local port of portland bay 2018-19 - glenelg.vic.gov.au€¦ · annual report 2018-2019 contents 1....

2018-19ANNUAL REPORT

Local Port of Portland Bay

Version: 6, Version Date: 17/10/2019Document Set ID: 2595931

Lo c a l Po r t o f Po r t l a n d B a yANNUAL REPORT

2018-2019

CONTENTS1. Introduction 4

2. Local Port of Portland Bay Advisory Committee 5

3. Summary of Operations 2018/ 2019 6

3.1 Overview 6

3.2 Trawler Wharf 6

3.3 Portland Bay Marina 6

3.4 Swing Moorings & Aids to Navigation 6

3.5 Boat Ramp South 6

3.6 Boat Ramp North 6

3.7 Transit Jetty 7

3.8 Port Events 7

3.9 Projects 7

3.10 Safety and Environment Management Plan 8

3.11 Incident Reports 9

3.12 Permits 9

4. Glenelg Shire Council Organizational Structure 2018/2019 10

5. Freedom of Information Act 1982 Disclosure 11

6. Protected Disclosure Act 2012 11

7. Annual Financial Report 12


Local Port of Portland Bay Annual Report 2018 / 20192

The Local Port of Portland Bay:• Recognizes Portland’s early maritime heritage.• Provides access to the water and values sense of place.• Maintains and grows existing maritime infrastructure.• Supports the Glenelg Shire’s emphasis on economic development.• Accepts responsibility for preserving our environment.

Local Port of Portland BayMISSION STATEMENTThe Mission of the Local Port of Portland Bay is to serve the residents of Portland, the wider Glenelg Shire, and Ocean Mariners and Tourists by responsibly developing and maintaining infrastructure and facilities for the fishing industry and marine recreation. Our objective is to promote economic growth, business opportunities, job creation and enhancing the quality of life while safeguarding the marine environment.


Local Port of Portland Bay Annual Report 2018 / 2019 3

GROWING GLENELGSustaining and growing a diverse economy and social prosperity

CONNECTING GLENELGConnecting people, places and spaces

GROWING GLENELGEmbracing inclusive, healthy, sustainable and diverse cultures

CREATIVE GLENELGCreative, inspired, forward-thinking and action-oriented

LEADING GLENELGCreate shared visions within the community, ensuring agreed outcomes

The Council PlanThe Glenelg Shire Council has identified and created the following five key themes, which form the foundation and future direction of the Glenelg Shire Council for the 2017 - 2021 period.



1. IntroductionThroughout the year the Local Port of Portland Bay’s Trawler Wharf continued to operate at capacity (and at times over capacity) with the rafting up of certain vessels during peak periods. The Local trawlers have continued to occupy 8 of the available 9 berths within the Wharf, with a further 11 itinerant commercial vessels utilizing the facility that the Glenelg Shire Council offers. There was a total of 3 squid vessels that worked the squid season out of Portland along with fishing trawlers and other commercial vessels associated with the BIOWAVE energy project off the coast of Port Fairy. The relocation of Portland’s Southern Rock Lobster Fishing Fleet eventuated seeing vessels depart from the Port of Portland’s Old Fisherman’s wharf into the Glenelg Shire Councils Portland Bay Marina and Trawler Wharf. This saw both the Portland Bay Marina and Trawler Wharf reach capacity highlighting the need for future expansion within the Local Port of Portland Bay’s facilities. Portland’s Southern Blue Fin Tuna season has been another one of great success. This industry proves to be of great economic benefit to our region with 20 charter fishing vessels operating out of Portland, with demand growing for Marina berths each season. Thousands of anglers again visited Portland’s shores in search of the Southern Blue Fin Tuna. With estimated projections of $10 million dollars injected into

Portland’s economy annually, previous and continued Glenelg Shire investment is now certainly providing strong benefits to Portland and the wider community. To continue accommodating growth, future Local Port development will be driven by the Portland Marine Master Plan. This will drive the next phase of marine infrastructure investment. The plan provides enough information for decision makers to make a case for future investment opportunities within the Local Port of Portland Bay.The Glenelg Shire Council continues to drive the next phase of Local Port investment proposals mentioned throughout the 2016 ‘Marine Master Plan’. Areas of concentration are mainly focused around the possible ‘Trawler Wharf modifications/extensions’ and ‘On water Fuel Facilities’. The Local Port management team continues to work with the Local Port’s stakeholders including the Port of Portland and ‘Transport for Victoria’ to ensure the safe operation of the Local Port. The Local Port management team have also participated in training such as marine pollution response via the Australian Maritime Safety Authority and general emergency preparedness training via the Marina Industries association. A team member was also called upon for an Oil Pollution response incident that occurred in the Solomon Islands in early 2019.



