Melbourne & Olympic Parks Trust

Annual Report 2008

contents
the Purpose of the Trust 4

Governance and Executive Management 5

The Chairman’s Report 6

The CEO’s Report 7

Highlights 2007-08 8

Fast Facts 9

Our Partners 11

Financial Overview 14

Financial Statements 15–39

Administrative Reporting Requirements 40–41

Disclosure Index 42
The Purpose of the Trust
The Trust is the custodian of a significant Victorian asset.

Establishment • To provide for the planning, development, promotion,

The Melbourne and Olympic Parks Trust (MOPT) was
established on 5 October 1995 pursuant to the provisions of
The Melbourne and Olympic Parks Act 1985 (as amended). It
was created by the merger of the National Tennis Centre Trust
(established 13 Nov 1985) and the Olympic Park Committee
of Management (formed originally in 1909). Under the Act the
relevant Minister is the Honourable James Merlino, Minister for
Sport, Recreation and Youth Affairs.
The Melbourne and Olympic Parks
Act 1985
The Purpose of the Act:
The purposes of the Act as outlined in section 3 are:
management, operation and use of other sports, recreation
and entertainment facilities and services in Victoria
• To provide for the development, promotion, management,
operation and use of facilities and services for the parking
of vehicles and other necessary services to be used in
conjunction with any of the facilities operated or managed by
the Trust
• To accept appointment and act as a committee of
management of Crown lands.
The Trust’s Vision
To be recognised as being amongst the world’s best and most
successful sport and entertainment precincts.

• To create a Melbourne and Olympic Parks Trust to Our Mission

administer the National Tennis Centre, Olympic Park and
certain other land and facilities for the purposes of tennis,
other sports, recreation and entertainment
• To provide for the management and operation of the
National Tennis Centre and Olympic Park
• To provide for the use and promotion of the National Tennis
Centre and Olympic Park
• To provide for the development, promotion, management,
operation and use of sports, recreation and entertainment
facilities and services in Victoria in addition to those at the
National Tennis Centre and Olympic Park.
The Melbourne and Olympic Parks Trust is a Statutory Authority,
established to be the custodians and managers of the Melbourne
and Olympic Parks precinct. The Trust provides venues, services
and infrastructure of an international standard to:
• support the delivery of the Australian Open and provide a
home for Australian tennis;
• attract and support the delivery of large spectator based
indoor and outdoor sporting and entertainment events;
• enhance Melbourne’s public recreational amenities;
• support Victoria’s major events, tourism and sports
strategies.

Under the Act the Trust has the following primary

functions:

• To be responsible for the care, improvement, use and

promotion of the National Tennis Centre and Olympic
Park as facilities for tennis, other sports, recreation and
entertainment

• To operate the National Tennis Centre and Olympic

Park efficiently and effectively to obtain the best
possible use of the facilities

• To provide planning for the operation of the National

Tennis Centre and Olympic Park which is co-
coordinated between the two facilities

• To be responsible for proper financial management of

the National Tennis Centre and Olympic Park

4 Melbourne & Olympic Parks Trust

 Governance and Executive Management
trustees

Russell Caplan Joyce Brown OAM The Honourable John Howie Kate Joel John McInnes OAM Sue Nattrass AO
John Cain

Diana Nicholson Geoffrey Pollard AM Anthony Ryan Des Speakman David Stobart Deborah Beale

Executive

Brian Morris Dianne Micari Jason Todd Andrew Travis Meagan Walker Tatiana Bresolin Jo Juler
Chief Executive Chief Financial Officer General Manager General Manager Arena Contracting and Human Resources Marketing and
Operations Precinct Services Ticketing Manager Manager Communications Manager

Statement of Corporate Governance Finance Audit and Risk Committee

Procedures have been established at the Trust and executive The Trust has established a Finance Audit and Risk Committee
management level, which are designed to safeguard the to advise the Trust in relation to matters falling into the broad
assets and interests of the Trust and to ensure integrity of areas of:
reporting. The Trust acknowledges the need for and continued • Financial reporting, accounting policies and internal controls
• Risk management
maintenance of the highest standards of corporate governance
• Governance
practice and ethical conduct by all Trustees and employees of
• Funding
the Trust.
The Committee meets monthly or more often as required and
Remuneration Committee makes recommendations to the Trust on specific issues.
The Trust has established a Remuneration Committee The Members of the Committee during the year ended 30 June
to govern the Trust’s policy and practise for executive 2008 were:
remuneration and to determine the individual remuneration
Russell Caplan John Cain
packages for its executive staff. The Committee meets as
Sue Nattrass (Interim Chair 23 April 08) Geoff Pollard
required and makes recommendations to the Trust on specific John McInnes (Chair until 19 March 08)
issues. The members of the Committee during the year ended
30 June 2008 were: Strategic Planning Committee
The Trust’s Planning Committee is established to provide
Russell Caplan (Chair) independent and expert advice to assist the Trust to discharge
Sue Nattrass its strategic planning responsibilities.
John McInnes
The Members of the Committee during the year ended 30 June
Geoff Pollard
2008 were:
John Howie
Diana Nicholson Russell Caplan (Chair) Kate Joel
Sue Nattrass Geoff Pollard
John Howie

