulationsforyourvisionand

initiativeindevelopingtheatlas.Valuable

togetanoverviewofgroundwater

managementconsiderations.”

•“Greatresourcetosupportmybusiness.

Colourandpresentationissuperb.”

•“Complexinformationhasbeen

collatedintoareadableand

understandable document.”

Sustainability

Wehavecontinuedtosupportthe

EnvironmentalManagementSystem

andheldtrainingprogramsforstaff

toensuretheyremainawareof

environmental matters.

IntheMID,weinstallednewequipmentto

monitornutrients.Wechangedthewaywe

estimatephosphorousleavingtheMIDto

improveaccuracyandtoreducecost.

Thegroupmanagesthesalinitypumpsin

theMIDtocontrolwatertablelevels.Last

yearwebroughtanumberofservices

in-housetoreducecosts.

Theteamwasinvolvedinarangeofother

projectsincludingboatingreviewsatMelton

andBlueRock,andthedisposalofland

aroundourstorages.

Working in partnership for sustainable water management

Wehavecontinuedtosupporttheplanning

forwaterinandaroundMelbourne,which

theOfficeofLivingVictoriaisleading.

TogetherwithSouthEastWaterand

MelbourneWater,wecontinuedtocontribute

totheviabilityassessmentoftheproposed

BunyipFoodbeltproject.Thisisexploringthe

potentialtouseupto26GL/yearofrecycled

waterfromtheEasternTreatmentPlant,to

developanintensiveagriculturezonefrom

thenortheastofMorningtonPeninsula

towardKooWeeRupandLangLang.

Emergency preparedness

Weprepareforemergencymanagementby

trainingstaff,maintainingemergencyplans

andtestingtheseplans.Thereweretwo

exercisestotesttheplansin2013–14.

ThetestheldinAugust2013includedother

emergencyagencies,andusedascenario

atourwesterndamsincludingearthquake,

extremefloodandwatercontamination.It

wasourfirsttestinthewestthatincluded

theSES,DEPI,Police,CFA,Melbourne

Waterandlocalcouncils.Wereceived

positivefeedbackfromparticipants.Thetest

improvesstaffskill,createsnetworkswith

otheremergencyagenciesandallowsusto

identifywherewecanimproveourplans.

InMay2014,weheldaSecurityRisk

ManagementPlanExercise,whichisa

legalobligation.Thisyearwebasediton

ourwesterndams.Externalparticipants

includedpolice,DEPIandWesternWater.

Theexercisewentverywellandtheexternal

attendeesgavepositivefeedback.

Weareplanningexercisesfortheeastern

storagesin2014–15.

Wealsojoinedinstateandnationalsecurity

andbusinesscontinuitynetworkstoremain

abreastofissuesandgoodpractice.



Toensuretheseoutcomesareachieved,

wemaintainanEnvironmentalManagement

System(EMS)consistentwithISO14001.

TheEMSwasreviewedin2011,resulting

inthedevelopmentofnewprocedures

forundertakingpreliminaryenvironmental

reviewsandenvironmentalrisk

assessments,bothofwhichhelpusgain

agreaterunderstandingofthepotential

environmentalrisksofouractivitiesand

efficientwaystominimisetheserisks.

Tocontinuetoimprovethesustainabilityof

ouroperations,wealso:

•findwaystosavewaterandimprove

wateruseefficiency

•minimiseourimpactsonthe

natural environment

•improveresourceefficiencywithaview

tobecomingcarbonneutral

•reducewasteandimproverecycling.

Wehavedevelopedanumberofprograms

andactivitiesdesignedtopromote

sustainabilitywithinSRW.Manyofthe

programsareongoing.

Environmental sustainability

our environmental performance

SouthernRuralWater’s(SRW’s)visionisto

beanenvironmentallysustainablebusiness.

OurEnvironmentalPolicysupportsthis

visionandoutlineshowweseektomeet

ourenvironmentalresponsibilities.

We:

•knowtheenvironmentalaspectsofour

operationsandhowtheyimpactthe

naturalenvironmentandcommunities

we serve

•continuallyimprovethewayweoperateto

reducetheseimpacts

•worktowardsachievingbestpractice

environmentalsustainability

•ensurethatourstaffareawareoftheir

obligationsthroughtrainingandsupport

•complywithallrelevantlegislation,

policiesandregulations

•continuallymonitorourperformance

againstagreedobjectives

•engagewithcustomersandthewider

communitytoenhancetheirknowledgeof

thewatercycleandwateruseefficiency.

measuring up in the WiD

Majorworksareunderwaytoimprove

accuracyandefficiencyintheWerribee

IrrigationDistrict(WID).

SouthernRuralWater(SRW)hasinstalled

sevennewdevicestoaccuratelymeasure

flowsintheWIDsystematacostof

approximately$500,000.

Thenewmeasurementnetworkallows

stafftoaccuratelymeasurethelosses

acrossthedistrictforthefirsttime.

Theanalysisofthelosseswillinform

futureinvestmentdecisionsfor

the district.

InOctober2013SRWalsoannounced

the$4.5MWID4/1pipelineproject.

Theprojectreplaces6kmofageingand

inefficientchannelswithanewpipeline.

Someoftheprojectbenefitsinclude:

•approximately600ML/yearofwater

savingsbyeliminatingchannellosses

•improvingcommunitysafetyby

removingsectionsofopenchannel

•reducingmaintenance

•improvingoperationanddeliveryof

watertocustomers.

Detaileddesignisunderwayandwill

becompletedin2014.Ourproject

teamismeetingwithcustomersto

discusstheirissuesandconcerns

during construction.

Tenderingwilloccurinlate2014,and

thepipelinewillbeconstructedintwo

stagesoverthewinterperiodsof2015

and2016.

The4/1pipelineprojectisbeingfunded

bymoneysetasidefromcustomer

paymentstorenewassets.Therewill

benopriceincreasetocustomersasa

resultoftheworks.

Updatingthecostsandbenefitsfor

pipingoftherestWIDisongoing.



27

Sustainable water use

tHE EFFiCiEnCY oF iRRiGation SYStEmS

WeareprogressingmodernisationplansfortheMacalisterIrrigationDistrict(MID)tofurther

reducelossesandincreaseservicelevels.Thefollowingtableliststhestagesandtarget

savingsfromtheseinvestments.

Stage name Completion date

Water savings target

OutletRationalisationProgram–Stage1 16August2013 350ML

MID2030LeadingWorksProgramStage1–HeyfieldRegulatorRetrofitProgram

16August2013 920ML

TheinvestmentstoimprovetheefficiencyoftheWerribeeIrrigationDistrict(WID)include:

•ameasurementnetworkacrosstheWIDsupplysystemtoallowaccuratemeasurement

of flowsatdifferentpartsofthesystem

•improvedmeasurementaccuracyattheWIDofftake

•approvaltoreplacethe4/1sub-systemchannelswithpipestosave600ML,withthese

worksplannedforconstructionduringthe2015and2016winters.

FortheBacchusMarshIrrigationDistrict(BMID),improvementinefficiencyrequires

upgradingthemainchannelorreplacingitwithapipe.Replacingthemainchannelwitha

pipealongitscurrentalignmentistooexpensive.Astudyhasstartedtoexplorearange

ofreconfigurationoptionsforthesupplysystem.Thepurposeofthisstudyistoidentify

affordablewatersavinginvestments.

WatER RECYCLinG

TheWIDRecycledWaterSchemewasestablishedin2005,anddeliversClassArecycled

waterfromMelbourneWater’sWesternTreatmentPlanttogrowersthroughouttheWID.

Thisyearsawthestartofanewrecycledwaterscheme,whereWIDcustomerssignedup

to3,800MLofrecycledwaterfor20years.DeliveriesbeganinNovemberthisyearandwe

delivered1,891MLtocustomersoverthesummer.

SuStainaBLE WatER StRatEGiES

SRWactivelycontributedtothe

developmentoftheWesternandGippsland

SustainableWaterStrategies.Inconjunction

withstakeholdersandagencies,wehave

implementedanumberofactionsfrom

thestrategies,andhaveplansinplaceto

completetheremainderofourrequirements

intheearlyyearsofWaterPlan3.

Importantoutcomeshaveincluded:

•formalisationofLocalManagementPlans

forallcatchments.Anumberofareaswill

havemoredetailedandimprovedplans

developedincomingyears

•anextensionoftimehasbeengrantedfor

Thorpdalefarmerswhoqualifytotakeup

thedamresizinginitiative

•newgroundwatercatchmentsdefined

byDEPIwillbeworkedintoLocal

ManagementPlans,leadingtomore

holisticgroundwatermanagement.



State Environment Protection Policy

SEPP (WatERS oF ViCtoRia)

UndertheStateEnvironmentProtection

Policy(WatersofVictoria),SRWandother

relevantwaterauthoritiesarerequiredto

workwiththeDepartmentofEnvironment

andPrimaryIndustries(DEPI),the

EnvironmentProtectionAgency(EPA)

andCatchmentManagementAuthorities

(CMAs)toidentifyacredible,independent

auditsystemanduseittoaudittheimpact

ofirrigationdraindischargesonsurface

waters.SRWisalsorequiredtohavea

NutrientReductionPlan.

SRWhasoperatedanutrientmonitoring

programforover10years.Originallybased

onadrainmonitoringprogramapproved

bytheEPA,theprogramhasrecently

beenreplacedbyariverbasedmonitoring

program.Thenewprogramwasdeveloped

inconjunctionwiththeWestGippsland

CMA,DEPI,EPA,GippslandLakes

MinisterialAdvisoryCommittee,Thiess,

SKMandtheUniversityofMelbourne

toprovideamoreaccuratemethodfor

estimatingdischargeloadsfromthedistrict.

SRWdevelopedandpreparedaNutrient

ReductionProgram,buttheplanhassince

beenreplacedbymorecomprehensive

plan,theMacalisterLandandWater

ManagementPlan.Administeredbythe

WestGippslandCMAwithstrongsupport

fromSRW,theplanprovidesstrategic

directionforthemanagementoflandand

waterinMIDandsurroundingdryland

areas.Theplanhasaparticularfocuson

reducingtheimpactofthelandandwater

assetsontheGippslandLakes.

other statutory obligations

REGionaL CatCHmEnt

manaGEmEnt StRatEGiES

SRWhasfiveCatchmentManagement

Authoritypartnersacrossitsregion:

Corangamite,EastGippsland,Glenelg

Hopkins,PortPhillipandWesternport,

andWestGippsland.EachCatchment

ManagementAuthorityhasaRegional

CatchmentStrategywhichsetsdirections,

strategiesandactionstobepursuedbyall

catchmentpartners.

WesupporteachRegionalCatchment

Strategythrough:

•continuedstrengtheningofthelicensing

ofsurfaceandgroundwater,including

furtherdevelopmentofpublicprocesses

andincreasingrigourintheinformation

providedinsupportofapplications

•productionoflocalmanagementrulesfor

groundwaterandrivers

•continuingourprogramtometerall

significantwaterusers,includingreducing

thresholdsforwhenameterwillbefitted

andmeteringwaterindairyshedsusing

10MLormore

•contributiontorivermonitoringthrough

regionalmonitoringpartnerships,

suchastheGippslandRegional


•contributingtolocalcatchmentplans

suchastheMacalisterLandandWater

ManagementPlan

•supportforVictoria’sWaterRecycling

ActionPlanthroughtheWIDRecycled

WaterScheme

•contributingtomanaging

irrigation-inducedsalinityintheMID

throughthelocalSalinityManagement

Planandtheinstallationandoperationof

groundwatercontrolpumps.

InthecaseoftheWestGippsland

strategies,weplayamajorroleinthe

implementationoftheMacalisterLand

andWaterManagementPlan,areactive

participantsintheMIDSustainability

Groupandmanageamajornutrient

monitoring program.

ThepurposeoftheMIDSustainability

Groupistoaddresstheoverarching

sustainabilityissueswhichcurrently

facetheMID.Itaimstobringtogether

stakeholdersandtechnicalexpertiseto

adoptaholisticappropriateinensuringa

sustainablefutureforwaterintheMID.

BioDiVERSitY

SRWrecognisestheecologicallinkages

betweendifferentpartsoftheenvironment

(egstreams,streamsidevegetation,and

thebiodiversitytheysupport),andisaware

thatouractionsandstrategiesinfluence

biodiversityconservation.

Ouraimistoworkwithotherstakeholders

toimplementinitiativessuchasRegional

CatchmentStrategies.

ViCtoRian WatERWaY

manaGEmEnt StRatEGY

TheVictorianWaterwayManagement

Strategyprovidesaframeworktomanage

andrestoreourriversoverthelongterm.

Keyelementsofthestrategyrelevantto

SRWare:

•facilitatingthemovementofwatertoits

highestvalueuse

•providingandmanagewaterfor

the environment

•restoringflow-stressedriversystems.



29

Werribee irrigation District Recycling Scheme – Regional Environment improvement Plan

TheWIDRecycledWaterSchemeis

regulatedbya“RegionalEnvironmental

ImprovementPlan”(REIP)approvedbythe

EnvironmentProtectionAuthority.

TheREIPestablishesenvironmental

requirementsforSRW,MelbourneWater

andcustomersincludingmeasures

toprotectthesoil,groundwaterand

receiving waters.

Underthenewcustomersupply

agreements,wemanagethedeliveryof

recycledwatertoensurethatitselectrical

conductivity(EC)isbelow1800µS/cm.

This ismanagedbyshandyingthewater

withriverwaterormetrowateras required.

Thisyearwehadaverificationauditofour

2009REIPasrequiredundersection53V

of theEnvironmentProtectionAct1970,

withnomajorissuesidentified.

Therecommendationsarebeing

incorporatedintothenewREIPwhich

covers2013–14onwards.Wehaveagreed

withtheEPAthatthenewREIPwillbe

anongoingdocumentthatreflectsour

long-termcustomersupplyagreements

withatotalcontractedvolumeof3,800ML.

Themonitoringresultsintheannualreport

forthe2012–13seasonshowedimproving

soilconditionsandnogroundwaterimpacts

evenwithalargervolumeofrecycled

usedintheWID.Thisdemonstratesthat

therecycledschemeunderthenewREIP

is sustainable.

Corporate water consumption

SRW’scorporatewaterconsumption

for2013–14was2,424kilolitres.Total

consumptionof4.27kilolitresper157.56

fulltimeequivalentemployeeslocated

atallsiteswasbasedonwaterusedfor

amenities,lawns,gardens,vehiclewashing

andmiscellaneoususesaswellasfor

capitalprojectsandconstruction.

Victorian urban Stormwater: Best Practice Environmental management Guidelines

SRWoperatesdrainageschemesinits

irrigationdistrictsbutdoesnotprovidean

urbandrainageservice.

Greenhouse gas emissions

Waterwillbeakeyareaofvulnerabilityas

aresultofclimatechange,duetochanges

inrainfall,temperature,evaporationand

humiditypatterns.In2013–14wecontinued

toworkcloselywithourregionalpartners

andlocalcommunitiestounderstandthe

potentialimpactsofclimatechangeonour

wateranddrainagesystems.

Wearefocusingonusingmorefuel-

efficientvehicleswithinourfleet.Weare

inpartnershipwithGreenfleettooffset

carbonemissionsfromourvehiclefleet

throughtheplantingofnativeforests.We

alsopurchasegreenpowerforthemajority

ofourelectricityneeds.Inaddition,we

havecommercialcontractswithenergy

supplierstooperatehydro-electricschemes

atBlueRockandGlenmaggieandare

currentlylookingatotheropportunitiesin

ournetworktogeneraterenewableenergy.

Theseinitiatives,combinedwiththeuseof

solarcellsinthefield,significantlyreduce

ourcarbonfootprint.

Thetableonpages30–31providesa

summaryofourgreenhousegasemissions

for2013–14.


Technicalandenvironmentalsupport05EnvironmentalData

Reporting of office‑based Environmental Data

Energy useEnergy Description unit amount

E1 Totalenergyusagesegmentedbyprimarysource Electricity Mj 1,509,366

(includingGreenPower) NaturalGas Mj 104,150

total 1,613,516

E2 GreenhouseGasEmissions(GhGE)associatedwithenergyuse,segmentedbyprimarysourceandoffsets

Electricity TonnesCO2 0

Natural Gas TonnesCO2 5

total 5

E3 Percentageof electricitypurchasedas GreenPower %TotalEnergyConsumption

100

E4 UnitsofofficeenergyusedperFullTimeEquivalent(FTE) Mj/FTE 10,241

E5 Unitsofofficeenergyusedperunitofofficespace Mj/m2 317

Waste ProductionWaste Description unit amount

Ws1 Totalunitsofwastedisposedofbydestination Landfill Tonnes 39

Recycle Tonnes 40

total 79

Ws2 UnitsofofficewastedisposedofperFTEbydestination Landfill Kg /FTE 55

Recycle Kg/FTE 47

total 102

Ws3 Recyclingrate %Total waste 50

Ws4 GhGEassociatedwithwastedisposal TonnesCO2 47

Paper usePaper Description unit amount

P1 TotalunitsofA4paperequivalentused Reams 1,153

P2 UnitsofA4paperequivalentusedperFTE Reams/FTE 7

P3 Percentageofrecycledcontentofpaperpurchased % 94

Water ConsumptionWater Description unit amount

W1 Totalunitsofmeteredwaterconsumptionbywatersource Kl 2,424

W2 UnitsofmeteredwaterconsumedinofficesperFTEbyusagetype Kl/FTE 4

W3 Unitsofmeteredwaterconsumedinofficesperunitofofficespace Kl/m2 0.23



transportationtransport Description unit amount

T1 Totalenergyconsumptionsegmentedbyvehicletype Diesel Gj 13,559

Petrol Gj 2,760

totaL 16,319

T2 Totalvehicletravelassociatedwithentityoperationssegmentedbyvehicletype

Diesel Km 3,137,419

Petrol Km 952,898

totaL 4,090,317

T3a TotalGhGEassociatedwithvehiclefleetsegmentedbyvehicletype

Diesel TonnesCO2 1,052

Petrol TonnesCO2 213

totaL 1,265

T3b GhGEassociatedwithvehiclefleetper1000kmsegmentedbyvehicletype

Diesel TonnesCO2/1,000km 0.302

Petrol TonnesCO2/1,000km 0.194

totaL 0.495

T4 Totaldistancetravelledbyair Km 23,202

T5 PercentageofEmployeesregularly(>75%ofworkattendancedays)usingpublictransport,cycling,walkingorcarpoolingtoandfromworkorworkingfromhomebylocalitytype

%ofTotalEmployees Metro Regional

1 6

GhGE1

GhGE1 2009–102 2010–11 2011–12 2012–13 2013–14

G1 TotalGhGEassociatedwithenergyuse3 TonnesCO2 939 5 5 3 5

G2 TotalGhGEfromvehiclefleet TonnesCO2 1,170 1,130 1,169 1,274 1,265

G3 TotalGhGEfromairtravel TonnesCO2 9 6 5 6 7

G4 TotalGhGEassociatedwithwastedisposal TonnesCO2 51 44 42 43 47

G5 TotalGhGEoffsetspurchased TonnesCO2 663 1,130 1,169 1,274 1,265

G6 AnyotherknownGhGEassociatedwithotheractivities TonnesCO2 0 0 0 0 0

NetGHGemissions TonnesCO2 1,506 55 52 52 59

notes

1 SRWdoesnotoperatewatertreatmentorwastewatertreatmentplants

2 In2009–10SRWenteredintocontractswithGreenfleettooffsetvehicleemissions

3 SRWhascontractswithitsenergysuppliertoprovide'greenenergy'.However,thisisnotalwaysprovided.


Learningandgrowth06

tERRY CLaPHam – manaGER WatER

SuPPLY EaSt

TerrywasappointedtoManagerWater

SupplyEastinNovember2011.Witha

mechanicalbackgroundintheautomotive

andoffshoredrillingindustries,hejoined

theRuralWaterCommission(nowSRW)in

1987toworkinfieldoperations.Sincethen

hehasheldplanning,co-ordinationand

supervisoryroles,andbeeninstrumentalin

developingandimplementingenvironmental

andefficiencyprojectsintheMacalister

IrrigationDistrict.

StuaRt WRiGGLESWoRtH

– CHiEF FinanCiaL oFFiCER

Havinggrownuponafamilyfarmsupplied

fromtheMacalistersystem,Stuartjoined

SRWasFinanceManagerinlate2005and

wasappointedChiefFinancialOfficerin

2011.Hehas6years’experienceworkingin

professionalpracticeforPriceWaterhouse

CoopersinMelbourneandSouthAfrica,

aswellasover5yearsintheUKworking

inFinanceandAccountingrolesfora

numberofcommercialandpublicsector

businesses.StuartholdsaBachelorof

CommerceandisamemberoftheInstitute

ofCharteredAccountants.

CRaiG PaRKER – GEnERaL manaGER

GRounDWatER anD RiVERS

CraigstartedwithSRWin2000asafield

officerintheMoeoffice.Hehasworked

inmanyroleswithinthebusinessandwas

appointedManagerGroundwaterand

Riversinearly2008,andthenGeneral

ManagerGroundwaterandRiversin

2010.Heisactivelyinvolvedincustomer

committeestobeabletounderstandthe

challengesfacedbyfarmers.

EDWaRD SmitH – manaGER WatER

SuPPLY WESt

EdwardwasappointedasManagerfor

WaterSupplyWestinmid–2011.Hejoined

SRWinDecember2006astheproject

managerfortheunbundlingofwater

entitlementsinourregulatedsystems,

whichgavehimabroadunderstanding

ofhowourirrigationdistrictswork.He

hasalsobeeninvolvedinthetransferof

ourunregulatedlicenceinformationtothe

StateWaterRegister.Beforehiscurrent

appointment,heworkedonseveral

strategicprojectsincludingthebalanced

scorecard.Edwardhasalsoworkedasa

businessanalystforanassetmanagement

companymaintainingandupgradingthe

LondonUndergroundrailsystem.

Leadership teamTheSouthernRuralWater(SRW)leadership

teamincludes:

CLinton RoDDa

– manaGinG DiRECtoR

ClintonjoinedSRWin2005afterspending

17yearsintheutilitiessectorand10 years

inmanagementconsulting.Clintonhas

previouslyheldseniormanagement

roleswithEnergyBrixandEasternArea

PowerGrid,andhasworkednationally

andinternationallyasaconsultant.

ClintonholdsaBachelorofBusiness,

aMasterofBusinessAdministration,a

DiplomainOntologicalCoachingandis

amemberoftheAustralianInstituteof

Company Directors.

PauL BYRnES – GEnERaL manaGER

tECHniCaL SERViCES

PauljoinedSRWin1999havingheld

technicalpositionsinanumberof

ruralwaterauthorities.Hebringsa

strongbackgroundinwaterandasset

management.Hehashadaleadrole

inestablishingstrategicreviewsofthe

irrigationdistrictsandinimplementing

majorwatersavingprojects.Paulholdsa

BachelorofEngineering,GraduateDiploma

inGISandRemoteSensingandaGraduate

CertificateinWaterEngineering.


Learningandgrowth

BRian CaRR – ComPanY SECREtaRY

BrianjoinedSRWinMarch2009after

havingservedasCorporateSecretaryof

Goulburn-MurrayWaterfor12years.His

earliercareerincludedworkininsurance,

investments,andpropertyinvestment.He

holdsaBachelorofEconomicsDegree

andisaFellowoftheGovernanceInstitute

of Australia.

LinCoLn EDDY – manaGER StRatEGY

anD PERFoRmanCE

LincolnjoinedSRWin1997asaProject

Accountantandhasheldnumerous

positions.HewasappointedManager

PeopleandPerformanceinlate2009and

tookuptheroleofManagerStrategyand

Performancein2014.Hepreviouslyworked

intheeducationsectorandhasexperience

runninghisownbusiness.Hehasa

BachelorofBusiness.

JanEt GRanGER‑WiLCoX – manaGER

PEoPLE anD CuStomER SERViCE

Janetspent12yearsinjournalism

beforemovingintopublicrelations,

workingintheruralsectorinVictoria

aswellasinthedisabilitysectorin

SydneyandMelbourne.Shejoined

SRWin2006asitsCommunications

Managerandwasappointedas

ManagerPeopleandCustomerService

in2014.SheholdsaMasterofArtsin

Communication Management.

Workforce data Asat30June2014,therewere166peopleemployedatSRW.By comparison,atthesame

timelastyearweemployed162people.

the following table shows the breakdown of staff by function as at 30 June 2013.Category 2013–14 2012–13

Executive officers 5 3% 4 2%

Senior management 7 4% 8 5%

Administration staff 31 19% 30 19%

Finance staff 9 5% 9 5%

Operational staff 114 69% 111 69%

total 166 162

the following table shows comparative staffing numbers by gender and employment category for the past three years.Category 2013–14 2012–13 2011–12

Female

Permanentfull time 22 13% 22 14% 21 13%

Permanentpart time 16 10% 16 9% 12 7%

Temporaryfull time 0 0% 0 0% 1 1%

Temporarypart time 0 0% 0 0% 0 0%

38 23% 38 23% 34 21%

male

Permanentfull time 121 73% 118 73% 121 75%

Permanentpart time 7 4% 5 3% 6 3%

Temporaryfull time 0 0% 1 1% 0 0%

Temporarypart time 0 0% 0 0% 1 1%

128 77% 124 77% 128 79%

total 166 162 162

Staff service in excess of 10 years male no. Female no.

10–15 years 17 6

15–20 years 14 4

20–25 years 5 0

25–30 years 1 0

Over30 years 18 0

Reason for cessation of employment 2013–14

%turnoverof total staff 4.2%

Resignation 5staffmembers

Retirement 1staffmember

Dismissed 1staffmember


Learningandgrowth06

TheSRWWomen’sNetworkhasbeena

self-managingteamforovertenyearsnow.

OurDiversityActionPlanwasupdated

duringtheyearwithnewactions,targets

andmeasures.

PerformanceDevelopmentPlanning(PDP)

continuestobeamajorfocus.ThePDP

programprovidesaforumforlinemanagers

andemployeestodiscusskeyjobobjectives,

performanceplansanddevelopment.Training

anddevelopmentneedsareassessedand

actionsputinplacefortheyearahead.

Wecontinuedourtrainingalliancewith

theChisholmInstitutetodeliverwaterand

businesstrainingforstaff.Over40staff

completedaqualificationinmanagement,

frontlineleadership,projectmanagementor

waterindustryoperationscoursesduring

theyear.Afurther6staffarecurrently

studyingahigherlevelCertificate3,4,

DiplomaorUniversitydegreelevelcourse.

DiversityWorkplacediversitymeanscreatingan

inclusiveenvironmentthatembraces

people’sindividualdifferencesandprovides

opportunitiesforallstafftoachievetheir

fullpotential.Whenstaffareencouragedto

workintheirareasofstrengthandcapability,

theyarehappier,moreproductiveandmore

likelytostaywithus.SRWrecognisesthe

needfordiversityinitsworkplaceandhas

developedaDiversityActionPlan.

Whilstdiversityincludesawiderangeof

factorsincludingculturalbackground,sexual

orientationandmore,ourgrouphaschosen

tofocusonfiveareasforthisfirstplanthat

webelieveareofimportancetoSRW:

•Gender

•Disability

•Age

•AboriginalandTorresStraitIslander

•Peoplefromanon-English

speaking background.

our peopleSouthernRuralWater(SRW)employes

166staffacrossour20southernVictorian

worksites.Ouremployeesworkwithin

irrigation,headworks,groundwater

andrivers,engineering,technicaland

corporate functions.

TheSRWEnterpriseAgreement2010

(EBA)isthemainindustrialagreementthat

regulatesstaffpayandconditions.TheEBA

wasnegotiatedin2010andapprovedby

theFairWorkCommissionforaperiodof

fouryearsuntiltheendofSeptember2014.

