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2010 2011 ANNUAL REPORT

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2010 2011 ANNUAL REPORT Powered By Docstoc
					2010 2011   A NNU A L   R E PO RT
                                            Yarroweyah
                                  Strathmerton
                                                      Cobram
                              Picola                Katunga
                    Barmah                                                         Yarrawonga
                                                                  Katamatite
                       Nathalia                    Numurkah

Echuca                                             Wunghnu
                                                                                                   Treated Supply
                   Tongala                               Katandra West
                                                                                                      Rivers / Streams
                                                   Tallygaroopna
                       Kyabram                                                                        Channels
                            Mooroopna               Congupna
                                                                  Dookie
                 Merrigum                                                                             Corporation Storages
                                                Shepparton
          Girgarre                                                                                    Groundwater Supply (Bore)
          Stanhope       Tatura
         Corop               Toolamba                                                              Non Drinking Supply
                                                                                                      Rivers / Streams
           Rushworth                                                                Benalla
                                                                                                      Channels
         Colbinabbin                   Murchison
                                                                   Violet Town
                                                                                                                 Supply Line
                 Baxters Road
                                Kirwans Bridge       Euroa
                                 Nagambie                            Strathbogie
                                             Longwood


                                       Avenel

                                Seymour                                     Bonnie Doon
                                                                                       Mansfield

                             Tallarook                                                  Merrijig
             Pyalong                        Molesworth                                                Sawmill
                                                               Alexandra                              Settlement
                          Broadford                Yea
                                                                               Eildon
            Kilmore                                            Thornton
                             Waterford Park
                         Wandong
                         Heathcote Junction                        Buxton

                                                                    Marysville          Woods Point




                    Melbourne
contents

1: overview                                       7: customers and community
About us                                      2   Customer Reference / Advisory Committees     41
Chairman | MD Report                          3   Customer Service                             41
Snapshot of Performance                       5   Management of Social and Economic Impacts    43
Profile                                       5   Community Service Obligations                43
Corporate Goals                               6   Energy and Water Ombudsman (Victoria)        44
                                                  National Water Week                          44
2: environmental sustainability
Statement of Obligations                     11   8: Business Performance and compliance
Water Quality                                11
                                                  Statement of Performance                     46
Community Awareness                          13
                                                  Significant Changes                          47
Regional Catchment Strategy                  14
                                                  Capital Works                                47
Victorian Biodiversity Strategy              15
                                                  Consultancies                                47
Victorian River Health Strategy              16
                                                  Disclosure of Major Contracts                47
Greenhouse and Energy Reporting              16
                                                  Freedom of Information Act 1982              47
Bulk Water Entitlement                       18
                                                  Government Contributions                     47
Water Restrictions                           21
                                                  Building Act 1993                            47
Wastewater Management                        21
                                                  Information Prepared and Available           48
3: Water consumption                              National Competition Policy                  48
Water Consumption                            24   Risk and Emergency Management                48
Corporate Water Consumption                  26   Risk Management Compliance Attestation       49
Major Water Customers                        26   Victorian Industry Participation Policy      49
                                                  Whistleblowers Protection Act 2001           49
4: Assets and Infrastructure
Assets                                       28   9: Performance
Water Main Replacements                      28   Financial Performance Indicators             50
Sewer Main Inspection and Rehabilitation     28
                                                  Service Performance Indicators               51
Asset Protection                             29
                                                  Environmental Performance Indicators         53
Development                                  29
                                                  Statement of Performance                     56
5: corporate Governance                           Independent Auditor’s Report                 57
Directors of the Board                       30
                                                  10: Financial statements
Executive Management Team                    32
                                                  Operating Statement                          60
Organisational Structure                     33
                                                  Statement of Comprehensive Income            60
Role of the Board                            34
                                                  Balance Sheet                                61
Board Composition                            34
Board Meetings and Committees                34   Statement of Changes in Equity               62
                                                  Cash Flow Statement                          63
6: organisational capability                      Notes to the Financial Statements            64
Employee Statistics                          36   Certification of Financial Statements        97
Equal Employment Opportunity and Diversity   36   Independent Audit Report                     98
Learning and Development                     37
Safety, Health and Well-Being                37   11: notes & Appendices
Health and Safety Training                   38   Disclosure Index                            100
Occupational Health and Safety Statistics    39   Appendix 1: Whistleblowers Protection       102
 2   Goulburn valley water 2010| 2011 annual report




1 overview

      ABoUt Us

      Vision
      To be a leader in sustainable water management, delivering quality water services and integrated benefits to
      our regional communities.


      core purpose
      To provide quality water services to our residential, commercial and industrial customers.


      Key themes
      Customer Service: We will strive for excellence in the delivery of water services and our interactions with
      customers.

      Corporate Performance: We will responsibly manage our assets, risks and financial performance.

      Capability: We will enhance our strategic, operational and business capability through innovation and
      continuous improvement.

      Communities: We will be a responsible steward of resources to enhance environmental, social and economic
      outcomes for our communities.


      Values
      Service Excellence: Delivering quality service to our internal and external customers within a culture of
      excellence.

      Our people: Developing our people’s capacity, resourcefulness and creativity, and encouraging life-balance.

      Safety: A total commitment to health and safety.

      Teamwork: Working together positively, respecting individual contributions and having some fun along the
      way.

      Open Communication: Sharing information and knowledge while fostering trusting relationships that
      encourage honest conversations.
                                                        Goulburn valley water 2010| 2011 annual report            3




chAIrmAn | mD rePort
We are pleased to present the Report of                    themes becoming second nature for many, and
Operations for Goulburn Valley Water for the               a greatly reduced need to water gardens over
year ending 30 June 2011. The key challenge for            summer, consumption has dropped from 24,339
water businesses in Victoria in the first decade           megalitres in 2009/10 to 20,096 megalitres this
of the new millennium has been to ensure water             year. This is a reduction of 4,243 megalitres or
supply security for communities across the                 17.4% from last year and is 9% below the previous
state. Goulburn Valley Water has addressed this            lowest water use in recent history.
challenge by undertaking extensive community
education about water conservation, working with           This reduction in water use has been reflected in a
our major industries to conserve water, increasing         corresponding reduction in water use revenue for
raw water storage capacity for some towns and              our business. Revenue from water use tariffs for
interconnecting water systems via pipelines. This          the year was $5 million below budget which has
work has been undertaken during many years of              directly impacted on our bottom line. Despite this
drought and has built great resilience into our water      reduction, Goulburn Valley Water was still able to
systems to deal with extended dry periods in the           achieve a small operating profit of $270,000 for the
future.                                                    2010/11 financial year. At the same time we have
                                                           invested over $20 million in new or upgraded water
However, during 2010/11 we moved from water-               and wastewater infrastructure across the region.
wise to water-logged, with record rainfall and
significant flooding events within our region, across      One of the key themes developed during our
Victoria and in many parts of the Murray Darling           Board’s strategic planning process late in 2010
Basin. At times during the year our employees were         was the concept of our customers’ perception of
kept busy around the clock to prevent any drinking         Goulburn Valley Water’s service in the context of
water or sewer issues in our communities, making           rising water prices. One of the issues identified
preparations in advance of floods arriving in the          was that collectively customers were not well
region, working in teams to sandbag, plug sewers           informed about what is involved in managing urban
and run pump station checks to ensure the health           water and wastewater, which was perceived to
and safety of customers. We were also pleased and          impact on the level of customer satisfaction with
proud to have some of our employees travel to              Goulburn Valley Water’s services. An educational
other water corporations where the flood damage            campaign with a ‘what’s behind the tap’ theme was
was more severe to help out with their emergency           developed with objectives around informing our
response and recovery.                                     customers of the processes that are undertaken
                                                           to provide high quality water delivery and safe
The record rainfall and streamflows will result in         wastewater removal, and to emphasise the
Goulburn Valley Water’s storages and the major             urban ‘taps and toilets’ aspect of our role in the
dams on the regulated systems being at or near             community.
full during the winter and spring of 2011. From
a regional perspective this recovery of the water          As part of our ongoing learning and development
resource across northern Victoria has been the silver      strategy, four employees were able to undertake
lining amid much damage and loss as a result of            professional development overseas during the year:
flooding.
                                                           •	 Neville Whittaker and Peter Moore travelled to
During 2010/11 the consistent rainfall, particularly          New Zealand to undertake a study tour of water
during the warmer months, has meant that water                and wastewater operations. This trip was part
use by our customers this year is at a record low,            of an annual collaboration between the Water
with less water than ever before being used in                Industry Operators Association of Australia and
towns across the region. With water conservation              its allied body in New Zealand.
 4   Goulburn valley water 2010| 2011 annual report




1 overview

      chAIrmAn | mD rePort Cont.
      •	 Greg Comer travelled to Idaho in the US to          Authority, Northern Victorian Irrigation Renewal
         attend a cyber security course.                     Project, municipal councils and other stakeholders
                                                             to provide input to significant water resource
      •	 The Managing Director Peter Quinn travelled
                                                             planning and environmental management issues
         to Montreal to attend the International Water
                                                             across the region.
         Association (IWA) World Water Congress
         in September 2010. The highlight of the             The good planning and effective execution from
         conference was a two day “Cities of the             our dedicated team has ensured that the business
         Future” workshop where representatives from         successfully delivered against our key business
         Australia presented a set of principles to the      objectives. The Board has again provided excellent
         forum which had been developed during 2010.         leadership, governance and strategic direction
         These principles formed the basis of the IWA’s      which is acknowledged and appreciated. Together
         “Montreal Declaration on Cities of the Future”      we will continue to strive to deliver excellent water
         which demonstrates the continuing leadership        and wastewater services; responsibly manage our
         being shown by the Australian water sector in       assets, risks and financial performance; enhance
         the field of integrated water management.           our capability through innovation and continuous
                                                             improvement; and be a responsible steward of
      While on the subject of leadership, our Chairman,
                                                             land, water and corporate resources to enhance
      Mark Lawlor took on the role as Chair of VicWater’s
                                                             environmental, social and economic outcomes for
      Sustainability Task Group in August 2010. Mark
                                                             our communities.
      has generated renewed vigour for the group and
      presided over his first VicWater Sustainability        In accordance with the Financial Management Act
      Seminar in May 2011. In addition, in May 2011, one     1994, we are pleased to attest that the Goulburn
      of our Directors Denis Flett was appointed to the      Valley Water Annual Report is compliant with all
      role as Chairperson of the Victorian Environmental     statutory reporting requirements.
      Water Holder, a great reflection of his standing in
      the industry. These are both excellent examples at
      Board level that demonstrate our vision ‘to be a
      leader in sustainable water management’.

      In November 2010 we saw a change of Government
      in Victoria, and with it, a new Minister for Water,
      The Hon Peter Walsh, Member for Swan Hill. In
                                                             Mark Lawlor                      Peter Quinn
      March 2011 the new Government released its Living
                                                             Chairman                         Managing Director
      Melbourne, Living Victoria Roadmap, which deals
      with the contribution of water to urban liveability.
      The Roadmap articulates a number of reform
      priorities and while the initial document deals
      specifically with Melbourne, it is intended that its
      recommendations will guide reform across Victoria’s
      cities and towns. Goulburn Valley Water is mindful
      that its future strategies and actions are aligned
      with the concepts set out in the Roadmap.

      Throughout the year we worked closely with our
      catchment partners Goulburn-Murray Water,
      Goulburn Broken Catchment Management
                                                       Goulburn valley water 2010| 2011 annual report                                                                 5




snAPshot oF PerFormAnce

Asset base                                                                                                                    $811 million

Number of employees (FTE) at 30 June 2011                                                                                                     189.2

Residential properties                                                                                                                     50,892

Non-residential properties                                                                                                                    6,704

Water consumption                                                                                                                 20,074 ML

Wastewater received                                                                                                               14,562 ML

Recycled water produced                                                                                                            10,151 ML

Recycled water reused                                                                                                               4,021 ML

Water treatment plants                                                                                                                                 39

Wastewater management facilities                                                                                                                       26

Water mains                                                                                                                         1,750 km

Pressure and gravity sewers                                                                                                         1,207 km

Pumping stations                                                                                                                                  317

Tanks and reservoirs                                                                                                                              117




ProFIle

our profile                                                                        our region
Goulburn Valley Water is a state-owned Government Business
Enterprise (GBE). The Corporation operates under the Water Act                                          COBRAM
1989 and the Water Industry Act 1994. Goulburn Valley Water is                            Picola
                                                                                                                 Katunga

                                                                              Barmah                           Numurkah          Katamatite
governed by a Board of Directors appointed by the Minister for                     Nathalia
                                                                                                                Wunghnu
Water; The Hon Tim Holding MP, Minister for Water (1 July 2010                                                        Katandra
                                                                               Tongala
                                                                                                                Tallygaroopna
to 1 December 2010), and The Hon Peter Walsh MP, Minister for                         Kyabram
                                                                                                                Congupna         Dookie
                                                                                         Mooroopna
Water (2 December 2010 to 30 June 2011).                                                                        SHEPPARTON
                                                                      C
                                                                      Corop              Tatura
                                                                         Stanhope         Toolamba

                                                                                   Rus
                                                                                   Rushworth
our services                                                          Colbinabbin
                                                                        lb                         Murchison                      Violet Town


Goulburn Valley Water provides urban water and wastewater                                                               Euroa
                                                                                               Nagambie                             Strathbogie
services in accordance with the powers, functions and duties under                                             Longwood

                                                                                                   Avenel
the provisions of Part 8 – Water Supply, and Part 9 – Sewerage,                                 Mangalore
                                                                                              SEYMOUR
of the Water Act 1989. The Corporation services a population                                                               Bonnie Doon                    Mansfield
                                                                        Pyalong
of nearly 129,000 in 54 towns and cities from the outskirts of                        Tallarook                                                           Merrijig    Sawmill
                                                                                                                                                                      Settlement
                                                                                       Broadford                Yea
Melbourne in the south to the Murray River in the north. Bulk                                                       A
                                                                                                            ALEXANDRA
                                                                         Kilmore                                                              Eildon
                                                                                                                              Thornton
water supply is sourced principally from the Goulburn/Broken,                            Clonbinane

                                                                                      Wandong
Murray, Steavenson, Rubicon and Delatite River systems and a number                                                               Buxton

of smaller local streams such as Sunday Creek and Seven Creeks.                                                                       ysvil
                                                                                                                                   Marysville          Woods Point
 6   Goulburn valley water 2010| 2011 annual report




1 overview

      corPorAte GoAls
      Goulburn Valley Water’s business objectives for 2010/11 were categorised into four areas:

      •	 customer service

      •	 corporate performance

      •	 capability

      •	 communities




      customer service
      We will strive for excellence in the delivery of water and wastewater services, and in our business and
      operational interactions with customers

      BuSinESS OBjECTiVE     MEaSurE/TarGET                        STaTuS      COMMEnT

      Water and Wastewater Services
                                                                               Over 98% samples complied, with only
                             98% compliance with E.coli standard              4 individual failures for 2010/11
                             Compliance with 95th percentile
      Achieve compliance
      with Safe Drinking
                             upper confidence limit of the mean
                             for turbidity
                                                                              All samples complied for turbidity

      Water Act and
      regulations            100% compliance with THM, chloro-
                                                                               Majority of samples complied, but 11
                             acetic acid, dichloro-acetic acid,    partially
                                                                               failures recorded overall, at Barmah,
                             tricloro-acetic acid and aluminium      met
                                                                               Nagambie, Pyalong and Thornton
                             standards
      Meet the                                                                 Requirements of license met as per
      requirements of
                             100% compliance commitments                      target
      the Environment
      Protection Authority                                                     EPA has deferred negotiations. No
                             Negotiate with EPA to update the
      (EPA) Corporate        Corporate EPA Licence by June 2011               serious implications for GVW as current
                                                                               licence remains valid until update
      Licence
      Comply with relevant
                                                                               Majority of targets met, with some
      Essential Services   100% compliance water and
                                                                   partially   parameters outside the targets by a
      Commission (ESC)     wastewater reliability and complaints
                                                                     met       small margin
      water and wastewater targets
      targets
                                                            Goulburn valley water 2010| 2011 annual report                7




corPorAte GoAls Cont.

BuSinESS OBjECTiVE     MEaSurE/TarGET                              STaTuS     COMMEnT

Customer interactions
                                                                              A new process implemented in
                       Increase number of instalment plans                    November 2010 lead to increased
                       by 15% for the year                                   instalment plans from 1,280 in 2009/10
                                                                              to 3,098 in 2010/11

Produce accurate                                                              New concession confirmation process
                       Improve Centrelink concession
and clear bills, and
provide responsive
                       confirmation process                                  approved by Department of Human
                                                                              Services implemented in August 2010
advice and guidance                                                           Uptake increased from 99 (2009/10) to
to help customers      Increase number of customers taking                    140 (2010/11) due to staff training in
manage their water     up Government assistance programs                     dealing with hardship customers and
accounts                                                                      targeted mail outs
                                                                              Estimated reads increased from 4,773
                       Reduce number of estimated reads                       (2009/10) to 6,167 (2010/11) due to
                       for the year                                          inability to access meters (locked gates,
                                                                              overgrown gardens etc)
                       100% compliance with the ESC
                                                                              All responses were made within the 45
Provide responsive
                       measure for response to planning
                       feasibility reports within 45 days
                                                                             working day target
advice and guidance
                       100% compliance with responses
to customers in                                                               All responses were made within the 14
regard to property,
                       to Planning and Environment Act
                       applications within 14 days
                                                                             calendar day target
connection and land
development issues     Establish processes to monitor error
                                                                              Process established in March 2011 as
                       rates associated with new customer
                       connections
                                                                             per target

                       Respond to all written complaints and                  All responses were made within the 10
                       enquiries within 10 working days                      working day target
Provide professional   Respond to all water quality
                                                                              Average response time was 3.9 hours,
service to customers
on operational
                       complaints within 4 hours of
                       notification
                                                                             meeting the target set

matters                Implement improved customer
                                                                              Trial of customer feedback forms
                       feedback process to evaluate
                       response to service reports
                                                                             undertaken in 2010/11

                                                                              Four meetings held, covering
Maintain two-way       Regular meetings held with Corporate                   advertising campaign, community
communication
with customers to
                       Community Reference Committee
                       (CCRC)
                                                                             engagement customer feedback and
                                                                              water conservation strategy discussion
understand what they                                                          topics among others
value and identify
opportunities for      Undertake customer satisfaction
                                                                               Progress ties in with Customer Service
improvement to         survey to identify current performance
                                                                 partially met Action Plan which is at draft stage,
services               levels and opportunities for
                                                                               2011 survey deferred until later in 2011
                       improvement
                       Compliance with ESC customer
                       service performance targets for                        0.6 complaints per 1,000 customers
Comply with relevant   Energy and Water Ombudsman                            (above Water Plan target of 0.4)
ESC performance        (EWOV) complaints
targets
                                                                              98% calls answered within 30 seconds
                       Time to answer telephone calls                        (above Water Plan target of 97%)
 8   Goulburn valley water 2010| 2011 annual report




1 overview

      corPorAte GoAls Cont.

      corporate Performance
      We will responsibly manage our assets, risks and financial performance in line with government and
      regulator expectations

      BuSinESS OBjECTiVE       MEaSurE/TarGET                           STaTuS      COMMEnT

      Ensure the health,       Meet the targets and objectives
                               established in the 2010/11
      safety and welfare
      of employees and         Occupational Health and Safety                      Majority of targets met

      the community in         (OH&S) Action Plan
      Goulburn Valley          Corporation target of zero Lost Time
      Water activities         Incidents (LTIs)                                    Five LTIs to 30 June 2011

                                                                                    Most improvements listed in risk
                                                                                    register completed and reported
                               Implementation performance of the
      Effectively manage       Water Quality Risk Management Plan                  bi-annually to the Board. Risk
                                                                                    Management Plans to be reviewed
      the risks associated                                                          2011/12
      with our operations
                                                                                    Plan updated including title (now
                               Implementation of the Corporate/
                               Strategic Risk Action Plan                          Corporate Risk Treatment Plan) and
                                                                                    implemented as per target
      Manage our assets
      to deliver high
      quality water and                                                             Key initiatives continue to be
      wastewater services   Implement relevant actions in the           partially   satisfactorily progressed and document
      to our customers, and Asset Management Improvement Plan             met       to be updated for 2013-2018 Water
      minimise risk to the                                                          Plan
      community and the
      environment
      Deliver the 2010/11
      infrastructure
                               Capital Expenditure (Capex) program
      investment program                                                            Of 37 projects to be completed in
                               delivered in accordance with             partially
      to achieve the overall                                                        2010/11, 28 were on target and 9 had
                               timeframes and budgets set out in the      met
      program set out in                                                            been delayed as of 30 June 2011
                               Corporate Plan and Water Plan
      the 2008-2013 Water
      Plan
      Manage the financial     Report actual operating results versus
      performance of the       budget to the Board                                 Reporting complete for the year

      business consistent
                               Financial performance indicators                     Indicators below target due to rainfall
      with the Water Plan
      and Corporate Plan       consistent with targets                             and flooding impacts on profit

                                                                                    2009/10 accounts were complete and
                            Ensure timely preparation and audit
                                                                                    audited (unqualified report) ahead
      Maintain performance (unqualified audit opinion) of annual
      management and        financial statements
                                                                                   of target dates. On track to achieve
      reporting procedures                                                          timelines for 2010/11
      that ensure           Ensure Treasury Management policies                     Policies and procedures complied with
      accountability to the and procedures are complied with                       to 30 June 2011
      Board and external    Ensure compliance with taxation
                                                                                    Compliance and lodgements were in
      stakeholders          legislation and the timely lodgement
                               of returns (income tax, GST and FBT)
                                                                                   order at 30 June 2011
                                                           Goulburn valley water 2010| 2011 annual report              9




corPorAte GoAls Cont.

capability
We will enhance our strategic, operational and business capability through innovation and continuous
improvement

BuSinESS OBjECTiVE      MEaSurE/TarGET                            STaTuS     COMMEnT

Utilise Goulburn        Self-assessment undertaken and
                                                                             Organisational self assessment process
Valley Water’s
Sustainable
                        integrated with business and
                        corporate planning process
                                                                            completed by October 2010

Excellence
Framework to
facilitate continuous   Plan Do Study Act (PDSA) projects
                                                                             16 improvement projects completed as
improvement and         undertaken and improvements
                        implemented
                                                                            at 30 June 2011
innovation across the
business
Establish and
                        Action Plan developed to identify                    Draft action plan scheduled to be
implement a                                                      partially
                        future customer service initiatives by               completed for review at August 2011
customer service                                                   met
                        30 June 2011                                         Board meeting
action plan
Establish and
implement a Learning
and Development
action plan to       Action Plan developed by 31 March           partially
                                                                             Draft is completed for follow up review
enhance capability,  2011                                          met
and develop and
retain high quality
staff
                                                                             Project completed at 2010 Board
Establish and
                       Board strategic discussion                           Strategic Workshop
implement a strategic                                                        Concepts developed and incorporated
capability action plan Concepts further developed
                                                                            into the Board’s 2011 Governance
                                                                             Improvement Plan
Review and update
the Corporation’s
                                                                             Policy, Framework and Action Plan
Risk Management
Policy, Framework
                        Review and update is completed                      reviewed and updated as per target

and Action Plan
Review and update                                                            Department of Health audit date
                                                                 partially
the Water Quality       Review and update is completed                       deferred. Key initiatives progressing
                                                                   met
Management System                                                            well
Review and
                                                                             Completion date deferred to December
update the Asset                                                 partially
                        Review and update is completed                       2011, with some implementation
Management                                                         met
                                                                             activities to continue beyond this time
software platform
10   Goulburn valley water 2010| 2011 annual report




1 overview

      corPorAte GoAls Cont.

      communities
      We will be a responsible steward of land, water and corporate resources to enhance environmental,
      social and economic outcomes for our communities

      BuSinESS OBjECTiVE       MEaSurE/TarGET                          STaTuS      COMMEnT

      To operate within a
      community context
                                                                                   Draft Environmental Stewardship
      to shape and foster
                               Produce an Environmental Strategy       partially   Framework complete and will be
      sustainable regional
                               Framework                                 met       finalised in time for 2013-2018 Water
      development
                                                                                   Plan formulation
      and resource
      management
                                                                                   Completion date deferred to coincide
                                                                                   with Water Supply Demand Strategy
      To effectively           Review and update the Water             partially
                                                                                   modelling component and will be
      manage, conserve         Conservation Action Plan                  met
                                                                                   completed in time for 2013-2018 Water
      and reuse water                                                              Plan formulation
      resources within a
      regional integrated      Commence the review and update
                                                                                   Scheduled for completion later in
                               of the 50 year Water Supply Demand
      water cycle context
                               Strategy with a view to complete by                2011/12 in readiness for 2013-2018
                                                                                   Water Plan formulation
                               November 2011
      Manage Goulburn                                                              Completion date deferred to October
                               Review and update the Greenhouse        partially
      Valley Water’s                                                               2011 and will be completed in time for
                               Action Plan                               met
      greenhouse                                                                   2013-2018 Water Plan formulation
      emissions having
      regard to the EPA        Implement engagement program to                     Topic explored in detail with Corporate
      carbon management        evaluate customer views on offsetting               Community Reference Committee and
      principles and work      greenhouse emissions and willingness               incorporated into Greenhouse Action
      towards offsetting       to pay                                              Plan review
      residual emissions
      To effectively
      engage with local        Community engagement plans                          Engagement plans were developed and
      communities about
      specific projects and/
                               developed and implemented for all
                               relevant projects
                                                                                  implemented for all key projects that
                                                                                   were commenced in 2010/11
      or operational issues
      Develop a set
      of sustainability
                                                                                   Consultation undertaken with internal
      principles to
                               Develop a Sustainability Management     partially   work groups to increase sustainability
      guide actions and
                               Framework (system procedure)              met       awareness and actions, draft framework
      behaviours across
                                                                                   completed
      all Goulburn Valley
      Water activities
      To develop               Measure level of activity and                       All targets met, with 55 schools
      community                effectiveness in school, community                  involved, meeting target of 40; 3,808
      understanding of
      sustainable water
                               and public education and promotion
                               of water messages with Annual Report
                                                                                  student contacts, meeting 3,500 target;
                                                                                   teacher satisfaction rating at 96%,
      management               to the Board                                        meeting 95% target
                                                          Goulburn valley water 2010| 2011 annual report            11




                                                                  environmental 2
                                                                   SuStainability
stAtement oF oBlIGAtIons
In delivery of its services, Goulburn Valley Water,          •	 The Environment Protection Act 1970,
in addition to the key role of customer service                 associated regulations, policies and licence
and meeting the reasonable expectations of its
                                                             •	 Principles to Establish EPA Environmental
customers, must meet a wide range of regulatory
                                                                Obligations for Water Businesses for the 2008-
obligations. From a regulatory perspective, the key
                                                                2013 Pricing Determination, November 2006
drivers that influence the services provided include:

                                                             •	 The Health Act 1958, Safe Drinking Water Act
•	 Water Act 1989
                                                                2003, Food Act 1984 and Fluoride Act 1973
•	 Water Industry Act 1994
                                                             •	 Regulatory Obligations administered by the
•	 The Victorian Government White Paper Securing                Department of Health for the purpose of
   Our Water Future Together                                    preparing water plans for the regulatory period
                                                                commencing 1 July 2008
•	 The Water Industry Regulatory Order
                                                             •	 Bulk entitlement orders
•	 The Statement of Obligations 2007
                                                             •	 Occupational Health and Safety Act 1985 and
•	 The Customer Code and key performance
                                                                associated legislation, regulations and codes
   indicators




WAter qUAlIty
safe Drinking Water compliance                               regulatory limit. The elevated results were detected
                                                             at Barmah, Nagambie, Pyalong and Thornton
Goulburn Valley Water achieved a high level of
                                                             localities. Goulburn Valley Water has a regulatory
performance against the requirements of Victoria’s
                                                             undertaking relating to haloacetic acid performance
Safe Drinking Water Act 2003 and Safe Drinking
                                                             at Thornton with the Department of Health during
Water Regulations 2005 during 2010/11.
                                                             2010/11. To address this performance aspect a
The majority of drinking water supplies complied             pipeline is being constructed from Alexandra
fully with the regulatory standard for E.coli. Of the        to Thornton to supply fully treated water and
3,100 reticulation samples collected, only 5 samples         is expected to be in operation during 2011/12.
returned a positive E.coli result. The positive results      Improvements to address disinfection by-product
were detected in samples at Barmah, Eildon,                  performance at Nagambie and Pyalong have
Nagambie, Numurkah and Wunghnu localities.                   been implemented during 2010/11, with further
The presence of E.coli has been attributed to the            improvements planned over the coming year. The
unusually heavy rainfall conditions and related              single result at Barmah was associated with the
deterioration in source water quality experienced            “black water” event on the Murray River associated
over the spring and summer period.                           with the flood events.