Annual Report 2007.08 5

The CHAIRMAN’S REPORT
Melbourne and Olympic Parks is a distinctive part of the fabric
of Melbourne and a great asset to the state of Victoria. I am
honoured to have the opportunity to play an active part in
guiding the future of this great precinct; I look forward to my
term as Chairman with great enthusiasm. I would like to thank
my fellow Trustees who have welcomed me and provided great
support in my first year.
The Trust, as the custodian of such a significant Victorian asset,
must continually adapt to the changing and growing needs of
our users, tenants, stakeholders and patrons. Last December
the Melbourne and Olympic Parks (Amendment) Act 2007 came
into operation, a significant step as it has consolidated all the
land in the precinct for the first time under one administrative
structure. The legislative change allows us to confidently plan
for the future development of the precinct and places us in a
position to fulfil the needs of our varied stakeholders.
During the Australian Open, the Premier took a significant
step towards ensuring Melbourne and Olympic Park’s long
term status as one of the world’s best sporting precincts. He
announced a grant of $1.5m for the preparation of a business
case for the future development of the precinct. The funding
will enable the Trust and key stakeholders, in particular Tennis
Australia, to develop a clear vision for the future. The Trust and
Tennis Australia each contributed a further $250,000 to the
business case.
It has been another strong year financially and once again the
diversity of the events coming to the precinct has been both
challenging and exciting. The Australian Open attracted a
record crowd of 605,735 compared with 554,858 in the previous
year. The Trust would like to congratulate Geoff Pollard, Steve
Wood and the team at Tennis Australia for their outstanding
achievements during another great Australian Open. The
new blue cushioned acrylic surface was a talking point of the
6 Melbourne & Olympic Parks Trust
tournament. This was a project funded by the Trust to ensure
the Australian Open maintains its high standard and retains its
overall distinctiveness from other Grand Slam tournaments.
The construction contract for the Rectangular Stadium Project
was awarded to Grocon Construction and the project is already
starting to make a mark on the landscape of our city. The
stadium is planning to open in 2010 and it will become a
spectacular addition to our suite of venues and an important
contributor to the development of the rectangular sporting
codes in Victoria. I would like to take this opportunity to express
my appreciation to Sue Nattrass, the Chair of the Stadium
Project Control Group and fellow trustee David Stobart, as well
as Major Projects Victoria and the Department of Planning and
Community Development for their support of this project.
Oh behalf of the Trustees, I would like to thank our two
retiring Trustees. John McInnes for his outstanding
contribution over the past 22 years and Joyce Brown for all of
her great input during 8 years with the Trust and formerly with
the Olympic Park Committee of Management. I would also like
to welcome Deborah Beale to the Trust and I look forward to
her contribution.
I am delighted to express my appreciation to Brian Morris
and his team for another successful year and would also like
to thank Minister Merlino and the Victorian Government for
their ongoing commitment and support to the precinct and the
Trust. It is an exciting and challenging time ahead and I look
forward to being a part of something special for the people of
Melbourne and Victoria.
Russell Caplan
 The CEO’s report
In total, our arenas and stadiums were contracted for 396 days congratulate the Melbourne Storm on their 2007 premiership
(including Australian Open) resulting in more than 1.76 million and look forward to them playing in the new stadium. Olympic
ticket sales and an operating profit in excess of $18 million Park held 101 events in total and once again played host to
(excluding interest revenue, grants, depreciation and borrowing many school athletic carnivals as well as the annual Telstra A
costs). This achievement is a credit to all staff that contribute Series athletics.
to the success of the events and a testament to the versatility of
Our most significant capital project, the Melbourne Rectangular
our venues.
Stadium, continues to evolve with the project on schedule for its
The Australian Open once again attracted record numbers, 2010 opening. Other significant capital projects completed in
demonstrating the ongoing growth of the event on the the year included the introduction of the new cushioned acrylic
international stage. This is a credit to the work of Tennis courts, the refurbishment of the Function Centre and other
Australia throughout the year. As part of our ongoing function spaces, expansion of the central security control room,
commitment to improve patron’s Open experience, we introduction of further water saving initiatives, upgrades to the
developed a new suite of food and beverage offerings including security systems and improvement to back of house areas. In
launching Matchpoint Marquee, a new food and beverage all, $10m was reinvested back into the precinct through these
concept as well as a Heart Foundation approved meal range. capital projects.
We are committed to improving and upgrading the patron
I would like to thank the Chairman, Russell Caplan, and
experience at all our events to ensure we maintain our place as
the Trustees for their ongoing support and all the staff at
one of the world’s best sports and entertainment precincts.
Melbourne Park who bring our venues to life. We thank our
An exciting array of artists came to our precinct during the suppliers, partners and stakeholders and look forward to
year, from legend Bob Dylan to local favourites Silverchair and another successful year together.
Powderfinger, Gwen Stefani, Celine Dion, Lionel Richie, The
Wiggles, Iron Maiden and Missy Higgins. Rod Laver Arena was
contracted for 153 days with Justin Timberlake’s fourth show
breaking the seventeen year old attendance record held by Neil Brian Morris
Diamond. The spectacular stage in the round was a hit with
16,183 patrons.
$’000
The new naming rights of the previously
Operating Profit*
25,000
named ‘Vodafone Arena’ were negotiated in
this financial year with a six year partnership
being signed with Hisense Australia. Hisense
20,000
Arena was contracted for 142 days during the
year including: High School Musical, Comedy
Festival, Rock Eisteddford, Australian
Dancesport Championships and Remos 15,000
and Rouvas. The South Dragons basketball
team used the Arena as their home venue
as did new ANZ Championship netball team 10,000
the Melbourne Vixens on three occasions.
Meanwhile, cycling launched a new brand
“Revolution” which contributed to substantial
5,000
attendance increases. The Arena continues
to grow in popularity as a major indoor
sporting venue with an eclectic range of
events appealing to all demographics. 0
2000 2001 2002 2003 2004 2005 2006 2007 2008

Olympic Park Stadium hosted 13 Melbourne Annual Operating Profit

Storm games including a final. We *Operating profit excludes interest revenue, grants, depreciation and borrowing costs

Annual Report 2007.08 7

Highlights 2007-08
Australian Open smashes records
Resplendent with blue Plexicushion surface, the new look Australian Open was a hit with fans. A Grand Slam record was broken
on day 4 with 62,885 lapping up the Melbourne Park tennis experience. The grand tally of 605,735 was also a record for the
Australian Open.

With the likes of charismatic Novak Djokovic and Ana Ivanovic emerging as stars, along with a brave showing by young Aussie
Casey Dellaqua, it was a tournament to savour. It was certainly one that staff will never forget, especially those on duty for the 4hr
46min Hewitt v Baghdatis epic that finished just before dawn.

The Australian Open has become an entertainment spectacular in the vein of the Spring
Racing Carnival and Australian Grand Prix and the superb efforts of MOPT and Tennis
Australia staff ensured many fond memories for the public and players alike.

Justin Timberlake brings crowds back

The worldwide superstardom afforded Justin Timberlake was evidenced by
his electrifying performances at Rod Laver Arena. A record attendance of
16,183 on 18 November made for one of the more memorable concerts
ever seen at the precinct. Hysterical fans were unable to get enough of the
consummate performer who ‘brought sexy back’.

Other headliners who confirmed Melbourne Park’s standing as one of

Australia’s premier entertainment venues included Bob Dylan, Michael Buble, Foo
Fighters, Matchbox Twenty, Lionel Ritchie, Powderfinger/silverchair, Gwen Stefani,
Rod Stewart and of course…The Wiggles!

Melbourne Rectangular Stadium emerges

The long awaited Melbourne Rectangular Stadium is on track to open in 2010. In June stakeholders were treated to a tour of
the construction site which is now serviced by four massive cranes. With the foundations laid, excitement is building with the
structure now emerging.

New Boundaries
For many years the Melbourne & Olympic Park precinct encompassed small
pockets of land technically under the jurisdiction of other public entities.
These anomalies have now been addressed; the Trust now claiming all
land within its logical borders, including the major addition of Gosch’s
Paddock. This area will remain public parkland outside of times
where the fields are booked for elite training.

Melbourne’s perfect Storm

Melbourne Storm thrilled the Olympic Park faithful on their
way to their second NRL title in 2007. In a dominant season,
the club won every one of its 13 home games. On course for
a repeat dose, the Storm will be hoping that the Rectangular
Stadium becomes a new ‘graveyard’ for opposing clubs in 2010.

8 Melbourne & Olympic Parks Trust

 Fast Facts

FAST FACTS
Number of contracted days – Arenas 295
Number of contracted days – Olympic Park/fields 101
Number of contracted events
– Melb Park Function Centre 109
Number of RLA Tour patrons 6556
Number of mopt.com website visitors 328,640
Land now under MOPT jurisdiction 40ha (approx)
Turf managed by horticulture 12ha (approx)
Gardens managed by horticulture 4ha (approx)
Storage capacity of two new water tanks 400,000 litres
Reduction in water consumption 2006>2007 13.25m litres or 10%
Waste recycled throughout site 70-75%
Waste recycled at the Australian Open 293 tonnes (73%)
Crowd at Justin Timberlake 18/11/07 (RLA record) 16,183
Attendance at 2008 Australian Open (record) 605,735
Crowd at AO, day 4 (1 day Grand Slam record) 62,885
Time the Hewitt v Baghdatis game concluded 4.33am
Melb. Storm’s 2007 strike rate at Olympic Park 100%

Major Capital
Expenditure Projects
• Install new tennis court surfaces $4.739m

• Two video boards at Hisense Arena $0.969m

• Catering point of sale $0.467m

• Player facilities upgrade (in progress) $0.430m Initiatives

• Blue Plexicushion courts
• Expand site control room $0.361m
• New Tournament Control room
• Function Centre refurbishment $0.324m
• Match Point Marquee
• Water saving initiatives $0.211m • The Food Store
• Upgrade to aisle lighting and safety (Heart Foundation approved)
at Hisense Arena $0.176m • Announcement during AO for a
$2m precinct business case
• Replace ballroom dance floor
($250k MOPT contribution)
at Hisense Arena $0.158m