SRWalsoemploysfiveexecutives

includingtheManagingDirectorunder

contractconditionsregulatedbytheState

GovernmentExecutiveRemunerationPanel.

AnEmployeeConsultativeCommittee

(ECC)providesaforumtodiscussand

resolveindustrialissues.TheECCcanalso

considerissuesandredressclaimsofunfair

orunreasonabletreatment.

Positiondescriptionsareinplaceforeachrole.

Ourselectionprocessassessescandidates

againstadvertisedjobprerequisitesand

selectioncriteria,basedonthemeritand

equityemploymentprinciplesestablished

underthePublicAdministrationAct

2004.All newemployeesreceivea

formal induction.

Payandentitlementsareadministered

inaccordancewithsignedemployment

contractsandapprovedindustrialagreements.

Weareanequalopportunityemployerand

operateasmokefreeworkenvironment.

Thereisarangeofmeasuresinplaceto

ensureweprovideequalemployment

opportunitiesincludingpoliciesand

procedures,fourtrainedinternalpart-time

EqualOpportunityContactOfficersand

regularreviewsofourcompliancewith

legalandgovernmentobligations.Training

inbullyingandharassmenttopicswas

providedtostaffduringtheyear.

Thisplanhasbeenputtogetherbyagroup

ofSRWstaff.

Ineachoftheseareas,wehavesetgoals–some

ofthemaspirational–forimprovement.Inother

areas,werecogniseourlackofknowledge

andhavesetouractionplantoimprovethat

knowledgebeforewerefineourgoals.

What have we done?

WehavepartneredwithNationalDisability

RecruitmentService(NDRS)andimprovedour

recruitmentprocesses,tomakeourrolesmore

attractivetopeoplewithdisabilities.When

wehavejobvacancies,wewanttoattract

applicationsfrompeoplewithdisabilities,so

wesharethesewithNDRSanditsnetworks.

Weincludestatementsonourrecruitment

materials,statingourcommitmenttomaking

practicaladjustmentstoourworkplaceto

accommodateaccessandsupportneeds.

TheSRWWomen’sNetworkisopento

allwomenandfocusesonsupporting,

developingandempoweringwomenintheir

livesandcareers.Toattractwomentoour

workforce,wehaveupdatedourtemplates

toincludestatementsthatencourage

womentoapplyforourroles.Wenow

talkaboutflexibility,usegenderbalanced

photographsandhighlightourcommitment

toequalopportunity.

Tobringmoreyoungpeopleintoour

organisation,wehavere-establishedour

traineeshipprogram.Wehavecommenced

placementopportunitiesforuniversity

studentsandworkwithpeoplenearing

retirementtotransfertheirvaluable

knowledgetotheircolleaguesatSRW.

SRWisprovidingplacementopportunitiesto

fourMaffraCollegestudents.TheseYear11

&12studentsareworkingindifferentareas

ofourbusiness,whilecontinuingtolearnat

school.Weareproudtobesupportingthejoint

initiativebetweenWellingtonschoolclusterand

theLocalLearning&EmploymentNetwork.

ThisprojectcommencedonThursday1May

2014andwillrununtilNovember2014.


Learningandgrowth

35

Therevisedstrategywillfocusonnewareas,

includingoursafetyculture.Ourprimary

objectiveistoensureourpeopleworksafely,

sothattheycanreturnhomesafely.

taKE 1 anD taKE 5 CHECKLiStS

Ouroperationalstaffhavebeentrainedin

ourTake1andTake5–ariskassessment

checklistdesignedtoprepareforoperational

ormaintenancetasksandconsiderpotential

healthandsafetyhazardsbeforethey

arise.Wehavestartedasecondroundof

refreshertrainingtoinstilthestop,lookand

thinkprinciplesinourpeopleandhighlight

theimprovedsafetyoutcomeswhenrisk

assessmentsareadequatelycompleted.

nEaR miSS anD HaZaRD

iDEntiFiCation PRoGRam

Wehaveeducatedstafftoreportall

hazards.Thisisapositivemeasureand

allowshazardstobecontrolledorclosed

outbeforetheybecomeamajorproblem.

Retrainingallstaffinthenear-missreporting

andhazardsidentificationrequirements

duringtheyearhasseenaspikeinthenear

missfrequencyreportingrate.

HEaRtRaCK 2014

InApril2014ourvoluntaryannualHeartrack

healthassessmentswerecarriedout,witha

majorityofstafftakingpartintheprogram.This

preventativeprogramisvaluedbymanystaff.

Thisyear’sprogramonceagain

consisted of:

•fluvaccinations

•skincancerassessment(introducedon

therecommendationofourHealth,Safety

&EnvironmentCommittee),and

•healthcheckandriskassessment–

bloodpressure,height-to-weightratio,

cholesterolandsugarlevels.

StaffarereferredtotheirownGeneral

Practitionerforafurtherfollowupifhealth

issuesareidentified.

Women’s network Forum

SouthernRuralWater’s(SRW’s)female

employeesfeltempoweredandinspired

bytheinauguralWomen’sNetworkForum

in March.

TheforumwaspartofSRW’scommitment

todiversityandthevalueitcanbringto

the workplace.

TwentyfivefemalestaffandBoard

membersNaomiPyeandGabrielleBell

enjoyedtwodaysofactivities,trainingand

guestspeakers.

GeneralManagerGroundwaterand

Rivers,CraigParker,openedtheeventby

describingthehighsandlowsofhiscareer

journeyandprovidedsomevaluabletips,

includingseekingoutmentorsandbeing

preparedtospeakup.

SpeakersfortheforumincludedFrances

FeenstrafromThe100%Project,who

sharedstatisticsandconceptsabout

adaptiveleadership,andManaging

DirectorClintonRodda,whoaffirmedhis

supportfordiversityatSRW.

PsychologistandfacilitatorAnneBoland

ledaworkshoponemotionalintelligence

andappreciativeenquiry.

BoardDirectorNaomiPyesharedthe

storyofhercareerandencouragedstaff

to engagein“activecitizenship.”

Asessioncalled“mystory,mylife”gave

staffanopportunitytosharetheircareer

andlifestorieswiththeircolleagues.Staff

alsotooktheopportunitytoraisemoney

fortheMcGrathFoundationviaaspecial

lunchandraffle,raisingatotalof$430.

“Thestoriessharedoverthetwodays

werehonest,courageousandinspiring,”

saidorganiser,HRandLearningSpecialist

BelindaMcPherson.

“Thefeedbackreceivedaboutthe

workshopwasextremelypositiveand

everyoneislookingforwardtonextyear.”

occupational health and safetyWecontinuedtomanageour

Occupational HealthandSafety(OH&S)

responsibilitiesinaccordancewith

legislationandourcommitmentfor

continuousOH&S improvement.

OH&Sandthewelfareofouremployees,

contractorsandvisitorsisacorevalueofour

organisationandweareworkingtowards

ourobjectiveofazeroharmworkplace.

Wehaveundertakenanumberofactions

toenhanceoursafetyperformanceover

thepast12monthswhichhasimproved

our performance.

our major oH&S achievements

External oH&S system audit

Wecontinuedtousetheprofessional

servicesofKeithFarfor&Associatesto

undertakeourexternaltwoyearlyaudit

ofourhealthandsafetymanagement

systemandworksitesinordertoensure

wecomplywithourobligations.This

hasbeenabeneficialprocesstoassist

ourcontinualapprovalmodel.Nomajor

non-conformanceswereidentified.Twosite

hazardsrequiredurgentattentionandhave

sincebeenmanaged.Recommendations

forimprovementwereprovidedand

weareintheprocessofimplementing

these actions.

oH&S policy and strategy

OurOH&SpolicyisapprovedbytheBoard.

Wehavestartedtoreviseourhealthand

safetystrategywithaconsultationphase.

Ourpreviousstrategywasdevelopedby

ourpeople,andthisnewthreeyearplanwill

followthesamephilosophyasstaffbuy-in

hasbeenthefoundationforachieving

our objectives.


Learningandgrowth06

Compliance with the Carers Recognition Act 2012

SouthernRuralWater(SRW)isnot

responsiblefordevelopingorproviding

policies,programsorservicesthataffect

peopleincarerelationships.SRWdoes

supportstaffwithanentitlementfor

personalleaveinlinewiththeNational

EmploymentStandardsandSRW

EnterpriseAgreement.

SRWdoesnottolerateimproper

conductbyemployees,northetaking

ofreprisalsagainstthosewhocome

forwardtodisclosesuchconduct.Itis

committedtoensuringtransparencyand

accountabilityinitsadministrativeand

managementpracticesandsupportsthe

makingofdisclosuresthatrevealcorrupt

conduct,conductinvolvingasubstantial

mismanagementofpublicresources,or

conductinvolvingasubstantialrisktopublic

healthandsafetyortheenvironment.

SRWwilltakeallreasonablestepsto

protectpeoplewhomakesuchdisclosures

fromanydetrimentalactioninreprisalfor

makingthedisclosure.Itwillalsoafford

naturaljusticetothepersonwhoisthe

subjectofthedisclosuretotheextentitis

legallypossible.

During2013–14nodisclosuresweremade

to SRW.

How can i access SRW’s procedures for protecting persons from detrimental action?

SRWhasestablishedproceduresfor

protectingpersonsfromdetrimentalaction

inreprisalformakingaprotecteddisclosure

aboutSRWoritsemployees.Youcan

accessthisprocedureonourwebsite

www.srw.com.au(underprocedures)or

requestacopyfromanyofouroffices

duringbusinesshours.

HEaLtH SaFEtY anD EnViRonmEnt CommittEE (HSE)

TheHSECommitteeconsistsofnineworkgrouprepresentativesandeightmanagement

representatives.Itmetonsixoccasionsduringtheyeartoreviewourincidents,safety

plans,thestrategyprogression,ourstatisticalperformanceindicatorsandtodiscuss

interventionstrategieswhentrendswereidentified.

PoSitiVE PERFoRmanCE inDiCatoRS

Thehazardreportingandawarenessprogramcontinuestobeeffectivewithhundredsof

hazardsreportedandclosedoutinthepast12months.Thosenotclosedouthavebeen

consideredforfuturebudgeting.

Workplaceinspectionscontinuetomaintainthefocusonhazardidentification,asdo

worksitetoolboxmeetings.

Wehavecontinuedtotrainstaffinstatutoryandbestpracticetoenhanceandpromotesafe

workpractices.

WealsocontinuedtoparticipateintheVictorianWaterIndustryOH&SNetworktodiscuss

andshareindustry-relatedissuesandachievements.

the following table lists our other oH&S indicators for 2013–14 indicator 2013–14 2012–13

NumberofLostTimeInjuriesfortheyear 4 0

LostTimeInjuryfrequencyrate(permillionhoursworked) 12.8 0

Numberofdayslostduetoinjuriesoccurredduringtheyear 8 0

Numberofmedicaltreatmentinjuriesfortheyear 3 2

Totalnumberofincidents 20 18

Averagecostpercompensationclaim $2,314 $1,725

Medicaltreatmentfrequencyrate(permillionhoursworked) 9.6 6.6

Numberofreportedhazardsclosedout 528 472

Numberofworkplaceinspectionscompleted 62 51

Compliance with the Protected Disclosures Act 2012

The ProtectedDisclosuresAct2012

encouragesandassistspeopleinmaking

disclosuresofimproperconductbypublic

officersandpublicbodies.TheActprovides

protectiontopeoplewhomakedisclosures

inaccordancewiththeActandestablishes

asystemforthemattersdisclosedto

beinvestigatedandrectifyingactionto

be taken.


Learningandgrowth

37

Disclosures under the Protected Disclosure Act 2012

ThearchivedprocessesestablishedunderthesupersededProtectedDisclosureAct2012

areavailableuponrequest.

Thedisclosuresdetailedinthetablebelowrelatetotheperiodstarting1July2013and

endingon30June2014.

the number and types of disclosures made to SRW during the year (1 July 2013 to 30 June 2014):

2013–14 2012–13

Publicinterestdisclosures 0 0

Protecteddisclosures 0 0

ThenumberofdisclosuresreferredduringtheyearbythepublicbodytotheOmbudsmanfordeterminationastowhethertheyarepublicinterestdisclosures

0 0

ThenumberandtypesofdisclosedmattersreferredtothepublicbodybytheOmbudsmanforinvestigation

0 0

Thenumberandtypesofdisclosuresreferredbythepublicbodybythe Ombudsman

0 0

ThenumberofrequestsmadebyawhistleblowertotheOmbudsmantotakeoveraninvestigationbythepublicbody

0 0

Thenumberandtypesofdisclosedmattersthatthepublicbodyhasdeclinedtoinvestigate

0 0

Thenumberandtypesofdisclosedmattersthatweresubstantiateduponinvestigationandtheactiontakenoncompletionofthe investigation

0 0

AnyrecommendationsmadebytheOmbudsmanthatrelatestothepublicbody

0 0

Contacts

independent Broad‑Based

anti‑corruption Commission Victoria

Level1,NorthTower,459CollinsStreet,

Melbourne,Victoria,3001

Mail: IBAC,GPOBox24234,Melbourne,

Victoria,3000

Website: www.ibac.vic.gov.au

Phone: 1300735135

Email: seethewebsiteaboveforthesecure

emaildisclosureprocess,whichalso

providesforanonymousdisclosures.



DaSHBoaRDS

TheBalancedScorecardquarterlyreports

focusonhowwearegoingagainststrategy.

Toreportonoperationalperformance,

weuseadashboardwithimportant

performanceindicators.

Thedashboardisreportedmonthlytothe

SRWBoard.

InadditiontotheoverallSRW

dashboard,eachbusinesssection

withinthecorporationisimplementing

itsowndashboard,reportingtorelevant

senior managers.

managing riskRiskmanagementisrecognisedasakey

Boardresponsibilityandacontinuous

processatSRW.Followingthe2012–13

reviewoftheofcorporation’srisk

managementarrangementsbyMoore

Stephens,thispastyearsawthe

developmentof:

•ariskappetitestatement

•arevisedconsequencetable,which

considersarangeoffactors(people,

customers,prices,environment,3rdparty

losses,reputation)

•arevisedlikelihoodtable

•anewriskregister,with11corporaterisks

and9operationsrisks;and

•arevisedriskmanagementpolicy.

Appropriatecontrolsandapplicable

treatmentshavebeenidentifiedtomanage

eachrisk.

Individualcorporaterisksaresubjectto

Boardreviewonaregularbasis,withafull

riskreviewconductedbymanagement

andtheBoardonanannualbasis.The

ExecutiveRiskCommitteemeetquarterly,

wherecontemporaryissuesarediscussed

andriskoccurrencesconsidered.

Contingencyplansareinplacefor

significantrisks.

Strategy and planningMostofSouthernRuralWater’s(SRW’s)

strategicandoperationalplanningis

capturedwithinafive-yearWaterPlanand

anannualCorporatePlan.

TheWaterPlandescribesourobligations

andserviceoutcomes,aswellasproviding

abasisforregulatingourrevenueandtariffs

–whiletheCorporatePlantranslatesthis

intooperationalplansandbudgetsforthe

comingyear.2013–14wasthefirstyearof

WaterPlan3(2013–18).

During2013–14,wealsodevelopeda

long-termstrategyfortheorganisation,

lookingouttotheyear2033andthemany

challengesandopportunitiesforSRW

andmostimportantly,forourcustomers.

Thisworkledtoarevisionofour

current strategy.

Aswehaveinpreviousyears,wereportto

ourBoardagainstourmainstrategytool,

thebalancedscorecard.

Ourbalancedscorecardisatooltohelp

managementandtheBoardtokeepfocus

onthethingsthatreallymatter–thethings

thatwillhelpusachieveourvision.These

aredescribedinourstrategymap,which

definesourgoalsinthreeareas:

1.serviceimprovement

2.costanddebtreduction

3.learning,developmentand

underpinning systems.

Ineachofthesethemes,thestrategymap

identifiesourcustomerandstakeholder

outcomes,ourfinancialtargetsandour

businessprocessimprovements,aswellas

theskills,cultureandsystemsnecessaryto

deliverthese.

Ourstrategymapinfluencestheproduction

ofourCorporatePlanandthewaywe

implementprojectsforWaterPlan3.

Strengtheningourbusiness07

attestation

I,MrTerryBurgi,certifythatSRWhasrisk

managementprocessesinplaceconsistent

withtheAustralian/NewZealandRisk

ManagementStandard,andaninternal

controlsystemisinplacethatenables

theexecutivetounderstand,manageand

satisfactorilycontrolrisk exposures.

Theauditcommitteeverifiesthisassurance

andthattheriskprofileofSRWhasbeen

criticallyreviewedwithinthelast12months.

mr terry Burgi

BoardChairman

GippslandandSouthernRuralWater

Corporation

29August2014


Strengtheningourbusiness

Legislative compliance

Building Act 1993

SouthernRuralWater(SRW)complieswith

thebuildingmaintenanceprovisionsofthe

BuildingAct1993.Thebuildingsweownor

leasecomplywiththeserequirements.

national Competition Policy

Competitiveneutralityseekstoenablefair

competitionbetweengovernmentand

privatesectorbusinesses.Anyadvantages

ordisadvantagesthatgovernment

businessesmayexperience,simply

asaresultofgovernmentownership,

shouldbeneutralised.SRWcontinuesto

implementandapplythisprincipleinits

business undertakings.

Victorian industry Participation Policy (ViPP)

Therewerenocontractsenteredinto

2013–14towhichtheVIPPapplied.

major contracts

Nomajorcontractswereenteredintofor

the2013–14year.

availability of other information

Thefollowinginformationisavailable

onrequest,subjecttotheFreedomof

InformationAct1982:

•astatementthatdeclarationsofpecuniary

interestshavebeendulycompletedbyall

relevantofficers

•detailsofsharesheldbyaseniorofficer

asnominee,orheldbeneficiallyina

statutoryauthorityorsubsidiary

•detailsofpublicationsproducedbySRW,

andhowthesecanbeobtained

•detailsofchangesinprices,fees,

charges,ratesandleviescharged

by SRW

•detailsofanymajorexternalreviews

carriedoutonSRW

•detailsofmajorresearchand

developmentactivitiesundertaken

by SRW

•detailsofoverseasvisitsundertaken,

includingasummaryoftheobjectives

and outcomesofeachvisit

•detailsofmajorpromotional,public

relationsandmarketingactivities

undertakenbySRWtodevelop

communityawarenessofSRWand

its services

•detailsofassessmentsandmeasures

undertakentoimprovetheoccupational

healthandsafetyofemployees

•ageneralstatementonindustrialrelations

withinSRWanddetailsoftimelost

throughindustrialaccidentsanddisputes

•alistofSRW’smajorcommittees,the

purposesofeachcommitteeandthe

extenttowhichthepurposeshave

been achieved

•detailsofconsultanciesandcontractors

including:consultants/contractors

engaged;servicesprovided

andexpenditurecommittedto

each engagement.

Requestsshouldbesubmittedto:

TheFreedomofInformationOfficer,

Southern Rural Water

POBox153

Maffra,VIC,3860



Financial report

Ourpricesaresubmittedtothe

EssentialServicesCommission(ESC)

fordeterminationonanannualbasis.

On completionoftheESC’sdetermination,

SRWpublishespricesintheWeeklyTimes,

andcommunicatesdirectlytocustomers

throughnewslettersandfactsheets.

Financial management

Longtermfinancialviabilityisthekeypillar

ofourfinancialmanagement.Finances

aremanagedsothattheorganisationas

awholeiseconomicallysustainableand

thateachbusinessunitfullyrecoversits

owncosts.TheoperationsofSRWare

separatedintofourbusiness units:

•EasternIrrigation

•WesternIrrigation

•Headworks

•GroundwaterandRivers.

Eachbusinessunitmaintainsitsown

financialrecordswithanexpectationthat

revenuesaresufficienttocoverdirect

costsandanequitableshareofcorporate

andothersharedcosts.Thisinformation

isprovidedinanopenandtransparent

mannertoourcustomercommitteesfor

consultation,alongwithbeingavailableto

thebroadercustomerbase.

Performance 2013–14

Ouroperatinglossbeforetaxwas$4.71M

comparedtoabudgetedlossof$8.44M.

SRWpricesareapprovedbytheEssential

ServicesCommissiontorecoverthe

fullcostofoperation.Whilstthefull

costofoperationincludesfundingfor

thefutureinvestmentneedsofthe

business,ourpricingisdesignedto

reimbursedepreciationandcapital

chargesassociatedwithregulatorywater

infrastructureassetsonly.

Financial report

Economic regulation

EconomicregulationofSouthernRural

Water(SRW)isguidedbyarangeof

legislation,includingtheEssentialServices

CommissionAct2001, the WaterIndustry

Act 1994asamendedbytheWater

Legislation(EssentialServicesCommission

andotherAmendmentsAct2003)and

otherwaterindustrylegislation(including

the Water Act 1989,andtheEnvironment

ProtectionAct1970).Moreinformationon

theregulatoryframeworkissetoutwithin

theWaterIndustryRegulatoryOrder(WIRO)

madebytheGovernor-in-Council.

Pricing principles

SRWoperatesonafullcostrecoverybasis,

ensuringpricingissufficienttocoverannual

costsandtoprovideforfutureinvestment

needs.Pricingisfoundeduponthe

followingprinciples:

•SRWpricesshallaccordwithGovernment

andCOAGpolicies,withparticular

referencetoNationalCompetitionPolicy

•Pricingshallmeetthefullcostof operation

•SRWshallsetseparatepricesforeach

specificservicesupplied

•SRWpricesshallbeequitableandavoid

crosssubsidy

•SRWwillengagewithcustomer

committeesonpricingandtakeinto

accounttheirrecommendationsinmaking

pricingdecisions

•SRWpricesshallbesetsoasto

contributetotheinvestmentneedsofthe

businessconcerned.

Regulatoryassetsexcludeacquisitions

andconstructionredpriorto1July2004,

orassetsfundeddirectlybycustomeror

governmentcontribution.Asreportedby

theComprehensiveOperatingStatement,

depreciationexpenseislargelyassociated

withnon-regulatoryassets.Forthe2013–14

financialyear,theCorporationrecorded

$8.7Mofnon-recoverabledepreciation.

Thefollowingtabledescribesourfinancial

positiononcethesenon-regulatorycharges

areexcluded,whichreportsa$3.78M

surplusforthe2013–14financialyear

comparedtoaCorporatePlanbudget

of $1.67M.

Theimprovementinourresultcomparedto

CorporatePlanisreflectedby:

•lessdepreciationexpenseresulting

fromtheassessmentofsomewater

infrastructureassetswithanunlimited

usefullife

•lowernetinterestcostsfrom

–morecashondeposit

–lowerinterestrates

•morewatershareauctionreceipts

than expected

•lowerexpenditureonemployee

costs,metermaintenance,insurance

and utilities.

Fromtheperspectiveofourmainoperating

businessunits,ourfinancialresultswere

mostlyanimprovementonourCorporate

Plan,andprioryearresults,asdiscussed

above.Weexpectthisoutcomegiven

stable,predominantlyentitlementbased

revenuestreams,andanexpenditurebase

thatwasnotsubjecttoanysignificant

unplannedcostpressures.

Financialreport08


Financial report

Significant changes in financial position

Debtdecreasedby$3.5Minthe2013–14

year,andcashbalancesby$9.9M.

Thecashoperatingsurplusofthe

Corporationisinsufficienttofundour

capitalexpenditureprogram,anditis

necessaryforSRWtoutilisedebtfacilities

tofundthecapitalexpenditureprogram.

Ourdebtdecreasedin2013–14ascapital

expenditurewaslessthanforecast,however,

ourdebtsareexpectedtoincreasefor

thenextfouryears(untiltheendofthe

2016–17financialyear)asthecapitalworks

program intensifies.

ByJune2015,theCorporationexpects

toreturntonegligiblecashreservesand

recordadebtincreaseto$26.9M.

Expenditureoncapitalprojectsreached

$17.4Mforthefinancialyear.Itwas

necessaryforSRWtoutiliseouroperating

cashsurplusandexistingcashfacilitiesto

fundthisactivity.Thisexpenditureresulted

inandecreasetodebtrelativeto2012–13

of$3.5M.

major changes or factors affecting performance

Therewerenomajorfactorsaffecting

performanceotherthanthosediscussed

in thisreport.

Subsequent events which will affect operations in future years

Therewerenosubsequenteventsthatwill

affectoperationsinfutureyears,otherthan

thosealreadydiscussedinthisreport.

5 year performance summaryPerformance indicator 2013–14

$,000’s2012–13 $,000’s

2011–12 $,000’s

2010–11 $,000’s

2009–10 $,000’s

InternalFinancingRatio 42.28% 59.22% 85.72% 96.02% 82.02%

GearingRatio 1.43% 1.70% 0.57% 32.00% 1.41%

InterestCover(EBIT) NA NA NA NA NA

InterestCover(Cash) 10.20 60.50 NA NA 71.50

ReturnonAssets -0.34% -0.30% -0.75% -0.34% -0.36%

ReturnonEquity -0.33% -0.25% -0.63% -0.88% -0.37%

Capital Plan Expenditure 2013–14Business 2013–14

Expenditure

Eastern Irrigation MID2030Nambrok–DenisonRegulatorRetrofit

MID2030EasternRegulatorRetrofit

MID2030HeyfieldRegulatorRetrofit

MID2030SouthernCowwarrBalancingStorage

MID2030Rationalisationprogram

Generalprojects

2,981,751

1,702,407

772,154

198,636

903,887

1,766,299

WesternIrrigation WID4/1project

Generalprojects

157,136

699,398

Headworks Meltonreservoirconduitreplacement

Cowwarrweirspillwayremediation

Generalprojects

1,308,002

2,131,008

3,041,161

Groundwater&Rivers Generalprojects 375,403

Other Assetmanagementsoftwareupdate

Generalprojects

598,128

771,495

total expenditure 17,406,864

Capital expenditure

SouthernRuralWaterhasbecomean increasinglycapitalexpenditureintensivebusiness.

Themajorcapitalprojectsarelisted inthetable below.


08FinancialReport

Consultancies

Eachyearweengageconsultantsto

provideexpertanalysisandadvice,to

facilitatedecision-making,andprovide

skillsnotcurrentlyavailablewithin

our organisation.

GREatER tHan $10,000

During2013–14wecontracted13 consulting

firmsforoperatingcontractsgreaterthan

$10,000toprovideadvice,skillsand

services.Thetotalcostoftheseconsultancies

in2013–14was$353,974.Pleaserefertothe

tablebelowforgreaterdetail.

LESS tHan $10,000

During2013–14wecontracted5

consultingfirmsforoperatingcontracts

lessthan$10,000toprovideadvice,skills

andservices.Thetotalcostofthese

consultanciesin2013–14was$33,628.

Forcomparison,during2012–13we

engaged7consultingfirmsatatotalcost

of $41,443.

