2004 – 2005 annual report

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2004 – 2005 annual report Powered By Docstoc
Year in Review                          2
President’s Report                      4
MAV Board                               6
CEO’s Report                            8
MAV Governance                         10
Economic & Finance                     12
Environment                            14
General Projects                       16
Health & Human Services                18
Governance, Training & Relationships   21
Planning                               24
Transport & Infrastructure             26
Communications & Information           28
Human Resources                        29
MAV People                             30
Committees                             32
Financial Overview                     34
Guide to the Financials                36
Glossary                               38
Financial Report                       39

          PURPOSE To promote the
          efficient carrying out of
          municipal government throughout
          the state of Victoria and to
          watch over and protect the
          interests, rights and privileges
          of municipal corporations
          AIM To be a world class
          peak body for world class
          local government
          OBJECTIVE To be the
          representative and influential
          collective voice of local
year in                                                                    This was another year of concerted
                                                                           effort and significant achievement…

review                                                                     a year in which a raft of new services
                                                                           and programs were initiated and the
                                                                           effectiveness of existing initiatives
                                                                           was acknowledged with renewed

New Board settled and working well
Several changes to Board representation occured over the year.
Elections were held in August 2004 for a new President and in
September 2004 to fill the vacancy created by this appointment. The        R2R funding renewed and increased
February 2005 Board elections saw five new Board members elected           The MAV campaigned strongly throughout the year for renewal of
for two-year terms, and a further appointment in June 2005. The            the highly successful R2R program. The Association’s efforts were
new Board members have settled into their roles and are working            rewarded with an additional allocation of $1.35 billion per annum
well and productively towards common and specified goals.                  to roads nationally over next four years to 2008/09.

MAV/HACC program partnership a first                                       PERIN powers to be upgraded
The MAV’s Home and Community Care (HACC) campaign had a                    Significant progress was made during the year on the review of the
dual focus this year – to increase Federal and State Government            Penalty Enforcement by Registration of Infringement Notice (PERIN)
investment and to improve the efficiency and effectiveness of new          system. Having received an in-principle agreement from the State
and existing programs. A definite highlight for the year was the           Government, the MAV anticipates the introduction of a range of
brokering of a program partnership agreement with the Department           improved enforcement powers for the Sheriff’s office in late 2006.
of Human Services – the first time such an agreement on planning,
policy and provision of HACC services had been achieved.
                                                                           Local ECO-Buy program attracts
                                                                           international award
Massive increase in immunisation funding                                   In recognition of the outstanding work undertaken to promote the
After a sustained and determined period of lobbying, the MAV was           purchase of environmentally-friendly products, the innovative local
successful in obtaining State Government funding of an additional $1.3     government ECO-Buy green purchasing program attracted a range
million per annum for delivery of immunisation services. This represents   of awards during the year, including the United Nations World
a significant increase of almost 50 percent on current funding.            Environment Day Award.
                                                                         MAV takes the lead in wise water
Safeguarding the financial sustainability                                Now in its third year, the MAV’s Clearwater program is widely
of local government                                                      recognised as a leader in the delivery of professional development
In September 2004 the Federal Government announced the                   programs. In 2004/05, Clearwater conducted a range of innovative
abolition of the National Competition Policy (NCP) payments to State     education and training programs which addressed the issue of
Governments. In response, the MAV stepped up its campaign to             sustainable urban stormwater management. The programs were
ensure that local government retained access to incentive payments.      attended by every council in Victoria.
Throughout the year the MAV also continued to advocate, through
the Australian Local Government Association, on behalf of Victorian      MAV only local government body
councils to negotiate an Intergovernmental Agreement. Through this       to receive Australian Financial
process, the MAV’s aim is to reduce the cost burden increasingly         Services Licence
borne by local government on behalf of the Federal and State             In April 2005, Australian Securities and Investment Commission
Governments. The Agreement is currently being produced for               (ASIC) granted MAV an Australian Financial Services Licence (AFSL).
consideration at the Local Government and Planning Ministers’
                                                                         The licence entitles the MAV to provide public liability and fidelity
Council in March 2006.
                                                                         insurance services and to operate as an independent insurance business
The position adopted by the MAV has national support across all          on an equal commercial basis with general insurance organisations.
local government associations.
                                                                         Conferences and training programs
Ensuring the best possible outcomes for                                  delivered on multiple fronts
Melbourne 2030                                                           The MAV hosted a number of successful conferences and delivered a
This year the MAV’s Melbourne 2030 focus was on the key issues of        range of professional development training programs and special-
public transport and infrastructure funding, consistency of advice and   purpose policy forums during the year. These included the Asset
support from DSE and the State Government, and better                    Management Conference, the Future of Local Government Summit,
communication to build community understanding and ownership of          the Councillor Development Weekend, the Councillor Fundamentals
the Melbourne 2030 framework.                                            Development Program and, of course, the MAV Annual Conference.
                                                                                                                            MAV ANNUAL REPORT 2004/5   3
                               “…strong organisations don’t balk in
                               the face of change. They embrace it,
                               taking the opportunity to review, then
                               improve their performance.”
                               Whichever way you look at it, 2004/05 was a challenging year for
                               the MAV. But strong organisations don’t baulk in the face of change.
                               They embrace it, taking the opportunity to review, then improve their
                               performance. And if this year taught us anything, it’s that the MAV is
                               both strong and resilient.
                               We not only experienced changes to the Board, but to our staffing
                               structure. This resulted in an eventual increase in staff numbers,
                               including the first-time appointment of a Director of Policy and
                               Programs and new staff working on programs for water, volunteering
                               and Melbourne 2030. We also experienced a baby boom, with three
                               key staff members taking maternity leave.
                                                                         Throughout the year, the MAV has taken a leading role in improving
                                                                         local government practices and lowering costs and risks on a range
                                                                         of fronts, including IT, community volunteering, rural and urban
                                                                         water management, indigenous affairs, programs for youth and the
                                                                         unemployed, maternal and child health, disability access and
                                                                         inclusion, and planning – both in rural Victoria and in relation to
Our focus, as outlined in the Strategic Direction document adopted       Melbourne 2030.
in May 2005 by State Council, was to improve accessibility and
                                                                         This has been achieved through the development of new – and
strengthen our links to member councils. We did this in a carefully
                                                                         the refinement of existing – policies and strategies, and supported
planned, three-stage process.
                                                                         by the hosting of ongoing professional development programs for
The first step was to undertake a systematic review into the way we      councillors and staff.
collect and collate information. We then hit the road to hear, first
                                                                         2005/06 will see the MAV working on a united front with member
hand, the views of councils throughout the state, and to receive their
                                                                         councils to deliver the goals set out in the Strategic Plan. The Board
feedback on the issues they face on a daily basis. Finally, we set in
                                                                         has already commissioned a comprehensive review of the structure,
train the processes needed to work collaboratively and effectively to
                                                                         roles and Rules of the MAV. Following consultation and feedback
achieve positive outcomes for the sector as a whole, to share
                                                                         from member councils, an options paper will be circulated early in
information, and to build our networks.
                                                                         the New Year, with resulting amendments to be taken to State
In November 2004 I was elected Vice President of the Australian          Council for debate and resolution in 2006.
Local Government Association. This presents the MAV and Victorian
                                                                         Work is also underway to address existing and anticipated work force
councils with an opportunity to have our interests heard in the
                                                                         challenges confronting the sector, to negotiate on behalf of Victorian
national arena, and to ensure that the peak body responsible for
                                                                         councils – through the ALGA – for an acceptable Intergovernmental
local government in Australia is well positioned and informed to
                                                                         Agreement, and to meet our ongoing commitment to lobby for a
advocate for our interests. At a time when the Federal Government
                                                                         better funding deal for local government.
has telegraphed its intention to build a positive relationship with
local government nationally, there has never been a better time to       My thanks to the MAV CEO, Board and staff for their continued
assume such an influential position within the executive of the          support, commitment and hard work during the year. I would also
national local government organisation.                                  like to thank Victorian member councils for supporting us over the
                                                                         past 12 months, for providing the essential information, data and
Back in Victoria, significant progress was made on a range of
                                                                         advice which enables the MAV to develop robust positions and
important programs aimed at building the capacity of member
                                                                         advocate for better outcomes from all levels of government.
councils to grow and thrive within the current social, economic and
political environment.                                                   GEOFF LAKE PRESIDENT
                                                                                                                            MAV ANNUAL REPORT 2004/5   5
AS AT 30 JUNE 2005             CR GEOFF LAKE                               CR JENNY DALE                              CR SAM ALESSI
                               Monash City Council                         Indigo Shire Council                       Whittlesea City Council
                               MAV PRESIDENT                               DEPUTY PRESIDENT MAV                       MAV Board Representative Interface
                               Councillor Monash City Council 2000 to      MAV Board Representative Rural North       Region. Councillor Whittlesea City
                               current. Mayor Monash City Council          East Region. Councillor Indigo Shire       Council 1997 to current. Mayor
                               2002-03 and 2003-04.                        Council 1997 to current. Mayor Indigo      Whittlesea City Council 1997-98,
                                                                           Shire Council 1997-99 and 2003-04.         2000-01, 2004-05. Chair MAV Transport
                                                                           Deputy Mayor Indigo Shire Council          and Infrastructure Advisory Group.
                                                                           1999-00. Board Member Australian Local     Member MAV Library Working Party.
                                                                           Government Association (ALGA). State       Chair City of Whittlesea Responsible
                                                                           President Australian Local Government      Gaming Forum. Council Representative
                                                                           Women's Association-Victorian Branch       Whittlesea Community Connections
                                                                           (ALGWA). Advisory Board Member La          Committee of Management. Board
                                                                           Trobe University. Councillor La Trobe      Member Yarra Plenty Regional Library
                                                                           University. Member Roads Corporation       Services Board of Directors.
                                                                           Advisory Board. Board Member Victorian     Representative Whittlesea YMCA Board
                                                                           Association of Health and Extended Care.   of Directors. Council Representative
                                                                           Awarded to State Government Honor Roll     Interface Councils Group.
                                                                           of Victorian Women 2005.

                               BOARD MEMBERS NOT PICTURED                  CR JOSEPH CUTRI                            CR ROD FYFFE
                               WHO HELD OFFICE IN 2004-05                  Maribyrnong City Council                   Greater Bendigo City Council
                               RAE PERRY                                   MAV Board Representative Metro West        MAV Board Representative Rural North
                               Board Member Metropolitan Central Region    Region. Councillor Maribyrnong City        Central Region. Councillor Greater
                                                                           Council 1997 to current. Mayor             Bendigo City Council 1996 to current.
                               JULIE EISENBISE                             Maribyrnong City Council 2001-02,          Mayor City of Greater Bendigo 2003-05.
                               Board Member Metropolitan Region            2004-05. Chair MAV Humans Services         Member MAV Insurance Committee. Chair
                               JIM RYAN                                    Portfolio Committee. Member                MAV Library Working Party. Member State
                                                                           Braybrook/Maidstone Public Housing         Library Public Libraries Advisory
                               Board Member Rural South West Region        Redevelopment. Member Maribyrnong          Committee. Member Ministerial Advisory
                               CHRIS PAPAS                                 Pool Planning Committee.                   Council on Libraries. Chair Regional Cities
                                                                                                                      Victoria. Chair Central Victorian
                               Board Member Metropolitan Western Region
                                                                                                                      Greenhouse Alliance. Member Bendigo
                               GEOFF DAVEY                                                                            Easter Festival Committee. Member
                               Board Member Rural Gippsland Region                                                    Bendigo Mining Environmental Trust.

                               CLARE O’NEIL
                               Board Member Metropolitan Southern Region

CR JEFF AMOS                                  CR DARRYL ARGALL                           CR JOHN BRUCE                                     CR JOHN CHANDLER
Wellington Shire Council                      Hindmarsh Shire Council                    Manningham City Council                           Stonnington City Council
MAV Board Representative Gippsland            MAV Board Representative of Rural          MAV Board Representative Metro East               MAV Board Representative Metro South
Region. Councillor Wellington Shire           North West Region. Councillor              Region. Councillor Manningham City                East Region. Councillor Stonnington City
Council 2003 to current. Mayor Wellington     Hindmarsh Shire Council 1997 to current.   Council 1997 to current. Mayor                    Council 1996 to current. Mayor
Shire Council 2004-05. Deputy Mayor           Mayor Hindmarsh Shire Council 1997-99      Manningham City Council 2002-03.                  Stonnington City Council 1996-97. Chair
Wellington Shire Council 2005-06. Member      and 2004-05. Chair MAV Strategic           Member MAV Economics & Finance Advisory           MAV Economics and Finance Advisory
MAV Professional Development Reference        Environment Advisory Group. Member         Group. Member MAV Melbourne 2030                  Group. Member MAV Audit Committee.
Group. Life Member Apex Australia.            North West Municipalities Association.     Reference Group. Member MAV Planning              Member Australian Building Codes Board
Secretary Yarram Country Club Bowls.          Member Wimmera Catchment                   Advisory Group. Member Good Governance            (ABCB). Member ABCB Building Access
Executive Member Yarram Genealogy             Management Authority (WCMA) Board.         Advisory Group. Member Royal Australian           Policy Committee. Member ABCB Energy
Group Inc. Council Representative Timber      Member WCMA Communication                  Planning Institute. Member Australian Institute   Efficiency Steering Committee.
Towns Victoria. Member Tarra Festival         Committee. Member Gerang Landcare          of Company Directors. Vice President
Organising Committee. Member Victorian        Group. Member Hindmarsh Landcare           Stormwater Industry Association Victoria.
Institute of Teaching. Member West            Network. Member Gerang Fire Brigade.       Chair Melbourne Valley of the Arts Tourism
Gippsland Catchment Management                                                           Marketing Board. Council Representative
Authority Community Consultative                                                         Department of Infrastructure North East
Committee. Member WGCMA Biodiversity                                                     Integrated Transport Strategy.
Portfolio Group.

CR DICK GROSS                                 CR BRENDA HAMPSON                          CR NAIM MELHEM                                    CR MAX O’SHEA
Port Phillip City Council                     Moyne Shire Council                        Greater Dandenong                                 Hepburn Shire Council
MAV Board Representative Metro Inner          MAV Board Representative Rural South       City Council                                      MAV Board Representative Rural South
Region. Councillor City of Port Phillip       West Region. Councillor Moyne Shire        MAV Board Representative Metro                    Central Region. Councillor Hepburn Shire
1996 to current. Mayor City of Port Phillip   Council 1999 to current. Mayor Moyne       Southern Region. Councillor Greater               Council 1997 to current. Mayor Hepburn
1998-2000. Member MAV Insurance               Shire Council 2002-05. Board member        Dandenong City Council 1997 to current.           Shire Council 1998-2001. Chair MAV
Committee. Chair City of Port Phillip         South West Sports Assembly. Member         Mayor Greater Dandenong City Council              Planning Advisory Group. Chair MAV
Statutory Planning Committee. Member          Deakin University Reference Group          1999-00. Board Member Southern Health.            Professional Development Reference
Towards Zero Waste Advisory Committee.        Warrnambool Campus. Chair Barwon           Member Audit Committee Southern                   Group. Member MAV/VicRoads Liaison
Vice President Association of Waste           South West Regional Drug and Alcohol       Health. Board Member Antiochan                    Group. Member Daylesford Secondary
Management Groups of Victoria. Deputy         Coalition. Chair Mortlake Community        Orthodox Christian Archdiocese of                 School Council. Chair Central Highlands
Chair Western Region Waste Management         Development Committee. Assistant           Australia and New Zealand.                        Regional Library Corporation.
Committee. Member St Kilda Edge               Secretary Deakin University Football/
Committee. Member Metropolitan                Netball Club. Chair South West Regional
Transport Forum.                              Transport Taskforce.

