DPI Complex Corner of Koorlong Avenue and Eleventh Street ...

The Mallee Catchment Management Authority’s main office is located in Irymple, on the outskirts of Mildura. Other offices are located in Ouyen, Swan Hill, Piangil and Birchip.

For more information on the Mallee CMA or our programs, please contact us:

In person: DPI Complex Corner of Koorlong Avenue and Eleventh Street IRYMPLE.

By post: PO Box 5017 MILDURA VIC 3502

Or via: Phone: 03 5051 4377 Fax: 03 5051 4379 Website: www.malleecma.vic.gov.au

Front cover image: Purple Swamp Hen. Photo: Mallee CMA.

© State of Victoria, Mallee Catchment Management Authority 2012. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

ISSN: 1833-0924

The Mallee Catchment Management Authority (CMA)

Vision

Informed Mallee communities protecting and enhancing our natural resources.

Mission

To ensure natural resources in the region are managed in an integrated and ecologically sustainable way and in accordance with our community’s expectations.

Values

Responsiveness – Board, management and staff should demonstrate responsiveness by:

• Providing frank, impartial and timely advice; • Providing high quality services to the community; and • Identifying and promoting best practice.

Integrity – Board, management and staff should demonstrate integrity by:

• Being honest, open and transparent in their dealings; • Reporting improper conduct; • Avoiding any real or apparent conflicts of interest; and • Striving to earn and sustain public trust of a high level.

Impartiality – Board, management and staff should demonstrate impartiality by:

• Making decisions and providing advice on merit and without bias, caprice, favouritism or self-interest;

• Acting fairly by objectively considering all relevant facts and fair criteria; and • Implementing the Mallee CMA policies and programs equitably.

Accountability – Board, management and staff should demonstrate accountability by:

• Working to clear objectives in a transparent manner; • Accepting responsibility for their decisions and actions; • Seeking to achieve best use of resources; and • Submitting to appropriate scrutiny.

Respect – Board, management and staff should demonstrate respect for colleagues and members of the community by:

• Treating them fairly and objectively; • Ensuring freedom from discrimination, harassment and bullying; and • Using their views to improve outcomes on an ongoing basis.

Leadership – Board, management and staff should demonstrate leadership by actively implementing, promoting and supporting these values and behaviours at both an individual level and within the team environment.

Human Rights – Board, management and staff should respect and promote the human rights set out in the Charter of Human Rights and Responsibilities by:

• Making decisions and providing advice consistent with human rights; • Actively implementing, promoting and supporting human rights; and • Freedom, Respect, Equality, Dignity (FRED).

Table of contents

Part 1 Report of Operations 1

Section 1 – Year in Review 1

Chair’s report 2

Highlights 3

Objectives, functions, powers and duties 4

Manner of establishment and responsible Minister 6

Nature and range of services provided 6

Operational and budgetary objectives 7

Summary of financial objectives 12

Catchment Condition Report 14

Map of management activity locations 16

Biodiversity 17

Inland Aquatic Ecosystems 19

Land Health 22

Community Capacity 24

Environmental Stewardship 27

Section 2 – Governance and organisational structure 29

Mallee CMA Organisational Structure 30

Mallee CMA Board 31

Board Committees 34

Operational Structure 40

Planning framework 42

Occupational Health and Safety Policy 43

Employment and conduct principles 44

Section 3 – Workforce Data 46

Executive Officer disclosures 46

Section 4 – Other disclosures 48

Part 2 Financial Statements 60

Section 5 – Financial Statements 60

Section 6 – Appendices 97

Appendix 1 – Disclosure Index 97

Appendix 2 – Mallee CMA Whistleblowers Policy 100

Part 1 Report of Operations

Section 1 – Year in Review

1

Chair’s report

The 2011-12 year was a challenging, but productive year that once again showed the resilience of the people in the Victorian Mallee.

Together with local community organisations such as the resurgent Landcare movement, partner organisations and government agencies, the Mallee Catchment Management Authority (CMA) delivered an investment program that was tailored to support the region’s capacity to cope with the extreme climatic events it experienced.

During the reporting period, the long-term drought was broken by record breaking rains. While that may sound idyllic, the effect of such intense rainfall over a short period of time was devastating for the region’s highly productive irrigation farming sector, as well as important environmental assets. This intense rainfall affected the region by significantly changing the landscape, ecological processes, habitat conditions and water flow regimes.

The tightly integrated approach of the Mallee CMA’s 2011-12 investment program built upon the outstanding foundational work delivered through previous years and was delivered through three strategically structured programs, covering the key areas of Land and Biodiversity, Regional Sustainability, and Rivers and Wetlands.

Each program’s asset-based approach resulted in a highly targeted investment proposal that was in line with the priorities of the Victorian Investment Framework and delivered to support relevant regional strategies and plans, while maximising opportunities for integration across programs. This integration maximised the value of the investment by contributing to and delivering multiple benefits and outcomes.

This delivery of natural resource management was underpinned by high levels of community engagement through community advisory committees, community events focusing on natural resource management, and through community based programs that helped to foster community ownership and commitment to national, state and regional priorities for the environment.

During 2011-12, the Mallee CMA worked with the community to continue to support sustainable farming practices alongside the ongoing protection and enhancement of the Victorian Mallee’s natural environment. Together, we have achieved outcomes we can be proud of, while laying sound foundations for future work.

In accordance with the Financial Management Act 1994, we are pleased to present the report of Operations for the Mallee CMA for the year ending 30 June 2012.

Sharyon Peart

Mallee CMA Chair

21 August 2012

2

Highlights

Establishing the Mallee Flood Recovery Environmental Employment Program, as part of the Victorian Government’s Flood Employment Program.

The program employed 48 flood affected irrigators on a part time casual basis with participants completing 37,126 hours of paid work to deliver a range of natural resource management outcomes; and 45 employees undertaking 3,926 hours of training.

This provided opportunities for participants to increase their work skills and qualifications, while also exposing them to environmental programs and increasing their awareness of the importance and value of the natural environment and cultural heritage values.

Working with Indigenous people in natural resource management.

The formation of the Mallee CMA’s Aboriginal Reference Group (ARG) is providing a forum for Mallee Indigenous communities to have input into regional natural resource management programs.

The ARG provided input into the renewal of the Mallee Regional Catchment Strategy and oversaw a Traditional Indigenous Ecological Knowledge project funded by Caring for Our Country.

The reinvigoration of Landcare in the Victorian Mallee with five facilitators employed through the Victorian Landcare Facilitator Initiative.

The positive impacts of this recent initiative are already evident with the region’s Landcare community actively engaged in identifying, planning and implementing of local and regional natural resource management priorities.

The effectiveness of Environmental Management Action Planning (EMAP) in building community capacity for both the planning and implementation of NRM activities.

A combined effort between landholders and local organisations across the Victorian Mallee has achieved over one million hectares of agricultural land with environmental management plans and associated action plans since the program commenced.

3

Objectives, functions, powers and duties

The Mallee Catchment Management Authority’s primary responsibility is to ensure that natural resources in the Victorian Mallee are managed in an integrated and ecologically sustainable way.

The work of the Mallee CMA is based on science and delivered through meaningful partnerships with the community, including local organisations and volunteer groups, as well as government agencies.

The Mallee CMA has four main business undertakings:

• Policy and strategy; • Regional investment; • Implementation and partnership; and • Monitoring, evaluating, reporting and improvement.

Each one is explained in further detail below.

Undertaking 1: Policy and strategy

Objective: To develop regional natural resource management policy, plans and strategies in consultation with the community and in alignment with the Victorian and Australian governments’ policies.

Community engagement is achieved by liaising with the Mallee CMA’s two advisory committees – the Mallee Lands Community Advisory Committee and the Mallee Irrigation and Environment Community Advisory Committee – as well as through community-focused natural resource management events and programs.

Strategy and planning development occur at a number of different levels:

Regional Catchment Strategy (RCS): The RCS provides the strategic framework for the management of natural resources in the region and provides alignment with wider State and Federal strategies and policies; and

Regional sub-strategies (e.g. Land and Water Management Plan, Mallee River Health Strategy (2006), Mallee Wetland Strategy (2006); and sub-action plans such as the Murray River Frontage Action Plans and rabbit and weed action plans).

The Mallee CMA also relies on technical advisory committees to provide professional and technical input into policy and strategy development, such as the:

• River and Wetland Technical Advisory Committee; • Biodiversity Technical Advisory Committee; • Land Technical Advisory Committee; • Water Technical Advisory Committee; • Mallee Soils Expert Panel; and • Mallee Hydrogeological Expert Panel.

Undertaking 2: Regional investment.

Objective: To obtain funding for priority natural resource management programs.

The activities of the Mallee CMA are primarily funded by the Victorian and Australian governments, through the annual Regional Investment Planning process. Funding over recent years has come from:

• Victorian Investment Framework; • Annual State government funding programs; • The Murray-Darling Basin Authority’s The Living Murray program; • National and State water initiatives; • Caring for Our Country; and • Salinity and environmental levies.

4

Undertaking 3: Implementation and partnership

Objective: To manage delivery of natural resource management programs.

The Mallee CMA delivers projects primarily through partnerships with community organisations/groups, service providers and/or land and water managers (both public and private).

Key focus areas include:

• Water management; • Floodplain management; • Water quality education; • Community engagement programs; • Cultural heritage; and • Salinity and water quality activities.

The Authority’s Executive Management Team provides advice on project management, with the cost of project management covered by an internal corporate charge levied on all projects. The Mallee CMA also draws on advice and feedback about programs from its two community advisory committees and its Aboriginal Reference Group. Professional and technical input into project delivery is obtained through the technical advisory committees.

Undertaking 4: Monitoring, evaluating, reporting and improvement

Objective: To monitor, evaluate and report on outputs and outcomes of programs and projects to inform and improve future investment decisions.

This business undertaking includes, but is not limited to:

• Biophysical condition monitoring; • Catchment condition evaluation and reporting; • Evaluation and reporting of project delivery and intervention; • Monthly reporting to the Board; • Evaluating performance through the annual reporting process, with strategic planning provided

through the development of each corporate plan; • Reporting to investors in accordance with agreements; and • Provision and maintenance of systems that support the above.

In regard to evaluation and future planning, the community advisory committees play a lead role in advising the Board on what lessons should be drawn from the outcomes of monitoring, and how to amend future policies and strategies to produce more effective outcomes. This process is known as ‘adaptive management’. All projects managed by the Mallee CMA aim to achieve the resource condition outcomes described in the Mallee RCS 2003-2008.

5

Manner of establishment and responsible Minister

The Mallee CMA was established in 1997 by the Victorian government under the Catchment and Land Protection Act 1994 (CaLP Act).

The Mallee CMA also has statutory functions under Part 10 of the Water Act 1989.

The responsible Ministers during the 2011/2012 reporting period were The Hon. Ryan Smith MP, Minister for Environment and Climate Change and Peter Walsh MLA, Minister for Water.

Responsibilities and duties of the Mallee CMA are established under sections 12 and 16 of the CaLP Act and are as follows:

• To prepare a Regional Catchment Strategy (RCS) and special area plans for the region and coordinate and monitor their implementation to promote cooperation of persons and bodies involved in land and water management in the area;

• To advise the Ministers on regional priorities for integrated management of land and water, matters relating to catchment management and land protection and on the condition of land and water resources in the region;

• To promote community understanding and awareness of the importance of land and water resources to enhance the sustainable use, conservation and rehabilitation of these resources; and

• To make recommendations to the Ministers about the funding of the implementation of the RCS and special area plans and actions to be taken on Crown land.

The responsibilities of the Mallee CMA in relation to the Water Act 1989 are:

• Statutory planning; • Flood response; • Victorian Civil and Administrative Tribunal (VCAT) appeals; • Delivery against the Ministerial Determinations for Water Use Objectives; and • The operational management of the Environmental Water Reserve.

Nature and range of services provided

The Mallee CMA region covers 3.9 million hectares, which is approximately one fifth of Victoria. It is the largest catchment area in the state and runs along the Murray River from Nyah to the South Australian border, through areas of high-value irrigated horticulture and national parks, and south through vast dryland cropping areas and public reserves to the Wimmera.

The Mallee CMA’s project responsibilities include the management of:

• Waterways; • Biodiversity (including vegetation restoration and threatened species recovery); • Floodplains; • Salinity; and • Land and soil health.

The Mallee CMA also proudly supports Landcare in the Victorian Mallee, as well as regional funding co-ordination in natural resource management, community involvement and education, cultural heritage, and monitoring and reporting on the health of the catchment.

6

Operational and budgetary objectives

Achievements against the Mallee CMA Corporate Plan

The following key performance indicators (KPIs) represent the Mallee CMA’s commitment to deliver across legislative compliance requirements including the Financial Management Compliance Framework, Water Act Statement of Obligations and the CaLP Act Statement of Obligations.

Performance area

Performance indicators Targets Achievement reporting

Governance

Board performance

Complete and submit an annual Board performance assessment report, according to any Ministerial guidelines issued.

By 31 August annually. Assessment submitted 31 August 2011.

Participation by Board members in development activities.

All Board members participate in development activities.

There is a 90 per cent participation rate of Board members in development activities. Any Board members unable to complete development activities scheduled have been excused by the Board Chair.

Board charter Develop and implement a Board charter that as a minimum:

• Includes a requirement for the regular review of the Board’s effectiveness;

• Establishes appropriate Board committees including a risk and compliance committee;

• Features a provision that the Board will comply with Ministerial guidelines; and

• Requires the Board to monitor the CMA’s financial, social and environmental performance.

A Board charter with these features is established by 31 August 2010.

The Mallee CMA Board Charter of Corporate Governance was developed on 23 June 2006 and last reviewed in July 2010.

Due for review July 2012.

7

Risk and financial management

Compliance to risk management plans for each program.

All programs have risk management plans in place.

Nil non-compliances with risk management plan.

Percentage of programs with risk management plans in place 100%.

Number of non-compliances with risk management plan: nil.

Annual review of governance policies and procedures.

Review all governance policies and procedures by 30 June annually.

Charter of Corporate Governance

27 July 2011

Board Correspondence

29 October 2011

Delegations Policy

19 January 2012

Board Reporting Policy

27 July 2011

Conflict of Interest

25 January 2012

CEO Succession, Recruitment and Appointment

25 January 2012

Efficiency and organisational performance

Expenditure versus budget

Variation of actual to budgeted expenditure for the CMA.

Total actual expenditure is less than or equal to budgeted expenditure.

For each program, actual expenditure is within +/- 10 per cent of the budgeted expenditure.

Total actual expenditure $17,281 against budgeted expenditure $16,254.

Number of programs with actual expenditure more than 10 per cent above the budgeted expenditure: nil

Number of programs with actual expenditure more than 10 per cent below the budgeted expenditure: nil

8

Grant management

Administration costs of grants are minimised.

10 per cent or less of grant funds is spent on administration.

Overall percentage of grant funds spent on administration: 10 per cent.

Number of grants from which more than 10 per cent was spent on administration: nil.

Minimise time taken to determine grant applications.

Grant applications are determined within one month of being received.

Average time taken to determine grant applications was four weeks.

Regulatory waterway/water functions

Number of days to process works on waterways permits.

Not more than 20 working days.

Average number of working days to process permits: 3 days.

Number of permits that took more than 20 working days to process: nil.

Number of days to process referrals for any works on or in relation to a dam.


Average number of working days to process referrals: N/A.

Number of referrals that took more than 20 working days to process: N/A.

Number of days to process referrals from local government on flooding and controls on planning scheme amendments, and planning and building approvals.


Average number of working days to process referrals: 13 days.

Number of referrals that took more than 20 working days to process: 9 referrals.

Number of days to process enquiries from local government and the community on flooding.


Average number of working days to respond to enquiries: 9 days.

Number of enquiries that took more than 20 working days to process: 5.

9

Number of days to process referrals for Water Use Licences that do not meet the standard water-use conditions.


Average number of working days to process referrals was less than 20.

Number of referrals that took more than 20 working days to process: nil

Number of days to process enquiries from Rural Water Corporations on irrigation and drainage plans and seasonal adjustments to annual use limits.


The average number of working days to process referrals was less than 20.


Number of days to process enquiries from Rural Water Corporations issuing Take and Use Licences.


The average number of working days to process referrals was less than 20.


Effectiveness and environmental outcomes

Integrated River Health Management

Revise Regional River Health Strategy to plan for waterways in relation to their economic, social and environmental values.

Regional River Health Strategy revised every six years.

Actual date Regional River Health Strategy was revised: June 2010.

Develop and revise Environmental Operating Strategies and Annual Watering Plans to manage the environmental water reserve in accordance with objectives.

Environmental Operating Strategies developed or revised every five years.

Annual Watering Plans approved for all Environmental Entitlements.

Actual dates Environmental Operating Strategies were developed or revised: January, March, April and May 2012.

Actual date Annual Watering Plans were approved: August 2011.

Implement annual river health programs and activities to improve environmental values and health of water ecosystems.

All annual river health targets and works programs achieved.

Percentage of annual river health targets and works programs achieved: 90 per cent.

10

Regional Catchment Strategy (RCS) implementation

Percentage of RCS annual actions implemented.

All RCS annual actions implemented.

Percentage of RCS annual actions implemented: 90 per cent.

Regional Native Vegetation Plan (RNVP) implementation

Percentage of RNVP annual actions implemented.

All RNVP annual actions implemented.

76 per cent of RNVP annual actions implemented

Invasive plant and animal management

Regional Invasive Plant and Animal Strategies incorporating related priorities in all land tenures in the region.

Invasive Plant and Animal Strategies revised by 30 June every five years.

Revised March 2012

Regional and statutory planning

Provide advice on dryland salinity, irrigation management, soil erosion, or any other land management issue identified in the local Municipal Strategic Statement as the referral body.

Percent of referral responses provided for each issue.

100 per cent of referral responses provided for each issue

Salinity management

Implementation and periodic review of Regional Salinity Management Plans (RSMP) and Land and Water Management Plans (LWMP).

RSMP and LWMP completed.

RSMP and LWMP periodically reviewed.

RSMP and LWMP include annual actions to be implemented.

RSMP and LWMP completed; RSMP and LWMP periodically reviewed; RSMP and LWMP include annual actions to be implemented.

Progress against annual action targets.

All annual RSMP and LWMP actions and targets achieved.

100 per cent of RSMP and LWMP annual actions and targets achieved.

Develop regional salinity targets and corresponding works programs in accordance with the Murray Darling Basin Salinity Agreement (for applicable CMAs only).

All annual salinity targets and works programs achieved.

100 per cent of annual salinity targets and works programs achieved.

Annual report on the allocation and update of salt disposal entitlements submitted to the responsible Minister.

By 31 July annually or as otherwise requested by the responsible Minister.

Annual report was submitted 2 August 2011.

11

Regional Landcare groups, networks and other community groups

Deliver the Regional Landcare Support Strategy, including coordination of Landcare at a regional scale.

Evaluate and revise the strategy every five years.

The strategy is due to be revised in 2013-14; however, it may be revised during 2012-13 to reflect the new direction of Landcare with the implementation of the Victorian Local Landcare Facilitator Initiative, depending on State direction.

12

Summary of financial results

The Mallee CMA receives funding from the Victorian and Australian governments. Funding levels over the past five years can be seen below.

Summary of Financial History (5 years)

2011/12 2010/11 2009/10 2008/09 2007/08

$'000 $'000 $'000 $'000 $'000

Revenue

Commonwealth Government Contributions

3,777 2,724 2,895 10,674 5,020

State Government Contributions

8,196 8,200 8,058 8,437 7,367

Other Revenue 5,050 4,932 6,620 4,982 5,130

Total Revenue 17,023 15,856 17,573 24,093 17,517

Expenditure

Administration 2,726 1,428 1,459 1,317 2,101

Corporate Expenditure

1,203 977 991 1,188 961

Project Expenditure 13,618 11,951 12,405 17,113 16,103

Total Expenditure 17,547 14,356 14,855 19,618 19,165

Assets

Current Assets 27,322 27,518 21,562 18,031 9,821

Non Current Assets 814 745 5,209 6,473 9,757

Total Assets 28,136 28,263 26,771 24,504 19,578

Liabilities

Current Liabilities 1,520 1,154 1,188 1,679 1,163

Non Current Liabilities

164 133 108 68 56

Total Liabilities 1,684 1,287 1,296 1,747 1,219

13

Catchment Condition Report

This Catchment Condition Report aims to highlight the condition of the many natural assets that the Mallee CMA works to protect and enhance.

The operations of the Mallee CMA are conducted under specific units (River and Wetlands, Land and Biodiversity, Regional Sustainability, Corporate Services). However, the following Catchment Condition Report is broken into headline themes, at the direction of the Department of Sustainability and Environment, which is the conduit for Victoria’s Catchment Management Authorities to report to the State and Commonwealth governments.

Overview

Key highlights and challenges for management

Key highlights for the region over the 2011-12 reporting period included:

• Delivery of the Mallee Flood Recovery Environmental Employment Program, as part of the Victorian Government’s Flood Employment Program, which employed 48 flood effected irrigators on a part time casual basis. Participants completed 37,126 hours of paid work and 45 employees undertook 3,926 hours of training under the program;

• The reinvigoration of Landcare in the region with four full time and two part time facilitators employed through the Victorian Landcare Facilitator Initiative;

• The formation of the Mallee CMA’s Aboriginal Reference Group to provide a forum for Indigenous communities to have input into regional natural resource management programs;

• The delivery of 10.8 gigalitres of environmental water to nine wetlands within the Victorian Mallee; the protection of over 2000 ha of floodplains through riparian waterway agreements; and development of 230 management plans for irrigation pump sites on Murray River frontage;

• Selection of 49 wetlands for the Wimmera Mallee Pipeline wetlands project, and the delivery of 22 megalitres to the first two sites;

• The effectiveness of Environmental Management Action Planning (EMAP) in building community capacity for both the planning and implementation of Natural Resource Management (NRM) activities. A combined effort between landholders and local organisations across the Victorian Mallee has achieved over one million hectares of agricultural land with environmental management plans since the program commenced;

• The effectiveness of on-ground research and demonstration sites in the identification, validation and promotion of both production and non production based land management practices which reduce soil erosion and improve soil health on farm, thus facilitating practice change at a scale that will directly address the threat;

• Protection of remnant vegetation along 95 per cent or 80 km of the Tyrrell Creek through fencing and management agreements;

• The targeted implementation of on-ground works to build connectivity and linkages through revegetation programs, as well as enhance and protect existing remnants through stock exclusion fencing;

• Ministerial endorsement of the region’s renewed Land and Water Management Plan (irrigation region), including the renewed regional irrigation development guidelines; and

• Effective partnerships between all sectors of community, industry and government for the integrated and efficient delivery of projects and programs at a local, state, interstate and Australian government level.