• New spotlights at Rod

Laver Arena $0.150m

Annual Report 2007 9

Staff at work

10 Melbourne & Olympic Parks Trust

 our partners

Tenants
Athletics Victoria

Collingwood Football Club

Melbourne Victory

Olympic Park Sports Medicine Centre

Tennis Australia

Tennis Victoria

Victorian Institute of Sport

Suppliers
Cadbury Schweppes

Coca-Cola Amatil

Diageo Australia

Heineken Australia

National Foods Milk Ltd

Nestle Peters

Pernod Ricard Australia

Business Partners and Regular Hirers

Andrew McManus Presents

Australian Security Services

Capricorn Stages and Rigging

Chugg Entertainment

Cycling Victoria

Dainty Consolidated Entertainment

Delaware North Companies Australia

Feld Entertainment

Frontier Touring

Future Entertainment

Hisense Australia

Melbourne Storm

Michael Coppel Presents

South Dragons

Annual Report 2007.08 11

 FINANCIAL OVERVIEW

The financial statements in this report relate to the activities of Melbourne & Olympic Parks Trust for the year ended 30 June 2008.
The net result for 2008 was a profit of $104.258 million (2007: $15.802 million). This net profit included $97.955 million,
representing independently valued parcels of land within or adjacent to the Melbourne and Olympic Parks precinct granted to the
Trust from various public entities. These grants were treated as 3rd Party Contributions.
The Trust received grants from the Victorian Government totalling $79.294 million of which $78.579 million was treated as
contributed capital (2007: $1.746 million of which $1.146 million was treated as contributed capital), these grants were for
contributions towards the construction of the Rectangular Stadium, improvements to Goschs Paddock, the development of a
business case for the Melbourne and Olympic Parks precinct and replacement of cycling timing equipment at Hisense Arena.
Total revenues for 2008 were $70.342 million, (2007: $67.364 million). This year proved to be an exceptional year in the
number and quality of events held, translating into high yields in revenue streams such as venue hire, ticketing, catering and
merchandising.
The significant factors in reaching this revenue were:
• The successful delivery of an Australian Open with record attendances of 605,735;
• A buoyant Australian economy and a strong Australian dollar resulted in Rod Laver Arena staging many high quality
international events. The popularity of artists such as Justin Timberlake, Celine Dion, Matchbox 20, Rod Stewart, Bob Dylan
and Michael Buble resulted in high event yields;
• Hisense Arena’s utilisation continued to grow, hosting 15 basketball matches and an improved number of netball and cycling
events. The venue was also used for a number of community events, functions and concerts.

Total expenditure in 2008 was $64.040 million, (2007: $51.562 million). This increase in expenditure is due to;
• Increase in event related expenditure in line with the increase in event related revenue;
• Increase in depreciation costs due to an independent revaluation of Land & Buildings at 30 June 2007 which increased
Property, Plant & Equipment (less accumulated depreciation) by $101.510 million.

Property, Plant & Equipment (less accumulated depreciation) increased by $136.231 million compared to last year, primarily due
to an increase in land value (using Property Price Indices as required by the Financial Management Act 1994) and expenditure on
the new Melbourne Rectangular Stadium.

14 Melbourne & Olympic Parks Trust

 MELBOURNE & OLYMPIC PARKS TRUST

FINANCIAL STATEMENTS

Operating Statement

Balance Sheet

Cash Flow Statement

Statement of Changes in Equity

Year Ended 30 June 2008

Annual Report 2007.08 15

 MELBOURNE & OLYMPIC PARKS TRUST
OPERATING STATEMENT
FOR THE YEAR ENDED 30 JUNE 2008

Notes 2008 2007

$’000 $’000

Revenue from continuing activities
Revenue from continuing activities 3 70,342 67,364
Total revenue from continuing activities 70,342 67,364


Expenses from continuing activities
Arena Contracting & Ticketing 1,903 2,089
Finance & Administration 6,323 3,984
Marketing & Communications 10,213 12,551
Operations 25,465 19,641
Precinct Services 6,348 6,215
Depreciation 1(c), 6, 7 13,398 6,240
Finance Costs 4 391 844

Total expenses from continuing activities 64,040 51,562


Net result from continuing activities 2 6,303 15,802

Revenue on Aquisition of 3rd Party Land 3(d) 97,955 -

Net result for the reporting period 104,258 15,802

Total changes in equity other than those resulting
from transactions with Victorian State Government in
its capacity as owner 104,258 15,802

The above statement of financial performance should be read in conjunction with the accompanying notes.

16 Melbourne & Olympic Parks Trust

 MELBOURNE & OLYMPIC PARKS TRUST
BALANCE SHEET
as at 30 JUNE 2008

Notes 2008 2007

$’000 $’000

Current assets
Cash and Cash Equivalents 12(b) 32,688 34,252
Trade and Other Receivables 5 100,044 2,850
Inventory 7 13
Prepayments 77 97
Total Current Assets 132,816 37,212

Non-current assets
Property Plant & Equipment 6 697,774 561,543
Intangible Assets 1(i),7 124 183
Total Non Current Assets 697,897 561,726

Total assets 830,714 598,938

Current liabilities
Trade and Other Payables 8 14,431 21,592
Interest Bearing Liabilities 1(j),10(a),(b) 4,031 5,707
Employee Benefits 1(d), 9(a) 1,404 1,361
Total Current Liabilities 19,867 28,659

Non current liabilities
Interest Bearing Liabilities 1(j),10(a),(b) - 5,044
Employee Benefits 1(d), 9(b) 214 188
Total Non-Current Liabilities 214 5,232

Total Liabilities 20,080 33,891

Net Assets 810,633 565,047

Equity
Contributed Capital 11(a) 334,709 256,130
Accumulated Surplus 11(b) 161,503 57,246
Asset Revaluation Reserve 1(b), 11(c), 314,421 251,671

Total equity 11(d) 810,633 565,047

The above statement of financial position should be read in conjunction with the accompanying notes.

Annual Report 2007.08 17

 MELBOURNE & OLYMPIC PARKS TRUST
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2008

Notes 2008 2007

$’000 $’000

Cash flow from operating activities

Receipts from Customers and Venue Income from Ordinary Activities 76,168 71,558
GST Recovered/(Paid) from/to Australian Taxation Office (3,032) (2,840)
Interest Received 1,885 1,154
Payments to Suppliers & Employees (58,836) (56,995)
Borrowing Costs Paid 4 (391) (844)
Net cash provided by/(used in) operating activities 12(a) 15,794 12,033

Cash flows from investing activities
Payments for Fixed Assets (89,218) (6,465)
Net cash provided by/(used in) investing activities (89,218) (6,465)

Cash flows from financing activities
Proceeds from Capital Contributions by State Government 11(a) 78,579 1,146
Repayment of Borrowings (6,720) (5,802)
Net cash provided by/(used in) financing activities 71,859 (4,656)

Net increase/(decrease) in cash held (1,565) 912

Cash at the beginning of the financial year 34,252 33,340

Cash at end of the financial year 12(b) 32,688 34,252

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

18 Melbourne & Olympic Parks Trust

 MELBOURNE & OLYMPIC PARKS TRUST
STATEMENT OF CHANGES IN EQUITY
as at 30 JUNE 2008

Notes 2008 2007

$’000 $’000

Balance at beginning of financial year 565,047 446,588
Contributed capital 11(a) 78,579 1,146
Net asset revaluation increment(decrement) 1(b),11(c) 62,750 101,510
Net income recognised directly in equity 141,329 102,656
Net result for period 11(b) 104,258 15,802

Total recognised income and expense for the period 11(d) 245,585 118,459

Balance at end of the financial year 11(d) 810,633 565,047

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

Annual Report 2007.08 19

 NOTES TO FINANCIAL STATEMENTS
for the year ended 30 June 2008

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The following summary of significant accounting policies and practices is provided to assist in the understanding of the
Trust’s financial statements.

(a) Basis of Accounting

This general-purpose financial report has been prepared on an accrual basis in accordance with the Financial
Management Act 1994, Australian Accounting Standards and Urgent Issues Group Interpretations.

The financial report has been prepared on the basis of historical cost, except for the revaluation of certain assets and
liabilities, which, as noted, are at valuation.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June
2008 and the comparative information presented in these financial statements for the year ended 30 June 2007. Where
practicable, comparative amounts are presented and classified on a basis consistent with the current year.