                                                                                                                                                      MAV ANNUAL REPORT 2004/5   7
                               “2004/05 was the year we stopped
                               momentarily, looked at where we’ve
                               been, mapped out where we’re
                               heading, and made sure everything
                               was in place… to continue
                               representing the interests of local
                               After several years consolidating our position as the peak local
                               government body in Victoria, 2004/05 was the year we stopped
                               momentarily, looked at where we’ve been, mapped out where we’re
                               heading, and made sure everything was in place – a strong
                               organisational structure, efficient systems and professional staff – to
                               continue representing the interests of local government in the most
                               effective way.
                                                                         Sustained lobbying at both State and Federal levels resulted in
                                                                         several wins for local government in the areas of community care,
                                                                         immunisation, road funding and financial sustainability. We
                                                                         successfully argued for and gained an additional $1.3 million
                                                                         per annum for the delivery of immunisation services, and got
                                                                         the final sign-off on the Home and Community Care (HACC)
                                                                         program partnership agreement – a first in the area of planning,
                                                                         policy and provision of HACC services. We campaigned strongly
                                                                         for the renewal of the highly successful Roads to Recovery (R2R)
                                                                         program which also resulted in the allocation of a further
                                                                         $1.35 billion nationally to roads over the next four years. And as
                                                                         part of the ongoing review of the Penalty Enforcement by Registration
                                                                         of Infringement Notice (PERIN) system, we obtained an in-principle
                                                                         agreement from the State Government to introduce a range of
                                                                         improved enforcement powers for the Sheriff’s office in 2005.
                                                                         Always keeping one step ahead of the game by identifying the issues
                                                                         that will impact on the Victorian community and therefore local
                                                                         government, we instigated or contributed to a range of reviews and
                                                                         studies. This year we particularly turned our attention to the areas of
                                                                         transport, planning and infrastructure, producing several important
                                                                         strategy and issues papers for discussion at all levels of government.
2004/05 was also a year of great upheaval and change. In the
                                                                         We continue to work closely with councils to support them in dealing
wake of Cr Brad Matheson’s highly publicised resignation, we
                                                                         with current issues as well as identifying those that will potentially be
experienced two presidential elections, a Board by-election in late
                                                                         the issues of the future. One of the many important areas we have
2004, and the biennial Board election in February 2005. We also
                                                                         paid a great deal of attention to in recent years is environmental
saw significant movement of key MAV staff – three went on maternity
                                                                         management. So it is with great pleasure that our work in local
leave, one was seconded to work for the Department of Premier and
                                                                         government green purchasing through the ECO-Buy program was
Cabinet, and another left to work with the State Government.
                                                                         again recognised by several awards including the United Nations
Each of these changes was necessarily accompanied by a period            World Environment Day Award.
of adjustment, where the organisation forged new relationships,
                                                                         Our efforts too in the area of insurance for local government have
created new partnerships, and accommodated new visions and
                                                                         also been strong this year. We registered an overall surplus of
directions. No mean task! I’m happy to say, however, that despite
                                                                         $10.1 million for MAV insurance, as well as locking in a
all this, we made significant progress on a range of important
                                                                         favourable reinsurance agreement that makes the most of the
issues during the year.
                                                                         benefits of tort reform.
One of our major achievements was undoubtedly the granting of the
                                                                         But none of this would have been possible without the
Australian Financial Services Licence by ASIC in April 2005. The
                                                                         commitment and hard work of the MAV Board and the wonderful
licence is crucial in that it legitimises MAV’s right to operate as an
                                                                         people who make up our staff. Their energy and innovation on
independent insurance business – on an equal commercial basis
                                                                         numerous projects not only ensures that local government has a
with general insurance organisations – to provide public liability and
                                                                         strong voice where it counts, but is able to carry out its work
fidelity insurance services. The fact that the MAV is the only
                                                                         efficiently and effectively.
government organisation to be granted the licence is something we
are particularly proud of.                                               ROB SPENCE CEO
                                                                                                                              MAV ANNUAL REPORT 2004/5   9
MAV governance
Structure and accountabilities
A range of structures and accountabilities defined in legislation, rules and   2005, the Board determined not to hold a by-election to fill these
protocols, governs the way the MAV operates and makes decisions.               vacancies.
Municipal Association Act 1907                                                 In the February 2005 Board elections, five new Board members were
The Act established the MAV as a corporation. It requires the MAV to           elected for a two-year term.
provide a public liability scheme for local government, and                    A final change occurred in May 2005 with Cr O’Neil resigning her
empowers it to provide fidelity insurance for the sector.                      position. A by-election was conducted in the Metropolitan Southern
The Act defines the purpose of the MAV as being to promote the                 Region, with Cr Naim Melhem elected uncontested in June 2005.
efficient carrying out of municipal government throughout the state
                                                                               New advisory committee structure
of Victoria and watch over and protect the interests, rights and
                                                                               In 2004/05, the MAV Board reviewed its advisory structures,
privileges of municipal corporations.
                                                                               confirmed existing roles, and established a number of new
The MAV Rules                                                                  committees in recognition of the breadth and complexity of the
Approved by Governor in Council, the MAV Rules outline the role,               issues confronting local government and member councils’ needs. As
function and operation of the Association, its State Council and               well as providing advice to the Board, the new structure assists in the
Management Board.                                                              development of policies and strategies and provides networking and
                                                                               development opportunities to councils. Each committee is chaired by
State Council                                                                  a Board member who is accountable for keeping the Board
State Council meets twice yearly and is comprised of a representative          informed of committee activities and recommendations.
(councillor) of each financial member council of the MAV. State
                                                                               MAV advisory committees
Council elects the MAV Board of Management, sets the strategic
                                                                                · Human Services Portfolio Committee
direction of the Association, and appoints the MAV auditor.
                                                                           · Strategic Environment Advisory Group
MAV Management Board                                                       · Planning Advisory Group
In accordance with the Rules of the MAV, the Management Board is
                                                                           · Economics and Finance Advisory Group
comprised of 12 members, each elected by a geographic region.
The 13th member, the MAV President, is elected at large. The Board         · Strategic Transport and Infrastructure Group
has responsibility for the conduct of the affairs of the Association. It   · Professional Development Reference Group.
is responsible for setting the budget and subscription levels, defining
the detail of the policy and strategy direction of the MAV, and          MAV Strategic Plan
appointing the CEO who, in turn, is responsible for day-to-day           Planning and reporting cycle
management of the Association.                                                              Janaury           February/
                                                                                                 Issues identification        March
Board changes                                                                                    and data collation          Regional
During the 2004/05 reporting period, there was significant change to                               undertaken by            meetings with
                                                                                                     MAV staff              membership
the MAV Management Board. In June 2004, the then President, Brad                 November                                                            April
Matheson, resigned. Deputy President, Jenny Dale, was appointed by             State Council –                                                    MAV Board
                                                                               report back to                                                   strategy session
the Board to act in the capacity of Acting President until the                    members
Presidential election was conducted. The MAV membership elected                                                                   May
existing Board member, Cr Geoff Lake as President in August 2004.                                     October                 State Council
                                                                                                   Annual report on          adoption of work
A by-election for the Metropolitan Southern Region was then held to                                 achievements                 plan by
fill the vacancy created by Cr Lake’s appointment as President. Cr
Clare O’Neil from Greater Dandenong was elected to fill the                    The planning and reporting cycle outlines the process undertaken
position in September 2004.                                                    annually by the MAV. As a result of Board elections occurring in
                                                                               February, this process was delayed in 2005. Consequently, regional
Council elections held in November 2004 also impacted on the
                                                                               meetings usually held in February and March occurred in March and
Board. Cr Rae Perry was unsuccessful in her bid for a further term as
                                                                               April, the Board workshop was held in May, and the work plan was
councillor and was therefore ineligible to continue as a Board
                                                                               sent out for consideration by State Council just prior to its meeting.
representative, and Cr Jim Ryan did not recontest his council’s
election. Cr Julie Eisenbise resigned from the Board in December               In 2006 normal timing will be followed to ensure adequate time for councils
2004. With the biennial Board elections due to be held in February             to consider the draft work plan prior to its adoption at State Council.
                                                                                                Board allowances
                                                                                                In accordance with the MAV Board Expense and Allowance Policy,
                                                                                                Board members receive an annual allowance paid quarterly in
                                                                                                advance, and are able to claim for out-of-pocket expenses for travel,
                                                                                                parking, accommodation and meals.

                                                                                                Board allowances for 2004/05 were as follows
                                                                                                  · President $46,500
Review of MAV Rules                                                                                · Deputy President $9,750
In response to a State Council request, the Board undertook to
                                                                                                   · Board member $6,500.
conduct a comprehensive review of MAV Rules. This process has
commenced and it is anticipated that redrafted Rules will be                                    Allowance and expense payments made to Board members in
presented to a State Council in 2006 for approval.                                              2004/05
                                                                                                                          Annual            Travel and/          Accommodation TOTAL
                                                                                                                          Allowance         or parking           and meals
Risk management
                                                                                                Sam Alessi                     $6,500              $605                    -     $7,105
To further improve the management of risks, the Board appointed
                                                                                                Jeff Amos                      $2,167         $339.16 1              $440.46       $2,946.62
an audit committee comprised of an independent chair, two                                       Darryl Argall                  $6,500       $7,081.762             $3,607.90 $17,189.66
independent members and two Board members. The committee                                        John Bruce                     $2,167                     -                    -         $2,167
has commenced work on risk identification and the development                                   John Chandler                  $6,500           $384.4                         -   $6,884.40
of a work plan.                                                                                 Joseph Cutri                    $2,167                    -                    -         $2,167
                                                                                                Jenny Dale               $17,442.313        $5007.604              $1,860.72 $24,310.63
At the May 2005 State Council meeting, following recommendation
                                                                                                Geoff Davey                    $4,333         $936.92                $479.50       $5,749.42
from the MAV Board, it was resolved that expressions of interest be
                                                                                                Julie Eisenbise                $3,250                     -                    -         $3,250
called for the external auditor. It was considered timely that this                             Rod Fyffe                      $6,500       $4,190.70                          - $10,690.70
appointment be reviewed. A recommendation is planned for the                                    Dick Gross                     $2,167                     -                    -         $2,167
October State Council.                                                                          Brenda Hampson                  $2,167                    -                    -         $2,167
                                                                                                Geoff Lake                $40,048.40        $1,272.88              $2544.24 $43,865.525
The MAV Insurance Committee continues to provide support and
                                                                                                Clare O’Neil                    $3,123                    -                    -         $3,123
advice to the MAV Board on the management of the public liability
                                                                                                Max O’Shea                      $6,500      $2,699.04              $1,613.35 $10,812.39
and fidelity insurance schemes. This committee is independently                                 Chris Papas                     $4,333      $1,052.84                          -   $5,385.84
chaired and, in addition to industry experts, comprises                                         Rae Perry                       $3,250      $1,325.756                 $1988       $6,563.77
representatives from local government and the MAV Board.                                        Jim Ryan                        $3,250                    -                    -         $3,250

Board meeting attendance                                                                        The above amounts do not correlate to the allowance and expense payments figures in
                                                                                                the financial statements as this includes some payments made to Board members for
                    July Aug Sept       Oct Nov Dec       Feb Mar April May June                expenses incurred in 2003/04 and claimed in 2004/05. Some expenses are also
Sam Alessi            ✔ ✔ ✘              ✘ ✔ ✔             ✔ ✔ ✔ ✔ ✔                            charged to other areas in the MAV accounts.
                                                                                                Payments were either made direct to Board members, to their council for travel where
Jeff Amos             -   -   -           -   -   -         -   ✔       ✔       ✔       ✔
                                                                                                they have utilised a council fleet vehicle, or directly to the hotel for some
Darryl Argall        ✔    ✔   ✔          ✔    ✔   ✔        ✔    ✔       ✔       ✔       ✔       accommodation expenses.
John Bruce            -   -   -          -    -   -         -    ✔      ✔           ✔       ✔   It should be noted that some Board members will lodge claims after 30 June 2005,
John Chandler        ✔    ✔   ✘          ✔    ✔   ✔        ✔    ✔       ✔       ✔       ✔       details of which will be reflected in the 2005/06 annual report.
Joseph Cutri          -   -   -          -    -   -         -    ✔      ✔           ✘       ✔   1 Payment made to Wellington Shire Council for travel expenses
Jenny Dale           ✔    ✔   ✔          ✔    ✘   ✔        ✔    ✔       ✔       ✔       ✔       2 Paid to Hindmarsh Shire Council for use of council vehicle
Geoff Davey5         ✔    ✘   ✔          ✔    ✔   ✘        ✔    -       -       -       -       3 Includes component of Presidential allowance while Acting President, as well as
                                                                                                   allowance for Deputy President
Julie Eisenbise 4    ✔    ✔   ✔          ✔    ✔   ✔         -   -       -       -       -
                                                                                                4 Includes payments made to Indigo Shire Council for use of council vehicle
Rod Fyffe            ✔    ✔   ✔          ✔    ✔   ✘        ✔    ✘       ✔       ✔        ✔
                                                                                                5 As President, Geoff Lake is also provided with full private use of a motor vehicle at a
Dick Gross            -   -    -          -   -   -         -   ✔       ✔       ✔       ✘          cost in 2004/05 of $14,950.80 and mobile phone $3,059.77
Brenda Hampson - - -                     -    -   -         -    ✔      ✔           ✔       ✔   6 Includes travel to ALGA as MAV representative
Geoff Lake     ✘ ✔ ✔                     ✔    ✔   ✔        ✔    ✔       ✔       ✔       ✔
Clare O’Neil1 & 7     -   -         ✘    ✘    ✔   ✔        ✘    ✘       ✘                       Compliance
Max O’Shea           ✔    ✔   ✔          ✔    ✔   ✘        ✔    ✔       ✘       ✔       ✔       In addition to the requirements of the Municipal Association Act
Chris Papas6         ✔    ✔   ✔          ✔    ✘   ✔        ✘        -       -       -       -   1907 and its Rules, the MAV must comply with regulations and
Rae Perry2           ✔    ✔   ✔          ✘    ✔       -     -   -       -       -       -       obligations applicable to statutory and public bodies including the
Jim Ryan3            ✔    ✘   ✔          ✔    ✔       -     -   -       -       -       -       Information Privacy Act 2000, Whistleblowers Protection Act 2001
1     Term commenced September 2004                                                             and Freedom of Information Act 1982.
2&3 Term concluded November 2004
4    Resigned December 2004
                                                                                                The MAV has established policies and procedures with respect to
5&6 Term concluded February 2005                                                                legislative requirements. Staff are advised of these policies on
7     Resigned April 2005                                                                       induction, and copies are publicly available on the MAV website.
                                                                                                                                                              MAV ANNUAL REPORT 2004/5         11
economics & finance
The MAV’s economic and financial       Policy and Advocacy
                                       PERIN legislative reform imminent
focus is sharp, steady and             The review of the Penalty Enforcement by Registration of Infringement
singleminded. With its sights set on   Notice (PERIN) system continued during the year, with legislation now
a continually improving financial      anticipated for introduction in late 2005.
position for local government,         This marks a significant achievement for the MAV and local
the MAV assumes a responsible,         government. After what has been a long and hard-fought struggle, a
yet imaginative approach to            range of improved enforcement powers for the Sheriff’s office has
achieving better State and Federal     now been mooted by the State Government.
government funding, while              The MAV is continuing to advocate for a review of the VicRoads
supporting local government in the     database, and is liaising with the State Government on methods for
strategic use of existing resources.   improving the integrity of data used to locate offenders.
                                                                           Preparing for the introduction of water rates reform
                                                                           In response to the State Government’s decision to uncouple water
                                                                           value from property valuations from 30 June 2006, the MAV
                                                                           modelled the anticipated impact of the reforms.
                                                                           The conclusion of the modelling – that there is no solution available
                                                                           in the rating system that will provide a suitable outcome to all
                                                                           ratepayers – has been raised with the Department for Sustainability
                                                                           and Environment and the Department of Premier and Cabinet.
                                                                           The MAV is continuing to advocate for direct funding to enable
                                                                           councils with substantial portions of water-based rates to undertake
                                                                           reviews of rating strategies, and to implement the reforms equitably.

MAV appointed to MFES Board                                                Lobbying to negate impact of funding cutback
After intense lobbying, an MAV representative was appointed to the         In September 2004, the Federal Government announced the abolition
Metropolitan Fire and Emergency Services Board (MFESB) for the first       of National Competition Policy (NCP) payments to state governments
time in 2004.                                                              by 2006. As a result, incentive payments traditionally passed to
                                                                           Victorian councils are likely to cease, with significant adverse
As the voice of local government on the Board, the MAV was
                                                                           implications on the capacity of local government to deliver services.
instrumental in determining the strategic priorities of the MFESB,
highlighting the fact that continued increases in the fire services levy   The MAV is lobbying the Federal Government for a continued
was ultimately an impost borne by ratepayers. As a consequence, the        provision of NCP payments beyond 2006, and advocating for
increase was reduced for 2005/06.                                          ongoing local government access to incentive payments.

MAV exerts influence in federal arena
In the lead up to the 2004 Federal election, the MAV successfully          Capacity Building
campaigned for key local government concerns to be addressed.              Collaboration the key to enhancing council IT
These included community care, immunisation, road funding and              During the year, information technology has been a major MAV
financial sustainability.                                                  focus for supporting the efficiency of council business functions and
                                                                           enhancing competitiveness. Accordingly, the MAV IT&T Management
In response to MAV lobbying, the Federal Government renewed the
                                                                           Committee was established to coordinate statewide local
successful Roads to Recovery (R2R) program and announced a
                                                                           government IT initiatives and collaborative projects. Over 70
productivity commission inquiry into the ability of local government
                                                                           councils contributed to the process, resulting in lower participation
to source and obtain revenue. This will have considerable influence
                                                                           costs, reduced level of risk, and greater transparency.
on the financial sustainability of the sector.
During the year, the Federal Government also delivered a detailed          Getting ready for regional business growth
response to the Hawker Inquiry into cost shifting. The report              The MAV appointed financial services provider, Ernst & Young, to
recommends the introduction of an intergovernmental agreement              support a contract between the MAV and Minister for State and
specifying reallocation of responsibilities, improved processes and        Regional Development to promote the Regional Business Investment
efficiency at council level, and a review of revenue streams.              Ready program. The program provides regional municipalities with a
                                                                           financial advisory resource to assist with business case development
New electricity rating regime benefits councils                            for infrastructure projects and funding proposals.
After sustained lobbying by the MAV, a new rating regime was
introduced, providing affected councils with an increase of                Promoting volunteering in local communities
approximately 20 percent on the previous level of rates paid by            The MAV is taking a lead role in strengthening and sustaining
electricity generator businesses.                                          volunteer participation in local communities. In partnership with the
                                                                           Department for Victorian Communities, the MAV is coordinating
Valuation of Land Act review completed                                     delivery of the Local and Regional Resource Networks (LRRN) Project.
The MAV coordinated a sector-wide response to the review of the
Valuation of Land Act 1960. A number of issues were raised
including opposition to
                                                                           Future Directions
                                                                             · The Fire Services levy continues to be a key concern for both
  · the introduction of fees for objectors                                      the MAV and local government and will continue to be
  · the extension of the ‘highest and best use’ principles                      carefully monitored.
     underpinning site valuations                                            · With regard to the unbundling of water rights, the MAV will
  · the requirements placed on local government to issue multiple              continue to advocate for direct funding to enable affected
     rates notices to both tenants and property owners.                        councils to undertake reviews of rating strategies.
The MAV understands that all proposals objected to by the sector will        · Continued lobbying to ensure NCP payments to local
be abandoned.                                                                  government is ongoing.
                                                                                                                            MAV ANNUAL REPORT 2004/5   13
BREAKING NEW GROUND                 Policy and Advocacy
                                    Submission made on National Packaging Covenant
The MAV took the lead on key        This year the MAV, the Local Government Association of Queensland
environmental management issues     (LGAQ) and the Australian Local Government Association (ALGA) carried
this year. Always looking for the   out an independent review of the National Packaging Covenant (NPC).

most effective way to represent     The review found that local governments around Australia were
the interests of local government   critical of the NPC and would like to see a number of key reforms
and offer practical support,        to the Covenant.