2. Local Port of Portland Bay Advisory Committee

Glenelg Shire CouncilorsCr Geoff White, Chair and Council representative Cr Alistair McDonald, Deputy Chair and Council representative

Port of PortlandJason Sweetman, Harbor Master Shannon Curran, Operations Manager

The function of the Advisory Committee is to provide advice to Council on policy, issues and operations. Specific issues on which the Advisory Committee may provide advice include:

• Strategic issues regarding port boundary management• Asset management issues• Operating policies and procedures• Marine pollution management; and• Safety and environmental management, risk audits and accreditation.

2.1 MeetingsThere were four Local Port of Portland Bay Advisory Committee Meetings held during 2018/19. The Committee meetings allow the Local Port and the Port of Portland to discuss issues and update representatives about each of the Portland Harbor’s current operational issues. Community representatives also have an opportunity to raise issues concerning the community and other Local Port stakeholders. The Advisory Committee meetings continue to prove to be an invaluable tool for Local Port Management and Port of Portland in the development of strategic policies and procedures. The Community Representatives bring substantial experience in commercial fishing and boating operations as well as their infrastructure requirements.

Number of MeetingsMembers Position Attended Apologies Cr Geoff White Council Chair 4 0Cr Alistair McDonald Council Deputy Chair 4 0Jason Sweetman Port of Portland 3 1Shannon Curran Port of Portland 1 3Les Thomas Community Rep 2 2John Sealey Community Rep 3 1Michael Pickles Community Rep 4 0Portland Coastguard Community Rep 2 2

2.2 Local Port of Portland Bay Advisory Committee Members

Community MembersLes ThomasJohn SealeyMichael Pickles

Glenelg Shire Council OfficersRobert Alexander, Director Assets Scott Easson, Local Port Manager Jenny Hogan, Local Port Admin

Attendance Register - Advisory Committee Meetings 2018 / 19



3. Summary of Operations 2018 / 20193.1 OverviewThe Glenelg Shire Councils Local Port of Portland Bay areas of Management compromises the Trawler Wharf, Boat Ramp South, Portland Bay Marina, Transit Jetty, Boat Ramp North, Local Port Water Ways, Swing Moorings and the Aids to Navigation. Other facilities that fall under the Local Port’s areas of management include the associated fish cleaning table areas and associated car parks.

3.2 Trawler WharfThe Trawler Wharf is currently home to 8 Commercial fishing trawlers (Sheet piled section) and 4 Southern Rock Lobster fishing vessels (Floating pontoons). There is also itinerant berthing available for visiting commercial vessels such as Trawlers, tugs and tender vessels and other large vessels requiring refueling and the restocking of general stores/supplies. The Trawler Wharf is also used as a designated refueling/bunkering area for larger Charter vessels. The Trawler Wharf registered approximately 11 different itinerant/visiting vessels throughout the year with 138 days of itinerant berthing within the Trawler Wharf for the year.

3.3 Portland Bay MarinaThe Portland Bay Marina comprises of 70 serviced berths which cater for annual leaseholders and visiting itinerant vessels. Demand for berths in the Marina continues, particularly during peak periods such as the Southern Blue Fin Tuna season (March to August). The Marina continues to see increases in the number of visiting yachtsmen requiring shelter and supplies to continue their journey. The Portland Bay Marina accommodated for 103 itinerant vessels throughout the year.

3.4 Swing Moorings and Aids to NavigationThere are now three active swing moorings within the Local Port of Portland Bay with one further application that was granted, in April 2019. The Local Port also manages three aids to navigation throughout the Local Port’s area of responsibility.

3.5 Boat Ramp South The Local Port’s Boat Ramp South continued to see heavy use during the 2019 tuna season. Again, the season started in March 2018, and was continuing strongly into July. The fish cleaning tables are temporarily shut down due to aggressive seals within the harbor.

3.6 Boat Ramp North The newer northern Boat Ramp is gaining increased usage each season. Local Port management has been monitoring waste removal totals from each site since its completion in July 2014 and the total weights removed are slowly showing higher tonnages in favor of the Boat Ramp North site. Most vessels chasing the Southern Blue Fin Tuna are now using the preferred state of the art Boat Ramp that was recently voted as the second best in the state. This area provides more trailer parking, more fish cleaning tables and generally more space to rig and de-rig the fisherman’s vessels. Small improvements have been added to this area with the construction of a wash down bay near the facilities exit. Planning is underway for a new fish weigh station/gantry that will accompany the area.



3.7 Transit JettyThe Transit Jetty plays a much-underestimated role for the smooth operations for the Local Port’s functioning ability. This facility is used heavily by the charter operators that berth within the Portland Bay Marina to pick up and drop of their customers. Refueling permits are also issued to certain charter operators to refuel their vessels mainly by portable approved refueling devices.