Consultant Purpose of consultancy Start date

End date

total approved project fee

Expenditure 2013–14

Future expenditure

Ernst&Young FinancialReportingProfessionalAdvice Jul–13 Aug–13 15,000 14,048 Nil

HydroTasmania RiskReview–GlenmaggieHydroStation Jul–13 Mar–14 45,000 45,900 Nil

I&JTryPtyLtd Workshopfacilitation–leadership&culturaldevelopment

Sep–13 May–14 15,000 17,456 Nil

MooreStephensMelbournePtyLtd

RiskAppetiteStatementReview Jul–13 Nov–13 20,000 19,840 Nil

RMConsultingGroup(RMCG) BusinessCaseDevelopment-MelbourneWaterDiversions

Jul–13 Nov–13 30,000 29,545 Nil

TLCastles AuditCommittee-ExternalMember May–13 Mar–15 10,000 10,164 7,500

UnderwoodManagementGroup

Independentchair-Groundwateratlasworkshops

Nov–13 Jun–14 15,000 15,404 Nil

URSAustraliaPtyLtd WerribeeDistrict-REIPupdate Jul–13 Aug–13 20,000 21,495 Nil

GlossopTownPlanningPtyLtd Townplanningsupport-Mooraboolplanningscheme

Jul–13 Jun–14 25,000 27,758 Nil

SinclairKnightMerz Salinewaterintrusionmanagementframework

Apr–14 Jun–14 30,000 26,545 Nil

HayGroupPtyLtd ClassificationStructureReview Nov–13 Feb–14 15,000 15,450 Nil

SpacialVisionInnovationsPty Ltd

ProductionofGroundwaterAtlas Aug–13 Feb–14 75,000 70,280 Nil

GHDPtyLtd WerribeeRiverWWCM Apr–14 Jun–14 40,000 40,088 Nil


Financial report

5 year financial summaryRevenue 2013–14

$,000’s2012–13 $,000’s

2011–12 $,000’s

2010–11 $,000’s

2009–10 $,000’s

Feesandcharges 25,123 24,301 21,985 21,322 23,810

Storageoperatorcharges 3,427 3,514 3,541 3,642 3,341

Governmentgrants 725 513 892 367 1,003

Other 2,009 2,133 2,404 2,197 3,266

total revenue 31,284 30,461 28,822 27,528 31,420

Expenditure

Operationsandmaintenance 17,883 17,655 19,018 17,919 21,596

Other 6,145 5,578 5,352 4,886 4,718

Earnings before interest, taxation and depreciation 7,256 7,228 4,452 4,723 5,106

Depreciation 10,856 10,265 13,179 6,766 6,336

Financecost 1,107 490 263 417 463

total expenditure 35,991 33,988 37,812 29,988 33,113

Equity

Netoperatingstatutoryloss (4,707) (3,527) (8,990) (2,460) (1,693)

movement in retained earnings (4,707) (3,527) (8,990) (2,460) (1,693)

Balance Sheet

Currentassets 10,330 20,091 9,335 7,071 11,245

Non-currentassets 1,236,329 1,231,023 1,232,046 1,237,794 453,672

total assets 1,246,659 1,251,114 1,241,381 1,244,865 464,917

Currentliabilities 9,888 11,423 9,091 7,178 8,559

Non-currentliabilities 242,298 244,878 235,005 233,854 5,368

total liabilities 252,186 256,301 244,096 241,032 13,927

Netcashflowsfromoperations 6,773 7,739 6,022 6,918 6,913

Paymentsforproperty,plantandequipment 16,018 13,068 7,025 7,206 8,428

Financial result reconciliation

Netoperatingstatutoryloss (4,707) (3,527) (8,990) (2,460) (1,693)

Addbacknon-regulatorydepreciation 8,696 8,375 10,859 4,505 4,189

Lessrenewalscharge (1,328) (1,879) (1,879) (1,878) (1,902)

Addnon-regulatoryassettransfersandwrite-offs 328 917 411 221 488

Addmajorprojectsexpensed 791 376 527 790 1,589

operating result 3,780 4,262 928 1,178 2,671


FinancialReport08Comprehensive operating Statementfor the year ended 30 June 2014

notes

2013–14 $’000’s

2012–13 $’000’s

Revenue from operating activitiesServicecharges 2(a) 28,658 27,905

Chargeableworks 1(d) 168 397

Governmentcontributions 1(d),2(a) 725 456

Interest 1(d) 390 236

Otherrevenue 2(a) 301 311

Revenue from non‑operating activitiesGovernmentcontributionforcapitalpurposes 1(d),2(a) 0 57

Saleofcreatedwaterentitlement 2(a) 1,024 942

Netgainondisposalofassets 1(f),2(b) 18 157

total revenue 31,284 30,461

Expenses from operating activitiesBulkwater 2(c) 492 417

Environmentalcontribution 1(e) 423 281

Employeebenefits 1(e),2(c) 13,410 12,764

Interest 1(e) 905 366

Financialaccommodationlevy 2(c) 202 124

Insurance 1(e) 731 770

Motorvehicleoperatingcosts 1(e) 859 877

Professionalservices 1(e) 1,011 1,082

Propertyandoccupancy 1(e) 539 545

Telecommunications 1(e) 435 437

Suppliers&materials 1(e) 5,033 4,186

Chargeableworks 1(e) 168 397

Depreciationofregulatoryassetbase 1(e),2(c) 2,755 2,450

Depreciationofotherassets 1(e),2(c) 8,101 7,815

Amortisation 1(e),2(c) 595 561

Writtendownvalueoftransferredassets 2(c) 48 635

Writtendownvalueofassetswrittenoff 2(c) 284 282

total expenses 35,991 33,989

net result before income tax expense (4,707) (3,528)

Incometaxrevenue 1(j),3 1,416 1,055

net result for the period (3,291) (2,473)

TheaboveComprehensiveOperatingStatementshouldbereadinconjunctionwiththeaccompanying notes.


Financial report

45

Comprehensive operating Statement continuedfor the year ended 30 June 2014

notes

2013–14 $’000’s

2012–13 $’000’s

net result for the period (3,291) (2,473)

Othercomprehensiveincomefortheperiod 0 0

total comprehensive income for the period (3,291) (2,473)

TheaboveComprehensiveOperatingStatementshouldbereadinconjunctionwiththeaccompanying notes.


FinancialReport08Balance Sheetas at 30 June 2014

notes

2013–14 $’000’s

2012–13 $’000’s

assets

Current assets

Cashanddeposits 1(f),4 5,005 14,874

Receivables 1(f),5 4,914 4,935

Inventories 1(f),6 157 137

Othercurrentassets 254 145

total current assets 10,330 20,091

non‑current assets

Infrastructure,property,plantandequipment 1(f),7(a) 1,233,273 1,228,234

Intangibleassets 8 3,056 2,789

total non‑current assets 1,236,329 1,231,023

total assets 1,246,659 1,251,114

Liabilities

Current liabilities

Payables 1(g),9 4,364 3,666

Interestbearingliabilities 10 1,030 3,530

Employeebenefits 1(g),11 4,494 4,257

total current liabilities 9,888 11,453

non‑current liabilities

Payables 12 13

Interestbearingliabilities 10 16,740 17,770

Employeebenefits 1(g),11 246 379

Deferredtaxliabilities 1(j),3 225,300 226,716

total non‑current liabilities 242,298 244,878

total liabilities 252,186 256,331

net assets 994,473 994,783

Equity

ContributedCapital 12 396,201 393,220

Assetrevaluationreserve 13 558,344 558,344

Accumulatedfunds 14 39,928 43,219

total equity 994,473 994,783

TheaboveBalanceSheetshouldbereadinconjunctionwiththeaccompanying notes.


Financial report

47

Statement of Changes in Equity for the year ended 30 June 2014

notes

Contributed Capital $’000’s

asset Revaluation

Reserves $’000’s

accumulated funds

$’000’stotal

$’000’s

Balance as at 1 July 2012 393,220 558,344 45,692 997,256

Netresultfortheyear 0 0 (2,473) (2,473)

Othercomprehensiveincome 0 0 0 0

total comprehensive income for the year 0 0 (2,473) (2,473)

Balance as at 30 June 2013 393,220 558,344 43,219 994,783

Netresultfortheyear 0 0 (3,291) (3,291)

Othercomprehensiveincome 0 0 0 0

total comprehensive income for the year 0 0 (3,291) (3,291)

TransactionswiththeStateGovernmentinitscapacityasowner

2,981 0 0 2,981

Balance as at 30 June 2014 396,201 558,344 39,928 994,473

TheaboveStatementofChangesinEquityshouldbereadinconjunctionwiththeaccompanying notes.


FinancialReport08Cash Flow Statement for the year ended 30 June 2014

notes

2013–14 $’000’s

2012–13 $’000’s

Cash flows from operating activities

Receiptsfromcustomers 30,804 28,886

Receiptsfromgovernment 725 513

Paymentstosuppliersandemployees (25,523) (23,375)

Interestreceived 225 236

Interestpaid (963) (453)

NetGSTreceivedfromATO 1,505 1,969

net cash inflow from operating activities 21 6,773 7,776

Cash flows from investing activities

Paymentsforproperty,plant&equipment (16,018) (12,799)

Paymentsforintangibles (863) (269)

Proceedsfromsaleofproperty,plant&equipment 2(b) 788 1,327

net cash used in investing activities (16,093) (11,741)

Cash flows from financing activities

Proceedsfromborrowing 0 14,470

Repaymentofborrowing (3,530) (200)

ProceedsfromcontributionsbyStateGovernmentinitscapacityasowner 12 2,981 0

net cash provided by financing activities (549) 14,270

net increase in cash held (9,869) 10,305

Cashandcashequivalentsatthebeginningofthefinancialyear 14,874 4,569

Cash and cash equivalents at the end of the financial year 4 5,005 14,874

TheaboveCashFlowStatementshouldbereadinconjunctionwiththeaccompanying notes.


Notes

Notes

note 1 Significant accounting policies

(a) Establishment of the Corporation


Authority(SRWortheCorporation)

wasestablishedon1July1995,bya

MinisterialOrderundersection98ofthe

Water Act 1989,dated30June1995.The

Authority’snamewaschangedon1July

2007toGippslandandSouthernRural

WaterCorporationunderSection85(1)of

the Water Act 1989,insertedbySection

54oftheWaterGovernanceAct2006.

ThebusinessnameoftheCorporationis

SouthernRuralWater(SRW).

TheCorporationisanotforprofitentity

ownedbytheStateGovernmentofVictoria,

reportedanddomiciledinVictoria.

(b) Basis of accounting

GEnERaL

Thefinancialreportincludesseparate

financialstatementsforSRWasan

individualreportingentity.Thisfinancial

reportisageneralpurposefinancialreport

thatconsistsofaComprehensiveOperating

Statement,BalanceSheet,Statementof

ChangesinEquity,CashFlowStatement

andnotesaccompanyingthesestatements

fortheperiodending30June2014.The

generalpurposefinancialreporthasbeen

preparedinaccordancewithAustralian

AccountingStandards(AAS),Interpretations

andotherauthoritativepronouncementsof

theAustralianAccountingStandardsBoard,

andtherequirementsoftheFinancial

Management Act 1994andapplicable

MinisterialDirections.TheCorporationis

anotforprofitentityforthepurposesof

preparingthefinancialstatements.

Whereappropriate,thoseAASparagraphs

applicabletonot-for-profitentitieshave

beenapplied.

Theaccrualbasisofaccountinghas

beenappliedinthepreparationofthese

financialstatementswherebyassets,

liabilities,equityincomeandexpensesare

recognisedinthereportingperiodtowhich

theyrelate,regardlessofwhencashis

receivedorpaid.

Theannualfinancialstatementswere

authorisedforissuebytheBoardof

Directorson15August2014.

Theprincipaladdressis:


Corporation

88JohnsonStreet,

Maffra,VIC,3860

aCCountinG PoLiCiES

Accountingpoliciesareselectedand

appliedinamannerwhichensuresthat

theresultingfinancialinformationsatisfies

theconceptsofrelevanceandreliability,

therebyensuringthatthesubstanceofthe

underlyingtransactionsorotherevents

is reported.

Unlessotherwisestated,allaccounting

policiesappliedareconsistentwiththose

of theprioryear.

FunCtionaL anD PRESEntation

CuRREnCY

Itemsincludedinthisfinancialreportare

measuredusingthecurrencyoftheprimary

economicenvironmentinwhichSRW

operates(‘thefunctionalcurrency’).The

financialreportispresentedinAustralian

dollars,whichistheCorporation’s

functionalandpresentationcurrency.

CLaSSiFiCation BEtWEEn CuRREnt

anD non‑CuRREnt

Inthedeterminationofwhetheranasset

orliabilityiscurrentornon-current,

considerationisgiventothetimewhen

eachassetorliabilityisexpectedtobe

realisedorpaid.Theassetorliabilityis

classifiedascurrentifitisexpectedtobe

turnedoverwithinthenexttwelvemonths,

beingtheCorporation’soperationalcycle

–see1(g)foravariationinrelationto

employeebenefits.

RounDinG

Unlessotherwisestated,amountsinthe

reporthavebeenroundedtothenearest

thousanddollars.Figuresinthefinancial

reportmaynotequateduetorounding.

HiStoRiCaL CoSt ConVEntion

Thisfinancialreporthasbeenprepared

underthehistoricalcostconvention,as

modifiedbytherevaluationoffinancial

assets,andcertainclassesofproperty,

plantandequipment.

aCCountinG EStimatES

Thepreparationofthefinancialreportin

conformitywithAASrequirestheuseof

certainaccountingestimatesthataffect

theapplicationofaccountingpoliciesand

thereportedamountsofassets,liabilities,

incomeandexpenses.Actualresultsmay

differfromtheseestimates.Italsorequires

managementtoexerciseitsjudgementin

theprocessofapplyingtheCorporation’s

accountingpolicies.

to theFinancialReportfortheyearended30 June 2014


Notes


aaSB 119 EmPLoYEE BEnEFitS

In2013–14,theCorporationhasapplied

AASB119EmployeeBenefits(September

2011,asamended)andtherelated

consequentialamendmentsforthe

first time.

Therevisedstandardchangesthedefinition

ofshorttermemployeebenefits.These

werepreviouslybenefitsthatwereexpected

tobesettledwithintwelvemonthsafter

theendofthereportingperiodinwhich

theemployeesrendertherelatedservice,

however,short-termemployeebenefits

arenowdefinedasbenefitsexpectedto

besettledwhollywithintwelvemonths

aftertheendofthereportingperiodin

whichtheemployeesrendertherelated

service.Asaresult,accruedannualleave

balanceswhichwerepreviouslyclassified

bytheCorporationasshort-termemployee

benefitsnolongermeetthisdefinitionand

arenowclassifiedaslong-termemployee

benefits.Thishasresultedinachangeof

measurementfortheannualleaveprovision

fromanundiscountedtodiscountedbasis.

Comparativeamountsfor2012–13and

therelatedamountsasat1July2012

havebeenrestatedinaccordancewiththe

relevanttransitionalprovisionssetoutin

AASB119.Theimpactisasfollows:

assumptions,processesandprocedures

fordeterminingfairvaluewererevisited

andadjustedwhereapplicable.Inlightof

AASB13,theCorporationhasreviewedthe

fairvalueprinciplesaswellasitscurrent

valuationmethodologiesinassessing

thefairvalue,andtheassessment

hasnotmateriallychangedthefair

values recognised.

However,AASB13haspredominantly

impactedthedisclosuresofthe

Corporation.Itrequiresspecificdisclosures

aboutfairvaluemeasurementsand

disclosuresoffairvalues,someofwhich

replaceexistingdisclosurerequirementsin

otherstandards,includingAASB7Financial

Instruments:Disclosures.

ThedisclosurerequirementsofAASB

13applyprospectivelyandneednotbe

appliedincomparativeinformationbefore

firstapplication.Consequently,the2012–13

comparativesofthesedisclosureshave

notbeenprovided,exceptforfinancial

instruments,ofwhichfairvaluedisclosures

arerequiredunderAASB7Financial

Instruments:Disclosures.

Themostsignificantaccountingestimates

undertakeninthepreparationofthis

financialreportrelateto:

•estimationofusefullives

•theimpairmentofassets

•recognitionofdeferredtaxassets

and liabilities

•unearnedrevenue

•provisions

•contingentassetsandliabilities

•thefairvalueofassets

(i.e.infrastructureassets).

FinanCiaL StatEmEnt

PRESEntation

TheCorporationhasappliedtherevised

AASB 101 PresentationofFinancial

Statementswhichbecameeffectivefor

reportingperiodsbeginningon,orafter,

1July2013,andAASB1054Australian

AdditionalDisclosureswhichbecame

effectiveforreportingperiodsbeginningon,

orafter,1July2013.

(c) Changes in accounting policiesSubsequenttothe2012–13reporting

period,thefollowingnewandrevised

Standardshavebeenadoptedinthe

currentperiodwiththeirfinancialimpact

detailedasbelow.

aaSB 13 FaiR VaLuE mEaSuREmEnt

AASB13establishesasinglesourceof

guidanceforallfairvaluemeasurements.

AASB13doesnotchangewhenSRW

isrequiredtousefairvalue,butrather

providesguidanceonhowtomeasure

fairvalueunderAASwhenfairvalueis

requiredorpermitted.TheCorporation

hasconsideredthespecificrequirements

relatingtohighestandbestuse,

valuationpremise,andprincipal(ormost

advantageous)market.Themethods,

impact on Comprehensive result 2012–13 $’000’s

Decreaseinemployeebenefitexpense

impacts on liabilities and equity $’000

as at 1 July 2012 as

previously reported

aaSB 119 adjustments

as at 1

July 2012 (restated)

CurrentEmployeeBenefitProvision–AnnualLeave 1,981 29 2,010

Accumulatedsurplus/(deficit) 45,721 (29) 45,692

as at 30 June 2013 as

previously reported

aaSB 119 adjustments

as at 30 June 2013 (restated)

CurrentEmployeeBenefitProvision–AnnualLeave 2,019 30 2,049

Accumulatedsurplus/(deficit) 43,249 (30) 43,219


Notes

DEPRECiation anD amoRtiSation

oF non‑CuRREnt aSSEtS

Allnon-currentphysicalassetsthat

haveafiniteusefullifearedepreciated.

Whereassetshaveseparateidentifiable

componentsthathavedistinctuseful

livesand/orresidualvalues,aseparate

depreciationrateisdeterminedfor

each component.

Physicalassetswithindefiniteusefullives

arenotdepreciated,andthisincludes:

•earthenstorageembankments

•tunnelsandotherexcavations

•irrigationchannelexcavationandbase

material;and

•drainexcavations.

Landisnotdepreciated.

Motorvehiclesaredepreciatedona

diminishingbalancebasis,overtheir

estimatedusefullife,commencingfromthe

timetheassetisheldreadyforuse.

Depreciationofotherassetsiscalculated

usingthestraightlinemethodtoallocate

theircostorrevaluedamounts,netoftheir

residualvalues,overtheirestimateduseful

lives,commencingfromthetimetheasset

isheldreadyforuse.Theassetsresidual

valuesandusefullivesarereviewed,

andadjustedifappropriate,ateach

balance date.

Intangibleassetswithfiniteusefullivesare

amortisedasanexpenseonasystematic

basis(typicallystraight-line),commencing

fromthetimetheassetisavailableforuse.

Theamortisationperiodsarereviewedand

adjustedifappropriateateachbalance

date.Intangibleassetswithindefinite

usefullivesarenotamortised.However,all

intangibleassetsareassessedannuallyfor

impairmentasoutlinedinNote1(f).

GoVERnmEnt GRantS anD

ContRiButionS

Governmentgrantsandcontributionsare

recognisedasoperatingrevenueonreceipt

orwhentheCorporationobtainscontrol

ofthecontributionandmeetscertain

othercriteriaasoutlinedbyAASB1004

contributions,whicheveristhesooner,

anddisclosedintheComprehensive

OperatingStatementasgovernmentgrants

andcontributions.However,grantsand

contributionsreceivedfromtheVictorian

StateGovernment,whichwereoriginally

appropriatedbytheParliamentasadditions

tonetassetsorwheretheMinisterfor

FinanceandtheMinisterforWaterhave

indicatedareinthenatureofowners’

contributions,areaccountedforasEquity

–ContributionsbyOwnersinaccordance

withFinancialReportingDirection(FRD)

119ATransfersthroughContributedCapital.

intERESt

Interestincomeisrecognisedwhenearned

usingtheeffectiveinterestratemethod,in

theperiodinwhichitisincurred.

LEaSE oR REntaL inComE

Incomefromoperatingleases(i.e.rentals)

isrecognisedinincomeonastraight-line

basisovertheleaseterm.

(e) Expenses

intERESt

Interestisrecognisedasexpensesinthe

periodinwhichtheyareincurred,and

includesinterestonoverdraftsandshort

andlong-termborrowings.

(d) Revenue

WatER CHaRGES

Fixedwaterandservicechargesare

recognisedasrevenuewhenlevied.

Variablewaterchargesarerecognisedas

revenuewhenthemetersareread.Meter

readingsareundertakenprogressively

duringtheyearandattheendofeach

respectiveseason,whichalignswiththe

endofthefinancialyear.

SaLE oF CREatED WatER

EntitLEmEnt

WheretheMinisterforWaterapprovesan

amendmenttoaBulkEntitlementOrder,

aswellasthesaleofresultingnewwater

entitlements,theCorporationrecognises

thisrevenueatthetimetheseentitlements

aresold.Totalproceedsarerecordedinthe

ComprehensiveOperatingStatementas

revenuefromnon-operatingactivities.

LiCEnCE aPPLiCation FEE CHaRGES

Licensingapplicationrevenueis

recognisedastheworkisperformedbythe

Corporation,ratherthanonreceiptofthe

applicationfee.

CHaRGEaBLE WoRKS

FromtimetotimetheCorporation

undertakescapitalworksforitscustomers.

Thecostoftheseworksisincludedasa

separatelineofexpenditureandrevenuein

theComprehensiveOperatingStatement.


Notes


shorttermcashcommitmentsrather

thanforinvestmentpurposes,andreadily

convertibletoknownamountsofcashwith

aninsignificantriskofchangesinvalue.

RECEiVaBLES

Receivablesconsistof:

•contractualreceivables,suchasdebtors

inrelationtogoodsandservices,loansto

thirdparties,accruedinvestmentincome,

andfinanceleasereceivables;and

•statutoryreceivables,suchasamounts

owingfromtheVictorianGovernmentand

GoodsandServicesTax(GST)inputtax

creditsrecoverable.

Contractualreceivablesareclassifiedas

financialinstrumentsandcategorisedas

loansandreceivables.

Statutoryreceivablesarerecognised

andmeasuredsimilarlytocontractual

receivables(exceptforimpairment),but

arenotclassifiedasfinancialinstruments

becausetheydonotarisefromacontract.

Contractualreceivablesarerecognised

initiallyatfairvalueandsubsequently

measuredatamortisedcost,lessan

allowanceforimpairedreceivables.Trade

receivablesaredueforsettlementnomore

than30daysfromthedateofrecognition

forwaterutilitydebtors,andnomorethan

30daysforotherdebtors.

Collectabilityofcontractualreceivables

isreviewedonanongoingbasis.Debts

whichareknowntobeuncollectibleare

writtenoff.Aprovisionfordoubtfuldebts

isestablishedwhenthereisobjective

evidencethattheCorporationwillnotbe

abletocollectallamountsdueaccording

totheoriginaltermsofreceivables.The

amountoftheprovisionisthedifference

betweentheasset’scarryingamountand

thepresentvalueofestimatedfuturecash

flows,discountedattheoriginaleffective

EnViRonmEntaL ContRiButionS

TheWaterIndustry(Environmental

Contributions)Act2004(theAct)

amendedtheWaterIndustryAct1994

tomakeprovisionforenvironmental

contributionstobepaidbywatersupply

Corporation’s.TheActestablishesan

obligationforaCorporation’stopayinto

theconsolidatedfundannualcontributions

forthefirstperiod,from1October2004

to30June2008inaccordancewiththe

pre-establishedscheduleofpayments,

whichsetsouttheamountspayableby

eachcorporation.Thecontributionperiod

hasbeenextendedtocovertheperiod1

July2012until30June2016.

Thepurposeoftheenvironmental

contributionissetoutintheAct,andthe

fundingmaybeusedforthepurposeof

fundinginitiativesthatseektopromote

thesustainablemanagementofwateror

addresswater-relatedinitiatives.

TheCorporationhasastatutoryauthority

topayanenvironmentalcontributiontothe

DepartmentofEnvironmentandPrimary

Industries.Thiscontributionisrecognised

asanexpenseduringthereportingperiod

asincurred.

otHER EXPEnSES

Suppliesandservicescostswhichare

recognisedasanexpenseinthereporting

periodinwhichtheyareincurred.The

carryingamountsofanyinventoriesheldfor

distributionareexpensedwhendistributed.

(f) assets

CaSH anD DEPoSitS

Cashanddepositsrecognisedonthe

BalanceSheetcomprisecashonhand

andcashatbank,depositsatcall,and

thosehighlyliquidinvestments(withan

originalmaturityofthreemonthsorless),

whichareheldforthepurposeofmeeting

Majordepreciationperiodslistedbeloware

consistentwithprioryears:

Class of asset Periods

Water infrastructure

Storageembankments 350years

Storagespillways 100years

Irrigation&drainstructures

60years

Irrigationchannels 100years

Irrigationchannelexcavationandbasematerial

Indefinite

Earthenstorageembankments

Indefinite

Tunnelandotherexcavations

Indefinite

Drainexcavations Indefinite

Buildings 10to40years

Plant & equipment 4to25years

Furniture & computers 2to15years

Motor vehicles 2to4years

EmPLoYEE BEnEFitS

Theseexpensesincludeallcostsrelated

toemployment(otherthansuperannuation

whichisaccountedforseparately)including

wagesandsalaries,fringebenefitstax,

leaveentitlements,redundancypayments,

workcoverpremiums.

SuPERannuation

Theamountrecognisedinthe

ComprehensiveOperatingStatementisthe

employercontributionsformembersofboth

definedbenefitanddefinedcontribution

superannuationplansthatarepaidor

payableduringthereportingperiod.

REPaiRS anD maintEnanCE

Routinemaintenance,repaircostsand

minorrenewalcostsareexpensedas

incurred.Wheretherepairrelatestothe

replacementofacomponentofanasset

andthecostexceedsthecapitalisation

threshold,thecostiscapitalised

and depreciated.


Notes

valueindicators)existfortheseassets,

depreciatedreplacementcostisusedto

determineareasonableapproximationof

fairvalue.

Waterinfrastructureassetsaremeasured

atfairvaluelessaccumulateddepreciation

andimpairmentinaccordancewithFRD

103E.Theseassetscomprisesubstructures

orunderlyingsystemsheldtofacilitate

harvesting,storage,treatmentandtransfer

ofwatertomeetcustomerneeds.

Theinitialfairvalueassessmentforwater

infrastructurein2011wasundertaken

withinvolvementfromVGVandunder

theinstructionsofDTF.Theassessment

wasperformedonaportfoliobasisfor

variouscategoriesofwaterinfrastructures.

Furtherdetailsofthevaluationexerciseare

providedinNote7.

Revaluation of Non-Current

Physical Assets

Revaluationincrementsarecrediteddirectly

toequityintheassetrevaluationreserve,

exceptthat,totheextentthatanincrement

reversesarevaluationdecrementinrespect

ofthatclassofassetpreviouslyrecognised

asexpenseindeterminingthenetresult,

theincrementisrecognisedasrevenuein

determiningthenetresult.

Revaluationdecrementsarerecognised

immediatelyasanexpenseinthenetresult,

exceptthat,totheextentthatacredit

balanceexistsintheassetrevaluation

reserveinrespectofthesameclassof

assets,theyaredebitedtotheasset

revaluationreserve.

Revaluationincreasesandrevaluation

decreasesrelatingtoindividualassets

withinaclassofproperty,plantand

equipmentareoffsetagainstoneanother

withinthatclassbutarenotoffsetin

respectofassetsindifferentclasses.Asset

revaluationreservesarenottransferred

toaccumulatedsurplus/(deficit)on

derecognitionoftherelevantasset.

Leasehold improvements

Leaseholdimprovementsarerecognisedat

costandareamortisedovertheunexpired

periodoftheleaseortheestimateduseful

lifeoftheimprovement,whicheveris

theshorter.Atbalancedate,leasehold

improvementsareamortisedovera10year

period(2013:10years).

Measurement of Non-Current

Physical Assets

Allnon-currentphysicalassets

arerecognisedinitiallyatcostand

subsequentlyrevaluedatfairvalueless

accumulateddepreciationandimpairment

inaccordancewiththerequirementsofFRD

103Enon-currentphysicalassets.