the MAV participated in crucial     The MAV also made a submission to the Regulatory Impact
decision-making forums, initiated   Statement (RIS) on the NPC, identifying a number of serious
critical reviews and developed      concerns about the conclusions reached, and calling on the
                                    Environment Protection Council (EPC) to further investigate the
groundbreaking programs to          options presented. The MAV emphasised the need to ensure that
advance environmental               new NPC targets would not impose additional costs to local
management in Victoria.             government and ratepayers.
                                                                          With support from the MAV, the URL program achieved several
                                                                          significant milestones in 2004/05. These include an increase in the
Reviewing native vegetation management                                    program coordinator’s hours to three days, the participation of 27
In 2004/05, the MAV completed a 12-month study investigating the          schools (over 800 students) in the program, establishing key networking
challenges faced by local government in meeting its responsibilities      partnerships, and attracting sponsorship from Rural Finance Victoria.
for native vegetation management. A key issue was the capacity of
councils to administer increasingly complex native vegetation        Leading in sustainable urban water management
planning controls with few resources.                                The Clearwater program is jointly managed by the MAV and the
                                                                     Stormwater Industry Association of Victoria (SIAV), and is funded by
During the year the MAV also made submissions to both the State
                                                                     the Environment Protection Authority Victoria (EPA) through the
Government’s Native Vegetation Operational Guidelines and the
                                                                     Victorian Stormwater Action Program. It develops and delivers
Federal Government’s review of the National Framework for Native
                                                                     tailored education and training packages for local government and
Vegetation Management.
                                                                     industry professionals which address the sustainable management of
MAV signs sustainability accord                                      urban stormwater.
The MAV’s ongoing commitment to sustainable management of the             Now in its third year, Clearwater is widely recognised as a leader of
environment was reinforced this year with the signing of a Heads of       professional development programs for integrated urban water
Agreement to begin developing a local government sustainability           management.
accord between the State Government and councils.
                                                                          In 2004/05 Clearwater conducted a range of innovative education and
Improving waste management throughout Victoria                            training programs which were attended by every council in Victoria.
MAV and EcoRecycle Victoria established a liaison group to build
high-level relationships and improve understanding between the two        Managing risk through the MAV Smart Septics program
organisations.                                                            In partnership with the EPA and other organisations, the MAV developed
                                                                          the Smart Septics program to improve local government’s capacity to
The main focus of the group is to jointly promote issues relating to      address significant risks to the State’s waterways and public health.
waste avoidance, and improve resource recovery from the sector.
                                                                          In 2004/05, the program produced a package of new planning and
                                                                          management tools for councils. This package assists councils to
Capacity Building                                                         educate the community about best-practice management of
Award-winning ECO-Buy leads the country in green purchasing               household wastewater systems, provides guidance on managing
ECO-Buy, the innovative Victorian local government green                  wastewater system data, and sets out guidelines for managing
purchasing program, this year attracted recognition for its               household wastewater in areas where reticulated sewerage is not
outstanding work with local government promoting the purchase             currently a feasible option.
of environmentally friendly products from
                                                                          Beach cleaning subsidies for bayside councils
  · United Nations (Australia) World Environment Day Award
                                                                          Councils provide a vital service in maintaining safe, clean beaches
  · 2004 Premier’s Business Sustainability Award                          which is, in part, achieved with subsidies from the State Government.
  · Banksia Award 2005 – finalist.                                        In 2004/05, the MAV worked in partnership with the Association of
                                                                          Bayside Municipalities (ABM) to ensure all eligible councils received
The success of the ECO-Buy program is also reflected in the continuing
                                                                          the subsidy.
growth of its membership which now includes more than 75 percent of
councils. Victorian local government continues to lead the way on
environmental purchasing initiatives with expenditure on green products   Future Directions
increasing from $5.9 million in 2002 to $36.9 in 2004.                      · The MAV, with SIAV and EPA Victoria, will explore options to
                                                                               continue and expand the Clearwater program beyond the life
NRM facilitator appointed to work with local government                        of its current funding.
The MAV and the Federal Government appointed a Local
                                                                            · A partnership with DSE will provide funding for rural and
Government Natural Resource Management (NRM) facilitator in
                                                                               interface municipalities to develop Domestic Wastewater
Victoria as part of the new national Australian Government NRM
                                                                               Management Plans which complement the work of the Smart
Facilitators Network.
                                                                               Septics program.
The facilitator’s main task is to assist local government in the            · The MAV will continue its discussions with the State Government on
planning and implementation of its natural resource management                 future capacity of councils to administer native planning controls.
program, particularly initiatives supported by the Natural Heritage
                                                                            · The ECOBuy program will work with the Office of the
Trust and other Federal Government NRM programs.
                                                                              Commonwealth Games to support the establishment of green-
URL program achieves significant milestones                                   purchasing practices by the business sector.
The Urban Rural Links (URL) program, housed at the MAV, brings              · In 2005/06 an Australian/Indian school links pilot will be
together local government and primary schools from across Victoria             established as part of URL’s ongoing efforts in setting up
to share information about their community and environment.                    international school links.
                                                                                                                             MAV ANNUAL REPORT 2004/5   15
general projects
                                           Policy and Advocacy
                                           Financial Services Licence signed, sealed and delivered
                                           In a significant achievement for the year, the Australian Financial
                                           Services Licence was finalised. (For more detailed information see
ALL BASES COVERED                          the MAV Insurance Annual Report.)

The MAV takes a fiercely proactive         MAV initiates statewide insurance education program
stance to protect the interests and        Following State Government reform to insurance legislation, the
rights of local government, without        MAV initiated the Public Liability Insurance, Risk Management and
fear or favour. When the Association       Victorian Community Groups project. This project, which builds on
                                           existing forums conducted by the MAV and, aims
identifies an issue affecting councils –   to educate community organisations about the recent legislative
be it Indigenous rights, jobs for          changes, and improve understanding about the importance of
young people or bushfire                   adequate insurance and risk management. The project places
management – it takes decisive             particular emphasis on regional and rural areas.
action to address the issue now,           In line with the goal to educate and inform, the project distributed
for the benefit of the future.             newsletters to all municipalities and ran workshops across the state.
                                                                       Capacity Building
                                                                       Promoting local government involvement with Aboriginal
                                                                       As a strong supporter of reconciliation, the MAV is involved in a
                                                                       number of initiatives to ensure that local government structures,
                                                                       planning processes and services are relevant and accessible to
                                                                       Indigenous people. In 2004/05, the MAV coordinated two Indigenous
                                                                       committees – one that works with federal and state agencies, and
                                                                       another that provides networking opportunities within local government.
                                                                       The MAV provided feedback on discussion papers, produced by the
                                                                       Department of Sustainability and Environment (DSE), and Aboriginal
                                                                       Affairs Victoria, about local government involvement in preserving
                                                                       Aboriginal cultural heritage and the practical problems councils face
                                                                       in undertaking additional activities in this area.
                                                                       With the demise of the Aboriginal & Torres Strait Islander
                                                                       Commission (ATSIC), the MAV contacted the Office of Indigenous
                                                                       Policy Coordination – the new body in Victoria created by the
                                                                       Federal Government to replace ATSIC – and the State Government
                                                                       to explore the implications of the changes for local government.

                                                                       Working to create jobs for unemployed young people
                                                                       This year the State Government provided a second round of funding
                                                                       for the Jobs for Young People program. The MAV has continued to
                                                                       encourage councils to match skill shortages in the sector with local
                                                                       government traineeships and apprenticeships for unemployed young
                                                                       people. Councils are supportive of the principles of the program and
                                                                       welcome the opportunity to participate in the skill development of
                                                                       young people within their communities.

                                                                       Leading the way on the future of local government
                                                                       Almost 300 participants from Australia and overseas attended the
                                                                       inaugural Future of Local Government summit in Melbourne in June
                                                                       2005. Hosted by the MAV, this two-day summit featured local and
The final stage of the project saw the launch of a web-based risk      international speakers – from the United Kingdom, Europe, USA,
assessment program which allows community groups to assess their       Canada and New Zealand – who provided fascinating insights into
risk and receive advice on areas for improvement.                      local government trends around the world.
                                                                       An important outcome of the summit was the production of a draft
Fire refuge guidelines finalised
The MAV has been a key participant in the Fire Refuges Strategy        vision statement: ‘Local government is valued by all Australians for
Group which developed guidelines and standards for the provision       building strong and successful communities’.
of fire refuges. The document Fire Refuges – Policy and Practice was
                                                                       MAV hosts online demonstration conference
finalised during the year and, following ministerial approval, is
                                                                       In November 2004, the MAV hosted the fourth national Local
expected to be released later in 2005. Importantly the document
                                                                       Government Online Demonstration Conference. Held at
concludes that the refuges may not be the best community safety
                                                                       Melbourne’s Telstra Dome, the conference explored the potential
solution in all communities.
                                                                       that innovation in IT offers local government service delivery. An area
Ongoing participation in municipal fire management planning            of particular interest was the concept of shared services.
As part of its commitment to representing the interests of local
government, the MAV is actively involved in the Integrated Municipal   Future Directions
Fire Management Planning (IMFMP) Project. With funding provided          · After the release of the Fire Refuges – Policy and Practice
from the project, the MAV seconded the IMFMP Local Government               guidelines, the MAV in conjuction with the Office of the
Consultation and Communications Manager to ensure local                     Emergency Services Commissioner (OESC), will hold a series of
government’s views and interests are considered. The MAV also sits          information sessions for councils which currently have fire refuges.
on the Multi-Agency Reference Group for this project.
                                                                         · Following on from the Future of Local Government summit, the MAV
A discussion paper on integrated fire management planning will be           has established a working group to advance the outcomes and plan
released for comment by the IMFMP project team later in 2005.               for a 2006 summit.
                                                                                                                         MAV ANNUAL REPORT 2004/5   17
health & human services
                                READY FOR ACTION
                                With the announcement in April of a
                                new social action plan for A Fairer
                                Victoria, the State Government
                                quickly passed the baton to the MAV.
                                The Association has maintained its
                                early lead, providing the assistance
                                councils need to play their part in
                                addressing disadvantage and
                                creating opportunities within their
                                                                          Local government youth charter guides launched
                                                                          As a joint initiative of the MAV and RMIT University, two youth
                                                                          guides were produced for local government during the year –
                                                                          the Youth Charter Guide and Engaging Young People.

                                                                          Working towards an integrated statewide library system
                                                                          The MAV is continuing its work with councils to develop local
                                                                          government policy and a preferred funding position. As an important
                                                                          part of this process, the MAV is participating in ‘vision’ development
                                                                          for libraries through the Ministerial Advisory Council.
                                                                          In conjunction with relevant State departments and Viclink (the
Policy and Advocacy                                                       peak body for library professionals), work is continuing towards
Improving the efficiency and effectiveness of community care              the establishment of an integrated library system to improve access
Throughout 2004/05, the MAV’s community care campaign focused             and increased information technology capacity, particularly in
on two primary goals: to increase investment by Federal and State         rural libraries.
Governments, and to improve efficiency and effectiveness by
facilitating the integration of disparate programs.                       Close monitoring of proposed Health Act amendments
                                                                          In December 2004, the MAV responded to a discussion paper
Community Care for the Ageing campaign delivers results                   released by the Department of Human Services concerning a revised
As an active member of the Victorian Community Care Coalition             Health Act. As this review will have funding and capacity implications
(CCC), the MAV                                                            for local government and is likely to impose additional liabilities, the
                                                                          MAV is closely monitoring the range of new directions which emerge
  · participated in the national summit in 2004
                                                                          from the consultation process.
  · increased awareness amongst Victorian Federal MPs and
     election candidates of the valuable work of both paid and            MAV negotiates better deal for Tobacco Act enforcement
     unpaid carers via its federal election ‘call to parties’             On behalf of the State Government, the MAV again administered
  · generated 96 stories in Stage 1                                       service agreements with councils for their enforcement of the Tobacco
                                                                          Act 1987. In 2004/05, approximately $612,000 was distributed to
  · facilitated the hosting by councils of nine CCC regional forums
                                                                          77 councils and two statutory authorities to fund visits to tobacco
     in the second half of 2005.
                                                                          retailers and food outlets, presentations to educational institutions and
Statewide HACC program partnership breaks new ground                      test purchases aimed at preventing cigarette sales to minors.
The Home and Community Care (HACC) program partnership
                                                                          The MAV also negotiated a better deal for local government than
agreement negotiated by the MAV and the Department of Human
                                                                          initially considered by the State Government for enforcement of a
Services (DHS) was finalised and circulated to councils for comment.
                                                                          new raft of anti-smoking proposals announced in late 2004, and
This is the first time agreement between the State and local
                                                                          lobbied for additional tasks to be fully funded.
government has been achieved on planning, policy development
and provision of HACC services.                                           Lobbying delivers significant immunisation funding increase
The Home and Community Care food services review was                      As a result of a costing study initiated and undertaken by the MAV,
successfully launched in March 2005.                                      and subsequent lobbying for increased funding, the State
                                                                          Government agreed in January 2005 to provide an additional $1.3
OH&S guidelines drafted for home care industry                            million per annum to local government for immunisation service
In a project jointly managed by the MAV and the Victorian                 delivery – an increase of almost 50 percent on current funding.
Association of Health and Extended Care, draft Occupational Health
                                                                          During 2005 the MAV continued to lobby the Federal Government
& Safety (OH&S) guidelines were completed and circulated to all
                                                                          for acknowledgement of the efficient and universal service provided
stakeholders, including councils, in late 2004.
                                                                          by local government in Victoria. In particular, the MAV asked for
MAV takes the lead in childcare debate                                    Federal Government agreement to the introduction of a local
In April 2005, the MAV – in conjunction with Community Child Care –       government immunisation incentive scheme. The MAV also urged the
completed a discussion paper on the role of local government in           Australian Local Government Association (ALGA), newly appointed
supporting childcare. Undertaken in response to the challenges councils   as an observer member of the National Immunisation Committee, to
are currently facing in accommodating a growing demand for childcare,     lobby for such a scheme.
the MAV was successful in putting Victorian council concerns to the
                                                                          Working party reviews food safety legislation
Federal Minister for Family and Community Services.
                                                                          Responding to a request from the Department of Human Services
A key MAV achievement was obtaining the Department's agreement            (DHS), the MAV established a DHS/MAV food safety legislation
in the re-tendering process for the Children’s Services Resource and      working group in March 2005 to develop recommendations for
Redevelopment Officer as a regional program to fund successful            legislative reforms that would improve local government enforcement
councils individually under separate agreements with the Department.      of the Food Act 1984.
                                                                                                                             MAV ANNUAL REPORT 2004/5   19
Capacity Building
Targeting maternal and child health workforce issues
A project addressing recruitment and retention issues of maternal
and child health nurses commenced this year. The project focuses on
     · identifying priority areas (with an emphasis on raising the profile
        of maternal and child health nursing)
     · developing a coordinated approach to maximise service delivery
     · developing support mechanisms to retain maternal and child
        health nurses in local government
     · attracting maternal and child health students to local
        government employment.
Developing culturally responsive HACC services
In partnership with the State Government, the MAV is implementing
the Culturally Equitable Gateways Strategy (CEGS). The MAV is
working with CEGS-funded councils to support, resource and
enhance the capacity of HACC services to respond to the needs of
elderly people from culturally and linguistically diverse backgrounds.

Victorian councils first to complete MEYPs
Facilitated by the MAV, Victorian councils are the first in Australia to
have completed Municipal Early Years Plans (MEYPs). The model for
integrated planning for young children’s health, care and education
has been presented to government officials, community leaders and
policy makers at the state, national and international levels.
The MAV/DHS Annual Early Years Forum was held in April 2005
with an attendance of 180.
The MAV has successfully negotiated with DHS for continuation of
the MEYP project until June 2006.

MAV’s work on PCAC acknowledged
The report of the Premier’s Children’s Advisory Committee (PCAC)
was released in December 2004. The work of the MAV and councils
was recognised in the report, and its recommendations for policy
and service development relating to early childhood generally – and
Maternal and Child Health Services (MCHS) in particular – were
endorsed by the Premier.
                                                                             Future Directions
                                                                              · The next stage of the Community Care campaign will include
Improving disability access and inclusion                                        discussions with the Federal Minister for Ageing on the need for
The MAV is currently in the process of rolling out a three-year                  research into the relative decline in the dollar value of
strategy to assist local government’s capacity to improve access and             community care services, and development of best practice
participation of people with disabilities. This includes completion of           models. Presentations to State Government community cabinet
an MAV Disability Action Plan, representation on the Public Transport            meetings will also be facilitated.
Access Committee, the Round Table on Tourism, Sport, Recreation               · Discussions with the Minister and the Department of Family &
and Arts for people with a disability, and the Metro Access Advisory             Community Services will focus on childcare planning,
Committee (initiated by the MAV). It involves partnerships with all              maintenance of infrastructure and family day care, including
metropolitan and rural councils and with relevant disability services            council concerns that under the new Family Day Care (FDC)
including the Disability Advisory Council of Victoria.                           formula, financial support for FDC will decline in real terms.
20    MAV ANNUAL REPORT 2004/5
governance, training
& relationships
                                       Policy and Advocacy
PEOPLE MATTER                          MAV represents local government on electoral representation
The MAV knows that local               The MAV conducted initial research to examine the current process
government’s greatest asset is         and outcomes of electoral representation reviews, and wrote to the
its people – those who work within     Minister for Local Government expressing local government concern
                                       at the current electoral representation review process. Following a
the sector and those who govern.       resolution of the May 2005 State Council, the MAV will continue to
The Association understands the        advocate for councils to ensure they have adequate input into the
importance of attracting and           electoral structures set for their municipalities.
nurturing talent to ensure the long-
term vitality of local government,     Councillor remuneration discussion paper drafted
                                       Using the results from a survey of Victorian councillors, and an
and actively seeks ways to provide     extensive assessment of councillor and mayoral remuneration
opportunities for networking,          schemes overseas and interstate, the MAV prepared a draft discussion
training and employment.               paper on councillor and mayoral remuneration in Victoria.
                                                                                       MAV ANNUAL REPORT 2004/5   21
                                                                             Large attendance at MAV’s 2004 Councillor Development
                                                                             In July 2004, 110 elected representatives from 46 councils across
                                                                             Victoria came together for the MAV’s annual professional
                                                                             development weekend at the newly-developed Geelong Waterfront.
                                                                             Highlights of the program included the presentations of renowned
Capacity Building                                                            author, Arnold Zable who spoke about the power of narrative, and
Launch of new professional development program for new                       Melinda Muth, Professional Fellow at the Melbourne School of
councillors                                                                  Business, who explored the behavioural side of good governance.
In December 2004, the MAV launched the Councillor Fundamentals               The program also included a number of development workshops in
development program to assist new councillors gain the skills and            areas such as emotional intelligence, influencing and negotiating,
knowledge they need in the early months of their first term.                 and decision making.
The program consisted of four workshops covering financial                   Once again, a large number of delegates’ families attended the
management, planning, governance and media skills. The workshops             weekend. The MAV continues to encourage the participation of
provided a broad overview of each area and developed councillors’            families and partners in recognition of the significant role they play
skills and understanding of critical issues affecting local government.      supporting councillors in their demanding roles.
Offered in Melbourne and Camperdown, the workshops were                      Winner of 2004 Fellowship explores council role in forest
attended by newly-elected and more experienced councillors from              management
across the state.                                                            Cr Phil Millar from Hepburn Shire Council used this year’s $10,000
                                                                             Australia Post/MAV Fellowship research grant to examine local
Statewide graduate recruitment program expands
                                                                             government’s role in public forest management through participation
Now in its second year, the MAV’s graduate recruitment program,
                                                                             in community forest management (CFM). CFM is a newly-emerging
GoGrad, continued to build on the success of its first year.
                                                                             system for the management of forests that involves more active
In 2004/05, the program received over 200 applications for                   community input and participation through a collaborative decision
positions across metropolitan and rural Victoria – a significant             making and management approach.
increase on the previous year – and successfully recruited a number
                                                                             As part of his research, Cr Millar visited the USA and Canada to
of graduates for work in engineering, planning and public policy.
                                                                             investigate existing community-managed forest models of relevance
As part of a long-term plan to encourage greater representation of           to Australia. Cr Millar’s research will benefit councils involved in
talented young people in the sector – particularly in rural and              forestry activities and will have wider applications for councils
regional areas – the MAV actively sought opportunities to raise the          considering community involvement in a range of natural resource
profile of local government as a choice employer. In one of a series         management issues.
of marketing initiatives, the MAV invited council staff to attend
university careers fairs to pass on valuable first-hand knowledge, as        Annual Conference 2004 plans for the future
well as promote the diversity of roles available in local government.        The 2004 Conference attracted 240 delegates from councils across
                                                                             Victoria. Officially opened by The Hon John Thwaites, Minister for
Supporting new graduate recruits                                             Environment, Water and Victorian Communities, the conference
In 2004/05 the MAV developed GetSet, a new program to support                featured keynote speakers Dr Keith Suter, social commentator and
the latest group of GoGrad recruits. Following extensive consultation        author, and Professor Louise Rolland, Centre for Ageing and Work
with senior officers and specialist staff, eight workshops were              at Swinburne University. Both speakers focussed on the theme of
developed to build new graduates’ skill base and provide an                  planning for the future, identifying current demographic changes
understanding of the local government sector.                                and the challenges faced by local government.
Over 80 participants from 30 Victorian councils have so far attended         A new, and very popular, addition to the conference program this
one or more of the workshops, which will continue to be offered              year was the ‘Conversation’ sessions. Skilled facilitators and expert
throughout 2005.                                                             panellists led discussions on a range of topics including advocacy,
                                                                             demographics and rating strategies.
Tailored staff development programs increasingly popular
During the year, the MAV received an increasing number of requests           MAV celebrates 125 years at Annual Conference dinner
from local government for tailored staff learning and professional           Almost 400 delegates, partners and guests attended the Annual
development programs. One workshop, Understanding Local                      Conference dinner which this year formally celebrated the MAV’s
Government (developed for the GetSet program), has been                      125th anniversary.
particularly popular, attracting over 100 participants.
                                                                             To commemorate the occasion, each guest received a copy of The
Another program conducted across the state in 2003, was offered to all       Road to Municipal Leadership: Mapping the early years of the MAV ,
councils this year. With the significant support of the City of Casey, the   a short history produced especially for the anniversary. Guests were
Authorised Officers Program was conducted in four Victorian locations        also treated to a performance of a speech by one of the MAV’s
and attracted over 60 participants from 35 Victorian councils.               founding fathers, Allan McLean.
Newly-elected councillors welcomed to sector by MAV
The MAV’s President and the Minister for Local Government officially
welcomed newly-elected councillors at a cocktail party in February
2005. Coinciding with the completion of the first Councillor
Fundamentals workshops, this event was a good opportunity for new
councillors to start building relationships across the sector.

