fco 2013-14 annual report

Annual Report 2013-2014Tourism I Events I Marketing I Enterprise

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contents

04 Message from the Chairman05 Message from the General Manager06 FCO in Action08 Organisation Structure and Board Profile11 Key Highlights for the 2013/14 Financial Year13 Tourism16 Events18 Economic Development20 The Changing Face of the Fraser Coast23 The Directors’ Report25 Auditors’ Independence Declaration under Section 307C of the Corporations Act 200126 Statement of Profit or Loss and Other Comprehensive Income26 Statement of Financial Position27 Statement of Changes in Equity27 Statement of Cash Flows27 Notes to the Financial Statements32 Directors’ Declaration33 Independent Audit Report

Annual Report : 3 Annual Report : 3

Fraser Coast Opportunities Ltd. (FCO) is the Fraser Coast Region’s peak body for economic development, tourism, events and marketing.

I am pleased to present the inaugural Annual Report for Fraser Coast Opportunities Ltd. which was registered 27th February 2013. The 2013/14 financial year has seen significant change in the way the Fraser Coast plans for and delivers economic development activities to grow the economy and create jobs, delivering on a shared commitment to improve the way we promote investment opportunities, tourism and events in our wonderful region. With Council’s support and following a vote of confidence and a vote for change by the Board and Members of the previous Regional Tourism Organisation (Tourism Fraser Coast), Fraser Coast Opportunities Ltd. (FCO) was established as the new peak body for tourism, events, economic development and regional marketing, integrated for the very first time. This change has resulted in the creation of a regional development entity with more capability than ever before. With a team of dedicated, professional and enthusiastic staff, the organisation has already achieved outstanding results in a short space of time, many of which are detailed in this Annual Report. With a healthy surplus for the 2013/14 Financial Year of almost five percent and a strong track record of significant strategic and operational outcomes already delivered, the Board, Members, Tourism and Events Queensland and industry partners can be confident that FCO is well positioned to advance our region’s economic interests to further success.

I would like to thank my fellow Board Directors, past and present, for their dedicated work throughout the period and to acknowledge the continued and substantial support provided by the State Government via Tourism and Events Queensland. Our Members and industry partners deserve a special mention for their support and the ongoing contribution they make to the success of FCO and the region’s prosperity overall. To the General Manager, his Management Team, staff and volunteers - you have led the organsation admirably over the past twelve months and have achieved great things in a short timeframe. FCO has been built from the ground up and your achievements are something to be proud of. As FCO’s foundation year comes to a close, we can all look to the future knowing that by continuing to work together constructively we will achieve great things for the Fraser Coast.

Gerard O’ConnellChairmanFraser Coast Opportunities

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Message from the Chairman:

Annual Report : 5

The end of the 2013/14 Financial Year is an important milestone for Fraser Coast Opportunities Ltd. (FCO).

It is a time to reflect on our first year’s achievements and our overall performance as well as a time to look to the future. As the Chairman’s Report identifies, FCO is pleased to report a healthy surplus and significant list of achievements for the 2013/14 Financial Year. While many of these are identified in this report it is worthwhile highlighting a few specific items here. This document is available online and I would encourage you to share it with people interested in learning more about FCO, getting involved or becoming a volunteer. With funding from major partners such as Fraser Coast Regional Council and Tourism and Events Queensland, as well as partners from industry, FCO generated more than $11 million in media publicity for the Fraser Coast, $41 million in economic activity as a result of the signature events it runs and led tourism marketing and industry development support resulting with 648,000 visitors to the region worth $332.7 million. Overall the economy grew to over $3.4 billion and in 2013 the number of employed residents increased by 2% to 36,263 people. Taking into account media publicity alone generated by FCO for the Fraser Coast provides a return on investment of 275% on public funds, and if you add the value of events that balloons out to well over 1,000%. A return on investment of $10 worth of goods and services for every $1 spent is an exceptional return that any investor would be proud of. The take-up by businesses of FCO’s world class market intelligence tools continues to be very strong. It provides all Fraser Coast businesses and prospective investors with unparalleled access to intelligence informing real business decisions resulting in real savings and opportunities for growth. For the very first time, this enables us as a region to understand with confidence that…

• The Fraser Coast Region’s $3.4 billion economy is in transition;

• Health, Education, Professional Services, Construction and Tourism will continue to lead growth in employment, output and value add;

• The population will grow 33% to 145,000 people by 2036, adding approximately 47,000 additional residents in the next 20 years;

• Growth will occur in all demographic segments, led by couples with children, couples with no children and lone person households;

• The changing face of the Fraser Coast will require 20,000 additional dwellings over 20 years to meet demand; and

• Housing stock can be predicted based on the household type and geographic distribution of the Fraser Coast’s detailed demographic forecasts.

The changing face of the Fraser Coast will continue to lift demand for infrastructure and services required to meet demand from Health (early years, family medical, allied health and aged care), Education (all levels and industry focused), and Professional Services - boosting investment and overall employment. The Fraser Coast Region has a bright future and things are looking up. FCO, in partnership with Fraser Coast Regional Council, Tourism and Events Queensland and industry partners has very clear direction and big plans for the future. More significant achievements and good news are just over the horizon and our team of talented, dedicated staff and volunteers look forward to sharing news of further success with you soon.

David SpearGeneral ManagerFraser Coast Opportunities

Message from the General Manager:

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Fraser Coast Opportunities in action

GENERATED INDEPENDENTLY VERIFIED DOMESTIC MEDIA PUBLICITY FOR THE FRASER COAST OF MORE THAN $7M, EXCEEDING TEQ’S TARGET FOR FCO OF $2.95M

BY 240%

ACHIEVED

117,000 INTERNATIONAL VISITORS generating expenditure of

$38.5MIN PARALLEL, GENERATED MILLIONS OF DOLLARS IN NATIONAL AND INTERNATIONAL EXPOSURE FROM MARKETING AND

MEDIA ACTIVITIES, AND THE LAUNCH OF KEY INVESTMENT CAMPAIGNS;

GENERATED INDEPENDENTLY VERIFIED

INTERNATIONAL MEDIA PUBLICITY IN

GERMANY FOR THE FRASER COAST

OF MORE THAN $4M, EXCEEDING TEQ’S TARGET

FOR FCO OF $0.94M BY

435%

ACHIEVED

531,000 DOMESTIC OVERNIGHT VISITOR

CONSISTING OF 270,000 ON HOLIDAY AND 182,000 VISITING FRIENDS AND RELATIVES, GENERATING

EXPENDITURE VALUED AT $294.2M;

SUCCESSFUL IMPLEMENTATION OF THE 2013/14 FRASER COAST

SUMMER CAMPAIGN, WHICH INCREASED TRAFFIC TO THE

VISITFRASERCOAST.COM WEBSITE BY OVER 3,000%

& CREATING A CONSUMER DATABASE

OF OVER 50,000

ACHIEVED A TOTAL OF

648,000 VISITORS TO THE FRASER COAST GENERATING EXPENDITURE OF

$332.7M IN THE FRASER COAST ECONOMY, OR 9.8% OF GRP

FCO’S FIVE VISITOR CENTRES HAVE BEEN

WORKING TO ACTIVELY PROMOTE ITS TOURISM

PARTNERS AND VALUE ADD TO THE

VISITOR EXPERIENCE. THE CENTRES HAVE

EXPERIENCED OVERWHELMING

SUCCESS OVER THE 13/14 FINANCIAL YEAR, WITH SALES REVENUE ACROSS THE CENTRES

INCREASING BY 113%

AND WITH THE AVERAGE SPEND PER HEAD ALSO

INCREASING BY 108%.