Revaluationsareconductedinaccordance

withFRD103E.Scheduledrevaluationis

undertakeneveryfiveyearswithanannual

assessmentoffairvaluetodetermineifitis

materiallydifferenttocarryingvalue.Ifthe

differencetocarryingvalueisgreaterthan

10percent,amanagementrevaluation

isundertakenwhileamovementgreater

than40percentwillnormallyinvolvean

ApprovedValuer(usuallytheValuerGeneral

ofVictoria)toperformdetailedassessment

ofthefairvalue.Ifthemovementinfair

valuesincethelastrevaluationislessthan

orequalto10percent,thennochangeis

madetocarryingamounts.

Landandbuildingsaremeasuredat

fairvalue,andaformalvaluationwas

undertakenin2010–11withinvolvement

fromtheValuerGeneralofVictoria

(VGV)andundertheinstructionsofthe

DepartmentofTreasuryandFinance(DTF).

Furtherdetailsofthevaluationexerciseare

providedinNote7.

Plant,equipmentandmotorvehicles

aremeasuredatfairvalue.Fortheplant,

equipmentandvehiclesassetclass,where

theCorporationisabletodemonstrate

thatthereisnoevidencethatareliable

market-basedfairvalue(orotherfair

interestrate.Theamountscreditedtothe

provisionarerecognisedasanexpensein

theComprehensiveOperatingStatement.

inVEntoRiES

Inventoriescomprisestoresandmaterials

usedintheconstructionofnewworksand

fortherepairandmaintenanceofexisting

assets.Allinventoriesaremeasuredat

thelowerofcostandnetrealisablevalue.

Costsareassignedtoinventoryquantities

onhandatbalancedateonaweighted

averagecost(WAC)basis.

PREPaYmEntS

Prepaymentsrepresentpaymentsin

advanceofreceiptofgoodsorservices

orthatpartofexpendituremadein

oneaccountingperiodcoveringaterm

extendingbeyondthatperiod.

inFRaStRuCtuRE, PRoPERtY, PLant

anD EquiPmEnt

Recognition of Non-Current

Physical Assets

Property,plantandequipmentrepresent

non-currentphysicalassetscomprising

land,buildings,water,anddrainage

infrastructure,plant,equipmentandmotor

vehicles,usedbytheCorporationinits

operations.Itemswithacostorvalue

inexcessof$1,000(2013:$1,000)and

ausefullifeofmorethanoneyearare

recognisedasanasset.Allotherassets

acquiredareexpensed.

Whereassetsareconstructedbythe

Corporation,thecostatwhichtheyare

recordedincludesanappropriateshareof

fixedandvariableoverheads.

Assetsacquiredatnocostorfornominal

considerationbytheCorporationare

recognisedatfairvalueatthedate

of acquisition.


Notes


financebalanceoutstanding.Theinterest

elementofthefinancecostischargedto

theComprehensiveOperatingStatement

overtheleaseperiodsoastoproducea

constantperiodicrateofinterestonthe

remainingbalanceoftheliabilityforeach

period.Theproperty,plantandequipment

acquiredunderafinanceleaseis

depreciatedovertheshorteroftheasset’s

usefullifeandtheleaseterm.

oPERatinG LEaSES

Leasesinwhichasignificantportionof

therisksandrewardsofownershipare

retainedbythelessorareclassifiedas

operatingleases.Paymentsmadeunder

operatingleases(netofanyincentives

receivedfromthe(lessor)arechargedto

theComprehensiveOperatingStatement

onastraight-linebasisovertheperiodof

thelease,intheperiodsinwhichtheyare

incurred,asthisrepresentsthepatternof

benefitsderivedfromtheleasedassets.

(g) Liabilities

PaYaBLES

Payablesconsistof:

•contractpayables,suchasaccounts

payableandunearnedincome.Accounts

payablerepresentliabilitiesforgoodsand

servicesprovidedtotheCorporationprior

totheendofthefinancialyearthatare

unpaid,andarisewhentheCorporation

becomesobligedtomakefuture

paymentsinrespectofthepurchaseof

thosegoodsandservices;and

•statutorypayables,suchasgoods

andservicestaxandfringebenefits

tax payables.

Contractpayablesareclassifiedasfinancial

instrumentsandcategorisedasfinancial

liabilitiesatamortisedcost.Statutory

payablesarerecognisedandmeasure

similarlytocontractualpayables,butare

intanGiBLES

Intangibleassetsrepresentidentifiable

non-monetaryassetswithoutphysical

substance.Intangibleassetsareinitially

recognisedatcost.Subsequently,

intangibleassetswithfiniteusefullives

arecarriedatcostlessaccumulated

amortisationandaccumulatedimpairment

losses.Costsincurredsubsequentto

initialacquisitionarecapitalisedwhenitis

expectedthatadditionalfutureeconomic

benefitswillflowtotheCorporation.The

amortisationperiodsarereviewedand

adjustedifappropriateateachbalance

date.Intangibleassetswithindefinite

usefullivesarenotamortised.However,

allintangibleassetsareassessedfor

impairmentannuallyasoutlinedinNote1(f).

Asummaryofthepoliciesappliedto

theCorporation’sintangibleassetsis

as follows:

Software

Useful lives Finite

Amortisation methodused

3to 10yearsstraight line

Internally generated/acquired

Acquired

Impairmenttest/Recoverableamount testing

Annuallyandwherean indicatorofimpairment exists

FinanCE LEaSES

Leasesofproperty,plantandequipment

wherethetermsoftheleasetransferto

theCorporationsubstantiallyalltherisks

andrewardsincidentaltoownership

areclassifiedasfinanceleases.Finance

leasesarecapitalisedatthelease’s

inceptionatthelowerofthefairvalue

oftheleasedpropertyandthepresent

valueoftheminimumleasepayments.

Thecorrespondingrentalobligations,

netoffinancecharges,areincludedin

payables.Eachleasepaymentisallocated

betweentheliabilityandfinancecharges

soastoachieveaconstantrateonthe

Impairment of Assets

Intangibleassetswithindefiniteusefullives

aretestedannuallyastowhethertheir

carryingvalueexceedstheirrecoverable

amount.Allotherassetsareassessed

annuallyforindicatorsofimpairment,

exceptfor:

•inventories

•financialinstrumentassets;and

•deferredtaxassets.

Ifthereisanindicationofimpairment,

theassetsconcernedaretestedasto

whethertheircarryingvalueexceedstheir

recoverableamount.Whereanasset’s

carryingamountexceedsitsrecoverable

amount,thedifferenceiswritten-offbya

chargetotheComprehensiveOperating

Statementexcepttotheextentthatthe

write-downcanbedebitedtoanasset

revaluationreserveamountapplicableto

thatclassofasset.

Therecoverableamountformostassets

ismeasuredatdepreciatedreplacement

cost.Itisdeemedthat,intheeventofthe

lossofanasset,theassetwillbereplaced

unlessaspecificdecisiontothecontrary

hasbeen made.

Areversalofanimpairmentlossona

revaluedassetiscrediteddirectlyto

equityundertheheadingassetrevaluation

reserve.However,totheextentthatan

impairmentlossonthesameclassof

assetwaspreviouslyrecognisedinthe

ComprehensiveOperatingStatement,

areversalofthatimpairmentlossis

alsorecognisedintheComprehensive

OperatingStatement.

Gains and losses on disposal

Gainsandlossesondisposalare

determinedbycomparingproceedswith

carryingamount.Theseareincludedinthe

ComprehensiveOperatingStatement.


Notes

ConditionalLSLisdisclosedasanon-current

liability.Thereisanunconditionalrighttodefer

thesettlementoftheentitlementuntilthe

employeehascompletedtherequisiteyears

ofservice.Thisnon-currentLSLliabilityis

measuredat presentvalue.

(iii) Termination Benefits

Terminationbenefitsarepayablewhen

employmentisterminatedbythe

Corporationbeforethenormalretirement

date,orwhenanemployeedecidesto

acceptanofferofbenefitsinexchange

fortheterminationofemployment.The

Corporationrecognisesterminationbenefits

attheearlierofthefollowingdates:

a)whentheCorporationcannolonger

withdrawtheofferofthosebenefits;and

b)whentheentityrecognisescostsfora

restructuringthatiswithinthescopeof

AASB137Provisions,ContingentLiabilities

andContingentAssetsandinvolves

thepaymentofterminationbenefits.In

thecaseofanoffermadetoencourage

voluntaryredundancy,thetermination

benefitsaremeasuredbasedonthe

numberofemployeesexpectedtoaccept

theoffer.Benefitsfallingduemorethan

12monthsaftertheendofthereporting

periodarediscountedtopresentvalue.

On-Costs

Provisionsforon-costs,suchaspayrolltax,

workerscompensationandsuperannuation

arerecognisedandincludedinemployee

benefitliabilitiesandcostswhenthe

employeebenefitstowhichtheyrelateare

recognisedasliabilities.

Performance Payments

Performancepaymentsforthe

Corporation’sExecutiveOfficersarebased

onapercentageoftheannualsalary

packageprovidedundertheircontract(s)of

employment.Aliabilityisrecognisedandis

measuredastheaggregateoftheamounts

accruedunderthetermsofthecontractsto

balancedate.

itisvirtuallycertainthatrecoverywillbe

receivedandtheamountofthereceivable

canbemeasuredreliably.

Employee Benefits

Provisionismadeforbenefitsaccruing

toemployeesinrespectofwagesand

salaries,annualleaveandlongserviceleave

forservicesrenderedtothereporting date.

(i) Wages and salaries and annual leave

Liabilitiesforwagesandsalaries,including

non-monetarybenefitsforannualleave,are

allrecognisedintheprovisionforemployee

benefitsas‘currentliabilities’,becausethe

Corporationdoesnothaveanunconditional

righttodefersettlementsoftheseliabilities.

Dependingontheexpectedtimingof

settlement,liabilitiesforwagesandsalaries,

andannualleavearemeasuredat:

•undiscountedvalue–iftheCorporation

expectstowhollysettlewithin12months;

or

•presentvalue–iftheCorporation

doesnotexpecttowhollysettlewithin

12 months.

(ii) Long service leave

Liabilityforlongserviceleave(LSL)

isrecognisedintheprovisionfor

employee benefits.

UnconditionalLSLisdisclosedinthenotes

tothefinancialstatementsasacurrent

liability,evenwheretheCorporationdoes

notexpecttosettletheliabilitywithin

12monthsbecauseitwillnothavethe

unconditionalrighttodeferthesettlement

oftheentitlementshouldanemployeetake

leavewithin12months.

ThecomponentsofthiscurrentLSLliability

aremeasuredat:

•undiscountedvalue–iftheCorporation

expectstowhollysettlewithin12months;

or

•presentvalue–iftheCorporation

doesnotexpecttowhollysettlewithin

12 months.

notclassifiedasfinancialinstrumentsand

notincludedinthecategoryoffinancial

liabilitiesatamortisedcost,because

theydonotarisefromacontract.The

contractualpayablesareunsecuredandare

usuallypaidwithin30daysofrecognition.

intERESt BEaRinG LiaBiLitiES

Interestbearingliabilitiesareinitially

recognisedatfairvalue,netoftransaction

costsincurred.Interestbearingliabilitiesare

subsequentlymeasuredatamortisedcost.

Anydifferencebetweentheinitialamount

recognised(netoftransactioncosts)and

theredemptionamountisrecognisedinthe

ComprehensiveOperatingStatementover

theperiodoftheinterestbearingliabilities,

usingtheeffectiveinterestmethod.

Interestbearingliabilitiesareclassifiedas

currentliabilitiesunlesstheCorporationhas

anunconditionalrighttodefersettlementof

theliabilityforatleast12monthsafterthe

balancedate.

PRoViSionS

Provisionsarerecognisedwhenthe

Corporationhasapresentobligation,the

futuresacrificeofeconomicbenefitsis

probable,andtheamountoftheprovision

canbemeasuredreliably.

Theamountrecognisedasaprovision

isthebestestimateoftheconsideration

requiredtosettlethepresentobligation

atreportingdate,takingintoaccountthe

risksanduncertaintiessurroundingthe

obligation.Whereaprovisionismeasured

usingthecashflowsestimatedtosettlethe

presentobligation,itscarryingamountis

thepresentvalueofthosecashflows,using

thediscountratethatreflectsthetimevalue

ofmoneyandrisksspecifictotheprovision.

Whensomeoralloftheeconomicbenefits

requiredtosettleaprovisionareexpected

tobereceivedfromathirdparty,the

receivableisrecognisedasanassetif


(h) Equity

ContRiButionS BY oWnERS

Additionstonetassetswhichhavebeen

designatedascontributionsbyowners

arerecognisedascontributedcapital.

Othertransfersthatareinthenature

ofcontributionsordistributionshave

alsobeendesignatedascontributions

by owners.

aSSEt REVaLuation RESERVE

Theassetrevaluationreserveisusedto

recordassetrevaluationincrementsand

decrementsinthevalueofnon-current

physicalassets.

(i) Financial instrumentsRecognition

Financialinstrumentsareinitiallymeasured

atfairvalue,plusinthecaseofafinancial

assetorfinancialliabilitynotatfairvalue

throughprofitandloss,transaction

coststhataredirectlyattributabletothe

acquisitionortheissueofthefinancialasset

orliability.Subsequenttoinitialrecognition,

thefinancialinstrumentsaremeasuredas

setoutbelow:

Loans and receivables

Loansandreceivablesarenon-derivative

financialassetswithfixedordeterminable

paymentsthatarenotquotedinanactive

market.Theyareincludedincurrentassets,

exceptforthosewithmaturitiesgreaterthan

12monthsafterthereportingdatewhich

areclassifiedasnon-currentassets.Loans

andreceivablesareincludedintradeand

otherreceivablesintheBalanceSheet.

Loansandreceivablesarerecordedat

amortisedcostlessimpairment.

Impairment of financial assets

Ateachreportingdate,theCorporation

assesseswhetherthereisobjective

evidencethatafinancialinstrument

hasbeenimpaired.Impairmentlosses

arerecognisedintheComprehensive

OperatingStatement.Impairmentlosses

recognisedintheComprehensive

OperatingStatementonequityinstruments

classifiedasavailableforsalearenot

reversedthroughtheComprehensive

OperatingStatement.

Fair value

Fairvalueisdeterminedbasedoncurrent

bidpricesforallquotedinvestments.

Valuationtechniquesareappliedto

determinethefairvalueforallunlisted

securities,includingrecentarm’s

lengthtransactions,referencetosimilar

instrumentsandoptionpricingmodels.

ConsistentwithAASB13FairValue

Measurement,theCorporationdetermines

thepoliciesandproceduresforboth

recurringfairvaluemeasurementssuch

asproperty,plantandequipment,and

financialinstrumentsandfornon-recurring

fairvaluemeasurementssuchasassets

heldforsale,inaccordancewiththe

requirementsofAASB13andthe

relevant FRD.

Allassetsandliabilitiesforwhichfairvalue

ismeasuredordisclosedinthefinancial

statementsarecategorisedwithinthefair

valuehierarchy,describedasfollows,based

onthelowestlevelinputthatissignificantto

thefairvaluemeasurementasawhole:

•Level1–Quoted(unadjusted)market

pricesinactivemarketsforidentical

assetsorliabilities

•Level2–Valuationtechniquesforwhich

thelowestlevelinputthatissignificantto

thefairvaluemeasurementisdirectlyor

indirectlyobservable;and

•Level3–Valuationtechniquesfor

whichthelowestlevelinputthatis

significanttothefairvaluemeasurement

is unobservable.

Forthepurposeoffairvaluedisclosures,

theCorporationhasdeterminedclassesof

assetsandliabilitiesonthebasisofnature,

characteristicsandrisksoftheasset

orliabilityandthelevelofthefairvalue

hierarchyasexplainedabove.

Inaddition,theCorporationdetermines

whethertransfershaveoccurredbetween

levelsinthehierarchybyre-assessing

categorisation(basedonlowestlevel

inputthatissignificanttothefairvalue

measurementasawhole)attheendof

eachreportingperiod.

TheVGVistheCorporation’sindependent

valuationagency.

TheCorporation,inconjunctionwithVGV,

monitorschangesinthefairvalueofeach

assetandliabilitythroughrelevantdata

sourcestodeterminewhetherrevaluation

is required.

(j) taxationTheCorporationissubjecttotheNational

TaxEquivalentRegime(NTER),whichis

administeredbytheAustralianTaxation

Office(ATO).

Theincometaxexpenseorrevenuefor

theperiodistheexpectedtaxpayable

orreceivableonthecurrentperiod’s

taxableincomebasedonthenational

corporateincometaxrateof30%,

adjustedbychangesindeferredtaxassets

andliabilitiesattributabletotemporary

differencesbetweenthetaxbasesof

assetsandliabilitiesandtheircarrying

amountsinthefinancialstatements,andto

unusedtaxlosses.

Deferredtaxassetsandliabilitiesare

recognisedfortemporarydifferences

atthetaxratesexpectedtoapplywhen

theassetsarerecoveredorliabilitiesare

settled,basedonthosetaxrateswhich

areenactedorsubstantiallyenacted.

Therelevanttaxratesareappliedtothe

cumulativeamountsofdeductibleand

Notes



taxabletemporarydifferencestomeasure

thedeferredtaxassetorliability.No

deferredtaxassetorliabilityisrecognised

inrelationtothesetemporarydifferences

iftheyaroseinatransactionthatatthe

timeofthetransactiondidnotaffecteither

accountingprofitortaxableprofitorloss.

Deferredtaxassetsarerecognisedfor

deductibletemporarydifferencesand

unusedtaxlossesonlyifitisprobablethat

futuretaxableamountswillbeavailable

toutilisethosetemporarydifferences

and losses.

Currentanddeferredtaxisrecognised

inprofitorloss,excepttotheextentthat

itrelatestoitemsrecognisedinother

comprehensiveincomeordirectlyinequity.

Inthiscase,thetaxisalsorecognisedin

othercomprehensiveincomeordirectlyin

equity,respectively.

TheCorporation’sdeferredtaxliabilities

exceedthelevelofdeferredtaxassetsand

thereforeanetdeferredtaxliabilityhas

beendisclosedintheBalanceSheet.

(k) CommitmentsCommitmentsforfutureexpenditureinclude

operatingandcapitalcommitmentsarising

fromcontracts.Thesecommitmentsare

disclosedbywayofanote(refertoNote

16)attheirnominalvalueandinclusive

ofthegoodsandservicestax(GST)

payable.Inaddition,whereitisconsidered

appropriateandprovidesadditionalrelevant

informationtousers,thenetpresent

valuesofsignificantindividualprojectsare

stated.Thesefutureexpenditurescease

tobedisclosedascommitmentsonce

therelatedliabilitiesarerecognisedinthe

Balance Sheet.

(l) Contingent assets and contingent liabilitiesContingentassetsandcontingentliabilities

arenotrecognisedintheBalanceSheet,

butaredisclosedbywayofanote(referto

Note17)and,ifquantifiable,aremeasured

atnominalvalue.Contingentassetsand

liabilitiesarepresentedinclusiveofGST

receivableorpayablerespectively.

(m) Dividend PolicyAnobligationtopayadividendonly

arisesafterconsultationwiththeportfolio

MinisterandtheTreasurerandaformal

determinationismadebytheTreasurer.At

thedateofthisreport,theCorporationdoes

notexpecttopayadividendinrespectof

the2013–14financialyear.

(n) Goods and Services taxRevenues,expensesandassetsare

recognisednetofGST,exceptwherethe

amountofGSTincurredisnotrecoverable

fromtheATO.Inthesecircumstances,the

GSTisrecognisedaspartofthecostof

acquisitionoftheassetoraspartofanitem

ofexpense.

Receivablesandpayablesarestated

inclusiveofGST.ThenetamountofGST

recoverablefrom,orpayableto,theATO

isincludedasacurrentassetorliabilityin

theBalanceSheet.Cashflowsarisingfrom

operatingactivitiesaredisclosedinthe

CashFlowStatementonagrossbasis–

i.e.inclusiveofGST.TheGSTcomponent

ofcashflowsarisingfrominvestingand

financingactivitieswhichisrecoverableor

payabletothetaxationauthorityisclassified

asoperatingcashflows.

(o) new accounting Standards and interpretations issued that are not yet effectiveCertainnewaccountingstandardsand

interpretationshavebeenpublishedthat

arenotmandatoryforthe30June2014

reportingperiod.Asat30June2014,the

followingstandardsandinterpretations

hadbeenissuedbutwerenotmandatory

forfinancialyearended30June2014.The

Corporationhasnotanddoesnotintendto

adoptthesestandardsearly.DTFassesses

theimpactofallthesenewstandardsand

advisestheCorporationoftheirapplicability

andearlyadoptionwhereapplicable.

Newrequirementsthatmayalterdisclosure

withinthefinancialstatements.

Notes


Notes


Standard/interpretation Summary applicable for annual reporting periods beginning on

impact on the Corporation's financial statements

AASB9FinancialInstruments ThisstandardsimplifiesrequirementsfortheclassificationandmeasurementoffinancialassetsresultingfromPhase1oftheIASB’sprojecttoreplaceIAS39FinancialInstruments:RecognitionandMeasurement(AASB139FinancialInstruments:RecognitionandMeasurement).

1Jan2017 Thepreliminaryassessmenthasidentifiedthatthefinancialimpactofavailableforsale(AFS)assetswillnowbereportedthroughothercomprehensiveincome(OCI)andnolongerrecycledtotheprofitandloss.

WhilethepreliminaryassessmenthasnotidentifiedanymaterialimpactarisingfromAASB9,itwillcontinuetobemonitoredandassessed.

Nosignificantimpactisexpectedfromthefollowingnewstandards,amendmentsandinterpretations:

Standard/interpretation

AASB127SeparateFinancialStatements

AASB1055BudgetaryReporting

AASB10ConsolidatedFinancialStatements

AASB11JointArrangements

AASB12DisclosureofInterestsinOtherEntities

AASB128InvestmentsinAssociatesandJointVentures

AASB1056SuperannuationEntities

AASB2010–7AmendmentstoAustralianAccountingStandardsarisingfromAASB9(December2010)

AASB2011–7AmendmentstoAustralianAccountingStandardsarisingfromtheConsolidationandJointArrangementsStandards

2013–1AmendmentstoAASB1049–RelocationofBudgetaryReportingRequirements

2013–3AmendmentstoAASB136–RecoverableAmountDisclosuresforNon-FinancialAssets.

2013–4AmendmentstoAustralianAccountingStandards–NovationofDerivativesandContinuationofHedgeAccounting

2013–5AmendmentstoAustralianAccountingStandards–InvestmentEntities

2013–6AmendmentstoAASB136arisingfromReducedDisclosureRequirements

2013–7AmendmentstoAASB1038arisingfromAASB10inrelationtoconsolidationandinterestsofpolicyholders

2013–9AmendmentstoAustralianAccountingStandards–ConceptualFramework,MaterialityandFinancialInstruments

AASBInterpretation21Levies


Notes

2013–14 $’000’s

2012–13 $’000’s

2 Operating statement – disclosures

2(a) RevenuesService charges

Fixed charges

Water service charges

Irrigation,diversionandgroundwater 21,458 20,701

Recycledwater 619 540

Storageoperatorcharges 3,427 3,514

Other charges

Boreconstruction,applicationfees,transferfees&informationstatements 1,549 1,532

27,053 26,287

Variable usage charges

Irrigation,diversionandgroundwater 1,497 1,528

Recycledwater 108 90

1,605 1,618

28,658 27,905

Government contributions

Operating

State Government of Victoria

Waterregisterdatacleansing 0 50

Nationalframeworkforcomplianceandenforcement 225 240

LatrobeRiveraccountingsystem 0 6

Groundwaterlicencetradingtool 0 50

Aberfeldyfireimpacts 0 100

Transportsafetywaterwayaudit 0 10

Unregulatedwaterallocationmethods 40 0

Salinewaterintrusionmanagementframework 80 0

Licensinglocalgovernmentdams 300 0

Landparceldatacleansing 50 0

Commonwealth Government

Australianapprenticeshipsincentivescheme 30 0

725 456

Non-operating

Commonwealth Government

Datawarehouse 0 57

0 57

725 513


Notes


2013–14 $’000’s

2012–13 $’000’s

2 Operating statement – disclosures continued

2(a) Revenues continuedother revenue

Royalties 50 42

Buildingrentals 2 14

Occupationallicences 75 82

Otherrentals,leasesoragistments 71 67

Contributions 99 106

Other 4 0

301 311

Saleofcreatedwater entitlement 1,024 942

In2006,theCorporationcompletedawatersavingprojectonthemainEasternChannelintheMacalisterIrrigationDistrict.Watersavingstudiesconfirmedthattheprojecthadsaved2,733MLofwatereachyear.InMay2010theMinisterforWaterapprovedtheamendmentoftheMacalister/Thomsonbulkwaterentitlementandthecreation,thensalebyauction,ofthesenewwaterentitlements.Thefifthtrancheoftheseentitlements,560MLofhighreliabilitysharesand161MLoflowreliabilityshares,wassoldbyauctionon26February2014.Theproceedsraisedof$1.024Mhavebeenrecordedinthecomprehensiveoperatingstatementasrevenue.

2(b) net gain on disposal of assetsThesurplusfromordinaryactivitiesincludesthefollowingspecificnetgainsandexpenses

Proceedsfromsaleofassets 788 1,327

Writtendownvalueofdisposedassets (770) (1,170)

net gain on disposal 18 157

2(c) ExpensesDepreciation

–Buildings 171 149

–Waterinfrastructure 9,585 9,046

–Machinery,fittings&equipment 299 332

–Motorvehicles 734 702

–Plant 67 36

10,856 10,265

Depreciation

–Depreciationofregulatoryassetbase 2,755 2,450

–Depreciationofotherassets 8,101 7,815

10,856 10,265

Depreciation is distinguished by:

•regulatedassetbase:expenditurethatisrecoverablefromcustomerswithinpricesauthorisedbytheWaterIndustryRegulatoryOrder;and

•otherassets:deprecationofassetsacquiredorconstructedpriorto1July2004,orassetsfundeddirectlybycustomerorGovernment contribution.

Amortisation

–Software 595 561


Notes

2013–14 $’000’s

2012–13 $’000’s

2 Operating statement – disclosures continued

2(c) Expenses continuedAssets transferred/written off

Written down value of transferred assets 48 635

WrittendownvalueoftransferredassetsrepresentsthetransferofownershipofirrigationdrainstolandholdersaspartoftheCorporation'snutrientreductionactivities.

Drainsweretransferredtolandholdersatnocostunderthisprogram.

Written down value of assets written off 284 282

Asassets,orcomponentsofassetsarereplaced,theCorporationchargesthewrittendownvalueofthereplacedorscrappedassettotheoperatingstatementwithinthiscategory.

Bulk Water

–Recycledwater 492 417

RecycledwaterissuppliedbyMelbourneWatertotheCorporationfordistributiontocustomersintheWerribeeIrrigationDistrict.

–Financialaccommodationlevy(FAL) 202 124

TheFAListheinterestratesurchargepaidtotheStateGovernmentaspartofcompetitiveneutralityarrangementsagreedatCOAG.

