local land services 2014 annual report...local land services annual report 2 the hon. katrina...

ANNUAL REPORT 1 January 2014 - 30 June 2014

Local Land Services Annual Report

Published by the Local Land Services

First published February 2015

ISBN

More information

James Lawrence

Acting Chief Financial Officer

www.lls.nsw.gov.au

Acknowledgments

NSW Department of Trade and Investment

NSW Office of Environment and Heritage

NSW Department of Primary Industries

Disclaimer

The information contained in this publication is based on knowledge and understanding at the time of the report January 2014 to June 2014. However, users are reminded of the need to ensure that information upon which they rely is up to date and to check currency of the information with the appropriate officer of Local Land Services or the user’s independent adviser.

© State of New South Wales through Local Land Services 2015.


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The Hon. Katrina Hodgkinson MP Minister for Primary Industries GPO Box 5341 Sydney NSW 2001

Dear Minister

Local Land Services

Annual Report 2013-2014

I am pleased to present the Local Land Services Annual Report (the report) for the first six months of operation; from 1 January 2014 to 30 June 2014.

The report is submitted to the Minister for Primary Industries for presentation to Parliament.

The report has been prepared under Part 2, Division 3, Section 23 of the Local Land Services Act 2013, in accordance with the Annual Reports (Statutory Bodies) Act 1984.

The report was due for lodgment by 31 October 2014. As foreshadowed in our previous correspondence in October 2014, the late receipt of information from external parties along with extended processes to validate the value of Travelling Stock Routes has delayed the completion of the statutory financial statements and audit and our ability to lodge the report in accordance with the required time frame.

Work is already underway to ensure that our reporting requirements are met for the 2014/15 financial year.

Local Land Services was launched by the NSW Government as one of the largest reforms of agricultural services since the 1940s. Local Land Services brought together a wealth of technical and advisory knowledge from parts of the Department of Primary Industries, the Livestock Health and Pest Authorities and the Catchment Management Authorities into a modern and flexible model for service delivery. Local Land Services has been designed by farmers and landscape managers for future service delivery.

Since January 2014, farmers and land managers have been able to access integrated services and advice from Local Land Services across New South Wales. Local Land Services will make it easier for farmers and land managers to access advice, to improve agricultural productivity, to manage plant and animal pests and diseases, to prepare for and respond to emergencies and natural disasters and to deliver local natural resource management programs.

The eleven (11) Local Land Services regions, led by their local boards, are working with their communities to deliver services that add value to regional economies and landscapes. Regional decision making and accountability of these local boards demonstrates to land managers and stakeholders a critical part of the structure of Local Land Services.

Much of the first six months of operation has been focused on building the business foundation and ensuring that Local Land Services in each region has the capacity and ability to progressively meet the expectations of its creators and its stakeholders.

The first six months has not been without its difficulties but Local Land Services has made substantial progress. Our key achievements are set out in the Key Achievements section of this report.

The Local Land Services Board of Chairs, through our regional boards will continue to improve our systems and service delivery in order to support vibrant communities in productive healthy landscapes.

Yours Sincerely

John Macarthur-Stanham

Chair

Local Land Services Board of Chairs


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Principle Offices of Local Land Services

LLS

Principle Office Address Principle Office

Phone Email & Website

Executive Support Unit 13/36 Darling Street (PO Box 2105) Dubbo NSW 2830

(02) 6881 3400 www.lls.nsw.gov.au

Central Tablelands 30 Lynch Street Cowra NSW 2794

(02) 6341 9300 www.centraltablelands.lls.nsw.gov.au [email protected]

Central West 96 Victoria Street (PO Box 6082) Dubbo NSW 2830

(02) 6882 2133 www.centralwest.lls.nsw.gov.au [email protected]

Greater Sydney Level 4, 2-6 Station Street Penrith NSW 2750

(02) 4725 3050 www.greatersydney.lls.nsw.gov.au [email protected]

Hunter 816 Tocal Road Paterson NSW 2421 (02) 4930 1030

www.hunter.lls.nsw.gov.au [email protected]

Murray 394 Hay Road Deniliquin NSW 2710 (03) 5881 1055

www.murray.lls.nsw.gov.au [email protected]

North Coast 49 Victoria Street (PO Box 618) Grafton NSW 2460

(02) 6642 0622 www.northcoast.lls.nsw.gov.au [email protected]

Northern Tablelands 15 Vivian Street (PO Box 411) Inverell NSW 2360

(02) 6728 8020 www.northerntablelands.lls.nsw.gov.au [email protected]

North West 101 Barwan Street Narrabri NSW 2390 (02) 6792 2533

www.northwest.lls.nsw.gov.au [email protected]

Riverina 17 Trail Street (PO Box 513) Wagga Wagga NSW 2650

(02) 6923 0900 www.riverina.lls.nsw.gov.au [email protected]

South East Level 1, 84 Crown Street Wollongong NSW 2520 (02) 4224 9700

www.southeast.lls.nsw.gov.au [email protected]

Western 32 Enterprise Way Buronga NSW 2739

(03) 5021 9460 www.western.lls.nsw.gov.au [email protected]


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Contents

1. About Local Land Services ........................................................................................................ 5

2. Governance of Local Land Services .......................................................................................... 7

3. Senior Staff at Local Land Services .......................................................................................... 8

4. Key Achievements .................................................................................................................... 11

5. Appendices ............................................................................................................................... 14


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1. About Local Land Services Local Land Services (LLS) brings together agricultural production advice, biosecurity, natural resource management and emergency management into a single organisation. Eleven LLS regions, managed by 11 local boards cover NSW: Central Tablelands, Central West, Greater Sydney, Hunter, Murray, North Coast, Northern Tablelands, North West, Riverina, South East and Western regions.

Each Region is accountable for delivering services that add value to local industries, enhance natural resources, protect industries from pests and disease and help communities respond to emergencies like flood, fire and drought.

Local boards headed by local chairs work closely with farmers, landholders and communities. Each region will develop operational management plans that will prioritise service delivery on a regional basis, reflecting regional priorities.

All the local Chairs together form the LLS Board of Chairs. The LLS Board of Chairs is led by the LLS Chair of the Board of Chairs, John Macarthur-Stanham.

Local Land Services boards are accountable for:

• administering and delivering local land services • developing and implementing appropriate governance arrangements for the delivery of local land services • preparing a state strategic plan and local strategic plans • providing and facilitating education and training in connection with agricultural production, biosecurity,

natural resource management and emergency management • making and managing levy rates, levies and contributions on rateable and other land • providing and administering grants, loans, subsidies or other financial assistance for local land services • communicating, consulting and engaging with the community, including the Aboriginal community, to

encourage participation in the delivery of local land services.

The Regions and the Board of Chairs are supported by a small Executive Support Unit (ESU) located primarily at Dubbo. The ESU seeks to provide LLS with operational leverage and administrative and policy consistency, while respecting Regional decision making and accountability.

Organisational Chart


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Figure 1: Map of Local Land Services regions

Funding Sources


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2. Governance of Local Land Services

LLS CHAIR MEMBER

BOARD MEMBER

BOARD MEMBER

BOARD MEMBER

BOARD MEMBER

BOARD MEMBER

BOARD MEMBER

BOARD MEMBER

BOARD MEMBER

Central Tablelands

Ian Armstrong

Bruce Gordon

Pippinella Job

Reg Kidd John Lowe Ian Rogan John Seaman

Central West Tom Gavel Greg Matthews

Bob Freebairn

Jenny Bradley

Susan Madden

Ian Donges Don Schieb

Greater Sydney

Terry Charlton

Nigel Milan Robert Webster

David Palmer

Matthew Collins

Ian McDougall

Peter Trahar

Hunter Susan Hooke Ted Laurie Tony

Hegarty Daryl Dutton

Peter Bishop Jnr

Ron Campbell

Murray Alex Anthony

David Wolfenden

Jennie Hehir

Richard Bull

Terry Gorman

Graham Allitt

Ken Crossley

North Coast Kent Lee Trevor Wilson

Janine Reed

Mark Bulley

Thomas Amey

Thomas Cooper

Neil Summerville

Northern Tablelands

Hans Hietbrink

Leanne Savage

Grahame Marriott

Maria Woods

Ross King David Worsley

Tim Norton

North West Conrad Bolton

Anthony Haggarty

Richard Clark

Ms Elizabeth Guest

Phillip Kirkby

Ms Penelope Blatchford

Mark Evans

Riverina Sam Archer Barney Hyams

Julie Briggs

John Davey Ian Auldist Helen

Dalton Peter Speirs

South East David Mitchell

Stuart Burge Ian Denney

Kenneth Garner

Barry Gay Christopher Shannon

Mac Wilson

Western Thomas Hynes Ben Barlow Jim

Maynard Justin McClure

Marie Russell Sally Bright Neill Leigo

Andrew Mosely

Robert Wason


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3. Senior Staff at Local Land Services

LLS General Manager

Program Manager

Manager of Strategic

Planning & Partnerships

Program Manager

Business & Finance Manager

Manager of Biosecurity

Central Tablelands

Name Peter Sparkes Richard Carter Ian Shepherd Ian Cameron Vacant

Location Cowra Orange Cowra Forbes

Qualification DippAppScAg, Dip Education

DippAppScAg, GDAg, Dip AgEc, MBA

B. Bus B. Comm, CPA

Central West

Name Laurie Dwyer Deb Bate Jane Chrystal Chris Ambler Andrew Mulligan

Location Dubbo Forbes Wellington Dubbo Wellington

Qualification

B. Env. Sci. B. of Sci, Hons (Microbiology and Ecology), PhD in Bio, Master of Commerce (Economics and Org Behaviour) Post Grad Cert in Public Sector Mgmt

B. of Arts, Hons (Geography and Economics), Post Grad Cert in Education

Dip Conservation Land Mgmt, AdvDip Public Safety Emergency Mgmt (Biosecurity)

Greater Sydney

Name Mike Keegan Neville Pavan Robert Adam Sharon Elliott Matthew Ball

Location Penrith Penrith Goulburn Goulburn Penrith

Qualification

B. Ag Engineering

DippAppScAg, Grad Dip in Environmental Mgmt, Master of Mgmt

B. of Sci (Agriculture)

B. Financial Administration, (BFA) Member Australian Institute of Company Directors (MAICD)

B. of Veterinary Science, Grad Dip of Education

Hunter

Name Brett Miners Callaghan

Cotter Team Co-ord Partnerships Joe Thompson

Glenn Lyons Sarah Wallace Jane Edwards

Location Paterson Paterson Paterson Paterson Taree Paterson

Qualification BSc (Hons) B. Natural Resources

B. Bus

North Coast

Name Bruce Brown Nicole Strehling

Royce Bennett Grant Lewis Jo McGoldrick

Location Coffs Habour Kempsey Coffs Harbour Coffs Harbour Kempsey

Qualification

B. Ag. Ec (Hons), Dip. of Agriculture (Hons)

B. of Marine Resources

B. of Natural Resource Mgmt

Dip of Gov (Financial Mgmt), Dip. Project Mgmt, Dip. of Mgmt

B. of Social Science, GradCert in Bus Admin

Northern Tablelands

Name Paul Hutchings Liz Blair Annabel Sides Melissa McLeod

Location Inverell Inverell Inverell Glen Innes

Qualification

B. Sci, Grad. Dip. Nat. Res.

B. Nat. Res. Dip. Ed. Adv. Dip. Proj. Mgmt.

B. Bus. B. Bus. (Mgmt/Mkting) Hons Grad. Cert. Public Pol. & Governance


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LLS General Manager

Program Manager



Program Manager



North West

Name Ken Flower Matthew

Davidson James Hutchinson-Smith

Samantha Moss Shaun Slattery

Location Narrabri Tamworth Tamworth Tamworth Narrabri

Qualification

B. (Civil), Engineer Water Supply Vic, CE (Municipal Engineer Vic), Grad Dip Bus, MBA, Postgrad in Cotton Production (UNE)

B. of Natural Resources (Hons) Masters of Business Admin

B. of Applied Science in Agriculture

Certified Practicing Accountant

B. of Veterinary Science, AdvDipl. of Public Safety

Murray

Name Gary Rodda Helen Wilson Chris Cumming Colin McMahon

Geoff Corboy

Location Deniliquin

Albury Albury Denililquin Deniliquin

Qualification

B.For.Sci (Hons)

B.Ag.Sci. (Hons) M.App.Sc. (Ag & Rural Extension)

B.Sc.(Hons) B.Bus.

South East

Name Gavin Whiteley Christopher Presland

Teresa Hughes Daniel Shaw

Location Bungendore Nowra Wollongong Berry

Qualification

B. Ag.Ec. (Hons), AssDip. Farm Mgmt, Certified Practicing Accountant, Fellow of Australian Institute of Company Directors, Fellow of the Australian Rural Leadership Foundation, Justice of the Peace (NSW)

B. Business Master of Commerce (Accounting)

Dip. Public Safety (Emergency Mgmt), Cert IV Gov (Statutory Compliance), Cert IV Gov (Investigation & Prosecution), Cert IV Ag, Cert IV Workplace Safety, Dip. Aviation (Aeronautics), AdvDip. (Engineering, Metal Fabrication / Structure)

Riverina

Name Rob Kelly Michael Dunn Lilian Parker Wayne Maybury Ray Willis

Location Griffith Wagga Wagga Wagga Wagga

Qualification B.Sc (Hons), GAICD

B.App.Sc (Ag) B.Sc, Grad Dip Arts, GAIDC

Grad in Prof .Acc., JP, FIPA

B.App.Sc (Env)

Western

Name Robert Gregory Russell Grant Erlina Compton

(Acting) Leigh Pyke (Acting)

Jacinta Knudsen (Acting)

David Creeper

Location Buronga Cobar Dubbo Buronga Buronga Cobar


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LLS General Manager

Program Manager



Program Manager



Qualification

B. of Arts (Environmental Studies & Geography)

B. of Ag Science (Hon), Master of Geoscience, GradCert Public Sector Mgmt

B. of Applied Science (Protected Area Mgmt), Doctor of Philosophy (Rural Sociology)

Dip. Conservation & Land Mgmt

B. Science, Master of Bus Admin

Dip. Agriculture, Dip. Agriculture Technology

LLS Chair

Board of Chairs Executive Manager

Chief Financial Officer & Director

Business Improvement

Manager Executive Projects

Director Policy, Relationships &

Strategy

Executive Support Unit

Name John Macarthur-Stanham

Tim Ferraro James Lawrence Tim Johnston Jessica Brown

Location Sydney Dubbo Orange Dubbo Dubbo

Qualification BEc. MBA

B. App. Sci MBA (Strategic Mgt)

B. Bus BA (Comms) GAICD


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4. Key Achievements

Manage Weeds And Pests

Measure Achieved

Area (ha) of pest plant control measures implemented 42,505

Area (ha) of pest animal control (vertebrates) measures implemented 448,522

Protect And Conserve Land, Biodiversity And Native Vegetation

Measure Achieved

Number of conservation covenants or other agreements attached to title negotiated 100