OUR ECONOMY GREW BY $56 MILLION TO $3.41 BILLION, A HEALTHY 1.6% GROWTH FOR THE FULL YEAR ENDING 30 JUNE 2014

DELIVERY OF KEY SIGNATURE FRASER COAST EVENTS, INCLUDING THE OFFSHORE SUPERBOAT CHAMPIONSHIPS, THE RELISH FOOD AND WINE FESTIVAL AND THE MARY POPPINS FESTIVAL, GENERATING

MORE THAN $41M IN ECONOMIC ACTIVITY FOR THE FRASER COAST AND CREATING MORE THAN 341 JOBS

THE NUMBER OF EMPLOYED RESIDENTS IN THE FRASER COAST

REGION GREW BY ALMOST 2% IN 2013 TO

Source Data: National Institute of Economic and Industry Research (NIEIR), Tourism Research Australia (TRA), Tourism and Events Queensland (TEQ) and Fraser Coast Opportunities (FCO) 2012/13 and 2013/14. www.frasercoastopportunities.com.au for more information.

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Cr Gerard O’Connell : ChairmanCr Gerard O’Connell is both Chairman of Fraser Coast Opportunities as well as Mayor of the Fraser Coast region. Gerard is also a Director on the Board of Regional Development Australia (RDA), Wide Bay Burnett.

Gerard has worked in numerous industry sectors including education, hospitality, motor vehicle, hardware, retail and employment services as well as being an elected Council representative since 2004. He is qualified with a Bachelor of Business, majoring in Accounting, a Bachelor of Theology and is also a Member of the Australian Institute of Company Directors.

David Hay : Deputy Chairman Ceased 14 July 2014

David Hay is the Group General Manager of the Kingfisher Bay Resort Group which operates Kingfisher Bay Resort, Eurong Beach Resort, Fraser Island Barges and Fraser Explorer Tours. David has worked in management positions within the tourism and education industries on the Fraser Coast region for twenty years and holds a Bachelor degree in Business (Tourism).

David is a member of the Fraser Island Community Advisory Committee which advises both the State and Federal Governments on matters concerning Fraser Island.

Lisa Desmond : SecretaryLisa Desmond is the Chief Executive Officer of the Fraser Coast Regional Council, responsible for managing the region in an effective and efficient manner within available resources, ensuring Council is open and accessible to the community.

Lisa is a qualified accountant and holds Bachelor and Masters degrees in business and commerce. She has more than 20 years experience in local government across New South Wales, Northern Territory and Queensland.

Glen Winney : TreasurerCeased 3 July 2014

Glen Winney is the principal of Knight Frank Fraser Coast and Win Constructions Queensland. He is a former President of the Urban Development Institute of Australia (UDIA) Fraser Coast, Director of the UDIA State board, an accredited member of the Real Estate Institute of Queensland (REIQ), Graduate Member of the Australian Institute of Company Directors (AICD) and a Member of the Queensland Master Builders Association (QMBA).

During the period ended 30th June 2014, Directors of Fraser Coast Opportunities included the following representatives, excluding interim directors:

Organisational structure and board profile:


Dr Theresa CraigCeased 14 July 2014

Dr Craig is a highly qualified professional passionate about regional Australia. With international and Australian experience, she has worked in the agriculture industry her entire career in roles ranging from business woman to scientist.

In addition, her experience has allowed her to work with complementary industries (food industry and medicine). For the past 17 years she has owned and operated her Australian based research and consulting firm, TARA - Technical Assistance and Research Analysis Pty Ltd and she also owns and manages a small Charolais stud and commercial Red Brahman operation in South East Queensland.

Phil IngramPhil Ingram holds a Bachelor of Economics and Bachelor of Arts (Asian Studies), Economics and Japanese. He is a Graduate of the Australian Institute of Company Directors and also currently an Advisor to the Board of Language Discovery Ltd.

His career has spanned both the public and private sectors with over 20 years living and working in East Asia. His experience extends to working for Nomura in Japan, the Foreign Investment Review Board in Canberra and senior roles such as the Victorian Trade and Investment Commissioner in Japan and Korea, the North Asia Manager for the Queensland Department of State Development and the Australian Trade Commission’s Senior Trade Commissioner in Fukuoka, Tokyo, Beijing and Hong Kong. Phil has also held roles as a Board Director with Australian business chambers in Tokyo, Osaka, Brisbane, Beijing and Hong Kong.

Paul Cotton, AMDr Cotton is a Member of the Order of Australia for Service to Medicine and the Community of Northern Territory and Queensland.

He is the Principal/Chair of Strategic Health Services, Chair of Strategic Deployment Services, Principal of Maryborough Family Medical Practice, the External Medical Advisor to Workcover Queensland, Senior Lecturer at USQ School of Medicine and the Central and Southern Queensland Training Consortia Supervisor.

The following people held the position of Interim Director during part of the reporting period:

• Ed Gibson

• Dan Casey

• Craig Winter

FCO is a not-for-profit company limited by guarantee. It is governed by a Board of Directors, consisting of mostly private sector representatives in addition to the Mayor and CEO of Council. The Company was formally registered on 27 February 2013, and began formally trading on 1 July 2013 with the commencement of its founding General Manager.

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Organisational structure:

Manager - Enter

prise

Deve

lopm

ent

Board MembersTo

urism and TEQ Partnerships

Annual Report : 11

KEY HIGHLIGHTS FOR THE 2013/14 FINANCIAL YEAR

• Delivery of key signature Fraser Coast Events,including (but not limited to) the 2013 Offshore Superboat Championships, Relish Food and Wine Festival, Whale Festival, World’s Greatest Pub Fest and the Mary Poppins Festival, generating more than $41 million in economic activity for the Fraser Coast, creating more than 341 jobs;

• Achieved a total of 648,000 visitors to the Fraser Coast generating expenditure of $332.7 million in the Fraser Coast Economy, or 9.8% or GRP; • Achieved 531,000 Domestic Overnight

Visitor consisting of 270,000 on holiday and 182,000 visiting friends and relatives, generating expenditure valued at $294.2 million;

• Achieved 117,000 International Visitors generating expenditure of $38.5 million; • Generated independently verified media publicity for the Fraser Coast of more than $11 million; • Independently verified domestic media publicity for the Fraser Coast of more than $7 million, exceeding Tourism and Events Queensland’s (TEQ) target for FCO of $2.95 million by 240%;

• Independently verified international mediapublicity in Germany for the Fraser Coast of more than $4 million, exceeding TEQ’s target for FCO of $0.94 million by 435%;

• Generated over $1 million in national exposurefrom marketing and media activities associated with the launch of key investment attraction campaigns;

• Successful implementation of the 2013/14

Fraser Coast Summer Campaign, which increased traffic to the visitfrasercoast.com website by over 3,000% and creating a consumer database of over 50,000;

• Business transformation of FCO’s fiveVisitor Information Centres (VICs) has been an overwhelming success with sales revenue across the centres increasing by 113% and with the average spend per head increasing by 108% compared to the previous year;

• Our economy grew by $56 million to $3.41 billion, a healthy 1.6% growth for the full year ending 30 June 2014;

• The number of employed residents in the Fraser Coast Region grew by almost 2% in 2013;

• Built FCO from the ground up, involving an intensive business transformation and change management process;

• Used the processes of the Fair Work Actto transition staff and resources from Fraser Coast Regional Council as well as the previous RTO (Tourism Fraser Coast) into a new not for profit company limited by guarantee;

• Led the process of establishing all strategies,policies, systems and processes, as well as the transition from an interim to elected Board of Directors;

• Integrated people and resources into an entirelynew organisational structure and built the teams within it, including fostering a dynamic, innovative and entrepreneurial culture;

• Continued to successfully deliver the operationalrequirements of tourism marketing, product and experience development, regional events, regional marketing and economic development for the Fraser Coast region during a period of intense transition and change; and

• Built a visible and credible profile as the voiceof Economic Development, Tourism, Events and Marketing in the Fraser Coast Region in all key print, digital and broadcast media channels.