The majority of drinking water supplies complied             The majority of drinking water supplies complied
with the regulatory standards for haloacetic acid            with the regulatory standard trihalomethane
disinfection by-products. Of the 650 reticulation            disinfection by-products. Of the 650 reticulation
samples collected, only 11 samples exceeded the              samples collected in 2010/11, only 2 samples
                                                             exceeded the regulatory limit. The elevated results
12   Goulburn valley water 2010| 2011 annual report




2 environmental
  SuStainability
      WAter qUAlIty Cont.
      were detected at Nagambie. Improvements to             quality management
      address disinfection by-product performance at
                                                             During 2010/11 Goulburn Valley Water commenced
      Nagambie have been implemented during 2010/11,
                                                             a detailed review of its drinking water quality
      with further improvements planned over the
                                                             management system to improve the alignment
      coming year.
                                                             with requirements in the Australian Drinking
      The majority of drinking water supplies complied       Water Guidelines (ADWG) Framework for the
      with the regulatory standard for acid soluble          Management of Drinking Water Quality. The
      aluminium. Of the 520 reticulation samples             ADWG Framework, which incorporates aspects of
      collected in 2010/11, only 11 samples exceeded         the Hazard Analysis Critical Control Point (HACCP)
      the regulatory limit. Isolated elevated results were   system, embraces a catchment to customer
      detected in the Barmah, Katamatite, Mooroopna,         approach to the provision of safe drinking water.
      Nagambie, Numurkah, Shepparton and Wandong
                                                             The new Drinking Water Quality Management
      localities, which were attributable to short term
                                                             System incorporates the following components
      process control variations at the respective water
                                                             which are designed to satisfy all requirements of
      treatment plants. The Bonnie Doon locality
                                                             the ADWG Framework for the Management of
      returned 5 results exceeding the regulatory limit,
                                                             Drinking Water Quality:
      attributable to commissioning issues with the new
      water treatment plant that commenced operation         •	 Risk assessments of water treatment facilities;
      in January 2011. Investigations and process
      improvements to address this performance issue at      •	 Processes related to water quality control;
      Bonnie Doon are in progress.
                                                             •	 Records management;
      All drinking water supplies complied fully with the
                                                             •	 Emergency procedures;
      regulatory standard for turbidity. A total of 3,050
      reticulation samples were collected in 2010/11 for     •	 Water treatment plant schematics; and
      turbidity analysis.
                                                             •	 Reference documentation
      In October 2009, Goulburn Valley Water engaged
      an NCS International Registrar Accreditation Board     The review is due to be completed early in 2011/12
      Quality Society of Australia (RABQSA) Certified        with a view to implementing any management
      Auditor to conduct the second round of audits          improvements prior to the 2012 external audit.
      for the Corporation’s Risk Management Plan. The
      independent audit is required by the Department
      of Health under provisions of the Safe Drinking
      Water Act 2003. The Corporation once again
      complied with the obligations imposed by section
      7(1) of the Safe Drinking Water Act 2003 and as
      a result received its second Risk Management
      Plan Certificate of Compliance. The next Risk
      Management Plan audit is scheduled for April 2012.

      Full details of Goulburn Valley Water’s performance
      and related improvements in water quality will be
      available in the Corporation’s Water Quality Annual
      Report, published in November each year and
      available on the Goulburn Valley Water website.
                                                       Goulburn valley water 2010| 2011 annual report            13




commUnIty AWAreness
During 2010/11 Goulburn Valley Water continued            Working with the Community in 2010/11
to run an extensive education program focussed
                                                          •	 40 people attended water conservation
on water conservation and water quality issues.
                                                             presentations to local service clubs;
The Corporation continued to foster partnerships
with major industries and the Environment                 •	 300 visited water conservation and water quality
Protection Authority (EPA) for cleaner production            stands at community expos and events;
programs, water conservation, recycling and
waste minimisation. Significant water savings and         •	 70 community members attended Waterwise
sodium discharge reductions are key aims of these            Gardening workshops;
programs.
                                                          •	 100 participants were involved in Waterwatch
                                                             training and meetings;
community education
                                                          •	 340 people participated in Goulburn Valley
The community education program at Goulburn
                                                             Water facility tours.
Valley Water is broad-ranging and raises awareness
in the community of a range of water-related issues
from conservation and sustainability to water             Water smart Gardens and homes rebate
quality and biodiversity. Topics covered include          Goulburn Valley Water actively promoted the Water
water conservation, waterwise gardening, water            Smart Gardens and Homes Rebate Scheme until
production, wastewater management and water               the program’s end in June 2011.
quality.
                                                          The table below outlines the number of rebates
Working with Schools in 2010/11                           that Goulburn Valley Water processed for its
                                                          customers in 2010/11.
•	 Activities consisted of school visits, excursions
   and National Water Week classroom activities
   such as :
                                                          rebates Processed 2010/11
   •	 Macroinvertebrates: 1,350 students
   •	 Water quality testing: 740 students                                                             nO. OF
   •	 Water conservation: 140 students                    PrOduCT                                    rEBaTES
   •	 Facility tours: 1,170 students                      Dual Flush Toilet ($50)                           29
   •	 Water Week competitions and performances:
                                                          Hot Water Recirculation ($150)                     0
      4,550 students
                                                          Permanent Grey Water Tank ($500)                   0
•	 7,940 students participated overall
                                                          Rainwater Tank ($1,000)                            8
•	 71 schools participated in some way
                                                          Rainwater Tank ($900)                              3

                                                          Rainwater Tank ($500)                              1

                                                          Rainwater Tank ($150)                              4

                                                          Shower Rose ($20)                                  2

                                                          Shower Rose ($10)                                  1

                                                          Basket Offer ($30)                                91

                                                          TOTaL                                            139
14   Goulburn valley water 2010| 2011 annual report




2 environmental
  SuStainability
      commUnIty AWAreness Cont.

      Water conservation Awareness                           Water quality Awareness
      The Corporation actively promotes water                Goulburn Valley Water supports the Goulburn
      conservation in a range of ways, including its         Broken Waterwatch program. This program
      Waterwise Tips program, waterwise garden               promotes water quality monitoring in schools
      promotion and education program, school water          and the general community to raise community
      conservation activities and through its website.       awareness of water quality issues.

      Goulburn Valley Water again conducted the              Engaging community groups in water testing
      annual Waterwise Garden Award which is open            activities provides them with basic scientific
      to all residential customers. All nominations          knowledge that allows them to better understand
      were independently judged on six criteria; plant       issues impacting on local waterways. In 2010/11,
      selection and grouping, garden design, watering        more than 80 trained community monitors collected
      systems, garden management, water management           water quality data from 250 sites on the Goulburn
      and garden enjoyment, which stipulates that the        and Broken Rivers and tributaries. Many sites were
      garden is not only waterwise by definition, but also   monitored up to six or more times during the year.
      provides enjoyment, satisfaction and pleasure to
                                                             Chemical parameters monitored by Waterwatch
      the residents.
                                                             volunteers in the Goulburn and Broken Rivers
                                                             and tributaries include: Turbidity, pH, Electrical
                                                             Conductivity, Total Phosphorus, Temperature,
                                                             Dissolved Oxygen, E. coli and Chemical Oxygen
                                                             Demand.




      reGIonAl cAtchment strAteGy
      Goulburn Valley Water plays a key role in partnering   This year saw Goulburn Valley Water develop an
      with the Goulburn Broken Catchment Management          Environment Stewardship Framework to further
      Authority (GBCMA) in the development and               improve environmental, sustainability and land
      implementation of its Regional River Health            management outcomes.
      Strategy. In addition to addressing customer
                                                             The Corporation is also actively involved in regional
      interests to protect water quality, the protection
                                                             policy discussions related to land use and septic
      and maintenance of environmental values
                                                             tank management in potable water catchment
      addressed by the strategy benefit the region as a
                                                             areas. It is anticipated that these discussions will be
      whole.
                                                             ongoing over 2011/12 and to date have included
      Goulburn Valley Water actively participates in the     many catchment partners including municipal
      GBCMA Water Quality Group and continues to             councils, the Department of Health and the EPA.
      promote water quality protection and improvement
      in the catchment. Initiatives include riparian
      improvement actions like tree planting and fencing
      for stock management, and working with partner
      Goulburn-Murray Water to address catchment
      water quality risks.
                                                          Goulburn valley water 2010| 2011 annual report                  15




VIctorIAn BIoDIVersIty strAteGy
Goulburn Valley Water manages significant areas of                The Corporation has six ‘Land for Wildlife’ areas
land that support a broad range of ecosystems and                 located at various operational sites as well as
is committed to sustainable resource management.                  a conservation covenant site at Kilmore. These
The Corporation has ongoing initiatives that                      bioregions provide refuge habitat for native flora
support and enhance ecosystem values such as                      and fauna.
native tree planting programs, development of
                                                                  Along with this, Goulburn Valley Water developed
‘Land for Wildlife’ sites and fencing of remnant
                                                                  an Environmental Stewardship Framework during
native vegetation.
                                                                  2010/11 that includes biodiversity management.
Over 2010/11, the Corporation planted significant                 Included in the strategy is an integrated approach
native vegetation as well as implementing land                    to regional catchment partnerships, which targets
based weed and vermin control programs.                           enhanced biodiversity.

                                                                  A snapshot of biodiversity actions achieved by
                                                                  Goulburn Valley Water during 2010/11 follows.



Biodiversity Actions 2010/11
OBjECTiVE                           TarGET                               PrOGrESS durinG 2010/11

                                                                         Weed spraying programs implemented at
                                    Weed free Corporation
Weed Control                                                             all GVW facilities and land managed by
                                    properties
                                                                         GVW

                                    Control of fox, rabbit and
                                    rodent numbers to prevent            Control measures put in place at facilities as
Vermin Control
                                    negative impacts on native           required
                                    habitat and crops

                                                                         Protective fencing of native vegetation
                                                                         completed at Mansfield, Marysville and
                                                                         Sawmill Settlement
Management of native flora          Manage native habitat on
                                                                         Management of habitat areas at wastewater
and fauna                           Corporation properties
                                                                         sites to improve flora and fauna species gain

                                                                         Site reviews for potential registration for
                                                                         ‘Land For Wildlife’

                                                                         Total of 5,876 trees planted in GVW’s
Encouraging a net gain of           Increase native vegetation           regional area, with plantings comprising of
native flora and fauna              cover                                indigenous trees, understory low shrubs and
                                                                         grass species

                                    All Operational staff trained
Training of staff in biodiversity                                        Twelve employees undertook training
                                    in Cert. III Water Industry
and conservation values                                                  during the year
                                    Operations
16   Goulburn valley water 2010| 2011 annual report




2 environmental
  SuStainability
      VIctorIAn rIVer heAlth strAteGy
      The Victorian River Health Strategy (VRHS)               has been relatively wet over 2010/11, past drought
      establishes the policy framework for managing the        conditions highlight that dry climatic conditions
      health of Victorian rivers, floodplains and estuaries.   and other factors can reduce natural river flows.
      A focus of the strategy is to restore stressed           Returning appropriately treated recycled water
      rivers and improve water quality by integrating          back to waterways has a high potential to
      government and community programs. Goulburn              benefit waterway health. In this regard, ongoing
      Valley Water plays an important role in contributing     monitoring programs are providing important new
      to the success of this strategy, in particular by        knowledge to assist in implementing the VRHS and
      ensuring that the Corporation’s on-stream works          improving environmental outcomes for the region.
      and activities do not impact adversely on river
                                                               The VRHS framework is currently being updated
      health.
                                                               to form the Victorian Strategy for Healthy
      A focus of the VRHS is to collectively address           Rivers, Estuaries and Wetlands (VSHREW)
      issues associated with environmental flows,              for implementation in 2013. As a catchment
      declining water quality and degraded riverine            stakeholder with a strong interest in river health,
      habitats. During 2010/11, Goulburn Valley Water          Goulburn Valley Water is providing input to the
      continued to work on reducing the impact of its          development of the new strategy.
      operations in the return of water to rivers. While it




      GreenhoUse AnD enerGy rePortInG
      Goulburn Valley Water produces greenhouse
      emissions from activities such as electricity use
      for pumping and aeration, wastewater treatment
      processes, combustion of fuel to provide energy for
      vehicles, generators and diesel pumps and the use
      of chemicals such as soda ash.

      The Corporation adopted a baseline year for
      comparison and greenhouse emissions reporting
      as of 2001/02. The table shows the emissions for
      the baseline year, 2009/10 and 2010/11 in units of
      equivalent tonnes of carbon dioxide (t CO2-e).
                                                      Goulburn valley water 2010| 2011 annual report                    17




GreenhoUse AnD enerGy rePortInG Cont.

total Greenhouse Gas emissions
                                                                        GrEEnhOuSE GaS EMiSSiOnS (t CO2-e)

aCTiViTy                                                  2001/02                     2009/10               2010/11

Water treatment                                                17,272                  13,903                  7,453

Sewage treatment                                               74,914                  14,914               15,239**

Transport                                                       1,032                   1,117                  1,070

Offices                                                          448                      466                    365

Livestock                                                       1,445                      0*                     0*

Subtotal                                                       95,111                  30,400                24,127

Tree offsets                                                     -654                    -666                   -666

nET EMiSSiOnS                                                  94,457                  29,734                23,461

* Fugitive emissions from livestock have been excluded since 2007/08 in keeping with the current National
Greenhouse and Energy Reporting System guidelines.

** Fugitive emissions from wastewater treatment are being reviewed, and may alter net emissions.




A significant reduction of around 75% in
greenhouse emissions has been achieved since the
baseline year, with net emissions below the target
set in the Corporation’s Greenhouse Action Plan.
The following chart shows this trend in Goulburn
Valley Water’s greenhouse emissions.



net emissions trend
net emissions (t CO2-e) / year
100,000


 80,000


 60,000


 40,000


 20,000


      0
            ‘01/’02   ‘02/’03    ‘03/’04   ‘04/’05   ‘05/’06      ‘06/’07   ‘07/’08     ‘08/’09   ‘09/’10     ‘10/’11
18   Goulburn valley water 2010| 2011 annual report




2 environmental
  SuStainability
      GreenhoUse AnD enerGy rePortInG Cont.
      Reductions in emissions are primarily the result of         in turn reduced overall customer water demand.
      ongoing improvements in biogas management                   This resulted in reduced emissions from water
      at the Mooroopna, Shepparton and Tatura                     production and pumping operations.
      Wastewater Management Facilities. Biogas
                                                                  The Corporation has reduced emissions over
      (methane) previously released to the atmosphere
                                                                  the past nine years reflecting a strong ongoing
      is now captured and generated into electricity or
                                                                  commitment to improved environmental
      flared at high temperature.
                                                                  performance. In 2011/12, Goulburn Valley Water
      Along with ongoing efficiency actions, the                  will review its Greenhouse Action Plan to address
      reduction in emissions over 2010/11 was primarily           the evolving regulatory framework and consider
      the result of the wetter than average year, which           additional means to avoid, reduce, switch, contain
                                                                  or offset emissions, where it is sustainable to do so.




      BUlK WAter entItlements
      The Corporation has converted its rights to water to Bulk Entitlements under section 47 of the Water Act 1989
      for its water supply systems.


      Bulk Water entitlements 2010/11
                                                                              BuLk
                                                                      EnTiTLEMEnT
                                                                       aLLOCaTiOn              raW
                                                                BuLk     inCLudinG            WaTEr            TOTaL
                                                         EnTiTLEMEnT    CarryOVEr           VOLuME         TranSFErS
      SuPPLy SySTEM                   SOurCE                     (ML)          (ML)       TakEn (ML)             (ML)

      Alexandra                       Goulburn River              916           1,030              303              -700

      Barmah                          Murray River                 82             113               39                 0

      Bonnie Doon                     Lake Eildon                 112             176               41              -100

      Broadford/ Kilmore/
      Waterford Park/
                                      Sunday Creek              2,875           2,875              680                 0
      Clonbinane/ Wandong/
      Heathcote Junction

      Buxton                          Steavenson River            110             110                 0                0

      Cobram                          Murray River              3,525           4,104            2,880                 0

      Colbinabbin                     Channel                      89             152               15              -100

      Corop                           Channel                      44              48                 6                0

      Dookie                          Channel                     160             278               83              -192

      Eildon                          Lake Eildon                 471             507              123              -300

      Euroa                           Sevens & Mt Hut Creeks    1,990           1,990              541                 0
                                                 Goulburn valley water 2010| 2011 annual report    19




BUlK WAter entItlements Cont.

Bulk Water entitlements 2010/11
                                                                 BuLk
                                                         EnTiTLEMEnT
                                                          aLLOCaTiOn          raW
                                                   BuLk     inCLudinG        WaTEr        TOTaL
                                            EnTiTLEMEnT    CarryOVEr       VOLuME     TranSFErS
SuPPLy SySTEM            SOurCE                     (ML)          (ML)   TakEn (ML)         (ML)

Girgarre                 Channel                     100          154           30          -100

Katamatite               Channel                      84          120           34            0

Katandra West            Channel                      64           81           30            0

Kyabram                  Channel                   2,000         2,109        1,032         -900

Longwood                 Nine Mile Creek             120          120           41            0

Mansfield                Delatite River            1,300         1,300         456            0

Marysville               Steavenson River            462          462          157            0

Mooroopna                Goulburn River              300          531           22          -400

Murchison                Goulburn River              350          406          164          -200

Nagambie                 Goulburn River              825          875          471          -300

Nathalia                 Broken Creek                652          885          361             0

Numurkah/Wunghnu         Broken Creek              1,206         1,548         688             0

Picola                   Channel                      44           65           14             0

Pyalong                  Mollisons Creek              75           75           55             0

Rushworth                Waranga Basin               530          640          202          -400

Seymour/Avenel/Tallarook Goulburn River            5,340         5,650        1,582       -3,800

Shepparton/Mooroopna/
                         Goulburn River           17,970        18,166        9,738       -6,979
Tallygaroopna/Toolamba

Stanhope                 Channel                     200          215           58          -150

Tatura                   Channel                   2,600         2,830        2,068         -700

Thornton                 Rubicon River               120          120           45             0

Tongala                  Channel                   1,404         1,519         566          -800

Upper Delatite           Delatite River              235          235            63            0

                         Honeysuckle
Violet Town                                           20           20             0            0
                         Creek

Woods Point              Brewery Creek                30           30            13            0

Yea                      Yea River                   438          438          175             0

TOTaL                                             46,843       49,977        22,776      -16,121
20   Goulburn valley water 2010| 2011 annual report




2 environmental
  SuStainability
      BUlK WAter entItlements Cont.

      notes to Bulk entitlements table                       10. The total volume diverted from the Delatite
                                                                 River for Mansfield over the 2009/10 and
      1.   The Corporation’s Bulk Entitlements on the
                                                                 2010/11 period was 1,040 ML. This is below
           regulated Goulburn and Murray systems were
                                                                 the bulk entitlement limit of 2,600 ML over two
           not restricted in 2010/11.
                                                                 years.
      2.   The volume of water taken for each urban
                                                             11. The Corporation was able to assist other Water
           system is shown in the table together with
                                                                 Corporations and irrigators by trading 16,108
           transferred volumes. A negative value in the
                                                                 ML of water via the water market during
           ‘Total Transfers’ column indicates a temporary
                                                                 2010/11. A further 1,100 ML was temporarily
           transfer out of the system; a positive value
                                                                 transferred to supply third party irrigators
           indicates a temporary transfer into the system.
                                                                 using saline recycled water and for internal
           The total transfers figure includes temporary
                                                                 operational purposes.
           water trading, internal transfers and transfers
           to third party irrigators using recycled water.   12. The security of supply under bulk entitlements
                                                                 was reviewed in 2006/07 as part of the
      3.   The Corporation did not seek any credit for
                                                                 Corporation’s 50 year Water Supply Demand
           recycled water returned to the Goulburn River
                                                                 Strategy. No further formal reviews or changes
           at Shepparton, Alexandra or Eildon during
                                                                 have occurred since that time. A review of
           2010/11.
                                                                 drought response plans occurred in 2008/09.
      4.   No permanent transfers of water entitlements
                                                             13. All Bulk Entitlement conditions were
           occurred during 2010/11.
                                                                 met during 2010/11. No difficulties were
      5.   All Corporation diversion points are metered          experienced in meeting these conditions.
           and accord with metering plans approved by
                                                             14. In January 2011 the Violet Town Bulk
           the Minister. Environmental and monitoring
                                                                 Entitlement was amended to reflect the
           plans are in place where required. No changes
                                                                 decommissioning of Honeysuckle Creek
           to these plans occurred in 2010/11.
                                                                 Reservoir in 2005.
      6.   Kirwan’s Bridge and Goulburn Weir (Baxter’s
                                                             15. No new Bulk Entitlements were granted to
           Road) were supplied via diversion licenses
                                                                 Goulburn Valley Water in 2010/11.
           issued by Goulburn-Murray Water. The water
           used by these communities (Kirwan’s Bridge        16. The Corporation has redundant Bulk
           - 8 ML, Baxter’s Road - 2 ML) was within the          Entitlements at Merrigum and Toolamba, which
           license allocations, and is not shown in the          have zero entitlements, and are not included in
           table.                                                the table.

      7.   Diversions to supply Molesworth (9 ML) are        17. Raw water volume taken for Broadford/
           included in the Alexandra diversion total.            Kilmore/Waterford Park/Clonbinane/Wandong/
                                                                 Heathcote Junction relates to the Sunday
      8.   The Corporation is seeking to convert existing
                                                                 Creek Bulk Entitlement only. A further 418 ML
           rights to water for the Strathbogie System to
                                                                 was pumped from the Goulburn River to
           a Bulk Entitlement. The 2010/11 diversion of
                                                                 supplement supply to Broadford. The 418 ML
           16 ML is not shown in the table.
                                                                 is included in the total volume taken for
      9.   Katunga is supplied with groundwater under a          Seymour/Avenel/Tallarook.
           groundwater license. The total volume taken
           under this license (39 ML) in 2010/11 is not
           shown in the table.
                                                          Goulburn valley water 2010| 2011 annual report                     21




WAter restrIctIons
On 20 November 2009 the Stage 1 restrictions for             Allocations on the Murray and Goulburn systems
all towns were lifted and over the 2010/11 year, all         reached 100% of the bulk entitlement volume for
Goulburn Valley Water towns were on Permanent                2010/11. All storages were holding satisfactory
Water Saving Rules. These conditions require that            volumes of water and in many instances were full
customers comply with ‘best practice’ water use              for large parts of the year.
standards.




WAsteWAter mAnAGement
Goulburn Valley Water operates 26 wastewater                 odour management strategy
management facilities throughout the region. The
                                                             Goulburn Valley Water made provisions in the Water Plan
facilities vary, but predominately utilise lagoon-based
                                                             2008 - 2013 to undertaker odour monitoring and control
treatment processes capable of treating water to
                                                             studies throughout all sewerage reticulation systems.
Class C standard suitable for agricultural irrigation.
Three of the facilities treat recycled water to a            Consulting Environmental Engineers (CEE) has been
tertiary standard to facilitate return to waterways at       engaged to prepare a strategy for managing odour risk
designated times of the year.                                associated with the sewer network. CEE commenced
                                                             the project in May 2009 with Stage 1 “Review of
Goulburn Valley Water uses more than 78% of the
                                                             Current Practices and Policies” and Stage 2 “Odour Risk
recycled water produced on average for irrigated
                                                             Characterisation” completed by March 2010.
agriculture. Relatively small volumes are also recycled
to irrigate golf courses.                                    Based on the outcomes of Stage 2, improvement works
                                                             have been fast tracked for high priority sites. Works to
Above average rainfall was experienced during
                                                             install odour control facilities, incorporating a ventilation
2010/11, resulting in significant flood events
                                                             fan, vent stack and bio-trickling filter commenced
in the region. In a number of cases the rainfall
                                                             at a site in Shepparton on the edge of the central
exceeded the 90 percentile wet year design
                                                             business district during 2010/11, and investigations for
capacity of wastewater management facilities. In
                                                             improvements at Tatura and Bonnie Doon are also well
these instances, Section 30A discharge licences
                                                             advanced.
were sought and approved by the EPA to facilitate
controlled emergency discharges from the facilities.         As part of Stage 3 of the study, Goulburn Valley
                                                             Water undertook an odour monitoring program from
recycled Water reuse                                         November 2010 through to March 2011. This involved
                                                             odour logging and site sampling at the higher risk sites
Goulburn Valley Water is one of the largest regional
                                                             identified through the earlier stages of developing
producers of recycled water in Australia. In 2010/11
                                                             the strategy. This data, along with the information
a total of 4,021 ML, or 40%, of recycled water from
                                                             and recommendations from the earlier stages of the
the Corporation’s wastewater management facilities
                                                             program, is being analysed and collated, culminating
was reused for irrigation. This compares to the
                                                             in a Sewer Network Odour Management Strategy. The
five year rolling average of 78%. The low 2010/11
                                                             Strategy is expected to be completed early in 2011/12
figure is attributable to the above average rainfall
                                                             and will provide the Corporation with a detailed action
experienced during the summer irrigation period.
                                                             plan to manage current and potential sewer network
                                                             odour problems.
22   Goulburn valley water 2010| 2011 annual report




2 environmental
  SuStainability
      WAsteWAter mAnAGement Cont.

      Biosolids                                                     Approximately 300 dry tonnes of biosolids from
                                                                    the Nathalia Wastewater Management Facility was
      In accordance with Goulburn Valley Water’s
                                                                    used to assist in the establishment of grass on the
      Biosolids Management Strategy, the Corporation
                                                                    storage lagoon batters at the site.
      reused approximately 300 dry tonnes of biosolids
      in 2010/11. While this is less than the estimated             The benefits of using biosolids on agricultural land
      annual accumulation rate across the Corporation,              include improved soil moisture holding capacity
      opportunities for reuse were hampered by the                  and increased organic matter. Research in Australia
      unusually wet conditions during the year.                     has confirmed that this improves agricultural
                                                                    productivity. These research findings are expected
                                                                    to lead to greater volumes of biosolids being used
                                                                    in the future.



      Wastewater spills
      Improved management involving increased sewer preventative jetting in 2010/11 assisted in reducing the
      number of wastewater spills compared to previous years. This is shown in the table below.


