2016 - Parliament of NSW...North Parramatta, NSW 1750 Telephone + 61 2 8754 7979 E-mail...

Annual Report 2016

Contents

Venues NSWO’Connell Street Parramatta NSW 2150PO Box 2471 North Parramatta, NSW 1750Telephone + 61 2 8754 7979E-mail [email protected] 26 283 293 435Office hours: 9am – 5pm Monday to FridayPlease note that business hours at each venue are in line with the nature of events.

Hunter Stadium294 Turton RoadBroadmeadow NSW 2292PO Box 83New Lambton NSW 2305Tel + 61 2 4903 3800Fax + 61 2 4956 1624hunterstadium.com

Newcastle Entertainment Centre and ShowgroundShowground, Brown RoadBroadmeadow NSW 2292PO Box 280Waratah NSW 2298Tel + 61 2 4921 2100Fax + 61 2 4921 2199nec.net.au

Pirtek Stadium (formerly Parramatta Stadium)O’Connell StreetParramatta NSW 2150PO Box 2474North Parramatta NSW 1750Tel + 61 2 9683 5755Fax + 61 2 9890 3345pirtekstadium.com

WIN Sports and Entertainment CentresCnr Crown & Harbour StreetsWollongong NSW 2500PO Box 3100Wollongong NSW 2520Tel + 61 2 4220 2800Fax + 61 2 4220 2801wsec.com.au

Chair’s Report 04

Executive Director’s Report 05

Highlights 06

Venues NSW Portfolio 08

Year in Review 10

Who We Are 10

Business Objectives 11

Delivering the Stadia Strategy 11

Corporate Governance 12

Performance 14

Utilisation 14

Sustainability 20

Community 22

Operational 24

Financial Statements 26

Appendices 60

Human Resources 60

Workplace Health and Safety 62

Legal Change 62

Privacy 62

Government Information (public access) 63

Audit and Risk 63

Customer Feedback 65

Expenditure on Consultants 65

Payment of Accounts 65

Annual Report Availability and Production Cost 66

Credit Card Use 66

Investment Performance 66

Digital Information Security Annual Attestation Statement 66

Overseas Travel 66

Venue Management Team 66

Local Venues Councils: Meeting Date and Member Profiles 68

Index 72

VENUES NSW ANNUAL REPORT 2015-2016 HUNTER STADIUM | NEWSCASTLE ENTERTAINMENT CENTRE & SHOWGROUND | PIRTEK STADIUM | WIN SPORTS AND ENTERTAINMENT CENTRES 1

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http://www.venuesnsw.com

http://hunterstadium.com

http://nec.net.au

http://pirtekstadium.com

http://wsec.com.au

https://www.facebook.com/McDonaldJonesStadium/

https://twitter.com/mjstadium/status/786729367028305922

https://www.facebook.com/NewcastleEntertainmentCentre

https://twitter.com/NewcastleEnCent

https://www.facebook.com/pirtekstadium

https://twitter.com/pirtekstadium

https://www.youtube.com/user/ParramattaStadium

https://www.instagram.com/pirtekstadium/

https://www.facebook.com/winentertainmentcentre

https://twitter.com/WINSportsEnt

https://www.youtube.com/user/WSECTV

https://www.instagram.com/winstadium_winentcentre/

The Hon Stuart Ayres MPMinister for Trade, Tourism and Major EventsMinister for SportGPO Box 5341SYDNEY NSW 2001

Dear Minister

Venues NSW 2015–2016 Annual Report

Venues NSW is pleased to submit its 2015-16 Annual Report for your information and presentation to Parliament.

The report has been produced in accordance with the Annual Reports (Statutory Bodies) Act 1984, the Public Finance and Audit Act 1983 and the Regulations under those Acts.

Yours sincerely

John Quayle Janett MilliganChair, Venues NSW Executive Director, Venues NSW

Venues NSW ABN 26 283 293 435

O’Connell St, Parramatta, New South Wales 2150 | PO Box 2471, North Parramatta, New South Wales 1750Telephone +61 2 8754 7979 | Facsimile +61 2 8754 8877 | Email [email protected] | www.venuesnsw.com

VENUES NSW ANNUAL REPORT 2015-2016 HUNTER STADIUM | NEWSCASTLE ENTERTAINMENT CENTRE & SHOWGROUND | PIRTEK STADIUM | WIN SPORTS AND ENTERTAINMENT CENTRES2 3


As I wrote my report this time last year the NSW Government had just announced its commitment to rebuild the Sydney Stadia network starting with a new Western Sydney Stadium in Parramatta.

The decision to begin an historic $1.6 billion investment in sports infrastructure with a new stadium in Western Sydney makes a clear statement about the importance and potential of this great region. By 2031 more than 3 million people will call Western Sydney home, and Venues NSW welcomes the opportunity to give them and the rest of Sydney and NSW the very best contemporary venue to showcase sport and entertainment.

An expression of interest process in May short-listed three consortia that have now been invited to submit tenders to design and construct the new stadium. The groups include Australia’s leading builders and stadium architects. The project is being managed by Infrastructure NSW with a construction timetable that begins early in 2017 and ends with events in the new 30,000 seat venue in the first half of 2019.

The new stadium is one part of a new sports landscape in NSW. With record infrastructure investment and with ANZ Stadium now owned by Government, NSW is on track to offer a co-ordinated network of world-class venues of varying sizes. This will be a vital part of NSW’ success in securing and hosting major events. For the clubs, codes and promoters that use our venues it will mean first class facilities that underpin the operational and commercial success of their events.

The events that our hiring partners bring to our stadiums and entertainment centres are the lifeblood of Venues NSW. During the reporting year, just over 1.2 million people came to our venues. And again, there were international, national and local highlights.

International Rugby League drew record crowds in Newcastle and Parramatta in May when

the program included the Australian and New Zealand women’s teams, the Australian and New Zealand test match and the Pacific Four Nations Tests between Samoa, Tonga, Fiji and PNG.

The A-League semi-final at Pirtek Stadium in April between the Western Sydney Wanderers and the Brisbane Roar was one of the most entertaining matches in front of the largest crowd of the season.

In Newcastle and Wollongong our venues continued to host business and community meetings, conferences and events including the Westpac Rescue Helicopter Ball for 1,412 people in Newcastle and the Illawarra International Women’s Day Lunch for 737 people in Wollongong. Our venues play an important role in their business communities offering a range of opportunities to business to supply products and services, to promote their business through advertising and sponsorships. In Newcastle we have just welcomed McDonald Jones Homes as the naming rights partner of Hunter Stadium. McDonald Jones Homes was established and remained based in the Hunter and is now the Number one builder of residential homes in NSW. I thank them and all our business partners for their support during the year.

I extend my thanks to our Minister for Sport, The Hon Stuart Ayres MP, for his ongoing support and leadership. I would like to take this opportunity also to acknowledge my fellow Board members, our Local Venues Councils and our Executive Director, Janett Milligan and all the Venues NSW staff. Janett worked with the Board to establish Venues NSW in 2012 and has consolidated and strengthened the organisation. She has also been instrumental in setting a future course for the organisation and positioning it to support the Government’s plans to streamline stadia governance.

John Quayle

Chair’s Report

Our vibrant event schedule revolved around our NRL anchor tenants the Newcastle Knights, the Parramatta Eels, and the St George Illawarra Dragons; our A-League anchor tenants the Western Sydney Wanderers and the Newcastle Jets; and our NBL anchor tenant the Illawarra Hawks. Between them they brought over 650,000 fans to events in Newcastle, Parramatta and Wollongong. To this regular offering of first-class events we added international NRL, an A-League final and Championship Netball when the NSW Swifts played the West Coast Fever in Newcastle.

The Entertainment Centres in Newcastle and Wollongong continued to offer a full and diverse range of concerts and events from the KISS Spider Tour and Disney on Ice to bull riding to local school spectaculars, to total audiences of 207,000.

Regardless of the nature or the size of the event, our core business is delivering each event to the highest standard and ensuring that our patrons have a good time. Staff continue to focus on the basics of keeping the venues attractive, welcoming and safe and delivering excellent service. Behind this simple objective lies the challenges of maintaining specialist facilities and delivering consistently good services to over 1.2 million people.

Against this busy background of business as usual, the future development of Venues NSW crystallised with the Government’s decision to build a new 30,000 seat Western Sydney Stadium on the site of the current Pirtek Stadium at Parramatta. The decision was part of a broader program of infrastructure investment and a commitment from Government to streamline the governance of venues to deliver coordination and commercial synergies.

The Western Sydney Stadium project provided us with the opportunity to engage closely with our stakeholders in the task of describing what the stadium needs to deliver. Over three months we talked in detail to the people who had an interest in the new stadium to understand their requirements and aspirations. Part of the consultation involved the formation of a fan forum. This group of people from all sports codes and a range of clubs told us what they liked and didn’t like about the current stadium and what was important to them in a new venue. Their contribution was invaluable.

As we look forward to revealing the plans for the new stadium we have also begun the closure of Pirtek Stadium. We acknowledge the disruption to our tenants, particularly the Parramatta Eels who have played at the venue each season since it was opened in 1986. The Western Sydney Wanderers have also put their stamp on the stadium during the last four years and made the Stadium their home. We thank the Clubs for recognising the long-term benefits a new stadium will bring and we look forward to welcoming both Clubs back in 2019.

The closure of Pirtek Stadium also means change for our staff. I thank them and all the Venues NSW staff for another year of hard work and excellent results. I would particularly like to acknowledge Stuart Barnes, General Manager of the WIN Sports and Entertainment Centres and David Hinkley, Grounds Supervisor at Pirtek Stadium as they leave Venues NSW after 18 and 26 years of continuous service. And finally, thank you to John Quayle and the members of the Board for their guidance and support.

Janett Milligan

Executive Director’s Report

The new stadium is one part of a new landscape in NSW.

This year we have divided our time between ensuring that our venues are busy and well-run and planning for the future.



Highlights

In May, the Harvey Norman Australian Jillaroos took on the New Zealand Kiwi Ferns in the curtain-raiser to the NRL

Trans-Tasman Test match between Australia and New Zealand at Hunter Stadium. It was Mal Meninga’s first match as coach of

the Kangaroos. The match attracted over 24 thousand fans.

Pirtek Stadium hosted the Pacific Double Header featuring Samoa, Tonga, Fiji and PNG. The Junior Kangaroos

played the Junior Kiwis in the curtain-raiser.

KISS played at NEC as part of their 40th anniversary tour in October.

NSW Swifts took on the West Coast Fever in the thrilling Round 11 of the 2016 ANZ Netball Championships in May,

with only one goal separating the two sides.

The Wiggles Big Show that played 2 performances to 6000 people in Wollongong and in Newcastle.

Cirque Du Soliel brought ‘Quidam’ to Wollongong and to Newcastle with 20,000 people attending the

shows over Christmas/New Year in each venue.

CrossFit Australian Championships in May 2016 saw 12,000 attending over the 3 days.



VENUES NSW

Portfolio

Hunter StadiumHunter Stadium is a multi-purpose outdoor stadium located in Newcastle with a capacity of 33,000. It was opened in 1970 with major grandstand additions in 2005 and 2011, and a pitch upgrade in 2014. The rectangular field can accommodate international standard rugby league, rugby union and football and is a multi-sport event venue.

In recent years it has hosted the thrills and spills of the Nitro Circus, was proud to host the Special Olympics Opening Ceremony, and held four 2015 AFC Asian Cup matches including the Socceroos winning semi-final match against UAE which took them into the Grand Final. This year it showcased international rugby league at its best with the Harvey Norman Australian Jillaroos taking on the New Zealand Kiwi Ferns in the curtain-raiser to Mal Meninga’s first game in charge of the Kangaroos in the NRL Trans-Tasman Test match.

Hunter Stadium has been the long-term home to the region’s two flagship sporting franchises; the Newcastle Knights (NRL) and the Newcastle Jets (A-League).

The stadium has a function centre that can accommodate social and business events, from small events to groups of up to 700 people. The stadium is the centrepiece of the sports precinct that includes other sporting assets such as the Newcastle International Hockey Centre and the Newcastle International Paceway.

Newcastle Entertainment Centre and ShowgroundThe Newcastle Entertainment Centre and Showgrounds are managed by AEG Ogden on behalf of Venues NSW. Using the AEG Ogden Arena Network, the Centre collaborates with other venues including Qudos Bank Arena, Brisbane Entertainment Centre and Perth Arena in researching and attracting touring events.

The Entertainment Centre’s flexible configurations allow it to play host to a variety of events including concerts, sports, exhibitions and conferences. It has a maximum capacity of 7,500. The Showground features a show ring with seating for 3,000 people. It is the home of the annual Newcastle Agricultural Show, the popular Newcastle City Farmers’ Market and is also used for a range of exhibitions, sales and shows.

This year NEC has hosted KISS, the Ice Age Disney on Ice show, The Wiggles, as well as Cirque du Soliel and the adrenalin cowboys in the Professional Bull Riders event. It remains home to the Newcastle Roller Derby bouts, and the popular Caravan, Camping and Holiday Exhibition. It also accommodated netball fans, who saw the NSW Swifts take on the West Coast Fever in the thrilling Round 11 of the 2016 ANZ Netball Championships, with only one goal separating the two sides.

WIN Sports Stadium and Entertainment CentresThe WIN Sports and Entertainment Centres (WSEC) includes WIN Stadium and the WIN Entertainment Centre (WEC) in Wollongong.

WIN Stadium has a capacity of 23,000 and the field can accommodate international standard rugby league, rugby union and football. It is the home ground of the Wollongong Wolves Football Club who compete in football’s National Premier League (NSW). The St George Illawarra Dragons play four games at WIN Stadium when competing in the National Rugby League, the Holden Cup and NSW Cup. Their feeder club, the Illawara Steelers field Junior Representative teams and play their home games at WIN Stadium.

It has three grandstands to the north, south and west, with the eastern hill providing an uncovered grass seating area. The Stadium has a function centre that regularly hosts social and business events.

The WEC is a multi-purpose arena. The main auditorium has a maximum capacity of 6,000 with flexible configurations that can host various events, including concerts, dinners, seminars, conferences, school formals and exhibitions. The WEC is the ‘home-court’ for the Illawarra Hawks National Basketball League (NBL) team.

Venues NSW manages a portfolio of sporting and entertainment assets valued at $273M which are used for a range of commercial and community purposes. It raises revenue through hiring the venues to sporting organisations and entertainment promoters and by commercialising the venues through advertising, leasing, sponsorships and supply arrangements. Governance is centralised.

Pirtek Stadium Pirtek Stadium is a multi-purpose outdoor stadium located in Parramatta with a capacity of 20,700 and hosts a variety of sporting, entertainment, corporate, cultural and community events. A naming rights partnership was signed with Pirtek Fluid Solutions in 2013 and the venue is currently known as Pirtek Stadium.

The stadium surface is ideal for the high performance rectangular sporting codes of rugby league, rugby union and football. It has been the home ground of the Parramatta Eels (NRL) and the Western Sydney Wanderers (A-League).

The venue has a corporate function facility and parking facilities for over 360 cars which operates as a commercial car park during non-event days.

A new Western Sydney Stadium will replace the current stadium with demolition and construction due to commence in 2017. The new 30,000 seat rectangular stadium will be open for a range of sports and other events in 2019.



A year in reviewWho We Are

Venues NSW is part of the Office of Sport within the Department of Premier and Cabinet. The Minister is the Hon. Stuart Ayres MP.

The venues are governed and managed in one portfolio thereby providing the opportunity for securing better community and commercial outcomes and benefits by improving community access to and participation in sporting and cultural events, increasing tourism and events in regional communities, providing better access for disadvantaged groups, delivering more efficient services to the community and better value for government investment.