Area (ha) protected 12,501

Number of voluntary conservation agreements negotiated 621

Area (ha) protected 457,702

Area (ha) of terrestrial native vegetation enhanced/rehabilitated 230,488

Area (ha) of terrestrial native vegetation protected by fencing 121,080

Area (ha) planted to terrestrial native species 3,189

Area (ha) of land treated and/or protected from soil erosion by engineering works 382

Area (ha) of soil treatment for other than erosion or acid sulphate soils 677

Area (ha) of land managed for sustainable grazing 135,294

Increase The Devolution Of Decision Making, Funding And Control To Groups And Individuals For Local Environmental And Community Activities, Including Catchment Management And Landcare

Measure Achieved

Community involvement

Number of awareness raising events such as demonstrations, field days or study tours conducted 649

Number of participants who attend ed in days 33,688

Number of written products such as brochures, newsletters, posters or fact sheets developed 8,086

Estimated number of recipients 198,653

Number of training sessions, workshops, seminars or other skills and training events conducted 663

Number of participants in person in days 12,072

Community Support


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Protect Rivers, Wetlands And Coastal Environments

Measure Achieved

Rivers

Area (ha) of riparian native vegetation protected by fencing 1,785

Streambank length (km) of riparian vegetation protected 206

Area (ha) planted to riparian native species 659

Number of stream bank engineering works 95

Length (m) of stream bed stabilised 12,842

Number of stream bed stabilisation sites 36

Number of off-stream (alternative) watering sites installed 218

Length (km) of streambank protected from stock 208

Wetlands

Area (ha) of wetland native vegetation protected by fencing 228

Area (ha) of wetland native vegetation enhanced/rehabilitated 1,221

Area (ha) planted to wetland native species 46

Coastal

Area (ha) of coastal native vegetation enhanced/rehabilitated 854

Emergency Animal Diseases

Measure Achieved

At least 87 cattle and 149 sheep brains submitted and examined for Transmissible Spongiform Encephalopathy (TSE) annually

Cattle 14 Sheep 50

At risk properties inspected for swill feeding

NSW LLS staff emergency ready – trained and available

193 NSW DPI and LLS staff attended Introduction to Emergency Management and Emergency Management Applied Training

Number of community groups OR projects assisted 1,203

Number of activities undertaken to support community groups 201


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Surveillance

Measure Achieved

300 saleyard inspections per annum by regional LLS staff 355

10 industry liaison group meetings per annum 20

Animal Welfare

Measure Achieved

LLS staff ready, willing and able to respond appropriately to a livestock transport accident and assist authorities in management of the incident Achieved

Disease Control

Measure Achieved

Sale yards monitored and appropriate regulatory action taken in response to any detected non-compliance in accordance with BJD policy and procedures Achieved

Residues And Zoonoses

Measure Achieved

Appropriate response occurs within 2 working days of notification of significant disease in wildlife Achieved

All properties where organochlorine residue contamination is deemed to be a risk to grazing animals have property management plans that meet the national organochlorine residue monitoring program Achieved

General Figures

164 foot rot investigations carried out

1, 838 property visits undertaken

2, 389 general consultations – including phone calls, over the counter, individual communications

10 piggery inspections for swill feeding

Certification is carried out to ensure livestock are healthy when being sold, exported or moved interstate. During the timeframe LLS has issued: • 444 export certificates • 71 interstate movement certificates • 44 certificates for shows and sales.

LLS staff have been involved or managed 27 field day events

Distributed 44 livestock health media releases in the forms of bulletins, newsletters, press releases, radio and web based forms

5 Agriculture natural disaster declarations 1st Jan- June; all bushfires • Cullendore Road, 21-22 Jan, Tenterfield LGA • Gowrie Gum Flat 31 Jan, Inverell LGA • Wagga Lockhart and other LGAs 18 Jan • Bathurst and Oberon 18 Jan • Gundagai, Tumut, Tumbarumba 18 Jan


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5. Appendices

A. Board Attendees B. Funds Granted to Non-Government Community Organisations C. Research and Development D. Human Resources E. Consultants F. Equal Employment Opportunity G. Consumer Response H. Payment of Accounts I. Work Health and Safety J. Performance and Number of Executive Officers K. GIPAA L. Credit Card Certification M. Multicultural Policies and Services Program (Formerly EAPS) N. Waste O. Internal Audit and Risk Management Policy Attestation P. Risk Management and Insurance Activities Q. Audited Financial Statements


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A. Board Attendees

LLS Name of Board Member Number of Possible Meetings Number of Meetings Attended

Central Tablelands

Ian Armstrong 5 5

Bruce Gordon 3 2

Pip Job 5 5

Reg Kidd 5 5

John Lowe 3 3

Ian Rogan 5 5

John Seaman 3 3

Central West

Tom Gavel 5 5

Don Schieb 2 1

Greg Matthews 5 5

Jenny Bradley 2 2

Bob Freebairn 5 5

Susan Madden 2 2

Ian Donges 2 2

Greater Sydney

Terry Charlton 6 6

Nigel Milan 6 6

Robert Webster 6 4

David Palmer 6 6

Peter Trahar 3 3

Matthew Collins 3 3

Ian McDougall 3 3

Hunter

Susan Hooke 3 2

Ted Laurie 3 3

James Clark 3 1

Darryl Dutton 3 2

Peter Bishop Jnr 2 2

Ron Campbell 2 2

Tony Hegarty 2 2

Murray

Alex Anthony 6 6

David Wolfenden 6 6

Richard Bull 6 6

Graham Allitt 4 4

Ken Crossley 4 4

Terry Gorman 4 4

Jennie Hehir 6 6


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North Coast

Kent Lee 1 1

Trevor Wilson 4 4

Janine Reed 4 2

Mark Bulley 4 4

Tom Amey 3 3

Tom Cooper 2 2

Neil Summerville 3 1

Northern Tablelands

Hans Hietbrink 6 6

Leanne Savage 6 6

Grahame Marriott 6 6

Maria Woods 6 5

Ross King 4 4

David Worsley 4 4

Tim Norton 4 4

North West

Conrad Bolton 4 4

Tony Haggarty 4 4

Richard Clark 4 4

Libby Guest 4 4

Phil Kirkby 3 3

Penny Blatchford 3 3

Mark Evans 3 3

South East

David Mitchell 6 6

Stuart Burge 3 2

Ian Denney 6 6

Kenneth Garner 6 6

Barry Gay 3 3

Chris Shannon 6 6

Mac Wilson 3 3

Riverina

Sam Archer 6 6

Ian Auldist 6 6

Peter Speirs 4 4

Helen Dalton 4 4

John Davey 4 4

Julie Briggs 6 6

Barney Hyams 6 5

Andrew Mosely 3 3

Tom Hynes 4 4


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Western

Ben Barlow 4 3

Jim Maynard 4 4

Justin McClure 4 4

Marie Russell 4 4

Sally Bright 3 3

Neill Leigo 3 3

Robert Wason 3 3


Board of Chairs

John Macarthur-Stanham 7 6

Ian Armstrong 7 5

Tom Gavel 7 7

Terry Charlton 7 5

Susan Hooke 7 7

Alex Anthony 7 7

Kent Lee 7 7

Hans Hietbrink 7 6

Conrad Bolton 7 6

Sam Archer 7 5

David Mitchell 7 5

Tom Hynes 7 6


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B. Funds Granted to Non-Government Community Organisations

LLS Name of Organisation Amount of Grant ($)

Nature & Purpose of Program

Central Tablelands

Central West Lachlan Landcare 505 Capacity building

Weddin Landcare 23,100 Re-vegetation

Lach Landcare 75,000 Engagement

Cowra Showground Trust 4,621 Riparian restoration

Central West

Bogan River Carp Muster Inc 2,000 Community carp muster event

Central Tablelands Landcare Inc Orange/ Bathurst Landcare district

10,000 Training and education regarding climate change

Central Tablelands Landcare Inc Orange/ Bathurst Landcare district

11,075 Community education and support

Central West Lachlan Landcare Inc 2,200 Small Grant Field Day

Central West Lachlan Landcare Inc 2,025 Community education and support

Condobolin & Districts Landcare Management Committee


Dunedoo Area Community Group Inc 4,050 Community education and support

Dunedoo Urban Landcare Group Inc 5,000 Training and education regarding climate change

Little River Landcare Group Inc 5,000 Training and education regarding climate change

Little River Landcare Group Inc 24,050 Community education and support

Macquarie Valley Landcare Group Inc t/a Macquarie 2100


Macquarie Valley Landcare Group Inc 6,750 Community education and support

Mid Macquarie Landcare t/a Macquarie 21


Mid Macquarie Landcare t/a Macquarie 21

3,024 Landcare Support Project 2nd Milestone

Watershed Landcare Inc 5,000 Training and education regarding climate change

Watershed Landcare Inc 24,050 Community education and support

Weddin Landcare Steering Committee Inc


Greater Sydney

Greening Australia 3,000 Seeding in Capertee Valley

Sydney Weeds 73,000 Weed control, bush regeneration, protecting Aboriginal places

Australian Ecosystems Foundation 20,000 Weed Control

Birdlife Australia 69,000 Regent Honey Eater

Ocean Watch 54,000 Sustainable fisheries

Hunter

The Swamp Landcare Group Inc 6,000 On-ground program to deliver projects for biodiversity, wetlands, soils, riparian, sustainable farming, soil erosion and estuarine works and educational and capacity building activities outcomes

Budgewoi Beach Dune Care Inc 7,760 On-ground program to deliver projects for biodiversity, wetlands, soils, riparian, sustainable farming, soil erosion and estuarine works and educational and capacity building activities outcomes


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Pioneer Dairy Wetlands 8,079 On-ground program to deliver projects for biodiversity, wetlands, soils, riparian, sustainable farming, soil erosion and estuarine works and educational and capacity building activities outcomes

The Wetlands Centre Australia 8,400 On-ground program to deliver projects for biodiversity, wetlands, soils, riparian, sustainable farming, soil erosion and estuarine works and educational and capacity building activities outcomes

Hallidays Point Landcare Group Inc 6,800 On-ground program to deliver projects for biodiversity, wetlands, soils, riparian, sustainable farming, soil erosion and estuarine works and educational and capacity building activities outcomes

Friends of Manning Flood plain Rainforests

10,000 On-ground program to deliver projects for biodiversity, wetlands, soils, riparian, sustainable farming, soil erosion and estuarine works and educational and capacity building activities outcomes

Friends of Manning Flood plain Rainforests


The Manning River Oyster Farmers Association Incorporated


Central Coast Marine Discovery Centre Inc


Manning Landcare Inc 12,020 Program for local government, agencies and non-government organisations such as weeds authorities to deliver on threatened species works, improved stormwater and sewage management and acid sulphate soils management

Tuggerah Lakes Reserve Trust 6,400 Program to help improve the communities’ capacity to undertake sustainable natural resource management projects

Belmont Wetlands State Park Trust 8,000 Program to help improve the communities’ capacity to undertake sustainable natural resource management projects

Take 3 Inc 5,960 Program to help improve the communities’ capacity to undertake sustainable natural resource management projects

WetlandCare Australia 7,000 Program to help improve the communities’ capacity to undertake sustainable natural resource management projects

Maitland Grossmann High School P&C Organisation

9,420 Program to help improve the communities’ capacity to undertake sustainable natural resource management projects

Barrington Beef 10,000 Program to help improve the communities’ capacity to undertake sustainable natural resource management projects

Ocean and Coastal Care Initiatives 9,940 Program to help improve the communities’ capacity to undertake sustainable natural resource management projects

Manning Landcare Incorporated 7,000 Program to help improve the communities’ capacity to undertake sustainable natural resource management projects


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Karuah-Great Lakes Landcare Management Committee


Murrurundi Landcare Tidy Towns Committee


Australian Network for Plant Conservation


Wetland Care Australia - Hunter 11,835 Program to provide funds for community education events and activities, support for community groups, and marine debris education and capacity building

Morriset and Peninsula Sustainable Neighbourhoods Group

1,500 Program to provide funds for community education events and activities, support for community groups, and marine debris education and capacity building

Lisarow High School 1,500 Program to provide funds for community education events and activities, support for community groups, and marine debris education and capacity building

Kincumber Primary School 1,500 Program to provide funds for community education events and activities, support for community groups, and marine debris education and capacity building

Ocean and Coastal Care Initiatives (OCCI)


Australian Rainforest Sanctuary / Forest of Tranquility


Whale Dreamers Festival Group (auspiced by Ocean and Coastal Care Initiative)


Hunter Valley Research Foundation 1,000 Program to provide funds for community education events and activities, support for community groups, and marine debris education and capacity building

Shamrock Hill Early Learning Long Day Care Centre


WetlandCare Australia 2,000 Program to provide funds for community education events and activities, support for community groups, and marine debris education and capacity building

Hinton Public School 1,500 Program to provide funds for community education events and activities, support for community groups, and marine debris education and capacity building

Dungog and Gresford Beef and Livestock Group

500 Program to provide funds for community education events and activities, support for community groups, and marine debris education and capacity building

St Phillips Christian College 1,500 Program to provide funds for community education events and activities, support for community groups, and marine debris education and capacity building

Murray

Murray Darling Association 139,000 Murray Schools Education Program

Murray Darling Freshwater Research Centre

5,000 Regional Landcare facilitator; community engagement & on-ground activities


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Holbrook Landcare Network 180,136 Community engagement & on-ground activities

Corowa Landcare 45,025 Community engagement & on-round activities

Murray Dairy 44,275 Producer group support for NRM/Sustainable Ag

Ricegrowers Assoc of Australia 44,275 Producer groups support for NRM/sustainable Ag

Western Murray Land Improvement Group

42,525 Threatened species conservation – Bush stone-curlew summit

Nature Conservation Working Group 66,250 Community engagement – Friends of Nail Can Hill and website support Ecoportal

Parklands Albury Wodonga 40,000 Community engagement & workshops

Seedsavers Albury Wodonga 10,000 Community engagement & education

Tuppal Food & Fibre Festival 15,000 Yorta Yorta Sandhills project

Yorta Yorta Aboriginal Nation Corporation

219,688 Stakeholder engagement

Yarkuwa Indigenous Knowledge Centre Aboriginal Corporation

5,000 Managing pastures on small areas for equine health

Albury Wodonga Equestrian Centre 4,500 Sustainable agriculture workshop

Mallee Sustainable Farming Inc. 9,400 Erosion management workshop

Tumbarumba Vignerons Association 5,500 Erosion management workshop

North Coast

Bellinger Landcare 54,080 Regional NRM planning and management

Booroongen Djugun 35,500 Aboriginal community support & engagement networks

Brunswick Valley Landcare 31,360 Community capacity building

Clarence Landcare 131,100 Targeted CAP2 implementation / Small Grants Program / Adaptive management