Key challenges for the region over the 2011-12 reporting period included:

• Implementing projects in line with agreed timelines in the face of logistical and seasonal challenges, which was addressed and mitigated through negotiation of a flexible and adaptive approach to on-ground works and transparent communication between land managers, project managers and investor representatives;

14

• Identifying sites for permanent protection (conservation covenants) in priority landscapes, with additional measures put in place to encourage landholders to permanently protect priority habitat;

• The ability to foster high-level community engagement in programs by encouraging community/volunteer monitors, which was addressed by integrating community monitoring work into a wider range of projects, for water quality in particular;

• The intricacies and complexities of developing pumping infrastructure capable of delivering to key wetlands in remote locations for improved wetland function. This was achieved by fostering strong working relationships with partner agencies including interstate partners and key stakeholders;

• The ongoing ramifications of severe climatic conditions experienced last season, which resulted in lower than expected crop yields as grape vines and tree crops recovered from inundation and disease outbreaks. Some commodities (including both cereal and horticultural) have also returned poorer financial returns due to market over supply conditions and adverse terms of trade affecting returns for export commodities; and

• The 2011 growing season saw a rapid increase in the area of the Mallee sown to canola, however, problems with poor crop establishment not only cost canola growers in lost production, but also increased the risk of wind erosion as there was little ground cover to protect the soil surface. Work is underway during the 2012 growing season to expand knowledge on critical factors for canola establishment. The results will assist growers to reduce the risks of poor canola establishment and provide critical protection for Mallee soils.

15

Map of Management Activity Locations

Management actions undertaken in the 2011-12 reporting period are mapped according to five headline themes in Figure 1 below.

Figure 1: Location of management actions undertaken for each headline theme.

16

Biodiversity

The headline theme of ‘biodiversity’ relates to activities which aim to improve biodiversity values and condition of ecosystems across the Mallee landscape. Regional projects have focused on improving the quality, extent and connectivity of native vegetation, and threatened species protection, monitoring or research.

Management

Activities undertaken during the reporting period delivered a combination of research, monitoring and on-ground management actions.

Key actions undertaken included:

• The provision of grants and incentives to the Mallee community to support the delivery of targeted on-ground works;

• Fencing 4,654 ha of high value remnant vegetation, removing grazing threats and improving habitat quality;

• The delivery of 135 ha of revegetation using locally indigenous species, improving the extent and quality of priority native habitat;

• The delivery of integrated invasive plant and animal control programs at all works sites; • Monitoring of revegetation works undertaken in the previous 2010-12 reporting period which

determined an average survival rate of 78% (above average rainfall received in the Mallee region during the 6 months prior to planting may have aided in the high survival rate of seedlings);

• Ongoing delivery of integrated monitoring programs to quantify the impact (spatial and temporal) of works on both threat mitigation (short term) and resource (native habitat) condition (long term);

• The delivery of high priority actions at high priority sites for priority threatened species including the: Orange Sun Moth, Desert Greenhood, Arid Bronze Azure Butterfly, Threatened Woodland Birds, Mallee Bird Community, Semi-arid Plains Grassy Woodland and Kneed Swainsona Pea; and

• Ongoing support for the Murray Hardyhead threatened fish species and its successful establishment at Lake Koorlong to now provide three established sites for ongoing protection of the species.

Condition

The biodiversity condition statements below reflect that trends in measures of biodiversity remain largely stable.

Native vegetation quality across the Mallee is considered to be in moderate condition overall with remnant vegetation held within reserves and other public land typically in better condition than that on private land.

Surveys conducted in 2012 show semi-arid, non-eucalypt woodlands in Mallee national parks and reserves were mostly in average condition, with a low rate of recruitment (Kenny S, Moxham C, Cheal D (2012) Mapping of the condition of semi-arid non-eucalypt woodlands in high priority national parks and reserves. Unpublished report for the Mallee Catchment Management Authority, Mildura, Victoria).

Trends in measures of biodiversity condition within major parks and reserves remain stable, if not slightly improving as a result of the removal of grazing some 20 years ago and recent rainfall events. This provides a good indication of the timeframe required for the recovery and restoration of Mallee habitats following the removal of grazing.

Within the more fragmented areas of the landscape, areas of remnant vegetation subject to interventions have also remained generally stable. However, due to continuing threats, declines in some measures of biodiversity condition would be expected within many remnants, especially those where threat mitigation actions have not occurred.

17

Threatened species populations are generally in moderate to poor condition and some are in decline within their constricted ranges. For example, a study of semi-arid woodland birds found the number of woodland blocks where White-browed Treecreepers were present had fallen from 2006 to 2011 (Hurley 2012). A recent study on the Arid Bronze Azure Butterfly revealed that there was no evidence of the butterfly within the formerly occupied area of Pink Lakes. This suggests that the distribution of the butterfly may have contracted, with the remaining known populations restricted to Hattah-Kulkyne National Park and adjacent freehold land (Douglas, F (2012) The distribution of conservation of the Arid Bronze Azure Butterfly in the Mallee area of north-western Victoria. Unpublished report for the Mallee Catchment Management Authority, Mildura, Victoria).

The exceptionally wet spring/summer of 2010-11 has seen an increase in the regeneration of many plant species. For example, a study of non-eucalypt, semi-arid woodlands in Mallee national parks and reserves identified some good recovery of threatened shrubs, including Desert Lantern, Sandhill Spurge, Bush Hibiscus and Spear-fruit Copperburr (Kenny et al 2012). There may, however, be a lag between the recent wet conditions and improvements in the condition of threatened fauna species. Further monitoring is required to investigate how improved conditions have impacted on the state of threatened species overall.

18

Inland Aquatic Ecosystems

The headline theme of ‘inland aquatic ecosystems’ relates to research, monitoring and on-ground interventions which aim to improve rivers, wetlands, estuaries and groundwater, including their physical form, hydrology, vegetation, fauna, and water quality.

Management

Activities undertaken during the reporting period delivered a combination of research, monitoring, and on-ground management actions.


• Implementation of the Mallee Salinity Management Plans, including the implementation of the regional irrigation development guidelines;

• Development of an improved model (Eastern Mallee EM 2.3.1) which increases the accuracy of modelled salinity benefits as a result of improved irrigation efficiency (up to 2007) reducing the groundwater mound under the Sunraysia irrigation districts;

• Delivery of long term monitoring programs including: flow and salinity measures at 15 continuously monitored drainage sites in the Sunraysia district and six spot monthly monitoring sites in Nangiloc-Colignan area, and water level (SWL) and salinity measures for 498 groundwater bores across the Mallee region including dryland, irrigation and floodplain areas;

• Flushing and monitoring of Psyche Bend Lagoon in accordance with Basin Salinity Management Strategy (BSMS) protocols;

• Completion of the triennial horticulture crop report, which indicates that irrigation blocks dried off during the drought are beginning to be returned to production;

• The planning, prioritisation and allocation of irrigation incentives under the 2011 round with the completion of 680 ha of irrigation upgrades on 24 properties, 187 ha of irrigation drainage management plans on 16 properties, and 352 ha of improved irrigation management through the installation of scheduling equipment on 21 properties;

• Environmentally sustainable irrigation development through application of the Mallee Irrigation Development Guidelines, including the review of one new irrigation and drainage management plans, covering 500 ha associated with new irrigation developments;

• Completion of a register to identify all wetlands impacted by irrigation and the development of three site specific wetland management plans to address these irrigation impacts and to complement Environmental Watering Management Plans;

• The delivery of 10.8 gigalitres of environmental water to nine priority wetlands within the Victorian Mallee; assisting to restore appropriate water regimes;

• Commencement of investigations at four sites for additional works and measures to achieve increased environmental outcomes with reduced flows. Sites included Hattah Lakes, Lindsay Island, Wallpolla Island and Murray River channel sites from Vinifera to Kenley. Extra sites were also nominated at meetings with local communities, which have been prioritised and will be considered for future funding opportunities;

• Selection of 49 wetlands for the Wimmera Mallee Pipeline wetlands project, and the delivery of 22 megalitres to the first two sites;

• Development of over 230 management plans for the protection of riparian landscapes and the implementation of associated management actions including: 100 km of track upgrades, 11 ha of pest weed treated or removal including willows, 16 km of fencing, 7.5 km treated for soil erosion, removal of 350 cubic metres of hard rubbish, and the removal of 21 redundant pump sites;

• Works to address the threat of invasive species (rabbits, pigs, foxes and goats) and protect drought refuges at the Ramsar listed Hattah Lakes; and

• Works to address the threats posed by invasive plant and animal species to the environmental values of aquatic ecosystems within high priority non-Ramsar sites.

19

Condition

The state-wide Index of Steam Condition (ISC) measures river condition according to five sub indices (hydrology, physical form, streamside zone, water quality and aquatic life) that contain 19 key indicators, to provide a summary of the extent of change from natural or ideal conditions.

Rivers in the Mallee have been assessed approximately every five years since 1999 using the ISC. The most recent survey in 2004

1 found that of the 57 river reaches assessed, 38 per cent were in

moderate condition and 57 per cent were in poor condition. The general trend in river reach scores to date suggests relatively stable (poor) river health, a significant achievement in light of the climatic conditions experienced by the region over this period. The high number of reaches with poor scores is largely attributable to the hydrology and physical form sub-indices which give poor scores for seasonally regulated flows and physical barriers to flows (such as weirs). Most of the Mallee river reaches are subject to seasonal flow regulation to benefit irrigated agriculture and many are under the influence of weirs.

The Index of Wetland Condition (IWC) is designed to identify significant changes in wetland condition from a theoretical reference condition (i.e. unmodified by human impacts associated with European settlement). IWC uses a hierarchical index with six sub indices (wetland catchment, hydrology, water properties, soils, biota, and physical form) based on key ecological components of wetlands. Fifty-one wetlands across the region were assessed using the IWC method between October 2006 and May 2007

2. Some 75% of these surveyed wetlands were ranked at either reference or slightly below the

reference condition. Therefore, the condition of these wetlands at the time of the assessment was quite good, especially when we consider the prevailing grip of the ‘Millennium Drought’ at the time.

More recent anecdotal observations have identified a shift in the overall condition of the regions inland aquatic ecosystems with continued good rainfall conditions after a long period of drought. Examples of these positive responses include the reinvigorated canopies of some Black Box woodlands along the Murray River floodplain.

Environmental water has been delivered to priority sites across the Mallee CMA region since 1996, to preserve drought refuges and prevent the irreversible loss of native plants and animals. Over the past two years this focus has changed to protecting flood refuges, with sites at Hattah Lakes and Lindsay Island maintaining good quality water, while the rest of the Murray River system in the region was hit with low dissolved oxygen levels as result of natural flooding after long drought.

Recent focus has been on delivering environmental water to priority wetlands within Black Box woodlands and protecting threatened species such as the Murray Hardyhead, with ongoing monitoring used to track the environment’s response. Improvements in the health of the landscape are visually evident at many environmental watering sites, with scientific monitoring conducted at Lindsay Island indicating that ‘it is reasonable to conclude that the environmental watering program made a significant contribution to increasing the resilience and therefore long term viability of the plant communities and populations of threatened species in the study area’ (Bayes E, Cook D, Jolly K and Robertson P (2010) Lindsay – Wallpolla Frog and Aquatic Vegetation Surveys 2009 – 2010. Report for the Mallee Catchment Management Authority as part of Murray-Darling Basin Authority funded project MD1458).

The flushing event of Psyche Bend Lagoon as a result of the high river levels in two successive years is estimated to have reduced the salt load by 47% since the last flushing event in 2000.

Regional groundwater levels have generally returned to a stable to declining trend with most monitored bores indicating a decrease in groundwater levels (58% of bores) and an increase in salinity

1 The most recent ISC survey was undertaken in 2010; however, the data from this have not yet been made

available to the region.

2 IWC assessments were undertaken in 2010; however, the data from this have not yet been made available

to the region.

20

(53% of bores) compared with the previous year. Please see ‘Land Health Condition’ section for further detail.

Under the Water Act, the land area over the Murray Group Limestone Aquifer was declared a Water Supply Protection Area in 1998. The subsequent implementation of the Murrayville Area Groundwater Management Plan from 2001 and ongoing monitoring of groundwater levels, salinity and metered extraction provides detailed information on groundwater condition and trends.

While there has been some variability over previous years, the current level of use does not appear to be having an adverse impact on the sustainability of the groundwater resource in the longer term, with groundwater levels recovering between irrigation seasons. Salinity levels remain satisfactory and metered usage is declining.

21

Land Health

The headline theme of ‘land health’ relates to activities conducted within the region’s modified landscapes which aim to protect natural resource values while optimising primary production outcomes. Regional projects have focused on addressing key threats to land health such as salinity, erosion, invasive plants and animals, and threatening land management practices.

Management

Activities undertaken during the reporting period delivered a combination of research, monitoring, evaluation and on-ground management actions.


• The provision of grants and incentives to the Mallee community to support the delivery of targeted on-ground works;

• The continued maintenance and application of the Mallee salinity zoning rules to direct new irrigation development to areas of lowest salinity impact with efficient water application systems and application rates to match land capability;

• The provision of case management and training support to 354 EMAP graduates, covering 876,809 ha or 39 per cent of all agricultural land in the region, which will help to facilitate the implementation of priority actions/works programs;

• The planning, prioritisation and implementation of works to protect 48,137 ha of agricultural soil from degradation;

• The planning, prioritisation and implementation of works to deliver 10,693 ha of rabbit control works, protecting and enhancing key biodiversity and soil assets;

• The planning, prioritisation and implementation of works to deliver 11,400 ha of priority weed control works, protecting and enhancing key biodiversity and soil assets;

• The establishment of 10 investigation sites to identify and quantify improved or alternative land management practices that address wind erosion processes whilst maintaining or improving productivity;

• Ongoing assessments of soil health, soil erosion and land management condition at 156 reference sites across the Mallee. Results were used to target soil conservation attitude and practice change programs, to quantify the impacts of land management practices and on ground works programs, and highlight areas for further research; and

• Fine-scale landform erosion susceptibility mapping completed across the agricultural landscapes of the Mallee region to enhance regional planning processes and facilitate improved prioritisation and targeting of on ground actions.

Condition

Reductions in rabbit populations have been achieved within areas receiving ongoing control programs. However, at a regional scale, there has been limited progress in arresting the growth of populations given the declining effectiveness of biological control (RHD virus and myxomatosis). Invasive plant and animal abundance has varied with the wet conditions experienced in 2011.

A widespread change in dryland agricultural management practices over recent years has dramatically reduced the risk, incidence and severity of soil erosion. The use of conventional fallow for instance is currently being recorded at less than 10 per cent of monitoring sites, compared to figures of between 30 to 50 per cent in the 1990s (Drendel, H., (2011) Mallee Soil Erosion and Land Management Spring 2011. Unpublished report for the Department of Primary Industries, (Hopetoun: Victoria)).

The current (as of 2009) estimated area of saline soils in the Mallee stands at 142,206 ha or 3.8 per cent of the land surface. Some 39 per cent (55,460 ha) of total saline surfaces are classified as induced and associated with land use change. Any trend in this indicator cannot be established until

22

another estimate is made. (Mock, I. and Grinter, V., (2009) Mapping the Mallee’s Saline Land. Unpublished report to the Mallee Catchment Management Authority (Walpeup: Victoria)).

By comparison to 2011 data, regional groundwater monitoring in the first quarter of 2012 found that 58 per cent of bores (sampled in both years) experienced a decline in standing water level which means that groundwater was observed at depths further from the soil surface in these bores. Increased salinity levels were also found in 53 per cent of bores sampled in both years from 2011 to 2012.

In general, there was an overall decrease in both groundwater level and a minor increase in salinity observed in all monitored bores throughout the region. (Mallee CMA, 2012. Mallee Groundwater Monitoring 2012. Final report Mallee CMA, Mildura, Victoria).

Assessing land health condition in relation to irrigation principally relies on the region’s established modelling platforms, which in turn directly rely on groundwater and surface water monitoring data inputs. Data collected in the last five years suggest that the long term observed downward trends in drainage outfalls to the Murray River and its environs and groundwater mounds beneath the regional irrigation areas are continuing in line with the expected long term modelled outcomes. The 2010-11 high record breaking rainfall season provided a brief diversion to these longer term trends in some areas. However observations in the 2011-12 period indicate the surface water drainage flows and regional groundwater levels have resumed the downward trend.

23

Community Capacity

The headline theme of ‘community capacity’ relates to activities conducted to improve the capacity of our communities and regional stakeholders to support natural resource management outcomes. Regional projects have focused on education and awareness raising, enhancing specific skills and knowledge, and establishing and maintaining effective partnership and support frameworks.

Management

Activities undertaken during the reporting period delivered a combination of communications and publications, events, workshops, case management support, research and demonstrations.


• The provision of a range of tools to support the region’s private land managers and community groups to implement actions on ground, including incentives/grants, market-based instruments, whole farm planning, education and capacity building activities;

• Greater alignment of the whole farm planning and incentive/grants programs which has increased the ability of individual landholders and community groups to implement planned management actions;

• The provision of technical advice and support to the region’s private land managers for the implementation of management practices and targeted interventions most appropriate to their environment in for minimising wind erosion and salinity;

• Supporting the regions Indigenous communities to provide input into natural resource management programs, including through the development of Cultural Heritage Management Plans through the formation of the Mallee Aboriginal Reference Group;

• Conducting a photo competition to raise awareness of ‘Buloke Woodlands’ within the Mallee region. A total of 116 entries were submitted from local community members across the region;

• Producing three colourful and imaginative children's books written by Tempy Primary School students participating in the Mallee CMA’s Enviro-Stories competition. These books promoted biodiversity and have been printed in hard copy and e-book format and distributed to all primary schools in the Victorian Mallee;

• Continuing to work with the community to raise awareness about natural resource management issues through activities such as site tours, visits to 15 local schools, and erecting 40 educational or awareness signs;

• Releasing the new-look Mallee Farmer Newsletter, targeted at improving the knowledge and skills of the regions dryland farmers. More than 7000 copies of the first two editions have been distributed across the Mallee region;

• Developing a You-Tube series featuring local farmers promoting sustainable land management practices and environmental stewardship principles;

• Five regional schools participating in the national Dustwatch program by collecting data on soil particle movement in the air, data which informs programs aimed at reducing the on and off farm impacts of soil loss from wind erosion;

• Undertaking communication activities to enhance farmers and landholder understanding of the Carbon Farming Initiative and the possible productivity, economical and environmental benefits from creating land-based carbon credits;

• Establishing and using demonstration sites to promote best management practices and encourage the adoption of management practices that address key threatening processes while enhancing productivity, soil health and biodiversity values;

• Documenting the key scientific findings of past salinity investigations and research into a concise position statement. The defined status of knowledge and understanding of salt mobilisation processes in the Mallee region will enable rapid response to future investment opportunity and policy development;

• Producing and distributing summaries of project and program outcomes (e.g. technical bulletins, fact sheets and newsletters) to enhance regional knowledge base and information sharing;

24

• 20 Waterwatch volunteers trained and delivering water quality monitoring at 30 key project sites;

• Expanding the Waterwatch program to include the implementation of on-ground works and to use the Waterwatch trailer to display environmental water values at 11 key community events;

• Delivery of the Mallee Flood Recovery Environmental Employment Program, as part of the Victorian Government’s Flood Employment Program. The program provided direct income support for 48 flood affected irrigators who suffered a total or near total crop loss through the flood events. It also provided opportunities for participants to increase their work skills and qualifications, providing ongoing options to support sustainable farm businesses, while also exposing participants to environmental programs and increasing their awareness of the importance and value of the natural environment and cultural heritage;

• The reinvigoration of Landcare in the region with four full time and two part time facilitators employed through the Victorian Landcare Facilitator Initiative. Four new Landcare consortiums have also been established, made up of a collection of 16 individual Landcare groups;

• Regional community groups such as Landcare and Friends groups securing over $1 million in grants over the reporting period to deliver management actions which address local priorities. Key examples include sponsorship from the Qantas Foundation for the Friends of Kings Billabong board walk project, and partnership funding arrangements between PowerCorp and Beulah Landcare Group and between VIC Track and the Murrayville Landcare Group;

• Community efforts being recognised by two successful nominations in the Victorian Landcare Awards, one of which will progress the National Landcare Awards; and

• Ongoing support for regional partnership opportunities with community, industry and government delivery partners actively engaged for integrated and efficient outcomes.

Condition

While no information currently exists which make a whole of region assessment of the current status or trends in our community’s capacity to support natural resource management outcomes, the program achievements outlined below reflect recent improvements in this capacity.

The engagement of Indigenous people in natural resource management has been enhanced during the reporting period through the formation of the Mallee Aboriginal Reference Group to advise the Mallee CMA and other stakeholders on a range of issues relating to the management of Aboriginal values in the Mallee, including:

• Communicating Aboriginal stakeholder needs and understanding of the environment and how these may be met;

• Advising on emerging Aboriginal stakeholder issues and perspectives relevant to natural resource management; and

• Providing input into the renewal of the Mallee Regional Catchment Strategy.

The Mallee Flood Recovery Environmental Employment Program also played a key role in enhancing community capacity for natural resource management during 2011-12. Increased general understanding and acceptance of NRM programs was evidenced by the number of participants who:

• Volunteered their time to work at sites such as the Trust for Nature Neds Corner property to complete fencing, tree planting and pest animal control;

• Regularly visited work sites to check on progress outside of working hours, demonstrating a sense of ownership;

• Reported sightings of rare and threatened species encountered at their work sites including the Giles Planigale, Regent Parrot and Murray Carpet Python. At their own undertaking, participants took photographic evidence and GPS points of invasive pest plant species, including sightings of Hudson Pear; and

• Have shown general acceptance of the importance of traffic control bollard works along the Murray River frontage after working on their installation at multiple sites. This is of importance

25

as these works which are designed to protect the fragile environment of the river frontage from uncontrolled high visitation can generate a negative reaction from some community members.

Community capacity for natural resource management in the Victorian Mallee has also been bolstered by renewed interest in Landcare, which was evidenced by;

• The increase in the number of Landcare members who attended ordinary and extraordinary meetings held to secure consortium arrangements and planning of activities to inform the Landcare Facilitator project delivery plans. This contrasted to the last two years where both the number of meetings held and persons attending had dwindled to near stagnancy with just a hand full of dedicated people attending;

• A four fold increase in the number of Landcare meeting held across the region this year; (pers. comm. Mallee Region Landcare Coordinator, Kevin Chaplin June 2012); and

• A 33 per cent increase in applications for Victorian Landcare Grants (VLG) compared to same period last year.