Venues NSW has been operating as a Public Trading Enterprise governed by a Board for four years. The Board is required to set the strategic direction for Venues NSW, which includes overseeing the development of and approving the Business Plan. It receives advice on the needs of the communities it serves from three Local Venues Councils based in each region. Section 21 of the Sporting Venues Authority Act (2008) outlines the principal functions which include maintenance of land, managing and establishing facilities for sporting, recreational or community activities and the provision of commercial and retail activities and facilities.

The assets under management are valued at over $273 million and are located in Sydney, Newcastle and Wollongong. Venues NSW main purpose is to ‘effectively and efficiently manage Government owned land and sporting and entertainment infrastructure for the benefit of the people of New South Wales.

Delivering the Stadia StrategyVenues NSW has an important role to play in delivering modern stadia and facilities of varying sizes to meet sporting and major event needs as described in the NSW Stadia Strategy (2012). The six key recommendations that came out of the strategy targeted investment into stadia that can act as hubs by being multi-use with multi-tenants, aimed at retaining and winning new content and therefore have high utilisation. They must also have good quality services and facilities, transport connectivity and an entertainment precinct. Streamlined governance across assets is critical.

The first project in the Government’s Rebuilding the Major Stadia Network in NSW is to construct a new rectangular stadium in Western Sydney with a capacity of 30,000 seats to host a variety of sports including rugby league, rugby union, football and other events including concerts. The new Western Sydney Stadium will be the first in a network of contemporary venues that will enable NSW to maintain competitiveness in the national and international sporting

and event market, and deliver major new sporting infrastructure for Western Sydney. It will replace Parramatta Stadium, currently known as Pirtek Stadium, built in 1986.

The new infrastructure will improve the ‘liveability’ of this vibrant and growing area, increasing its ability to attract and retain businesses, industries and populations. The larger, modernised, improved stadium will be able to increase its event calendar and capacity, implying that it will be able to exceed its current $27 million annual contribution to the local economy when completed in 2019.

Planning and procurement is underway. Construction is due to commence in 2017, with completion in 2019.

The new stadium will continue to be managed in a way that strikes a balance between commercial, community and service delivery objectives in managing Government-owned land, sporting and entertainment infrastructure for the benefit of the people of New South Wales.

NSW PrioritiesNSW has 30 ‘State Priorities’ including 12 ‘Premier Priorities’ to grow the economy, deliver infrastructure, protect the vulnerable, and improve health, education and public services. Each is measured against the best available indicators of economic growth, infrastructure delivery, service provision and other measures of community wellbeing and safety across NSW.

Venues NSW specifically contributes to the following key priorities:

Building infrastructure Key infrastructure projects are delivered on time and on budget across the State.

Tackling childhood obesity Reduce overweight and obesity rates of children by 5% over 10 years.

Increasing cultural participation Increase attendance at cultural venues and events in NSW by 15% by 2019.

Business ObjectivesVenues NSW is guided by four business objectives:

1. Utilisation Maximise the utilisation of assets

2. Sustainability Improve financial performance

3. Community Maintain and improve services to the community

4. Operations Ensure assets are operated effectively and efficiently and that Venues NSW is a cohesive and collaborative organisation

Utilisation

Comm

unity

Sustainabilit

y

Operatio

ns

In each action and strategy is therefore underpinned by the objectives to maximise utilisation, improve financial performance through sustainability, maintain and improve services to the community, whilst operating the assets effectively and efficiently. VNSW is governed in a manner to ensure that it is a cohesive and collaborative organisation.



Corporate governanceSection 21 of the Act outlines the principal functions of Venues NSW, including maintenance of land, managing and establishing facilities for sporting, recreational or community activities and the provision of commercial and retail activities and facilities.

Venues NSW is governed by a Board, which receives advice on the needs of the communities it serves from three Local Venues Councils. The chair of each Local Venues Council also sits on the Board of Venues NSW.

The members of the Venues NSW Board during the period were:

John Quayle Appointed 2 March 2012 Chair, Venues NSW

John is an experienced sports administrator with an extensive background in the club industry, sports and venue management. He was Chief Executive of the Australian and NSW Rugby League and General Manager of Venues and Precincts for the Sydney Olympic Games. He was a founding member of MI Associates and was a consultant for the 2004 Athens Olympics, 2006 Asian Games and 2007 Pan American Games.

John Dorahy Appointed 2 March 2012

John is the Sales Director, Australia and New Zealand for an international company in the payment solutions industry. John studied accounting and business management and holds qualifications as a Company Director. He is a former international rugby league player, coach and manager. John is an elected Councillor on Wollongong City Council sitting on the Corporate Governance committee since 2011. John is also a Board Member on several Not-For-Profit organisations.

Craig Gallagher Appointed 2 March 2012 Chair, Western Sydney Local Venues Council

Craig is the former Chair of the Parramatta Stadium Trust. He was also a trustee of the State Sports Centre for 15 years. Craig served on both trusts as Chair of the finance and audit committee for many years. Craig is a consultant at Hunt & Hunt Lawyers North Ryde and practices in the property, estate planning, commercial law and commercial litigation areas and has acted for many clients within the Parramatta Local Council area for a period of almost 33 years. Craig is a long serving member of Epping Rotary and a Director of Bendigo Community Bank North Epping. He is also a Director of the Centre for Disability Studies at the University of Sydney.

Matt Miller Appointed 2 March 2016

Matt is Chief Executive of NSW Office of Sport where he leads a range of sports-related services and facilities across the State. As the Agency Head of the OoS, Matt’s role also includes collaborative leadership and support for the NSW Institute of Sport, Sydney Olympic Park Authority and Venues NSW. Prior to this current position, Matt has held a number of other executive leadership roles within government, including CEO of the Australian Sports Commission, Qld Commissioner for Fair Trading and CEO of the Australian Child Support Agency.

Janett Milligan Appointed 2 March 2012

Janett has held senior executive positions in the NSW public sector for nearly 20 years both in specialist social policy areas and in large-scale operational roles in human services and sport, recreation and culture. She has a Bachelor of Social Science (Hons), a Master of Business Administration and holds qualifications as a Company Director. Janett is the Executive Director of Venues NSW and is a member of the Western Sydney Parklands Trust Board.

Vicki Tiegs Appointed 2 March 2012 Chair, Illawarra Local Venues Council

Vicki was a member of the former Illawarra Venues Authority and Wollongong Sportsground Trust. She has held sport and tourism positions including Director and Life Member of Destination Wollongong and Director of the Illawarra Academy of Sport. Vicki has also worked closely with the National Breast Cancer Foundation, Legacy, Farmhand and the Australian Red Cross. She is currently a partner in Waples Marketing Group and Bluejuice Events and is a former media executive with a background in marketing.

Glenn Turner Appointed 2 March 2012 Chair, Hunter Local Venues Council

Glenn was the Chair of the former Hunter Region Sporting Venues Authority. He has a long experience as Chair and CEO in many industries including as current Chair of the Hunter Medical Research Institute. Glenn had a thirty-year career at senior executive level in the mining services, manufacturing, engineering and construction sectors in Australia, as well as USA, China, South America, South Africa and India. He occupies non-executive roles in public and private companies in a variety of industry and services sectors.

MINISTERHUNTER LOCAL VENUES COUNCIL

LLAWARRA LOCAL VENUES COUNCIL VENUES NSW BOARD

WESTERN SYDNEY LOCAL VENUES COUNCIL EXECUTIVE DIRECTOR OFFICE OF SPORT

Board Meeting Attendance

There were 6 Board Meetings held during the period:

Member

Board Meetings Attended

John Quayle 6 of 6

John Dorahy 4 of 6

Craig Gallagher 5 of 6

Matt Miller 1 of 1*

Member

Board Meetings Attended

Janett Milligan 6 of 6

Vicki Tiegs 5 of 6

Glenn Turner 5 of 6

* Appointed to VNSW Board in March 2016.

Venues NSW was established on 2 March 2012, following amendments to the Sporting Venues Authorities Act 2008 (‘the Act’), to consolidate the responsibilities and operations of three previously separate statutory authorities.

L - R: Glenn Turner, Matt Miller, Janett Milligan, John Quayle, Craig Gallagher. Absent: Vicki Tieggs, John Dorahy



A total of 22 NRL matches, 30 A-League matches and 16 NBL games and one Netball

ANZ Championship game were played at our venues

to over 620,000 people. Performance

EventsMore than 1.2 million people attending events at our sporting and entertainment venues.

The table below provides an overview of the events at our venues:

HUNTER ILLAWARRA PARRAMATTA

HUNTER STADIUM

NEWCASTLE ENTERTAINMENT

CENTRE & SHOWGROUNDWIN

ENTERTAINMENT CENTREWIN

STADIUMPIRTEK

STADIUM

» Newcastle Knights (10 events)

» Newcastle Jets (14 events)

» NRL Trans-Tasman Test with Australian Jillaroos versus New Zealand Ferns in the curtain raiser

» More than 2000 local sportspeople in local sport finals

» Night attack – True Grit event

» iStadium – iRun event

» Farmer’s Markets » Exhibitions » Christmas parties » Year 12 formals » Functions and

conferences

» PBR Bull Riding » Monster Trucks » Roller Derby » NSW Swifts versus West

Coast Fever Netball » KISS » Mrs Brown’s boys » The Wiggles » Star Struck » Disney Ice Age Live » Quidam –

Cirque du Soliel » Variety Xmas » IGA Newcastle Show » Newcastle

Bridal Show » Food & Wine Show » Health &

Harmony Expo » Caravan, Camping

and Holiday Expo » Newcastle

Home Show » Stiches & Craft Show » Westpac

Helicopter Ball » St Francis Xavier School

Formal » Farmers Markets

(48 events)

» Wollongong Hawks (15 events)

» Mary Poppins » Southern Stars » Cold Chisel » Mrs Brown’s Boys » Wakakirri » Judo Oceania

Championships » KidzWish Concert

& Charity Ball » The Wiggles » The Searchers » 10CC » Quidam –

Cirque du Soliel » Frank Sinatra Tribute » Reebok CrossFit Games

Pacific » Judo National

Championships » World Cup Cheer and

Dance – Nationals » Illawarra International

Women’s Day Luncheon » Functions &

Conferences

» St George/Illawarra Dragons (4 events)

» Wollongong Wolves State League Football (10 events)

» South Coast football final series (2 events)

» Sydney FC Trial » Illawarra Cutters

(4 events) » Illawarra Steelers

(5 events) » Illawarra Coal Rugby

League finals Series (5 events)

» Westfield Matildas vs Illawarra Utd Stingrays football

» Run Wollongong » Functions &

Conferences

» Parramatta Eels (8 events)

» Western Sydney Wanderers A-League (14 events)

» Western Sydney Wanderers A-league semi-final (1)

» Greater Western Sydney Rams

» Randwick District Rugby Union

» Pacific Islands Double Header International Rugby League featuring Samoa, Tonga, Fiji and PNG

» Over 100 Community Fan Days & Sport Clinics

» Functions & Conferences

124,547 66,205

307,143 414,115 190,752 312,206

Utilisation Maximise the utilisation of the assets.

BREAKDOWN OF TYPE OF ATTENDANCE ACROSS THE VENUES

n International events n Exhibitionsn Local sport n National sportn Farmers markets n Othern Community events n Functionsn Show and concerts



International Sport With international standard facilities, Venues NSW aims to deliver high quality international sporting events in regional locations.

International sport and events have returned to our venues this year with 24,000 watching the Kangaroos take on the New Zealanders in Trans-Tasman Rugby League at Hunter Stadium, the Pacific Nations NRL Double Header a Pirtek stadium and the Matildas Women’s Football team at Wollongong Stadium.

Other SportThe Newcastle Roller Derby emerging sport has made Newcastle Entertainment Centre its home. It has hosted five roller derby bouts and has seen the sport grow year on year.

Newcastle also hosted the ANZ Championship NSW Swifts versus the West Coast Fever in a thrilling match where the result went down to the very last shot.

Hunter Stadium hosted the energetic and exciting True Grit Night Attack Obstacle Racing course and the iStadium event for over 2000 runners.

The Newcastle International Hockey Centre hosted the 2016 World Grand Masters Association (WGMA) Tournament. It was one of the largest ever held, with more than 800 players, 25 umpires, 25 officials, 30 medical personnel, 43 managers, up to 700 partners and thousands of proud supporters from over 16 countries. Competitions in the men’s 60+, 65+ and 70+ age groups for both the official FIH WGMA World Cup and the WGMA Tournament Trophy for National Second teams and affiliated international teams were held on site.

Pirtek Stadium hosted games in rugby union for Greater Western Sydney Rams and Randwick District Rugby Union Club.

The Oceania Judo Championships returned to WIN Entertainment Centre. These Championships are an Olympic qualifying tournament featuring Judo competitors from around the world as they prepared for the Rio Olympics.

Over 12,000 people came to support the very best Cross-Fit athletes competing at the WIN Entertainment Centre. More than 800 athletes from the Pacific Region stayed in Wollongong for the week and the city impressed them with its willingness to be ‘Cross-Fit ready’.

WIN Stadium once again hosted all the Illawarra Finals in rectangular game codes (Rugby League, Rugby Union and Football). Other games hosted included the Steelers Junior Grades Rugby League matches and the Cutters NSW Rugby League Cup games.

Key TenantsAnchor tenants are a key component in our commitment to increasing our service and content in each of the venues. In the National Rugby League, the St George Illawarra Dragons play four of their home games at WIN Stadium, with the Parramatta Eels at home in Pirtek Stadium and Newcastle Knights at Hunter Stadium. We also host the Illawarra Steelers. Almost 270,000 rugby league fans have been through the gates at the venues.

Just over 300,000 football fans have watched A-league games in our stadiums.

Our venues hosted A-league home games for the Newcastle Jets, Sydney Football Club and Western Sydney Wanderers, and also the Wollongong Wolves Football Club who compete in football’s National Premier League. The Western Sydney Wanderers semi-final against Brisbane Roar at Pirtek Stadium drew the biggest crowd of the year. Just over 300,000 football fans have watched A-league games in our stadiums.

The Illawarra Hawks National Basketball League (NBL) team played 16 games at WIN Entertainment Centre, and ANZ Netball Championships visited Newcastle Entertainment Centre, where just over 4,000 fans saw the NSW Swifts narrowly go down to the West Coast Firebirds in Newcastle.




Concerts and Performing ArtsOur arenas continue to deliver a diverse program of concerts and events in both Newcastle and Wollongong.

The KISS 40th Anniversary tour came to Newcastle Entertainment Centre having already played the US and Japan. The NEC also hosted the Ice Age Disney on Ice show as well as Quidam by Cirque du Soliel, The Wiggles, plus the adrenalin cowboys of PBR Bull Riding. The Mrs Brown’s Boys comedy shows were sold out.

Newcastle welcomed back eight 600-tonne monster trucks for the Indoor World Monster Truck finals in April, that featured international drivers like former Crusty Demons legend Matt Schubring.

The Newcastle Star Struck event played to over 12,000. Star Struck showcases creative and performing arts throughout the Hunter and Central Coast regions by producing a high quality professionally staged regional event with a cast of over 3,500 public school students.

At the WIN Entertainment Centre, the Wollongong Southern Stars Show has become a popular event and once again this Illawarra Schools Spectacular event didn’t disappoint. It featured 3,500 students and teachers who presented the best in performing

arts from Illawarra state schools to audiences of over 12,000 in four performances. The venue also hosted the World Cup Cheer and Dance Nationals, and the locally produced and performed Mary Poppins Musical. Other highlights included Cirque Du Soliel’s ‘Quidam’ with 20,000 people attending the 11 shows over Christmas/New Year, the ‘Good Mourning Mrs. Brown’ show that played three shows to 9,397 patrons, and the family favourite Wiggles Show that played 2 performances to 6,000 people.

