for the Events, Tourism & Governance Committee Meeting · marketing, promotional and security...

752

Adopted Report for the

Events, Tourism & Governance Committee Meeting

held

Thursday 8 March 2018 at

2pm

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

752nd Council Meeting 13 March 2018 2 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report

Index

Adopted Report

Events, Tourism & Governance Committee Meeting

Thursday, 8 March 2018

Item Direct. File Page Subject

1 OCOO LG115/1355/01/2018(P1) 4 Events Tourism and Governance Committee Action List and Forward Planning Schedule

2 OCEO LG426/639/-(P32) 5 Surfers Paradise Alliance - Bi-Annual Performance Review

3 OCEO LG426/1100(P8) 48 Broadbeach Alliance - Bi-Annual Performance Review

4 OCOO LG115/1190/02/18/CF(P2) 74 Audit Committee Meeting –

12 February 2018

General Business

KEY: OCEO - Office of the Chief Executive Officer WW - Gold Coast Water & Waste TI - City Infrastructure OCOO - Office of the Chief Operating Officer LC - Community Services OS - Organisational Services EPE - Economy Planning & Environment

752nd Council Meeting 13 March 2018 3 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ADOPTED BY COUNCIL 13 MARCH 2018 RESOLUTION G18.0313.018 moved Cr La Castra seconded Cr Boulton That the Report of the Events, Tourism and Governance Committee Meeting held on Thursday, 8 March 2018 covered by Recommendations numbered ETG18.0308.001 to ETG18.0308.004 be received.

CARRIED ATTENDANCE Cr R La Castra (Chairperson) Cr P C Young Cr D Gates Cr W M A Owen-Jones Cr K L Boulton Cr P A Taylor Cr D I McDonald Cr G M O'Neill Cr Caldwell Visitor left meeting at 2.54pm Cr Baildon AM Visitor Mr A J McCabe Chief Operating Officer Mr G Potter Director Organisational Services Mr S Bowden Coordinator Controlled Entities Community Grants APOLOGY / LEAVE OF ABSENCE Nil PRESENTATIONS Item 2 Surfers Paradise Alliance Ltd – Bi-Annual Performance Review 2:00pm

Ms Laura Younger (Chairperson) and Mr Mike Winlaw (CEO)

Item 3 Broadbeach Alliance Limited – Bi-Annual Performance Review 2:30pm Mr Darryl Kelly (Chairperson) and Ms Jan McCormick (CEO)

752nd Council Meeting 13 March 2018 4 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 1 OFFICE OF THE CHIEF OPERATING OFFICER EVENTS TOURISM AND GOVERNANCE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE LG115/1328/01/2018(P1) Item Action Officer &/or

Branch Action/Previous Resolution

(753) Events, Tourism and Governance Committee 20 March 2018

Connecting Southern Gold Coast – Bi-annual Performance Review

OCEO

Gold Coast Arts Centre – Bi-annual Performance Review

OCEO

Corporate Policy Portfolio Report 1 July - 31 December 2017

OCOO

City Operational Plan 2017-18 – Performance Report Quarter Two

OCOO

(754) Events, Tourism and Governance Committee 20 March 2018

Cyber Security Policy and Standards OCOO

RECOMMENDATION It is recommended that Council resolves as follows: That the list of proposed Agenda Items for the Governance and Administration Committee be noted. Authorised by:

Joe McCabe TRACKS REF: # 54648256 Chief Operating Officer COMMITTEE RECOMMENDATION ETG18.0308.001 moved Cr PC Young seconded Cr McDonald That the list of proposed Agenda Items for the Governance and Administration Committee be noted. CARRIED

752nd Council Meeting 13 March 2018 5 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 2 OFFICE OF THE CHIEF EXECUTIVE OFFICER SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32) Refer attachments: Bi-annual Performance Report (Attachment 1) Supplementary Corporate Governance Report (Attachment 2) 1 BASIS FOR CONFIDENTIALITY Not applicable 2 EXECUTIVE SUMMARY Not applicable 3 PURPOSE OF REPORT The purpose of this report is to present the Bi-annual Performance Report for Surfers Paradise Alliance Ltd (SPA) for the six month period ended 31 December 2017. 4 PREVIOUS RESOLUTIONS Governance Administration & Finance Committee (minute GA17.1206.002): That Council notes Surfers Paradise Alliance Ltd’s (SPA) bi-annual performance report for the half-year ended 30 June 2017 and its Annual Financial Report for the year ended 30 June 2017. 5 DISCUSSION 5.1 Background The City contracts with Surfers Paradise Alliance Ltd (SPA) to manage the provision of marketing, promotional and security patrol activities in the Surfers Paradise precinct. Council is the sole member of SPA. Consequently, SPA is classified as a “public sector controlled entity” under the Auditor-General Act 2009. The City’s current Service Agreement concludes on 30 June 2019. The Agreement requires SPA to submit performance reports to Council for review on a biannual basis in March and November. SPA’s performance was last reviewed by the Governance & Administration Committee at its meeting on 6 December 2017. 5.2 Review of Performance SPA’s Performance Report submission was received on 9 February (see Attachments 1 & 2). The report comprises three components, these being: Corporate Governance Alignment with Destination Tourism Management Plan (DTMP) / KPI’s Financial Management SPA has also submitted a supplementary Corporate Governance Report (see Attachment 2) which includes the following sections:

Chairperson’s Report Executive Report Strategic KPIs Organisational Chart Moving Forward in 2018

752nd Council Meeting 13 March 2018 6 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 2 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32) Corporate Governance All governance requirements have been recorded in the performance report. It is considered that SPA is satisfactorily meeting its obligations under the service agreement. Board Appointments made by Member’s Representative Mr Neeraj Chadha (Marriott Resort) resigned his directorship in December 2017. Mr Michael Coe (Mantra Gold Coast) was appointed as a replacement director on 12 February 2018. Extension of Service Agreement The City’s current Service Agreement with SPA concludes on 30 June 2019. It is essential that the entity have a period of tenure no less than 12 months - to ensure it is able to operate in a legally compliant manner when it comes to commercial dealings (eg, entering into contracts). It is also appropriate that suitable tenure exists for appointment of directors for four-year terms, as provided for in SPA’s constitution. It is therefore recommended that Council extends its Agreement with SPA by three years to 30 June 2022. Alignment with Destination Tourism Management Plan (DTMP) / KPI’s DTMP Partnership Agreement One of the key elements of the DTMP was to provide for the establishment of a Gold Coast Tourism Partnership Agreement between Gold Coast Tourism, the City and Precinct Entities. The Partnership Agreement, which was recently signed by all parties, provides for:

• a long-term commitment to the partnership • delineation of clear roles and responsibilities • shared destination performance outcomes • comprehensive two-way reporting and accountability

City-wide Event Coordination The CEO’s of the three precinct entities (and the Arts Centre) meet with the Executive Officer City Events on a regular basis to collaborate and coordinate with regards to the nature and timing of events held across the city. The last meeting was held on 13 February 2018. The next meeting is scheduled for May 2018. KPI’s SPA’s performance against agreed KPI’s is detailed in Attachment 1. The Principal Project & Investment Attraction Officer (Tourism) has review SPA’s performance against the agreed KPI’s and advised as follows:

SPA’s performance against KPI’s for the six month period ending 31 Dec 2017 is consistent with the objectives of the DTMP and SPA. The report outlines the achievements against the 15 KPI’s as specified in the Service Agreement. A number of KPI’s have been exceeded, in particular, visitor economic value add as a result of the strong events portfolio managed by SPA. For example Viva Surfers Paradise, a Tier 1 event delivered more than 15% additional visitation to the precinct above the seasonal average.

752nd Council Meeting 13 March 2018 7 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 2 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32)

SPA are continuing to engage with local traders, demonstrating their commitment to achieving outcomes for businesses within the precinct. Challenges continue in finding the right balance of events to drive business to all traders in the precinct and via a number of engagement tools SPA are achieving their KPI associated with trader satisfaction.

Work is continuing on KPI 3.5 – to deliver a city wide event in collaboration with all of the entities. A meeting was held on 13 February 2018 to discuss the possibility of significantly scaling an existing event over time that would attract new visitation to the city. Both the Tourism and Events teams within Economic Development are working with the entities to provide support and a clear direction in regards to this project, which could see the expansion of the Gold Coast Film Festival to achieve this significant KPI. Further information will be provided on the progress of this in the next bi-annual report.

Financial Management

SPA’s financial performance is detailed in Attachment 1. The Corporate Financial Accountant was asked to review the information provided by SPA. This officer’s assessment of the information will be provided at the meeting (if required).

6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND OPERATIONAL PLAN

Gold Coast 2020 2.0 Prosperity built on a strong diverse economy

What we want to see by 2020

2.5 We are a globally recognised tourism destination - our city attracts visitors from all over the world

Key strategy: Implement the Economic Development Strategy to build and create a sustainable local, national and international tourism market for the city.

Key programs of work: Develop and implement a citywide Destination Management

Plan. Work with Gold Coast Tourism to promote the city as a world-class tourism destination through a range of marketing programs and activities.

Operational Plan There are no specific strategies relating to SPA contained in 2017-18 Operational Plan. 7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not applicable 8 FUNDING AND RESOURCING REQUIREMENTS

Not applicable 9 RISK MANAGEMENT The funding of SPA does not relate directly to any of the Corporate Risks. However it does relate to Directorate Risk No. CO000410 below, which is currently rated as Low 48 under Council’s Risk Management methodology.

752nd Council Meeting 13 March 2018 8 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 2 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32)

Adverse impact on Council through inappropriate/illegal actions of any of Council's controlled entities for which the OCEO is responsible (ie, Gold Coast Arts Centre Pty Ltd, Surfers Paradise Alliance Ltd, Broadbeach Alliance Ltd and Connecting Southern Gold Coast Ltd)

The bi-annual performance review process and the appointment of a Councillor to each of the boards are mitigations for this risk. 10 STATUTORY MATTERS Corporations Act 2001

SPA is registered with the Australian Securities & Investments Commission as a company limited by guarantee. Its operations are governed by the Corporations Act 2001.

Auditor-General Act 2009

Under the Auditor-General Act 2009, SPA is classified as a “public sector controlled entity”. Section 5 of the Act states:

5 What is a controlled entity (1) An entity is a controlled entity if it is subject to the control of 1 or more of the following (the controlling entity)—

(a) a department; (b) a local government; (c) a statutory body; (d) a GOC; (e) another entity subject to the control of 1 or more of the entities mentioned in paragraphs (a) to (d).

(2) In this section—control means the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable the other entity to operate with it in pursuing the objectives of the controlling entity.

With respect to the City’s “control” of SPA, the City:

is the sole member of the Company and therefore has control over its constitution as well as the appointment of the directors and chairperson

has control over the Company’s specific role and responsibilities via the service agreement

provides annual funding in accordance with the service agreement regularly reviews the Company’s performance against the service agreement including

the strategic direction of the Company. The Act requires that Queensland Audit Office be appointed as the Company’s Auditor. Workers’ Compensation & Rehabilitation Act 2003 SPA is also classified as a “Related Body Corporate” of the City under this Act and the Corporations Act 2001 and, as such, the City must provide workers’ compensation coverage to SPA. As Council self-insures for workers’ compensation, like Council, SPA must maintain a work health and safety management system that is compliant with the National Self-insurer OHS Management System Audit Tool (NAT 3- 2014) – and forms part of the external audit of Council’s WHS Management System by the regulator.

752nd Council Meeting 13 March 2018 9 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 2 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32) 11 COUNCIL POLICIES

Not applicable 12 DELEGATIONS The Council has delegated authority to the Chief Executive Officer to determine all matters within the responsibility of Council as the sole member of the Company – with the exception of the determination of annual funding and review of the entity’s performance. 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted

Directorate or Organisation

Is the Stakeholder Satisfied With Content of Report and Recommendations

Joanne Cullen, Corporate Finance Accountant

OCOO (Corporate Finance)

N/A

Clare Leys, Principal Project & Investment Attraction Officer (Tourism)

EP&E Yes

14 STAKEHOLDER IMPACTS The SPA Board and Council, being the sole Member of the Company, are the key stakeholders in terms of SPA’s performance in the achievement of the objectives detailed in SPA’s Constitution, the obligations detailed in its service agreement with Council and the agreed KPI’s. The SPA Board is broadly representative of the stakeholders in the Surfers Paradise precinct. SPA works cooperatively and in consultation with Gold Coast Tourism and the other precinct entities in accordance with the new Destination Tourism Management Plan Partnership Agreement. 15 TIMING The next bi-annual performance review is due in November 2018 (for the six month period ending 30 June 2018). 16 CONCLUSION

It is considered that SPA is satisfactorily performing its roles and responsibilities under the Service Agreement and meeting the objects for which it was established.

It is essential that the entity have a period of tenure no less than 12 months - to ensure it is able to operate in a legally compliant manner when it comes to commercial dealings (eg, entering into contracts) and to facilitate the appointment of directors for four-year terms, as provided for in SPA’s constitution. As the current Service Agreement concludes on 30 June 2019 it is recommended that Council extends the Agreement to 30 June 2022.

752nd Council Meeting 13 March 2018 10 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 2 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council notes Surfers Paradise Alliance Ltd’s bi-annual performance report for the

half-year ended 31 December 2017. 2 That Council extends its current Service Agreement with Surfers Paradise Alliance Ltd

to 30 June 2022. Author: Authorised by:

Stephen Bowden Dale Dickson Coordinator Controlled Entities & Community Grants Chief Executive Officer 26 February 2018 Document # 68150701

COMMITTEE RECOMMENDATION ETG18.0308.002 moved Cr Gates seconded Cr Taylor 1 That Council notes Surfers Paradise Alliance Ltd’s bi-annual performance report for the

half-year ended 31 December 2017.

2 That the Service Agreement with Surfers Paradise Alliance Ltd be reviewed at the Events Tourism and Governance Committee Meeting to be held on 8 November 2018.