–Rentalexpenses 209 199

Employee benefits

Aggregateamountpaidandaccrued 14,828 13,924

Lesscapitalisedemployeebenefitcosts (1,552) (1,269)

Movementto:

–Annualleaveprovision 56 38

–Longserviceleaveprovision 78 70

13,410 12,763

Auditors remuneration

–VictorianAuditor-Generalforauditoffinancial statements 41 38

Badanddoubtfuldebts 0 0


2013–14 $’000’s

2012–13 $’000’s

3 Income tax expense (revenue)

3(a) income tax revenueCurrenttax 0 0

Movementindeferredtax (1,416) (1,055)

(1,416) (1,055)

3(b) Reconciliation of income tax revenue to prima facie tax payablenet result before income tax (4,707) (3,527)

TaxattheAustraliantaxrateof30%(2013:30%) (1,412) (1,058)

Taxeffectofamountswhicharenotdeductibleincalculatingtaxableincome

Sponsorships&entertainment 5 3

income tax revenue (1,407) (1,055)

3(c) Deferred tax assetsThebalancecomprisestemporarydifferencesattributableto:

Employeeentitlementprovision 1,389 1,382

Benefitofcarryforwardtaxlosses 107,050 102,737

108,439 104,119

Offsetagainstdeferredtaxliabilities (108,439) (104,119)

0 0

3(d) Deferred tax liabilitiesThebalancecomprisestemporarydifferencesattributableto:

Cumulativedepreciation&amortisation 93,898 90,982

Revenueinadvance 42 50

Accruedrevenue 509 512

Netgainonrevaluationofproperty,plant&equipment 239,290 239,290

Offsetfromdeferredtaxassets (108,439) (104,118)

225,300 226,716

movement in deferred tax liabilities

Carryingamount1July 226,716 227,771

Chargedtocomprehensiveincomestatement 0 0

Creditedtooperatingstatement (1,416) (1,055)

225,300 226,716

Notes



Notes

2013–14 $’000’s

2012–13 $’000’s

4 Cash and depositsCashon hand 3 3

Cashat bank 891 677

Depositsat call 4,111 14,194

5,005 14,874

4(a) Cash on handThesearenon-interest bearing 3 3

4(b) Cash at bankTheaccountissubjecttofloatinginterestrateswhichin2013–14variedbetween2.00%and2.25%(2013:0.65%and1.40%)

891 677

4(c) Deposits at callThedepositsatcallaresubjecttoafloatinginterestrateof2.45%at30June2014(30June2013:2.70%) 4,111 14,194

5 Receivables Contractual

Tradereceivables 2,717 3,021

Provisionforimpairedreceivables (30) (30)

Accruedincome 1,695 1,707

4,382 4,698

Statutory

GSTInputtaxcreditreceivables 532 237

4,914 4,935

5(a) Past due but not impaired receivablesAsof30June2014,tradereceivablesof$2.268M(2013:$2.468M)werepastduebutnotimpaired.Theserelatetoanumberofindependentwatercustomers.Excludingasmallnumberofrecycledwatercharges,theCorporation’screditriskforwatercustomersismitigatedbytheWater Act(1989),whereoutstandingtradereceivablesaresecuredbyachargeagainsttheassociatedlandorwatershare.TheCorporationconsidersthatunderlyinglandandwatershareassetswithineachirrigationdistrictprovideadequatemarketvaluetosupportourtradereceivablebalance.Theageinganalysisofthesepastduebutnotimpairedreceivablesisasfollows:

0to60 days 477 661

Over60 days 1,791 1,807

2,268 2,468

Theotheramountswithinreceivablesdonotcontainimpairedassetsandarenotpastdue.Basedoncredithistory,itisexpectedthattheseamountswillbereceivedwhendue.

TheCorporationhasnotutilisedtheprovisionfordoubtfuldebtsbalanceduringthe2013–14financialyear.Anyrevenuewrittenbackwasimmediatelychargedtotheoperatingstatement.

5(b) Foreign exchange and interest rate risk for trade and other receivablesAlltheCorporation'scurrentandnon-currentreceivablesaredenominatedinAustraliandollarsandaccordingly,theCorporationdoesnothaveanyforeignexchangerateriskagainstthesebalances.

AsummarisedanalysisofthesensitivityofreceivablestointerestrateriskcanbefoundinNote20(b).


5(c) Fair value and credit riskDuetotheshort-termnatureofthecurrentreceivables,theircarryingvalueisassumedtoapproximatetheirfairvalue.

Themaximumexposuretocreditriskatthereportingdateisthehigherofthecarryingvalueandfairvalueofeachclassofreceivablesmentionedabove.Asthesereceivablessharethesecuritydescribedbynote5(a),forthe2013–14financialyeartheCorporationconsideredthatthisprovidedadequatecollateralandthereceivablevaluewasnotimpaired.

Refertonote20formoreinformationonthefinancialriskmanagementpoliciesoftheCorporation.

2013–14 $’000’s

2012–13 $’000’s

6 InventoriesCurrent

Storesandconsumables–at cost 157 137

7(a) Infrastructure, property, plant & equipment Note 1(e) Classes of infrastructure, property, plant & equipment

Land

Atfairvalue 19,618 19,618

Buildings


Less:accumulated depreciation (435) (264)

3,007 2,931


Atfairvalue 1,224,886 1,215,029

Less:accumulated depreciationandimpairment (29,986) (20,428)

1,194,900 1,194,601

machinery, fittings and equipment


Less:accumulateddepreciation (2,417) (2,935)

1,185 1,003

motor vehicles

Atfair value 4,581 4,217

Less:accumulated depreciation (1,505) (1,451)

3,076 2,766

Notes



Notes

2013–14 $’000’s

2012–13 $’000’s

7(a) Infrastructure as, property, plant & equipment Note 1(e) continuedClasses of infrastructure assets, property, plant & equipment

Plant

Atfair value 1,117 917

Less:accumulated depreciation (698) (761)

419 156

1,222,205 1,221,075

under construction 11,068 7,159

11,068 7,159

total infrastructure, property, plant & equipment 1,233,273 1,228,234


7(b) Movements in infrastructure, property, plant & equipmentL

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Year ended 30 June 2014

at 1 July 2013, net of accumulated depreciation 19,618 1,194,601 1,003 156 2,766 2,931 7,159 1,228,234

Additions 0 0 0 0 1,769 0 15,227 16,996

Transfers 0 10,216 519 337 0 247 (11,318) 0

Disposals 0 (332) (38) (7) (725) 0 0 (1,101)

Depreciationexpense 0 (9,585) (299) (67) (734) (171) 0 (10,856)

at 30 June 2014, net of accumulated depreciation 19,618 1,194,900 1,185 419 3,076 3,007 11,068 1,233,273

At 1 July 2013

Grosscarryingamount 19,618 1,215,029 3,939 916 4,217 3,195 7,159 1,254,073

Accumulateddepreciation 0 (20,428) (2,936) (760) (1,451) (264) 0 (25,839)

net carrying amount 19,618 1,194,601 1,003 156 2,766 2,931 7,159 1,228,234

At 30 June 2014

Grosscarryingamount 19,618 1,224,886 3,602 1,117 4,581 3,442 11,068 1,268,314




at 1 July 2012, net of accumulated depreciation 19,918 1,194,526 1,001 145 2,706 2,743 7,927 1,228,966

Additions 0 0 0 0 1,454 0 10,165 11,620

Transfers 0 10,037 334 47 0 515 (10,933) 0

Disposals (300) (916) 0 0 (692) (178) 0 (2,086)

Depreciationexpense 0 (9,046) (332) (36) (702) (149) 0 (10,265)

at 30 June 2013, net of accumulated depreciation 19,618 1,194,601 1,003 156 2,766 2,931 7,159 1,228,234

At 1 July 2012




At 30 June 2013




Notes



7(c) Fair value measurement hierarchy for assets as at 30 June 2014

Carrying amount as at 30 June 2014

Fair value measurement at end of reporting period using:

Level 1 1 Level 2 1 Level 3 1

Land at fair value

Non-specialisedland 3,352 0 3,352 0

Specialisedland 16,267 0 0 16,267

total of land at fair value 19,619 0 3,352 16,267

Buildings at fair value

Non-specialisedbuildings 3,007 0 0 3,007

total of buildings at fair value 3,007 0 0 3,007

Water infrastructure at fair value

Reservoirs&weirs 712,518 0 0 712,518

Tunnels 215,369 0 0 215,369

Irrigationchannels&pipes 153,194 0 0 153,194

Irrigationdrains 80,903 0 0 80,903

Irrigationstructures,metersandpumps 32,916 0 0 32,916

total of water infrastructure at fair value 1,194,900 0 0 1,194,900

machinery and equipment at fair value

Machineryandtools 538 0 0 538

Computerequipment 341 0 0 341

Furnitureandfittings 305 0 0 305

total of machinery and equipment at fair value 1,184 0 0 1,184

motor vehicles and plant at fair value

Motorvehicles 3,075 0 0 3,075

Plant 419 0 0 419

total of motor vehicles and plant at fair value 3,494 0 0 3,494

notes

1Classifiedinaccordancewiththefairvaluehierarchy,seeNote1(i).

Non specialised land and buildings

Fornonspecialisedland,anindependentvaluationwasperformedbyValuerGeneralVictoria(VGV)todeterminethefairvalueusingthemarketapproach.Valuationoftheassetswasdeterminedbyanalysingcomparablesalesandallowingforshare,size,topography,locationandotherrelevantfactorsspecifictotheassetbeingvalued.Fromthesalesanalysed,anappropriateratepersquaremetreorperhectarehasbeenappliedtothesubjectasset.Theeffectivedateofthevaluationis30June2011.

Anindependentvaluationofnon-specialisedbuildingswasperformedbyVGVanduseddepreciatedreplacementcosttoestimatefairvalue.Accordingly,theseassetsarecategorisedaslevel3.Theeffectivedateofthevaluationis30June2011.

Notes


Specialised land

Themarketapproachisalsousedforspecialisedland,althoughitisadjustedforthecommunityserviceobligation(CSO)toreflectthespecialisednatureofthelandbeingvalued.

TheCSOadjustmentisareflectionofthevaluer’sassessmentoftheimpactofrestrictionsassociatedwithanassettotheextentthatisalsoequallyapplicabletomarketparticipants.Thisapproachisinlightofthehighestandbestuseconsiderationrequiredforfairvaluemeasurement,andtakesintoaccounttheuseoftheassetthatisphysicallypossible,legallypermissible,andfinanciallyfeasible.AsadjustmentsofCSOareconsideredassignificantunobservableinputs,specialisedlandisclassifiedaslevel3assets.

AnindependentvaluationoftheCorporation’sspecialisedlandandspecialisedbuildingswasperformedbyVGV.ThevaluationwasperformedusingthemarketapproachadjustedforCSO.Theeffectivedateofthevaluationis30June2011.

CSOadjustmentstolandvalueshavetakenintoaccounttheplanningrestrictionsapplyingtotheiruse,aswellastherestrictionsandimpactsoftheexistenceofwaterinfrastructureassets(drains,channelsandreservoirs),butnotthevalueofthoseassets(whichareseparatelyrecordedasinfrastructureassets).Inthecaseoflandusedforreservoirs,thevaluationperformedbyVGVrecognisesanassociatedCSObyvaluinglandabovethefullsupplylevelat80%ofsurroundinglandvalues,andbelowthefullsupplylevelat10%ofadjacentlandvalue.


Waterinfrastructureisvaluedusingthedepreciatedreplacementcostmethod.Thiscostrepresentsthereplacementcostoftheasset/componentafterapplyingdepreciationratesonausefullifebasis.Replacementcostsrelatetocoststoreplacethecurrentservicecapacityoftheasset.Economicobsolescencehasalsobeenfactoredintothedepreciatedreplacementcostcalculation.

Whereithasnotbeenpossibletoexaminehiddenworkssuchaspipelines,theuseofreasonablematerialsandmethodsofconstructionhavebeenassumedbearinginmindtheageandnatureoftheasset.Theestimatedcostofreconstructionincludesstructureservicesandfinishesasapplicable.

AnindependentvaluationoftheCorporation’swaterandwastewaterinfrastructurewasperformedbyVGV.WaterinfrastructureassetsarevaluedbyVGVatfairvalue.AstheCorporationiscategorisedasnot-for-profit,fairvalueisassessedasdepreciatedreplacementcost.Theeffectivedateofthevaluationis30June2011.Importantaspectstothisvaluationapproachare:

•replacementcostisdeterminedonan‘OptimumModernEquivalent’basis.Thisassessmentcalculatesreplacementcostbyreferencetothelowestcostatwhichthegrossfutureeconomicbenefitsofthatassetcouldcurrentlybeobtained.Inthisway,valueisnotattributedtoexcesscapacity,overdesignorredundancy

•depreciationiscalculatedusingastraightlinemethodology,andinordertodeterminethedepreciatedvalue,conditionassessmentsareusedtocalculatetheremainingusefullife.

Machinery, fittings and equipment

Machinery,fittingsandequipmentareheldatfairvalue.Whenmachineryandequipmentarespecialisedinuse,suchthatitisrarelysoldotherthanaspartofagoingconcern,fairvalueisdeterminedusingthedepreciatedreplacementcostmethod.

Motor vehicles and plant

Vehiclesarevaluedusingthedepreciatedreplacementcostmethod.TheCorporationacquiresnewvehiclesandusuallydisposesofthembeforetheendoftheireconomiclife.Theprocessofacquisition,useanddisposalinthemarketismanagedbyexperiencedfleetmanagersintheCorporationwhosetrelevantdepreciationratesduringusetoreflecttheutilisationofthevehicles.

Plantisheldatfairvalue.Whenplantisspecialisedinuse,suchthatitisrarelysoldotherthanaspartofagoingconcern,fairvalueisdeterminedusingthedepreciatedreplacementcostmethod.

Therewerenochangesinvaluationtechniquesthroughouttheperiodto30June2014.

Forallassetsmeasuredatfairvalue,thecurrentuseisconsideredthehighestandbestuse.

Notes



Notes

7(d) Reconciliation of level 3 fair value

asset typeopening balance additions transfers Disposals Depreciation impairment Revaluation

Closing balance

Specialisedland 16,267 0 0 0 0 0 0 16,267

Non-specialisedbuildings 2,930 0 248 0 (171) 0 0 3,007

Reservoirsandweirs 709,661 0 6,874 (168) (3,849) 0 0 712,518

Tunnels 216,009 0 0 0 (641) 0 0 215,368

Irrigationchannelsandpipes 155,745 0 809 (35) (3,325) 0 0 153,194

Irrigationdrains 81,405 0 44 (32) (513) 0 0 80,904

Irrigationstructures,metersandpumps

31,781 0 2,489 (96) (1,258) 0 0 32,916

Machineryandtools 420 0 233 0 (114) 0 0 539

Computerequipment 260 0 244 (39) (125) 0 0 340

Furnitureandfittings 323 0 41 0 (59) 0 0 305

Motorvehicles 2,765 1,769 0 (725) (734) 0 0 3,075

Plant 156 0 337 (7) (67) 0 0 419

7(e) Description of significant unobservable inputs to level 3 valuations

asset class Valuation technique 1 Significant unobservable inputs 1

Range (weighted average) 1

Sensitivity of fair value measurement to changes in significant unobservable inputs

Specialisedland Market approach CommunityServiceObligation(CSO)adjustment

20%–90% 63%)

AsignificantincreaseordecreaseintheCSOadjustmentwouldresultinasignificantlylower(higher)fairvalue.

Non-Specialisedbuildings(53)

Depreciatedreplacementcost

Costperbuilding $1,000 –$720,000 ($41,478)

Asignificantincreaseordecreaseinthedirectcostperbuildingadjustmentwouldresultinasignificantlyhigherorlowerfairvalue.

Usefullifeofbuildings 3–51years (30.2years)

Asignificantincreaseordecreaseintheestimatedusefullifeoftheassetwouldresultinasignificantlyhigherorlowervaluation.

Reservoirs(7) Depreciatedreplacementcost

Costperreservoir $57M–$306M ($124M)

Asignificantincreaseordecreaseinthedirectcostperreservoiradjustmentwouldresultinasignificantlyhigherorlowerfairvalue.

Usefullifeofreservoirs: Perpetualcomponents Depreciablecomponents

Indefinitelife25–350years(207years)


Weirs(6) Depreciatedreplacementcost

Costperweir $1M–$23M ($9M)

Asignificantincreaseordecreaseinthedirectcostperweiradjustmentwouldresultinasignificantlyhigherorlowerfairvalue.

Usefullifeofweirs 25–350years (184years)


Tunnels(3) Depreciatedreplacementcost

Costpertunnel $26M–$155M ($74M)

Asignificantincreaseordecreaseinthedirectcostpertunneladjustmentwouldresultinasignificantlyhigherorlowerfairvalue.

Usefullifeoftunnels: Perpetualcomponents Depreciablecomponents

Indefinitelife 50–80years (80years)


Irrigationchannels Depreciatedreplacementcost

Costpermetreofchannel $71–$1,430 ($163)

Asignificantincreaseordecreaseinthedirectcostpermetreofchanneladjustmentwouldresultinasignificantlyhigherorlowerfairvalue.

Usefullifeofirrigationchannels: Perpetualcomponents Depreciablecomponents

Indefinitelife 100years (100years)



7(e) Description of significant unobservable inputs to level 3 valuations continued

asset classValuation technique 1 Significant unobservable inputs (i)

Range (weighted average) 1

Sensitivity of fair value measurement to changes in significant unobservable inputs

Irrigationpipes Depreciatedreplacementcost

Costpermetreofpipeline $100–$1,823 ($670)

Asignificantincreaseordecreaseinthedirectcostpermetreofpipelineadjustmentwouldresultinasignificantlyhigherorlowerfair value.

Usefullifeofirrigationpipes 70–110years (79years)


Irrigationdrains Depreciatedreplacementcost

Costpermetreofdrains $14–$985 ($122)

Asignificantincreaseordecreaseinthedirectcostpermetreadjustmentwouldresultinasignificantlyhigherorlowerfairvalue.

Usefullifeofirrigationdrains Indefinitelife Asignificantincreaseordecreaseintheestimatedusefullifeoftheassetwouldresultinasignificantlyhigherorlowervaluation.

Irrigationstructures,metersandpumps


Duetothelargenumberofdifferentassetsinthiscategory,itisnotpossibletodiscloseameaningfulunitcost

Asignificantincreaseordecreaseinthedirectcostperunitadjustmentwouldresultinasignificantlyhigherorlowerfairvalue.

Usefullifeofirrigationstructures 25–75years (72years)


Machineryandtools Depreciatedreplacementcost

Duetothelargenumberofdifferentassetsinthiscategory,itisnotpossibletodiscloseameaningfulunitcost

Asignificantincreaseordecreaseincostperunitwouldresultinasignificantlyhigherorlowerfairvalue.

Usefullifeofmachineryandtools 2–33years (10years)


Computerequipment


Costperunit $118–$16,228 /perunit ($1,956)


Usefullifeofcomputerequipment 2–5years (4.3years)


Furnitureandfittings Depreciatedreplacementcost

Costperunit $248–$48,010 /perunit ($4,149)

Asignificantincreaseordecreaseincostperunitwouldresultinasignificantlyhigherorlowerfairvalue..

Usefullifeofthefurnitureandfittings 2–25years (11years)


Motorvehicles Depreciatedreplacementcost

Costperunit $19,945–$52,626 /perunit($36,971)


Usefullifeofthemotorvehicles 1.5–5–6years (2.8years)


Plant Depreciatedreplacementcost

Costperunit $891–$148,080 /perunit($24,706)


Usefullifeofplant 5–20years (8years)


notes1Illustrationsonthevaluationtechniques,significantunobservableinputsandtherelatedquantitativerangeofthoseinputsareindicativeandshouldnotbedirectlyusedwithoutconsultationwithVGV.

Notes



Notes

8 Intangible assets

Software Softwareimplementation

in progress total


At1July2013,netofaccumulatedamortisation 2,680 109 2,789

Additions 0 863 863

Transfer 774 (774) 0

Amortisation (595) 0 (595)

at 30 June 2014, net of accumulated amortisation 2,858 198 3,056

At 1 July 2013

Cost(grosscarryingamount) 7,089 109 7,197

Accumulatedamortisation (4,409) 0 (4,409)

net carrying amount 2,680 109 2,788

At 30 June 2014





At1July2012,netofaccumulatedamortisation 2,709 371 3,080

Additions 0 269 269

Transfer 531 (531) 0

Amortisation (561) 0 (561)

at 30 June 2013, net of accumulated amortisation 2,679 109 2,788

At 1 July 2012




At 30 June 2013





2013–14 $’000’s

2012–13 $’000’s

9 PayablesCurrent

Trade creditors 2,325 1,468

Accrued expenses 1,511 1,522

Deferredrevenue 1 140 167

Advancesforcapitalandother works 388 509

4,364 3,6661DeferredrevenuebalancerepresentsourestimateofunearnedcashreceiptsfromourLicensingApplicationsbusiness,whichwillberecognisedasincomeasapplicationscompleted.

Fair value

Duetotheshort-termnatureofthecurrentpayables,theircarryingvalueisassumedtoapproximatetheirfairvalue.

Foreign exchange and interest rate risk for trade and other payables

AlltheCorporation’scurrentpayablesaredenominatedinAustraliandollarsandaccordinglytheCorporationdoesnotfaceaforeignexchangerateriskagainstthesebalances.

AsummarisedanalysisofthesensitivityofpayablestointerestrateriskcanbefoundinNote20.

Notes



Notes

2013–14 $’000’s

2012–13 $’000’s

10 Interest bearing liabilitiesCurrent

Unsecured

TreasuryCorporationofVictoria(TCV) 1,030 3,530

Non-current

Unsecured


total interest bearing liabilities 17,700 21,300

CurrentInterestbearingliabilitiesareheldwithTCVeitheras:

•An“11am”atcalldebtfacilitywhichhasnofixedtermtomaturity

•Fixed–SemiAnnualCreditFoncierfacilitieswithrepaymentsofinterestandprincipaltwiceannually

•Non-currentinterestbearingliabilitiesareallheldwithTCV,eitheras:

•Fixed–SemiAnnualRatefacilitiesofwhich$0.5MmaturesJune2016

•Fixed–SemiAnnualCreditFoncierfacilitieswithrepaymentsofinterestandprincipal($100K)twiceannuallyandafinal$3.0MmaturityinJune2017



•Fixed–SemiAnnualCreditFoncierfacilitieswithrepaymentsofinterestandprincipal($75K)twiceannuallyandafinal$2.5MmaturityinJune2023.

ThesedebtfacilitiesareprovidedbyTCVconsistentwiththeFinancialAccommodationissuedbytheTreasurerofVictoriatoGippslandandSRW,inaccordancewithsection8oftheBorrowingandInvestmentPowersAct1987.

TheborrowingsarenotdirectlysecuredbyassetsoftheCorporationbuthavethebenefitoftheTreasurer'sguaranteetoTCVdated25April2002.

TheborrowingsareinAustraliandollarsandaccordinglytheCorporationdoesnotfaceaforeignexchangeriskinrelationtothesebalances.

Loan facilities

Total facilities 28,800 21,300

Usedatbalance date 17,770 21,300

unused at balance date 11,030 0

Fair value

Non-traded financial liabilities


17,770 21,300

Noneofthefacilitiesarereadilytradedonorganisedmarketsinstandardisedform.


2013–14 $’000’s

2012–13 $’000’s

10 Interest bearing liabilities continuedTheCorporation'sfinancialliabilitymaturitiesareas follows:

Withinoneyear 1,030 3,530

Onetofive years 7,220 4,620

Overfive years 9,520 13,150

total interest bearing liabilities 17,770 21,300

ThecarryingamountsoftheCorporation'sborrowingsaredenominatedinthefollowingcurrencies:

Australian dollar 17,770 21,300

ForananalysisofthesensitivityofborrowingstointerestrateriskandforeignexchangeriskrefertoNote20(b).

11 Current and non-current liabilities – employee benefitsCurrent

Allannualleaveandunconditionallongserviceleaveentitlementsrepresenting6ormoreyearsofcontinuousservice

Long service leave

Unconditionalandexpectedtosettlewithin12months 1,426 1,394

Unconditionalandexpectedtosettleafter12monthsmeasuredatpresentvalue 993 814

annual leave

Unconditionalandexpectedtosettlewithin12months 1,023 991

Unconditionalandexpectedtosettleafter12monthsmeasuredatpresentvalue* 1,052 1,058*

4,494 4,257

Non-current

Longserviceleaverepresentinglessthan6yearsofcontinuousservicemeasuredatpresent value 246 379

Aggregate carrying amounts

Current 4,494 4,257*

Non-current 246 379

total employee benefits 4,740 4,636

Numberofemployeesatyear end 166 162

* Refertonote1(c)fordetailonrestatementofcomparativesinrelationtoAASB119

12 Contributed CapitalBalanceatbeginningofreportingperiod 393,220 393,220

CapitaltransactionswiththeStateGovernmentinitscapacityasownerarisingfrom:

Contribution–MID2030Phase1a 2,981 0

Closing balance 396,201 393,220

Notes



Notes

13 Asset revaluation reserve2013–14 2012–13

Land $’000’s

Buildings $’000’s


$’000’s

total $’000’s

Land $’000’s

Buildings $’000’s


$’000’s

total $’000’s

Assetrevaluation reserve 10,609 1,662 546,073 558,344 10,609 1,662 546,073 558,344

Theassetrevaluationreserveisusedtorecordrevaluationincrementsanddecrementsinthevalueofnon-currentphysicalassets.

2013–14 $’000’s

2012–13 $’000’s

14 Accumulated fundsAccumulatedsurplusatbeginningofreportingperiod 43,219 45,692*

Netresultforthe period (3,291) (2,473)

accumulated surplus at end of reporting period 39,928 43,219

*Refertonote1(c)fordetailonrestatementofcomparativesinrelationtoAASB119

15 Lease commitmentsThefollowingcommitmentsareinclusiveofGST.

TheCorporationleasesanumberofpremisesusingoperatingleasesundervarioustermsandconditions,rangingfrom1to5years.Monthlyrentalpaymentsaremade,withthesebuildingleasecommitmentsdueforpaymentasfollows:

–Withinone year 212 194

–Onetofive years 552 337

764 531

16 Commitments for expenditureCapital

Atthe30June2014,theCorporationhadthefollowingothersignificantcapitalcommitments

Capitalcommitmentsarelikelytobeexercisedasfollows:

–Withinone year 4,421 2,119


4,646 2,119

Environmental

Environmentalcontributioncommitmentsarelikelytobeexercisedasfollows:

–Withinone year 423 423


846 1,269


2013–14 $’000’s

2012–13 $’000’s

16 Commitments for expenditure continuedOperating

Atthe30June2014,theCorporationhadthefollowingothersignificantoperatingcommitments

Operatingcommitmentsarelikelytobeexercisedasfollows:

–Withinone year 1,314 931

–Onetofive years 1,033 1,552

2,347 2,483

17 Contingent LiabilitiesWerribee drainage

InFebruary2011,theWerribeeIrrigationDistrictexperiencedsignificantrainfallinthespaceof12hours.Thiscausedfloodingtoanumberofpropertiesinthedistrict.TheCorporationhasinvestigatedtheissueinternally,andcommissionedanindependentreporttofurtherreviewthematter.ThisworkhasconcludedthatdrainageinfrastructurewithintheDistrictoperatedtodesign.

Sincethistime,theCorporationhasrespondedtoaclaimfordamageslodgedbyacustomer.ThisclaimisbeingadjudicatedbytheMagistratesCourtofVictoria,whichhasruledintheCorporation’sfavour.Thecustomerhasappealedthisdecision,withafurtherhearingyettobescheduled.WhiletheCorporationisunabletoreliablyestimatethefinancialeffect,ifany,whichmayarisefromthismatter,shouldactionbesuccessfulagainsttheCorporation,financiallossislimitedbyaninsurancedeductibleof$100,000.

18 SuperannuationTheamountchargedtotheComprehensiveOperatingStatementinrespectofsuperannuationrepresentscontributionsmadeorduebytheCorporationtotherelevantsuperannuationplansinrespectoftheservicesoftheCorporation’sstaff(bothpastandpresent).SuperannuationcontributionsaremadetotheplansbasedontherelevantrulesofeachplanandanyrelevantcompulsorysuperannuationrequirementsthattheCorporationisrequiredtocomplywith.