Working to attract more women to local government
The MAV is an active member of the Women’s Participation in Local
Government Coalition (WPILGC). In 2004/05, the coalition
established the Victorian Women’s Charter Awards. The coalition
also redeveloped its Women-Get-Elected workshop program with
funding from the Community Support Fund, and received secretariat
support from the Victorian Local Governance Association (VLGA).

Ongoing support for the Rural Councils Network
This year the MAV again provided secretariat support for the Rural
Councils Network to assist the 26 smallest Victorian councils.
                                                                      MAV pre-election information sessions well received
Formed as a cooperative grouping of councils, the network works
                                                                      In November 2004, 25 councils faced general elections. In
collectively to influence decision makers and tackle the long-term
                                                                      preparation for these elections, the MAV coordinated a series of
strategic challenges facing rural communities with small populations.
                                                                      evening sessions to provide prospective candidates with the
Good Governance Advisory Group (GGAG)                                 information needed to make a considered decision to nominate.
During the year, the GGAG assisted councils to respond to the           Nineteen information sessions were held across metropolitan and
range of legislative changes impacting on governance practices in       regional Victoria, and were all well attended. MAV staff chaired the
local government. This included meeting with representatives of key     sessions which involved a series of presentations from CEOs,
organisations such as the Victorian Electoral Commission (VEC) and      councillors and representatives of the VEC. Guest speakers were
advocating on behalf of the sector on key governance issues.            brought in from neighbouring councils to preserve impartiality.
In response to the requirement that all councils develop a code of
                                                                        Passing on knowledge and expertise to local community
conduct, GGAG prepared a minimalist code to assist councils in
developing their own. In addition, the GGAG obtained funding from
                                                                        In conjunction with, and with funding from the
the Department for Victorian Communities (DVC) to produce a
                                                                        Community Support Fund (CSF), the MAV began a series of seminars
publication that guides councils through the process of creating a
                                                                        – Secrets to Successful Boards and Committees – in June 2005. The
code of conduct. The publication will be completed towards the
                                                                        seminars were hosted by each of Victoria's 79 councils.
end of 2005.

Governance Officers Network                                             Future Directions
The Governance Officers Network met twice in 2004/05 to discuss           · The MAV will formulate a proposal to the State Government
the many governance challenges facing local government. Both                 outlining recommendations for the revision of the existing
sessions were well attended and featured guest speakers from the             councillor and mayoral remuneration framework. The proposal
VEC and Local Government Victoria. The group will continue to                will take into account the variety of councillor and mayoral
meet on a regular basis.                                                     duties across Victoria.
Governance support                                                        · Based on feedback received from participants, the Councillor
At the request of a large number of Victorian councils, the MAV              Fundamentals program will be further developed and offered in
provided various levels of governance support during the year. This          2006 following the next round of council elections. An
included offering advice and information to individual councillors           additional resource kit will also be developed to support new
and CEOs, as well as providing more formal support to 15 councils            councillors in their first months in office.
– through tailored workshops, developing performance review               · The GetSet learning and development program will be
frameworks and facilitating CEO performance reviews.                        redeveloped before being offered to all councils in 2006.
                                                                                                                        MAV ANNUAL REPORT 2004/5   23
                                BUILDING STRONG FOUNDATIONS
                                Protecting community and local
                                government interests is the MAV’s
                                number one priority. In its role of
                                interpreting and facilitating the
                                implementation of State Government
                                policy, the MAV always takes a
                                practical and professional approach.
                                It is strongly committed to assisting
                                councils in finding their way
                                through the complex and evolving
                                planning environment.
                                                                        Capacity Building
                                                                        Agreement guarantees universal internet access
                                                                        Working with the Wired Development Consortium councils and the
                                                                        Minister for Information and Communication Technology, the MAV
                                                                        developed a contract which ensures universal conduit access on new
                                                                        housing estates. This agreement provides metropolitan interface
                                                                        councils with an important tool for negotiating with housing
                                                                        developers where existing broadband infrastructure is not available.
                                                                        It will be used for the first time by VicUrban in the new Aurora
                                                                        housing estate.

                                                                        Making the most of Melbourne 2030
                                                                        The MAV continued to work with State and local government to
                                                                        ensure the best possible outcomes for Melbourne 2030. This year’s
                                                                        focus was on the key issues of public transport and infrastructure
Policy and Advocacy                                                     funding, consistency of advice and support from DSE and the State
Driving planning system reform                                          Government, and better communication to build community
Building on the improvements provided by the Better Decisions Faster    understanding and ownership of the Melbourne 2030 framework.
initiative, the MAV Planning Advisory Group (PAG) produced an           Significant achievements include
issues paper in May outlining further suggestions for fundamental
                                                                          · the appointment of a Melbourne 2030 liaison officer at the MAV
reform of the planning system. Distributed to local government
planning managers for comment, the suggestions were based on a            · development of capacity building programs through beacon
paper prepared by the Planning Institute of Australia in 2004, and           project identification
include recommendations for                                               · the participation of all 31 metropolitan and interface councils in
  · strengthening leadership in planning                                     the MAV Melbourne 2030 Councillor Reference Group and the
                                                                             Planning Technical Committee
  · bolstering the state planning policy framework
                                                                          · facilitation of training and information exchange
  · balancing state and local interests
                                                                          · hosting of high-level members’ forum resulting in an action plan
  · increasing emphasis on ecologically sustainable development
                                                                             for improved MAV advocacy and assistance to councils.
  · clarifying the role of the Department of Sustainability and
                                                                        Addressing the shortage of rural and regional planners
     Environment (DSE)
                                                                        Jobs for Young People offers paid work experience, training and
  · reviewing the Victorian planning provisions
                                                                        qualifications leading to sustainable employment. The MAV played an
  · recruitment and retention of planners.                              instrumental role in developing and adapting this program to address
Lobbying succeeds in streamlining developer contributions               the critical shortage of planners in regional and rural Victoria.
After a period of sustained lobbying by the MAV, the Developer
Contributions Bill was passed in December 2004. The amendments          Future Directions
to the Planning and Environment Act 1987 streamline the approach          · Following amendments to the Planning and Environment Act
to introducing developer contributions, while retaining crucial              1987, the MAV will continue to address concerns not currently
accountability measures.                                                     included in developer contribution schemes, and lobby to increase
                                                                             the amount of infrastructure revenue able to be generated.
Councils granted interim height controls
Responding to council concerns, the Minister for Planning                 · A comprehensive overhaul of the fee structure will be pursued
approached the MAV for assistance in resolving the issue of                  (working group comprising councils already established to
developers exploiting the objectives of Melbourne 2030. The                  conduct a review of planning fees).
overriding concern – that developers were applying for high-rise          · As part of the MAV annual budget submission, a memorandum
developments in activity centres where structure plans had not been          of understanding will be developed with the State Government
completed – was brought to a head when the City of Whitehorse                to assist in implementation and preparation of an annual
challenged a Victorian Civil and Administrative Tribunal (VCAT)              Melbourne 2030 priority statement for local government.
decision for a high-rise apartment building in Mitcham.                   · A further round of Melbourne 2030 forums will be hosted on
After intensive discussions with the Minister, the MAV was successful        structure planning, integrated transport planning and amenity
in brokering an agreement on height controls which has been                  and design.
embraced by both State and local government. Councils are now             · Following a change in State Government direction, the MAV will
able to introduce interim height controls in activity centres and            put forward proposals to support councils in the implementation
residential areas pending the finalisation of structure plans.               of the new rural zones.
                                                                                                                         MAV ANNUAL REPORT 2004/5   25
transport & infrastructure
                                MAKING THE RIGHT CONNECTIONS
                                In a year that saw a major shift in
                                focus – from road transport to an
                                integrated and sustainable
                                community transport system – the
                                MAV has been the driving force
                                behind the forward-thinking, strategic
                                approach adopted by local
                                government. Along the way, the
                                Association made sure that protective
                                measures were in place to counteract
                                the abolition of nonfeasance.
Policy and Advocacy
Providing effective support, feedback and liaison                          Capacity Building
The MAV, in conjunction with the Australian Local Government Association   Step Asset Management program continues to deliver results
(ALGA) and other state associations, was proactive in providing            During 2004/05, the Step Asset Management program continued to
  · support for the development of the AusLink Green and White             offer valuable assistance enabling councils to meet requirements and
     Papers, including representation on national working groups           timelines within an evolving and challenging environment. Major
                                                                           outcomes include
  · feedback to the Federal Government on the effectiveness of the
     Roads To Recovery (R2R) program, and lobbying successfully for          · involvement of 78 Victorian councils in the process, with four
     its continuation – resulting in the allocation of a further $1.35          other state associations also established
     billion to local roads in the four years to 2008/09.                    · improvement in sector-wide asset management performance in
                                                                                all categories including policy, strategy, planning and operations
In preparation for the anticipated future emphasis on regional policy
by State and Federal Governments, the MAV, in conjunction with               · development of a range of support tools to assist councils to
Victorian councils, established regional transport groups.                      complete RMPs in accordance with the Road Management Act
                                                                             · development of the Road Asset Management Plan framework,
Capitalising on the opportunity for developing council-specific                 audit and field reviews of council RMPs, and provision of
RMPs                                                                            legal advice.
The virtual abolition of nonfeasance by the High Court resulted
in the State Government passing the Road Management Act 2004               In recent months, the focus of the program has begun to shift to
as a means of providing public bodies with a public policy defence.        other asset classes, with an emphasis on building infrastructure.
This opened up opportunities for councils to develop Road                  Accordingly, MAV Step providers established a buildings framework
Management Plans (RMPs) to identify appropriate policies and               to support councils in this process.
practices within their jurisdictions.
                                                                           Asset management conference a first for Australia
Seventy eight Victorian councils have now sought the protection            The inaugural Asset Management Conference held in May 2005,
offered by the Road Management Act by developing their own RMPs.           brought together the most impressive array of knowledge on local
The MAV Step Asset Management program has placed a heavy focus             government asset management presented in Australia. Delegates
on assisting councils with this process, including onsite reviews of the   included over 300 asset, finance and risk managers as well as
alignment of RMPs and the documentation, processes and systems             councillors from around Australia.
relative to the Road Management Act and CMP requirements.
                                                                           The conference agenda underlined the current importance of asset
Public transport liaison group established                                 management for local government.
In association with the Department of Infrastructure (DoI), the MAV
established a high-level executive transport liaison group to discuss      Future Directions
and resolve public transport-related matters. In addition to MAV and         · Following the success of the Step Asset Management program
DoI executive management and senior staff, the group invited local              within Victoria, the MAV will work to encourage its acceptance
government representatives to give councils the opportunity to raise            across local government nationally.
matters of vital concern for the sector.                                     · An infrastructure renewal 'gap' program and associated
                                                                               management process for all councils will be developed, along
MAV transport strategy addresses key challenges
                                                                               with asset management plans for all classes of assets.
The MAV Transport and Infrastructure Advisory Group prepared a
comprehensive strategy paper setting out a strategic framework and           · An assessment of service sustainability will be carried out for all
recommendations for the MAV and local government to address key                 Victorian councils.
transport challenges facing Victorian communities. Building on a             · In partnership with member councils, the State Government and
broad analysis of the current status of transport across the state, the         other stakeholders, the MAV will develop a proactive,
paper identifies critical gaps and challenges, and sets out priorities          sustainable and long-term strategy to address the broad range
and recommendations for action.                                                 of transport challenges facing Victorian communities.
                                                                                                                             MAV ANNUAL REPORT 2004/5   27
communications and

Efficient, targeted communications
achieved in-house
The MAV Communications Unit provides comprehensive in-house
communications services, including issues management, strategy
development, stakeholder relations, media relations, publication and
web content management.
The unit is the first port of call for all media inquiries and is
responsible for managing relationships with key media personnel.
Staff monitor issues that have potential to impact on local
                                                                          Targeted TV news program delivers on
government and advise the President and Chief Executive on
                                                                          several fronts
                                                                          In 2004 the MAV entered into an arrangement with community
appropriate media and communication management strategies.
                                                                          television station Channel 31 to support the development of a new
The Communications Unit identifies opportunities to communicate           nightly news service, C News. Consisting of locally-focused news and
the role and achievements of local government. This year                  current affairs, the program not only gives the MAV a unique
opportunities were proactively pursued with The Age and community         opportunity to promote local government and send community
television station Channel 31, to enhance positive media coverage         messages direct to the target market, but importantly, enables
of local government activities.                                           Channel 31 to employ a dedicated local government reporter.
Another key function of the unit is to keep councils informed. This       This arrangement greatly assists the MAV to deliver its dual objectives
role was expanded during the year through the brokering of a              of representing and advocating the interests of local government and
heavily discounted media monitoring service and a wholly subsidised       raising its profile. At the same time, the MAV’s involvement supports
parliamentary monitoring service.                                         the production of a high-quality nightly news service that provides
                                                                          balance to the increasingly global focus aired on commercial
Council-wide media monitoring service                                     stations at the expense of local news.

negotiated                                                         This year, local government messages delivered through sponsorship
The MAV brokered an arrangement with media monitoring agency,      spots included community insurance and council elections.
Rehame, to extend its service to member councils at greatly reduced
rates than could be negotiated on an individual basis.
                                                                          Unprecedented council access to
Subscribing councils receive access to services that would otherwise      political process
be unaffordable. This is particularly relevant for smaller regional and   Throughout 2004/05, the MAV wholly subsidised the cost of a
rural councils.                                                           weekly electronic newsletter which provides councils with regular
                                                                          updates on state parliamentary, political, regulatory and legislative
The service is delivered via an internet portal protected by individual
logins and passwords. In addition to standard packages, the contract
negotiated by the MAV gives councils the choice of additional levels      Published each Friday, the e-newsletter summarises all press releases,
of service at a discount of 20 percent.                                   Hansard, bills, regulations and parliamentary committee reports, and
                                                                          details the progress of inquiries tabled within state parliament in that
Enhancing the image of local                                              week. It is delivered to nominated email addresses free of charge.

government                                                                The e-newsletter is linked to a password-protected website enabling
The MAV worked with The Age newspaper to launch Local Life, a             councils access to all relevant documentation. The website also acts
monthly colour supplement which ran in three editions of the paper.       as an electronic library with an advanced search engine for sourcing
The project was well supported by councils and was successful in          state parliamentary and government decisions and information
promoting awareness, visibility and exposure of local government.         dating back to 1999.
human resources