The capacity of the region’s private land managers to implement natural resource management outcomes is demonstrated by the ongoing and widespread adoption of improved management practices which deliver both public and private benefits (please see land health and inland aquatic ecosystem themes for further detail).

26

Environmental Stewardship

The headline theme of ‘environmental stewardship’ relates to the level of active stewardship on both private and public land. Regional projects have focused on management plans, management agreements, and conservation covenants.

Management

Activities undertaken during the reporting period primarily involved engagement, consultation, assessment and planning.


• The engagement of private land managers and community groups in priority landscapes using a variety of tools such as sub regional consultation and engagement, one-on-one case management support, workshops, and training forums;

• The establishment of management agreements with individual land managers and community groups for the delivery of on ground works to reduce the impact of critical threatening processes on priority assets;

• The delivery of the Environmental Management Action Planning (EMAP) program to 70 Mallee landholders, supporting the development of whole farm environmental plans and associated action plans covering 131,297 ha;

• The review and renewal of 16 Landcare group sub-regional environmental management plans and associated action plans, identifying implementation progress and future priorities;

• The permanent protection of 300 ha of priority habitat across three individual properties and the development of comprehensive management plans to guide appropriate management of the sites;

• The protection of an additional 110 km of public land through the implementation of new riparian agreements in line with riparian licences along the Tyrrell, Lalbert and Yarriambiack Creeks. This includes fencing of the creek lines through various funding sources and the establishment of monitoring photo points;

• The involvement of 47 individual landholders in the Crown Frontage Licence Review project, representing 80 per cent of landholders on the Tyrrell, Lalbert and Yarriambiack creeks;

• An audit of pump sites along Murray River frontage and the implementation of 230 pump site assessments by the pump owners along the Murray River;

• Development of six Environmental Water Management Plans (EWMPs) in consultation with relevant community groups and individuals;

• Two agreements to protect 1,700 ha of Murray River floodplain private land; and • The development of two Cultural Heritage Management Plans to inform the delivery of major

on-ground works.

Condition

The monitoring and evaluation of regional delivery reflects an upward trend in improving environmental stewardship in the Victorian Mallee.

The capacity, interest and intent of the region’s private land mangers to implement activities that will contribute to the ongoing conservation and protection of the region’s natural assets continues to improve as a result of the Environmental Management Action Planning (EMAP) program. In the most recent EMAP review (2009-10), more than 85 per cent of participants reported increased NRM skills and knowledge as a result of their involvement. These skills are now being utilised, with Farm Based EMAP participants reporting that they have completed priority actions covering 46,000 ha, with a further 41,840 ha of works/actions in progress (Argus, S., and Hawtin, J., (2010) Mapping and Data Management for Farm Based Environmental Management Action Planning – Graduate Support Program. Unpublished report for the Mallee Catchment Management Authority (Mildura: Victoria)).

Since 2005, some 424 farm businesses, representing over 1,008,106 ha or 44.9 per cent of agricultural land in the region have developed whole farm environmental plans (McLean, S.,

27

Hamence, P., Drendel, H., and McKechnie, G, (2012) Delivery of Environmental Management Action Planning Program. Unpublished report to the Mallee Catchment Management Authority (Irymple: Victoria)). At current participation rates, it is expected most farm businesses will have management plans in place by 2015, providing a valuable tool for engaging landholders in NRM.

The community and public and private land managers continue to establish and implement issue specific management plans and agreements for a large area of priority landscapes, further demonstrating improved environmental stewardship.

28

Section 2 - Governance and organisational structure

Mallee CMA organisational structure

The Mallee CMA operates under the Catchment and Land Protection Act 1994 and the Water Act 1989. The Statements of Obligations outlined in these two pieces of legislation clarify the roles and responsibilities of this CMA.

The Mallee CMA has a fundamental responsibility to ensure the community has an opportunity to provide input into priority setting and funding allocations for natural resource management in the region. This is achieved through various sub-committees comprising Board and community members, as illustrated on the following page.

A Strategy and Policy unit within the Mallee CMA was established during the reporting period to develop regional natural resource management policy, plans and strategies in consultation with the community and in alignment with the Victorian and Australian governments’ policies.

29

ORGANISATION STRUCTURE 2011/2012

30

Mallee CMA Board

The Mallee CMA Board is responsible for the development of strategic directions for integrated management of land and water resources in the region. It is ultimately responsible for all functions undertaken by the Authority, including governance and reporting to the relevant Ministers.

The Mallee CMA Board consisted of nine members during the 2011-12 reporting period.

The Mallee CMA operates within policies and controls approved and overseen by the Board to ensure transparent and accountable governance that incorporates performance monitoring and continuous improvement.

Board members represent a wide range of interests including agricultural, economic, horticultural, environmental and social. As part of their responsibilities, each Board member has a specific leadership role reflecting their individual area of expertise. Through this leadership role a strong governance culture is realised that enables a measured and strategic approach to all business undertaken by the Authority.

Sharyon Peart – Chair

Sharyon has vast experience in small business management, local government, community consultation, governance and people management and is a member of the Australian Institute of Company Directors. She is a current Councillor of Mildura Rural City and runs her own small business.

Sharyon’s representation includes:

• Chair - Mallee CMA Remuneration Committee; • Chair - Aboriginal Reference Group; • Board representative - Mallee Lands Community Advisory Committee; and • Board representative - Mallee Irrigation and Environment Advisory Committee;

Tony Martin – Deputy Chair

Tony is a horticulturalist in the pumped irrigation district of Merbein and has been involved in natural resource management issues within the Murray-Darling Basin for more than 20 years.

He is a member of the Australian Institute of Company Directors and a director of the Mildura Development Corporation.

His representation includes:

• Chair - Salinity Accountability Advisory Committee; • Chair - Mallee CMA Audit Committee; • Chair - The Living Murray Lindsay-Wallpolla Community Reference Group; • Board representative - Rivers and Wetland Technical Advisory Committee; • Member - Mallee CMA Remuneration Committee; and • Board representative - Land and Water Management Plan Project Steering Committee.

Eddie Lee

Eddie is a dryland farmer from the north-west Victorian town of Birchip. A former local government councillor, Eddie is passionate about sustainable farming and market driven environmental outcomes. Eddie has been a farmer for more than 40 years and is a member of the Water in Drylands Collaborative Research Program Research Advisory Committee and the Birchip Cropping Group Advisory Committee.

His representation includes:

• Board representative - Biodiversity Technical Advisory Committee.

31

Geoff Anderson

Geoff is a dryland farmer from Ouyen in north-west Victoria. A farmer for more than 45 years, Geoff has been involved in all aspects of improving dryland agricultural and environmental land management, particularly salinity. Geoff’s representation includes:

• Board representative - Biodiversity Technical Advisory Committee; • Member - Murrayville Groundwater Supply Protection Area Advisory Group; • Member – The Living Murray Hattah Lakes Community Reference Group; and • Member – Mallee CMA Audit Committee.

Paula Gordon

Paula is a partner in a family horticultural farm business, comprising citrus and a vine nursery for dried vine fruit, wine and table grape industries.

As a sociologist and educationalist, Paula has been actively involved in a number of organisations throughout Sunraysia and the Mallee region, encompassing education, health, community and rural policy development, agricultural production, research, extension, on farm adjustment and natural resource management. Paula is president of her local Landcare group, a member of the Murray Valley Citrus Board, the Mallee Sustainable Farming Inc. Board, and the Australian Institute of Company Directors.

Appointed to the Mallee CMA Board in July 2009, her representation includes:

• Member - Mallee CMA Remuneration Committee; and • Member- Land Resources Technical Advisory Committee.

John Arnold

John has been a dried fruit and citrus grower for 27 years, during 16 of which he also operated a manufacturing business.

John is a Graduate of the Australian Institute of Company Directors and has served on a number of organisations in the Merbein community. He is currently a councillor with the Mildura Rural City Council, to which he was elected in 2003. He served as Mayor from December 2006 until November 2008 and was re-elected Mayor in December 2010.

John was appointed to the Mallee CMA Board in July 2009 and his representation includes:

• Member - Mallee CMA Audit Committee; and • Member - Land Resources Technical Advisory Committee.

Bruce Jones

Bruce has been a dairy farmer for many years and has a background in irrigation administration. He served on the Swan Hill Rural City Council from 2003 until 2008 and served as Mayor from 2005 until 2006.

Bruce is a member of the Torrumbarry Water Service Committee and several Northern Victorian Irrigation Renewal Project (NVIRP) modernisation committees.

Appointed to the Mallee CMA Board in July 2009, his representation portfolio includes:

• Member - Rivers and Wetlands Technical Advisory Committee; • Member - Lower Murray Darling Freshwater Research Advisory Committee; and

32

• Member - Salinity Accountability Advisory Committee.

Brian Englefield

Brian Englefield is a horticulturalist on a property in Liparoo. Brian has expressed strong and varied interests in achieving a balance between productive agriculture and environmental sustainability, especially from the perspective of a long term irrigator.

Brian is involved with the Murray Valley Winegrape Growers Inc. and is a member of the Australian Wine and Brandy Geographical Indications Committee (GIC).

Appointed to the Mallee CMA Board in July 2009, Brian’s representation includes:

• Member - Mallee CMA Salinity Accountability Advisory Committee; and • Member - Regional Sustainability Technical Advisory Committee.

Paul Grigg

Paul has a 35 year background in broad-acre dryland farming which incorporated a grain trading, bulk storage and bulk haulage transport operation.

He has represented industry at local and state level with extensive board director experience and is a graduate of the Australian Institute of Company Directors.

Appointed to the Board in July 2011 his representative involvement includes:

• Member - Board Audit Committee; and • Member - Rivers and Wetlands Technical Advisory Committee.

33

Meetings attended

Eleven ordinary Board meetings were held during the 2011-12 financial year.

Board Member Ordinary meetings attended

Sharyon Peart 11

Tony Martin 9

John Arnold 10

Geoff Anderson 10

Brian Englefield 9

Paula Gordon 3

Bruce Jones 10

Eddie Lee 9

Paul Grigg 11

Note: The Board Chair approved any Board member absences during the reporting period.

Board Committees

An Audit Committee, Remuneration Committee, Salinity Accountability Advisory Committee and other committees of the Board, as deemed necessary, act on the Board’s behalf. Appropriate advisory committees ensure projects are properly guided and that industry and government funds are spent wisely.

Mallee CMA Audit Committee

An internal audit program is conducted throughout the year to ensure compliance with the Financial Management Act 1994 and the Financial Management Compliance Framework. The members of the Audit Committee as of 1 July 2011 were:

• Tony Martin - Chair; • John Arnold - Member; • Geoff Anderson - Member; • Grant Martinella - Independent Member; and • Leonie Burrows - Independent Member.

Responsibilities of the Audit Committee, as defined in the Audit Committee Charter, are to oversee:

• Financial performance and the financial reporting process, including the annual financial statements;

• The scope of work, performance and independence of internal audit; • Ratification of the engagement and dismissal of internal auditors by management; • The scope of work, independence and performance of the external auditor; • The operation and implementation of the risk management framework; • Matters of accountability and internal control affecting the operations of the Mallee CMA; • The effectiveness of management information systems and other systems of internal control;

34

• The acceptability of, and correct accounting treatment and disclosure of, significant transactions which are not part of the Mallee CMA’s general course of business;

• The approval of accounting policies; and • The Mallee CMA process for monitoring compliance with laws and regulations and its own

code of conduct and code of financial practice.

Internal and external audits

The Office of the Auditor-General, through Mulqueen Griffin Rogers in Bendigo, conducts the external audit, and RSM Bird Cameron Chartered Accountants, in Melbourne, conducts a program of internal audits.

Mallee CMA Remuneration Committee

The primary purpose of the Remuneration Committee is to assist the Board to discharge its responsibilities in the following areas:

• Undertake the recruitment, selection, performance management and remuneration of the Chief Executive Officer; and

• Other responsibilities as the Board may delegate to the Remuneration Committee from time to time.

The members of the Renumeration Committee as of 1 July 2011 were:

• Sharyon Peart - Chair; • Tony Martin - Member; and • Paula Gordan - Member.

Mallee CMA Salinity Accountability Advisory Committee

This committee is pursuant to the Mallee CMA’s obligations under the Catchment and Land Protection Act 1994 and delegated responsibilities under the Victorian Water Act 1989. The members of the Salinity Accountability Advisory Committee as of 1 July 2011 were:

• Tony Martin - Chair; • Brain Englefield - Mallee CMA Board Member; • Bruce Jones - Mallee CMA Board Member; • Peter Jones - Lower Murray Water Board Member; • Owen Lloyd - Community Advisory Committee Member; and • Peter Kelly - Mallee CMA Program Manager.

Agency representation:

• Owen Russell - Lower Murray Water; • Bryony Grice - Department of Sustainability and Environment; and • John Cooke - Department of Sustainability and Environment.

The Salinity Accountability Advisory Committee and is responsible for advising the Mallee CMA Board on:

• All matters relating to Accountable Actions under the Basin Salinity Management Strategy at the regional level;

• The management and maintenance of the Mallee Regional Salt Register; and • Projects funded from the Salinity Offsetting Charges, which are collected to specifically offset

salinity impact of irrigation development from Nyah to the South Australian Border.

35

Community Advisory Committees

The Mallee CMA has two community advisory committees: the Mallee Lands Community Advisory Committee and the Mallee Irrigation and Environment Community Advisory Committee. Both were established in 1998 with members appointed for a three-year term. The community advisory committees are important in maintaining links with the broader community and ensuring the delivery of environmental outcomes that are acceptable to the Mallee community.

Members advise on progress towards achieving community expectations in natural resource management and achieving the goals of the Mallee RCS. As such, they play an important role in the development and prioritisation of the annual investment program.

Specifically, the community advisory committee role includes:

• Acting as an information and communication link with the community and relevant stakeholders;

• Evaluating project performance from a community perspective; • Providing a community perspective on the oversight of program delivery; and • Providing advice to the Board on resource management objectives, targets, activities and

priorities for inclusion in the Authority’s Regional Investment Plan.

The Board, following a public Expression of Interest process, makes appointments of community members to the advisory committees. Selection is based on the skills and knowledge of applicants as relevant to natural resource management in the Victorian Mallee. Equal opportunity principles apply.

Mallee Lands Community Advisory Committee

The Mallee Lands Community Advisory Committee met four times during the reporting period.

Membership and roles of the committee as of July 1, 2011 were:

• Andrew Menzies - Chair and representative Land Resources Technical Advisory Committee; • Ron Wiseman - Deputy Chair; • Matt Curtis - Representative Land Resources Technical Advisory Committee; • Richard Ferrier - Representative River and Wetlands Technical Advisory Committee; • Ivan Mock - Proxy representative for Land Resources Technical Advisory Committee; • Dorothy Reid - Representative Biodiversity Technical Advisory Committee; • Sally Williams - Representative Regional Assessment Panel for Second Generation Landcare

Grants, Pest Plants and Animals Committee; and • Ian Arney – Representative Millewa Landcare.

Highlights and activities for the year included obtaining information and local knowledge from the community for consideration into the Mallee Regional Catchment Strategy.

Mallee Irrigation and Environment Community Advisory Committee

The Mallee Irrigation and Environment Community Advisory Committee met four times during the reporting period.

Membership and roles of the committee as of 1 July, 2011 were:

• Malcolm Bennett - Chair and member of Biodiversity Technical Reference Committee; • Adrian Adams; • Brian Boulton - Regional Sustainability Technical Reference Committee; • Jill Duda; • Robert Grant - Representative River and Wetlands Technical Advisory Committee; • Owen Lloyd - Representative The Living Murray Icon Site Community Reference Group;

36

• Michael Marks; and • John Piccirillo - Representative Regional Sustainability Technical Reference Committee,

Representative The Living Murray Icon Site Community Reference Group.

Activities for the year included providing oversight and support for the final draft of the Mallee Irrigation Region Land and Water Management Plan, providing community advice on the proposed Murray Darling Basin Plan and input into the renewal of the Mallee Regional Catchment Strategy.

Aboriginal Reference Group

The Mallee Aboriginal Reference Group was formed during the reporting period to advise the Mallee CMA on a range of issues relating to the management of Aboriginal values in the Mallee, including:

• Communicating Aboriginal stakeholder needs and understanding of the environment and how these may be met; and

• Advising on emerging Aboriginal stakeholder issues and perspectives relevant to natural resource management.

The Committee met three times during the reporting period.

Membership and roles of the committee as of 1 July 2011 were:

• Sharyon Peart - Chair and Mallee CMA Board Chair; • Keith Hampton; • Marie Havea; • Rose Kirby; • Dion Kirby; • Sandra Stewart; • Michael Gilby - Department of Primary Industries; • Shaun Stevens - Parks Victoria; • Phillip Murdoch - Department of Sustainability and Environment; and • Ben Parker - Mallee CMA Indigenous Facilitator.

Technical Advisory Committees

Technical advisory committees for the asset classes of biodiversity, river and wetlands, water and land resources, as identified in the Mallee RCS, were established in January 2004.

The technical advisory committees ensure a high level of rigour and technical expertise in the development and implementation of projects. They also provide a valuable forum for partnerships, technical advice and support to the Mallee CMA.

The technical advisory committees consist of members drawn from agencies and local organisations with technical expertise, as well as a Mallee CMA Board member(s) and two representatives from the Mallee CMA’s community advisory committees.

The manager responsible for the asset class chairs the technical advisory committee, with the Board representation providing a direct communication and reporting link to the Board on project oversight.

Biodiversity Technical Advisory Committee

The Biodiversity Technical Advisory Committee met six times during the reporting period.

Members of the committee as of July 1, 2011 were:

• Malcolm Bennett - Mallee Irrigation and Environment Community Advisory Committee; • Catherine Hall - Mildura Rural City Council; • Eddie Lee - Mallee CMA Board member;

37

• Sue Mahon - Swan Hill Rural City Council; • Sue McConnell - Department of Primary Industries; • Fiona Murdoch - Lower Murray Water; • Greg Ogle - Trust for Nature; • Dorothy Reid - Mallee Lands Community Advisory Committee; • Marcia Riederer - Department of Sustainability and Environment; • Peter Sandell - Parks Victoria; and • Matt White - Department of Sustainability and Environment Arthur Rylah Institute for

Environmental Research.

As of Board Meeting No. 156 in July 2011 the Board representatives on the Biodiversity Technical Reference Committee were:

• Geoff Anderson; and • Eddie Lee.

Regional Sustainability Technical Advisory Committee

The Regional Sustainability Technical Advisory Committee met six times during the reporting period.

Members of the committee as of July 1, 2011 were:

• Brian Boulton - Mallee Irrigation and Environment Implementation Committee; • John Cooke - Department of Sustainability and Environment; • Peter Ebner - Lower Murray Water; • John Piccirillo - Mallee Irrigation and Environment Community Advisory Committee; and • Sue McConnell - Department of Primary Industries.

As of Board Meeting No. 156 in July 2011 the Board representatives on the Regional Sustainability Technical Advisory Committee were:

• Brian Englefield; and • Tony Martin.

Land Technical Advisory Committee

The Land Technical Advisory Committee met six times during the reporting period.

Members of the committee as of 1 July , 2011 were:

• Bernie Dunn - Grampians Wimmera Mallee Water; • Matt Curtis - Mallee Lands Community Advisory Committee; • Kate Reilly - Birchip Cropping Group; • Andrew Menzies - Mallee Lands Community Advisory Committee; • Michael Moodie - Mallee Sustainable Farming; • Ivan Mock - Dodgshun Medlin • Claire Wilkinson - Department of Sustainability and Environment; • Robert O’Shannessy - Department of Primary Industries; and • Nathan Robinson - Department of Primary Industries.

As of Board Meeting No. 156 in July 2011, the Board representatives on the Land Resources Technical Advisory Committee were:

• Bruce Jones; and • Eddie Lee.

38

Rivers and Wetlands Technical Advisory Committee

The Rivers and Wetlands Technical Advisory Committee met six times during the reporting period.

Members of the committee as of 1 July, 2011 were:

• Richard Ferrier - Mallee Lands Community Advisory Committee; • Robert Grant - Mallee Irrigation and Environment Community Advisory Committee; • Scott McLean - Department of Primary Industries; • Marcia Reiderer - Department of Sustainability and Environment; • Phillip Murdoch - Department of Sustainability and Environment; • Peter Sandell - Parks Victoria; and • Iain Ellis - Murray-Darling Freshwater Research Centre.

As of Board Meeting No. 156 in July 2011, the Board representatives on the Rivers and Wetlands Technical Advisory Committee were:

• Bruce Jones; and • Tony Martin.

39

Operational Structure

During the reporting period, the Mallee CMA employed 53 employees (51 FTE). Staff members had skills in a range of areas including research, project management, human resource management, environmental science, communication, education, finance, and geographic information systems. The Authority’s business was achieved under the guidance of the Chief Executive Officer (CEO) and managers (as outlined below) and in line with the operational structure featured over page.

Jennifer Collins – Chief Executive Officer

As CEO, Jennifer is responsible to the Board for all operational aspects of the Authority, as well as facilitating input from the Board, various committees and the community into the Authority’s strategic direction. Jennifer is also the Icon Site Coordinator for the Lindsay Wallpolla and Hattah Lakes Icon Sites under the Murray Darling Basin Authority’s The Living Murray program.

Linda Pratt – Manager Corporate Services

Linda joined the Mallee CMA in 2004 as the Human Resources Officer and became Manager of the Community and Program Support Unit in 2006 until 2010 when she became the Manager of Corporate Services.

Peter Kelly – Manager Rivers and Wetlands

Prior to starting at the Mallee CMA in 2008, Peter spent 25 years working for the Department of Sustainability and Environment. He managed more than 400,000 ha of State Forest in the Victorian Mallee for eight years and was a grazing management officer for three years.

Jo Latta – Manager Strategy and Policy

Jo worked at the Department of Primary Industries as a Farming Systems Research Scientist before joining the Mallee CMA in 2002. Jo managed the Land Resources Unit for seven years and oversaw its merger with the Biodiversity unit during 2009-10. Jo is now the Manager of the Strategy and Policy Unit.

Glen Sutherland – Manager Regional Sustainability

Glen was the Mallee Irrigation Development Coordinator with the Victorian Department of Primary Industries for seven years prior to joining the Mallee CMA in 2006. He manages the Regional Sustainability Unit which was previously known as Water Resources.

Narelle Beattie – Manager Land and Biodiversity

Prior to joining the Mallee CMA in 2007 as a project officer for the Land Unit, Narelle worked with HLA Envirosciences for three years as an environmental geologist. Narelle became Land and Biodiversity Coordinator following the merger between units in 2009, which led to her appointment as Manager of Land and Biodiversity in June 2011.