Coffs Coast Bush Regeneration 1,925 Adaptive management

Coffs Harbour Local Aboriginal Land Council

2,380 Green Teams working on country

Coffs Harbour Regional Landcare 128,105 Community Capacity Building / Targeted CAP2 Implementation

Envite 54,180 Targeted CAP2 Implementation / Green Teams working on country

Hastings Landcare 146,580 Targeted CAP2 implementation / Small Grants Program / Adaptive management

Jaliigirr Alliance 25,000 Carbon storage, biodiversity enhancement, environmental resilience, native vegetation establishment and management

Macleay Landcare 46,000 Carbon storage, biodiversity enhancement, environmental resilience, native vegetation establishment and management

Mid North Coast Weed Coordinating Committee

82,500 Targeted CAP2 implementation

Nambucca Valley Landcare 79,300 Targeted CAP2 implementation

Nature Conservation Trust of NSW 22,477 Targeted CAP2 implementation


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Ngulingah Aboriginal Corporation 34,000 Targeted CAP2 implementation

Ngurrula Aboriginal Corporation 138,380 Targeted CAP2 implementation / Green Teams working on country

North Coast Regional Landcare Network

113,750 Community capacity building

Northern Landcare Support Services 110,000 Targeted CAP2 implementation

Northern Rivers Fire and Biodiversity Consortium


OceanWatch Australia 30,720 Targeted CAP2 implementation

Pappinbarra Landholders Conservation Group


Resilience Community of Practice 10,000 Adaptive management

Richmond Landcare Inc 142,500 Community capacity building

Wetland Care 85,000 Targeted CAP2 implementation

Whian Whian Landcare 2,500 Community capacity building

Northern Tablelands

Glen Innes Local Aboriginal Lands Council

34,000 Aboriginal Cultural Heritage 2013-2014 Project - 'The Willows' & "Boorabee' - Indigenous Protected Areas

Granite Borders Landcare 200,000 River and stream restoration and rehabilitation for high priority sub catchments in the 'Granite Country'

Gwymac Inc

12,000 Coordinated aerial pig control program partnership

Northern Inland Weeds Authority 15,000

High Priority Risk Weed Species Tour

Southern New England Landcare 108,030 Improving upland water quality and creating protected links across the greater Malpas catchment of the Guyra Plateau.

Southern New England Landcare 95,060 Building connectivity, protecting and enhancing remnant vegetation and riparian areas on farms in the southern New England region.

North West

New England North West Landcare Network Chairs

36,000 Drought resilient communities partnership.

Winanga Li Aboriginal Child & Family Centre

34,000 Partnership to improve access to country development.

Tamworth Regional Landcare Association

70,000

40,000

Partnership with community to increase adaptive capacity & involvement in NRM Partnership developed to support delivery of TRLA Strategic Plan and shared NW LLS values

Friends of Marsupial Park (Tamworth Regional Council)

7,000 Partnership to improve access to country developed

Friends of Moree Botanical Gardens 4,500 Entrance signs to Carbeen & Rock Garden and educational signs for Semi-Evergreen Vine Thicket Garden

Landcare Australia 71,000 Increase in adaptive capacity of the Catchment community

Upper Gwydir Landcare Association 50,000

40,000

UGLA pest control for Brush Turkey survival Partnership developed to support the delivery of UGLA Strategic Plan and shared NW LLS values

Murrumbidgee Landcare Inc 90,000

Linking landholders with Landcare and Natural Resources Murrumbidgee, Regional Landcare Facilitator (Murrumbidgee RLF)


23



Riverina Coleamballly Landcare Group Incorported, Lake Cowal Foundation Limited, Goldenfields Water, Monash University, Riverina Biosercurity Incorporated, St Anne's Central School, Wiradjuri Aboriginal Corporation, Lockhard and District Ag Bureau Inc, Binalong Landcare, Harden-Murrumburrah Landcare Group, Harden District Rural Advisory Service, Mirrool Creek Landcare Inc, Murray Darling Association, Rice Growers Australia, Western Riverina Arts Inc, Young Landcare

133,093 Increase in community participation in NRM projects through an increase in knowledge and skills, including Community Partnerships Program delivering small grants to community groups across the Murrumbidgee Catchment

Landholders, Tarcutta Landcare Group

328,621 Targets properties to manage ground cover through sub divisional fencing, drought lot feeding facilities and fencing to land capability.

NSW Department of Primary Industries

29,700 To guide adaptation and mitigation actions to address climate change impacts on natural ecosystems

Landholders, Riverina Highlands Landcare Network

889,225 Aims to restore and recover threatened species & endangered ecological communities through re-vegetation conservation managements

Griffith Local Aboriginal Land Council, Leeton Local Aboriginal Land Council, Hay Aboriginal Working Party, Hay Shire Council, Tikandi Innaburra, Charles Sturt University, Wattel Hills mens group

148,391 Protect & enhance items of cultural significance & empower the indigenous community

Melbourne University Commercial 79,020 To investigate & benchmark resource change as a result of our programs.

South East

Australia's Oyster Coast Inc 5,000 Oyster industry support



Bega Coast Oysters Incorporated 5,000 Oyster industry support

Billyrambija Landcare Group Inc 2,200 Landcare support

Boorowa Community Landcare Group Inc

1,000 Landcare support

Boorowa Community Landcare Group Inc


Clyde River Shellfish Quality Assurance Program

37,420 Oyster industry support

Cobowra Local Aboriginal Land Council

3,752 Aboriginal community support

Conservation Volunteers Australia 80,000 Supporting community and landscape resilience



Eden Local Aboriginal Land Council 75,000 Aboriginal community support

Far South Coast Landcare Association





24








855 Landcare support





Frogs Landcare Inc 2,500 Landcare support

Illaroo Farm Mia Mia Properties Incorporated

1,500 Farming industry support for natural resource management

Landcare Illawarra Inc 1,000 Landcare Support

Monaro Farming Systems CMC Inc 19,230 Farming industry support for natural resource management

Pambula Wetlands & Heritage Project Inc

70,000 Wetland protection and conservation

Snowy River Interstate Landcare Committee Incorporated


Snowy River Interstate Landcare Committee Incorporated


South Coast & Highlands Dairy Industry Group

12,300 Dairy industry support

South East Landcare Inc 17,510 Landcare support

The Eden Whale Discovery Centre Research Trust

12,700 Marine protection and conservation

Tuross Community Garden Inc 4,500 Community support

Upper Lachlan Landcare Coordinating Committee Inc


Upper Lachlan Landcare Coordinating Committee Inc


Upper Murrumbidgee Landcare Committee


Western

Barrier Area Rangecare Group 3,295 Training & community events

Bourke's Ain't Caught Nuffin Yet Club Inc

5,000 Training & community events

Wanaaring Pest Management Group Inc

3,619 Assistance to support and build the capacity of regional groups to run Landcare based activities

Tilpa Community Committee Inc 5,000 Assistance to support and build the capacity of regional groups to run Landcare based activities

Western Landcare NSW Inc 5,000 Assistance to support and build the capacity of regional groups to run Landcare based activities

Barrier Area Rangecare Group 5,000 Assistance to support and build the capacity of regional groups to run Landcare based activities

Mallee Sustainable Farming 75,000 Development of farmer groups including undertaking field trials for sustainable farming outcomes


25

C. Research and Development

LLS Name of Organisation Name of Project

Central Tablelands

Nil Nil

Central West Partnership with Zoetis (formerly Pfizer) Leptospirosis Surveillance Research Project

Greater Sydney

Nil Nil

Hunter

Department of Primary Industries Mapping Mooring Scours in Posidonia

Department of Primary Industries Fertiliser Use Efficiency on High Input Dairy Pastures

Agricultural Information and Monitoring Services Monitoring Upper Manning Grazing

Department of Primary Industries Mapping Sensitive Sub-tidal Estuarine Habitats

Tangaroa Blue Foundation Marine Debris Monitoring Program

Murray

Australian National University Biodiversity Monitoring Project of Soutth West Slopes and Riverina Bioregions

Charles Sturt University & Department Primary Industries

Long Term Soil Condition Monitoring

Murray Darling Freshwater Research Centre Edward Wakool River System Environmental Flow Monitoring of Fish and Water Quality

University of Canberra Wetland Carbon Storage Project Monitoring

Instinct & Reason Market Research Social Resource Condition Monitoring Project of Landholders and Aboriginal Communities

Instinct & Reason Market Research Murray Customer Research Project into awareness, perceptions and satisfaction with Murray LLS

Arthur Rylah & Landcare Aquatic Monitoring Project

Murray LLS Landholder On-ground Works Monitoring Vegetation Condition, Groundcover, Soil Condition and Birds

North Coast University of New England Support for ongoing Ecohealth & Fishtrack Monitoring

Department of Primary Industries Monitoring Seasonal Distributions and Movements of Key Fish Species of the Clarence River

Northern Tablelands

University of New England Spatial Analysis for Climate Change

Environment & Behaviour Consultants Defining and Managing Community Expectations for the Northern Tablelands LLS

Australian Landcare Management System Ltd Certified Land Management in the Northern Tablelands Local Land Services Region 2014

North West

Ecological Australia Pty ltd Construction of a Vegetation Map for the NW LLS Region – Extent and Pre-European Distribution of Regional Vegetation Communities

Capeability Consultants Pty Ltd Knowledge Harvest and So What Analysis

Riverina

Australian National University Biodiversity Collaboration in the Riverina LLS Region

Australian National University Biological Soil Crusts in the Riverina LLS Region

NSW Office of Environment and Heritage DustWatch in the Riverina LLS Region

3D-AG Pty Ltd Whole Farm Assessment of Soil Organic Carbon across the Riverina

Roberts Evaluation Pty Ltd Literature Review of Biodiversity and Sustainable Agricultural Activities

DPI Fisheries & Riverina LLS Adjungbilly Macquarie Perch Surveying and Benchmarking

Rice Growers Association & Riverina LLS Australasian Bitterns in Rice

Yalgogrin Mallee Fowl Group & Riverina LLS Yalgogrin Mallee Fowl Project


26

LLS Name of Organisation Name of Project

NSW Office of Environment and Heritage & Riverina LLS

Adjungbilly, a valued Catchment – Booroolong Frog Project

Meat and Livestock Australia, DPI & Riverina LLS Tropical Grass Trials

South East

Binalong Landcare, NSW DPI and South East Local Land Services

Native Pasture & Alternative Fertiliser Trial

South East Local Land Services Crookwell Grazing Demonstration

SELLS, FSC Landcare Association, FSC Farmers Network, Springvale Landcare. As well there is collaboration with Queensland University of Technology and University of Wollongong

Weed Management in Native Pasture

Macquarie University and Department of Primary Industries

Green Crab Research - Genetic Structure of Carcinus Maenas in Southeast Australia

University of New England Connectivity Modelling to Build Landscape Integrity for Biodiversity Conservation and Carbon Sequestration Activities

NSW Department of Primary Industries Impact of Regional Corridor Plantings on Water Quality

Wetlandcare Australia Wetlands Mapping for South East LLS

Eco Logical Australia Vegetation Mapping for South East LLS

Office of Environment and Heritage Macro Invertebrate Sampling and Riparian Condition

South Coast Oyster Growers Sustainable Oyster Assessment Program

Eden Local Aboriginal Land Council Yam Trials – A trial site within Mountain Top travelling stock route to conduct a range of experiments to determine impact of various land use pressures on traditional Yam fields.

Local Brinja Yuin Women Aboriginal Plants for the Far South Coast

Western

NSW Trade & Investment (DPI) Linking Groundcover to Drought Policy Reform

GHD Pty Ltd Monitoring of Reserves

Jennifer Hale Monitoring of Investment in Riparian Zones

GHD Pty Ltd Detailed Data Analysis of Reserve Monitoring Sites

Mallee Family Care Inc Supply of Spatial Data and Updated Irrigated Horticulture Report

Sunraysia Environmental Native Foods, Herbs & Spices

Office of Environment & Heritage Southern Dust Watch & Roadside Survey


27

D. Human Resources

LLS Number and

% Permanent Full Time

Permanent Part Time

Secondees Full time

Temporary Full time

Temporary Part Time

TOTAL Male Female

Central Tablelands

Number 37 5 0 14 2 58 36 22

Percentage 64% 9% 0% 24% 3% 7% 62% 38%

Central West Number 47 10 0 21 5 83 34 49

Percentage 57% 12% 0% 25% 6% 11% 41% 59%

Greater Sydney

Number 27 2 0 14 12 55 22 33

Percentage 49% 4% 0% 25% 22% 7% 40% 60%

Hunter Number 30 10 0 14 8 62 26 36

Percentage 48% 16% 0% 23% 13% 8% 42% 58%

Murray Number 35 3 0 19 8 65 30 35

Percentage 54% 5% 0% 29% 12% 8% 46% 54%

North Coast Number 41 9 0 13 5 68 35 33

Percentage 60% 13% 0% 19% 7% 9% 51% 49%

Northern Tablelands

Number 35 7 0 9 6 57 32 25

Percentage 61% 12% 0% 16% 11% 7% 56% 44%

North West Number 39 10 0 15 6 70 37 33

Percentage 56% 14% 0% 21% 9% 9% 53% 47%

Riverina Number 47 9 0 17 5 78 39 39

Percentage 60% 12% 0% 22% 6% 10% 50% 50%

South East Number 66 11 0 31 20 128 64 64

Percentage 52% 9% 0% 24% 16% 16% 50% 50%

Western Number 24 9 0 15 3 51 22 29

Percentage 47% 18% 0% 29% 6% 6% 43% 57%

ESU Number 4 1 0 4 1 10 4 6

Percentage 40% 10% 0% 40% 10% 1% 40% 60%

TOTAL Number 432 86 0 186 81 785 381 404

TOTAL Percentage 55% 11% 0% 24% 10% 100% 49% 51%


28

E. Consultants

LLS Consultants OVER 50,000 Consultants UNDER 50,000

Name of consultant Title of project Name of consultant Title of project

Central Tablelands Nil Nil Nil Nil

Central West Nil Nil Nil Nil

Greater Sydney Nil Nil Nil Nil

Hunter Nil Nil Nil Nil

Murray Nil Nil Nil Nil

North Coast Nil Nil Nil Nil

Northern Tablelands Nil Nil Nil Nil

North West Nil Nil Nil Nil

Riverina Nil Nil

People Mastery Recruitment

Roberts Evaluation Monitoring & Evaluation

Positivity Institute Change Management & Coaching

South East Nil Nil Nil Nil

Western Nil Nil Nil Nil


29

F. Equal Employment Opportunity

LLS Women Aboriginal People &

Torres Straight Islanders

People with a Disability

People with a Disability Requiring

Work Related Adjustment

Central Tablelands 2014 38% 1.7% 1.7% 0%

Central West 2014

59% 2.5% 0% 0%

Greater Sydney 2014

60% 4% 0% 0%

Hunter 2014

58% 3% 0% 0%

Murray 2014

54% 4.5% 0% 0%

North Coast 2014

49% 3% 0% 0%

Northern Tablelands

2014 44% 3.3% 1.7% 0%

North West 2014

47% 1.5% 0% 0%

Riverina 2014

50% 2% 0% 0%

South East 2014

50% 2% 0% 0%

Western 2014

57% 6% 0% 0%


30

G. Consumer Response

LLS Extent and Main Features of Complaints Services Improved/Changed in Response to Complaints