(b) Revaluation of Non Current Assets

Subsequent to the initial recognition as assets, non-current physical assets, other than plant, equipment & vehicles,
are measured at fair value. Plant, equipment & vehicles are measured at cost. Revaluations are made with sufficient
regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at the reporting
date. Revaluations are assessed annually and supplemented by independent assessments, at least every five years.
Revaluations are conducted in accordance with the Victorian Government Policy Paper Valuation of Non-Current Physical
Assets and comply with Australian Accounting Standard AASB 116.

Revaluation increments are credited directly to the asset 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 asset revaluation
reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve. Revaluation
increments and decrements are offset against one another within a class of non-current assets.

(c) Depreciation

In compliance with Australian Accounting Standard AASB116, depreciation has been charged on all fixed assets and
capital works developments, with the exception of Land. The provisions for depreciation are made using the straight-line
method, at rates appropriate to the estimated useful life to the Trust of each individual asset. Estimates of the remaining
useful lives for all assets are reviewed annually and range from greater than zero up to seventy years. The trust’s policy
is to capitalise assets valued over $1,000, whilst assets of less than $1,000 in value are expensed immediately.

20 Melbourne & Olympic Parks Trust

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(d) Employee Benefits

(i) Wages, Salaries and Annual Leave

Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within
12 months of the reporting date are recognised in the provision for employee benefits in respect of employee
services up to the reporting date, classified as current liabilities and measured at their nominal values.

Those liabilities that are not expected to be settled within 12 months are recognised in the provision for employee
benefits as non-current liabilities, measured at present value of the amounts expected to be paid when the
liabilities are settled using the remuneration rate expected to apply at the time of settlement.

(ii) Long Service Leave

A liability for long service leave is recognised, and is measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date. Consideration is
given to expected future wage and salary levels, experience of employee departures and period of service. All
unconditional vested long service leave representing 7 years or greater of continuous service is disclosed in
accordance with AASB 101, as a current liability. Expected future payments are measured at nominal value
where a component of this current liability is expected to fall due within 12 months after the end of the period
and discounted where the Trust does not expect to settle a component of this liability within 12 months. Discount
rates are based on interest rates on national Government guaranteed securities with terms to maturity that
match, as closely as possible, the estimated future cash outflows.

(iii) Superannuation

The amount charged to the statement of financial performance in respect of superannuation represents the
contributions made by the Trust to superannuation funds (see note 10(b)).

(e) Revenue Recognition

Revenues are recognised when services are rendered and when the Trust gains control over the underlying assets.
Interests on investments are recognised when earned.

(f) Rounding of Amounts

Amounts in the financial report have been rounded to the nearest thousand dollars, or in other cases, to the nearest dollar.

(g) Contributed Capital

Transfers from the Department for Planning Community & Development (DPCD) that are in the nature of contributions or
distributions of capital have also been designated as contributed capital.

Annual Report 2007.08 21

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(h) Goods and Services Tax

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as
part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.

(i) Intangible Assets

Intangible assets represent identifiable non-monetary assets without physical substance. Intangible assets are
recognised at cost. Cost incurred subsequent to initial acquisition are capitalised when it is expected that additional
future economic benefits will flow to the Trust.

(j) Leased Assets

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards
to the lessee. All other leases are classified as operating leases. Assets held under finance leases are recognised as
assets of the Trust at their fair value or, if lower, at the present value of the minimum lease payments, each determined
at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease
obligation.

NOTE 2 RESULT FOR THE REPORTING PERIOD

Notes 2008 2007

$’000 $’000

The net result for the reporting period was arrived at after:
Charging as expenditure from ordinary activities

Auditor-General Fees 47 33
Disposal of superseded Tennis Courts 2,400 -

Amounts set aside for:

- Annual Leave Provision 428 495
- Long Service Leave Provision 1,190 1,054
- Bad & Doubtful Debts 24 -

22 Melbourne & Olympic Parks Trust

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

Notes 2008 2007

$’000 $’000

NOTE 3 REVENUE FROM ORDINARY ACTIVITIES
Revenue from ordinary activities comprises the following:
Operating:
Venue Income from Ordinary Activities (a) 66,622 64,620

Non-Operating:
M2006 Commonwealth Games (b) 0 150
Sinking Fund Income (c) 440 417
Contributions from Third Parties (d) 1,396 658
Interest Received 1,884 1,519
70,342 67,364
(a) Venue Income from Ordinary Activities

Venue Income from Ordinary Activities incorporates all the Trust’s recurring, venue generated revenue streams which is
primarily Event/Function related income. Revenue is recognised by the Trust after each event has occurred.

The Trust recoups catering and other direct costs that it incurs on behalf of venue hirers from ticket sale proceeds, before
remitting the net sales proceeds to the hirer. Such amounts, collected from and paid to third parties on behalf of venue
hirers, are included as revenues and expenditure of the Trust. The inclusion of these amounts has no impact on the
operating result of the Trust.

b) M2006 Commonwealth Games Revenue

In 2007-08, there was no revenue for M2006 Commonwealth Games. The Melbourne 2006 Commonwealth Games
Corporation provided $0.15m in funding during the 2006-07 reporting period as a contribution towards other indirect
costs incurred by the Trust in connection with the Melbourne 2006 Commonwealth Games.

(c) Sinking Fund Income

The Delaware North Sinking Fund is managed jointly by the Trust and Delaware North. Delaware North make a monthly
contribution to the Sinking Fund. The parties jointly determine the requirements for the replacement or improvement of
catering equipment to be purchased from the Sinking Fund.

The Tennis Australia Sinking Fund is managed jointly by the Trust and Tennis Australia. Tennis Australia contribute
to the Sinking Fund. The parties jointly determine the use of the Sinking Fund in the acquisition of assets or capital
improvements to the precinct.

Annual Report 2007.08 23

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 3 REVENUE FROM ORDINARY ACTIVITIES (continued)

(d) Contribution from Third Parties

MOPT has been granted various parcels of land to the value of $97.955m. The transfer of these parcels of land has been
passed through Parliament at balance date and as such MOPT have recognised the transfers as 3rd Party Contribution
revenue.

The DPCD contributed $0.45m towards improvements to Gosch’s Paddock.

The DPCD contributed $0.25m towards formation of a business case for the redevelopment of Melbourne and Olympic Parks.

The DPCD contributed $0.015m towards the replacement of cycling electronic timing equipment for use at Hisense Arena.

Tennis Australia contributed $0.681m towards the resurfacing of tennis courts.

NOTE 4 FINANCE COSTS

Finance costs recorded in 2007/2008 were $0.391m ($0.844m in 2006/2007) and relate to interest on short term and long
term borrowings. There were no finance costs capitalised during the reporting period as part of the carrying amount
of qualifying assets and there was no investment revenue earned on borrowed funds that has been deducted from the
finance costs incurred.

NOTE 5 TRADE AND OTHER RECEIVABLES

Notes 2008 2007

$’000 $’000

Current Debtors (a) 99,622 2,450

Provision for Doubtful Debts (b) (16) -
Accrued Revenue 438 400
100,044 2,850
(a) Current Debtors (30 June 2008)

Contained within the Debtors Balance at 30 June 2008 is a receivable for various parcels of land which have been
transferred to MOPT to the value of $97.955m. When confirmation is received that the land transfers have been
published in the Government Gazette, the receivable will be transferred to Land Fixed Assets.

(b) Provision for Doubtful Debts

Balance at the Beginning of the Year

- -

+ New provisions recognised during the year 16 -

Balance at End of Year 16 -

24 Melbourne & Olympic Parks Trust

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 6 PROPERTY, PLANT & EQUIPMENT

Notes 2008 2007

$’000 $’000

Land at fair value (30 June 2008) (a) 313,750 -

Land at Independent Valuation (30 June 2007) - 251,000
313,750 251,000

Buildings & Improvements at Independent Valuation (30/06/07) 529,827 533,408

Less Accumulated Depreciation (244,373) (233,313)
285,454 300,095

Buildings & Improvements at Cost 7,318 -

Less Accumulated Depreciation (247) -
7,071 -

Plant & Equipment (including Vehicles) at Cost 20,611 19,546

Less Accumulated Depreciation (17,931) (17,306)
2,680 2,240

Construction in Progress 88,818 8,208

Total Property, Plant & Equipment 960,324 812,162

Less Accumulated Depreciation (262,550) (250,619)
697,774 561,543

(a) Land at fair value (30 June 2008)

Land was last independently revalued at June 30 2007 and has been revalued at June 30 2008 using Property Price
Indices as required by the Financial Management Act 1994. The relevant index applied was for “Vacant Land Commercial
– Melbourne 3000” which was 1.25.