      Wastewater spills
      SPiLL TyPE              2004/05      2005/06        2006/07   2007/08          2008/09   2009/10       2010/11

      Priority 1 (Major)              6             7           4            4             3          4              4

      Priority 2 (Minor)             68           51           55          50             67         36             35

      Total                         74            58           59          54            70          40             39



      Most of this year’s spills are the result of blockages        The Corporation has a continuing program of
      from tree roots growing into sewers or high                   preventative sewer jetting and root foaming, with
      infiltration associated with heavy rainfall that              priority given to sewers near watercourses and
      exceeded the capacity of the sewerage collection              other environmentally sensitive areas.
      system. There is a higher risk of surcharging in the
      southern towns in Goulburn Valley Water’s region
      where the undulating terrain allows sewers to be
      constructed at shallow depths, but also results in
      less storage capacity in the system.
                                                        Goulburn valley water 2010| 2011 annual report           23




WAsteWAter mAnAGement Cont.
Major Spills                                               The Corporation also reported to the EPA
                                                           discharges of treated recycled water from the
Four major (priority 1) spills were recorded in
                                                           Eildon Wastewater Management Facility. The
2010/11.
                                                           discharge occurred as a result of high rainfall and

•	 Kilmore – Northern Highway
                                                           infiltration which exceeded the capacity of the

   Heavy rainfall during September 2010 resulted           winter storage. As part of the approved Water Plan,

   in surcharge of the reticulation system and a           the Corporation has since constructed additional

   spill to the Kilmore Creek. The spill coincided         winter storage at this site to improve balancing

   with relatively high flows in the Kilmore Creek         capacity.

   resulting from the storm event, and monitoring
   confirmed that the environmental impact                 trade Waste
   was minor. Improved flow monitoring data
                                                           Goulburn Valley Water continued to work closely
   was collected during this rainfall event, and
                                                           with trade waste customers, co-ordinating
   subsequent events, that has facilitated improved
                                                           regular major trade waste customer forums as
   accuracy of collection system hydraulic computer
                                                           an opportunity for networking and exchange of
   models. The resultant improvement in design
                                                           information among representatives. All required
   information has enabled the development of a
                                                           major customers are now undertaking their own
   capital improvement strategy for the collection
                                                           trade waste sampling and audit results continue to
   system.
                                                           reflect improving performance.
•	 Kilmore – Lumsden Street
                                                           In 2010/11 the electronic data management system
   A partial blockage of the low lying sewer
                                                           for waterMAPs went live and customers have
   reticulation system resulted in a sewer surcharge
                                                           entered valuable water usage and conservation
   and a spill into a residential unit during a heavy
                                                           information into the database. In 2011/12 the
   rain event in September 2010. The Corporation
                                                           mandatory waterMAPs program is expected to
   has subsequently installed backflow prevention
                                                           become voluntary for all non residential customers
   on the service lines to the units to avoid further
                                                           that consume greater than 5 ML of water per
   spills.
                                                           year. Goulburn Valley Water will continue to work
•	 Shepparton – Balaclava Road                             closely with customers to promote water efficiency
   High rainfall during December 2010 resulted             and encourage businesses to participate in the
   in unusually high surface water inflow and              waterMAPs program.
   the sewer reticulation system surcharging.
   Three properties were impacted by the spill.
   A program of works to avoid recurrence was
   implemented as a consequence of the spill
   investigation.

•	 Yea – Oliver Street
   A partial blockage of the sewer reticulation main
   in April 2011 resulted in a sewer spill within a
   residential dwelling. The Corporation arranged
   for immediate cleanup and the blockage was
   cleared.
24   Goulburn valley water 2010| 2011 annual report




3 water
  ConSumption
      WAter consUmPtIon

      Water resources                                         Water diversions decreased by 5,693 ML to
                                                              22,776 ML. This decrease was also related to the
      The water resource position improved during
                                                              wetter than average seasonal conditions.
      2010/11 as above average spring and summer
      rainfall reduced customer demand and the resultant      The Corporation’s Water Conservation Strategy
      runoff supplemented storage levels.                     and Water Supply Demand Strategy were last
                                                              reviewed in 2007. It is planned to review both
      Bulk entitlements from the Goulburn and Murray
                                                              strategies in 2011/12. It is anticipated that the
      irrigation systems reached 100% for the year
                                                              Water Conservation Strategy will retain a focus of
      and storages servicing unregulated systems
                                                              efficient water use and savings over the residential,
      maintained above average levels throughout the
                                                              industrial and commercial sectors.
      year. Consequently all systems were subject to
      Permanent Water Saving Rules and more stringent         Progress on the existing strategy initiatives
      restrictions were unnecessary.                          has been very good, with system losses and
                                                              consumption by customers below 2020 target
      Water consumption                                       levels.

      In 2010/11 the number of water customers serviced       During 2010/11, leak detection investigations were
      by Goulburn Valley Water grew by 1%. However            undertaken in Longwood, Numurkah and Wunghnu.
      the total volume of water delivered to customers        Of the 60km of reticulated water main involved in
      decreased by 13%, which is attributable to the          the investigation, 58 minor leaks were located and
      above average rainfall experienced during the           repaired. The water savings from this program are
      spring and summer.                                      estimated at 10 ML per annum.

      Total annual water consumption declined from
      24,339 ML to 20,096 ML. Both residential
                                                              Water conservation strategy
      consumption and ‘other’ (unaccounted water)             Targets specified for 2020 in the Corporation’s
      categories declined.                                    Water Conservation Strategy are compared to
                                                              current performance levels in the table below.




      target vs. Performance
      TarGET 2020                                                                   2009/10                   2010/11

      Overall water diversions < 31,000 ML                                        28,469 ML               22,776 ML

      Residential target < 336 L per person per day                                    265 L                      201 L

      Residential target < 15,410 ML per year                                     12,226 ML                9,461 ML

      Commercial and industrial target < 10,540 ML per year                       10,068 ML                8,715 ML

      Distribution losses < 8%                                                         8.40%                    9.50%
                                                          Goulburn valley water 2010| 2011 annual report               25




Water consumption 2010/11
                          aCTuaL annuaL COnSuMPTiOn (ML) and nuMBEr OF aSSESSMEnTS (nO.)                      annual
                                                                                                        Consumption
                           Water Supply        Water Supply                                     average    / average
                           retail urban        retail urban                    Total annual      annual       annual
                            residential       non-residential     Other        Consumption      demand       demand
WaTEr diSTriCT            ML         no.      ML         no.      ML          ML         no.        ML            %
Alexandra                173      1,244       68        201       35         276      1,445        328       84.1%
Barmah                    26        160         3         17        2         31        177         43       72.1%
Bonnie Doon               19        236       12          15        6         37        251         36      102.8%
Broadford, Clonbinane    289      1,860       81        117       66         437      1,977        482       90.7%
Cobram, Yarroweyah,
                         558      2,711     1,855       479         6      2,419      3,190      2,613       92.6%
Strathmerton
Colbinabbin                8         77         8         17        3         19           94       21       90.5%
Corop                      2         33         1          4        0          3           37         5      60.0%
Dookie                    34        137       30          19      29          93        156         98       95.0%
Eildon                    60        597       52          66      12         124        663        127       97.6%
Euroa, Strathbogie,
                         304      2,069      135        268       64         502      2,337        621       80.8%
Violet Town
Girgarre                  25        116         1         14        0         26        130         32       80.0%
Katamatite                19        119         7         19        1         27        138         36       75.9%
Katandra West             19        118         3         15        3         25        133         35       71.4%
Katunga                   20         85       11          17        5         36        102         43       83.7%
Kilmore, Wandong/
                         486      3,326      107        274       57         650      3,600        631      103.0%
Heathcote Junction
Kyabram, Merrigum        584      2,976      241        425      105         930      3,401      1,148       81.0%
Longwood                  23        118       14          14       4          41        132         47       87.2%
Mansfield                268      1,767      108        332       28         404      2,099        455       88.8%
Marysville, Buxton        38        719       19          95      72         129        814        150       86.0%
Murchison                 68        396       33          56      34         135        452        160       84.6%
Nagambie, Baxters
                         127        897      240        121        1         367      1,018        435       84.4%
Road, Kirwans Bridge
Nathalia                 157        750       76        119       52         285        869        355       80.3%
Numurkah, Wunghnu        367      2,065      248        302        2         617      2,367        738       83.6%
Picola                     9         66         1          9       1          11           75       15       73.3%
Pyalong                   23        152         1         18       3          27        170         31       88.4%
Rushworth                105        573       26          90      26         157        663        215       73.0%
Seymour, Avenel,
                         664      3,637      296        502      142       1,103      4,139      1,189       92.8%
Mangalore, Tallarook
Shepparton,
Congupna,
Mooroopna,              4,315   19,966      3,179     2,553      946       8,440    22,519      10,317       81.8%
Tallygaroopna,
Toolamba
Stanhope                  35        237         8         65      20          62        302         70       88.6%
Tatura                   352      1,739     1,434       204      101       1,887      1,943      1,985       95.1%
Thornton                  18        105       22          17       2          42        122         43       98.6%
Tongala                  114        553      348          94      53         514        647        563       91.3%
Upper Delatite,
                          29        526         4         14      19          52        540         57       91.5%
Merrijig
Woods Point               10         61         1          8       2          13           69       22       60.9%
Yea, Molesworth          113        701       43        124       17         173        825        233       74.2%
TOTaL                   9,461   50,892     8,715      6,704     1,920     20,096    57,596      23,379      85.9%
26   Goulburn valley water 2010| 2011 annual report




3 water
  ConSumption
      corPorAte WAter consUmPtIon
      The Shepparton Regional Administration Office
      used 776kL of water in 2010/11. This was below the
      annual target of 1,070kL and equates to 11.3kL per
      Full Time Equivalent (FTE) employee and 0.5kL per
      square metre of office space. The small increase
      compared to the 2009/10 result of 10kL per FTE
      employee is well within the target range and within
      the normal variability expected from year to year.




      mAjor WAter cUstomers
      During 2010/11 there were 18 major customers
      that each used 50ML or more of water, which is a
      decrease of 5 customers compared to the previous
      year. This is principally due to in house water
      conservation measures initiated by the customers.
      The Corporation’s largest water users are the food
      processing industries and Goulburn Valley Water
      continued to work closely with these customers to
      reduce water used per unit of production.



      customer by volume range 2010/11
      VOLuMETriC ranGE - ML PEr yEar                        nuMBEr OF CuSTOMErS

      Equal to or greater than 50ML and less than 100ML                       7

      Equal to or greater than 100ML and less than 200ML                      6

      Equal to or greater than 200ML and less than 300ML                      1

      Equal to or greater than 300ML and less than 400ML                      0

      Equal to or greater than 400ML and less than 500ML                      0

      Equal to or greater than 500ML and less than 750ML                      1

      Equal to or greater than 750ML and less than 1000ML                     1

      Equal to or greater than 1000ML                                         2

      Total number of Customers                                              18
                                                  Goulburn valley water 2010| 2011 annual report   27




mAjor WAter cUstomers Cont.

major customer participation in water conservation programs 2010/11
                                                                             EnVirOnMEnT and
                                                                          rESOurCE EFFiCiEnCy
CuSTOMEr                                                      WaTErMaP            PLanS (ErEPS)

Bega Cheese Ltd (Strathmerton)                                                              
Campbell Australasia Pty Ltd (Shepparton)                                                   
Energy Business Australia Pty Ltd (Cobram)                                                 
Goulburn Valley Health                                               
H W Greenham & Sons Pty Ltd (Tongala)                                                       
Kamulla Holdings Pty Ltd                                             
Murray Goulburn Co-op Pty Ltd – MG Nutritionals (Cobram)                                    
Murray Goulburn Trading Pty Ltd (Cobram)                                                    
Mushroom Exchange Pty Ltd (Nagambie)                                                        
Nestle Australia Ltd (Broadford)                                     
Nestle Australia Ltd (Tongala)                                                              
Riverland Oilseed Pty Ltd                                            
SPC Ardmona Ltd (Mooroopna)                                                                 
SPC Ardmona Ltd (Shepparton)                                                                
Swift Australia Pty Ltd (Cobram)                                                            
Tatura Abattoirs Pty Ltd                                             
Tatura Milk Industries Ltd                                                                  
Unilever Australia Ltd (Tatura)                                                             
Total                                                                 6                     13
28   Goulburn valley water 2010| 2011 annual report




4 aSSetS &
  inFraStruCture
      Assets
      Goulburn Valley Water operates 1,750km of water      The Asset Register and maintenance management
      mains, 1,207km of pressure and gravity sewers,       system, along with consultation with District
      317 pumping stations, 117 tanks and reservoirs,      Managers and Operations and Maintenance staff,
      39 water treatment plants and 26 wastewater          are used to identify water mains that are in need of
      management facilities. Details of these facilities   replacement and to formulate a sewer inspection
      are recorded in the Asset Register. The same         program.
      system is also the primary management tool for the
      maintenance and operation of the Corporation’s
      assets.




      WAter mAIn rePlAcements
      Goulburn Valley Water identifies water mains         The replacement program for unlined cast iron
      for replacement by their failure history and         water mains continued during 2010/11 with a
      consequences of failure. During 2010/11 the          further 1,480m of water main replaced in Seymour,
      Corporation replaced 1,340m of water main            Nathalia, Wandong and Mansfield. This program
      in Shepparton, Kyabram, Tatura, Seymour and          will continue in 2011/12.
      Alexandra.




      seWer mAIn InsPectIon AnD rehABIlItAtIon
      During 2010/11 approximately 24,338m of sewer
      mains were cleaned and inspected by Closed
      Circuit Television (CCTV). Most of this work was
      concentrated in Seymour as part of an ongoing
      program to reduce the sewer blockage rates in
      this collection system. CCTV inspections of sewer
      mains were also completed in Tatura, Shepparton,
      Nagambie, Alexandra, Eildon and Mansfield. The
      2011/12 CCTV program will concentrate on Eildon,
      which has high infiltration and sewer blockage
      rates.

      Based on CCTV inspections undertaken in previous
      years, 1,740m of sewer mains were relined and
      six patch liners installed in Shepparton, Cobram,
      Kyabram, Mooroopna and Seymour during
      2010/11.
                                                       Goulburn valley water 2010| 2011 annual report                      29




Asset ProtectIon
Major activities completed or initiated in the past             subsequently investigated in detail by specialists.
year as part of Goulburn Valley Water’s Asset                   Investigation of all other assets in this class is
Management Improvement Plan include:                            programmed for 2011/12.

•	 Implementation of cathodic protection across              Other major initiatives that are planned to
   numerous assets including steel tanks and water           commence during 2011/12 include:
   towers
                                                             •	 Review of criticality of all classes of assets. This
•	 A comprehensive asset condition inspection
                                                                information, together with asset condition
   program to update the asset register and
                                                                information, is crucial for informed asset
   independently evaluate current maintenance,
                                                                management decisions.
   monitoring and rehabilitation management
                                                             •	 Implementation of an enhanced inspection
   practices
                                                                program for high criticality pumps. This program
•	 As part of ongoing asset condition assessment
                                                                will include vibration analysis, thermal imaging
   across the Corporation, a number of asset
                                                                and electrical testing to better evaluate asset
   classes have been targeted for specialist
                                                                condition and for predictive analysis.
   condition monitoring. During 2010/11,
                                                             •	 A bulk flow meter replacement program. This
   steel and concrete tanks and towers were
                                                                initiative has been included in the Infrastructure
   prioritised for detailed condition assessment
                                                                Program to replace non-revenue bulk flow
   and a number of high priority assets were
                                                                meters based on condition triggers.



DeVeloPment
In accordance with Goulburn Valley Water’s                   During 2010/11, 875 new lots were created across
statutory obligations and policies, new                      the Corporation’s region. The table indicates the
developments in the region are provided with                 distribution of these lots across the major growth
reticulated water and sewerage services at the time          areas and compares 2010/11 results with those for
of development wherever it is possible to do so.             the previous five years. As shown, the dominant
                                                             growth area continues to be Shepparton which
                                                             accounts for 33% of all new lots.
Development of new lots
GrOWTh arEa                          2005/06       2006/07      2007/08        2008/09       2009/10         2010/11
Broadford                                  67          127             21             16             58              35
Kilmore                                   141           57           106            133              57              126
Kyabram                                    42           46             76             11             24               50
Mansfield                                  95           67             43             55             32               96
Mooroopna                                  78           67             46             13             85               21
Nagambie                                   32           35             38              2             45               20
Seymour                                    34           40             18             10             16               23
Shepparton                                214          436           517            349            220               291
Tatura                                     49           10              4              8             15               60
Yea                                        75            9             14              6              2               24
30   Goulburn valley water 2010| 2011 annual report




5 Corporate
  GovernanCe
      DIrectors oF the BoArD

      Chairman: mark lawlor                                    Denis Flett
      Mark Lawlor lives in Merrigum and is Managing            Denis Flett lives in Tatura and is a Director of DG
      Director of a successful contract fencing company.       Consulting, a small consultancy company offering
      Mark has been involved in the Victorian water            services in water policy and strategy, and water
      industry since 1991 and served on the boards of          resource planning and management. Denis is a
      Goulburn Valley Water from 1994 until 2000, and          Member of the Water Accounting Standards Board
      Goulburn-Murray Water from 2001 until 2004.              and President of the Tatura Football Netball Club.
      He holds a Graduate Diploma in Environmental             From 1 July 2011, Denis will be the inaugural
      Management from La Trobe University with a               Chairperson of the Victorian Environmental Water
      particular focus on issues relating to the Murray        Holder, a small corporate body responsible for
      Darling Basin, and a Company Directors Course            holding and managing environmental water
      Diploma from the Australian Institute of Company         entitlements and allocations, and co-ordinating
      Directors. Mark returned to the Board at Goulburn        the delivery of Victorian-held entitlements with
      Valley Water in 2007, was appointed Chairman in          those from other environmental water holdings
      2008 and is also currently serving as Chairman of        to maximise ecological outcomes. Denis has
      the Sustainability Task Group of VicWater.               a Bachelor of Civil Engineering from Monash
                                                               University and is a Fellow of the Institution of

      Deputy Chairman: catherine scott                         Engineers Australia and the Australian Institute of
                                                               Company Directors. He was the foundation Chief
      Catherine Scott lives at Bylands near Kilmore            Executive and Board Director of Goulburn-Murray
      and has a Bachelor of Science and a Bachelor of          Water for 11 years and represented Victoria on the
      Commerce. Catherine is an experienced company            Murray Darling Basin Commission for 10 years.
      director and Fellow of the Australian Institute
      of Company Directors with experience across a
                                                               michael hall
      diverse portfolio of industries. She held senior
      positions for 20 years in the investment banking         Michael Hall lives in Shepparton and has a Bachelor
      and finance industry where she established               of Arts majoring in Economics and Accountancy.
      businesses and led complex transactions. Catherine       Michael is a member of the Institute of Chartered
      has a unique combination of investment                   Accountants of Scotland and Australia, a Registered
      banking and corporate experience in transport,           Tax Agent, a Registered Company Auditor, an
      infrastructure and agriculture sectors. Catherine is a   Authorised Representative of OzPlan Financial
      member of the Finance and Resources Committee            Services and a Self Managed Super Funds (SMSF)
      of Edmund Rice Education Australia.                      Specialist Adviser. Michael is currently a Partner
                                                               at MB+M Business Solutions, specialising in audit,
                                                               superannuation and financial services. Michael is
                                                               a Director of Goulburn Valley Division of General
                                                               Practice Ltd and is Chair of the Audit Committee
                                                               of the Division. He is also the Chair of the Audit
                                                               Committee of Banksia Financial Group. Michael has
                                                               been active in a range of community roles including
                                                               Shepparton Golf Club, Fairley Leadership Program
                                                               and Goulburn Valley Grammar School.
                                                      Goulburn valley water 2010| 2011 annual report            31




DIrectors oF the BoArD Cont.

David mcKenzie                                           sue o’connor
David McKenzie lives in Shepparton and is a              Sue O’Connor is an experienced non-executive
Director of Opteon Goulburn North East and               director and senior business executive in the
the HMC Property Group, who are active in                information technology, utilities, medical research,
providing independent property advice through            sport and consulting sectors. Sue is an experienced
Victoria, New South Wales and Tasmania. He has a         Board Member and currently, in addition to her
Bachelor of Business in Property and is a qualified      involvement with the Goulburn Valley Water Board,
valuer. David is an Accredited Specialist Water          Sue is Chair of YMCA Victoria and a long term
Valuer by the Australian Property Institute, and         facilitator on the Australian Institute of Company
he has extensive experience in commercial and            Directors Diploma. Sue is also currently Industry
rural property matters, particularly in regard to        Director, Utilities with SMS Management and
compulsory acquisition and compensation. David           Technology, Australia’s largest publically listed
is a Director of Shepparton Retirement Villages,         Management and Technology Services Company.
the largest not for profit aged care provider in         Prior to being engaged by SMS, Sue was Managing
the Hume Region. David also has interests in             Director of her own consulting business and
several land development companies active in             before that she was a Group General Manager
regional areas. David has completed the Company          at Telstra Corporation. Sue holds a Bachelor of
Directors Course via the Australian Institute of         Applied Science, a Graduate Diploma of Business
Company Directors, and he has a strong interest          Management and has attended Harvard Business
in regional development and sustainable regional         School.
communities.


Bruce nicholls
Bruce Nicholls is a resident of Mitchell Shire, and
has a Bachelor of Commerce degree and a Diploma
of Business. He is a former Trade Commissioner,
Director of State Development in New South Wales,
Public Company Director, Chairman of the Royal
Automobile Club of Australia and Trustee of the
Committee for Economic Development of Australia.
A Foundation Fellow of the Australian Institute of
Company Directors, Bruce is currently Managing
Director of Capital Holdings & Development
(Chadcorp), an investment holding company. Bruce
grazes cattle at Glenaroua and is active in local
community groups, including Rotary, Landcare and
the Country Fire Authority (CFA).
32   Goulburn valley water 2010| 2011 annual report




5 Corporate
  GovernanCe
      execUtIVe mAnAGement teAm

      Peter quinn                                        Danny hogan
      managing Director                                  General manager – Corporate Services
      Peter joined Goulburn Valley Water in 1996 and     Danny joined Goulburn Valley Water in 2008. He
      was appointed to the role of Managing Director     has a Bachelor of Business (Local Government)
      in 2008. He has an Executive MBA, a Churchill      and extensive experience in the local government
      Fellowship and is a member of the Australian       industry, including eight years as Chief Executive
      Property Institute, the Australian Institute of    Officer of Murrindindi Shire Council. Danny also
      Company Directors and is a past President of the   has a background in the water industry. He was
      Institute of Water Administration.                 Secretary of the former Broadford Water Trust
                                                         and Sewerage Authority and managed the former
                                                         Alexandra/Thornton/Eildon/Marysville Water Trusts
                                                         and Sewerage Authorities.


                                                         Graeme jolly
                                                         General manager – Financial Services
                                                         Graeme joined Goulburn Valley Water in 1995.
                                                         He has a Diploma of Business – Accountancy
                                                         and is a member of the Institute of Chartered
                                                         Accountants in Australia, and the Australian
                                                         Institute of Company Directors. Graeme is Chair of
                                                         the VicWater Finance Issues Steering Committee
                                                         and is an active member of various VicWater
                                                         industry task groups including Price Determination
                                                         and Asset Valuations. Graeme completed a 10 year
                                                         term as a member of the Board of Management
                                                         and Chairman of the Audit Committee of Goulburn
                                                         Valley Health in June 2008.


                                                         Bruce hammond
                                                         General manager – technical Services
                                                         Bruce joined Goulburn Valley Water in 1997 and
                                                         was appointed as General Manager Technical
                                                         Services in 2009. A civil engineer with an
                                                         MBA (Technology Management), Bruce has 28
                                                         years experience working with a range of water
                                                         corporations throughout Victoria, with particular
                                                         expertise in urban water operations and strategic
                                                         management. Bruce is also a member of the
                                                         Australian Water Association, the peak water
                                                         industry association in Australia, holding a position
                                                         on the Victorian State Branch Committee, and is a
                                                         Fellow of the Institute of Water Administration.
                                                                Goulburn valley water 2010| 2011 annual report                      33




orGAnIsAtIonAl strUctUre

organisational structure
                                                              BOARD

 Chairman         Deputy Chair
                                       Denis Flett       Michael Hall       David McKenzie       Bruce Nicholls     Sue O’Connor
Mark Lawlor      Catherine Scott




                                                          Peter Quinn
                                                        Managing Director




                                                 EXECUTIVE MANAGEMENT TEAM

         Bruce Hammond                                     Graeme Jolly                                 Danny Hogan
General Manager - Technical Services                 General Manager - Finance               General Manager - Corporate Services

             Operations                                Financial Management                          Corporate Secretary
           Development                                  Accounting Services                          Communications/PR
           Major Projects                                 Accounts Payable                             Legal & Property
         Asset Management                                  Billing Services                           Human Resources
              Planning                                          Treasury                             Information Systems
            Sustainability
           Environmental
34   Goulburn valley water 2010| 2011 annual report




5 Corporate
  GovernanCe
      role oF the BoArD

      Introduction                                          Board meetings and committees
      The Directors of the Board of Goulburn Valley         Board meetings are scheduled for the first
      Water operate under the provisions of the             Wednesday of each month except January, March,
      Water Act 1989 and have responsibility for            July and September. Additional meetings are
      the corporate governance of the Corporation.          convened as circumstances arise and periodic
      The Board is responsible for setting strategic        infrastructure inspections and consultation
      direction, establishing goals and objectives for      meetings are undertaken throughout the year. The
      executive management and monitoring the               Managing Director and General Managers attend
      business on behalf of its customers and the           Board Meetings. The General Manager - Corporate
      Victorian Government. Key corporate governance        Services is the nominated Board Secretary and
      responsibilities include:                             provides advice to the Board on governance
                                                            matters.
      •	 The adoption and monitoring of Goulburn
         Valley Water’s Corporate Plan, Water Plan and      The Board has established three Committees
         Statement of Obligations;                          to assist in carrying out its functions and
                                                            responsibilities. The Chairman convenes the
      •	 Monitoring operational and financial
                                                            Remuneration and Performance Committee and
         performance on a regular basis;
                                                            is an ex-officio member of all other Committees.

      •	 Ensuring that risk management systems are in
                                                            The Managing Director attends meetings together

         place to cover environmental, operational and      with senior executives as required. Minutes of

         financial risks;                                   Committee meetings are presented to the full
                                                            Board.
      •	 Appointing, establishing objectives and
                                                            •	 The audit and Compliance Committee is
         reviewing the performance of the Managing
         Director;                                             delegated the task of overviewing all financial
                                                               matters including appointment of auditors,
      •	 Ensuring that Goulburn Valley Water has policies      review of audit programs, adequacy of internal
         and procedures to satisfy its legal and ethical       financial controls, operating and accounting
         responsibilities; and                                 policies and controls. The Victorian Auditor-
                                                               General is responsible for the audit of the
      •	 Reporting to and communicating with the
                                                               Corporation’s financial records. Richmond
         Victorian Government and other stakeholders on
                                                               Sinnott & Delahunty (Chartered Accountants)
         the financial and operational performance of the
                                                               were appointed by the Auditor-General as his
         Corporation.
                                                               Agent for the year ended 30 June 2011. Pitcher
                                                               Partners are engaged as the Corporation’s
      Board composition                                        internal auditors. In 2010/11 the Audit
                                                               Committee members are Michael Hall (Chair),
      The Board comprises of seven non executive
                                                               Sue O’Connor, David McKenzie and Mark Lawlor
      directors appointed by the Minister for Water
                                                               (ex-officio). The Committee Secretary is the
      and the Managing Director. As shown, for the
                                                               General Manager – Finance, Graeme Jolly.
      period 1 July 2010 to 30 June 2011, the non-
      executive Directors of the Board were Mark            •	 The remuneration Committee reviews the
      Lawlor (Chairman), Catherine Scott (Deputy               performance and remuneration of senior
      Chair), Denis Flett, Michael Hall, David McKenzie,       executives within the policy parameters
      Bruce Nicholls and Sue O’Connor.                         issued by the Government Sector Executive
                                                               Remuneration Panel (GSERP). The Committee,
                                                         Goulburn valley water 2010| 2011 annual report   35




role oF the BoArD Cont.
   on behalf of the Board, strives to attract, retain
   and motivate senior executives of the quality
   required to provide sound performance and
   leadership of the Corporation. The current
   Remuneration and Performance Committee
   members are Mark Lawlor (Chair), Catherine
   Scott, David McKenzie and Bruce Nicholls.

•	 The Operations, Environment and Safety
   Committee is responsible for ensuring
   the effective management of operational
   risks, reviewing operational/environmental
   performance and compliance with water quality
   guidelines and the Environmental Management
   System, and ensuring the fulfillment of
   obligations and responsibilities relating to
   Occupational Health and Safety. The 2010/11
   Operations, Environment and Safety Committee
   members are Denis Flett (Chair), Bruce Nicholls,
   Catherine Scott and Mark Lawlor (ex-officio). The
   Committee Secretary is the General Manager –
   Technical Services, Bruce Hammond.