Conferences, Exhibitions and other Events The conference, exhibition and function market plays an important role in making sure the venues are well utlilised.

The Newcastle Entertainment Centre and Showground continued with its successful program of exhibitions including the Newcastle Food and Wine Expo, Antique Fair, Stitches and Craft Show, the Herald Newcastle Home Show, and the Caravan Camping and Holiday Expo. The Newcastle Bridal Exhibition came to the venue for the first time this year and will be back again in 2016-17. The Annual Helicopter Ball held at the Newcastle Entertainment Centre continues to be a highlight of the event calendar raising much needed funds for the Westpac Rescue Helicopter Service. Newcastle also hosted several high profile functions including the St Francis Xavier School Formal, AP Eagers Christmas Dinner function and the FIH Hockey World Grand Masters tournament dinner.

The Newcastle Regional Show attracted over 38,000 people at the 3-day event this year. It continues the tradition of the Show with competitions and displays including horses, cattle, other animals, poultry, produce, cookery, arts and crafts and incorporating specialty amusements and a large variety of show bags.

A thriving Newcastle Farmers’ Market was held regularly at the Newcastle Showground with several markets also taking place at Hunter Stadium. These successful markets are a draw card for visitors throughout the year.

The Wollongong WIN Entertainment Centre hosted the Illawarra International Women’s Day luncheon for more than 750 guests, as well as the Wollongong Bridal Expo and the KidzWish Charity Ball.


WIN Entertainment Centre hosted the Illawarra International

Women’s Day lunch for more than 750 guests.

WIN Entertainment Centre and Newcastle Entertainment Centre

staged concerts and shows to audiences of over 140,000

throughout the period.



For the year ended 30 June 2016, Venues NSW recorded a loss of $21.190 million which includes depreciation of $24.913 million. The depreciation of the assets of Pirtek Stadium has been accelerated due to planned demolition of the current stadium and the construction of a new stadium. The impact in 2015-16 is $16.2 million and in 2016-17 will be $24.3 million. Before depreciation, the operating result for day-to-day operations was $788,000.

Total assets of $300.810 million included $273.186 million in property, plant and equipment. A $2.48 million program of major and minor capital works was completed during the year.

The Venues NSW Board continues to work to improve financial performance, through securing additional content and events, operational efficiencies and realising the commercial potential of the venues through sponsorship, advertising and the use of land and infrastructure.

With significant competition for content, our venues need to be well positioned to compete for events against other venues in NSW as well as in other States. The market expectation is for modern facilities providing better services at lower prices. Attendances are also facing pressure from increased competition with the home viewer experience given the quality of broadcast and general economic factors in an industry reliant on discretionary consumer spending.

Priority has been given to contracting anchor tenants to the stadia and acquiring new content for stadia and entertainment centres. Many of the concerts, events and exhibitions such as PBR Bull Riding, The Wiggles Show, Disney on Ice and Caravan, Camping and Holiday Show at Newcastle, and Southern Stars School Spectacular and the CrossFit championships in Wollongong are returning customers year on year. This in turn, increases the opportunity to commercialise the venues through avenues such as naming rights, advertising and supply rights.

On the expenditure side, while event costs generally move in line with event revenue, overhead costs have been increasingly scrutinised and action taken to reduce costs.

Securing financial sustainability in the long-term remains a key issue. While significant progress has been made it is recognised that there are still further opportunities which are being explored.

Sustainability Securing the organisation’s financial future.

Commercial Leases and LicencesThe precincts owned and managed by Venues NSW are diverse and include property leased or licensed commercially for retail, hospitality, players’ facilities, administration, car parking and other purposes. In 2015-16, 20 commercial leases or licences provided $0.873 million in revenue, which is approximately 3.5% of total revenue.

WIN Sports and Entertainment Centres (WSEC) lease space to two food outlets and a licensed bar and restaurant.

Pirtek Stadium hires car parking.

While the majority of these leases are operated under commercial terms, there are a number that are non-commercial in nature due to Venues NSW community service obligations. These include leases to sporting bodies in the Hunter Stadium precinct.

CateringCatering operations are a key service to venue hirers and patrons and an important source of revenue for Venues NSW contributing $3.554 million or 25% of event related revenue. The majority of catering revenue is generated on event days, however each venue also has function facilities which host a wide variety of business, community and social functions.

Large scale conferences, exhibitions and dinners continue to be an important part of the business in Newcastle and Wollongong hosted in both the multi-purpose Entertainment Centres and in the function centres.

EXPENDITURE $000s REVENUE $000s

n Personnel services n Event costsn Energy and water n Maintenancen Depreciation n Insurancen Fees for service n Other

n Event revenue n Investmentn Leasing and rentals n Grantsn Naming & exclusivity

rights, and advertising

1,498

14,268

4,99624,913

2,186

1,471

6,750

3,650562

5,870

1.311242

1,360

Venues NSW is a Public Trading Enterprise and is subject to the NSW Government’s Commercial Policy Framework. The framework ensures that government businesses operate with the disciplines and incentives typical of commercial practices.



Venues NSW contribute to the communities of the Hunter, Western Sydney and the Illawarra by delivering a range of sporting and entertainment events that bring people together as well as enhance economic wellbeing through flow-on effects to local employment, local businesses and the visitor economy.

Community Engaging with the community and delivering great service.

Engaging with the Community through the Local Venues Council

Venues NSW maintains a strong connection with the places and communities where it operates.

The three Local Venues Councils provide advice to the Venues NSW Board on the needs of their local communities with feedback on Venues NSW plans and activities.

Each Local Venues Council Chair is a member of the Venues NSW Board. Throughout the year Local Venues Councils were active in Western Sydney, the Hunter and Illawarra regions.

The Local Venues Councils have provided an important and valuable avenue for local communities to continue to be represented and for advice to flow through to the Venues NSW Board on regional activities, priorities and needs.

The Illawarra Local Venues Council have provided advice on the Wollongong Entertainment Centre Convention project, The ‘Future of Football’ at WIN Stadium and maintained relationships with the St George Illawarra Dragons and Football South Coast.

The Illawarra Local Venues Council relates to stakeholders in the region through separate meetings and input into the regular WSEC Stakeholders Meetings.

Details of Local Venues Council Members and meetings are provided in Appendix 16.

Stadium and Entertainment Centre infrastructure serves to improve the liveability of each area, increasing its ability to attract and retain businesses, industries and populations.

Venues NSW aims to deliver great service to the 1.2 million people who come to events, performances and functions each year at the venues. High levels of service are provided to guests and hirers alike. Venues NSW is committed to continuous improvement and innovation in the venues. Emerging sports and community events continue to be staged at the venues.

The Hunter community embraced the NRL Trans-Tasman Test in May at Hunter Stadium which saw the Australian Jillaroos take on the New Zealand Kiwi Ferns in the curtain raiser to the NRL men’s representative round, serving to promote and support the growth of women’s team sport.

A number of community sport clinics operated by tenants continue to be popular, thereby affording a great opportunity to connect and engage with local communities. Significantly, Western Sydney Wanderers held over 50 clinics at Pirtek Stadium in the period. Newcastle Entertainment Centre continues to host the Special Children’s Christmas Party and the annual Westpac Rescue Helicopter Ball.

In Wollongong, the Entertainment Centre again hosted a number of events with concessional venue hire arrangements including supporting local charity Kidzwish Concert and Ball, who care for sick and disadvantaged children in the Illawarra. Other community supported events included the Cops For Convoy, Run Wollongong and Camp Quality Function.

Customer surveys undertaken indicated strong levels of satisfaction with the venues’ facilities and customer service. Social media platforms have engaged our customers and guests giving them new and immediate ways to promote events, give praise and provide feedback where we might improve. Individual websites for each venue linked from the Venues NSW host site ensures that access to up to date event and venue information from computers and mobile devices alike has provided a more seamless experience for all our customers.

More than 38,000 locals visited the Newcastle Show

in March.



Just over $1 million has been spent on the Western Sydney Stadium project preparing for this State Significant Development. This work is being delivered by Projects NSW, the specialist project delivery unit of Infrastructure NSW, in close partnership with Venues NSW.

Planning approval will be sought in two stages; stage one being the demolition work and concept proposal, including the Environmental Impact Statement with opportunities for public consultation and feedback; and stage two the design and construction of the facility.

The Venues NSW Staff Award (2015) has brought consistency of working conditions across the venues and has made it possible to reduce the number of fixed term and casual engagements thereby giving staff more security. Staff mobility across business units has been used effectively, and we have benefited from knowledge sharing and cross-venue staff support.

The benefits of consolidation continue to be experienced with new multi-year agreements for leasing, licencing, advertising and sponsorship continuing across the venues. This was 15% of revenue or $3.65 million in 2015-16.

The Business Services Group of the Office of Sport continues to supply corporate services including transactional accounting, information technology, human resources and payroll.

Operational Caring for the assets and working as one organisation.

Capital Works Program

Capital Works valued at $2.48 million were undertaken during the period. Improvements include an upgrade to the irrigation system and the Northern Grandstand Roof Restoration project at WIN Stadium; repairs to the Eastern façade at the Wollongong Entertainment Centre; a new CCTV and PA system at Newcastle Entertainment Centre, and an ice making machine at Hunter Stadium.

Capital works valued at $2.48 million were undertaken

during the year.



INDEPENDENT AUDITOR’S REPORT

Venues NSW

To Members of the New South Wales Parliament

Opinion

I have audited the accompanying financial statements of Venues NSW (the Authority), which comprise the statement of financial position as at 30 June 2016, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information of the Authority and the consolidated entity. The consolidated entity comprises the Authority and the entities it controlled at the year’s end or from time to time during the financial year.

In my opinion, the financial statements:

» give a true and fair view of the financial position of the Authority and the consolidated entity as at 30 June 2016, and of their financial performance and cash flows for the year then ended in accordance with Australian Accounting Standards

» are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and the Public Finance and Audit Regulation 2015

My opinion should be read in conjunction with the rest of this report.

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report.

I am independent of the Authority and the consolidated entity in accordance with the auditor independence requirements of:

» Australian Auditing Standards

» ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for Professional Accountants’ (the Code).

I have also fulfilled my other ethical responsibilities in accordance with the Code.

The PF&A Act further promotes independence by ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by:

» providing that only Parliament, and not the executive government, can remove an Auditor-General

» mandating the Auditor-General as auditor of public sector agencies, but precluding the provision of non-audit services.

» I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

The Board’s Responsibility for the Financial Statements

The members of the Board are responsible for preparing financial statements that give a true and fair view in accordance with Australian Accounting Standards and the PF&A Act, and for such internal control as the members of the Board determine is necessary to enable the preparation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the members of the Board must assess the ability of the Authority and the consolidated entity to continue as a going concern unless operations will be dissolved by an Act of Parliament or otherwise cease. The assessment must include, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting.

Auditor’s Responsibility for the Audit of the Financial Statements

My objectives are to:

» obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and

» issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in accordance with Australian Auditing Standards will always detect material misstatements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions users take based on the financial statements.

A further description of my responsibilities for the audit of the financial statements is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/Home.aspx.

The description forms part of my auditor’s report.

My opinion does not provide assurance:

» that the Authority or the consolidated entity carried out their activities effectively, efficiently and economically

» about the security and controls over the electronic publication of the audited financial statements on any website where they may be presented.

Peter Coulogeorgiou Director, Financial Audit Services

19 September 2016 SYDNEY



Statement by Members of the Board of Management

Pursuant to Section 41C(1B) of the Public Finance and Audit Act 1983, we declare on behalf of Venues NSW that:

(i) in our opinion the financial statements of Venues NSW for the year ended 30 June 2016 have been prepared in accordance with the applicable Australian Accounting Standards (which includes Australian Accounting Interpretations), the requirements of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2015 and the Treasurer’s Directions.

(ii) the financial statements exhibit a true and fair view of the financial position as at 30 June 2016 and financial performance for the year then ended.

(iii) there are no circumstances which would render any particulars in the financial statements to be misleading or inaccurate.

Mr John Quayle Ms Janett Milligan Chairperson Board Member and Executive Director

15 September 2016 15 September 2016

VENUES NSWSTATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2016

NOTES

2016 CONSOLIDATED

$’000

2016 PARENT

$’000

2015 CONSOLIDATED

$’000

2015 PARENT

$’000

Expenses excluding losses

Operating expenses -

Personnel services 2(a) 5,870 5,870 5,481 5,481

Event related costs 2(b) 6,750 6,750 8,423 8,423

Other operating expenses 2(c) 6,570 6,570 6,279 6,279

Depreciation 2(d) 24,913 24,913 9,299 9,299

Total Expenses excluding losses 44,103 44,103 29,482 29,482

Revenue

Event related revenue 3(a) 14,268 14,268 15,749 15,749

Investment revenue 3(b) 562 562 811 811

Grants and contributions 3(c) 4,995 4,995 1,108 1,108

Other revenue 3(d) 5,148 5,148 4,578 4,578

Total Revenue 24,973 24,973 22,246 22,246

Gain/(loss) on disposal 4 - - (1,883) (1,883)

Other gains/(losses) 5 (395) (395) - -

Net result (19,525) (19,525) (9,119) (9,119)

Other comprehensive income

Net increase / (decrease) in property, plant and equipment revaluation surplus (1,665) (1,665) 20,878 20,878

Total other comprehensive income (1,665) (1,665) 20,878 20,878

TOTAL COMPREHENSIVE INCOME (21,190) (21,190) 11,759 11,759

The accompanying notes form part of these financial statements.

VENUES NSW

Financial StatementsFOR THE YEAR ENDED 30 JUNE 2016



VENUES NSWSTATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2016

NOTES

2016 CONSOLIDATED

$’000

2016 PARENT

$’000

2015 CONSOLIDATED

$’000

2015 PARENT

$’000

ASSETS

Current Assets

Cash and cash equivalents 6 25,622 25,622 21,801 21,801

Receivables 7 1,936 1,961 2,032 2,057

Inventories 8 66 66 75 75

Total Current Assets 27,624 27,649 23,908 23,933

Non-Current Assets

Property, plant and equipment 9 & 10

Land and buildings 270,751 270,751 295,155 295,155

Plant and equipment 2,435 2,435 2,156 2,156

Total property, plant and equipment 273,186 273,186 297,311 297,311

Total Non-Current Assets 273,186 273,186 297,311 297,311

Total Assets 300,810 300,835 321,219 321,244

LIABILITIES

Current Liabilities

Payables 11 8,437 8,437 6,614 6,614

Provisions 12 921 921 847 847

Total Current Liabilities 9,358 9,358 7,461 7,461

Non-Current Liabilities

Payables 11 1,559 1,559 2,662 2,662

Provisions 12 48 48 61 61

Total Non-Current Liabilities 1,607 1,607 2,723 2,723

Total Liabilities 10,965 10,965 10,184 10,184

Net Assets 289,845 289,870 311,035 311,060

EQUITY

Reserves 19,213 19,213 20,878 20,878

Accumulated funds 270,632 270,657 290,157 290,182

Total Equity 289,845 289,870 311,035 311,060


2016 2015

CONSOLIDATED PARENT CONSOLIDATED PARENT

ACCUMULATED

FUNDS $’000

ASSET REVALUATION

SURPLUS $’000

TOTAL$’000

ACCUMULATED

FUNDS $’000

ASSET REVALUATION

SURPLUS $’000

TOTAL$’000

ACCUMULATED

FUNDS $’000

ASSET REVALUATION

SURPLUS $’000

TOTAL$’000

ACCUMULATED

FUNDS $’000

ASSET REVALUATION

SURPLUS $’000

TOTAL$’000

Balance at 1 July 2015 290,157 20,878 311,035 290,182 20,878 311,060 299,276 - 299,276 299,301 - 299,301

Restated total equity at 1 July 2015 290,157 20,878 311,035 290,182 20,878 311,060 299,276 - 299,276 299,301 - 299,301