Annual Report 2007.08 25

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 6 PROPERTY, PLANT & EQUIPMENT (continued)

Reconciliation of Property, Plant & Equipment
Reconciliations of the carrying amounts of each class of property, plant & equipment at the beginning and end of the
current financial year are set out below.

Land Building & Plant & Construction

Improvements Equipment In Progress Total

2008
Carrying amount at start of year 251,000 300,095 2,240 8,208 561,543
Additions - - - 89,192 89,191
Disposals - (2,400) - - (2,400)
Transfer - 7,318 1,264 (8,582) -
Depreciation - (12,488) (824) - (13,312)
Revaluations 62,750 - - - 62,750
Carrying amount at end of year 313,750 292,525 2,680 88,818 697,774

2007

Carrying amount at start of year 247,615 202,204 2,968 6,938 459,725

Additions - - 6,594 6,594
Disposals - - (131) - (131)
Transfer - 5,167 157 (5,324) -
Depreciation - (5,401) (754) - (6,155)
Revaluations 3,385 98,125 - - 101,510
Carrying amount at end of year 251,000 300,095 2,240 8,208 561,543

NOTE 7 INTANGIBLE ASSETS

Notes 2008 2007

$’000 $’000

Intangible Assets 448 420

Less Accumulated Depreciation (324) (237)
124 183

NOTE 8 TRADE AND OTHER PAYABLES

Creditors - General 824 2,372
- Event Funds Held in Trust 8,351 15,350
Accrued Expenses 3,785 1,776
Prepaid Revenue 1,471 2,094
14,431 21,592

26 Melbourne & Olympic Parks Trust

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

Notes 2008 2007

$’000 $’000

NOTE 9 EMPLOYEE BENEFITS

(a) Annual Leave and Long Service Leave
Provisions are in accordance with the accounting policies outlined in Note 1(d).

The Employee Benefits as at 30 June 2008 are represented by:

Current
All annual leave and LSL entitlements representing
7 years or greater of continuous service

- Short-term employee benefits, that fall due within

12 months after the end of the period measured at
nominal value 428 496
- Other long-term employee benefits that do not fall due
within 12 months after the end of the period measured
at present value. 976 865
1,404 1,361
Non-current
LSL representing less than 7 years of continuous service
measured at present value 214 188
1,618 1,549
(b) Superannuation

The Trust currently contributes to the superannuation schemes identified below for those employees who elect to
become members. Employees contracted prior to June 2000 could elect to contribute a minimum of 3% of salary to
their nominated superannuation scheme, to which the Trust adds an employer contribution of 3% in addition to the
Superannuation Guarantee Levy of 9% (ie. total employer contribution equals maximum of 12%). For all other employees
the maximum employer contribution is set at the Superannuation Guarantee Levy of 9%. The names of the employee
superannuation funds with contributions greater than $10,000 include:

(i) AMP Flexible Superannuation $11,349

(ii) Colonial First State Personal $27,850
(iii) Hostplus $53,747
(iv) Navigator Super Solutions $208,107
(v) Australian Super-STA Superannuation Fund $842,934
(vi) Skandia Global Retirement Solutions $11,844

Total Contributions for 2007/2008 was $1,281,332

The Trust is not exposed to any liability beyond the contributions paid and a combination of contributions to the various
funds satisfies the Trust’s obligations under the Superannuation Guarantee Act. As at 30 June 2008, the amount of
contributions outstanding is $57,077. There are no loans to or from any of the superannuation funds.

Annual Report 2007.08 27

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

Notes 2008 2007

$’000 $’000

NOTE 10 INTEREST BEARING LIABILITIES

(a) Loans

All interest rates shown below shown include the Department of Treasury & Finance’s Financial Accommodation Levy,
implemented 1 July 2004.

The following lines of credit were available at the reporting date:

Variable Loans at 11am rate for fixed short term periods 22,000 22,000
Fixed Loan at 5.6969% rate repayable quarterly, within 12 months 391 360
Fixed Loan at 5.6969% rate repayable quarterly, beyond 12 months - 489
Fixed Loan at 5.9422% rate repayable quarterly, within 12 months 897 824
Fixed Loan at 5.9422% rate repayable quarterly, beyond 12 months - 1,122
Fixed Loan at 5.8686% rate repayable quarterly, within 12 months 2,743 2,523
Fixed Loan at 5.8686% rate repayable quarterly, beyond 12 months - 3,433
Fixed Loan at 7.17% rate repayable quarterly, within 12 months - 2,000
Total available 26,031 32,751

Used at the reporting date:

Current
Fixed Loan at 5.6969% rate repayable quarterly, within 12 months 391 360
Fixed Loan at 5.9422% rate repayable quarterly, within 12 months 897 824
Fixed Loan at 5.8686% rate repayable quarterly, within 12 months 2,743 2,523
Fixed Loan at 7.17% rate repayable quarterly, within 12 months - 2,000
4,031 5,707
Non-Current
Fixed Loan at 5.6969% rate repayable quarterly, beyond 12 months - 489
Fixed Loan at 5.9422% rate repayable quarterly, beyond 12 months - 1,122
Fixed Loan at 5.8686% rate repayable quarterly, beyond 12 months - 3,433
- 5,044
Total used 4,031 10,751
Unused at the reporting date:

Variable Loans at 11am rate for fixed short term periods 22,000 22,000
Total unused 22,000 22,000

(b) Finance Lease Commitments

As at reporting date, the Trust did not have any Finance lease commitments.

28 Melbourne & Olympic Parks Trust

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

Notes 2008 2007

$’000 $’000

NOTE 11 EQUITY AND MOVEMENTS IN EQUITY

(a) Contributed Capital

During the reporting period, The DPCD contributed $78.579m to the Trust ($6.0m in 2005/06 and $1.146m in 2006/07)
towards the construction of the new rectangular stadium. Movements in Contributed Capital for the reporting period are
disclosed as follows:

Opening contributed capital 256,130 254,984

Capital contributed during the year by the Victorian State Government 78,579 1,146
Closing contributed capital 334,709 256,130

(b) Accumulated Surplus

Opening accumulated surplus 57,246 41,444

Net result for the reporting period 104,257 15,802
Closing accumulated surplus 161,503 57,246

(c) Asset Revaluation Reserve

The Asset Revaluation Reserve is used to record increments and decrements on the revaluation of non-current assets, as
described in accounting policy Note 1(b). The Asset Revaluation Reserve can be reconciled as follows:

Opening reserves 251,671 150,161

Net increase/(decrease) in asset revaluation reserve 62,750 101,510
Closing reserves 314,421 251,671

(d) Changes in Equity

Total equity at the beginning of the reporting period 565,047 446,589

Increment to Contributed Capital 78,579 1,146
Total changes in equity recognised in the statement of Financial performance 104,258 15,802
Increment to Asset Revaluation Reserve 62,750 101,510
Total equity at the end of the reporting period 810,633 565,047

Annual Report 2007.08 29

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

Notes 2008 2007

$’000 $’000

NOTE 12 CASH AND CASH EQUIVALENTS

(a) Reconciliation of Cash Flows provided from Operating Activities to Net Result for the Reporting Period

Net Result for the Reporting Period 104,258 15,802

Non Cash flows in Operating Result

-Depreciation 13,398 6,240
-Gain/Loss on Sale of Fixed Assets 2,400 0
-Land Grant Receivable (97,955) 0

Changes in Assets & Liabilities

-(Increase)/Decrease in Receivables and Prepayments 786 (759)
-Increase/(Decrease) in Payables (6,538) (8,841)
-Increase/(Decrease) in Prepaid Revenue (623) (652)
-Increase/(Decrease) in Employee Benefits 69 243

Net Cash provided from Operating Activities 15,794 12,033

(b) Cash Assets

For the purpose of the statement of Cash Flows, cash includes:

(i) Cash on hand and deposited available ‘at call’ with banks and financial institutions.
(ii) Investments in money markets available ‘at call’ with banks and financial institutions.
(iii) Investments in money markets instruments with less than twelve months to maturity with banks and financial
institutions.
- Cash floats held 33 53
- Cash held in Trading Bank Accounts at call 2,014 3,931
- Investment in Bank Deposits at call 10,441 8,367
- Investment in Bank Money Markets available within 12 months 20,200 21,901
32,688 34,252

At 30 June 2008, the Trust held $8.351m on trust and the use of $0.621m held in Trading Bank Accounts had been restricted.