The MAV prides itself on recruiting and retaining high quality staff
with a shared commitment to supporting a strong and vibrant local                                                                 Staffing changes
government sector.                                                                                                                2004/05 was a year of significant change in the staffing profile of
                                                                                                                                  the MAV. Overall staff numbers grew by 20 percent with the increase
                                                                                                                                  being primarily in staff numbers in grant-funded positions. During
Organisational profile                                                                                                            this period, three senior staff members were also on maternity leave
The staffing profile of the MAV is divided into three components                                                                  with their positions being backfilled by other staff and consultants.
   · employees funded by membership subscriptions and MAV                                                                         There was also a number of departures from the MAV with the
      revenue to deliver policy and advocacy advice, capacity building                                                            resignations over this period of the Director Policy, Manager
      programs, and representation of Victorian councils                                                                          Environment, Senior Policy Adviser, Disability Project Officer, Water
   · employees funded by state and federal grants to deliver specific                                                             Project Officer and Receptionist. All of these vacancies were filled.
      programs and support to Victorian councils
   · specialist consultants, contractors and advisers to support a range
                                                                                                                                  Staff development
      of functions within the organisation in areas such as the insurance                                                         As a consequence of changes to the staffing profile of the
      scheme contract management and business development.                                                                        organisation, work commenced on the rebuilding of a cohesive
                                                                                                                                  team. The first step in this process was a strategy and team
                                                                                                                                  development session held in October 2004. This session identified
Staff numbers as at 30 June each year                                                                                             areas for improvement within the organisation and allocated
Staff numbers                                                                                                                     responsibility for supervision of the process to nominated teams.
                        1997 1998 1999 2000 2001 2002 2003 2004 2005
Full time                      24   13       15        16           16       26          23          24        30                 Work also continued on development and agreement of position
Part time                       2    1       1             1        0        4           4           3        4                   profiles for all staff and the implementation of a performance
Temp/casual                     -    -       -         -        -        -           2           1        1                       management system for the organisation. Continuing effort and
Vacant/other*                   -    -       -         -        -        -           -       2# 2#                                focus on this area is planned for 2005/06.
Total staff                    26   14       16        17       16           30          30          30        37
                                                                                                                                  $22,506 was spent on staff training and development during the
Gender                                                                                                                            2004/05 reporting period.
Male                            7        6         5            4                6           11           11        10     11
                                                                                                                                  Systems and structure improvements
                                                                                                                                  In line with the growth in the size and function of the organisation,
EFT Positions                                                                                                                     the MAV recognised and addressed the need for greater internal
MAV filled                 24.1 11.5 14.5 15.5                               14 19.7 20.8 20.4 20.8                               structure and more rigour in processes.
MAV vacant/other                -    3        1            1                     3           -       -         2      2
                                                                                                                                    · In May 2004, a Director of Policy position was created to
MAV temp/casual                 -    -       -         -                         -           - 0.6 0.6 0.6
Grant funded                    1    2       1             2                     2           8 4.3 5.6 11.9
                                                                                                                                       provide support to the CEO in the management and overseeing
Grant vacant                    -    -       -         -                         -           -       1         -      -                of the policy and grant programs delivered by the MAV.
Grant casual                    -    -       -         -                         -        -          1         -     -              · Implementation of the Information Technology Strategy
Total EFT’s                25.1 16.5 16.5 18.5                               19 27.7 27.7 28.3 35.3                                    commenced in 2004/05 with changeover of hardware, and
                                                                                                                                       approval from the MAV Board to migrate from a platform of
                                                                                                                                       Lotus Notes to Microsoft. Work also commenced on the
Management                 1             1         1            1                1         1               1          1   1
Policy                 6                 5         6            8                6       6.9               8          9 8.4
                                                                                                                                       development of a new file classification system and identification
Training and Operations         3        1         1                -            2       3.8             5.4          6    7*          of records management needs in the lead up to a tender for a
Corporate            14.1           7.5          5.5           7.5               8               8         7          7    7           new records management system in 2005/06.
Grant                  1                 2         1            2                2               8       6.3        5.6 11.9      In 2005/06 further work will be undertaken to strengthen internal
# maternity leave                                                                                                                 policy and procedures, and develop an appropriate and equitable
* includes 2 staff on maternity leave                                                                                             remuneration structure for the organisation.
                                                                                                                                                                                    MAV ANNUAL REPORT 2004/5   29
   AS AT 30 JUNE 2005

                                                                    PAULA                        TANIA
                                                                    GILES                        STRUZINA                   ALISON

        JULIE                                                                                               JOHN
        JACKSON                                                                                             RYAN


              ADAM                             IMOGEN                                                              VICKY
                                               BAGHURST                     ADRIENNE                               MAVROS
              MAXEY                                                         STEPHENS                                           JODIE
                                                                                                                               DELANEY FIONA

                                                                                       ALISON                                                 JONES
                                                                          MAV STATE COUNCIL
                                                                          MAV MANAGEMENT

           FINANCE &          SENIOR                EXECUTIVE             CHIEF EXECUTIVE     EXECUTIVE             COMMUNICATIONS           SECTOR
           INSURANCE          ECONOMIST             ADVISER               OFFICER             ASSISTANT TO CEO      ADVISERS                 DEVELOPMENT
           CONSULTANT#                                                                                              2 EFT                    CONSULTANT#

           DIRECTOR                                                                                                 MANAGER                  MANAGER
           POLICY, PROJECTS                                                                                         CORPORATE &              PEOPLE &
           & COMMERCIAL#                                                                                            SECRETARIAT              PERFORMANCE

                              ENVIRONMENT          SOCIAL POLICY          PLANNING            PROJECT MANAGER* CONTRACTOR#
                              POLICY & PROGRAMS

          3.4 EFT             ECOBUY*              PROJECT OFFICER*       LIAISON OFFICER*    PROJECT OFFICER*

          IMFMP               RESOURCE              PROJECT MANAGER                                                 DATABASE
          PROJECT OFFICER*    OFFICERS ECO-BUY                                                                      ADMINISTRATOR
                              1.8 EFT*

                              PROJECT MANAGER       EARLY YEARS                                                     ACCOUNTING
                              CLEARWATER*           PROJECT OFFICER*                                                SUPPORT OFFICER

                              PROJECT OFFICER       CEGS & HACC                                                     CORPORATE
                              CLEARWATER*           PROJECT OFFICER*                                                SUPPORT

                              NRM FACILITATOR*      POSITIVE AGEING                                                 RECEPTIONIST
                                                    PROJECT OFFICER*

                              ABM EXECUTIVE                                                                        *Grant funded
                              OFFICER*                                                                             #Consultants

                              URBAN RURAL LINKS
                              COORDINATOR*                                                                                                                   JONES

DAVID                         EXECUTIVE
DENNIS                        OFFICER*

                              PROJECT MANAGER                         NAREE                                                                   LIZ
                                                                      ATKINSON                                                                HOGAN
                              DOMESTIC WASTE*

         KENDRICK             LIZ                                           ELEANOR
                              JOHNSTONE                                     JACOBS
                                                                                                    MAY YIN
                    TAIMOR                         CLARE                                                                         SIMON
                    HAZOU                          HARGREAVES                                                                    MORGAN

                                                         GILL                                                                                                  MURPHY
                                          ROB            PISANI
                                          SPENCE                                                                 OWEN

                                                                                                                                  MAV ANNUAL REPORT 2004/5           31
As the peak body for local              Country Town Water Supply and         Implementation Steering Committee        Telecommunications Working Group
government, the MAV is regularly        Sewerage Project Steering Committee   Metropolitan Fire and Emergency          Timber Towns Victoria
asked by both State and Federal         DE&T/MAV Joint Working Party          Service Board                            Towards Zero Waste Working Party
governments, and related                Development Assessment Forum          Metropolitan Transport Forum             Transport Safety Committee
agencies, to provide nominations        DHS Industry Development Plan         Ministerial Advisory Council on          Urban Rural Links Steering
and represent the sector on a           Reference Group                       Public Libraries                         Committee
range of external committees.           DSE Continuous Improvement Program    Ministerial Drought Taskforce            VicHealth Planning and Health
                                        DSE Urban Stormwater & Water          Ministerial Employment Advisory Panel    Advisory Panel
                                        Conservation Fund Steering
External                                Committee
                                                                              Model Split Contracts Advisory Group     VicRoads Board (Roads Corporation

committees                              DSE Sustainability In Built
                                                                              Municipal Emergency Management
                                                                              Enhancement Group
                                                                                                                       Advisory Board)
                                                                                                                       Victorian Advisory Committee for
A current or former councillor,         Environment Reference Group
                                                                              Municipal Emergency Management           General Practice Sub-committee
council officer, MAV Board member       Eastern Water Recycling Proposal
                                                                              Plan Audit Committee                     Victorian Agricultural Chemicals
or MAV employee represented             Steering Committee
                                                                                                                       Advisory Committee
                                                                              National Local Government Training
local government on the following       EcoRecycle Victoria Liaison Group
                                                                              & Professional Development Group         Victorian Catchment Management
committees during 2003/04               Emergency Management Manual                                                    Stakeholders Forum
                                                                              National Packaging Covenant Council
Accessible Built Environment            Victoria – Strategy Group                                                      Victorian Childcare Industry Liaison
                                                                              National Parks Advisory Council
Working Group                           Environmental Weeds Working                                                    Group
                                        Group Committee                       Native Vegetation Exemptions Review
Advisory Committee on Public                                                  Advisory Group                           Victorian Community Care Coalition
Libraries                               EPA On-site Wastewater Advisory
                                                                              Native Vegetation Permit Tracking        Victorian Emergency Management
Agricultural Subcommittee of the        Group
                                                                              System Advisory Group                    Council
State Emergency Recovery Planning       Fire Refuges in Victoria Steering
                                                                              Neighbourhood Environment                Victorian Feedlot Committee
Committee                               Committee
                                                                              Improvement Plans Committee              Victorian Food Safety Council
Alpine Advisory Committee               Flood Warning Consultative
                                        Committee Victoria                    Personal Emergency Plans Project         Victorian Jurisdictional Recycling
Animal Welfare Advisory Committee                                             Steering Committee                       Group
                                        Hospital Admission Risk Program
Asbestos Management Working                                                   Place Names Committee                    Victorian Litter Action Alliance
                                        (HARP) Reference Group
Group                                                                                                                  Advisory Group
                                        Influenza Pandemic Planning           Port Phillip & Westernport Catchment
Association of Bayside Municipalities                                         Management Authority Local               Victorian Local Government
Association of Regional Waste                                                 Government Working Group                 Disability Planners' Network
                                        Infringements Framework Reference
Management Groups                                                             Public Administration and Emergency      Victorian Local Sustainability Accord
Australian Building Codes Board                                               Services                                 Committee
                                        Intergovernmental Agreement
Australian Environmental Labelling      Working Party                         Public Land Stewardship Reference        Victorian Ministerial Housing Council
Association Advisory Committee                                                Group                                    Victorian Road Based Public
                                        LGIIP Assessment Panel for
Broiler Code Committee                  Compliance                            Public Records Advisory Committee        Transport Advisory Committee
Building Regulation Advisory            LGPro Human Resources Special         Public Transport Access Committee        Victorian Road Freight Advisory
Committee                               Interest Group                        Roundtable on Inclusive Arts,            Council
Business Skills Victoria Board          Library Network Committee             Tourism, Sport and Recreation for        Victorian Road Safety Reference Group
Central Region Sustainable Water                                              People with a Disability                 Victorian Settlement Planning
                                        Local Sustainability Accord
Use Plan Advisory Group                 Committee                             Rural Disputes Settlement Centre         Committee
Commonwealth Aged Care Advisory                                               Working Group                            Victorian Speed Limit Advisory
                                        M2006 Commonwealth Games
Committee                               Emergency Management Services         Rural Workforce Agency Victoria          Group
Commonwealth Aged Care Planning         Working Group                         Saferoads Partnership                    Victorian Universities Rural Health
and Building Approvals Issues Forum     MAV/DHS Disability Services           State Emergency Mitigation Committee     Consortium
Commonwealth Children’s Services        Working Party                         State Emergency Recovery Planning        Vision Super Board
Planning Advisory Committee             MAV/DHS HACC/Primary Care             Committee                                Water Quality Improvement Plan
Community Health Policy Reference       Working Party                         State Emergency Relief Sub-committee     Steering Committee [?]
Group                                   MAV/DHS Community Care                                                         Women’s Participation in Local
                                                                              State Flood Policy Committee
Community Safety Month Reference        Partnerships Working Party                                                     Government Coalition
                                                                              State of the Parks Stakeholder
Group                                   Melbourne 2030 Implementation                                                  Working Party on Council Sports
                                                                              Reference Group
Community Services and Health           Reference Group                                                                Facility Tenancy Agreements –
                                                                              State Weed Policy Committee
Industry Training Board                 Melbourne Transport Committee                                                  Insurance & Indemnities
                                                                              Stormwater Industry Association of
Coordination Committee for Local        Melbourne Water/VicSES Liaison                                                 Yarra Study Liaison Group
Government                              Group                                                                          Year of the Built Environment
                                                                              Tackling Weeds on Private Land
Country Fire Authority Board            Melbourne Water Drainage                                                       Steering Committee
                                                                              Initiative Stakeholder Reference Group

Internal                              government and the needs and          to furthering reconciliation          MAV Library Working Party
committees                            issues of members for delivery of
                                      environmental outcomes.
                                                                            between non-Indigenous and
                                                                            Indigenous Victorians.
                                                                                                                  Provides support to the MAV on
                                                                                                                  campaigning for improved
The MAV has established a
number of advisory committees                                                                                     outcomes for councils in public
                                      MAV Strategic Transport and           Local Government Indigenous           library funding, policy input and
to assist the organisation in         Infrastructure Advisory Group         Network
developing policies. These                                                                                        planning.
                                      Provides advice to the MAV on         Network of councillors and council
committees serve to benefit the       infrastructure and transport issues   officers interested in promoting      MAV PERIN Reference Group
local government sector by            impacting on local governments        Indigenous issues within Victorian    Provides advice to the MAV on
providing opportunities for the       and assists the MAV Board to          local government.                     issues with the infringement
exchange of information. MAV          carry forward key policies and                                              system and the enforcement of
advisory committees include           campaigns in this area.               MAV Audit Committee                   outstanding infringement notices.
                                                                            Advisory committee established by     It is composed of council officers
MAV Economics and Finance                                                   MAV Board to oversee and make         from predominantly metropolitan
Advisory Group                        Other MAV                             recommendation to the MAV on          Melbourne.
Provides strategic advice to the      Committees                            potential risk exposures to the
MAV Board and provides support        Clearwater (formerly                  organisation and its management.      MAV/VicRoads Liaison Group
to achieve objectives relating to     Stormwater Capacity                                                         Facilitates regular consultation
financial sustainability for local    Building) Steering Committee          MAV Competition Committee             between the MAV and VicRoads at
government, including the             Committee directs development         Discussion and consultation on        executive level to identify issues of
development of campaigns,             and delivery of statewide             competition policy and Local          mutual concern and to establish
submissions and analysis of issues.   education and training program        Government Improvement                arrangements for more detailed
                                      for local government and              Incentive Program (LGIIP), and        consideration and resolution.
MAV Human Services                                                          issues of training, implementation
Portfolio Committee                   industry professionals in
                                      sustainable management of             and compliance.                       National ECO-Buy Alliance
Provides strategic advice to the                                                                                  Aims to support and partner
MAV Board on social policy and        urban stormwater. Comprises
                                                                            MAV/EcoRecycle EcoBuy                 other states and territories in
human services issues,                EPA, Melbourne Water,
                                                                            Steering Committee                    establishment of successful green
particularly in intergovernmental     Stormwater Industry Association
                                                                            Representatives from funding          purchasing programs.
relations. The committee also         of Victoria and LGPro.
                                                                            partners, provides direction for      Membership comprises the MAV,
facilitates consultation with                                               EcoBuy program.                       Western Australian Local
                                      EPA/MAV State Environmental
regional groupings of councils        Protection Policy                                                           Government Association
on current statewide issues.                                                MAV/EcoRecycle Victoria
                                      Implementation Steering                                                     (WALGA), Local Government
                                                                            Liaison Committee
                                      Committee (SEPP)                                                            Association Queensland
MAV Planning Advisory                                                       Quarterly forum for senior MAV
                                      Comprises senior MAV and EPA                                                (LGAQ), ACT Chief Minister’s
Group                                                                       staff, EcoRecycle Victoria and the
Provides strategic advice to the      staff to oversee development                                                Department, Local Government
                                                                            EcoRecycle Board to consider
                                      and delivery of joint project                                               & Shires Association of NSW,
MAV Board on strategic and                                                  and advance strategic waste
                                      aimed at improving local                                                    NSW Buy Recycled Alliance and
statutory planning issues                                                   management issues of mutual
impacting on local government         government implementation of                                                NZ Ministry of Environment.
                                                                            interest and relevance to both
and guides MAV policy and             the SEPP (Waters of Victoria).
                                                                            State and local government.           Public Lighting Reference
position development on                                                                                           Group
                                      Good Governance Advisory
planning related issues.                                                    MAV Insurance Committee
                                      Group                                                                       Council officers actively involved
                                                                            Management Committee
                                      Joint initiative of MAV, VLGA,                                              in advancing public lighting
MAV Professional                                                            established under deed by the
                                      LGPro and the Department for                                                issues. Issues include energy
Development Reference Group                                                 MAV Board to oversee
Provides input into the MAV’s         Victorian Communities.                                                      efficiency of public lighting,
                                                                            arrangements for Civic Mutual
professional development                                                                                          pricing systems and market
                                      Indigenous Interagency                Plus (CMP) and the Municipal
program for councillors,              Coordination Committee                Officers Fidelity Guarantee
identifies ongoing areas of           Comprises representatives from        Fund, and provide                     Victorian Local Sustainability
need within the sector to be          State and Federal government          recommendations where                 Network
addressed, and encourages             agencies involved in service          required to the MAV Board.            Group of councils and
participation of colleagues in        delivery to Indigenous people,                                              stakeholders actively pursuing
the MAV professional                                                        MAV IT Management
                                      and representatives from local                                              local sustainability approaches
development program.                                                        Committee
                                      government. Role to assist local                                            such as Local Agenda/Action
                                                                            Plans, coordinates and supports
                                      government and other agencies                                               21. Meetings offer networking
MAV Strategic Environment                                                   information technology and
Advisory Group                        to maintain and improve                                                     opportunities for exchange of
                                                                            communication initiatives for
                                      governance responsibilities for                                             ideas on sustainability.
Provides advice to the MAV                                                  better delivery of council services
Board on environmental issues         Indigenous communities, and
                                                                            and to reduce ITC costs.
of importance to local                whole-of-government approach