Net result for the period (19,525) - (19,525) (19,525) - (19,525) (9,119) - (9,119) (9,119) - (9,119)

Other comprehensive income: Net increase / (decrease) in property, plant and equipment - (1,665) (1,665) - (1,665) (1,665) - 20,878 20,878 - 20,878 20,878

Total other comprehensive income - (1,665) (1,665) - (1,665) (1,665) - 20,878 20,878 - 20,878 20,878

Total comprehensive income for the period (19,525) (1,665) (21,190) (19,525) (1,665) (21,190) (9,119) 20,878 11,759 (9,119) 20,878 11,759

Balance at 30 June 2016 270,632 19,213 289,845 270,657 19,213 289,870 290,157 20,878 311,035 290,182 20,878 311,060


VENUES NSWSTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2016



VENUES NSWSTATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2016

NOTES

2016 CONSOLIDATED

$’000

2016 PARENT

$’000

2015 CONSOLIDATED

$’000

2015 PARENT

$’000

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Operating expenses -

Personnel services 6,399 6,399 6,150 6,150

Event related payments 7,422 7,422 9,567 9,567

Other operating payments 5,430 5,430 7,306 7,306

Total Payments 19,251 19,251 23,023 23,023

Receipts

Event related receipts 15,905 15,905 19,850 19,850

Interest received 556 556 875 875

Grants and contributions 4,995 4,995 1,273 1,273

Other 4,464 4,464 4,875 4,875

Total Receipts 25,920 25,920 26,873 26,873

NET CASH FLOWS FROM OPERATING ACTIVITIES 15 6,669 6,669 3,850 3,850

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of land and buildings, plant and equipment - - 10 10

Purchases of land and buildings, plant and equipment (2,848) (2,848) (9,981) (9,981)

NET CASH FLOWS FROM INVESTING ACTIVITIES (2,848) (2,848) (9,971) (9,971)

NET INCREASE/(DECREASE) IN CASH 3,821 3,821 (6,121) (6,121)

Opening cash and cash equivalents 21,801 21,801 27,922 27,922

CLOSING CASH AND CASH EQUIVALENTS 6 25,622 25,622 21,801 21,801


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Reporting entity

Venues NSW is a NSW government statutory body. Venues NSW is a not-for-profit entity (as profit is not its principal objective). The business of Venues NSW is to manage government owned land, sporting and entertainment infrastructure for the benefit of the people of NSW. Venues NSW is consolidated as part of the NSW Total State Sector Accounts.

Venues NSW, as a reporting entity, comprises all the entities under its control. Refer Note 1 (c).

In the process of preparing the consolidated financial statements for the economic entity, consisting of the controlling and controlled entities, all inter-entity transactions and balances have been eliminated, and like transactions and other events are accounted for using uniform accounting policies.

These financial statements for the year ended 30 June 2016 have been authorised for issue by the Board on 15 September 2016.

(b) Basis of preparation

Venues NSW’s financial statements are general purpose financial statements which have been prepared on an accruals basis and in accordance with:

» applicable Australian Accounting Standards (which include Australian Accounting Interpretations)

» the requirements of the Public Finance and Audit Act 1983 and Public Finance and Audit Regulation 2015 and

» the Financial Reporting Directions issued by the Treasurer.

Property, plant and equipment are measured at fair value. Other financial statement items are prepared in accordance with the historical cost convention except where specified otherwise.

Judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

(c) Principles of consolidation

The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Venues NSW (Parent Entity) as at 30 June 2016. Parent entity consists of Pirtek Stadium, Win Sports and Entertainment Centres, Hunter Stadium and Newcastle Entertainment Centre and Showground. Venues NSW and its controlled entity (Newcastle International Sports Centre Club) together are referred to in these financial statements as consolidated entity. The effect of all transactions between entities in the consolidated entity are eliminated in full.

(d) Statement of compliance

The financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

(e) Insurance

Venues NSW’s insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self-insurance for Government agencies. The expense (premium) is determined by the Fund Manager based on past claims experience.

(f) Accounting for Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of GST, except that:

» the amount of GST incurred by Venues NSW as a purchaser that is not recoverable from the Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense and

» receivables and payables are stated with the amount of GST included.

Cash flows are included in the statement of cash flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to the Australian Taxation Office are classified as operating cash flows.

VENUES NSWNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016



(g) Income recognition

Event related revenue is derived from revenues that can be allocated to specific sporting events. Where venue hire agreements specify that the hirer should contribute to the variable costs of staging an event, the costs recovered are included in event related revenue. Additional comments regarding the accounting policies for the recognition of income are discussed below.

(i) Grants and contributions

Grants and contributions are generally recognised as income when Venues NSW obtains control over the assets comprising the grants/contributions. Control is normally obtained upon receipt of cash.

(ii) Naming, exclusivity rights and sponsorship

Revenue from naming, exclusivity rights and sponsorship are recognised when Venues NSW enters into supply rights agreements with contractors. Revenue is amortised over the terms of the agreements and deferred revenue is included under income in advance on the statement of financial position.

(iii) Investment revenue

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

(h) Personnel services

Personnel services to Venues NSW are provided by the Office of Sport. Venues NSW does not directly employ staff and personnel services cost is recognised as it is incurred. A current liability (personnel services provisions) exists which includes provision of all employee related entitlements.

Salaries and wages (including non-monetary benefits) and paid sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the service are recognised and measured at the undiscounted amounts of the benefits.

Annual leave is not expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. As such, it is required to be measured at present value in accordance with AASB 119 Employee Benefits (although short-cut methods are permitted). Actuarial advice obtained by Treasury has confirmed that the use of a nominal approach plus the annual leave on annual leave liability (using 7.9% of the nominal value of annual leave) can be used to approximate the present value of the annual leave liability. Venues NSW has assessed the actuarial advice based on Venues NSW’s circumstances and has determined that the effect of discounting is immaterial to annual leave.

Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future.

Long service leave recognised in respect of employee benefits which are not expected to be settled within twelve months are measured at present value in accordance with AASB119 Employee Benefits. This is based on the application of certain factors (specified in NSW TC 15/09) to employees with five or more years of service, using the current rate of pay. Market yields on Government Bonds are used to discount such employee benefits.

The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer’s Directions. The expense for certain superannuation schemes (i.e. Basic Benefit and First State Super) is calculated as a percentage of the employees’ salary. For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities Superannuation Scheme), the expense is calculated as a multiple of the employees’ superannuation contributions.

Consequential costs to employment are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised. This includes outstanding amounts of payroll tax, workers’ compensation insurance premiums and fringe benefits tax.

(i) Assets

(i) Acquisition of assets

Assets acquired are initially recognised at cost. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the requirements of other Australian Accounting Standards.

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition.

Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at measurement date.

Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. the deferred payment amount is effectively discounted over the period of credit.

(ii) Capitalisation thresholds

Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised.

(iii) Revaluation of property, plant and equipment

Property, plant and equipment are valued in accordance with the ‘Valuation of Physical Non-Current Assets at Fair Value’ Policy and Guidelines Paper (TPP 14-01).

This policy adopts fair value in accordance with AASB 13 Fair Value Measurement and AASB 116 Property, Plant and Equipment.

Property, plant and equipment is measured at the highest and best use by market participants that is physically possible, legally permissible and financially feasible. The highest and best use must be available at a period that is not remote and take into account the characteristics of the asset being measured, including any socio-political restrictions imposed by government. In most cases, after taking into account these considerations, the highest and

best use is the existing use. In limited circumstances, the highest and best use may be a feasible alternative use, where there are no restrictions on use or where there is a feasible higher restricted alternative use.

Fair value of property, plant and equipment is based on a market participants’ perspective, using valuation techniques (market approach, cost approach, income approach) that maximise relevant observable inputs and minimise unobservable inputs. Also refer Note 9 and Note 10 for further information regarding fair value.

Venues NSW revalues each class of property, plant and equipment at least every three years or with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date. The last revaluations were completed at Pirtek Stadium, Hunter Stadium and Newcastle Entertainment Centre and Showground on 31 March 2015 and at WIN Sports and Entertainment Centres on 31 March 2016.

During the year, Venues NSW undertook a desk top indexation of the values of land and building assets at Pirtek Stadium, Hunter Stadium and the Newcastle Entertainment Centre and Showground. The indexations were done by independent valuers and dated 31 March 2016. No adjustments were made to the asset values as the impact on the asset values was immaterial.

When revaluing non-current assets using the cost approach, the gross amount and the related accumulated depreciation are separately restated.

For other assets valued using other valuation techniques, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements.

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





Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the revaluation surplus in respect of the same class of assets, they are debited directly to the asset revaluation surplus.

As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise.

Where an asset that has previously been revalued is disposed of, any balance remaining in the revaluation surplus in respect of that asset is transferred to accumulated funds.

Non-specialised assets with short useful lives are measured at depreciated historical cost as an approximation of fair value.

(iv) Impairment of property, plant and equipment

As a not-for-profit entity with no cash generating units, impairment under AASB 136 Impairment of Assets is unlikely to arise. As property, plant and equipment is carried at fair value, impairment can only arise in the rare circumstances where the costs of disposal are material. Specifically, impairment is unlikely for not-for-profit entities given that AABS 136 modifies the recoverable amount test for non-cash generating assets of not-for-profit entities to the higher of fair value less costs of disposal and depreciated replacement cost, where depreciated replacement cost is also fair value.

(v) Depreciation of property, plant and equipment

Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to Venues NSW.

All material identifiable components of assets are depreciated over their useful lives.

Land is not a depreciable asset.

The following useful lives have been determined for each class of assets, unchanged from previous years except for buildings and infrastructure which have been accelerated due to the impending demolition of Pirtek Stadium.

Average useful life years Years

Buildings and infrastructure 5-50

Plant and equipment 2-50

Computer 3

Sculptures 60

(vi) Maintenance

Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated.

(vii) Leased assets

Operating lease payments are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

(viii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost or face value.

Subsequent measurement is at amortised cost using the effective interest method, less any allowance for an impairment of receivables. Any changes are recognised in the net result for the year when impaired, derecognised or through the amortisation process.

Short term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(ix) Inventories

Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(x) Impairment of financial assets

All financial assets, except those measured at fair value through profit and loss, are subject to an annual review for impairment. An allowance for impairment is established when there is objective evidence that Venues NSW will not be able to collect all amounts due.

For financial assets carried at amortised cost, the amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the impairment loss is recognised in the net result for the period.

Any reversals of impairment losses are reversed through the net result for the period, where there is objective evidence. However, reversals of impairment losses on an investment in an equity instrument classified as ‘available for sale’ must be made through the revaluation surplus. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss.

(xi) De-recognition of financial assets and financial liabilities

A financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire; or if Venues NSW transfers the financial asset:

» where substantially all the risks and rewards have been transferred; or

» where Venues NSW has not transferred substantially all the risks and rewards, if Venues NSW has not retained control.

Where Venues NSW has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of Venues NSW’s continuing involvement in the asset.

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires.

(xii) Restricted assets

Cash and cash equivalents include ticket sales collected in advance for upcoming events. The amounts are restricted and are quarantined from operating funds. They are subsequently paid to promoters and hirers as part of the event settlement process. Restricted assets also include the unspent amounts of the funding provided for the redevelopment of Pirtek Stadium.

(j) Liabilities: Payables

These amounts represent liabilities for goods and services provided to Venues NSW and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

(k) Fair value hierarchy

A number of Venues NSW’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets. When measuring fair value, the valuation technique used maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Under AASB 13, Venues NSW categorises, for disclosure purposes, the valuation techniques based on the inputs used in the valuation techniques as follows:

» Level 1 – quoted prices in active markets for identical assets that Venues NSW can access at the measurement date.

» Level 2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

» Level 3 – inputs that are not based on observable market data (unobservable inputs).

Venues NSW recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Refer Note 10 for further disclosures regarding fair value measurements of non-financial assets.





(l) Equity and reserves

(i) Revaluation surplus

The revaluation surplus is used to record increments and decrements on the revaluation of non-current assets. This accords with Venues NSW’s policy on the revaluation of property, plant and equipment as discussed in note 1 i (iii).

(ii) Accumulated Funds

The category ‘Accumulated Funds’ includes all current and prior years’ retained funds.

(m) Changes in accounting policy, including new or revised Australian Accounting Standards

(i) Effective for the first time in 2015-16

The accounting policies applied in 2015-16 are consistent with those of the previous financial year.

(ii) Issued but not yet effective

NSW public sector entities are not permitted to early adopt new Australian Accounting Standards, unless Treasury determines otherwise.

The following Australian Accounting Standards issued but not effective have been assessed for impact on Venues NSW.

AASB 124, Related Party Disclosures will be effective for reporting periods beginning 1 July 2016. The objective of this Standard is to ensure that an entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and surplus or deficit may have been affected by the existence of related parties and by transactions and outstanding balances, including commitments, with such parties. Venues NSW will prepare for the implementation of this Standard by following procedures and issuing questionnaires to key management personnel and other employees.

AASB 16, Leases will have application from 1 January 2019. The standard introduces a new approach to lease accounting that requires a lessee to recognise assets and liabilities for the rights and obligations created by leases. We believe that the application of this standard will not have a significant impact on Venues NSW.

The following new Australian Accounting Standards have not been applied and are not yet effective.

» AASB 9 Financial Instruments (effective 1 July 2017)

» AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) (effective 1 January 2018)

» AASB 15 Revenue from Contracts with Customers (effective 1 January 2017)

» AASB 1057 Application of Australian Accounting Standards (effective from annual periods beginning on or after 1 January 2016)

» AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 (effective 1 January 2017)

» AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation (effective from annual periods beginning on or after 1 January 2016)

» AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-2014 Cycle (effective from annual periods beginning on or after 1 January 2016)

» AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 (effective from annual periods beginning on or after 1 January 2016)

» AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities (effective 1 July 2016)

» AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities (effective 1 July 2016)

» AASB 2015-8 Amendments to Australian Accounting Standards arising from AASB 15 (effective 1 January 2017)

» AASB 2015-9 Amendments to Australian Accounting Standards – Scope and Application Paragraphs (effective from annual periods beginning on or after 1 January 2016)

Management cannot determine the actual impact of these Standards in Venues NSW’s financial statements in the period of their initial application.

(n) Comparative information

Except when an Australian Accounting Standard permits or requires otherwise, comparative information is presented in respect of the previous period for all amounts reported in the financial statements.

(o) Income taxes

Venues NSW falls under the Tax Equivalent Regime (TER) for government businesses. As a result, Venues NSW is required to remit tax equivalents to the NSW Office of State Revenue based on accounting profits adjusted for certain transactions. Under the TER framework, Venues NSW is not required to apply AASB112 Income Taxes.

As an accounting loss was incurred, there is no tax liability.





2016CONSOLIDATED

$’000

2016PARENT

$’000

2015CONSOLIDATED

$’000

2015PARENT

$’0002 Expenses Excluding Losses(a) Personnel servicesSalaries and wages (including annual leave) 5,007 5,007 4,697 4,697Superannuation - defined contribution plan 367 367 367 367Long service leave (including on costs) 128 128 59 59Workers’ compensation insurance 53 53 52 52Payroll tax and fringe benefits tax 315 315 306 306Total 5,870 5,870 5,481 5,481(b)Event related costsCost of sales 6,082 6,082 7,416 7,416Contract staff 250 250 553 553Cleaning 320 320 350 350Other 98 98 104 104Total 6,750 6,750 8,423 8,423(c) Other operating expensesMaintenance 2,186 2,186 1,520 1,520Fees for services required 1,360 1,360 1,262 1,262Consultants 11 11 178 178Computer system expenses 176 176 183 183Doubtful debt expense - - 126 126Electricity and gas 1,080 1,080 1,197 1,197Motor vehicle expenses 48 48 44 44Postage and telephone 142 142 161 161Insurance 242 242 318 318Travel 52 52 38 38Legal 167 167 112 112Security 61 61 72 72Marketing/Advertising 67 67 42 42Training 52 52 46 46Printing and stationery 49 49 57 57Auditor’s remuneration - audit of financial statements 95 95 102 102Water charges 391 391 369 369Other 391 391 452 452Total 6,570 6,570 6,279 6,279(d) DepreciationDepreciationBuildings 24,507 24,507 8,221 8,221Plant and equipment 406 406 1,078 1,078Total 24,913 24,913 9,299 9,299

The depreciation of the assets of Pirtek Stadium has been accelerated due to the planned demolition of the current stadium and construction of a new stadium. The impact in 2015-16 is $16.2m and in 2016-17 will be $24.3m.