30 Melbourne & Olympic Parks Trust

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 13 CONTINGENT LIABILITIES

The Trust had no contingent liabilities as at 30 June 2008.

NOTE 14 CONTINGENT ASSETS

The new $267.5m Melbourne Rectangular Stadium (MRS) will have a capacity of 31,001 and will feature a cutting edge
Bioframe design. Currently under construction on Edwin Flack Field in the Olympic Park Precinct, the MRS will provide
Melbourne with a purpose-built, medium-sized rectangular pitch stadium with a world-class playing surface. The
construction of the MRS is currently being managed by Major Projects Victoria, with construction work beginning in late
2007 and completion expected by early 2010. The level of financial contribution required by the Trust will be determined
once agreements with hirers and tenants are finalised. As at 30 June 2008 the Trust has received $79.7m in contributions
from DPCD and an asset is recorded in Work in Progress.

Notes 2008 2007

$’000 $’000

NOTE 15 COMMITMENTS

(a) Capital

At financial year end, the Trust had made the following commitments to Capital Expenditure:

Projects committed and already commenced:

No of Projects 5 6
Amount Committed 2,527 5,373
Projects committed but not yet commenced:
No of Projects 2 4
Amount Committed 500 1,289

All committed capital expenditure is expected to be incurred in the 2007/2008 financial year.

(b) Operating Leases

Commitment within 1 Year: 94 49

Later than one year and not later than 5 years: 99 -
Total Operating Lease Commitments: 193 49

Annual Report 2007.08 31

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 16 FINANCIAL INSTRUMENTS

Terms, conditions and accounting policies

The Trust’s terms, conditions and accounting policies in respect of financial instruments, both recognised and
unrecognised, in compliance with Australian Accounting Standard AASB 7, are as follows:

Financial Instrument Accounting Policy Terms and Conditions

Financial Assets

Cash at bank & invested Cash deposits are recognised at Cash is either held at deposit at call earning
reporting date, including accrued interest at a variable rate, or invested for
interest as at balance date. Interest short fixed term periods in a money market
is recorded as revenue as it accrues. account at a fixed rate.

Trade debtors Trade debtors are carried at amounts
due. The collectability of debts is
assessed at balance date and specific
provision is made for any impaired
accounts.
Trade debtors are usually on 30-day terms
from the end of month in which the invoice
was raised. Non-current debtors are at a
variable rate based on the current TCV 11am
rate, charged quarterly.

Financial Liabilities

Trade creditors and accruals
Trade creditors and accruals are
recognised for amounts to be paid
in the future for goods or services
received, whether or not billed to the
Trust.
Trade creditors are normally settled within
30 days from the end of the month in which
the invoice was raised.

Loans Payable Loans payable to the Treasury Variable loans with TCV are at fixed rates
Corporation of Victoria are recognised determined at 11am rate for fixed short
at the Trust’s liability as at balance term periods. The Trust’s fixed loans with
date. TCV are fixed in amount, rate and term,
repayable quarterly.

32 Melbourne & Olympic Parks Trust

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 16 FINANCIAL INSTRUMENTS (continued)

Interest Rate Risk

Exposure to interest rate risk is insignificant. Minimisation of risk is achieved by mainly undertaking short term fixed
rate or non-interest bearing financial instruments. MOPT’s interest bearing liabilities are fixed loans provided by Treasury
Corporation of Victoria. MOPT’s exposure to interest rate risk is set out below:

Fixed interest Maturing in:

Floating 1 year Over 1 to More than Non Interest Total
Interest Rate or less 5 years 5 years Bearing
$’000 $’000 $’000 $’000 $’000 $’000

2007/2008
Financial Assets
Cash at Bank & On Hand 12,455 20,200 - - 33 32,688
Sundry Debtors - - - - 2,089 2,089
12,455 20,200 - - 2,122 34,777
Weighted Average Rate 7.20% 7.70%

Financial Liabilities
Sundry Creditors, Accruals
& Prepaid Revenue - - - - 17,471 17,471
Loans Payable - 4,031 - - - 4,031
- 4,031 - - 17,471 21,502
Weighted Average Rate 5.86%

2006/2007
Financial Assets
Cash at Bank & On Hand 12,298 21,900 - - 54 34,252
Sundry Debtors - - - - 2,850 2,850
12,298 21,900 - - 2,904 37,102
Weighted Average Rate 5.66% 6.31%

Financial Liabilities
Sundry Creditors, Accruals
& Prepaid Revenue - - - - 21,592 21,592
Loans Payable - 5,707 5,044 - - 10,751
- 5,707 5,044 - 21,592 32,343
Weighted Average Rate 6.89% 6.61%

Foreign Currency Risk

MOPT is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and
consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and
a short timeframe between commitment and settlement. At June 30 2008, MOPT did not have any unpaid purchases
outstanding which require settlement in a foreign currency.

Annual Report 2007.08 33

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 16 FINANCIAL INSTRUMENTS (continued)

Credit Risk Exposure
Credit risk arises from the financial assets of MOPT, which comprise cash and cash equivalents and trade and other
receivables. MOPT’s exposure to credit risk arises from the potential default of counter party on their contractual
obligations resulting in financial loss to MOPT. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with MOPT’s financial assets is minimal because it is MOPT’s policy to only deal with entities with
high credit ratings and to obtain sufficient collateral or credit enhancements where appropriate.

In addition, the MOPT does not engage in hedging for its financial assets.

Provision of impairment for financial assets is calculated based on past experience, and current and expected changes
in client credit ratings. At balance date MOPT’s financial assets which have been identified as impaired are indicated
below:

Notes 2008 2007

$’000 $’000

Impaired Receivables Aging

Current - -
1-30 Days - -
31-60 Days - -
61-90 Days - -
91-120 Days - -
+120 Days 16 -
Total Impaired Receivables at end of year 16 -

MOPT’s maximum exposure to credit risk at balance date is the carrying amount of debtors as indicated below:

Notes 2008 2007

$’000 $’000

Receivables Aging

Current 1,709 2,251

1-30 Days 292 374
31-60 Days 51 209
61-90 Days 12 7
91-120 Days 3 (2)
+120 Days 22 11
Total Receivables at end of year 2,089 2,850

34 Melbourne & Olympic Parks Trust

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 16 FINANCIAL INSTRUMENTS (continued)

Liquidity Risk
Liquidity risk arises when MOPT is unable to meet its financial obligations as they fall due. Trade creditors are normally
settled within 30 days from the end of the month in which the invoice was raised. It also continuously manages risk
through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets
and dealing in highly liquid markets.

MOPT’s exposure to liquidity risk is deemed insignificant based on prior periods’ data (ie: MOPT’s history of settling debt)
and current assessment of risk. Cash for unexpected events is generally sourced from liquidation of available-for-sale
financial investments.