Central Tablelands Accuracy of information held by LLS Additional controls implemented to ensure accuracy of data

Central West Nil

Greater Sydney Payment of levies on rates when no stock owned Increasing landholder understanding of the importance of completing Annual Stock Returns by the due date to avoid having the levies charged

Hunter Dissatisfaction with speed of processing application to travel stock

Closer links have been developed with Shire Councils to streamline the approval process for walking stock along Shire Roads

A number of concerns about overgrazing of Travelling Stock Reserves

Permit holders are reminded of their obligations under the permit conditions to ensure pasture is not over grazed. Ongoing education in pastures management forms part of LLS’ extension activities

Complaint about only having one vote when owners have multiple holdings

Feedback in response to the election process was provided to LLS Board of Chairs

Incorrect enrolment of one family member Election enrolments were managed centrally, and in accordance with the LLS Act

Long running dispute over dairy cows using a Routine Stock Permit

Producer, stakeholder and community engagement by LLS resulted in mutually agreeable solution to an ongoing dispute being developed, agreed and implemented

An ex Hunter-Central Rivers Catchment Management Authority staff member raised concerns with delays in payment of entitlements from 2013

Administration of entitlements caused confusion during transition from Hunter-Central Rivers CMA to Hunter Local Land Services due to pay office moving from Service First to Trade and Investment. Ex HCRCMA staff member has now been paid entitlements

Landholder dissatisfied with the outcomes of a Soils Incentive Project with the former Hunter-Central Rivers CMA.

Hunter LLS provided funding for repairs to the site and Hunter LLS is now satisfied the work meets the requirement for the site

Murray The amalgamation of the Murray CMA & Riverina/Hume LHPA, with DPI extension services resulting in traditional practices, processes being delayed and or disrupted, however this was required to ensure alignment under the LLS Act and Department of Trade & Investment guidelines & policies

Murray LLS identified the underlining issues, implementing a communications plan through a range of media, including print (newspaper, newsletters, and brochures), and MLLS website. These activities ensured a consistent message informing customers of Murray LLS services which led to a reduction in complaints

North Coast Nil

Northern Tablelands

5 x complaints regarding delay in payment to suppliers Discussions with NSW Trade & Investment to improve processes

North West Complaints received regarding invoices sent to LLS not being paid within reasonable terms.

2 complaints received from TSR permit holders regarding not being issued with further permits.

Numerous face-to-face meetings held with Trade & Investment to explain the issue and find a solution.

Cases reviewed by General Manager, and the decision were to uphold the Rangers refusal to grant another permit in each case.

Riverina Nil

South East Received 4 formal complaints in reaction to election process and rates invoicing

Feedback on election process provided to Executive Services and Annual Returns process improved

Western 1300 Phone Number - subsequently landholders frustrated due to not being able to speak with a local person when the 1300 number is called

To be resolved at LLS level


31

H. Payment of Accounts

LLS March 14 June 14

Invoices due for payment (#) 4, 268 8,575

Invoices paid on time (#) 3,307 6,636

Invoices due for payment received from small business (#) 2 14

Invoices from small businesses paid on time (#) 2 12

Amount due for payment ($) 11,399,713 31,487,535

Amount paid on time ($) 8,592,665 23,447,637

Amount due from payment received from small business (#) 209 89,722

Amount from small business paid on time (#) 209 87,993

Number of payments for the interest on overdue accounts (#) 0 0

Interest paid on late accounts (#) 0 0

Number of payments to small business for the interest on overdue account (#) 0 0

Interest to small business on late account ($) 0 0


32

I. Work, Health and Safety

Since the establishment of Local Land Services (LLS) on 1 January 2014 a significant commitment has been made to ensure that effective safety management systems (SMS) are in place to protect the health and safety of employees as well as meeting the statutory obligations prescribed within the Work Health and Safety Act 2011.

Due to the relatively short period of operations the maturity and availability of data indicating the business safety performance is limited. Table 1 below provides a general indication of the performance trends for LLS during the 6 month period.

(Table 1)

LLS

(01/01/2014-30/06/2014)

Total incidents reported 65

Total claims to insurer 5

No. of medical treatments 3

No. of lost time injuries 2

No. days lost 48

LTIFR 1.61

It is important to note that there have been no workplace fatalities or serious workplace incidents that have required significant medical treatments. Additionally, LLS have not been subject to any enforcement action by the workplace safety regulator nor have there been any litigation proceedings.

Safety programs

A number of safety programs were undertaken to ensure effective implementation of the safety management system.

The Executive of LLS has established hazard and risk profiles for all LLS operations. Identification and assessment of risk has resulted in the development of a number of innovative risk control strategies in consultation with experienced employees. Outcomes from these strategies have been communicated to all employees complemented by online and face to face safety training sessions.


33

J. LLS Senior Executive Officers remuneration

LLS No. Band Remuneration Range Average

Remuneration M F

General Manager 11 1 167,100 – 238,300 199,386 11

Executive Manager 1 1 167,100 – 238,300 225, 000

1

Chair of Chairs 1 2 238,300 – 299,750 179,850*

1

The approximate percentage of total employee-related expenditure in the reporting period attributable to senior executives is 3.2%. In the above table, it should be noted average remuneration is expressed on an annual basis. Remuneration included in the audited financial statements relates to the six month reporting period. Remuneration is inclusive of superannuation contributions. *The Chair of Chairs position is currently filled on a part-time basis. Average remuneration in the table above reflects the basis of the current appointment.


34

K. GIPAA

LLS Requests

(Yes or No)

If Yes, Total number of access applications received during the

year

If Yes, Total number of access applications received that

agency refused

Central Tablelands No

Central West No

Greater Sydney No

Hunter No

Murray No

North Coast No

Northern Tablelands No

North West No

Riverina No

South East No

Western Yes 1 0

Executive Support Unit Yes 1 0

L. Credit Card Certification

As required by Treasurer’s Direction 205.01, the Chief Executive of Local Land Services certifies that credit card usage was in accordance with the relevant government policy, Premier’s Memoranda and Treasurer’s Directions.


35

M. Multicultural Policies and Services Program (Formerly EAPS)

Local Land Services is governed by cluster arrangements that are committed to the Community Relations and Principles of Multiculturalism Act 2000 (the CRPM Act) and the NSW Government’s aims and objectives for multiculturalism as set out in the Community Relations Commission’s Multicultural Policies and Services Program.

During 2013–14, the NSW Department of Trade & Investment developed the ‘NSW Trade & Investment Multicultural Plan 2014–16’. The purpose of the plan is to meet our obligations under the Act and to demonstrate the Department’s contribution to the Government’s multicultural agenda. The plan outlines the actions, milestones and positions responsible within NSW Trade & Investment for implementing the plan.

Local Land Services implements the policies and practices of the NSW Department of Trade & Investment in this area, as part of cluster arrangements. These policies and practices include:

• Industrial Relations • Equal Employment Opportunity • Disability Plans • Ethnic Affairs Priorities Statements • Occupational Health and Safety

N. Waste

Local Land Services is governed by cluster arrangements that are committed to the NSW Government’s Waste Reduction and Purchasing Policy (WRAPP) agenda.

Local Land Services aims to create awareness amongst staff, encourage participation and develop practical strategies to avoid waste, increase resource recovery and increase the purchase of recycled products.

This is achieved through a combination of policies and procedures as well as communications such as NSW Trade & Investment’s induction program and intranet.

Local Land Services takes a proactive role in adopting initiatives to reduce the generation of waste. Staff are encouraged to recycle office stationery paper, cardboard, glass, cans and plastics. A process is also in place for the collection of toner cartridges.

Every effort is made to purchase stationery items containing recycled content or those products that are manufactured using environmentally friendly practices.

O. Internal Audit and Risk Management Policy Attestation

Local Land Services established an Audit and Risk Committee of the Board of Chairs during the reporting period. Local Land Services did not establish an internal audit function within the reporting period in accordance with the requirements of TPP09-05 Internal Audit and Risk Management Policy for the NSW Public Sector. Local Land Services is committed to fully meeting the requirements of TPP09-05 during the 2014/15 year.


36

P. Risk Management and Insurance Activities

Local Land Services has developed an internal risk management framework for the management of high level risk within the organisation. This framework is overseen by the Local Land Services Board of Chairs, through its internal Audit and Risk Committee. As the business environment changes, the framework adaptively manages the changes to risk profiles.

Risk management principles are embedded in a number of processes within Local Land Services including work, health and safety program and project management, biosecurity and emergency management planning and natural resource management planning.

Local Land Services is insured though the Treasury Management Fund (TMF), a self-insurance scheme of the NSW Government, administered by GIO and Allianz.

The coverage provided by the schemes is comprehensive and policies are held for Workers Compensation, Motor Vehicles, Property, Miscellaneous and Public Liability.

A summary of the claims paid by TMF to or on behalf of Local Land Services is outlined in the Table below.

LLS

No. of Claims

Total Amount Paid

Total Amount Recovered

Net Incurred Cost

Miscellaneous 1 $1,082 0

$1,082

Motor Vehicle 38 $111,691 $5,500 $112,425

Liability Nil 0 0 0

Property 3 $3,933 0 $3,933


37

Q. Audited Financial Statements

Audited financial statements are provided on the following pages 1-48.

Local Land Services

1

Financial Statements

for the six month period

ended 30 June 2014

Local Land Services

2

Financial Statements

For the six month period ended 30 June 2014 Financial Statement Contents Statement by Board Members 3 Independent Auditor’s Report 4-5 Statement of comprehensive income 6 Statement of financial position 7-8 Statement of changes in equity 9 Statement of cash flows 10 Notes to and forming part of the financial statements 11-48

Local Land Services

3

STATEMENT BY BOARD MEMBERS

Certificate under Section 41 C (1B) and (1C) of the Public Finance and Audit Act 1983

Pursuant to the Public Finance and Audit Act 1983, we declare that in our opinion: (a) The accompanying consolidated financial statements exhibit a true and fair view of the

financial position of Local Land Services and its controlled entity Local Land Services Staff Agency as at 30 June 2014, and their financial performance for the six month period then ended.

(b) The financial statements have been prepared in accordance with:

The applicable Australian Accounting Standards, which include Australian Accounting Interpretations and other mandatory professional reporting requirements;

The requirements of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010 and the Treasurer’s Directions; and

The Financial reporting directions published in the Financial Reporting Code for NSW Government Sector Entities or issued by the Treasurer.

(c) There are no circumstances which would render any particulars included in the

financial statements to be misleading or inaccurate. For and on behalf of the Board

John Macarthur-Stanham Susan Hooke Chair Chair – Audit and Risk Committee Local Land Services Board of Chairs Local Land Services Board of Chairs Dated: 19 December, 2014

Local Land Services

6

Statement of comprehensive income for the six month period ended 30 June 2014

Note Consolidated

2014 $’000

Parent 2014 $’000

Expenses

Operating expenses

Employee related 4 (a) 37,163 -

Personnel services 4 (b) - 36,339

Board remuneration 4 (g) 815 815

Depreciation and amortisation 4 (d) 1,760 1,760

Grants and subsidies 4 (f) 34,609 34,609

Finance costs 4 (e) 3 3

Other operating expenses 4 (c) 29,411 29,411

Total Expenses 103,761 102,937

Revenue

Sale of goods and services 3 (a) 3,835 3,835 Grants and contributions 3 (b) 60,613 60,613

Investment revenue 3 (c) 1,374 1,374 Acceptance by the Crown Entity of some employee benefits and other liabilities 3 (f)

2,314

-

Rates 3 (e) 30,614 30,614

Other revenue 3 (d) 8,278 8,278

Total Revenue 107,028 104,714

Gain / (loss) on disposal 5 5 5

Net Result 3,272 1,782

Other comprehensive income Superannuation actuarial gains/(losses) 17 (1,490) -

Total other comprehensive income/(loss) (1,490) -

Total comprehensive income/(loss) for the period 1,782 1,782

The above statement of comprehensive income is to be read in conjunction with the attached notes.

Local Land Services

7

Statement of financial position as at 30 June 2014

Note Consolidated

2014 $’000

Parent 2014 $’000

Assets Current Assets Cash & cash equivalents 6 83,872 83,872

Receivables 7 34,588 34,588

Prepayments 8 2,336 94

Inventories 9 1,340 1,340

Biological assets 10 32 32

Assets held for sale 13 460 460

Total Current Assets 122,628 120,386

Non-Current Assets

Property, plant & equipment

Land and buildings 11 454,407 454,407

Plant & equipment 11 7,665 7,665

Leased plant & equipment 11 62 62

Infrastructure 11 25,734 25,734

Intangibles 12 1,275 1,275

Biological assets 10 8 8

Total Non-Current Assets 489,151 489,151

Total Assets 611,779 609,537

Liabilities Current Liabilities Payables 15 38,994 52,095

Borrowings 16 12 12

Provisions 17 14,010 696

Other 18 1,096 1,096

Total Current Liabilities 54,112 53,899

Non-Current Liabilities

Borrowings 16 47 47

Provisions 17 2,029 -

Other 18 872 872

Total Non-Current Liabilities 2,948 919

Local Land Services

8

Total Liabilities 57,060 54,818

Net Assets 554,719 554,719

Equity

Accumulated funds 554,719 554,719

Total Equity 554,719 554,719

The above statement of financial position is to be read in conjunction with the attached notes.

Local Land Services

9

Statement of changes in equity for the six month period ended 30 June 2014 Consolidated Entity

Accumulated funds Reserves Total Note $’000 $’000 $’000

Balance as at 1 January 2014 - - -

Net result for the period 3,272 - 3,272 Superannuation actuarial gains / (losses)

(1,490) - (1,490)

Net increase/(decrease) in property plant and equipment

- - -

Total comprehensive income for the period

1,782 - 1,782

Transactions with owners in their capacity as owners

Increase/(decrease) in net assets from equity transfer 19 552,937 - 552,937

Balance as at 30 June 2014

554,719 - 554,719

Parent Entity

Accumulated funds Reserves Total Note $’000 $’000 $’000

Balance as at 1 January 2014 - - -

Net result for the period 1,782 - 1,782 Superannuation actuarial gains / (losses)

- - -

Net increase/(decrease) in property plant and equipment

- - -

Total comprehensive income for the period

1,782 - 1,782

Transactions with owners in their capacity as owners

- - -

Transfer between reserves - - - Increase/(decrease) in net assets from equity transfer 19 552,937 - 552,937

Balance as at 30 June 2014 554,719 - 554,719

The above statement of changes in equity is to be read in conjunction with the attached notes.