3 That Council recognises Ms Laura Younger for her dedication and outstanding service as Chairperson of Surfers Paradise Alliance over the past eight (8) years.

CARRIED UNANIMOUSLY

CHANGED AT COUNCIL MEETING 13 MARCH 2018

MOTION moved Cr Crichlow seconded Cr PJ Young That the Officer’s recommendation be adopted such that it reads as follows:- 1 That Council notes Surfers Paradise Alliance Ltd’s bi-annual performance report for

the half-year ended 31 December 2017.

2 That Council extends its current Service Agreement with Surfers Paradise Alliance Ltd to 30 June 2022.

AMENDMENT moved Cr Tate seconded Cr Vorster

That Committee Recommendation ETG18.0308.002 be adopted as printed which reads as follows:- 1 That Council notes Surfers Paradise Alliance Ltd’s bi-annual performance report for the

half-year ended 31 December 2017.

752nd Council Meeting 13 March 2018 11 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 2 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER SURFERS PARADISE ALLIANCE LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/639/-(P32) 2 That the Service Agreement with Surfers Paradise Alliance Ltd be reviewed at the

Events Tourism and Governance Committee Meeting to be held on 8 November 2018.


A division was called. For 10 Cr Owen-Jones, Cr Caldwell, Cr Vorster, Cr O’Neill,

Cr La Castra, Cr Boulton, Cr Gates, Cr PC Young, Cr Taylor, Cr Tate

Against 5 Cr Tozer, Cr PJ Young, Cr Crichlow, Cr Baildon. Cr McDonald Abstained 0 Absent 0 The AMENDMENT was CARRIED and became the MOTION RESOLUTION G18.0313.003

1 That Council notes Surfers Paradise Alliance Ltd’s bi-annual performance report for the half-year ended 31 December 2017.

2 That the Service Agreement with Surfers Paradise Alliance Ltd be reviewed at the Events Tourism and Governance Committee Meeting to be held on 8 November 2018.


CARRIED BY SUPER MAJORITY

COUNCIL MEETING 13 MARCH 2018

SURFERS PARADISE ALLIANCE LIMITED

CONTROLLED ENTITY BI-ANNUAL PERFORMANCE REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2017

CONTENTS

SECTION PAGE

CORPORATE GOVERNANCE 1 2

ACTIVITY SUMMARIES & KPI'S 2 3

FINANCIAL MANAGEMENT 3 4

752nd Council Meeting 13 March 2018 Events, Tourism & Governance Committee 8 March 2018

12 Adopted Report

38858

Typewritten Text

Attachment 1

SECTION 1 - CORPORATE GOVERNANCE

1.1 VISION

1.2 MISSION

1.3 MEMBERSHIP OF BOARD

Name of Director Organisation Date Appointed

Laura Younger Australian Timeshare and Holiday Ownership Council 16th December 2008Paul Callander Ardent Leisure Theme Parks 13th October 2014Gary Baildon Council of the City of Gold Coast 13th April 2016

Lex BellRetired Solicitor and former Councillor of the Council of the City of Gold Coast 10th August 2016

Leschen Smaller Director - Element Business and Accounting Solutions, CPA 10th August 2012Neeraj Chadha Surfers Paradise Marriott Resort & Spa 13th October 2014Tania Cowey McDonald's Licensee Surfers Paradise and Broadbeach 28th September 2015

1.4 BOARD COMPETENCY

Number of Board meetings held during the reporting period

The Board has a process in place at meetings to manage conflicts of interest including those relating to

the CEO and/or staff

The Board has a process in place to monitor compliance with the Director Code of Conduct

The attendance of directors at Board meetings is monitored and no directors have breached the

meeting attendance requirements of the Constitution

The Board last reviewed the CEO's performance on

The Board is due to conduct the next review of the CEO's performance on

The Company has a current strategic plan

This plan has been endorsed by Council

Where the Company does not have such a plan, the Board is arranging for one to be developed by

The Company has an annual business plan

If not, the Board is arranging for such plan to be developed and endorsed by

The Board has established an Audit/Risk Committee

This Committee last met on

This Committee is due to next meet on

The Board has ensured that documented internal controls are in place

The Board has ensured that a policy manual has been compiled that contains policies relating to risk

management, workplace health & safety, people management and procurement (as a minimum)

The Board is due to review these policies on

The Board has ensured that a risk register has been compiled (comprising both business and workplace

health & safety risks)

The Board last reviewed this register on

The next review of this register is scheduled for

The Board has ensured an employee performance management system is in place

The Board has implemented an appropriate board performance review process

The next review is due to take place on

The Board acknowledges that it needs to periodically review the effectiveness of the Company's corporate

governance framework. The next review is due to be conducted on

The Board has provided Council with a copy of any observation or similar reports issued to the Company

by the Qld Audit Office (or its nominated contractor) - for onforwarding to Council's Audit Committee for consideration

1.5 STAFF DETAILSNumber of FTE positions employed by the entity as at end of reporting period Amount of annual budget amount allocated to these positionsPercentage of annual budget allocated to these positions 24.64%

June 2018

Yes

21-December-2017

Monthly

Yes

Yes

Monthly

June 2018

Yes

14.8$1,133,404

Yes

August 2016

February 2018

Yes

Yes

N/A

Yes

N/A

Yes

February 2018

18-December-2017

Yes

Surfers Paradise is the heart of the Gold Coast and an international tourist destination where people come to visit and live, to discover a relaxed urban lifestyle that is fun and entertaining, stylish and cultured, on the shores of a world-famous beach.

BUILDING THE FUTURE TODAY“Surfers Paradise Alliance represents the businesses in Surfers Paradise and aims to increase visitation by marketing and promoting the precinct in conjunction with Tourism and Events Queensland and Gold Coast Tourism. Surfers Paradise Alliance enhances the experience of the precinct for visitors through events, festivals, markets and street entertainment.”SPA’s mission is to conduct successful and innovative marketing and promotional activities that: - Enhance the economic prosperity of Surfers Paradise traders- Shape a positive perception of the precinct- Increase visitation from our core markets- Attract additional revenue for the purpose of re-investment.Surfers Paradise Alliance focuses on events and products that provide a quality and consistency of offering across the calendar year to entice holiday makers, day trippers and residents to return to the precinct to re-energise, reconnect with families and friends and rediscover the excitement of Surfers Paradise.

Yes

Yes

Yes

5


13 Adopted Report

SECTION 2 - ACTIVITY SUMMARIES AND KPI's

2.1 SUMMARY OF KEY PROJECTS & ACTIVITIES UNDERTAKEN

DURING REVIEW PERIODSee attached executive report.

2.2 SUMMARY OF KEY PROJECTS & ACTIVITIES PLANNED FOR

NEXT REVIEW PERIODSee attached executive report.

2.3 STRATEGIC & OPERATIONAL KPI'sSee attached executive report.

2.4 SPECIFIC ISSUES FOR COUNCIL'S CONSIDERATIONSee attached executive report.


14 Adopted Report

SECTION 3 - FINANCIAL MANAGEMENT

3.1 OVERVIEW FOR THE HALF YEAR ENDED 31 DECEMBER 2017

CoGC Funding

Special Levy $1,671,664Other Funding $23,000

Administration $19,712Events $71,907Marketing $2,262Markets $438,548Sponsorship $110,235

Whilst all financial components of this template should be included as a minimum (ie financial overview,

income statement, balance sheet, cash flow, major variances and ratio analysis), the format and layout

may differ to that suggested, and additional detail may be provided where considered relevant or useful.

The Board is responsible for the preparation and presentation of this financial report and the information

contained therein, including establishing and maintaining internal controls relevant to the preparation and

fair presentation of the financial report to ensure that it is free from material misstatement.

The Surfers Paradise Alliance fully acquitted funds provided by the City of Gold Coast and self-sourced during the period in the delivery of planned activities:

The surplus for the Half Year ending 31 December 2017 amounted to $221,134

All ratios are within acceptable limits reflecting the financial position to be strong and positioned to deliver on plans and strategies into the future.

The cash position remains strong and the cash flow forecasts consistently reflect that the organisation is in a solid cash position and can pay liabilities as and when they fall due.

The forecasted surplus for the Full Year ending 30 June 2018 amounts to $23,698


15 Adopted Report

3.2 STATEMENT OF COMPREHENSIVE INCOME


Yr 2 Yr 3

Actual Budget Actual Budget Actual Budget Var Budget Budget

REVENUE

Special Levy $835,832 $835,832 $835,832 $835,832 $1,671,664 $1,671,663 $0 3,410,194 3,478,397Other Funding $0 $0 $23,000 $17,000 $23,000 $17,000 $6,000 50,000 50,000

Administration $13,441 $6,600 $6,271 $6,600 $19,712 $13,200 $6,512 27,807 28,363Events $71,153 $20,000 $754 $5,000 $71,907 $25,000 $46,907 10,500 10,710Marketing $702 $2,750 $1,559 $2,750 $2,262 $5,500 -$3,238 56,920 58,058Markets $218,363 $224,791 $220,186 $212,303 $438,548 $437,094 $1,455 906,482 924,612Sponsorship $42,435 $43,000 $67,800 $121,500 $110,235 $164,500 -$54,265 250,500 256,510

TOTAL REVENUE $1,181,926 $1,132,973 $1,155,402 $1,200,984 $2,337,328 $2,333,957 $3,371 $4,712,403 $4,806,651

EXPENSES

Events $602,282 $626,729 $524,069 $487,863 $1,126,351 $1,114,592 $11,759 2,507,849 2,558,006Marketing $89,012 $109,448 $88,193 $116,945 $177,205 $226,393 -$49,188 395,271 403,176Markets Operations $67,083 $51,075 $64,934 $58,990 $132,017 $110,066 $21,951 277,425 282,974Sponsorship $6,840 $6,000 $2,385 $6,000 $9,225 $12,000 -$2,775 24,000 24,480Trader Liaison $3,975 4,300 $8,670 $4,300 $12,645 $8,600 $4,045 17,200 17,544Administration $35,562 $38,953 $42,613 $49,475 $78,175 $88,428 -$10,253 187,069 190,810Salary Costs Event Program $277,621 $278,342 $257,347 $276,793 $534,968 $555,136 -$20,168 1,191,137 1,214,960Office Rent and Parking paid to CoGC $24,073 $20,278 $21,535 $20,459 $45,608 $40,737 $4,871 86,508 88,238

TOTAL EXPENSES $1,106,445 $1,135,126 $1,009,748 $1,020,825 $2,116,193 $2,155,951 -$39,758 $4,686,459 $4,780,188

NET PROFIT/(LOSS) BEFORE INCOME TAX $75,481 -$2,153 $145,654 $180,159 $221,134 $178,006 $43,128 $25,944 $26,462

INCOME TAX EXPENSES $0 $0 $0 $0 $0 $0 $0 0 0

NET PROFIT/(LOSS) AFTER INCOME TAX $75,481 -$2,153 $145,654 $180,159 $221,134 $178,006 $43,128 $25,944 $26,462

* categories of reported revenue and expense items will vary from organisation to organisation depending on nature of activities and amounts involved

CURRENT YEAR (Year 1) FORECAST

YTDQTR 1 QTR2

Page 5 of 9


16 Adopted Report

3.3 STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2017

Current reporting

period

Same period last

year

YTD YTD

DEC-17 DEC-16

$ $

CURRENT ASSETS

Cash and cash equivalents $959,863 $1,643,653Receivables $42,493 $104,897Inventories $1,774 $0Prepayments $174,801 $125,642

Other current assets$1,178,931 $1,874,192

NON-CURRENT ASSETS

Property, plant and equipment $210,666 $217,887$210,666 $217,887

TOTAL ASSETS $1,389,597 $2,092,079

CURRENT LIABILITIESPayables $554,095 $1,981,400Unearned revenue $76,532 $45,799Employee benefits $62,517 $47,592Other current liabilities

$693,144 $2,074,791

NON-CURRENT LIABILITIES

Employee benefits $17,637 $8,780$17,637 $8,780

TOTAL LIABILITIES $710,781 $2,083,571

NET ASSETS $678,816 $8,508

EQUITY

Retained earning - opening $457,682 $413,004Retained earnings - current year $221,134 -$404,496TOTAL EQUITY $678,816 $8,508

* categories of reported balance sheet items will vary from organisation to organisation

depending on nature of activities and amounts involved


17 Adopted Report

3.4 CASH FLOW STATEMENT AND FORECAST


Year 2 Year 3

Actual Budget Actual Budget Actual Budget Var Budget Budget

OPENING CASH $686,134 $686,134 $732,983 $791,056 $686,134 $686,134 $0 $739,039 $658,721

ADD OPERATING RECEIPTS

Corporate Revenue $933,570 $926,675 $952,525 $926,675 $1,886,095 $1,853,350 $32,745 $3,834,020 $3,891,530Event Revenue $43,733 $22,000 $19,174 $5,500 $62,907 $27,500 $35,407 $11,550 $11,723Marketing Revenue $424 $3,953 $1,715 $2,749 $2,139 $6,702 -$4,563 $62,612 $63,551Sponsorship $7,700 $94,050 $94,820 $113,500 $102,520 $207,550 -$105,030 $275,550 $279,683Beachfront Markets $247,969 $247,272 $253,174 $233,533 $501,144 $480,805 $20,339 $997,130 $1,012,087

TOTAL RECEIPTS $1,233,396 $1,293,950 $1,321,409 $1,281,957 $2,554,805 $2,575,907 -$21,102 $5,180,862 $5,258,575

LESS OPERATING PAYMENTS

Payments to Staff & Superannuation $249,376 $221,389 $282,948 $261,481 $532,324 $482,870 $49,454 $1,059,121 $1,075,008ATO (GST, PAYG, FBT,Payroll Tax) $109,515 $104,599 $146,279 $106,490 $255,794 $211,089 $44,705 $548,889 $557,122Payments to Suppliers $821,874 $861,040 $658,056 $766,178 $1,479,930 $1,627,218 -$147,288 $3,641,170 $3,695,788Capital Expenditure $5,783 $2,000 $7,245 $2,000 $13,027 $4,000 $9,027 $12,000 $12,180

TOTAL PAYMENTS $1,186,547 $1,189,028 $1,094,528 $1,136,149 $2,281,075 $2,325,177 -$44,102 $5,261,180 $5,340,098

CLOSING CASH (must equal cash per

balance sheet) $732,983 $791,056 $959,863 $936,864 $959,863 $936,864 $22,999 $658,721 $577,198

* categories of reported cash flow items will vary from organisation to organisation depending on nature of activities and amounts involved

FORECAST

YTDQTR 1 QTR2

CURRENT YEAR (Year 1)


18 Adopted Report

3.5 MAJOR VARIANCES ANALYSIS


CategoryYTD Actual

$

YTD Budget

$

Variance

$

Variance

%Analysis (provide commentary when variance greater than 10% or $10,000)

REVENUE

Other Funding $23,000 $17,000 $6,000 35%Support for Infinitus Chinese Conference 2018 from Division 7 was not budgeted.