Board meeting attendance 2010/11
                                                                                           OPEraTiOnS,
                                                                 audiT &                  EnVirOnMEnT
                               BOard SPECiaL BOard            COMPLianCE rEMunEraTiOn         & SaFETy
naME                       MEETinGS            MEETinGS       COMMiTTEE      COMMiTTEE      COMMiTTEE

Mark Lawlor                        8/9                  1/1          *4/4           1/1           *1/1

Catherine Scott                    8/9                  1/1          2/3            1/1            2/2

Denis Flett                        9/9                  1/1          1/1                           4/4

Michael Hall                       8/9                  1/1          4/5

David McKenzie                     9/9                  1/1          5/5            1/1

Bruce Nicholls                     9/9                  1/1          1/1            1/1            4/4

Sue O’Connor                       8/9                  1/1          3/3                           2/2

* ex-officio member
36   Goulburn valley water 2010| 2011 annual report




6 orGaniSational
  Capability
      emPloyee stAtIstIcs
      Approximately 189 people are employed directly by Goulburn Valley Water.


      employee figures
                                                       30 junE 2010                        30 junE 2011

                                          FEMaLE FTE      MaLE FTE    TOTaL   FEMaLE FTE      MaLE FTE    TOTaL

      Executive Management                         0              4      4            0               4      4

      Managers                                     0             14     14            0              13     13

      Administrative/Technical                  43.5           50.8    94.3         40.5           50.8    91.3

      Operations                                 3.4           66.8    70.3           4            71.8    75.8

      Customer Service Centre                      0              6      6            0               5      5

      Total                                                           188.6                               189.2




      eqUAl emPloyment oPPortUnIty AnD DIVersIty

      Goulburn Valley Water is committed to the
      employment and conduct principles outlined
      by the State Services Authority in the Public
      Administration Act 2004.

      Employers must ensure:

      •	 Decisions are based on merit;

      •	 Employees are treated fairly and reasonably;

      •	 Equal employment opportunity is provided; and

      •	 Reasonable avenues of redress against unfair or
         unreasonable treatment

      Employees must:

      •	 Act with impartiality;

      •	 Display integrity, including avoiding real or
         apparent conflict of interest;

      •	 Show accountability for actions; and

      •	 Provide responsive service
                                                     Goulburn valley water 2010| 2011 annual report            37




leArnInG AnD DeVeloPment
In 2010/11 Goulburn Valley Water continued to           Learning and Development highlights for 2010/11
embrace and foster a continual culture of Learning      included:
and Development. Through this culture, Goulburn
                                                        •	 Certificate II in Water Industry Operations
Valley Water continues to be an innovative,
                                                           awarded to three employees
responsive and strategic organisation with the
ability to meet all community and business              •	 Certificate III in Water Industry Operations
requirements, achieved through:                            awarded to three employees

•	 Developing a multi-skilled workforce with the
                                                        •	 Certificate IV in Business Administration awarded
  ability to respond to all organisational needs;          to four employees

•	 Ensuring Executive Management are supportive
                                                        •	 Two employees completed a Diploma
  of the continual development of all employees;
  and                                                   •	 Three employees completed a Graduate
                                                           Diploma
•	 Continually reviewing appropriate learning
  needs (through the Personal Appraisal and             •	 Two employees completed a Masters Degree
  Coaching Plan) and available learning programs
                                                        •	 Eleven employees were enrolled into Certificate
  to ensure an effective transfer of relevant
                                                           IV in Water Industry Operations
  knowledge.
                                                        •	 Providing study assistance to four employees
                                                           undertaking relevant Postgraduate studies




sAFety, heAlth AnD Well-BeInG

Goulburn Valley Water continued to embed a
focus on Safety, Health and Well-Being throughout
2010/11. The following Well-Being programs have
either continued or commenced:

•	 Focus on the catchphrase: “Safety Today – Here
  Tomorrow”;

•	 Employee Assistance Programs (provided by
  CRS Australia);

•	 On-site physiotherapy services;

•	 Discounted gym memberships for employees;

•	 Health and fitness programs;

•	 WorkSafe Week 2010 activities;

•	 WorkSafe WorkHealth Checks; and

•	 Biggest Loser (weight loss) Program
38   Goulburn valley water 2010| 2011 annual report




6 orGaniSational
  Capability
      sAFety, heAlth AnD Well-BeInG Cont.
      Goulburn Valley Water continued to demonstrate        •	 Maintained a Safety Management System
      its strong commitment to health and safety               accredited to AS4801; and
      across all business areas. As per the Corporate
                                                            •	 Maintained safety, health and well-being as a key
      Occupational Health and Safety (OH&S) Action
                                                               focus within the organisation
      Plan, the Safety, Health and Well-being team:

                                                            The Corporation’s health and safety committee
      •	 Undertook approximately 10 internal audits per
                                                            comprises health and safety representatives from all
         month which included a minimum of 2 audits per
                                                            work teams as well as management representatives.
         month on major contractors;
                                                            During the year committee meeting frequency
      •	 Undertook 90 health and safety inspections of      was increased from six week intervals to four
         major Goulburn Valley Water sites;                 week intervals. This allowed an increased focus on
                                                            current safety issues, review of recent incidents/
      •	 Redesigned the Minor Works and Services
                                                            near incidents and additional consultation on new
         Contractor Induction process;
                                                            policy and procedures. Senior and middle level

      •	 Rolled out a reviewed Near Incident, Incident
                                                            managers were invited to participate as guests at

         and Hazard reporting and investigation process;    every meeting.




      heAlth AnD sAFety trAInInG

      Introduction                                          Some of these opportunities resulted from the
                                                            Corporation’s OH&S Refresher Training Program.
      In 2010/11 employees continued to gain new skills
                                                            Implemented in October 2007, the program aims
      or update their existing skills within various OH&S
                                                            to run two refresher training sessions annually.
      fields including:
                                                            During 2010/11 employees undertook the following
      •	 Asbestos Removal                                   refreshers:

      •	 Chemical User                                      •	 First Aid Level II Update


      •	 Safe use of Chainsaw/Demolition Saw                •	 Cardiopulmonary Resuscitation (CPR)


      •	 Emergency Management and Fire Safety               •	 Breathing Apparatus (BA) Refresher (for
                                                               employees who have a Confined Space Entry
      •	 Confined Space Entry                                  qualification)

      •	 OH&S Representative - five day

      •	 OH&S Construction Induction Training

      •	 Traffic Control and Management

      •	 Safe Working at Heights/Roof Safety

      •	 Excavation and Trenching
                                                      Goulburn valley water 2010| 2011 annual report               39




heAlth AnD sAFety trAInInG Cont.

occupational health and safety policy                      This was achieved in 2010/11 through:

In accordance with the Goulburn Valley Water               •	 Consultation and cooperation between
OH&S Policy the Corporation is committed to                    management, employees and health and safety
continual improvement of OH&S management to                    representatives;
prevent work related injuries and illness and to
provide a safe and healthy work environment for            •	 Supporting health and safety at all organisational

employees, contractors, customers and visitors.                levels;

                                                           •	 Complying with the legislative requirements and
                                                               current industry standards;

                                                           •	 Maintaining an OH&S Management System
                                                               which embraces the principles of the standard
                                                               AS 4801; and

                                                           •	 Regularly reviewing and updating the corporate
                                                               OH&S objectives and targets




occUPAtIonAl heAlth AnD sAFety stAtIstIcs
During 2010/11, the Corporation recorded five Lost Time Incidents (LTI), equal to that for 2009/10. Four
employees returned to work within one week of their injury occurring, and one extended to ten days.


lost time incident frequency
number of incidents (per million hours worked)
40


35


30


25


20


15


10


 5


 0
     JUL      AUG       SEP        OCT     NOV     DEC      JAN          FEB   MAR       APR     MAY       JUN


                         2006/07         2007/08     2008/09         2009/10         2010/11
40   Goulburn valley water 2010| 2011 annual report




6 orGaniSational
  Capability
      occUPAtIonAl heAlth AnD sAFety stAtIstIcs Cont.

      lost time hours
      number of hours lost (per million hours worked)
      18,000


      16,000


      14,000


      12,000


      10,000


       8,000


       6,000


       4,000


       2,000


          0
               JUL   AUG       SEP      OCT      NOV      DEC        JAN     FEB     MAR       APR     MAY       JUN


                              2006/07         2007/08      2008/09         2009/10      2010/11


      note: 2010/11 figures were elevated from July through to February due to two staff being unfit for any duties.
      Both of these injuries had occurred prior to the commencement of the current financial year.
                                                         Goulburn valley water 2010| 2011 annual report           41




                                                                          CuStomerS 7
                                                                        & Community
cUstomer reFerence / ADVIsory commIttees

Community engagement is an integral part of                 Throughout the year Goulburn Valley Water also
Goulburn Valley Water business activities.                  continued to work with the Longwood community
                                                            on the Longwood Water Supply upgrade. The
To enhance the Corporation’s commitment
                                                            project’s Community Reference Committee, which
to better understand its customers and the
                                                            was established to provide feedback and drivers
community, Goulburn Valley Water established
                                                            to help determine the most appropriate source of
a Corporate Community Reference Committee
                                                            water for the Longwood Community, consists of 12
(CCRC) in August 2008. The members of this
                                                            people and will exist for the life of the project.
committee bring a diverse range of skills and
experience in business and community involvement.           Internally a working group was formed to improve
The CCRC met four times during 2010/11 and                  the overall level of stakeholder engagement across
provided important feedback to the Corporation              the business, with the draft action plan ready for
on a range of topics including in the development           senior management approval and subsequent roll
phase of the ‘what’s behind the tap’ advertising            out in 2011/12.
campaign and the Water Conservation Strategy.




cUstomer serVIce
Goulburn Valley Water has two main customer                 with a wide range of enquiries. These included
services teams; the Customer Accounts and                   change of address, billing and metering enquiries,
Services team and the Technical Customer Service            and payment assistance.
team. These teams are trained to assist customers
with a range of enquiries and make the customer             technical customer service
experience with the Corporation as simple and
positive as possible.                                       The Technical Customer Service team consists
                                                            of three groups: the 24 hour Customer Service
                                                            Centre Team, Property Services Team and Land
customer Accounts and services
                                                            Development Team.
The Customer Accounts and Services team is
responsible for issuing accurate accounts, managing         Customer Services
tenancies and account collection activities. In             Goulburn Valley Water operates a 24 hour, 7 day
2010/11 the team continued to deliver a high level          per week, Customer Service Centre, receiving all
of customer service and met performance targets in          customer calls related to service difficulties and
the Corporation’s Water Plan. This performance was          faults. Each call is logged into the Corporation’s
also reflected in high levels of customer satisfaction      customer service register and dispatched to the
as per the annual customer perception survey                relevant district office for attention. The actions
results.                                                    taken and outcome of the service request is also
                                                            recorded.
In 2010/11 the Customer Accounts and Services
team distributed 199,500 bills, compared to                 In 2010/11 the team received an average of 17 calls
196,000 in 2009/10. On average they received 125            per day, compared to 18 in 2009/10.
calls from customers daily (up from 115) and dealt
42   Goulburn valley water 2010| 2011 annual report




7 CuStomerS
  & Community
      cUstomer serVIce Cont.
      Property Services
      The Property Services Team is able to assist
      customers with asset locations, connections to
      water and sewer and other technical property
      servicing enquiries. This can include supplying
      properties located inside and outside both
      the water and sewer districts, structures over
      Corporation works and metering enquiries.

      During 2010/11 the Property Services team
      processed 939 new water connections and handled
      on average 32 customer calls per day, compared
      to 1,171 new connections and 35 calls a day in
      2009/10.

      Land development
      The Land Development Team works with
      consultants and property developers to provide
      water and sewer assets to service new subdivisions.
      The land developer engages a consultant to design
      and construct the assets to the Corporation’s
      standard. In addition to meeting the costs of
      servicing the subdivision, the developer is required
      to pay new customer contributions, which are a
      contribution towards the major water and sewerage
      assets that service the property. At the end of
      the maintenance period, the assets are formally
      transferred to the Corporation which then assumes
      ongoing operation and maintenance responsibility.

      In 2010/11 the Land Development team completed
      new water and sewer works for 49 projects
      involving the creation of 509 new allotments. A
      further 366 allotments were created by subdividing
      properties already serviced by existing Goulburn
      Valley Water infrastructure, compared to 2009/10
      when the team completed 58 projects, resulting in
      317 new allotments, with a further 345 created by
      utilising existing infrastructure.
                                                      Goulburn valley water 2010| 2011 annual report               43




mAnAGement oF socIAl AnD economIc ImPActs
Goulburn Valley Water has a hardship policy in           During 2010/11, 140 customers accessed
place to assist customers experiencing financial         Government assistance programs and 76 customers
hardship. The Corporation’s Customer Accounts            accessed Goulburn Valley Water’s internal
and Services Team is trained to encourage                assistance program. The officers also provide a
customers to discuss their personal circumstances        range of payment options to assist the customer
surrounding non-payment of accounts. The officers        in working out the best option for their situation.
can then determine if there are any Government           The hardship policy is reviewed and updated
or Internal assistance programs the customers may        on an annual basis and can be viewed on the
qualify for to assist them with their short or long      Corporation’s website.
term financial hardship.




commUnIty serVIce oBlIGAtIons
Goulburn Valley Water is required to provide a
range of concessions and rebates on behalf of the
Victorian Government. In 2010/11 the combined
total of these concessions and rebates was $3.4m.



community service obligations
TyPE                                                                          2009/10                 2010/11

Pension Concessions                                                         $2,850,190             $3,107,593

Water & Sewerage Rebate Scheme                                                $240,981               $266,404

Utility Relief Grant Scheme                                                    $27,536                $37,838

Life Support Machines                                                             $378                    $951

Hardship relief grants                                                         $21,302                         0

Total                                                                      $3,140,386             $3,412,786
44   Goulburn valley water 2010| 2011 annual report




7 CuStomerS
  & Community
      enerGy AnD WAter omBUDsmAn (VIctorIA)
      The Energy and Water Ombudsman (Victoria)
      (EWOV) is an independent body, funded by the
      member utilities, to assist customers who are
      dissatisfied with some aspect of the service or
      interaction with utilities around the state. The
      number of contacts to EWOV for 2010/11 for
      Goulburn Valley Water and all Regional Urban
      Water Corporations (RUWC) is set out in the table.


      number of eWoV contacts 2010/11
                                                                                                  aLL rELEVanT
      TyPE OF COnTaCT                                      GOuLBurn VaLLEy WaTEr
                                                                                               induSTry CaSES

      Enquiries                                                                       5                        293

      C1 - Unassisted Referral                                                      16                         798

      C2 - Assisted Referral                                                          8                        782

      C3 - Complaint Stage 1                                                          1                        144

      C4 - Complaint Stage 2                                                          1                        213

      Total                                                                         31                        2,230




      nAtIonAl WAter WeeK

      Each year Goulburn Valley Water is an active            school Activities
      member of the Goulburn Broken National Water
                                                              •	 2,000 entries were received for the school
      Week Committee. Other participating organisations
                                                                ‘Message on a Buckart’ activity, with students
      include Goulburn Broken Waterwatch, Goulburn
                                                                decorating buckets with a water theme. The
      Broken Catchment Management Authority,
                                                                themes for the competition included ‘Water
      Goulburn-Murray Water, Northern Victorian
                                                                and the Environment’ for Prep/1/2, ‘Water
      Irrigation Renewal Project, Goulburn Murray
                                                                Conservation’ for Grade 3/4 and ‘Water
      Landcare Network, Greater Shepparton City
                                                                Footprint’ for Grade 5/6.
      Council and Moira Shire Council.
                                                              •	 150 macroinvertebrate models were received for
      Participation by community members and school
                                                                the Create-a-Critter project from 5 participating
      students in Water Week activities in 2010/11
                                                                schools.
      totalled more than 6,000.
                                                              •	 Over 500 students and 28 classes decorated
                                                                large drops of fabric with the theme ‘Water on
                                                                our Farms, in our Towns and in the Bush’ as part
                                                                of the ‘Go with the Flow’ Mural Project.
                                                       Goulburn valley water 2010| 2011 annual report            45




nAtIonAl WAter WeeK Cont.
•	 1,900 students attended ‘The Great Big Story           community competitions
   Book’ school performance which focused on the
                                                          •	 330 entries were received for the community
   water cycle and affects of drought.
                                                             writing and photography competitions.

community Activities                                      •	 400 attended the National Water Week
                                                             Awards Night. The winners of all Water Week
•	 290 participants got involved in River to
                                                             Competitions were announced on the night,
   Tap Tours in Seymour and Alexandra, water
                                                             and guests were treated to a display of artwork
   treatment plant tours in Shepparton, bike rides
                                                             and culture that included the decorated buckets
   at Kanyapella Basin near Tongala, Water Industry
                                                             and murals. A series of hands-on water activities
   Bus Tours and waterwise garden presentations.
                                                             were provided for young people who attended
•	 300 participants interacted with Terry Tap and            the event. The awards presented on the night
   visited a hands-on macroinvertebrate activity for         included:
   kids at the Shepparton Twilight Stroll;
                                                          •	 Waterwise Garden Award – sponsored by
•	 60 people visited Kyabram Fauna Park for a                Goulburn Valley Water;
   Wetland Walk;
                                                          •	 Water Use Efficiency: Irrigation Award –
•	 50 participated in the Water Week launch held in          sponsored by Goulburn-Murray Water;
   Cobram; and
                                                          •	 Commitment to Natural Resource Management
•	 60 participants enjoyed boat cruises of the               on a Goulburn Broken Waterway Award –
   Goulburn River Wetlands at Tahbilk Winery near            sponsored by Goulburn Broken Catchment
   Nagambie.                                                 Management Authority; and

                                                          •	 Building Industry Awards: Stormwater
                                                             Management – sponsored by Greater
                                                             Shepparton City Council and Moira Shire Council
46   Goulburn valley water 2010| 2011 annual report




8 buSineSS perFormanCe
  & ComplianCe
      5 yeAr PerFormAnce

      sUmmAry oF FInAncIAl resUlts
                                        2006/07       2007/08    2008/09    2009/10    2010/11
      FinanCiaL rESuLT                   ($,000)       ($,000)    ($,000)    ($,000)    ($,000)

      Core Business Revenue              44,564        45,415     49,642     53,467     54,219

      Government Contributions                 -        1,400           -          -       563

      Other Revenue                       2,075         2,250      5,230      2,630      2,460

      Total revenue                      46,639        49,065     54,872     56,097     57,242

      Operating Expenditure              27,922        31,133     32,899     32,556     34,411

      Depreciation Expenditure           13,108        13,403     13,683     13,824     14,668

      Finance Costs                       1,841         2,749      3,991      5,031      5,977

      Environmental Contribution          1,500         1,500      1,915      1,915      1,915

      Total Expenditure                  44,371        48,785     52,488     53,326     56,971

      net result Before Tax               2,268           280      2,384      2,771        271

      Current Assets                     11,846        16,845     16,892     19,187     19,855

      Non-Current Assets                485,288       503,865    524,708    547,159    791,407

      Total assets                      497,134       520,710    541,600    566,346    811,262

      Current Liabilities                15,699        14,101     16,850     15,901     14,294

      Non-Current Liabilities            54,357        79,348     95,411    118,788    202,372

      Total Liabilities                  70,056        93,449    112,261    134,689    216,666

      Net Cash Flows from Operations     13,640        11,619     10,383     13,218     12,003

      Payments for Property, Plant &
                                         19,761        25,415     28,840     30,312     20,073
      Equipment (incl Infrastructure)




      sUmmAry oF FInAncIAl PerFormAnce
      PErFOrManCE indiCaTOr             2006/07       2007/08    2008/09    2009/10    2010/11

      Internal Financing Ratio            69.0%         45.7%      36.0%      43.6%      59.8%

      Gearing Ratio                        6.3%          9.5%      11.7%      14.3%      11.1%

      Interest Cover (EBIT)                  3.0           1.1        1.7        1.6        1.0

      Interest Cover (Cash)                13.3            6.9        4.3        4.0        3.2

      Return on Assets                     0.7%          0.5%       1.1%       1.3%       0.8%

      Return on Equity                     0.4%          0.0%       0.4%       0.5%       0.0%
                                                        Goulburn valley water 2010| 2011 annual report           47




comPlIAnce

significant changes                                        Freedom of Information Act 1982
There were no significant changes in financial             Goulburn Valley Water is considered to be a
position, or major changes or factors affecting            “Government Agency” under the terms of the
performance, in 2010/11. Financial position was            Freedom of Information Act 1982 (FOI). Accordingly,
impacted by the valuation of property, plant and           it is required to comply with procedures that have
equipment as at 30 June 2011. Water sales revenue          been prescribed under which members of the public
was impacted by unseasonal wet conditions and              may gain access to information held by agencies.
minor flooding throughout the year.                        A decision to release information is made by an
                                                           Authorised Officer.

capital Works                                              The following officers have been appointed in
Goulburn Valley Water continued its significant            accordance with the provisions of the FOI:
capital works program in 2010/11, with expenditure
                                                           •	 Principal Officer: Managing Director
of approximately $20.10 million on 104 projects.
This expenditure included capital works in response        •	 Authorised Officer: General Manager - Corporate
to upgrading water supply facilities at a number              Services
of townships and the ongoing renewal of the
                                                           An application fee of $23.90 applied during the
reticulation networks.
                                                           2010/11 reporting period.

consultancies                                              In this reporting period there were three written
                                                           requests for information under the FOI. These
A number of consultants were engaged to carry out
                                                           requests were accompanied by the relevant
specific tasks during the year. There were 7 separate
                                                           application fees and the information released.
engagements costing a total of $257,838 (exclusive
                                                           There were no hearings or appeals in relation to
of GST). During 2010/11 no consultancies costing
                                                           FOI matters for 2010/11.
over $100,000 were entered into.

                                                           Government contributions
Disclosure of major contracts
                                                           Government Contributions from the Department of
During 2010/11 the Corporation did not enter
                                                           Human Services totalling $563,199 were received
into any contracts valued over $10 million. Thirty
                                                           in 2010/11. This contribution is in support of the
contracts were entered into with a value of less than
                                                           ongoing fluoridation projects in Cobram, Kyabram
$10 million.
                                                           and Seymour.


                                                           Building Act 1993
                                                           During the reporting period the Corporation met
                                                           relevant compliance provisions of the Building Act
                                                           1993 in building and maintenance activities.
48   Goulburn valley water 2010| 2011 annual report




8 buSineSS perFormanCe
  & ComplianCe
      comPlIAnce

      Information Prepared and Available                     As a regional essential service provider, the
                                                             Corporation is represented on a number of
      The information listed in Appendix 1 of Financial
                                                             emergency planning, response and recovery
      Reporting Direction 15B of the Financial
                                                             committees. Representatives also participate in
      Management Act 1994 is held at the Goulburn
                                                             local municipal emergency planning committee
      Valley Water office in Shepparton and is available
                                                             meetings which are held regularly within each of
      on request to the relevant Minister, Members of
                                                             the seven local government areas serviced by the
      Parliament or the public, subject to the FOI and the
                                                             Corporation.
      Information Privacy Act 2000.
                                                             In May 2010 the Corporation conducted its annual
      national competition Policy                            security exercise with representatives from the
                                                             Department of Sustainability and Environment
      Neutrality is a guiding principle of the National
                                                             (DSE) and Victoria Police in attendance. The
      Competition Policy. It requires that Government
                                                             exercise is an obligation under the Terrorism
      owned businesses should compete with private
                                                             (Community Protection) Act 2003 and examines the
      sector businesses on the same footing. Goulburn
                                                             Corporation’s preparedness for a security incident
      Valley Water has operated in a manner that meets
                                                             and testing of its emergency response plans and
      the National Competition Policy compliance
                                                             processes.
      requirements.
                                                             Goulburn Valley Water continued to develop its
      risk and emergency management                          planning for emergencies through ongoing training
                                                             of employees in the Australasian Inter-service
      Goulburn Valley Water has a robust risk                Incident Management System. In February a
      management system developed and improved               number of employees completed training to act as
      over many years of application. During 2010, the       Emergency Management Liaison Officers, which
      Corporation completed a detailed review of its         undertake a liaison role with incident controllers
      corporate risks along with the identification of new   during a large scale regional emergency. At an
      and emerging risks. A cost based and loss of life,     operational level, a number of emergency scenarios
      quantitative “Monte Carlo” analysis methodology        (desktop and field exercises) were completed.
      has been adopted which allows comparison
      between risks and informs investment decisions on
      mitigation strategies.

      As part of this review risk capacity and tolerance
      thresholds were revised using both public safety
      and financial consequence perspectives. A key
      output of the project was an updated Risk Action
      Plan, targeting mitigation strategies for the
      portfolio of corporate risks.

      The Corporation has commenced a project called
      “Enterprise Wide Risk Management,” which will see
      business units identify, assess and record key risks
      along with identifying improvements to manage
      risks more effectively.
                                                       Goulburn valley water 2010| 2011 annual report         49




                                         buSineSS perFormanCe 8
                                                  & ComplianCe
comPlIAnce Cont.

risk management compliance Attestation                    Whistleblowers Protection Act 2001
                                                          Goulburn Valley Water has developed procedures
I, Mark Lawlor, certify that Goulburn Valley Water
                                                          in accordance with Section 68(3) of the
has risk management processes in place consistent
                                                          Whistleblowers Protection Act 2001 which comply
with the Australian/New Zealand Risk Management
                                                          with the Ombudsman’s Guidelines. The main
Standard and an internal control system is in place
                                                          objective of the Whistleblowers Protection Act
that enables the executive to understand, manage
                                                          2001 is to encourage and facilitate the making of
and satisfactorily control risk exposures.
                                                          disclosures of improper conduct or detrimental

The audit committee verifies this assurance and that      action by public officers and public bodies.

the risk profile of Goulburn Valley Water has been
                                                          Disclosures of improper conduct or detrimental
critically reviewed within the last 12 months.
                                                          action by Goulburn Valley Water or its employees
                                                          may be made to the following:

                                                          The Protected disclosure Coordinator
                                                          name: Danny Hogan

M. G. Lawlor                                              Title: General Manager – Corporate Services

Chairman                                                  address: PO Box 185, Shepparton, 3632

24 August 2011                                            Phone: (03) 5832 0442

                                                          Alternatively, disclosures of improper conduct or
Victorian Industry Participation Policy (VIPP)            detrimental action by Goulburn Valley Water or
                                                          its employees may also be made directly to the
Goulburn Valley Water has implemented
                                                          Ombudsman:
procedures in accordance with Section 9 of the
Victorian Industry Participation Policy (VIPP) Act        The Ombudsman Victoria
2003. The VIPP forms part of Goulburn Valley              Level 9, 459 Collins Street (North Tower)
Water’s consultancy handbook which is issued              Melbourne VIC 3000
to all consultants undertaking projects for the           Telephone: (03) 9613 6222
Corporation. The handbook requires consultants            Toll free: 1800 806 314
to ensure the VIPP forms part of all tender               website: www.ombudsman.vic.gov.au
documentation. There were no contracts that were          Email: ombudvic@ombudsman.vic.gov.au
entered into by Goulburn Valley Water where VIPP
applied.                                                  During 2010/11 no disclosures were made under
                                                          the Whistleblowers Protection Act 2001.
50   Goulburn valley water 2010| 2011 annual report




9 Statement oF perFormanCe

      FInAncIAl PerFormAnce

      Financial Performance Indicators
                                                                 2009/10        2010/11        2010/11     VarianCE
      PErFOrManCE indiCaTOr                                       rESuLT         rESuLT        TarGET                 (%)

      Internal Financing Ratio                                    43.60%         59.80%         62.80%          -4.80%

      Gearing Ratio                                               14.30%         11.10%         12.90%        -14.30%

      Interest Cover (EBIT)                                     1.6 times      1.0 times      1.6 times       -34.60%

      Interest Cover (Cash)                                     4.0 times      3.2 times      3.6 times         -9.10%


      notes to Financial Performance table
      1.   The Internal Financing Ratio and the Interest Cover (Cash) Ratio are unfavourable to budget because
           operating cash before net interest and tax is below budget for the year. The Interest Cover (EBIT) Ratio
           is unfavourable to budget because earnings before interest and tax are below budget for the year. Sales
           revenue is below budget due to excessive rainfall across the year that has adversely impacted on these
           indicators.