3.8 Local Port EventsThe Local Port of Portland Bay once again co-hosted the ‘Hooked on Tuna’ fishing competition. The Portland Tuna Fishing Competition is a joint initiative between the Glenelg Shire Council, the Lions Club of Portland, the Portland Sport Fishing Club and the Victorian Fisheries Authority. Portland’s ‘Upwelling Festival’ is held every October and the Local Port’s Trawler Wharf continues to become a focal point of celebrations on the day. The festival saw large number of visitors on the wharf for the blessing of the fleet and the swim for the cross. The New Year’s Eve spectacular fireworks display once again took place from the boat ramp North facility. This site is the most spacious and suitable for safety reasons and provides great display vantage points for the entire township to enjoy including Marina users.The National Association of Underwater Divers again undertook their “Standard Dress Diving Course” from the Trawler Wharf during the Queen’s Birthday weekend in June. “Standard Dress Diving” is the use of the old-fashioned hard hat helmets and suits. The event is coordinated by Portland’s Professional Diving Services.

3.9 Projects Trawler Wharf A business case is being formed to have a basic amenities block/toilet block erected on the trawler wharf. The need for the amenities block has been highlighted to Local Port management for some time.Local Port management also highlighted the need to formalise a small car park at the foot of the Trawler Wharf. This carpark has been completed and now provides much safer conditions for the public and operators on the trawler wharf.

Portland Bay Marina CCTV upgrades occurred throughout the Local Port which also included the addition of a new state of the art camera erected on the end of the Portland Bay Marina.

Boat Ramp North The inclusion of the boat and trailer wash down bay has proved beneficial to the Boat Ramp North facility which has proved popular to the users of the facility. Local Port management is also is the final stages of having a new fish weight station erected within the Boat Ramp North facility which will eliminate risks associated with handling large fish to and from the weight station to the fish cleaning tables.

Transit Jetty Significant concrete repair works were completed to the top decks of the transit jetty pontoons due to severe cracking. These works have proven beneficial and will prolong the life span of this facility.

Swing Moorings One new swing mooring was installed within the Local Port of Portland Bay bringing the total to 3. The Local Port also has 3 navigational aids within its waters with all mooring tackle being identical for ease of future maintenance.

3. Summary of Operations 2018 / 2019 continued



3.10 Safety and Environmental Management Plan (SEMP)


The SEMP is a working document, with ongoing audits, and reviews undertaken when any incidents or near miss incidents occur, or when changes to key legislation, regulations or changes in the nature, scale or extent of port activities occur. The SEMP includes a detailed risk register which identifies all OH&S and Environmental risks within the Local Port along with the subsequent controls that have been developed.Associated procedures such as Job Safety Analysis (JSA), Safe Work Method Systems and Permit processes for high risk work continue to be reviewed and implemented for contractors working within the Local Port. A copy of the SEMP can be located on the Glenelg Shire Council website. Comments from Local Port users and members of the public are welcome.

An independent audit was completed in early 2019. Such audits are required every 3 years all recommendations/audit findings have been closed out. The SEMP is a legislative requirement under Part 6A of the Port Services Act 1995 (Vic.) and provides the basis and direction of Safety and Environment Management within Local Port of Portland Bay. The SEMP has been designed to promote the highest level of safety and environmental performance across all aspects of Local Port activities. It encourages management of related issues arising from Port activities and operations for the benefit of employees, Port users, and the wider community.Early 2019, the Local Port of Portland Bay SEMP review was again undertaken and encompasses all the facilities in the Local Port. The SEMP was updated to also reflect the comments from the 2019 Auditor’s report on the Local Port.



Date Incident Type Details Injury

27/07/2018 Motor Vehicle Local Port Vehicle hit by third party NO03/08/2018 Property Damage Damage to Marina pontoon - Storm event NO07/11/2018 Member of Staff Musculoskeletal - Minor sprain to wrist YES11/12/2018 Near Miss Dangerous Goods - Suspected bomb NO caught on fishing vessel

Local Port Incident Register

3.11 Incident Reports There was a total of 4 incidents either involving the Local Port or Local Port staff. Refer Incident Register below for details.

3.12 Permits There was a total of 14 permits issued through the Local Port management team with a total of 8 crane permits issued for the Trawler Wharf facility. The remaining permits were for either school bay swims and hot work or diving permits.




4. Glenelg Shire Council Organisational Structure

Glenelg Shire Council

Chief Executive Officer

Director Assets

Local Port of Portland Bay Manager

Port OfficerLocal Port of Portland Bay

Port OfficerLocal Port of Portland Bay

Local Port of Portland

Bay Advisory Committee



5. Freedom of Information Act 1982 DisclosureThe Victorian Freedom of Information Act 1982 requires agencies to disclose actions taken in accordance with the Act. The following information is provided to satisfy this requirement for the period 1 July 2018 – 30 June 2019.The delegated officer is the Director Corporate Services.

6. Protected Disclosure Act 2012The Victorian Protected Disclosure Act 2012 requires agencies to disclose actions taken in accordance with the Act. The following information is provided to satisfy requirements for the period 1 July 2018 – 30 June 2019.The delegated Officer is the Director Corporate Services. There were no matters referred during the reporting period.