Administration $19,712 $13,200 $6,512 49% Commission on pedestrian tracking deal with CoGC and Movvo plus Busking Income achieved is better than Budget

Events $71,907 $25,000 $46,907 188%Additional revenue achieved for VIVA Surfers Paradise, Kids Week and reimbursement of costs for contruction of Marquee for Tourism Australia .

Marketing $2,262 $5,500 -$3,238 -59% Full year revenue expected to be met by June 2018

Sponsorship $110,235 $164,500 -$54,265 -33% Expect to achieve the budgeted income by June 2018

TOTAL REVENUE $2,337,328 $2,333,957 $3,371 0%EXPENSES

Markets Operations $132,017 $110,066 $21,951 20% Market security costs have been revised with the approval of the BoardTrader Liaison $12,645 $8,600 $4,045 47% Additional Trader Engagement activations implemented during events.

Office Rent and Parking paid to CoGC $45,608 $40,737 $4,871 12% Parking costs incurred is higher than expected

TOTAL EXPENSES $2,116,193 $2,155,951 -$39,758 -2% Overall expenses below budget

NET PROFIT/(LOSS) AFTER INCOME TAX $221,134 $178,006 $43,128 24% Overall profit forecast above budget



19 Adopted Report

3.6 RATIO ANALYSIS


Ratio Notes Current

reporting

date ratio

Comments

Current ratio (current assets/current liabilities)

A measure of short-term liquidity, the current ratio measures an organisation's ability to repay its short-term debt (due in the coming 12 months) by using short-term assets. Ideal current ratio is at least 2:1.

1.70 Acceptable level of liquidity to meet liabilities as they become due.

Debt ratio(total liabilities/total assets)

Measures percentage of assets provided by creditors and extent of using gearing. The lower the ratio, the

greater the asset protection to creditors.0.51 Acceptable level of gearing to protect

creditors.

Profit margin(operating profit/net sales) Measures net profitability of an organisation 9.46%

Not for profit organisation and profitability ratio will be proportionately surplus at end of

financial year.


20 Adopted Report

City of Gold Coast Events, Tourism and Governance Committee

Corporate Governance Report

Surfers Paradise Alliance

1st July 2017 to 30th December 2017

LauraYounger

BA. MBA. GAICD

Board Chair

MikeWinlaw

BBus. MBA

CEO


21 Adopted Report

38858

Typewritten Text

Attachment 2

38858

Typewritten Text

38858

Typewritten Text

Table of Contents

1.0 Chair Executive Summary ........................................................... 1

2.0 Executive Report ........................................................................... 1

3.0 Strategic KPIs ................................................................................ 8

4.0 Organizational Chart ................................................................... 19

5.0 Moving Forward in 2018 ............................................................. 24

6.0 Attachment 1 - Corporate Governance and Financial Management Report for half-year ending 31st December 2017 ................................ 25


22 Adopted Report

1.0 Chair - Executive Summary – February 2018 Our goal is to continue to excite and engage our visitors and ensure Surfers Paradise retains its image as one of the leading tourism and entertainment hubs in Australia. In partnership with our Traders and Businesses we have during the reporting period continued to deliver a vibrant and sustained events and marketing program that cements our place as the number one Tourism beach and entertainment destination in Queensland. The directions and operations of Surfers Paradise Alliance are aligned to a set of well-defined core objectives and KPIs linked to the Gold Coast Destination Tourism Management Plan and the City of Gold Coast Service Agreement with Surfers Paradise Alliance continuing to deliver increases in drive market and interstate audiences year on year. Research and data collected regarding our performance with respect to Service Agreement KPIs indicate that the event and marketing activity undertaken by Surfers Paradise Alliance continues to be well regarded by traders, businesses and other stakeholders in delivering strong economic and cultural outcomes for the precinct. During the reporting period, the Surfers Paradise Alliance Board and Management performed well against the Core Objectives and KPIs approved by the City of Gold Coast for the 2017/18 financial year. The graph below highlights the achievements of the organization in delivering year-on-year increases in event attendance and subsequent economic stimulus, increased revenue streams to support event and marketing activations, with minimal increases in the special levy:

2010/11Actuals

2011/12Actuals

2012/13Actuals

2013/14Actuals

2014/15Actuals

2015/16Actual

2016/17Actual

2017/18Budget

Total Revenue 3,384,579 3,767,796 4,071,465 4,348,793 4,411,683 4,521,465 4,575,243 4,624,658

Special Levy 2,883,216 2,984,129 2,984,129 3,046,796 3,138,200 3,200,964 3,280,988 3,343,327

Event Attendance 411,000 931,500 1,333,678 1,382,933 1,595,165 1,700,269 1,728,000 1,856,000

26.26% 36.44%

42.73% 40.58% 41.25% 39.5% 38.33%

3.5% 0% 2.1% 3% 2% 2.5% 1.9%

126.64% 224.5% 236.48%

288.12% 313.69% 320.44%351.58%

‐

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Special levy % Increase on prior year

% Increase on attendance over base year of 2010/11

Revenue % over Special Levy

Total Revenue


23 Adopted Report

During the reporting period the Surfers Paradise Alliance team delivered 114 days of event activation being 36 days of Tier 1 and Tier 2 event activation and 78 days of Beachfront Markets activation all aligned to consumer demands for entertainment across key pillars of activation being Art, Music and Entertainment. Our events calendar defines the Surfers Paradise precinct as the entertainment destination of choice for locals, day trippers and overnight holiday makers across our target markets. We seek to ensure all our events are the “destination” for an ever growing body of fans across a wide age demographic and placing Surfers Paradise at the forefront of tourism within Queensland. Over the reporting period we have continued to receive strong trader feedback from all trader segments with the accommodation sector particularly recognizing the momentum being built in growing overnight visitation through SPA events across the precinct. Surfers Paradise Alliance has, during the reporting period, delivered continuity of leadership and highly positive economic outcomes for precinct traders and businesses leveraging the $1.64M contribution made by Traders and Businesses to the Surfers Paradise Special Levy to deliver a significant gross economic output of over 30 times investment. Surfers Paradise Alliance has continued on a journey of best practice Tourism precinct management with the most rigorously transparent picture possible of our results and reporting processes. During the reporting period positive public relations and promotion of family friendly activity has further reshaped visitor perception of the precinct as a thriving hub of entertainment, dining and major event activity. Importantly Surfers Paradise Alliance has been delivering over and above expectations in relation to performance against established City of Gold Coast Service Agreement KPIs. We view our event calendar as an investment portfolio, the value of which is the sum total of the events within it and the ROI on the investment made to achieve above an industry benchmark of 8 times investment. We have also ensured that our planning and production of events delivers significant social/cultural value to the residents and visitors to the Gold Coast Local Government area with our Net Promoter scores for our signature events being measured at almost twice the industry average.


24 Adopted Report

Moving Forward in 2018 As we move forward into 2018 we have taken up the challenge set by the City of Gold Coast to extend the depth and breadth of our Cultural Tourism offering and expanding our Event Product offerings to deliver larger than ever audiences into the Gold Coast and particularly the Surfers Paradise Precinct during both peak and off peak periods. We will be very active in the coming 6 months in supporting emerging and growing city wide cultural events on the Gold Coast and particularly with our long term partnerships with the:

Gold Coast Film Festival Gold Coast Music Awards and Gold Coast Theme Parks

We will continue to support our partners with monetary, in-kind and operational infrastructure to enhance the visitor experience and contribute to ensuring the long term viability and sustainability of these key Gold Coast cultural events and businesses. We are proud of our record of achievement in delivering additional revenue streams beyond that contributed by Traders through the special area levy and we are on track to achieve additional revenue for 2017/18 at 38.33% of the special area levy. We are faced with some challenges in the coming months with residents of Ballah and Allunga (apartments overlooking the Cavill Mall) complaining about noise emanating from the Mall and particularly when buskers are operating of an evening. SPA is engaging with stakeholders and City of Gold Coast officers to review busking license terms and conditions to seek to address a range of issues and specifically we will be seeking to mitigate excessive noise. We have in previous years (2014) commissioned a noise consultant to measure ambient and operating licensed buskers in Cavill Mall and have been assured that all of our Buskers are operating well within regulatory noise guidelines. We are very committed to working collaboratively with City of Gold Coast in delivering a World Class Tourist destination to play our role in ensuring the long term economic prosperity of the broader Gold Coast economy. The Board, whom I thank for their time and commitment, wholly endorses the achievements of Surfers Paradise Alliance management and staff, as well as the support of Council officers and Gold Coast Tourism officers whose positive contribution continues to help our organisation to deliver so successfully on its core objectives. Laura Younger Chairperson, Surfers Paradise Alliance


25 Adopted Report

2.0 Executive Report Surfers Paradise Alliance is focused on six core objectives and related KPIs specific to the organization in supporting the achievement of the above targets being:

1. Enhancing the economic prosperity and sustainability of the Surfers Paradise Precinct, traders and businesses.

Strategic KPIs: 1.1 Deliver a strong events-based marketing strategy which results in an economic value

add to the Precinct equivalent to a minimum of five times the Surfers Paradise Alliance annual gross budget

2. Shaping a positive public perception of the Precinct Strategic KPIs:

1.1 Visitor survey results indicates a > 90% positive satisfaction rating 1.2 Media reports on the precinct reflect a positive view of the precinct 1.3 Alignment of Surfers Paradise Precinct marketing activities and events and

activations 1.4 Encourage Surfers Paradise Precinct businesses to engage with the Embracing 2018

Quality Service Program

3. Increasing visitation from core markets by expanding tourism product offerings,

events and activations within the Surfers Paradise Precinct. Strategic KPIs:

3.1 Increase the foot traffic flows through the Surfers Paradise Precinct by a minimum of 15% above non-event seasonal averages

3.2 Increase in visitation during off-peak times by 15% as a result of events and activations

3.3 Number of campaigns delivered in conjunction with GCT to promote events and activations through domestic and international networks

3.4 A minimum of 50% of events delivered by Surfers Paradise Alliance are attractive to visitors from outside the city with GCT networks leveraged to market to visitors.

3.5 Deliver a minimum of one whole-of-city event or activation in collaboration with Council’s precinct entities that would be attractive to visitors from outside the city

3.6 Collaborate with Council’s precinct entities to grow existing events and activations limited by precinct boundaries

4. Attracting additional revenue and sponsorship for the purpose of re-investment in

enhancing the Precinct’s visitor experience. Strategic KPIs: 4.1 Generate a cash revenue stream for Surfers Paradise Alliance (via sponsorship and

stakeholder contributions and other revenue sources) to the equivalent of 10% of the special area levy


26 Adopted Report

4.2 Deliver a value in kind revenue stream to events to the equivalent of 2.5% of the special area levy

5. Demonstrating stakeholder and visitor satisfaction of their event experience

5.1 Visitor survey results indicates >90% positive satisfaction rating of businesses, accommodation providers and event attendees

6. Ensure best practice governance. Strategic KPIs: 6.1 Zero breaches of Surfers Paradise Alliance policy and procedures and an unqualified

annual external audit Surfers Paradise Alliance performance against each of the Core Objectives and Strategic

KPIs for the period 1st July 2017 to 31st December 2017 is detailed below:

1. Core Objective: Enhancing the economic prosperity and sustainability of the Surfers

Paradise Precinct, traders and businesses

Strategic KPIs:

1.1 Deliver a strong events-based marketing strategy which results in an economic value

add to the Precinct equivalent to a minimum of five times the Surfers Paradise

Alliance annual gross budget – Achieved

Supporting Evidence and Data

The following table shows the Tier 1 event attendance and the Gross Economic Output of

these events.


27 Adopted Report

Tier 1 Event

Performance against Core Objectives and

KPIs

Total Attendance

above seasonal average

2017

Days of activation

Economic GVA and (Output)

2017

Visitor Satisfaction

Levels

2017

ROI

2017

1. Beachfront Markets

>386000 78 $4.4M

($9.25M) 90+% 28

2. VIVA SP

85,000 10 $9.6M

($18M) 98.7% 28

3. Carols on the Beach and Christmas in SP

120,000 13 $4.9M

($9.7M) 98.7% 36

4. NYE

100,000 6 $5.9M

(11.5M)

Not Measured

77

5. Kids Week

74,284 7 $2. 3M

($4.6M) 99.8% 22

TOTAL 765,284 114 $27.1M

($53.05M) 96.8+% 38.2


28 Adopted Report

The table below for TEQ funded events shows the significant impact of VIVA Surfers

Paradise in delivering overnight visitation to the Gold Coast.