                                                                                                                          MAV ANNUAL REPORT 2004/5   33

Structure and accountabilities
In accordance with the requirements of the Municipal Association Act
1907 and applicable accounting standards, the economic activity of
the Municipal Association of Victoria (MAV), the Municipal Officers’
Fidelity Guarantee Fund and Local Government Mutual Liability
Insurance Scheme (Civic Mutual Plus) is reported to the members as
an economic entity within the annual accounts. The combined
activities are shown as the consolidated account and the Municipal
Association of Victoria, being the parent entity, is shown separately
as the MAV General Fund.
                                                                      Financial results – MAV
                                                                      In 2005, the MAV incurred a deficit for the year of $166,370 (2004
The MAV represents local government in Victoria. One of the           $38,479). The result, inclusive of grants received and expended for
activities of the MAV is to seek out, apply for, and administer grant the 2005 year, was a surplus of $718,583 (2004 $223,900 deficit)
funds for and on behalf of its members for the benefit of local       with net assets rising to $4.43 million (2004 $3.71 million).
government and the Victorian community. This activity of the
                                                                      During 2005 the MAV received a further $4.95 million (2004 $2.27
Association has been accounted for as a segment and included at
                                                                      million) in grants from both Federal and State governments. It was a
Note 21 in the financial statements.
                                                                      year when the MAV delivered on several significant projects that had
The MAV financial statements also include activities of its insurance been funded by grants from both Federal and State governments.
business, MAV Insurance, which operates the Municipal Officers’       These grants are managed by the MAV for the benefit of the local
Fidelity Guarantee Fund and the Local Government Mutual Liability     government sector and Victorian communities. The surplus relating
Insurance Scheme (Civic Mutual Plus) for the benefit of councils and  to grant activities was $885,000 for the year ended 30 June 2005
other local authorities. Both insurance activities are mutual funds   as compared to a deficit in 2004 of $262,000.
and are subject to the overseeing of the Association’s Board of
                                                                      Consequently, as at 30 June 2005 the MAV has a commitment to
Management, which acts through a committee of management
                                                                      expend $3.0 million (2004 $2.1 million) of grants funds on projects
constituted by the Board (the MAV Insurance Committee of
                                                                      for the benefit of local government and Victorian communities.
                                                                      During 2005 the MAV achieved solid project delivery and firm
The MAV Insurance Committee of Management carries out
                                                                      cost control.
overseeing and contract management of the operational activities of
both the Municipal Officers’ Fidelity Guarantee Fund and Civic        The operating surplus of the consolidated entity was $1.89 million
Mutual Plus. Jardine Lloyd Thompson Pty Ltd provides the claims and   (2004 $2.46 million). This had the affect of increasing the net assets
risk management services under contract to the MAV.                   of the MAV from $12.69 million in 2004 to $14.57 million this year.
                                                                            Civic Mutual Plus
                                                                            Prudent management and improved performance of the fund’s
                                                                            members has seen an improvement in this years result.
                                                                            The fund is still dealing with
Financial results – MAV Insurance
The MAV Insurance business consists of Civic Mutual Plus and The              · the failure of two insurance companies that directly impacted
Municipal Officers’ Fidelity Guarantee Fund. Under the Municipal                 this year’s results
Association Act 1907 the MAV is required to provide public liability          · the abolition of the non feasance defence for road authorities.
and can provide fidelity insurance to local government and to other         The Board of the MAV has considered these matters carefully, and
statutory authorities.                                                      has decided to take a conservative approach by providing fully for
MAV Insurance is not subject to Australian Prudential Regulatory            the potential losses from these occurrences.
Authority (APRA) regulations. However, the MAV Insurance                    The general insurance environment also improved and together with
Committee of Management views compliance with these regulations             strong financial management this has led to stable returns for the year.
as being good business governance and practice and has a policy of
complying with the spirit of the APRA regulations.                          The operating surplus of Civic Mutual Plus for this year was $1.4
                                                                            million (2004 $2.8 million).
The MAV holds an Australian Financial Services Licence (No 27143).
The AFSL ensures that MAV Insurance maintains the highest                   The surplus of assets against liabilities at 30 June 2005 was $10
standards of governance, provides operational efficiency and                million (2004 $8.6 million).
enhances future viability of the MAV Insurance business for the
                                                                            Municipal Officers’ Fidelity Guarantee Fund
betterment of both the Scheme and Fund members.
                                                                            During 2005 the Fidelity Guarantee Fund again experienced higher
2005 was a year of consolidation for the insurance industry. With           reinsurance premium payments, up by 23.8%, as against an
prudent financial management, MAV Insurance has achieved an                 increase of 32.5% in 2004. The year included continuing high
excellent outcome for the year. The introduction of tort reform is          claims expenditure – $412,833 in 2004 to $329,786 in 2005. The
starting to provide financial benefits to Civic Mutual Plus. In addition,   major fraud claims on the Fund during the year were in the area of
evidence suggests that tort reform has also had a positive impact on        electronic funds transfer.
the under-excess claims paid by CMP Scheme members.
                                                                            The operating deficit for 2005 was $215,289 (2004 deficit
The combined surplus for 2005 was $1.7 million (2004 $2.7                   $111,264). The net asset position of the Fund reduced to
million). The net asset position at the end of 2005 was $10.14              $146,816 (2004 $362,105) with cash assets amounting to
million (2004 $8.97 million).                                               $352,506 (2004 $236,108).
                                                                                                                               MAV ANNUAL REPORT 2004/5   35
guide to the

The financial report is a key part of the Annual Report of the
Municipal Association Victoria (MAV). It shows how the MAV
performed financially during the 2004/05 financial year and the
position at the end of the financial year (30 June 2005).
The financial report is presented in accordance with the Australian
Accounting Standards and the recommendations of the Urgent Issues
The MAV is a not-for-profit association that represents its members
who are the 79 local governments authorities around Victoria. The
MAV also runs the MAV Insurance business. The business consists of
two entities, Civic Mutual Plus (public liability and professional
indemnity insurer) and the Municipal Officers’ Fidelity Guarantee   Financial Statements
Fund. The MAV also manages grants received from Federal and         1. Statement of financial performance
State governments for and on behalf of the local government sector. The statement of financial performance shows
All these different interests are accounted for separately and then   · The MAV’s revenue from its various activities
consolidated into the MAV financial report.                                  · The expenses incurred in running the MAV and its business activities.
The MAV is committed to accountability in all respects of its              These expenses relate only to the business operations and do not
operations. It is with this in mind that this plain English guide has      include the costs associated with the purchase of assets. The expense
been developed to assist readers understand and analyse the                item ‘depreciation’ spreads the cost of the assts over the estimated
financial report.                                                          life of the assets.

                                                                           2. Statement of Financial Position
What is contained in the annual                                            The Statement of Financial Position shows the assets the Association
financial report?                                                          owns and the liabilities it owes a the 30th June.
The financial report contains three main sections – the financial          The statement separates the assets and liabilities into current and
statements, the notes to the financial statements, and the statements      non-current. Current means those assets or liabilities that will be
by the directors and auditors.                                             either collected or that fall due within the next twelve months.
The financial statements include the statement of financial performance,   The components of the Statement of Financial Position are
statement of financial position and statement of cash flow.
                                                                           2.1Current and Non-Current Assets
The notes to the financial statements detail the MAV’s accounting          Cash Assets include cash held in the bank, petty cash, cash deposits
policies and sets out the detailed values that are carried into the        and cash investments.
financial statements.
                                                                           Receivables are monies owned to the Association.
The statements by directors and auditors provide the views of the
                                                                           Prepayments are payments made in the current financial year, which
directors of the MAV and the independent auditors with regard to the
                                                                           relate to the next financial year (ie annual subscriptions).
financial report. The statement by directors confirms the view of the
directors that the financial report provides a true and fair view of the   Property, Plant and Equipment represents the value of the equipment,
financial performance, financial position and solvency of the              furniture and fittings, computers, trademarks, web site and intranet
Association. The audit report by the independent auditor expresses         and motor vehicles owned by the Association.
the auditor’s opinion as the whether the financial statements present
                                                                           Intangible Assets are trademarks, educations programs and other
fairly the financial position of the Association as at 30 June 2005,
                                                                           intellectual property owned by the Association.
and the results of the various business operations and cash flows for
the year ended 30 June 2005 in accordance with Accounting                  Other Financial Assets represent the value of shares held by the
Standards and other mandatory professional report requirements.            Association in the Co-operative Purchasing Scheme.
2.2Current and Non-Current Liabilities
Bank Overdraft indicates the amount the Association owes its
bankers on its daily operating account.
Payables are monies owed by the Association to its suppliers as at
30 June.
Premiums In Advance is insurance premiums relating to the next
financial year billed to members of the insurance fund before 30 June.
Provision for Employee Entitlements is the accounting term for annual
leave, long service leave and staff retirement gratuities owed to staff.
Provision for Claims Outstanding represents insurance claims
reported by members together with an estimate of claims incurred
but not yet reported including an estimate of the costs of settlement
for these claims.
Other Liabilities represent insurance premiums received in advance
and fees received in advance for seminars and conferences to be
held in the 2005 financial year.                                   Notes To The Financial Statements
                                                                         To enable the reader to understand the basis on which the values
2.3Total Equity
                                                                         shown in the statement are established, it is necessary to provide
Total Equity describes the components making up net assets. In effect,
                                                                         details of the Association’s accounting policies. These are described
the only component that comprises Total Equity is Accumulated
                                                                         in Note 1.
Surplus which is the value of all net assets accumulated over time.
                                                                         Apart from the accounting policies, the notes also give details
3. Statement of Cash Flows                                               behind many of the summary figures contained in the statements.
The Statement of Cash Flows summaries cash payments and cash             The note numbers are shown beside the relevant items in the
receipts for the year.                                                   statement of financial performance, statement of financial position
The values may differ from those shown in the Statement of Financial     and the statement of cash flows.
Performance because the Statement of Financial Performance is            Where the Association wishes to disclose other information, which
prepared on an accrual basis.                                            cannot be incorporated into the statements, this is shown in the notes.
Cash is derived from, and is used in, two main areas:                    The notes should be read at the same time as reading the financial
3.1Cash Flows from Operating Activities                                  statement in order to get a full and clear picture of the financial statement.
Receipts relate to al cash received into the Association’s bank
account from members and others who owed money to the                    Statements By Directors And Auditors
Association in the form of fees or premiums. Receipts also include       Statement By Directors
interest earned from the Association’s cash investments. It does not     The Statement By Directors is made by two directors on behalf of the
include cash paid for the sale of assets.                                MAV Board. It states that in the opinion of the Board the financial
                                                                         statements present a true and fair view of the operations of the
Payments relate to all cash paid out of the Association’s bank
                                                                         Association and that the Association can pay its debts as and when
account to staff, creditors and others. It does not include receipts
                                                                         they fall due.
from the purchase of assets.
                                                                         Independent Audit Report
3.2Cash Flows from Investing Activities
                                                                         This report is the independent auditor’s opinion on the financial
This relates to cash receipts and cash payments resulting from either
                                                                         statements. It provides the reader of the financial statements with a
sale or purchase of property, plant and equipment.
                                                                         completely independent opinion of the financial statements of the
The Statement of Cash Flows concludes with ‘cash at end of year’,        Association. The opinion covers all statutory and accounting
which indicates the cash the Association has at 30 June to meets its     standards and compliance requirements as well as providing a view
debts and liabilities.                                                   on the truth and fairness of the financial statement.
                                                                                                                                MAV ANNUAL REPORT 2004/5   37

ABCB – Australian Building Codes Board
ABM – Association of Bayside Municipalities
ALGA – Australian Local Government Association
ALGWA – Australian Local Government Women's Association
CCC – Community Care Coalition
CEGS – Culturally Equitable Gateways Strategy
CFM – Community Forest Management
CSF – Community Support Fund
DHS – Department of Human Services
DoI – Department of Infrastructure
DSE – Department of Sustainability and Environment
DVC – Department for Victorian Communities
EPA – Environment Protection Authority
EPC – Environment Protection Council
FDC – Family Day Care
GGAG – Good Governance Advisory Group
HACC – Home and Community Care
IMFMP – Integrated Municipal Fire Management Planning
LGAQ – Local Government Association of Queensland
LGIIP – Local Government Improvement Incentive Program
LRRN – Local and Regional Resource Networks
MCHS – Maternal and Child Health Services
MEYP – Municipal Early Years Plans
MFESB – Metropolitan Fire and Emergency Services Board
NCP – National Competition Policy
NPC – National Packaging Covenant
OESC – Office of the Emergency Services Commissioner
PAG – Planning Advisory Group
PBS – Performance Based Standards
PCAC – Premier’s Children’s Advisory Committee
PERIN – Penalty Enforcement by Registration of Infringement Notice
RIS – Regulatory Impact Statement
RM – Road Management
RMPs Road Management Plans
R2R – Roads To Recovery
SEPP – State Environmental Protection Policy
URL – Urban Rural Links
SIAV – Stormwater Industry Association of Victoria
VCAT – Victorian Civil and Administrative Tribunal
VEC – Victorian Electoral Commission
VLGA – Victorian Local Governance Association
WCMA – Wimmera Catchment Management Authority
WALGA – Western Australian Local Government Association
WPILGC – Women’s Participation in Local Government Coalition
Published by
Municipal Association of Victoria
Level 12, 60 Collins Street
Melbourne 3000
Telephone: 03 9667 5555
Facsimile: 03 9667 5550
GPO Box 4326
Melbourne 3001

Costigan & Murphy

Steven Diffey Photography

Frank Design Pty Ltd

       MAV ANNUAL REPORT 2004/5   39
                                                                                CONSOLIDATED              MAV - GENERAL FUND
                                                                         2005             2004            2005            2004
                                                           NOTE                 $                $               $               $

REVENUE FROM ORDINARY ACTIVITIES                            2, 3   61,565,779       49,946,566       9,687,690       7,277,598

EXPENSES FROM ORDINARY ACTIVITIES                           4(b)   59,680,127       47,490,651       8,969,107       7,501,498
SURPLUS(DEFICIT) FROM ORDINARY ACTIVITIES                      2    1,885,652        2,455,915        718,583        (223,900)
TOTAL CHANGES IN EQUITY                                      16     1,885,652        2,455,915        718,583        (223,900)

The accompanying notes form an integral part of these statements

                                                                                                                         MAV FINANCIAL REPORT 2004/5   41
     AS AT 30 JUNE 2005
                                                                                         CONSOLIDATED              MAV - GENERAL FUND
                                                                                  2005             2004            2005           2004
                                                                NOTE                     $                $               $             $

     Cash Assets                                                 8(a)       25,830,204       20,154,086       4,339,500       3,318,973
     Receivables                                                       9    40,483,814       44,048,992        802,376         508,235
     Prepayments                                                               280,168          114,823        280,168         114,823
     TOTAL CURRENT ASSETS                                                   66,594,186       64,317,901       5,422,044       3,942,031

     Receivables                                                       9    51,970,077       44,626,582                   -               -
     Property, Plant and Equipment                           1(e),11           578,841          599,778         578,841        599,778
     Intangibles                                             1(e),12           160,520           93,865         160,520          93,865
     Other Financial Assets                                                          10                 10           10              10
     TOTAL NON-CURRENT ASSETS                                               52,709,448       45,320,235         739,371        693,653
     TOTAL ASSETS                                                          119,303,634 109,638,136            6,161,415       4,635,684

     Payables                                                                3,905,043        3,412,894       1,049,983        472,462
     Premiums in Advance                                          10        29,975,891       29,205,209                   -               -
     Provision for Employee Entitlements                          15           282,708          240,825        282,708         240,825
     Provision for Claims Outstanding                             13        17,015,589       13,780,202                   -               -
     Other Current Liabilities                                                   88,140         111,064          88,140        111,064
     TOTAL CURRENT LIABILITIES                                              51,267,371       46,750,194       1,420,831        824,351

     Provision for Employee Entitlements                          15           124,300           98,097        124,300           98,097
     Provision for Claims Outstanding                             13        53,153,955       50,101,954                   -               -
     Other Non-Current Liabilities                                             184,465                    -    184,465                    -
     TOTAL NON-CURRENT LIABILITIES                                          53,462,720       50,200,051        308,765           98,097
     TOTAL LIABILITIES                                                     104,730,091       96,950,245       1,729,596        922,448
     NET ASSETS                                                             14,573,543       12,687,891       4,431,819       3,713,236

     EQUITY                                                       16        14,573,543       12,687,891       4,431,819       3,713,236

     The accompanying notes form an integral part of these statements.

AS AT 30 JUNE 2005
                                                                                  CONSOLIDATED                 MAV - GENERAL FUND
                                                                            2005             2004             2005              2004
                                                           NOTE                    $                $                 $                $

Subscriptions, Grants and Fees                                       46,510,145        45,117,397       10,580,819         7,780,746
Investment Income                                                     1,036,681           880,295          192,915          211,212
Excesses and Recoveries                                              15,318,370        12,705,898                     -                -

Suppliers                                                           (40,432,431) (38,717,627)           (9,409,575)       (8,683,478)
Claim Payments                                                      (16,413,015) (15,984,094)                         -                -
OPERATING ACTIVITIES                                        8(b)      6,019,750         4,001,869        1,364,159         (691,520)

Proceeds from sale of Fixed Assets                                        88,064          247,772           88,064           247,772
Payments for Fixed Assets & Intangibles                                (431,696)         (568,337)        (431,696)        (568,337)
NET CASH USED IN INVESTING ACTIVITIES                                  (343,632)         (320,565)        (343,632)        (320,565)

NET INCREASE/(DECREASE) IN CASH HELD                                  5,676,118         3,681,304        1,020,527        (1,012,085)
Cash at Beginning of Year                                            20,154,086        16,472,782        3,318,973         4,331,058
CASH AT END OF YEAR                                         8(a)     25,830,204        20,154,086        4,339,500         3,318,973

The accompanying notes form an integral part of these statements.

                                                                                                                               MAV FINANCIAL REPORT 2004/5   43
     The financial report is a general purpose financial report which has been drawn up in accordance with Accounting Standards, Mandatory
     Professional Reporting Requirements (Urgent Issues Group Consensus Views) and other relevant requirements.
     The principal accounting policies adopted in preparing the financial report are stated to assist in a general understanding of the financial report.
     Accounting policies have been consistently applied unless otherwise indicated.

(a) Basis of Accounting
     The accounts have been prepared on the accrual basis using historical costs and, except where stated, do not take into account current
     valuations of assets.

(b) Principles of Consolidation
     The economic entity comprises the financial report of Municipal Association of Victoria and of its 100 percent controlled entities the Local
     Government Mutual Liability Insurance Scheme (trading as Civic Mutual Plus, - CMP), and Municipal Officers’ Fidelity Guarantee Fund.
     A controlled entity is any entity controlled by Municipal Association of Victoria (Incorporated under the Municipal Association Act 1907). Control
     exists where Municipal Association of Victoria has the capacity to dominate the decision-making in relation to the financial and operating policies
     of another entity so that the other entity operates with Municipal Association of Victoria to achieve the objectives of Municipal Association of
     The affects of all transactions between entities in the consolidated entity have been eliminated.