Local Port of Portland Bay Financial Report 2018 / 201912

Lo c a l Po r t o f Po r t l a n d B a yANNUAL FINANCIAL REPORT

For the Year Ended 30 June 2019

LOCAL PORT OF PORTLAND BAY 2018/2019 Financial Report

Page

1234

5-7

Note 1 Performance against budget 1.1 Income and expenditure 8 1.2 Cash flows from Operating Activities 9

Note 2 User Fees 10Note 3 Grants - Operating 10Note 4 Other Income 10Note 5 Employee Costs 10Note 6 Contract Expenses 10Note 7 Material Expenses 11Note 8 Other Expenses 11Note 9 Cash and Cash Equivalents 11Note 10 Trade and Other Receivables 11Note 11 Provisions and Adjustments directly to Equity 12Note 12 Reconciliation of cash flows from operating activities to surplus/(deficit) 13Note 13 Contingent Liabilities and Contingent Assets 13Note 14 Superannuation 13Note 15 Financial Instruments 14Note 16 People and relationships 15-16Certification by Chief Executive Officer 17Auditor's Report on Financial Report 18

Overview

FINANCIAL REPORT

Financial StatementsComprehensive Income Statement

LOCAL PORT OF PORTLAND BAYTable of Contents

Balance SheetStatement of Changes in EquityStatement of Cash Flows

Notes to Financial Statements



Page

1234

5-7

Note 1 Performance against budget 1.1 Income and expenditure 8 1.2 Cash flows from Operating Activities 9

Note 2 User Fees 10Note 3 Grants - Operating 10Note 4 Other Income 10Note 5 Employee Costs 10Note 6 Contract Expenses 10Note 7 Material Expenses 11Note 8 Other Expenses 11Note 9 Cash and Cash Equivalents 11Note 10 Trade and Other Receivables 11Note 11 Provisions and Adjustments directly to Equity 12Note 12 Reconciliation of cash flows from operating activities to surplus/(deficit) 13Note 13 Contingent Liabilities and Contingent Assets 13Note 14 Superannuation 13Note 15 Financial Instruments 14Note 16 People and relationships 15-16Certification by Chief Executive Officer 17Auditor's Report on Financial Report 18

Overview

FINANCIAL REPORT

Financial StatementsComprehensive Income Statement

LOCAL PORT OF PORTLAND BAYTable of Contents

Balance SheetStatement of Changes in EquityStatement of Cash Flows

Notes to Financial Statements



Note 2019 2018$'000 $'000

IncomeUser Fees 2 119 108 Grants - Operating 3 179 179 Other Income 4 2 2

Total Income 300 289

ExpensesEmployee Costs 5 171 164 Contract Expenses 6 79 70 Material Expenses 7 38 34 Other Expenses 8 12 6 Total Expenses 300 274

Surplus / (deficit) for the year - 15

Total Comprehensive Result - 15

Comprehensive Income StatementFor the Year Ended 30 June 2019

The above comprehensive income statement should be read in conjunction with the accompanying notes.

Page 1


Note 2019 2018 $'000 $'000

AssetsCurrent assetsCash and Cash Equivalents 9 114 127 Trade and Other Receivables 10 17 4 Total current assets 131 131

Non-current assetsTotal non-current assets - - Total Assets 131 131

LiabilitiesCurrent liabilitiesTotal current liabilities - -

Non-current liabilitiesTotal non-current liabilities - - Total Liabilities - -

Net Assets 131 131

Represented by:Accumulated Surplus 131 131

Equity 131 131

Balance SheetAs at 30 June 2019

The above balance sheet should be read in conjunction with the accompanying notes.

Page 2Page 1 Page 2Version: 6, Version Date: 17/10/2019Document Set ID: 2595931


Note 2019 2018 $'000 $'000

AssetsCurrent assetsCash and Cash Equivalents 9 114 127 Trade and Other Receivables 10 17 4 Total current assets 131 131

Non-current assetsTotal non-current assets - - Total Assets 131 131

LiabilitiesCurrent liabilitiesTotal current liabilities - -

Non-current liabilitiesTotal non-current liabilities - - Total Liabilities - -

Net Assets 131 131

Represented by:Accumulated Surplus 131 131

Equity 131 131

Balance SheetAs at 30 June 2019

The above balance sheet should be read in conjunction with the accompanying notes.

Page 2Page 2Version: 6, Version Date: 17/10/2019Document Set ID: 2595931


Accumulated Accumulated

Total TotalSurplus / (deficit)

Surplus / (deficit)

2019 2018 2019 2018$'000 $'000 $'000 $'000

Balance at beginning of the financial year 131 116 131 116

Surplus/(deficit) for the year - 15 - 15

Balance at end of the financial year 131 131 131 131

Notes

Statement of Changes in EquityFor the Year Ended 30 June 2019

The above statement of changes in equity should be read in conjunction with the accompanying notes.