Source Data: National Institute of Economic and Industry Research (NIEIR), Tourism Research Australia (TRA), Tourism and Events Queensland (TEQ) and Fraser Coast Opportunities (FCO) 2012/13 and 2013/14. www.frasercoastopportunities.com.au for more information.


Fraser Coast Discovery CentreAs a result of a successful application for funding through the Queensland Government Contestable Grant Scheme, FCO was able to update existing and new displays in the Fraser Coast Discovery Sphere, which included the installation of a salt water aquarium, a salt water touch tank and a fresh water aquarium featuring a Lung Fish. Funding was also used to implement the highly successful Discovery Sphere School Holiday Program, as well as the ongoing promotion of the centre to local and regional markets.

Visitor Information ServicesFCO’s five visitor centres have being working to actively promote tourism partners and value add to the visitor experience. The centres have experienced overwhelming success over the 2013/14 financial year, with sales revenue across the centres increasing by 113%, and the average spend per head also increasing by 108%.

FCO continues to enjoy the services of 70 volunteers and the centres have also experienced great success through the skills and expertise provided by our part time staff members.

Fraser Coast Destination Tourism PlanFCO has worked with industry, the Fraser Coast Regional Council, Tourism and Events Queensland, the state government and other key stakeholders to develop and begin to action the Fraser Coast Destination Tourism Plan.

This document outlines key activities, actions, goals and strategies that need to be carried out by all stakeholders, in partnership in order to enable us to reach the state’s expenditure target for the Fraser Coast of $759 million by the year 2020.

Internationally Ready ProgramThis initiative was conducted by FCO in partnership with Tourism and Events Queensland. The aim of the project is to increase international visitation to the region by providing local operators with the tools and the skills to understand and work the international travel distribution system, as well as understand the requirements of them should they wish to increase their business from international markets.

The programs also aims to increase international visitation to the Fraser Coast through the following means:

• Increasing the number of Fraser Coast operators attending the Australian Tourism Exchange;

• Increasing the number of Fraser Coast products attending the Tourism and Events Queensland Inbound Tour Operator workshops;

• Increasing the awareness of Fraser Coast product to Inbound Tour Operators; and

• Increasing contracted inventory with Inbound Tour Operators and International Wholesalers.

Domestic Ready ProgramThis initiative was conducted by FCO in partnership with Tourism and Events Queensland. The aim of the project is to increase domestic visitation to the region by providing local operators with the tools and the skills to understand and work the domestic travel distribution system, as well as understand the requirements of them should they wish to increase their business from key domestic markets.

The program also offered participants with the opportunity to attend a Product Managers’ day in Brisbane where they met with key domestic product managers from around Australia.

Digital Marketing and Social Media WorkshopsIn partnership with Tourism and Events Queensland, FCO delivered a range of digital marketing and social media workshops for the benefit of the local tourism industry and business community. Some of these workshops included an ‘Increase Your Website Traffic’ workshop, several Instagram workshops, a number of ‘Social Media Master classes’ as well as workshops focusing on the benefits of using the Australian Tourism Data Warehouse (ATDW). Several of these workshops were closely followed by one-on-one mentoring sessions for the benefit of interested operators.

The Fraser Coast Marine Centre of ExcellenceAs a result of a successful application for funding through the Queensland Government’s Contestable Grant Scheme, FCO was able to partner with industry to create the virtual Fraser Coast Marine Centre of Excellence website, www.marinecentreofexcellence.com. This concept will form part of a larger strategy focusing on the promotion and development of nature based tourism experiences such as voluntourism opportunities, whilst also aiming to highlight the importance of the Fraser Coast region through research partnerships such as the partnership that exists with Wally Franklin from the Oceania Project.

This project also included the Junior Whale Whisperer Program which is now in its second year.

The Fraser Coast Fishing ClassicAs a result of funding secured from Tourism and Events Queensland, FCO delivered a feasibility study and recommended business and operational plan for the proposed Fraser Coast Fishing Classic. The proposed event would be the largest fishing competition in the southern hemisphere, and would have an event footprint of nine days in total.

This feasibility was put together in partnership with industry through significant levels of consultation, and will also play a key role in enabling the Fraser Coast to reach the state’s visitor expenditure target for the region of $759 million, as outlined in the Fraser Coast Destination Tourism Plan.

TOURISM

Business Unit Review : Tourism

West Coast of Fraser Island AccessThrough strong levels of engagement and consultation with local industry and the state government, FCO was able to gain increased levels of access to the west coast of Fraser Island for local whale watch operators, in order to provide a much needed additional tour product offering outside of the whale watching season.

This has resulted in numerous additional tours being provided to visitors and locals of the Fraser Coast between November and July each year.

Swim with WhalesThrough strong levels of engagement and consultation with local industry and several departments of the state government, FCO has worked with local operators to gain permission for some local whale watch operators to offer ‘swim with whale’ tours for the 2014 whale watching season.

This breakthrough will result in significant levels of media generated for the region and will also provide differentiation for Hervey Bay operators in comparison to competitors. FCO will also work with key stakeholders to develop a Fraser Coast Swim with Whales Code of Practice which, once finalised, will be managed and led by industry.

Whale Resilience ProgramAs a result of lobbying efforts led by FCO in partnership with local industry following changes to the Marine Mammal legislation, the local industry was provided with $100,000 worth of funding to develop a program to assist whale watch operators in preparation for the 2014 whale watching season.

Through the program, whale watch operators were able to add technological advancements on board their vessels, such as Free WIFI for guests, underwater cameras, iPads for customer use and on board TV screens and cameras. Funding was also used to feature whale watching footage on digital billboards throughout Brisbane, as well as ‘Harvey the Humpback’ mascot promotional activity at the Ekka and at Central Station in Brisbane.

Australian Fishing ChampionshipsIn pursuit to be known as Australia’s Home of Fishing, the Fraser Coast and the Marine Media Group came to terms to secure the right to host the Australian Fishing Championships in the Fraser Coast for 2014, 2015 and 2016. This agreement will see the Fraser Coast being featured as Australia’s leading fishing destination through two made for television fishing competitions, namely the Australian Fishing Championships and the inaugural Asian Fishing Championships, which are broadcast domestically and into key emerging international markets including Japan, China, Singapore, a further twelve Asian markets and the USA.

As a result of securing funding through the Queensland Government Contestable Grant Scheme, the region will also host two participatory Australian Bass Tournament events in 2014/15 further highlighting the Fraser Coast as the best fishing destination in Australia.

Australia’s Nature CoastThe Australia’s Nature Coast (ANC) initiative is an ongoing partnership that exists between FCO, Sunshine Coast Destination Ltd and Tourism and Events Queensland to more effectively target the international market, through trade, consumer, publicity and industry development initiatives. The Burnett Mary Group for Natural Resource Management Limited (BMRG) has also been a partner of ANC for several years and was instrumental in writing and presenting the successful submission for UNESCO designation of the Great Sandy Biosphere. Key results included:

• ANC dedicated Inbound Tour Operator Roadshow to Sydney and Melbourne;

• The implementation of www.australiasnaturecoast.com;

• Attendance to Australian Tourism Exchange in 2014;

• Publicity generated through German leading travel program N-TV, featuring German Celebrity Richy Mueller;

• $300,000 tactical campaign into Germany and Europe, in partnership with Tourism and Events Queensland, Tourism Australia, Destination NSW, FTI Touristik and Singapore Airlines; and

• Over $4 million worth of PR generated in 2013/14.

Funding has also been secured to continue this initiative across 2014/15.

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Hervey Bay Whale Watching CampaignThe 2014 Hervey Bay Whale Watching Campaign was valued at over $450,000 and included digital, TV, radio, outdoor, print, social media and a significant PR component - targeting predominantly South East Queensland.

Some of the key highlights of the campaign activity included a feature story on leading Current Affairs program 60 Minutes, a live cross with Sunrise from a whale watching vessel, and a live cross from the Urangan Boat Harbour with the Today Show.