Leveraging Partnerships for Economic Return: Surfers Paradise Alliance has continued to achieve optimum economic benefit from funds expended. The table below shows the results of leveraging and partnering with event partners during the reporting period to both reduce the costs of event activation and to leverage economic return for the Precinct Traders:

The TEQ supported Events have shown good growth as a result of further investment in the Event

experience and the enhanced Marketing to Drive and Interstate

2017

Event Attendance above seasonal

average

2017

Event Room Nights Generated for

Gold Coast LGA as measured by

IER Economic Consultants

2017 Viva Surfers Paradise

(Commenced 2012)

July Off Peak

85,000 23,700

TIER 2

Event Performance against Core

Objectives and KPIs

Total Attendance above seasonal

average

2017

Days of activation

Economic Return

GVA ROI

2017

NetFest 12,000 4 $0.9M 90

GC Food and Wine

1,000 1 <0.1M -

Oceanway Ride

500 1 <$0.1M .6

Tier 2 Total 149,800 44 $5.6M 10.86

Tier 3 Mall and precinct activation

30,000 30 Not assessed


29 Adopted Report

8

2. Core Objective: Shaping a positive public perception of the Precinct

Strategic KPIs

2.1 Visitor Survey results indicate a > 90% positive satisfaction rating of businesses

accommodation providers and event attendees – Achieved


Surveys of visitors across all events clearly showed high degrees of satisfaction with events. The

pie charts below indicates the overall and individual results of visitor surveys conducted for Tier

1 Events for the period 1st July 2016 to 30th June 2017.

Of 1,300 visitors surveyed across our Tier 1 events 1st July 2017 to 31st December 2017 99% of

respondents said they were very satisfied; only 1% indicated they were somewhat or very

dissatisfied.

99.10%

0.93%

Overall Visitors Satisfaction for Events in July‐December 2017

SATISFIED DISSATISFIED


30 Adopted Report

9

Strategic KPIs

2.2 Media reports on the precinct reflect a positive view of the precinct - Achieved

The Surfers Paradise Alliance Media Strategy is targeted towards reimaging the precinct

and media reports on Surfers Paradise continue to reflect a positive view of the precinct.

We continue to focus on positioning Surfers Paradise as a fun, family friendly and safe

entertainment precinct. We continue to open Surfers Paradise stages to the community, including

schools, youth and multicultural groups providing an opportunity for them to showcase their

talents at no cost to the group and subsequently attracting locals into the precinct.

Our Events provided an excellent platform for the promotion of Surfers Paradise to locals,

visitors, national and international audiences.

The table below indicates the reported results of media coverage with respect to Surfers Paradise

Alliance initiatives from 1st July 2017 to 31st December 2017.

MEDIA

KPI 2017/18 Budget/Target

Actual Jul-Dec 2017

Number of media activities initiated or managed by SPA

57 29

Total publicity value of media coverage $3.8m $1,604,227

Total Number of Gold Coast Media Items mentioning SPA or SPA Activities

660 309

Total number of National media items 33 14

Total number of Regional media items (QLD, NSW, VIC)

165 464

Total number of Drive Market event and SPA initiated media items

275 184


31 Adopted Report

10

Strategic KPIs

2.3 Alignment of Surfers Paradise Precinct marketing activities, events and activations –

Achieved via Business Plan and Trader engagement in planning (Surfers Paradise

Events Advisory Committee).

2.4 Encourage Surfers Paradise Precinct businesses to engage with the Embracing 2018 Quality Service Program – On track


the support generated by Surfers Paradise Alliance for the Be My Guest Service Awards with a very high percentage of nominations stimulated by active engagement with Surfers Paradise traders

3. Core Objective: Increasing visitation from core markets by expanding tourism product

offerings, events and activations within the Surfers Paradise Precinct.

Strategic KPIs

3.1 Through event or promotional activation increase the foot traffic flows across the

precinct by a minimum of 15% above non-event seasonal averages – Achieved

3.2 Increase in visitation during off-peak times by 15% as a result of events and activations - Achieved


Tier 1 Events

Jul-Dec 2017 Seasonal Average

Total Across Period of Event

Difference % above

Viva Surfers Paradise Off Peak

704,229 789,229 85,000 12.06%

Kids Week 313,910 388,194 74,284 23.66%

Christmas and Carols 2017 Peak

961,268 1,081,268 120,000 12.48%

New Year’s Eve Carnival 2017

325,000 425,000 100,000 30.76%


32 Adopted Report

11

Peak

Average 2,304,407 2,683,691 379,284 16.45%

3.3 Campaigns delivered in conjunction with GCT to promote events and activations

through domestic and international networks – Achieved

GCT have provided in-kind contribution towards SPA signature events

3.4 A minimum of 50% of events delivered by Surfers Paradise Alliance are attractive to

visitors from outside the city with GCT networks leveraged to market to visitors.

- Achieved

All Surfers Paradise events are showing strong increases in attendance and particularly drive market and overnight visitation as reported above.

3.5 Deliver a minimum of one whole-of-city event or activation in collaboration with Council’s precinct entities that would be attractive to visitors from outside the city - Achieved We have been very active during the past 12 months in supporting emerging and growing city wide cultural events on the Gold Coast and have secured long term partnerships with:

Gold Coast Film Festival Gold Coast Music Awards

We have supported these events with monetary, in-kind and operational infrastructure to enhance the audience experience and thus playing a key role in ensuring their long term viability and sustainability as key Gold Coast cultural festivals. Jointly the entities have agreed to support The Gold Coast Film Festival to provide further support whole of city event activation moving forward from 2018.

3.6 Collaborate with Council’s precinct entities to grow existing events and activations

limited by precinct boundaries – Achieved Regular quarterly meetings are conducted to discuss and plan for cross promotions and ongoing growth

4. Core Objective: Attracting additional revenue and sponsorship for the purpose of re-investment in enhancing the Precinct’s visitor experience.


33 Adopted Report

12

Strategic KPIs

4.1 Deliver a cash revenue stream to the operations of Surfers Paradise Alliance via

sponsorship and stakeholder contributions and other revenue sources) which is

equivalent to 10% of the Trader levy contribution – On target to achieve 3 times

the established KPI as per graph below.

4.2 Deliver a value in kind revenue stream to events to the equivalent of 2.5% of the

special area levy – Achieved as per table below

Sponsorship/Grants/Commercial Revenue Achieved from 1st July 2016 to 30th June 2017

ADDITIONAL REVENUE STREAMS

KPI 2017/18 Budget/Target 1st July 2017 to 31st December 2017

Markets Revenue $880,431 $438,548

Cash Sponsorship $ achieved $250,500 $81,800

VIK Sponsorship $ achieved $0 $28,435 Grant and Supplementary Funding

Other Grants – TEQ and Div 7 $60,000 $23,000

Other Income – Advertising, Busking, Event Ticketing

$90,400 $93,881

% of Trader Levy (Cash)

38.32% 39.82%

5. Core Objective: Demonstrating stakeholder and visitor satisfaction with their event

experience

Strategic KPIs

5.1 Visitor/stakeholder survey results indicate >90% positive satisfaction rating of businesses, accommodation providers and event attendees – Achieved (See pie chart 2.1 for result verification for visitors)

Trader Engagement – Achieved > 90%

Apart from regular Trader communication forums and updates, the Surfers Paradise

Alliance management group meets regularly with Traders from the five key business

segments in the precinct being:

1. Retailers

2. Accommodation

3. Restaurants and Nightlife


34 Adopted Report

13

4. Attractions and

5. Corporate and Services (including CoGC and GCT).

During the reporting period Surfers Paradise Alliance continued to host regular

meetings, both formal and informal, to connect with precinct Traders.

Positive results have flowed and we have seen more Traders exploring opportunities to

work collaboratively with Surfers Paradise Alliance to enhance both the reputational

image and the overall prosperity of the precincts economy.

The results of the trader satisfaction surveys for major events summarized below

indicate a high degree of satisfaction with SPA Event activations:

94%

6%

Overall Trader Event Satisfaction July‐December 2017

Satisfied Dissatisfied


35 Adopted Report

14

TRADER ENGAGEMENT KPI 2017/18 Budget/Target 1st July 2017 to 31st December 2017

Trader Surveys conducted Within 5 days of completion of all Tier 1 and Tier 2 events

4

Trader Induction Kits Distributed All new traders identified 20

Trader Meetings/Engagement 960 587

Trader Forums conducted 2 1

Trader Education Workshops conducted

2 1

6. Ensuring best practice governance

Strategic KPI:

6.1 Zero breaches of Surfers Paradise Alliance policy and procedures and an unqualified

annual external audit – Achieved

GOVERNANCE


Risk Management Register reviews conducted by the CEO and Board

12 6

Reportable breaches of SPA policies and procedures identified and reported to Board

0 0

Audit Committee Meetings Held 2 3

Board Performance Evaluations completed 11 5

Governance Reports to CoGC - acceptance 2 1

Board Strategic Planning Session completed 2 1

A current risk register and mitigation strategies are in place and updated annually to reflect existing and emerging risks. The risk register was last reviewed by the Surfers Paradise Alliance Board in October 2017.


36 Adopted Report

15

To the best of my knowledge all obligations and responsibilities of the Surfers Paradise Alliance Board and Management were adhered to and discharged during the reporting period. 3.0 Operational KPIs for 2017/18 as reported to the Surfers Paradise Alliance

Board at each monthly meeting

3.1 Marketing

MARKETING


Marketing Revenue $12,000 $2,262

Online

Surfersparadise.com - Visits average 48,000 per month | 580,000 per year

366,009

Surfersparadise.com - Unique Visits average 39,000 per month | 470,000 per year

287,004

Facebook Fans of SP (90,591 Fans)

average 660 new likes per month | 8,000 per annum

1,371

E-Newsletter Distribution 12 per annum 6

3.2 Stakeholder Meetings

STAKEHOLDER AND COMMUNITY ENGAGEMENT MEETINGS KPI 2017/18 Budget/Target 1st July 2017 to 31th December

2017 Chamber of Commerce Network Functions

6 2

GCT and Alliances MOU Review and Planning

4 1

Heart of the City meetings 4 2


37 Adopted Report

16

3.3 Workplace Health and Safety

Health and Safety Reporting Scorecard 2017-18

KPI Reporting Frequency

Target /Threshold Actual

Comments

1 Corporate Health and Safety information is communicated to new staff within 2 days of commencement.

Monthly (Jun, Dec)

100% of new staff have completed the corporate WHS induction and questionnaire within 2 days of commencement

100% All new staff from 1st July 2017 have been completed WHS induction as part of work induction. All existing staff have received a refresher presentation.

2 Health and Safety Reporting is accurate and communicated to senior management to enable informed decision making each month.

Six Monthly

(Jun, Dec)

100%

(12 per year)

WHS Performance Reports are produced monthly

100% WHS performance report has been completed and presented.

3 Event management plans (including risk assessments) are developed in consultation with key stakeholders where required and are signed and dated by all parties.

Quarterly

(Mar, Jun, Sep, Dec)

100% of event management plans are signed by all parties.

100% All Event Risk management plans have been completed and sign by relevant parties.

4 Workplace Inspections are completed at the Surfers Paradise Alliance office

Quarterly


100% of inspections are completed each quarter.

100% September 2017 inspection complete.

5 Corrective actions listed in the Corrective Action Register are closed out on time.

Quarterly


80% 80% All items on the corrective action register are complete, with only 20% completed later than the due date.


38 Adopted Report

17

EVENTS WORKPLACE HEALTH & SAFETY

KPI 2017/18 Budget/Target 1st July 2017 to 31st December

2017 Reportable incidents and accidents occurring 0 2

Documented risk assessments and hazard management completed on events conducted under the auspices of SPA Tier 1 and Tier 2

14 4

Documented risk assessments and hazard management completed on events conducted under the auspices of SPA Tier 2

9 4

Documented risk assessments and hazard management completed on events conducted under the auspices of SPA Tier 3

40+ 13

All incidents and accidents were reported, documented, investigated and corrective actions

taken as required.

3.4 Beachfront Markets Workplace Health and Safety

BEACHFRONT MARKETS WORKPLACE HEALTH & SAFETY KPI 2017/18 Budget/Target 1st July 2017 to 31st December

2017

Reportable incidents and accidents occurring 0 2 Quarterly WH & S third party audits of the Beachfront Markets

4 2

All incidents and accidents were reported, documented, investigated and corrective actions

taken as required. No serious injury was sustained.


39 Adopted Report

18

3.5 Operations

OPERATIONS


Cleaning Audits Conducted 12 6

The general standard of cleaning is acceptable throughout the precinct with issues of

concern being referred to CoGC officers.

3.6 Human Resources

HUMAN RESOURCES


Permanent Staff Hours FTE’s 12.6 15.2

Volunteer Hours N/A 1640

Staff WH&S incidents/accidents 0 0

Days lost sick leave < 1% FTE days 2.28

Days lost sick leave-FTE Days 30 45


40 Adopted Report

19

4.0 Organizational Chart

The approved permanent staff establishment as on 31st December 2017 is 14.8 FTE’s as per the organizational chart below:


41 Adopted Report

20

Report against Planned DTMP Action

1. Stronger Partnerships

DTMP Action Actions Lead Support

1.1 Partnership

Agreement

Establish a Gold Coast Tourism Partnership Agreement between GCT, the City

and Precinct Entities and includes:

• a long-term commitment to the partnership

• delineation of clear roles and responsibilities

• shared destination performance outcomes

• comprehensive two-way reporting and accountability

City/GCT

SPA, CSGC,

BA, TEQ,

DTESB, QTIC

SPA has been involved in regular meetings with Council Officers and GCT to review progress against the DTMP and is fulfilling obligations that

are detailed within the plan. The MOU between the entities and GCT has resulted in further recognition of the challenges facing the industry on the

Gold Coast and provided direction and strategy to advance our shared objectives.

4. Quality Service and Innovation Implementation Plan (2015-2016)


4.1 Service Culture Enhance the service culture in the tourism and hospitality industry through the

development and delivery of customer service plan for the Gold Coast as a

legacy outcome of GC2018. (Surfers Paradise Alliance Limited to support

QTIC

City/DTESB

GCT, SPA,

CSGC, BA,


42 Adopted Report

21

delivery of plan once developed)

SPA has supported all initiatives and training programs to date with extensive trader communication and promotion of opportunities. The Be My

Guest Program is regularly supported and communicated to traders.