Inflows/ Inflows/(Outflows) (Outflows)

2019 2018Notes $'000 $'000

Cash flows from operating activitiesPayments

Employee Costs (171) (164) Contract Costs (79) (70) Material Costs (38) (34) Other Expenses (12) (7)

Total Payments (300) (275)

ReceiptsUser Fees and Charges 106 122 Government Grants 179 179 Other Receipts 2 2

Total Receipts 287 303 Net cash provided by/ (used in) operating activities 12 (13) 28

Net increase/(decrease) in cash and cash equivalents (13) 28 Cash and cash equivalents at the beginning of the year 127 99

Cash and cash equivalents at the end of the financial year 9 114 127


The above statement of cash flows should be read in conjunction with the accompanying notes.

Statement of Cash FlowsFor the Year Ended 30 June 2019



Overview

Significant Accounting Policies

(a) Basis of accounting

(b) Revenue recognition

Grants and contributions

User charges, fees and fines

Notes to the Financial ReportFor the Year Ended 30 June 2019

These financial statements have been prepared on the accrual and going concern basis.

A provision for doubtful debts is recognised when collection in full is no longer probable.

These financial statements are a general purpose financial report that consists of a Comprehensive Income Statement,Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and notes accompanying these financialstatements. The general purpose financial report complies with Australian Accounting Standards, other authoritativepronouncements of the Australian Accounting Standards Board, and Australian Accounting Interpretations.

Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where appropriate,comparative figures have been amended to accord with current presentation, and disclosure has been made of anymaterial changes to comparatives.

Income is recognised when Council obtains control of the contribution or the right to receive the contribution. It isprobable that the economic benefits comprising the contribution will flow to Council and the amount of the contributioncan be measured reliably.

The financial report has been prepared in accordance with the requirements of the Management Agreement (1 July2017 - 30 June 2022) signed with the Department of Transport (DoT).

Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a granthas been secured, and are valued at their fair value at the date of transfer.

Where grants or contributions recognised as revenues during the financial year were obtained on condition that they beexpended in a particular manner or used over a particular period and those conditions were undischarged at balancedate, the unused grant or contribution is disclosed in Note 3. The note also discloses the amount of unused grant orcontribution from prior years that was expended on Council’s operations during the current year.

A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has notbeen provided at balance date.

User charges, fees and fines are recognised as revenue when the service has been provided, the payment is received,or when the penalty has been applied, whichever first occurs.




Significant Accounting Policies (cont.)

(c) Repairs and maintenance

(d) Cash and cash equivalents

(e) Employee benefits

Wages and salaries

Annual leave

Long service leave

Classification of Employee Benefits

Superannuation

The superannuation expense for the reporting year is the amount of the statutory contribution the Council makes to thesuperannuation plan which provides benefits to its employees together with any movements (favourable/unfavourable)in the position of any defined benefits schemes. Details of these arrangements are detailed in Note 14.

Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balancedate. Annual leave expected to be paid within 12 months is measured at nominal value based on the amount, includingappropriate oncosts, expected to be paid when settled. Annual leave expected to be paid later than one year has beenmeasured at the present value of the estimated future cash outflows to be made for these accrued entitlements.Commonwealth bond rates are used for discounting future cash flows.

Long service leave entitlements payable are assessed at balance date having regard to expected employeeremuneration rates on settlement, employment related oncosts and other factors including accumulated years ofemployment, on settlement, and experience of employee departure per year of service. Long service leave expected tobe paid within 12 months is measured at nominal value based on the amount expected to be paid when settled. Longservice leave expected to be paid later than one year has been measured at the present value of the estimated futurecash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting futurecash flows.

An employee benefit liability is classified as a current liability if the Council does not have an unconditional right to defersettlement of the liability for at least 12 months after the end of the period. This would include all annual leave andunconditional long service leave entitlements.

Liabilities for wages and salaries and rostered days off are recognised and measured as the amount unpaid at balancedate and include appropriate oncosts such as workers compensation and payroll costs.

For the purposes of the Statement of Cash Flows, cash and cash equivalents include cash on hand only.

Routine maintenance, repair costs, and minor renewal costs are expensed as incurred. Where the repair relates to thereplacement of a component of an asset and the cost exceeds the capitalisation threshold, the cost is capitalised anddepreciated. The carrying value of the replaced asset is expensed.




Significant Accounting Policies (cont.)

(f) Allocation between current and non-current

(g) Agreements equally proportionately unperformed

(h) Rounding

(i) Contingent assets and contingent liabilities

Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of a noteand, if quantifiable, are measured at nominal value.

The Council does not recognise assets and liabilities arising from agreements that are equally proportionatelyunperformed in the balance sheet. Such agreements are recognised on an 'as incurred' basis.

Unless otherwise stated, amounts in the financial report have been rounded to the nearest thousand dollars.

In the determination of whether an asset or liability is current or non-current, consideration is given to the time wheneach asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settledwithin the next twelve months, being the Council's operational cycle, or if the Council does not have an unconditionalright to defer settlement of a liability for at least 12 months after the reporting date.