Planning also commenced for the 2014 whale watching campaign, also with a total value of between $450,000 and $500,000.

Fraser Coast Summer CampaignThe Fraser Coast Summer Campaign for 2013/14 was a great success for the region. The campaign had two stages, the ‘Harvey’s Summer Comes Alive’ component, and the ‘Saving Mr. Banks’ component. The first stage played on the story line that the family and friends of ‘Harvey the Humpback’ (Fraser Coast mascot) had left the region after the whale season, whereas he decided to stay for Summer given the vast array of attractions and activities on offer in the region. The ‘Saving Mr. Banks’ stage leveraged the release of the motion picture of the same name, about the story of Walt Disney, PL Travers and Mary Poppins.

The campaign consisted of numerous mediums including radio, television, billboards, print, digital marketing, PR, social media, cinema advertising and a competition.

A database of over 50,000 was generated through the campaign, the financial contribution made by operators doubled in comparison to the previous summer campaign and the campaign website saw an increase in traffic of over 3,000%.

Fraser Coast Ambassador CampaignFCO has continued the Fraser Coast Ambassador Campaign in 2013/14, which has involved the development of a calendar of activities incorporating Chris Latham, Australian rugby legend, as the Fraser Coast Ambassador. This has included a range of media articles, a dedicated blog and a Fraser Island fishing film shoot in partnership with Kingfisher Bay Resort Group. This campaign has also been promoted through the FCO and Kingfisher Bay Resort Group Social Media and digital channels as well as through the APN network, and a feature on the Queensland Lifestyle program Creek to Coast.

Trade and Media FamiliarisationsIn 2013/14 FCO hosted a range of domestic and international media familiarisations, generating significant publicity and sales results for the Fraser Coast region. Familiarisations included the following:

• Sunrise

• Today Show

• 60 Minutes

• Creek to Coast

• Queensland Weekender

• BBC

• TVNZ

• Hong Kong Media Famil

• Top Deck Famil

• Malaysia TV3 Media Famil

• Australia’s Nature Coast N-TV documentary

• Dertour Mega Famil

• International Media Market Place Famil

• 1 x Pre and 2 x Post Australian Tourism Exchange Famils

• Tourism and Events Queensland International Directors Famil

• YTravelblog famil

• Jennifer Ennis – freelance journalist

• Elisa Parker and Graham Freeman (Best Job in the World) Famil

• Apollo Campervan Famil

• Corroborree China Famil

Trade and Consumer ShowsIn order to boost visitation, both domestically and internationally for the Fraser Coast, FCO attends numerous trade and consumer shows to boost the profile of the region. In 2013/14 these shows included the following:

• Queensland on Tour New Zealand

• Queensland on Tour USA

• Australian Tourism Exchange Cairns 2014

• Australian Youth Tourism Exchange

• ANC Inbound Tour Operator Roadshow

• International Media Marketplace

Business Unit Review : Tourism

Annual Report : 15

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EVENTSEvents play an important role in the cultural, social and economic development of a region. FCO is responsible for the delivery of several signature events that took place during the 2013/14 financial year. These events are focused on bringing communities together, building community pride, attracting increased visitation to the region, encouraging a longer length of stay for visitors, and ultimately, increasing visitor expenditure.

Maryborough Open House

The 2013 Maryborough Open House event was a joint initiative of the Fraser Coast Regional Council, Fraser Coast Opportunities and the National Trust of Queensland. In addition to the Open House program, a full weekend of events were staged, including a two day archaeological dig at the Old Maryborough township, guided walking tours of Heritage listed Queens Park, Gatakers by Night evening celebration and a Ghostly Tour and Tales of Maryborough evening tour. 13,015 people visited the twenty-six buildings, churches, hotels and houses open throughout the Saturday.

A thirty-eight page full colour program produced with funding from the Queensland Heritage Council included an overview of Maryborough’s history, a program of events and activities for the region and informative full-page building fact sheets.

61% of people were residents of Maryborough, 19% were from the remaining Fraser Coast region, and 20% were visitors to the region.

Offshore Superboat ChampionshipsThe final series of the Australian Offshore Superboat Championship were held in Hervey Bay from 8 to 10 November 2013.

The event attracted an estimated crowd of 25,000 spectators to the Hervey Bay Foreshore where a large outdoor screen was placed featuring live footage of the race to enhance the overall viewing experience for locals and visitors. The media and marketing campaign for the event attracted national media exposure including an estimated television audience in excess of 500,000 during a national telecast on motorsport program Speedweek, SBS.

Annual Report : 17

Business Unit Review : Events

Carols in Queens ParkOn December 8 the Fraser Coast community celebrated the magic of Christmas with contemporary and traditional carols at Maryborough’s Heritage Listed Queens Park. FCO worked with Pastor Steve Jobe of the Maryborough City Church and the event started in the afternoon with Apex’s Santa Fair annual fund raiser.

The free open air concert attracted an estimated 5,000 people to listen to performing local school choirs, bands and talented entertainers. A visit from Santa and a fireworks spectacular concluded the evening.

New Year’s EveAn event designed to cater for families saw approximately 2,000 people visit the Torquay Beach foreshore and enjoy live local music, amusement rides, craft markets and a fireworks display fired from the Torquay Jetty. An early finish to the evening meant the rest of the hotels, restaurants and businesses along the Esplanade could welcome a different audience who wanted more entertainment and dancing to celebrate the beginning of 2014.

‘Saving Mr Banks’ Movie PremiereFCO was presented with an exciting opportunity when it was announced that the ‘Saving Mr Banks’ movie premiere would be launched in Australia. FCO secured the rights from Disney to hold the premiere at the Brolga Theatre in Maryborough on 3 January 2014. Around 1,000 Mary Poppins enthusiasts filled Maryborough’s Brolga Theatre for the exclusive preview a week ahead of its national release date. It provided a unique opportunity to share with the rest of the world the region’s special connection with this most famous of all nannies.

The movie details the relationship between Maryborough born Mary Poppins author PL Travers and Walt Disney and explores how these two figures worked together to make the movie classic Mary Poppins a reality.

To capitalise on the exposure generated by ‘Saving Mr Banks’ FCO produced a one minute destination clip which screened in cinemas across South East Queensland showcasing the Fraser Coast.

Relish Food and Wine FestivalIn its third year, the Relish Food and Wine Festival took place in Maryborough on 7 June 2014. The event brings together the region’s fresh seasonal produce, local seafood, innovative chefs and regional wineries. In 2014 there were close to 2,000 tickets sold to attend the event, merchandise sales showed a strong increase on the previous year’s sales and food and wine sessions held at the event were a sell-out.

The 2014 event also featured celebrity chef Alastair McLeod and local ambassadors and winners of the 2013 My Kitchen Rules completion, Dan and Steph Mulheron. New editions to the event this year included ‘foodie talks’ and a range of ‘Relish’ merchandise to compliment the popular hand crafted Relish Produce boxes.

World’s Greatest Pub FestIn partnership with local Maryborough Publicans and charitable pubs, FCO assisted with the preparation, promotion and implementation of the World’s Greatest Pub Fest for 2014.

The event took place in Maryborough on 8 June. Whilst the event was unable to set a new Guinness World Record, the number of participants was in excess of 3,100. $8,000 was raised for charity consisting of two dollars from the sale of each participant’s passport, as well as other fundraising activities including collection tins, bribe tins for the costume competition and individual pubs’ fundraising activities. The chosen charity was Alzheimer’s Australia.

The merchandise sold out and the event also generated publicity for the region in key intrastate drive markets.

ECONOMIC DEVELOPMENTFCO delivers a range of initiatives to stimulate investment and employment to maximise economic growth prospects.