4.7 Night Time Economy

(refer to 6.9)

Develop and execute a Night Time Economy Plan addressing safety and security

to sit beside any marketing and place management initiatives. Precinct

managers, police and operators will need to work together to promote positive

community perceptions about the destination. Night Time Economy Plan will

also need to consider outcomes of the Public Domain Improvement Policy

Review (action 6.9)

City

BA, SPA,

CSGC,

Local Area

Committees

SPA has undertaken initiatives in conjunction with Police and Glink to support public education around safety. SPA is represented and is provided

opportunity to input into safety initiatives through the Mayors Safer Suburbs Forum on a quarterly basis.

No action has been taken in conjunction with the City as lead at this stage.

4.8 Place Management

Plan

Deliver a dedicated program of place management across key tourism precincts

which include the maintenance of public spaces (parks, gardens, walkways,

toilets), urban renewal, cultural and local activation. Any amendments to be

considered with the outcomes of the Public Domain Improvement Policy

Review (action 6.9)

City

BA, SPA,

CSGC,

Local Area

Committees

SPA contributes to deliver Place Management within the precinct through the Heart of the City Advisory Committee.


43 Adopted Report

22

6. Nature and Culture


6.6 Cultural and

entertainment

Actively promote and support an increase in cultural and entertainment

activities which can be aligned with key tourism precincts

City

BA/SPA/CSGC

SPA is very supportive and actively engaged with community cultural groups having delivered 111 additional activations with these groups (dance,

music, theatre) during the 2016/76 financial year. These event activations are supported with in-kind operational, infrastructure and financial

support delivering ongoing cultural and entertainment value to the precinct.

6.9 (6.6) Public Domain

Improvement Policy

Advocate for the review of the City’s public domain policy in terms of street

entertainment, cultural experiences, outdoor dining and signage through the

Public Domain Improvement Strategy for GC2018 to benefit tourism with

permanent changes.

City / GCT BA/SPA/CS

GC

SPA has contributed to requests for input into various Council initiatives however no consolidated strategy has been forthcoming at this stage.


44 Adopted Report

23

7. Events Implementation Plan 2014-2015


7.9 Events Given the wide number of events and limited resources, review the

delineation of roles and responsibilities required to acquire, manage and

deliver events that will drive new visitation to the city. City, GCT,

TEQ

BA, SPA,

CSGC Endorsed Action: Precinct Entities deliver events according to the revised

Service Agreements and KPI’s aligned to the DTMP

SPA event strategy and activations are endorsed by representative trader groups and aligned to the DTMP and Service Agreement KPIs.

The Trader Events committee comprising key business leaders from each of the trader segments represented within the precinct provides a

strong sounding board for both DTMP and SPA strategy and direction. The current committee comprises:

1. Rachel Finlay – Accommodation – Mantra Group

2. Tane Thompson – Attractions - Infinity

3. Tania Cowey – Restaurants - McDonalds

4. Dave Allen – Clubs and Pubs - One Cavill

5. Arthur DeSnoo – Restaurants and Caterers

6. Juan Uribe – Attractions

7. Lisa Tucker – Attractions - Ripley’s

8. Michelle Thompson Cramp - Retail – Paradise Centre

9. Ben Manns – Commercial – Ticket Mates


45 Adopted Report

24

5.0 Moving Forward in FY 2017/18

Surfers Paradise Alliance will continue to innovate and deliver a platform of sustainable

and high-quality signature events that will not only excite and entertain but draw larger

audiences’ year-on-year as our timelines, revenue and quality grows.

Importantly, we continue to ensure that planning and production of events deliver

economic value and social cultural return, contributing to the overall liveability index

within the Gold Coast Local Government Area.

Over the past seven years, the Board and Management have worked towards building a

sustainable and robust events calendar that delivers a return on investment across all trader

segments.

We recognise that not all events benefit all trader segments. As an example we know that

activations around children’s activities do not benefit pubs and clubs and as a consequence

have attempted to balance the events portfolio to spread the benefits of event activation as

broadly as possible across trader segment.

To gather more input and create strong trader alignment with our Event strategy the Board

will continue to consult and collaborate with the Surfers Paradise Trader Events Advisory

Committee to ensure alignment across the trader market segments in 2018.

As we move forward the Board has directed that the management team take up the

challenge to continue to deliver a strong and sustainable revenue stream over and above the

special levy that allows opportunity for Surfers Paradise Alliance to invest further in

quality and sustainable event activation.

The Surfers Paradise Alliance is committed to delivering a world-class tourism

entertainment precinct renowned for its entertainment offering and a benchmark for

best-practice management and governance.


46 Adopted Report

25

4.0 Attachment 1 - Corporate Governance and Financial Management Report for half year ending 31st December 2017

TRACKS-#25580874-v4-CONTROLLED_EN


47 Adopted Report

752nd Council Meeting 13 March 2018 48 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 3 OFFICE OF THE CHIEF EXECUTIVE OFFICER BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8) Refer attachment: Bi-annual Performance Report (Attachment 1) 1 BASIS FOR CONFIDENTIALITY Not applicable 2 EXECUTIVE SUMMARY Not applicable 3 PURPOSE OF REPORT The purpose of this report is to present the Bi-annual Performance Report for Broadbeach Alliance Limited (BAL) for the six month period ended 31 December 2017. 4 PREVIOUS RESOLUTIONS Governance Administration & Finance Committee 6 December 2017 (minute GA17.1206.003): That Council notes Broadbeach Alliance’s bi-annual performance report for the half-year ended 30 June 2017 and its Annual Financial Report for the year ended 30 June 2017. 5 DISCUSSION 5.1 Background The City contracts with Broadbeach Alliance Limited (BAL) to manage the provision of marketing, promotional and security patrol activities in the Broadbeach precinct. Council is the sole member of BAL. Consequently, BAL is classified as a “public sector controlled entity” under the Auditor-General Act 2009. The City’s current Service Agreement concludes on 30 June 2019. The Agreement requires BAL to submit performance reports to Council for review on a biannual basis in March and November. BAL’s performance was last reviewed by the Governance Administration & Finance Committee at its meeting 6 December 2017. 5.2 Review of Performance BAL’s Performance Report submission was received on 15 January (see Attachment 1). The report comprises three components, these being: Corporate Governance Alignment with Destination Tourism Management Plan (DTMP) / KPI’s Financial Management Corporate Governance All governance requirements have been recorded in the performance report. It is considered that BAL is satisfactorily meeting its obligations under the service agreement. Board Appointments made by Member’s Representative No appointments were made during the reporting period.

752nd Council Meeting 13 March 2018 49 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 3 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8) Extension of Service Agreement The City’s current Service Agreement with BAL concludes on 30 June 2019. It is essential that the entity have a period of tenure no less than 12 months - to ensure it is able to operate in a legally compliant manner when it comes to commercial dealings (eg, entering into contracts). It is also appropriate that suitable tenure exists for appointment of directors for four-year terms, as provided for in BAL’s constitution. It is therefore recommended that Council extends its Agreement with BAL by three years to 30 June 2022. Alignment with Destination Tourism Management Plan (DTMP) / KPI’s DTMP Partnership Agreement One of the key elements of the DTMP was to provide for the establishment of a Gold Coast Tourism Partnership Agreement between Gold Coast Tourism, the City and Precinct Entities. The Partnership Agreement, which was recently signed by all parties, provides for:

• a long-term commitment to the partnership • delineation of clear roles and responsibilities • shared destination performance outcomes • comprehensive two-way reporting and accountability

City-wide Event Coordination The CEO’s of the three precinct entities (and the Arts Centre) meet with the Executive Officer City Events on a regular basis to collaborate and coordinate with regards to the nature and timing of events held across the city. The last meeting was held on 13 February 2018. The next meeting is scheduled for May 2018. Operational KPI’s BAL’s performance against agreed KPI’s is detailed in Attachment 1. The Principal Project & Investment Attraction Officer (Tourism) has reviewed BAL’s performance against the agreed KPI’s and advises as follows:

BAL’s performance against KPI’s for the six month period ending 31 Dec 2017 is consistent with the objectives of the DTMP and Broadbeach Alliance. The report outlines the achievements against the 15 KPI’s as specified in the Service Agreement. A number of KPI’s have been exceeded, in particular, visitor satisfaction, economic value and value in kind revenue.

BAL is performing well in regards to exceeding KPI’s of their major events with a focus in this report on the Country Music Festival. This event has been rebranded as the “Groundwater Country Music Festival” and achieved a growth in visitation of 77% on the 2016 event. Both the Groundwater Festival and Blues on Broadbeach remain the main focus of BAL to continue to grow overnight visitation and economic impact to the region. It should be noted that the Opera in the Park event and the annual Carols event did not proceed, however despite this, BAL are exceeding event related KPI’s via there event portfolio.

752nd Council Meeting 13 March 2018 50 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 3 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8)

Work is continuing on KPI 10 – to deliver a city wide event in collaboration with all of the entities. A meeting is scheduled for 13 February 2018 to discuss the possibility of significantly scaling an existing event over time that would attract new visitation to the city. Both the Tourism and Events teams within Economic Development are working with the entities to provide support and a clear direction in regards to this project, which could see the expansion of the Gold Coast Film Festival to achieve this significant KPI. Further information will be provided on the progress of this in the next bi-annual report.

Financial Management BAL’s financial performance is detailed in Attachment 1. The Corporate Financial Accountant has been requested to review the information provided by BAL. This officer’s assessment of the information will be provided at the meeting (if required). 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Gold Coast 2020 2.0 Prosperity built on a strong diverse economy What we want to see by 2020 2.5 We are a globally recognised tourism destination - our city attracts visitors from all over the world Key strategy: Implement the Economic Development Strategy to build and

create a sustainable local, national and international tourism market for the city.

Key programs of work: Develop and implement a citywide Destination Management

Plan. Work with Gold Coast Tourism to promote the city as a world-class tourism destination through a range of marketing programs and activities.

Operational Plan There are no specific strategies relating to BAL contained in the 2017-18 Operational Plan. 7 GOLD COAST 2018 COMMONWEALTH GAME IMPACT Not applicable 8 FUNDING AND RESOURCING REQUIREMENTS

Not applicable 9 RISK MANAGEMENT The funding of BAL does not relate directly to any of the Corporate Risks. However it does relate to Directorate Risk No. CO000410 below, which is currently rated as Low 48 under Council’s Risk Management methodology.

752nd Council Meeting 13 March 2018 51 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 3 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8)

Adverse impact on Council through inappropriate/illegal actions of any of Council's controlled entities for which the OCEO is responsible (ie, Gold Coast Arts Centre Pty Ltd, Surfers Paradise Alliance Ltd, Broadbeach Alliance Ltd and Connecting Southern Gold Coast Ltd)

The bi-annual performance review process and the appointment of a Councillor to each of the boards are mitigations for this risk. 10 STATUTORY MATTERS Corporations Act 2001

BAL is registered with the Australian Securities & Investments Commission as a company limited by guarantee. Its operations are governed by the Corporations Act 2001. Auditor-General Act 2009

Under the Auditor-General Act 2009, BAL is classified as a “public sector controlled entity”. Section 5 of the Act states:

5 What is a controlled entity (1) An entity is a controlled entity if it is subject to the control of 1 or more of the following (the controlling entity)—

(a) a department; (b) a local government; (c) a statutory body; (d) a GOC; (e) another entity subject to the control of 1 or more of the entities mentioned in paragraphs (a) to (d).

(2) In this section—control means the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable the other entity to operate with it in pursuing the objectives of the controlling entity.

With respect to the City’s “control” of BAL, the City:

is the sole member of the Company and therefore has control over its constitution as well as the appointment of the directors and chairperson

has control over the Company’s specific role and responsibilities via the service agreement

provides annual funding in accordance with the service agreement regularly reviews the Company’s performance against the service agreement including

the strategic direction of the Company. The Act requires that Queensland Audit Office be appointed as the Company’s Auditor. Compensation & Rehabilitation Act 2003 BAL is also classified as a “Related Body Corporate” of the City under this Act and the Corporations Act 2001 and, as such, the City must provide workers’ compensation coverage to BAL. As Council self-insures for workers compensation, like Council, BAL must maintain a work health and safety management system that is compliant with the National Self-insurer OHS Management System Audit Tool (NAT 3- 2014) – and forms part of the external audit of Council’s OHS Management System by the regulator.

752nd Council Meeting 13 March 2018 52 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 3 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8) 11 COUNCIL POLICIES

Not applicable 12 DELEGATIONS The Council has delegated authority to the Chief Executive Officer to determine all matters within the responsibility of Council as the sole member of the Company – with the exception of the determination of annual funding and review of the entity’s performance. 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted


Is the Stakeholder Satisfied With Content of Report and Recommendations

Joanne Cullen, Corporate Finance Accountant

OCOO (Corp Finance)

N/A

Clare Leys, Principal Project & Investment Attraction Officer (Tourism)

EP&E Yes

14 STAKEHOLDER IMPACTS The BAL Board and Council, being the sole Member of the Company, are the key stakeholders in terms of BAL’s performance in the achievement of the objectives detailed in BAL’s Constitution, the obligations detailed in its service agreement with Council and the agreed KPI’s. The BAL Board is broadly representative of the stakeholders in the Broadbeach precinct. BAL works cooperatively and in in consultation with Gold Coast Tourism and the other precinct entities in accordance with the new Destination Tourism Management Plan Partnership Agreement. 15 TIMING The next bi-annual performance review is due in November 2018 (for the six month period ending 30 June 2018). 16 CONCLUSION

It is considered that BAL is satisfactorily performing its roles and responsibilities under the Service Agreement and meeting the objects for which it was established. It is essential that the entity have a period of tenure no less than 12 months - to ensure it is able to operate in a legally compliant manner when it comes to commercial dealings (eg, entering into contracts) and to facilitate the appointment of directors for four-year terms, as provided for in BAL’s constitution. As the current Service Agreement concludes on 30 June 2019 it is recommended that Council extends the Agreement to 30 June 2022.