Page 7


Note 1 Performance against budget

1.1 Income and expenditureBudget Actual Ref

2019 2019$'000 $'000 $'000 %

IncomeUser Fees and Charges 118 119 1 1%Operating Grants and Subsidies 172 179 7 4%Other Income - 2 2 100%Total Income 290 300 10

ExpensesEmployee Expenses 168 171 3 2%Contract Expenses 64 79 15 23% 1Material Expenses 37 38 1 3%Other Expenses 20 12 (8) -40% 2Total Expenses 289 300 11

Surplus/(deficit) for the year 1 - (1)

(i) Explanation of material variations

Variance Ref Item Explanation

1 Contract Expenses

2 Other Expenses This item is below budget due to expenditure on conferences, travel, accomodation, courier & postage being lower than anticipated.


In accordance with section 7.3.1 (Program Reporting), the Management Agreement requires details of operations, cash flow and Capitalworks in comparison to budgets. The following has been provided, except details of Capital works as this is not applicable to the LocalPort of Portland Bay.

Commentary in respect of any substantial variation regarding the preceding items is provided for variances greater than $10,000 and10%.

Variances

Higher Contract Labour for Maintenance Environmental Safety.



Note 1 Performance against budget

1.1 Income and expenditureBudget Actual Ref

2019 2019$'000 $'000 $'000 %

IncomeUser Fees and Charges 118 119 1 1%Operating Grants and Subsidies 172 179 7 4%Other Income - 2 2 100%Total Income 290 300 10

ExpensesEmployee Expenses 168 171 3 2%Contract Expenses 64 79 15 23% 1Material Expenses 37 38 1 3%Other Expenses 20 12 (8) -40% 2Total Expenses 289 300 11

Surplus/(deficit) for the year 1 - (1)



1 Contract Expenses

2 Other Expenses This item is below budget due to expenditure on conferences, travel, accomodation, courier & postage being lower than anticipated.


In accordance with section 7.3.1 (Program Reporting), the Management Agreement requires details of operations, cash flow and Capitalworks in comparison to budgets. The following has been provided, except details of Capital works as this is not applicable to the LocalPort of Portland Bay.

Commentary in respect of any substantial variation regarding the preceding items is provided for variances greater than $10,000 and10%.

Variances

Higher Contract Labour for Maintenance Environmental Safety.



Note 1 Performance against budget (cont'd)

1.2 Cash flows from Operating ActivitiesBudget ActualInflows/ Inflows/

(Outflows) (Outflows) Ref2019 2019$'000 $'000 $'000 %

Outflows (Expenses)Employee Costs (168) (171) (3) 2%Contract Costs (64) (79) (15) 23% 3Material Costs (37) (38) (1) 3%Other Expenses (20) (12) 8 -40% 4Total Payments (289) (300) (11)

Inflows (Income)User Fees and Charges 118 106 (12) -10% 5Government Grants - Operating 172 179 7 4%Other Receipts - 2 2 100%Total Receipts 290 287 (3) Net cash provided by operating activities 1 (13) (14)

Net increase (decrease) in cash and cash equivalents 1 (13) (14) -1404% 6Cash and cash equivalents at the beginning of the year 127 127 - 0%

Cash and cash equivalents at the end of the year 128 114 (14) -11%



3 Contract Expenses

4 Other Expenses

5 User Fees and Charges

6 Net increase (decrease) in cash and cash equivalents

Higher Trade & Other Receiveables at 30/06/2019 accountedfor the lower cash inflows

The net variance resulted maily from note 8 above.

Variances

Higher Contract Labour for Maintenance Environmental Safety

This item is below budget due to expenditure on conferences,travel and accomodation being lower than anticipated.



2019 2018$'000 $'000

Note 2 User Fees

Berth and Moorings 119 108 119 108

Note 3 Grants - Operating

Operating Grant - Department of Transport 179 179 179 179

Note 4 Other Income

Other Income - Interest earned 2 2 2 2

Note 5 Employee Costs

Wages and Salaries 141 126 Superannuation 11 11 Other Expenses - Workcover & Leave Provisions 16 27 Fringe Benefits Tax 3 -

171 164

Note 6 Contract Expenses

Consultant Expenses - 3Contract Expenses 64 56 Internal Plant Hire 15 6 Legal Fee Expenses - 3Audit Fees - 2

79 70



2019 2018$'000 $'000

Note 7 Material Expenses

Utility Expenses 37 31 Stationery Expenses 1 3

38 34

Note 8 Other Expenses

Other Expenses 12 6 12 6

Note 9 Cash and Cash Equivalents

Cash at Bank and On Hand 114 127 Balance per Statement of Cash Flows 114 127

Note 10 Trade and Other Receivables

CurrentReceivables - General 17 4

17 4



Note 11 Provisions and adjustments directly to Equity

Provisions for Employees

2019

There were no provisions for Employee costs

2018

There were no provisions for Employee costs

2019 2018

Total Actual Employees 4 3Total Equivalent Full Time Staff Numbers 1.7 2



Note 12 2019 2018$'000 $'000

Comprehensive Result - 15

Items not involving cash:Change in assets and liabilities:

(Increase)/decrease in current trade and other receivables (13) 13 Increase/(decrease) in provisions - -

(13) 13 Net cash provided by/(used in) operating activities (13) 28

Note 13 Contingent Liabilities and Contingent Assets

The Local Port of Portland Bay currently has no contingent assets.