Local Land Services

10

Statement of cash flows for the six month period ended 30 June 2014

Note Consolidated 2014 $’000

Parent 2014 $’000

Cash flows from operating activities Payments Employee related (31,607) -

Personnel services expense - (31,607)

Grants and subsidies (27,070) (27,070) Other (10,778) (10,778)

Total payments (69,455) (69,455) Receipts Rates and levies 21,886 21,886

Grants and contributions 60,613 60,613

Interest 1,224 1,224 Other 10,359 10,359

Total receipts 94,082 94,082 Net cash flows from operating activities 22 24,627 24,627 Cash flows from investing activities Proceeds from sale of land and buildings, plant and equipment and infrastructure 47 47

Purchases of land and buildings, plant and equipment and infrastructure

(42)

(42)

Net cash flows from investing activities 5 5

Cash flows from financing activities

Repayments made against finance leases (15) (15)

Proceeds finance leases drawn down - -

Net cash flows from financing activities (15) (15)

24,617

24,617 Net increase (decrease) in cash and cash equivalents

Opening cash and cash equivalents - -

Cash transferred in as a result of administrative restructuring 19 59,255 59,255

Closing cash and cash equivalents 6 83,872 83,872

The above statement of cash flow is to be read in conjunction with the attached notes.

Local Land Services

11

NOTE 1 - REPORTING ENTITY Local Land Services (LLS) is a statutory body, established pursuant to the Local Land Services Act 2013 (the LLS Act) which commenced on 1 January 2014. The LLS Act repealed the Catchment Management Authorities Act 2003, the Rural Lands Protection Act 1998, and from its commencement date abolished the former bodies incorporated under the two repealed Acts, transferring the assets, rights and liabilities of the former entities to LLS. The bodies abolished under the LLS Act were:

the State Management Council of Livestock Health and Pest Authorities the State Policy Council of Livestock Health and Pest Authorities the 14 Livestock Health and Pest Authorities (LHPA’s) the 11 Catchment Management Authorities (CMA’s)

Local Land Services is a NSW Government agency, constituted as a statutory corporation under the LLS Act. Under this Act, LLS is charged with the responsibility for delivering local land services in the social, economic and environmental interests of the State. LLS has responsibilities in the areas of biosecurity, natural resource management, agricultural advisory and emergency management. Functions are exercised in each of these key areas with a focus on regional delivery and alignment with State objectives. The LLS Act does not allow LLS to employ staff. Under the Government Sector Employment Act 2013, which replaced the previous Public Sector Employment and Management Act 2002 (PSEMA legislation), LLS arranges personnel services through the Local Land Services Staff Agency (LLSSA). Under the Administrative Arrangements Order 2014 all parts of the former Local Land Services Division (pursuant to the former PSEMA legislation) were transferred to the LLSSA as a controlled entity of LLS, and together the two entities form the economic entity reflected in these consolidated financial statements. In the process of preparing the consolidated financial statements for the economic entity, consisting of the controlling and controlled entities, all inter-entity transactions and balances have been eliminated. The reporting entity is consolidated as part of the NSW Total State Sector Accounts. LLS is a not-for-profit entity (as profit is not its principal objective) and does not have a cash generating unit. The reporting entity is consolidated as part of the NSW Total State Sector Accounts. These financial statements for the six month period ended 30 June 2014 have been authorised for issue by the Chair of the Board of the Chairs on 19 December 2014.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following significant policies have been adopted in the preparation and presentation of the financial statements:

(a) Basis of preparation The financial statements of LLS are general purpose financial statements which have been prepared in accordance with:

The applicable Australian Accounting Standards, which include Australian Accounting Interpretations;

The requirements of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010; and

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The financial reporting directions published in the Financial Reporting Code for NSW Government Sector Entities or issued by the Treasurer.

The reporting period reflected in these financial statements covers the six month period from the commencement of LLS on 1 January 2014 and ending 30 June 2014. Due to the commencement of the new entity comparative information is not presented in these financial statements, as management believes the information relating to the former entities would not provide a reliable basis for comparison to the operations of LLS presented in these financial statements. Property, plant and equipment, assets (or disposal groups) held for sale and financial assets at ‘fair value through profit or loss’ and available for sale are measured at fair value. Other financial statement items are prepared in accordance with the historical cost convention. Judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements. All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency. (b) Statement of compliance The financial statements and notes comply with the Australian Accounting Standards, which include Australian Accounting Interpretations. (c) Significant accounting judgements, estimates and assumptions

(i) Significant accounting judgement

In the preparation of the financial statements, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may vary from these estimates.

(ii) Significant accounting estimates and assumptions

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements made by management in the application of the Australian Accounting Standards that have significant effects on the financial statements and estimates, with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.

(d) Borrowing costs

Borrowing costs are recognised as expenses in the period in which they are incurred, in accordance with Treasury’s mandate to not-for-profit general government sector agencies.

(e) Income recognition

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Revenue is measured at the fair value of the consideration or contribution received or receivable. Additional comments regarding the accounting policies for the recognition of revenue are discussed below:

(i) Grants or contributions

Grants or contributions from government and other bodies are generally recognised as income when LLS obtains control or the right to receive the contributions. Control over a grant or contribution is normally obtained upon the receipt of cash. In other cases recognition may be based on the achievement of milestones which would allow the control of the funds to pass to LLS.

(ii) Sale of goods and services

Revenue from the sale of goods is recognised as revenue when LLS transfers the significant risks and rewards of ownership of the assets and the amount of revenue is reliably measurable. Revenue for the rendering of services is recognised when the service provided or by reference to the stage of completion.

(iii) Rates and charges

Rates are levied annually for the calendar year. Extra charges for overdue rates are set at the Commonwealth Bank overdraft index rate as at 1 January of the rating year plus 2%. For 2014 the overdue rates are 11.98%.

(iv) Investment revenue

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

(v) Personnel services revenue

Reimbursement of employee benefits and related on-costs for the entities to which LLSSA supplies personnel services is recognised as revenue. Revenue is recognised when the service has been provided.

(f) Insurance LLS insurance activities are conducted through the NSW Treasury Managed Fund scheme of self-insurance for Government agencies. The expense (premium) is determined by the Fund Manager based on past experience and the insurance coverage is reviewed periodically to ensure that it is adequate. (g) Accounting for the Goods and Services Tax (GST)

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

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

Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from or payable to the Australian Taxation Office is included as part of receivables or payables respectively.

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

(h) Assets

(i) Acquisition of assets

The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by LLS. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to the asset when initially recognised in accordance with the specific requirements of other Australian Accounting Standards. Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition – see also assets transferred as a result of an equity transfer – Note 19. Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. deferred payment amount is effectively discounted at an asset-specific rate.

(ii) Capitalisation threshold

Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of a network costing more than $5,000) are capitalised. All amounts below $5,000 are expensed to profit and loss as incurred.

(iii) Revaluation of property, plant and equipment

Physical non-current assets are valued in accordance with the "Valuation of Physical Non-Current Assets at Fair Value” Policy and Guidelines Paper (TPP 14-01). This policy adopts fair value in accordance with AASB 13 Fair Value Measurement, AASB 116 Property, Plant and Equipment and AASB 140 Investment Property. Property, plant and equipment is measured on the basis of highest and best use. Fair value of property, plant and equipment is based on a market participant’s perspective, using valuation techniques that maximise relevant observable inputs and minimise unobservable inputs. LLS re-values each class of property, plant and equipment at least every five years and with sufficient regularity to ensure that the carrying amount of each asset in the class does not differ materially from its fair value at reporting date. Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. When revaluing non-current assets using cost approach the gross amount and the related accumulated depreciation are separately restated.

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For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net assets accounts are then increased or decreased by the revaluation increments or decrements. Revaluation increments are credited directly to a revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised immediately as revenue in the net result. Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the revaluation surplus in respect of the same class of asset, they are debited directly to the revaluation surplus. As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets but not otherwise. Where an asset that has previously been revalued is disposed of, any balance remaining in the revaluation surplus in respect of that asset is transferred to accumulated funds. The methods of revaluing the Crown land assets utilises a mass valuation technique as follows: Travelling Stock Routes and Stock Watering Places The determination of global rates per hectare for a variety of land classifications for each local government area is considered the most appropriate approach to determine a value for the Travelling Stock Routes (TSR) and Stock Watering Places (SWP). For the mass valuations, a valuation rate per hectare was provided by Land and Property Information (LPI) on behalf of Crown Lands of NSW. The TSR vested to and under the effective control of LLS was valued at $426,817,539 as at 30 June 2014.

(iv) Contaminated Land

When the Environmental Protection Agency identifies land as contaminated and provides an order, an impairment provision is raised for the land when the cost to remediate the land is quantifiable. In the event that cost of restoring the contaminated land exceeds the value of the land, a liability is recognised.

(v) Impairment of property, plant and equipment

As a not-for-profit entity with no cash-generating units, impairment under AASB 136 Impairment of Assets is unlikely to arise. AASB 136 modifies the recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. This means that, where an asset is already measured at fair value, impairment can only arise if selling costs are material. Selling costs are regarded as immaterial.

(vi) Depreciation of property, plant and equipment

Depreciation is provided for on a straight line basis for all depreciable assets, as detailed below, so as to write off the depreciable amount of each asset as it is consumed over its useful life to LLS. All material separately identifiable components of assets are depreciated separately over their useful lives.

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Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items.

The following depreciation rates were applied for the period ended 30 June 2014: Land is not a depreciable asset

Buildings Plant and equipment Infrastructure Intangibles

20 - 60 years 2 - 20 years 3 – 67 years 2 – 4 years

(vii) Major inspection costs When each major inspection is performed, the labour cost of performing inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria are satisfied.

(viii) Restoration costs

The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability.

(ix) Maintenance

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

(x) Leased assets

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor does not transfer substantially all the risks and benefits.

Where a non-current asset is acquired by means of a finance lease, at the commencement of the lease term, the asset is recognised at its fair value or, if lower, the present value of the minimum lease payments, at the inception of the lease. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are charged to the statement of comprehensive income in the periods in which they are incurred.

(xi) Investment properties

LLS owns some properties which generate rental income. Investment properties are stated at fair value in the statement of financial position, using the valuation technique that maximises the use of relevant observable inputs. Gains or losses arising from changes in fair values are included in the net result in the year in which they arise. No depreciation is charged on investment properties.

(xii) Receivables

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Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are accounted for in the net result for the year when impaired, derecognised or through the amortisation process.

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

(xiii) Inventories (Seed bank)

Inventories are comprised of processed and unprocessed local native seed which are used on revegetation projects carried out by LLS and other organisations.

Inventories are measured at actual cost reflecting the cost of collection and preparation. The cost is then attributed annually to the various seed lots collected and is then adjusted after viability testing.

Factors such as climate, weather events, available funding and landholder confidence all impact on the quantity and types of seed available for collection and planting.

(xiv) Other inventories

Other inventories are comprised of baits, ammunition, signs and chemicals that are used by LLS in the management of pests and weeds in the travelling stock routes. In some locations these inventories are available for sale to the public.

Inventories held for distribution are stated at cost, adjusted when applicable for any loss of service potential. Cost is calculated using the lower of cost or the amount of current replacement.

(xv) Biological assets

Biological assets are measured on initial recognition and at each reporting date at fair value less estimated point-of-sale costs, or reasonable estimates of the fair value less estimated point-of-sale costs.

A gain or loss arising on initial recognition of a biological asset at fair value less estimated point-of-sale costs and from a change in fair value less estimated point-of-sale costs of a biological asset is included in net result for the period in which it arises.

(xvi) Investments

Investments are initially recognised at fair value plus, in the case of investments not at fair value through profit or loss, transaction costs. LLS determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this at each financial year end.

(xvii) Impairment of financial assets

All financial assets, except those measured at fair value through profit and loss, are subject to an annual review for impairment. An allowance for impairment is

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established when there is objective evidence that the entity will not be able to collect all amounts due.

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

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

(xviii) Derecognition of financial assets and financial liabilities

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

Where substantially all the risks and rewards have been transferred; or Where LLS has not transferred substantially all the risks and rewards, but has not

retained control.

Where LLS has neither transferred nor retained substantially all the risks and rewards of ownership or transferred control, the asset is recognised to the extent of the entity’s continuing involvement in the asset, and an associated liability for amounts it may have to pay.

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

(xix) Non-current assets (or disposal groups) held for sale

Where there are non-current assets (or disposal groups) classified as held for sale, their carrying amount will be recovered principally through a sale transaction, not through continuing use. Non-current assets (or disposal groups) held for sale are recognised at the lower of carrying amount and fair value less costs to sell. These assets are not depreciated while they are classified as held for sale.

(xx) Other assets

Other assets are recognised on a historic cost basis.

(xxi) Intangibles

LLS recognises intangible assets only if it is probable that future economic benefits will flow to LLS and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.

All research costs are expensed. Development costs are only capitalised when certain criteria are met.

Intangible assets with a finite life are measured at fair value only if there is an active market. As there is no active market for LLS’s intangible assets, the assets are

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carried at cost less any accumulated amortisation.

The entity’s intangible assets are amortised using the straight line method of 1 to 3 years and the following amortisation rates applied for the period ended 30 June 2014:

Computer software and licences 33.33% annually

Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its carrying amount, the carrying amount is reduced to recoverable amount and the reduction is recognised as an impairment loss.

(i) Liabilities

(i) Payables

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

(ii) Borrowings

Loans are not held for trading or designated at fair value through profit and loss and are recognised at amortised cost using the effective interest rate method. Gains or losses are recognised in the net result for the year on derecognition. The finance lease liability is determined in accordance with AASB 117 Leases.

(iii) Personnel Services

LLS does not employ staff but utilises the personnel services of the Local Land Services Staff Agency (LLSSA) and its former embodiment, the LLS Division. The costs of personnel services in respect of wages and salaries, superannuation, annual leave, long service leave, and for personal leave are recognised when it is probable that settlement will be required.