TheCorporationmakesthemajorityofitsemployersuperannuationcontributionsinrespectofitsemployeestotheLocalAuthoritiesSuperannuationFund(theFund).ThisFundhastwocategoriesofmembership,accumulationanddefinedbenefit,eachofwhichisfundeddifferently.Thedefinedbenefitsectionprovideslumpsumbenefitsbasedonyearsofserviceandfinalaveragesalary.ThedefinedcontributionsectionreceivesfixedcontributionsfromtheCorporationandtheCorporation’slegalorconstructiveobligationislimitedtothesecontributions.

ObligationsforcontributionstotheFundarerecognisedasanexpenseintheComprehensiveOperatingStatementwhentheyaremadeordue.

TheCorporationcontributesinrespectofitsemployeestothefollowingsuperannuationschemes. Contributionsareshowninthefollowing table:

2013–14 $’000's

Contribution rate

2012–13 $’000's

Contribution rate

Defined benefit schemes:

(a) GovernmentSuperannuationOffice–New Scheme

Employer contribution 126 9.5%–10.3% 122 7.4%–10.3%

(b) GovernmentSuperannuationOffice–Revised Scheme

Employer contribution 12 17.30% 11 17.30%

(c) SAFE–StateEmployeesRetirementBenefits Fund

Employer contribution 28 13.30% 27 13.30%

(d) Vision Super Employer contribution 0 9.25% 19 9.25%

Accumulation schemes

(e) Vision Super Employer contribution 696 9.25% 638 9.00%

(f) Othersuperannuation schemes Employer contribution 610 9.25% 537 9.00%

total employer contribution 1,472 1,354

Asat30June2014and30June2013,therewerenoloanstoorfromtheCorporationwithanyoftheabovefunds.

Notes



Notes

18(a) unfunded superannuation liabilities – defined benefit schemesUnfundedliabilitiesaredefinedasthedifferencebetweenthepresentvalueofmembers’accruedbenefitsandthenetmarketvalueofasuperannuationscheme’sassetsatthereportingdate.TheCorporationisresponsibleforanyunfundedliabilitiesarisingfrom1July1992ondefinedbenefitssuperannuationschemeswhichitsponsorsinrespectofitsemployees.

State Superannuation Funds (items a, b & c)

TheCorporationhasnounfundedliabilityinrespectofitsemployeeswhoaremembersofschemesinthisfund.ThisliabilityhasbeenassumedbytheStateGovernmentandisdisclosedinitsfinancialstatements.

Vision Super – Defined Benefits Scheme Past Services Liability (item d)

AsprovidedunderParagraph34ofAASB119,SRWdoesnotusedefinedbenefitaccountingforthisdefinedbenefitobligationundertheFund’sDefinedBenefitcategory.ThisisbecausetheFund’sDefinedBenefitcategoryisamulti-employersponsoredplan.

Asamulti-employersponsoredplan,theFundwasestablishedasamutualschemetoallowforthemobilityoftheworkforcebetweentheparticipatingemployerswithoutattachingaspecificliabilitytoparticularemployeesandtheircurrentemployer.Therefore,thereisnoproportionalsplitofthedefinedbenefitliabilities,assetsorcostsbetweentheparticipatingemployersasthedefinedbenefitobligationisafloatingobligationbetweentheparticipatingemployersandtheonlytimetheaggregateobligationisallocatedsospecificemployersiswhenacallismade.Asaresult,thelevelofparticipationoftheCorporationintheFundcannotbemeasuredasapercentagecomparedwithotherparticipatingemployers.WhilethereisanagreedmethodologytoallocateanyshortfallsidentifiedbytheFundActuaryforfundingpurposes,thereisnoagreedmethodologytoallocatebenefitliabilities,assetsandcostsbetweentheparticipatingemployersforaccountingpurposes.Therefore,theActuaryisunabletoallocatebenefitliabilities,assetsandcostsbetweenemployersforthepurposesofAASB119.

Funding arrangements

TheCorporationmakesemployercontributionstothedefinedbenefitcategoryoftheFundatratesdeterminedbytheTrusteeontheadviceoftheFund’sActuary.TheFund’semployerfundingarrangementscompriseofthreecomponents(whicharedetailedbelow)are:

1. regularcontributions–whichareongoingcontributionsneededtofundthebalanceofbenefitsforcurrentmembersandpensioners

2. fundingcalls–whicharecontributionsinrespectofeachparticipatingemployer’sshareofanyfundingshortfallsthatarise;and

3. retrenchmentincrements–whichareadditionalcontributionstocovertheincreaseinliabilityarisingfromretrenchments.

TheCorporationisalsorequiredtomakeadditionalcontributionstocoverthecontributiontaxpayableonthecontributionsreferredtoabove.

EmployeesarealsorequiredtomakemembercontributionstotheFund.Assuch,assetsaccumulateintheFundtomeetmemberbenefits,asdefinedintheTrustDeed,astheyaccrue.

Employer contributions

Regular contributions

OnthebasisoftheresultsofthemostrecentfullactuarialinvestigationconductedbytheFund’sActuaryasat31December2011,theCorporationmakesemployercontributionstotheFund’sDefinedBenefitcategoryatratesdeterminedbytheFund’strustee.Fortheyearended30June2014,thisratewas9.25%ofmembers’salaries.Thisrateincreasedto9.5%on1July2014andisexpectedtoincreaseinlinewiththerequiredSuperannuationGuaranteecontributionrate.

Inaddition,theCorporationreimbursestheFundtocovertheexcessofthebenefitspaidasaconsequenceofretrenchmentabovethefundedresignationorretirementbenefit(thefundedresignationorretirementbenefitiscalculatedasthevestedbenefitsindex(VBI)multipliedbythebenefit).

Funding Calls

TheFundisrequiredtocomplywiththesuperannuationprudentialstandards.UnderthesuperannuationprudentialstandardSPS160,theFundisrequiredtotargetfullfundingofitsvestedbenefits.Theremaybecircumstanceswhere:

•afundisinanunsatisfactoryfinancialpositionatanactuarialinvestigation(i.e.itsVBIislessthan100%atthedateoftheactuarialinvestigation);or

•afund’sVBIisbelowitsshortfalllimitatanytimeotherthanatthedateoftheactuarialinvestigations.

Ifeitheroftheaboveoccur,thefundhasashortfallforthepurposesofSP160andthefundisrequiredtoputaplaninplacesothattheshortfallisfullyfundedwithinthreeyearsoftheshortfalloccurring.TheremaybecircumstanceswheretheAustralianPrudentialRegulationAuthority(APRA)mayapproveaperiodlongerthanthreeyears.

ThefundmonitorsitsVBIonaquarterlybasisandtheFundhassetitsshortfalllimitat97%.

IntheeventthattheFundActuarydeterminesthatthereisashortfallbasedontheaboverequirement,theFund’sparticipatingemployers(includingtheCorporation)arerequiredtomakeanemployercontributiontocovertheshortfall.Themethodologyusedtoallocatetheshortfallwasagreedin1997tofairlyandreasonablyapportiontheshortfallbetweentheparticipatingemployers.


18(a) unfunded superannuation liabilities – defined benefit schemes continuedUsingtheagreedmethodology,theshortfallamountisapportionedbetweentheparticipatingemployersbasedonthepre-1July1993andpost-30June1993serviceliabilitiesoftheFund’sdefinedbenefitcategory,togetherwiththeemployer’spayrollat30June1993andatthedatetheshortfallhasbeencalculated.

Thepre-1July1993andpost-30June1993serviceliabilitiesoftheFundarebasedon:

•theserviceperiodsofallactivememberssplitbetweentheactivememberspre-1July1993andpost-30June1993serviceperiod

•theserviceperiodsofalldeferredmemberssplitbetweenthedeferredmemberspre-1July1993andpost-30June1993serviceperiod;and

•thepensioner(includingfixedtermpension)liabilitieswhichareallocatedtothepre-1993period.

Thepre-1July1993componentoftheshortfallisapportionedbetweentheparticipatingemployersbasedontheemployer’sshareofthetotalparticipatingemployerpayrollat30June1993.

Thepost-30June1993componentoftheshortfallisapportionedbetweentheparticipatingemployersbasedontheemployer’sshareofthetotalparticipatingemployerpayrollatthedatetheshortfallhasbeencalculated.

DuetothenatureofthecontractualobligationsbetweentheparticipatingemployersandtheFund,andthattheFundincludeslifetimepensionersandtheirreversionarybeneficiaries,itisunlikelythattheFundwillbewoundup.IntheunlikelyeventthattheFundiswoundupandthereisasurplusintheFund,thesurpluscannotbeappliedforthebenefitofthedefinedbenefitemployerswherethereareon-goingdefinedbenefitobligations.Thesurpluswouldbetransferredtothefundacceptingthosedefinedbenefitobligations(includingthelifetimepensionobligations)oftheFund.

Intheeventthataparticipatingemployeriswound-up,thedefinedbenefitobligationsofthatemployerwillbetransferredtothatemployer’ssuccessor.

Differences between calculations

TheFundsurplusordeficit(i.e.thedifferencebetweenfundassetsandliabilities)iscalculateddifferentlyforfundingpurposes(i.e.calculatingrequiredcontributions),forthecalculationofaccruedbenefitsasrequiredinAAS25andforthevaluesneededfortheAASB119disclosureintheCorporation’sfinancialstatements.AAS25requiresthatthepresentvalueofthedefinedbenefitliabilitybecalculatedbasedonbenefitsthathaveaccruedinrespectofmembershipoftheplanuptothemeasurementdate,withnoallowanceforfuturebenefitsthatmayaccrue.

Retrenchment increments

During2013–14,theCorporationwasnotrequiredtomakepaymentstotheFundinrespectofretrenchmentincrements.

Shortfall amounts

TheLocalAuthoritiesSuperannuationFund’slatestactuarialinvestigationasat31December2011,identifiedanunfundedliabilityof$406M(excludingcontributionstax)inthedefinedbenefitcategoryofwhichtheCorporationisacontributingemployer.TheCorporationwasmadeawareoftheexpectedshortfallduringthe2011–12yearandwasinformedofitsshareoftheshortfallon2August2012.TheCorporationhasnotbeenadvisedofanyfurtheradjustments.TheCorporation’scontributiontothefundingshortfallamountedto$78,890,$60,000wasaccountedforin2011–12,and$18,890accountedforin2012–13.Theoutstandingamountwasrecognisedasanexpenseinthecomprehensiveoperatingstatementin2012–13,andtheCorporationpaidthisamounton17July2013.Nofurtheramounthasbeenaccountedforinthe2013–14comprehensiveoperatingstatement.

accrued benefits

TheFund’sliabilityforaccruedbenefitswasdeterminedbytheactuaryat31December2011pursuanttotherequirementsofAustralianAccountingStandardBoardAAS25follows:

31 Dec 11 $’000’s

Netmarketvalueof assets 4,315,324

Accruedbenefits(peraccounting standards) 4,642,133

Differencebetweenassetsandaccrued benefits (326,809)

Vestedbenefits(Minimumsumwhichmustbepaidtomemberswhentheyleavethefund) 4,838,503

ThefinancialassumptionsusedtocalculatetheaccruedbenefitsforthedefinedbenefitcategoryoftheFundwere:

Netinvestment return 7.50% p.a.

Salary inflation 4.25% p.a.

Price inflation 2.75% p.a.

ThenextfullactuarialinvestigationoftheFund’sliabilityforaccruedbenefitswillbebasedontheFund’spositionasat30June2014.The anticipatedcompletiondateofthisactuarialinvestigationis19December2014.

Notes



Notes

18(b) accumulation schemes (items e & f)TheFund’saccumulationcategory,VisionMySuper/VisionSuperSaver,receivesbothemployerandemployeecontributionsonaprogressivebasis.Employercontributionsarenormallybasedonafixedpercentageofemployeeearnings(fortheyearended30June2014,thiswas9.25%requiredunderSuperannuationGuaranteeLegislation).Ourcommitmenttodefinedcontributionplansislimitedtomakingcontributionsinaccordancewithourminimumstatutoryrequirements.NofurtherliabilityaccruestotheemployerasthesuperannuationbenefitsaccruingtotheemployeesarerepresentedbytheirshareofthenetassetsoftheFund.

Effectivefrom1July2014,theSuperannuationGuaranteecontributionrateislegislatedtoincreaseto9.5%,andwillprogressivelyincreaseto12%by2019.BasedonannouncementsincludedintheMay2014FederalBudget,thisprogressiveincreaseto12%willbedelayeduntil2022.

19 Responsible persons and executive officer disclosures

19(a) Responsible personsThenamesoftheResponsiblepersonsofGippslandandSouthernRuralWaterCorporationduringthefinancialyearwere:TheHonPeterWalshMP,MinisterforWater(1/7/2013–30/6/2014)

members of Corporation Board:

Mr.TBurgi(Chairperson)(1/7/2013–30/6/2014)

Mrs.AKilleen(DeputyChairperson)(1/7/2013–30/6/2014)

Ms.GBell(Director)(1/7/2013–30/6/2014)

Mr.MColeman(Director)(1/7/2013–30/6/2014)

Mr.TSwingler(Director)(1/10/2013–30/6/2014)

Mr.RNapper(Director)(1/7/2013–30/6/2014)

Ms.NPye(Director)(1/7/2013–30/6/2014)

Mr.HPeetersAPM(Director)(1/7/2013–30/9/2013)

Mr.CRodda(ManagingDirector)(AccountableOfficer)(1/7/2013–30/6/2014)

Mr.CParker(GeneralManagerGroundwater&Rivers)actedinthepositionofChiefExecutiveOfficerandAccountableOfficerfrom 3/7/2013–9/7/2013,andalso23/6/2014–30/6/2014

Mr.SWrigglesworth(ChiefFinancialOfficer)actedinthepositionofChiefExecutiveOfficerandAccountableOfficerfrom 13/1/2014–24/1/2014,andalso14/4/2014–21/4/2014

Remuneration of responsible persons

RemunerationpaidtoMinistersisreportedintheAnnualReportoftheDepartmentofPremierandCabinet.

OtherrelevantinterestsaredeclaredintheRegisterofMembers’InterestswhicheachmemberoftheParliamentcompletes.

2013–14 2012–13

Remunerationreceived,ordueandreceivablefromtheCorporationinconnectionwiththemanagementof theCorporation(includesterminationpaymentsandbonusespaidattheendofcontracts). 509,271 487,393

ThenumberofresponsiblepersonswhoseremunerationfromtheCorporationwaswithinthespecifiedbandswasas follows:

number number

$0–$9,999 1 2

$10,000–$19,999 0 0

$20,000–$29,999 6 6

$30,000–$39,999 0 0

$40,000–$49,999 0 0

$50,000–$59,999 1 1

$260,000–$269,999 0 1

$270,000–$279,999 0 0

$280,000–$289,999 1 0

9 10


Notes


19(b) Executive officers’ remunerationThenumbersofexecutiveofficers,otherthanresponsiblepersons,andtheirtotalremunerationduringthereportingperiodareshowninthefirsttwocolumnsinthetablebelowintheirrelevantincomebands.Thebaseremunerationofexecutiveofficersisshowninthethirdandfourthcolumns.Baseremunerationisexclusiveofbonuspayments,long-serviceleavepayments,redundancypaymentsandretirementbenefits.Thetotalannualisedemployeeequivalentrepresentstheequivalenttoallexecutiveofficersworking38ordinaryhoursperweekforthereportingperiod.

Severalfactorshaveaffectedtotalremunerationpayabletoexecutivesovertheyear.

Someexecutivesreceivedabonuspayment.Thesebonuspaymentsdependonthetermsofindividualemploymentcontracts.

Anexecutiveresignedduringtheyear,andthishadanimpactontotalremunerationfiguresduetotheinclusionofannualleaveandlong-serviceleavepayments.

total remuneration Base remuneration

2014 2013 2014 2013

$140,000–$149,999 0 4 1 4

$150,000–$159,999 3 0 2 0

$160,000–$169,999 1 0 1 0

$170,000–$179,999 1 0 1 0

$180,000–$189,999 0 0 0 0

$190,000–$199,999 0 0 0 1

$210,000–$219,999 0 1 0 0

total number of executives 5 5 5 5

total annualised employee equivalent 5 5 5 5

total amount 804,169 792,778 790,987 772,062

19(c) Payments to other personnelTherewerenopaymentstootherpersonnel,otherthanresponsiblepersonsandexecutiveofficers.

19(d) other related party transactionsTherewerenoretirementbenefitspaidinconjunctionwiththeretirementofresponsiblepersons,norwerethereanytransactionsbetweentheCorporationandanyresponsiblepersonotherthanthosewhichoccurredwithinthenormalarmslengthtransactionbetweentheCorporationanditscustomers.

20 Financial instruments

20(a) Financial risk management objectives and policiesTheCorporation’sactivitiesexposeittoavarietyoffinancialrisks:marketrisk,creditriskandliquidityrisk.ThisnotepresentsinformationabouttheCorporation’sexposuretoeachoftheserisks,andtheobjectives,policiesandprocessesformeasuringandmanagingrisk.

TheCorporation’sBoardhastheoverallresponsibilityfortheestablishmentandoversightoftheCorporation’sriskmanagementframework.TheCorporation’soverallriskmanagementprogramfocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotentialadverseeffectsonthefinancialperformanceoftheCorporation.TheCorporationusesdifferentmethodstomeasuredifferenttypesofrisktowhichitisexposed.Thesemethodsincludesensitivityanalysisinthecaseofinterestrate,andotherpricerisksandageinganalysisforcreditrisk.

RiskmanagementismonitoredbytheAuditandRiskPolicyCommitteeunderpoliciesapprovedbytheBoardofDirectors.TheBoardprovideswrittenprinciplesforoverallriskmanagement,aswellaspoliciescoveringspecificareas,suchascreditrisk,useoffinancialinstruments,andinvestmentofexcessliquidity.

Specifically,theCorporationmanagesfinancialriskbyadoptionofStateGovernmentTreasuryManagementGuidelines,aswellastheFinancialRiskManagementPolicy.TheTreasuryManagementGuidelinesconformwiththeBorrowingandInvestmentPowersAct(BIPAct), whichprovidesstatutorycorporationstheirauthoritytoborrowandinvest.DepartmentofTreasuryandFinance(DTF)guidelinesdirectwatercorporationstoarticulateaTreasurypolicy,andSRWhasadoptedpracticesconsistentwiththisguidance.

DTFrequirementsdictatethatallnewborrowingsmustbeapprovedbytheTreasurerofVictoria.Annually,aFinancialAccommodationapprovalisprovidedbytheTreasurerwhichisconsistentwiththeCorporation’sbudgetplanning,andcashrequirements.At1July2013,theCorporationheldaFinancialAccommodationapprovalfor$28.8Mofborrowings(1July2012$21.3Mofborrowings).

InaccordancewithDTFguidance,inordertominimisecreditriskexposuretotheCorporation,theTreasuryManagementPolicylimitsinvestmentofsurplusfundstofinancialinstitutionsapprovedbyDTF.Duringthe2014financialyear,surplusfundswereinvestedwiththeNationalAustraliaBankandtheTreasuryCorporationofVictoriaonly.


Notes

20(b) Risk exposuresThemainriskstheCorporationisexposedtothroughitsfinancialinstrumentsaremarket,creditandliquidityrisks,asdescribedbelow:

20(b)(i) market riskMarketriskistheriskthatchangesinmarketpriceswillaffectthefairvalueorfuturecashflowsoftheCorporation’sfinancialinstruments.Marketriskcomprisesofforeignexchangerisk,interestrateriskandotherpricerisk.TheCorporation’sexposuretomarketriskisprimarilythroughinterestraterisk.Thereisnoexposuretoforeignexchangeriskandinsignificantlevelofexposuretootherpricerisks.

Objectives,policiesandprocessesusedtomanagetheserisksaredisclosedintheparagraphsbelow:

Interest rate risk

TheCorporation’sexposuretomarketinterestratesrelatesprimarilytotheCorporation’sfundsinvested,andborrowed,withtheTreasuryCorporationofVictoria.Bothinvestmentoffundsandshort-termborrowingsareheldatvariablemarketrates.TheCorporation’snon-currentborrowingsareatfixedinterestrates.

TheCorporationhasminimalexposuretointerestrateriskthroughitsholdingofcashassetsandotherfinancialassets.TheCorporationmanagesthisriskbymaintainingaconservativeinvestmentportfoliowherebyinvestmentofsurplusfundsisrestrictedtoDTFapprovedfinancialinstrumentsthatofferfixedorfloatinginterestratestiedtoprevailingmarketrates.

Interestrateriskonborrowedfundsismanagedbyenteringintodebtfacilitieswithabalancedtermprofiletoavoidaconcentrationofmaturities.Inthisway,theCorporation’saggregateinterestrateisanaverageofrecentmarketrates,whichlimitsexposuretointerestre-pricinginanyoneperiod.

Foreign exchange risk

TheCorporationhasnoexposuretochangesintheforeignexchangerate.

Other price risk

TheCorporationhasnosignificantexposuretootherpricerisk.

Market risk sensitivity analysis

Thesensitivityanalysisbelowhastakenintoconsiderationpastperformance,futureexpectations,economicforecastsandmanagement’sknowledgeandexperienceofthefinancialmarkets.TheCorporationbelievesthatamovementof1%ininterestratesisreasonableoverthenext12months.

Carrying amount interest rate risk

30 June 2014

Floating interest rate

$’000’s

Fixed interest rate

$’000’s

non‑interest bearing $’000’s

+1% Result $’000’s

+1% Equity $’000’s

‑1% Result $’000’s

‑1% Equity $’000’s

Financial Assets

Cashassetsanddepositsat call 5,002 0 3 50 50 (50) (50)

Receivables 0 0 4,382 0 0 0 0

5,002 0 4,385 50 50 (50) (50)

Financial Liabilities

Payables,accrualsand provisions 0 0 3,836 0 0 0 0

Interestbearing liabilities 0 17,770 0 0 0 0 0

Advancesforcapital&other works

0 0 388 0 0 0 0

0 17,770 4,224 0 0 0 0

total 5,002 (17,770) 161 50 50 (50) (50)


20(b) Risk exposures continued

20(b)(i) market risk continuedCarrying amount interest rate risk

30 June 2013

Floating interest rate

$’000’s

Fixed interest rate

$’000’s

non‑interest bearing $’000’s

+1% Result $’000’s

+1% Equity $’000’s

‑1% Result $’000’s

‑1% Equity $’000’s

Financial Assets

Cashassetsanddepositsat call 14,871 0 3 149 149 (149) (149)

Receivables 0 0 4,698 0 0 0 0

14,871 0 4,701 149 149 (149) (149)


Payables,accrualsand provisions

0 0 2,990 0 0 0 0

Interestbearing liabilities 0 21,300 0 0 0 0 0

Advancesforcapital&other works

0 0 509 0 0 0 0

0 21,300 3,499 0 0 0 0

total 14,871 (21,300) 1,202 149 149 (149) (149)

Balance sheet notes nature of balance terms and conditions

Financial Assets

Cashassetsanddepositsat call

4(a),4(b)&4(c)

Cashisstatedatitsnominalamount.Surplusfundsareheldinthebankaccountwithexcessrequirementsplacedontermdeposit.

TheBankaccountattractedanaverage2.13%(2013:1.70%)interestratefortheyearandfundsretainedincashmanagementaccountsanaverage2.58%(2013:3.08%).

Receivables 5 Receivablesarestatedatamortisedcostduelessanyprovisionfordoubtfuldebts.

Normaltermsare30daysfromdateofinvoice.Theinterestrateappliedagainstoverdueaccountsis6.9%for2013–14(2012–1310.00%),andfromtimetotime,thisrateisreviewedforconsistencywithmarketinterestrates.Asinterestisderivedfromoverdueaccountsonly,pricesensitivityforinterestrateriskisconsideredinsignificantandnotseparatelycalculated.


Payables,accrualsand provisions

9 Creditorsandaccrualsarerecognisedforfutureamountstobepaidinrespectofgoodsandservicesreceived,whetherornotbilledtotheCorporation.

TermsforthepaymentofcreditorsarenegotiatedwiththesupplierandastheCorporationmakespaymentwithintheseterms,interestchargesarenotincurredbythe Corporation.

Interestbearing liabilities

10 ShortandlongterminterestbearingliabilitiesmustbeborrowedfromTreasuryCorporationofVictoria.

Shorttermborrowingsatafixedrateof2.665%at30June2014(2013:5.31%).Termborrowings:$0.5Mat5.255%maturingJune2016 $3.6Mat3.656%maturingJune2017 $4.74Mat4.10%maturingJune2020 $5.08Mat4.125%maturingJune2021 $3.85Mat4.50%maturingJune2023

Notes



Notes

20(b) Risk exposures continued

20(b)(i) market risk continuedFinancial Liabilities continued

Advancesforcapital& other works

9 Advancesforcapital&otherworksarerecognisedforamountsreceivedinadvanceforrecoverableworks,aswellassecuritydepositsheldinrespectofworksprograms.

Advancesandsecuritydepositsarerefundeduponsuccessfulcompletionofworks,orotherwisebroughttoaccountasrevenuewhererequiredtoundertakecompletionorremediationofworks.InterestisnotpayablebytheCorporationonthesebalances.

TheexposureoftheCorporation’sborrowingstointerestratechangesandthecontractualrepricingdatesaredisclosedatNote20(b)(iii)

20(b)(ii) Credit riskCreditriskistheriskoffinanciallosstotheCorporationasaresultofacustomerorcounterpartytoafinancialinstrumentfailingtomeetitscontractualobligations.CreditriskarisesprincipallyfromtheCorporation’sreceivables.

TheCorporation’sexposuretocreditriskisinfluencedbytheindividualcharacteristicsofeachcustomer.Thereceivablebalanceconsistsprincipallyofirrigationcustomers,largecommercialandpublicsectorenterprisessuppliedunderabulkentitlementorder,aswellasStateGovernmentdepartments.Notwithstandingtheongoingmonitoringofthesedebts,theCorporationconsidersrecoverabilityasvirtuallycertaingivencovenantsestablishedbytheWater Act, 1989,andthecreditworthinessoftheStateGovernment.

AnanalysisoftheageingoftheCorporation’sreceivablesatthereportingdatehasbeenprovidedinNote5.

20(b)(iii) Liquidity riskLiquidityriskistheriskthattheCorporationwillnotbeabletomeetitsfinancialobligationsastheyfalldue.TheCorporation’spolicyistosettlefinancialobligationswithin30daysandintheeventofdisputemakepaymentswithin30daysfromthedateofresolution.

TheCorporationmanagesliquidityriskbymaintainingadequatereserves,bankingfacilitiesandreserveborrowingfacilitiesandbycontinuouslymonitoringforecastsandactualcashflows,andmatchingthematurityprofilesoffinancialassetsandfinancialliabilities.Annually,theCorporationcompletesaCorporatePlanwhichincludesfinancialestimatesforafiveyearperiod.ThisplanincorporatesacashflowforecastthatthenfacilitatesapplicationtoDTFforanynecessaryFinancialAccommodation.FinancialAccommodationestablishestheCorporation’sapprovaltoestablishborrowingfacilities.At30June2014,theCorporationhadnotaccessed$11.03M(2013:$0.00M)ofthisFinancialAccommodation.

InlightoftheCorporation'splannedCapitalexpenditureprogram,andourongoingneedfordebtfundingtosupportthisprogram,theCorporation'sabilitytomeetliabilitiesastheyfalldueisreliantuponDTFapprovalofboththeCorporatePlan,andtheaccompanyingannualFinancialAccommodation.

TheCorporation'sfinancialliabilitymaturitieshavebeendisclosedinNote10.

20(c) Fair value measurementsThefairvalueoffinancialassetsandfinancialliabilitiesmustbeestimatedforrecognitionandmeasurementorfordisclosurepurposes.