752nd Council Meeting 13 March 2018 53 Events, Tourism & Governance Committee Meeting 8 March 2018 Adopted Report ITEM 3 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER BROADBEACH ALLIANCE LIMITED – BI-ANNUAL PERFORMANCE REVIEW LG426/1100/-(P8) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council notes Broadbeach Alliance’s bi-annual performance report for the half-

year ended 31 December 2017. 2 That Council extends its current Service Agreement with Broadbeach Alliance Ltd to

30 June 2022. Author: Authorised by:

Stephen Bowden Dale Dickson Coordinator Controlled Entities & Community Grants Chief Executive Officer 26 February 2018 Document # 68149268 COMMITTEE RECOMMENDATION ETG18.0308.003 moved Cr Gates seconded Cr PC Young 1 That Council notes Broadbeach Alliance’s bi-annual performance report for the

half-year ended 31 December 2017. 2 That the Service Agreement with Broadbeach Alliance Ltd be reviewed at the

Events Tourism and Governance Committee Meeting to be held on 8 November 2018.

CARRIED UNANIMOUSLY

CONTROLLED ENTITY BI-ANNUAL PERFORMANCE REPORT

For the Half Year Ending 31st December 2017 CONTENTS SECTION Corporate Governance 1 Activities and KPI’s 2 Financial Management 3.1 Statement Comp Income 3.2 Statement Financial Position 3.3 Cash Flow 3.4 Variances 3.5 Ratios 3.6


54 Adopted Report

38858

Typewritten Text

Attachment 1

SECTION 1 – CORPORATE GOVERNANCE

1.1 VISION

Delivering a world class experience in a world class destination. 1.2 MISSION We will deliver to our stakeholders and the industry by promoting and shaping Broadbeach as not just a destination but also an experience - promoting sustainable economic growth throughout the precinct. 1.3 MEMBERSHIP OF BOARD MEMBERSHIP OF BOARD from 1st July 2016 Darryl Kelly Chairman Kelly Developments 1st July 2016 Mark Witheriff Deputy Chair Knight Frank 1st July 2016 Brad Dickfos Audit Chair Dickfos Dunn 1st July 2016 Steven Ihm Director AMP – Pacific Fair 4th July 2017 Peter Graham Director Montrose Group 5th Nov 2014 Geoffrey Hogg Director The Star 1st April 2015 Cr Paul Taylor Director Councillor Division 10 13th Aug 2012 1.4 BOARD COMPETENCY

Number of Board meetings held during the reporting period 4

The Board has a process in place at meetings to manage conflicts of interest including those relating to the CEO and/or staff

Yes

The Board has a process in place to monitor compliance with the Director Code of Conduct

Yes

The attendance of directors at Board meetings is monitored and no directors have breached the meeting attendance requirements of the Constitution

Yes

The Board last reviewed the CEO's performance on Sept 2017

The Board is due to conduct the next review of the CEO's performance on Aug 2018

The Company has a current strategic plan Yes

This plan has been endorsed by Council Yes

If not, the Board is arranging for one to be developed by

The Company has an annual business plan Yes

If not, the Board is arranging for such plan to be developed and endorsed by

The Board has established an Audit/Risk Committee Yes

This Committee last met on Nov 2017

This Committee is due to next meet on Feb 2018

The Board has ensured that documented internal controls are in place Yes

The Board has ensured that a policy manual has been compiled that contains policies relating to risk management, workplace health & safety, people management and procurement (as a minimum)

Yes


55 Adopted Report

The Board is due to review these policies on Mar 2018

The Board has ensured that a risk register has been compiled (comprising both business and workplace health & safety risks)

Yes

The Board last reviewed this register on Nov 2017

The next review of this register is scheduled for May 2018

The Board has ensured an employee performance management system is in place Yes

The Board has implemented an appropriate board performance review process Yes

The next review is due to take place on Mar 2018

The Board acknowledges that it needs to periodically review the effectiveness of the Company's corporate governance framework. The next review is due to be conducted on

Mar 2018

The Board has provided Council with a copy of any observation or similar reports issued to the Company by the Qld Audit Office (or its nominated contractor) – and forwarding to Council's Audit Committee for consideration

Yes

1.5 STAFF DETAILS Number of FTE positions employed by the entity as at end of reporting period 7 Amount of annual budget amount allocated to these positions 911,212 Percentage of annual budget allocated to these positions 26.45%


56 Adopted Report

SECTION 2 – ACTIVITY SUMMARIES AND KPI’s

2.1 SUMMARY OF KEY PROJECTS & ACTIVITIES UNDERTAKEN DURING REVIEW PERIOD

During the reporting period, Broadbeach Alliance delivered the fifth Broadbeach Country Music Festival.

The festival was rebranded and launched in Australia, the USA and China.

During this period a great deal of our time is spent pre-planning our 2018 festival season, taking lessons

learnt from the 2017 festivals significant work has been placed on Risk Mitigation and public safety.

Our Opera in the Park was cancelled as it conflicted with Opera on the Beach. This was sadly missed

with many locals contacting us requesting when we would next stage it. As a business we will establish

if indeed staging an Opera in Park meets our KPI requirements as set by council, which is essentially to

drive room nights. We see Opera in the Park as a local event, it is not marketed outside the region, and

unless this changes with additional funds for marketing into the drive market, it probably does not meet

our KPI.

Striving for transparency

To reiterate, the establishment of all the data in charts and quoted unless otherwise stated has been

compiled by third parties. Broadbeach Alliance have not been involved, except the collection of

postcodes and email addresses during the festival. These are then provided to Strategic Facts who send

a Survey Monkey to garner all the information they require to establish the figures. The process is

completely transparent and one which our board, TEQ and council can have complete faith in.

Sponsorship confirmed

BAL strives towards growing each of our events and festivals on a year by year basis. Securing corporate

sponsorship remains a high priority to achieve this goal. In the last six months we have placed

considerable emphasis on securing three to four-year agreements for event stability and longevity. The

below table shows our confirmed cash sponsorship status to 2020, totalling over $1.1m. Further

sponsorship is also under negotiation.

Sponsorship for 2016 – 2020

Sponsor Event Timing Status

TEQ Blues 2016-2018 Confirmed

TEQ CMF 2017-2019 Confirmed

City of Gold Coast Blues CMF

2017 - 2020 2017 - 2020

Confirmed Confirmed

Frizelles Blues 2016 - 2018 Confirmed

Griffith University Blues 2016 - 2018 Confirmed

The Star Blues & CMF 2016 - 2018 2018 - 2020

Confirmed – launch Confirmed – Headline Act

Pacific Fair Carols 2018 Confirmed


57 Adopted Report

So important is sponsorship to Broadbeach Alliance, we have appointed a Partnerships Manager to

garner new sponsors, ensure we meet our existing sponsors expectations as well as supersizing those

existing sponsors investments.

The key of our ability to continue to deliver the successful events and festivals is the level of in-kind and

unpaid media value we receive. For the period of January – December , the below are the results

achieved for all our activations, and have been partially audited by the QAO as part of the audit process:

In Kind Sponsorship $1.061m

Unpaid media value $14.8m

Broadbeach Country Music Festival 2017

The Broadbeach Country Music Festival was moved from June to the 28th – 30th July 2017. As part of this

process the board decided to increase the spending for the festival to give it a real boost in our

committed objective of having this festival the size of Blues in a few short years. This resulted in us

being able to implement several new initiatives which will show a clear demonstration that with

additional funds the resulting impact will be significant.

For the first time, we had international act - AMERICA headlining the festival. We increased our stages

from two to three main stages with the implementation of the Kurrawa Park stage, which was housed in

a Big Top proved to be extremely popular. For the first time we had a licensed area at the festival which

was situated adjacent to the Kurrawa Park Stage and operated by one of our Broadbeach stakeholders.


58 Adopted Report

To state that the 2017 festival was a success is a massive understatement. We saw across the board a

77% increase, from visitation - to room nights - to economic impact. Together with a media value of in-

excess of 10million, which demonstrates how engaged the country fans are with our festival.


59 Adopted Report

After five short years this festival is certainly a major player in the Country Music scene in Australia.

What is interesting is the length of stay and the ratio of local vs others especially if you compare this

back to Blues which has 32% of locals, is over four nights and generates 3.8 nights. Country has 54% of

locals, is over three nights and generates 3.6 nights which demonstrates, people stay longer for this

festival to enjoy our city, so we need to focus our efforts in generating more intra and interstate

markets which in turn will increase the room nights.

After five years of strong growth, and now the third most popular country music festival in Australia, the

team at BAL, together with the board and some external stakeholders including GCT, came together to

consider a re-brand of the festival which would sustain its growth and give our city a product which will

be recognised nationally and internationally and capture the essence of our country. In the forefront of

our thinking was that the destination Broadbeach was largely unknown, however the Gold Coast is a

strongly recognised brand, so it was irresponsible not to leverage of the millions which had been spent

on our cities brand.


60 Adopted Report

WHY GROUNDWATER?

Groundwater is the focus point of the land where the water flows to bring new life.

From both a spiritual and scientific perspective, there are few natural resources as important, or

invisible, as groundwater.

History shows that the Nyungan aboriginal tribe based much of their culture, identity and spirituality on

their close association with the Groundwater, our Australian Farmers who are reliant on Groundwater

for their survival and the innate culture of Australian people who use the lakes, rivers, oceans, springs

and streams as their central point to camp, play, have barbeques and simply have fun; Groundwater is

the common denominator in giving life and the magnet of brining groups of people together.

“Water, culture and land. That’s our country. You can’t divide them; doesn’t matter which language you speak’”

- Senior Karajarri Elder, Yu, 2000.

Country music at its heart is about life. About the stories that make up life; the good, the bad, the ugly.

It’s about passion and realism. It shares an authenticity that is hard to fabricate but also an energy, an

atmosphere and a hope.

We are proud of our new brand. It has been launched across Australia, New Zealand, America and China

to great recognition. We are especially proud of the response from our indigenous and regional

Australian communities where the response has been overwhelming as they understand the importance

of Groundwater to their heritage and our countries survival.


61 Adopted Report

Broadbeach Opera in the Park

Due to the Opera on the Beach – Aida, it was decided not to compete with this major city event and our

Opera for 2017 has been deferred until the October long weekend next year. As mentioned earlier this

event is under review to establish if it meets our KPI’s and if it would be more suited at say the Arts

Centre.

Broadbeach Christmas Carols

Sadly, our Carols was cancelled due to a major weather event. Once we had lightening cracking above

the stage it was time to cancel. This was disappointing as there were 140 young Gold Coasters who had

been in rehearsals for months.


62 Adopted Report

2.2 SUMMARY OF KEY PROJECTS & ACTIVITIES PLANNED FOR NEXT REVIEW PERIOD

Due to the sheer size and complexity of Blues on Broadbeach and the newly emerging Groundwater

Country Music Festival we find that what in the past is a reasonably quiet time, post festivals we are all

extremely busy with organising next year’s events.

We announced our first Blues line up during November with a promotional video and it received strong

digital traction. In the first month the number of people the video reached was 89,000, with a reach of

in-excess of 154,000 between the 1st – 17th December 2017. With most comments being extremely

positive. As a point of reference, the launch video views for the 2017 festival for the whole year was

49,000. Based on this we expect another strong crowd for our 2018 festival.


63 Adopted Report

We understand the responsibility we have not only for Broadbeach but our city to ensure that there is

no ‘hangover’ post Commonwealth Games and at Broadbeach Alliance we are ensuring we are doing

everything we can to deliver a strong array of festivals commencing two weeks post games.

In Summary

Did we meet our KPI’s as a result of the outcomes of our hard work and dedication to Broadbeach and

our city – absolutely! Highlighted below are the actual results of meeting our KPI’s.

Recognition must be given to our Chairman Darryl Kelly and the board for their guidance and utter

commitment to the team and the outcomes we strive to deliver. Our team of 6 FTE’s and two casual

team members who all give 110% to continue to deliver significant outcomes for Broadbeach and our

city. And of course, none of this would have been possible without the commitment of council officers

to all that we do and the ongoing belief and support of the whole council, a sincere thank you.


64 Adopted Report

2.3 KEY PERFORMANCE INDICATORS FOR THE PERIOD 1 JULY 2017 – 31 DECEMBER 2017

1. Deliver a strong events-based marketing strategy which results in an economic value add to the

Broadbeach Precinct equivalent to a minimum of five times the BAL annual gross budget.

Economic Impact

Month Event Attendance $ Impact Qld

Jul 17 Broadbeach Country Music Festival 54,020* $4.8 million

Dec 17 Broadbeach Carols Event Rained Out

Total 54,020 $4.8 million

*attendance and impact established from qualified and professional external firm appointed by TEQ

2017/2018 Budget $3.4m Required Economic Value Add $17m

BAL is on track to exceed the required economic value add with Festivals and Events remaining for the

second half of the year.

2. Visitor survey results indicates >90% positive satisfaction rating

Result: >97.5% satisfaction achieved

3. Media reports on the precinct reflect a positive view of the precinct

There was significant positive news in both traditional media and online for Broadbeach commenting on

Blues on Broadbeach, Broadbeach Country Music Festival, Gold Coast Superhero Weekend with a

combined quantified media value of > $14 million and various stories regarding development within the

precinct.

4. Alignment of Broadbeach Precinct marketing activities and events and activations

All activation in the precinct aligns with our KPI’s as outlined in the DTMP and the objectives of

Broadbeach Alliance.

5. Encourage Broadbeach Precinct businesses to engage with the Embracing 2018 Quality Service

Program

We actively encourage our precinct business to engage with Embracing 2018 quality service, some 60%

of our stakeholders have training procedures in place.