(iv) Employee benefits and other provisions

(a) Salaries and wages, annual leave, sick leave and on-costs

Liabilities for salaries and wages (including non-monetary benefits), annual leave and paid sick leave that are due to be settled wholly within 12 months after the end of the period in which the employees render the service are recognised and measured in respect of employees’ services up to the reporting date at undiscounted amount. Annual leave is not expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. As such, it is required to be measured at present value in accordance with AASB 119 Employee Benefits (although short cut methods are permitted). Actuarial advice obtained by Treasury has confirmed that the use of a nominal approach plus the annual leave on annual leave liability (using 7.9% of the nominal value of annual leave) can be used to approximate the present value of the annual leave liability. LLS

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has assessed the actuarial advice based on LLS’s circumstances and has determined that the effect of discounting is immaterial to annual leave. Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued.

(b) Long service leave

Long service leave is measured at present value in accordance with AASB 119 Employee Benefits, based on the application of procedures specified in NSW TC 14/04 to employees with five or more years of service, using current rates of pay. These factors were determined based on an actuarial review to approximate present value.

(c) Superannuation

LLS is an entity that has two treatments of defined benefits superannuation. The staff transferred from the previous Catchment Management Authorities (CMA) have defined benefits superannuation liability assumed by the Crown. The staff from the former Livestock Health and Pest Authorities (LHPA) have their defined benefits liability recognised by LLS. LLS accounts for the liability of the former CMA staff as having been extinguished; resulting in the amount assumed being shown as the non-monetary revenue item described as “acceptance by the Crown Entity of employee benefits and other liabilities”. The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer’s Directions (NSW TC 11/04). The expense for certain superannuation schemes (i.e. Basic Benefit and First State Super) is calculated as a percentage of the employees’ salary. For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities Superannuation Scheme), the expense is calculated as a multiple of the employees’ superannuation contributions.

(d) Consequential on-costs

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

(e) Provision for the restoration costs

A provision has been made for the present value of anticipated costs for future restoration of leased premises. Changes to the estimated future costs are recognised in the statement of financial position and the statement of comprehensive income.

(f) Other provisions

Other provisions exist when: LLS has a present legal or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

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(j) Fair value hierarchy

A number of LLS’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring fair value, the valuation technique used maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Under AASB 13 Fair Value Measurement, the entity categorises, for disclosure purposes, the valuation techniques based on the inputs used in the valuation techniques as follows: Level 1 – quoted prices in active markets for identical assets / liabilities that the

entity can access at the measurement date. Level 2 – inputs other than quoted prices included within Level 1 that are

observable, either directly or indirectly. Level 3 – inputs that are not based on observable market data (unobservable

inputs).

(k) Equity and reserves (i) Revaluation surplus

The revaluation surplus is used to record increments and decrements on the revaluation of non-current assets. This is in accordance with the LLS policy on the revaluation of property, plant and equipment.

(ii) Accumulated Funds

The category 'Accumulated Funds' includes all current and prior period retained funds.

(ii) Separate reserve accounts are recognised in the financial statements only if such

accounts are required by specific legislation or Australian Accounting Standards (e.g. revaluation surplus and foreign currency translation reserve).

(l) Equity Transfers

The transfer of net assets between entities as part of an administrative restructure between NSW public sector entities and ‘equity appropriations’ (refer Note 19) is designated or required by the Australian Accounting Standards to be treated as contributions by owners and recognised as an adjustment to ‘Accumulated Funds’. This treatment is consistent with AASB 1004 Contributions and Australian Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public sector Entities. Transfers arising from an administrative restructure involving not-for-profit and for-profit government entities are recognised at the amount at which the assets and liabilities were recognised by the transferor immediately prior to the restructure. Subject to below, in most instances this will approximate fair value. All other equity transfers are recognised at fair value, except for intangibles. Where an intangible has been recognised at (amortised) cost by the transferor because there is no active market, the entity recognises the asset at the transferor’s carrying amount. Where the transferor is prohibited from recognising internally generated intangibles, the entity does not recognise that asset. (m) Budgeted Amounts The budgeted amounts are drawn from the original budgeted financial statements presented to Parliament in respect of the reporting period, as adjusted for Section 24 of the Public

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Finance and Audit Act 1983 where there has been a transfer of functions between departments. LLS commenced after the annual budget was presented to Parliament and a budget is therefore not included in these financial statements. (n) Comparative information It is not possible to prepare comparative information for the prior period to 30 June 2014 as LLS is a new entity which commenced on 1 January 2014. The information captured in LLS is not directly comparable back to the pre-existing entities as the new entity does not directly relate to the previous organisations, making comparisons meaningless. (o) New Australian accounting standards issued but not effective In the current period LLS has adopted all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the operations and effective for the current reporting period. Details of the impact of the adoption of these new accounting standards are set out in the individual accounting policies notes in the financial statements. Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2014 reporting period. In accordance with the NSW Treasury mandate (TC 14/03), the Authority did not early adopt any of these accounting standards and interpretations that are not yet effective. These are listed as follows:

AASB 9, AASB 2010-7 and AASB 2012-6 regarding financial instruments AASB 10 (NFP) Consolidated Financial Statements AASB 11 (NFP) Joint Arrangements AASB 12 (NFP) Disclosure of Interests in Other Entities AASB 127 (NFP) Separate Financial Statements AASB 1031 Materiality AASB 1055 and AASB 2013-1 regarding budgetary reporting AASB 2011-7 (NFP) regarding consolidation and joint arrangements AASB 2012-3 regarding offsetting financial assets and financial liabilities AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial

Assets AASB 2013-4 regarding financial instruments – Novation of Derivatives and Continuation of

Hedge Accounting AASB 2013-8 regarding Australian Implementation Guidance for Not-for-Profit Entities – Control

and Structured Entities AASB 2013-9 regarding the Conceptual Framework, Materiality and Financial Instruments

(Parts B and C). LLS has considered these new standards and interpretations and deemed there to be no material impact on any of the amounts recognised in the financial statements, or the disclosures in relation to LLS. It is considered that the impact of these new standards and interpretations in future years will have no material impact on the financial statements of LLS. (p) Reporting period

The period covered in the financial statements is the period from 1 January 2014, when LLS was established, to 30 June 2014.

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NOTE 3 – REVENUE Consolidated

2014 $’000

Parent 2014 $’000

(a) Sale of goods and services Laboratory sales 92 92 Rendering of services Education 25 25 Permit fees 2,668 2,668 Other fees 621 621 Other services 429 429 3,835 3,835

Consolidated 2014 $’000

Parent 2014 $’000

(b) Grants and Contributions Grants – Commonwealth Government 24,652 24,652 NSW Budget Sector Agencies 18,022 18,022 PTE’s, Local and other State Government 17,668 17,668 Grants – Industry/Private bodies 271 271

60,613 60,613


Parent 2014 $’000

(c) Investment Revenue

Interest received 1,224 1,224 Rents 150 150

1,374 1,374


Parent 2014 $’000

(d) Other revenue

Levies 6,013 6,013 Other 2,265 2,265 8,278 8,278


Parent 2014 $’000

(e) Rates 30,614 30,614

30,614 30,614

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Parent 2014 $’000

(f) Acceptance by the crown entity of employee benefits and other liabilities

Superannuation 163 - Long service leave 2,142 - Payroll tax 9 -

2,314 -

NOTE 4 – EXPENSES EXCLUDING LOSSES


Parent 2014 $’000

(a) Employee related Salaries and wages (including recreation

leave) 29,141 -

Superannuation - defined benefit plans 438 - Superannuation - defined contribution plans 2,265 -

Long service leave 3,118 - Workers’ compensation insurance 151 -

Payroll tax and fringe benefits tax 2,050 - 37,163 -

(b) Personnel services

Personnel services - 36,339 - 36,339

(c) Other operating expenses Contract labour 13,429 13,429 Operating lease rental expense- minimum lease

payments 2,918 2,918

Other 2,127 2,127 Corporate services 1,602 1,602 Consumables and merchandise 1,880 1,880 Travel 1,246 1,246 Bad and doubtful debts 327 327 Motor vehicle expenses 685 685 Telecommunications 670 670 Cost of sales 652 652 Advertising and promotion 532 532 Electricity 472 472 Consultants 444 444 Maintenance 405 405 Training and staff development 367 367 Printing 617 617 Cleaning 303 303 Insurance 270 270 Auditor remuneration – audit of the financial

statements 235 235

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Parent 2014 $’000

Rates 113 113 Debt collection fees 81 81 Legal 5 5 Courier and freight 31 31 29,411 29,411

(d) Depreciation and amortisation Buildings 195 195 Infrastructure 482 482 Plant & equipment 1,034 1,034 Amortisation of intangible assets 49 49 1,760 1,760

(e) Finance costs

Finance lease costs 3 3 3 3

(f) Grants and subsidies Caring for Country Natural Resource management 12,575 12,575

Catchment management 11,904 11,904 Sustainability and climate change 2,282 2,282 Clean Energy 1,751 1,751 Strategic water and natural resource management 693 693

Biodiversity promotion 2,335 2,335 Other 3,069 3,069

34,609 34,609

(g) Board remuneration Board remuneration 815 815 815 815

NOTE 5 – GAIN/(LOSS) ON DISPOSAL

Consolidated

2014 $’000

Parent 2014 $’000

Proceeds from disposal 42 42 Written down value of assets disposed (37) (37)

5 5

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NOTE 6 – CURRENT ASSETS – CASH AND CASH EQUIVALENTS

Consolidated

2014 $’000

Parent 2014 $’000

Cash at Bank and on hand 83,872 83,872

NOTE 7 – CURRENT ASSETS – RECEIVABLES

Consolidated

2014 $’000

Parent 2014 $’000

Accounts receivable 29,948 29,948 Less: allowance for impairment (327) (327)

29,621 29,621

Goods and Services Tax 2,583 2,583 Other amounts receivable 2,384 2,384 34,588 34,588


Parent 2014 $’000

Movement in allowance for impairment Increase / (decrease) in allowance recognised in profit or loss 327 327

Balance at 30 June 327 327 Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 23.

NOTE 8 – PREPAYMENTS


Parent 2014 $’000

Prepaid superannuation 2,242 -

Other prepayments 94 94

2,336 94

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NOTE 9 – CURRENT/NON-CURRENT ASSETS – INVENTORIES


Parent 2014 $’000

Value of seed held at current replacement cost 486 486

Reconciliation of seed stock Consolidated

2014 $’000

Parent 2014 $’000

Inventory on hand – held for resale and own-use Opening balance of seed stock 676 676 Seed withdrawn from seed bank (283) (283) Sale of seed stock - - Value of seed stock collected 49 49 Adjustment to match seed bank 3 3 Net gain/(loss) on value of seed stock 41 41 Closing balance 486 486

Inventory on hand – held for resale and own-use Opening balance on hand at beginning of period 837 837 Increase/(decrease) in stock levels during period 17 17 Closing balance on hand at end of period 854 854

Total inventory on hand at end of period 1,340 1,340

NOTE 10 – BIOLOGICAL ASSETS

Consolidated

Number - Head Parent

Number - Head

Parent $’000

Consolidated

$’000

Cattle 62 62 40 40 Cattle – Current 50 50 32 32 Cattle – Non-current 12 12 8 8 Cattle Total 62 62 40 40

Consolidated $’000

Parent $’000

Reconciliation of Biological assets Opening balance 55 55 Cattle sales (15) (15) Closing balance 40 40

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NOTE 11 – NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT Consolidated

Land & Buildings

Plant & Equipment

Leased Plant & Equipment Infrastructure Total

$’000 $’000

$’000 $’000 $’000 At 30 June 2014 – fair value Gross carrying amount 454,602 8,693

68 26,216 489,579

Depreciation and amortisation expense (195) (1,028)

(6) (482) (1,711)

Net carrying amount 454,407 7,665

62 25,734 487,868

Parent

Land & Buildings

Plant & Equipment


$’000 $’000

$’000 $’000 $’000 At 30 June 2014 – fair value Gross carrying amount 454,602 8,693

68 26,216 489,579


(6) (482) (1,711)


62 25,734 487,868

Reconciliation

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

Land & Buildings

Plant & Equipment


$’000 $’000

$’000 $’000 $’000 Net carrying amount at start of period - - - - - Fair value of assets transferred on administrative restructure 454,602 8,693

68 26,216 489,579

Additions - 42 - - 42

Disposals - (42) - - (42)

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(6) (482) (1,711)


62 25,734 487,868

Parent

Land and Buildings

Plant & Equipment


$’000 $’000

$’000 $’000 $’000 Net carrying amount at start of period - - - - - Fair value of assets transferred on administrative restructure 454,602 8,693

68 26,216 489,579

Additions - 42 - - 42

Disposals - (42) - - (42) Depreciation and amortisation expense (195) (1,028)

(6) (482) (1,711) Net carrying amount 454,407 7,665

62 25,734 487,868

Further details regarding the fair value measurement of property, plant and equipment are disclosed in Note 14. NOTE 12 – NON-CURRENT ASSETS – INTANGIBLES


Parent 2014 $’000

As at 30 June 2014

Intangibles at depreciated replacement cost 1,324 1,324 Less: impairment and amortisation (49) (49) Net carrying amount 1,275 1,275

Reconciliation A reconciliation of the carrying amount of intangibles at the beginning and end of the current and previous reporting period is set out below.


Parent 2014 $’000

Fair value of intangible assets transferred on administrative restructure 1,324 1,324

Amortisation (recognised as ‘depreciation and amortisation’) (49) (49) Net carrying amount at end of period 1,275 1,275

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NOTE 13 – ASSETS HELD FOR SALE Consolidated

2014 $’000

Parent 2014 $’000

Land and buildings 460 460 460 460

Certain Freehold land and buildings have been listed for sale. NOTE 14 – FAIR VALUE MEASUREMENT OF NON-FINANCIAL ASSETS (a) Fair value hierarchy

Level 1 Level 2 Level 3 Total fair value

$’000 $’000 $’000 $’000

Property, plant and equipment Assets held for sale - 460 - 460 TSR land - 426,818 - 426,818 Land - 11,658 - 11,658 Biological assets - 40 - 40 Buildings - 15,931 - 15,931 Plant and equipment - - 7,727 7,727 Infrastructure systems - - 25,734 25,734

- 454,907 33,461 488,368

(b) Valuation techniques, inputs and processes The freehold land and buildings are stated at their re-valued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the freehold land and buildings was determined using the depreciated replacement costs approach by reference to the market value of the land in its existing use and market replacement cost of comparable properties on a price per square foot basis, adjusted for age, condition and functional obsolescence. LPI was engaged to value the TSR’s and SWP’s and uses the same mass valuation methodology as with all other categories within the Crown portfolio; which is a determination of a global rate per hectare for each category. The land is valued on the basis of the highest and best use taking into account zoning and other restrictions, access to services infrastructure and property market demand. These value elements are considered in a global way when formulating a value level to apply to a particular category type. The plant and equipment is valued at depreciated replacement cost, which approximates the depreciated cost of the assets. The fair value of infrastructure systems was determined by an independent valuer based on the depreciated replacement cost that reflects the estimated current cost of replacing of the asset with a similar asset.