      2.   The Gearing Ratio is favourable to budget as total revalued Assets are greater than budget.
                                                       Goulburn valley water 2010| 2011 annual report                  51




serVIce PerFormAnce

service Performance Indicators
                                                           2009/10        2010/11        2010/11      VarianCE
indiCaTOr                                                   rESuLT         rESuLT        TarGET                  (%)

Number of customers receiving five or more
                                                                   0              0             85         100%
unplanned interruptions in the year

Average duration of unplanned water supply
                                                                 93             96            100                4%
interruptions (in minutes)

Average duration of planned water supply
                                                                 73            103            113                9%
interruptions (in minutes)

Unplanned water supply interruptions restored
                                                              98.8%          99.5%            98%                2%
within five hours

Planned water supply interruptions restored within
                                                                 n/a           99%            99%                0%
five hours

Sewer spills from reticulation and branch sewers
                                                                 40             34               *               n/a
(priority 1 and 2)

Sewage spilt from emergency relief structures and
                                                          <0.0001%       <0.0025%                *               n/a
pumping stations (% of volume transported)

Sewerage spills contained within five hours                    98%           100%           100%                 0%

Water quality complaints per 1,000 customers                     4.7            6.6            5.7           19%

Water supply reliability complaints per 1,000
                                                                 5.9            0.6              *               n/a
customers

Sewerage service quality and reliability complaints
                                                                   0           0.06              *               n/a
per 1,000 customers

Affordability complaints per 1,000 customers                   0.21            0.41              *               n/a

Billing complaints per 1,000 customers                         0.42            0.61              *               n/a

Sewage odour complaints per 1,000 customers                    1.09            0.59            1.2           50%

Other complaints per 1,000 customers                               2            0.6              *               n/a


notes to Service Performance table
1.   The Corporation’s ongoing water main replacement program has been effective in eliminating water mains
     that may have resulted in more than five unplanned interruptions in a year. Consequently there were no
     customers that experienced five unplanned interruptions during 2010/11.

2.   The average duration of unplanned water supply interruptions was similar to last year mainly due to
     improved work practises introduced in 2009. The duration of unplanned interruptions in 2010/11 was well
     below the target set.

3.   An increase in the duration of planned interruptions was mainly attributable to increased levels of water
     main swabbing undertaken. The duration of planned interruptions was well below the target set.
52   Goulburn valley water 2010| 2011 annual report




9 Statement oF perFormanCe

      serVIce PerFormAnce Cont.
      4.   A rigorous sewer preventative maintenance program targeted at sewers with an elevated risk of overflow
           has been effective in reducing the frequency of sewer spills in 2010/11 compared to previous years.

      5.   Intensive storm rainfall resulted in pump station capacity being exceeded for short periods of time in some
           catchments at Wandong, Kilmore and Shepparton. Resultant overflows totalled approximately 330kL, or
           0.0023% of the total annual wastewater volume.

      6.   Goulburn Valley Water contained 100% of sewer spills within five hours during 2010/11 and complied with
           the target. With the exception of 2009/10, this target has been consistently met.

      7.   The increase in water quality complaints compared to 2009/10 and previous years is attributable to poor
           raw water quality during and after the flooding events throughout the region during 2010/11. A number
           of waterways were subject to “black water” events, resulting in elevated manganese and iron levels
           that existing treatment processes were unable to effectively remove. Consequently some customers
           noted elevated colour in water supplied until additional treatment processes were commissioned at the
           respective plants.

      8.   Water supply reliability complaints reduced to typical levels in 2010/11 following a single incident in
           2009/10 that resulted in a high number of complaints

      9.   The increases in billing and affordability complaints are from a very low base and remain at relatively low
           levels. The increase in 2010/11 is likely to be attributable to the service price increases introduced under
           the current Water Plan.

      10. The Corporation has developed and is implementing a sewer odour management strategy. This has
           contributed to odour complaints reducing to 50% of the target in 2010/11. The Corporation continues to
           actively seek improved sewer odour performance.

      *No targets set for the 2010/11 Corporate Plan
                                                               Goulburn valley water 2010| 2011 annual report                        53




enVIronmentAl PerFormAnce

environmental Performance Indicators
                                    rECyCLEd     rECyCLEd
                                       WaTEr         WaTEr   rECyCLEd    rECyCLEd    rECyCLEd   ESTiMaTEd               BiOSOLidS
                      WaSTEWaTEr diSCharGEd       uSEd FOr WaTEr rEuSE WaTEr rEuSE WaTEr rEuSE  BiOSOLidS   BiOSOLidS      rEuSEd
WaSTEWaTEr               rECEiVEd   TO WaTEr    irriGaTiOn      rESuLT     TarGET    VarianCE PrOduCTiOn       rEuSEd       rESuLT
ManaGEMEnT FaCiLiTy           (ML)       (ML)          (ML)         (%)         (%)         (%)  (TOnnES)    (TOnnES)          (%)

Alexandra                   359         219         136           38          22          74        140            0            0
Avenel                        45          28          14          33        100           67          11           0            0
Bonnie Doon                   34           0          21        100         100            0           1           0            0
Broadford                   323         160           96          38        100           62        172            0            0
Cobram                      567            0        137         100         100            0        176            0            0
Eildon                      191         190            0           0           0           0          10           0            0
Euroa                       355         303           70          19        100           81          28           0            0
Girgarre                      18           0           7        100         100            0           5           0            0
Kilmore                     563         465           93          17        100           83        126            0            0
Kyabram/
                            646            0        329         100         100            0        161            0            0
Merrigum
Mansfield                   385         207         132           39        100           61        116            0            0
Marysville                    33           0          85        100         100            0           4           0            0
Mooroopna                   826            0        497         100         100            0        513            0            0
Murchison                     87           0           0           0           0           0          16           0            0
Nagambie                    184           95          70          42        100           58        105            0            0
Nathalia                    148           46          59          56        100           44          35        300         857
Numurkah                    444           83          79          49        100           51        243            0            0
Seymour                     798         337         246           42        100           58        171            0            0
Shepparton                6,047       3,313       1,375           29          60          51      1,679            0            0
Stanhope/
                            132           82           0           0           0           0          33           0            0
Rushworth
Strathmerton                  51           0           0           0           0           0          13           0            0
Tatura                    1,535         428         383           47        100           53        288            0            0
Tongala                     430            0        113         100         100            0        638            0            0
Upper Delatite                61          32          19          38        100           62           7           0            0
Violet Town                   46           0          22        100         100            0          14           0            0
Wandong                     124            0           0           0           0           0           0           0            0
Yea                         133         142           38          21        100           79          25           0            0
Summary Totals          14,562        6,130       4,021           40          73          45      4,731         300             6
54   Goulburn valley water 2010| 2011 annual report




9 Statement oF perFormanCe

      enVIronmentAl PerFormAnce Cont.

      environmental Performance Indicators
                                             WaSTEWaTEr    WaSTEWaTEr        WaSTEWaTEr
                                              TrEaTMEnT      TrEaTMEnT        TrEaTMEnT
                                              STandardS      STandardS        STandardS
      WaSTEWaTEr ManaGEMEnT             2009/10 rESuLT    2010/11 rESuLT   2010/11 TarGET
      FaCiLiTy                                      (%)              (%)              (%)

      Alexandra                                     100             100               100

      Avenel                                        100             100               100

      Bonnie Doon                                   100             100               100

      Broadford                                     100             100               100

      Cobram                                        100             100               100

      Eildon                                        100             100               100

      Euroa                                         100             100               100

      Girgarre                                      100             100               100

      Kilmore                                       100             100               100

      Kyabram/Merrigum                              100             100               100

      Mansfield                                     100             100               100

      Marysville                                    100             100               100

      Mooroopna                                     100             100               100

      Murchison                                     100             100               100

      Nagambie                                      100             100               100

      Nathalia                                      100             100               100

      Numurkah                                      100             100               100

      Seymour                                       100             100               100

      Shepparton                                    100             100               100

      Stanhope/Rushworth                            100             100               100

      Strathmerton                                  100             100               100

      Tatura                                        100             100               100

      Tongala                                       100             100               100

      Upper Delatite                                100             100               100

      Violet Town                                   100             100               100

      Wandong                                       100             100               100

      Yea                                           100             100               100
                                                           Goulburn valley water 2010| 2011 annual report               55




enVIronmentAl PerFormAnce Cont.
notes to Service Performance table
1.   Wastewater from Wandong also includes Heathcote Junction and is sent to Yarra Valley Water’s Wallan
     Wastewater Treatment Plant. This volume totalled 124ML in 2010/11.

2.   Recycled water use was below usual levels due to above average spring and summer rainfall, which
     reduced irrigation water demand during the peak irrigation period.

3.   Approximately 300 dry tonnes of biosolids from the Nathalia Wastewater Management Facility were
     used to assist in the establishment of grass on the storage lagoon batters at the Nathalia Wastewater
     Management Facility.

4.   Due to the nature of Goulburn Valley Water’s lagoon based treatment systems, sludge accumulates in
     lagoons until removed by dredging. This occurs on average every 15 to 20 years. After dredging the
     sludge is dried to approximately 80% dry solids and then stockpiled as biosolids prior to being used as
     a soil conditioner. Reuse is principally on agricultural land or rehabilitation of landfill sites. The biosolids
     production figures quoted are estimates of the production in any year based on survey results. These
     surveys are undertaken every three years.

5.   All wastewater management facilities complied with the EPA Corporate Licence environmental
     performance conditions for treated wastewater discharge to land, and the limits for discharge to water.

6.   Following high seasonal rainfall and the associated decline in irrigation needs, thirteen Wastewater
     Management Facilities reached their storage capacity. The reclaimed water was released and complied
     with Environment Protection Authority (EPA) standards. Our EPA Corporate Licence allows for discharge
     to waterways under stringent conditions in very wet years. The combined volume released to waterways
     totalled 2,408ML excluding discharges from our tertiary treatment plants.
56   Goulburn valley water 2010| 2011 annual report




9 Statement oF perFormanCe

      stAtement oF PerFormAnce
      In our opinion, the accompanying Statement of Performance of Goulburn Valley Region Water Corporation in
      respect of the year ended 30 June 2011 is presented fairly in accordance with the Financial Management Act
      1994.

      The Statement outlined the relevant performance indicators as determined by the responsible Minister, the
      actual results achieved for the year against pre-determined performance targets, and an explanation of any
      significant variance between the actual results and performance targets.

      As at the date of signing, we are not aware of any circumstance which would render any particulars in the
      Statement to be misleading or inaccurate.




      M. G. Lawlor                          P. A. Quinn
      Chairman                              Managing director

      24 August 2011
                                          Goulburn valley water 2010| 2011 annual report   59




                                        FinanCial StatementS 10

yeAr enDeD 30 jUne, 2011


table of contents
Operating Statement                                                                  60

Statement of Comprehensive Income                                                    60

Balance Sheet                                                                        61

Statement of Changes in Equity                                                       62

Cash Flow Statement                                                                  63

Notes to the Financial Statements                                                64 - 96

Certification of Financial Statements                                                97

Independent Audit Report                                                             98
 60     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      operating statement
      FOr ThE yEar EndEd 30 junE, 2011
                                                                                                    2011             2010
                                                                                 nOTE              $’000            $’000


      revenue from Operating activities
      Fees and Charges                                                                3            47,895          48,438
      Developer and Landowner Contributions                                           4             6,324           5,029
      Government Contributions                                                        5              563                -
      Interest Revenue                                                                6              473             501
      Other Revenue                                                                   7             1,987           2,129
      Total revenue                                                                               57,242           56,097


      Expenses from Operating activities
      Operating Expenses                                                              8            37,832          36,307
      Administration Expenses                                                         9            11,247          10,073
      Environmental Contribution                                                    1(c)            1,915           1,915
      Borrowing Costs                                                                10             5,977           5,031
      Total Expenses                                                                              56,971           53,326


      Profit before income Tax                                                                       271            2,771
      Income Tax Expense                                                             11                75            453
      Profit for the year                                                                            196            2,318




      statement of comprehensive Income
      FOr ThE yEar EndEd 30 junE, 2011


      Profit for the year                                                                            196            2,318


      Other Comprehensive income
      Net gain (loss) on revaluation of Property, Plant and Equipment           1(k), 16         232,490                -
      Income Tax relating to components of Other Comprehensive
                                                                               1(d), 11          (69,747)               -
      Income
      Other Comprehensive income for the period, net of income Tax                               162,743                -
      Total Comprehensive income for the period                                                  162,939            2,318

      The above Operating Statement and Statement of Comprehensive Income should be read in conjunction with the
      accompanying notes.
                                                          Goulburn valley water 2010| 2011 annual report     61




Balance sheet
aS aT 30 junE, 2011
                                                                                        2011          2010
                                                                            nOTE       $’000         $’000


aSSETS
Current assets
Cash and Cash Equivalents                                                       12     4,340         2,835
Receivables                                                                     13    13,040        14,015
Prepayments                                                                             452           500
Inventories                                                                     14      952           838
Biological Assets                                                               15     1,071          999
Total Current assets                                                                  19,855        19,187


non-Current assets
Receivables                                                                     13     4,309         5,461
Property, Plant and Equipment                                                   16   756,336       515,669
Deferred Tax Assets                                                             17    30,762        26,029
Total non-Current assets                                                             791,407       547,159
Total assets                                                                         811,262       566,346


LiaBiLiTiES
Current Liabilities
Payables                                                                        18     7,490         9,295
Interest Bearing Liabilities                                                    19     3,000         3,100
Employee Benefits                                                               20     3,804         3,506
Total Current Liabilities                                                             14,294        15,901


non-Current Liabilities
Interest Bearing Liabilities                                                    19    87,000        78,000
Employee Benefits                                                               20      357           328
Deferred Tax Liabilities                                                        21   115,015        40,460
Total non-Current Liabilities                                                        202,372       118,788
Total Liabilities                                                                    216,666       134,689
net assets                                                                           594,596       431,657


EQuiTy
Contributed Capital                                                             22   234,704       234,704
Reserves                                                                        23   186,010        23,267
Retained Profits                                                                24   173,882       173,686
Total Equity                                                                         594,596       431,657

The above Balance Sheet should be read in conjunction with the accompanying notes.
 62     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      statement of changes in equity
      FOr ThE yEar EndEd 30 junE, 2011
                                                                 COnTriBuTiOnS                    aCCuMuLaTEd
                                                                    By OWnErS        rESErVES           FundS         TOTaL
                                                          nOTE            $’000           $’000             $’000     $’000



      Balance at 1 july 2009                                           234,704          23,267         171,368      429,339
      Total Comprehensive Income for the year as
                                                                              -               -             2,318     2,318
      reported in the 2010 financial report
      Balance at 30 june 2010                                          234,704          23,267        173,686       431,657


      Total Comprehensive Income for the year                                 -        162,743               196    162,939
      Balance at 30 june 2011                                          234,704        186,010         173,882       594,596

      The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
                                                                Goulburn valley water 2010| 2011 annual report       63




cash Flow statement
FOr ThE yEar EndEd 30 junE, 2011
                                                                                                2011        2010
                                                                                  nOTE         $’000       $’000


Cash Flows from Operating activities
Receipts from Customers (inclusive of goods and services tax)                                 57,395      56,357
Grants from Government Departments                                                               563             -
Payments to Suppliers and Employees (inclusive of goods and services tax)                    (40,584)    (38,738)
Interest and Bill Discounts Received                                                             521         467
Interest and Other Costs of Finance Paid                                                      (5,892)     (4,868)
net Cash inflow from Operating activities                                            25       12,003      13,218


Cash Flows from investing activities
Proceeds from Sale of Property, Plant and Equipment                                              675         733
Payments for Property, Plant and Equipment                                                   (20,073)    (30,312)
net Cash (Outflow) from investing activities                                                 (19,398)    (29,579)


Cash Flows from Financing activities
Proceeds from Borrowings                                                                      12,000      23,000
Repayment of Borrowings                                                                       (3,100)     (5,050)
Proceeds from Government Contributions                                                              -            -
net Cash inflow from Financing activities                                                      8,900      17,950


Net Increase in Cash held                                                                      1,505       1,589
Cash at the beginning of the Financial Year                                                    2,835       1,246
Cash at the end of the Financial year                                                12        4,340       2,835


Financing arrangements                                                               19

The above Cash Flow Statement should be read in conjunction with the accompanying notes.
 64        Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      1.     summary of significant Accounting Policies
      1.a.   Basis of accounting

      General
      The financial report includes separate financial statements for Goulburn Valley Region Water Corporation as an
      individual reporting entity. This financial report is a general purpose financial report that consists of an Operating
      Statement, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow
      Statement and Notes accompanying these statements. The general purpose financial report has been prepared in
      accordance with Australian Accounting Standards (AAS’s), Interpretations and other authoritative pronouncements
      of the Australian Accounting Standards Board, and the requirements of the Financial Management Act 1994 and
      applicable Ministerial Directions. Where applicable, those paragraphs of the AAS’s applicable to not-for-profit entities
      have been applied. This financial report has been prepared on accrual and going concern bases.

      The Annual Financial Statements were authorised for issue by the General Manager - Financial Services on 24 August,
      2011.

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

      Functional and presentation currency
      Items included in this financial report are measured using the currency of the primary economic environment in which
      the Corporation operates (‘the functional currency’). The financial statements are presented in Australian dollars,
      which is the Corporation’s functional and presentation currency.

      Classification between current and non-current
      In the determination of whether an asset or liability is current or non-current, consideration is given to the time when
      each asset or liability is expected to be realised or paid. The asset or liability is classified as current if it is expected
      to be turned over within the next twelve months, being the Corporation’s operational cycle – see 1(r) for a variation in
      relation to Employee Benefits.

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

      historical cost convention
      These financial statements have been prepared under the historical cost convention, as modified by the revaluation of
      financial assets and certain classes of property, plant and equipment.

      Critical accounting estimates
      The preparation of financial statements in conformity with AAS’s requires the use of certain critical accounting
      estimates that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
      expenses. Actual results may differ from these estimates. It also requires management to exercise its judgement in the
      process of applying the entity’s accounting policies.

      Estimates and judgements are continually evaluated and are based on historical experience and other factors,
      including expectations of future events that may have a financial impact on the entity and that are believed to be
      reasonable under the circumstances. It is expected that the estimates and assumptions adopted are not likely to cause
      a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
                                                      Goulburn valley water 2010| 2011 annual report                      65




notes to the FInAncIAl stAtements

Financial statement presentation
The entity has applied the revised AASB 101 Presentation of Financial Statements which became effective for
reporting periods on or after 1 January 2009. The revised standard requires the separate presentation of a Statement
of Comprehensive Income and a Statement of Changes in Equity. All non-owner changes in Equity must now be
presented in the Statement of Comprehensive Income. As a consequence, the entity had to change the presentation
of its financial statements. Comparative information has been re-presented so that it is also in conformity with the
revised standard.

1.b.   revenue recognition

Revenue is brought to account when services have been provided or when tariffs and fees have been levied.

Water and sewerage charges by measure are recognised as income when the service has been used. Meter reading is
cyclical and, therefore, estimation is made at the end of each accounting period for water services used by customers
and recorded on meters which have not yet been read.

Gains or losses on disposal of non-current assets are calculated as the difference between the gross proceeds on sale
and their written down value.

Contributions for capital works from all sources are normally treated as revenue and are disclosed in the Notes to the
Financial Statements as Landowner Contributions and Headworks Fees.

Landowner Contributions represent assets acquired at no cost to the Corporation. The fair values of these assets are
recognised as revenue upon their acceptance by the Corporation for maintenance in perpetuity.

Developers are required to make fair and reasonable contributions towards the cost of developing the
Corporation’s water supply distribution and sewerage disposal systems. These contributions are recorded as
Headworks Fees and are recognised as revenue upon receipt.

Government grants are recognised as revenue on receipt or when the entity obtains control of the contribution and
meets certain criteria as outlined by AASB 1004, whichever is the sooner, and disclosed in the Operating Statement
as Government Grants and Contributions. However, grants received from the Victorian State Government for specific
capital projects where the Minister for Finance and the Minister for Water have indicated the grant is in the nature of
owners’ contributions are accounted for as Equity and disclosed in the Balance Sheet as Contributed Capital.

Interest and rental are recognised as revenue when earned or the service is provided.

1.c.   Environmental Contributions

The Water Industry (Environmental Contributions) Act 2004 amended the Water Industry Act 1994 to make provision
for Environmental Contributions to be paid by water supply Corporations.

The Act establishes an obligation for Corporations to pay into the consolidated fund annual contributions in
accordance with a pre-established schedule of payments, which sets out the amounts payable by each Corporation.
The purpose for the Environmental Contribution is set out in the Act, and the funds may be used for the purpose of
funding initiatives that seek to promote the sustainable management of water or address water-related initiatives.
This schedule of payments has been set for the period 1 July, 2008 to 30 June, 2012. This Environmental Contribution
commitment for future periods has been included in Note 29 Capital and Other Commitments.

The Environmental Contributions are disclosed separately within expenses in the Operating Statement.
 66     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      1.d.   income Tax

      The Corporation is subject to the National Tax Equivalent Regime (NTER), which is administered by the Australian
      Taxation Office.

      The Income Tax expense or revenue for the period is the expected tax payable or receivable on the current period’s
      taxable income based on the current income tax rate of 30% adjusted by changes in Deferred Tax Assets and
      Liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying
      amounts in the financial statements, and to unused tax losses.

      Deferred Tax Assets and Liabilities are recognised for temporary differences at the tax rates expected to apply when
      the assets are recovered or liabilities are settled. The relevant tax rates are applied to the cumulative amounts of
      deductible and taxable temporary differences to measure the Deferred Tax Asset or Liability. Deferred Tax Assets
      are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable
      amounts will be available to utilise those temporary differences and losses.

      Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in
      Other Comprehensive Income or directly in Equity. In this case, the tax is also recognised in Other Comprehensive
      Income or directly in Equity, respectively.

      1.e.   Goods and Services Tax

      Revenues, expenses and assets are recognised net of goods and services tax (GST), except where the amount of GST
      incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised
      as part of the cost of acquisition of the asset or as part of an item of expense.

      Receivables and Payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the
      ATO is included as a current asset or liability in the Balance Sheet.

      Cash flows arising from Operating Activities are disclosed in the Cash Flow Statement on a gross basis – i.e. inclusive
      of GST. The GST component of cash flows arising from Investing and Financing activities which is recoverable or
      payable to the ATO is classified as operating cash flows.

      1.f.   Financial instruments

      recognition
      Financial instruments are initially measured at fair value, plus in the case of a financial asset or financial liability not at
      fair value through profit and loss, transaction costs that are directly attributable to the acquisition or the issue of the
      financial asset or liability. Subsequent to initial recognition, the financial instruments are measured as set out below:

      Loans and receivables
      Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
      an active market. They are included in current assets, except for those with maturities greater than 12 months after
      the reporting date which are classified as non-current assets. Loans and receivables are included in Receivables in the
      Balance Sheet. Loans and receivables are recorded at amortised cost less impairment.

      Fair value
      Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied
      to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar
      instruments and option pricing models.

      impairment
      At each reporting date, the Corporation assesses whether there is objective evidence that a financial instrument has
      been impaired. Impairment losses are recognised in the Operating Statement.
                                                       Goulburn valley water 2010| 2011 annual report                      67




notes to the FInAncIAl stAtements

1.g.   Cash and Cash Equivalent assets

Cash and Cash Equivalents include cash on hand, deposits held at call with financial institutions, other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value, and Bank Overdrafts. Bank Overdrafts are
shown within Interest Bearing Liabilities on the Balance Sheet, but are included within Cash and Cash Equivalents for
Cash Flow Statement presentation purposes.

1.h.   receivables

Receivables are recognised initially at fair value less allowance for impairment. Current Receivables are due for
settlement no more than 28 days from the date of recognition for water, sewerage and trade waste receivables. Non-
Current Receivables relate to trade waste customers for charges raised to meet the cost of extending our wastewater
treatment and re-use facilities. These receivables are due for settlement by instalments over terms remaining of no
more than 10 years. Commercial interest charges apply to outstanding balances.

Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written
off. An allowance for impaired receivables is established when there is objective evidence that the Corporation will
not be able to collect all amounts due according to the original terms of receivables. The amount of the allowance is
the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted
at the effective interest rate. The amounts credited to the allowance are recognised as an expense in the Operating
Statement.

1.i.   inventories

Inventories consist of stores and materials used by the Corporation in construction, repairs and maintenance of works.
Stores and materials are measured at the lower of cost and net realisable value. Costs are assigned to stores and
materials on the basis of weighted average cost.

1.j.   Biological assets

Biological assets consist of Livestock held on the Corporation’s wastewater re-use facilities. Livestock is measured at
net market value.

1.k.   recognition and Measurement of Property, Plant and Equipment

Property, Plant and Equipment represent non-current physical assets comprising land, buildings, water and sewerage
infrastructure, plant, equipment and motor vehicles, used by the Corporation in its operations. Items with a cost or
value in excess of $1,000 and a useful life of more than one year are recognised as an asset. All other assets acquired
are expensed.

acquisition
All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated
depreciation and impairment in accordance with the requirements of Financial Reporting Direction (FRD) 103D.

The purchase method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the
assets at the date of exchange, plus costs directly attributable to the acquisition.

Where assets are constructed by the Corporation, the cost at which they are recorded includes an appropriate share
of fixed and variable overheads.

Assets acquired at no cost or for nominal consideration by the Corporation are recognised at fair value at the date of
acquisition.
 68     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      repairs and Maintenance
      Routine maintenance, repair costs and minor renewal costs are expensed as incurred. Where the repair relates to the
      replacement of a component of an asset and the cost exceeds the capitalisation threshold, the cost is capitalised and
      depreciated.

      Financial reporting directions (Frd) on non-current Physical assets
      During 2009, the Minister for Finance issued two new FRD’s in relation to non-current physical assets that are
      relevant to water infrastructure assets. FRD103D Non-current Physical Assets (FRD 103D), as revised in March 2009,
      requires all non-current physical assets to be measured using the revaluation model unless the entity has received
      prior written approval of the Minister for Finance to measure the assets at cost. FRD 103D is applicable for reporting
      periods commencing on or after 1 July, 2008, superseding FRD 103C. However, in recognition of the initial workload
      and heavy demand on resources within a relatively tight timeframe for implementation, transitional dispensation
      was available to relieve measurement at fair value at the entity reporting level until the temporary exemption was
      withdrawn. This temporary exemption is made under FRD 121 Infrastructure Assets (Water/Rail). During 2009, this
      temporary exemption was extended until the financial year ending June 2011 at the direction of DTF.

      Measurement of non-Current Physical assets
      Revaluations are conducted in accordance with FRD 103D. Scheduled revaluation is undertaken every five years
      with an annual assessment of fair value to determine if it is materially different to carrying value. If the difference to
      carrying value is greater than 10 per cent, a management revaluation is undertaken while a movement greater than
      40 per cent will normally involve an Approved Valuer (usually the Valuer General of Victoria) to perform detailed
      assessment of the fair value. If the movement in fair value since the last revaluation is less than or equal to 10 per
      cent, then no change is made to carrying amounts.

      In the prior period, FRD 121 Infrastructure Assets (Water/Rail) provided a temporary exemption for the fair value
      measurement of water infrastructure assets controlled by water entities, at the entity reporting level. This exemption
      no longer applies for the current period. Water infrastructure assets, at both the entity reporting level and whole of
      government reporting level, are therefore measured at fair value less accumulated depreciation and impairment in
      accordance with FRD 103D. These assets comprise substructures or underlying systems held to facilitate harvesting,
      storage, treatment and transfer of water to meet customer needs. They also include infrastructure assets that underlie
      sewage and drainage systems.