2016CONSOLIDATED

$’000

2016PARENT

$’000

2015CONSOLIDATED

$’000

2015PARENT

$’000

3 Revenue

(a) Event related revenue

Ticket revenue 1,226 1,226 1,038 1,038

Venue and ground hire 5,936 5,936 6,583 6,583

Cost recovered from hirer 3,522 3,522 4,030 4,030

Game day catering 3,554 3,554 4,074 4,074

Other 30 30 24 24

Total 14,268 14,268 15,749 15,749

(b) Investment revenue

Interest revenue 562 562 811 811

(c) Grants and contributions

NSW State Government 4,995 4,995 100 100

Other - - 1,008 1,008

4,995 4,995 1,108 1,108

The grants include $3m for the Western Sydney Stadium Project and $0.792m for the WIN Stadium Northern Grandstand Project.

(d) Other revenue

Advertising 186 186 204 204

Leasing and rentals 873 873 909 909

Naming & exclusivity rights, sponsorship, merchandising, insurance recoveries, miscellaneous catering and sponsorship

3,464 3,464 2,771 2,771

Car park revenue 625 625 694 694

Total 5,148 5,148 4,578 4,578

4 Gain / (Loss) on Disposal

Proceeds from disposal of plant and equipment - - 10 10

Less Written down value of assets disposed - - (1,893) (1,893)

Net gain / (loss) on disposal of plant and equipment - - (1,883) (1,883)

5 Other Gains / (Losses)

Partial write down of Pirtek Stadium building work in progress (395) (395) - -

(395) (395) (1,883) (1,883)



6 Current Assets - Cash and Cash Equivalents 2016CONSOLIDATED

$’000

2016PARENT

$’000

2015CONSOLIDATED

$’000

2015PARENT

$’000Cash at bank and on hand 8,320 8,320 18,340 18,340 Cash at bank - Advance ticket sales 3,652 3,652 3,461 3,461 Treasury Corporation deposits 13,650 13,650 - - Total 25,622 25,622 21,801 21,801

Cash at bank - advanced ticket sales relates to cash collected in advance for upcoming events and is quarantined from operating funds.Current Assets – Cash and Cash Equivalents includes $16.4m unspent from the $27m funding received in prior years towards the Pirtek Stadium Upgrade Project.

7 Current Assets - ReceivablesDebtors 1,525 1,525 1,529 1,529 Less: Allowance for impairment (126) (126) (126) (126)Prepayments 79 79 103 103 GST receivable - - 26 26 Accrued income 217 217 229 229 Other accounts receivable 241 266 271 296 Total Current Receivables 1,936 1,961 2,032 2,057 Movement in the allowance for impairmentBalance at 1 July (126) (126) (8) (8)Amounts written off during the period - - 8 8 Amounts recovered during the period - - - - Increase (decrease) in allowance recognised in profit or loss - - (126) (126)Balance at 30 June (126) (126) (126) (126)

8 Current Assets - InventoriesHeld for resale 66 66 75 75



9 Non-Current Assets - Property, Plant and EquipmentCONSOLIDATED PARENT

LAND AND BUILDINGS

$’000

PLANT AND EQUIPMENT

$’000TOTAL$’000

LAND AND BUILDINGS

W$’000

PLANT AND EQUIPMENT

$’000TOTAL$’000

At 1 July 2015 - fair valueGross carrying amount 384,617 5,411 390,028 384,617 5,411 390,028 Accumulated depreciation and impairment (89,462) (3,255) (92,717) (89,462) (3,255) (92,717)Net carrying amount 295,155 2,156 297,311 295,155 2,156 297,311 At 30 June 2016 - fair valueGross carrying amount 405,857 6,096 411,953 405,857 6,096 411,953 Accumulated depreciation and impairment (135,106) (3,661) (138,767) (135,106) (3,661) (138,767)Net carrying amount 270,751 2,435 273,186 270,751 2,435 273,186 ReconciliationYear ended 30 June 2016A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the current reporting period is set out below.

Net carrying amount at start of year 295,155 2,156 297,311 295,155 2,156 297,311 Additions 2,702 146 2,848 2,702 146 2,848 Depreciation expense (24,507) (406) (24,913) (24,507) (406) (24,913)Transfer from building infrastructure to plant and equipment

(539) 539 - (539) 539 -

Partial write down of Pirtek Stadium building work-in-progress

(395) - (395) (395) - (395)

Revaluation decrement (1,665) - (1,665) (1,665) - (1,665)Net carrying amount at end of period 270,751 2,435 273,186 270,751 2,435 273,186

Further details regarding the fair value measurement of property, plant and equipment are disclosed in Note 10.

CONSOLIDATED PARENT

LAND AND BUILDINGS

$’000

PLANT AND EQUIPMENT

$’000TOTAL$’000

LAND AND BUILDINGS

$’000

PLANT AND EQUIPMENT

$’000TOTAL$’000

At 1 July 2014 - fair valueGross carrying amount 340,129 20,580 360,709 340,129 20,580 360,709 Accumulated depreciation and impairment (73,992) (9,073) (83,065) (73,992) (9,073) (83,065)Net carrying amount 266,137 11,507 277,644 266,137 11,507 277,644

At 30 June 2015 - fair valueGross carrying amount 384,617 5,411 390,028 384,617 5,411 390,028 Accumulated depreciation and impairment (89,462) (3,255) (92,717) (89,462) (3,255) (92,717)Net carrying amount 295,155 2,156 297,311 295,155 2,156 297,311 Reconciliation



LEVEL 3 BUILDINGS

VALUATION TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUTS

Depreciated replacement cost:Qualified valuers from Opteon Property Group, Skelton Valuers and FPV Consultants were engaged between April 2015 and March 2016 for each site to carry out the valuation of buildings.

Buildings:Replacement cost per square metre for the following assets:

Asset and range (weighted average):

Replacement cost of buildings and structures were based on gross floor areas and net lettable areas and the calculation of gross floor areas from drawings or site inspections. These areas and photographs of the buildings were used for the establishment of replacement costs. The replacement costs were used to establish the fair values of all buildings.

Hunter Stadium $81 - $2,793 ($1,058) Newcastle Entertainment Centre $141 - $1,764 ($518) Pirtek Stadium $189 - $1,820 ($636) WIN Stadium $202 - $5,151 ($1,951) WIN Entertainment Centre $286 - $2,265 ($2,169)

The completion of the replacement cost valuation also included reference to historical cost information provided by Venues NSW and the Rawlinsons Australian Construction Handbook 2015 of cost information used for the construction of some of the buildings.

Other inputs: Weighted average remaining useful life: Hunter Stadium 33 years Newcastle Entertainment Centre 15 years Pirtek Stadium 25 years WIN Stadium 26 years WIN Entertainment Centre 22 years

The methodology used in determining the replacement cost and depreciated replacement cost valuations:

Floor area: Hunter Stadium 107,236 sqm Newcastle Entertainment Centre 33,926 sqm

1. Estimating the cost of construction comprising site infrastructure, buildings and other specialist equipment.

Pirtek Stadium 56,280 sqm WIN Stadium 15,790 sqm WIN Entertainment Centre 14,391 sqm

2. Identify the age of the existing assets.

3. Establish the remaining life for each asset based on age, condition and functionality.

4. Calculate the depreciated replacement cost of these assets based on the current replacement cost and the economic life.



Year ended 30 June 2015A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the current reporting period is set out below.

CONSOLIDATED PARENT

LAND AND BUILDINGS

$’000

PLANT AND EQUIPMENT

$’000TOTAL$’000

LAND AND BUILDINGS

$’000

PLANT AND EQUIPMENT

$’000TOTAL$’000

Net carrying amount at start of year 266,137 11,507 277,644 266,137 11,507 277,644 Additions 9,643 338 9,981 9,643 338 9,981 Disposals (1,568) (325) (1,893) (1,568) (325) (1,893)Depreciation expense (8,221) (1,078) (9,299) (8,221) (1,078) (9,299)Transfer from plant and equipment to buildings infrastructure

8,286 (8,286) - 8,286 (8,286) -

Revaluation increment 20,878 - 20,878 20,878 - 20,878 Net carrying amount at end of period 295,155 2,156 297,311 295,155 2,156 297,311

10 Fair value measurement of non-financial assets(a) Fair value hierarchy

2016LEVEL 1

$’000LEVEL 2

$’000LEVEL 3

$’000TOTAL FAIR VALUE

$’000

Property, plant and equipment (Note 9)Land and buildings - - 270,751 270,751

- - 270,751 270,751

2015LEVEL 1

$’000LEVEL 2

$’000LEVEL 3

$’000TOTAL FAIR VALUE

$’000

Property, plant and equipment (Note 9)Land and buildings - 55,206 239,949 295,155

- 55,206 239,949 295,155

There were transfers between Level 2 and Level 3 during the year.

(b) Valuation techniques, inputs and processes

The following table shows the valuation techniques used in measuring the fair value of property, plant and equipment for Level 3 fair values.

Level 3 LandValuation technique and inputs

Market value: Qualified valuers from Opteon Property Group, Skelton Valuers and FPV Consultants were engaged between April 2015 and March 2016 for each site to carry out the valuation of land. The values for the lands are determined by using market evidence based on the zoning and restrictions, condition, location and comparability of the asset. The valuers did not make significant adjustments to the land values. A range of sales evidence was used but a discount factor was not used to go from an unimpaired value (highest and best use) to an impaired value (existing use). Hence the most appropriate method to value land is via the Direct Comparison Approach, which is the “market approach”. In this approach the relative merits of the subject property and each of the sales are analysed and compared, having regard to matters such as zoning, location, aspect, topography, size of land, shape of land, size and current market sentiment. Ultimately valuers make a judgement call when comparing sales to the subject property. Sales evidence is considered as observable inputs. In the case of specialised assets such as Venues NSW’s lands, the valuers consider the current use of the land. They also work on the basis the current use is in fact the highest and best use given there is no other feasible alternate use. In short, fair value is measured having regard to the highest and best use of an asset.

Fair value per square metre is in the range $33/sqm - $1000/sqm (weighted average $91/sqm). Total area of land is 616,874 sqm.

The following table shows the valuation techniques used in measuring the fair value of property, plant and equipment, as well as the significant unobservable inputs used for Level 3 fair values.





2016CONSOLIDATED

$’000

2016PARENT

$’000

2015CONSOLIDATED

$’000

2015PARENT

$’00011 Current / Non-Current Liabilities - Payables CurrentCreditors 193 193 314 314Deposits held 4,109 4,109 4,007 4,007Accrued expenses 1,818 1,818 738 738Income in advance 929 929 1,239 1,239Other payables 1,321 1,321 316 316GST payable 67 67 - -Total 8,437 8,437 6,614 6,614 Non-CurrentIncome in advance 1,559 1,559 2,662 2,662

1,559 1,559 2,662 2,662

12 Current / Non-Current Liabilities - ProvisionsCurrentPersonnel services 921 921 847 847Movements in provisions Carrying amount at start of period 847 847 781 781 Additional provisions recognised 490 490 242 242 Amounts used (416) (416) (176) (176)Carrying amount at end of period 921 921 847 847 Non-CurrentPersonnel services 48 48 61 61 Movements in provisionsCarrying amount at start of period 61 61 52 52 Additional provisions recognised 14 14 9 9 Amounts used (27) (27) - - Carrying amount at end of period 48 48 61 61

13 Commitments for Expenditure

(a) Capital commitments2016

$’0002016

$’0002015

$’0002015

$’000Aggregate capital expenditure for the acquisition of property, plant and equipment including the redevelopment of Pirtek Stadium contracted for at balance date and not provided for: Not later than one year - - 1,268 1,268 Later than one year and not later than five years - - - -Total (including GST) - - 1,268 1,268 (b) Operating lease commitments Future non-cancellable operating lease rentals not provided for and payable: Not later than one year 19 19 15 15Later than one year and not later than five years 52 52 23 23Total (including GST) 71 71 38 38

(c) Reconciliation of recurring Level 3 fair value measurements

2016

LAND AND BUILDINGS

$’000

PLANT AND EQUIPMENT

$’000

TOTAL RECURRING LEVEL 3

FAIR VALUE$’000

Fair value as at 1 July 2015 239,949 - 239,949

Additions 2,702 - 2,702

Transfers from Level 2 55,206 - 55,206

Depreciation (24,507) - (24,507)

Transfer from buildings infrastructure to plant and equipment (539) - (539)

Partial write down of Pirtek Stadium building work-in-progress (395) - (395)

Net revaluation decrement (1,665) - (1,665)

Fair value as at 30 June 2016 270,751 - 270,751

2015BUILDINGS

$’000

PLANT AND EQUIPMENT

$’000

TOTAL RECURRING LEVEL 3

FAIR VALUE$’000

Fair value as at 1 July 2014 215,842 7,819 223,661

Additions 9,643 338 9,981

Disposals (1,568) - (1,568)

Depreciation (8,221) - (8,221)

Transfer from plant and equipment to buildings infrastructure 8,286 (8,286) -

Net revaluation increment 15,967 129 16,096

Fair value as at 30 June 2015 239,949 - 239,949





14 Contingent Liabilities and Contingent Assets

Following the Government’s announcement in September 2015 of a commitment to build a new 30,000 seat stadium at Parramatta on the site of the existing Pirtek Stadium, work on the upgrade project which was then underway has ceased. An amount of $16.4m in funding received from the Commonwealth remains unspent.

The Members of the Board of Management are not aware of any significant or material contingent asset in existence at reporting date or which has emerged subsequent to reporting date which would materially impact on the financial position of Venues NSW.

15 Reconciliation of Cash Flows from Operating Activities to Net Result

2016CONSOLIDATED

$’000

2016PARENT

$’000

2015CONSOLIDATED

$’000

2015PARENT

$’000Net cash used on operating activities 6,669 6,669 3,850 3,850 Depreciation (24,913) (24,913) (9,299) (9,299)Allowance for impairment - - (126) (126)Decrease (increase) in provisions (61) (61) (75) (75)Increase (decrease) in receivables (96) (96) 276 276 Increase (decrease) in inventories (9) (9) (16) (16)Decrease (increase) in current payables (1,030) (1,030) (2,701) (2,701)Decrease (increase) in non-current payables 310 310 855 855 Partial write down of Pirtek Stadium building work-in-progress (395) (395) - - Net gain / (loss) on sale of plant and equipment - - (1,883) (1,883)Net result (19,525) (19,525) (9,119) (9,119)

16 Financial Instruments

Venues NSW’s principal financial instruments are outlined below. These financial instruments arise directly from Venues NSW’s operations or are required to finance its operations. Venues NSW does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

Venues NSW’s main risks arising from financial instruments are outlined below, together with Venues NSW’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout these financial statements.

The Board of Management with advice from the Audit and Risk Committee of Venues NSW has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by Venues NSW, to set risk limits and controls and to monitor risks.