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Information about Level 3 fair value measurements Asset Classification Valuation

techniques Significant unobservable inputs

Sensitivity of significant unobservable inputs

Plant and equipment / infrastructure

Depreciated replacement cost approach

Estimated replacement costs of infrastructure / equipment, taking into account functional obsolescence condition and age of assets

- An increase / decrease in the estimated replacement cost will result in increase / decrease in the fair value - A decrease in the estimated remaining useful life will decrease the fair value

(c) Reconciliation of recurring Level 3 fair value measurements

Class(es)

Total Recurring Level 3 Fair value

Plant & equipment Infrastructure Total

$’000 $’000 $’000 Fair value as at 1 January 2014 8,761 26,216 34,977 Additions 42 - 42 Disposals (42) - (42) Depreciation (1,034) (482) (1,516)

Fair value as at 30 June 2014

7,727 25,734 33,461 There were no transfers between Level 2 and Level 3 of the fair value hierarchy during the period ended 30 June 2014.

NOTE 15 – CURRENT LIABILITIES - PAYABLES

Consolidated

2014 $’000

Parent 2014 $’000

Current Creditors 36,780 36,780 Personnel services - 15,223 Goods and Services Tax 92 92 Accrued salaries and wages 2,122 - Total payables 38,994 52,095

NOTE 16 – BORROWINGS


Parent 2014 $’000

Current finance lease 12 12 Non-current finance lease 47 47

59 59

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NOTE 17 – CURRENT/NON-CURRENT LIABILITIES - PROVISIONS


Parent 2014 $’000

Current Employee benefits and related on-costs Recreation leave 7,631 - Long service leave 3,953 - Payroll tax 698 - Other on-costs 1,032 - Other provisions 13,314 - Restoration costs 696 696 Total current provisions 14,010 696

Current recreation leave The liability at 30 June was $7.631 million. This is based on leave entitlements at 30 June 2014. The value of recreation leave expected to be taken within 12 months is $2.154 million and $5.477 million after 12 months.


Parent 2014 $’000

Non-Current Employee benefits and related on-costs Long service leave 617 - Payroll tax 55 - Other on-costs 20 - Superannuation – pooled fund 1,337 - Other provisions 2,029 - Restoration costs - - Total non-current provisions 2,029 - Aggregate employee benefits and related on-costs Provisions – current 14,010 - Provisions – non current 2,029 - Accrued salaries, wages and on-costs (Note 15) 2,122 -

18,161 -

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Movement in provisions (other than employee benefits) LLS has a number commercial property leases with varying lease terms and conditions; some of these leases include restoration provisions. The restoration provision reflects the expected cost of returning the premises to the conditions in which they were originally leased. This calculation is based on a make-good rate per square metre times the area in square metres of the leased premises. The make-good rate per square metre varies depending on the property. Movements in the restoration provision are set out below:


Parent 2014 $’000

Restoration costs Carrying amount at the beginning of financial period - - Unused amounts reversed (13) (13) Provisions assumed through administrative restructure 709 709 Carrying amount at end of the financial period 696 696

Employee benefits Superannuation Pooled Funds

Nature of the benefits provided by the fund – Para 139(a)(i)

The Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes:

* State Authorities Superannuation Scheme (SASS) * State Superannuation Scheme (SSS) * Police Superannuation Scheme (PSS) * State Authorities Non-contributory Superannuation Scheme (SANCS).

These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. Members receive lump sum or pension benefits on retirement, death, disablement and withdrawal. All the Schemes are closed to new members.

Description of the regulatory framework - Para 139(a)(ii)

The schemes in the Pooled Fund are established and governed by the following NSW legislation: Superannuation Act 1916, State Authorities Superannuation Act 1987, Police Regulation (Superannuation) Act 1906, State Authorities Non-Contributory Superannuation Scheme Act 1987, and their associated regulations. The schemes in the Pooled Fund are exempt public sector superannuation schemes under the Commonwealth Superannuation Industry (Supervision) Act 1993 (SIS). The SIS Legislation treats exempt public sector superannuation funds as complying funds for concessional taxation and superannuation guarantee purposes. Under a Heads of Government agreement, the New South Wales Government undertakes to ensure that the Pooled Fund will conform with the principles of the Commonwealth’s retirement incomes policy relating to preservation, vesting and reporting to members and that members’ benefits are adequately protected. The New South Wales Government prudentially monitors and audits the Pooled Fund and the Trustee Board activities in a manner consistent with the prudential controls of the SIS legislation. These provisions are in addition to other legislative obligations on the Trustee Board and internal processes that monitor the Trustee Board’s adherence to the principles of the Commonwealth’s retirement incomes policy. An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial investigation was performed as at 30 June 2012.

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Description of other entities' responsibilities for the governance of the fund - Para 139(a)(iii)

The Fund's Trustee is responsible for the governance of the Fund. The Trustee has a legal obligation to act solely in the best interests of fund beneficiaries. The Trustee has the following roles: * Administration of the fund and payment to the beneficiaries from fund assets when required in accordance with the fund rules; * Management and investment of the fund assets; and * Compliance with other applicable regulations.

Description of risks - Para 139(b)

There are a number of risks to which the Fund exposes the Employer. The more significant risks relating to the defined benefits are: * Investment risk - The risk that investment returns will be lower than assumed and the Employer will need to increase contributions to offset this shortfall. * Longevity risk – The risk that pensioners live longer than assumed, increasing future pensions. * Pension indexation risk – The risk that pensions will increase at a rate greater than assumed, increasing future pensions. * Salary growth risk - The risk that wages or salaries (on which future benefit amounts for active members will be based) will rise more rapidly than assumed, increasing defined benefit amounts and thereby requiring additional employer contributions. * Legislative risk - The risk is that legislative changes could be made which increase the cost of providing the defined benefits.

The defined benefit fund assets are invested with independent fund managers and have a diversified asset mix. The Fund has no significant concentration of investment risk or liquidity risk.

Description of significant events - Para 139(c)

There were no fund amendments, curtailments or settlements during the period.

Reconciliation of the Net Defined Benefit Liability/(Asset) - Para 140(a)

SASS SANCS SSS Total 1 January to 30 June 2014

1 January to 30 June 2014



$’000 $’000 $’000 $’000

Net Defined Benefit Liability/(Asset) at start of period (3,395) 22 869 (2,504)

Current service cost 188 35 - 223 Net interest on the net defined benefit liability/(asset) (73) - 19 (54)

Past service cost - - - - (Gains)/losses arising from settlements - - - - Actual return on Fund assets less Interest income (257) (19) (11) (287) Actuarial (gains)/losses arising from changes in demographic assumptions

- - - -

Actuarial (gains)/losses arising from changes in financial assumptions

1,260 97 218 1,575

Actuarial (gains)/losses arising from liability experience 85 56 61 202

Adjustment for effect of asset ceiling - - - - Employer contributions (50) (10) - (60) Net Defined Benefit Liability/(Asset) at end of period (2,242) 181 1,156 (906)

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0 0 0 0 Reconciliation of the Fair Value of Fund Assets – Para 140(a)(i)





$’000 $’000 $’000 $’000 Fair value of Fund assets at beginning of the period 25,828 1,932 1,018 28,778

Interest income 551 41 22 614 Actual return on Fund assets less Interest income 257 20 10 287 Employer contributions 50 10 - 60 Contributions by participants 107 - - 107 Benefits paid (3,734) (663) (30) (4,427) Taxes, premiums & expenses paid 264 - - 264 Transfers in - - - - Contributions to accumulation section - - - - Settlements - - - - Exchange rate changes - - - - Fair value of Fund assets at end of the period 23,323 1,340 1,020 25,683

0 0 0 0 Reconciliation of the Defined Benefit Obligation – Para 140(a)(ii)





$’000 $’000 $’000 $’000

Present value of defined benefit obligations at beginning of the period

22,433 1,954 1,887 26,274

Current service cost 188 35 - 223 Interest cost 478 42 40 560 Contributions by participants 107 - - 107 Actuarial (gains)/losses arising from changes in demographic assumptions

- - - -

Actuarial (gains)/losses arising from changes in financial assumptions

1,260 97 218 1,575

Actuarial (gains)/losses arising from liability experience 85 56 61 202

Benefits paid (3,734) (663) (30) (4,427) Taxes, premiums & expenses paid 264 - - 264 Transfers in - - - - Contributions to accumulation section - - - - Past service cost - - - - Settlements - - - - Exchange rate changes - - - - Present value of defined benefit obligations at end of the period

21,079 1,521 2,176 24,778

0 0 0 0

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Reconciliation of the effect of the Asset Ceiling - Para 140(a)(iii)





$’000 $’000 $’000 $’000

Adjustment for effect of asset ceiling at beginning of the period

- - - -

Change in the effect of asset ceiling - - - - Adjustment for effect of asset ceiling at end of the period - - - -

Fair value of Fund assets - Para 142

All Pooled Fund assets are invested by STC at arm’s length through independent fund managers, assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute fund assets to individual entities. As such, the disclosures below relate to total assets of the Pooled Fund.

As at 30 June 2014

Asset category

Total

$’000

Quoted prices in active

markets for identical assets Level 1 $’000

Significant observable

inputs Level 2

$’000

Unobservable inputs Level 3

$’000 Short Term Securities 2,453 1,573 880 - Australian Fixed Interest 2,365 11 2,354 - International Fixed Interest 881 - 881 - Australian Equities 14,399 11,494 241 2,664 International Equities 11,075 8,173 2,781 121 Property 3,272 894 692 1,686 Alternatives 6,329 565 4,897 867 Total* 40,774 22,710 12,726 5,338

-

-

-

-

The percentage invested in each asset class at the reporting date is:

As at 30-Jun-14 Short Term Securities 6.5% Australian Fixed Interest 6.2% International Fixed Interest 2.3% Australian Equities 30.9% International Equities 28.8% Property 8.6% Alternatives 16.7% Total 100.0%

*Additional to the assets disclosed above, at 30 June 2014 Pooled Fund has provisions for receivables/(payables) estimated to be around $2.2 billion, giving an estimated assets totalling around $40.2 billion.

Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in this level are listed shares; listed unit trusts.

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Level 2 - inputs other than quoted prices observable for the asset or liability either directly or indirectly. The assets in this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts containing where quoted prices are available in active markets for identical assets or liabilities.

Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds.

Derivatives, including futures and options, can be used by investment managers. However, each manager's investment mandate clearly states that derivatives may only be used to facilitate efficient cashflow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the investment portfolio. As such managers make limited use of derivatives.

Fair value of entity's own financial instruments - Para 143

The fair value of the Pooled Fund assets included $173.9 million in NSW Government Bonds as at 30 June 2014.

Significant Actuarial Assumptions at the Reporting Date - Para 144

As at 30-Jun-14 Discount rate 3.57% pa

Salary increase rate (excluding promotional increases)

2.27% pa to 30 June 2015, then 2.5% pa to 30 June 2018, 3.0% pa from 1 July 2018 to 30 June 2023, and 3.5% pa thereafter

Rate of CPI increase 2.5% pa

Pensioner mortality as per the 2012 Actuarial Investigation of the Pooled Fund

Sensitivity Analysis - Para 145

The entity's total defined benefit obligation as at 30 June 2014 under several scenarios is presented below.

Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G and H relate to sensitivity to demographic assumptions.

Base Case Scenario A Scenario B

-1.0%

discount rate +1.0%

discount rate Discount rate 3.57% 2.57% 4.57% Rate of CPI increase as above as above as above Salary inflation rate as above as above as above Defined benefit obligation ($’000) 24,778 28,436 22,117

Base Case Scenario C Scenario D

+0.5% rate of CPI increase

-0.5% rate of CPI increase

Discount rate as above as above as above Rate of CPI increase 2.5% 3.0% 2.0% Salary inflation rate as above as above as above Defined benefit obligation ($’000) 24,778 25,966 23,709

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Base Case Scenario E Scenario F

+0.5% salary increase rate

-0.5% salary increase rate

Discount rate as above as above as above Rate of CPI increase as above as above as above

Salary inflation rate as above above rates

plus 0.5% pa above rates less 0.5% pa

Defined benefit obligation ($’000) 24,778 25,141 24,425

Base Case Scenario G Scenario H

+5% pensioner mortality rates

-5% pensioner mortality

rates

Defined benefit obligation ($’000) 24,778 24,633 24,931

The defined benefit obligation has been recalculated by changing the assumptions as outlined above, whilst retaining all other assumptions.

Asset-Liability matching strategies - Para 146

The Trustee monitors its asset-liability risk continuously in setting its investment strategy. It also monitors cashflows to manage liquidity requirements.

Funding arrangements - Para 147(a)

Funding arrangements are reviewed at least every three years following the release of the triennial actuarial review and were last reviewed following completion of the triennial review as at 30 June 2012. Contribution rates are set after discussions between the employer, STC and NSW Treasury.

Funding positions are reviewed annually and funding arrangements may be adjusted as required after each annual review.

Surplus/deficit

The following is a summary of the 30 June 2014 financial position of the Fund calculated in accordance with AAS 25 Financial Reporting by Superannuation Plans:

SASS SANCS SSS Total 30-Jun-14 30-Jun-14 30-Jun-14 30-Jun-14

$’000 $’000 $’000 $’000

Accrued benefits 16,145 1,244 1,183 18,572 Net market value of Fund assets (23,323) (1,340) (1,020) (25,683) Net (surplus)/deficit (7,178) (96) 163 (7,111)

0 0 0 0 Contribution recommendations

Recommended contribution rates for the entity are:

SASS SANCS SSS multiple of

member contributions

% member salary

multiple of member

contributions 0.0 0.0 0.0

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Economic assumptions

The economic assumptions adopted for the 30 June 2012 actuarial investigation of the Pooled Fund are:

Weighted-Average Assumptions

Expected rate of return on Fund assets backing current pension liabilities 8.3% pa Expected rate of return on Fund assets backing other liabilities 7.3% pa

Expected salary increase rate (excluding promotional salary increases)

SASS, SANCS, SSS 2.7% pa (PSS 3.5% pa) to 30

June 2018, then 4.0% pa

thereafter Expected rate of CPI increase 2.5% pa Expected contributions - Para 147(b)

SASS SANCS SSS

Total

Financial Year

to 30 June 2015

Financial Year to

30 June 2015

Financial Year to

30 June 2015

Financial Year to

30 June 2015

$’000 $’000 $’000

$’000

Expected employer contributions - - - -

Maturity profile of defined benefit obligation - Para 147(c)

The weighted average duration of the defined benefit obligation is 10 years.