      The initial fair value assessment for water infrastructure in the current period was undertaken with involvement from
      the Valuer-General of Victoria (VGV) and under the instructions of Department of Treasury and Finance (DTF). The
      assessment was performed on a portfolio basis for various categories for water infrastructures. Further details of the
      valuation exercise is provided in Note 16.

      Carrying amount
      Land and Buildings are measured at the amounts for which assets could be exchanged between knowledgeable,
      willing parties, in an arm’s length transaction. Infrastructure is measured at fair value. As there is no market-based
      evidence of Infrastructure valuation (as assets are rarely traded) depreciated replacement cost has been used as an
      estimate of fair value. Plant, equipment and vehicles are measured at fair value.

      Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
      the Operating Statement.

      All assets must be tested for impairment on an annual basis. Such assets are tested to ascertain whether the carrying
      amounts exceed their recoverable amounts.
                                                        Goulburn valley water 2010| 2011 annual report                         69




notes to the FInAncIAl stAtements

revaluations
Land, Buildings and Infrastructure are revalued with sufficient regularity to ensure that the carrying amount of each
asset does not differ materially from its fair value. This revaluation process occurs at least every five years. Revaluation
increments or decrements arise from differences between an asset’s carrying amount and fair value at the date of
the valuation. These assets are subject to an interim fair value assessment during the five year revaluation cycle. The
assessment of these assets is done by way of reference to industry prescribed and Valuer-General indexation factors.

Revaluation increments are credited directly to equity in the 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
determining profit or loss, the increment is recognised as revenue in determining profit or loss.

Revaluation decrements are recognised immediately as an expense in the net result, except that, to the extent
that a credit balance exists in the revaluation reserve in respect of the same class of assets, they are debited to the
revaluation reserve.

Revaluation increases and revaluation decreases relating to individual assets within a class of assets are offset against
one another, within that class, but are not offset in respect of assets in different classes.

Revaluation reserves are not transferred to accumulated funds on derecognition of the relevant asset.

impairment of assets
Property, Plant and Equipment are assessed annually for indicators of impairment. If there is an indication of
impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.
Where an asset’s carrying amount exceeds its recoverable amount, the difference is written-off by a charge to the
Operating Statement except to the extent that the write-down can be debited to an Asset Revaluation Reserve
amount applicable to that class of asset.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value
less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher
of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is
deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be
replaced unless a specific decision to the contrary has been made.

An impairment loss on a revalued asset is recognised directly against any revaluation reserve in respect of the same
class of asset to the extent that the impairment loss does not exceed the amount in the revaluation reserve for that
same class of asset.

A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading revaluation
reserve. However, to the extent that an impairment loss on the same class of asset was previously recognised in the
Operating Statement, a reversal of that impairment loss is also recognised in the Operating Statement.

1.l.   depreciation of Property, Plant and Equipment

All non-current physical assets with the exception of Land are depreciated using the straight line method to write
off the cost or revalued amount of each item, net of residual values, over its estimated useful life to the Corporation.
Where assets have separate identifiable components that have distinct useful lives and/or residual values, a separate
depreciation rate is determined for each component. The estimated useful lives of each group of assets have been
reviewed during the year, and adjustments made where required.

The estimated useful lives are listed below and are consistent with the prior year, unless otherwise stated:
•	 Buildings:                 30 to 50 years
•	 Infrastructure Assets:     5 to 110 years
•	 Plant and Equipment:       1 to 20 years
 70     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      1.m. Leases

      Operating Leases
      Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as
      operating leases. Payments made under operating leases are charged to the Operating Statement on a straight-line
      basis over the period of the lease, in the periods in which they are incurred, as this represents the patterns of benefits
      derived from the leased assets.

      1.n.   Payables

      Payables consist predominantly of Trade and Sundry Creditors. These amounts represent liabilities for goods and
      services provided to the Corporation prior to the end of the financial year, which are unpaid. The amounts are
      unsecured and are usually paid within 60 days of recognition.

      1.o.   interest Bearing Liabilities

      Interest Bearing Liabilities are initially recognised at fair value, net of transaction costs incurred. They are
      subsequently measured at amortised cost. Any difference between the initial amount recognised (net of transaction
      costs) and the redemption amount is recognised in the Operating Statement over the period of the borrowings, using
      the effective interest method.

      Interest Bearing Liabilities are classified as current liabilities unless the Corporation has an unconditional right to defer
      settlement of the liability for at least 12 months after the reporting date.

      1.p.   Borrowing Costs

      Borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing costs include
      interest on bank overdrafts, interest on borrowings and finance lease charges.

      1.q.   Provisions

      Provisions are recognised when the Corporation, as a result of a past event, has a legal or constructive obligation
      that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
      obligation.

      The amount recognised as a Provision is the best estimate of the consideration required to settle the present
      obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
      obligation.

      1.r.   Employee Benefits

      Wages and Salaries, annual Leave and Sick Leave
      Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave
      when it is probable that settlement will be required and they are capable of being measured reliably.

      Provisions made in respect of Employee Benefits expected to be settled within 12 months are measured at their
      nominal values, using the remuneration rate expected to apply at the time of settlement.

      Provisions made in respect of Employee Benefits which are not expected to be settled within 12 months are measured
      at the present value of estimated future cash outflows to be made by the Corporation, in respect of services provided
      by employees up to the reporting date. Regardless of the expected timing of settlements, provisions made in respect
      of Employee Benefits are classified as a current liability, unless there is an unconditional right to defer the settlement
      of the liability for at least 12 months after the reporting date, in which case it would be classified as a non current
      liability.
                                                       Goulburn valley water 2010| 2011 annual report                     71




notes to the FInAncIAl stAtements

Long Service Leave
Current Liability – unconditional LSL, representing 7 or more years of continuous service, is disclosed as a current
liability even when the Corporation does not expect to settle the liability within 12 months because it does not have
the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:
•	 Present value – component that the Corporation does not expect to settle within 12 months; and
•	 Nominal value – component that the Corporation expects to settle within 12 months.

non-Current Liability – conditional LSL, representing less than 7 years of continuous service, is disclosed as a non-
current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has
completed the requisite years of service. Conditional LSL is required to be measured at present value.

In calculating present value, consideration is given to expected future wage and salary levels, experience of employee
departures and periods of service. Expected future payments are discounted using market yields at the reporting
date on national government bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.

Superannuation
A liability or asset in respect of defined benefit superannuation is recognised in employee benefits liabilities and is
measured as the difference between the present value of employees’ accrued benefits at the reporting date and the
net market value of the superannuation plan’s assets at that date. The present value of accrued benefits is based on
expected future payments which arise from membership of the plans to the reporting date. Consideration is given to
expected future wage and salary levels, experience of employee departures and periods of service. Expected future
payments are discounted using rates of national government bonds with terms to maturity that match, as closely as
possible, the estimated future cash outflows.

The amount charged to the Operating Statement in respect of superannuation represents the contributions made to
the superannuation plan, adjusted by the movement in the defined benefit plan liability or surplus.

Employee Benefit On-Costs
Employee Benefit on-costs, including Payroll Tax and Workcover, are recognised and included in employee benefit
liabilities and costs when the employee benefits to which they relate are recognised as liabilities.

Performance Payments
Performance Payments for the Corporation’s Executive Officers are based on a percentage of the annual salary
package provided under their contracts of employment. A liability is recognised and is measured as the aggregate of
the amounts accrued under the terms of the contracts to balance date.

1.s.   Provision for dividend

An obligation to pay a Dividend only arises after consultation between the Board, the Minister for Water and the
Treasurer. Following this consultation a formal determination is made by the Treasurer. Although this process has not
yet been completed at the reporting date, the Board’s preliminary Dividend estimate in respect of the current year is
nil. Dividends are prescribed by the State Government in accordance with the Public Authorities (Dividend) Act 1983
based on a prescribed percentage of the previous year’s adjusted net profit.
 72     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      1.t.   new accounting Standards and interpretations issued that are not yet effective

      Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2011
      reporting period. As at 30 June 2011, the following standards and interpretations had been issued but were not mandatory
      for financial year ending 30 June 2011. The Corporation has not and does not intend to adopt these standards early.




                                                                   aPPLiCaBLE FOr annuaL
                                                                   rEPOrTinG PEriOdS             iMPaCT On FinanCiaL
      STandard / inTErPrETaTiOn       SuMMary                      BEGinninG On Or aFTEr         STaTEMEnTS

      AASB 9 Financial Instruments,   AASB 9 Financial Instruments 1 January 2013                The entity is yet to assess its
      AASB 2009-11 Amendments         addresses the classification                               full impact. However, initial
      to Australian Accounting        and measurement of financial                               indications are that it may
      Standards arising from          assets and is likely to affect                             affect the entity’s accounting
      AASB 9 and AASB 2010-7          the entity’s accounting for                                for its available-for-sale
      Amendments to Australian        its financial assets. The                                  financial assets, since AASB 9
      Accounting Standards arising    standard is not applicable                                 only permits the recognition
      from AASB 9 (December           until 1 January 2013 but is                                of fair value gains and losses
      2010)                           available for early adoption.                              in other comprehensive
                                      The derecoginition rules                                   income if they relate to equity
                                      have been transferred                                      investments that are not held
                                      from AASB 139 Financial                                    for trading. Fair value gains
                                      Instruments: Recognition and                               and losses on available-for-
                                      Measurement and have not                                   sale debt investments, for
                                      been changed. The group                                    example, will therefore have
                                      has not yet decided when to                                to be recognised directly in
                                      adopt AASB 9.                                              profit or loss.

      Revised AASB 124 Related        In December 2009 the AASB 1 January 2011                   The group will apply the
      Party Disclosures and AASB      issued a revised AASB 124                                  amended standard from
      2009-12 Amendments to           Related Party Disclosures.                                 1 July 2011. When the
      Australian                      It is effective for accounting                             amendments are applied, the
      Accounting Standards            periods beginning on or after                              group will need to disclose
                                      1 January 2011 and must be                                 any transactions between
                                      applied retrospectively. The                               its subsidiaries and its
                                      amendment removes the                                      associates. However, there
                                      requirement for government-                                will be no impact on any of
                                      related entities to disclose                               the amounts recognised in
                                      details of all                                             the financial statements.
                                      transactions with the
                                      government and other
                                      government-related entities
                                      and clarifies and simplifies the
                                      definition of a related party.
                                                                Goulburn valley water 2010| 2011 annual report             73




notes to the FInAncIAl stAtements

                                                                aPPLiCaBLE FOr annuaL
                                                                rEPOrTinG PEriOdS       iMPaCT On FinanCiaL
STandard / inTErPrETaTiOn        SuMMary                        BEGinninG On Or aFTEr   STaTEMEnTS

AASB 2009-14 Amendments          In December 2009, the          1 January 2011          The entity does not make
to Australian Interpretation -   AASB made an amendment                                 any such prepayments. The
Prepayments of a Minimum         to Interpretation 14 The                               amendment is therefore not
Funding Requirement              Limit on a Defined Benefit                             expected to have any impact
                                 Asset, Minimum Funding                                 on the entity’s financial
                                 Requirements and their                                 statements.
                                 Interaction. The amendment
                                 removes an unintended
                                 consequence of the
                                 interpretation related to
                                 voluntary prepayments when
                                 there is a minimum funding
                                 requirement in regard to
                                 the entity’s defined benefit
                                 scheme. It permits entities
                                 to recognise an asset for a
                                 prepayment of contributions
                                 made to cover minimum
                                 funding requirements.

AASB 1053 Application of         On 30 June 2010 the AASB       1 July 2013             The impact of this standard
Tiers of Australian Accounting   officially introduced a                                will depend on instructions
Standards and AASB 2010-2        revised differential reporting                         provided by DTF on its
Amendments to Australian         framework in Australia. Under                          applicability to the entity. The
Accounting Standards arising     this framework, a two-tier                             entity will assess its impact
from Reduced Disclosure          differential reporting regime                          once DTF has provided
Requirements                     applies to all entities that                           guidance on this standard.
                                 prepare general purpose
                                 financial statements.

AASB 2010-4 Further              In June 2010, the AASB made 1 January 2011             These amendments are
Amendments to Australian         a number of amendments                                 not expected to have any
Accounting Standards             to Australian Accounting                               significant impact on the
arising from the Annual          Standards as a result of the                           entity’s disclosures.
Improvements Project             IASB’s annual improvements
                                 project.
 74        Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      2.     Financial risk management objectives and Policies
      The Corporation’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. This note presents
      information about the Corporation’s exposure to each of these risks, and the objectives, policies and processes for measuring
      and managing risk.

      The Corporation’s Board has the overall responsibility for the establishment and oversight of the Corporation’s risk
      management framework. The Corporation’s overall risk management program focuses on the unpredictability of financial
      markets and seeks to minimise potential adverse effects on the financial performance of the Corporation. The Corporation
      uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis
      in the case of interest rate, foreign exchange and other price risks, ageing analysis for credit and beta analysis in respect of
      investment portfolios to determine market risk.

      Risk management is carried out by the Corporation’s Executive Management Team under policies approved by the Board
      of Directors. The Finance department identifies, evaluates and manages financial risks in close co-operation with the
      Corporation’s objectives. The Board provides written principles for overall risk management, as well as policies covering
      specific areas, such as foreign exchange risk, interest rate risk, and credit risk, use of derivative financial instruments and non-
      derivative financial instruments, and investment of excess liquidity.

      2.1    risk Exposures

             The main risks the Corporation is exposed to through its financial instruments are as follows:


             a. Market risk
                Market risk is the risk that changes in market prices will affect the fair value or future cash flows of the Corporation’s
                financial instruments. Market risk comprises of interest rate risk, foreign exchange risk and other price risk. The
                Corporation’s exposure to market risk is primarily through interest rate risk, with no exposure to foreign exchange
                risk and other price risks.

                Objectives, policies and processes used to manage these risks are as follows:

                i. interest rate risk
                   The Corporation’s exposure to market interest rates relates primarily to the Corporation’s long term borrowings
                   and funds invested on the money market.

                   The interest rate on the Corporation’s long term borrowings is fixed and therefore the Corporation is not
                   exposed to short term risk as a result of fluctuating interest rates. In addition, the maturity dates for these long
                   term borrowings are staggered to further minimise interest rate risk in any given year.

                   The Corporation has minimal exposure to interest rate risk through its holding of cash assets and other financial
                   assets. Other financial assets include non-current receivables. These receivables are of fixed terms with fixed
                   interest rates.

                ii. Foreign Exchange risk
                   Foreign exchange risk arises when financial instruments are recognised in a currency that is not the entity’s
                   functional currency. The Corporation’s exposure to foreign exchange risk is nil with no instruments held in foreign
                   currencies.

                iii. Other Price risk
                   The Corporation has no significant exposure to other price risk.
                                                               Goulburn valley water 2010| 2011 annual report                        75




notes to the FInAncIAl stAtements

Market risk Sensitivity analysis
The sensitivity analysis below has taken into consideration past performance, future expectations, economic forecasts and
management’s knowledge and experience of the financial markets. The Corporation believes that a movement of 1.0% in
interest rates is reasonable over the next 12 months;



                                                                                       inTErEST raTE riSk

                                                     CarryinG             -1.0% (100 BP)                 +1.0% (100 BP)
                                                      aMOunT             rESuLT          EQuiTy           rESuLT          EQuiTy
30 junE 2011                                             $’000            $’000           $’000            $’000           $’000


Financial assets
Cash and Cash Equivalents                                  4,340             (43)             (43)             43              43
Receivables                                               17,349                -                -               -               -


Financial liabilities
Payables                                                   7,490                -                -               -               -
Interest Bearing Liabilities                              90,000               30              30             (30)            (30)
Total increase/ (decrease)                                                    13               13             (13)            (13)




                                                                                       inTErEST raTE riSk

                                                     CarryinG             -1.0% (100 BP)                 +1.0% (100 BP)
                                                      aMOunT             rESuLT          EQuiTy           rESuLT          EQuiTy
30 junE 2010                                             $’000            $’000           $’000            $’000           $’000


Financial assets
Cash and Cash Equivalents                                  2,835             (28)             (28)             28              28
Receivables                                               19,476                -                -               -               -


Financial liabilities
Payables                                                   9,295                -                -               -               -
Interest Bearing Liabilities                              81,100               31              31             (31)            (31)
Total increase/ (decrease)                                                      3               3              (3)             (3)


Interest rate risk analysis is applied to Cash and Cash Equivalents as they are exposed to market fluctuations and is also
applied to current Interest Bearing Liabilities as the balance of these liabilities have fixed interest rates and staggered
maturities.
 76     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

            b. Credit risk
               Credit risk is the risk of financial loss to the Corporation as a result of a customer or counterparty to a financial
               instrument failing to meet its contractual obligations. Credit risk arises principally from the Corporation’s cash and
               receivables and other financial assets.

               The Corporation’s exposure to credit risk is influenced by the individual characteristics of each customer. The
               receivable balance consists of a large number of residential and business customers which are spread across a
               diverse range of industries. Receivable balances are monitored on an on-going basis to ensure that exposure to
               bad debts is not significant. The Corporation has in place policies and procedures to assist customers who may be
               experiencing financial hardship and for the collection of overdue receivables.

               An analysis of the ageing of the Corporation’s receivables at reporting date has been provided in Note 13.

            c. Liquidity risk
               Liquidity Risk is the risk that the Corporation will not be able to meet its financial obligations as they fall due. The
               Corporation’s policy is to settle financial obligations within 60 days and in the event of dispute make payments
               within 30 days from the date of resolution.

               The Corporation manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
               facilities by continuously monitoring forecasts and actual cash flows and matching the maturity profiles of financial
               assets and financial liabilities.

               The Corporation’s financial liability maturities have been disclosed in Note 19.

      2.2   Fair Value Measurement

      The fair value of financial instruments traded in active markets (such as publicly traded derivatives) is based on quoted market
      prices at the reporting date. The quoted market price used for financial assets held by the Corporation is the current bid
      price.

      The carrying value of Current Receivables less impairment provision and of Payables is a reasonable approximation of their fair
      values due to their short-term nature.

      The fair values of Non-Current Receivables and other financial liabilities for disclosure purposes is determined by discounting
      the future contractual cash flows at the current market interest rate that is available to the Corporation for similar financial
      instruments.

      The carrying amounts and aggregate net fair values of financial assets and financial liabilities at reporting date have been
      provided in Note 26.
                                              Goulburn valley water 2010| 2011 annual report       77




notes to the FInAncIAl stAtements


                                                                             2011        2010
                                                               nOTE         $’000        $’000



3.    Fees and charges

Tariffs and Charges                                                        26,532       24,269
Metered Charges                                                            16,951       19,740
Trade Waste Charges                                                         3,577        3,495
Licences and Fees                                                             835          934
                                                                           47,895       48,438



4.    Developer and landowner contributions

Landowner Contributions                                                     4,985        3,959
Headworks Fees                                                              1,339        1,070
                                                                            6,324        5,029



5.    Government contributions

Capital Project Grant - Water                                                 563              -



6.    Interest revenue

Interest on Investments                                                        33           17
Interest on Tariffs, Schemes and Charges                                      440          484
                                                                             473          501



7.    other revenue

Rent/Lease                                                                    496         408
Farm Revenue                                                                1,176        1,248
Miscellaneous                                                                 315         473
                                                                            1,987        2,129
 78        Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

                                                                           2011    2010
                                                                  nOTE    $’000    $’000



      8.     operating expenses

      Purchase of Raw Water                                                907      861
      Maintenance                                                         7,364    7,012
      Water Treatment                                                     8,075    7,832
      Sewage Treatment and Pumping                                        8,780    8,379
      Depreciation Infrastructure                                   16   12,513   11,987
      Loss on Sale or Disposal of Property, Plant and Equipment            193      236
                                                                         37,832   36,307



      9.     Administration expenses

      Employee Benefits                                                   5,876    5,185
      Bad Debts Written Off                                                 42       49
      Audit Fees - External Audit (Auditor-General, Victoria)               44       44
      Audit Fees - Internal Audit (Pitcher Partners)                        37       50
      Depreciation                                                  16    2,155    1,837
      Professional/Consulting Services                                     967      603
      Office Expenses                                                      799      891
      Conservation and Consultation                                        272      378
      Computer Expenses                                                    539      509
      Corporation and Associated Expenses                                  516      527
                                                                         11,247   10,073


      Employee Benefit Expenses
      Employee Benefit Expenses                                          15,998   14,416


      These expenses have been allocated to:
      - Operating Expenses                                               10,122    9,231
      - Administration Expenses                                           5,876    5,185
                                                                         15,998   14,416



      10. Borrowing costs

      Interest on Bank Overdraft, Loans & Bank Charges                    5,977    5,031
                                                               Goulburn valley water 2010| 2011 annual report       79




notes to the FInAncIAl stAtements

                                                                                              2011        2010
                                                                                nOTE         $’000        $’000



11. Income tax
Income tax expense for the financial year differs from the amount
calculated on the net result. The differences are reconciled as follows:


a.    income tax expense
      Current tax payable                                                           -             -             -
      Deferred tax relating to temporary differences                                            75          453
                                                                                                75          453


      Deferred income tax(revenue) expense included in income tax
      expense comprises:
      (Increase) in deferred tax assets                                            17       (4,733)      (2,913)
      Increase in deferred tax liabilities                                         21        4,808        3,366
                                                                                                75          453


b.    reconciliation of income tax expense to prima facie tax payable
      Profit before income tax expense                                                         271        2,771
      Tax at the australian tax rate of 30% (2010: 30%)                                         81          831


      Tax effect of amounts which are not deductible (taxable) in
      calculating taxable income:
-     Income not assessable for income tax                                                        -         (20)
-     Investment Allowance deductions                                                          (19)        (371)
-     Sundry items                                                                              13           13
income tax expense                                                                              75          453


c.    amounts recognised directly in Equity


      Aggregate current and deferred tax arising in the reporting period
      and not recognised in profit for the year but directly debited to
      equity:
      Current Tax                                                                                 -             -
      Net deferred tax – debited directly to Equity                                21      (69,747)             -
                                                                                           (69,747)             -



12. cash and cash equivalents

Cash at Bank and on hand                                                                     4,340        2,835
 80        Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

                                                                                                     2011    2010
                                                                                          nOTE      $’000    $’000



      13. receivables

      Current Receivables                                                                          13,140   14,115
      Less Provision for Impaired Receivables                                                       (100)    (100)
      Total Current Receivables                                                                    13,040   14,015
      Non-Current Receivables                                                                       4,309    5,461
      Total receivables                                                                            17,349   19,476


      a.     Provision for impaired receivables

      As at 30 June 2011, Current Receivables of the Corporation with a nominal value of
      $201,000 (2010: $206,000) were impaired. The amount of the provision was $100,000
      (2010: $100,000). The individually impaired Receivables mainly relate to tenant accounts
      and a number of identified Trade Receivables, which are in unexpectedly difficult economic
      situations. It was assessed that a portion of the Receivables is expected to be recovered.

      The ageing of these Receivables is as follows:
      Current                                                                                         15        2
      1-2 months                                                                                       4        4
      3-4 months                                                                                       5        4
      Over 4 months                                                                                  177      196
                                                                                                     201      206


      As at 30 June 2011, Receivables of $1.211m (2010: $1.767m) were past
      due but not impaired. These relate to a number of customers for whom
      there is no recent history of default.

      The ageing analysis of these Receivables is as follows:
      1-2 months                                                                                     644     1,112
      3-4 months                                                                                     212      268
      Over 4 months                                                                                  355      387
                                                                                                    1,211    1,767


      Movements in the Provision for Impaired Receivables are as follows:
      Balance at 1 July                                                                              100      100
      Provision for impairment recognised during the year                                             42       49
      Receivables written off during the year as uncollectible                                 9     (42)     (49)
      Balance at 30 june                                                                             100      100
                                                              Goulburn valley water 2010| 2011 annual report                        81




notes to the FInAncIAl stAtements

                                                                                                         2011               2010
                                                                                      nOTE              $’000               $’000


The creation and release of the Provision for Impaired Receivables has been included in Administration Expenses in the
Operating Statement. Amounts charged to the provision account are generally written off when there is no expectation of
recovering additional cash.

Other amounts within Receivables do not contain impaired assets and are not past due. Based on credit history, it is expected
that these amounts will be received when due.

b.       Fair value and credit risk

Due to the short-term nature of the Current Receivables, their carrying value is assumed to approximate their fair value.

The maximum exposure to credit risk at the reporting date is the higher of the carrying value and fair value of each class of
Receivables mentioned above. The Corporation holds collateral as security on some Receivables. The collateral is a charge
over property. Refer to Note 2 for more information of the risk management policy of the Corporation and to Note 26 for
further analysis of Receivables.



14. Inventories

Stores and Materials – at cost                                                            1(i)             952               838



15. Biological Assets

Livestock – at net market value:
Sheep                                                                                                      834               831
Cattle                                                                                                     237               168
                                                                                         1(j)           1,071                999


Represented by:
                                                                   2011              2010                2011                2010
                                                               QuanTiTy          QuanTiTy               $’000               $’000
Carrying amount at 1 july                                            7,296             6,357               999               663
increases due to:
Purchases                                                            1,735               957               366               214
Natural Increase                                                     3,941             3,585               336               319
Market value adjustment                                                   -                 -              346               308
decreases due to:
Sales                                                               (6,336)           (3,435)            (934)              (488)
Deaths                                                                (306)             (168)              (42)              (17)
Carrying amount at 30 june                                           6,330             7,296            1,071                999

All Livestock Biological Assets of the Corporation were independently valued as at 30 June 2011 by the following Livestock
Agents: Robson Donaldson Pty. Ltd., Landmark & Corcoran Parker Pty. Ltd. Livestock is valued at net market value.
 82     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

                                                                      2011      2010
                                                            nOTE     $’000      $’000



      16. Property, Plant and equipment

      Land and Buildings
      Freehold Land
      At Independent Valuation 2011                                 30,152     36,788
      At Cost                                                             -     3,566
                                                                    30,152     40,354


      Buildings
      At Independent Valuation 2011                                  5,373      8,320
      Less: Accumulated Depreciation                                      -    (1,093)
                                                                     5,373      7,227


      At Cost                                                             -     1,687
      Less: Accumulated Deprecation                                       -       (46)
                                                                          -     1,641
      Total Land and Buildings                                      35,525     49,222


      infrastructure assets
      At Independent Valuation 2011                                673,210           -
      At Cost                                                             -   521,700
      Less: Accumulated Depreciation                                      -   (98,224)
                                                                   673,210    423,476
      Infrastructure Assets in the course of construction           40,788     36,317
      Total infrastructure assets                                  713,998    459,793


      Plant and Equipment
      At Fair Value                                                 14,040     17,651
      Less: Accumulated Depreciation                                (7,227)   (10,997)
      Total Plant and Equipment                                      6,813      6,654


      Total Property, Plant and Equipment                          756,336    515,669
                                                              Goulburn valley water 2010| 2011 annual report                        83




notes to the FInAncIAl stAtements

Valuation of Property, Plant and Equipment
Land & Buildings of the Corporation were valued at the 30th June, 2011 by the Valuer General of Victoria (using Egan
National Valuers Pty. Ltd.) at their fair value.

Infrastructure assets of the Corporation were valued at the 30th June, 2011 by the Valuer General of Victoria (using AECOM
Australia Pty. Ltd.) at their fair value.

In relation to Plant and Equipment management has determined that in accordance with FRD 103D depreciated replacement
cost represents a reasonable approximation of fair value at 30th June, 2011.

reconciliations
Reconciliations of the carrying amounts of each class of Property, Plant and Equipment at the beginning and end of the
current financial year and the previous financial year are set out below.