(a) Financial instrument categories

Financial Assets NOTE CATEGORY

CONSOLIDATEDCARRYING AMOUNT

2016$’000

PARENTCARRYING AMOUNT

2016$’000

CONSOLIDATEDCARRYING AMOUNT

2015$’000

PARENTCARRYING AMOUNT

2015$’000

ClassCash and cash equivalents 6 N/A 25,622 25,622 21,801 21,801Receivables (excludes statutory receivables and prepayments) 7

Loans and receivables (at amortised cost) 1,857 1,882 1,903 1,928

27,479 27,504 23,704 23,729 Financial LiabilitiesClass

Payables (excludes statutory payables and unearned revenue) 11

Financial liabilities measured at amortised cost 7,441 7,441 5,375 5,375

7,441 7,441 5,375 5,375

(b) Credit riskCredit risk arises when there is the possibility of Venues NSW’s debtors defaulting on their contractual obligations, resulting in a financial loss to Venues NSW. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment).Credit risk arises from the financial assets of Venues NSW, including cash, receivables and authority deposits. No collateral is held by Venues NSW. Venues NSW has not granted any financial guarantees.Authority deposits held with NSW TCorp are guaranteed by the State.

(i) CashCash comprises cash on hand and bank balances within the NSW Treasury Banking System. Interest is earned on daily bank balances at the monthlyaverage NSW Treasury Corporation (TCorp) 11am unofficial cash rate, adjusted for a management fee to NSW Treasury.

(ii) Receivables - trade debtors All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis.Procedures as established in the Treasurer’s Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that Venues NSW will not be able to collect all amounts due. This evidence includes past experience and current and expected changes in economic conditions.Venues NSW is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. Based on past experience, debtors that are not past due $647,681 (2015: $392,299) and less than 3 months past due $189,776 (2015: $451,393) are not considered impaired.

$’0002016

$’0002015

TOTALPAST DUE BUT NOT

IMPAIRED CONSIDERED IMPAIRED TOTALPAST DUE BUT NOT

IMPAIRED CONSIDERED IMPAIRED

Consolidated< 3 months overdue 190 190 - 451 451 - > 3 months overdue 684 558 126 463 337 126Total 874 748 126 914 788 126Parent< 3 months overdue 190 190 - 451 451 - > 3 months overdue 684 558 126 463 337 126Total 874 748 126 914 788 126

The ageing analysis excludes statutory receivables, as these are not within the scope of AASB7 and excludes receivables that are not past due and not impaired. Therefore, the “total” will not reconcile to the receivables total recognised in the statement of financial position.

(iii) Receivables - otherVenues NSW has a receivable identified as Loan to Controlled Entity of $25,063, from the Newcastle International Sports Club.

(iv) Authority DepositsThe entity has placed funds on deposit with TCorp, which has been rated ‘AAA’ by Standard and Poor’s. These deposits are similar to money market or bank deposits and can be placed ‘at call’ or for a fixed term. For fixed term deposits, the interest rate payable by TCorp is negotiated initially and is fixed for the term of the deposit, while the interest rate payable on at call deposits can vary. The deposits at balance date were earning an average interest rate of 2.5% (2015 – Nil), while over the year the weighted average interest rate was 2.5% (2015 – Nil) on a weighted average balance during the year of $13,650,000 (2015 – Nil). None of these assets are past due or impaired.



The table below summarises the maturity profile of Venues NSW’s financial liabilities, together with the interest rate exposure.

Maturity Analysis and Interest Rate Exposure of Financial Liabilities

Consolidated2016 $’000

INTEREST RATE EXPOSURE MATURITY DATESWEIGHTED AVERAGE

EFFECTIVE INT. RATE NOMINAL AMOUNT

FIXED INTEREST RATE

VARIABLE INTEREST RATE

NON-INTEREST BEARING < 1 YR 1-5 YRS > 5 YRS

Total:Payables N/A 7,441 - - 7,441 7,441 - -

7,441 - - 7,441 7,441 - -ParentTotal: Payables N/A 7,441 - - 7,441 7,441 - -

7,441 - - 7,441 7,441 - -

Consolidated 2015 $’000Total: Payables N/A 5,375 - - 5,375 5,375 - -

5,375 - - 5,375 5,375 - -

Parent2015 $’000

Total: Payables N/A 5,375 - - 5,375 5,375 - -

5,375 - - 5,375 5,375 - -

Notes: The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities based on the earliest date on which Venues NSW can be required to pay. The tables include both interest and principal cash flows and therefore will not reconcile to the statement of financial position.

Interest rate riskExposure to interest rate risk arises primarily through Venues NSW’s interest bearing liabilities. Venues NSW does not account for any fixed rate financial instruments at fair value through profit or loss or as available for sale.Therefore for these financial instruments, a change in interest rates would not affect profit or loss or equity. A reasonably possible change of +/- 1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is a structural change in the level of interest rate volatility. Venues NSW’s exposure to interest rate risk is set out below.

Consolidated 2016 $’000

-1% 1%

CARRYING AMOUNT PROFIT EQUITY PROFIT EQUITYFinancial assets: Cash and cash equivalents 25,622 (256) (256) 256 256

25,622 (256) (256) 256 256 Parent 2016 $’000 Financial assets: Cash and cash equivalents 25,622 (256) (256) 256 256

25,622 (256) (256) 256 256 Consolidated 2015 $’000 Financial assets: Cash and cash equivalents 21,801 (218) (218) 218 218

21,801 (218) (218) 218 218 Parent 2016 $’000 Financial assets: Cash and cash equivalents 21,801 (218) (218) 218 218

21,801 (218) (218) 218 218

Other price risk - TCorp Hour-Glass facilitiesVenues NSW holds units in the following Hour-Glass investment trust:

FACILITY INVESTMENTS SECTORS INVESTMENT HORIZON 2016 $’000 2015 $’000Cash facility Cash, money market instruments Up to 1.5 years 13,650 -

The unit price of each facility is equal to the total fair value of the net assets held by the facility divided by the number of units on issue for that facility.Unit prices are calculated and published daily. NSW TCorp as trustee for each of the above facilities is required to act in the best interest of the unit holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. The TCorp Hour-Glass Investment facilities are designated at fair value through profit or loss and therefore any change in unit price impacts directly on profit (rather than equity).

IMPACT ON PROFIT/LOSSFACILITY CHANGE IN UNIT PRICE 2016 $’000 2015 $’000Hour-Glass Investment - Cash facility +/- 5% 683 -

(e) Fair value measurementFinancial instruments are generally recognised at cost. The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value, because of the short term nature of many of the financial instruments.

17 Events after the Reporting PeriodThere has not arisen in the interval between the 30 June 2016 and the date of this report, any item, transaction or event of a material or unusual nature likely, in the opinion of the Board to affect significantly the operations or the affairs of Venues NSW in the future financial years.

End of audited financial statements



(c) Liquidity riskLiquidity risk is the risk that Venues NSW will be unable to meet its payment obligations when they fall due. Venues NSW continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of loans and other advances.

During the current and prior year, there were no defaults or breaches on any loans payable. No assets have been pledged as collateral. Venues NSW’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.

The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoicedAmounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in NSW TC 11/12. For small business suppliers, where terms are not specified, payment is made not later than 30 days from date of receipt of a correctly rendered invoice. For other suppliers, if trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or statement is received.

(d) Market riskMarket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.Venues NSW’s exposures to market risk are primarily through interest rate risk on Venues NSW’s risks associated with the movement in the unit price of the Hour Glass Investment Facilities. Venues NSW has no exposure to foreign currency risk, and does not enter into commodity contracts.



The Board’s Responsibility for the Financial Statements

The members of the Board are responsible for preparing financial statements that give a true and fair view in accordance with Australian Accounting Standards and the PF&A Act, and for such internal control as the members of the Board determine is necessary to enable the preparation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the members of the Board must assess the Club’s ability to continue as a going concern unless the Club will be dissolved by an Act of Parliament or otherwise cease operations. The assessment must include, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting.

Auditor’s Responsibility for the Audit of the Financial Statements

My objectives are to:

» obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error

» issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in accordance with Australian Auditing Standards will always detect material misstatements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions users take based on the financial statements.

A further description of my responsibilities for the audit of the financial statements is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/Home.aspx. The description forms part of my auditor’s report.

My opinion does not provide assurance:

» that the Club carried out its activities effectively, efficiently and economically

» about the security and controls over the electronic publication of the audited financial statements on any website where they may be presented.

Peter Coulogeorgiou Director, Financial Audit Services

19 September 2016 SYDNEY

INDEPENDENT AUDITOR’S REPORT

Newcastle International Sports Centre Club

To Members of the New South Wales Parliament

Opinion

I have audited the accompanying financial statements of the Newcastle International Sports Centre Club (the Club), which comprise the statement of financial position as at 30 June 2016, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information.

In my opinion, the financial statements:

» give a true and fair view of the financial position of the Club as at 30 June 2016, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards

» are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and the Public Finance and Audit Regulation 2015.

My opinion should be read in conjunction with the rest of this report.

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report.

I am independent of the Club in accordance with the auditor independence requirements of:

» Australian Auditing Standards

» ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for Professional Accountants’ (the Code).

I have also fulfilled my other ethical responsibilities in accordance with the Code.

The PF&A Act further promotes independence by ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by:

» providing that only Parliament, and not the executive government, can remove an Auditor-General

» mandating the Auditor-General as auditor of public sector agencies, but precluding the provision of non-audit services.

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.



Statement by Members of the Board of Management

Pursuant to section 41C(1B) of the Public Finance and Audit Act 1983, We declare on behalf of Venues NSW that:

(i) In our opinion the financial statements of the Authority for the year ended 30 June 2016 have been prepared in accordance with applicable Australian Accounting Standards (which includes Australian Accounting interpretations), the requirements of the Public Finance and Audit Act 1983 and the Public Finance and Audit Regulation 2015 and the Treasurer’s Directions.

(ii) The financial statements exhibit a true and fair view of the financial position as at 30 June 2016 and the financial performance for the year then ended.

(iii) There are no circumstances which would render any particulars in the financial statements to be misleading or inaccurate.

Mr John Quayle Ms Janett Milligan Chairperson Board Member and Executive Director

15 September 2016 15 September 2016

NEWCASTLE INTERNATIONAL SPORTS CENTRE CLUBSTATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2016

NOTES2016

$2015

$

Expenses

Administration expenses - -

Revenue

Other income - -

Net result - -

Other comprehensive income - -

TOTAL COMPREHENSIVE INCOME - -


NOTES

2016 $

2015 $

ASSETS

Current Assets

Cash and Cash Equivalents - -

Total Current Assets - -

Total Assets - -

LIABILITIES

Current Liabilities

Trade and other payables - -

Total Current Liabilities - -

Non Current Liabilities

Trade and other payables 2 25,063 25,063

Total Non Current Liabilities 25,063 25,063

Total Liabilities 25,063 25,063

Net Liabilities (25,063) (25,063)

EQUITY

Accumulated Losses 3 (25,063) (25,063)

Total Equity (25,063) (25,063)


NEWCASTLE INTERNATIONAL SPORTS CENTRE CLUB

Financial StatementsFOR THE YEAR ENDED 30 JUNE 2016

NEWCASTLE INTERNATIONAL SPORTS CENTRE CLUBSTATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2016



NEWCASTLE INTERNATIONAL SPORTS CENTRE CLUBSTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2016

NEWCASTLE INTERNATIONAL SPORTS CENTRE CLUBSTATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2016

ACCUMULATED FUNDS

$

TOTAL $

Balance at 1 July 2014 (25,063) (25,063)

Net result for the year - -

Balance at 30 June 2015 (25,063) (25,063)

Net result for the year - -

Balance at 30 June 2016 (25,063) (25,063)


NOTES2016

$2015

$

CASH FLOWS FROM OPERATING ACTIVITIES

Payments - -

Receipts - -

NET CASH FLOWS FROM OPERATING ACTIVITIES 6 - -

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of investments - -

Purchases of investments - -

NET CASH FLOWS FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings - -

Repayment of borrowings - -

NET CASH FLOWS FROM FINANCING ACTIVITIES - -

NET INCREASE / (DECREASE) IN CASH - -

Opening cash and cash equivalents - -

CLOSING CASH AND CASH EQUIVALENTS 5 - -

1. Summary of Significant Accounting Policies

Basis of Preparation

The Financial Statements are a general purpose financial report which have been prepared in accordance with Australian Accounting Standards (which includes Australian Accounting Interpretations), the requirements of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2015 and the Treasurer’s Directions.

The financial statements have been prepared under the accrual basis of accounting. Except for certain assets which, as noted, are at valuation, the accounts are prepared in accordance with the historical cost convention, modified where applicable by the measurement at fair value of selected non-current assets and financial liabilities. The accounting policies adopted are consistent with those of the previous year.

The Newcastle International Sports Centre Club (Club) is a subsidiary of Venues NSW.

The Club, in complying with the requirements of the Public Finance and Audit Act 1983, has kept proper accounts and records of its operations.

The financial statements for the year ended 30 June 2016 have been authorised for issue by the Board Members of Venues NSW on 15 September 2016.

Venues NSW provides administrative services, including the preparation of financial services for the Club. Due to the inconsequential nature of those services, their value can not be calculated with any certainty and no charge is made to the entity for them. Venues NSW also pays audit fees which include the audit of the Club’s financial statements. The fee charged for the audit of the Club’s financial statements is not separable from the Venues NSW audit fees.

(a) Income Tax

The Club is exempt of income tax under the Income Tax Assessment Act 1997.

(b) Cash

For the purposes of the Statement of Cash Flows, cash includes deposits at call which are readily convertible to cash on hand and which are used in the cash management function on a day-to-day basis.

(c) Revenue

Revenue from the sale of goods is recognised upon delivery of goods to customers.

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

(d) Assets

The Club holds 15 poker machine entitlements. These entitlements can be sold. The Club has not recorded the poker machine entitlements in the financial statements as there was no fair value on acquisition of these entitlements.

(e) Trade & Other Creditors

Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Club. These amounts are unsecured and are usually settled within 30 days.

(f) Going Concern

The operations of the Newcastle International Sports Centre Club ceased trading on 12 December 2008 due to the demolition of the Western Grandstand at Hunter Stadium. At the date of this report no decision has been made as to whether the Club will commence trading again in the future.

Venues NSW has agreed to provide financial support to the Club until a decision is made as to its future.

(g) Financial Instruments

Recognition and Initial Measurement

Financial instruments, incorporating financial assets and financial liabilities, are recognised on trade-date - the date when the Club commits to purchase or sell the assets. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the Club no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed is recognised in profit or loss.

NEWCASTLE INTERNATIONAL SPORTS CENTRE CLUBNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2016



Classification and Subsequent Measurement

(i) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. When a financial liability is recognised, initially it is measured at fair value net of transaction costs.

Fair Value

Financial instruments are subsequently measured at fair value, which represents the amount for which a liability could be settled, between knowledgeable, willing parties.

Impairment

At each reporting date, the Club assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.

(h) New Australian Accounting Standards issued but not effective

At reporting date a number of accounting standards adopted by the AASB has been issued but are not yet operative. These new Standards/Interpretations have not been early adopted by the Club.

Not withstanding this, it is considered that the implementation of these Standards would not have had any material impact on the Club’s financial statements.

2016 $ 2015 $

2. Non Current Liabilities - Trade and other payables

Loans from Related Entity 25,063 25,063

3. Accumulated Losses

Accumulated Losses at the beginning of the financial year (25,063) (25,063)

Profit/(loss) for the year - -

Accumulated Losses at the end of the financial year (25,063) (25,063)

4. Financial Risk Management

a. Financial Risk Management Policies

The Club’s financial instruments have consisted mainly of deposits with banks, payables and loans from related entities. The Club is now a dormant entity and the only remaining financial instrument at year end is a loan from a related entity.

The Club does not have any derivative instruments as at 30 June 2016.