MOPT’s Maximum exposure to liquidity risk is the carrying amounts of financial liabilities as detailed in the following table:

Financial Liabilities Aging*

Notes 2008 2007

$’000 $’000

6 months or less 11,251 20,830

6-12 Months 2,101 2,090
1-2 Years - 4,180
Total Payables at end of year 13,352 27,100

* These amounts represent undiscounted gross payments including both principal and interest amounts

Net Fair Values

Net fair values of financial assets and liabilities are determined by the Trust in the following manner:

Cash at Bank The carrying amount represents fair value as it represents a combination
of account balances withdrawable by the Trust at any time without notice
and account balances withdrawable after fixed short terms at fixed rates.

Trade Debtors The carrying amount represents fair value as it represents a contractual
obligation on the debtor.

Trade Creditors & Accruals The carrying amount represents fair value as it represents a contractual
obligation on the Trust.

Loans The carrying amount represents fair value as it represents a contractual

obligation on the Trust

Annual Report 2007.08 35

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 17 RESPONSIBLE PERSONS DISCLOSURES

(a) Responsible Persons

The responsible Minister for the Trust is the Honourable James Merlino. During 2007/2008, the following people held
positions as responsible persons with the Trust:

Mr Russell Caplan – (Chairman from 21/08/07)

Ms Deborah Beale (from 27/05/08)
Ms Joyce Brown, OAM
Mr John Howie
Ms Kate Joel
Mr John McInnes, OAM (to 30/09/07)
Ms Elizabeth (Sue) Nattrass, AO
Ms Diana Nicholson
Mr Geoffrey Pollard, AM
Mr Anthony Ryan
Mr Des Speakman
Mr David Stobart
The Honourable John Cain

Mr Brian Morris – Trust Secretary & Chief Executive Officer

(b) Remuneration of Accountable Officers & Executive Officers

Remuneration received or receivable by the Accountable Officer in connection with the management of MOPT during the
reporting period was in the range:

$370,000 - $379,000 ($270,000 - $279,000 in 2006-07)

Remuneration consisted of 2 years incentive payments.

The number of Executive Officers (excluding Accountable Officers above) and their total remuneration during the
reporting period are shown in the first two columns in the table below in their relevant income bands. The base
remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus
payments, long service leave payments, redundancy payments and retirement benefits.

Total Remuneration Base Remuneration

Remuneration Range 2008 2007 2008 2007

$100,000 - $109,999 1 2 0 2
$110,000 - $119,999 1 0 1 0
$130,000 - $139,999 1 0 2 0
$140,000 - $149,999 1 1 0 1
$160,000 - $169,999 1 0 1 0
$180,000 - $189,999 0 0 1 0
$190,000 - $199,999 1 0 0 0
Total Numbers 6 3 5 3
Total Remuneration 855,983 351,147 728,767 351,147

36 Melbourne & Olympic Parks Trust

 Notes to Financial Statements (Continued)
for the year ended 30 June 2008

NOTE 17 RESPONSIBLE PERSONS DISCLOSURES (continued)

(c) Other Transactions

Commercial dealings were undertaken in 2007/2008 with Tennis Australia and Tennis Victoria, both of which have
representatives holding positions as Trustees on the Melbourne & Olympic Parks Trust.

During 2007/2008, the Trust invoiced Tennis Australia $20,309,093 ($16,987,488 in 2006/2007) and as at 30 June 2008,
Tennis Australia owed the Trust $144,692 ($61,769 at 30 June 2007). Mr Geoffrey Pollard holds a position on the Melbourne
& Olympic Parks Trust and also holds the position of Chairman of Tennis Australia. Tennis Australia is the promoter of the
Australian Open event, runs a court hire business on the Trust’s premises and rents office space from the Trust.

During 2007/2008, the Trust invoiced Tennis Victoria $117,572 ($144,744 in 2006/2007) and at 30 June 2008, Tennis
Victoria owed the Trust $26,705 ($540 at 30 June 2007). Mr David Stobart holds a position on the Melbourne & Olympic
Parks Trust and also holds the position of President of Tennis Victoria and is a board member of Tennis Australia. Tennis
Victoria rents office space on the Trust’s premises and purchase related services from the Trust.

There are no other receivable amounts or loans outstanding in relation to related parties, as at 30 June 2008.

NOTE 18 OPERATING LEASE RECEIVABLES

As at reporting date, operating lease receivables related to 5 tenancy agreements. Operating lease receivables as at 30
June 2008 (GST inclusive) are:
Notes 2008 2007
$’000 $’000

Not later than one year 1,348 1,506
Later than one year and not later than five years 5,569 5,272
Later than five years 16,702 18,311
Total Operating Lease Receivables 23,619 25,089

Annual Report 2007.08 37

 certification

In accordance with a resolution of the members of the Melbourne and Olympic Parks Trust and in our opinion:

(a) the accompanying financial report of the Trust, comprising operating statement, balance sheet, cash flow statement
and statement of changes in equity read in conjunction with the notes thereto present fairly the financial operations of
the Trust for the year ended 30 June 2008 and the State of Affairs of the Trust on that date;

(b) these accounts have been prepared in accordance with the Financial Management Act 1994, Australian Accounting
Standards and other mandatory professional reporting requirements; and

(c) at the date of this statement we are not aware of any circumstances which would render any particulars included in
the statement to be misleading or inaccurate.

Russell Caplan
Member of Responsible Body
Chairman
Melbourne and Olympic Parks Trust

Brian Morris
Accountable Officer
Trust Secretary & Chief Executive Officer
Melbourne and Olympic Parks Trust

Dianne Micari
Chief Finance Officer
Melbourne and Olympic Parks Trust

Melbourne 27 August 2008

38 Melbourne & Olympic Parks Trust

 independent AuditOR’S Report

Melbourne and Olympic Parks Trust

To the Members of the Parliament of Victoria
and Trustees of the Trust

The Financial Report

The accompanying financial report for the year ended 30 June 2008 of the Melbourne and Olympic Parks Trust which comprises income
statement, balance sheet, cash flow statement, statement of changes in equity, a summary of significant accounting policies and other
explanatory notes to and forming part of the financial report, and the certification has been audited.

The Responsibility of the Trustees for the Financial Report

The Trustees of the Melbourne and Olympic Parks Trust are responsible for the preparation and the fair presentation of the financial
report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the financial
reporting requirements of the Financial Management Act 1994. This responsibility includes:
• establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free
from material misstatement, whether due to fraud or error
• selecting and applying appropriate accounting policies
• making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility
As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report based on the audit, which has been
conducted in accordance with Australian Auditing Standards. These Standards require compliance with relevant ethical requirements
relating to audit engagements and that the audit be planned and performed to obtain reasonable assurance whether the financial
report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The audit
procedures selected depend on 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, consideration is given to internal control relevant to the Trustees
preparation and fair presentation of the financial report 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 Trust’s internal control. An audit also includes evaluating
the appropriateness of the accounting policies used, and the reasonableness of accounting estimates made by the Trustees, as well as
evaluating the overall presentation of the financial report.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

Matters relating to the Electronic Presentation of the Audited Financial Report

This Auditor’s report relates to the financial statements published in both the annual report and on the web site of Melbourne and Olympic
Parks Trust for the year ended 30 June 2008. The Trustees of Melbourne and Olympic Parks Trust are responsible for the integrity of the web
site. I have not been engaged to report on the integrity of the web site. The auditor’s report refers only to statements named above. An opinion
is not provided on any other information which may have been hyperlinked to or from these statements. If users of this report are concerned
with the inherent risks arising from electronic data communications, they are advised to refer to the hard copy of the audited financial report
to confirm the information included in the audited financial report presented on the Melbourne and Olympic Park Trust web site.

Independence
The Auditor-General’s independence is established by the Constitution Act 1975. The Auditor-General is not subject to direction by any
person about the way in which his powers and responsibilities are to be exercised. The Auditor-General, his staff and delegates comply
with all applicable independence requirements of the Australian accounting profession.

Auditor’s Opinion
In my opinion, the financial report presents fairly, in all material respects, the financial position of the Melbourne and Olympic Parks
Trust as at 30 June 2008 and its financial performance and cash flows for the year then ended in accordance with applicable Australian
Accounting Standards (including the Australian Accounting Interpretations), and the financial reporting requirements of the Financial
Management Act 1994.