                                         FrEEhOLd                  inFraSTruCTurE       in COurSE OF       PLanT &
                                              Land    BuiLdinGS               aSSETS COnSTruCTiOn       EQuiPMEnT          TOTaL
                                              $’000        $’000               $’000           $’000            $’000      $’000


2011
Carrying amount at 1 July, 2010             40,354        8,868              423,476          36,317            6,654    515,669
Additions                                         -          16               15,971           4,471            3,256     23,714
Disposals                                         -          (1)                (227)              -            (641)       (869)
Revaluation                                 (9,482)         926              241,046               -                 -   232,490
Asset transfers                               (720)      (4,306)               5,457               -            (431)           -
Depreciation Expense                              -        (130)             (12,513)              -           (2,025)   (14,668)
Carrying amount at 30 june, 2011            30,152        5,373              673,210         40,788            6,813     756,336


2010
Carrying amount at 1 July, 2009             39,937        8,321              420,537          21,187            6,021    496,003
Additions                                      432          815               15,213          15,130            2,869     34,459
Disposals                                      (15)            -                (287)              -            (667)       (969)
Depreciation Expense                              -        (268)             (11,987)              -           (1,569)   (13,824)
Carrying amount at 30 june, 2010            40,354        8,868              423,476         36,317            6,654     515,669




                                                                                                        2011               2010
                                                                                                       $’000               $’000


depreciation Charge for the year
Buildings                                                                                               130                  268
Infrastructure                                                                                     12,513                 11,987
Plant and Equipment                                                                                    2,025               1,569
                                                                                                   14,668                 13,824

non-Current assets Pledged as Security
The Corporation has not pledged any of its non-current assets as security.
 84     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

                                                                                                             2011            2010
                                                                                          nOTE              $’000            $’000



      17. Deferred tax Assets

      The balance comprises temporary differences attributable to:
      Amounts recognised in the Operating Statement:
      Impaired Receivables                                                                                      30               30
      Employee Benefits                                                                                     1,248             1,150
      Accrued Expenses                                                                                          42               35
      Depreciation                                                                                            469               361
      Tax Losses                                                                                           28,973            24,453
      Total deferred Tax assets                                                                            30,762           26,029


      Movements:
      Opening balance at 1 July                                                                            26,029            23,116
      Charged to the Operating Statement                                                                    4,733             2,913
      Closing balance at 30 june                                                                           30,762           26,029



      18. Payables

      Trade Creditors                                                                                       6,726             8,700
      Sundry Creditors                                                                                        764               595
                                                                                                            7,490            9,295

      Foreign currency risk and interest rate risk for trade and other Payables
      The carrying amounts of the Corporation’s trade and other Payables are denominated in Australian dollars. For an analysis of
      the sensitivity of trade and other Payables to interest rate risk refer to Note 2.
                                                              Goulburn valley water 2010| 2011 annual report                          85




notes to the FInAncIAl stAtements

                                                                                                         2011             2010
                                                                                      nOTE              $’000             $’000



19. Interest Bearing liabilities - secured

Current
Other Loans                                                                                              3,000            3,100
                                                                                                        3,000             3,100


non-Current
Other Loans                                                                                            87,000            78,000
                                                                                                       87,000            78,000
Total interest Bearing Liabilities                                                                     90,000            81,100


Credit standby arrangements
Total facilities                                                                                       15,000            12,000
Unused at balance date                                                                                 15,000            12,000


Loan facilities
Total facilities                                                                                       90,000            81,100
Used at balance date                                                                                   90,000            81,100
Unused at balance date                                                                                        -                   -


Loans and Bank Overdraft are secured by the future revenue of the Corporation and a guarantee from the Treasurer of
Victoria.

Off-balance sheet
The Corporation does not have any liabilities classed as off-balance sheet. As per Note 28, the Corporation is not aware of
any Contingent Liabilities as at balance date.

On-balance sheet
The fair value of current borrowings equals their carrying amount, as the impact of discounting is not significant. The fair
values of non-current borrowings are based on cash flows discounted using current borrowing rates varying from 5.15% to
5.96%, depending on the type of the borrowing (2010 – 4.98% to 5.87%).

The Corporation’s loans are held with the Treasury Corporation of Victoria except for an immaterial amount held with one
Other Lender as at 30 June, 2010. The Treasury Corporation of Victoria loans are taken out on fixed terms at fixed interest
rates and are staggered in terms of maturity to minimise interest rate risk. The loan held with the Other Lender has been fully
remitted during 2010/11 in line with its fixed repayment schedule.
 86     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

                                                                                                            2011      2010
                                                                                                 nOTE      $’000      $’000


      risk exposures
      The exposure of the Corporation’s borrowings to interest rate changes and the contractual
      re-pricing dates at the balance dates are as follows:
      6 months or less                                                                                     3,000      3,000
      6 – 12 months                                                                                             -       100
      1 – 5 years                                                                                         44,000     39,000
      Over 5 years                                                                                        43,000     39,000
      Total interest Bearing Liabilities                                                                  90,000     81,100


      The carrying amounts of the Corporation’s borrowings are denominated in Australian
      dollars. For an analysis of the sensitivity of borrowings to interest rate risk refer to Note 2.



      20. employee Benefits

      Current
      Employee Benefits expected to be settled within 12 months, measured at nominal value                 1,258      1,206
      Employee Benefits expected to be settled after 12 months, measured at present value                  2,546      2,300
      Total Current                                                                                        3,804      3,506


      non-Current
      Conditional Long Service Leave, measured at present value                                              357        328
      Total non-Current                                                                                      357        328
      Total Employee Benefits                                                                              4,161      3,834


      The following assumptions were adopted in measuring the present value of Long Service
      Leave entitlements:
      Weighted average increase in employee costs                                                          4.48%      4.48%
      Weighted average discount rates                                                                      5.16%      4.62%
      Weighted average settlement period                                                                 12 years   12 years
                                                               Goulburn valley water 2010| 2011 annual report       87




notes to the FInAncIAl stAtements

                                                                                              2011        2010
                                                                                nOTE         $’000        $’000



21. Deferred tax liabilities

The balance comprises temporary differences attributable to:
Amounts recognised in the Operating Statement:
Prepayments                                                                                       -             -
Unearned Receivables                                                                         1,943        1,371
Depreciation                                                                                41,891       37,655


Amounts recognised directly in Equity:
Revaluation of Property, Plant and Equipment                                                71,181        1,434
deferred Tax Liabilities                                                                   115,015       40,460


Movements:
Opening balance at 1 July                                                                   40,460       37,094
Charged to the Operating Statement                                                           4,808        3,366
Charged to Other Comprehensive Income                                                       69,747              -
Closing balance at 30 june                                                                 115,015       40,460



22. contributed capital

Opening balance at 1 July                                                                  234,704      234,704
Capital transactions with the State in its capacity as owner                                      -             -
Closing balance at 30 june                                                                 234,704      234,704



23. reserves

Opening balance at 1 July - Asset Revaluation Reserve                                       23,267       23,267
Revaluation of Property, Plant and Equipment                                               232,490              -
Deferred Tax Liability                                                                     (69,747)             -
Closing balance at 30 june – asset revaluation reserve                                     186,010       23,267



24. retained Profits

Opening balance at 1 July                                                                  173,686      171,368
Profit for the year                                                                            196        2,318
Closing balance at 30 june                                                                 173,882      173,686
 88     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

                                                                                                2011    2010
                                                                             nOTE              $’000    $’000



      25. reconciliation of Profit for the year to net cash Inflow from operating Activities

      Profit for the Year                                                                       196     2,318


      add/(Less) non Cash Flows in Profit for the year
      Contributed Assets                                                                   (4,707)     (3,676)
      Depreciation                                                                         14,668      13,824
      Loss on Sale of Non-Current Assets                                                        193       236
      Bad Debts Written Off                                                                      42        49


      Change in Operating assets and Liabilities
      Decrease in Receivables                                                                  2,084    (149)
      (Increase) in Inventories                                                                (114)      (68)
      (Increase) in Biological Assets                                                           (72)    (336)
      (Increase) / Decrease in Prepayments                                                       48       (74)
      (Increase) in Deferred Tax Assets                                                    (4,733)     (2,913)
      (Decrease) in Payables                                                                   (737)      349
      Increase in Employee Benefits                                                             327       292
      Increase in Deferred Tax Liabilities                                                     4,808    3,366
      net Cash inflow from Operating activities                                            12,003      13,218
                                                                Goulburn valley water 2010| 2011 annual report                        89




notes to the FInAncIAl stAtements

26. Financial Instruments
i.     interest rate risk Exposures
The Corporation’s exposure to interest rate risks, including the contractual repricing dates and the effective weighted average
interest rate by maturity, is recorded in the table below. Exposures arise predominantly from liabilities bearing variable interest
rates as the Corporation intends to hold fixed rate liabilities to maturity.

                                                                 COnTraCTuaL rEPriCinG Or MaTuriTy PEriOdS

                                          nOn FLOaTinG                  OVEr       OVEr      OVEr       OVEr
                                       inTErEST inTErEST    1 yEar     1 TO 2     2 TO 3     3 TO 4    4 TO 5      OVEr
                                       BEarinG     raTE    Or LESS     yEarS      yEarS      yEarS     yEarS     5 yEarS     TOTaL
                                          $’000    $’000      $’000     $’000      $’000      $’000     $’000      $’000      $’000



2011


Financial assets
Cash                                         4    4,336           -          -         -          -          -         -     4,340
Receivables                             12,434         -       607       635        677        701       749      1,546     17,349
Total Financial Assets                  12,438    4,336        607       635        677        701       749      1,546     21,689
Weighted Average Interest Rate                -   4.41%     6.88%      6.87%      6.87%     6.86%      6.86%      6.82%           -


Financial Liabilities
Payables                                 7,490         -          -          -         -          -         -          -     7,490
Interest Bearing Liabilities                  -        -     3,000      9,000    11,000     11,000    13,000     43,000    90,000
Total Financial Liabilities              7,490         -     3,000      9,000    11,000     11,000    13,000     43,000    97,490
Weighted average interest rate                -        -    5.69%      6.78%      5.86%     5.69%      5.92%      6.16%           -
net Financial assets / (Liabilities)     4,948    4,336    (2,393)    (8,365) (10,323) (10,299) (12,251) (41,454) (75,801)


2010


Financial assets
Cash                                         3    2,832           -          -         -          -          -         -     2,835
Receivables                             13,818         -       692       604        643        684       709      2,326     19,476
Total Financial Assets                  13,821    2,832        692       604        643        684       709      2,326     22,311
Weighted Average Interest Rate                -   4.10%     6.87%      6.88%      6.88%     6.88%      6.87%      6.83%           -


Financial Liabilities
Payables                                 9,295         -          -          -         -          -         -          -     9,295
Interest Bearing Liabilities                  -        -     3,100      3,000     9,000     11,000    16,000     39,000    81,100
Total Financial Liabilities              9,295         -     3,100      3,000     9,000     11,000    16,000     39,000    90,395
Weighted average interest rate                -        -    5.35%      5.69%      6.78%     5.86%      5.78%      6.27%           -
net Financial assets / (Liabilities)     4,526    2,832    (2,408)    (2,396)    (8,357) (10,316) (15,291) (36,674) (68,084)
 90         Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      ii.     Fair Value of Financial assets and Liabilities
      The carrying amounts and fair values of financial assets and financial liabilities at balance date are:

                                                                          2011                                     2010
                                                                CarryinG                                  CarryinG
                                                                 aMOunT             Fair VaLuE             aMOunT          Fair VaLuE
                                                                    $’000                 $’000               $’000              $’000


      Financial assets
      Cash and Cash Equivalents                                       4,340                4,340                 2,835            2,835
      Receivables                                                    17,349               17,647                19,476           19,864
      Total Financial assets                                         21,689               21,987                22,311           22,699


      Financial Liabilities
      Payables                                                        7,490                7,490                 9,295            9,295
      Interest Bearing Liabilities                                   90,000               92,819                81,100           84,521
      Total Financial Liabilities                                    97,490             100,309                 90,395           93,816




      Cash, cash equivalents and non-interest bearing Financial Assets and Financial Liabilities are carried at cost which
      approximates their fair value. The fair value of other Financial Assets and Financial Liabilities is based upon market prices,
      where a market exists or by discounting the expected future cash flows at current interest rates.

      The carrying amounts of interest bearing Receivables are less than their respective fair values. The Corporation intends to
      allow these Receivables to run in accordance with their maturities and, accordingly, has decided not to write them up to their
      fair values.

      The carrying amounts of Interest Bearing Liabilities are less than their respective fair values. The Corporation intends to repay
      these borrowings in accordance with their maturities and, accordingly, has decided not to write them up to their fair values.
                                                                 Goulburn valley water 2010| 2011 annual report                        91




notes to the FInAncIAl stAtements

27. superannuation
The Corporation contributes in respect of its employees to 29 superannuation schemes. Contributions to superannuation
schemes expensed during the financial year were as follows:

                                                          COnTriBuTiOnS
                                                   Paid               OuTSTandinG
                                                2011         2010        2011         2010
SChEME                                         $’000        $’000       $’000        $’000               BaSiS OF CaLCuLaTiOn
                                                                                                     3.25% of member employee’s
Vision Super Superannuation Scheme
                                                  454         443             -           -        salary plus the equivalent of the
(Defined Benefits)
                                                                                                  employee’s own contribution rate
                                                                                                  2011 amount is the Corporation’s
Vision Super Superannuation Scheme
                                                  541            -            -           -          contribution to the Unfunded
(Defined Benefits)
                                                                                                            Liability of the Scheme
Vision Super Saver Superannuation
                                                  738         757           76           61       9% of member employee’s salary
Scheme
State Superannuation Board New                                                                      Varying percentage of member
                                                   74           60            -           -
Scheme                                                                                                           employee’s salary
                                                                                                    Varying percentage of member
First State Superannuation Fund                    37           35            -           -
                                                                                                                 employee’s salary
                                                                                                    Varying percentage of member
Australian Superannuation Fund                     61           51            -           -
                                                                                                                 employee’s salary
                                                                                                    Varying percentage of member
Other Funds                                       190         170            1            -
                                                                                                                 employee’s salary
                                               2,095        1,516           77          61




Vision Super Superannuation Scheme and State Superannuation Fund are Defined Benefits funds. Any unfunded liability in
respect of Vision Super Superannuation Scheme is recognised in the financial statements of the Corporation. Any unfunded
liability in respect of State Superannuation Board New Scheme is recognised in the financial statements of the State
Government of Victoria. The Corporation makes employer contributions to these defined benefit funds at rates determined
by the Trustees on the advice of the Fund’s Actuaries.

The other funds are Accumulation funds. No further liability accrues to the employer for those funds as the superannuation
benefits accruing to the employees are represented by their share of the net assets of the funds.

As at the reporting date there were no loans to or from the Corporation to any of the above funds.

The Vision Super Superannuation Scheme Defined Benefit Plan is a multi-employer sponsored plan. As the Plan’s assets and
liabilities are pooled and are not allocated by employer, the Actuary is unable to reliably allocate benefit liabilities, assets and
costs between employers. As provided under Paragraph 32 (b) of AASB 119, the Corporation does not use defined benefit
accounting for these contributions.
 92     Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      The Corporation makes employer contributions to the defined benefit category of the Fund at rates determined by the
      Trustee on the advice of the Fund’s Actuary. On the basis of the results of the most recent full actuarial investigation
      conducted by the Fund’s Actuary as at 31 December 2008, the Corporation makes the following contributions:

      •	 9.25% of members’ salaries (same as previous year);

      •	 the difference between resignation and retrenchment benefits paid to any retrenched employees, plus contribution
         tax (same as previous year).

      The Fund surplus or deficit (i.e. the difference between fund assets and liabilities) is calculated differently for funding purposes
      (i.e. calculating required contributions) and for the calculation of accrued benefits as required in AAS 25 to provide the values
      needed for the AASB 119 disclosure in the Corporation’s financial statements. AAS 25 requires that the present value of the
      defined benefit liability to be calculated based on benefits that have accrued in respect of membership of the plan up to
      the measurement date, with no allowance for future benefits that may accrue. Following an actuarial review conducted by
      the Trustee in late 2010, as at 31 December 2008, a funding shortfall of $71 million for the Fund was determined. A call to
      Employers for additional contributions was made for the financial year 30 June 2011 with commitment from Employers from
      1 July 2011. A further actuarial review will be undertaken as at 31 December 2011 by mid-2012. Based on the result of this
      review, a detailed funding plan will be developed and implemented to achieve the target of full funding by 31 December
      2013. The Corporation will be notified of any additional required contributions by late 2012.

      accounting Standard disclosure
      The Fund’s liability for accrued benefits was determined by the Actuary at 31 December 2008 pursuant to the requirements of
      Australian Accounting Standard AAS25 as follows:

                                                                                                                           31 dEC 2008
                                                                                                                                 $’000


      Net Market Value of Assets                                                                                               3,630,432
      Accrued Benefits                                                                                                         3,616,422
      Difference between Assets and Accrued Benefits                                                                               14,010
      Vested Benefits (Minimum sum which must be paid to members when they leave the fund)                                     3,561,588


      The financial assumptions used to calculate the Accrued Benefits for the defined benefit category of the Fund were:
      Net Investment Return                                                                                                    8.50% p.a.
      Salary Inflation                                                                                                         4.25% p.a.
      Price Inflation                                                                                                          2.75% p.a.




      28. contingent liabilities and contingent Assets
      At balance date, the Corporation is not aware of any material Contingent Liabilities or Contingent Assets not recorded or
      disclosed in the accounts.
                                                                Goulburn valley water 2010| 2011 annual report     93




notes to the FInAncIAl stAtements

                                                                                               2011         2010
                                                                                nOTES         $’000        $’000



29. capital and other commitments


Capital Commitments
Commitments for the acquisition of Property, Plant and Equipment
contracted for at the reporting date, but not recognised as liabilities,
payable:

Within one year                                                                               5,782        5,032

                                                                                              5,782        5,032



Other Commitments
The Corporation is committed to making Environmental Contributions
as per the Water Industry (Environmental Contributions) Act 2004 (see
Note 1(c)). The commitments for the Corporation’s contribution to the
consolidated fund at the reporting date, but not recognised as liabilities,
are as follows:

Within one year                                                                               1,915        1,915

One to two years                                                                                  -        1,915

                                                                                              1,915        3,830



These commitments will be met by revenue raised in those periods.
 94         Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      30. responsible Persons and executive officers of the corporation
      i.      responsible Persons
      The names of persons holding the position of Responsible Person of the Goulburn Valley Region Water Corporation during
      the financial year were:

      The Hon. Timothy Holding MP         Minister for Water (i july, 2010 to 1 december, 2010)
      The Hon. Peter Walsh MP             Minister for Water (2 december, 2010 to 30 june, 2011)
      M. Lawlor                           Chair
      C.L. Scott                          deputy Chair
      M. Hall                             director
      D.W. Flett                          director
      B. Nicholls                         director
      S. O’Connor                         director
      D. McKenzie                         director
      P.A. Quinn                          Managing director
      B.P. Hammond                        acting Managing director (8 - 22 december, 2010)
      D. Hogan                            acting Managing director (16 September, 2010 to 1 October, 2010)


      ii.     remuneration of responsible Persons
      The numbers of Responsible Persons are shown below in their relevant income bands:

                                                                                   2011                                      2010
      inCOME BandS                                                                  nO.                                       nO.


      $20,000-$29,999                                                                  6                                            6
      $50,000-$59,999                                                                  1                                            1
      $240,000-$249,999                                                                 -                                           1
      $270,000-$279,999                                                                1                                            -




      The total remuneration of Responsible Persons including superannuation contributions and retirement benefits referred to in
      the above bands was $457,175 (2010: $433,742).

      The relevant amounts relating to Ministers are reported in the Annual Report of the Department of Premier and Cabinet.
      Other relevant interests are declared in the Register of Members’ Interest which each member of the Parliament completes.
                                                             Goulburn valley water 2010| 2011 annual report                    95




notes to the FInAncIAl stAtements

iii.    remuneration of Executives
The number of Executive Officers, other than Responsible Persons included under “Remuneration of Responsible Persons”
above, whose total remuneration exceeded $100,000 during the reporting period is shown below in their relevant income
bands:

                                                      TOTaL rEMunEraTiOn                       BaSE rEMunEraTiOn
                                                             2011                2010               2011               2010
inCOME BandS                                                  nO.                 nO.                nO.                nO.
$100,000 - $109,999                                              9                    8                9                   8
$110,000 - $119,999                                              6                    4                6                   3
$120,000 - $129,999                                               -                   2                 -                  2
$130,000 - $139,999                                              2                    4                5                   4
$140,000 - $149,999                                              4                    -                1                   -
$150,000 - $159,999                                               -                   1                 -                  2
$160,000 - $169,999                                               -                   -                1                   1
$170,000 - $179,999                                               -                   1                2                   -
$180,000 - $189,999                                              2                    1                 -                  -
$190,000 - $199,999                                              1                    -                 -                  -
Total numbers                                                   24                 21                 24                 20
Total remuneration                                     $3,052,485         $2,588,946           $2,999,804       $2,446,011




Base Remuneration excludes any bonus payments, long service leave, redundancy or retirement benefits paid to Executive
Officers.

iv.     Other Transactions of responsible Persons and their related Entities
Transactions between related parties are on normal commercial terms and conditions.

Land development
Companies in which Responsible Persons hold an interest, contract to Goulburn Valley Region Water Corporation for the
provision of land development works from time to time. The companies involved and the amount of works during the year
are listed below:

                                                                                                    2011               2010
COMPany                                        dirECTOr inVOLVEd                                       $                  $


Gowangardie Group Pty Ltd                      D. McKenzie                                        926,892                782
The Boulevard Corporation Pty Ltd              D. McKenzie                                        138,908           248,143

Other
D. McKenzie is a director of HMC Valuations Pty Ltd which provided property valuation services to the Corporation during the
year on normal terms and conditions. The aggregate amount for the year of these services is $2,145 (2010: $15,280).

There have been no related party transactions with the Minister during the reporting period.
 96        Goulburn valley water 2010| 2011 annual report




10 FinanCial StatementS
      notes to the FInAncIAl stAtements

      v.     retirement Benefits of responsible Persons
      There were no retirement benefits paid during the year by the Corporation in connection with the retirement of responsible
      persons of the Corporation.




      31. events occurring After Balance Date
      No matters or circumstances have arisen since the end of the reporting period which significantly affect or may significantly
      affect the operations of the Corporation, the results of those operations, or the state of affairs of the Corporation in future
      financial years.
                                                             Goulburn valley water 2010| 2011 annual report                   97




stAtUtory certIFIcAtIon

We certify the attached financial statements for Goulburn Valley Region Water Corporation have been prepared in
accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Australian Accounting Standards,
Interpretations and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Operating Statement, Statement of Comprehensive
Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes to and forming part of the financial
statements, presents fairly the financial transactions during the year ended 30 June 2011 and the financial position of the
Corporation as at 30 June 2011.

We are not aware of any circumstance which would render any particulars included in the financial statements to be
misleading or inaccurate.




Signed on behalf of the Corporation




M. G. Lawlor                           P. A. Quinn                            G. D. Jolly

Chairman                               Managing director                      General Manager – Financial Services



24 August 2011
 100   Goulburn valley water 2010| 2011 annual report




11 noteS
   & appenDiCeS
        DIsclosUre InDex

        ministerial Directions
        report of Operations – Frd Guidance
        LEGiSLaTiOn       rEQuirEMEnT                                                                PaGE rEFErEnCE


        Charter and purpose
        FRD 22B           Manner of establishment and the relevant Ministers                                      5
        FRD 22B           Objectives, functions, powers and duties                                             2-10
        FRD 22B           Nature and range of services provided                                                   5


        Management and structure
        FRD 22B           Organisational structure                                                               33


        Financial and other information
        FRD 10            Disclosure index                                                                      100
        FRD 12A           Disclosure of major contracts                                                          47
        FRD 15B           Executive officer disclosures                                                          95
        FRD 22B           Operational and budgetary objectives and performance against objectives              6-10
        FRD 22B           Employment and conduct principles                                                      36
        FRD 22B           Occupational health and safety policy                                                  39
        FRD 22B           Summary of the financial results for the year                                          46
        FRD 22B           Significant changes in financial position during the year                              47
        FRD 22B           Major changes or factors affecting performance                                         47
        FRD 22B           Subsequent events                                                                      96
        FRD 22B           Application and operation of Freedom of Information Act 1982                           47
        FRD 22B           Compliance with building and maintenance provisions of Building Act 1993               47
        FRD 22B           Statement on National Competition Policy                                               48
        FRD 22B           Application and operation of the Whistleblowers Protection Act 2001                    49
        FRD 22B           Details of consultancies over $100 000                                                 47
        FRD 22B           Details of consultancies under $100 000                                                47
        FRD 22B           Statement of availability of other information                                         48
        FRD 25            Victorian Industry Participation Policy disclosures                                    49
        FRD 27B           Presentation and reporting of performance information                               50-56
        FRD 29            Workforce Data disclosures                                                             36
        FRD 30A           Standard requirements for the design and print of the annual report                    All
        FRD 121           Infrastructure Assets (Water/Rail)                                                     28
        SD 4.5.5          Risk management compliance attestation                                                 49
        SD 4.2(g)         General information requirements                                                      2-5
        SD 4.2(j)         Sign-off requirements                                                               56, 97
                                                          Goulburn valley water 2010| 2011 annual report                  101




DIsclosUre InDex Cont.

Ministerial reporting directions
MRD 01              Performance Reporting                                                                        50-56
MRD 02              Reporting on water consumption and drought response                                          24-26
MRD 03              Environmental and social sustainability reporting                                            11-18
                    Disclosure of information on bulk entitlements, transfers of water entitlements,
MRD 04                                                                                                           18-23
                    allocations and licences, irrigation water usage and licence requirements
MRD 05              Annual reporting of non-residential major water users                                        26-27


Financial Statements
Financial statements required under Part 7 of the FMa
SD4.2(a)            Statement of Changes in Equity                                                                  62
SD4.2(b)            Operating Statement                                                                             60
SD4.2(b)            Balance Sheet                                                                                   61
SD4.2(b)            Cash Flow Statement                                                                             63


Other requirements under Standing directions 4.2
                    Compliance with Australian accounting standards and other authoritative
SD4.2(c)                                                                                                     64, 72-73
                    pronouncements
SD4.2(c)            Compliance with Ministerial Directions                                                          64
SD4.2(d)            Rounding of amounts                                                                             64
SD4.2(c)            Accountable officer’s declaration                                                               97
SD4.2(f)            Compliance with Model Financial Report                                                          All


Other disclosures as required by Frds in notes to the financial statements
FRD 03A             Accounting for Dividends                                                                        71
FRD17A              Long service leave wage inflation and discount rates                                        71, 86
FRD 21A             Responsible person and executive officer disclosures                                         94-95
FRD 102             Inventories                                                                                 61, 81
FRD 103D            Non current physical assets                                                           61, 80, 82-84
FRD 105A            Borrowing costs                                                                             60, 78
FRD 106             Impairment of assets                                                                            69
FRD 110             Cash flow statements                                                                        63, 88
FRD 112C            Defined benefit superannuation obligations                                                   91-92
                    Financial Instruments – General Government Entities and public non financial
FRD 114A                                                                                                  74-75, 89-90
                    corporations
FRD 119             Contributions by owners                                                                     61, 87
                    Accounting and reporting pronouncements applicable from 2010/11 reporting
FRD 120                                                                                                          72-73
                    period
FRD 121             Infrastructure assets                                                              61, 67-69, 82-83


Legislation
Freedom of Information Act 1982                                                                                     47
Building Act 1993                                                                                                   47
Whistleblowers Protection Act 2001                                                                                  49
Victorian Industry Participation Policy Act 2003                                                                    49
Financial Management Act 1994                                                                                       64
102   Goulburn valley water 2010| 2011 annual report




       appenDix: 1

       WhIstleBloWers ProtectIon PolIcy & ProceDUres

       table of contents
       1    Statement of support to whistleblowers                             103

       2    Purpose of these procedures                                        103

       3    Objects of the act                                                 103

       4    Definitions of key terms                                           103

       5    The reporting system                                               104

       6    Roles and responsibilities                                         105

       7    Confidentiality                                                    107

       8    Collating and publishing statistics                                107

       9    Receiving and assessing disclosures                                108

       10   Investigations                                                     109

       11   Action taken after an investigation                                112

       12   Managing the welfare of the whistleblower                          113

       13   Management of the person against whom a disclosure has been made   115

       14   Criminal offences                                                  116

       15   Review                                                             116
                                                         Goulburn valley water 2010| 2011 annual report             103




WhIstleBloWers ProtectIon PolIcy & ProceDUres Cont.