Financial Risk Exposures and Management

The Club’s overall risk management strategy seeks to assist the Club in meeting its financial targets, while minimising potential adverse effects on financial performance. The Club operates under board approved policies which include review of credit risk policies and any future cash flow requirements.

The Club does not have any exposure to interest rate risk, liquidity risk and credit risk.

Interest rate risk

The Club does not have any exposure to interest rate risk as the only liability is an interest free loan from a related entity.

Liquidity risk

The Club does not have any exposure to liquidity risk at present as it is a dormant entity, with the only liability being to a related entity. This related entity has agreed to provide financial support to the Club until a decision is made as to its future.

Credit risk

The Club does not have any exposure to credit risk at present as it is a dormant entity, with the only liability being an interest free loan from a related entity.

b. Financial Instruments Composition and Maturity Analysis

The table below reflects the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management’s expectations of the settlement period for all other financial instruments. As such the amounts may not reconcile to the statement of financial position.

WITHIN 0-3 MONTHS

$

WITHIN 3-6 MONTHS

$

6 TO 12 MONTHS

$

1 TO 5 YEARS

$

TOTAL CONTRACTUAL

CASH FLOWS$

CARRYING AMOUNT OF LIABILITIES

$

30 June 2016Financial Liabilities

Loans from Related Entities - - - 25,063 25,063 25,063

Total contractual cash flows - - - 25,063 25,063 25,063

30 June 2015Financial Liabilities

Loans from Related Entities - - - 25,063 25,063 25,063

Total contractual cash flows - - - 25,063 25,063 25,063

c. Sensitivity Analysis

Interest Rate Risk and Market Risk: The Club has not performed a sensitivity analysis relating to its exposure to interest rate risk and market risk at balance date due to the lack of exposure to these types of risk.

2016 $ 2015 $

5. Cash Flow Information

For the purpose of the Statement of Cash Flows, cash includes:

Deposits at call which are readily convertible to cash on hand and which are used in the cash management function on a day-to-day basis. Cash at the end of the year is shown in the Statement of Financial Position as:

Cash and cash equivalents - -

6. Reconciliation of Net Cash provided by Operating Activities to Operating Result

Surplus/(deficit) for the year - -

Changes in operating assets and liabilities :

Increase/(decrease) in sundry creditors - -

Net cash provided by operating activities - -

7. Subsequent Events

There were no events subsequent to the period end which would have a material effect on the financial position of the Club.

End of audited financial statements





Human resourcesVenues NSW staff were employed through the Office of Sport during the period. The annual average number of full-time equivalent (FTE) staff was 32.93. As at 30 June 2016, there were 24 non-casual staff and 10 casual staff. The majority of the casual staff are employed as required as event staff at WIN Entertainment Centre and WIN Stadium.

Newcastle Entertainment Centre is managed for Venues NSW by AEG Ogden. Staff at the Newcastle Entertainment Centre are employees of AEG Ogden.

Venues NSW has contracts with organisations to provide event services such as security, cleaning and customer service. Staff providing these services are employed by the contracted organisations.

Appendices

Number of officers and employees by category compared over three years

Remuneration Level of Substantive Position 2013-14 2014-15 2015-16

(2014-15 rates) Men Women Men Women Men Women

$0 - $44,683 2 1 1 3 1 0

$44,683 - $58,867 1 4 1 4 0 3

$58,867 - $65,608 0 2 0 1 1 1

$65,608 - $83,022 3 2 3 2 3 3

$83,022 - $107,362 0 1 0 1 0 0

$107,362 - $134,202 3 2 4 1 4 3

$134,202 > 4 1 3 1 4 1

TOTAL 13 13 12 13 13 11

Performance and number of senior executives

Female MaleAverage

remuneration

Band 2 (Executive Director) 1 $271,350

Band 1 (Director) 2 $188,791

Grand Total 1 2 $216,311

Appendix 1Policy was put in place in August 2015.

In the WHS space, new policies were put in place for the Return to Work Program, Fitness for Duty and Emergency Management.

The review of personnel policies and practices is being undertaken on an ongoing basis and will continue through the 2016-17 financial year.

Industrial Relations Policies and PracticesAn Office of Sport Joint Consultative Committee (JCC) was formed in August 2014 and met on a quarterly basis during the 2014-2015 financial year.

The JCC is chaired by the Chef Executive of the Office of Sport with membership including senior executives and representatives of relevant industrial organisations.

Workforce DiversityVenues NSW is committed to complying with workforce diversity obligations pursuant to the Government Sector Employment Act 2013 and GSE Rules.

Venues NSW worked with the Office of Sport to develop a workforce diversity program in 2015-16 for the purpose of:

» Achieving improved employment outcomes for diverse workforce groups

» Creating a socially and culturally inclusive, fair and harmonious workplace

The Workforce Diversity Program facilitates workforce planning, recruitment and diversity initiatives inclusive of:

» Aboriginal and Torres Strait Islander Australians

» Women

» People with disabilities

» People from culturally diverse backgrounds

The Program will align with the NSW Government Multicultural Policies and Services Program, and fulfil all relevant legislative requirements.

in 2016 Venues NSW developed a Disability Inclusion Action Plan that would introduce a consistent and contemporary approach to accessibility and inclusion across all of our venues. Staff and local stakeholders at every venue were

involved in the process, which included a number of workshops enabling important contributions to the review from members of the community whose experience of our venues is directly impacted by disability. The plan is about making access and inclusion for people with disabilities as seamless as possible when attending our venues. It will complement efforts under the National Disability Strategy and NSW Disability Inclusion Plan.

The plan will be implemented throughout 2016-17.

Our vision is for an organisation free from all discrimination, recruited and promoted on merit and representative of the wider NSW community.

Venues NSW has a number of flexible working arrangements to assist employees, including flexible working hours, part-time work and job sharing.

Trends in the Distribution of Workforce Diversity GroupsThe Distribution Index is not calculated where Workforce Diversity group or non-Workforce Diversity group numbers are less than 20. This applies to all categories for Venues NSW.

12.6% of Venues NSW employee related expenditure in the 2015-16 financial year was related to senior executives.

Exceptional movements in Wages, Salaries and AllowancesThe Crown Employees (Public Sector – Salaries 2008) Award was varied to provide for a 2.5% increase in salaries effective from the first full pay period after 3 July 2015.

The Illawarra Venues Authority Australian Workers (State) Award 2011 was rescinded and replaced with the Office of Sport WIN Sports and Entertainment Centres Australian Workers Union (State) Award 2015. It was varied to provide for a 2.5% increase in salaries effective from the first full pay period after 25 September 2015.

The Statutory and Other Offices Remuneration Tribunal issued a determination for an increase of 2.5% for the remuneration package ranges for Public Service Senior Executive bands, effective on and from 1 July 2015.

The new Venues NSW Award 2015 was approved (14 December 2015). It consolidated conditions of employment for both Pirtek and Hunter Stadiums and provided for a 2.5% salary increase for staff at above locations.

Personnel Policies and PracticesDuring 2015-16 the Office of Sport commenced a review of all personnel policies and practices to ensure compliance with the provisions of the Government Sector Employment Act 2013, taking into account the structural changes arising from the formation of the Office of Sport and its related entities.

The new Performance Development Procedures and framework was put in place in September 2015. A new Probation

Trends in the Representation of Workforce Diversity Groups

Workforce Diversity GroupBenchmark/

Target 2014 2015 2016

Women 50% 50.0% 52.0% 45.8%

Aboriginal People and Torres Strait Islanders 2.6% 3.8% 4.0% 0.0%

People whose First Language Spoken as a Child was not English 19.0% 7.7% 8.0% 8.3%

People with a Disability No target 0.0% 0.0% 0.0%

People with a Disability Requiring Work-Related Adjustment No target 0.0% 0.0% 0.0%



Workplace Health and SafetyVenues NSW works in conjunction with the Office of Sport’s Work Health and Safety Team to ensure the safety of all staff, contractors, clients and visitors.

Following the establishment of the Office of Sport’s Work Health Safety function in 2014-15, work has continued on implementing key policies and controls to build the foundations of the Office’s Health and Safety Management system. Venues NSW is committed to protecting the health, safety and welfare of all staff, contractors, clients and visitors in the workplace. This is achieved through ongoing workplace consultation and integrating best practice occupational systems and processes into all aspects of our planning and operations.

WHS matters are also included routinely in staff meetings, where representatives of all departments meet and discuss their workplace. The WIN Sports and Entertainment Centres continues to use the

WHS Open Forum as the principal means of ensuring workplace consultation and high levels of workplace health and safety.

A risk assessment is produced for events using a methodology developed specifically for the venues, events and sporting industry. In addition to assessing and controlling business and event related risks, this program allows for the recording and analysis of incidents and benchmarking industry risks and incident statistics against other relevant industry users.

Training for staff and event related contractors to refresh and update on stadium evacuation drills and risk training was undertaken during the period.

In 2016-17, Venues NSW will continue to work with the Office of Sport in updating the WHS Strategy and management system with a view to improving WHS performance.

An audit of Crisis and Emergency planning arrangements was undertaken in 2015-16 and Emergency Action Plans and associated WHS plans for the Venues updated.

Prosecutions under the Work Health and Safety Act 2011No prosecution action has been taken against Venues NSW in 2015-16. Venues NSW had the following workplace accidents and/or injuries during the reporting period:

Workplace Health and Safety Accidents & Injuries 2015-16

Reported workplace accidents

5

Lost time injuries 1

Appendix 2

Appendix 3Legal changeThe Sporting Venues Authorities Regulation 2014 was amended with effect from 8 April 2016. Where previously the Regulation had provided that a person appointed to a regional sporting venues authority could be re-appointed once only, the regulation now provides that a person can be re-appointed any number of times as long as that member’s total term in office does not exceed 6 years.

Appendix 4PrivacyThe Privacy and Personal Information Protection Act 1998 provides standards for the NSW public sector in regulating the management of personal information. The standards are supported by 12 information protection principles covering the collection, storage, use and disclosure of, and access and alteration of personal information.

Under Part 5 (53) of the Act, a person (applicant) who is aggrieved by the conduct of a public sector agency is entitled to a review of that conduct.

No written applications under Part 5 of the Act were received during the 2015-16 financial year.

The Agency’s Code of Conduct requires employees to maintain confidentiality and identifies the Act as relevant legislation. The Office of Sport website also has a Privacy page.

Appendix 5

Government Information (Public Access)The objectives of the Government Information (Public Access) Act 2009 (GIPA Act) are to maintain and advance a system of responsible and representative democratic Government that is open, accountable, fair and effective.

The GIPA Act: » authorises and encourages the

proactive release of information by NSW public sector agencies

» gives members of the public a legally enforceable right to access government information

» ensures that access to government information is restricted only when there is an overriding public interest against releasing that information.

During the period Venues NSW conducted a review of the information that it makes publicly available. As a result, additional information was made publicly available on the following websites: » www.venuesnsw.com

(the main portal for Venues NSW) » www.pirtekstadium.com

(Pirtek Stadium website) » www.hunterstadium.com

(Hunter Stadium website) » www.wsec.com.au (WIN Stadium and

WIN Entertainment Centre website) » www.nec.net.au (Newcastle

Entertainment Centre website)

During the reporting period Venues NSW

received one formal access application (including withdrawn applications). It was received from a Member of Parliament and access was granted in part. It was decided within the statutory timeframe of 20 days plus any extensions.

Applications for information requested under the GIPA Act should be addressed to:

Right to Information OfficerOffice of SportLocked Bag 1422SILVERWATER NSW 2128

Office LocationVenues NSWO’Connell St, Parramatta, NSW 2150

Appendix 6Audit and Risk Risk Management

In line with the Treasury Policy papers TPP 15-03 and TPP 12-03, Venues NSW operated an Audit and Risk Committee using a Treasury approved shared arrangement with the Office of Sport for 2015-16.

During the year the Audit and Risk Committee has overseen, monitored and reported on Venues NSW Governance, Risk and Control Issues affecting its operations to achieve a level of assurance equivalent to the requirements of the policy.

Key elements of the Venues NSW audit and risk management framework in place during 2015-16 included:

» an Audit and Risk Committee with an independent chair and independent members to oversee the internal audit

program for Venues NSW and monitor issues arising from internal and external audit recommendations

» regular Board review of the Venues NSW Risk Register

In accordance with the internal audit plan Deloitte conducted the following internal audits of Venues NSW operations:

» Credit card, travel and petty cash

» Venues Crisis and Emergency Plans

Audit and Risk Committee

For the period, the Venues NSW Audit and Risk Committee discussed audit and risk matters at its meetings held on 23 July 2015, 11 September 2015, 11 December 2015, 7 March 2016 and 1 June 2016.

Insurance

Venues NSW manages insurable risk by insurance provided as part of the NSW Treasury Managed Fund (TMF).

TMF is a government-wide self-insurance scheme that provides a systematic and coordinated approach to risk management. Under this scheme benchmarking is used to gauge risk management with premiums set by a combination of benchmarks and claims experience.

Venues NSW has full workers’ compensation, motor vehicle, property, liability and miscellaneous cover provided by TMF.

Staff at the Newcastle Entertainment Centre and Showground are employees of AEG Ogden and are covered under a separate workers’ compensation policy.



Appendix 7 Appendix 8

Customer feedbackVenues NSW is committed to ensuring that it provides facilities and services that meet the needs and expectations of individuals and community groups who visit our venues each year.

Local Venues Councils operate in the Hunter, Western Sydney and Illawarra to provide advice to the Board and ensure that local communities continue to be closely involved in the way our venues operate.

We also encourage the community to provide feedback through our online channels. Each venue is contactable through its website, email address and social media accounts such as Twitter and Facebook.

Customer surveys are conducted periodically to obtain feedback on satisfaction levels at our venues.

Expenditure on Consultants

Consultants Amount

Consultants expenditure in 2015-16

$11,000.00

Appendix 9

Payment of accountsOutstanding invoices by timeframe at the end of each quarter:

Current (within due date) $’000

Less than 30 days overdue $’000

Between 30 and 60 days overdue $’000

Between 60 and 90 days overdue $’000

Quarter 2015/16 2015/16 2015/16 2015/16

Sep-15 $2,543,918 $312,291 $148,179 $58,343

Dec-15 $2,011,862 $853,016 $42,560 $61,035

Mar-16 $3,472,685 $1,486,174 $64,536 $89,097

Jun-16 $3,787,069 $481,658 $62,841 $22,331

Accounts paid on time at the end of the quarter:

Target (% paid on time)

Actual (% paid on time)

Accounts paid on time $’000

Accounts due for payment $’000

Quarter 2015/16 2015/16 2015/16 2015/16

Sep-15 100% 83% $2,543,918 $3,062,731

Dec-15 100% 68% $2,011,861 $2,968,473

Mar-16 100% 68% $3,472,685 $5,112,492

Jun-16 100% 87% $3,787,069 $4,353,899

Venue NSW aims to pay 100% of accounts on time. Delays in processing accounts arose due to queries in relation to goods received and invoices. No interest was paid on overdue amounts.