Level 24, 35 Collins Street, Melbourne Vic. 3000

MELBOURNE D.D.R. Pearson Telephone: 61 3 8601 7000 Facsimile: 61 3 8601 7010
29 August 2008 Auditor-General Email: comments@audit.vic.gov.au Website: www.audit.vic.gov.au

Annual Report 2007.08 39

 ADMINISTRATIVE REPORTING REQUIREMENTS

Freedom of Information
Freedom of Information (FOI) arrangements followed by the Trust are in accordance with procedures established under the
Freedom of Information Act 1982.

The Trust received no Freedom of Information request during 2007/08.

Competitive Neutrality Policy compliance

The Trust is committed to the implementation of requirements of the competitive neutrality principles and is satisfied that its
activities comply with the Victorian Government’s Competitive Neutrality Policy.

Statement of compliance with the Building Act 1993.

The Trust complies with the relevant guidelines, pursuant to Section 220 of the Building Act 1993.

Implementation of the Victorian Industry Participation Policy

In October 2003, the Victorian Parliament passed the Victorian Industry Participation Policy Act 2003 which required public
bodies and departments to report on the implementation of the Victorian Industry Participation Policy (VIPP). The Trust is
required to apply the VIPP in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria. The
Trust did not commence or complete any contracts during 2007/08 to which the VIPP applies.

Financial and other information retained by the accountable officer

Relevant information detailed in Financial Reporting Direction (FRD) 22B ‘Standard Disclosures in the Report of Operations’
under the Financial Management Act 1994 Section 3 is retained by the Trust’s Accountable Officer and is available on request.

Whistleblowers Protection Act 2001

This section of the report contains information that is required to be published annually under the Whistleblowers Protection
Act 2001 Section 104.

The Trust has established written procedures for handling disclosures made under the Whistleblowers Protection Act 2001 in
accordance with the guidelines issued by the Ombudsman Victoria. A full copy of the procedure is available in Melbourne &
Olympic Parks web site http://www.mopt.com.au.

The procedures include detailed information about;

• roles and responsibilities of the Disclosure Officer and the Disclosure Coordinator;
• confidentiality provisions;
• procedures for the conduct of investigations;
• action to be taken after an investigation;
• managing the welfare of the whistleblower;
• management of the person against whom a disclosure has been made.
a) The current procedures established by Melbourne and Olympic Parks Trust under Part 6 of the Act can be found on www.mopt.com.au;
b) The Trust has received no disclosures during the year.
c) The Trust has not referred any disclosures to the Ombudsman for determination as to whether they are public interest
disclosures during the year;
d) The Ombudsman has not referred any disclosed matters to the Trust during the year;
e) The Trust has not referred any disclosed matters to the Ombudsman to investigate during the year;
f) The Ombudsman has not taken over any investigation of disclosed matters form the Trust during the year;
g) The Trust has made no request under section 74 of the Act to the Ombudsman to investigate disclosed matters during the year;
h) The Trust has not declined to investigate a disclosed matter during the year;
i) There have been no disclosed matters that were substantiated on investigation. There has been no action required to be
undertaken arising from an investigation, since there have been no investigations; and
j) The Ombudsman has not made any recommendations under the Act that relates to the Trust.

40 Melbourne & Olympic Parks Trust

 ADMINISTRATIVE REPORTING REQUIREMENTS (continued)

Occupational Health and Safety (OH&S)

Over the past twelve months there has been good progress made in increasing the Trust’s performance on the area of
Occupational Health and Safety. This is consistent with the OH&S policy’s objectives and reflects management’s and staff’s
effort to provide a safe work environment. A full copy of the Trust’s OH&S policy is available on Melbourne & Olympic Parks
web site http://www.mopt.com.au.

Consultants
Expenditure totalling $100,000 or more
There were no projects which resulted in expenditure of greater than $100,000 for 2007-2008

Expenditure totalling less than $100,000

Number: 14
(75 in 2006/07)
Total Amount: $250,791
($613,710 in 2006/07)

Risk Attestation Statement

I, Chair of the Trust, certify that Melbourne & Olympic Parks Trust has designed a risk management framework that is
consistent with the Australian/New Zealand Risk Management Standard.

The Trust is able to verify at this time that we have a risk profile that has been critically reviewed within the last 12 months.
We have developed categorised lists of risks: a list of operational risks and a list of strategic risks. These risks will be
evaluated and prioritised using the process described in our risk management framework to obtain our strategic and
operational risk profiles in the next quarter.

We have obtained an independent assessment of our risk framework’s design and our 2009 implementation plan for risk management.
The following activities will be performed during 2009 to further embed the risk management framework and an internal control
system that will enable the Executives and Business Unit Managers to understand, manage and satisfactorily control risk exposures:
1. Educate Executives, Risk Owners, Business Unit Managers, and any other employees who have specific responsibilities for
managing risk exposure.
2. Finalise operational risk profiles through a structured risk assessment process and implement treatment actions including
policy/procedure updates.
3. Link our existing internal audit programs to outcomes from the risk assessments.
4. Develop a management control self assessment program to enable accountability at the business unit level for assessing and
managing the control environment.
5. Develop and finalise a process for our 2009 risk attestation.

Russell Caplan
Chairman

Annual Report 2007.08 41

 Disclosure Index

The Annual Report of Melbourne & Olympic Parks Trust is prepared in accordance with all Victorian Legislation. This index has
been prepared to facilitate identification of compliance with statutory disclosure requirements.

Ministerial Directions
Charter and Purpose
FRD 22B Manner of establishment and the relevant Minister 4
FRD 22B Objectives, functions, powers and duties 4
FRD 22B Nature and range of services provided 4

Management and structure

FRD 22B Organisational Structure 5

Financial and other information

FRD 10 Disclosure index 42
FRD 15B Executive officer disclosures 36
FRD 22B Application and operation of Freedom of Information Act 1982 40
FRD 22B Application and operation of the Whistleblowers Protection Act 2001 40
FRD 22B Compliance with building and maintenance provision of Building Act 1993 40
FRD 22B Details of consultancies over $100,000 41
FRD 22B Details of consultancies under $100,000 41
FRD 22B Major changes or factors affecting performance 14
FRD 22B Occupational Health and Safety 41
SD 4.5.5 Risk Attestation Statement 41
FRD 22B Statement of availability of other information 40
FRD 22B Statement on Competitive Neutrality Policy 40
FRD 22B Summary of financial results for the year 14
FRD 22B Summary of major activities 9
FRD 22B Subsequent events N/A
FRD 25 Victorian Industry Participation Policy disclosures 40

Financial Statements required under Part 7 of the FMA

SD 4.2 (b) Balance Sheet 17
SD 4.2 (b) Cash flow Statement 18
SD 4.2 (b) Operating Statement 16
SD 4.2 (b) Statement of Changes in Equity 19
SD 4.2 (c) Accountable officer’s declaration 38
SD 4.2 (c) Compliance with Australian accounting standards and other
authoritative pronouncements 20
SD 4.2 (c) Compliance with Ministerial Directions 38
SD 4.2 (d) Rounding of amounts 21
SD 4.2 (f) Model Financial Report 20

Other disclosures in notes to the financial statements

FRD 9A Departmental disclosure of administered assets and liabilities N/A
FRD 11 Disclosure of ex-gratia payments N/A
FRD 13 Disclosure of parliamentary appropriations N/A
FRD 21A Responsible person and executive officer disclosures 36,37

Legislation
Freedom of Information Act 1982
Building Act 1983
Financial Management Act 1994
Audit Act 1994
Whistleblowers Protection Act 2001
Victorian Industry Participation Policy Act 2003

42 Melbourne & Olympic Parks Trust

Melbourne & Olympic Parks Trust
Batman Ave, Melbourne, Australia
GPO Box 4611, Melbourne Victoria, 3001
t | + 61 3 9286 1600 f | + 61 3 9650 3256
www.mopt.com.au