Note 14 Superannuation

Accumulation

2019 2018$'000 $'000

10 7 1 4

11 11

Reconciliation of Cash Flows from Operating Activities to Surplus/(Deficit)

Employer contributions to other funds - Accumulation Funds

Employer contributions to Local Authorities Superannuation Fund (Vision My Super/Vision Super Saver) - Accumulation Funds

The Local Port of Portland Bay has provided no guarantees in respect of loans and overdrafts.

The Local Port makes the majority of its employer superannuation contributions in respect of its employees to the Local Authorities Superannuation Fund (the Fund). This Fund has two categories of membership, accumulation and defined benefit, each of which is funded differently. Obligations for contributions to the Fund are recognised as an expense in the Comprehensive Income Statement when they are made or due.

The Fund's accumulation categories, Vision MySuper/Vision Super Saver, receive both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (for the year ended 30 June 2019, this was 9.5% as required under Superannuation Guarantee legislation).

Details of contributions to superannuation funds during the year and amounts payable at 30 June 2019 are as follows:



Note 15

(b) Market risk

(c) Credit risk

- We have a policy for establishing credit limits for the entities we deal with.

There are no material financial assets which are individually determined to be impaired.

(d) Liquidity risk

(e) Fair value

(f) Sensitivity disclosure analysis

- A parallel shift of +.5% and -.5% in market interest rates (AUD) from year-end rates of 1.8%.

Fair value hierarchy

The Local Port's financial assets and liabilities are not valued in accordance with the fair value hierarchy , the financial assets and liabilities are measured at amortised cost.

Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, Council believes the following movements are 'reasonably possible' over the next 12 months:

Unless otherwise stated, the carrying amount of financial instruments reflect their fair value.

Liquidity risk includes the risk that, as a result of our operational liquidity requirements or we will not have sufficient funds to settle a transaction when required, we will be forced to sell a financial asset at below value or may be unable to settle or recover a financial asset.

Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause us to make a financial loss. We have exposure to credit risk on some financial assets included in our balance sheet. To help manage this risk:

Receivables for the Local Port consist only of customers related to the Trawler Wharf.

Financial Instruments

(a) Objectives and policies

The Local Port's principal financial instruments comprise cash assets and receivables. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in Note 1 of the financial statements. Risk management is carried out by senior management under policies approved by the Council. These policies include identification and analysis of the risk exposure to the Local Port and appropriate procedures, controls and risk minimisation.

Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of changes in market prices. The Local Port's exposures to market risk is primarily through interest rate risk to Council.

The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount as disclosed in the balance sheet and notes to the financial statements.



Note 16 People and relationships

16.1 Committee and key management personnel

(a) Related PartiesParent entityGlenelg Shire Council is the Committee of Management for the Local Port of Portland Bay.

(b) Key Management Personnel

Committee Members -

Councillor Geoff White appointed for Council Term 2016-2020Councillor Alistair McDonald appointed for Council Term 2016-2020John Sealey - Community RepresentativeLes Thomas - Community RepresentativeMichael Pickles - Community Representative Jason Sweetman - Port of Portland RepresentativeShannon Curran - Port of Portland Representative

2019 2018No. No.

Total Number of Key Management Personnel 7 9 Total Key Management Personnel 7 9

(c) Remuneration of Key Management Personnel

Total remuneration of key management personnel was as follows:Short-term benefits - - Long-term benefits - - Termination benefits - - Total - -

(d) Senior Officer Remuneration

a) has management responsibilities and reports directly to the Chief Executive; or

The number of Senior Officers are shown below in their relevant income bands:

2019 2018No. No.

$30,000 - $39,999 - 1 $50,000 - $59,999 1 - $100,000 - $109,999 - 1

1 2

Note - Greg Burgoyne, CEO of Glenelg Shire Council, has overall Management Responsibility of the Portland Local Bay Port and as such is listed as a Senior Officer. No CEO salary is costed to Portland Bay Local Port.

Details of persons holding a position on the Advisory Committee during the reporting year are:

b) whose total annual remuneration exceeds $148,000.

A Senior Officer is an officer of Council, other than Key ManagementPersonnel, who:

Income Range:


Note 16 People and relationships (cont.)

16.2 Related party disclosure

(a) Transactions with related parties

No transactions were entered into with related parties.

(b)

There are no outstanding balances at the end of the reporting period in relation to transactions with related parties.

(c)

No loans have been made, guaranteed or secured by the Local Port to a Senior Officer during the reporting period.

(d) Commitments to/from related parties

The aggregate amount of commitments in existence at balance date that have been made, guaranteed or securedby the council to a related party are as follows: Nil

Outstanding balances with related parties

Loans to/from related parties

Page 16



Note 16 People and relationships

16.1 Committee and key management personnel

(a) Related PartiesParent entityGlenelg Shire Council is the Committee of Management for the Local Port of Portland Bay.