Asof1July2009,theCorporationhasadoptedtheamendmenttoAASB7FinancialInstruments:Disclosures.Thisrequiresdisclosureoffairvaluemeasurementsbylevel,usingthefollowingfairvaluemeasurementhierarchy:

Level1: quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities

Level2: inputsotherthanquotedpricesincludedwithinlevel1thatareobservablefortheassetorliability,eitherdirectly(asprices)orindirectly(derivedfromprices);and

Level3: inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).

AllCorporationfinancialassetsandliabilities,otherthaninterestbearingliabilities,arecategorisedaslevel1.Interestbearingliabilitiesarecategorisedaslevel2.


20(c) Fair value measurements continuedThefollowingtablepresentstheCorporation’sfinancialassetsandliabilitiesmeasuredandrecognisedatfairvalue:

2014 2013

Carrying amount $’000’s

Fair value $’000’s

Carrying amount $’000’s

Fair value $’000’s

Financial Assets

Cashassetsanddepositsat call 5,005 5,005 14,874 14,874

Receivables 4,382 4,382 4,698 4,698

9,387 9,387 19,572 19,572


Payables,accrualsand provisions 3,836 3,836 2,990 2,990

Interestbearing liabilities 17,770 18,509 21,300 21,514

Advancesforcapital&other works 388 388 509 509

21,994 22,733 24,799 25,013

Cash,cashequivalentsandnon-interestbearingfinancialassetsandfinancialliabilitiesarecarriedatcostwhichapproximatestheirfairvalue.Thefairvalueofotherfinancialassetsandfinancialliabilitiesisbaseduponmarketprices,whereamarketexistsorbydiscountingtheexpectedfuturecashflowsatcurrentinterestrates.

2013–14 $’000’s

2012–13 $’000’s

21 Reconciliation of the net result for the period to net cash flows from operating activitiesNetlossfortheperiodbeforeincometax (4,707) (3,528)

add/(less) non‑cash flows in the net result for the period

Depreciationandamortisation 11,451 10,826

Gainonsaleoffixedassets (18) (157)

Writtendownvalueoftransferredassets 48 635

Writtendownvalueofdestroyed,lostorde-commissionedassets 284 282

Change in assets and liabilities:

Increase/(Decrease)ininventories (20) 6

Increaseincurrentandnon-currentreceivables 317 (272)

Decrease/(Increase)inotherassets (402) (310)

Increaseinprovisionforemployeebenefits 103 170

Increaseinpayables (283) 124

net cash flows from operating activities 6,773 7,776

22 Ex-gratia expensesTherewerenoex-Gratiaexpensesin2013-14(2012-13:nil)

Notes



Financialreport

Independentauditor’sreport

Indep

endentauditor’sreport–Financialreport



Financialreport


Gippsland and Southern Rural Water Corporation Statutory CertificationWecertifytheattachedfinancialstatementsforGippslandandSouthernRuralWater

CorporationhavebeenpreparedinaccordancewithStandingDirection4.2ofthe

Financial Management Act 1994,applicableFinancialReportingDirections,Australian

AccountingStandardsincludinginteroperationsandothermandatoryprofessional

reporting requirements.

Wefurtherstatethat,inouropinion,theinformationsetoutintheComprehensiveOperating

Statement,BalanceSheet,StatementofChangesinEquity,CashFlowStatementsand

accompanyingnotes,presentsfairlythefinancialtransactionsduringtheyearended30

June2014andthefinancialpositionoftheCorporationasat30June2014.

Asatthedateofsigning,wearenotawareofanycircumstanceswhichwouldrenderany

particularsincludedinthefinancialstatementstobemisleadingorinaccurate.

Weauthorisetheattachedfinancialstatementsforissueon29August2014.

tERRY BuRGi

Chairperson

GippslandandSouthernRuralWaterCorporation

Datedon29August2014

CLinton RoDDa

ManagingDirector


Datedon29August2014


ChiefFinancialOfficer


Datedon29August2014

Financialreport

Compliancecertificate

Com

pliancecertificate—

Financialreport


Financial Performance indicators

KPi number Key Performance indicator

2012–13 Result

2013–14 Result

2013–14 target

% Variance

to prior year notes

% Variance to target notes

Cash interest Cover

FI CashFlowFromOperationsBeforeNetInterestandTax times 60.5 10.2 5.7 -83% 3 79% 7

NetInterestPayments

Gearing Ratio

F2 TotalDebitIncludingFinanceLeasesx100 1.70% 1.43% 1.90% -16% 2 -25% 6

TotalAssets

internal Financing Ratio

F3 NetOperatingCashFlowx100 59.22% 42.28% 22.50% -29% 1 88% 5

CapitalExpenditure

Current Ratio

F4 CurrentAssets

times 1.76 1.04 1.03 -41% -5 1% 5CurrentLiabilities(excludinglong-termemployeeprovisionsandrevenuein advance)

Return on assets

F5 EarningsbeforeNetInterestandTaxx100 -0.30% -0.34% -0.60% -13% 4 44% 8

AverageAssets

Return on Equity

F6 NetProfitAfterTaxx100 -0.25% -0.33% -0.60% -32% 4 45% 8

AveragetotalEquity

EBitDa margin

F7 EarningsBeforeInterest,Tax,DepreciationandAmortisation x100 25.57% 24.45% 20.80% -4% 4 18% 8

TotalRevenue

notes

Significant variances to prior year

Sincethe2012–13year,thefollowingchangestoourfinancialresultshaveoccurred:

•Adeteriorationtooperatingresultby$1.2M,resultingfrom:

–greaterdepreciationexpenseresultingfromincreasedcapitalexpenditure

–highernetinterestcostsfromlesscashondepositandlargerloanaccommodationportfolio

–repaymentofgrantcontributionfundsforunusedportion

–greaterexpenditureonenvironmentalcontribution.

•Greatercapitalexpenditurethanpreviousyear,astheMID2030projectincreases.

Together,thesechangessincethepreviousyear:

1. Reducedouroperatingresultsothatmoreofourcapitalexpenditureprogramhasbeenfundedfromoperatingcashflows.

2. Marginallydecreasedourgearing,asdebtislowerthanpreviousyear.

3. Reducedourreturnonassets,ourreturnonequityandEBITDAmarginasoperatinglosshasincreased.

4. Reducedcurrentratio,astheCorporationholds$10Mlesscashanddepositsthanat30June2013.

Performancereport


Performancereport

Significant variances to target

The2013–14targetisderivedfromthe2013–14CorporatePlanoftheCorporation.Sincethe2013–14CorporatePlanwasfinalised,thefollowingchangestoourprojectionhaveoccurred:

•Abetterthanforecastoperatingresultby$3.7M,resultingfrom:

–lessdepreciationexpenseresultingfromtheassessmentofsomewaterinfrastructureassetswithanunlimitedusefullife

–lowernetinterestcostsfrommorecashondepositandlowerinterestrates

–morewatershareauctionreceiptsthanexpected

–lowerexpenditureonemployeecosts,metermaintenance,insuranceandutilities

–deferralofsomeprojectexpenditureto2014–15.

•Lesscapitalexpenditurethanprojected,throughprojectcostsavings.

Animprovedoperatingresultandcashflows,andreducedcapitalexpenditurehaveresultedin:

5. Moreofourcapitalexpenditureprogramfundedfromoperatingcashflows.

6. Adecreasetoourgearing,asdebtislowerthanforecast.

7. Improvedourcashinterestcover,asnetinterestcostsarelowerandoperatingcashflowsarebetterthanexpected.

8.Improvedourreturnonassets,returnonequityandEBITAmarginasoperatinglossislessthanexpected.

Water Services Performance indicators


2012–13 Result

2013–14 Result

2013–14 target

% Variance

to prior year notes


Rural water supply deliveries

WSR1 Numberofordersdeliveredx100 96.25% 95.44% 82.00% -1% 16% 3

Totalumberoforders

unavailability of Domestic and Stock supply

WSR2 DurationthatDomesticandStockserviceisunavailableinexcessofon-propertystorage

NA NA NA NA 1 NA 4

Groundwater supply

WSR3 Numberoftransfersprocessedwithintargetperiod x100 73.10% 100% 99.50% 37% 2 1%

Totalnumberoftransfersprocessed

notes

Significant variances to prior year

1. Thisindicatoronlyrelatestowhereaspecificordirectdomesticandstocksupplyexists(e.g.pipeline).AstheCorporationdoesnotsupplyin thisfashion,theindicatorisnotapplicable.

2. Theindicatorrelatestopermanenttrades.Oursystemshavebeenimprovedsince2012–13toensureourtargetsaremet.

Significant variances to target

3. ThetargetisderivedfromtheWaterPlan3submission.Sincethen,theCorporationhasrecordedasignificantlybetterresultascustomersinWerribeeandBacchusMarshhavebeenencouragedtouseourautomatedwaterorderingsystem.

4. Thisindicatoronlyrelatestowhereaspecificordirectdomesticandstocksupplyexists(e.g.pipeline).AstheCorporationdoesnotsupplyin thisfashion,theindicatorisnotapplicable.

Perform

ancereport


Performancereport

Customer Responsive Performance indicators


2012–13 Result

2013–14 Result

2013–14 target

% Variance

to prior year notes


Billing Complaints

CR4 Numberofcomplaintsper100 customers number 0.002 0.006 0.005 67% 1 20% 1

notes:

1. Thetargetpresentedisafiveyearaverageofimmediatepastperformance.Whilethepercentageincreasefrom2012–13andtargetappearssignificant,asthisrepresents4and1newcomplaintsonly,thisremainsaverylownumberofcomplaintstothecorporation.

Environmental Performance indicators


2012–13 Result

2013–14 Result

2013–14 target

% Variance

to prior year notes


total net Co2 emissions

E2 NettonnesCO2equivalent tonnes 52.0 59.0 47.0 13% 1 25% 1

notes:

1. Thetargetusedforthisindicatorisprovidedfromthe2014–15CorporatePlan.Whilethepercentageincreasefrom2012–13andtargetappearssignificant,whenassessedagainstgrossCO2emissions,thedifferenceisaresultofpurchasingslightlylessoffsetsin2013–14(pre-offsetCO2emissions:2012–13–1326tonnes;2013–14–1325tonnes).


Gippsland and Southern Rural Water Corporation CertificationWecertifythattheaccompanyingPerformanceReportofGippslandandSouthernRural

WaterCorporation,inrespectof2013–14financialyear,ispresentedfairlyin accordance

withtheFinancial Management Act 1994.

ThePerformanceReportoutlinestherelevantperformanceindicatorsforthefinancialyear

asdeterminedbytheMinisterforWaterandassetoutinthe2013-14CorporatePlan,

theactualandcomparativeresultsachievedforthefinancialyearagainstpredetermined

performancetargetsfortheseindicators,andanexplanationofanysignificantvariances

betweentheactualresultandtheperformancetargetand/orbetweentheactualresultsin

thecurrentyearandthepreviousyear.

Asatthedateofsigning,wearenotawareofanycircumstanceswhichwouldrenderany

particularsinthePerformanceReporttobemisleadingorinaccurate.

tERRY BuRGi

Chairperson


Datedon29August2014

CLinton RoDDa

ManagingDirector


Datedon29August2014


ChiefFinancialOfficer


Datedon29August2014

Com

pliancecertificate—

Perform

ancereport

Performancereport

CompliancecertificateCompliancecertificate



Performancereport


Indep

endentauditor’sreport–P

erformancereport

Independentauditor’sreportPerformancereport


Appendices09Appendix1–Regulatedsystemswaterdata

Regulated Systems Available Allocation Summaryinflows Volume (mL) outflows Volume (mL)

Balanceat1July2013 4,040 Waterusage (173,082)

Seasonalallocation 179,886 Allocationadjustments(3) 116

Spill allocation 44,527 total outflows (172,966)

total inflows 228,453

Unusedwaterat30June2014 55,487

Less:Endofyearadjustments

Overuse (287)

Evaporationon30JuneCarryover 853

Write-offon30June(4) 48,164

48,730

Equals: Carryover carried forward to 1 July 2014(5) 6,757

1. ThistableprovidesasummaryofwatermadeavailableinallocationaccountsmanagedbySRWduringthe2013–14wateryear.2. Thetableshowsmovementofwaterforallocationaccountswithregulatedtradingzonesourcesonly.Thisincludesallocationsmadetoallwater

sharesandbundledentitlements,suchassupplybyagreementsandurbanbulkentitlements.Unregulatedandgroundwaterentitlementsareexcludedbecausesomearenotmeteredandusageisnotfullyavailable.

3. Theallocationadjustmentsshowninthistableincludeamendmentstoallocationmadeduringtheyear.4. Write-offvolumeon30JuneisanyunusedwaterasthereisnoabilitytocarryoverineithertheThomson/MacalisterortheWerribeesystems

(withtheexceptionoftheThomson/MacalisterEnvironmentalEntitlement).5. Carryovercarriedforwardto1July2013reflectsthewatercarriedoverontheThomson/MacalisterEnvironmentalEntitlementandcarriedover

onWerribeewatershareswhocancarryover100%ofentitlementvolumefrom1July2014.

Regulated Systems Allocation Trade (ML)Buyer

31a

D B

acch

us

mar

sh D

istr

ict

31B

D W

erri

bee

D

istr

ict

31B

R L

ow

er

Wer

rib

ee D

iver

ters

41 m

acal

iste

r

42B

mid

‑th

om

son

total SoLD number of trades

net sold

Sel

ler

31ADBacchusMarshDistrict 353 75 428 19 75

31BDWerribeeDistrict 1,568 828 2,396 70 557

31BRLowerWerribeeDiverters 196 196 5 (632)

41Macalister 11,897 80 11,977 197 (628)

42BMid-Thomson 708 1,074 1,782 29 628

total PuRCHaSED 353 1,839 828 12,605 1,154 16,779

number of trades 16 76 2 209 17 320


App

endices

Water Usage in Regulated Trading Zone Sources Per Delivery SystemDelivery System Volume (mL)

macalister irrigation area

MacalisterIrrigationDistrict 129,205.4

MacalisterRiver 19,181.8

ThomsonRiver 15,109.5

Subtotal – macalister irrigation area 163,496.7

Werribee irrigation area

WerribeeIrrigationDistrict 6,788.7

BacchusMarshIrrigationDistrict 2,647.4

WerribeeRiver 148.8

Subtotal – Werribee irrigation area 9,584.9

Grand total 173,081.6

1. ThistableshowsusagepostedtotheVictorianWaterRegisterperdeliverysystemforallocationaccountswithregulatedtradingzonesources.2. Deliverysystemsaregroupedtoreducethecomplexitycausedbysmalldeliverysystems.3. 14,991MLofuseintheMacalisterRiverdeliverysystemwasusedbytheMacalisterEnvironmentalEntitlement.

Water Entitlements in Regulated Systems

River basin

Water Shares – High Reliability

Water Shares – Low Reliability

Bulk Entitlements

take and use licences

Volume (mL)

number Volume (mL)

number Volume (mL)

number Volume (mL)

number

Latrobe 31,297.1 122

Thomson/Macalister 147,520.4 1,594 70,469.0 1,240 21,025.4 3

Werribee 15,016.6 456 7,026.2 393 58.0 1

Regulated total 30 June 2014 162,537.0 2,050 77,495.2 1,633 21,083.4 4 31,297.1 122

Regulated Total 30 June 2013 161,976.1 2,012 76,785.3 1,605 21,083.4 4 30,979.1 119

1. Thistableshowsthenumberandvolumeofactiveentitlementsinregulatedwatersystemsasat30June2014.2. Thevolumeofwatersharesincreasedby1,271MLduring2013–14followinganauctionofauditedwatersavings.


totheAnnualReportfortheyearended30June2014

Appendices

Regulated Systems Transfer and Variation of High Reliability Water Shares (Volume (ML))Destination

Bac

chus

mar

sh

irrig

atio

n D

istr

ict

mac

alis

ter R

iver

mac

alis

ter

irrig

atio

n D

istr

ict

SR

W –

nW

u

thom

son

Riv

er

Wer

ribee

Riv

er

Wer

ribee

ir

rigat

ion

Dis

tric

t

total trades (mL)

number of trades

net out (mL)

So

urc

e

BacchusMarsh IrrigationDistrict 157 0 0 0 0 0 0 157 3 0

Macalister River 0 1,257 65 0 0 0 0 1,322 12 41

MacalisterIrrigation District 0 24 18,901 125 120 0 0 19,170 182 200

SRW– NWU 0 0 4 0 0 0 0 4 2 (121)

Thomson River 0 0 0 0 5,231 0 0 5,231 61 (120)

Werribee River 0 0 0 0 0 15 0 15 6 0

WerribeeIrrigation District 0 0 0 0 0 0 358 358 14 0

total trades (mL) 157 1,281 18,970 125 5,351 15 358 26,258 0

number of trades 3 11 183 1 62 6 14 280

1. Thistablesummarisesallrecordedwaterentitlementtransfer,divideandtransferandvariationapplicationsforhighreliabilitywatershares.Someothertradeswerestillinprogressatyearendandwillbefinalisedin2014–15.

2. Transferapplicationsresultinachangeofownership.Insomecases,thechangeofownershipoccurswithatransferofland.Transfersofownershipthatarepartofawater/landsalearenotseparatedout.

3. Avariationapplicationoccurswithoutachangeinownership.4. Deliverysystemsaregroupedtoreducecomplexitycausedbysmalldeliverysystems.

Regulated Systems Transfer of High Reliability Water Shares (Volume (ML))Destination

Bac

chus

mar

sh

irrig

atio

n D

istr

ict

mac

alis

ter R

iver

mac

alis

ter

irrig

atio

n D

istr

ict

SR

W –

nW

u

t hom

son

Riv

er

Wer

ribee

Riv

er

Wer

ribee

ir

rigat

ion

Dis

tric

t

total Sales (mL)

number of Sales

So

urc

e

BacchusMarsh IrrigationDistrict 157 0 0 0 0 0 0 157 3

Macalister River 0 329 24 0 0 0 0 353 4

MacalisterIrrigation District 0 0 6,289 0 0 0 0 6,289 62

SRW– NWU 0 0 0 0 0 0 0 0 0

Thomson River 0 0 0 0 1,509 0 0 1,509 17

Werribee River 0 0 0 0 0 7 0 7 3

WerribeeIrrigation District 0 0 0 0 0 0 248 248 10

total Purchases (mL) 157 329 6,313 0 1,509 7 248 8,563

number of Purchases 3 4 62 0 17 3 10 99

1. Thistablesummarisesallrecordedwaterentitlementtransferanddivideandtransferapplicationsforhighreliabilitywatershares.Someothertradeswerestillinprogressatyearendandwillbefinalisedin2014–15.


3. Deliverysystemsaregroupedtoreducecomplexitycausedbysmalldeliverysystems.

09


App

endices

Regulated Systems Transfer and Variation of Low Reliability Water Shares (Volume (ML))Destination

Bac

chus

mar

sh

irrig

atio

n D

istr

ict

mac

alis

ter R

iver

mac

alis

ter

irrig

atio

n D

istr

ict

SR

W –

nW

u

thom

son

Riv

er

Wer

ribee

Riv

er

Wer

ribee

ir

rigat

ion

Dis

tric

t

total trades (mL)

number of trades

net out (mL)

So

urc

e

BacchusMarsh IrrigationDistrict 74 0 0 0 0 0 0 74 3 0

Macalister River 0 629 30 0 0 0 0 659 11 30

MacalisterIrrigation District 0 0 9,044 59 88 0 0 9,191 156 117

SRW– NWU 0 0 0 0 0 0 0 0 0 (59)

Thomson River 0 0 0 0 2,563 0 0 2,563 51 (88)

Werribee River 0 0 0 0 0 0 0 0 0 0

WerribeeIrrigation District 0 0 0 0 0 0 167 167 14 0

total trades (mL) 74 629 9,074 59 2,651 0 167 12,653 0

number of trades 3 11 156 0 51 0 14 235

1. Thistablesummarisesallrecordedwaterentitlementtransfer,divideandtransferandvariationapplicationsforlowandspillreliabilitywatershares.Someothertradeswerestillinprogressatyearendandwillbefinalisedin2014–15.


3. Avariationapplicationoccurswithoutachangeinownership.4. Deliverysystemsaregroupedtoreducecomplexitycausedbysmalldeliverysystems.

Regulated Systems Transfer of Low Reliability Water Shares (Volume (ML))Destination

Bac

chus

mar

sh

irrig

atio

n D

istr

ict

mac

alis

ter R

iver

mac

alis

ter

irrig

atio

n D

istr

ict

SR

W –

nW

u

thom

son

Riv

er

Wer

ribee

Riv

er

Wer

ribee

ir

rigat

ion

Dis

tric

t

total Sales (mL)

number of Sales

So

urc

e

BacchusMarsh IrrigationDistrict 74 0 0 0 0 0 0 74 3

Macalister River 0 164 0 0 0 0 0 164 2

MacalisterIrrigation District 0 0 2,904 0 0 0 0 2,904 49

SRW– NWU 0 0 0 0 0 0 0 0 0

Thomson River 0 0 0 0 764 0 0 764 15

Werribee River 0 0 0 0 0 0 0 0 0

WerribeeIrrigation District 0 0 0 0 0 0 116 116 10

total Purchases (mL) 74 164 2,904 0 764 0 116 4,022

number of Purchases 3 2 49 0 15 0 10 79

1. Thistablesummarisesallrecordedwaterentitlementtransferanddivideandtransferapplicationsforlowandspillreliabilitywatershares.Someothertradeswerestillinprogressatyearendandwillbefinalisedin2014–15.


3. Deliverysystemsaregroupedtoreducecomplexitycausedbysmalldeliverysystems.


Trade of Groundwater Take and Use Licences 2013–14

Water System SourcePermanent trade temporary trade trade as part of land transfer

number Volume (mL) number Volume (mL) number Volume (mL)

Bungaree(GMU) 11 215.0 6 278.1

Cardigan(GMU) 2 8.0

Colongulac(GMU) 1 3.0 1 3.7

Condah(GMU) 2 16.2

Denison(GMU) 3 270.0 5 260.1

Deutgam(GMU) 1 39.0 3 134.6

Giffard(GMU) 1 200.0 1 50.0 1 10.0

Glenelg(GMU) 1 200.0 1 80.0

Glenormiston(GMU) 2 183.7

Hawkesdale(GMU) 2 265.0 2 1,413.5

Heywood(GMU) 5 152.5

KooWeeRup(GMU) 8 194.1 16 487.9 13 1,628.1

Lancefield(GMU) 1 10.0 2 235.0

Merrimu(GMU) 1 15.7

Moe(GMU) 1 50.0 2 18.0

Moorabin(GMU) 1 3.0 1 3.0

Nepean(GMU) 3 145.0 11 545.1 3 128.8

Nullawarre(GMU) 3 64.3 7 540.0 7 745.4

Rosedale(GMU) 1 40.0 1 288.4 4 33.7

Sale(GMU) 2 121.2 6 416.5 5 373.2

Stratford(GMU) 1 90.0

Unincorporated(GMU) 1 20.0 3 105.0 46 1,558.7

WaDeLock(GMU) 3 167.0 3 578.7 6 872.0

WandinYallock(GMU) 4 44.0 5 96.0

Warrion(GMU) 3 356.4 1 150.0 5 266.8

WyYung(GMU) 1 40.0 2 60.0 1 12.0

Yangery(GMU) 3 59.0 3 71.0 3 168.1

Yarram(GMU) 1 300.0 3 2,647.5 3 294.0

total 34 1,861.7 81 6,990.1 136 8,973.2

1. Thistableshowsthenumberandvolume(ML)oftradesofgroundwatertakeanduselicences.Temporaryandpermanentvolumetradesindicatethetradeofwateracrossdifferentlocations,asdistinctfromownershipchangesthatarepartoflandtransfers.

Appendix2–Unregulatedsystemswaterdata

Appendices09


App

endices

Trade of Surface Water Take and Use Licences 2013–14

Water System SourcePermanent trade temporary trade trade as part of land transfer

number Volume (mL) number Volume (mL) number Volume (mL)

Barwon 5 165.3 7 181.7

Bunyip 6 107.4 10 366.6 20 283.5

EastGippsland 1 2.2

Glenelg 1 2.2 3 93.2

Hopkins 1 25.0 6 420.0 12 806.6

Latrobe 4 30.0 9 360.5 19 324.3

Maribyrnong 2 33.5

Mitchell 2 75.0 13 420.8

Moorabool 3 35.7 2 37.0

OtwayCoast 5 90.9

PortlandCoast 1 4.2

Snowy 2 59.0 2 360.0

SouthGippsland 1 20.0 1 3.0 27 392.7

Tambo 1 20.6 8 99.4

Thomson/Macalister 3 172.0 11 352.7

Werribee 1 19.0

total 14 205.2 41 1,657.1 1,374 3,501.7

1. Thistableshowsthenumberandvolume(ML)oftradesofsurfacewatertakeanduselicences.Temporaryandpermanentvolumetradesindicatethetradeofwateracrossdifferentlocations,asdistinctfromownershipchangesthatarepartoflandtransfers.

Disposal and Managed Aquifer Recharge permits

River Basin or GmuDisposal Permits managed aquifer Recharge

number Volume (mL) number Volume (mL)

Moorabbin(GMU) 1 10.0

Paaratte(GMU) 3 10,245.0

Unincorporated(GMU) 15 1,119.1 5 801.0

Yangery(GMU) 1 4.0

Grand total 20 11,378.1 5 801.0

New permits issued 2013–14

River Basin or GmuDisposal Permits managed aquifer Recharge

number Volume (mL) number Volume (mL)

Moorabbin(GMU) 1 10.0

Paaratte(GMU) 1 116.0

Cardigan(GMU)1 1 60.0

Unincorporated(GMU) 3 2.5

Grand total 5 128.5 1 60.0

notes

1 PermitcancelledMay2014atcustomersrequest


Unregulated Surface Water Entitlements 2013–14irrigation Domestic

and stockCommercial /

industrialother

purposestotal metered

usage (mL)

BasinPCV (mL)

License type

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

Barwon 60,791

Takeanduselicence 5,171.6 126 116.6 53 247.2 13 74.9 12 5,610.3 204 1,173.3

Registrationlicence 8,611.4 262 0.0 0.0 228.6 14 134.2 18 8,974.2 294

BulkEntitlement 55,733.0 3

70,317.5 501

Bunyip 45,549


Registrationlicence 19,089.5 565 0.0 0 2,010.5 71 929.5 124 22,029.5 760

BulkEntitlement 0.0 5

41,052.8 1,593

EastGippsland

Takeanduselicence 615.0 13 33.8 11 5.4 3 5.6 2 659.8 29 89.8

Registrationlicence 168.4 4 0.0 0 2.0 1 5.7 1 176.1 6


1,457.9 38

Glenelg

Takeanduselicence 873.2 18 102.6 35 16.0 3 32.6 6 1,024.4 62 172



6,337.9 111

Hopkins

Takeanduselicence 11,077.5 120 77.1 32 232.4 6 29.7 7 11,416.7 165 1,924

Registrationlicence 5,891.7 110 0.0 0 23.0 4 33.0 7 5,947.7 121


17,993.4 288

Lake Corangamite

Takeanduselicence 958.7 22 6.6 3 72.4 3 99.2 9 1,136.9 37 108.2


BulkEntitlement

4,819.8 138

Latrobe 275,193

Takeanduselicence 17,404.2 448 300.7 124 639.0 16 5,643.9 121 23,987.8 771 6,144.5



212,630.9 944

Maribyrnong

Takeanduselicence 1,600.8 54 297.8 70 12.9 4 0.0 0 1,911.5 128 243.7



12,086.0 205

Millicent Coast

Takeanduselicence 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0

Registrationlicence 897.4 3 0.0 0 0.0 0 0.0 0 897.4 3 0.0


897.4 3

Mitchell




25,052.3 381


Appendices09


App

endices

Unregulated Surface Water Entitlements 2013–14 continuedirrigation Domestic

and stockCommercial /

industrialother

purposestotal metered

usage (mL)

BasinPCV (mL)

License type

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

Moorabool


46,427 Registrationlicence 5,618.0 157 0.0 0 180.2 4 0.0 0 5,798.2 161


52,478.2 318

OtwayCoast

59,000

Takeanduselicence 4,991.6 101 147.4 65 165.4 19 1,409.4 111 6,713.8 296 750.5

Registrationlicence 5,697.8 190 0.0 0 101.1 8 1,977.9 185 7,776.8 383


34,157.6 685

PortlandCoast




1,508.3 71

Snowy

Takeanduselicence 3,882.3 54 52.8 23 36.6 3 26.5 6 3,998.2 86 564



7,723.5 124

South Gippsland

Takeanduselicence 10,758.6 226 551.6 242 101.6 18 1,586.6 285 12,998.4 771 2,708.1

Registrationlicence 8,172.9 240 0.0 0 152.7 29 2,262.3 338 10,587.9 607


40,673.3 1,391

Tambo




9,065.4 253

Thomson/Macalister

460,430

Takeanduselicence 13,705.8 173 105.6 48 3,423.5 13 8.8 2 17,243.7 236 3,965.3



20,388.9 357

Werribee 28,552

Takeanduselicence 750.4 25 19.8 9 250.7 6 0.0 0 1,020.9 40 47.8



12,342.7 89

total

take and use licence 113,463.5 2,207 2,964.7 1,200 6,013.8 168 9,515.3 688 131,957.3 4,263 32,642.8

Registration licence 74,248.2 2,254 0.0 0 3,216.5 155 5,766.8 734 83,231.5 3,143

Bulk Entitlement 355,795.0 84

Grand total 187,711.7 4,461 2,964.7 1,200 9,230.3 323 15,282.1 1,422 570,983.8 7,490

notes

TheLatrobebasinincludesbothunregulatedandpartiallyregulatedentitlements.Thepartiallyregulatedentitlementsareshowninthetable'WaterEntitlementsinRegulatedSystems'.