6. Increase the foot traffic flows through the Broadbeach Precinct by a minimum of 15% above non-

event seasonal averages

Data not collected during period. Data is only collected during our festivals

7. Increase in visitation during off-peak times by 15% as a result of events and activations


65 Adopted Report

Blues on Broadbeach experienced an increase of more than 30% over off-peak times. With the

Broadbeach CMF increasing visitation by 77% on last year.

8. Number of campaigns delivered in conjunction with GCT to promote events and activations through

domestic and international networks

As our objective is to drive overnight visitation to our activation, we work closely with GCT on the

Superhero Weekend, Blues on Broadbeach and the Broadbeach Country Music Festival. In particular

with Blues and Country we collaborated with GCT on a significant campaign. The Gold Coast Superhero

was digitally promoted by Gold Coast Tourism

9. A minimum of 50% of events delivered by BAL are attractive to visitors from outside the city with

GCT networks leveraged to market to visitors

Blues on Broadbeach, the Gold Coast Superhero Weekend and the Broadbeach Country Music Festival

are developed specifically to leverage to visitors from outside the city, while Opera and Christmas

remain for locals.

10. Deliver a minimum of one whole-of-city event or activation in collaboration with Council's precinct

entities that would be attractive to visitors from outside the city

The Gold Coast Superhero Weekend collaborates with the Gold Coast Film Festival to draw visitors from

outside the city. We are also moving this festival across the city through the library network with great

success and also the Night Quarter at Helensvale.

11. Collaborate with Council's precinct entities to grow existing events and activations limited by

precinct boundaries

Quarterly meetings held with Alliances and cross-team support and collaboration throughout period as

well as regular LTO meetings with GCT.

12. Generate a cash revenue stream for BAL (via sponsorship and stakeholder contributions and other

revenue sources) to the equivalent of 10% of the special area levy

The table below shows the achievements for sponsorship and stakeholder contributions.

13. Deliver a value in-kind revenue stream to events to the equivalent of 2.5% of the special area levy

The table below shows the achievements for in-kind revenue streams.

Note Media Value $14.8 million

Annual KPI Jul 17 – Jun 18 Interim Result Jul 17 – Dec 17

KPI ($) KPI (%) Achievement ($) Achievement (%)

Sponsorship 267,930 10 221,781 83%

In-kind 66,983 2.5 312,475 466%


66 Adopted Report

14. Visitor survey results indicates >90% positive satisfaction rating of businesses, accommodation

providers and event attendees.

Independent surveys taken over the festival periods indicate the below satisfaction rating:

Visitor Satisfaction >97% Stakeholder Satisfaction >97.5%

15. Zero breaches of BAL policy and procedures and an unqualified annual external audit.

There were zero breaches of BAL policy and procedures during the period and an unqualified Audit

Report for June 2017 financial accounts was issued.


67 Adopted Report

SECTION 3 - FINANCIAL MANAGEMENT

3.1 OVERVIEW FOR THE HALF YEAR ENDED DECEMBER 2017

The Board of Broadbeach Alliance Limited has set a strong direction, and maintains a clear oversight and

support of the Management and team resulting in outstanding outcomes and an organisation which is

sustainable into the future.

Broadbeach Alliance remains in a strong financial position both for the 2017/2018 financial year, and

headed into the future. On an annual basis, the Board reviews the businesses rigorous internal controls

and policies and procedures to ensure continuous improvement. On a monthly basis, the organisations

financials are presented to the Audit Committee prior to each Board Meeting. The Audit Committee

reviews the monthly financial report, which is prepared by Management, ensuring that the Company is

tracking in accordance with the approved budget, meeting its financial and statutory obligations and

reporting any changes or amendments from the budget. The report provides the committee a true

reflection of the state of the business prior to presenting to the Board. An Audit report is then provided

to the Board at every Board meeting, and approved subject to no issues being identified.

As Chair of Broadbeach Alliance, I am a member of the Audit Committee.

Broadbeach Alliance continues to manage and operate the business with strong oversight on financials

and regular due diligence in meeting key financial and governance objectives.

Darryl Kelly

Chair

Broadbeach Alliance Limited


68 Adopted Report

3.2 STATEMENT OF COMPREHENSIVE INCOME

For the Year Ending 31 December 2017

Yr 2

Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Var

Budget 2018-

2019

REVENUE By major revenue types or activity* eg:City of Gold Coast Funding Special Levy 719,076 719,076 719,076 719,076 1,438,152 1,438,152 - EVAC 29,695 - - - 29,695 - 29,695State Government Grants - 60,000 145,000 100,000 145,000 160,000 (15,000)Commerical Sponsorship 3,600 5,000 - 15,000 3,600 20,000 (16,400)Events 72,681 40,000 500 - 73,181 40,000 33,181Operating Receipts 4,921 3,721 9,979 11,576 14,900 15,297 (397)Other - - -

TOTAL REVENUE 829,974 827,797 874,555 845,652 - - - - 1,704,528 1,673,449 31,079 -

EXPENSESBy major expense types or activity* eg:Events - - - Entertainment 353,363 340,220 37,025 39,400 390,389 379,620 10,769 Marketing 139,233 202,691 73,460 47,271 212,693 249,962 (37,269) Operations 301,614 274,305 120,161 126,590 421,775 400,895 20,880Administration Expenses 19,114 27,997 23,961 34,444 43,076 62,441 (19,365)Office Rent paid to COGC 9,225 9,225 9,225 9,225 18,450 18,450 -Salary and Wages 226,719 244,098 197,212 215,825 423,932 459,923 (35,991)

TOTAL EXPENSES 1,049,269 1,098,536 461,045 472,755 - - - - 1,510,314 1,571,291 (60,977) -

NET PROFIT/(LOSS) BEFORE INCOME TAX (219,296) (270,739) 413,509 372,897 - - - - 194,214 102,158 92,056 -DepreciationFringe Benefits Tax Expense - - - - - - - - -

NET PROFIT/(LOSS) AFTER INCOME TAX (219,296) (270,739) 413,509 372,897 - - - - 194,214 102,158 92,056 -


Finance Governance Report

As At 31 Dec 2017


YTDQTR 1 QTR2 QTR3 QTR4


69 Adopted Report

3.3 STATEMENT OF FINANCIAL POSITION


Current reporting period Same period last year

YTD YTD

Dec 17 Dec 16

$ $

CURRENT ASSETS

Cash and cash equivalents 822,938 1,399,073

Receivables 17,050 9,678

Inventories 19,334 10,417

Prepayments 123,395 163,210

982,717 1,582,378

NON-CURRENT ASSETS

Property, plant and equipment 231,168 293,050

231,168 293,050

TOTAL ASSETS 1,213,885 1,875,428

CURRENT LIABILITIES

Payables 38,241 81,530

Employee benefits Prov for A/L LSL 82,038 49,356

Superannuation 15,473 14,344

Other current liabilities Tax & PAYG 56,076 97,984

Accrued Liabilities 23,846 34,583

Unearned Revenue 15,000

230,674 277,798

NON-CURRENT LIABILITIES

Employee benefits Prov for LSL - 30,482

Loans - -

- 30,482

TOTAL LIABILITIES 230,674 308,280

NET ASSETS 983,211 1,567,148

EQUITY

Contributed equity 344,327 344,327

Reserves

Retained earning - opening 444,671 (30,784)

Retained earnings - current year 194,213 1,253,604

TOTAL EQUITY 983,211 1,567,148

* categories of reported balance sheet items will vary from organisation to organisation

depending on nature of activities and amounts involved


As At 31 Dec 2017


70 Adopted Report

3.4 CASH FLOW STATEMENT AND FORECAST


Year 1 Year 2

Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Var Budget Budget

OPENING CASH 481,582 543,265 480,427 287,584 822,939 691,173 822,939 691,173 481,582 543,265 (61,683)

ADD OPERATING RECEIPTS

Sales receipts 108,834 106,375 148,895 122,875 257,729 229,250 28,479

Grants received - GCCC 719,076 719,076 719,076 719,076 1,438,152 1,438,152 -

Interest received 3,358 2,844 5,321 4,926 8,679 7,770 909Net Taxes - GST Collected 100,604 82,545 86,797 83,858 187,401 166,403 20,998GST Receivable - ATO - - - - - - -

ADD CAPITAL RECEIPTS

Proceeds on disposals

Other capital receipts

TOTAL RECEIPTS 931,872 910,840 960,089 930,735 - - - - 1,891,961 1,841,575 50,386

LESS OPERATING PAYMENTS

Payments for supplies and services 646,257 788,758 354,360 256,931 1,000,617 1,045,689 (45,072)

Payments to employees 222,074 259,087 176,145 199,943 398,219 459,030 (60,811)

Net Taxes - GST Payable 61,133 78,676 82,195 29,272 143,328 107,948 35,380

LESS CAPITAL PAYMENTS

Plant and equipment purchases 3,563 40,000 4,877 41,000 8,440 - 8,440

TOTAL PAYMENTS 933,027 1,166,521 617,577 527,146 - - - - 1,550,604 1,693,667 (62,063)

CLOSING CASH (must equal cash per

balance sheet) 480,427 287,584 822,939 691,173 822,939 691,173 822,939 691,173 822,939 691,173 131,766

* categories of reported cash flow items will vary from organisation to organisation depending on nature of activities and amounts involved


As At 31 Dec 2017

FORECAST

YTDQTR 1 QTR2 QTR3 QTR4



71 Adopted Report

3.5 MAJOR VARIANCES ANALYSIS

CategoryYTD Actual

$

YTD

Budget

$

Variance

$

Variance

%Analysis (provide commentary when variance greater than 10% or $10,000)

REVENUE

City of Gold Coast Funding

Special Levy 1,438,152 1,438,152 - 0%

EVAC 29,695 - 29,695 #DIV/0! Timing difference: funding for Blues on Broadbeach 2017 was due to be received in prior Financial year

State Government Grants 145,000 160,000 (15,000) -9% Timing difference: $15k TEQ funding was received in prior Financial year.

Commerical Sponsorship 3,600 20,000 (16,400) 0% Timing difference: $15k funding invoiced but not received in Dec 2017, will be received in Jan 2018

Events 88,081 55,297 32,784 59% Additional event sponsorship secured $24k, and increased commissions on event related activities received $7k

TOTAL REVENUE 1,704,528 1,673,449 31,079 2%

EXPENSES

Events

Entertainment 390,389 379,620 (10,769) -3% Additional event sponorship revenue secured allowed for increased expenditure in Country Festival

Marketing 212,693 249,962 37,269 15%

Timing Difference - accounting regulations meant $66k of marketing expenses relating to 2017 Country Festival were actually

recorded in prior Financial Year.

($30k) spend on engaging external PR company - Board Approved

Operations 421,775 400,895 (20,880) -5%Timing difference: $15k of savings from last financial year allocated to Country Festival

$5k additional spend as a result of additional commissions received.

Administration Expenses 43,076 62,441 19,365 31% Timing difference - contingengcy funds not yet used.

Office Rent paid to COGC 18,450 18,450 - 0% Additional sponsorship and stakeholder revenue achieved distributed to enhance Blues on Broadbeach festival

TOTAL EXPENSES 1,086,383 1,111,368 24,985 2%

Fringe Benefits Tax - -

NET PROFIT/(LOSS) AFTER INCOME TAX 618,145 562,081 6,094 1%



As At 31 Dec 2017


72 Adopted Report

3.6 RATIO ANALYSIS


Ratio Notes Current

reporting

date ratio

Comments

Current ratio

(current assets/current liabilities)

A measure of short-term liquidity, the current ratio

measures an organisation's ability to repay its short-

term debt (due in the coming 12 months) by using

short-term assets. Ideal current ratio is at least 2:1.

4.26

Debt ratio

(total liabilities/total assets)

Measures percentage of assets provided by creditors

and extent of using gearing. The lower the ratio, the

greater the asset protection to creditors.

0.19

Profit margin

(operating profit/net sales)

Measures net profitability of an organisation

0.1139

Under a Not-For-Profit

entity this ratio is not

relevant


As At 31 Dec 2017


73 Adopted Report


ITEM 4 OFFICE OF THE CHIEF EXECUTIVE OFFICER AUDIT COMMITTEE MEETING – 12 FEBRUARY 2018 LG115/1190/02/18/CF(P2) 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To present to Council the Audit Committee’s recommendations arising from its general meeting held on 12 February 2018. 4 PREVIOUS RESOLUTIONS ETG18.0125.002 (in part)

“That Council adopt the recommendations of the Audit Committee determined at its meeting held on 27 November 2017 General Meeting as follows:”

5 DISCUSSION The Audit Committee (AC) met on 12 February 2018 to review and discuss a range of reports in line with the Audit Committee Charter.

The following reports/updates were provided by executive officers for the review and consideration of the committee members:

Quarterly update on major organisational activities and challenges by the Chief Executive Officer, covering: Commonwealth Games preparations, organisational structure changes, Council Committee structure changes, Director recruitment, cultural precinct, digital city, insurance and cruise ship terminal;

State of the Organisation Report 2017 and presentation by the Manager Office of the CEO;

Cyber security related initiatives and progress in addressing related audit actions by the Manager Business Innovation & Technology Services and the Information Technology Security Advisor;

Quarterly Chief Finance Officer financial management update including 2017-18 shell financial statements, proposed timetables for 2017-18 interim revaluations, proposed schedule for revaluation process updates, infrastructure revaluation peer review and improvements;

Landfill remediation action plan and progress update by Manager Commercial Performance Water and Waste;

Update on legal and insurance related matters by the City Solicitor; Corporate compliance program update and presentation by the Corporate

Compliance Project Officer; Quarterly Internal Audit report by the Manager Corporate Assurance covering

o internal audit reports, o relevant internal and external assurance activities.