40

Mallee CMA Operational Structure 2011-12

41

Planning framework

There are two major documents that guide the planning activities of the Mallee CMA - the Mallee Regional Catchment Strategy (RCS) and the Mallee CMA Corporate Plan.

Regional Catchment Strategy (RCS)

One of the key functions of the Mallee CMA is to develop a regional approach to coordinated and integrated natural resource management. The RCS provides the strategic framework for the management of natural resources in the region and provides alignment with wider state and federal strategies and policies. The Mallee RCS 2003-2008 was reviewed in 2009-10 and the subsequent Mallee RCS 2012-18 is currently being developed.

A steering committee has been set up to guide the renewal of the Mallee RCS. This committee is led by the Mallee CMA Board Chair and consists of partner agencies (Parks Victoria, DSE, water authorities) and community members. This committee provides strategic input from a regional perspective and provides recommendations to the Mallee CMA Board in regard to the renewal of the RCS.

Extensive community consultation surrounding the Mallee RCS has formed a key part of the strategy’s renewal. The Mallee RCS 2012-18 will be submitted for Ministerial approval in October 2012.

The Mallee CMA Corporate Plan

The Mallee CMA’s Corporate Plan is the primary annual planning document for the organisation and is developed under the provisions of the Water Act 1989 and the Catchment and Land Protection Act 1994. The Corporate Plan documents how the Mallee CMA will meet its full range of duties, functions and objectives.

The corporate plan provides key corporate information about the Mallee CMA, informs the relevant Ministers of major issues and activities, and outlines how the Mallee CMA will obtain investment to fund its operation.

The corporate planning process provides an opportunity for the Board to review and revalidate key priorities and strategies, and creates an agreed ‘contract’ between the Board and the Chief Executive Officer about the program of work to be delivered during the year. The corporate plan provides the framework for reporting on corporate performance in the annual report and describes how the Mallee CMA will meet its Statement of Obligations. The Mallee CMA has an effective structure and processes in place to ensure robust delivery and achievement of those duties and expectations.

Program implementation, monitoring and reporting

Development and delivery of programs in the Victorian Mallee is made possible through the engagement of key stakeholders in the region, including DSE, DPI, Parks Victoria, local government and water authorities.

Implementation of projects is managed by Mallee CMA staff and delivered through service level agreements and contracts with agencies and consultants using the Victorian Government Purchasing Board procurement processes.

The Mallee CMA employs staff to carry out specialised activities, such as Geographic Information Systems, communications, Indigenous facilitation, and coordination of the regional Landcare program.

The progress of projects and expenditure of project funds is reported to the Mallee CMA Board monthly. Where projects are performing poorly or delayed due to seasonal conditions, the Mallee CMA is required to submit requests for variations to the appropriate investment source.

Reporting to Australian and Victorian government investment sources occurs quarterly, using schedules set out in the service level agreements. Other investment sources such as the Murray-Darling Basin Authority and regional bodies are reported to in accordance with the requirements agreed to by that source.

42

Occupational Health and Safety Policy

The Mallee CMA is committed to providing a safe and healthy working environment for all employees and complying with the Occupational Health and Safety Act 2004 (OHS Act), relevant regulations and codes of practice.

Safety is a primary consideration in the planning and conduct of project activities and events. The Authority’s Occupational Health and Safety (OHS) Management System details procedures relating to occupational health and safety compliance and applies these to all employees, contractors, visitors and/or volunteers.

The monitoring of contractor and consultant compliance has been identified as a key responsibility for the Mallee CMA under the OHS Act. To facilitate this compliance, contractors and consultants are provided with information and support to assist them to meet Mallee CMA requirements

Construction and project sites are inspected by the Mallee CMA OHS co-ordinator prior to and during construction projects to ensure adherence to OHS standards.

The Mallee CMA Occupational Health and Safety Committee - consisting of four Health and Safety Representatives (HSR), representing their respective designated work groups; the OHS Coordinator and one management representative - meets bi-monthly. These meetings form an integral element of the consultation process. The objective of these meetings is to discuss OHS issues, and the identification, prevention and resolution of workplace safety hazards. Workplace safety is also an agenda item at all unit meetings and all staff meetings.

To meet the Mallee CMA’s responsibilities under the OHS Act, staff participated in OHS related training activities during the reporting period, including:

• Work place Obligations; • Emergency Warden Training; • Working in Isolation; • Four Wheel Driving; • All terrain vehicle (ATV) Operator Skills; • First Aid and CPR Refresher Training; • Fire Warden Training; • Chainsaw Operation; and • Chemical Handlers Training.

The major OHS achievement during the reporting period has been the improvement in the reporting of near miss and hazard reporting by staff. Through staff training and the use of the OHS consultation process, employees have realised the importance of reporting to the continual improvement of workplace safety. The increased awareness has assisted with the monitoring and improvement of safety in the workplace.

43

Employment and conduct principles

Merit and equity in employment

The Mallee CMA continues to grow and engage a diverse workforce. The Authority adheres to the Public Administration Act 2004, which specifies a number of employment and conduct principles that must be observed by public entities and their employees.

The Mallee CMA is committed to the principles of the Equal Opportunity Act 2010 and adheres to the Victorian Public Sector Code of Conduct.

Equal opportunity

The Mallee CMA actively promotes equal opportunity and has established processes to ensure that the Public Sector Principles of Employment are promoted and adhered to.

These principles are:

• Employment decisions are based on merit; • Employees are treated fairly and reasonably; • Equal opportunity is provided; • Human Rights as set out in the Charter of Human Rights and Responsibilities Act 2006 are

upheld; • Employees have a reasonable avenue of redress against unfair or unreasonable treatment;

and • The development of a career in the public sector is fostered.

Personal development and performance management

Staff development is considered critical to the Mallee CMA’s operation as it enables skills to be maintained and improved so that staff can perform their duties with maximum efficiency. This not only creates a cost saving for the Mallee CMA through efficient staff performance, but also increases employees’ job satisfaction, leading to retention of quality staff.

Annual performance reviews are undertaken for all staff, with ongoing feedback received from line managers during the course of the year. This enables any issues to be dealt with immediately and also any learning and development opportunities to be identified and implemented.

The list below shows all courses and training undertaken by various staff during the reporting period:

• Australian Company Directors; • Corporate Governance; • Board Financial Reporting; • Axapta (Finance system); • Certificate IV Financial Services; • Certificate IV Human Resources; • Certificate IV OH and S; • Certificate IV Cultural Heritage Management; • Cultural Heritage Artefact Identification; • Equal Opportunity/Anti bullying; • Equal Opportunity Update; • Equity Diversity Officer/Contact Officer; • Evapotranspiration Master class; • Running Better Meetings; • Semi Structured and Structured Interviews; • Shorthand;

44

• Snake Awareness; • Taxation 2011/12 Update; • Waterwatch Computer Database; and • Weed Identification.

The Mallee CMA understands the importance of a healthy workforce and encourages staff to participate in activities that promote healthy living. Staff took part in the following activities during the reporting period:

• Flu vaccinations; • Ride to Work Day; • Walk to Work Day; • Lunchtime bocce competition; • Walking through Winter initiative; • Lunchtime cycling group.

45

Section 3 - Workforce Data

Workforce data

The skills and knowledge of Mallee CMA staff, together with the relationships they build with the Authority’s partners and stakeholders, their innovation, and commitment are critical to the success of the organisation.

At the end of June 2012 the Mallee CMA employed 53 staff, which included a total of 51 full time equivalent (FTE) positions. The staff consisted of 28 females and 26 males during the reporting period.

Mallee CMA employed 51 FTE staff in 2011-12 compared to 49 staff in 2010-11.

2011-12 2010-11

Executive Officers 1 1

Senior Managers 5 4

Administration Staff 10 10

Project/Support Staff 37 34

Total 53 49

Male 26.2 (FTE) 23.8 (FTE)

Female 24.8 (FTE) 25.2 (FTE)

Total 51 49

A further 45 staff (24.20 FTE) were employed under the State Government’s Flood Recovery Employment program.

Executive Officer Disclosure

One Executive Officer was employed during the reporting period.

Recruitment and Retention

Employees are appointed after a comprehensive selection process, as set out in the Mallee CMA Recruitment and Selection Policy and involving a mixed gender selection panel. This approach based on the recruitment principles of the Victorian Public Sector to help ensure staff are selected on the basis of merit. This assists in recruiting and retaining quality staff that fit both the organisation and the position.

Over the past five years, the Mallee CMA has worked hard to improve workforce planning, including succession planning. The Authority continues to review its staff structure with a view to being able to offer staff a career path. This has lead to improved retention of valued staff members.

46

The Mallee CMA was formed in July 1997. The current years of service of staff are as follows:

Years of service Number of Staff

11 years 2

10 years 1

9 years 2

8 years 2

7 years 5

6 years 7

5 years 9

4 years 4

3 years 5

2 years 3

1 year 9

< 1 year 4

Community inclusiveness

The Mallee CMA is committed to the Victorian Government’s policies relating to people of culturally and linguistically diverse backgrounds, women, youth and Indigenous affairs, in line with the Multicultural Victoria Act 2004. Commitments and priorities for the reporting period in respect the aforementioned key areas include:

• Ongoing engagement of Indigenous stakeholders in natural resource management through involvement in on-ground works, cultural heritage training and monitoring, the development of Cultural Heritage Management Plans, and the production of regular newsletters for stakeholders;

• Establishment of an Aboriginal Reference Group to enable Indigenous stakeholders to contribute to the development of the Regional Catchment Strategy 2012-18 and also undertake a Traditional Indigenous Ecological Knowledge project funded by the Australian Government’s Caring for Our Country;

• Educational work to engage young people in natural resource management, this has chiefly been achieved through school visits by the Mallee Waterwatch staff, the junior Landcare program, supported by the Mallee CMA school education visits, work experience placements, and dissemination of other educational resources and information to schools and training organisations within the Mallee CMA region;

• Strong representation of women within the Mallee CMA workforce and community committees, in line with the Victorian Public Sector Code of Conduct. Notably, the Authority’s Board Chair, Chief Executive Officer and three of the five Executive Officers are women; and

• Cultural diversity is actively encouraged through the adherence to the Public Administration Act 2004, which specifies a number of employment and conduct principles that must be observed by public entities and their employees. The Mallee CMA is also committed to the principles of the Equal Opportunity Employment Act 1985 and adheres to the Victorian Public Sector Code of Conduct.

47

Section 4 - Other disclosures

Expenditure of funds within the Mallee Salinity Investment Plan 2011-12

Under the Ministerial ‘policies for managing water use licences in salinity impact zones (2007)’ each megalitre of new or increased annual use limit (AUL) attracts a capital charge to contribute towards the cost of works or measures to offset salinity impacts. Each new or increased AUL will also attract an ongoing charge to contribute towards the cost of operating and maintaining works and measures to offset salinity impacts.

All charges associated with new or increased AUL (or AUL transfers) are collected by water authorities and forwarded annually to the Mallee CMA. Funds forwarded to the Mallee CMA in 2011-12 totalled $1,813,485.

Total expenditure within the Mallee Salinity Investment Plan 2011-12 was $1,243,139. Projects delivered include:

• Extension of the Reduced Irrigation Salinity Impact (RISI) credit claim to Karadoc/Mallee Cliffs region;

• Irrigation incentives program for salinity benefit; • Weather stations to reduce recharge of regional groundwater; • Data collection – Irrigation drainage and groundwater; • Reduced Irrigation Salinity Impact (RISI) monitoring framework development; • Monitoring station repairs and maintenance; • Operation, maintenance and monitoring plans for accountable actions; and • Salinity Accountability Advisory Committee.

Implementation of the Victorian Industry Participation Policy

The Victorian Industry Participation Policy Act 2003 requires public bodies and departments to report on the implementation of the Victorian Industry Participation Policy. Public bodies are required to apply this policy in all tenders over one million dollars in regional Victoria.

No tenders were issued by the Mallee CMA greater than one million dollars for the year ended 30 June 2012.

Major contracts

No contracts over $10 million were entered into by the Mallee CMA during the reporting period.

Consultants

Consultants engaged for over $10,000 during the reporting period are shown in the following table. Consultants are defined as those engaged to provide expert analysis to facilitate decision making and perform a specific one off task using skills that would not normally reside within the Authority.

In 2011-12 the Authority engaged 58 consultancies where the total fees payable to the consultants were less than or equal to $10,000, with a total expenditure of $251,743 (excluding GST).

Consultants engaged for contracts over $10 000 during the reporting period.

48

Consultant Purpose of consultancy Start Date

End Date

Total approved project fee (excluding GST)

Expenditure 2011/12 (excluding GST)

Future Expenditure (excluding GST)

Agriculture Victoria Services Pty Ltd Demonstrating & promoting improved/alternative land management Jul-11 Jan-12 58,784 58,784

Agriculture Victoria Services Pty Ltd Defining Mallee soils Apr-12 Jun-12 68,000 68,000

Agrivision Consultants Pty Ltd Validating and demonstrating improved farming systems Oct-11 May-12 17,000 17,000

Alluvium Consulting Australia Pty Ltd Regional Catchment Strategy Feb-12 Apr-12 98,660 98,660

Australian Water Environments Salt investment plan monitoring Sep-11 Jan-12 21,250 21,250

Biosis Research Pty Ltd The Living Murray - Lindsay, Mulcra & Wallpolla Islands Oct-11 May-12 40,610 40,610

Birchip Cropping Group Inc Validating and demonstrating improved farming systems Aug-11 Jun-12 88,745 88,745

Birdlife Australia Survey of Mallee birds Dec-11 Jun-12 39,032 39,032

Department of Primary Industries Irrigation best management practices Nov-11 Jun-12 120,000 120,000

Department of Primary Industries Whole farm planning Jan-11 Oct-11 50,000 50,000

Department of Primary Industries Defining Mallee soils (wind erosion) Aug-11 Oct-11 68,000 68,000

Department of Primary Industries Promotion & case management of incentive program Apr-11 Dec-11 20,000 20,000

Department of Primary Industries Demonstrating & promoting improved/alternative land

Dec-11 Jan-12 34,262 34,262

49


End Date




management

Department of Primary Industries Awareness building for Mallee irrigators Nov-11 May-12 90,000 90,000

Department of Primary Industries Future irrigation enterprises in the Mallee Nov-11 May-12 230,000 230,000

Department of Primary Industries Irrigation incentives Nov-11 May-12 100,000 100,000

Department of Primary Industries Environmental management action planning Nov-11 May-12 250,000 250,000

Department of Primary Industries Promotion & case management of incentive program Jan-12 Jun-12 15,000 15,000

Department of Primary Industries Demonstrating & promoting improved/alternative land management Feb-12 Jun-12 15,800 15,800

Department of Sustainability & Environment Wetland structures Sep-10 Oct-11 20,000 20,000

Department of Sustainability & Environment Vegetation monitoring Oct-11 Jun-12 75,000 75,000

Department of Sustainability & Environment Threatened species - Desert Greenhood Dec-11 Jun-12 16,000 16,000

Department of Sustainability & Environment Threatened woodland birds Dec-11 Jun-12 24,000 24,000

Department of Sustainability & Environment Spatial mapping of semi-arid woodland Jan-12 Jun-12 127,250 127,250

50


End Date




Department of Sustainability & Environment Impact of stock exclusion fencing on linear remnants Dec-11 Jun-12 35,358 35,358

Dodgshun Medlin Demonstrating & promoting improved/alternative land management Jul-11 Dec-11 29,500 29,500

Dodgshun Medlin Demonstrating & validating improved/alternative land management May-12 Jun-12 18,800 18,800

GHD Australia Environmental effects statement for Kings Billabong Sep-11 Jan-12 19,344 19,344

GHD Australia Demonstration site for the protection of river banks near houseboats Dec-11 Feb-12 13,600 13,600

GHD Australia Concept designs Lindsay Point Wetland Sep-11 Feb-12 30,700 30,700

GHD Australia The Living Murray - Lindsay, Mulcra & Wallpolla Islands Dec-11 Jun-12 43,000 43,000

Jo Bell Heritage Services Pty Ltd The Living Murray - Lindsay Island Jul-09 Jul-11 26,653 26,653

Jo Bell Heritage Services Pty Ltd Wetland structures Aug-11 Feb-12 63,899 63,899

Lloyd Environmental Pty Ltd Improving the health of Murray River wetlands Sep-11 May-12 13,246 13,246

Lloyd Environmental Pty Ltd Community engagement May-12 Jun-12 12,235 12,235

Mallee Sustainable Farming Inc Mallee soil health monitoring Mar-11 Nov-11 35,000 35,000

51


End Date




Mallee Sustainable Farming Inc Validating and demonstrating improved farming systems Nov-11 Dec-11 50,475 50,475

Mallee Sustainable Farming Inc Mallee soil health monitoring May-12 Jun-12 56,000 56,000

Mallee Sustainable Farming Inc Validating and demonstrating improved farming systems May-12 Jun-12 37,156 37,156

Murray Darling Freshwater Research Centre Assessment of fish communities Oct-11 Feb-12 23,395 23,395

Murray Darling Freshwater Research Centre Sandilong Creek carp electro fishing project Oct-11 Jun-12 15,626 15,626

Murray Darling Freshwater Research Centre The Living Murray - Hattah Nov-11 Jun-12 305,605 305,605

Murray Darling Freshwater Research Centre

The Living Murray - Lindsay, Mulcra & Wallpolla Islands Feb-12 Jun-12 365,500 365,500

Murray Darling Freshwater Research Centre Kings Billabong monitoring Oct-11 Apr-12 47,630 47,630

NSW Office of Water Salt Investment Plan benefits Sep-11 Mar-12 205,481 205,481

Ogyris Pty Ltd Threaten species - Kneed Swainson-Pea Sep-11 Nov-11 17,000 17,000

Ogyris Pty Ltd Monitoring trends in native vegetation condition Dec-11 Jun-12 30,750 30,750

52


End Date




Parks Victoria Flood flow feasibility Dec-11 Mar-12 11,850 11,850

RMCG Building resilience of Mallee soils Nov-11 Sep-12 53,300 43,900 9,400

RMCG Community engagement & knowledge collation Nov-11 May-12 25,145 25,145

RMCG Environmental management action planning Apr-12 Jun-12 15,000 15,000

RMCG Operation & maintenance protocols Dec-11 Jun-12 97,681 97,681

Sinclair Knight Merz Mallee Salt Status Report Mar-12 Jun-12 106,106 106,106

Sinclair Knight Merz Mallee Salinity Statement Apr-12 Jun-12 52,000 52,000

Sinclair Knight Merz Community capacity for the protection & enhancement of Buloke woodlands Feb-12 Jun-12 12,300 12,300

Sinclair Knight Merz Salinity calculations and reporting for Psyche Bend Lagoon Jan-12 Jun-12 13,487 13,487

Sunraysia Environmental Services Environmental water delivery & monitoring Aug-11 Feb-12 13,510 13,510

Sunraysia Environmental Services Protecting the Murray River frontage Aug-11 Feb-12 35,295 35,295

Sunraysia Environmental Services Willow data collection Oct-11 Feb-12 14,320 14,320

SunRISE 21 Inc Irrigated Horticulture Crop Report Dec-11 Jun-12 112,900 112,900

Thiess Services Pty Ltd Mallee groundwater monitoring Mar-12 Jun-12 124,975 124,975

53


End Date




Trust for Nature Providing permanent protection covenants Buloke woodlands Oct-11 Dec-11 50,000 50,000

Water Technology Pty Ltd Flood flow feasibility Dec-11 May-12 18,821 18,821

Water Technology Pty Ltd Culgoa flood study May-12 Jun-12 10,053 10,053

Wildlife Profiles Pty Ltd Threatened species - Orange Sun Moth Jan-12 Jun-12 16,000 16,000

Wildlife Profiles Pty Ltd Threatened species - Mildura Ogyris Jan-12 Jun-12 16,000 16,000

Total 3,982,088 3,972,688 9,400

54

Significant changes in financial position during the year

There were no significant matters which changed the Mallee CMA’s financial position during the reporting period.

Major changes or factors affecting performance

Factors that affected the Authority’s performance during the reporting period included:

Rainfall/Flooding Record breaking rainfall events and major flooding that occurred across the Mallee CMA region in late 2010 and early 2011. This impacted heavily on the farming community, as well as residents of townships such as Culgoa, Irymple, Red Cliffs and Mildura. As a result, the Victorian Government’s Flood Employment Program commenced in the Victorian Mallee during mid-2011 and continued throughout the reporting period.

Subsequent events

There were no events occurring after balance date which may significantly affect the Mallee CMA’s operations in subsequent reporting periods.

Freedom of information

The Mallee CMA is considered to be a ‘government agency’ under the terms of the Freedom of Information Act 1982. Accordingly, it is required to comply with the procedures that have been prescribed by which members of the public may gain access to information held by agencies. A decision to release information is made by an authorised officer. The authority has determined that its authorised officer is the Department of Sustainability and Environment’s Freedom of Information Manager, Ms. Deidre Egan (03) 9637 8575.

Access to Mallee CMA documents is obtainable by written request, as detailed in Section 17 of the Act. Applications must be as detailed as possible so that the Mallee CMA Freedom of Information Officer can identify and locate the relevant documents. All applications must include the statutory lodgement fee of $25.10, effective from 1 July 2011. This fee does not include the costs for providing access to the requested material. Freedom of information fees and charges are not subject to GST. Requests to the Mallee CMA should be sent to the Freedom of Information Officer, Mallee CMA, PO Box 5017, Mildura, 3502. The telephone contact number is (03) 5051 4377. Enquiries can be emailed to [email protected] or faxed to (03) 5051 4379. Principal Officer: Linda Pratt

One Freedom of Information (FOI) request was received during the reporting period.

Additional Information available on request

The following information is available on request, subject to the Freedom of Information Act 1982:

• A statement that declarations of pecuniary interests have been duly completed by all relevant officers;

• Details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary;

• Details of publications produced by the Mallee CMA, and how these can be obtained; • Details of changes in prices, fees, charges, rates and levies charged by the Mallee CMA; • Details of any major external reviews carried out on the Mallee CMA; • Details of major research and development activities undertaken by the Mallee CMA; • Details of overseas visits undertaken including a summary of the objectives and outcomes of

each visit;

55

• Details of major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the Mallee CMA and its services;

• Details of assessments and measures undertaken to improve the occupational health and safety of employees;

• A general statement on industrial relations within the Mallee CMA and details of time lost through industrial accidents and disputes; and

• A list of major committees sponsored by the Mallee CMA, the purposes of each committee and the extent to which the purposes have been achieved.