AviationIn partnership with the Fraser Coast Regional Council, FCO has delivered the following aviation initiatives across the 2013/14 financial year:

• Expansion of aviation routes between the Fraser Coast and Sydney and Brisbane in partnership with QantasLink;

• Implemented a marketing campaign in partnership with QantasLink to grow the interstate aviation market as well as specifically targeting business travellers on all sectors utilising its consumer database of 50,000 and a local residents database as well as FCO social media channels, digital marketing, electronic direct mail and media releases; and

• Commenced a strategic campaign to establish Hervey Bay Airport as Fly-In-Fly-Out (FIFO) Hub.

Investment Incentives Attraction CampaignIn partnership with Fraser Coast Regional Council, FCO developed and implemented a national media and marketing campaign to launch the region’s new Infrastructure Incentives Scheme. Some of the key activities included:

• Targeted media material distributed to key industry organisations such as Urban Development Institute of Australia (UDIA) and Real Estate Institute of Queensland (REIQ) and local, state and national media channels;

• Promotional video produced outlining the details of the scheme;

• Design, production and printing of an eight page brochure outlining the scheme and the benefits of investing in the Fraser Coast; and

• Update of the Fraser Coast Opportunities website including all information, key messages, links, brochure and video.

FIFO Strategic Partnership In 2013/14 FCO was chosen as the lead organisation to work with resource industry consultant Peter Tracy, Regional Development Australia Wide Bay Burnett and Bundaberg Regional Council colleagues to compile a fly-in-fly-out Regional Workforce Hub Framework.

This regional collaboration has been presented to resource industry partners to showcase the region’s ability to capture and become a source point for FIFO activity.

It was also presented to the Deputy Premier to encourage the Government to mandate sourcing some of the resource industry workforce from either of the two regions.

Facilitation of online industry-leading Market Intelligence Tools (ID Tools)In the 2013/14 financial year, FCO launched one of Australia’s leading online market intelligence tools (ID Tools) and conducted a series of workshops for small and medium business operators. The ID Tools system offers existing and new businesses considering the Fraser Coast market to gain free access to critical research information enabling informed business decisions.

FCO Better Business LunchesIn the 2013/14 financial year the FCO Better Business Lunches were launched to build the profile of the organisation amongst the local business community and engage all levels of business in networking opportunities.

FCO has enjoyed strong engagement and sponsorship from print and broadcast media for these events with the first function attracting 145 guests to hear keynote speaker Graham Richardson.

2014 Fraser Coast Business and Tourism Awards Fraser Coast Opportunities negotiated with existing stakeholders to combine the existing Tourism and Business Awards into the one event to be held on November 7 in Hervey Bay.

Featuring 20 categories and being the only regional awards this event will immediately become the largest and most prestigious corporate gathering on the Fraser Coast calendar.

Hervey Bay Home Affordability SchemeFCO launched an integrated marketing campaign to promote the Hervey Bay Home Affordability Scheme in partnership with the Fraser Coast Regional Council. Key elements of the campaign include:

• A dedicated campaign page within www.frasercoastopportunities.com.au with the call to action being featured on key elements of the campaign;

• Regional Lifestyle and Events electronic direct mail was sent to a database of 50,000, with an open rate of 26.6%, as well as the local resident database;

• A Google AdWords campaign which ensured that the campaign website was featured in the sponsored section of google search results when consumers and potential customers were seeking locations to build houses;

• Editorial in the Fraser Coast Chronicle’s Visitor’s Guide; and

• Media Releases promoting the scheme were also distributed locally and through FCO’s contracted PR agency.

18 : Annual Report

Annual Report : 19

Advancing AgricultureFCO has worked with the Fraser Coast’s Advancing Agriculture committee to gain a better understanding of the key hindrances and opportunities that exist in the sector.

FCO completed an audit of locally grown crops and produce to identify where challenges and opportunities exist for the sector.

Urangan Harbour Precinct DevelopmentFCO has been working with key stakeholders to advance the development of the Urangan Boat Harbour Precinct.

In 2013/14 FCO engaged local developers, the local Chambers of Commerce and architects to offer its assistance with the marketing of the project, stakeholder facilitation, communication and potential overseas marketing and investment attraction.

Jobs and Careers ExpoFCO coordinated, in partnership with the Jobs and Careers Expo Committee, the annual Fraser Coast Jobs and Careers Expo held at the TAFE campus in Hervey Bay on 28 May 2014.

More than 1,000 local students from across the region attended as well as industry partners and a further forty-five exhibitors and local employers.

It is proposed to change the format of the expo for 2015 to a forty-eight hour festival of business that would include a combined Chamber of Commerce breakfast, the Jobs and Career Expo and a business forum.

Supporting Campaigns • Audit of health services and market gaps on the Fraser Coast;

• Audit of existing industrial land;

• Co-ordination of Hervey Bay Home Affordability Scheme;

• LGAQ Economic Advisory Group Regions on the Rise conference. FCO conducted business famils and were selected to be panellists and present at the three-day conference;

• Assistance with Fraser Coast Education Alliance building the region’s international education credentials and reputation; and

• Assisted St Stephen’s Private Hospital and supporting medical groups with promotion of Australia’s first fully digitally integrated hospital – gaining strong media attention and local awareness.

Business Unit Review : Economic Development

THE CHANGING FACE OF THE FRASER COAST – AN ECONOMY IN TRANSITIONSome regions have the location and lifestyle that everyone dreams of. Some enjoy fast-paced growth. A key selling point for other regions is affordability. The Fraser Coast, which includes the cities of Maryborough and Hervey Bay, offers the complete package.

The Fraser Coast’s impressive growth figures attest to irresistible appeal, with more than 3,000 people each year discovering the perfect - and affordable - lifestyle and investment destination they have been searching for.

Geographically located only 250km north of Brisbane and just 90 minutes in the air to Sydney - the Fraser Coast is perfectly positioned on the Bruce Highway with fast, efficient road, rail and air transport corridors to major centres and the booming resource sectors.

From an investment perspective the region has been identified as the next ‘hot spot’ with the regional population set to grow dramatically over the next 20 years to more than 145,000 - outstripping the Queensland average and only surpassed by the South-East corner. This growth will occur in all demographic segments led by couples with children, couples with no children and lone person households.

While the region has traditionally been a haven for retirees and sea changers a new demographic shift is taking place. Increasingly, affluent couples and families are moving to the region, not only to enjoy the Fraser Coast lifestyle but also to take on new business and employment opportunities.

With a proud history built on manufacturing and agriculture, the emerging economy of the Fraser Coast is more focussed on health, education, professional services, construction and tourism.

Health is driving the Fraser Coast commercial market with hundreds of millions of dollars of projects approved in the past year alone.

Uniting Care Health and the Australian Government have invested almost $100 million in Australia’s first fully digital private hospital which has been the catalyst for a myriad of complementary developments completed and under construction in the new health precinct.

Jobs in healthcare in the region grew by 40.2%, or 1,600 positions over the five year period 2008 - 2013, now representing more than 5,500 jobs or 17% of the total regional workforce.

Jobs growth in the sector is led by medical and other healthcare services (+514), social assistance such as child care (+421), residential care services (+375) and hospitals (+278).

The evidence of strong investment in construction of hospital assets, associated medical and allied health suites and services has been and continues to be a key driver of growth.

The Fraser Coast has an abundance of high quality education assets with more than forty primary and secondary schools, TAFE Colleges and a University of Southern Queensland campus.

The region’s enviable lifestyle and international appeal also underpins a significant number of enrollments by international students choosing the region for their studies.

To meet this growing demand jobs in education and training grew by 41% to almost 1,000 positions over the five year period 2008-2013, now representing about 10% of the total regional workforce.

20 : Annual Report

The strongest jobs growth in this sector was in preschool and school education (+666), followed by adult, community and other education (+199) and tertiary education (+83).

The Fraser Coast has endured the global financial crisis ‘doom and gloom’ recording positive jobs growth of 2% between 2008-13.