(c) Change in Accounting Policy – Insurance Activities
     The MAV Insurance Committee requested the independent actuary to provide an estimate of the provision required to cover claims settlement
     administrative expenses that would be incurred in managing all outstanding claims in the event that Civic Mutual Plus winds down. This practice
     is consistent with insurance industry standards. In accordance with the recommendation of the independent actuary the Committee has decided
     to provide 4% of the gross outstanding claims estimates (including gross IBNR and Development) as the provision for claims settlement
     administration costs. This provision has been established over the last two-years. As a result of the change in accounting policy the surplus for the
     2005 financial has been reduced by $163,001(2004 $1,257,798)

(d) Income Tax
     The Association is exempt from income tax, in accordance with sections 50-10 and 50-25 of the Income Tax Assessment Act 1997

(e) Property, plant, equipment, trademarks and intellectual property
     Property, plant, equipment, trademarks and intellectual property are carried at cost, less where applicable, any accumulated depreciation or
     amortisation. The carrying amount of property, plant, equipment, trademarks and intellectual property is reviewed annually by directors to ensure
     it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows
     that will be received from the assets employment and subsequent disposal. The expected net cash flows have not been discounted to present
     values in determining recoverable amounts.
     On disposal of an item of property, plant, equipment, trademarks and intellectual property the difference between the sales proceeds and the
     carrying amount of the asset is recognised as a gain or loss.
     The depreciable amount of all fixed assets including buildings and capitalised leased assets are depreciated/amortised on a straight line basis
     over their estimated useful lives to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated
     over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

     THE FOLLOWING DEPRECIATION RATES ARE IN USE:                                   ANNUAL RATE
     Leasehold Improvements at cost                                                             20%
     Furniture and Equipment at cost                                                      20 – 33%
     Motor Vehicles at cost                                                                     20%
     Interactive Communications System at cost                                                  33%
     Software, Web Site and Intranet at cost                                                    33%
     Trademarks, Intellectual Property & Educational programs at cost                     10 – 20%


(f) Leases
    A distinction is made between finance leases which, effectively transfer from the lessor to the lessee substantially all the risks and benefits
    incidental to ownership of the leased property, without transferring the legal ownership, and operating leases under which the lessor effectively
    retains substantially all the risks and benefits.
    Where assets are acquired by means of finance leases, the present value of minimum lease payments is established as an asset at the beginning
    of the lease term and amortised on a straight line basis over the expected economic life. A corresponding liability is also established and each
    lease payment is allocated between such liability and interest expense.
    Operating lease payments are charged to expense on a basis which is representative of the pattern of benefits derived from the leased property.
    Lease incentives received under operating leases are recognised as a liability.

(g) Employee Entitlements
    The following liabilities arising in respect of employee entitlements are measured at their nominal amounts:
    wages and salaries, annual leave and sick leave regardless whether they are expected to be settled within twelve months of balance date.
    Other employee entitlements that are expected to be settled within twelve months of balance date.
    All other employee entitlements, including long service leave, are measured at the present value of the estimated future cash outflows in respect
    of services provided up to balance date. Liabilities are determined after taking into consideration estimated future increase in wages and salaries
    and past experience regarding staff departures. Related on-costs are included.
    Contributions made to an employee superannuation fund are charged as expenses when incurred.

(h) Revenue Recognition
    Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
    Grants are recognised as revenue when the Association obtains control over the assets comprising the contribution. Control ov er the grants is
    normally obtained upon their receipt or upon prior notification that a grant has been secured.
    Subscriptions and Sponsorships are recognised on an accrual basis.


(i) Premiums
    Premiums comprise amounts charged to members of the Schemes for policy cover, net of amounts returned to members as bonuses. The earned
    portion of premiums received is recognised as revenue. Premiums are treated as earned from date of attachment of risk. The pattern of
    recognition over the policy is based on time, which is considered to closely approximate the pattern of risks undertaken.

(j) Premiums Receivable
    During the month of June each year, the Schemes issue premium notices to Scheme Members. The risk attaches to the premiums in the next
    accounting period and accordingly the revenue is recognised each following year commencing 1 July.

(k) Claims
    Claims incurred expense and liability for outstanding claims are recognised in respect of direct business. The liability covers claims incurred but
    not yet paid, incurred but not yet reported claims, and the anticipated direct and indirect costs of settling those claims. Claims outstanding are
    assessed by reviewing individual claim files and estimating claims not notified and settlement costs using statistical and actuarial techniques. The
    liability for outstanding claims is measured as the present value of the expected future payments, reflecting the fact that all the claims do not
    have to be paid out in the immediate future. The expected future payments are estimated on the basis of the ultimate cost of settling claims,
    which is affected by factors arising during the period to settlement such as normal inflation and “superimposed inflation”. Advice from the MAV’s
    actuary has estimated normal and superimposed inflation to be 6% (2004 6%)and the discount rate at 5.2% (2004 5.5%)
    Superimposed inflation refers to factors such as trends in court awards, for example increases in the level and period of compensation for injury.
    The expected future payments are then discounted to a present value at the reporting date using discount rates based on the investment
    opportunities available to the organisation on the amounts of funds sufficient to meet claims as they became payable.
    Details of rates applied are disclosed in note 13.

                                                                                                                               MAV FINANCIAL REPORT 2004/5   45

(l) Excesses and Recoveries
     Excesses and other recoveries are brought to account when established at the time of consideration of the claims details and only where a
     definite set of circumstances exist which will support the credibility of the justification of obtaining either a recovery of excess from scheme
     member or recovery of claim cost from a third party.

(m) Revenue Recognition
     Revenue is recognised to the extent that it is probable that the economic benefit will flow to the entity and the revenue can be reliably measured.
     The following specific recognition criteria must also be met before revenue is recognised.
     (i) Premiums – recognised in the period the fund is at risk.
     (ii) Excesses and Recoveries – on an accruals basis.
     (iii) Investment Income – on an accruals basis including adjustments to bring values of cash backed unit trusts to account as investment income.

(n) Provision for Reinsurance Recoveries
     During the 2001 financial year two of the participants in the Scheme’s reinsurance program were placed into the hands of liquidators. These
     companies were part of the reinsurance programs in fund years from 1994 to 1998. The Directors have determined that sufficient information to
     reasonably estimate the extent and timing of the return to the Scheme from the liquidators of these companies is not currently available. The
     Directors therefore determined in the 2001 year that the most prudent course of action was to provide against 100% of the estimated future
     recoveries due from these insurers. The Directors continue to constantly monitor the position with a view to ensuring that the Scheme takes all
     reasonable steps to protect its position and to maximise potential recoveries.
     The Board is monitoring the provision made during the 2001 year. The information made available by the liquidators to date regarding potential
     returns to unsecured creditors is not considered to be sufficient for the Board to make any change to the level of the provision.
     As at the date of this report the Directors are of the view that the potential for any recovery is still uncertain and the policy of providing against
     100% of the estimated future recoveries due from these insurers is continuing.

(o) Investment Income
     Investment income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

(p) Other Financial Assets
     Investments are valued at net market value at balance sheet date. Investment income includes interest received and receivable on investments
     and changes in net market values of investments in unit trusts. The schemes have adopted a policy of investing in secure investments backed by
     fixed interest securities of amounts and terms broadly matching its liabilities for claims and unearned contributions.

(q) Comparative Figures
     Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year.


                                                                             CONSOLIDATED               MAV - GENERAL FUND
                                                                       2005             2004            2005            2004
                                                                              $                $               $               $

    Premium income                                              30,360,081        29,784,412
    Catastrophe insurance                                      (23,128,011) (22,511,076)
    NET INCOME BEFORE CLAIMS                                     7,232,070         7,273,336
    Claims expense (Note 4(a))                                 (23,907,535) (13,906,333)
    Excesses and Recoveries                                     21,206,941        12,561,825
    NET CLAIMS EXPENSE                                          (2,700,594)       (1,344,508)
    UNDERWRITING RESULT                                          4,531,476         5,928,828
    Investment income                                              848,927           674,730
    Reduction in Doubtful Reinsurance Debts                        355,377            36,946
    Administration and general expenses                         (4,568,711)       (3,960,689)
    INSURANCE ACTIVITY OPERATING SURPLUS / (DEFICIT)             1,167,069         2,679,815
    PARENT ENTITY SURPLUS / DEFICIT                                718,583         (223,900)
    OPERATING SURPLUS                                            1,885,652         2,455,915

                                                                             CONSOLIDATED               MAV - GENERAL FUND
                                                                       2005             2004            2005            2004
                                                                              $                $               $               $

    Subscriptions/premiums                                      32,324,809        31,804,675       2,030,588       2,020,263
    Insurance excesses and recoveries                           21,206,941        12,561,825                   -               -
    Brokerage and Management Fees Income                         1,190,426         1,092,588       1,190,426       1,092,588
    Seminars & sale of publications                                706,482           629,599        706,482         629,599
    Project, sponsorship and management income                     227,048           461,355        699,048         813,354
    Grant income                                                 4,769,193         2,269,166       4,769,193       2,269,166
    Total Revenue from operating activities                     60,424,899        48,819,208       9,395,737       6,824,970

    Investment Income                                            1,052,816           879,586        203,889          204,856
    Proceeds from Sale of Non Current Assets                         88,064          247,772          88,064         247,772
    OPERATING ACTIVITIES                                         1,140,880         1,127,358        291,953         452,628
    TOTAL REVENUE FROM ORDINARY ACTIVITIES                      61,565,779        49,946,566       9,687,690       7,277,598

                                                                       2005             2004
                                                        NOTE                  $                $

    Paid                                                        17,620,147        17,193,571
    Outstanding claims at end of financial year          13     70,169,544        63,882,156
    Outstanding claims at beginning of financial year          (63,882,156) (67,169,394)
    TOTAL CLAIMS EXPENSES                                       23,907,535        13,906,333

                                                                                                                       MAV FINANCIAL REPORT 2004/5   47

                                                                           CONSOLIDATED                  MAV - GENERAL FUND
                                                                        2005             2004            2005           2004
                                                                               $                $               $             $

     The following items have been recognised in the
     operating surplus (deficit):
     Claims expense                                               23,907,535       13,906,333                   -               -
     Reinsurance Expense                                          23,128,011       22,511,076                   -               -
     Doubtful Reinsurance Recovery                                 (355,377)          (36,946)                  -               -
     Stamp Duty                                                    1,968,553        1,970,768                   -               -
     General Scheme Expenses                                         238,699          251,590                   -               -
     Salary and Payroll Costs                                      1,908,185        1,802,751       1,908,185       1,802,751
     Grants, Projects and Legal                                    3,789,263        2,656,324       3,789,263       2,656,324
     Administration                                                1,672,100          987,551       1,438,668       1,079,469
     Operating lease rental expense                                  271,597          151,474        271,597         151,474
     Superannuation Contributions                                    248,564          194,297        248,564         194,297
     Scheme Management Fee                                         1,590,167        1,478,250                   -               -
     Meetings and Seminars                                           561,432          667,243        561,432         667,243
     Written down value of Non- current assets disposed of.           64,382          216,488          64,382        216,488
     Depreciation Leasehold Improvements                              18,694           60,075          18,694          60,075
     Depreciation Furniture and Equipment                             49,650           90,585          49,650          90,585
     Depreciation Motor Vehicles                                      92,045           74,959          92,045          74,959
     Amortisation of Website, Educational programs
     and Trademarks                                                   52,076           27,082          52,076          27,082
     Board of Management Expenses                                    167,600          179,315        167,600         179,315
     ALGA Membership                                                 306,951          301,436        306,951         301,436
     TOTAL EXPENDITURE                                            59,680,127       47,490,651       8,969,107       7,501,498

     Operating lease commitments, being for lease of
     computer and other equipment:
     Not later than one year                                          22,372           14,000          22,372          14,000
     Later than one year but not later than five years                11,186           21,000          11,186          21,000
     TOTAL LEASE COMMITMENT                                           33,558           35,000          33,558          35,000

     Operating lease commitments, being for lease of
     leasehold premises:
     Not later than one year                                         254,785           20,213        254,785           20,213
     Later than one year but not later than five years             1,435,198        1,366,334       1,435,198       1,366,334
     Later than five years                                           916,593        1,303,307        916,593        1,303,307
     TOTAL LEASE COMMITMENT                                        2,606,576        2,689,854       2,606,576       2,689,854

     Amounts received or due and receivable for audit services:
     Audit Services                                                   47,700           53,855          19,000          12,855
     Other Services                                                            -                -               -               -


                                                                                CONSOLIDATED               MAV - GENERAL FUND
                                                                          2005             2004            2005            2004
                                                                                 $                $               $               $

    Scheme management fees are paid to the Scheme
    Manager for:
    Risk Management and Administrative Services                     1,590,167         1,478,250
    Claims management                                               1,301,046         1,209,478
    TOTAL SCHEME MANAGEMENT FEES                                    2,891,213         2,687,728

    For the purposes of the Statement of Cash Flows, the Association considers cash to include cash in hand, cash at bank, certificates of deposit
    with short terms to maturity, bank bills and other financial assets.
    All of the surplus funds of the Civic Mutual Plus Scheme are invested at market rates with UBS Asset Management (Aust) Ltd in their Cash
    Enhanced Cash Fund and their Australian Bond Fund. Investments are brought to account at net market value at balance date.

(a) Cash at balance date as shown in the Statement
    of Cash Flows is reconciled to the related items
    in the Financial Position as follows:
                                                                                CONSOLIDATED               MAV - GENERAL FUND
                                                                          2005             2004            2005            2004
                                                                                 $                $               $               $

    Cash                                                           15,293,081        10,708,619       4,339,500       3,318,973
    Other financial assets                                         10,537,123         9,445,467                   -               -
    TOTAL CASH                                                     25,830,204        20,154,086       4,339,500       3,318,973

(b) Reconciliation of Net Cash Used In Operating
    Activities to Operating Surplus/(Deficit)
    Surplus (Deficit) for year                                      1,885,652         2,455,915        718,583        (223,900)
    Depreciation &Amortisation                                        212,465           252,566        212,465          252,566
    Doubtful reinsurance                                              355,377                     -               -               -
    (Surplus)/deficit on disposal of assets                           (23,683)          (31,285)       (23,683)         (31,285)
    Changes in assets and liabilities
    (Increase)/decrease in accounts receivable                     (4,271,131)        4,661,108       (294,140)         165,614
    (Increase)/decrease in prepayments                               (165,345)          (41,254)      (165,345)         (41,254)
    Increase/(decrease) in accounts payable                           922,379         (210,634)        871,118        (514,450)
    Increase / (decrease) in provision for employee entitlements        68,086           47,542          68,086          47,542
    Increase/(decrease) in outstanding claims                       6,287,388        (3,287,238)                  -               -
    Increase/(decrease) in accrued revenue                            748,562           409,000        (22,925)         (92,502)
    Increase/(decrease) in LAS Liability                                         -    (253,851)                   -   (253,851)
    CASH FLOWS FROM OPERATIONS                                      6,019,750         4,001,869       1,364,159       (691,520)

                                                                                                                           MAV FINANCIAL REPORT 2004/5   49

                                                                           CONSOLIDATED                MAV - GENERAL FUND
                                                                       2005             2004           2005          2004
                                                       NOTE                   $                $              $             $

     Reinsurance and other recoveries receivable        1(l)    83,837,756        79,058,485
     Discount to Present Value                                 (11,115,162) (12,950,150)
                                                                72,722,594        66,108,335
     Provision for Doubtful Reinsurance Recoveries              (6,832,663)       (7,188,040)
     Net Reinsurance and other Recoveries Receivable            65,889,931        58,920,295
     Excesses Recoverable                                        3,690,111         4,935,966
     Premiums receivable                                1(j)    22,241,911        24,359,930
     Other Receivables                                             631,938           459,383        802,376       508,235
     TOTAL RECEIVABLES                                          92,453,891        88,675,574        802,376       508,235
     CURRENT                                                    40,483,814        44,048,992        802,376       508,235
     NON-CURRENT                                                51,970,077        44,626,582                  -             -
     TOTAL                                                      92,453,891        88,675,574        802,376       508,235

     Contributions billed in advance                            29,975,891        29,205,209                  -             -

     Leasehold Improvements - at cost                              397,008           397,008        397,008       397,008
     Less accumulated depreciation                                 361,735           343,041        361,735       343,041
                                                                     35,273           53,967         35,273        53,967
     Furniture and Equipment -- at cost                            456,236           388,028        456,236       388,028
     Less accumulated depreciation                                 356,255           306,603        356,255       306,603
                                                                     99,981           81,425         99,981        81,425
     Motor vehicles - -at cost                                     512,116           448,546        512,116       448,546
     Less accumulated depreciation                                 104,295            44,836        104,295        44,836
                                                                   407,821           403,710        407,821       403,710
     Software, Web site and Intranet                               112,584           101,275        112,584       101,275
     Less accumulated amortisation                                   76,818           40,598         76,818        40,598
                                                                     35,766           60,677         35,766        60,677
     Interactive Communications System - at cost                   287,913           287,913        287,913       287,913
     Less accumulated depreciation                                 287,913           287,913        287,913       287,913
                                                                              -                 -             -             -
     TOTAL PROPERTY, PLANT AND EQUIPMENT                           578,841           599,778        578,841       599,778


                                                        CONSOLIDATED             MAV - GENERAL FUND
                                                     2005          2004          2005          2004
                                                            $          $                $             $

(a) Reconciliations
    Leasehold Improvements
    Movements during the year
    Beginning of year                              53,967       102,042        53,967       102,042
    Additions                                               -    12,000                 -    12,000
    Depreciation                                   18,694        60,075        18,694        60,075
    End of year                                    35,273        53,967        35,273        53,967

    Furniture and Equipment
    Movements during the year
    Beginning of year                              81,425       130,968        81,425       130,968
    Additions                                      80,475        41,042        80,475        41,042
    Write Offs                                     12,269                 -    12,269                 -
    Depreciation                                   49,650        90,585        49,650        90,585
    End of year                                    99,981        81,425        99,981        81,425

    Motor Vehicles
    Movements during the year
    Beginning of year                             403,710       275,405       403,710       275,405
    Additions                                     195,634       419,751       195,634       419,751
    Disposals                                      99,478       216,487        99,478       216,487
    Depreciation                                   92,045        74,959        92,045        74,959
    End of year                                   407,821       403,710       407,821       403,710

    Interactive Communications System
    Movements during the year                               -                           -
    Beginning of year                                       -             -             -             -
    Depreciation                                            -             -             -             -
    End of year                                             -             -             -             -

    Software, Web site and Intranet
    Movement during the year
    Beginning of year                              60,677        40,875        60,677        40,875
    Additions                                      11,309        43,625        11,309        43,625
    Amortisation                                   36,220        23,823        36,220        23,823
    End of year                                    35,766        60,677        35,766        60,677

    Trademarks and Intellectual Property          179,636        97,124       179,636        97,124
    Less accumulated amortisation                  19,116         3,259        19,116         3,259
                                                  160,520        93,865       160,520        93,865

                                                                                              MAV FINANCIAL REPORT 2004/5   51

                                                                            2005            2004
                                                             NOTE                 $                $

     Reported claims outstanding                                     35,105,177       29,454,174
     Provision for incurred but not reported claims,
     claims development and settlement costs                         45,820,914       47,117,002
     Discount to present value                                      (10,756,547) (12,689,020)
     Total Outstanding Claims                                        70,169,544       63,882,156
     Current                                                         17,015,589       13,780,202
     Non-Current                                                     53,153,955       50,101,954
     TOTAL CLAIMS PROVISION                                          70,169,544       63,882,156

     Actuarial advice indicates that:
(a) The average term to settlement of outstanding claims is 2.9 years (2004: 3.6 years).
(b) The following average inflation rates and discount rates were used in measuring the liability
     for outstanding claims.