Compliance with the Building Act 1993

The Mallee CMA is a tenant of the Department of Treasury and Finance Victorian Government Property Group in the Department of Primary Industries buildings in Mildura, Ouyen and Swan Hill. As such, the Authority does not have the capacity to require building approvals.

National Competition Policy

Competitive neutrality seeks to enable fair competition between government and private sector businesses. Any advantages or disadvantages that government businesses may experience, simply as a result of government ownership should be neutralised. The Mallee CMA continues to implement and apply this principle in its business undertakings.

Whistleblowers Protection Act

The Whistleblowers Protection Act 2001 came into effect on 1 January 2002. The Act is designed to protect people who disclose information about serious wrong doings within the Victorian Public Sector and to provide a framework for the investigation of these matters.

Disclosures of improper conduct or detrimental action by the Mallee CMA or its employees may be made to the following officer:

• The Protected Disclosure Coordinator, Linda Pratt, telephone (03) 5051 4377.

All correspondence, phone calls and emails from internal or external whistleblowers will be referred to the Protected Disclosure Coordinator. Where a person is contemplating making a disclosure and is concerned about approaching the Protected Disclosure Coordinator or a protected disclosure officer in the workplace, he or she can call the relevant officer and request a meeting in a discreet location away from the workplace. During the reporting period there were no disclosures made under the Whistleblowers Protection Act 2001.

Alternative Contact Persons

A disclosure about improper conduct or detrimental action by the Mallee CMA or its employees may also be made directly to the Ombudsman:

Ombudsman Victoria

Level 9, 459 Collins Street (North Tower)

Melbourne Victoria 3000.

Telephone: 9613 6222

Toll free: 1800 806 314

A copy of the Mallee CMA Whistleblowers Protection Policy can be viewed as Appendix 2.

56

Risk Management Compliance Attestation

I, Sharyon Peart, certify that the Mallee CMA has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard AS/NZS ISO 31000-2009 (or its successor) and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Mallee CMA Audit Committee verifies this assurance and that the risk profile of the Mallee CMA has been critically reviewed within the last 12 months.

Sharyon Peart Chairperson 21 August 2012

Office-based environmental impacts

The Mallee CMA continues to work toward more sustainable practices while conducting its business in both the office and field environment. The Mallee CMA has sought to modify its operations in accordance with its Environmental Strategy that identifies significant environmental impacts and measures for the reduction in usage of resources and waste production. As a member of the Irymple site user group, the Mallee CMA has become an integral player in the quest to modify practices to enable the site to improve its environmental sustainability and to reduce environmental impacts.

As a tenant of a Department of Primary Industries’ (DPI) facility at Irymple resource usage is monitored and controlled by DPI as the landlord. All measures implemented by the Mallee CMA contribute to the whole of site energy efficiencies and contribute toward the DPI energy resource usage.

57

Mallee CMA Environmental Measures

Outputs Activity 2011 Actual

2012 Target

Comment

Waste disposal – separation of office waste into classes’ e.g. paper, recyclable plastics, rubbish

75% 75% Reduction in total hard waste (Anecdotal evidence).

Black and white printing set as default 100% 100% Cartridge recycled through suppliers.

Reduction and Recycling of cartridges and consumables containers

100% 100% Containers recycled through site. Reduce Waste

Recycling of mobile phones and un-serviceable equipment

100% 100%

FTE mobile phones are recycled when replaced with new handsets.

Surplus or obsolete equipment sent to Waste Management Centre – MRCC “Round Again” reuse facility.

Reduce paper Double-sided printing or copying set as default and jobs sent to mail box to reduce paper usage

2.5 3.9 Reams A4 per FTE per quarter

Ensure lights are switched off when offices are not in use or after hours

* *

Switching off computers and monitors in after hours

100% 100% Reduce Energy Consumption

Energy saving /Power down mode enabled when equipment is not in use

* *

Entries marked with an asterix (*) contributes to the whole of site target, measured by DPI as a reduction in energy intensity in DPI facilities, expressed as MJ/m2 floor area.

Reduce Water Use “water wise” car washing facilities 100% 100% Usage per FTE on occurrence

Reduce Fuel Consumption

Purchasing or leasing of fuel efficient vehicles e.g. hybrid, LPG or diesel vehicles to improve fuel efficiency of fleet

10.00L/

100km

10.25/

100km

Review of Vehicle Fleet under ResourceSmart Government Program

58

Outputs Activity 2011 Actual

2012 Target

Comment

Selecting the right type of vehicle for the job e.g. road car for long trip as opposed to 4WD or right type of vehicle for towing

Action by FTE on occurrence

Car pool to meetings, conferences and field activities.

Action by FTE on occurrence

Sharing taxis and vehicles to travel to/from airports

65% 70% % of Total trips undertaken by FTE Reduction to Carbon footprint

Direct routes on airlines Not measured

Not measured

Where possible - Reduction to Carbon footprint

Staff participation in events e.g. Ride to Work Day, Walk to Work Day

50% 60% Participation by % of FTE

Awareness and education at staff training sessions

6 4 Site awareness Awareness raising

Posters, fliers, newsletters 6 4 Site awareness

59

Part 2 Financial Operations

Section 5 - Financial Statements

For the year ended 30 June 2012

60

61

62

63

MALLEE CATCHMENT MANAGEMENT AUTHORITY

COMPREHENSIVE OPERATING STATEMENT

For the year ended 30 June 2012 Notes 2012 2011

$ $

Revenue from operating activities

Government contributions 4(a) 11,973,142 10,924,322

Revenue from non-operating activities

Interest received 4(b) 1,188,901 1,227,987

Other income 4(c) 3,861,322 3,703,861

TOTAL REVENUE 17,023,365 15,856,170

Expenses from operating activities

Corporate expenditure 5(a) (1,179,751) (1,049,865)

Administration expenditure 5(b) (1,766,477) (1,428,958)

Works programs expenditure 6 (14,577,561) (11,950,686)

5 (28,000) 64,543

Gain on sale of financial assets 5 4,900 9,200

TOTAL EXPENSES (17,546,889) (14,355,766)

COMPREHENSIVE RESULT FOR THE PERIOD (523,524) 1,500,404

The above Comprehensive Operating Statement should be read in conjunction with the accompanying notes.

Unrealised gain/(losses) on financial assets at fair value

through profit and loss

64


BALANCE SHEET

As at 30 June 2012 Notes 2012 2011

$ $

ASSETS

Current assets

Cash and cash equivalents 7 25,853,399 24,114,078

Receivables 8 870,402 781,959

Other financial assets 9 598,500 2,621,600

Total Current Assets 27,322,301 27,517,637

Non-Current Assets

Property, plant and equipment 10 811,390 741,021

Intangible assets 11 2,776 4,009

Total Non-Current Assets 814,166 745,030

TOTAL ASSETS 28,136,467 28,262,667

Current liabilities

Payables 12 867,313 670,934

Employee benefits 13 652,668 483,167

Total Current Liabilities 1,519,981 1,154,101

Non-Current liabilities

Employee benefits 13 164,203 132,759

Total Non-Current Liabilities 164,203 132,759

TOTAL LIABILITIES 1,684,184 1,286,860

NET ASSETS 26,452,283 26,975,807

EQUITY

Contributed capital 14(a) 4,097,335 4,097,335

Reserves 14(c) 22,354,948 22,878,472

TOTAL EQUITY 26,452,283 26,975,807

The above Balance Sheet should be read in conjunction with the accompanying notes.

65


STATEMENT OF CHANGES IN EQUITY TOTAL

For the reporting period ended 30 June 2012 Notes $

Balance at 1 July 2010 4,097,335 21,378,068 - 25,475,403

Net result for the year - - 1,500,404 1,500,404

Transfer to (from) committed funds reserve - 1,500,404 (1,500,404) -

Total comprehensive income for the year as reported in the

2011 Financial Report - 1,500,404 - 1,500,404

Balance at 30 June 2011 14 4,097,335 22,878,472 - 26,975,807

Net result for the year - - (523,524) (523,524)

Transfer to (from) committed funds reserve - (523,524) 523,524 -

Total comprehensive income for the year - (523,524) - (523,524)

Balance at 30 June 2012 14 4,097,335 22,354,948 - 26,452,283

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Contributed

Capital Reserves

Accumulated

Funds

66


CASH FLOW STATEMENT

For the reporting period ended 30 June 2012 Notes 2012 2011

$ $

Cash Flows from Operating Activities

Receipts from Government 11,947,350 11,759,458

Other Income 3,795,089 3,705,461

Interest received 1,192,483 1,359,461

16,934,922 16,824,380

Payments

Payments to suppliers and employees (16,959,038) (14,183,061)

Net cash (outflow) / inflow from operating activities 16(b) (24,116) 2,641,319

Cash Flows from Investing Activities

Payments for property, plant and equipment 10 (470,621) (522,993)

Proceeds from sale of property, plant and equipment 5(c) 210,958 257,875

Proceeds from sale of financial assets 2,023,100 1,926,257

Net cash (outflow) / inflow from investing activities 1,763,437 1,661,139

Net increase / (decrease) in cash and cash equivalents 1,739,321 4,302,458

Cash and cash equivalents at the beginning of the financial year 24,114,078 19,811,620

Cash and cash equivalents at the end of the financial year 7 & 16(a) 25,853,399 24,114,078

Financing arrangements - Nil.

The above Cash Flow Statement should be read in conjunction with the accompanying notes.

67


NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 30 June 2012

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Accounting

General

Accounting policies

Functional and presentation currency

Classification between current and non-current

Rounding

Historical cost convention

Accounting estimates

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of

financial assets, certain classes of property, plant and equipment and investment property.

The preparation of financial statements in conformity with AAS requires the use of certain accounting estimates that

affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual

results may differ from these estimates. It also requires management to exercise its judgement in the process of applying

the entity’s accounting policies.

This financial report of Mallee Catchment Management Authority (The Authority) is a general purpose financial report

that consists of an Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow

Statement and notes accompanying these statements. The general purpose financial report complies with Australian

Accounting Standards (AAS), interpretations, other authoritative pronouncements of the Australian Accounting

Standards Board, and the requirements of the Financial Management Act 1994 and applicable Ministerial Directions.

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets,

liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when

the cash is received or paid.

Unless otherwise stated, all accounting policies applied are consistent with those of the prior year. Where appropriate,

comparative figures have been amended to accord with current presentation and disclosure made of material changes to

comparatives.

Unless otherwise stated, amounts in the report have been rounded to the nearest dollar.

The annual financial statements were authorised for issue by the Chief Finance and Accounting Officer on 21 August

2012.

Items included in this financial report are measured using the currency of the primary economic environment in which

the Authority operates (‘the functional currency’). The financial statements are presented in Australian dollars, which is

the Authority's functional and presentation currency.

In the determination of whether an asset or liability is current or non-current, consideration is given to the time when

each asset or liability is expected to be realised or paid. The asset or liability is classified as current if it is expected to be

turned over within the next twelve months, being the Authority's operational cycle – see note 1(e) for a variation in

relation to employee benefits.

68




NOTE 1: SIGNIFICANT ACCOUNTING POLICIES - Continued

Financial statement presentation

(b) Revenue

Government grants and contributions

Interest and rents

Interest and rentals are recognised as revenue when earned or the service provided.

Other income

Other incomes are recognised as revenue on receipt or when the entitlement is established.

Employee Benefits

Superannuation

Repairs and maintenance

(d) Assets

Valuation of non-current physical assets

Routine maintenance, repair costs and minor renewal costs are expensed as incurred. Where the repair relates to the

replacement of a component of an asset that prolongs the useful life of the asset and the cost exceeds the capitalisation

threshold, the cost is capitalised and depreciated.

The entity has applied the revised AASB 101 Presentation of Financial Statements which became effective for reporting

periods beginning on or after 1 July 2011, and AASB 1054 Australian Additional Disclosures which became effective

for reporting periods beginning on or after 1 July 2011.

Plant, equipment and motor vehicles are measured at fair value. For the plant, equipment and vehicle asset class, where

the Authority is able to demonstrate that there is no evidence that a reliable market based fair value (or other fair value

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

Government grants and contributions are recognised as operating revenue on receipt or when the entity obtains control

of the contribution and meets certain other criteria as outlined by AASB 1004, whichever is the sooner, and disclosed in

the Comprehensive Operating Statement as government contributions. However, grants and contributions received from

the Victorian State Government, which were originally appropriated by the Parliament as additions to net assets or

where the Minister for Finance and the Minister for Water have indicated are in the nature of owners’ contributions, are

accounted for as Equity – Contributed Capital.

The amount recognised in the Comprehensive Operating Statement is the employer contributions for members of both

defined benefit and defined contribution superannuation plans that are paid or payable during the reporting period.

The Department of Treasury and Finance (DTF) in their Annual Financial Statements, disclose on behalf of the State as

the sponsoring employer, the net defined benefit cost related to the members of these plans as an administered liability.

Refer to DTF’s Annual Financial Statements for more detailed disclosures in relation to these plans.

These expenses include all costs related to employment (other than superannuation which is accounted for separately)

including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments and WorkCover premiums.

(c) Expenses

69





Impairment of assets

Depreciation and Amortisation of Non-current Assets

Class of Property, Plant & Equipment Depreciation Rate

Computer equipment 40%

Motor vehicles 22%

Office furniture and equipment 25%

Plant and equipment 30%

Leasehold improvements 20%

Operating leases

Depreciation is calculated using the reducing balance method to allocate their cost or revalued amounts, net of their

residual values, over their estimated useful lives, commencing from the time the asset is held ready for use. An asset's

residual value and useful life is reviewed, and adjusted if appropriate, at each balance sheet date.

Intangible assets with indefinite useful lives are tested annually as to whether their carrying value exceeds their

recoverable amount. All other assets are assessed annually for indicators of impairment. Financial instrument assets are

to be assessed at intervals considered appropriate by the Board in light of current economic conditions.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their

recoverable amount. Where an asset's carrying amount exceeds its recoverable amount, the difference is written-off by a

charge to the Comprehensive Operating Statement except to the extent that the write-down can be debited to an asset

revaluation reserve amount applicable to that class of asset.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less

costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the

present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed

that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced

unless a specific decision to the contrary has been made.

A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading revaluation reserve.

However, to the extent that an impairment loss on the same class of asset was previously recognised in the

Comprehensive Operating Statement, a reversal of that impairment loss is also recognised in the Comprehensive

Operating Statement.

Major depreciation rates used are listed below and are consistent with the prior year, unless otherwise stated:

All non-current physical assets that have a limited useful life are depreciated. Where assets have separate identifiable

components that have distinct useful lives and/or residual values, a separate depreciation rate is determined for each

component.

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as

operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to

the Comprehensive Operating Statement on a straight-line basis over the period of the lease, in the periods in which they

are incurred, as this represents the pattern of benefits derived from the leased assets.

70





Cash and Cash Equivalent Assets

For the purposes of the Cash Flow Statement, cash and cash equivalents include cash on hand, deposits held at call with

financial institutions, other short-term highly liquid investments with original maturities of three months or less that are

readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and

bank overdrafts. Bank overdrafts are shown with interest bearing liabilities on the Balance Sheet.

Receivables

Measurement of non current assets

(e) Liabilities

Trade and Other Payables

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are

written off. A provision for doubtful receivables is established when there is objective evidence that the Authority will

not be able to collect all amounts due according to the original terms of receivables. The amount of the provision 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 provision is recognised in the Comprehensive Operating Statement.

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

for impaired receivables. Trade receivables are treated as due thirty days after invoice date.

These amounts represent liabilities for goods and services provided to the Authority prior to the end of the financial

year, which are unpaid at financial year end. The amounts are unsecured and are usually paid within 14 days of

recognition.

Property, plant and equipment represent non-current assets comprising plant, equipment and motor vehicles, used by the

Authority in its operations. Items with a cost or value in excess of $1,000 and a useful life of more than one year are

recognised as an asset. All other assets acquired are expensed to the period they were purchased in.

All non current assets are recognised initially at cost and subsequently revalued at fair value less accumulated

depreciation and impairment in accordance with the requirements of Financial Reporting Direction (FRD) 103D. The

purchase method of accounting is used for all acquisitions of assets (including business combinations), regardless of

whether equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given, or

liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition.

Where assets are constructed by the Authority, the cost at which they are recorded includes an appropriate share of fixed

and variable overheads.

Assets acquired at no cost or for nominal consideration by the Authority are recognised at fair value at the date of

acquisition.

Property Plant and Equipment

71





Wages and salaries, annual leave and sick leave

Long service leave (LSL)

Superannuation

Employee benefit on-costs

Performance payments

Provisions

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at

the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

The amount charged to the Comprehensive Operating Statement in respect of superannuation represents the

contributions made by the Corporation to the superannuation plan in respect to the current services of entity staff.

Superannuation contributions are made to the plans based on the relevant rules of each plan.

Provisions are recognised when the Authority, as a result of a past event, has a legal or constructive obligation that can

be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Performance payments for the Authority’s Executive Officers are based on a percentage of the annual salary package

provided under their contracts of employment. A liability is recognised and is measured as the aggregate of the amounts

accrued under the term of the contracts to balance date.

In calculating present value, consideration is given to expected future wage and salary levels, experience of employee

departures and periods of service. Expected future payments are discounted using market yields at the reporting date on

national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future

cash outflows.

Liabilities for wages and salaries, annual leave and accumulating sick leave expected to be settled within 12 months of

the reporting date are recognised in employee benefit liabilities in respect of employees’ services up to the reporting

date and are measured at the amounts expected to be paid when the liabilities are settled, at their nominal values.

Employee benefits which are not expected to be settled within 12 months are measured at the present value of the

estimated future cash outflows to be made by the entity, in respect of services rendered by employees up to the reporting

date. Regardless of the expected timing of settlements, liabilities in respect of employee benefits are classified as a

current liability, unless there is an unconditional right to defer the settlement of the liability for at least 12 months after

the reporting date, in which case it would be classified as a non-current liability.

Current Liability – unconditional LSL (representing seven or more years of continuous service) is disclosed as a

current liability even where the Authority does not expect to settle the liability within 12 months because it will not have

the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

Non-Current Liability – conditional LSL (representing less than seven years of continuous service) is disclosed as a

non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has

completed the requisite years of service. Conditional LSL is required to be measured at present value.

Employee benefit on-costs, including payroll tax and workers' compensation are recognised and included in employee

benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities.

Present value – component that the Authority does not expect to settle within 12 months; and

Nominal value – component that the Authority expects to settle within 12 months.

72





(f) Equity

(g) Changes in Accounting Policy

The accounting policies of the Authority are consistent with those of the previous year unless stated otherwise.

(h) Good and Services Tax

(i) Financial Instruments

Recognition

Held-to-maturity investments

Available-for-sale financial assets

Fair value through profit or loss financial assets

Financial instruments are initially measured at fair value, plus transaction costs that are directly attributable to the

acquisition or the issue of the financial asset or liability. Subsequent to initial recognition, the financial instruments are

measured as set out below:

Additions to net assets which have been designated as contributions by owners are recognised as contributed capital.

Other transfers that are in the nature of contributions or distributions have also been designated as contributions by

owners. Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions

by owners.

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to

determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar

instruments and option pricing models.

Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair

value are taken directly to Equity.

Revenues, expenses and assets are recognised net of goods and services tax (GST), except where the amount of GST

incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as

part of the cost of acquisition of the asset or as part of an item of expense.

These investments have fixed maturities and it is the Authority’s intention to hold these investments to maturity. Any

held-to maturity investments held by the Authority are stated at cost.

Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO

is included as a current asset or liability in the Balance Sheet. Cash flows arising from operating activities are disclosed

in the Cash Flow Statement on a gross basis – i.e., inclusive of GST. The GST component of cash flows arising from

investing and financing activities which is recoverable or payable to the taxation authority is classified as operating cash

flows.

Fair value through profit or loss financial assets are reflected at fair value. Unrealised gains and losses arising from

changes in fair value are taken directly to the Comprehensive Operating Statement.

73





Impairment of financial assets

(j) Intangibles

(k) Comparative amounts

(l) Contingent assets and contingent liabilities

(m) Commitments

Commitments for future expenditure include operating and capital commitments arising from contracts. These

commitments are disclosed by way of a note (refer to Note 19) at their nominal value and exclusive of the goods and

services tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information

to users, the net present values of significant individual projects are stated. These future expenditures cease to be

disclosed as commitments once the related liabilities are recognised in the Balance Sheet.

Where the presentation or classification of items in the financial report is amended, comparative amounts shall be

reclassified unless reclassification is impracticable.

‘Software and software development costs’ are the only intangible assets currently recognised by the Authority. These

assets are both acquired and internally generated and have a finite useful life. They are measured at cost less

accumulated amortisation (calculated on a straight line basis, at a rate of 20%) less any accumulated impairment losses.

These assets are reviewed annually for indicators of impairment.

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note

(refer to Note 20) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented

exclusive of GST receivable or payable respectively.

Amortisation is allocated to intangible assets with finite useful lives on a systematic basis over the asset’s useful life.

Intangible assets represent identifiable non-monetary assets without physical substance. Intangible assets are recognised

at cost. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future

economic benefits will flow to the Authority.

At each reporting date, the Authority 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 value of the instrument is

considered to determine whether an impairment has arisen. Impairment losses are recognised in the Comprehensive

Operating Statement.

74




(a) Market Risk

(i) Foreign exchange risk

(ii) Price risk

The Authority's exposure to price risk is set out in the Table Note 2 (iv) below.

(iii) Cash flow and fair value interest rate risk

(iv) Market risk sensitivity analysis

Carrying

30 June 2012 Amount Result Equity Result Equity Result Equity Result Equity

$ $ $ $ $ $ $ $ $

Financial Assets

Cash and Cash equivalents 25,853,399 (517,068) (517,068) 258,534 258,534 - - - -

Receivables 870,402 - - - - - - - -

Other financial assets (floating rate notes) 598,500 (11,970) (11,970) 5,985 5,985 (23,940) (23,940) 5,985 5,985

Financial Liabilities

Payables 867,313 - - - - - - - -

Total increase / (decrease) (529,038) (529,038) 264,519 264,519 (23,940) (23,940) 5,985 5,985

-4% +1%

Interest rate risk Other price risk

-2% +1%

The following table summarises the sensitivity of the Authority’s financial assets and financial liabilities to interest rate risk and

other price risk.

Cash flow and fair value interest rate risk refers to the risk that the fair value of a financial instrument or cash flows associated

with the instrument will fluctuate due to changes in market interest rates. The Authority's exposure to interest rate risk is limited

to financial assets as it has no interest bearing liabilities and that risk is managed by adopting an investment policy which

ensures conformity with state and federal treasury and investment policy, regulations and standards.