Retail jobs recently received a strong boost with shopping centre giant Stockland displaying great faith in the future of the region by investing $115 million on doubling the size of its retail efforts, creating the largest shopping centre between the Sunshine Coast and Rockhampton. While creating up to 400 new retail jobs, it is also expected to reduce escape expenditure from the Fraser Coast to the tune of $80 million annually.

While the economy remains in transition, particularly in traditional industries such as manufacturing and agriculture, strong population growth and change will provide the foundations for solid growth and economic investment opportunity.

Over the last census period the population of the Fraser Coast grew by 12.67% to a total population of 100,297.

Over the next 20 years the population forecast is set to grow by 37% to almost 145,000. The changing face of the Fraser Coast will require 20,000 additional dwellings over the same time period to meet this demand.

Inbound migration to the Fraser Coast continues to be led from neighbouring regions including the Gold and Sunshine Coasts and Brisbane as well as interstate, predominantly New South Wales and Victoria.

To further enhance its attractiveness, Hervey Bay is currently the only Queensland city offering an extra $12,000 to eligible house and house and land owners to live in approved new residential developments through the Hervey Bay Home Affordability Scheme.

With up to 500 of these grants still available, Hervey Bay is certain to remain on the radar for eligible new home buyers and retirees looking for an extra 12,000 reasons to call the Fraser Coast home.

While the region remains a retirement magnet, the numbers tell another story. A story of strong growth in the number of children living in the Fraser Coast.

From 2006-2011, the number of 0-4 year olds grew by almost 20% to 5,594 or almost 6% of the Fraser Coast population. This is forecast to grow by an additional 44.3% by 2036 or 8,230 children.

Respected property analysis and founder of hotspotting.com.au, Terry Rider, has released a report detailing ‘10 Queensland Hotspots’. These ‘hotspots’ are areas in which he forecasts will offer strong potential for price growth. On this list, Hervey Bay was placed third in Queensland as a ‘hotspot’ for property investment.

According to Ryder, Hervey Bay’s housing market was stagnant between 2010 and 2012, but is now showing signs of growth - and is likely to be boosted by growing numbers of fly-in-fly-out mining workers settling in the area.

“Hervey Bay’s housing market was flat from 2010 to 2012 but is now showing signs of growth - and is likely to be boosted by growing numbers of fly-in-fly-out mining workers settling in the area. The development of major new medical facilities is likely to increase the area’s appeal for retirees,” Ryder said.

Although Ryder states that oversupply had previously dampened capital growth in Hervey Bay, he believes that the dwellings glut has since been absorbed and the market “has recently experienced increased sales activity and some movement in rents, with prices starting to follow”.

“During late 2013 and early 2014, demand has become more consistent across the Hervey Bay region, reducing the gap between extreme positive and negative growth.”

In summary, the story of the Fraser Coast now and in the future is one of change and adaptation, combined with optimism for brighter times ahead.

Economic growth, driven by demand resulting from changing settlement patterns and demographic trends, fuels investment in health, education and services as well as construction and tourism.

While some other regional centres lose their shine due to rising costs of living, the Fraser Coast with its idyllic and affordable lifestyle remains a jewel in the crown and the perfect destination to visit, live, work, learn and invest.

To plan your next business trip or holiday on the Fraser Coast visit www.visitfrasercoast.com

For more information, to learn more and to access the Fraser Coast Region’s detailed Market Intelligence Tools go to www.frasercoastopportunities.com.au

Annual Report : 21

The Changing Face of the Fraser Coast

22 : Annual Report

Annual Report : 23

Fraser Coast Opportunities Ltd DIRECTORS’ REPORT & FINANCIAL STATEMENTS For the period ended 30 June 2014

Directors’ Report: 30 June 2014The directors present their report on Fraser Coast Opportunities Ltd for the financial period ended 30 June 2014.

1. General information

Information on directors The names of each person who has been a director during the period and to the date of this report are:

Gerard Daniel O’Connell Position: Chair Appointed: 27 February 2013

Lisa Margaret Desmond Position: Director / Secretary Appointed: 27 February 2013

Paul Eugene Cotton AM Position: Director Appointed: 27 February 2013

Edward John Gibson Position: Director Appointed: 27 February 2013 Ceased: 1 July 2013

Daniel John Casey Position: Director Appointed: 27 February 2013 Ceased: 21 February 2014

Glen Michael Winney Position: Director Appointed: 27 February 2013 Ceased: 3 July 2014

David John Hay Position: Director Appointed: 27 February 2013 Ceased: 14 July 2014

Philippe Charles Ingram Position: Director Appointed: 21 February 2014

Theresa Craig Position: Director Appointed: 21 February 2014 Ceased: 14 July 2014

Craig William Winter Position: Director Appointed: 19 August 2014

Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Principal activities The principal activity of Fraser Coast Opportunities Ltd during the financial period was regional marketing, investment attraction, event and tourism development.

No significant changes in the nature of the Company’s activity occurred during the financial period.

2. Operating results and review of operations for the year

Operating results The surplus of the Company amounted to $207,699.

Dividends paid or recommended No dividends were paid or declared since the start of the financial period. No recommendation for payment of dividends has been made.

Review of operations Fraser Coast Opportunities Ltd. (FCO) is a not-for-profit company limited by guarantee. It has an annual operating budget of approximately $4 million, mostly provided by Fraser Coast Regional Council (FCRC) and Tourism and Events Queensland (TEQ).

FCO’s core functions are defined in Section 3 of its constitution. These include:

• Tourism Development and Destination Marketing;

• Economic Development and Business Attraction;

• Events; and

• Regional Marketing and Lifestyle.

The establishment of FCO as an entity brings together the operational, strategic and political resources of several separate entities under the one umbrella to improve coordination, efficiency and effectiveness in pursuit of positive outcomes in the functions listed above. As a result, the establishment of FCO sees the merger of FCRC staffing and resources from these functions into FCO, as well as those from Tourism Fraser Coast (TFC).

FCO is governed by a Board of Directors, consisting of mostly private sector representatives in addition to the Mayor and CEO of Council. The Company was formally registered on 27 February 2013, and began formally trading on 1 July 2013 with the commencement of its founding General Manager.

It is Fraser Coast Opportunities’ Vision that: By the year 2025, the Fraser Coast Region will be recognised nationally and internationally as Queensland’s most desirable place to visit, live, work, learn and invest.

24 : Annual Report


In this respect, Fraser Coast Opportunities is designed to be: The Fraser Coast Region’s peak body for regional marketing, investment attraction, event and tourism development.

It creates value by:

• Speaking with one voice on key priorities and interests;

• Providing a single entry point for investment enquiries;

• Dedicating and integrating human and capital resources towards a common cause;

• Being agile in its organisational structure and governance to engage effectively with both Public and Private sector partners; and

• Being inclusive through open and far reaching industry engagement.

It is not the purpose of Fraser Coast Opportunities to:

• Act as a private developer or as a consultant to private developers;

• Do things for others that they can do on their own;

• Lobby for the individual commercial interests of private for profit entities, such as seeking concessions on statutory development fees and charges from Council or other authorities; or

• Hold a political bias.

3. Other items

Significant changes in state of affairs There have been no significant changes in the state of affairs of the Company during the period.

Events after the reporting date No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

Future developments and results Likely developments in the operations of the Company and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Company.

Environmental issues The Company’s operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a state or territory of Australia.

The Clean Energy Bill 2012 will have an indirect impact on the Company due to increased costs.

Company secretaryThe following person held the position of Company secretary at the end of the financial period:

• Lisa Margaret Desmond has been the company secretary since 2013.