ITEM 4 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER AUDIT COMMITTEE MEETING – 12 FEBRUARY 2018 LG115/1190/02/18/CF(P2)

The meeting was also attended by representatives from the Queensland Audit Office (QAO) who discussed the following matters with the committee:

Audit status including 2017-18 planning and interim visits Final 2017-18 external audit plan.

The Audit Committee notes with deep appreciation, the extensive and outstanding contribution made by Len Scanlan to the significant and ongoing improvement in the quality of the Council’s financial reporting, financial management and internal controls during the period of his membership of the Committee. The Audit Committee Register of Member Declarations and Other Position Disclosures was also reviewed and updated where necessary. The committee's specific recommendations resulting from their consideration of the above matters are included in the recommendations section of this report for resolution by Council. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN The Audit Committee supports achievement of the following Corporate Plan 2020 outcomes:

We Manage the City Responsibly

Our stewardship of the city provides value for money for ratepayers.

Program: Manage the short and long-term financial sustainability of the city through prudent financial management and ensuring value for money.

Program: Managing risk exposure faced by the City of Gold Coast, including ensuring a safe working environment and that “Work Health and Safety is everyone’s business”.

7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not Applicable.

8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Funding for the operation of Council's Audit Committee is approved annually within

Responsibility Centre CE8120 – Corporate Assurance, Budget Centre CE8120O008 - Audit Committee.

Costs for Capital Works and Service Proposals

Not Applicable.

In accordance with the budget review guidelines the following circumstances require referral to the Special Budget Committee

Not Applicable.

People and Culture

Not Applicable.


ITEM 4 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER AUDIT COMMITTEE MEETING – 12 FEBRUARY 2018 LG115/1190/02/18/CF(P2) 9 RISK MANAGEMENT Council's audit committee promotes good corporate governance through the provision of independent assurance, oversight and advice to Council and the Chief Executive Officer on matters relating to risk management, internal control, governance, compliance, audit and financial reporting. 10 STATUTORY MATTERS Local Government Act 2009 Local Government Regulation 2012 11 COUNCIL POLICIES Audit Committee Policy and Charter Internal Audit Policy and Charter 12 DELEGATIONS Not applicable 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted


Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Bill Turner Audit Committee Chair

External Independent Member

Yes – recommendations only

Dale Dickson CEO Yes 14 STAKEHOLDER IMPACTS Directors and Council officers may need to respond to information requests from the Audit Committee as a result of this meeting. 15 TIMING This report is being provided to the next available Council meeting following the Audit Committee meeting as required by legislation. 16 CONCLUSION This written report of the deliberations and recommendations of the Audit Committee from its meeting of 12 February 2018 is provided to Council in accordance with section 211(1)(c) of the Local Government Regulation 2012 for adoption. As evidenced by the specific recommendations contained in this report, committee members have reviewed and considered a wide range of reports and engaged in robust discussions with Council management, internal auditors and external auditors, across a range of matters. The detailed recommendations of the committee are included in this report for the consideration of Council, and incorporate specific recommendations on matters where the Audit Committee members felt Council may appreciate additional comment.


ITEM 4 (CONTINUED) OFFICE OF THE CHIEF EXECUTIVE OFFICER AUDIT COMMITTEE MEETING – 12 FEBRUARY 2018 LG115/1190/02/18/CF(P2) 17 RECOMMENDATION 1 That Council adopt the recommendations of the Audit Committee determined at its

meeting held on 12 February 2018 Regular Meeting as follows:

AC18.0212.001 –Member Declarations and Other Position Disclosures

a The Audit Committee confirms the completeness and accuracy of the Register of Other Positions held by Independent External Audit Committee members.

AC18.0212.002 - Minutes of Previous Audit Committee Meeting

b The Audit Committee notes that the recommendations of its meeting held on 27 November 2017 were reported to the Events, Tourism and Governance Committee meeting on 25 January 2018 and subsequent Council Meeting on 31 January 2018.

AC18.0212.003 – Audit Committee Action Requests From Prior Meetings

c The Audit Committee notes the update on action requests arising from prior committee meetings.

AC18.0212.004 – CEO update

d The Audit Committee notes the update from the CEO, covering:

i Commonwealth Games Preparations

ii Organisational structure changes

iii Council Committee structure changes

iv Director Recruitment

v Cultural Precinct

vi Digital City

vii Insurance

viii Cruise ship terminal

AC18.0212.005 – State of the Organisation Report

e The Audit Committee notes the State of the Organisation Report 2017 and presentation by the Manager Office of the CEO.

AC18.0212.006 - Cyber Program Update and QAO Performance Audit Update

f The Audit Committee notes the update on Cyber Security related initiatives and progress in addressing related audit actions by the Manager Business Innovation & Technology Services and the Information Technology Security Advisor.

AC18.0212.007 – Financial Management Update

g The Audit Committee notes the Quarterly Financial Management update from the Manager Corporate Finance.

AC18.0212.008 – 2017-18 Shell Financial Statements

h The Audit Committee notes the 2017-18 shell financial statements as presented and will provide any comments prior to their release to the QAO.



AC18.0212.009 – Timetables for 2017-18 Interim Revaluations

i The Audit Committee notes the Proposed Timetables for 2017-18 Interim Revaluations and requested progress updates/reports be provided on an exception basis for significant issues, where key milestone dates experience slippage or are at risk of slippage due to issues arising.

AC18.0212.010 – Proposed Schedule for Revaluation Process Updates

j The Audit Committee notes the Proposed Schedule for Revaluation Process Updates and raises an action item for the Revaluation Schedule to be presented once finalised.

AC18.0212.011 - Landfill Remediation action plan and progress update

k The Audit Committee notes the status of the Landfill Remediation action plan and progress update in relation to issues raised by the Committee and QAO.

AC18.0212.012 – External Audit Update

l The Audit Committee notes the update from the Queensland Audit Office on external audit related matters incorporating:

i QAO Briefing Paper

ii Final 2017-18 External Audit Plan

iii QAO Insights Publication

AC18.0212.013 – Legal Update

m The Audit Committee notes the update from the City Solicitor in relation to legal and insurance related matters.

AC18.0212.014 – Compliance Framework Progress Update

n The Audit Committee notes the status of the Corporate Compliance Program.

AC18.0212.015 – Internal Audit Report

o The Audit Committee notes the Internal Audit Update Report presented by the Executive Coordinator Internal Audit and Manager Corporate Assurance.

p The Audit Committee resolved to continue its review of its charter during the balance of 2017/18.

AC18.0212.016 – Final Internal Audit Reports

q The Audit Committee notes the provision of Internal Audit Executive Summary Reports covering:

i Surfers Paradise Alliance Limited – Credit Card Expenditure Review

ii Working with Children and Young People (Discussion Report)

iii Internal Incident Management and Business Continuity Planning – Follow-up Report

iv Fleet Acquisitions and Disposals Report

v Excess Leave Management (Data Analysis) Report

vi Data Analytics and Continuous Controls Monitoring (Bi-annual) Report

vii Open Audit Recommendations Report – QAO Performance Audit.



AC18.0212.017 – Other Assurance Activities – Internal

r The Audit Committee notes the update on the internal / management assurance activities relating to Corporate Security, Work Health and Safety and Asset Management / Maintenance scheduled to occur during 2018.

AC18.0212.018 – Other Assurance Activities – External

s The Audit Committee notes the update on the 2017-18 External Assurance Mapping exercise, including relevant high value assurance activities conducted by external agencies since the last Audit Committee meeting.

AC18.0212.019 – Audit Committee 2018 Meeting Dates and Forward Schedule

t The Audit Committee notes the proposed Audit Committee meeting dates for the remainder of calendar year 2018 which have been scheduled to minimise organisational impacts during the GC2018 stabilisation period subject to the holding of a further Committee meeting in conjunction with the annual planning workshop (now to be held in May 2018) to allow follow up review of:

i LGP implementation;

ii interim asset valuations

u The Audit Committee notes the Audit Committee Forward Schedule of standing and specifically requested reports expected at future meetings.

AC18.0212.020 – Supplementary Information

v The Audit Committee notes the supplementary information supplied relating to the 12 February 2018 meeting.

AC18.0212.021 – General Business

w The Audit Committee notes with deep appreciation, the extensive and outstanding contribution made by Len Scanlan to the significant and ongoing improvement in the quality of the Council’s financial reporting, financial management and internal controls during the period of his membership of the Committee.

Author: Authorised by:

Grant Mather Dale Dickson Manager Corporate Assurance Chief Executive Officer 26 February 2018 #68282982


ITEM 4 OFFICE OF THE CHIEF EXECUTIVE OFFICER AUDIT COMMITTEE MEETING – 12 FEBRUARY 2018 LG115/1190/02/18/CF(P2) COMMITTEE RECOMMENDATION ETG18.0308.004 moved Cr PC Young seconded Cr McDonald 1 That Council adopt the recommendations of the Audit Committee determined at

its meeting held on 12 February 2018 Regular Meeting as follows:

AC18.0212.001 –Member Declarations and Other Position Disclosures

a The Audit Committee confirms the completeness and accuracy of the Register of Other Positions held by Independent External Audit Committee members.

AC18.0212.002 - Minutes of Previous Audit Committee Meeting

b The Audit Committee notes that the recommendations of its meeting held on 27 November 2017 were reported to the Events, Tourism and Governance Committee meeting on 25 January 2018 and subsequent Council Meeting on 31 January 2018.

AC18.0212.003 – Audit Committee Action Requests From Prior Meetings

c The Audit Committee notes the update on action requests arising from prior committee meetings.

AC18.0212.004 – CEO update

d The Audit Committee notes the update from the CEO, covering:

i Commonwealth Games Preparations

ii Organisational structure changes

iii Council Committee structure changes

iv Director Recruitment

v Cultural Precinct

vi Digital City

vii Insurance

viii Cruise ship terminal

AC18.0212.005 – State of the Organisation Report

e The Audit Committee notes the State of the Organisation Report 2017 and presentation by the Manager Office of the CEO.

AC18.0212.006 - Cyber Program Update and QAO Performance Audit Update

f The Audit Committee notes the update on Cyber Security related initiatives and progress in addressing related audit actions by the Manager Business Innovation & Technology Services and the Information Technology Security Advisor.

AC18.0212.007 – Financial Management Update

g The Audit Committee notes the Quarterly Financial Management update from the Manager Corporate Finance.

AC18.0212.008 – 2017-18 Shell Financial Statements

h The Audit Committee notes the 2017-18 shell financial statements as presented and will provide any comments prior to their release to the QAO.



AC18.0212.009 – Timetables for 2017-18 Interim Revaluations

i The Audit Committee notes the Proposed Timetables for 2017-18 Interim Revaluations and requested progress updates/reports be provided on an exception basis for significant issues, where key milestone dates experience slippage or are at risk of slippage due to issues arising.

AC18.0212.010 – Proposed Schedule for Revaluation Process Updates

j The Audit Committee notes the Proposed Schedule for Revaluation Process Updates and raises an action item for the Revaluation Schedule to be presented once finalised.

AC18.0212.011 - Landfill Remediation action plan and progress update

k The Audit Committee notes the status of the Landfill Remediation action plan and progress update in relation to issues raised by the Committee and QAO.

AC18.0212.012 – External Audit Update

l The Audit Committee notes the update from the Queensland Audit Office on external audit related matters incorporating:

i QAO Briefing Paper

ii Final 2017-18 External Audit Plan

iii QAO Insights Publication

AC18.0212.013 – Legal Update

m The Audit Committee notes the update from the City Solicitor in relation to legal and insurance related matters.

AC18.0212.014 – Compliance Framework Progress Update

n The Audit Committee notes the status of the Corporate Compliance Program.

AC18.0212.015 – Internal Audit Report

o The Audit Committee notes the Internal Audit Update Report presented by the Executive Coordinator Internal Audit and Manager Corporate Assurance.

p The Audit Committee resolved to continue its review of its charter during the balance of 2017/18.

AC18.0212.016 – Final Internal Audit Reports

q The Audit Committee notes the provision of Internal Audit Executive Summary Reports covering:

i Surfers Paradise Alliance Limited – Credit Card Expenditure Review

ii Working with Children and Young People (Discussion Report)

iii Internal Incident Management and Business Continuity Planning – Follow-up Report

iv Fleet Acquisitions and Disposals Report

v Excess Leave Management (Data Analysis) Report

vi Data Analytics and Continuous Controls Monitoring (Bi-annual) Report

vii Open Audit Recommendations Report – QAO Performance Audit.



AC18.0212.017 – Other Assurance Activities – Internal

r The Audit Committee notes the update on the internal / management assurance activities relating to Corporate Security, Work Health and Safety and Asset Management / Maintenance scheduled to occur during 2018.

AC18.0212.018 – Other Assurance Activities – External

s The Audit Committee notes the update on the 2017-18 External Assurance Mapping exercise, including relevant high value assurance activities conducted by external agencies since the last Audit Committee meeting.

AC18.0212.019 – Audit Committee 2018 Meeting Dates and Forward Schedule

t The Audit Committee notes the proposed Audit Committee meeting dates for the remainder of calendar year 2018 which have been scheduled to minimise organisational impacts during the GC2018 stabilisation period subject to the holding of a further Committee meeting in conjunction with the annual planning workshop (now to be held in May 2018) to allow follow up review of:

i LGP implementation;

ii interim asset valuations

u The Audit Committee notes the Audit Committee Forward Schedule of standing and specifically requested reports expected at future meetings.

AC18.0212.020 – Supplementary Information

v The Audit Committee notes the supplementary information supplied relating to the 12 February 2018 meeting.

AC18.0212.021 – General Business

w The Audit Committee notes with deep appreciation, the extensive and outstanding contribution made by Len Scanlan to the significant and ongoing improvement in the quality of the Council’s financial reporting, financial management and internal controls during the period of his membership of the Committee.

CARRIED


These Pages

Numbered 1 to 83

Constitute The Adopted Report Of The Meeting

Of The Events Tourism & Governance Committee Meeting

Held Thursday, 8 March 2018

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