The only exposure to price risk the Authority has is in relation to assets at fair value through profit and loss. The Authority

manages its risk through the implementation of a cash investments policy which sets out minimum credit ratings and acceptable

lines of investments which must be adopted. All new investments held by the Authority should be held in cash or near cash

equivalents, therefore negating any future exposure to price risk. The Authority makes the assumption the exposure to price risk

is more likely to be positive as assets at fair value through profit and loss move closer to maturity.

NOTE 2: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Authority's activities expose it to a variety of financial risks. The Authority's overall risk management program focuses on

the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the

Authority. The Authority uses different methods to measure different types of risk to which it is exposed. These methods

include sensitivity analysis in the case of interest rate and other price risks, ageing analysis for credit risk and beta analysis in

respect of investment portfolios to determine market risk.

Risk management is carried out by the Corporate Services Unit under policies approved by the Board of Management.

Corporate Services identifies, evaluates and hedges financial risks in close co-operation with the Authority's operating units.

The Board provides written principles for overall risk management, as well as policies covering specific areas, such as interest

rate risk, credit risk and investment of excess liquidity.

The Authority does not have any foreign exchange dealings and therefore has no exposure to this risk.

75




Carrying

30 June 2011 Amount Result Equity Result Equity Result Equity Result Equity

$ $ $ $ $ $ $ $ $

Financial Assets

Cash and Cash equivalents 24,114,078 (482,282) (482,282) 241,141 241,141 - - - -

Receivables 781,959 - - - - - - - -

Other financial assets (floating rate notes) 2,621,600 (52,432) (52,432) 26,216 26,216 (104,864) (104,864) 26,216 26,216

Financial Liabilities

Payables 670,934 - - - - - - - -

Total increase / (decrease) (534,714) (534,714) 267,357 267,357 (104,864) (104,864) 26,216 26,216

(b) Credit risk

(c) Liquidity risk

The Authority has funds on deposit with Treasury Corporation Victoria who have a Standard and Poor's long term credit rating

of AAA, Commonwealth Banking Corporation, AA- and National Australia Bank AA-.

The Authority administers numerous project costs and usually receives funding on a quarterly or annual basis from funding

sources. Operational costs and overheads are carried by the Authority in the intervening months between funding receipts.

The Authority has a conservative Board and will not approve the commencement of expenditure on a program until the receipt

of a letter of approval duly authorised by the relevant Minister. An annual budget process is established to identify potential

cash flow deficiencies throughout the year. Regular forecasts monitors expenditure against budget.

The policies of the Authority are consistent with those of the previous year.

NOTE 2: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES - Continued

The Authority has exposure to credit risk from funding application approvals where the funding is yet to be received.

The Authority only accounts for funding to be received once final approval has been declared. A significant portion of

receivables are from government funding sources and are not expected to have any recoverability issues.

The policies of the Authority are consistent with those of the previous year.

Interest rate risk Other price risk

-2% +1% -4% +1%

76




(d) Fair value measurements

The following tables present the Authority's assets and liabilities measured and recognised at fair value at 30 June 2012.

At 30 June 2012 Level 1 Level 2 Level 3 Total

$ $ $ $

Assets

Financial assets at fair value through profit or loss 598,500 - - 598,500

Total assets 598,500 - - 598,500

At 30 June 2011 Level 1 Level 2 Level 3 Total

$ $ $ $

Assets

Financial assets at fair value through profit or loss 2,621,600 - - 2,621,600

Total assets 2,621,600 - - 2,621,600

There are no changes in level 3 instruments for the year ended 30 June 2012.

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter

derivatives) is determined using valuation techniques. The Authority uses a variety of methods and makes assumptions

that are based on market conditions existing at the end of each reporting period. Quoted market prices or dealer quotes

for similar instruments are used to estimate fair value for long-term debt for disclosure purposes. Other techniques,

such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments. The

fair value of interest rate swaps is calculated as the present value of the estimated future cash flows. The fair value of

forward exchange contracts is determined using forward exchange market rates at the end of the reporting period. These

instruments are included in level 2 and comprise debt investments and derivative financial instruments. In the

circumstances where a valuation technique for these instruments is based on significant unobservable inputs, such

instruments are included in level 3.

NOTE 2: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES - Continued

As of 1 July 2009 the Authority has adopted the amendment to AASB 7 Financial Instruments: Disclosures which

requires disclosure of fair value measurements by level of the following fair value measurements hierarchy:

(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),

(b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly

(as prices) or indirectly (derived from prices) (level 2), and

(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).

The carrying amounts of trade receivables and payables are assumed to approximate their fair values due to their short-

term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future

contractual cash flows at the current market interest rate that is available to the Authority for similar financial

instruments.

77



For the Year Ended 30 June 2012 2012 2011

$ $

NOTE 3: CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

NOTE 4: OPERATING STATEMENT - DISCLOSURES

(a) Government Contributions

(i) State Government

Catchment Planning (CW*)

Governance (Board), Implementation Committees & Business Management 520,615 1,686,448

Regional Landcare Coordination 1,180,000 538,000

Landcare 208,000 -

Water Asset Investment & Evaluation (CW)

Victorian Water Trust Smart Farms - 160,000

Sustainable Irrigation Program (CW)

Sustainable Irrigation 674,000 783,000

River Health (CW)

River Health Planning & Implementation 143,000 149,000

Our Water Our Future 480,000 482,150

Waterway Strategy Implementation 1,149,205 494,000

Drought Relief Assistance 308,966 710,224

Natural Resource Investment Program (NRIP) 2,310,000 2,797,500

Flood Emploment Program Funding 10/11 750,000 400,000

NDRRA - Flood Recovery 423,856 -

Recreational Fishing Grants 48,000 -

8,195,642 8,200,322

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including

expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the

circumstances.

The Authority may make estimates and assumptions concerning the future. The resulting accounting estimates will, by

definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of

causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

* Projects identified with CW are funded through the Catchment and Water Division within the Department of

Sustainability and Environment.

78




$ $

NOTE 4: OPERATING STATEMENT - DISCLOSURES - Continued

(ii) Other Commonwealth

Caring for Our Country 2,724,000 2,724,000

Other 1,053,500 -

3,777,500 2,724,000

Total Government Contributions 11,973,142 10,924,322

(b) Revenue from Non Operating Activities

Interest Received 1,188,901 1,227,987

(c) Other Revenues

Regional Contributions 1,750,000 2,060,271

Salinity Levies 1,990,221 1,610,406

Sundry Income 121,101 33,184

3,861,322 3,703,861

Total Revenue 17,023,365 15,856,170

79




$ $

NOTE 5: NET GAINS & EXPENSES

The surplus/(deficit) from ordinary activities includes the following specific net gains and expenses:

Net gain/(loss) on disposal

- Gain on disposal of financial assets 4,900 9,200

- Estimated unrealised gain(loss)on financial assets (28,000) 64,543

(23,100) 73,743

(a) Corporate Expenditure

Board members' remuneration and on costs (135,449) (124,680)

Board operational costs (142,684) (113,967)

Implementation committee remuneration (11,083) (13,182)

Implementation committee operational costs (42,126) (67,562)

Depreciation and amortisation of non-current assets (193,295) (178,228)

Profit/(loss) on disposal of non current assets 2,768 (3,663)

Bank charges (1,426) (1,476)

Insurance (21,756) (26,600)

Audit fees (internal audit) (32,830) (26,455)

Audit fees (external audit) (8,850) (8,700)

Payroll tax (230,195) (162,101)

Fringe benefits tax (36,005) (16,401)

Occupancy rental costs (303,113) (299,000)

Corporate development and training (23,707) (7,850)

(1,179,751) (1,049,865)

(b) Administration Expenditure

Administration salaries & on costs (861,535) (767,260)

Office supplies and stationery (66,787) (55,269)

Computer and office equipment expenses (99,175) (139,478)

Operating leases (7,954) (29,194)

Telephone and facsimile (36,385) (10,050)

Meetings (13,217) (10,208)

Advertising (12,916) (4,986)

Consultancy costs (231,752) (45,773)

Memberships and subscriptions (2,691) (6,683)

Motor vehicle (169,219) (119,647)

Travel (60,851) (49,544)

Sponsorships (11,166) (7,068)

Other expenses (192,829) (183,798)

(1,766,477) (1,428,958)

(c) Profit on Disposal of Assets (included in Corporate expenditure above)

Proceeds on sale of assets 210,958 257,875

Written down value of assets sold (208,190) (261,538)

Net gain/(loss) on disposal 2,768 (3,663)

80




$ $

NOTE 6: PROGRAMS EXPENDITURE

Works programs salaries and on costs (5,071,356) (3,230,892)

Consultancy costs (3,992,679) (3,257,256)

Contractor costs (3,723,976) (3,681,201)

Incentives paid (1,356,160) (1,293,998)

Other expenses (433,390) (487,339)

(14,577,561) (11,950,686)

NOTE 7: CASH AND CASH EQUIVALENTS

Petty cash float 1,000 1,000

Cash at bank 615,612 1,847,749

Deposits at call 25,236,787 22,265,329

25,853,399 24,114,078

Balance as above 25,853,399 24,114,078

Bank overdrafts - -

Balance as per Cash Flow Statement 25,853,399 24,114,078

(b) Cash at Bank and on Hand

These are held in interest bearing operating accounts.

(c) Deposits at Call

All cash and cash equivalents held at balance date are committed to specific projects for which funding has been

provided to the Authority. Refer Note 25 for details of programs with funds committed at balance date.

The deposits are bearing floating interest rates between 2.00% and 3.57% (2011: 2.75% and 4.70%).

(a) Reconciliation to Cash at the End of Year

The above figures are reconciled to cash at the end of the financial year as shown in the Cash Flow Statement, as

follows:

81




$ $

NOTE 8: RECEIVABLES

Current

Trade receivables 736,918 711,126

Other receivables 133,484 70,833

870,402 781,959

(a) Provision for Impaired Receivables

Up to 6 months 870,402 781,959

(b) Fair Value and Credit Risk

NOTE 9: OTHER FINANCIAL ASSETS

Fair value through profit or loss 598,500 2,621,600

(a) Risk Exposure

Other financial assets at fair value through profit or loss are denominated in the following currencies:

Australian Dollar 598,500 2,621,600

(b) Fair Value through Profit or Loss Assets

Impairment and risk exposure

For an analysis of the sensitivity of other financial assets at fair value through profit or loss to price risk refer to Note 2.

Changes in fair values of other financial assets at fair value through profit or loss are recorded in other income in the

Comprehensive Operating Statement where an increase in value has been recorded or as an impairment of financial

assets expense in the case of a decrease in value.

Due to the short-term nature of the current receivables, their carrying value is assumed to approximate their fair value.

The maximum exposure to credit risk at the reporting date is the higher of the carrying value and fair value of each

class of receivables mentioned above. The Authority does not hold any collateral as security. Refer to Note 2 for more

information of the risk management policy of the Authority.

As of 30 June 2012, there were no impaired receivables (2011: Nil). Unimpaired trade receivables that are past due

relate to a number of independent customers for whom there is no history of default. The ageing analysis of these

receivables is as follows:

82




$ $

The maximum exposure to credit risk at the reporting date is the carrying amount of the assets. None of the fair value

through profit or loss assets are either past due or impaired - refer Note 2. All fair value through profit or loss assets are

denominated in Australian currency. As a result, there is no exposure to foreign currency risk. There is also no

exposure to price risk where the assets are held to maturity, whereas assets disposed or redeemed prior to maturity date

are exposed to price risk.

83




$ $

NOTE 10: PROPERTY, PLANT & EQUIPMENT

(a) Classes of Property, Plant and Equipment

Motor vehicles

At fair value 779,112 686,508

Less: Accumulated depreciation (149,122) (114,714)

629,990 571,794

Office furniture & equipment

At fair value 100,788 100,484


20,284 27,078

Plant & equipment

At fair value 316,767 254,996


126,314 98,066

Leasehold improvements

At fair value 46,403 46,403


34,802 44,083

Total Property, Plant & Equipment 811,390 741,021

(b) Movements during the Reporting Period

2011-2012

Opening WDV

at 1 July 2011 Additions Disposals Depreciation

Closing WDV

at 30 June

2012

$ $ $ $ $

Motor vehicles at fair value 571,794 398,998 (206,540) (134,262) 629,990

Office furniture & equipment at fair value 27,078 3,152 (242) (9,704) 20,284

Plant & equipment at fair value 98,066 68,471 (1,408) (38,815) 126,314

Leasehold improvements at fair value 44,083 - - (9,281) 34,802

Total Property, Plant and Equipment 741,021 470,621 (208,190) (192,062) 811,390

2010-2011

Opening WDV

at 1 July 2010 Additions Disposals Depreciation

Closing WDV

at 30 June

2011

$ $ $ $ $

Motor vehicles at fair value 548,663 411,323 (258,544) (129,648) 571,794

Office furniture & equipment at fair value 27,207 13,142 (2,437) (10,834) 27,078

Plant & equipment at fair value 77,901 52,126 (557) (31,404) 98,066

Leasehold improvements at fair value - 46,402 - (2,319) 44,083

Total Property, Plant and Equipment 653,771 522,993 (261,538) (174,205) 741,021

84




$ $

NOTE 11: INTANGIBLE ASSETS - Software Licences

Balance at beginning of reporting period 109,334 109,334

Less accumulated amortisation (106,558) (105,325)

Closing WDV at 30 June 2,776 4,009

NOTE 12: PAYABLES

Trade Creditors 566,901 511,076

Other Creditors and Accruals 300,412 159,858

867,313 670,934

The ageing of these payables is as follows:

Current - 30 Days 867,313 670,934

(a) Foreign Currency and Interest Rate Risk for Payables

NOTE 13: EMPLOYEE BENEFITS

Current

299,381 288,605

20,123 38,413

333,164 156,149

Total Current 652,668 483,167

Non-current

Conditional long service leave measured at present value 164,203 132,759

Total Non-Current 164,203 132,759

Total Employee Benefits 816,871 615,926

The following assumptions were adopted in measuring the present value of long service leave entitlements:

Weighted average increase in employee costs 4.30% 4.60%

Weighted average discount rates 3.10% 5.30%

Long service leave entitlements expected to be settled within 12 months measured at

nominal value representing 7 years of continuous service

Long service leave entitlements expected to be settled after 12 months measured at

nominal value representing 7 years of continuous service

Annual leave entitlements

The Authority has no dealings in foreign currency concerning payables and therefore has no exposure to foreign

currency risk. The Authority operates within generally accepted credit arrangements, where every attempt is made to

pay accounts promptly. The Authority does not have any formal contractual arrangements concerning interest on

outstanding payables. There is no interest rate risk exposure on payables.

85




$ $

NOTE 14: EQUITY

(a) Contributed Capital

Opening balance 1 July 4,097,335 4,097,335

Closing balance at 30 June 4,097,335 4,097,335

(b) Accumulated Funds

Opening balance 1 July - -

Retained surplus (523,524) 1,500,404

Net transfer to committed funds reserve 523,524 (1,500,404)

Closing balance at 30 June - -

(c) Reserves

Composition of reserves

General reserve surplus/(deficit) 21,430,720 21,907,841

Capital renewals reserve surplus/(deficit) 924,228 970,631

Total reserves 22,354,948 22,878,472

Committed Funds Reserve

Opening balance 1 July 21,907,841 20,307,437

Net transfers (to)/from accumulated surplus (523,524) 1,500,404

Net transfer (to)/from capital renewals reserve 46,403 100,000

Closing balance at 30 June 21,430,720 21,907,841

Capital Renewals Reserve

Opening balance 1 July 970,631 1,070,631

Net transfers (to)/from committed funds (46,403) (100,000)

Closing balance at 30 June 924,228 970,631

The general reserve contains amounts available to the Authority for the purpose of funding projects.

The capital renewals reserve contains amounts that have been set aside by the Authority for the purpose of funding

capital projects.

86




NOTE 15: FINANCIAL INSTRUMENTS

(a) Terms, Conditions and Accounting Policy

Recognised Financial

Instruments

(i) Financial Assets

Cash at bank 7

Receivables - debtors 8

Floating rate notes 9

(ii) Financial Liabilities

Payables - creditors and accruals 12

(b) Interest rate risk exposures

Recognised Financial Instruments

Weighted

average

effective

interest rate

Carrying

amount

Fixed interest

rate

Floating

interest rate

Non interest

bearing 1-3 months

3 months - 1

year 1-5 years Over 5 years

Impaired

financial

assets

% $ $ $ $ $ $ $ $ $

2012

(i) Financial assets

Cash at bank 4.53% 25,853,399 25,852,399 - 1,000 - - - - -

Receivables - debtors 0.00% 870,402 - - 870,402 - - - - -

Unsubordinated floating rate notes 5.34% 598,500 - 598,500 - - - - - -

(ii) Financial liabilities

Payables - Creditors 0.00% 867,313 - - 867,313 - - - - -

2011

(i) Financial assets

Cash at bank 4.74% 24,114,078 24,113,078 - 1,000 - - - - -

Receivables - debtors 0.00% 781,959 - - 781,959 - - - - -

Unsubordinated floating rate notes 5.70% 2,621,600 - 2,621,600 - - - - - -

(ii) Financial liabilities

Payables - Creditors 0.00% 670,934 - - 670,934 - - - - -

Fair Value

Monies invested long term are treated as assets at

fair value through the profit and loss.

Cash assets are measured at cost.

Quarterly interest payment and rate review.

Tradeable in multiples of $500,000 within term of

note.

Creditors and accruals are recognised for future

amounts to be paid in respect of goods and services

recevied.

Settlement of creditors is normally effected within

a 30 day term.

Terms and Conditions

Cash assets are at call or on term deposits with a

maturity up to 60 days.

Credit is allowed for a 30 day term.

The Authority's accounting policies including the terms and conditions of each class of financial asset, financial liability and equity instrument,

both recognised and unrecognised at balance date, are as follows:

Notes Accounting Policies

Debtors are carried at the nominal amounts due

less any provision for doubtful debts.

The following table sets out the Authority’s exposure to interest rate risk, including the contractual repricing dates and the effective weighted

average interest rate by maturity periods. Exposures arise predominantly from liabilities bearing variable interest rates as the Authority intends to

hold fixed rate liabilities to maturity.

The Authority believes that there are no events to indicate that any of the financial assets that are past due were impaired as at 30 June 2012 or 30

June 2011.

The Authority believes that there are no differences between the fair values and the carrying amount reported for in financial assets and financial

liabilities as at 30 June 2012 or 30 June 2011.

Interest rate exposure Past due but not impaired

87




$ $

NOTE 16: CASH FLOW INFORMATION

(a) Reconciliation of Cash

Cash on hand 1,000 1,000

Cash at bank 615,612 1,847,749

Short term cash deposits 25,236,787 22,265,329

Cash and Cash Equivalents 25,853,399 24,114,078

(b) Reconciliation of Result for the Period to Net Cash Flows from Operating Activities

Result for the period (523,524) 1,500,404

Add(Less)Non-Cash Flow in Net Result

Depreciation and amortisation 193,295 178,228

(Profit)/loss on sale of fixed assets (2,768) 3,663

190,527 181,891

Changes in assets and liabilities:

(Increase) / decrease in receivables (88,443) 968,211

Increase / (decrease) in payables 196,379 (109,793)

Increase / (decrease) in provisions 200,945 100,607

308,881 959,025

Net Cash (Outflow)/Inflow from Operating Activities (24,116) 2,641,320

NOTE 17: LEASE COMMITMENTS

Payments due:

Not later than one year 9,713 8,829

Later than one year but not later than 5 years 19,960 26,692

29,673 35,521

NOTE 18: OPERATING EXPENDITURE COMMITMENTS

Payments due:

Not later than one year: 2,619,657 2,295,121

Cash at the end of the financial year as shown in the Cash Flow Statement is reconciled to the related items in the

Balance Sheet as follows:

The Mallee CMA has entered into non-cancellable leases for various items of office equipment. No lease imposes

any additional restriction on the CMA in relation to additional debt or further leasing.

Leases in relation to office equipment permit the CMA, at expiry of the lease, to elect to re-lease, return or aquire

the equipment leased.

Commitments under non-cancellable operating leases that have not been recognised in the financial statements are

as follows:

As at 30 June 2012 the Authority had entered into significant operating contracts for materials and services.

88




$ $

NOTE 19: CAPITAL EXPENDITURE COMMITMENTS

Payments due:

Not later than one year 600,000 600,000

NOTE 20: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Board is unaware of any contingent liabilities or contingent assets as at 30 June 2012.( 2011 Nil )

NOTE 21: EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

No matters or circumstances have arisen since the end of the reporting period which significantly affected or may

significantly affect the operations of the Authority, the results of those operations, or the state of affairs of the

Authority in future financial years.

The Board of the Mallee CMA has been notified that the organisation is seeking to install new IT infrastructure at a

cost of approximately $600,000.

89




NOTE 22: RESPONSIBLE PERSONS AND EXECUTIVE OFFICER DISCLOSURES

(a) Responsible Persons

The names of persons who were responsible persons at any time during the financial year were as follows:

Period

01-Jul-11 30-Jun-12

01-Jul-11 30-Jun-12

01-Jul-11 30-Jun-12

01-Jul-11 30-Jun-12

01-Jul-11 30-Jun-12

01-Jul-11 30-Jun-12

01-Jul-11 30-Jun-12

01-Jul-11 30-Jun-12

01-Jul-11 30-Jun-12

01-Jul-11 30-Jun-12

01-Oct-11 30-Jun-12

01-Jul-11 30-Jun-12

Remuneration of Responsible Persons

2012 2011

$ $

319,194 315,601

Number Number

1 1

7 7

1 1

1 1

Total 10 10

Retirement Benefits of Responsible Persons

Name Position

$0 to $9,999

$10,000 to $19,999

$20,000 to $29,999

$180,000 to $189,999

Ms Paula Gordon

Mr Robert Jones

Mr Paul Grigg

Ms Jennifer Collins

Mr Geoff Anderson

Mr John Arnold

Mr William Lee

Mr Brian Englefield

The Hon. Ryan Smith MLA

Peter Walsh MLA

Ms Sharyon Peart

Mr Anthony Martin

Board Member

Board Member

Board Member

Chief Executive Officer

Board Member

Board Member

Board Member

Board Member

Minister for Environment and Climate

Minister for Water

Chairperson

Deputy Chairperson

Remuneration paid to Ministers is reported in the Annual report of the Department of Premier and Cabinet. Other relevant

interests are declared in the Register of Members' Interests which each member of the Parliament completes.