Profit and Loss Impact SASS SANCS SSS Total





$’000 $’000 $’000 $’000

Current service cost 188 35 - 223

Net interest (73) - 19 (54)

Past service cost - - - -

(Gains)/Loss on settlement - - - -

Defined benefit cost 115 35 19 169 0 0 0 0

Other Comprehensive Income SASS SANCS SSS Total





$’000 $’000 $’000 $’000

Actuarial (gains)/losses on liabilities 1,345 154 278 1,777

Actual return on Fund assets less Interest income (257) (19) (10) (287)

Adjustment for effect of asset ceiling - - - - Total re-measurement in Other Comprehensive Income 1,087 135 268 1,490

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NOTE 18 – CURRENT/ NON CURRENT - OTHER Consolidated

2014 $’000

Parent 2014 $’000

Current Unspent grants 1,096 1,096 Non-Current Unspent grants 872 872 1,968 1,968

NOTE 19 – EQUITY TRANSFER On 1 January 2014 the Local Land Services Act 2013 legislation commenced. The assets, rights and liabilities of following former bodies were transferred to LLS:

the State Management Council of Livestock Health and Pest Authorities the State Policy Council of Livestock Health and Pest Authorities each Livestock Health and Pest Authority each Catchment Management Authority

This is an administrative restructure, which is treated as a contribution by owners and recognised at the amount at which the assets and liabilities were recognised by the transferor immediately prior to the restructure. The carrying value of assets and liabilities held by the former bodies as at 1 January 2014 approximates the fair value transferred to LLS.

1 January 2014 $’000

Cash 59,255

Receivables 23,639

Property, plant and equipment 489,580

Inventory 1,568

Intangibles 1,324

Payables (7,956)

Provisions (14,473)

Net assets transferred to LLS on equity transfer 552,937 The table below sets out the assets and liabilities of each of the former entities transferring to LLS. These are shown under the headings of CMA and LHPA. A number of adjustments are made to the component balances brought through; explanations for the key items are provided below:

(a) Adjustments are reflected to the component LHPA balances brought into LLS in respect of the recognition of defined benefits superannuation in the hands of LLS. This adjustment is incremental to the balances recognised by each of the former LHPA entities which recognised superannuation commitments. In addition, $368M was recognised in respect of TSR land not previously recognised in the financial statements of the former LHPA’s. It should be noted, this adjustment is also incremental, as two of the former LHPA’s had recognised TSR land in their financial statements.

(b) Two of the former CMA’s had funds under management of the Nature Conservation Trust. These funds aggregated to $2.193M at 1 January, and were not recognised in the financial statements as assets. The amounts have been recognised by LLS in accordance with the terms of the management arrangements.

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Cash and deposits

Inventory Receivables / Other

Property, plant and

equipment

Intangibles Payables / Other

Provisions Net Assets / Equity

LHPA $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Central North 3,250 71

654 3,632 - (329) (699) 6,579

Central West 1,189 68

398 2,498 - (359) (474) 3,320

Cumberland 784 32

270 1,964 - (214) (586) 2,250

Darling 596 31

100 2,798 - (103) (87) 3,335

Hume 1,621 46

739 3,664 - (334) (777) 4,959

Lachlan 1,882 128

397 2,398 - (657) (1,129) 3,019

Mid Coast 2,607 43

718 2,327 - (481) (637) 4,577

New England 2,083 77

499 3,323 - (458) (718) 4,806

North Coast 1,891 14

339 2,462 - (339) (654) 3,713

North West 4,845 98

382 6,901 - (499) (624) 11,103

Riverina 1,005 101

487 62,707 4 (514) (1,013) 62,777

South East 375 33

248 2,510 - (149) (423) 2,594

Tablelands 601 50

276 3,124 - (557) (848) 2,646

Western 123 45

56 1,908 - (229) (88) 1,815 Division 167 - - - - (13) - 154 State Management Council 1,556 -

160 48 409 (253) (497) 1,423

Adjustments (a) - -

2,152 368,073 - -

347 370,572

Total LHPA 24,575 837

7,875 470,337 413 (5,488) (8,907) 489,642

Cash and deposits

Inventory Receivables / Other

Property, plant and

equipment

Intangibles Payables / Other

Provisions Net Assets / Equity

CMA $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Northern Rivers 1,500 -

728 16 - (519) (380) 1,345

Border Rivers Gwydir 2,816 -

614 220 - (97) (542) 3,011

Namoi 1,510 -

841 122 - (204) (309) 1,960

Hunter Central Rivers 5,483 55

1,534 4,453 911 (256) (551) 11,629

Hawkesbury Nepean 3,232 -

1,440 13,665 - (229) (709) 17,399

Southern Rivers 3,499 -

1,507 241 - (70) (605) 4,572

Murray 4,909 676

2,782 270 - (220) (496) 7,921

Murrumbidgee 2,249 -

1,984 116 - (253) (689) 3,407

Lachlan 3,905 -

145 58 - (427) (445) 3,236

Central West 2,115 -

659 67 - (110) (547) 2,184

Western 3,462 -

1,314 26 - (83) (293) 4,426

Adjustments (b) - -

2,216 (11) - - 2,205

Total CMA 34,680 731

15,764 19,243 911 (2,468) (5,566) 63,295

Total CMA and LHPA 59,255 1,568

23,639 489,580 1,324 (7,956) (14,473) 552,937

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NOTE 20 - COMMITMENTS FOR EXPENDITURE

(a) Operating lease commitments


Parent 2014 $’000

Not later than one year 923 923 Later than one year and not later than 5 years 579 579 Later than 5 years - - Total including GST 1,502 1,502

The commitments above include GST expected to be recoverable from the Australian Taxation Office. Operating lease commitments include contracted amounts for various office equipment, photocopiers and computers and motor vehicles under operating lease contracts. Office leases vary from 1 to 5 years with, in some cases, options to extend. These leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.

(b) Capital commitments

The entity did not have any capital commitments at balance date.

(c) Finance lease commitments

Minimum lease payment commitments in relation to finance leases payable as follows:

Consolidated 2014

$’000

Parent 2014

$’000

Minimum lease payment commitments in relation to finance leases

Not later than one year 20 20

Later than one year and not later than five years 47 47

Minimum lease payments commitment in relation to finance leases 67 67 Less: future finance charges (8) (8)

Present value of minimum lease payments 59 59

NOTE 21 - CONTINGENT LIABILITIES/ASSETS

Name of the Matter

Description of case Potential settlement costs

Potential legal costs

Total potential liability

Contingent Liability

Henwood vs NWLLS

Damages are being claimed due to a cancelled Travelling Stock Route permit.

$135,000 is being sought. Matter before the courts.

$50,000 $185,000

Public Service Association (PSA) v LLS

The PSA is seeking remedy for employees of LLS legacy organisations in relation to the contractual rights of certain staff to have private use of work vehicles.

$50,000

Contingent

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Asset

Mandelman Station

The owners of Mandelman Station had a 15 year incentive program to undertake certain works and maintenance on their property and wish to sell the property within the 15 year contract period.

$265,000. Negotiations with the owners are underway.

Not known

NSW Crown Land has approximately 5,500 native title claims to review, pertaining to TSR’s. The land in question is fully impaired when the Minister or the Court approves the claim. At the date of this report, it is not known how many of the claims may be accepted, which would require impairment to be recognised.

NOTE 22 - RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET RESULT

Cash Cash at the end of the financial period as shown in the statement of cash flows is reconciled to the statement of financial position and profit or loss and other comprehensive income as follows:

Consolidated

2014 $’000

Parent 2014 $’000

Net cash from operating activities 24,627 24,627 Depreciation and amortisation (1,760) (1,760) Doubtful debts expense (327) (327) Superannuation expense (Actuarial movement) (109) - Gain on sale of fixed assets 5 5 Increase/(decrease) in receivables 15,132 15,132 Increase/(decrease) in inventories and biological assets (188) (188) Increase/(decrease) in prepayments 94 94 (Increase)/decrease in payables (31,114) (33,137) (Increase)/decrease in provisions (1,120) (696) (Increase)/decrease in other liabilities (1,968) (1,968) Net result 3,272 1,782

The entity operates on a multi-year investment strategy. Consequently, the net result for any one financial period should not be viewed in isolation.

NOTE 23 - FINANCIAL INSTRUMENTS

The principal financial instruments utilised by LLS are outlined below. These financial instruments arise directly from the entity’s operations or are required to finance the entity’s operations. The entity does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The entity’s main risks arising from financial instruments are outlined below, together with the entity’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout these financial statements. The LLS Board of Chairs has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the entity, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the entity’s Board of Chairs on a continuous basis.

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a) Financial instrument categories

Financial Assets

Note Category Consolidated Carrying Amount

2014 $’000

Parent Carrying Amount

2014 $’000

Class:

Cash and cash equivalents

6 N/A 83,872 83,872

Receivables1 7 Loans and receivables (at

amortised cost) 32,005 32,005

Financial Liabilities

Note Category Consolidated Carrying Amount

2014 $’000

Parent Carrying Amount

2014 $’000

Class:

Payables2 15 Financial liabilities measured at

amortised cost 36,780 52,003

Borrowings 16 Financial liabilities measured at

amortised cost 59 59

Notes 1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). 2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7).

b) Credit risk Credit risk arises when there is the possibility of debtors defaulting on their contractual obligations, resulting in a financial loss to LLS. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the financial assets of LLS, including cash, receivables and LLS deposits. No collateral is held by LLS. LLS has not granted any financial guarantees. LLS manages the credit risk associated with financial assets, other than receivables, through the selection of counterparties and establishment of minimum credit rating standards.

(i) Cash and cash equivalents

Cash comprises cash on hand. (ii) Receivables - trade debtors

All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Procedures as established in the Treasurer’s Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the entity will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and debtor credit ratings. Sales are made on 30 day terms. No interest is earned on trade debtors except for rates as detailed in the summary of significant accounting policies, income recognition, rates and charges. The entity is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. Based on past experience, debtors that are not past due (2014: $28.408M)

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and less than six months old in the case of sundry debt and eighteen months old in the case of rates debt (2014:$1.212M) are not considered impaired. Together these represent 99% of the total trade debtors. Under the provisions of the Local Land Services Act 2013, land may be sold to recover unpaid rates when unpaid for greater than five years. The only financial assets that are past due or impaired are ‘sales of goods and services’ in the ‘receivables’ category of the balance sheet.

Total 1,2 ($’000)

Past due but not impaired ($’000) 1,2

Considered impaired ($’000) 1,2

30 June 2014

< 3 months overdue 656 656 -

3 months – 6 months overdue 293 293 -

> 6 months overdue 1,407 1,080 327

1. Each column in the table reports ‘gross receivables’; 2. The ageing analysis excludes statutory receivables, as these are not within the scope of AASB7 and

excludes receivables that are not past due and not impaired. Therefore, the ‘total’ will not reconcile to the receivables total recognised in the statement of financial position.

c) Liquidity risk

Liquidity risk is the risk that LLS will be unable to meet its payment obligations when they fall due. LLS continuously manages risk through monitoring future cash flows and maturities, planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of loans and other advances. During the current period, there were no defaults or breaches on any payables. No assets have been pledged as collateral. The exposure of LLS to liquidity risk is deemed insignificant based on current assessment of risk. The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in NSW Treasury Circular 11/12. For small business suppliers, where terms are not specified, payment is made not later than 30 days from date of receipt of a correctly rendered invoice. For other suppliers, if trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. For small business suppliers, where payment is not made within the specified period, simple interest must be paid automatically unless an existing contract specifies otherwise. For payments to other suppliers the Head of an authority (or a person appointed by the Head of an authority) may automatically pay the supplier simple interest. The rate of interest applied during the period was nil (1 January 2014: Nil%). The table following summarises the maturity profile of the financial liabilities of LLS, together with the interest rate exposure.

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Consolidated

Interest Rate Exposure

Maturity Dates

30 June 2014

Weighted Average Effective Int. Rate

Nominal Amount

Fixed Interest

rate

Variable Interest

rate

Non- interest Bearing < 1 year

1-5 years > 5 years

$’000 $’000 $’000 $’000 $’000 $’000 $’000 Payables 36,780 - - 36,870 36,780 - - Borrowings: Finance leases 18.69% 59 - - - 12 47 1 January 2014

Payables: - - - - - - - - Borrowings: Finance leases - - - - - - - -

- - - - - - - - Parent

Interest Rate

Exposure

Maturity Dates

30 June 2014

Weighted Average Effective Int. Rate

Nominal Amount

Fixed Interest

rate

Variable Interest

rate

Non-

interest Bearing < 1 year 1-5 years > 5 years

$’000 $’000 $’000 $’000 $’000 $’000 $’000

Payables 52,003 - - 52,003 52,003

Borrowings Finance leases 18.69% 59 - - - 12 47

1 January 2014

Payables - - - - - - - -

Borrowing Finance leases - - - - - - - -

- - - - - - - -

d) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The exposure of LLS to market risk is primarily through interest rate risk on borrowings. LLS has no exposure to foreign currency risk and does not enter into commodity contracts.

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which LLS operates and the time frame for the assessment (i.e. until the end of the next annual reporting

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period). The sensitivity analysis is based on risk exposures in existence at the statement of financial position date. The analysis assumes that all other variables remain constant. e) Interest rate risk As LLS has no interest bearing liabilities its exposure to interest rate risk is minimal. LLS does not account for any fixed rate financial instruments at fair value through profit or loss or as available for sale. Therefore, for these financial instruments a change in interest rates would not affect profit or loss or equity. A reasonably possible change of +/- 1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and amended where there is a structural change in the level of interest rate volatility. LLS’s exposure to interest rate risk is set out below.

Consolidated $’000

Carrying amount

-1% +1%

Profit Equity Profit Equity

30 June 2014

Financial assets Cash and cash equivalents 83,872 (838) (838) 838 838 Receivables 32,005 (320) (320) 320 320 Financial liabilities Payables 36,780 (368) (368) 368 368 Borrowings 59 (1) (1) 1 1 1 January 2014

Financial assets Cash and cash equivalents - - - - - Receivables - - - - - Financial liabilities Payables - - - - - Borrowings - - - - -

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f) Other price risk

LLS holds no units in Hour-Glass investment trusts.

g) Fair value measurement

Financial instruments are generally recognised at cost. The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value because of the short-term nature of many of the financial instruments.

NOTE 24 - AFTER BALANCE DATE EVENTS There are no significant events subsequent to balance date.

Parent $’000

Carrying amount

-1% +1%

Profit Equity Profit Equity

30 June 2014

Financial assets Cash and cash equivalents 83,872 (838) (838) 838 838 Receivables 32,005 (320) (320) 320 320 Financial liabilities Payables 52,003 (520) (520) 520 520 Borrowings 59 (1) (1) 1 1 1 January 2014

Financial assets Cash and cash equivalents - - - - - Receivables - - - - - Financial liabilities Payables - - - - - Borrowings - - - - -

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