     Inflation factor                                        1(k)           6.0%            6.0%
     Discount rate                                                          5.2%            5.5%

                                                                            2005            2004
                                                                                  $                $

     Allowance for claims settlement costs                              163,001        1,257,798
     Net claims incurred: current financial year incidents              309,146          164,991
     Net Claims Settlement Costs                                      1,301,046        1,209,478
     Reassessment for prior years claims                                927,401       (1,287,759)
     NET CLAIMS INCURRED                                              2,700,594        1,344,508

                                                                                CONSOLIDATED                MAV - GENERAL FUND
                                                                            2005            2004            2005           2004
                                                                                  $                $               $             $

     The aggregate amount of employee entitlement
     liability is comprised of:
     Provisions (Current)                                               282,708          240,825         282,708        240,825
     Provisions (Non Current)                                           124,300           98,097         124,300          98,097
     TOTAL EMPLOYEE ENTITLEMENTS                                        407,008          338,922         407,008        338,922

     Balance at beginning of Year                                    12,687,891       10,231,976       3,713,236       3,937,136
     Surplus (Deficit) from ordinary activities                       1,885,652        2,455,915        718,583        (223,900)
     BALANCE AT END OF YEAR                                          14,573,543       12,687,891       4,431,819       3,713,236


17 Superannuation Contribution
   The Municipal Association of Victoria contributes in respect of its employees to both the Local Authorities Superannuation Fund’s LASPLAN and
   the Defined Benefits Fund.
   The amount of superannuation contributions paid by the Municipal Association of Victoria to the Local Authorities Superannuation Fund’s
   LASPLAN (or Accumulation Fund) and the Defined Benefits Fund during the reporting period was, $248,564 (2004 $194,297). The Municipal
   Association of Victoria contributes to LASPLAN based on a fixed percentage of employee earnings in accordance with the Superannuation
   Guarantee Legislation 9% in 2005 and 9% in 2004. No further liability accrues to the employer as the superannuation benefits accruing to
   employees are represented by their share of the net assets of the Fund.
   Contributions to the Defined Benefits Fund are determined by the Scheme’s actuary. The Funds liability for accrued benefits for defined benefit
   and defined contribution members was determined in the 31 December 2004 actuarial investigation carried out by Local Authorities Super
   pursuant to the requirements of Australian Accounting Standard AAS 25. The actuarial investigation calculated the Unfunded Superannuation
   Fund Liability in the Defined Benefits to be $127 million. The Municipal Association of Victoria’s portion of this unfunded superannuation liability,
   including contributions tax, was calculated to be $Nil (2004 $nil)

   The Association receives grant monies from various Federal and State Government Departments on behalf of Local Government. Grant monies
   received have been accounted for as income in accordance with Australian Accounting Standard 15 (AAS 15). At the end of the f inancial year
   the Association had commitments to expend grants totalling approximately $2,987,029 (2004 $2,103,090) after deducting an estimate of costs
   of administering the grants.

   The Group’s exposure to interest rate risk and the effective average interest rate for the classes of financial assets is set out below:

                                                                                  CONSOLIDATED                   MAV - GENERAL FUND

                                                                             Non-          Floating              Non-          Floating
                                                                           Interest         Interest           Interest         Interest
                                                                           Earning             Rate            Earning             Rate
                                                                                   $                $                   $               $

   Bank                                                                  100,001       10,946,309              92,730                   -
   Cash Investments                                                                -   14,783,894                       -   4,246,770
   Receivables                                                       92,453,891                     -      802,376                      -
   Total Financial Assets                                            92,553,892        25,730,203          895,106          4,246,770
   Weighted Average Interest Rate                                                             5.8%                               5.8%

   Outstanding claims                                                70,169,544                     -                   -               -
   Unearned premiums/subscriptions                                   30,064,030                     -          88,140                   -
   Accounts payable                                                   3,905,043                     -    1,049,983                      -
   Total Financial Liabilities                                     104,138,617                      -    1,138,123                      -

                                                                                                                                 MAV FINANCIAL REPORT 2004/5   53

                                                                                 CONSOLIDATED                     MAV - GENERAL FUND

                                                                              Non-          Floating              Non-        Floating
                                                                           Interest          Interest           Interest       Interest
                                                                           Earning              Rate            Earning           Rate
                                                                                   $                 $                $                $

     Bank                                                                 233,631        7,389,646          233,631                    -
     Cash Investments                                                               -   12,530,809                    -    3,085,342
     Receivables                                                      88,675,574                     -      508,235                    -
     Total Financial Assets                                           88,909,205        19,920,455          741,866        3,085,342
     Weighted Average Interest Rate                                                           5.7%                             5.86%

     Outstanding claims                                               63,882,156                     -                -                -
     Unearned premiums/subscriptions                                  29,316,273                     -      111,064                    -
     Accounts payable                                                  3,412,894                     -      431,321                    -
     Total Financial Liabilities                                      96,611,323                     -      542,385                    -

     The carrying amounts of financial assets and financial liabilities represent their approximate net fair value.


     Credit Risk Exposure
     The maximum credit risk exposure on financial assets is represented by the carrying amounts of assets recognised in the Financial Position.

     Concentrations of Credit Risk
     Receivables due from Debtors in specific industry segments expressed as a percentage of the total balance receivable:
                                                                                 CONSOLIDATED                     MAV - GENERAL FUND
                                                                             2005             2004               2005           2004
                                                                                   $                 $                $                $

     State Government                                                              -                 -              8%             3%
     Local Government                                                         33%              38%                78%            25%
     Reinsurers                                                               67%              62%                    -                -

     Apart from the foregoing, the entity had no significant concentrations of credit risk with any single ‘counter-party or group of counter-parties’.

     During the 2004 financial year the Association negotiated a new ten-year lease over the property at Level 12, 60 Collins Street with the Reserve
     Bank of Australia. The lease commenced on 1 March 2004 and had 15 months rent free period up to 31 May 2005.
     In accordance with UIG Abstract 3 “Lessee Accounting for Surplus Leased Space Under Non-Cancellable Operating Lease”, lease
     incentives received have been recognised as a liability. This liability recognised in respect of the lease incentive will be reduced by allocating
     lease rental payments between rental expense and reduction of the liability.
     The Association is of the view that the treatment adopted by the standard does not fully recognise the position with regard to not for profit
     enterprises. Members need be aware that even though a deficit has been booked due to implementing the accounting standard the cash benefit
     of the saving from the rent free period has been passed on to members by holding subscription levels down and the deficit shown in the
     accounts will be returned over the next 8 years of the lease rental contract.

                                                                                        21 SEGMENT INFORMATION – PRIMARY SEGMENT

                                                                                           SEGMENT               TYPES OF PRODUCTS AND SERVICES
                                                                                           Insurance             Insurance including Public Liability, Professional Liability, Product Liability and Fidelity

                                                                                                                                                                                                                                                                                 MAV FINANCIAL REPORT 2004/5
                                                                                           Grants                Obtains Federal and State Government grants and expends these grants on projects for the betterment of both local government and the community in
                                                                                           Association           Local Government Industry group and represents and provides support to Local Government and its communities in
                                                                                                                                                                                LOCAL GOVERNMENT
                                                                                           BUSINESS SEGMENTS                                INSURANCE                        GRANTS                 ASSOCIATION                ELIMINATIONS                CONSOLIDATED

                                                                                                                                     2005             2004            2005            2004        2005        2004          2005           2004           2005           2004
                                                                                                                                        $                $                                           $           $                                           $              $
                                                                                           Sales to Customers outside the     52,350,089        43,020,968       4,945,014     2,472,305     4,270,676    4,453,293                                 61,565,779    49,946,566
                                                                                           Inter-segment                           65,860           64,338                                   1,267,203     822,308     1,333,063       (886,646)
                                                                                           TOTAL SEGMENT                      52,415,949        43,085,306       4,945,014     2,472,305     5,537,879    5,275,601    1,333,063       (886,646)
                                                                                           TOTAL CONSOLIDATED REVENUE                                                                                                                               61,565,779    49,946,566
                                                                                           SEGMENT                             1,167,068         2,679,824        884,954       (262,389)    (166,370)       38,479                -           -     1,885,652       2,455,915
                                                                                           CONSOLIDATED ENTITY
                                                                                           FROM ORDINARY                                                                                                                                             1,885,652       2,455,915
                                                                                           Segment                           113,341,933 105,068,535             3,582,661     2,401,234     2,612,764    2,393,480    (233,724)       (225,113) 119,303,634 109,638,136
                                                                                           TOTAL                                                                                                                                                   119,303,634 109,638,136
                                                                                           Segment                           103,200,207        96,093,876        579,477        283,002     1,184,131     798,480     (233,724)       (225,113) 104,730,091      96,950,245
                                                                                           TOTAL                                                                                                                                                   104,730,091    96,950,245
                                                                                           OTHER SEGMENT INFORMATION:
                                                                                           Acquisition of property, plant
                                                                                           equipment and other non current                  -                -      92,575        47,305      339,121      521,032                 -           -       431,696        568,337
                                                                                           Depreciatio                                      -                -      14,977        11,642      197,488      241,059                 -           -       212,465        252,701

     Reinsurance Share of Profit
     The Association’s Local Government Mutual Liability Insurance Scheme (CMP), in conjunction with similar Local Government Self Insured Mutual
     Liability Schemes around Australia has entered into a profit sharing arrangement with its primary reinsurers, based on the National Local
     Government claims experience. The arrangement enables any surplus per each year over the five-year reinsurance period to be shared between
     the various Schemes and the reinsurers on a proportional basis.
     No amount is payable until June 2007 and, some of the surplus can only be redeemed on the commutation of the reinsurance policy. The actuary has
     calculated the potential value of the CMP Scheme’s profit share for the first two years of the five-year program, at balance date, to be $3.4 million.
     There is significant potential for future events to impact the profit share receivable and a number of variable factors involved in the final
     determination of the Scheme’s profit share. Accordingly the directors are not satisfied at 30 June 2005 that the potential benefit is an asset that
     is probable of receipt and reliably measurable. The financial statements do not include any value attributable to the share of profit. The position
     will be monitored on an annual basis.

     MAV Insurance provides cover to members up to a sum insured of $2million each and every claim and then arranges for insurance cover with
     each member with various insurers up to a sum insured of $300 million each and every claim. The $2million sum insured provided by MAV
     Insurance is reinsured through the international reinsurance market. There is uncertainty as to whether a portion of the premium paid to overseas
     based insurers for the insurance cover provided to each member in excess of the $2million sum insured provided by MAV Insurance is subject to
     withholding tax. If withholding tax is payable the amount of withholding tax liability has been estimated at $1.5 million. There is significant
     uncertainty in relation to whether withholding tax liability exists and if so as to the amount of any such liability..

     The Association is required to prepare financial statements that comply with Australian equivalents to International Financial Reporting Standards
     (“A-IFRS”) for annual reporting periods beginning on or after 1 January 2005. Accordingly, the Association’s first annual financial report prepared
     under A-IFRS will be for the year ended 30 June 2006. In 2004, the Association established a process to manage the transition to A-IFRS. In
     consultation with the external auditors staff of the Association have completed the process set out and agreed in the document “Identifying the
     impact of AASB standards for 2005 (IFRSs Equivalents) on the financial reports of Australian entities.” This process is now complete.
     Likely Impacts of A-IFRS on the results and the financial position of the Association and Consolidated entity.
     The following reconciliation outlines the likely impacts on the current year result and financial position of the Association and Consolidated entity
     had the financial statements been prepared using A-IFRS, based on the accounting policy decisions current at the date of this financial report.
     Readers of the financial report should note that further developments in A-IFRS (for example, the release of further pronouncements by the
     Australian Accounting Standards Board and the Urgent Issues Group), if any, may result in changes to the accounting policy de cisions made by
     the Association and, consequently, the likely impacts outlined in the following reconciliation.
                                                                          CONSOLIDATED                    MAV - GENERAL FUND
                                                              NOTE             $’000                             $’000

     Operating Surplus (Deficit) (AGAAP)                                      1,885                               719
     Net Claims                                                  aa             (57)                                    -
     OPERATING SURPLUS (DEFICIT) (A-IFRS)                        bb           1,828                               719

     Net Assets (AGAAP)                                                     14,574                              4,432
     Provision for Claims Outstanding                            aa             (96)                                    -
     NET ASSETS (A-IFRS)                                                    14,478                              4,432

aa Net Claims
     Under 5.1.8 of the revised accounting standard AASB 1023 for the reporting year ending 30 June 2006 a risk margin is required to be added
     to the central estimate of the present value of expected future payments. AASB 1047 requires disclosure of the impact of adopting this standard
     in the 2005 financial statements. Actuarial advice from the independent actuary to the Association has advised that a prudential margin of 20%
     of the next provision for outstanding claims is appropriate.
     These estimates have been included as an adjustment in the “Reconciliation of Operating Surplus”

bb Revenue from ordinary activities
     Although not impacting the net surplus of the MAV – General Fund or the consolidated entity, the adoption of A-IFRS will result in a number of


   transactions being recorded on a “net” basis rather than a “gross” basis. In addition, the adoption of A-IFRS results in the reclassification of proceeds
   from the sale of non-current assets from “revenue from ordinary activities” to other income and expense items in the statement of financial performance.
   As a consequence, revenue from ordinary activities will decrease by $88,064 (MAV –General Fund $88,004), other expenses will decrease by
   $64,381 (MAV – General Account $64,381 and a gain on sale of non-current assets of $23,683 (MAV – General Fund $23,683) will be
   recognised for the financial year ended 30 June 2005.

cc Defined benefit superannuation plan
   Under A-IFRS, the consolidated entity is required to recognise the surplus or deficit of defined benefit plans as an asset or liability in the statement of
   financial position. AASB 119 provides an exemption for multi employer sponsored funds where the assets and liabilities are pooled, which is the case
   with the defined benefits plan of the Local Authorities Superannuation Fund. The Association is a member of the Local Authorities Superannuation Fund.

dd Property Plant Equipment and Intangible Assets
   Property, plant, equipment and intangible assets of the Association will be subject to an impairment test when there is an indication that
   impairment exists by reference to internal and external market factors. Any item of property, plant, equipment and intangible assets that is
   impaired must be written down to its recoverable amount. The amount of the impairment write down for assets carried at cost will be expensed
   through the statement of financial performance.
   Management has considered the carrying values of property, plant, equipment and intangible assets and considers that there is not material
   impact upon adoption of the AIFRS

   The Municipal Association of Victoria is a body corporate established under the Municipal Association Act of 1907 to provide services for and
   the representation of Local Government authorities in Victoria. The Association and its wholly owned controlled entities trade with its members in
   the normal course of business and on an arm’s length basis. The discreet nature of these transactions is not material. There were no material
   related party transactions during the year.

   Directors. Members During The Year
   G. Lake                                                            J. Ryan (Elected July 2004, Resigned November 2004)
   R J Fyffe                                                          J. Eisenbise (Resigned December 2004)
   D. Argall                                                          R. Perry (Resigned November 2004)
   J V Chandler                                                       R. Gross (Elected February 2005)
   S. Alessi                                                          C. Papas (Resigned February 2005)
   J Dale                                                             G. Davey (Resigned February 2005)
   M O’Shea                                                           B. Hampson (Elected February 2005)
   J. Amos (Elected February 2005)                                    J. Bruce (Elected February 2005)
   J. Cutri (Elected February 2005)                                   N. Melham (Elected June 2005)
   C. O’Neil (Elected September 2004 Resigned April 2005)
                                                                                       CONSOLIDATED                    MAV - GENERAL FUND
                                                                                  2005               2004              2005               2004
                                                                                        $                 $                 $                  $

   Remuneration of Directors
   Total Income received or receivable by Directors                           167,599            179,315          167,599             179,315

                                                                                                                       MAV - GENERAL FUND
                                                                                                                       2005               2004
                                                                                                                            $                  $

   Number of Directors of parent entity whose total income falls within the following bands:
   $0 - $9,999                                                                                                            17                 15
   $10,000 - $19,999                                                                                                        1                  1
   $40,000 - $49,999                                                                                                        1                  1

   Loans to Directors
   No loans were made to or are payable by Directors

   Other Transactions
   There were no other material transactions with Directors.
                                                                                                                                         MAV FINANCIAL REPORT 2004/5   57
     In the opinion of directors of The Municipal Association of Victoria:
(a) the accompanying Statement of Financial Performance is drawn up so as to give a true and fair view of the surplus of the association for the year
     ended 30 June 2005;
(b) the accompanying Statement of Financial Position is drawn up so as to give a true and fair view of the state of affairs of the association as at that
(c) at the date of this statement there are reasonable grounds to believe that the association will be able to pay its debts as and when they fall due;
(d) the accompanying Consolidated Financial Statements give a true and fair view of the matters with which they deal.
     The financial statements and consolidated financial statements have been made out in accordance with applicable Accounting Standards and
     other mandatory professional reporting requirements.
     Signed in accordance with the resolution of directors.

     Geoff Lake President                                         John Chandler Director

     29 September 2005

To the members of the Municipal Association of Victoria

We have audited the financial statements of The Municipal Association of Victoria for the financial year ended 30 June 2005 as set out on
pages 41 to 58. The financial report includes the consolidated entity comprising the Municipal Association of Victoria and the entities it
controlled at the year’s end or from time to time during the financial year. The Municipal Association of Victoria’s directors are responsible for
the financial report. We have conducted an independent audit of this financial report in order to express an opinion on it to the members of the
Municipal Association of Victoria.
Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial
statements are free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and
other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates. These procedures have
been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with Accounting
Standards and other mandatory professional reporting requirements and statutory requirements so as to present a view which is consistent with
our understanding of the Municipal Association of Victoria and the consolidated entity’s financial position and performance, as represented by
the results of their operations and their cash flows.
The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion
In our opinion the financial statements present fairly in accordance with Accounting Standards and other mandatory professional reporting
requirements the financial position of the Municipal Association of Victoria and the consolidated entity as at 30 June 2005 and the results of
their operations and their cash flows for the year then ended.

PKF                                                          R. A. Dean Partner
Chartered Accountants
A Victorian Partnership

29 September 2005

                                                                                                                         MAV FINANCIAL REPORT 2004/5   59
     Legal Form
     The Municipal Association of Victoria is an Association Incorporated by the Municipal Association Act 1907

     Melbourne, Australia

     Address of Registered Office and Principal Place of Business:
     Level 12, 60 Collins Street, Melbourne, 3000, Victoria, Australia

     Nature of the Operation and principal activities:
     The Municipal Association of Victoria represents, promotes and supports the interest of Victorian local governments and their communities.

     Average number of equivalent full time employees during the year is 35.3 EFT.

Published by
Municipal Association of Victoria
Level 12, 60 Collins Street
Melbourne 3000
Telephone: 03 9667 5555
Facsimile: 03 9667 5550
GPO Box 4326
Melbourne 3001

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