There was no remuneration received, or due and receivable from the Authority in connection with the

management of any related party entity.

There were no retirement benefits paid by the Authority in connection with the retirement of responsible persons.

Remuneration received, or due and receivable from the Authority in

connection with the management of the Authority (includes termination

payments and bonuses paid at the end of contracts).

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

Remuneration bands

90




NOTE 22: RESPONSIBLE PERSONS AND EXECUTIVE OFFICER DISCLOSURES - Continued

Other Transactions

Loans:

Shares:

Remuneration:

(b) Remuneration of Executives

2012 2011 2012 2011

1 1 1 3

1 - 2 -

- 3 1 -

2 - - -

1 - - -

5 4 4 3

5 4 4 3

646,123 485,146 468,620 310,000

$140,000 to $149,999

Total number of executives

Total amount ($)

Income Band

$100,000 to $109,999

$110,000 to $119,999

Base RemunerationTotal Remuneration

There were no loans in existence by the Authority to responsible persons or related parties at the date

of this report.

There were no share transactions in existence by the Authority to responsible persons or related

parties during the financial year.

There were no amounts paid by the Authority in connection with the retirement of responsible

persons of the Authority during the financial year.

$120,000 to $129,999

$130,000 to $139,999

Mr Anthony Martin's wife is a consultant with MIR Lawyers, a legal firm that has provided legal advice to the Authority

during the year on normal commercial terms and conditions at a total cost of $120 plus GST.

Several factors have affected total remuneration payable to executives over the year. A number of employment contracts

were renegotiated and bonuses that related to the 2010/11 financial year were paid after the completion of that financial

year. As the amounts payable were not known they were not included in total remuneration in last year's annual report

which is consistent with the treatment of bonuses in previous years. These bonus payments depended on the terms of

individual employment contracts. In 2011/12 bonuses for executive officers were replaced by a one off increase in base

remuneration.

Total annualised employee equivalent

The number of executive officers of the Authority, other than responsible persons included under "Remuneration of

Responsible Persons" above, whose remuneration from the Authority falls within the specified bands shown in the table

below. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and

retirement benefits. The total annualised employee equivalent provides a measure of full time equivalent executive officers

over the reporting period.

91




$ $

NOTE 23: SUPERANNUATION

Superannuation Name Type of Scheme Rate*

AMP Flexible Lifetime Super Defined Contribution 9% 10,437 8,554

AMP Investment Linked Personal Super Defined Contribution 9% 3,854 -

AMP Superleader Defined Contribution 9% 2,260 -

Asgard Business Superannuation Defined Contribution 9% 2,625 2,507

Australian Ethical Superannuation Defined Contribution 9% 279 3,298

Australian Super Defined Contribution 9% 8,807 10,792

Construction and Building Industry Super Defined Contribution 9% 712 -

Clear View Life Nominees Defined Contribution 9% 5,534 5,129

Colonial First Choice Defined Contribution 9% 7,238 4,514

Colonial First State Rollover and Superannuation Fund Defined Contribution 9% 1,887 -

Colonial First State First Choice Wholesale Personal Super Defined Contribution 9% 3,666 -

First State Super Defined Contribution 9% 6,450 3,884

Host Plus Defined Contribution 9% 428 -

Mercer Super Trust Defined Contribution 9% 2,643 -

MLC Masterkey Superannuation Defined Contribution 9% 15,985 11,454

MLC Masterkey Super Goldstar Defined Contribution 9% 1,435 -

MLC the Employee Retirement Plan Defined Contribution 9% 3,320 -

OnePath Integra Super Defined Contribution 9% 5,668 1,999

Plum Superannuation Fund Defined Contribution 9% 1,344 2,983

Prime Super Defined Contribution 9% 2,649 -

Recruitment Super Defined Contribution 9% 1,249 -

Retail Employees Super Trust Defined Contribution 9% 7,890 8,189

Vic Super Pty Ltd Defined Contribution 9% 281,225 198,992

Vision Super Defined Contribution 9% 26,385 13,545

Zurich Superannuation Fund Defined Contribution 9% 1,894 -

Other Superannuation Funds Defined Contribution 9% 5,002 -

Total contributions to all funds 410,867 275,840

The Authority contributes in respect of its employees, to the following superannuation schemes:

*Whilst the Authority pays the standard statutory of 9% on employee's remuneration, some employees also make salary sacrifice

contributions.

As at balance date there were no outstanding contributions payable to the above funds, and no balances repayable in respect of loans

made to the Authority from any fund.

92




NOTE 24: ECONOMIC DEPENDENCE

NOTE 25: CONTRIBUTIONS SUBJECT TO RESTRICTIONS

Opening Amount Amount Closing Committed Uncommitted

Funding Categories - 2011/12 Balance Received Expensed Balance Funds Funds

$ $ $ $ $ $

Land 2,135,540 3,186,520 (4,046,238) 1,275,822 1,275,822 -

Rivers and Wetlands 1,422,148 6,618,107 (6,246,249) 1,794,006 1,794,006 -

Regional Sustainability 1,142,932 2,528,291 (1,342,029) 2,329,194 2,329,194 -

People Program Support 239,851 - (239,851) - - -

Governance Program 6,178,875 2,173,488 (4,098,490) 4,253,873 1,636,236 2,617,637

Administered Funding 15,856,461 2,516,959 (1,599,032) 16,774,388 16,774,388 -

Strategy and Planning - - 25,000.00 25,000 25,000 -

Total of Funding Categories 26,975,807 17,023,365 (17,546,889) 26,452,283 23,834,646 2,617,637



$ $ $ $ $ $

Biodiversity & Landcare 730,444 2,366,731 (1,898,026) 1,199,151 1,199,149 -

Waterways, Wetlands and Floodplains 3,089,834 4,140,988 (5,808,675) 1,422,147 1,422,147 -

Water Resources 2,073,874 1,471,205 (2,503,171) 1,041,908 1,041,908 -

Land Resources 1,104,616 2,736,946 (2,768,458) 1,073,104 1,073,104 -

People Program Support 113,396 1,424,655 (1,298,200) 239,851 239,851 -


Administered Funding 14,070,122 2,193,544 (407,205) 15,856,461 15,856,461 -


2012 2011

$ $

Funds committed as at 30 June 2012 are anticipated to be expended as follows:

External service providers 21,348,736 22,224,298

Internal resources 2,485,910 3,125,082

23,834,646 25,349,380

Funds committed as at 30 June 2012 for external programs are anticipated to be expended as follows:

Within one year 4,574,348 3,429,406

Later than one year but within 5 years 10,000,000 11,938,431

Later than 5 years 6,774,388 6,856,461

Total Committed Funds 21,348,736 22,224,298

Funding category balances above include transfers between programs. The amount received and expensed will vary by the amount

transferred. In 2011/12 all transfers have been eliminated. In 2010/11 transfers of $2,440,604 were not eliminated. If these transfers

had been excluded the amount received and expensed in 2010/11 would agree with the Comprehensive Operating Statement.

The Authority receives funding relating to specific projects. Such funding is allocated to, and must be expended on those projects.

The following table displays monies held and committed at the end of the year in respect to projects currently in progress.

To deliver the goals as detailed in the Regional Catchment Strategy, the Authority continues to be dependent upon future funding

commitments from both State and Federal Governments.

93




$ $

NOTE 23: SUPERANNUATION

Superannuation Name Type of Scheme Rate*

AMP Flexible Lifetime Super Defined Contribution 9% 10,437 8,554

AMP Investment Linked Personal Super Defined Contribution 9% 3,854 -

AMP Superleader Defined Contribution 9% 2,260 -

Asgard Business Superannuation Defined Contribution 9% 2,625 2,507

Australian Ethical Superannuation Defined Contribution 9% 279 3,298

Australian Super Defined Contribution 9% 8,807 10,792

Construction and Building Industry Super Defined Contribution 9% 712 -

Clear View Life Nominees Defined Contribution 9% 5,534 5,129

Colonial First Choice Defined Contribution 9% 7,238 4,514

Colonial First State Rollover and Superannuation Fund Defined Contribution 9% 1,887 -

Colonial First State First Choice Wholesale Personal SuperDefined Contribution 9% 3,666 -

First State Super Defined Contribution 9% 6,450 3,884

Host Plus Defined Contribution 9% 428 -

Mercer Super Trust Defined Contribution 9% 2,643 -

MLC Masterkey Superannuation Defined Contribution 9% 15,985 11,454

MLC Masterkey Super Goldstar Defined Contribution 9% 1,435 -

MLC the Employee Retirement Plan Defined Contribution 9% 3,320 -

OnePath Integra Super Defined Contribution 9% 5,668 1,999

Plum Superannuation Fund Defined Contribution 9% 1,344 2,983

Prime Super Defined Contribution 9% 2,649 -

Recruitment Super Defined Contribution 9% 1,249 -

Retail Employees Super Trust Defined Contribution 9% 7,890 8,189

Vic Super Pty Ltd Defined Contribution 9% 281,225 198,992

Vision Super Defined Contribution 9% 26,385 13,545

Zurich Superannuation Fund Defined Contribution 9% 1,894 -

Other Superannuation Funds Defined Contribution 9% 5,002 -

Total contributions to all funds 410,867 275,840

The Authority contributes in respect of its employees, to the following superannuation schemes:

*Whilst the Authority pays the standard statutory of 9% on employee's remuneration, some employees also make salary sacrifice

contributions.

As at balance date there were no outstanding contributions payable to the above funds, and no balances repayable in respect of loans

made to the Authority from any fund.

94




NOTE 24: ECONOMIC DEPENDENCE

NOTE 25: CONTRIBUTIONS SUBJECT TO RESTRICTIONS



$ $ $ $ $ $

Land 2,135,540 3,186,520 (4,046,238) 1,275,822 1,275,822 -

Rivers and Wetlands 1,422,148 6,618,107 (6,246,249) 1,794,006 1,794,006 -

Regional Sustainability 1,142,932 2,528,291 (1,342,029) 2,329,194 2,329,194 -

People Program Support 239,851 - (239,851) - - -


Administered Funding 15,856,461 2,516,959 (1,599,032) 16,774,388 16,774,388 -

Strategy and Planning - - 25,000.00 25,000 25,000 -




$ $ $ $ $ $

Biodiversity & Landcare 730,444 2,366,731 (1,898,026) 1,199,151 1,199,149 -

Waterways, Wetlands and Floodplains 3,089,834 4,140,988 (5,808,675) 1,422,147 1,422,147 -

Water Resources 2,073,874 1,471,205 (2,503,171) 1,041,908 1,041,908 -

Land Resources 1,104,616 2,736,946 (2,768,458) 1,073,104 1,073,104 -

People Program Support 113,396 1,424,655 (1,298,200) 239,851 239,851 -


Administered Funding 14,070,122 2,193,544 (407,205) 15,856,461 15,856,461 -


2012 2011

$ $

Funds committed as at 30 June 2012 are anticipated to be expended as follows:

External service providers 21,348,736 22,224,298

Internal resources 2,485,910 3,125,082

23,834,646 25,349,380

Funds committed as at 30 June 2012 for external programs are anticipated to be expended as follows:

Within one year 4,574,348 3,429,406

Later than one year but within 5 years 10,000,000 11,938,431

Later than 5 years 6,774,388 6,856,461

Total Committed Funds 21,348,736 22,224,298

Funding category balances above include transfers between programs. The amount received and expensed will vary by the amount

transferred. In 2011/12 all transfers have been eliminated. In 2010/11 transfers of $2,440,604 were not eliminated. If these transfers

had been excluded the amount received and expensed in 2010/11 would agree with the Comprehensive Operating Statement.

The Authority receives funding relating to specific projects. Such funding is allocated to, and must be expended on those projects.

The following table displays monies held and committed at the end of the year in respect to projects currently in progress.

To deliver the goals as detailed in the Regional Catchment Strategy, the Authority continues to be dependent upon future funding

commitments from both State and Federal Governments.

95




$ $

NOTE 26: REMUNERATION OF AUDITORS

(a) Victorian Auditor-General's Office (VAGO)

Audit of financial statements 8,850 8,700

(b) Non-VAGO audit firms

Internal audit services 32,830 26,455

Total auditors' remuneration 41,680 35,155

During the year the following fees were paid or payable for services provided by the auditor of the Authority:

96

Section 6 – Appendices

Appendix 1

Disclosure Index

Part 1 Report of Operations

Legislation Requirement Page reference

Ministerial Directions

Report of operations – FRD Guidance

Charter and purpose

FRD 22C Objectives, functions, powers and duties 4

FRD 22C Manner of establishment and the relevant Ministers 6

FRD 22C Nature and range of services provided 6

FRD 22C, SD 4.2(k)

Operational and budgetary objectives and performance against objectives

7

FRD 22C Summary of the financial results for the year 13

Governance & organisational Structure

FRD 22C

SD 2.2(f) Organisational structure 29

FRD 22C Occupational health and safety policy 43

FRD 22C Employment and conduct principles 44

FRD 29 &

FRD 22C Workforce Data 46

FRD 15B Executive officer disclosures 46

Other disclosures

FRD 25 Victorian Industry Participation Policy disclosures 48

FRD 22C Details of consultancies over $10,000 48

FRD 22C Disclosure of major contracts 48

FRD 22C Significant changes in financial position during the year 55

FRD 22C Major changes or factors affecting performance 55

FRD 22C Subsequent events 55

97

FRD 22C Freedom of Information Act 55

FRD 22C Compliance with building and maintenance provisions of Building Act 1993

56

FRD 22C Statement on National Competition Policy 56

FRD 22C Application and operation of the Whistleblowers Protection Act 2001

56

SD 4.5.5 Risk management compliance attestation 57

FRD 22 C

FRD 24C Reporting of office-based environmental impacts 57

FRD 10 Disclosure index 97

FRD 22C Statement of availability of other information 55

SD 4.2(g) General information requirements 2

SD 4.2(j) Sign-off requirements 2

Part 2 Financial Statements

Legislation Requirement Page reference

Financial statements required under Part 7 of the FMA

SD4.2(a) Statement of changes in equity 66

SD4.2(b) Income Statement 64

SD4.2(b) Balance sheet 65

SD4.2(b) Statement of recognised income and expense 64

SD4.2(b) Cash flow statement 67

SD4.2(b) Notes to the financial statements 68

Other requirements under Standing Direction 4.2

SD4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements

68

SD4.2(a) Statement of Compliance 68

SD4.2(d) Rounding of amounts 68

SD4.2(c) Accountable officer’s declaration 68

98

Other disclosures as required by FRDs in notes to the financial statements

FRD 11 Disclosure of ex-gratia payments 93

FRD 21A Responsible person and executive officer disclosures 93

FRD 102 Inventories N/A

FRD 103D Non-current physical assets 69

FRD 104 Foreign currency 79, 86, 88

FRD 106 Impairment of assets 70, 90

FRD 109 Intangible assets 74, 88

FRD 107 Investment properties N/A

FRD 110 Cash flow statements 91

FRD 112B Defined benefit superannuation obligations N/A

FRD 113 Investments in subsidiaries, jointly controlled entities and associates

N/A

FRD 114A Financial Instruments – General government entities and public non-financial corporations

73

FRD 119 Contributions by owners 89

Legislation

Legislation Page reference

Freedom of Information Act 1982 55

Building Act 1983 56

Whistleblowers Protection Act 2001 56

Victorian Industry Participation Policy Act 2003 48

Financial Management Act 1994 2, 68

Multicultural Victoria Act 2004 47

99

Appendix 2

Mallee CMA Whistleblowers Policy

BRN 2011/04/00252

1. INTRODUCTION

The Whistleblowers Protection Act 2001 (the Act) commenced operation on 1 January 2002. The main objective of the Act is to encourage and facilitate the making of disclosures of improper conduct or detrimental action by public officers and public bodies. The Act provides protection to Whistleblowers that make disclosures in accordance with the Act, and establishes a system for the matters disclosed to be investigated and for rectifying action to be taken.

2. PURPOSE

2.1 This policy provides a framework for reporting disclosures of conduct or detrimental action by the Mallee Catchment Management Authority (CMA) or its employees. The system enables such disclosures to be made to the Protected Disclosure Coordinator or to one of the nominated Protected Disclosure Officers. Disclosures may be made by employees or by members of the public.

2.2 These procedures are designed to complement normal communication channels between managers, supervisors and employees. Employees are encouraged to continue to raise appropriate matters at any time with their Manager. As an alternative, employees may make a disclosure of improper conduct or detrimental action under the Act in accordance with these procedures.

3. POLICY PRINCIPLES

3.1 The Mallee CMA is committed to the aims and objectives of the Act. It does not tolerate improper conduct by its employees, officers or members, nor the taking of reprisals against those who come forward to disclose such conduct.

3.2 The Mallee CMA recognises the value of transparency and accountability in its administrative and management practices, and supports the making of disclosures that reveal corrupt conduct, conduct involving a substantial mismanagement of public resources, or conduct involving a substantial risk to public health and safety or the environment.

3.3 The Mallee CMA will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosure. It will also take all necessary measures to afford natural justice to the person who is the subject of the disclosure.

3.4 This policy will be reviewed annually to ensure they meet the objectives of the Act and accord with the Ombudsman’s guidelines.

4. DEFINITIONS

4.1 Improper Conduct: Conduct that is corrupt, a substantial mismanagement of public resources, or conduct involving substantial risk to public health or safety or to the environment. The conduct must be serious enough to constitute, if proved, a criminal offence or reasonable grounds for dismissal.

4.2 Corrupt Conduct:

• Conduct of any person (whether or not a public official) that adversely affects the honest performance of a public Officer’s or public body’s functions;

• The performance of a public Officer’s functions dishonestly or with inappropriate partiality; • Conduct of a public Officer, former public Officer or a public body that amounts to a breach of

public trust; • Conduct by a public Officer, former public Officer or a public body that amounts to the misuse

of information or material acquired in the course of the performance of their official functions; or

• A conspiracy or attempt to engage in the above conduct.

100

4.3 Detrimental Action:

• Action causing injury, loss or damage; • Intimidation or harassment; and • Discrimination, disadvantage or adverse treatment in relation to a person’s employment,

career, profession, trade or business, including the taking of disciplinary action.

4.4 Public Bodies:

• All Government Departments and administrative offices; • Statutory Authorities; • Municipal Councils; • Government appointed Boards and Committees; • Government owned companies; Universities; • TAFE Colleges; • Public Hospitals; • State funded Residential Care Services Health Services contractors; and • Correctional Services contractors.

4.5 Public Officers:

• Members of Parliament; • Councillors; • Council employees; • Public Servants; • University employees; • Police Officers; • Protective Services Officers; • Administrative Staff of the Chief Commissioner of Police; • Teachers; and • Office holders appointed by the Governor in Council or a Minister.

4.6 Examples of Improper Conduct:

• To avoid closure of a town’s only industry, an environmental health officer ignores or conceals evidence of illegal dumping of waste;

• An agricultural officer delays or declines imposing quarantine to allow a financially distressed farmer to sell diseased stock; and

• A building inspector tolerates poor practices and structural defects in the work of a leading local builder.

A disclosure may be made about improper conduct by a public body or public official.

101

4.7 Examples of Corrupt Conduct:

• A Public Officer takes a bribe or receives a payment other than his or her wages or salary in exchange for the discharge of a public duty;

• A Public Officer favours unmeritorious applications for jobs or permits by friends and relatives; and

• A Public Officer sells confidential information.

4.8 Examples of Detrimental Action:

• A public body refuses a deserved promotion of a person who makes a disclosure; • A public body demotes transfers, isolates in the workplace or changes the duties of a

whistleblower due to the making of a disclosure; • A person threatens abuses or carries out other forms of harassment directly or indirectly

against the Whistleblower, his or her family or friends; and • A public body discriminates against the Whistleblower or his or her family and associates in

subsequent applications for jobs, permits or tenders.

The Act makes it an offence for a person to take detrimental action against a person protected disclosure.

5. THE REPORTING SYSTEM

5.1 Contract Persons within the Mallee CMA

5.1.1 Disclosures of improper conduct or detrimental action by the Mallee CMA or its employees may be made to the following Officers:

The Protected Disclosure Coordinator: Linda Pratt (03) 5051 4367

The Protected Disclosure Officer: Jenny Byrnes (03) 5051 4371

5.1.2 All correspondence, phone calls and emails from internal or external whistleblowers will be referred to the Protected Disclosure Coordinator.

5.1.3 Where a person is contemplating making a disclosure and is concerned about approaching the Protected Disclosure Coordinator or a Protected Disclosure Officer in the workplace, he or she can call the relevant officer and request a meeting in a discreet location away from the workplace.

5.2 Alternative Contact Persons

5.2.1 A disclosure about improper conduct or detrimental action by the Mallee CMA or its employees may also be made directly to the Ombudsman:

The Ombudsman Victoria Level 9, 459 Collins Street Melbourne Victoria 3000 (DX 210174) Internet: Ombudsman Victoria Internet - Ombudsman Victoria Email: [email protected]

Tel: 9613 6222 Toll Free: 1800 806 314

102

5.2.2 The following table sets out where disclosures about persons other than employees of Mallee CMA should be made.

6. ROLES AND RESPONSIBILITIES

6.1 Employees

6.1.1 Employees are encouraged to report known or suspected incidences of improper conduct or detrimental action in accordance with these procedures.

6.1.2 All employees of the Mallee CMA have an important role to play in supporting those who have made a legitimate disclosure. They must refrain from any activity that is, or could be perceived to be, victimisation or harassment of a person who makes a disclosure.

6.1.3 Furthermore, they should protect and maintain the confidentiality of a person they know or suspect to have made a disclosure.

6.2 Protected Disclosure Officers

6.2.1 Protected Disclosure Officer

Protected Disclosure Officers will:

• Be a contact point for general advice about the operation of the Act for any person wishing to make a disclosure about improper conduct or detrimental action;

• Make arrangements for a disclosure to be made privately and discreetly and, if necessary, away from the workplace;

• Receive any disclosure made orally or in writing (from internal and external Whistleblowers); • Commit to writing any disclosure made orally; • Impartially assess the allegation and determine whether it is a disclosure made in accordance

with Part 2 of the Act (that is, a protected disclosure); • Take all necessary steps to ensure the identity of the Whistleblower and the identity of the

person who is the subject of the disclosure are kept confidential; and • Forward all disclosures and supporting evidence to the Protected Disclosure Coordinator.