Meetings of directors During the financial period, 19 meetings of directors (including committees of directors) were held. Attendances by each director during the period were as follows:

Directors’ Meetings

Number eligible to

attend

Number attended

Gerard Daniel O’Connell 19 18

Lisa Margaret Desmond 19 18

Paul Eugene Cotton AM 17 17

Edward John Gibson 6 2

Daniel John Casey 15 11

Glen Michael Winney 19 18

David John Hay 19 17

Philip Charles Ingram 4 4

Theresa Craig 9 8

Craig William Winter 2 -

Indemnification and insurance of officers and auditors The Company has paid premiums to insure each of the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the Company, other than conduct involving a wilful breach of duty in relation to the Company.

Annual Report : 25

Auditor’s independence declaration The lead auditor’s independence declaration in accordance with section 307C of the Corporations Act 2001, for the period ended 30 June 2014 has been received and can be found on page 26 of the financial report.

This directors’ report is signed in accordance with a resolution of directors made pursuant to s.298(2) of the Corporations Act 2001.

Director:

Gerard Daniel O’Connell

Director:

Paul Eugene Cotton AM

Dated this day of Monday 3 November 2014

Auditors Independence Declaration under Section 307C of the Corporations Act 2001To the Directors of Fraser Coast Opportunities Ltd

The auditors independence declaration has been provided pursuant to s.30cC of the Corporations Act 2001.

Independence Declaration As lead auditor for the audit of Fraser Coast Opportunities Ltd for the year ended 30 June 2014, I declare that, to the best of my knowledge and belief, there have been:

(a) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and(b) no contraventions of any applicable code of professional conduct in relation to the audit.

Signed:

P J Flemming CPA (as Delegate of the Auditor-General of Queensland)

Queensland Audit Office Brisbane

26 : Annual Report


Statement of Profit or Loss and Other Comprehensive Income

For the Period Ended 30 June 2014

Note 2014

$

Revenue 3,681,091

Corporate Service Costs (147,881)

Tourism Service Costs (706,084)

Tourism Development Costs (196,372)

Tourism Marketing Costs (609,983)

Events (856,498)

Marketing Costs (485,658)

Enterprise Costs (379,570)

Other Costs (91,346)

Surplus before income tax Income tax expense

2 207,699 -

Surplus from continuing operations

207,699

Surplus for the period 207,699

Other comprehensive income, net of income tax Other comprehensive income

-

Total comprehensive income for the year:

207,699

Statement of Financial PositionAs at 30 June 2014

Note 2014

$

ASSETS

Current Assets

Cash and cash equivalents 3 502,881

Trade and other receivables 4 194,793

Inventories 5 39,919

Other assets 7 34,383

Total Current Assets 771,976

Non-Current Assets Property, plant and equipment

6

45,210

Total Non-Current Assets 45,210

Total Assets 817,186

LIABILITIES

Current Liabilities Trade and other payables

8 324,685

GST liabilities 10,788

Other financial liabilities 9 239,691

Total Current Liabilities 575,164

Non-Current Liabilities Employee benefits

10

34,323

Total Non-Current Liabilities 34,323

Total Liabilities 609,487

NET ASSETS 207,699

EQUITY

Retained earnings 207,699

TOTAL EQUITY 207,699

The accompanying notes form part of these financial statements.

Annual Report : 27

Statement of Changes in EquityFor the Period Ended 30 June 2014

2014 Retained Earnings

$

Total

$

BALANCE AT 23 FEBRUARY 2013

- -

Surplus attributable to members of the entity

207,699 207,699

BALANCE AT 30 JUNE 2014 207,699 207,699

Statement of Cash FlowsFor the Period Ended 30 June 2014

Note 2014

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 3,486,298

Payments to suppliers and employees

(2,922,583)

Net cash provided by (used in) operating activities

13 563,715

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, plant and equipment

(60,834)

Net cash used by investing activities

(60,834)

CASH FLOWS FROM FINANCING ACTIVITIES:

Net increase (decrease) in cash and cash equivalents held

502,881

Cash and cash equivalents at end of the period

3

502,881

Notes to the Financial StatementsFor the Period Ended 30 June 2014Fraser Coast Opportunities Ltd is a not-for-profit Company limited by guarantee, incorporated and domiciled in Australia.

Fraser Coast Opportunities Ltd was incorporated on 23 February 2013 and commenced trading on 1 July 2013.

1. Summary of Significant Accounting Policies

(a) Basis of PreparationThe directors have prepared the financial statements on the basis that the Company is a non-reporting entity because there are no users dependent on general purpose financial statements. These financial statements are therefore a special purpose financial statements that has been prepared in order to meet the requirements of the Corporations Act 2001.

The financial statements have been prepared in accordance with recognition and measurement criteria in the Australian Accounting Standards and the disclosure requirements of AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows and AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 1048 Interpretation of Standards and AASB 1054 Australian Additional Disclosures.

The significant accounting policies disclosed below are those which the directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with the previous period unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes.

(b) Income TaxNo provision for income tax has been raised as the Company is exempt from income tax under Div 50 of the Income Tax Assessment Act 1997.

(c) Revenue and Other IncomeRevenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the entity and specific criteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.

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

Grant revenue Grant revenue is recognised in the statement of profit or loss and other comprehensive income when the The accompanying notes form part of these financial statements.

28 : Annual Report


entity obtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

Fraser Coast Opportunities Ltd receives nonreciprocal contributions of assets from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the statement of profit or loss and other comprehensive income.

Grant revenue Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to match the grant to the costs they are compensating. Grants relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the asset on a straightline basis.

Interest revenue Interest is recognised using the effective interest method.

(d) Goods and Services Tax (GST)Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payable are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(e) Property, Plant and EquipmentClasses of property, plant and equipment are measured using the cost model.

Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable.

Plant and equipment Plant and equipment are measured using the cost model.

Depreciation The depreciable amount of all property, plant and equipment, except for freehold land is depreciated on a straightline method from the date that management determine that the asset is available for use.

(f) Financial instrumentsFinancial instruments are recognised initially using trade date accounting, i.e. on the date that Company becomes party to the contractual provisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial Assets Financial assets are divided into the following categories which are described in detail below:

• loans and receivables;

Financial assets are assigned to the different categories on initial recognition, depending on the characteristics of the instrument and its purpose. A financial instrument’s category is relevant to the way it is measured and whether any resulting income and expenses are recognised in profit or loss or in other comprehensive income.

All income and expenses relating to financial assets are recognised in the statement of profit or loss and other comprehensive income in the ‘finance income’ or ‘finance costs’ line item respectively.

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers but also incorporate other types of contractual monetary assets.

After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Any change in their value is recognised in profit or loss.

The Company’s trade and most other receivables fall into this category of financial instruments.

Discounting is omitted where the effect of discounting is considered immaterial.

Significant receivables are considered for impairment on an individual asset basis when they are past due at the reporting date or when objective evidence is received that a specific counterparty will default.

The amount of the impairment is the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable.

Annual Report : 29

For trade receivables, impairment provisions are recorded in a separate allowance account with the loss being recognised in profit or loss. When confirmation has been received that the amount is not collectable, the gross carrying value of the asset is written off against the associated impairment provision.

Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.In some circumstances, the Company renegotiates repayment terms with customers which may lead to changes in the timing of the payments, the Company does not necessarily consider the balance to be impaired, however assessment is made on a case-by-case basis.

Financial liabilities Financial liabilities are recognised when the Company becomes a party to the contractual agreements of the instrument. All interest related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included in the income statement line items ‘finance costs’ or ‘finance income’.

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities depending on the purpose for which the liability was acquired. Although the Company uses derivative financial instruments in economic hedges of currency and interest rate risk, it does not hedge account for these transactions.

The Company‘s financial liabilities include borrowings, trade and other payables (including finance lease liabilities), which are measured at amortised cost using the effective interest rate method.

(g) Cash and cash equivalentsCash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Bank overdrafts also form part of cash equivalents for the purpose of the statement of cash flows and are presented within current liabilities on the statement of financial position.