(b) Key Management Personnel

Committee Members -

Councillor Geoff White appointed for Council Term 2016-2020Councillor Alistair McDonald appointed for Council Term 2016-2020John Sealey - Community RepresentativeLes Thomas - Community RepresentativeMichael Pickles - Community Representative Jason Sweetman - Port of Portland RepresentativeShannon Curran - Port of Portland Representative

2019 2018No. No.

Total Number of Key Management Personnel 7 9 Total Key Management Personnel 7 9

(c) Remuneration of Key Management Personnel

Total remuneration of key management personnel was as follows:Short-term benefits - - Long-term benefits - - Termination benefits - - Total - -

(d) Senior Officer Remuneration

a) has management responsibilities and reports directly to the Chief Executive; or

The number of Senior Officers are shown below in their relevant income bands:

2019 2018No. No.

$30,000 - $39,999 - 1 $50,000 - $59,999 1 - $100,000 - $109,999 - 1

1 2

Note - Greg Burgoyne, CEO of Glenelg Shire Council, has overall Management Responsibility of the Portland Local Bay Port and as such is listed as a Senior Officer. No CEO salary is costed to Portland Bay Local Port.

Details of persons holding a position on the Advisory Committee during the reporting year are:

b) whose total annual remuneration exceeds $148,000.

A Senior Officer is an officer of Council, other than Key ManagementPersonnel, who:

Income Range:

Page 15

Note 16 People and relationships (cont.)

16.2 Related party disclosure

(a) Transactions with related parties

No transactions were entered into with related parties.

(b)

There are no outstanding balances at the end of the reporting period in relation to transactions with related parties.

(c)

No loans have been made, guaranteed or secured by the Local Port to a Senior Officer during the reporting period.

(d) Commitments to/from related parties

The aggregate amount of commitments in existence at balance date that have been made, guaranteed or securedby the council to a related party are as follows: Nil

Outstanding balances with related parties

Loans to/from related parties

Page 16


Page 16Version: 6, Version Date: 17/10/2019Document Set ID: 2595931


Statement by the Chief Executive Officer of the Local Port of Portland Bay for the year ended 30 June 2019

In the opinion of the Port Manager, the accompanying Annual Financial Statements and associated Notes of the Local Port of Portland Bay;

a) Give a true and fair view of the Local Port's Comprehensive Income Statement as at 30 June 2019and of the Local Port's Balance Sheet, Statement of Changes in Equity, and Statement of Cash Flowsfor the year ended 30 June 2019; and

b) Complies with relevant Accounting Standards and the Crown Land (Reserves) Act 1978; and

c) At the date of the statement, there are reasonable grounds to believe that the Local Port will be ableto pay its debts as and when they become due and payable.

For the Year Ended 30 June 2019

Signed for, and on behalf of the Glenelg Shire Council:

Greg Burgoyne CHIEF EXECUTIVE OFFICER

Date: 24 September 2019

Page 17Page 17 Page 18


41A Breen Street Bendigo, Victoria

PO Box 448, Bendigo, VIC, 3552

Ph: (03) 4435 3550 [email protected]

www.rsdaudit.com.au

RSD Audit Pty Ltd ABN 85 619 186 908

Liability limited by a scheme approved under Professional Standards Legislation

INDEPENDENT AUDITOR’S REPORT

TO THE PORT MANAGER OF LOCAL PORT OF PORTLAND BAY

REPORT ON THE AUDIT OF THE FINANCIAL REPORT

Opinion

We have audited the accompanying financial report of Local Port of Portland Bay, which comprises the balance sheet as at 30 June 2019, the comprehensive income statement, statement of changes in equity, cash flow statement for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and statement by the Glenelg Shire Council Chief Executive Officer, on behalf of the Glenelg Shire Council.

In our opinion the financial report of Local Port of Portland Bay presents fairly, including giving a true and fair view of the financial position as at 30 June 2019 and of its performance for the year then ended in accordance with the accounting policies described in note 1 to the financial statements.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the entity in accordance with the auditor independence requirements and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. Those standards require that we comply with relevant ethical requirements related to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Council’s Responsibility for the Financial Report

The Council, as Port Manager of Local Port of Portland Bay are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards, and for such internal control as the members determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Council are responsible for assessing the ability of the Local Port of Portland Bay to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the Local Port of Portland Bay or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibility for the Audit of the Financial Report

Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.


As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report.

The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Port Manager, as well as evaluating the overall presentation of the financial report.

We conclude on the appropriateness of the Port Manager’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern.

We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We obtain sufficient appropriate audit evidence regarding the financial information of the entity to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with the members regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

RSD Audit

P.P Delahunty

Partner

Bendigo 30 September 2019


Local Port of Portland BayContact Details:Glenelg Shire CouncilPO Box 152 / 71 Cliff StreetPortland, Vic 3305Phone: (03) 5522 2200Email: [email protected]


local port of portland bay 2018-19 - glenelg.vic.gov.au€¦ · annual report 2018-2019 contents 1....

Documents