Person who is the subject of the disclosure

Person/body to whom the disclosure must be made

Employee of a Public Body That Public Body or the Ombudsman

Member of Parliament

(Legislative Assembly) Speaker of the Legislative Assembly

Member of Parliament

(Legislative Council) President of the Legislative Council

Councillor The Ombudsman

Chief Commissioner of Police The Ombudsman or Deputy Ombudsman

Member of the Police Force The Ombudsman, Deputy Ombudsman or Chief Commissioner of Police

103

6.2.2 Protected Disclosure Coordinator

The Protected Disclosure Coordinator has a central clearing house role in the internal reporting system. He or she will:

• Receive all disclosures forwarded from the Protected Disclosure Officers; • Receive all phone calls, emails and letters from members of the public, or employees seeking

to make a disclosure; • Impartially assess each disclosure to determine whether it is a public interest disclosure; • Refer all public interest disclosures to the Ombudsman; • Be responsible for carrying out, or appointing an investigator to carry out, an investigation

referred to the public body by the Ombudsman; • Be responsible for overseeing and coordinating an investigation where an investigator has

been appointed; • Appoint a Welfare Manager to support the Whistleblower and to protect him or her from any

reprisal; • Advise the Whistleblower of the progress of an investigation into the disclosed matter; • Establish and manage a confidential filing system; • Collate and publish statistics on disclosures made; • Take all necessary steps to ensure the identity of the Whistleblower and the identity of the

person who is the subject of the disclosure are kept confidential; and • Liaise with the Chief Executive Officer (CEO) of the public body.

6.3 Investigator

6.3.1 The Investigator will be responsible for carrying out an internal investigation into a disclosure where the Ombudsman has referred a matter to the public body. An Investigator may be a person from within Mallee CMA or a consultant engaged for that purpose.

6.4 Welfare Manager

6.4.1 The Welfare Manager is responsible for looking after the general welfare of the Whistleblower. The Welfare Manager will:

• Examine the immediate welfare and protection needs of a Whistleblower who has made a disclosure and seek to foster a supportive work environment;

• Advise the Whistleblower of the legislative and administrative protection’s available to him or her;

• Listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making disclosure; and

• Ensure the expectations of the Whistleblower are realistic.

7. CONFIDENTIALITY

7.1 The Mallee CMA will take all reasonable steps to protect the identity of the Whistleblower. Maintaining confidentiality is crucial in ensuring reprisals are not made against a Whistleblower.

7.2 The Act requires any person who receives information due to the handling or investigation of a protected disclosure, not to disclose that information except in certain limited circumstances. Disclosure of information in breach of section 22 of the Act constitutes an offence that is punishable by a maximum fine of 60 penalty units ($6000) or six months imprisonment or both.

7.3 The circumstances in which a person may disclose information obtained about a protected disclosure include:

• Where exercising the functions of the public body under the Act; • When making a report or recommendation under the Act; • When publishing statistics in the annual report of a public body; and • In criminal proceedings for certain offences in the Act.

104

7.4 However, the Act prohibits the inclusion of particulars in any report or recommendation that is likely to lead to the identification of the Whistleblower. The Act also prohibits the identification of the person who is the subject of the disclosure in any particulars included in an Annual Report.

7.5 The Mallee CMA will ensure all files, whether paper or electronic, are kept in a secure room and can only be accessed by the Protected Disclosure Coordinator, Protected Disclosure Officer, the Investigator or Welfare Manager (in relation to welfare matters). All printed material will be kept in files that are clearly marked as a Whistleblower Protection Act matter, and warn of the criminal penalties that apply to any unauthorised divulging of information concerning a protected disclosure. All electronic files will be produced and stored on a stand-alone computer and be given password protection. Backup files will be kept on disc. All materials relevant to an investigation, such as tapes from interviews, will also be stored securely with the Whistleblower files.

7.6 The Mallee CMA will not email documents relevant to a whistleblower matter and will ensure all phone calls and meetings are conducted in private.

8. COLLATING AND PUBLISHING STATISTICS

8.1.1 The Protected Disclosure Coordinator will establish a secure Register to record the information required to be published in the Annual Report, and to generally keep account of the status of whistleblower disclosures. The Register will be confidential and will not record any information that may identify the Whistleblower.

8.2 The Register will contain the following information:

• The number and types of disclosures made to public bodies during the year; • The number of disclosures referred to the Ombudsman for determination as to whether they

are public interest disclosures; • The number and types of disclosed matters referred to the public body by the Ombudsman for

investigation; • The number and types of disclosures referred by the public body to the Ombudsman for

investigation; • The number and types of investigations taken over from the public body by the Ombudsman; • The number of requests made by a Whistleblower to the Ombudsman to take over an

investigation by the public body; • The number and types of disclosed matters that the public body has declined to investigate; • The number and types of disclosed matters that were substantiated upon investigation and the

action taken on completion of the investigation, and • Any recommendations made by the Ombudsman that relate to the public body.

9. RECEIVING AND ASSESSING DISCLOSURES

9.1 Has the Disclosure Been Made in Accordance with Part 2 of The Act?

9.1.1 Where a disclosure has been received by the Protected Disclosure Officer or by the Protected Disclosure Coordinator, he or she will assess whether the disclosure has been made in accordance with Part 2 of the Act and is, therefore, a protected disclosure.

9.2 Has the Disclosure Been Made to the Appropriate Person?

105

9.2.1 For the disclosure to be responded to by the Mallee CMA, it must concern an employee, member or officer of the Mallee CMA. If the disclosure concerns an employee, officer or member of another public body, the person who has made the disclosure must be advised of the correct person or body to whom the disclosure should be directed. (Refer to table in 5.2.2). If the disclosure has been made anonymously, it should be referred to the Ombudsman.

9.3 Does the Disclosure Contain the Essential Elements of a Protected Disclosure?

9.3.1 To be a protected disclosure, a disclosure must satisfy the following criteria:

• Did a natural person (that is, an individual person rather than a corporation) make the disclosure?

• Does the disclosure relate to conduct of a public body or public Officer acting in their official capacity?

• Is the alleged conduct either improper conduct or detrimental action taken against a person in reprisal for making a protected disclosure?

• Does the person making a disclosure have reasonable grounds for believing the alleged conduct has occurred?

9.3.2 Where a disclosure is assessed to be a protected disclosure, it is referred to the Protected Disclosure Coordinator. The Protected Disclosure Coordinator will determine whether the disclosure is a public interest disclosure.

9.3.3 Where a disclosure is assessed not to be a protected disclosure, the matter does not need to be dealt with under the Act. The protected disclosure officer will decide how the matter should be responded to in consultation with the Protected Disclosure Coordinator.

9.4 Is the Disclosure a Public Interest Disclosure?

9.4.1 Where the Protected Disclosure Officer or Coordinator has received a disclosure that has been assessed to be a protected disclosure, the Protected Disclosure Coordinator will determine whether the disclosure amounts to a public interest disclosure. This assessment will be made within 45 days of the receipt of the disclosure.

9.4.2 In reaching a conclusion as to whether a protected disclosure is a public interest disclosure, the Protected Disclosure Coordinator will consider whether the disclosure shows, or tends to show, that the public Officer to whom the disclosure relates:

• Has engaged, is engaging or proposes to engage in improper conduct in his or her capacity as a public Officer, OR

• Has taken, is taking or proposes to take detrimental action in reprisal for the making of the protected disclosure.

9.4.3 Where the Protected Disclosure Coordinator concludes that the disclosure amounts to a public interest disclosure, he or she will:

• Notify the person who made the disclosure of that conclusion; and • Refer the disclosure to the Ombudsman for formal determination as to whether it is indeed a

public interest disclosure.

9.4.4 Where the Protected Disclosure Coordinator concludes that the disclosure is not a public interest disclosure, he or she will:

• Notify the person who made the disclosure of that conclusion; and • Advise that person that he or she may request the public body to refer the disclosure to the

Ombudsman for a formal determination as to whether the disclosure is a public interest disclosure, and that this request must be made within 28 days of the notification.

106

9.4.5 In either case, the Protected Disclosure Coordinator will make the notification and the referral within 14 days of the conclusion being reached by the public body. Notification to the Whistleblower is not necessary where the disclosure has been made anonymously.

10. INVESTIGATIONS

10.1 Introduction

Where the Ombudsman refers a protected disclosure to the Mallee Catchment Management Authority for investigation, the Protected Disclosure Coordinator will appoint an investigator to carry out the investigation.

The objectives of an investigation will be:

• To collate information relating to the allegation as quickly as possible. This may involve taking steps to protect or preserve documents, materials and equipment;

• To consider the information collected and to draw conclusions objectively and impartially; • To maintain procedural fairness in the treatment of witnesses and the person who is the

subject of the disclosure; and • To make recommendations arising from the conclusions drawn concerning remedial or other

appropriate action.

10.2 Terms of Reference

Before commencing an investigation, the Protected Disclosure Coordinator will draw up terms of reference and obtain authorisation for those terms from the CEO. The terms of reference will set a date by which the investigation report is to be concluded, and will describe the resources available to the Investigator to complete the investigation within the time set. The Protected Disclosure Coordinator may approve, if reasonable, an extension of time requested by the Investigator. The terms of reference will require the Investigator to make regular reports to the Protected Disclosure Coordinator who, in turn, is to keep the Ombudsman informed of general progress.

10.3 Investigation Plan

10.3.1 The Investigator will prepare an investigation plan for approval by the Protected Disclosure Coordinator. The plan will list the issues to be substantiated and describe the avenue of inquiry. It will address the following issues:

• What is being alleged? • What are the possible findings or offences? • What are the facts in issue? • How is the inquiry to be conducted? • What resources are required?

10.3.2 At the commencement of the investigation, the Whistleblower should be:

• Notified by the Investigator that he or she has been appointed to conduct the investigation; • Asked to clarify any matters; and • Provide any additional material he or she might have.

10.3.3 The Investigator will be sensitive to the Whistleblower’s possible fear of reprisals and will be aware of the statutory protections provided to the Whistleblower.

10.4 Natural Justice

10.4.1 The principles of natural justice will be followed in any investigation of a public interest disclosure. The principles of natural justice concern procedural fairness and ensure a fair decision is reached by an objective decision maker. Maintaining procedural fairness protects the rights of individuals and enhances public confidence in the process.

107

10.4.2 The Mallee CMA will have regard to the following issues in ensuring procedural fairness:

• The person who is the subject of the disclosure is entitled to know the allegations made against him or her and must be given the right to respond. (This does not mean the person must be advised of the allegation as soon as the disclosure is received or the investigation has commenced.);

• If the Investigator is contemplating making a report adverse to the interests of any person, that person should be given the opportunity to put forward further material that may influence the outcome of the report and that person s defence should be fairly set out in the report;

• All relevant parties to a matter should be heard and all submissions should be considered; • A decision should not be made until all reasonable inquiries have been made; • The Investigator or any decision maker should not have a personal or direct interest in the

matter being investigated; • All proceedings must be carried out fairly and without bias. Care should be taken to exclude

perceived bias from the process; and • The Investigator must be impartial in assessing the credibility of the Whistleblower and any

witnesses. Where appropriate, conclusions as to credibility should be included in the investigation report.

10.5 Conduct of the Investigation

10.5.1 The Investigator will make contemporaneous notes of all discussions and phone calls, and will seek agreement from the witness to allow all interviews to be taped. All information gathered in an investigation will be stored securely. Interviews will be conducted in private and the Investigator will take all reasonable steps to protect the identity of the Whistleblower.

10.5.2 Where disclosure of the identity of the whistleblower cannot be avoided, due to the nature of the allegations, the Investigator will warn the Whistleblower and his or her Welfare Manager of this probability.

10.5.3 It is in the discretion of the Investigator to allow any witness to have legal or other representation or support during an interview. If a witness has a special need for legal representation or support, permission should be granted.

10.6 Referral of an Investigation to the Ombudsman

10.6.1 The Protected Disclosure Coordinator will make a decision regarding the referral of an investigation to the Ombudsman where, on the advice of the Investigator:

• the investigation is being obstructed by, for example, the non-co-operation of key witnesses; • the investigation has revealed conduct that may constitute a criminal offence.

10.7 Reporting Requirements

10.7.1 The Protected Disclosure Coordinator will ensure the Whistleblower is kept regularly informed concerning the handling of a protected disclosure and an investigation.

10.7.2 The Protected Disclosure Coordinator will report to the Ombudsman about the progress of an investigation.

10.7.3 Where the Ombudsman or the Whistleblower requests information about the progress of an investigation, that information will be provided within 28 days of the date of the request.

11. ACTION TAKEN AFTER AN INVESTIGATION

11.1 Investigator’s Final Report

108

11.1.1 At the conclusion of the investigation, the Investigator will submit a written report of his or her findings to the Protected Disclosure Coordinator. The report will contain:

• The allegation/s; • An account of all relevant information received and, if the Investigator has rejected evidence

as being unreliable, the reasons for this opinion being formed; • The conclusions reached and the basis for them; and • Any recommendations arising from the conclusions.

11.1.2 Where the Investigator has found that the conduct disclosed by the Whistleblower has occurred, recommendations made by the Investigator will include:

• The steps that need to be taken by the Mallee CMA to prevent the conduct from continuing or occurring in the future; and

• Any action that should be taken by the Mallee CMA to remedy any harm or loss arising from the conduct. This action may include bringing disciplinary proceedings against the person responsible for the conduct, and referring the matter to an appropriate authority for further consideration.

11.1.3 The report will be accompanied by:

• The transcript or other record of any oral evidence taken, including tape recordings; and • All documents, statements or other exhibits received by the Officer and accepted as evidence

during the course of the investigation.

11.1.4 Where the Investigator’s report is to include an adverse comment against any person, that person will be given the opportunity to respond and his or her defence will be fairly included in the report. The report will not disclose particulars likely to lead to the identification of the Whistleblower.

11.2 Action to be Taken

11.2.1 If the Protected Disclosure Coordinator is satisfied that the investigation has found that the disclosed conduct has occurred, he or she will recommend to the CEO the action that must be taken to prevent the conduct from continuing or occurring in the future. The Protected Disclosure Coordinator may also recommend that action be taken to remedy any harm or loss arising from the conduct.

11.2.2 The Protected Disclosure Coordinator will provide a written report to the Minister for Environment and Conservation, the Ombudsman and the Whistleblower setting out the findings of the investigation and any remedial steps taken.

11.2.3 Where the investigation concludes that the disclosed conduct did not occur, the Protected Disclosure Coordinator will report these findings to the Ombudsman and to the Whistleblower.

12. MANAGING THE WELFARE OF THE WHISTLEBLOWER

12.1 Commitment to Protecting Whistleblowers

12.1.1 The Mallee CMA is committed to the protection of genuine Whistleblowers against detrimental action taken in reprisal for the making of protected disclosures.

12.1.2 The Protected Disclosure Coordinator is responsible for ensuring Whistleblowers are protected from direct and indirect detrimental action, and that the culture of the workplace is supportive of protected disclosures being made.

109

12.1.3 The Protected Disclosure Coordinator will appoint a Welfare Manager to all Whistleblowers who have made a protected disclosure. The Welfare Manager will:

• Examine the immediate welfare and protection needs of a Whistleblower who has made a disclosure and, where the Whistleblower is an employee, seek to foster a supportive work environment;

• Advise the Whistleblower of the legislative and administrative protection’s available to him or her;

• Listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making disclosure;

• Keep a contemporaneous record of all aspects of the case management of the Whistleblower including all contact and follow-up action; and

• Ensure the expectations of the Whistleblower are realistic.

12.1.4 All employees will be advised that it is an offence for a person to take detrimental action in reprisal for a protected disclosure. The maximum penalty is a fine of 240 penalty units ($24,000) or two years imprisonment or both. The taking of detrimental action in breach of this provision can also be grounds for making a disclosure under the Act and can result in an investigation.

12.1.5 Detrimental action includes:

• Causing injury, loss or damage; • Intimidation or harassment; and • Discrimination, disadvantage or adverse treatment in relation to a person’s employment,

career, profession, trade or business (including the taking of disciplinary action).

12.2 Keeping the Whistleblower Informed

The Protected Disclosure Coordinator will ensure the Whistleblower is kept informed of action taken in relation to his or her disclosure, and the time frames that apply. The Whistleblower will be informed of the objectives of an investigation, the findings of an investigation, and the steps taken by the Mallee CMA to address any improper conduct that has been found to have occurred. The Whistleblower will be given reasons for decisions made by the Mallee Catchment Management Authority in relation to a protected disclosure. All communication with the whistleblower will be in plain English.

12.3 Occurrence of Detrimental Action

12.3.1 If a Whistleblower reports an incident of harassment, discrimination or adverse treatment that would amount to detrimental action taken in reprisal for the making of the disclosure, the Welfare Manager will:

• Record details of the incident; • Advise the Whistleblower of his or her rights under the Act; and • Advise the Protected Disclosure Coordinator or CEO of the detrimental action.

12.3.2 The taking of detrimental action in reprisal for the making of a disclosure can be an offence against the Act as well as grounds for making a further disclosure. Where such detrimental action is reported, the Protected Disclosure Coordinator will assess the report as a new disclosure under the Act. Where the Protected Disclosure Coordinator is satisfied that the disclosure is a public interest disclosure, he or she will refer it to the Ombudsman. If the Ombudsman subsequently determines the matter to be a public interest disclosure, the Ombudsman may investigate the matter or refer it to another body for investigation as outlined in the Act.

12.4 Whistleblowers Implicated in Improper Conduct

110

12.4.1 Where a person who makes a disclosure is implicated in misconduct, the Mallee CMA will handle the disclosure and protect the Whistleblower from reprisals in accordance with the Act, the Ombudsman’s guidelines and these procedures. The Mallee CMA acknowledges that the act of whistle blowing should not shield Whistleblowers from the reasonable consequences flowing from any involvement in improper conduct.

12.4.2 Section 17 of the Act specifically provides that a person’s liability for his or her own conduct is not affected by the person’s disclosure of that conduct under the Act. However, in some circumstances, an admission may be a mitigating factor when considering disciplinary or other action.

12.4.3 The CEO will make the final decision on the advice of the Protected Disclosure Coordinator as to whether disciplinary or other action will be taken against a Whistleblower. Where disciplinary or other action relates to conduct that is the subject of the Whistleblower’s disclosure, the disciplinary or other action will only be taken after the disclosed matter has been appropriately dealt with.

12.4.4 In all cases where disciplinary or other action is being contemplated, the CEO must be satisfied that it has been clearly demonstrated that:

• The intention to proceed with disciplinary action is not causally connected to the making of the disclosure (as opposed to the content of the disclosure or other available information);

• There are good and sufficient grounds that would fully justify action against any non-whistleblower in the same circumstances; and

• There are good and sufficient grounds that justify exercising any discretion to institute disciplinary or other action.

12.4.5 The Protected Disclosure Coordinator will thoroughly document the process including recording the reasons why the disciplinary or other action is being taken, and the reasons why the action is not in retribution for the making of the disclosure. The Protected Disclosure Coordinator will clearly advise the Whistleblower of the proposed action to be taken, and of any mitigating factors that have been taken into account.

13. MANAGEMENT OF THE PERSON AGAINST WHOM A DISCLOSURE HAS BEEN MADE

13.1 The Mallee CMA recognises that employees against whom disclosures are made must also be supported during the handling and investigation of disclosures.

13.2 The Mallee CMA will take all reasonable steps to ensure the confidentiality of the person who is the subject of the disclosure during the assessment and investigation process. Where investigations do not substantiate disclosures, the fact that the investigation has been carried out, the results of the investigation, and the identity of the person who is the subject of the disclosure will remain confidential.

13.3 The Protected Disclosure Coordinator will ensure the person who is the subject of any disclosure investigated by or on behalf of a public body is:

• Informed as to the substance of the allegations; • Given the opportunity to answer the allegations before a final decision is made; • Informed as to the substance of any adverse comment that may be included in any report

arising from the investigation; and • His or her defence set out fairly in any report.

13.4 Where the allegations in a disclosure have been investigated, and the person who is the subject of the disclosure is aware of the allegations or the fact of the investigation, the Protected Disclosure Coordinator will formally advise the person who is the subject of the disclosure of the outcome of the investigation.

13.5 The Mallee CMA will give its full support to a person who is the subject of a disclosure where the allegations contained in a disclosure are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, the CEO of the Authority will consider any request by that person to issue a statement of support setting out that the allegations were clearly wrong or unsubstantiated.

14. CRIMINAL OFFENCES

111

14.1 The Mallee CMA will ensure Officers appointed to handle protected disclosures and all other employees are aware of the following offences created by the Act:

• It is an offence for a person to take detrimental action against a person in reprisal for a protected disclosure being made. The Act provides a maximum penalty of a fine of 240 penalty units ($24,000) or two years imprisonment or both.

• It is an offence for a person to divulge information obtained as a result of the handling or investigation of a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty units ($6,000) or six months imprisonment or both.

• It is an offence for a person to obstruct the Ombudsman in performing his/her responsibilities under the Act. The Act provides a maximum penalty of 240 penalty units ($24,000) or two years imprisonment or both.

• It is an offence for a person to knowingly provide false information under the Act with the intention that it be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units ($24,000) or two years imprisonment or both.

15. RESPONSIBILITY/DELEGATION

The Manager Corporate Services is responsible for ensuring that this policy, associated procedures and forms are kept up to date, circulated to relevant staff and meet review dates.

16. POLICY RELATED DOCUMENTS

Mallee CMA Annual Report

Mallee CMA Code of Conduct

Mallee CMA Workplace Agreement 2009

Mallee CMA Appropriate Workplace Behaviour Policy

Mallee CMA Appropriate Workplace Behaviour Complaint Procedure

Mallee CMA Disciplinary Action Procedure

Whistleblowers Protection Act 2001 (including 2010 amendments)

112

Mallee CMA Whistleblowers Policy: Appendices

Appendix 1

REPORTING STRUCTURES FOR THE MALLEE CATCHMENT MANAGEMENT AUTHORITY

113

Mallee CMA Whistleblowers Policy: Appendices

Appendix 2

MODEL REGISTER

The register below records information about disclosures made to the Mallee CMA that has been determined to be protected disclosures.

File A File B File C File D File E

Date Disclosure Received

Type of Disclosure

Is Disclosure a Public Interest Disclosure

Date Above Determination Made

Date Whistleblower (WB) Informed of Determination

Date Disclosure Referred to the Ombudsman

Determination Made by Ombudsman

Was The Investigation Referred Back to The Ombudsman?

Did The Ombudsman Take Over The Investigation?

Did the WB * Request The Ombudsman To Take Over The Investigation?

Findings Of The Public Body

Recommendations Made By The Ombudsman

Date Reporting Requirements Satisfied.

* WB refers to Whistleblower

114

Date post:	14-Feb-2022
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

DPI Complex Corner of Koorlong Avenue and Eleventh Street ...

Documents