(h) Employee benefitsProvision is made for the Company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related oncosts.

Employee benefits expected to be settled more than twelve months after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. Cashflows are discounted using market yields on national government bonds with

terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.

Employee benefits are presented as current liabilities in the statement of financial position if the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date regardless of the classification of the liability for measurement purposes under AASB 119.

(i) Adoption of new and revised accounting standards

During the current period, the following standards became mandatory and have been adopted retrospectively by the Company:

• AASB 13 Fair Value Measurement

• AASB 119 Employee Benefits

• AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17]

• AASB 2012-9 Amendments to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039

• AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets and Financial Liabilities

The accounting policies have been updated to reflect changes in the recognition and measurement of assets, liabilities, income and expenses and the impact of adoption of these standards is discussed below.

AASB 13 Fair Value Measurement does not change what and when assets or liabilities are recorded at fair value. It provides guidance on how to measure assets and liabilities at fair value, including the concept of highest and best use for nonfinancial assets. AASB 13 has not changed the fair value measurement basis for any assets or liabilities held at fair value, however additional disclosures on the methodology and fair value hierarchy have been included in the financial statements.

AASB 119 Employee benefits changes the basis for determining the income or expense relating to defined benefit plans and introduces revised definitions for short-term employee benefits and termination benefits.

The Company reviewed the annual leave liability to determine the level of annual leave which is expected to be paid more than 12 months after the end of the reporting period. Whilst this has been considered to be a long-term employee benefits for the purpose of measuring the leave under AASB 119, the effect of discounting was not considered to be material and therefore has not been performed.

30 : Annual Report


(j) New Accounting Standards and Interpretations

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The Company has decided against early adoption of these Standards. The following table summarises those future requirements, and their impact on the Company:

AASB 9 Financial Instruments and amending standards AASB 2010-7 / AASB 2012-6

Effective date for entity: 30 June 2016

Requirements: Changes to the classification and measurement requirements for financial assets and financial liabilities. New rules relating to derecognition of financial instruments.

Impact: The impact of AASB 9 has not yet been determined as the entire standard has not been released.

AASB 1055 - Budgetary Reporting AASB 2013-1 - Amendments to AASB 1049 - Relocation of Budgetary Reporting Requirements


Requirements: This standard specifies the nature of budgetary disclosures and circumstances for inclusion in the financial statements.

Impact: The standard does not apply to the Company.

AASB 2012-3 - Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities [AASB 132]


Requirements: This standard adds application guidance to AASB 132 to assist with applying some of the offset criteria of the standard.

Impact: There will be no impact to the entity as there are no offsetting arrangements currently in place.

2. Expenses analysis by natureIncluded in the surplus for the period are the following expenses by nature.

2014

$

Depreciation Expense 15,624

Employee Benefit Expense 1,342,774

3. Cash and cash equivalents

2014

$

Cash at bank and in hand 502,881

4. Trade and other receivables

CURRENT

2014

$

Trade receivables 194,793

TOTAL CURRENT TRADE AND OTHER RECEIVABLES

194,793

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements.

5. Inventories

CURRENT

2014

$

At cost: Merchandise

39,919

TOTAL CURRENT INVENTORIES 39,919

Annual Report : 31

6. Property, plant and equipment

2014

$

Plant and equipment At cost:

60,834

Accumulated depreciation (15,624)

TOTAL PROPERTY, PLANT AND EQUIPMENT

45,210

6. (a) Movements in carrying amounts of property, plant and equipment

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial period: property, plant and equipment as there are no offsetting arrangements currently in place.

PERIOD ENDED 30 JUNE 2014

Retained Earnings

$

Total

$

Additions 60,834 60,834

Depreciation expense (15,624) (15,624)

BALANCE AT 30 JUNE 2014 45,210 45,210

7. Other nonfinancial assets

CURRENT

2014

$

Prepayments 34,383

8. Trade and other payables

CURRENT

2014

$

UNSECURED LIABILITIES

Trade payables 188,702

Employee benefits 77,098

Sundry payables and accrued expenses 57,345

Other payables 1,540

TRADE AND OTHER PAYABLES 324,685

All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value.

9. Other financial liabilities

CURRENT

2014

$

Deferred income 239,691

10. Employee Benefits

NON-CURRENT LIABILITIES

2014

$

Long service leave 34,323

11.Remuneration of Auditors

2014

$

Remuneration of the auditor of the Company, Queensland Audit Office, for: - auditing or reviewing the financial report

16,500

12. ContingenciesIn the opinion of the Directors, the Company did not have any contingencies at 30 June 2014.

32 : Annual Report


13. Cash flow information(a) Reconciliation of result for the year to cashflows from operating activities.

Reconciliation of net income to net cash provided by operating activities:

2014

$

Surplus for the year 207,699

Cash flows excluded from profit attributable to operating activities

Noncash flows in profit:

- depreciation 15,624

Changes in assets and liabilities

- increase)/decrease in trade and other receivables

(194,793)

- (increase)/decrease in prepayments 34,383)

- (increase)/decrease in inventories (39,919)

- increase/(decrease) in trade and other payables

335,473

- increase/(decrease) in provisions 34,324

- increase/(decrease) in other liabilities 239,690

CASHFLOW FROM OPERATIONS 563,715

14. Events occurring after the Reporting DateNo matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.

15. Company DetailsThe registered office of the company is:

Fraser Coast Opportunities Ltd 77 Tavistock Street TORQUAY QLD 4655

The primary place of business of the company is:Fraser Coast Opportunities Ltd 166 Old Maryborough Road PIALBA QLD 4655

Directors’ Declaration:

The directors of the Company declare that:As detailed in note 1 to the financial statements, the company is not a reporting entity because in the opinion of the directors there are unlikely to exist users of the financial report who are unable to command the preparation of reports tailored so as to satisfy specifically all of their information needs. Accordingly, this ‘special purpose financial report’ has been prepared to satisfy the directors’ reporting requirements under the Corporations Act 2001.

The directors declare that:

(a) in the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and

(b) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the company.

Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001.

On behalf of the Directors

Director:

Gerard Daniel O’Connell

Director:

Paul Eugene Cotton AM

Dated this day of Monday 3 November 2014

Annual Report : 33

Independent Audit Report to the members of Fraser Coast Opportunities Ltd

To the Members of Fraser Coast Opportunities Ltd

Report on the Financial ReportI have audited the accompanying financial report, being a special purpose financial report of Fraser Coast Opportunities Ltd, which comprises the statement of financial position as at 30 June 2014, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the period then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 the financial report is appropriate to meet the requirements of the Corporations Act 2001 and is appropriate to meet the needs of the members. The directors’ responsibility also includes such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

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

Independence

The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-

General is the auditor of all Queensland public sector entities and can be removed only by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.

In conducting the audit the independence requirements of the Corporations Act 2001 have been complied with. I confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Fraser Coast Opportunities Ltd, would be in the same terms if given to the directors as at the time of the auditor’s report.

Opinion

In my opinion, the financial report of Fraser Coast Opportunities Ltd is in accordance with the Corporations Act 2001, including-

(a) giving a true and fair view of the company’s financial position as at 30 June 2014 and of its performance for the period ended on that date; and ·

(b) complying with Australian Accounting Standards to the extent described in Note 1 and the Corporations Regulations 2001.

Emphasis of Matter - Basis of Accounting

Without modifying my opinion, attention is drawn to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors’ financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose.

Other Matters - Electronic Presentation of the Audited Financial ReportThose viewing an electronic presentation of these financial statements should note that audit does not provide assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited

Signed:

P J Flemming CPA (as Delegate of the Auditor-General of Queensland)

Queensland Audit Office Brisbane

34 : Annual Report

36 : Annual Report

PO Box 488, Hervey Bay Q 4655t 07 4191 2600 www.frasercoastopportunities.com.au

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