ThebulkentitlementinformationhasbeencapturedfromtheStateWaterRegister


Groundwater Take and Use Entitlements 2013–14irrigation industrial or

Commercialother

Purposestotal Domestic and

stock 5usage

Water System Source (BEE)

PCV (mL)

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

D&S bores

D&S estimated

no. metered

bores

metered usage

(mL)

Bungaree(GMU)1 5,334 4,883.4 93 258.5 8 151.2 3 5,293.1 104 212 318.0 147 3,093.5

Cardigan(GMU) 3,967 847.5 16 28.6 4 3,002.0 2 3,878.1 22 96 144.0 23 462.3

Colongulac(GMU) 4,695 3,917.7 25 26.1 5 313.6 39 4,257.4 69 124 186.0 35 1,134.2

Condah(GMU) 7,475 7,299.2 35 175.5 5 7,474.7 40 49 73.5 44 2,148.2

Corinella(GMU) 2,550 99.0 3 39.0 2 524.1 9 662.1 14 84 126.0 10 76.0

CutPawPaw(GMU) 3,650 169.0 2 344.5 2 513.5 4 4 424.2

Denison(GMU) 18,502 13,406.8 63 5,094.6 59 18,501.4 122 207 310.5 126 5,884.0

Deutgam(GMU) 5,100 5,004.1 143 26.0 3 52.0 1 5,082.1 147 125 187.5 194 801.8

Frankston(GMU) 3,200 757.9 20 894.5 9 19.0 1 1,671.4 30 116 174.0 23 121.6

Gellibrand(GMU) 0.0 0 2 3.0

Gerangamete(GMU) 20,000 8,000.0 1 8,000.0 1 2 3.0 6

Giffard(GMU) 5,689 5,431.5 13 254.0 3 3.0 1 5,688.5 17 70 105.0 19 1,436.0

Glenelg(GMU) 33,262 31,988.1 76 123.0 5 1,150.0 2 33,261.1 83 1,132 1,698.0 98 4,904.3

Glenormiston(GMU) 2,698 2,460.8 11 1.0 1 168.4 29 2,630.2 41 96 144.0 27 1,210.3

Hawkesdale(GMU) 16,161 11,934.1 55 50.4 5 466.5 55 12,451.0 115 1,117 1,676.0 100 4,540.3

Heywood(GMU) 8,500 6,785.8 57 108.0 12 116.9 23 7,010.7 92 1,185 1,778.0 69 1,358.9

JanJuc(GMU)2 39,250 4,250.0 2 7,000.0 1 11,250.0 3 4 6.0 7 3,577.3

KooWeeRup(GMU) 12,915 9,955.7 233 2,204.3 33 451.8 104 12,611.8 370 1,164 1,746.0 253 3,277.2

Lancefield(GMU) 1,485 1,083.9 14 293.6 1 1,377.5 15 61 92.0 20 622.8

Leongatha(GMU) 6,500 952.8 11 103.0 2 784.9 21 1,840.7 34 81 122.0 13 208.9

Merrimu(GMU) 451 428.1 12 12.0 2 - 440.1 14 8 12.0 19 123.5

Moe(GMU) 8,200 3,566.1 29 23.6 5 400.8 62 3,990.5 96 130 195.0 32 797.3

Moorabbin(GMU) 2,700 2,441.0 45 172.8 11 10.0 2 2,623.8 58 299 449.0 71 1,131.8

Nepean(GMU) 6,110 6,084.0 71 25.5 6 6,109.5 77 2,125 2,125.0 79 3,003.9

Newlingrook(GMU) 1,977 121.0 1 25.0 2 1,811.5 3 1,957.5 6 7 11.0 6 44.4

Nullawarre(GMU) 22,741 21,798.2 107 149.0 3 785.8 120 22,733.0 230 942 1,413.0 161 9,067.2

Orbost(GMU) 1,217 1,200.0 3 16.5 1 1,216.5 4 3 5.0 5 257.4

Paaratte(GMU) 4,606 13.0 1 3,198.9 5 3,211.9 6 2 3.0 1 322.5

Portland(GMU) 7,795 174.0 3 15.0 1 7,605.3 4 7,794.3 8 3 5.0 7 2,645.4

Rosedale(GMU)3 22,372 12,869.5 59 172.0 3 9,330.5 5 22,372.0 67 186 279.0 50 5,745.6

Sale(GMU)21,238 17,424.5 98 174.0 7 3,619.2 8 21,217.7 113 353 530.0 113

10,036.9

Stratford(GMU)4 27,645 836.0 8 26,809.0 1 27,645.0 9 1 2.0 7 21.3

Tarwin(GMU) 1,300 2.0 1 35.0 1 1.2 1 38.2 3 663 995.0 1 21.0

WaDeLock(GMU)6 30,795 25,901.5 143 62.2 5 3,322.0 104 29,285.7 252 410 615.0 192 5,546.5

WandinYallock(GMU) 3,008 2,988.9 191 16.0 3 3,004.9 194 78 117.0 210 366.0

Warrion(GMU) 14,086 13,906.0 106 70.0 1 105.0 30 14,081.0 137 304 456.0 143 3,425.6

WyYung(GMU)6 7,463 7,462.0 60 7,462.0 60 31 47.0 72 765.1


Appendices09


App

endices

Groundwater Take and Use Entitlements 2013–14 continuedirrigation industrial or

Commercialother

Purposestotal Domestic and

stock 5usage

Water System Source (BEE)

PCV (mL)

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

Volume (mL)

no. of licences

D&S bores

D&S estimated

no. metered

bores

metered usage

(mL)

Yangery(GMU) 14,352 11,442.9 111 1,451.6 10 1,448.9 34 14,343.4 155 826 1,239.0 174 2,814.9

Yarram(GMU) 25,690 21,013.0 56 2,760.0 5 1,915.8 29 25,688.8 90 291 437.0 90 10,076.5

Unincorporated(GMU) 45,856.8 818 8,439.0 218 18,029.1 500 72,324.9 1,536 7,593 11,390.0 871 12,322.2

total 302,492.8 2,792 22,326.6 380 106,196.6 1,267 431,016.0 4,439 20,182 29,217.5 3,522 103,817

notes

1Bungaree(GMU)GoulburnMurrayWaterhold1mineralwaterlicencefor40ML(Notincludedintotalsabove)

2JanJuc(GMU)7000MLBulkEntitlementlistedunderOtherPurposes

3Rosedale(GMU)includespowergenerationlicences(OtherPurposes)totalling9,304.0MLnotrecordedintheWaterRegister

4Stratford(GMU)includespowergenerationlicences(OtherPurposes)totalling26,809.0MLnotrecordedintheWaterRegister

5AsreportedinStateWaterAccounts2013

6PCVrecordedisatotalof3zoneswithintheGMU

PCVsforthefollowingGMUswereapprovedforamendmentandlistedintheVictorianGovernmentGazettenumberG28dated8August2013:Bungaree,Condah,Denison,Giffard,Glenelg,Glenormiston,Nepean,Nullawarre,Orbost,Rosedale,Sale,WaDeLockZ1,WandinYallock,Warrion,YangeryandYarram.


Thomson/Macalister 2013–14ThefollowinginformationisprovidedinaccordancewithSection20.3oftheThomson/MacalisterBulkEntitlementOrder:

Volume (mL)

at 30 Jun 2013 VolumeofwaterheldatLakeGlenmaggie 103,993

ShareofThompsonReservoirstoragecapacity(underclause9) 31,877

ReleasesfromtheThomsonReservoirtosupplyprimaryentitlements 10,715

Inflowsattributed(underclause10.1and10.2) 12,600

TransferredtoBacchusMarshIrrigationDistrictforemergencysupplies 0

at 1 Jul 2014 VolumeofwaterheldatLakeGlenmaggie 107,797

ShareofThompsonReservoirstoragecapacity(underClause9) 33,813

annual 2013–14 Takenfromwaterway:

•SouthernChannel 100,596

•NorthernChannel 38,004

•EasternChannel 29,276

•CowwarrChannel 21,190

Watertakenbytheprimaryentitlementholders 149,631

Environmentalallocation 12,772

Environmentalrelease(incCarryoverfrom2012–13season) 14,991

Bulk Entitlement order

annual 2012–13 Creditsgranted(underclause17) Nil

TemporaryorpermanenttransfersofabulkentitlementoranyotherentitlementtoSRW Nil

AlterationmadetoSchedules1or2undersub-clause8.1 Nil

Allocation/watersharetransfers–pleasereferto Appendix1

Amendments Nil

Newbulkentitlementsgranted Nil

Programsapprovedtodateundersub-clause18.2 Nil

Programsapprovedtodateundersub-clause19.2 Nil

Compliance

•SRWisnotawareofanyfailuretocomplywiththeprovisionofthebulkentitlement

•tominimisethepotentialforbreachingcompliancewithenvironmentalflows,wehavedevelopedaRiskManagementStrategy

and Action plans.

Diversion Limits

•therequirementforSRWtodetermineandassesscompliancewiththediversionlimitonanannualbasis,asspecifiedintheBulk

EntitlementOrder,iscurrentlyunderreviewbyDEPIWaterResourcesDivisionandwillbeconfirmedinthenextannualreport

•resultsofthemodelledandobserveddataforthe2012–13seasonindicatedthatthecumulativedeparture(percentageofestimatedlong

termaveragediversion)was-79%.Withacompliancetriggerof+20%,noreportwasrequiredbytheMinister.

Appendix3–Bulkentitlements

Appendices09


Long‑term Diversion Limit target, Plus

20% (mL)

Period over which B.E. long‑term

diversion limit target is averaged

Recorded diversion limit target results to

date (mL)

Recorded diversion for year (mL)

Compliance in volume terms

maximum compliance volume

above modelled target next year (mL)

227,860 50years -179,565

(-79%)

211,755 Compliant 225,137

actions

•SRWhasnotexperiencedanydifficultyincomplyingwiththebulkentitlement;thereforenoremedialactionhasbeen taken

•dailyvolumeshavebeenrecordedatLakeGlenmaggie,CowwarrWeir,Wandocka(environmentalflow),MaffraWeir(environmentalflow),

MainNorthernChannel,MainEasternChannel,MainSouthernChannelandCowwarrChannelandcanbeprovideduponrequest.

Latrobe River 2013–14ThefollowinginformationisprovidedinaccordancewithSection16.3oftheBulkEntitlementOrder1996:

Capacity (%) Volume (mL)

at 30 Jun 2013 BlueRockReservoir 98.8 205,668

LakeNarracan 67.0 4,845

at 1 Jul 2014 BlueRockReservoir 100 208,595

LakeNarracan 51.0 3,736

ShareofBlueRockReservoir 2.0 4,171

annual 2013–14 Takenbylicenceholdersfromwaterway:

•UpstreamofYallournWeir 4.0

•DownstreamofYallournWeir 5,192.0

LossesfromshareofBlueRockReservoir 154.5

InternalspillsintoshareofBlueRockReservoir 181.3


annual 2013–14 Periodsofrationingorrestrictionsimposedonlicenceholders Nil

Temporaryorpermanenttransfersofabulkentitlement Nil

TemporaryorpermanenttransfersofabulkentitlementorlicencetoSRW Nil

Amendments–therewerenoamendmentstothisbulkentitlement Nil

Compliance

•SRWhasprovidedforpassingflowrequirementsasspecifiedintheBulkEntitlementOrderforthecompleteyear,with no breaches

•SRWhasnotexperiencedanydifficultyincomplyingwiththebulkentitlement;thereforenoremedialactionhasbeen taken

•SRWhasnotsubmittedandenvironmentaleffectsprogram,buthassubmittedameteringprograminaccordancewith

DEPI requirements.

App

endices


Werribee River 2013–14ThefollowinginformationisprovidedinaccordancewithSection18.1oftheWerribeeBulkEntitlementOrder:

Volume (mL)

annual 2013–14 Volumeofwatertakenbyprimaryentitlementholdersincludingoutfalls:

•BacchusMarsh 2,905.9

•RiverDiverters 119.4

•Myrniong 39.1

•Werribee 6,788.7

Releasesnecessarytosupplytransfersofprimaryentitlements 0

Watertakenfrom:

•BacchusMarshDiversionWeir 4,134.3

•WerribeeDiversionWeir 12,741.5

•MaddingleyPumps 0

WatertakenbySRWfromthesystemwaterwayateachofthediversionweirs:

•LerderdergWeirtoGoodmansCreek 3,468(SRW’sShare347);

•GoodmansCreektoMerrimuReservoir 3,813(SRW’sShare381)

•WerribeeUpperdiversionweirtoPykesCreek 4,256.8

Volumeofwatertakenbyprimaryentitlementholders:

•HighandLowreliabilitywatershares 9,814

•Myrniong 39.1


annual 2013–14 Creditsgranted(underclause15) Nil

Temporaryorpermanenttransferofthebulkentitlement Nil

BulkentitlementorlicencetransferredtotheAuthority Nil

SRWappliedthefollowingrestrictionstoprimaryentitlementholdersintheWerribeeand BacchusMarshIrrigationDistrictsandLicensedDivertersontheWerribeeRiver:

RefertotableprovidedbyDEPI–page94

Changestothisbulkentitlement Nil



Appendices09

month HRWS LRWS Date Confirmed

July–13 75% 0% 4/07/2013

September–13 80% 0% 10/09/2013

September–13 85% 0% 24/09/2013

October–13 100% 5% 8/10/2013

November–13 100% 10% 19/11/2013

December–13 100% 15% 3/12/2013


Compliance

•SRWhaspreviouslysubmittedanenvironmentalmanagementplantoDepartmentofEnvironmentandPrimaryIndustries.SRWhas

submittedameteringplanfortheWerribeeSysteminlinewiththeDepartmentofEnvironmentandPrimaryIndustriesguidelines

•SRWfailedtocomplywiththepassingflowrequirementattheBacchusMarshGaugingsiteonthe6and7September2013whenthe

passingflowdroppedto4.4MLperday,therequiredinstantaneouspassingflowbeing5.0MLperday.Theeffectofthisnon-compliance

wasnegligibleasthedailyvolumeswereexceeded.SRWhasimplementedmeasurestominimisethechanceofareoccurrence.SRW

havecompliedwithallotherprovisionsofthisbulkentitlement

•SRWexperienceddifficultyincomplyingwiththisbulkentitlementpassingflowrequirementattheBacchusMarshGaugingstation.SRW

implementedmeasurestoreducethechanceofnon-compliance,theseincludedimprovedmeasurementofpassingflowsupstreamand

alarmtriggersatthemonitoringsite

•SRWhasrecordeddailyvolumesandcanprovidethisonrequest.Theseincludethedailyflowpassingeachofthestoragesincluding

PykesCreekReservoir,MeltonReservoirandLakeMerrimu.Ifrequired,SRWwillalsoreportonthedailypassingflowoneachofthe

followingDiversionstructuresincludingUpperWerribeeDiversionWeir,BacchusMarshDiversionWeir,LerderdergDiversionWeir,

GoodmansCreekDiversionWeirandWerribeeDiversionWeir.

Maribyrnong River 2013–14ThefollowinginformationisprovidedinaccordancewithSection19.1oftheMaribyrnongBulkEntitlementOrder:

Volume (mL)

annual 2013–14 Waterreleasedtosupplylicenceentitlements 0

SRW’sshareofRosslynneReservoiratthe30June2014 990

Inflows,takingintoaccountevaporationandmeasurementdiscrepancies 115.3

Allowancesfortransferandoperatinglosses 0(noirrigationwatersupplied)

Waterdeductedforpassingflowrequirements 88.2

Watertakenfromthewaterwaybyprimaryentitlementholders 26


annual 2013–14 Temporaryorpermanenttransfersfromthisbulkentitlement Nil

TemporaryorpermanenttransfertoSRW Nil

AlterationstoSchedule1or2 Nil

Temporarytransferswithinthesystem Nil

Amendments Nil


Compliance

•SRWhaspreviouslysubmittedanenvironmentalmanagementplantoDepartmentofSustainabilityandEnvironment.SRWhassubmitted

ameteringplanfortheWerribeeSysteminlinewiththeDepartmentofSustainabilityandEnvironment’sBulkEntitlementguidelines

•SRWcompliedwithallprovisionsofthisbulkentitlement

•SRWagainexperienceddifficultiesincomplyingwiththebulkentitlementpassingflowrequirementattheSunburyGaugingStationdueto

thedistancebetweenthereleasepointandthegaugingsiteandthevaryingsystemlossesduringsummer.

App

endices


Appendices


Tarago River 2013–14ThefollowinginformationisprovidedinaccordancewithSection15.3oftheTaragoBulkEntitlementOrder2009:

Volume (mL)

annual 2013–14 ReleasesweremadefromtheTaragoReservoirtosupplyprimaryentitlements 120


annual 2013–14 Amendments Nil

Compliance

•SRWhascompliedwiththebulkentitlement

•SRWisnotawareofanyfailuretocomplywiththeprovisionsofthebulkentitlement

•SRWhasnotexperiencedanydifficultyincomplyingwiththebulkentitlement;thereforenoremedialactionhasbeentakenorisproposed

•SRW’sBulkEntitlementMeteringProgramwasapprovedbytheMinisterforWaterinApril2012.Noamendmentsweremadein2013–14.

Loy-Yang B (Yallourn River) 2013–14ThefollowinginformationisprovidedinaccordancewithSection12.1oftheBulkEntitlementOrder1996:

Volume (mL)

annual 2013–14 WatertakenbySRWatitspumpingstation 12,360


annual 2013–14 Temporaryorpermanenttransfersofallorpartofthebulkentitlement Nil

Temporaryorpermanenttransfersoflicencestothisbulkentitlement Nil

Amendments Nil

Compliance

•inaccordancewithClause11.4,theEntitlementHolderhasanetworkofmetersinstalledwithinitslowqualitywatersystemthatenablesit

todeterminethelowqualitywaterusagebyboththeLoyYangAandLoyYangBpowerstations.Thisequipmentischeckedmonthlyfor

validityandannuallyforsignalintegrity

•therehavebeennofailuresincomplyingwiththisbulkentitlement

•therearenoexistingoranticipateddifficultiesbytheEntitlementHolderincomplyingwiththeBulkEntitlement

•SRWhasrecordeddailyvolumesandcanprovidetheseonrequest:

a)dailyamountofwatertakenbytheEntitlementHolderfromthewaterwayatthepumpingstation

b)dailyamountofwaterreturnedtothesystemwaterwayortributarystreamsfromtheworksoftheEntitlementHolder.

09

Appendix4–Annualreportingofmajornon-residentialwater users


number of customers

SouthernRuralWater(SRW)mostly

supplieswatertocustomersforpurposes

thatarefarmingordomestic,whichare

excludedfromthisreport.Ouronlywater

supplyisthroughirrigationdistricts;across

therestofourcoveragearea,weissue

licencestotakeandusewater,butdonot

directlysupplywater.

table 1: Customers by volume rangeVolumetric Range – mL per year no. customers

Equaltoorgreaterthan200MLandlessthan 300ML 1




Equaltoorgreaterthan750MLandlessthan 1,000ML 0

Greaterthan 1,000ML 1

total no. customers 5

names of major customers and their participation in water conservation programs

SRWisnotawareofanymajor

customersparticipatinginwater

conservation programs.

App

endices


DisclosureindexTheAnnualReportofSouthernRuralWaterispreparedinaccordancewithallrelevantVictorianlegislations.Thisindexhelpstoidentifyourcompliancewithstatutorydisclosurerequirements.

Legislation Disclosure required Page number

ministerial DirectionsREPoRt oF oPERationS – FRD Guidance

Charter and purpose

FRD22E MannerofestablishmentandtheresponsibleMinister 2 FRD22E Objectives,powers,functionsandduties 2,3,6,7FRD22E Natureandrangeofservicesprovided 3

management and structure

FRD22E Organisationalstructure 9

Financial and other information

FRD10 Disclosureindex 110–111FRD12A Disclosureofmajorcontracts 39FRD15B ExecutiveOfficerdisclosures 79–80FRD22E,SD4.2(k) Operationalandbudgetaryobjectives,andperformanceagainstobjectives 6–7FRD22E Workforcedata,employmentandconductprinciples 33–34FRD22E Occupationalhealthandsafetypolicy 35–36FRD22E Summaryofthefinancialresultsfortheyear 40–45FRD22E Significantchangesinfinancialpositionduringtheyear 41FRD22E Majorchangesorfactorsaffectingperformance 41FRD22E Subsequentevents 42FRD22E ApplicationandoperationofFreedomofInformationAct1982 23FRD22E CompliancewiththebuildingandmaintenanceprovisionofBuildingAct1993 39FRD22E StatementonNationalCompetitionPolicy 39FRD22E ApplicationandoperationoftheProtectedDisclosureAct2012 37FRD22E ApplicationandoperationoftheCarersRecognitionAct2012 36FRD22E Detailsofconsultanciesover$10,000 42FRD22E Detailsofconsultanciesunder$10,000 42FRD22E Statementofavailabilityofotherinformation 39FRD24C Reportingofoffice-basedenvironmentalimpacts 30–31FRD25B VictorianIndustryParticipationPolicydisclosures 39FRD27C Presentationandreportingofperformanceinformation 89FRD29 WorkforceDatadisclosures 33SD 4.5.5 Riskmanagementcomplianceattestation 38SD 4.5.5.1 MinisterialStandingDirection4.5.5.1complianceattestation 5SD4.2(g) Specificinformationrequirements 2, 43SD4.2(j) Sign-offrequirements 5MRD 01 Performancereporting 89–90MRD 02 Waterconsumption 29–30MRD 03 Environmentalandsocialsustainabilityreporting 26–31,20

MRD 04Disclosureofinformationonbulkentitlements,transfersofwaterentitlements,allocationsandlicences,irrigationwaterusageandlicenceentitlements

94–108

MRD 05 Annualreportingofnon-residentialmajorwaterusers 109

Financial ReportFinancial statements required under Part 7 of the Financial Management Act 1994

SD4.2(a) StatementofChangesinEquity 47SD4.2(b) OperatingStatement 44–45SD4.2(b) Balance Sheet 46SD4.2(b) CashFlowStatement 49–57

*nothingtoreport


Legislation Disclosure required Page number

Financial ReportFinancial statements required under Part 7 of the Financial Management Act 1994

other requirements under Standing Directions 4.2

SD4.2(c) CompliancewithapplicableAustralianaccountingstandardsandotherauthoritativepronouncements 49SD4.2(c) CompliancewithMinisterialDirections 28–31,88,94–108SD4.2(d) Roundingofamounts 5,88SD4.2(j) AccountableOfficer’sdeclaration 49SD4.2(f) CompliancewithModelFinancialReport 40–93

other disclosures in notes to the Financial Statements

FRD03A Accountingfordividends *FRD07A Earlyadoptionofauthoritativeaccountingpronouncements 58FRD11A Disclosureofex-gratiapayments *FRD12A Disclosureofmajorcontracts 39FRD17A Longserviceleave,wageinflationanddiscountrates 74FRD19 Privateprovisionofpublicinfrastructure *FRD20A AccountingforStateMotorVehicleLeaseArrangementspriorto1February2004 *FRD21B Responsiblepersonandexecutiveofficerdisclosures 79–80FRD26A AccountingforVicFleetMotorVehicleLeaseArrangementsonorafter1February2004 *FRD27B Presentationandreportingofperformanceinformation 88-91FRD102 Inventories 53,64FRD103D Non-currentphysicalassets 49,51,75FRD104 Foreigncurrency 63FRD105A Interestexpense 51FRD106 Impairmentofassets 56-57FRD107 Investmentproperties *FRD109 Intangibleassets 71FRD110 Cashflowstatements 48FRD112D Definedbenefitsuperannuationobligations 76–80FRD113 Investmentsinsubsidiaries,jointlycontrolledentitiesandassociates *FRD114A Financialinstruments–generalgovernmententitiesandpublicnon-financialcorporations 80-84FRD117 Contributionsofexistingnon-financialassetstothirdparties *FRD119 Contributionsbyowners 47FRD120G Accountingandreportingpronouncementsapplicableto2013–14reportingperiod 49FRD121 Infrastructureassets 52–53,64–70

LegislationFreedomofInformationAct1982 23BuildingAct1983 39ProtectedDisclosureAct2012 36CarersRecognitionAct2012 36VictorianIndustryParticipationAct2003 39Financial Management Act 1994 40–93

Bulk EntitlementsThomsonMacalister 104–105Werribee 106Maribyrnong 107Latrobe 105YallournEnergy 109Tarago 108

Disclosureind

ex

About this reportThis Annual Report has been prepared for the financial year 1 July 2013 to 30 June 2014.

This report is printed on Revive Laser paper. This paper is:

•ManufacturedinAustraliafrom100%recycledfibre

•FSCRecycledCertified

•CertifiedcarbonneutralunderDepartofClimateChange&EnergyEfficiency’sNational

Carbon Offset Standard (NCOS), an Australian Government initiative

Through the Spicers ‘Recreate’ programme, sales of Revive Laser support Landcare

Australia and the restoration and replanting of landfill sites throughout Australia.

© State of Victoria, Southern Rural Water 2014. This publication is copyright. No part may

be reproduced by any process except in accordance with the provisions of the Copyright

Act 1968.

ISSN 1837–1992

Contact details:Southern Rural Water

88 Johnson Street

Maffra, VIC, 3860

1 Tower Road

Werribee, VIC, 3030

132 Fairy Street

Warrnambool, VIC, 3280

Suite 1, 307 Maroondah Highway

Ringwood, VIC, 3134

Phone: (03) 5139 3100

1300 139 510

Fax: (03) 5139 3150

Email: [email protected]

Website: www.srw.com.au

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