1.    statement of support to whistleblowers
Goulburn Valley Water (GVW) is committed to the aims and objectives of the Whistleblowers Protection Act
2001 (Act). It does not tolerate improper conduct by its employees, officers or members, nor the taking of
reprisals against those who come forward to disclose such conduct.

GVW recognises the value of transparency and accountability in its administrative and management
practices, and supports the making of disclosures that reveal corrupt conduct, conduct involving a substantial
mismanagement of public resources, or conduct involving a substantial risk to public health and safety or the
environment.

GVW will take all reasonable steps to protect people who make such disclosures from any detrimental action
in reprisal for making the disclosures. It will also afford natural justice to any person who is the subject of a
disclosure.


2.    Purpose of these procedures
These procedures establish a system for reporting disclosures of improper conduct or detrimental action
by GVW or its employees. The system enables such disclosures to be made to the protected disclosure
coordinator. Disclosures may be made by employees or by members of the public.

These procedures are designed to complement normal communication channels between supervisors and
employees. Employees are encouraged to continue to raise appropriate matters with their supervisors at any
time. As an alternative, employees may make a disclosure of improper conduct or detrimental action under the
Act in accordance with these procedures.


3.    objects of the act
The Act commenced operation on 1 January 2002. The purpose of the Act is to encourage and facilitate the
making of disclosures of improper conduct by public officers and public bodies. The Act provides protection
to whistleblowers who make disclosures in accordance with the Act, and establishes a system for the matters
disclosed to be investigated and rectifying action to be taken.


4.    Definitions of key terms
Three key concepts in the reporting system are improper conduct, corrupt conduct and detrimental action.
Definitions of these terms are set out below. In applying these definitions to GVW, it should be noted that GVW
is a public body and employees of GVW are public officials for the purposes of the Act.

4.1   improper conduct

      A disclosure may be made about improper conduct by a public body or public official. Improper conduct
      means conduct that is:

      4.1.1    corrupt;

      4.1.2    a substantial mismanagement of public resources; or

      4.1.3    conduct involving substantial risk to public health or safety or to the environment.
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       appenDix: 1

       WhIstleBloWers ProtectIon PolIcy & ProceDUres
             The conduct must be serious enough to constitute, if proved, a criminal offence or reasonable grounds
             for dismissal.

       4.2   Corrupt conduct

             Corrupt conduct means:

             4.2.1   conduct of any person (whether or not a public official) that adversely affects the honest
                     performance of a public officer’s or public body’s functions;

             4.2.2   the performance of a public officer’s functions dishonestly or with inappropriate partiality;

             4.2.3   conduct of a public officer, former public officer or a public body that amounts to a breach of
                     public trust;

             4.2.4   conduct by a public officer, former public officer or a public body that amounts to the misuse of
                     information or material acquired in the course of the performance of their official functions; or

             4.2.5   a conspiracy or attempt to engage in the above conduct.

       4.3   detrimental action

             The Act makes it an offence for a person to take detrimental action against a person in reprisal for
             making a protected disclosure. Detrimental action includes:

             4.3.1   action causing injury, loss or damage;

             4.3.2   intimidation or harassment; and

             4.3.3   discrimination, disadvantage or adverse treatment in relation to a person’s employment, career,
                     profession, trade or business, including the taking of disciplinary action.


       5.    the reporting system
       5.1   Contact persons within GVW

             Disclosures of improper conduct or detrimental action by GVW or its employees may be made to the
             following officers:

             5.1.1   Protected disclosure coordinator
                     Mr Danny Hogan
                     General Manager - Corporate Services
                     104-110 Fryers Street
                     Shepparton, Victoria 3632
                     Internet: www.gvwater.vic.gov.au
                     Email: dannyh@gvwater.vic.gov.au
                     Tel: 03 5832 0442
                     Fax: 03 5832 0491
                                                        Goulburn valley water 2010| 2011 annual report              105




WhIstleBloWers ProtectIon PolIcy & ProceDUres Cont.
      All correspondence, telephone calls and e-mails from internal or external whistleblowers will be referred
      to the protected disclosure coordinator.

      Where a person is contemplating making a disclosure and is concerned about approaching the protected
      disclosure coordinator in the workplace, he or she can call the relevant officer and request a meeting in a
      discreet location away from the workplace.

5.2   alternative contact persons

      A disclosure about improper conduct or detrimental action by GVW or its employees may also be made
      directly to the Ombudsman:

      The Ombudsman Victoria
      Level 22, 459 Collins Street
      Melbourne Victoria 3000
      (DX 210174)
      Internet: www.ombudsman.vic.gov.au
      Email: ombudvic@ombudsman.vic.gov.au
      Tel: 03 9613 6222
      Toll Free: 1800 806 314


6.    roles and responsibilities
6.1   Employees

      Employees are encouraged to report known or suspected incidents of improper conduct or detrimental
      action in accordance with these procedures.

      All employees of GVW have an important role to play in supporting those who have made a legitimate
      disclosure. They must refrain from any activity that is, or could be perceived to be, victimisation or
      harassment of a person who makes a disclosure. Furthermore, they should protect and maintain the
      confidentiality of a person they know or suspect to have made a disclosure.

6.2   Protected disclosure coordinator

      The protected disclosure coordinator will:

      6.2.1   be a contact point for general advice about the operation of the Act for any person wishing to
              make a disclosure about improper conduct or detrimental action;

      6.2.2   receive all telephone calls, e-mails and letters from members of the public or employees seeking
              to make a disclosure made orally or in writing (from internal and external whistleblowers);

      6.2.3   make arrangements for a disclosure to be made privately and discreetly and, if necessary, away
              from the workplace;

      6.2.4   commit to writing any disclosure made orally;
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       WhIstleBloWers ProtectIon PolIcy & ProceDUres
             6.2.5   impartially assess the allegation and determine whether it is a protected disclosure made in
                     accordance with Part 2 of the Act (see paragraph 9.1 below)

             6.2.6   if the disclosure has been determined to be a protected disclosure made in accordance with
                     Part 2 of the Act, impartially assess it to determine whether it is a public interest disclosure (see
                     paragraph 9.2 below);

             6.2.7   refer all public interest disclosures to the Ombudsman;

             6.2.8   be responsible for carrying out, or appointing an investigator to carry out, an investigation
                     referred to GVW by the Ombudsman;

             6.2.9   be responsible for overseeing and coordinating an investigation where an investigator has been
                     appointed;

             6.2.10 appoint a welfare manager (see paragraph 6.4 below) to support the whistleblower and to
                     protect him or her from any reprisals;

             6.2.11 advise the whistleblower of the progress of an investigation into the disclosed matter;

             6.2.12 establish and manage a confidential filing system;

             6.2.13 collate and publish statistics on disclosures made;

             6.2.14 take all necessary steps to ensure the identity of the whistleblower and the identity of the person
                     who is the subject of the disclosure are kept confidential; and

             6.2.15 liaise with the chief executive officer of GVW.

       6.3   investigator

             The investigator will be responsible for carrying out an internal investigation into a disclosure where the
             Ombudsman has referred a matter to GVW. An investigator may be a person from within GVW or a
             consultant engaged for that purpose.

       6.4   Welfare manager

             The welfare manager is responsible for looking after the general welfare of the whistleblower. The
             welfare manager will:

             6.4.1   examine the immediate welfare and protection needs of a whistleblower who has made a
                     disclosure and seek to foster a supportive work environment;

             6.4.2   advise the whistleblower of the legislative and administrative protections available to him or her;

             6.4.3   listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for
                     making disclosure; and

             6.4.4   ensure that the expectations of the whistleblower are realistic.
                                                         Goulburn valley water 2010| 2011 annual report               107




WhIstleBloWers ProtectIon PolIcy & ProceDUres Cont.

7.    confidentiality
GVW will take all reasonable steps to conceal the identity of the whistleblower. Maintaining confidentiality is
crucial in ensuring that reprisals are not made against a whistleblower.

The Act requires any person who receives information due to the handling or investigation of a protected
disclosure not to disclose that information except in certain limited circumstances. Disclosure of information in
breach of section 22 of the Act constitutes an offence that is punishable by a maximum fine of 60 penalty units
($6,000) or six months imprisonment or both.

The circumstances in which a person may disclose information obtained about a protected disclosure include:

7.1   where exercising the functions of GVW under the Act;

7.2   when making a report or recommendation under the Act;

7.3   when publishing statistics in the annual report of GVW; and

7.4   in criminal proceedings for certain offences in the Act.

However, the Act prohibits the inclusion of particulars in any report or recommendation that is likely to lead to
the identification of the whistleblower. The Act also prohibits the identification of the person who is the subject
of the disclosure in any particulars included in an annual report.

GVW will ensure that all files, whether paper or electronic, are kept in a secure room and can only be accessed
by the protected disclosure coordinator, the investigator or welfare manager (in relation to welfare matters).
All printed material will be kept in files that are clearly marked as a “whistleblower matter”, and warn of the
criminal penalties that apply to any unauthorised divulging information concerning a protected disclosure. All
electronic files will be produced and stored on a stand-alone computer and be given password protection.
Backup files will be kept on floppy disc. All materials relevant to an investigation, such as tapes from
interviews, will also be stored securely with the whistleblower files.

GVW will not email documents relevant to a “whistleblower matter” and will ensure that all telephone calls and
meetings are conducted in private.


8.    collating and publishing statistics
The protected disclosure coordinator will establish a secure register to record the information required to be
published in the annual report, and generally to keep account of the status of whistleblower disclosures. The
register will be confidential and will not record any information that may identify the whistleblower.

The register will contain the following information:

8.1   the number and types of disclosures made to GVW during the year;

8.2   the number of disclosures referred to the Ombudsman for determination as to whether they are public
      interest disclosures;

8.3   the number and types of disclosed matters referred to GVW by the Ombudsman for investigation;
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       appenDix: 1

       WhIstleBloWers ProtectIon PolIcy & ProceDUres
       8.4   the number and types of disclosures referred by GVW to the Ombudsman for investigation;

       8.5   the number and types of investigations taken over from GVW by the Ombudsman;

       8.6   the number of requests made by a whistleblower to the Ombudsman to take over an investigation from
             GVW;

       8.7   the number and types of disclosed matters that GVW has declined to investigate;

       8.8   the number and types of disclosed matters that were substantiated upon investigation and the action
             taken on completion of the investigation; and

       8.9   any recommendations made by the Ombudsman that relate to GVW.


       9. receiving and assessing disclosures
       9.1   has the disclosure been made in accordance with Part 2 of the act?

             Where a disclosure has been received by the protected disclosure coordinator or, he or she will assess
             whether the disclosure has been made in accordance with Part 2 of the Act and is, therefore, a protected
             disclosure.

             9.1.1   has the disclosure been made to the appropriate person?

                     For the disclosure to be responded to by GVW, it must concern an employee or officer of GVW.
                     If the disclosure concerns an employee or officer of another public body, the person who has
                     made the disclosure must be advised of the correct person or body to whom the disclosure
                     should be directed under the Act. If the disclosure has been made anonymously, it should be
                     referred to the Ombudsman.

             9.1.2   does the disclosure contain the essential elements of a protected disclosure?

                     A disclosure is a protected disclosure if:

                     a. a natural person (that is, an individual person rather than a corporation) makes the disclosure;

                     b. the disclosure relates to conduct of GVW or an employee or officer of GVW acting in their
                           official capacity;

                     c. the disclosure of either improper conduct or detrimental action taken against a person in
                           reprisal for making a protected disclosure; and

                     d. the person making the disclosure has reasonable grounds for believing the alleged conduct
                           has occurred.

             Where a disclosure is assessed to be a protected disclosure, it must be referred to the protected
             disclosure coordinator. The protected disclosure coordinator will determine whether the disclosure is a
             public interest disclosure.

             Where a disclosure is assessed not to be a protected disclosure, the matter does not need to be dealt
             with under the Act. The protected disclosure coordinator will decide how best to respond to the matter.
                                                        Goulburn valley water 2010| 2011 annual report               109




WhIstleBloWers ProtectIon PolIcy & ProceDUres Cont.
9.2   is the disclosure a public interest disclosure?

      Where the protected disclosure coordinator has received a disclosure that has been assessed to be
      a protected disclosure, he or she will determine whether the disclosure amounts to a public interest
      disclosure. This assessment will be made within 45 days of the receipt of the disclosure.

      In reaching a conclusion as to whether a protected disclosure is a public interest disclosure, the protected
      disclosure coordinator will consider whether the disclosure shows, or tends to show, that the public
      officer to whom the disclosure relates:

      9.2.1   has engaged, is engaging or proposes to engage in improper conduct in his or her capacity as
              a public officer; or

      9.2.2   has taken, is taking or proposes to take detrimental action in reprisal for the making of the
              protected disclosure.

      Where the protected disclosure coordinator concludes that the disclosure amounts to a public interest
      disclosure, he or she must:

      9.2.3   notify the person who made the disclosure of that conclusion; and

      9.2.4   refer the disclosure to the Ombudsman for formal determination as to whether it is indeed a
              public interest disclosure.

      Where the protected disclosure coordinator concludes that the disclosure is not a public interest
      disclosure, he or she must:

      9.2.5   notify the person who made the disclosure of that conclusion; and

      9.2.6   advise that person that he or she may request GVW to refer the disclosure to the Ombudsman
              for a formal determination as to whether the disclosure is a public interest disclosure, and that
              this request must be made within 28 days of the notification.

      In either case, the protected disclosure coordinator must make the notification and the referral within 14
      days of the conclusion being reached by GVW. Notification to the whistleblower is not necessary where
      the disclosure has been made anonymously.


10. Investigations
10.1 introduction

      Where the Ombudsman refers a protected disclosure to the GVW for investigation, the protected
      disclosure coordinator will appoint an investigator to carry out the investigation.

      The objectives of an investigation will be:

      10.1.1 to collate information relating to the allegation as quickly as possible. This may involve taking
              steps to protect or preserve documents, materials and equipment;
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            10.1.2 to consider the information collected and to draw conclusions objectively and impartially;

            10.1.3 to maintain procedural fairness in the treatment of witnesses and the person who is the subject
                    of the disclosure; and

            10.1.4 to make recommendations arising from the conclusions drawn concerning remedial or other
                    appropriate action.

       10.2 Terms of reference

            Before commencing an investigation, the protected disclosure coordinator must draw up terms of
            reference and obtain authorisation for those terms from the chief executive officer of GVW. The terms
            of reference will set a date by which the investigation report is to be concluded, and will describe the
            resources available to the investigator to complete the investigation within the time set. The protected
            disclosure coordinator may approve, if reasonable, an extension of time requested by the investigator.
            The terms of reference will require the investigator to make regular reports to the protected disclosure
            coordinator who, in turn, must keep the Ombudsman informed of general progress.

       10.3 investigation Plan

            The investigator will prepare an investigation plan for approval by the protected disclosure coordinator.
            The plan will list the issues to be substantiated and describe the avenue of inquiry. It will address:

            10.3.1 what is being alleged;

            10.3.2 what are the possible findings or offences;

            10.3.3 what are the facts in issue;

            10.3.4 how the inquiry is to be conducted; and

            10.3.5 what resources are required.

            At the commencement of the investigation, the whistleblower will be:

            10.3.6 notified by the investigator that he or she has been appointed to conduct the investigation;

            10.3.7 asked to clarify any matters; and

            10.3.8 asked to provide any additional material he or she might have.

            The investigator must be sensitive to the whistleblower’s possible fear of reprisals and be aware of the
            statutory protections available to the whistleblower.

       10.4 natural justice

            The principles of natural justice will be followed in any investigation of a public interest disclosure. The
            principles of natural justice concern procedural fairness and ensure that a fair decision is reached by an
            objective decision maker. Maintaining procedural fairness protects the rights of individuals and enhances
            public confidence in the process.
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WhIstleBloWers ProtectIon PolIcy & ProceDUres Cont.
     GVW will have regard to the following issues in ensuring procedural fairness:

     10.4.1 the person who is the subject of the disclosure is entitled to know the allegations made against
             him or her and must be given the right to respond. (This does not mean that the person must
             be advised of the allegation as soon as the disclosure is received or the investigation has
             commenced);

     10.4.2 if the investigator is contemplating making a report adverse to the interests of any person, that
             person should be given the opportunity to put forward further material that may influence the
             outcome of the report and that person’s defence should be fairly set out in the report;

     10.4.3 all relevant parties to a matter should be heard and all submissions should be considered;

     10.4.4 a decision should not be made until all reasonable inquiries have been made;

     10.4.5 the investigator or any decision maker should not have a personal or direct interest in the matter
             being investigated;

     10.4.6 all proceedings should be carried out fairly and without bias. Care should also be taken to
             exclude perceived bias from the process; and

     10.4.7 the investigator should be impartial in assessing the credibility of the whistleblowers and
             any witnesses. Where appropriate, conclusions as to credibility should be included in the
             investigation report.

10.5 Conduct of the investigation

     The investigator will make contemporaneous notes of all discussions and telephone calls, and all
     interviews with witnesses must be taped. All information gathered in an investigation will be stored
     securely. Interviews will be conducted in private and the investigator must take all reasonable steps to
     protect the identity of the whistleblower. Where disclosure of the identity of the whistleblower cannot be
     avoided, due to the nature of the allegations, the investigator will warn the whistleblower and his or her
     welfare manager of this probability.

     It is in the discretion of the investigator to allow any witness to have legal or other representation
     or support during an interview. If a witness has a special need for legal representation or support,
     permission should be granted.

10.6 referral of an investigation to the Ombudsman

     The protected disclosure coordinator must make a decision regarding the referral of an investigation to
     the Ombudsman where, on the advice of the investigator:

     10.6.1 the investigation is being obstructed by, for example, the non-cooperation of key witnesses; or

     10.6.2 the investigation has revealed conduct that may constitute a criminal offence.
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       10.7 reporting requirements

            The protected disclosure coordinator must ensure that the whistleblower is kept regularly informed
            concerning the handling of a protected disclosure and an investigation.

            The protected disclosure coordinator must report to the Ombudsman about the progress of an
            investigation.

            Where the Ombudsman or the whistleblower requests information about the progress of an
            investigation, that information must be provided within 28 days of the date of the request.


       11. Action taken after an investigation
       11.1 investigator’s final report

            At the conclusion of the investigation, the investigator must submit a written report of his or her findings
            to the protected disclosure coordinator. The report will contain:

            11.1.1   the allegation/s;

            11.1.2 an account of all relevant information received and, if the investigator has rejected evidence as
                     being unreliable, the reasons for this opinion being formed;

            11.1.3 the conclusions reached and the basis for them; and

            11.1.4 any recommendations arising from the conclusions.

            Where the investigator has found that the conduct disclosed by the whistleblower has occurred,
            recommendations made by the investigator will include:

            11.1.5 the steps that need to be taken by GVW to prevent the conduct from continuing or occurring in
                     the future; and

            11.1.6 any action that should be taken by GVW to remedy any harm or loss arising from the conduct.
                     This action may include bringing disciplinary proceedings against the person responsible for the
                     conduct, and referring the matter to an appropriate authority for further consideration.

            The report should be accompanied by:

            11.1.7 the transcript or other record of any oral evidence taken, including tape recordings; and

            11.1.8 all documents, statements or other exhibits received by the officer and accepted as evidence
                     during the course of the investigation.

            Where the investigator’s report is to include an adverse comment against any person, that person must
            be given the opportunity to respond and his or her defence must be fairly included in the report.

            The report must not disclose particulars likely to lead to the identification of the whistleblower.
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WhIstleBloWers ProtectIon PolIcy & ProceDUres Cont.
11.2 action to be taken

     If the protected disclosure coordinator is satisfied that the investigation has found that the disclosed
     conduct has occurred, he or she should recommend to the chief executive officer the action that must
     be taken to prevent the conduct from continuing or occurring in the future. The protected disclosure
     coordinator may also recommend that action be taken to remedy any harm or loss arising from the
     conduct.

     The protected disclosure coordinator will provide a written report to the Minister for Environment and
     Conservation, the Ombudsman and the whistleblower setting out the findings of the investigation and
     any remedial steps taken.

     Where the investigation concludes that the disclosed conduct did not occur, the protected disclosure
     coordinator must report these findings to the Ombudsman and to the whistleblower.


12. managing the welfare of the whistleblower
12.1 Commitment to protecting whistleblowers

     GVW is committed to the protection of genuine whistleblowers against detrimental action taken in
     reprisal for the making of protected disclosures. The protected disclosure coordinator is responsible
     for ensuring that whistleblowers are protected from direct and indirect detrimental action, and that the
     culture of the workplace is supportive of protected disclosures being made.

     The protected disclosure coordinator will appoint a welfare manager (see paragraph 6.4) to all
     whistleblowers who have made a protected disclosure. The welfare manager will:

     12.1.1 examine the immediate welfare and protection needs of a whistleblower who has made a
             disclosure and, where the whistleblower is an employee, seek to foster a supportive work
             environment;

     12.1.2 advise the whistleblower of the legislative and administrative protections available to him or her;

     12.1.3 listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for
             making disclosure;

     12.1.4 keep a contemporaneous record of all aspects of the case management of the whistleblower
             including all contact and follow-up action; and

     12.1.5 ensure the expectations of the whistleblower are realistic.

     All employees should be advised that it is an offence for a person to take detrimental action in reprisal
     for a protected disclosure. The maximum penalty is a fine of 240 penalty units ($24,000) or two years
     imprisonment or both. The taking of detrimental action in breach of this provision can also be grounds
     for making a disclosure under the Act and can result in an investigation.
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            Detrimental action includes:

            12.1.6 causing injury, loss or damage;

            12.1.7 intimidation or harassment; and

            12.1.8 discrimination, disadvantage or adverse treatment in relation to a person’s employment, career,
                    profession, trade or business (including the taking of disciplinary action).

       12.2 keeping the whistleblower informed

            The protected disclosure coordinator must ensure that the whistleblower is kept informed of action taken
            in relation to his or her disclosure, and the time frames that apply. The whistleblower should be informed
            of the objectives of an investigation, the findings of an investigation, and the steps taken by GVW to
            address any improper conduct that has been found to have occurred. The whistleblower should be given
            reasons for decisions made by GVW in relation to a protected disclosure.

       12.3 Occurrence of detrimental action

            If a whistleblower reports an incident of harassment, discrimination or adverse treatment that would
            amount to detrimental action taken in reprisal for the making of the disclosure, the welfare manager will:

            12.3.1 record details of the incident;

            12.3.2 advise the whistleblower of his or her rights under the Act; and

            12.3.3 advise the protected disclosure coordinator or chief executive officer of the detrimental action.

            The taking of detrimental action in reprisal for the making of a disclosure can be an offence against
            the Act as well as grounds for making a further disclosure. Where such detrimental action is reported,
            the protected disclosure coordinator will assess the report as a new disclosure under the Act. Where
            the protected disclosure coordinator is satisfied that the disclosure is a public interest disclosure, he or
            she will refer it to the Ombudsman. If the Ombudsman subsequently determines the matter to be a
            public interest disclosure, the Ombudsman may investigate the matter or refer it to another body for
            investigation as outlined in the Act.

       12.4 Whistleblowers implicated in improper conduct

            Where a person who makes a disclosure is implicated in misconduct, GVW must handle the disclosure
            and protect the whistleblower from reprisals in accordance with the Act, the Ombudsman’s Guidelines
            and these procedures. GVW acknowledges that the act of whistleblowing should not shield
            whistleblowers from the reasonable consequences flowing from any involvement in improper conduct.
            Section 17 of the Act specifically provides that a person’s liability for his or her own conduct is not
            affected by the person’s disclosure of that conduct under the Act. However, in some circumstances, an
            admission may be a mitigating factor when considering disciplinary or other action.
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WhIstleBloWers ProtectIon PolIcy & ProceDUres Cont.
      The chief executive officer of GVW will make the final decision on the advice of the protected disclosure
      coordinator as to whether disciplinary or other action will be taken against a whistleblower. Where
      disciplinary or other action relates to conduct that is the subject of the whistleblower’s disclosure, the
      disciplinary or other action will only be taken after the disclosed matter has been appropriately dealt
      with.

      In all cases where disciplinary or other action is being contemplated, the chief executive officer of GVW
      should be satisfied that it has been clearly demonstrated that:

      12.4.1 the intention to proceed with disciplinary action is not causally connected to the making of the
              disclosure (as opposed to the content of the disclosure or other available information);

      12.4.2 there are good and sufficient grounds that would fully justify action against any non-
              whistleblower in the same circumstances; and

      12.4.3 there are good and sufficient grounds that justify exercising any discretion to institute disciplinary
              or other action.

      The protected disclosure coordinator will thoroughly document the process including recording the
      reasons why the disciplinary or other action is being taken, and the reasons why the action is not in
      retribution for the making of the disclosure. The protected disclosure coordinator will clearly advise the
      whistleblower of the proposed action to be taken, and of any mitigating factors that have been taken
      into account.


13. management of the person against whom a disclosure has been made
GVW recognises that employees against whom disclosures are made must also be supported during the
handling and investigation of disclosures. GVW must take all reasonable steps to ensure the confidentiality
of the person who is the subject of the disclosure during the assessment and investigation process. Where
investigations do not substantiate disclosures, the fact that the investigation has been carried out, the results of
the investigation, and the identity of the person who is the subject of the disclosure will remain confidential.

The protected disclosure coordinator will ensure that the person who is the subject of any disclosure
investigated by or on behalf of GVW is:

13.1 informed as to the substance of the allegations;

13.2 given the opportunity to answer the allegations before a final decision is made;

13.3 informed as to the substance of any adverse comment that may be included in any report arising from
      the investigation; and
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       The defence of the person who is the subject of any disclosure should be set out fairly in any report.

       Where the allegations in a disclosure have been investigated, and the person who is the subject of the
       disclosure is aware of the allegations or the fact of the investigation, the protected disclosure coordinator will
       formally advise the person who is the subject of the disclosure of the outcome of the investigation.

       GVW will give its full support to a person who is the subject of a disclosure where the allegations contained in
       a disclosure are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, the chief executive
       officer of GVW will consider any request by that person to issue a statement of support setting out that the
       allegations were clearly wrong or unsubstantiated.


       14. criminal offences
       GVW will ensure that officers appointed to handle protected disclosures and all other employees are aware of
       the offences created by the Act set out below.

       14.1 It is an offence for a person to take detrimental action against a person in reprisal for a protected
             disclosure being made. The Act provides a maximum penalty of a fine of 240 penalty units ($24,000) or
             two years imprisonment or both.

       14.2 It is an offence for a person to divulge information obtained as a result of the handling or investigation of
             a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty
             units ($6,000) or six months imprisonment or both.

       14.3 It is an offence for a person to obstruct the Ombudsman in performing his responsibilities under the Act.
             The Act provides a maximum penalty of 240 penalty units ($24,000) or two years imprisonment or both.

       14.4 It is an offence for a person to knowingly provide false information under the Act with the intention that it
             be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units ($24,000) or
             two years imprisonment or both.


       15. review
       These procedures will be reviewed annually to ensure they meet the objectives of the Act and accord with the
       Ombudsman’s Guidelines.
             Shepparton Administration
104 - 110 Fryers Street, Shepparton, 3630
           PO Box 185, Shepparton, 3632
                                 DX 63036
                 Telephone: 03 5832 0400
                  Facsimile: 03 5831 1467
            Email: mail@gvwater.vic.gov.au
         Website: www.gvwater.vic.gov.au


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