Internal Audit and Risk Management Attestation Statement for the 2015-2016 Financial Year for Venues NSW

I, John Quayle, Chair of Venues NSW Board, am ofthe opinion that Venues NSW has internal audit and risk management processes in operation that are compliant with the eight (8) core requirements set out in the Internal Audit and Risk Management Policy for the NSW Public Sector, specifically:

Core Requirements

For each requirement, please specify whether compliant,

non-compliant, or in transition

Risk Management Framework

1.1 The agency head is ultimately responsible and accountable for risk management in the agency Compliant

1.2 A risk management framework that is appropriate to the agency has been established and maintained and the framework is consistent with AS/NZS ISO 31 00012009

Compliant

Internal Audit Function

2.1 An internal audit function has been established and maintained Compliant

2.2 The operation ofthe internal audit function is consistent with the International Standards for the Professional Practice of Intemal Auditing

Compliant

2.3 The agency has an Internal Audit Charter that is consistent with the content of the ‘model charter’

Compliant

Audit and Risk Committee

3.1 An independent Audit and Risk Committee with appropriate expertise has been established Compliant

3.2 The Audit and Risk Committee is an advisory committee providing assistance to the agency head on the agency’s governance processes, risk management and control frameworks, and its external accountability obligations

Compliant

3.3 The Audit and Risk Committee has a Charter that is consistent with the content of the ‘model charter’

Compliant

Membership

The chair and members of the Audit and Risk Committee are:

» Independent Chair, Jason Masters, 8/1/15 to 8/1/18 » Independent Member 1, Jim Mitchell, 8/1/15 to 8/1/19 » Independent Member 2, Gabrielle Trainor, 8/1/15 to 8/1/19

This Audit and Risk Committee has been established under a Treasury approved shared arrangement with the following departments/statutory bodies:

» Office of Sport (OoS) » State Sporting Venues Authority (SSVA)

John Quayle Chair, Venues NSW Board In accordance with a resolution of the Goveming Board 15 September 2016



Appendix 10

Annual Report availability and production costThe Venues NSW 2015-16 Annual Report is available in electronic format and can be downloaded from the Venues NSW website at www.venuesnsw.com.

The Annual Report was produced at a cost of $7,500.

Appendix 11Credit card useThe Executive Director certifies that the credit card use in Venues NSW has been conducted in accordance with relevant Premier’s Memoranda and Treasury guidelines. There were no irregularities during the reporting period.

Appendix 12Investment performanceFunds were invested in Bank Term Deposits. The annual return on the term deposits was 2.48%.

Appendix 13Overseas travelLuke Coleman, Director Pirtek Stadium, attended the Asia Pacific Stadia and Arena Conference, Singapore, September 29 to October 1 2015. The conference addressed contemporary issues in sports venues design, build, management, operations and technology.

Appendix 14

Digital Information Security Annual Attestation Statement I, John Quayle, am of the opinion that Venues NSW had an Information Security Management System in place during the financial year being reported on that was consistent with the principles and intent of the Core Requirements set out in the NSW Government Digital Information Security Policy taking into account the business requirements of Venues NSW.

In 2014 -15 the Office of Sport developed and had audited, by an Accredited Third party, an autonomous Information Security Management System aligned with the ISO27001 Information technology – Security techniques – Information security management systems – Requirements standard and the core requirements as set out in the NSW Government Digital Information Security Policy.

Assurance has been provided by the Office of Sport who was the main information and communications technology services provider for Venues NSW during the period that the controls in place to mitigate identified risks to the digital information and digital information systems of Venues NSW were adequate.

There is no agency under the control of Venues NSW which is required to develop an independent ISMS in accordance with the NSW Government Digital Information Security Policy.

15 September 2016

Appendix 15

Venue Management Team

Chris Allen Chief Operating Officer

Chris Allen joined Venues NSW in June 2015. Prior to this appointment Chris held senior executive positions

in both the Commonwealth public service and NSW public service, including as Sheriff of New South Wales and Acting Assistant Secretary, Classification Branch. As Sheriff of NSW, Chris was responsible for 400 staff located at sixty sites across the state and a budget of $35 million. Prior to this Chris was appointed Head of Security at the Sydney Opera House tasked with upgrading public safety and security strategies at the iconic, heritage listed site with 4 million visitors annually. He was responsible for the security of the Opera House through multiple seasons of Australian Idol, the Forbes 500 Conference and APEC 2007. His formative years were spent as an army officer predominantly within airborne forces, retiring at the rank of Major. He is a published author of fiction and a regular speaker at local and national writing events.

Luke Coleman Director Pirtek Stadium Parramatta

Luke Coleman has been the Director of Parramatta Stadium since February 2006. Prior to this appointment he held senior executive positions in the event, entertainment and music

industries in Australia and the UK having spent nearly 10 years based in London.

Luke has overseen major projects for Venues NSW including the upgrade project at Pirtek Stadium.

Luke has also presided over the finalisation of commercial arrangements across Venues NSW including ticketing, catering and beverage rights during his tenure.

Stuart BarnesGeneral Manager WIN Sports and Entertainment Centres Wollongong

Stuart Barnes is the General Manager of the WIN Sports and Entertainment Centres in Wollongong having overseen the establishment of the venues and their operational set-up in 1998. Since that

time he has also overseen the construction of the WIN Stadium Northern Grandstand and the Western Grandstand.

Stuart’s recent and current professional and community involvement includes membership of the Boards of the Illawarra Business Chamber, Tourism Wollongong, Wollongong City Employment and Training, as Chair, the Venue Managers Association of Australasia and St Mary’s Star of the Sea College where he is currently Deputy Chair.

Stuart is a Certified Facilities Executive and his qualifications include Diplomas in Education and Public Sector Management and a Graduate Diploma in Public Administration.

Chris Blanch General Manager Newcastle Entertainment Centre and Showground

Chris Blanch is the General Manager of the AEG Ogden managed Newcastle Entertainment Centre and Showground. Chris is a qualified accountant with a Bachelor of Commerce degree and

had an extensive career in public accounting prior to facility management.

In 1997 Chris joined the Newcastle Entertainment Centre as Assistant Accountant progressing soon after to Business Manager. Following a restructure in 2000, Chris was appointed Centre Manager and advanced to General Manager in 2002. Chris is a graduate of the Venue Management School.

Bicci Henderson General Manager Hunter Stadium Newcastle

Bicci Henderson is the General Manager of Hunter Venues. He is a veteran of the entertainment and event industry with over 31 years’ experience working with some of the world’s top musicians and

actors in Australia and overseas.

Bicci’s experience encompasses artist management, concert touring, producing records and theatre shows, managing theatres, producing corporate events, and contract negotiations.

Prior to his role at Venues NSW Bicci was the General Manager of Entertainment at Sydney’s Star City Casino. He is a member of the Venue Management Association (VMA) and Live Performance Australia.



Local Venues Councils Meeting dates and member profilesHunter Local Venues CouncilDuring 2015-16, the Hunter Local Venues Council met eight times on the following dates:

20th July 2015 10th August 2015 11th September 2015 12th October 2015 9th November 2015 14th December 2015 11th January 2016 14th March 2016 11th April 2016 9th May 2016

Council members are

Glenn Turner Chair

Glenn was the Chair of the former Hunter Region Sporting Venues Authority. He has a long experience as Chair and CEO in many industries including as current Chair of the Hunter Medical Research Institute. Glenn had a thirty-year career at senior executive level in the mining services, manufacturing, engineering and construction sectors in Australia, as well as USA, China, South America, South Africa and India. He occupies non-executive roles in public and private companies in a variety of industry and services sectors.

Catherine (Cathy) TateCathy was a member of the former Hunter Region Sporting Venues Authority. She has also been a supporter and/or patron of many sporting groups in the Hunter including Newcastle Netball, Wests Netball, Newcastle Rowing, Newcastle District Women’s Bowling Association and Hunter Surf Life Saving. Cathy is Chair of the Calvary Mater Hospital’s Community Advisory Council and a former member of the Hunter Academy of Sport Board. Catherine has also been active with a number of charities including the Salvation Army, Lifeline and Samaritans. Professionally she has been a TAFE communication teacher.

Keith LynchKeith was a member of the former Hunter Region Sporting Venues Authority. He has also held senior executive positions in engineering and shipbuilding in the Hunter region and was the chair of NIB Holdings Limited. He previously held the position of Chair, Kip McGrath Education Centres Ltd. Keith chairs Newcastle Grammar School Ltd and the not-for-profit charitable organisation, nib Foundation.

Martene ArcherMartene has over 20 years’ experience in the energy and health sectors and is currently working in higher education at the University of Newcastle focusing on governance, legal, risk and compliance. Martene has previously held roles responsible for managing business and community partnerships across the Hunter region including sponsorships with the Newcastle Knights and (now) Hunter Stadium and has facilitated network infrastructure development for facilities within the stadium precinct, particularly expansion of the Newcastle Hockey Club.

(Edward) Leigh MaughanLeigh is a Lifetime Member, co-founder and the number one ticket holder of the Newcastle Knights Rugby League Club and a former director of the Newcastle Knights Members’ Club Limited. Leigh has held various positions in television and radio as a sports broadcaster and currently he is the former Executive Marketing Manager for the Hunter Prostate Cancer Alliance and was the former Honorary Secretary of the Hunter International Sport Centre Trust for ten years. Leigh was also the licensee/club manager of the licenced club at the Hunter International Sport Centre for much of those ten years.

Appendix 16

Illawarra Local Venues CouncilDuring 2015-16, the Illawarra Local Venues Council met six times on the following dates:

8 July 2014 7 October 2014 3 December 2014 3 February 2016 6 April 2016 22 June 2016

Council members are

Vicki Tiegs Chair

Vicki was a member of the former Illawarra Venues Authority and Wollongong Sportsground Trust. She has held sport and tourism positions including Director and Life Member of Destination Wollongong and Director of the Illawarra Academy of Sport. Vicki has also worked closely with the National Breast Cancer Foundation, Legacy, Farmhand and the Australian Red Cross. She is currently a partner in Waples Marketing Group and Bluejuice Events and is a former media executive with a background in marketing.

Glenda PapacGlenda has been the practice manager at Tony Papac and Associates since 1994. She also serves as a Director of Illawarra Women in Business (from 2007), Director of Horizon Credit Union (from 2010) and a member of the Illawarra Salvation Army Advisory Board Illawarra (from 2008).

Wayne MorrisWayne is a retired chief executive. He was previously the Chief Executive Officer of IMB Limited from 1999 – 2007, Wollongong Hawks Basketball Ltd from 2009 - 2011 and Churches of Christ Property Trust from 2011-2014. He was formerly a Director of Newcastle Permanent Building Society, ABACUS Australian Mutuals, Illawarra Regional Information Service (IRIS), Chair of the Australian Association of Permanent Building Societies and a member of the National Basketball League Commission. He is currently Chair of Illawarra Performing Arts Centre Ltd (t/as Merrigong Theatre Co), a Director of Wollongong City of Innovation Limited (t/as Destination Wollongong), Warrigal Care Limited, Living Sound Broadcasters Ltd (t/as Pulse 941), Wollongong Conservatorium of Music Ltd and Chair of Wollongong Symphony Orchestra Foundation Ltd.

Craig OsborneCraig is the Managing Partner of RMB Lawyers and CEO of Unison Outsourcing Pty Limited. Craig currently serves on the Illawarra Regional Development Board, is a mentor for the “iAccelerate” initiative designed to support students and staff of the University of Wollongong and the greater Illawarra Community to build an innovation ecosystem, is a member of the University of Wollongong’s Law School Advisory Board, is a member of The Illawarra Grammar School’s Foundation, heads the Football South Coast’s General Purposes Tribunal and a passionate ambassador for the Port Kembla Revitalisation Project.

Craig has also been the Chairman of the Wollongong Wolves Football Club and a board member of Lifeline South Coast. Craig supports a number of charities including having served as the Chair of the Illawarra Health Service’s Palliative Care Appeal and the Chair of the Illawarra Area Health Service’s Golden Hour Appeal.

Craig was awarded Illawarra Business Chamber’s Business Person of the Year in 2007 and 2009.



Western Sydney Local Venues CouncilDuring 2015-16 the Western Sydney Local Venues Council met once on the following date: 6 October 2015 – Business After 5 Meeting of Parramatta Chamber of Commerce.

Council members are

Craig Gallagher Chair

Craig is the former Chair of the Parramatta Stadium Trust. He was also a trustee of the State Sports Centre for 15 years. Craig served on both trusts as Chair of the finance and audit committee for many years. Craig is a consultant at Hunt & Hunt Lawyers North Ryde and practices in the property, estate planning, commercial law and commercial litigation areas and has acted for many clients within the Parramatta Local Council area for a period of almost 33 years. Craig is a long serving member of Epping Rotary and a Director of Bendigo Community Bank North Epping. He is also a Director of the Centre for Disability Studies at Sydney University.

Mark BirkinshawMark is a Director of Transport Ideas, a Sydney based professional services consultancy practice. Mark has more than 30 years’ experience in passenger transport, freight logistics and management consulting across government and private sector organisations. Mark’s career covers national and international experience in business development, commercialisation, innovation and consulting. Mark is a past State Chairman and current Fellow of The Chartered Institute of Logistics and Transport Australia. Mark is a passionate fan of the Western Sydney Wanderers, fond supporter of the Parramatta Eels and active in consulting the community on their needs for Western Sydney venues.

Ern PhangErn is a lawyer with Phang Legal, a Parramatta law firm and practises mainly in property law and business law. Ern is also an experienced Director and Company Secretary having served on the boards of not for profit organisations in Sydney and Melbourne. Ern is a past recipient of the Sydney Mid-West Volunteer of the Year Award and Law Society President’s Award for his work within the local community. Ern brings his passion for people and Western Sydney, as well as his legal expertise and commercial acumen to the role on the Western Sydney Local Venues Council.

Appendix 16 (cont)

Local Venues Councils Meeting dates and member profiles

Karen GregaIn February 2016 Karen was appointed CEO of the Cruising Yacht Club of Australia – Home for the Rolex Sydney Hobart Yacht Race. Prior to this she was CEO of the Sydney Olympic Park Business Association for over nine years, working collaboratively with major Park venues and local businesses. Her sporting experience includes CEO of the inaugural Maccabi Australia International Games, commercial management roles with the International Cricket Council and Scottish Premier League Club, Dunfermline Athletic FC, Acting Media Manager with Sydney FC in the A-League and various General Manager roles with the Sydney Cricket and Sports Ground Trust. Karen has a Bachelor of Business Communications degree and is a former lecturer at the Venue Management Association (VMA) Venue Management School.

Jim TaggartJim has a Masters Degree in Commerce, a Masters degree in Education and is currently completing a Masters Degree in Applied Finance from Charles Sturt University. He holds a Doctorate in Business Administration from Southern Cross University and a Diploma in Teaching. He is an adjunct professor of Notre Dame University and Western Sydney University. Jim has lived in the Hills District for more than 32 years and has been actively involved in a wide range of community activities including the Chair of the Salvation Army’s Red Shield Appeal for Western Sydney. Currently, Jim is the Deputy Chair of Regional Development Australia, a Federal and State appointment. He is also Chairman of two private companies located in Australia. He is a past Chair of the Sydney Hills Business Chamber. Jim sold his business in 2012 and now spends much time working in a number of key areas of business, community and charity.



IndexAnnual Report Availability 66

Appendices 60

Attendance: Board Meetings 13

Audit and Risk 63

Board Members 12

Chair’s Report 04

Consultants 65

Contact Information Inside Cover

Corporate Governance 12

Credit Card Use 66

Customer Feedback 65

Executive Director’s Report 05

Events 14

Financial Statements

» Newcastle International Sports Centre Club 54

» Venues NSW 28

Government Information (Public Access) 63

Highlights 06

Human Resources 60

Independent Auditor’s Report

» Newcastle International Sports Centre Club 52

» Venues NSW 26

Investment Performance 66

Legislation 62

Local Venues Council 68

» Hunter 68

» Illawarra 69

» Western Sydney 70

Objectives 12

Organisation Chart 13

Payment of Accounts 65

Performance

» Utilisation 14

» Sustainability 20

» Community 22

» Operations 24

Privacy 62

Venue Management Team 66

Workforce Diversity 61

Workplace Health and Safety 62

VENUES NSW ANNUAL REPORT 2015-201672


Venues NSWStreet address: O’Connell St, Parramatta, NSW 2150Postal address: PO Box 2471, North Parramatta, NSW 1750

Telephone: (02) 8754 7979E-mail: [email protected] 26 283 293 435

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